M&T Bank Building and Garage

GABLES OFFICE BUILDING PRESENT DAY

GABLES OFFICE BUILDING PRESENT DAY PROPOSED RESTORATION

STARTING BID: $300,000 M&T Bank Building and Garage AUCTION: MARCH 22-24, 2021

1331 12TH AVENUE CLICK HERE TO ACCESS AUCTION SITE ALTOONA, PENNSYLVANIA 16603 A 155,000 SF VALUE-ADD OPPORTUNITY | ATTACHED PARKING DECK INCLUDED AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

Affiliated Business Disclosure further interest in the acquisition of the Property, (ii) full agreements referenced. Additional information you will hold it in the strictest confidence, (iii) you and an opportunity to inspect the Property may be CBRE, Inc. operates within a global family of will not disclose it or its contents to any third party made available to qualified prospective purchasers. companies with many subsidiaries and related without the prior written authorization of the owner You are advised to independently verify the entities (each an “Affiliate”) engaging in a broad of the Property (“Owner”) or CBRE, Inc., and (iv) accuracy and completeness of all summaries and range of commercial real estate businesses you will not use any part of this Memorandum in information contained herein, to consult with including, but not limited to, brokerage services, any manner detrimental to the Owner or CBRE, Inc. independent legal and financial advisors, and property and facilities management, valuation, carefully investigate the economics of this investment fund management and development. At If after reviewing this Memorandum, you have no transaction and Property’s suitability for your needs. times different Affiliates, including CBRE Global further interest in purchasing the Property, kindly Investors, Inc. or Trammell Crow Company, may return it to CBRE, Inc. ANY RELIANCE ON THE CONTENT OF THIS have or represent clients who have competing MEMORANDUM IS SOLELY AT YOUR OWN RISK. interests in the same transaction. For example, Disclaimer Affiliates or their clients may have or express an The Owner expressly reserves the right, at its sole This Memorandum contains select information interest in the property described in this discretion, to reject any or all expressions of interest pertaining to the Property and the Owner, and does Memorandum (the “Property”), and may be the or offers to purchase the Property, and/or to not purport to be all-inclusive or contain all or part successful bidder for the Property. Your receipt of terminate discussions at any time with or without of the information which prospective investors may this Memorandum constitutes your acknowledgment notice to you. All offers, counteroffers, and require to evaluate a purchase of the Property. The of that possibility and your agreement that neither negotiations shall be non-binding and neither information contained in this Memorandum has CBRE, Inc. nor any Affiliate has an obligation to CBRE, Inc. nor the Owner shall have any legal been obtained from sources believed to be reliable, disclose to you such Affiliates’ interest or commitment or obligation except as set forth in a but has not been verified for accuracy, involvement in the sale or purchase of the Property. fully executed, definitive purchase and sale completeness, or fitness for any particular purpose. In all instances, however, CBRE, Inc. and its agreement delivered by the Owner. All information is presented “as is” without Affiliates will act in the best interest of their representation or warranty of any kind. Such respective client(s), at arms’ length, not in concert, CBRE and the CBRE logo are service marks of information includes estimates based on or in a manner detrimental to any third party. CBRE, CBRE, Inc. All other marks displayed on this forward-looking assumptions relating to the general Inc. and its Affiliates will conduct their respective document are the property of their respective economy, market conditions, competition and other businesses in a manner consistent with the law and owners, and the use of such logos does not imply factors which are subject to uncertainty and may all fiduciary duties owed to their respective client(s). any affiliation with or endorsement of CBRE. not represent the current or future performance of Confidentiality Agreement the Property. All references to acreages, square footages, and other measurements are Your receipt of this Memorandum constitutes your approximations. This Memorandum describes acknowledgment that (i) it is a confidential certain documents, including leases and other Memorandum solely for your limited use and materials, in summary form. These summaries may benefit in determining whether you desire to express not be complete nor accurate descriptions of the © 2021 CBRE, Inc. All Rights Reserved. Table of Contents

01 02 03 04

INVESTMENT SUMMARY ASSET OVERVIEW FINANCIAL OVERVIEW MARKET OVERVIEW

Investment Summary PROPERTY SUMMARY

Investment Summary STARTING BID $300,000 The Gables Department Store opened on this site in 1892 and was the center for economic activity for AUCTION DATES MARCH 22-24, 2021 the region until its closing in the 1980s; the 155,000 square foot building has since been converted to Year End 2020 $163,415.20 a multi-tenant office building. The Property, which is located at 11th and 12th Avenues in Altoona, PA’s Occupancy 48% central business district, includes two towers: the 11th Avenue tower contains 81,859 square feet and the 12th Avenue tower has 73,195 square feet. There is also a dedicated parking deck with 200 spaces for Total Square Feet 155,054 SF 11th Avenue Tower 81,859 SF use by the tenants. 12th Avenue Tower 73,195 SF A new façade was installed to modernize the Property; however, there is a $3 million RCAP Grant in place Floors 6 to “daylight” the 11th Avenue building back to its original design. Numerous redevelopment options can Site Area 1.59 Acres be pursued by the new owner. Since the towers are only 48% occupied, it has been suggested the existing tenants be consolidated in one tower leaving the other tower for redevelopment for office, multi-family, Year Built/Renovated 1892/1980’s senior housing or hospitality use. CoStar data shows a vacancy rate of 2% in Altoona with a five-year Parcel ID 103-10-54 history of rent growth which is expected to continue. Zoning Commercial: Central Business Existing tenants include M&T Bank and numerous health care and community service organizations. Upon On-site Parking Spaces 200 completion of the façade “daylighting”, there may be opportunities for Historic Tax Credits. Combined with an existing RCAP Grant, this investment presents a truly value-add opportunity.

LOOKING NORTH LOOKING SOUTH

Gables Building

6 | THE GABLES BUILDING STARTING BID $300,000 Surrounding Amenities AUCTION DATES MARCH 22-24, 2021 Year End 2020 $163,415.20 Occupancy 48% Total Square Feet 155,054 SF 11th Avenue Tower 81,859 SF 12th Avenue Tower 73,195 SF Gables Building Floors 6

Site Area 1.59 Acres ALLEGHENY BRAIN & SPINE SURGEONS LOGAN VALLEY MALL LOGAN TOWNE CENTER Year Built/Renovated 1892/1980’s ALTOONA PARK HILLS PLAZA Parcel ID 103-10-54 Zoning Commercial: Central Business

On-site Parking Spaces 200 KNY FAMILY FITNESS CENTER

IRON PINT BREWERY

TOM & JOE’S RESTAURANT CHEWYS PIZZA ALTOONA MISHLER THEATRE

ALTOONA PIPE & STEEL MAYBROOK Gables Building SUPPLY HILLS VALLEY VIEW REHAB & DISC GOLF HEALTHCARE COURSE

SUN & MOON ALTOONA SPORTS BAR COURTESY

PENN- LINCOLN ELEMENTARY SCHOOL FIRST STOP VALLEY SHOP ALTOONA DISCOUNT VIEW JUNIOR HIGH COUNTY GROCERY SCHOOL OUTLET PARK

NARDO’S CAFE

THE GABLES BUILDING | 7 Investment Highlights

• A value-add investment opportunity with strong existing rent roll and vacancy to redevelop for additional revenue

• Existing $3 million Regional Assistance Capital Program grant (RCAP) and it is transferable

• Possible Historic Tax Credits available upon completion of RCAP “Daylighting” program

THE GABLES BUILDING, 1950

Pittsburgh

PROPOSED RESTORATION THE GABLES BUILDING INCLUDES AN ATTACHED PARKING DECK THE GABLES BUILDING, PRESENT DAY

8 | THE GABLES BUILDING ALTOONA, PA

Area Highlights

• Beautiful Allegheny Mountain location

• Home to Penn State Altoona with 3,250 students

• Solid economy and demographics

• 96 miles to Pittsburgh and 45 miles to State College

• Good highway access with I-99 and State Route 22

• Adjacent to Penn State Altoona downtown buildings

State College

Gables Building

Pittsburgh

THE GABLES BUILDING | 9

Asset Overview Floor Plan - 11th Avenue Basement

12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE 11TH AVENUE BASEMENT

12 | THE GABLES BUILDING Floor Plan - 11th Avenue First Floor & 12th Floor Basement

12TH AVENUE BASEMENT 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE 11TH AVENUE FIRST FLOOR

THE GABLES BUILDING | 13 Floor Plan - 11th Avenue Second Floor & 12th Avenue Sub Basement

12TH AVENUE SUB BASEMENT 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE 11TH AVENUE SECOND FLOOR

14 | THE GABLES BUILDING Floor Plan - 11th Avenue Second Floor & 12th Avenue Sub Basement Floor Plan - 11th Avenue Third Floor & 12th Avenue First Floor

12TH AVENUE FIRST FLOOR 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE 11TH AVENUE THIRD FLOOR

THE GABLES BUILDING | 15 Floor Plan - 11th Avenue Fourth Floor & 12th Avenue Second Floor

12TH AVENUE SECOND FLOOR 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE 11TH AVENUE FOURTH FLOOR

16 | THE GABLES BUILDING Floor Plan - 11th Avenue Fourth Floor & 12th Avenue Second Floor Floor Plan - 12th Avenue Third Floor

12TH AVENUE THIRD FLOOR 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE

THE GABLES BUILDING | 17 Floor Plan - 12th Avenue Fourth Floor

12TH AVENUE FOURTH FLOOR 12TH AVENUE 13TH AVENUE 14TH AVENUE

11TH AVENUE

18 | THE GABLES BUILDING Floor Plan - 12th Avenue Fourth Floor Property Size Details

11th Avenue Tower

Basement 20,857 usable square feet * 1st 20,674 2nd 20,134 3rd 20,420 4th 20,631 102,716 81,859 SF without the basement

12th Avenue Tower

Sub Basement 29,777 usable square feet * Basement 33,519 1st 29,963 2nd 18,210 3rd 12,511 4th 12,511 136,491 73,195 SF without the basements

155,054 Total usable square feet above grade

* Measurements only include usable square feet, does not include stairways, elevators or vestibules

THE GABLES BUILDING | 19 Property Details

Property Description Two adjacent office buildings and a connected parking deck

Total Square Feet 155,054 usable square feet of office area and 3 floor parking deck with 200 spaces.

Acres 1.59

Parcel ID 103-10-54

Zoning Commercial: Central Business

Year Built/Renovated 1892/1980’s

Property Location Altoona, Blair County, Pennsylvania

HVAC Approximately 25 Trane, Carrier, Typhoon and Leibert units located on roofs, parking garage and basement

Hot Water Numerous 40 and 10 gallon units

Roof Rubber, various ages

Electrical Service 2,500 amp

Electric Supplier Penelec

Elevators 11th Avenue Building - 2 passenger and 2 freight 12th Avenue Building - 1 passenger and 1 freight

Fire Safety Wet sprinklers throughout

Water and Sewer Altoona Water Authority

20 | THE GABLES BUILDING Property Details

THE GABLES BUILDING | 21 TEAM OVERVIEW TEAM OVERVIEW Market Overview Altoona, Pennsylvania Overview ALTOONA'S TOP EMPLOYERS

Altoona is a city in Blair County, Pennsylvania. It is the principal city of the Altoona Metropolitan Statistical Area (MSA). Altoona lies at the base of Brush Mountain within Logan Valley and Pleasant Valley.

STATE GOVERNMENT LARGE EMPLOYERS

UPMC Altoona is a 380-bed, non-profit, private community hospital system that contains more than 20 affiliated health care companies and functions as the regional referral center and tertiary hub of the University of Pittsburgh Medical Center (UPMC). Founded in 1883 as to serve the needs of the area and the Pennsylvania Railroad, the FEDERAL GOVERNMENT hospital was known for most of its history simply as Altoona Hospital. It became part of the Altoona Regional Health System which was created in 2004 by the merger of Altoona Hospital with Bon Secours-Holy Family Hospital, previously Mercy Hospital of Altoona. Today as part of UPMC, it is an Adult Level II trauma center for a 20-county region in central Pennsylvania and is served by 300 physicians and 4,000 care givers that help it to ALTOONA'S provide a variety of medical services and specialties.

Just south of Altoona is the new Sheetz headquarters in Claysburg, Pennsylvania. Sheetz is one of the largest TOP ECONOMIC DRIVERS convenience store and gas station chains in the country. Noted for being exceptionally large (stores average up to 5,000 sq. ft., nearly twice the size of the average 7-Eleven), Sheetz convenience stores sell groceries, fountain drinks, baked goods, and made-to-order sandwiches and salads; they also offer self-service car washes and discount gas. The company operates nearly 600 combination convenience stores and gas stations in Pennsylvania and five other eastern states. Its stores are open 24 hours a day, 365 days a year. Founded in 1952 by Bob Sheetz, the company is owned and run by the Sheetz family.

NEW SHEETZ HEADQUARTERS

30 | THE GABLES BUILDING MAJOR THOROUGHFARES I-99 passes through Altoona and State College—the latter home to Pennsylvania State University—and is entirely concurrent to US 220, within Pennsylvania. Long-term plans U.S. Route 22 is a west–east route and is one of the original United States highways call for I-99 to be extended southward along the US 220 corridor to an interchange with of 1926, running from Cincinnati, Ohio, at US 27, US 42, US 127, and US 52 to I-68 in Cumberland, Maryland. Newark, New Jersey, at U.S. Route 1/9 in the Newark Airport Interchange. US 22 is named the "William Penn Highway" throughout most of Pennsylvania. In southwest Ohio, it overlaps with State Route 3 and is familiarly known as the 3C Highway, "22 and 3", and RECREATION Montgomery Road. Recreation plays a big part of the Altoona area. Blue Knob All Seasons Resort offers a U.S. Route 22 reaches Pittsburgh, Pennsylvania from Altoona. unique alpine environment including the highest skiable mountain in Pennsylvania with 34 trails – including the only true “double blacks” in the East. Interstate 99 is an Interstate Highway with two segments: one located in central Pennsylvania, and the other in southern New York in the United States. The southern terminus of the In warmer months Blue Knob offers golf, mountain biking, and more, including a gourmet route is near exit 146 of the Pennsylvania Turnpike (I-70 and I-76) north of Bedford, restaurant specializing in French cuisine with an Alpine flair. where the road continues south as U.S. Route 220 (US 220). The northern terminus of the The Juniata River Water Trail flows through a rural landscape offering good fishing and Pennsylvania segment is near exit 161 of I-80 near Bellefonte. The New York segment follows camping opportunities to connect with nature, history, and culture along 142 miles of flat, US 15 from the Pennsylvania–New York border to an interchange with I-86 in Corning. easy water paddling.

BLUE KNOB ALL SEASONS RESORT

JUNIATA RIVER WATER TRAIL Penn State Altoona spans across 171.5 acres, which includes a reflecting pond, all-purpose athletic fields, turf soccer field with 8-lane track, 33 buildings, and a 43-acre Seminar Forest. PENN STATE ALTOONA

Penn State Altoona consists of the Ivyside Park campus and Downtown Altoona Campus, Penn State’s “THON” is a student-run philanthropy committed to enhancing the lives of and is the third largest of the Penn State campuses. Penn State Altoona is a full-service, children and families impacted by childhood cancer; THON is the largest student-run four-year school located less than 45 miles from the main campus at State College. The philanthropy in the world. Participants dance for over twenty-four hours to raise money current enrollment is 3,250 students. in pursuit of a cure. To this day, THON has helped 4,000 families, 16,500 students have volunteered, and $157,000,000 has been raised. Penn State Altoona has 15 NCAA Division III Varsity Sports teams, which include men’s baseball, basketball, golf, soccer, STUDIES swimming, tennis, and volleyball. Women’s athletic teams include basketball, bowling, Penn State Altoona offers 21 four-year degrees and the first two years of over 275+ Penn golf, soccer, softball, swimming, tennis, and volleyball. Penn State Altoona offers 14 club State majors. Majors range from accounting to biology, business to criminal justice, and sports, from cheerleading and ice hockey to rugby and ultimate frisbee. electro-mechanical engineering technology to nursing. Additional programs include 19 minors in studies including dance, entrepreneurship, music technology, and professional writing. Associate degrees are available in areas such as business administration and NEW DEGREE PROGRAMS science. In its ninth full year, the accelerated baccalaureate nursing program will reach New four-year degree programs have been added as an option for undergraduate approximately 240 graduates by December 2019. studies. These programs will change the face of university via diversity of the disciplines as well as their ability to attract higher-achieving undergraduate students in the country. STUDENT LIFE The new 4-year programs consist of studies in Nursing, Rail Transportation Engineering, Students can choose from over 90 clubs in several categories, including activism, and Security and Risk Analysis. Greek life, multicutural, sports and recreation, academic, and student government.

HAWTHORNE HALL

THE GABLES BUILDING | 33 Altoona,Sear cPennsylvaniah Analytic sOffice Stats

Market Rent Per SF Market Rent Growth (YOY)

$20.00 10% Forecast Forecast

$19.00 8%

6% $18.00 4% $17.00 2% $16.00 0%

$15.00 -2%

$14.00 -4% 12 14 16 18 20 22 24 12 14 16 18 20 22 24

34 | THEM GABLESark eBUILDINGt Rent & Gross Asking Rent Per SF Gross Asking Rent Per SF

$20.00 $18.00 Forecast

$18.00 $16.00

$16.00 $14.00 $14.00 $12.00 $12.00 $10.00 $10.00

$8.00 $8.00

$6.00 $6.00 12 14 16 18 20 22 24 11 12 13 14 15 16 17 18 19 20 Market Rent Gross Asking Rent

Daily Vacancy Rate Vacancy Rate

2.8% 7% Forecast 2.6% 6% 2.4% 5% 2.2% 4% 2.0% 3% 1.8% 2% 1.6%

1.4% 1%

1.2% 0% Feb 20 Apr 20 Jun 20 Aug 20 Oct 20 Dec 20 12 14 16 18 20 22 24

Vacant SF Occupancy Rate THE GABLES BUILDING | 35

140K 100% Forecast Forecast 120K 99% 98% 100K 97% 80K 96% 60K 95% 40K 94%

20K 93%

0 92% 12 14 16 18 20 22 24 12 14 16 18 20 22 24

INVESTMENT PROPERTIES

GERRY DUDLEY MAGGIE DUDLEY DAN SLIGER Executive Vice President Associate Vice President +1 412 471 4066 +1 412 995 3811 +1 412 471 4067 [email protected] [email protected] [email protected]

CBRE PITTSBURGH 600 Grant Street Suite 4800 Pittsburgh, PA 15219 +1 412 471 9500 www.cbre.us/pittsburgh

FOR AUCTION QUESTIONS

AARON BUILDING IN DOWNTOWN ALTOONA PHIL KATES ADAM SKLAVER First Vice President First Vice President +1 305 206 1286 +1 301 706 4619 [email protected] [email protected]