EXECUTIVE SUMMARY
PLAZA
DALLAS CENTRAL BUSINESS DISTRICT
CLASS A OFFICE TOWER GLOBAL HEADQUARTERS FOR AT&T TRIPLE NET-LEASED THROUGH AUGUST 2030 PLAZA
WORLD CLASS INVESTMENT OPPORTUNITY
CBRE, as exclusive advisor, is pleased to present to qualified investors a truly unique opportunity to acquire One AT&T Plaza (the “Property”), a landmark office tower that houses the global headquarters of AT&T and is situated at the heart of Dallas’ revitalized central business district (“CBD”).
One AT&T Plaza is fully leased to AT&T (NYSE: T; S&P: BBB+) through August 2030 and has served as the company’s global headquarters since 2008. The Property was constructed in 1983 for Southwestern Bell and has been occupied by AT&T and its predecessor companies since that time. With significant renovations completed over the last 10 years, the fully amenitized property is the heart of AT&T’s downtown campus that spans seven office and parking buildings over five city blocks. The offering provides investors with a highly secure, long-term cash flow and presents a rare opportunity to invest in world-class space and tenancy.
One AT&T Plaza’s combination of recently and significantly renovated real estate and long-term cash flow secured by the world’s largest communications company comprises one of the most compelling investment opportunities in the market today.
1 | ONE AT&T PLAZA AT&T’s recently announced $100-million Discovery District, in addition to the $100 million the company has already invested into its downtown campus, reflects the company’s long-term commitment to the Dallas CBD.
ASSET PROFILE INVESTMENT HIGHLIGHTS
LOCATION 208 South Akard Street + Landmark, Class A Office Tower Dallas, Texas 75201 - Numerous Significant Renovations Completed - Fully Amenitized Campus & Abundant NET RENTABLE AREA 965,800 RSF Walkable Amenities
LEASED 100% + Investment-Grade Tenant - S&P: BBB+ NUMBER OF STORIES 37 - Fitch: A- - Moody’s: Baa1 YEAR BUILT 1983 + Long-Term, Stabilized Cash Flow TYPICAL FLOOR SIZE 25,000 to 30,000 RSF - Recently Renewed Lease through August 2030 - No Termination or Contraction Options SITE ± 1.5 Acres - Annual Contractual Rent Increases
PARKING 557 Garage Spaces* + Revitalized Dallas CBD - Development Investment of $5 Billion *Easement access to spaces in Seven AT&T Plaza garage at - Exponential Residential Growth 1212 Jackson Street. - Pedestrian Friendly Environment with Mass Transit Access + Dallas/Fort Worth - Top Market for Property Investment - Leading Job & Population Growth
Executive Summary | 2 3 | ONE AT&T PLAZA LANDMARK, CLASS A OFFICE TOWER
Eighth-Largest Office Tower Second-Largest Floor Plates in the CBD In the Dallas CBD (by Square Footage) Average 30,000 RSF Minimal Column Intrusions Iconic, Architecturally Distinct Classic Travertine-Clad Exterior Access to Parking Highly Visible from I-30 557 Dedicated Garage Spaces Dramatic LED Lighting at Night (2 Minute Walk) 7,100+ Spaces within a Five Block Radius (Excludes AT&T Owned Garages) Superior Materials and Construction Quality Class A Finishes throughout All Tenant Superior Walkability and Transit Access and Common Areas Scores of 95 and 90, Respectively
Modern Tenant Finishes Best-in-Class Amenities Recently Renovated Executive and AT&T Mobility Retail Store Business Unit Floors CVS Pharmacy Open Work Spaces Starbuck’s Generous Ceiling Heights Throughout Corporate Cafeteria & Dining Area Modern Conference Rooms Recent Capital Improvements Climate-Controlled Access to AT&T Significant Renovations Completed & Campus Buildings & Garages Underway (AT&T Funded Improvements)
CORPORATE CAFETERIA & DINING AREA AT&T MOBILITY RETAIL STORE
Executive Summary | 4 STABLE & PREDICTABLE GLOBAL HEADQUARTERS LOCATION— CASH FLOW LONG-TERM COMMITMENT
100% Leased (Triple Net) through August 2030 Global Headquarters for AT&T since 2008
Contractual Escalations (2% Annually) Provide for a Originally Constructed for Southwestern Bell Steadily Increasing Income Stream Recently Renewed Long-Term Lease No Contraction or Termination Options Houses ±3,000 AT&T Employees ±$278 Million of Revenue over the Remaining Lease Significant AT&T Funded Capital Improvements Term as of October 2018
Lease Guaranty by Parent Company AT&T, Inc.
5 | ONE AT&T PLAZA INVESTMENT-GRADE TENANCY
BBB+ (S&P) | Baa1 (Moody’s) | A- (Fitch) Credit Ratings
#9 2017 Fortune 500 Rank
#19 2017 Global Fortune 500 Rank
$160.5 Billion FY 2017 Revenue
$29.5 Billion FY 2017 Net Income
127% YOY Net Income Growth
$444 Billion Total Assets
±254,000 Number of Employees
One AT&T Plaza anchors the company’s Dallas CBD campus. With more than 6,000 downtown employees, AT&T is the CBD’s largest private-sector employer.
Executive Summary | 6 VIBRANT DALLAS CBD LOCATION LOVE FIELD
DESIGN DISTRICT UPTOWN
VICTORY PARK
FAIRMONT THE DREVER
HISTORIC WEST END MOSAIC
WESTIN CROWNE PLAZA
PLAZA LTV TOWER
THE DAVIS METROPOLITAN
THE KIRBY
ADOLPHUS MANOR HOUSE TWO AT&T JOULE OFFICE
DPL FLATS
1122 JACKSON THREE AT&T OFFICE FOUR AT&T OFFICE SEVEN AT&T FIVE AT&T INTERURBAN GARAGE GARAGE
SIX AT&T GARAGE
BLOCKS FROM 3 DART LIGHT RAIL
LOCATED ON 95 90 THE PLANNED WALKABILITY TRANSIT D2 RAIL LINE SCORE ACCESS SCORE
7 | ONE AT&T PLAZA ±135,000 Daytime Population #1 in DFW
ARTS DISTRICT SHERATON $5 Billion Development GABLES REPUBLIC since 2010
1900 PACIFIC 11,000+
CAMBRIA CBD Residents Up 4.5x since 2004
WILSON
UNT LAW SCHOOL HOTEL INDIGO ±8,200 THE MERCANTILE Residential Units 90% Leased MAIN STREET GARDEN NEIMAN MARCUS FLAGSHIP STATLER HILTON
±8,000
LONE STAR LOFTS Hotel Rooms & Suites
One AT&T Plaza offers direct access to best-in-class hotels, cultural amenities, restaurants and retail, residences — resulting in a superior tenant experience.
Executive Summary | 8 DYNAMIC LIVE-WORK-PLAY ENVIRONMENT
DALLAS ARTS DISTRICT KLYDE WARREN PARK
NASHER SCULPTURE CENTER HISTORIC WEST END PIONEER PLAZA | OMNI HOTEL
MAIN STREET GARDEN | STATLER HOTEL & RESIDENCES THE JOULE HOTEL MAGNOLIA HOTEL
THE ADOLPHUS STONE STREET GARDENS IRON CACTUS
9 | ONE AT&T PLAZA AT&T DISCOVERY DISTRICT
$100-Million Investment by AT&T
Transformation into a True Destination — for Employees, Residents & Tourists
Conversion of Three City Blocks to Pedestrian-Only Access
New Landscaped Plazas with Eateries & Shops
New Mini-Amphitheater, Outdoor Art & Fountains
Initial Phase Currently Underway
Executive Summary | 10 THE DALLAS CBD MARKET
+ Cost-Effective Alternative to Uptown + Positioned for Growth
95% Built Out and More Than 90% Leased Largest Business Center in North Texas
Class A Rents 50%+ Greater Than CBD Sustained Urban Development and Class A Rents Revitalization
Increasingly Limited Developable Sites — Steadily Increasing Price PSF Differential Decline in Outmigration to Uptown with Uptown
Marked Return of Institutional Owners
+ Conversion of Previously Obsolete Office Space + Direct Access to Primary Thoroughfares ±7.0 MSF of CBD Office Space Repurposed Bound by: since 2003 • Interstate 45/US-75 to the East Nearby West End — Burgeoning Residential • Interstate 30 to the South and Tech/Creative Office Population • Interstate 35E to the West • Woodall Rodgers Freeway to the North
Dallas North Tollway Just Two Minutes + Dallas CBD Momentum to the North Steady Leasing Activity (3.5 MSF 20 Minutes to Dallas/Fort Worth in 2016 & 2017) International Airport Rents up 15% over the Last Three Years 10 Minutes from Dallas Love Field
11 | ONE AT&T PLAZA MAJOR DALLAS CBD EMPLOYERS
The largest business center in the nation’s top market for growth, the Dallas CBD is the heart of the local business community with many of the city’s most prestigious firms and a workforce of ±135,000 people.
Executive Summary | 12 380 Decatur Savannah Denton 380
380 McKinney Fairview 377 35E Little Elm Corinth 289 Frisco
Argyle Sam Rayburn Tollway Lewisville Lake Allen 75 Dallas North Tollway
Justin The Colony 35E Legacy
Lewisville Parker
35W N Central Expressway 377 Plano 114 Flower Stemmons Fwy Mound Murphy 287 President George Bush Tpke Roanoke Fort Worth Trophy Club Carrollton Alliance Airport 35E Far North Dallas 78 170 Grapevine 289 Haslet LAN Lake R P NED 75 114 Coppell RRIDO Addison CO ELT REGIONAL Airport ON B TT Southlake CO Alliance 26 Addison Grapevine Dallas North Tollway Keller Farmers Branch Eagle 635 635 Mountain Las Colinas Dallas/Fort Worth 354 Lake Highlands Colleyville International Airport 78 377 114 348 Northwest Highway LOOP Northwest FW Saginaw 12 244 Mid-Cities Irving Dallas Love Park Cities 820 121 183 30 183 35E Field Airport 75 North Richland Hills 183 PLAZA Euless Lakewood Meacham 35W Hurst 356 12 Airport Uptown 10 287 East/North East FW 12 Old East Dallas 183 30 121 366 West Dallas South Dallas/Fair Park 820 360 Dallas CBD Cedars Fort Worth CBD 352 30 Tom Landry Fwy 30 635 Arlington 180 180 77 30 180 Oak Cliff Grand 175 Prairie 45 287 Mountain Creek Lake
20 35W 20 Benbrook
20 377
West Southwest FW Southeast FW 287 DALLAS/FORT WORTH: TOP U.S. MARKETPLACE
Central U.S. Location Highest Projected Job Growth World’s Third-Busiest Airport #1 Office-Using Employment Growth (2017- 2019) One of the Most Diverse Economies Office-Using Sectors Comprise 42% Very Low Unemployment 3.5% Compared to National Average of 4.1% Pro-Business Environment (Seasonally Adjusted) Low Costs of Living & Doing Business Nation-Leading Absorption Second-Fastest Growing Metro ±13 Million SF since 2015 ±400 New Residents Each Day
Top Annual Job Growth 3.4% — #2 Among the Largest U.S. Metros
13 | ONE AT&T PLAZA 380 Decatur Savannah Denton 380
380 McKinney Fairview 377 35E Little Elm Corinth 289 Frisco
Argyle Sam Rayburn Tollway Lewisville Lake Allen 75 TOP EMPLOYMENT GROWTH RATE | LARGEST METROS Dallas North Tollway
Justin The Colony 35E Legacy Atlanta 3.9
Lewisville Parker Dallas/Fort Worth 3.4
35W Plano N Central Expressway 377 Houston 3.1 114 Flower Stemmons Fwy Mound Murphy Phoenix 2.6 287 President George Bush Tpke Roanoke Miami 2.4 Fort Worth Trophy Club Carrollton Alliance Airport 35E Far North Dallas 78 San Francisco 2.4 170 Grapevine 289 Haslet LAN Lake R P NED 75 114 Coppell RRIDO Addison CO Los Angeles 1.9 ELT REGIONAL Airport ON B TT Alliance Southlake CO Addison Alliance 26 Washington DC 1.7 Grapevine Dallas North Tollway Keller Farmers Branch Boston 1.6 Eagle 635 635 USA 1.5 Mountain Las Colinas New York City 1.1 Dallas/Fort Worth 354 Lake Highlands Colleyville International Airport 78 377 114 Chicago 0.7 348 Northwest Highway LOOP Northwest FW Saginaw 12 244 Mid-Cities Philadelphia -0.3 Irving Dallas Love Park Cities 820 121 183 30 183 35E Field Airport 75 North Richland Hills 183 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Euless Lakewood Meacham 35W Hurst 356 12 Airport Uptown 10 287 East/North East FW 12 Old East Dallas Sources: Bureau of Labor Statistics, Moody’s Analytics 183 30 Note: Annual % change through February 2018, total non-farm employment (seasonally adjusted) 121 366 West Dallas South Dallas/Fair Park 820 360 Dallas CBD Cedars Fort Worth CBD 352 30 Tom Landry Fwy 30 635 Arlington 180 180 77 30 180 Oak Cliff Grand 175 Prairie 45 287 Mountain Creek Lake
20 35W 20 Benbrook
20 377
West Southwest FW Southeast FW 287
Investors surveyed by CBRE ranked DFW the second-hottest property market in the nation, trailing only Los Angeles and edging out New York City, San Francisco and Seattle.
Executive Summary | 14 PLAZA
DALLAS CENTRAL BUSINESS DISTRICT
EXCLUSIVE MARKETING ADVISORS
GARY CARR JOHN ALVARADO ROBERT HILL JARED CHUA Vice Chairman Senior Vice President First Vice President First Vice President +1 214 979 6301 +1 214 979 5670 +1 214 979 6316 +1 713 787 1975 [email protected] [email protected] [email protected] [email protected]
MICHAEL J. U. MONAHAN EVAN STONE ERIC MACKEY MARY CLAIRE HOUSEMAN Vice Chairman Senior Vice President Senior Vice President Financial Analyst 212.984.6665 +1 214 725 6666 +1 214 979 6317 +1 214 979 5662 [email protected] [email protected] [email protected] [email protected]
DEBT & STRUCTURED FINANCE
GREG GREENE SCOTT LEWIS Senior Vice President Senior Vice President +1 214 979 5617 +1 214 979 5605 [email protected] [email protected]
CBRE © 2018 All Rights Reserved. All information included in this proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.
The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.