SOUTH BRONXMOTT HAVEN

Summary – Mott Haven, South Bronx

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION - IMPORTANTDISCLAIMERS – PLEASE READ CAREFULLY.This document is neither an offer to sell nor the solicitation of an offer to purchase the securities of Somerset Partners, LLC (the "Company") orany other person or entity. This document may contain forward-looking statements. Such statements are not historical facts and includeexpressions about the Company's plans and objectives for future operations and expectations about market conditions and financial performanceand involve risks and uncertainties. Statements herein that include the words "expects," "believes," "plans", "estimates", anticipates" “projects”or the negative of such words or similar words or expressions are forward-looking statements. Such forward-looking statements involve knownand unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differmaterially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements forany reason. While all the information prepared in this document is believed to be accurate, the Company makes no express warranty as to thecompleteness or accuracy, nor can it accept responsibility for errors, appearing in the document.

Current view: 101 Lincoln Avenue and 2401 & 2413 Third Avenue

2401 & 2413 Third Ave

101 Lincoln Avenue and 2401 Third Avenue will be developed into luxury market-rate, highly amenitized residential towers on the Harlem River waterfront. Market pricing will be significantly lower than other New York metro area waterfronts such as DUMBO, Williamsburg, Long Island City, and Jersey City. As such absorption and rent growth will likely outpace other New York City developments.

The development will consist of approximately 1,300 residential units, a retail component and a waterfront promenade. Residential units will consist of rentals and condominiums.

Projected unit mix:

40% Studio apartments | 15% 1 Bedroom apartments

40% 2 Bedroom apartments | 5% 3 & 4 Bedroom apartments

101 Lincoln Ave and 2401 Third Ave

101 Lincoln Ave

Rendering: 2401 Third Ave

Rendering for 2401 Third Avenue & 101 Lincoln Avenue10

2401 Third Ave

Renderings

2401 Third Ave

Renderings

SP believes there is no better under-developed area that exists in terms of waterfront exposure, views of and proximity to Manhattan. Given the remarkable support at the community, state, and local government levels, projected population growth, limited housing supply, and signs of gentrification already appearing in this neighborhood, there is tremendous opportunity for rapid land value appreciation.

SP has partnered with LAB at Rockwell Group to produce an LED light installation on Third Ave Bridge. The communal canvas is an installation that displays art curated by local organizations onto an LED mesh, inspired by both East Harlem and the South Bronx’s performances of activism through art. This will enhance the visibility and visual experience and likely become an iconic art destination. The economic benefit from this installation alone will be significant for existing and future businesses.

Combining all of this with the impending population growth attributable to the development of 101 Lincoln Avenue and 2401 Third Avenue, positions the targets of this strategy for rapid value appreciation for development, redevelopment and retail reposition.

Investment summary

Somerset Hospitality Group (SHG)+

9 Bruckner Blvd (Bruckner Market)

Company Description: SHG has established substantial relationships that will bring experience, knowledge, and network, to further lead the direction and growth of the hospitality sector in the South Bronx.

SHG is a multiple hospitality platform. Initially, SHG will consist of a world class hospitality venue at 9 Bruckner Blvd, including Bruckner Station & Brewery, creative space, and a roof top indoor/outdoor restaurant concept with a beer garden. A restaurant concept by award winning celebrity chef Doug Rodriguez, an artisanal café (Filtered Coffee) with an established brand presence in Harlem, an unique lounge/bar and hospitality concepts by the Butter Group , La Grata Pizzeria by Chef Erminio Conte, and an hospitality concept by superstar athlete Carmelo Anthony. In conjunction with its development of its luxury residential community, SP has conducted thorough and detailed studies of the location’s potential and believes strongly that the South Bronx offers unparalleled hospitality opportunities.

Given the remarkable government support at the community, state, and local levels, projected population growth, and signs of development already appearing in this neighborhood, there is tremendous opportunity for SHG to be the first to establish presence in the South Bronx. The South Bronx is already equipped with excellent proximity to public transportation with easy access by train, car and bus to Manhattan. We are creating a modern and vibrant destination within New York City, attracting young professionals and creative types to live and work in this historic quarter, all under fifteen minutes to midtown Manhattan. With the influx of new working professionals, residents will require places to eat, drink, and lounge.

SHG is currently securing sites at attractive pricing, and programming the venues comprising this offering.

9

Somerset Hospitality Group

2430 Third Avenue - Filtered Coffee ShopFiltered Coffee (Bronx) is a third wave coffee shop currently open at 2430 3rd Avenue. Brought to you by the proprietors of The Chipped Cup, Lenox Coffee, and Double Dutch Espresso, Filtered Coffee (Bronx) will offer a relaxed space for locals to enjoy deliciously brewed Counter Culture Coffee, Rishi teas, and locally sourced artisan pastries.the world.

136 Alexander Avenue - La Grata PizzotecaSHG, in conjunction with VPN Americas and Serafina corporate executive chef Erminio Conte, is bringing authentic 'Pizza Napoletana" to the South Bronx. From the flour to the oil, the best ingredients will be sourced weekly from Italy, as well as locally. With original recipes and a creative approach the venue will attract a loyal customer base and maintain extended operating hours to meet the demand generated from local bar and adjacent club patrons.

All of the SHG venues have been conceived to capture the existing underserved market share;while at the same time positioned to capture near-term population growth. As such, we expectabove market income growth.

Somerset Hospitality Group

9 Bruckner Blvd – “Bruckner Station & Brewery SHG will be bringing world class Bruckner Station & Brewery to 9 Bruckner Blvd. This concept will include a ground floor "hotel lobby" that is open to the public and community for creative collaboration, as well as a bar and brewery. The 2nd floor will consist of creative office/work space with some gallery/event space. The roof and top floor will include an indoor/outdoor restaurant concept with a beer garden. We plan for Bruckner Station & Brewery to be a global destination that will attract people not only from New York City, but from around the world.

Restaurant Concept by Chef Doug Rodriguez Chef Douglas Rodriguez, the globally acclaimed Godfather of Nuevo Latino Cuisine, blazed the trail and has inspired Chefs around the world and his culinary creativity has changed the image of Latino food in America. SHG has partnered with Chef DRod to create an unique latin concept in the Heart of Mott Haven directly across the street from Somerset Partners residential community development.

Melo’s Speak Easy/ Hospitality ConceptSHG is partnering with Carmelo Anthony of the New York Knicks to bring an upscale American sports bar/Speak Easy to Mott Haven of the South Bronx. Attracting both a neighborhood and professional crowd with its smart and casual ambience, Melo’s offers a gentlemanly take on the sports bar experience in the heart of the neighborhood. From noon until night, it's an ideal spot to take in sporting events and games, with TVs wall-to-wall. Melo’s Sports bar prides itself on offering stylishly hearty American fare in a rightly unpretentious yet refined atmosphere. The Speak Easy will have a private room for VIPs to sip on aged bourbon or whiskey while enjoying a Habana cigar. Melo’s creates an entertaining, yet relaxing drinking and dining experience.

ButterGroup-HospitalityConceptsThe Butter Group is a collection of business leaders, restaurateurs, and nightlife impresarios lead by the groups owner, Richie Akiva and long-time business associate Ronnie Madra. Founded in 2002 by Richie Akiva and Scott Sartiano, The Butter Group holds a multi-million dollar portfolio of premier dining destinations including Butter Restaurant, which is led by Executive and Iron Chef Alex Guarnaschelli, and its newest addition Asia de Cuba. In addition to its award-winning restaurant offerings, The Butter Group owns and operates New York’s A-list hotspot, 1 OAK, and its outposts in Las Vegas, located in The Mirage; Mexico City, Los Angeles, as well as their most culturally relevant property in New York, Up&Down. Akiva continues to push the envelope to create new experiences for his guests, customers and A-listers, many of whom he calls friends, while offering a “One of a Kind” experience. The Butter Group together with SHG will be introducing its first SoBRO Lounge/Bar to the Mott Haven.

Somerset Hospitality Group

Somerset Hospitality Group

9 Bruckner Boulevard Bruckner Station & Brewery

9 Bruckner is strategically located across the street from the 5-Acre SP waterfront development that will bring thousands of new residents to the South Bronx. SP believes that with the collective group of concepts in this one venue, Bruckner Station will not only be a South Bronx destination, but a Global destination!

Development in Mott Haven

Development in Mott Haven

Development in Mott Haven

1. 101 Lincoln Ave

Multi-tower mixed-use residential market rate rental/ condominium development by Somerset Partners.

2. 2401 Third Ave

Multi-tower mixed-use residential market rate rental/ condominium development by Somerset Partners. Location of Somerset Partners & Salon 94's "Macabre Suite" South Bronx Party featuring art work from Lucien Smith

3. 2413 Third AveDevelopment site with approximately 200,000 buildable square feet. Potential mixed-used site for Hotel, Retail, Residential Condos.

4. Third Ave Bridge

Somerset Partners has partnered with LAB at Rockwell Group to install a LED light installation on the 3rd Avenue Bridge, to create an iconic art destination.

5. 2430 Third Ave

Somerset Partners is introducing Filtered – a trendy coffee shop to the Mott Haven. Filtered opened its first location in Manhattan in April, 2015.(www.chippedcupcoffee.com| www.doubledutchespresso.com |www.messhallharlem.com )

6. 2422 Third Ave

Somerset Partners is partnering with Sebastian Errazuriz, an Artist, designer and activist. His Studio has received international acclaim for his original and provocative works on a variety of areas and disciplines. This will be his 2nd Studio location and will be a great addition to Mott Haven. (http://www.meetsebastian.com/)

Development in Mott Haven

7. 329 East 132ndJCAL Development, building a 12 Story, 91 Market Rate Unit waterfront development. Breaking ground April 2016.

8. 285 Alexander AveSomerset Partners is partnering with Enlightened, an innovative food business and renovating a one-family townhouse on Doctor’s Row. The house will serve as corporate headquarters for Enlightened.(www.eatenlightened.com)

9. 9 Bruckner BlvdSomerset Hospitality Group to populate with Bruckner Station & Brewery.

10. 295 Locust AveSilvercup Studios, which has hosted television productions such as HBO’s “The Sopranos” and “Girls” at its Queens studios, is moving forward with a third facility in the Port Morris section of the South Bronx

11. 41 Bruckner Blvd9J - Boutique for emerging designers by Jerome Lamaar, in collaboration with Somerset Partners.

12. 20 Bruckner Blvd20 Bruckner Blvd is redeveloping the property to become destination office/ retail.

13. 2417 Third AveSavanna Capital - commercial office development. Purchased in early 2015. (www.brucknerbuilding.com)

14. SHRWDSpecial Harlem River Waterfront District was rezoned for commercial and residential redevelopment. Will accommodate roughly 4,000 units of housing, 1.5 million SF of commercial space, and 500,000 SF of community facility space, public, parks, and waterfront access.

15. 131-135 Alexander AveDeveloped and constructed by JCAL DEVELOPMENT GROUP. A 4-story mixed use market rate building. The building consists of 15 residential units and ground floor retail space. SHG to control retail portion.

16. 136 Alexander AveA 4-story 5900 square foot mixed use market rate building and ground floor retail space. 136 Alexander ave is a joint venture with Somerset Partners. SHG to open a Pizzateca with Chef Conte.

17. 2477 Third AveComfort Inn Hotel - Architect Raymond Chan is designing a 4-story hotel for Long Island-based developer Bharat Patel.

18. 112 Lincoln AveClock Tower—currently home to market-rate luxury lofts and artists’ studios. Retail – Charlies Bar & Grill. (www.charliesbarkitchen.com)

Development in Mott Haven

19. 129 Alexander AveCeetay - eatery, which offers creative sushi & Japanese dishes.(www.ceetay.com)

20. 1 Bruckner BlvdMott Haven Bar and Grill – An upscale pub grub, steaks & local brews in alaid-back barroom space. (www.motthavenbar.com)

21. 39 Bruckner BlvdWALLWORKS NEW YORK is a new contemporary art gallery in the South Bronx,dedicated to bringing art back uptown. (www.wallworksny.com )

22. 198 East 135thWilliamsburg-based builder Cheskel Schwimmer filed new buildingapplications for a 25-story residential development

24. 25 Bruckner Blvd200 Market-Rate apartments with high end amenities planned In Mott

Haven by Carnegie Management.

Development in Mott Haven

23. 2490 Third AveForty apartments will be stacked on top of 6,500 square feet of groundfloor retail.

Comparison Travel Distance and

Transportation Highlights

MOTT HAVEN, SOUTH BRONX:From Central Park: 2.4 miles | 9 minutes by car | 12 minutes by subway

LONG ISLAND CITY:From Central Park: 2.8 miles | 13 minutes by car | 34 minutes by subway

WILLIAMSBURG:From Central Park: 4.6 miles | 18 minutes by car | 35 minutes by subway

DUMBO:From Central Park: 5.7 miles | 20 minutes by car | 30 minutes by subway

WilliamsburgLand Value: $400 / SF

DUMBOLand Value: $400 / SF

Long Island CityLand Value: $400 / SF

Mott Haven, South Bronx

Comparison Travel distance and Transportation Highlights

MANHATTAN STATIONS:Harlem – 125th Street Metro North Station- direct connection to 101 Lincoln Avenue by bus BX15125th Street (subway lines- 4,5 and 6)125th Street (subway lines- 2 and 3)

BRONX STATIONS:Grand Concourse (subway lines 4,5 and 6)3rd Avenue- 138th Street (local line 6)Brook Avenue (local line 6)

Mott Haven has a strong transportation network. The neighborhood is primarily serviced by the 4,5 “express” and 6“local” trains. The 2 and 3 lines are also accessible. The Harlem – 125th Street Metro North Station connects the areawith Westchester, Upstate New York and Connecticut. Mott Haven is within close walking distance of multiple subwaystations and Metro North. NYC Taxi service also provides easy access to the District. Manhattan is a short walk overthe adjacent Third Avenue Bridge.

Comparison Travel distance and Transportation Highlights

History of Mott Haven, South Bronx

In the Southernmost Bronx is a neighborhood with a rich history known as Mott Haven, named after Jordan Mott, whobuilt a tremendously successful iron works business beginning in 1828. Mott produced practical and ornamentalmetalwork used worldwide.

The framework for the U.S. Capitol dome was cast at the Janes & Kirkland foundry. “Patience” and “Fortitude”, the twomarble lions guarding the New York Public Library entrance, were sculpted by the Piccirilli Brothers MonumentSculptors. The firm also created the pediment of the New York Stock Exchange, the Maine Memorial in Central Park andthe seated Abraham Lincoln at his Washington D.C. memorial. Both firms were located in Mott Haven.

Mott Haven was one of the few areas of the Bronx to attract nineteenth-century speculative developers interested inconstructing townhouses. Following the opening of transit lines connecting this area to Manhattan, Mott Haven became aconvenient location drawing middle-class families who sought to purchase single-family townhouses.

Besides its giant iron works, Mott Haven was also known as “The Piano Capital of the United States”. The mostimpressive of the old piano warehouses is Estey Piano, with its clock tower at Bruckner Boulevard and Lincoln Avenue.Many piano factories: Beethoven, the Bollermann-Kroger, Haines-Kroger, Krakauer Piano and others, still stand proudlyon Bruckner Boulevard and surrounding side streets. These iconic structures with exposed brick, high ceilings andwater views are part of the SP acquisition strategy and are perfect for redevelopment.

Estey Piano, with its clock tower at Bruckner Boulevard andLincoln Avenue.

In 1898, the congregation at St. Jerome’s built the Churchwhich now stands on the corner of Alexander Avenue and 138thStreet. The Church was designed by Dehli & Howard in the styleof the Italian Renaissance with features reminiscent ofHispanic antecedents.

History of Mott Haven

The Mott Haven Public Library Building at Alexander Avenue and East 139th St.

In the past Alexander Avenue was called “Doctors’ Row” as many physicians working in Manhattanmade their residences in the townhouses.

Ruppert Beer Factory 20 Bruckner (now known as History Channel building)

Somerset Partners | Mott Haven In The News

One of the first things about the South Bronx’s MottHaven neighborhood that grabbed Keith Rubenstein wasthe waterfront and its views of Manhattan.

Source: Wall Street Journal http://www.wsj.com/articles/reviving-the-south-bronx-waterfront-1425862978

Published: March 8, 2015

Reviving the South Bronx Waterfront

SOUTH BRONX SIZZLE: Once asymbol of urban blight, the formerlyburned out neighborhood is now amajor draw for investors

This time, if someone says the Bronx is burning, it’sbecause the real estate market is on fire.

Source: New York Daily News http://www.nydailynews.com/south-bronx-real-estate-market-suddenly-burning-hot-article-1.2178095

Published: April 8, 2015

Is the South Bronx the New Brooklyn?

It’s ambitious, of course, but Keith Rubenstein’s plan fordeveloping the South Bronx waterfront makes goodsense.

Source: Architects and Artisans http://architectsandartisans.com/index.php/2015/06/is-the-south-bronx-the-new-brooklyn/

Published: June 23, 2015

Somerset Partner – Mott Haven “In The News”

There's a new plan for a South Bronx waterfrontproject that's being looked toward as an economiccatalyst for the area.

Source: Curbed NY http://ny.curbed.com/archives/2015/06/25/developer_wants_to_rename_south_bronx_the_piano_district.php

Published: June 25, 2015

Developer Wants To Rename SouthBronx The ‘Piano District’

Silver Cup Studios Buys Bronx Site

Silvercup Studios, which has hosted televisionproductions such as HBO’s “The Sopranos” and“Girls” at its Queens studios, is moving forward witha third facility in the Port Morris section of the SouthBronx…

Source: Wall Street Journal http://www.wsj.com/articles/silvercup-studios-buys-bronx-site-1436140210

Published: July 5, 2015

Somerset Partner – Mott Haven “In The News”

In The Bronx, Some See The Next Dining Destination

‘It’s always good to be the pioneer,’ says James BeardAward-winning chef Douglas Rodriguez, who isplanning two new restaurants in the South Bronx

Source: Wall Street Journalhttp://www.wsj.com/articles/in-the-bronx-some-see-the-next-dining-destination-1446588068?alg=y

Published: November 3, 2015

The South Bronx Beckons

…Apartments would rent for around $45 a squarefoot, about $3,750 a month for a 1,000-square-footone-bedroom, according to Keith Rubenstein,

Source: New York Timeswww.nytimes.com/2015/09/20/realestate/the-south-bronx-beckons.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0

Published: September 17, 2015

Source: Wall Street Journal

http://www.wsj.com/articles/a-fete-and-a-full-moon-in-the-boogie-down-1446240440

Published: October 30, 2015

A Fête and a Full Moon in the Boogie-Down

Source: Vogue

www.vogue.com/13366619/gigi-hadid-naomi-campbell-lucien-smith-party-2015/

Published: October 30, 2015

Gigi Hadid, Naomi Campbell, and Lucien Smith Party in the South BronxThe whole event: Smith’s Macabre Suite, a party-cum–performance piece celebrating the bacchanal ofdeath; along a Harlem River–abutting bank, aroundwhich the likes of Gigi Hadid, Lexi Boling,and Naomi Campbell huddled…

Keith Rubenstein is clearly a magician, a rainmakerand a genius for our times. If nothing else, hemanaged to get 2,000 New York party people to theSouth Bronx on Thursday night, and he wasn’t evengiving out money or designer handbags.

Somerset Partner – Mott Haven “In The News”

Current View from FDR Drive

The “New” Mott Haven, South Bronx