407 NORTH PENNSYLVANIA STREET DOWNTOWN INDIANAPOLIS, in Salesforce Tower

407 NORTH PENNSYLVANIA STREET DOWNTOWN INDIANAPOLIS, IN Salesforce Tower

300 N Meridian Regions Tower

Federal Building Table of Contents

Executive Summary ...... 1

Area Overview...... 7

Apartment Market...... 9

Office Market...... 11

Zoning & Ordinance...... 13

Selected Demographics...... 14

CONFIDENTIALITY STATEMENT This Offering Memorandum (OM) was prepared by Cushman & Wakefield (Broker) and has been reviewed by the Owner. The OM is confidential, furnished solely for the purpose of considering the acquisition of the Property described herein, and is not to be used for any other purpose or made available to any other person without the express written consent of Broker. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

The information contained herein has been obtained from sources deemed reliable, and we have no reason to doubt its accuracy. However, no warranty or representation, expressed or implied, is made by the Owner or Broker or any related entity as to the accuracy or completeness of the information contained herein, including but not limited to financial information and projections, and any engineering and environmental information. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the building(s) or located at the land site, including but not limited to lead-based products (for compliance with “Target Housing” regulation for multifamily housing constructed prior to 1978), asbestos, etc.

The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. The Owner shall have no legal commitment or obligation to any purchaser unless a written agreement for the purchase of the Property has been delivered, approved, and fully executed by the Owner, and any conditions to the Owner’s obligations thereunder have been satisfied or waived. Broker is not authorized to make any representations or agreements on behalf of the Owner. Broker represents the Owner in this transaction and makes no representations, expressed or implied, as to the foregoing matters. The depiction of any persons, entities, signs, logos, or properties (other than Broker’s client and the Property) is incidental only and not intended to connote any affiliation, connection, association, sponsorship, or approval by or between that which is incidentally depicted and Broker or its client.

This OM is the property of Cushman & Wakefield and may be used only by parties approved in writing by Broker. The information is privately offered and, by accepting this OM, the party in possession hereon agrees (i) to return it to Cushman & Wakefield immediately upon request of Broker or the Owner and (ii) that this OM and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this OM may be copied or otherwise reproduced and/or disclosed to anyone without the written authorization of Broker and Owner. The terms and conditions set forth above apply to this OM in its entirety. EXECUTIVE SUMMARY

Cushman & Wakeﬁeld is pleased to present the exclusive listing of a large parcel with multi-family, oce or mixed-use development potential in close proximity to all major oce towers and the popular Mass Avenue corridor in downtown Indianapolis. This is arguably the ﬁnest site positioned for development in the entire CBD. Bids Due: Friday, June 16, 2017

PROPERTY SUMMARY

Address 407 North Pennsylvania Street 408 North Delaware Street Indianapolis, IN 46204 Site Size 60,000 SF+/- 175-space surface parking lot with Improvements landscaping May 2015 - April 2018 Annual guaranteed rent + overage rent Lease Abstract (Leased to 3rd party With sale-30 day termination w/ written parking operator) notice. Owner pays RE taxes + storm water (pay 2016 = $25,601.58 + $96.60) CBD3 RC (Regional Center) Zoning Variance for parking lot 2006VAR833

1 | OFFERING MEMORANDUM SCOTT POLLOM, CCIM Director Captal Markets 317 639 0403 [email protected]

OFFERING MEMORANDUM | 2 EXECUTIVE SUMMARY

60,000± Square Feet - Paved parking operation with excellent views to Meridian St. corridor, downtown skylines and Memorial Plaza.

Location Summary N

• NE Corner of Pennsylvania & Vermont Streets extending to Delaware Street

• Currently improved and operated for surface parking. Total spaces - 175 ±

• Zoned: CBD-3, Regional Center N Meridian High Visibility

Frontage on Pennsylvania Street 202’ N Pennsylvania

Frontage on Vermont Street 194.6’

Frontage on Delaware Street 100.8’

E Vermont

O ce Buidlings in Immediate Vicinity

• 300 North Meridian Tower

• Regions Tower

• Salesforce Tower

• Federal Building Courthouse Amenities Within Walking Distance • One America Tower • Indiana War Memorial Plaza • Mass Ave Historic District

• Veterans Memorial Park • Old National Centre

• Lockerbie Market Place • Indianapolis Public Library

• City Market • Countless Restaurants

• Monument Circle • CVS & Walgreens

• Sheraton City Centre Hotel • Indianapolis Athletic Club

• Marsh Groceries • Columbia Club

OFFERING MEMORANDUM | 3 EXECUTIVE SUMMARY

Mass Ave Historic District

01 Eagle Bar & Grill N 02 Bazbeaux Pizza

03 Ball & Biscuit

04 MacNiven’s 18 Restaurant & Bar 05 Louie’s Wine Dive

06 Bakersﬁeld

17 07 Marsh Supermarket 15 16 08 Old Point Tavern 14 23 11 13 09 The Flying Cupcake 12 10 9 Shiraz Wine Experience and 10 Art Café 08 11 Chatterbox Jazz Club

12 Starbucks

07 13 Bru Burger Bar 06 24 05 01 04 14 Subway 03 19 15 Hoaglin To Go 22 02 16 The Rathskeller

17 Ka°eine Co°ee Co±

18 Nine Irish Brothers

19 The Tap 20 21 20 India Garden

21 BARcelona Tapas Restaurant

22 Wild Eggs

Sub Zero Ice Cream 23 & Yogurt Pulliam Square (partially 24 ﬁnished)

OFFERING MEMORANDUM | 4 EXECUTIVE SUMMARY

HIGHLIGHTS 1 Thriving Central Indiana Economy Leads the Midwest in Job Growth

2 Steady Rent Growth in Indy’s Urban Core

Arguably the Best Development Site in the 3 Indianapolis CBD

Location Will Demand Top-of-Market 4 Rents in Indy’s Most Popular Submarket

Current Parking Income Helps Support Carrying Cost Until 5 Development Starts

5 | OFFERING MEMORANDUM EXECUTIVE SUMMARY

OFFERING MEMORANDUM | 6 OFFERING MEMORANDUM VIERA WILDEWOOD | FINANCIALAREA OVERVIEW ANALYSIS

INDIANAPOLIS, INDIANA BY THE NUMBERS

MSA Population - 2015 939,020 Total Employment (Nov15) 449,216 Unemployment Rate (Jun16) 4.6% Key Industries: State Government, Healthcare, Education, Military Primary Growth Sectors: Education, Distribution

AWARDS AND ACCOLADES • #1 Cost of Doing Business, CNBC

• Best Places for Business and Careers, Forbes (2015)

• #5 Best State for Property Tax, Tax Foundation (2016)

• #8 Best State for Tax Index, Tax Foundation (2016)

• #8 Best State Business, Forbes (2015)

• #9 America’s most a ordable cities, Forbes (2015)

• Indiana is one of only 15 states earning a AAA credit rating from all three agencies, (S&P, Fitch and Moody’s)

7 | OFFERING MEMORANDUM AREA OVERVIEW

INDIANA

Indiana methodically created a business environment where conditions promote success. Whether it’s minimizing operating expenses or delivering the workforce training and infrastructure required for a company to grow, Indiana is one of the most business-friendly states in America.

INDIANAPOLIS

LOCATION, LOCATION, LOCATION

• Known as the Crossroads of America, more interstate highways, including I-65, I-69, I-70 and I-74, converge in Indianapolis than any other city in the United States.

• Indianapolis is the most centrally located city in the United States; 50% of all U.S. businesses and 80% of the U.S. and Canadian populations can be reached within a one day’s drive from the Indianapolis region.

• The Hoosier state ranks in the top 10 in 46 logistics categories. Indiana gets high marks for transportation, infrastructure, cargo movement, employment and number of companies in all modes of freight transportation—truck, rail, air and water. Indianapolis is home to the second-largest FedEx hub in the world.

• A new intermodal facility opened in 2013 in downtown Indianapolis allowing cargo to travel from Asia to Indiana nonstop. This facility is expected to reduce supply chains by as much as one full week—having a rail route that bypasses Chicago means a container of goods could make it from Asia to Indy in as little as 20 days.

• Indiana is the Best State for Business in the Midwest and #6 in the nation. (Chief Executive Magazine, 2015)

• Indiana is #8 on the list of Best States for Business. (Forbes, 2015)

• Indianapolis is #9 on the list of America’s Most Aordable Cities. (Forbes, 2015)

• Indiana is #1 in the Midwest and #7 in the nation in the Top States for Doing Business Survey. (Area Development Magazine, 2014)

• Indiana o°ers the Best Business Tax Climate in the Midwest and is #8 in the nation. (Tax Foundation, 2014)

• Indiana has the overall Best Business Climate in the Midwest. (Site Selection Magazine, 2014)

• Indianapolis is one of the Top 10 Great Cities for Starting a Business. (Kiplinger, 2014)

• Indiana is one of only 15 states earning a AAA credit rating from all three agencies. (S&P, Fitch and Moody’s)

OFFERING MEMORANDUM | 8 APARTMENT MARKET

APARTMENT MARKET

The Indianapolis economy has expereienced year-over-year employment growth, as total nonfarm employment has risen by 1.6% since Q4 2015. Over this same period of time, the unemployment rate has marginally improved to 4.0%, 80 basis points (BPS) lower than the national average. THe Indianapolis Metropolitan Statistcal Area (MSA) has experienced robust employment in the Financial Activities sector, as jobs grew by 7.8% dating back to Q4 2015. Alongside a budding technology sector, the growth of these employment sectors is a positive stimulus toward continued demand for multi-family product in Indianapolis.

APARTMENT MARKET SUMMARY - 4Q2016 INDIANAPOLIS

Inventory 108,797 Units

Average Rent $832

Units U/C 2,064 Units

Source: Cushman & Wakeﬁeld.

OUTLOOK

• The Downtown multi-family submarket has experienced rapid YOY rent growth and will add more than 780 units to inventory over the course of 2017.

• Indianapolis continues to be a hotbed for multi-family investment activity as 2016 year-end transaction volume topped $225 million.

9| OFFERING MEMORANDUM APARTMENT MARKET

MULTIFAMILY RENT COMPS - DOWNTOWN

PROPERTY UNITS BUILT OCC. AVG. SF AVG. MKt. RENT RENT/PSF

1 Pulliam Square 145 2015 94.5% 978 $1,669 $1.71

2 Lockerbie Lofts 215 2016 - 800 $1,433 $1.79

3 Circa 260 2015 94.3% 774 $1,450 $1.87

4 Mentor and Muse 242 2016 60.3% 755 $1,488 $1.97 at Artistry

5 Artistry 258 2014 98.1% 761 $1,439 $1.89

6 Mozzo 65 2013 90.8% 718 $1,338 $1.86

7 Slate 68 2015 98.5% 803 $1,500 $1.87

OFFERING MEMORANDUM | 10 OFFICE MARKET

OFFICE MARKET

The Greater Indianapolis oce market posted 8,391 SF of positive absorption in the ﬁnal quarter of 2016. This marks the 11th consecutive quarter in which the Indianapolis oce market posted positive net absorption. The Central Business District (CBD) accounted for nearly 52,000 SF of net absorption in Q4 2016, to ﬁnish the year with 180,000 SF of year-to-date (YTD) net absorption.

The oce construction pipeline is full of build-to-suit oriented projects, many of which contain speculative suites that will hit the market over the course of 2017. Of the 600,000+ SF of oce space currently under construction, nearly 500,000 SF is of the build-to-suit variety, with just over 100,000 SF of speculative space scheduled to become available.

2016YE - Downtown Market Inventory Bldgs: 105

Inventory SF: 9,968,928

Vacant SF Total: 1,294,829

Vacant % Total: 13

Total Available SF: 1,796,517

Vacant Available SF: 1,047,670

Vacant Available % 10.5

Occupancy SF: 8,673,669

Occupancy %: 87

Net Absorption SF: 13,115

Gross Absorption SF: 150,616

Leasing Activity SF: 135,988

11 | OFFERING MEMORANDUM OFFICE MARKET

OFFICE LEASE COMPS - DOWNTOWN

PROPERTY Total SF Lease Type Avg. Rate

1 Market Tower 495,000 Full Service $20.79 10 W Market Street

2 Regions Tower 685,612 Full Service $18.90 1 Indiana Square

3 BMO 673,000 Full Service $19.52 135 N Pennsylvania Street

Salesforce Tower 1,000,000 Full Service $25.35 111 Monument Circle

5 300 N Meridian Street 337,000 Full Service $22.10

6 30 South Meridian Street 293,000 Full Service $20.89

7 Capital Center 650,000 Full Service $19.84 201 North Illinois Street

8 Fifth Third Bank 327,054 Full Service $17.68 251 North Illinois Street

OFFERING MEMORANDUM | 12 ZONING AND ORDINANCE

CENTRAL BUSINESS DISTRICT THREE (CBD-3) (PP 266-267)

The CBD-3 district is the area surrounding the American Legion Mall extending down to the CBD-1 district. To foster the highly pedestrian environment and maximize land eciency, vehicle accomodations are strictly limited, and surface parking is prohibited. The district is designed to protect the views of landmarks, monuments and plazas that are public assets, speciﬁcally views of the Soldiers and Sailors Monument, the Capitol Buidling, the World War Memorial plaza, the public library, and Meridian Street. Pedestrian activity is encouraged both by the presence of pedestrian facilities like sidewalks as well as by the environment through which the pedestrian passes, such as an active grade level street front, trees and landscaping, maintaining a sense of deﬁned urban space that is safe and highly legible.

CBD-3 District Dimensional Standards

LOT STANDARDS

Maximum coverage: 100%

SETBACKS

Minimum front setback: n/a

Minimum width of side yard: n/a

Minimum depth of rear yard: n/a If a setback is provided on rear or side lot line not abutting an alley: 10 feet BUILDING STANDARDS

Sky exposure plane: n/a This Table is a summary of selected standards, refer to Chapter 744, Article II Lot and Building Dimensions for additional regulations. *Incase of a discrepancy with this summary table, the master table in Chapter 744-II governs.

- All business and retail enterprise shall be conducted within completely enclosed buidlings.

- Drive-in establishments o°ering goods, food or services to customers waiting in cars shall not be permitted.

- No side or rear setback is required, but if a side or rear setback is provided it shall be not less than 10 feet in width.

13 | OFFERING MEMORANDUM SELECTED DEMOGRAPHICS (.5 MILE RADIUS)

Average Household Income Travel Time (2010) Estimated Average Household Income (2016) $66,728 Travel to Work in 14 minutes or Less 41.3% Projected Average Household Income Travel to Work in 15-29 Minutes 34.8% (2021) $78,659 Work at Home 7.2% Projected Annual Change (2016-2021) $11,931 (3.6%) Trasportation to Work (2010) Per Capital Income Estimated Average Household Net Worth Bicycle to Work 1,898 (2016) $482,232 Walk to Work 18.9% Total Age Distribution (2016) Work at Home 7.2% Age 20-24 Years 14.0% Daytime Demographics (2016) Age 25-29 Years 18.7% Total Businesses 16.1% Age 30-34 Years 11.6% Total Employees 50,226 Median Age Company Headquarter Businesses 23.8% Age 19 Years or less 12.2% Company Headquarter Employees 22.3% Age 20-64 Years 81.6% Occupation (2010) Age 65 Years or over 6.2% White Collar Workers 79.2% Household Type (2016) Blue Collar Workers 20.8% Total Households 2,723 Home Values (2010) Average Family Household Size 2.6 Home Values $1,000,000 or More 1.2% Average Family Income $122,848 Home Values $750,000 to $999,999 3.3% Educational Attainment (2016) Home Values $500,000 to $749,999 11.2% Some College 16.1% Home Values $400,0000 to $499,999 2.1% Bachelor Degree Only 28.5% Home Values $300,000 to $399,999 18.8% Graduate Degree 23.8% Home Values $250,000 to $299,999 18.7% Housing Owner-Occupied Median Home Value $256,975 Housing Units Occupied (2016) 2,723

Housing Units Renter-Occupied 2,195

Household Vehicles (2016)

Households 0 Vehicles Available 16.5%

Households 1 Vehicle Available 57.5%

OFFERING MEMORANDUM | 14 MASS AVE

- DELAWARE

- VERMONT -

PENNSYLVANIA -