INFILL TROPHY ASSET INDIANAPOLIS CBD EXECUTIVE SUMMARY
Holliday Fenoglio Fowler, L.P. (“HFF”) acting by and through Holliday GP Corp, an Indiana licensed real estate broker INVESTMENT OVERVIEW
is pleased to present Pulliam Square, a brand-new, 145-unit luxury mid-rise Multi-Housing community in downtown Indianapolis. The HFF property is uniquely positioned to afford residents a true Live / Work / Play environment as it is within walking distance to the CBD and the Mass Ave Cultural District; Indianapolis’ most dynamic entertainment corridor; home to some of the most popular restaurants, bars, entertainment venues, and economic activity in all of Indianapolis.
One block from Pulliam Square is access to the 8-mile Cultural Trail, a world class urban bike and pedestrian path, allowing residents seamless connection to eclectic neighborhoods, cultural districts, and entertainment amenities across the city. To the east of Pulliam Square is the Historic Lockerbie Neighborhood which boasts average list prices for condominiums and townhomes of $421,000 and single family homes for $766,000.
EXECUTIVE SUMMARY Pulliam Square was completed in September of 2015 and is currently 90% leased; the property has averaged nearly 12 leases per month through lease up. Residents enjoy 96 up-scale luxury living in a fully-amenitized community set in an urban, walkable setting. WALK SCORE
2 DOWNTOWN INDIANAPOLIS’ MOST » WALKABLE MULTI-HOUSING DEVELOPMENT
PROPERTY DESCRIPTION 95 ADDRESS: 152 East New York Street, Indianapolis, IN 46204 BIKE SCORE YEAR BUILT: 2015 CURRENT OCCUPANCY: 72% as of 5/17/2016 (Property is in Lease-Up) AVERAGE HOUSEHOLD CURRENT LEASED: 90% as of 5/17/2016 INCOME VS. IN-PLACE RENTS TOTAL UNITS: 145 $7,992 AVERAGE UNIT SIZE: 976 square feet MEDIAN MONTHLY UNIT INCOME COMMERCIAL SPACE: 13,656 square feet (3 tenant bays | 82% Leased | LOI for 100% Leasing) NUMBER OF STORIES: Five 20.4% LAND AREA: 1.26 acres RENT-TO-INCOME RATIO DENSITY: 115.10 units per acre $1,633 PARKING: 155 parking spaces in adjacent parking garage (1.1 spaces / unit) AVERAGE RENTS UNION 50 MASS AVE » INDY VIBRANT DISTRICT SHOPS AND A OF EXECUTIVE SUMMARY FINE RESTAURANTS
CULTURAL TRAIL
EAGLE
PACERS BIKESHARE RATHSKELLER
INVESTMENT HIGHLIGHTS 3 INSTITUTIONAL, CLASS “A” ASSET IN A CORE, INFILL LOCATION Completed in 2015, Pulliam Square is a trophy Class A community and the first to be built downtown that provides less than one block access to both the CBD and Mass Ave. This best-in-class property presents the rare opportunity to acquire a distinct asset with a desirable infill location, abundant community amenities, leased retail, and some of the finest unit interiors including granite countertops, stainless steel appliances, espresso and white cabinets, and wood-style flooring. Residents have easy access to the finest shopping, dining, and entertainment venues in the entire city. Due to these factors Pulliam Square has achieved a Walk Score of 96.
STEPS FROM MASS AVE In addition to the two on-site restaurants, The Tap and Wild Eggs, Pulliam Square residents can walk out their front door and have direct access to Mass Ave. The one mile long strip is home to some of the most popular bars, restaurants, entertainment venues, and retail in Indianapolis. Included among them are the famous 1,800 seat concert hall, Murat Center and the historic Rathskeller German beer hall and massive outdoor beer garden. Intersecting with Mass Ave are parts of the 8-mile long Cultural Trail, an urban bike and pedestrian path that connects all points of downtown. At various spots along the cultural trail are stations for Indianapolis’ “Pacers Bikeshare” and various parking spots for the BlueIndy car sharing service.
THE SALESFORCE EFFECT Among its peer cities in the Midwest, Indianapolis leads in tech industry employment as a percentage of total employment which currently stands at 5.2%...and it will be growing. Salesforce just announced it will grow its presence in Indianapolis, just one and a half blocks from Pulliam Square, by taking 250,000 square feet and hiring 800 new employees at what is currently known as Chase Tower. The tower will be renamed Salesforce Tower, creating a Midwest headquarters. Salesforce Tower Indianapolis joins the ranks of other regional headquarters including Salesforce Tower NY and Salesforce Tower London, and the company’s new global headquarters, Salesforce Tower San Francisco. NEARLY MASS AVE AREA AMENITIES MAP 40 RESTAURANTS & BARS
CYCLE BAR THE TAP
BALL & BISCUIT WILD EGGS
BAKERSFIELD THE EAGLE MARSH GROCERY STARBUCKS BRU BURGER
THREE DOGS BAKERY RATHSKELLER EXECUTIVE SUMMARY GLOBAL GIFTS YMCA MASS AVE
4 $200 OUTLIERS BREWING CO. PIZZOLOGY MILLION UNION 50
IN RECENT DEVELOPMENT ST JOSEPH’S BREWERY
CHATHAM TAP
MESH RESTAURANT
OVER
LEGEND FORTYFIVE
50OFFICE LOCATIONS & RETAIL SHOPS EXECUTIVE SUMMARY
CYCLE BAR THE TAP
BALL & BISCUIT WILD EGGS
BAKERSFIELD THE EAGLE MARSH GROCERY STARBUCKS BRU BURGER
THREE DOGS BAKERY
RATHSKELLER GLOBAL GIFTS YMCA
OUTLIERS BREWING CO. PIZZOLOGY 5
UNION 50
ST JOSEPH’S BREWERY
CHATHAM TAP
MESH RESTAURANT
FORTYFIVE INVESTMENT HIGHLIGHTS A DINING DESTINATION With its Walk Score of 96, Pulliam Square is Indianapolis’ most walkable Multi-Housing community and places its residents steps from some of the best dining options in all of Indianapolis. In the past few years there have been numerous new restaurants brought into the market and home grown by local chefs. At Pulliam Square, The Tap has opened to crowds for both evening dining as well as a robust lunch business; Wild Eggs, a new-to-market breakfast concept from Louisville, opened in early May 2016. Across the street from the property are Cincinnati transplants Eagle and Bakersfield. Other notable restaurants and bars within two blocks of Pulliam Square include: Ball & Biscuit (high-end cocktail lounge), Union 50 (restaurant & cocktail lounge), Pizzology (high-end pizzeria), and Libertine (craft cocktail lounge).
@ PULLIAM SQUARE WITHIN 3 BLOCKS OF PULLIAM SQUARE EXECUTIVE SUMMARY DOWNTOWN’S MOST DESIRABLE DEVELOPMENT Pulliam Square has been very well received by the residents moving from the suburbs to downtown as well as relocating to Indianapolis. The Property has had a strong lease- up, averaging 20 leases per month, even during the typically slow leasing time periods of December, January, and February, and is currently 90% leased. In addition to the strong lease-up of the residential units, Pulliam Square opened its doors with leases signed for 2 of its 3 retail spaces with an LOI signed on the 3rd. The LOI is signed with Cycle Bar - Premium Indoor Cycling. 6 This is the best lease-up of retail at any Indianapolis Multi-Housing development.
UNIT MIX
UNITS UNIT DESCRIPTION % OF TOTAL SQUARE FEET MARKET RENT RENT PER SF 13 Studio 9% 654 $1,241 $1.89 87 One Bedroom 60% 900 $1,471 $1.63 45 Two Bedroom 31% 1,215 $2,088 $1.72 100% 976 $1,642 $1.68 INVESTMENT HIGHLIGHTS
IDEAL LOCATION TO DOWNTOWN’S TOP EMPLOYERS EXECUTIVE SUMMARY The map below shows how excellent the location of Pulliam Square is vis-à-vis the economic engine of Indianapolis. Angie’s List, Anthem, Eli Lilly, Salesforce, IU Health, One
America, Simon, and WellPoint locations on the map all represent Corporate Headquarters locations, which total nearly 24,000 employees. Many of these companies employ the millennial generation that are looking for a Live / Work / Play environment and will look to take advantage of all Pulliam Square and the neighborhood has to offer.
7 January 2017: Chase Tower will be renamed Salesforce Tower; Salesforce to take 250,000 square feet and hire 800 employees. CHASE TOWER JW MARRIOTT
BANKERS LIFE FIELDHOUSE LUCAS OIL STADIUM ONE AMERICA
300 N. IUPUI BMO REGIONS MARKET MERIDIAN PLAZA TOWER TOWER
BIRCH BAYH
EXECUTIVE SUMMARY FEDERAL BUILDING & US COURT HOUSE
FUTURE SITE OF UNIVERSITY PARK 21C MUSEUM HOTEL 8 Meridian St 333 MASS CONDOS (listed from $600,000 to $2M)
Pennsylvania St
Delaware St
Vermont St New York St
Alabama St MARIETTA ON MASS (New Class A+ Office Space)
Vermont St
Mass Ave January 2017: Chase Tower will be renamed Salesforce Tower;
Salesforce to take 250,000 square feet and hire EXECUTIVE SUMMARY 800 employees. CHASE TOWER JW MARRIOTT
BANKERS LIFE FIELDHOUSE LUCAS OIL STADIUM ONE AMERICA
300 N. IUPUI BMO REGIONS MARKET MERIDIAN PLAZA TOWER TOWER
BIRCH BAYH FEDERAL BUILDING & US COURT HOUSE
FUTURE SITE OF UNIVERSITY PARK 21C MUSEUM HOTEL Meridian St 9 333 MASS CONDOS (listed from $600,000 to $2M)
Pennsylvania St
Delaware St
Vermont St New York St
Alabama St MARIETTA ON MASS (New Class A+ Office Space)
Vermont St
Mass Ave COMMUNITY INTERIOR DESIGNER SPA INSPIRED AMENITIES AMENITIES KITCHENS BATHS
Resident Business Center Scenic Views of Downtown Stainless Steel Appliances Granite Countertops Indianapolis or Mass Ave with Coffee Lounge Granite Countertops Spacious Soaking Tub Wood-Style Flooring 24-Hour Fitness Center Contrasting Espresso Linen Closet* Contemporary Lighting Bike Storage Package Under Counter & White Polished Chrome Hardware Wall-Mounted Cabinets Elevated Courtyard w/ Wall Outlets w/USB Skyline Views Charging Stainless Steel Undermount * IN SELECT UNITS Boccie Ball Court Spacious Walk-In Closets Sinks Outdoor BBQ Area w/Grills Faux Wood Blinds Tile Backsplash Washer and Dryer Included Tenant Access to Adjacent Ceramic Top Ovens w/Unit Covered Parking Kitchen Islands Private Patio/Balconies* On-Site Retail Featuring Floor to Ceiling Windows* Bars & Restaurants Townhome, Studio, One,
EXECUTIVE SUMMARY Elevator Access and Two Bedroom Units Community Dog Park Available Walkability to CBD & Mass Ave
10
ECONOMIC OVERVIEW APARTMENT MARKET OVERVIEW
Indianapolis’ employment and economic growth is being fueled by its AAA Pulliam Square is situated in the 2,208-unit Central submarket, one of the Standard & Poor’s credit rating and job gains in high-wage industries such highest regarded submarkets in Indianapolis. As of Q1 2016, the submarket as life sciences and technology. The growth of these high-wage positions in posted rents of $1,213 per month or $1.50 per square foot, the highest rents Indianapolis is out pacing the national average. Among its peer cities in the of the 12 Indianapolis submarkets. The rent comparables average rents of Midwest, Indianapolis leads in life sciences and technology employment as $1,472 per month or $1.82 per square foot and occupancy of 93%. The Central a percentage of total employment. Indianapolis’ tech-sector employment submarket has a four-year average occupancy of 96%. Over the previous currently stands at 5.2% with its nearest peer city, Louisville, KY, at 4.7%. The year, 453 total units were absorbed by the submarket, the second highest success of local technology company start-ups, and the reinvestment of the absorption in Indianapolis. This trend is expected to continue over the next resulting wealth created through monetization of those companies, has driven year as Axiometrics projects over 500 units will be absorbed. statewide venture capital funding to a multi-year high. EXECUTIVE SUMMARY
ADDITIONAL INFORMATION 11 FINANCING HFF INDIANAPOLIS Free and clear - available on an All Cash basis. Please contact Dave Keller (contact 135 N. Pennsylvania Street information below for debt quotes/assistance). Suite 1650 TOUR DATES Indianapolis, IN 46204 Please contact HFF to setup a tour of Pulliam Square. The Owner and HFF respectively T: (317) 630-3191 request that interested parties refrain from contacting any on-site personnel or residents. F: (317) 630-3190 Tours must be scheduled in advance by contacting Ken Martin as noted below. HFF CHICAGO INVESTMENT CONTACTS 181 W. Madison Street KEN MARTIN DIRECTOR | [email protected] | (317) 632-7494 Suite 3900 Chicago, IL 60602 WICK KIRBY ASSOCIATE DIRECTOR | [email protected] | (312) 980-3611 T: (312) 528-3650
SEAN FOGARTY MANAGING DIRECTOR | [email protected] | (312) 528-3675 F: (312) 528-3651
DEBT CONTACT DAVE KELLER SENIOR MANAGING DIRECTOR | [email protected] | (317) 632-7500 | Lic # PB20000727
©2016 HFF and HFF Securities L.P. (HFFS) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.