MAINSTREET AT FLATIRON

520 ZANG ST & 549 FLATIRON BLVD | BROOMFIELD,

OFFERING MEMORANDUM Holliday Fenoglio Fowler, L.P. (HFF) a licensed Colorado real estate broker. 2 THE OPPORTUNITY

Holliday Fenoglio Fowler, L.P. (“HFF”), acting as exclusive representative for the seller, is pleased to present the PROPERTY OVERVIEW opportunity to acquire MainStreet at FlatIron (“The Property”), a 93,657 SF mixed-use center consisting of two multi-tenant buildings with 59,224 SF of office and 34,433 SF of retail in Broomfield, CO. MainStreet at FlatIron is an exceptional value-add opportunity that is currently 56.3% leased to 10 tenants. ADDRESS: 520 ZANG ST & 549 FLATIRON BLVD BROOMFIELD, CO 80021 MainStreet at FlatIron is an attractive option to office tenants desiring quality space, a coveted location in Broomfield, TOTAL GLA: 93,657 SSF excellent access to amenities including a super-regional shopping mall, numerous hospitality offerings, both single family and multifamily residential communities, and close proximity to the U.S. 36 Creative Corridor while offering OFFICE GLA: 59,224 SF competitive rental rates compared to many of the nearby competitors. RETAIL GLA: 34,433 SF The Property is adjacent to the 6.5 million square foot Interlocken Business Park, the premier employment center NUMBER OF BUILDINGS: 2 between Downtown Denver and Boulder and home to the Colorado operations of four Fortune 500 companies: Ball NUMBER OF STORIES: 549 FLATIRON BLD - 1 Corporation, Level 3 Communications, Vail Resorts and Oracle. MainStreet at FlatIron is located within walking 520 ZANG ST - 2 distance of over 2 million square feet of retailers, 986 hotels rooms, and entertainment options anchored by Flatiron Crossing shopping center. This 1.43 million square foot regional shopping center is anchored by Nordstrom, Macy’s, YEAR BUILT: 2001 / 2002 Dillard’s, Dick’s Sporting Goods and AMC Theaters and is the third largest shopping mall in metro Denver. TOTAL OCCUPANCY: 46.0% (56.3% leased) This location is also appealing due to the significant population growth the area has experienced. While average home OFFICE OCCUPANCY: 48.4% (62.0% leased) prices in Boulder exceed $1 million, the median home price within three miles of MainStreet at FlatIron is less than $363,000. This has attracted numerous people to the area who want to experience the lifestyle Boulder offers, but RETAIL OCCUPANCY: 41.9% (46.4% leased) cannot afford the cost of living. Due to the affordability of the area, Broomfield experienced a population increase of PARKING: Surface and parking garage. Total 280 spaces. over 20.1% between 2010 and 2017 with an additional 9.9% growth forecast between 2017 and 2022. SITE AREA: +/- 3.19 acres MainStreet at FlatIron presents an outstanding value-add opportunity to acquire a mixed-use office and retail center PARCEL NUMBERS: 1575-321-02-001 (549 FLATIRON BLVD), located in a strong submarket with significant upside through the lease-up of vacant space. A long-term lease extension 1575-321-02-003 (520 ZANG ST) with expansion space was recently signed with rapidly growing fast-casual restaurant chain, Noodles & Company (Nasdaq: NDLS), who made MainStreet its corporate headquarters. ZONING: PUD (INTERCHANGE INFLUENCE AREA)

MAINSTREET AT FLATIRON OFFERING MEMORANDUM INVESTMENT HIGHLIGHTS 3

EASE OF ACCESS MainStreet at FlatIron is strategically located in the FlatIron District less than one mile from U.S. 36, the main thoroughfare connecting Denver and Boulder with more than 93,000 vehicles per day. The Property is situated off of the Interlocken Loop exit which acts as the main arterial into Flatiron Crossing Mall and Interlocken Business Park with more than 24,000 vehicles per day. The Flatiron Flyer bus provides access to the Property with a stop directly northeast of the Property less than one mile away. The Flatiron Flyer bus route affords direct connectivity to and from Union Station in Denver to downtown Boulder. The FlatIron District is also located within the Transit-Oriented District (TOD) with a future light rail station proposed within walking distance of the Property.

COMPETITIVE MARKET FUNDAMENTALS MainStreet at FlatIron offers lower asking rental rates compared to its peer set that charges on average $5.00-$8.00 per square foot more. This greatly appeals to the cost conscious office tenants looking for high quality office space in a premier location with reasonably priced rental rates and immediate access to amenities. This also allows investors an upside opportunity rarely provided in this market to raise rents as occupancy increases.

VALUE-ADD THROUGH LEASE-UP The Property is currently 56.3% leased with 22,495 SF of vacant office space and 18,442 SF of vacant retail space available. At this level of occupancy, incremental leasing success will significantly impact returns. Noodles & Company’s proven commitment to the asset and recent ~8,000sf expansion, CorePower Yoga’s recent expansion, and the Property’s diverse tenant mix of office, retail and service uses will provide investors with a stable cash flow stream while leasing the remaining spaces.

MAINSTREET AT FLATIRON OFFERING MEMORANDUM INVESTMENT HIGHLIGHTS 4

PROXIMATE TO FORTUNE 500 COMPANIES AND MAJOR BUSINESSES MainStreet at FlatIron is immediately north of Interlocken, a 963-acre, 6.5 million SF business park located in Broomfield at the heart of the Denver-Boulder “36 Creative Corridor”. The park is home to technology and telecom tenants, with numerous pacesetting companies including Vail Resorts, Webroot, Oracle, and Level 3 Communications. Additionally, MainStreet is across the street from four hotels totaling 986 rooms serving the robust office market.

STRONG NEIGHBORING RETAIL TENANCY MainStreet’s name-brand retail tenants include Jason’s Deli and CorePower Yoga. The Property shares a parking field with Walmart Supercenter. Immediately across the street is FlatIron Crossing Mall, a 1.43 million SF, high-end, super-regional mall anchored by Nordstrom, Macy’s, and Dillard’s, and featuring Dick’s Sporting Goods and Apple Store, among others. The adjacent FlatIron Marketplace power center is headlined by big box retailers Best Buy and Pier 1 Imports. Such strong retail neighbors help drive traffic to MainStreet’s retail component and offer unmatched access to these retail amenities for the Property’s office tenants.

AFFLUENT TRADE AREA WITH BOOMING RESIDENTIAL DEVELOPMENT MainStreet at FlatIron benefits from exceptional demographics with average incomes in excess of $112,000 and a population of more than 135,100 people within a five mile radius. The surrounding trade area boasts robust demographics with high disposable incomes due to the area’s exceptional employment base, attractive amenities, and a highly educated workforce. There has also been significant single family and multifamily development in the area as of late, displaying the demand for housing in the area.

BELOW REPLACEMENT COST MainStreet at Flatiron is an REO property that is being offered at a significant discount to replacement cost, providing investors an excellent basis on this acquisition that will lock in a competitive advantage in the marketplace for the Property. Replacement cost for an asset similar to the Property is currently well north of $200/SF.

MAINSTREET AT FLATIRON OFFERING MEMORANDUM MAINSTREET SITE PLAN 5

PARKING GARAGE (NAP, OWNED BY ASSOCIATION)

MAINSTREET AT FLATIRON OFFERING MEMORANDUM EASTERN FACING AERIAL 6

Downtown Denver 20 mins. N First Bank Center Hunter Douglas Ball Corp Interlocken VMWare Omni Interlocken Vail Resorts NW Parkway/E470 Hotel Park-n-Ride To DIA - 30 Mins Oracle Renaissance Boulder Webroot Flatiron Hotel 232 Rooms TownPlace Suites by Marriott 151 Rooms Boulder 10 Mins. Fairfield Inn & Suites 213 Rooms Opening Dec 2017

Level 3 Communications

Bell Flatirons Apartments 1,206 Units

MAINSTREET AT FLATIRON OFFERING MEMORANDUM JULES SHERWOOD ANDREW YAROMA HFF DENVER HFF DENVER [email protected] [email protected] 720-744-2701 303-515-8013

ALL OFFERS/LOIS CAN BE ACCEPTED THROUGH AN ONLINE PLATFORM (VIA TEN-X COMMERCIAL) AND/OR DIRECT CONTACT TO THE ABOVE LISTED HFF PROFESSIONALS

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