Market Study 2016-2017

th annual 24COMMERCIAL REAL ESTATE MARKET STUDY 2016-2017

NORTHEAST INDIANA CENTRAL INDIANA Montcalm Muskegon NORTH CENTRAL INDIANA

Kent Ionia NORTHEAST INDIANA Ottawa

NORTHWEST INDIANA

Allegan Barry Eaton WEST MICHIGAN

Van Buren Calhoun Kalamazoo Lake Michigan Cass St. Joseph Branch Berrien

LaGrange Steuben St. Joseph Elkhart LaPorte

Porter Noble DeKalb Lake Marshall Starke Kosciusko

Whitley Allen Pulaski Fulton Newton Jasper

Huntington Wabash White Cass Adams Wells

Benton Miami Carroll Grant Blackford Howard Jay Warren Tippecanoe Clinton Tipton Delaware Madison Randolph Hamilton Fountain Montgomery Boone

n Henry Wayne Marion Hancock

Vermillio Parke Hendricks

Putnam Rush Union Fayette Shelby Morgan Johnson Vigo Clay Franklin Owen Decatur Bartholomew Brown Monroe

/company/bradley-company @bradley_company /bradleycompanyCRE @bradleycompany TABLE OF CONTENTS

PRESIDENT’S LETTER RETAIL 02 12

INDUSTRIAL MULTI-HOUSING 05 16

OFFICE SERVICES & PROFESSIONALS 09 18

RESEARCH | ANALYSIS LAYOUT | DESIGN

STEVEN HEATHERLY MICHELLE MOREY [email protected] [email protected]

GAGE HUDAK JONATHAN KITCHENS [email protected] [email protected]

LUCAS DEMEL KYLIE CURTIS [email protected] [email protected] PRESIDENT’S LETTER

s a regional leader of commercial real estate services in the Midwest, we understand that critical market knowledge is foundational to the value we provide to our clients. AThis 24th Edition of our Market Study reflects the collective insights and experience of the growing team of skilled Bradley Company professionals.

We first thank our sponsors, who are recognized in the back of this report, for helping deliver this 24th Edition that again provides in-depth analyses on the regions we serve throughout Indiana and Michigan. Within this report you will find market activity from several aspects of our business, which reflect the local, regional, and national economic landscape. While ew continually look for ways to enhance our insight into the regions we cover, we believe this study to be an invaluable tool for anyone with exposure to the commercial real estate industry.

Our pursuit of excellence, to be the premier commercial real estate service provider in the Midwest, has led to the expansion of our geographic footprint as well as the evolution of our lines of business through the addition of talent. In 2016 we made significant strides to expand our presence in two leading Midwest markets, Indianapolis and Grand Rapids, where we have deepened our talent pool with many new, seasoned professionals in our brokerage and property management lines of business. These professionals bring a wealth of experience and technical expertise that augment our platform to meet an increasingly sophisticated set of client requirements as they seek to gain insights into real estate markets and best advantage their investor or occupier needs. With a presence in eight primary markets from West Michigan through North and Central Indiana, the Bradley Company platform is well positioned to serve the regions’ dynamic, economic growth.

While on the surface 2017 is poised to be a year of improved, yet modest, growth in our markets, the current expansion of the US economy is in its seventh year, with forecasted GDP hovering just above 2%. Equity markets have been robust, with several indexes topping historic highs in recent quarters, as the labor market approaches a return to full employment. Aging demographics are playing in to skilled labor challenges in many sectors. The prospect of Federal tax and regulatory reform could unleash additional capacity, however, on the balance, a tempered climate for international trade could cool opportunities for economic expansion.

The two recent Federal interest rate bumps of 25 basis points to reach a 1% total rate and two more increases anticipated in 2017 have spurred active real estate owners to either sell, or lock in low rates and convert from even lower floating rates. This is in direct correlation to what will be rising cap rates and, thus, shrinking real estate values. However, as real estate has been a favored asset class as a tangible investment and significant capital has been parked on the sidelines for this category, cap rates will likely not move up at a matched pace to interest rates, which will mean shrinking investment margins. This environment will require better management and will rely on a continued moderate supply creation environment.

E-commerce continues to disrupt traditional retail practices, with total sales in 2016 estimated at nearly $400 billion, up about 15% year over year, far outpacing the 2.9% increase in overall retail sales. The implications for real estate in a mobile economy places demands on the need for additional warehouse facilities to serve growing logistics and distribution needs. Ironically, the competition from the online market has led many national retail anchors to reduce their physical footprint while online retailers, such as Amazon, have opened their first brick and mortar stores to strengthen their dominance.

Across the country, population centers continue to trend toward urban density, which translates to an unprecedented volume of multi-family construction in the urban cores of major metropolitan centers as well as secondary and tertiary communities. Simultaneously, traditional suburban retail and office centers are being creatively redeveloped into mixed-use town centers that combine complimentary uses for residential, office, medical, retail, and entertainment uses in a pedestrian friendly format. The evolving consumer patterns and tenant requirements have driven a need for new mixed-use redevelopment construction.

2 PRESIDENT’S LETTER

The industrial sector is performing extremely well, with market vacancies remaining at or near historically low levels in most markets, fueled by consumer products and e-commerce distribution as the largest demand drivers for industrial space in 2017. Growth in the manufacturing and goods-producing sectors will be areas to watch as the new presidential administration focuses to spur these fields.

In 2015, the Indiana Economic Development Corporation launched the Regional Cities Initiative, a challenge to the State’s seven regions to compete for three $42 million place-making grants with a purpose to improve the quality of life in these communities by attracting new residents and investment to the state. The $126 million in collective, state, local, and private matching funds is poised to leverage over $2.1 billion in investment across the North Central, Northeast, and Southwest regions of the state. As much of this investment will occur in the form of new or rehabilitated real estate, the impact in the communities served by Bradley Company will be transformational. 2017 is poised to be a watershed year as many of the landmark projects spurred by the Regional Cities’ effort become open for business.

In Central Indiana, 2016 was a historic year for the industrial market, where net absorption hit its highest total ever in the market. Downtown Indianapolis continued its growth trajectory, as evidenced by Salesforce expanding into the former Chase Tower building, occupying 250,000 square feet and renaming the building to Salesforce Tower.

In North Central Indiana, the RV industry continues to pave the way for economic growth. RV shipments hit their highest total in 40 years, ending 2016 with 430,691 total units shipped with momentum continuing throughout 2017 and shipments expected to total 438,000 units.

In Northwest Indiana, the region’s economic growth is expected to increase and with the South Shore Commuter Rail line approving a $1 billion capital plan that outlines improvements over the next five years to increase capacity, expedite travel times and expand and renew the fleet. The economic impact of these upgrades are expected to be over $2 billion annually, once completed.

For Northeast Indiana, Downtown Fort Wayne has been the focus of regional market attention. Projects such asthe Skyline Tower and Cityscape Flats mark the first significant residential projects developed in the past five years for the downtown market. The new riverfront development, combined with the proposed $100 million arena, are expected to add new energy to the downtown and surrounding areas.

West Michigan markets continue to see companies making large capital investments. Pfizer and Stryker are investing over $100 million in their campuses, while the largest data center in the eastern United States, Supernap, continues its $5 billion campus at the site of the former Steelcase Pyramid building in Grand Rapids.

As we delve much deeper in to the statistics and facts of our markets herein, we hope you find our 24th edition useful and beneficial in your everyday decisions. Should you wish to further engage in any of our data and information contained herein, feel free to contact us. Bradley Company’s team of professionals look forward to a prosperous growth year for all!

Warm regards,

Bradley J. Toothaker, CPM, SIOR President & CEO

3 NORTHEAST INDIANA

While the Northeast Indiana region consists of several counties, Allen County is the regional economic hub with the City of Fort Wayne driving much of the regional economy. With a population of over 260,000 people, Fort Wayne is the second largest city in Indiana. The downtown area is experiencing significant regentrification, due in large part to Northeast Indiana Regional Partnerships Vision 2020 initiative and the Regional Cities Initiative.

LaGrange St. Joseph Steuben Elkhart

Marshall Noble DeKalb Kosciusko

Whitley Fulton Allen

Wabash Huntington

Wells Adams

Miami

Grant

Blackford Jay

DEMOGRAPHICS BY COUNTY

1Median HH 2Labor 2Unemployment 1Population 1Households Income Force Rate

Annual Annual Annual County 2016 Growth 2016 Growth 2016 Growth 2015 January ‘17 Rate* Rate* Rate*

Allen 370,506 0.76% 143,571 0.76% $50,644 2.20% 178,779 4.5% Surrounding 334,025 0.38% 123,818 0.37% $50,005 2.07% 151,439 4.0% Counties Northeast 704,531 0.58% 267,389 0.58% $50,327 2.14% 330,218 4.1%

1Source: ESRI BAO | 2Source: STATS Indiana | *2016-2021 Projected Annual Growth Rate

4 NORTHEAST INDIANA | INDUSTRIAL

The Northeast Indiana region is well positioned within Vehicle manufacturing accounts for 20.7 percent of the a one-day drive of 50 percent of all U.S. markets. manufacturing employment in the region, compared to 7.5 Kroger, Sweetwater Sound, Walmart, FedEx, and Family percent for the United States. The area around the General Dollar all have distribution centers within the region. Motors Fort Wayne Assembly Plant on Fort Wayne’s Emerging industries within the region include design southwest side is undergoing major expansion projects. and craftsmanship, distribution and e-commerce, General Motors is investing $1.2 billion into expanding food and beverage, and advanced materials. Over 780 its facility, one of the largest investments documented transportation businesses employ roughly 11,682 people in in northeast Indiana, while NorthPoint Development is the region. constructing GM-related industrial buildings, including an 804,805-square-foot distribution center. These investments are key examples of the growing confidence in the industrial market for northeast Indiana.

MILWAUKEE GRAND RAPIDS Since 2014, four speculative industrial buildings were

constructed in the region, adding 218,000 square feet of

S industrial space to the market. The increased confidence

2 E

5 L DETROIT 4 I

in the industrial market is giving developers a sense of M M IL

5 security when deciding whether or not to construct spec CHICAGO E S S 7 E 1 L facilities without tenants in place before construction. 1 I 6 M 2 M 2 IL 16 CLEVELAND This, combined with the 15 certified “shovel ready” sites, E S. BEND / S

MISHAWAKA is preparing the region for future development. FORT WAYNE S E 90 IL M 204 M ILES

1 5

1 M S E 7 IL IL 9 ES

M M 4 I 2 L 1 COLUMBUS E INDIANAPOLIS S

S E L I M CINCINNATI 4 3 2

LOUISVILLE

> The Hagerman Group; Airport Expressway, Fort Wayne

5 NORTHEAST INDIANA | INDUSTRIAL

CERTIFIED SHOVEL READY SITES In Northeast Indiana, we are “seeing continued growth throughout AUBURN our 11 county region. Companies benefit from our central Midwest location with exceptional highway and railroad connections. We remain committed to investment in speculative

FORT buildings, certified shovel ready sites WAYNE

and developing a skilled talent pipeline HUNTINGTON to anticipate employer demands.

JOHN SAMPSON - PRESIDENT AND CEO Shovel Ready NORTHEAST INDIANA REGIONAL PARTNERSHIP” Sites

Availability & Asking Rates Allen County finished 2016 with 3.2 million square feet of Availability Rates industrial space available for sale or lease, making up 55 percent of the total available space for the region. Since 14% 2014, over 1.6 million square feet of industrial space has 12% been taken off the market in Allen County. 10%

The recent investment sale of International Park, a 1.46 8% million-square-foot complex, impacted the flex rental 6% rates towards the end of 2016. The building sat nearly 4% half vacant at the time of sale, with most of the spaces 2% asking below market rates. The new owners are planning 0% to repurpose the facility, and once completed, will likely Q1 Q3 Q1 Q3 Q1 Q3 impact flex rental rates in the coming years. ‘14 ‘14 ‘15 ‘15 ‘16 ‘16

Recently, over 250,000 square feet came onto the market at Allen County Asking Rates - $/SF NNN 1450 Production Road in Fort Wayne. Raytheon formerly owned the facility, but downsized and sold it. The new $6 tenant only occupies 30 percent of the building, with the $5 rest of the space available for lease. The facility is located within an established industrial park, and can be easily $4 converted into a variety of uses. $3

$0 Q1 Q3 Q1 Q3 Q1 Q3 ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 6 NORTHEAST INDIANA | INDUSTRIAL Notable Transactions

Sale

ADDRESS CITY SF SALE PRICE BUYER OFF MARKET International Park; 2701 S. Phoenix Fort Wayne, Fort Wayne 1,400,000 $2,250,000 Q2 ‘16 Coliseum Blvd.* LLC 10801 Rose Ave.* New Haven 180,000 $3,400,000 Cedar, LLC Q2 ‘16

6923 Lincoln Pkwy.* Fort Wayne 138,720 $2,850,000 Undisclosed Q4 ‘16

4202 Piper Dr. Fort Wayne 64,300 $1,450,000 Quoin, LLC Q3 ‘16

5727 Industrial Rd. Fort Wayne 49,464 $740,000 5727, LLC Q2 ‘16 *Investment sale Lease ADDRESS CITY SF TENANT TYPE OFF MARKET

84 Commercial Rd. Huntington 131,786 Ecolab, Inc. New Q1 ‘16

2808 Adams Center Rd. Fort Wayne 125,477 Multimatic Indiana New Q3 ‘16

5120 Investment Dr. Fort Wayne 99,579 Shambaugh & Son New Q4 ‘16 Best Warehousing & 2801 W. State Blvd. Fort Wayne 98,000 New Q3 ‘16 Transportation 5925 East Rail Connect Dr. Columbia City 70,000 Autoliv ASP, Inc. New Q4 ‘16

New Construction & Additions

ALLEN COUNTY Building Permit Activity $400M After 2015’s significant increase in the total estimated value of industrial permits issued, 2016 reverted back

$300M to steady values. General Motors’ massive expansion was the main reason for the significant increase in 2015.

$200M The majority of building permits issued in 2016 were expansion and renovation projects.

$100M GM INVESTMENT

$0 2014 2015 2016

7 NORTHEAST INDIANA | INDUSTRIAL

Growth & Development 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 6 PROJECTS TOTALING 575,500 SQUARE FEET 8 PROJECTS TOTALING 2,913,845 SQUARE FEET COMPLETED UNDER CONSTRUCTION

February 2017

Trinity Health & XPO Logistics, Fort Wayne The Hagerman Group; Airport Expressway, Fort Wayne • $26 million, 400,000-square-foot distribution center • 137,500-square-foot building • Developed by Trinity Health and XPO Logistics • Leased to Faurecia Clean Mobility • Serves as regional hub for medical and surgical • Expected to create 144 new jobs by 2018 supplies for Trinity Health hospitals • Building expected to be completed late 2017 • Around 75 new jobs expected to be created by 2018

General Motors Fort Wayne Assembly Plant

NorthPoint Development Vera Bradley

North American Cold Storage, Inc., Woodburn NorthPoint Development, Roanoke • Completed late 2016 • $15 million, 804,805-square-foot distribution center • 56,000-square-foot addition to current facility near General Motors complex • Since 2014, nearly $28.1 million has been invested in • No tenant announced yet, but building is expected to the facility be finished in the spring of 2017

8 NORTHEAST INDIANA | OFFICE

CITY OF FORT WAYNE

Activity in the office market for Downtown Fort Wayne has historically been rather neutral, however recent developments are generating positive momentum. Ash Brokerage’s new headquarters has helped spur other developments in the downtown area. It is expected that when completed, Skyline Tower will add 16,000 square feet of Class A office space to the market. Ash Realty recently closed on the purchase of the 123,000-square-foot Fifth Third Metro Center, with plans to convert the office FORT WAYNE building into a mixed-use office and retail center, with high-end residential condominiums on the top two floors. The renovation will re-class a significant amount of Class B office space to attractive Class A space.

Office Clusters

Despite the attention towards downtown, the suburban office market is still in high demand. Outer lying office space is being absorbed quickly and becoming more and more attractive to medical users vying for space proximal to Lutheran Hospital and Parkview Hospital. The two hospitals continue to expand in the market, creating opportunities for new medical users entering into the market, as well as existing companies growing their footprints. > Ash Brokerage Building, Fort Wayne

NORTHEAST INDIANA | OFFICE Availability & Asking Rates

Availability Rates Asking Rates - $/SF Full Service Gross

25% $18

20% $16

15% $14

10%

$12 5%

0% $0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 ! Notable Transactions Investment Sales ADDRESS CITY SF SALE PRICE BUYER OFF MARKET Fifth Third Metro; Fort Wayne 123,368 Undisclosed Ash Realty Q3 ‘16 202 W. Berry St. 347 W. Berry St. Fort Wayne 66,000 $1,900,000 Meca Building, LLC Q3 ‘16 333 E. Washington Blvd. Fort Wayne 39,111 $910,000 333 Street, LLC Q3 ‘16 7337 W. Jefferson Blvd. Fort Wayne 11,750 $562,000 Trinity Development Group Q3 ‘16 11627 Coldwater Rd. Fort Wayne 7,848 $1,500,000 Oakmont Dev. Co. II Q1 ‘16

Lease ADDRESS CITY SF TENANT TYPE OFF MARKET 3400 Coliseum Blvd. Fort Wayne 16,406 Undisclosed New Q1 ‘16 Lincoln Tower; 116 E. Berry St. Fort Wayne 13,104 MarLo Business Services New Q4 ‘16 2730 Coliseum Blvd. Fort Wayne 12,756 Earth Link, Park 3000 New Q4 ‘16 1315 Directors Row Fort Wayne 11,376 Heartland Home Services Renewal Q2 ‘16

New Construction & Additions

ALLEN COUNTY Building Permit Activity Compared to previous years, 2016 saw an increase in $50M new construction and expansion projects by several $40M different companies. Previously, the total estimated value was highlighted by one significant project: Ash $30M Brokerage. In 2017, we expect the value of building $20M permits to be consistent to 2016 with a combination of expansion projects and a few new construction $10M developments. $0 2014 2015 2016 10 NORTHEAST INDIANA | OFFICE Growth & Development 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 6 PROJECTS TOTALING 70,720 SQUARE FEET 4 PROJECTS TOTALING 112,280 SQUARE FEET COMPLETED UNDER CONSTRUCTION

Rendering Parkview Health Clinic, Fort Wayne Skyline Tower, Fort Wayne • Completed November 2016 • $40 million mixed-use development • 14,171-square-foot primary care clinic, which includes • Began construction in October 2016 18 exam rooms • Project includes 16,000 square feet of modern Class A office space on the second story • Overall project expected to be completed in mid- summer 2018

Rendering Sycamore Pointe Office Park, Fort Wayne Mike Thomas Associates Realtors, Fort Wayne • Phase II completed in late 2016 • 20,000-square-foot office building • 11,000-square-foot Class A office building with finish- • Expected to open in early 2017 to-suit specifications

Skyline Tower is a tremendous addition to the heart of our City. I continue to be “encouraged by the progress we’re seeing throughout Fort Wayne. We’re strengthening our position as a point of destination where individuals, families, and business want to invest. By working together, we’re attracting and retaining jobs as a community moving in the right direction. MAYOR TOM HENRY, FORT” WAYNE 11 NORTHEAST INDIANA | RETAIL

ALLEN COUNTY

The retail market in Fort Wayne looks encouraging in that The retail inventory in Downtown Fort Wayne has new franchises are coming into the market. Long corridors tightened significantly over the few years. Tenants are such as: Lima Road, U.S. 3, and Illinois Road are seeing an staying downtown by locking in longer lease terms. The increase in retail developments. Ash Brokerage project added over 12,000 square feet of high-end retail space to the downtown market in 2016 > Riverfront Initiative (Promenade) Rendering, Fort Wayne and was leased prior to completion. Skyline Tower, the Riverfront Initiative, the Landing Development, and the proposed $104.9 million downtown event center are expected to immensely increase foot traffic downtown, draw more people to the downtown core, and open up various new retail opportunities.

Dupont & Diebold Area • Proposed Parkside Development • Anchored by a 160-room dual-brand Hilton Hotel • 10 out lots available for development, totaling 8.96 acres • Proximal to the Parkview Regional Medical Center, and two I-69 interchanges PROMENADE AERIAL VIEW

> Dual-Brand Hilton Hotel Rendering, Fort Wayne

> The Landing Rendering, Fort Wayne 12

NORTHEAST INDIANA | RETAIL

NORTHEAST Availability & Asking Rates INDIANA | RETAIL Availability Rates Asking Rates - $/SF NNN 20% $30

$25 15%

$20

10% $15

5% $10

0% $5 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 SG = Second Generation

Availability rates decreased 2.11 percent since first quarter The leveled availability rates, partnered with reasonable 2014, with nearly 300,000 square feet of retail space taken rental rates, will continue to keep the retail market in Fort off the market during that time. Newly constructed retail Wayne stable over the next few years. New developments spaces are generally asking between $23 to $30/square- for the downtown area may intrigue new retailers to foot, triple-net, while second generation spaces below pursue the market. As new retailers begin to backfill 10,000 square feet are asking between $9 to $16/square- vacant spaces, availability rates are expected to decline. foot, triple-net.

GENERAL ELECTRIC CAMPUS REVITALIZATION

Announced February 2017, Baltimore-based Cross Street Partners will invest $300 million to redevelop the vacant General Electric campus on the southwest side of Fort Wayne into a mixed-use innovation district. The project involves over 1 million square feet of development on the 31-acre campus and will have a residential, educational, retail, office, and hotel component. Construction on the redevelopment could begin in the fall of 2017, taking approximately four years to complete.

> General Electric Campus Rendering, Fort Wayne We want to be a nationally recognized economy. This is the most transformational “project of my career. We believe this is a strong proposal with the potential to be a nationally recognized project. ERIC DODEN - CEO OF GREATER FORT” WAYNE

13 NORTHEAST INDIANA | RETAIL

Notable Transactions Sale ADDRESS CITY SF SALE PRICE BUYER OFF MARKET The Marketplace of Canterbury; Fort Wayne 90,042 $1,600,000 DG Properties 11 Q2 ‘16 5675 St. Joe Rd.* 4520-4743 Parnell Ave.* Fort Wayne 84,900 $2,300,000 Undisclosed Q1 ‘16 6315 Illinois Rd. Fort Wayne 51,822 $3,445,000 Schipper, LLC Q2 ‘16 Summit City 4629-4721 Lima Rd.* Fort Wayne 24,801 $1,035,000 Q4 ‘16 Management, LLC *Investment sale Lease ADDRESS CITY SF TENANT TYPE OFF MARKET Parkwest Center; 3800 W. Jefferson Fort Wayne 35,001 The Great Escape New Q3 ‘16 North Georgetown Shopping Center; 6505 Fort Wayne 12,100 St. Joseph Health System New Q1 ‘16 E. State Blvd. Dupont Landing; 2910 E. Dupont Rd. Fort Wayne 10,030 Century 21 Renewal Q1 ‘16

New Construction & Additions

ALLEN COUNTY The total estimated value of new construction and addition projects in 2016 was fairly consistent with the previous two years. A healthy, consistent investment in the retail market for Fort Wayne will continue to draw residents from outlying markets. Building Permit Activity

$25M

$20M > Downtown Sports Arena Rendering, Fort Wayne

$15M

$10M

$5M

$0 2014 2015 2016

> Parkview Field, Fort Wayne

14 NORTHEAST INDIANA | RETAIL

Growth & Development 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 4 PROJECTS TOTALING 23,931 SQUARE FEET 5 PROJECTS TOTALING 68,209 SQUARE FEET COMPLETED UNDER CONSTRUCTION

Image from Greenwood, IN Ash Brokerage, Fort Wayne Kroger Marketplace, Fort Wayne • 4 retailers occupied over 12,000 square feet • 31,000-square-foot expansion brings store’s overall • Tenants include: The Golden restaurant, Lake City size to over 123,500 square feet Bank, DeBrand Fine Chocolates, and The Find • $14 million investment expected to be completed in boutique early 2017

Rendering Rendering Stellhorn Crossing, Fort Wayne Ruth’s Chris, Fort Wayne • Multi-tenant, 7,840-square-foot retail center • Skyline Tower-anchor • Finish-to-suit specifications • Expected to open in the fall of 2017

15 NORTHEAST INDIANA | MULTI-HOUSING

ALLEN COUNTY

91 apartments totaling 21,292 units

Year 2013 2014 2015 2016 2017* 2018*

# Units Added 486 0 0 0 367 124

*Projected

Occupancy & Rent Occupancy Rates The primary focus of the Fort Wayne multi-housing 98% market over the past year has been creating opportunities for people to relocate downtown. Cityscape Flats, Skyline

Tower, and the recent purchase of the Fifth Third Metro 96% Center are prime examples of this. Cityscape and Skyline will add 287 high-end, amenity rich apartment units to the downtown area by mid-2018. This recent resurgence 94% is significant as the last residential development project to take place in the downtown area was five years ago, when the Harrison project added 46 apartment units to 92% the Parkview Field ballpark. Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4’ Q2 Q4 ’12 ’12 ’13 ‘13 ’14 ‘14 ‘15 15 ‘16 ’16 Source: Yardi

16 NORTHEAST NORTHEAST INDIANA | MULTI-HOUSING Rental Rates | Fort Wayne $1400 Momentum for the movement downtown has already INDIANA | MULTI-HOUSING $1200 generated an abundance of activity. According to a September interview with Domo Development partner, $1000 Scott Sorensen, 122 people have already expressed interest $800 in the 163 available units, with eight people having already $600 signed leases before completion of the complex. The

$400 success of these three projects will be vital to the massive transformation happening in Downtown Fort Wayne. $200

$0 2014 2015 2016

Growth & Development 2017 NOTABLE PROJECTS

3 PROJECTS TOTALING 491 UNITS UNDER CONSTRUCTION

Rendering Rendering Skyline Tower, Fort Wayne Cityscape Flats, Fort Wayne • $40 million, 12-story mixed-use development • $27 million apartment complex • Development by Great Lakes Capital • Developed by Domo Development • Project includes 124 apartment units, as well as 30,000 • Opened doors in February 2017 to half of units, square feet of retail and office space expected to be fully open in April • Floors 3-8 expected to be completed Q1 2018 • Project includes a 163-unit apartment complex, 14 row • Remaining residential portion expected to be houses, 173-space parking garage, and streetscape completed mid-summer 2018 improvements

17 A seasoned and talented team of real estate professionals serving the Midwest region since 1978.

BRADLEY COMPANY SERVICES & PROFESSIONALS

CREATING REAL VALUE IN PROPERTY. Founded in 1978, Bradley Company is a diversified real estate firm offering clients a full range of commercial brokerage and asset services. With regional offices throughout Indiana and Michigan, we employ nearly 250 knowledgeable professionals. Our experienced team manages 10± million square feet of commercial property including office, retail, industrial and medical office buildings among our many clients. In addition, we act as brokerage agents for over 550 commercial properties. We also manage more than 3,000 multi-housing units varying from conventional to student and associations.

BROKERAGE ASSET SERVICES MULTI-HOUSING • Commercial sales and leasing • Property management • Property management • Property marketing • Financial management and • Leasing • Proprietary market research administration • Resident relations • Lease administration and • Market/competitive analyses tenant relations • Financial management • Strategic planning • Maintenance, repair and capital • Receivership planning • Property positioning Contract management • • Grant writing and funding source • Analytics and consulting • Cost containment management • Buyer and tenant representation • Parking management • Strategic planning • Route maintenance • Development and market rent studies • Receivership

CAPITAL MARKETS CORPORATE SERVICES TAX CONSULTING • Real estate finance advisory • Integrated facility management • Property assessment and comparison • Creative debt and equity capital • Project management solutions • Property tax monitoring and • Portfolio strategy/planning control • Financial model and packaging • Alternative workplace solutions • Property evaluation • Extensive rolodex of local, regional and national debt • Space management • Analysis and equity providers • Energy management • Tax liability savings • Lease administration • Review business uses of property • Safety & compliance • Vendor & contract management • Asset management 18 CENTRAL INDIANA INDIANAPOLIS

JIM LOGAN BILLY MCCLAMROCH W. SHAWN CONWAY Managing Director Office Bioscience [email protected] [email protected] [email protected]

JEFF NORRIS CASEY CUPP Senior Vice President, CAS Marketing Director [email protected] [email protected]

ALEX COHN DAVID ELLIS Office Retail & Investment [email protected] [email protected] INDIANAPOLIS 8604 Allisonville Rd., Suite 150 Indianapolis IN 46250 T | 317.588.1334

NORTH CENTRAL INDIANA SOUTH BEND

BRAD TOOTHAKER, CPM, SIOR AL KOCH JOHN O’BRIEN, CCIM President & CEO Retail & Office Industrial & Retail [email protected] [email protected] [email protected]

MARK NEAL AUTUMN PSAROS LUCAS DEMEL Principal Retail Retail & Investment [email protected] [email protected] [email protected]

KARA MCGUIRE GAGE HUDAK PATRICK MAGLIOZZI Executive Vice President Office & Retail Industrial & Land [email protected] [email protected] [email protected]

SCOTT FORD GREG PINK STEVE ELLISON Executive Vice President Industrial & Office Industrial & Retail [email protected] [email protected] [email protected] SOUTH BEND 112 W. Jefferson Blvd., Suite 300 RUDY YAKYM III JANEE CARLILE Senior Vice President, Brokerage Director, Brokerage Support South Bend, IN 46601 [email protected] [email protected] T | 574.237.6000 F | 574.237.6001 MICHAEL ZINK JENA MAE SMOROSKE Vice President, Multi-Housing Office & Retail [email protected] [email protected]

ELKHART JAMIE RUIZ JOHN JESSEN 300 NIBCO Pkwy., Suite 250 Vice President, Tax Consulting & Business Development Office & Investment Elkhart, IN 46516 [email protected] [email protected] T | 574.522.7100 DAN SKODRAS, CPA JOHN MESTER Managing Director, Retail & Office Corporate Services & Investments [email protected] WARSAW [email protected] 523 S. Buffalo St. Warsaw, IN 46580 T | 574.267.2323 ELKHART

JEREMY MCCLEMENTS THERESE GEISE Industrial Office & Retail [email protected] [email protected]

MATT WETZEL Land & Retail [email protected]

WARSAW

KIRK ZUBER GARY SALYER ALEX REED Industrial & Retail Retail & Land Office & Retail [email protected] [email protected] [email protected] 19 NORTHEAST INDIANA FORT WAYNE

DAN DICKEY GREG CONKLING STAN PHILLIPS President, Northeast IN Land & Investment Retail & Office [email protected] [email protected] [email protected]

TOM DEITCHE KIENAN O’ROURKE STEVE CHEN Managing Director Office & Industrial Office & Industrial [email protected] [email protected] [email protected]

DENNIS CALLISON MIKE DAHM TYLER BINKLEY Vice President, Brokerage Services Investment & Industrial Industrial & Retail [email protected] [email protected] [email protected]

ANNA BOWMAN PAUL REFAKIS Office & Retail Industrial & Retail [email protected] [email protected]

FORT WAYNE 111 E. Ludwig Rd., Suite 101 Fort Wayne, IN 46825 T | 260.423.4311

NORTHWEST INDIANA MERRILLVILLE

JIM NICKSIC ROSS BROWN TONYA O’ROURKE Office & Retail Office & Retail Office & Land [email protected] [email protected] [email protected]

MATT REARDON STEVE NICKSIC Investment & Industrial Office & Retail [email protected] [email protected]

MICHELLE DEVINE TODD DICKARD MERRILLVILLE Land & Office Office & Industrial [email protected] [email protected] 359 W. 84th Dr. Merrillville, IN 46410 T | 219.650.6500

WEST MICHIGAN KALAMAZOO

JODI MILKS, CCIM Retail & Office [email protected]

GRAND RAPIDS

SALLY TUCKER JEFFREY TUCKER MIKE LOPATIN Managing Director Office & Retail Investments KALAMAZOO [email protected] [email protected] [email protected] 277 S. Rose St., Suite 3500 DREW NELSON KEVIN VANHAITSMA MITCHELL PATZER Kalamazoo, MI 49007 Office & Retail Office & Investments Office & Retail T | 269.327.0089 [email protected] [email protected] [email protected]

GRAND RAPIDS 250 Monroe Ave., Suite 426 Grand Rapids, MI 49503 T | 616.254.0005

20 21 Action, meet results.

Too many law firms mistake activity for action. As they churn away on unnecessary tasks, your matters drag on. At Barnes & Thornburg, we are focused on keeping things moving and helping your business grow. Delivering results you can count on.

Uncommon Value

ATLANTA CHICAGO DALLAS DELAWARE INDIANA LOS ANGELES MICHIGAN MINNEAPOLIS OHIO WASHINGTON, D.C.

btlaw.com

22 Your Business. Your Family. Your Future. Accounting for Your Every Need.

Tax Consulting l Estate Planning l Retirement Business Succession l Assurance l Business Valuation Litigation Support l Bookkeeping l Management Search

Elkhart/Goshen - 574.264.2247 South Bend - 574.289.4011 www.klcpas.com St. Joseph - 269.983.0131

develop | invest

www.greatlakescapital.com

23 Indiana’s largest, private family-owned bank.

ELKHART:303 County Road 17 • (574) 295-9834 MISHAWAKA:255 East Day Road • (574) 255-1536 PLYMOUTH:537 North Oak Drive • (574) 936-1970 LA PORTE:73 Pine Lake Ave • (219) 324-6368 FORT WAYNE:10315 DuPont Circle Drive West • (260) 489-1092

Downtown South Bend, Granger and Goshen Offices Opening 2017

Centier.com Member FDIC

“ “ “ “ THE OF BEST THE OF BEST Krieg DeVault is honored OUR NORTHERN INDIANA REAL ESTATE PRACTICE Kriegto be namedDeVault to is the honored 2016 OUR NORTHERN INDIANA Midwest Real Estate News ® REAL ESTATE PRACTICE to be named to the 2016 Christopher D. Long Stephen A. Studer ® PARTNER PARTNER “BEST OF THE BEST” [email protected] [email protected] SELECTED TO THE 2017 SELECTED TO THE 2017 Midwest Real Estate News Stephen A. Studer INDIANAChristopher SUPER D. Long INDIANA SUPER PARTNER LAWYERS®PARTNER LIST LAWYERS® LIST [email protected] “Top Law Firms”list for [email protected] “BEST OF THE BEST” SELECTED TO THE 2017 ScottSELECTED J. Fandre TO THE 2017 INDIANA SUPER INDIANAJohn Lloyd SUPER PARTNER OF COUNSEL Real Estate Transactions LAWYERS® LIST LAWYERS® LIST [email protected] [email protected] “Top Law Firms”list for

Scott J. Fandre John Lloyd RealCompleted Estate* Transactions PARTNER OF COUNSEL [email protected] [email protected] Paul G. Reis Lori Jean PARTNER PARTNER Completed* [email protected] [email protected]

Paul G. Reis Lori Jean PARTNER PARTNER [email protected] T. Eckerle [email protected] www.kriegdevault.com PARTNER J. Brian Hittinger [email protected] PARTNER SELECTED TO THE 2017 [email protected] Krieg DeVault LLP Stephanie T. Eckerle www.kriegdevault.comKrieg DeVault LLP INDIANA SUPER J. Brian Hittinger 8001 Broadway LAWYERS®PARTNER RISING STARS LIST 4101 Edison Lakes Parkway [email protected] PARTNER Suite 100 Suite 400 SELECTED TO THE 2017 [email protected] B. Baxter Sarah E. Jones Krieg DeVault LLP Krieg DeVault LLP INDIANA SUPER PARTNER Mishawaka, Indiana 46545 Merrillville, Indiana 46410 ASSOCIATE 4101 Edison Lakes Parkway 8001 Broadway LAWYERS® RISING STARS LIST [email protected] P: 574.277.1200 P: 219.227.6100 [email protected] SELECTED TO THE 2017 Suite 100 Suite 400 John B. Baxter Sarah E. Jones INDIANA SUPER Mishawaka, Indiana 46545 Merrillville, Indiana 46410 LAWYERS®PARTNER LIST ASSOCIATE [email protected] P: 574.277.1200 P: 219.227.6100 [email protected] AndrewSELECTED C. TO Strobel THE 2017 INDIANA SUPER ASSOCIATE LAWYERS® LIST [email protected]

Andrew C. Strobel ASSOCIATE [email protected]

© 2017 Krieg DeVault LLP. Krieg DeVault LLP, Indianapolis , IN is responsible for this content. *2016 Best of Best List Top Law Firm data collected by Midwest Real Estate News for total 2015 transactions completed.

25 LET US HELP YOUR BUSINESS GROW Call Judd McNally CHIEF LENDING OFFICER 574-400-4606

Independent of the University

26 Our ﬁnancial strength is undisputed and our local experience is undeniable. $5.0 billion Investment Portfolio Your client’s money is safe with us.

If you’re not using Fidelity, can you be certain your client’s money is safe?

FIVE CONVENIENT LOCATIONS IN NORTH CENTRAL INDIANA TO SERVE YOU:

Angola Elkhart Mishawaka 101 Growth Pkwy, Ste. A 401 W. High St. 4215 Edison Lakes Pkwy. Angola, IN 46703 Elkhart, IN 46516 Mishawaka, IN 46545 260-638-5012 574-293-2341 574-257-2711

Syracuse Warsaw 905 S. Huntington St. 108 W. Main St. Syracuse, IN 46567 Warsaw, IN 46580 574-457-4845 574-268-0065

Duke Mabry, Sr. Account Executive | C: 574-532-2066 | E: [email protected]

27 BusinessBusiness ServicesServices

• Business Share Draft Accounts • Account Protection and Security • Electronic ACH Services • Internet Banking • Bill Payment and Presentment • Remote Deposit • Merchant Services • Commercial Real Estate • Equipment Loans • Working Capital Loans • Approved SBA Lender • Business and Commercial Insurance • Employee Benefits Programs from TCU Insurance Agency • Health Savings Accounts • Investment and Trust Services

LOANS DEPOSITS INSURANCE INVESTMENT SERVICES

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government

tcunet.com/mybusiness NationalNCUA Credit Union Administration, a U.S. Government Agency

©2017 Teachers Credit Union. The cost of membership is $12, $7 membership fee and $5 initial deposit. TCU Insurance Agency, LLC is a subsidiary of TCU Insurance products are offered through various approved carriers. Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/ FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-1659016.1-1216-0119

28 Founded in 1978, Bradley Company is a diversiﬁed real estate ﬁrm providing commercial brokerage services, commercial and multi-housing management, real estate tax consulting, maintenance services, project and facilities management, research services, corporate services and strategic planning. Bradley Company is the largest full service commercial real estate solutions provider in Indiana and West Michigan.

EARS IN VALUE O BROKERAGE EMPLOEES 250+ 35+ BUSINESS $160M+ TRANSACTIONS IN

Commercial Brokerage Multi-Housing Real Estate Capital Corporate Management Tax Consulting Markets Services Over 50 brokers in 8 10± million 3,000± Conventional, Over $1 million Over $1.5 billion Strategic partner o ces & an average commercial square Aordable, Senior, saved in tax liabilities in experience serving corporate of 700 listings per year feet managed Student and since 2011 clients in all classes Special Needs units of property under management