THE OPPORTUNITY 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF THE OPPORTUNITY OFFERING INVESTMENT The Kensington offers an investor a consistent and steady cash-flowing asset in one of the strongest economies in the United States. Downtown Location: The Kensington has one of the best locations in downtown Salt Lake City. Located on Main Street, one of the most prestigious and historic avenues in Salt Lake, residents can walk one block to Temple Square and the heart of downtown Salt Lake City. The City Creek Center is also only one block from the property. City Creek Center is a world-class retail and business center with over 100 shops. Major anchors include Nordstrom, Macey's, Tiffany & Co., Restoration Hardware, Microsoft Store, Apple, Michael Kors, and Disney Store. The property enjoys excellent proximity to transit, jobs, shopping, dining, and entertainment. Public transit is adjacent to the property. Jobs: The Kensington is located within the highest density location of jobs in the state. Over 56,600 jobs are in a one-mile radius. Within a seven-mile radius, which includes the Salt Lake City International Airport are 334,000 jobs. Purchase Below Replacement Cost: The property will be sold below replacement cost. New construction in the submarket is estimated at over $225,000 per unit. The Kensington is well below that. Purchase with New Debt: The property will be delivered free and clear. Economy: Utah has a strong and growing economy. Utah has an unemployment rate of 3.5% and job growth of 3.8% year-over-year. Utah politicians continue to entice business and industry with a tax friendly atmosphere. The Salt Lake City International Airport is undergoing a 1.8 billion dollar expansion. Currently the airport serves 22 million people every year. Population growth rate estimated at 6.9% for 2015-2020. Median home price growth rate Y-o-Y 10.7%. Median income growth rate estimated at 18.9% for 2015-2020. The difference between rent vs. own is $537. Household growth rate estimated at 7.1% for 2015-2020. KENSINGTON THE KensingtonSLC.BerkadiaREA.com 5 1 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF LOCATION MAP LOCATION 6 THE KENSINGTON THE 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF EMPLOYER MAP LOCATION EMPLOYER EMPLOYEES Hill Air Force Base 25,500 University of Utah 20,000 Management & Training Corp. 8,215 C.R. England Inc. 7,745 Vivint, Inc. 6,250 Ogden Intermountain Health Care 4,500 L3 Communication Systems West 3,500 Clearfield Delta Airlines 3,450 HILL AIR FORCE BASE Dyno Nobel 3,000 Wells Fargo 3,000 UPS* 2,580 Farmington Discover 2,500 Convergys 2,360 LAGOON CORPORATION, INC JetBlue 2,290 ARUP 2,000 Pacificorp 1,850 Bountiful Cementation 1,670 Comcast 1,600 Young Electric Sign Company 1,550 Verizon Wireless 1,540 Fidelity 1,530 Salt Lake City CHG Healthcare Services 1,370 West Merit Medical 1,317 Valley City Goldman Sachs 1,300 eBay 1,250 West Jordan O.C. Tanner 1,240 Sandy Ultradent Products Inc. 1,100 South Jordan Jordan Valley Hospital 1,000 Rio Tinto 524 Extend Health 462 DealerTrack Systems 380 KENSINGTON THE Morgan Stanley Smith Barney 379 4 Miles South Mediconnect.net, LLC 360 Map data ©2015 Google KensingtonSLC.BerkadiaREA.com 7 1 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF AERIAL LOCATION N S Vivint Smart Home Arena Utah State Capitol City Creek Center The Gateway Mall West Town Center 8 THE KENSINGTON THE 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF NEIGHBORHOOD AERIAL LOCATION Utah State Capitol LDS West High School Conference Center Temple Square BYU Salt Lake City UTA TRAX Line Salt Palace THE KENSINGTON THE Vivint Smart Home Arena (NBA Jazz Basketball) City Creek Center KensingtonSLC.BerkadiaREA.com 9 1 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF PARCEL MAP LOCATION 200 North LDS Conference Center Main Street 10 THE KENSINGTON THE 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF LOCATION DESCRIPTION LOCATION NEIGHBORHOODOOD NEARBY JOBS Shopping • Harmon’s at City Creek Center ( 0.3 Mile) Downtown Salt Lake City Over 260,000 jobs are in downtown Salt Lake -- including University of Utah and Salt Lake International Airport. • City Creek Center (0.3 Mile) Downtown is easily accessible by public transit, which is • The Gateway Mall (1 Mile) adjacent to the property. • Trolley Square Mall (2 Miles) Gateway Mall The Gateway Mall, a contemporary and prestigious Schools • Wasatch Elementary (1.5 Miles) downtown open-air mall, is home to over 100 national, • Bryant Middle School (1 Mile) regional, and local tenants including many restaurants. • East High School (2.9 Miles) Approximately 1,700 jobs are in the mall vicinity. The mall is within easy walking distance from the subject property. College • Westminster College (4 Miles) City Creek Center City Creek Center, a five billion dollar shopping and city • University of Utah (2 Miles) center with office space, opened in 2012. They continue • Western Governors University (7 Miles) to add retailers to the shopping center anchored by • Salt Lake Community College (13 Miles) Macy’s and Nordstrom. Additional retailers include • BYU Salt Lake (1 Mile) Restoration Hardware, West Elm, Tiffany’s, Chico’s, and others. Approximately 2,000 jobs are in the mall vicinity. Hospitals • University Hospital (3 Miles) University Hospital A major research hospital of the West with over 4,500 • St. Mark’s Hospital (7 Miles) jobs. State Street Corridor Over 10,000 commercial, retail and service jobs are Parks & • Energy Solutions Arena Park (1 Mile) within a half-mile of the State Street corridor that runs Recreation • Memory Grove Park (1 Mile) north and south through the valley. • City Creek Canyon (2 Miles) I-15 Corridor Over 25,000 light industrial jobs from the north end to the • Seven World-Class Ski Resorts Along the south end of the valley are near the I-15 north corridor. Wasatch Front (30 Miles or Less) Transportation • UTA bus routes 461,463, & 500 adjacent to the property • TRAX (Light Rail) - Two blocks • Amtrak Station - 2.3 Miles • FrontRunner Station (High-Speed Rail) - 2.3 Miles RETAILERS AT CITYITY CREEKC AND NEARBY THE KENSINGTON THE 11 1 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF PROPERTY SUMMARY ABOUT THE ASSET THE Property Name The Kensington Address 180 North Main Street City, State, Zip Salt Lake City, UT 84103 County Salt Lake Acreage +/- 1.33 Parcel Number 0931309033 & 0931309034 Annualized Unit Mix Type Unit SF Street Rent Surveyed Rent Rent/SF BUILDING 1 0/1 325 $625 $7,500 $1.92 Units 64 1 1/1 435 $650 $7,800 $1.49 Built 1906-1949 36 1/1 735 $1,025 $442,800 $1.39 Buildings Three 26 2/1 925 $1,350 $421,200 $1.46 Stories Four 64 801 $1,145 $879,300 $1.43 Density 48.1 Rentable SF 51,270 Metering Electricity and Gas: Individually Metered 1% Water, Sewer & Trash: Sub-Metered Roof Flat Unreinforced Masonry Construction with Construction Brick Exterior Studio 41% RATINGS 1 Bed / 1 Bath Location A 31% Marketing Window A Access to Services A- 2 Bed / 2 Bath Building Condition B Curb Appeal A- Amenities B 12 THE KENSINGTON THE 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF AMENITIES ASSET THE SITE AMENITIES • Fitness center • Walkable to downtown Salt Lake City • One block from Temple Square • Easy access to hundreds of thousands of jobs in downtown Salt Lake City • Close to the Wasatch Mountains • Excellent location THE KENSINGTON THE 13 1 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF THE ASSET THE 14 THE KENSINGTON THE 5IJTUFYUJTIFSFUPMPDLJOUIFSPUBUJPOPSJFOUBUJPO*UIBTUPCFMPOHFSUIBOUIFUBCUFYUTJOPSEFSUPSFHJTUFSTP*hNQBEEJOHUIJTOPUBTNVDIBTQPTTJCMF.