INTRODUCING FORMERLY KNOWN AS PNC TOWER NATIONAL CITY TOWER INSTITUTIONAL QUALITY CLASS A CBD ASSET 101 SOUTH 5th STREET LOUISVILLE, KENTUCKY EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) acting by and through Holliday GP Corp, a Kentucky licensed real estate broker PNC TOWER 101 SOUTH 5th STREET LOUISVILLE, KENTUCKY INTRODUCING PNC TOWER 101 South 5th Street or PNC Tower (the "Property"), formerly known as National City Tower, is a 39-story, iconic, trophy office asset located at the epicenter of Louisville’s business district, a high-growth and central location for commerce in the Midwest. The Property, which was completed in 1972 and most recently renovated in 2007, contains 723,300 rentable square feet (“RSF”) and is comprised of a 689,355 RSF trophy office tower, a 24,945 RSF annex positioned on the corner of 4th and Main Street, a 516-car parking garage above the annex, and a beautifully landscaped 10,000 SF outdoor plaza that offers a fountain, trees, and congregation space. PNC Tower, which is 8% below its 5-year average occupancy level of 96.6% and has a 5.7 year weighted average lease term, offers tremendous upside potential for investors who simply need to lease the high-quality vacant space which recently became available in order to achieve outstanding returns. KEY PROPERTY STATISTICS LOCATION 101 South 5th Street, Louisville EXECUTIVE SUMMARY TOTAL RENTABLE AREA 723,300 SF OFFICE TOWER RENTABLE AREA 698,355 SF ANNEX RENTABLE AREA 24,945 SF ANNEX PARKING GARAGE AREA 190,080 SF PERCENT LEASED 88.6% 4 AVERAGE PERCENT LEASED 2011-2016 96.6% OFFICE TOWER STORIES 39 ANNEX TOTAL STORIES 5 ANNEX PARKING STORIES 4 ANNEX RENTABLE STORIES 1 MECHANICAL STORIES 2 DATE COMPLETED/RENOVATED 1972/1986/2007 TYPICAL FLOOR PLATES Low Rise (Floor 2-15) 16,000 SF Mid Rise (Floor 16-29) 16,500 SF TOWER High Rise (Floor 30-38) 17,500 SF FINISHED CEILING HEIGHT 8'8" SLAB-TO-SLAB CEILING HEIGHT 12' PNC BUILDING CORE / LOSS FACTOR 8% Single, 15% Multi-Tenant ARCHITECT Harrison & Abramovitz WALK SCORE 90 GROUND LEASE TERM 2015-2114 4 THE EXECUTIVE SUMMARY th th PNC Tower is ideally positioned between 4 and 5 Streets where they intersect with Main EXECUTIVE SUMMARY Street. This intersection serves as the CBD’s epicenter and will soon sit at the midpoint of OHIO RIVER Louisville's Urban Bourbon Trail. The property is the second tallest office building in downtown Louisville and has full height glass creating dramatic 360-degree views of the Louisville skyline Louisville Riverwalk RIVERFRONT PARK and unimpaired views of the Ohio River less than 900 feet from the base of the building. The Property was designed by world-renowned architect, Harrison & Abramovitz who combined form and function to expertly craft the pinnacle of Louisville's sweeping skyline. PNC Tower’s PERFORMING ARTS CENTER 100 oversized bay windows per floor and efficient 17,000 SF floor plans offer tenants the ultimate GALT HOUSE HOTEL KFC YUM! CENTER corporate setting. The tenant amenities are comprehensive and strategically integrated with the character of the downtown. Amenities include a conference room overlooking the Ohio River, a 25’ ceiling lobby complete 5 St St with travertine walls and terrazzo floors, a Starbucks and a Wi-Fi lounge adjoining the lobby, a th th S 5 tenant café with catering capability, access to the adjacent Humana Health Club and Fitness S 4 Center, an indoor garage, with 516 spaces, and a carwash station. The annex is conveniently US PNC located at the intersection of Main and 4th Street, creating a prime retail opportunity due to its BANK frontage on the Urban Bourbon Trail, foot traffic generated by the KFC Yum! Center, th4 street THE ANNEX entertainment corridor. Additionally, PNC Tower has is one block to tourism destinations such TOWER as the Kentucky International Convention Center and the Galt House hotel. The Property is KENTUCKY INTERNATIONAL CONVENTION CENTER easily accessible by foot with north and west end entrances, and also by automobile with an PNC TOWER REBUILD COMPLETION PROJECTED FOR SUMMER 2018 east side, turn-style entrance to the parking garage. One traffic light separates the Property from I-64 and the Kennedy Interchange and its immediate interconnections to the entire Louisville interstate system. The annex parking garage entrance on 4th Street provides convenient access for tenants and visitors arriving by automobile. 5 EXECUTIVE SUMMARY INSTITUTIONAL 6 QUALITY INTERIOR TOWER PNC 6 A RARE OPPORTUNITY OPPORTUNITY: EXECUTIVE SUMMARY PNC Tower offers investors the exclusive opportunity to acquire a 39-story, institutional quality office tower in the heart of downtown Louisville. The landmark location, irreplaceable view space, and upgraded building components have culminated in a market-leading average occupancy of 96.6% over the last five years. PNC Tower has established itself as the clear market leader in attracting high quality tenancy, as evidenced by PNC Bank's recent consolidation into the building and Humana’s long-term occupancy in this property that sits adjacent to their headquarters. The anchor tenants are set, the heavy lifting is done, and the leasing momentum is established providing the investor with a clear path to success. 7 PNC TOWER 7 IRREPLACEABLE INVESTMENT WITH VALUE-ADD POTENTIAL PNC Tower offers investors a rare opportunity to acquire the leasehold interest in an irreplaceable investment with the potential for significant value enhancement. The Property presents an opportunity to increase its occupancy by at least 8% to return to its 5-year historical average occupancy of 96.6%. With contiguous full floor vacancies and efficient floor plates, an investor will be able to capitalize on a Louisville CBD market with a shortage of large block, Class A space. EXECUTIVE SUMMARY Since 2004, various institutional owners have invested over $10.8 million in mechanical and aesthetic upgrades. Major renovations include passenger 8 elevator modernization, cooling tower refurbishment, and parking garage signage and repairs. Given these substantial improvements, there is minimal base building capital remaining and an investor simply needs to allocate leasing capital to realize significant upside and create long-term value. TOWER PNC 8 PNC TOWER AFFORDS ITS PATRONS THE VERY BEST OF WHAT LOUISVILLE'S WATERFRONT HAS TO OFFER EXECUTIVE SUMMARY PICTURESQUE VISTAS TIMELESS ELEGANCE UNIQUE LOCATION SPECTACULAR VIEWS SENSIBLE DESIGN COMMUNITY FEEL 9 TOP FLOOR VIEW PNC TOWER CONFERENCE ROOM GROUND FLOOR LOBBY UPPER FLOOR SUITE 9 TENANT BRIEF PNC Tower is the established market leader in attracting financial and health care related tenants, however, there is a clear opportunity to diversify the tenant base with both large credit-quality institutional tenants and smaller innovative Louisville based firms. Recently signed leases include a renewal of financial-services tenant PNC (Fitch: A+) who vacated PNC Plaza and consolidated all employees into PNC Tower last May. As part of its consolidation, PNC made a long-term commitment to PNC Tower which included an estimated $20 million investment into their space. More recent leases include consulting firm Gresham Smith and venture capital Chrysalis Ventures. PNC Tower has also generated strong leasing interest from companies in the technology, utility, law, and EXECUTIVE SUMMARY accounting industries. An investor has the opportunity to capitalize on this trend and further diversify a tenant roster that generates a stable cash flow stream. 10 The Property also includes a 5-story annex containing 24,945 square feet of ground floor rentable area and a 516-space parking garage on the east side of the property. A long-term lease TOWER th with UBS for 9,870 SF on 4 and Main Street will soon be expiring creating an opportunity to improve the exterior façade and utilize the frontage along downtown’s premiere intersection. This is a prime opportunity for a retail tenant to occupy a high visibility corner at the historical epicenter of Louisville’s CBD. This location would benefit from its proximity to the 4th Street Live entertainment corridor, the Kentucky International Convention Center 2018 completion, the KFC Yum! Center foot traffic, and the flourishing Whiskey Row. The recently improved PNC parking equipment and garage signage implemented in late 2016 and early 2017 have significantly increased its usage and demand with no corresponding increase in parking rates. With the potential to sign a NNN retail lease in place of UBS and the ability to push parking rates, the annex presents a substantial opportunity to capture value and further integrate the Property with downtown Louisville. 10 HUMANA’S OPTIMAL LOCATION PNC Tower is the optimal strategic location for anchor tenant Humana Inc. (Fitch: BBB+). Humana, the 5th largest Health Insurance company in the U.S., is based in Louisville with EXECUTIVE SUMMARY headquarters located across 5th street from the Property. After right-sizing their portfolio in anticipation of the 2016 merger with health care giant Aetna, Humana has grown organically to become the second largest owner in downtown Louisville with 2.3 million square feet in the CBD. After vacating space in 400 West Market, Humana's primary leased space is in Waterfront Plaza and PNC Tower. In comparison to Waterfront Plaza, PNC Tower offers more available square feet, an efficient floorplan layout, Class A amenities and building profile, and a location that is right next to Humana’s Headquarters, positioning the Property as the ideal location and potential benefactor