’s Premier Boutique Office Investment Opportunity

EXECUTIVE SUMMARY EXECUTIVE SUMMARY THE GRAHAM BUILDING AT DILWORTH PARK

© 2019 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

2 THE GRAHAM BUILDING AT DILWORTH PARK I THE OFFERING

HOLLIDAY FENOGLIO FOWLER, L.P (“HFF”), HAS BEEN RETAINED ON AN EXCLUSIVE

BASIS TO ARRANGE THE SALE OF THE GRAHAM BUILDING AT DILWORTH PARK

(THE “PROPERTY,” OR “30 SOUTH 15TH STREET”), A 243,748 SQUARE FOOT, 25-STORY

CLASS A OFFICE TOWER IN THE HEART OF PHILADELPHIA’S THRIVING CENTRAL

BUSINESS DISTRICT (OR “CBD”). THE GRAHAM BUILDING AT DILWORTH PARK IS A

UNIQUE CLASS A BOUTIQUE BUILDING, BOASTING 95% OCCUPANCY AND OVER 7.8

YEARS OF WEIGHTED AVERAGE LEASE TERM. THE PROPERTY OFFERS UNMATCHED

VIEWS OF CITY HALL AND DILWORTH PARK, A FULLY UPGRADED AMENITY PACKAGE,

DESTINATION DISPATCH ELEVATORS, AND EXQUISITE COMMON AREAS SHOWCASING

THE PROPERTY’S BOUTIQUE ~10,000 SQUARE FOOT FLOOR PLATES. THE OFFERING

PRESENTS A RARE OPPORTUNITY TO ACQUIRE A CENTRALLY-LOCATED OFFICE

BUILDING WITH LARGE BLOCKS OF SPACE THAT WILL CONFORM TO A WIDE RANGE

OF TENANT REQUIREMENTS.

NO OTHER PROPERTY IN CENTER CITY PHILADELPHIA CAN OFFER ITS TENANTS THE

MIX OF AMENITIES, MODERN AESTHETICS AND SENSE OF PLACE THAT THE GRAHAM

BUILDING AT DILWORTH PARK PROVIDES.

3 THE GRAHAM BUILDING AT DILWORTH PARK I 30 S 15TH STREET PHILADELPHIA, PA 19102

94.5% LOBBY RENOVATED IN 2017 PERCENT LEASED

243,748 SF TOTAL SQUARE FOOTAGE

232,473 SF OFFICE SQUARE FOOTAGE

7.8 YEARS WEIGHTED AVERAGE LEASE TERM

25 NUMBER OF STORIES

+\- 10,200 SF AVERAGE FLOOR PLATE

1985 / 2015 - 2019 YEAR BUILT / RENOVATED

4 THE GRAHAM BUILDING AT DILWORTH PARK I UNMATCHED CENTRALIZED LOCATION

The Graham Building at Dilworth Park is located in the center of Philadelphia’s dynamic and evolving Central Business

District at the intersection of Market and 15th Street. The Property sits adjacent to , the central landmark of Philadelphia and is surrounded by Philadelphia’s major office and retail destinations. Within the last 10 years this immediate area has been the primary recipient of much of the City’s private and public development, evidenced by nearly three quarters of a billion dollars of investment activity.

SELECT NEIGHBORING CAPITAL INVESTMENT

PROJECT DEVELOPMENT COST DEVELOPER COMPLETION DATE

1 RITZ-CARLTON RESIDENCES $285,000,000 Arden Group January 2009

2 DILWORTH PARK $55,000,000 City of Philadelphia September 2014

3 AVENIR APARTMENT DEVELOPMENT $60,000,000 Alterra Property Group April 2015

4 W HOTEL & THE ELEMENT $346,000,000 Chelsten Development November 2019 SEPTASUBURBAN STATION

N 15TH ST TOTAL $746,000,000

CUTHBERT ST

N JUNIPER ST

TEMPLE UNIVERSITY COMMERCE ST CENTER CITY CAMPUS MARKET STREET Market Frankford Line

15TH STREET STATION RENOVATION DILWORTH S 16TH ST PARK $55M MARKET ST THE GRAHAM BUILDING AT 2 DILWORTH PARK PHILADELPHIA CITY HALL

RANSTEAD ST

RITZ-CARLTON 1 RESIDENCES $285M RANSTEAD ST

3 W HOTEL 4 & THE ELEMENT S 15TH STREET $346M

AVENIR Broad Street Line DEVELOPMENT CHESTNUT ST $60M BROAD STREET

SANSOM ST

5 THE GRAHAM BUILDING AT DILWORTH PARK I SELECT NEIGHBORING CAPITAL INVESTMENT

RITZ-CARLTON RESIDENCES | DELIVERED: Q1 2009

Ritz-Carlton Residences, a $285M project, are situated directly across the street from the Graham Building and sit adjacent to the Ritz-Carlton Hotel. The addition of these luxury condominiums is a testament to the enhanced prestige of the immediate location. In addition to improving the location by its mere presence, the Ritz- Carlton Residences have added additional retail to the location.

• $519k - $14M unit price range

• Ground level retail: La Colombe Coffee Roasters, Waterfront Gourmet Café & Deli

DILWORTH PARK RENOVATION | DELIVERED: Q4 2014

The City of Philadelphia completed a $55M renovation to the 21,780 square feet of public space that sits on the western side of City Hall (directly across from the Graham Building at Dilworth Park) in September of 2014. The renovation is responsible for drastically improving the perception of the location and acts as a major enhancement to the area’s tourism draw. Upgrades to the site include:

• Complete reconstruction of underlying mass transit concourse

• Addition of green space with dual purpose as event space

• 185x60’ public fountain

• Public art installation

• Café with 100-person capacity

• Seasonal ice-skating rink

DEVELOPMENT OF THE W HOTEL AND THE ELEMENT | ESTIMATED COMPLETION: Q4 2019

Chelsten Development is in its final stages of development of the dual-branded W and Element hotel boasting 755 hotel rooms in total and standing 51 stories high. The development sits diagonal from the Property on the corner of 15th Street and Chestnut Street. The $364M development will feature:

• 755 hotel rooms (295 as the W brand and 460 as Element)

• Outdoor pool bar and terrace

• Market-leading meeting and banquet facilities

• Food and beverage outlets

• Class-A ground floor retail space

6 THE GRAHAM BUILDING AT DILWORTH PARK I STABILIZED RENT ROLL WITH LEASE TERM LONGEVITY

The Property boasts a WALT of 7.8 years with over 30% of revenue being generated by The Graham Company which has 10 years of remaining lease term and tenure at the Property of just under 17 years.

• Weighted Average Lease Term: 7.8 Years • In-place rent: currently $27.75/SF which is a 20% discount to current market rental rates • 30% of revenue from The Graham Company • Modern tenant fit-outs imply minimal rollover costs to • The Graham Company tenure to date: 17 years owner • Remaining lease term: 10 years

The Graham Company operates as an insurance and employee benefits broker and is headquartered in Philadelphia at the Property. The company provides service for construction, manufacturing, distribution, chemical, and other industries. The Graham Company offers consulting to companies to prevent loss, train high-risk employees, manage claims, and help select insurance programs. The Graham Company has offices in Philadelphia, New York City and Washington, D.C.

SECTOR: Financial LEASE EXPIRATION DATE: April 2029

INDUSTRY: Insurance Brokerage FOUNDED: 1950

ORIGINAL LEASE DATE: July 2002 HEADQUARTERED: Philadelphia, PA The Graham Building At Dilworth Park

7 THE GRAHAM BUILDING AT DILWORTH PARK I FULLY UPGRADED BOUTIQUE BUILDING

The Graham Building at Dilworth Park fits within a unique niche of office space when compared to other buildings within the Market. The Property’s typical 10,200 SF floor plate gives smaller users the convenience and privacy of a dedicated floor suite which is a rarity within the market. Additionally, the Property is equipped with an amenity package similar to larger buildings such as: full service gym, service-oriented retail, modern lobby, state-of-the-art elevator management system, full- time security desk and breathtaking views of City Hall and Dilworth Park.

SIGNIFICANT RECENT CAPITAL INVESTMENT RECENT CAPITAL IMPROVEMENTS

Ownership invested significant capital improvements FACADE REPAIR to position the Property as a market leading Class A ENERGY EFFICIENCY UPGRADES building. These recent upgrades are at early stages ELEVATOR MODERNIZATION of their useful life, which allows an investor to fully COSMETIC UPGRADES* realize their full benefit. MECHANICAL, LIFE SAFETY, ETC

TOTAL BASE BUILDING Approximately $6,000,0000

* Main Lobby/Elevator Lobbies/Bathrooms

8 THE GRAHAM BUILDING AT DILWORTH PARK I SERVICE-ORIENTED RETAIL TENANTS

Parliament Espresso & Coffee Bar is a upscale coffee shop offering a wide variety of quality coffee products, beverages and breakfast and lunch fare. The coffee shop offers spacious seating and a unique environment due to its views of City Hall and attractive fit-out. Parliament is a member of Constellation Culinary Group (Formerly STARR Catering Group).

United bank of Philadelphia is a Full-service banking with an ATM.

9 THE GRAHAM BUILDING AT DILWORTH PARK I +/- 12,000 SF FLOOR PLATES PROVIDE UNMATCHED BRANDING

Mid-size, growth tenants have an out-sized presence at The Graham Building at Dilworth Park, with many tenants occupying full floors.

THE HIVE

PIPELINE

10 THE GRAHAM BUILDING AT DILWORTH PARK I CENTRAL LOCATION APPEALS TO BOTH MARKET STREET EAST AND WEST

The central location of the Property draws tenants from both of the primary Philadelphia CBD submarkets of Market East and Market West. Both submarkets have experienced considerable rental growth in recent years and have 70K SF collectively shown nearly 9% growth since Q1 2017. The Graham Building OF NEW LEASING SINCE 2018 at Dilworth Park has leveraged its centralized location and the strengthened AT THE GRAHAM BUILDING fundamentals of the larger CBD market, executing over 70,000 square feet of lease deals since January 2018.

CENTRAL BUSINESS DISTRICT CLASS A OFFICE MARKET - Q1 2019

MARKET WEST MARKET EAST TOTAL / AVERAGE

CLASS A OFFICE RENT PSF (GROSS) $34.61 $32.55 $34.34

CLASS A OFFICE INVENTORY (SF) 28,308,646 4,273,470 32,582,116

CLASS A % LEASED 93.2% 90.9% 92.90%

CLASS A UNDER CONSTRUCTION - - -

MARKET RENT GROWTH RATE 9.2% 6.7% 8.87%

28.3M SF | 93.2% OCCUPANCY MARKET WEST

THE GRAHAM BUILDING AT DILWORTH PARK

4.2M SF | 90.9% OCCUPANCY MARKET EAST

11 THE GRAHAM BUILDING AT DILWORTH PARK I CENTRALIZED TRANSIT ORIENTED LOCATION

Philadelphia benefits from a multi-modal, regional transportation system which offers exceptional accessibility throughout the city and suburbs. The Property’s central location provides unmatched access to all areas of Center City, its surrounding neighborhoods and the entire Philadelphia region.

The Graham Building at Dilworth Park is located adjacent to concourse access to Suburban Station, the primary CBD commuter M rail station served by SEPTA. Access to the concourse is a 2-3 minute walk from a tenant’s desk. Amtrak’s 30th Street Station, the

third busiest stop along the nation’s Northeast rail corridor, is alsoM easily accessible via the Market Frankford Line with a direct stop also being located less than a minute walk from the Property.

In addition to its extremely walkable location, the Property offers tenants convenient access to all major arterial roadways of the

region, including Interstates 76, 676 and 95. M 20th 18th 16th 22nd 12th 10th Spring Garden St. M

PHILADELPHIA MUSEUM OF ART

RODIN MUSEUM

BARNES FOUNDATION Callowhill St.

Rail Park 676 Vine St. M HAHNEMANN Franklin Logan HOSPITAL Square Square MCGEE REHAB 76 ACADEMY OF NATURAL PA ACADEMY CONVENTION SCIENCE OF FINE ART CENTER

FEDERAL Broad Street Line Street Broad CONSTITUTION U.S. MINT Cret RESERVE BANK CENTER Levy Park READING TERMINAL Park MARKET Arch St. Suburban Station M M Regional Rail Line COMCAST Love TECHNOLOGY COMCAST Jefferson Station CENTER CENTER Park M JFK Blvd M VISITORS AMTRAK CENTER 30th Street Station M Market Frankford Line CITY HALL M M M Market St. M M M M M M M DREXEL Trolley Lines

UNIVERSITY Dilworth Park THE GRAHAM Chestnut St. BUILDING JEFFERSON UNIVERSITY HOSPITAL INDEPENDENCE Independence

HALL Regional Rail Line Rail Regional Broad St. National Amtrak NE Corridor Amtrak Park

Walnut St. M Schulkill Banks Rittenhouse Washington Square PATCO High Speed Line Square M M M

UNIVERSITY OF PENNSYLVANIA FRANKLIN FIELD

PENN MUSEUM OF ARCHAEOLOGY

University City M Station

100 100 WALK TRANSIT SCORE SCORE

12 THE GRAHAM BUILDING AT DILWORTH PARK I NOTES:

13 THE GRAHAM BUILDING AT DILWORTH PARK I NOTES:

14 THE GRAHAM BUILDING AT DILWORTH PARK I EXCLUSIVE MARKETING ADVISORS

DOUG RODIO BRETT SEGAL RYAN ADE NEIL CAMPBELL SENIOR MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR DIRECTOR 484.532.4205 484.532.4174 484.532.4209 484.532.4176 [email protected] [email protected] [email protected] [email protected]

1700 MARKET STREET, SUITE 3232 | PHILADELPHIA, PA 19103 | HFFLP.COM