INVESTMENT OFFERING SUMMARY PARK PLACE CORPORATE CENTER I & II 95% Occupied LEED Gold Class A Suburban Office Pittsburgh,PA PARK PLACE I & II EXECUTIVE SUMMARY Investment Highlights • 95% Occupied with a 7.6 Year Average Lease Term • Institutionally Maintained Class A Office Buildings • LEED Gold Certified • Long-Term Credit Tenant Occupying over 50% of the Property • Robust Submarket for Suburban Office • High Barriers to Entry • Abundant Covered Parking • Unencumbered Offering SEWICKLEY SEWICKLEY ROSS THE OFFERING OSBORNE TOWNSHIP GLENFIELD MOON CORAPOLIS CARMOT-MOON HFF, as exclusive representative for the Owner, EMSWORTH is pleased to present this offering for the sale of AVALON PITTSBURGH INTERNATIONAL BELLEVUE AIRPORT Park Place Corporate Center (the “Property”), a 3.2 MILES BRIGHTON HEIGHTS PERRY NORTH two-building 212,328 SF office portfolio located KENNEDY MILLV TOWNSHIP MARSHALL- in the historically well-performing Parkway West SHADELAND Park Place I & II CENTRAL ROBINSON 10 MILES NORTHSIDE submarket of Pittsburgh, PA. The Property is 95% TOWNSHIP SHERADEN occupied in aggregate, with a strong and diverse IMPERIAL-ENLOW FAIRYWOOD ELLIOTT CRAFTON PITTSBURGH tenant base and positive leasing momentum. This CBD PENNSBURY core offering represents an opportunity to invest VILLAGE OAKWOOD SOU GREENTREE in a stabilized Class A suburban office portfolio in BEECHVIEW BANKSVILLE one of Pittsburgh’s premier submarkets, thereby CARNEGIE OAKDALE CARRIC DORMONT benefitting from near-term cash yields and long- SOUTH HILLS term capital appreciation. STURGEON-NOBLESTOWN Holliday Fenoglio Fowler, L.P. (“HFF”) a Pennsylvania licensed real estate broker. ©2015 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 2 PARK PLACE I & II Investment Highlights 95% Occupied with a 7.6 Year Robust Submarket for Suburban Office Average Lease Term The Property is strategically located along the Parkway The Property is currently 95% leased to a total of six West Corridor, which connects the Pittsburgh CBD to the tenants. 75% of the leases are in-place through 2023, and Pittsburgh International Airport. This connection, along with the weighted average lease term is 7.6 years. The in-place a healthy mix of residential, retail, and office developments tenancy ensures strong cash flows for the Property and limits make the Parkway West Corridor one of the most attractive the risk of short-term tenant rollover. New lease deals in the areas in Pittsburgh to work and live. For these reasons, Parkway West are getting done at $24 - $25 per SF, putting tenants are increasingly setting their sights on the Parkway the Williams lease (Park Place II) well below market rent. This West office market. core acquisition opportunity is unparalleled in the suburban office market of Pittsburgh, as there are very few buildings High Barriers to Entry which match the diversity and quality of the Property’s The Pittsburgh region and especially the Parkway West tenant mix. Corridor have high barriers to entry for commercial real estate development. These barriers result from the density Institutionally Maintained of existing development as well as challenging topography Class A Office Buildings and limited development sites. As a result, new competing The Property was constructed in the mid-1980s and was supply is likely to be severely constrained long-term. completely renovated in 2012 including the addition of two (2) 300-space parking structures. The total renovation Abundant Covered Parking investment was over $12 million. The Property has been Unlike many developments in the Pittsburgh region, the meticulously maintained to institutional quality, offering Property offers an abundance of free covered parking for market leading amenities. Additionally, the Property was tenants. There is a total of 980 spaces, approximately 600 recently awarded LEED Gold status, the second highest of which are within the parking structures, and the parking ranking for sustainable buildings. ratio is a healthy 4.6 spaces/1,000 SF. This is a significant competitive advantage as it is well above the average parking Long-Term Credit Tenant Occupying ratio for the Parkway West submarket, which is between 3 over 50% of the Property and 3.5 spaces/1,000 SF. Williams Field Services Group, LLC occupies 100% (112,481 SF) of Park Place II. The space was built to suit for this Unencumbered Offering tenant, with collaborative and modern floor plans, a complete The Property will be sold free and clear of debt, providing fitness center, and a large cafeteria for employees. Williams investors the opportunity to take advantage of historically- is in-place until 2022 and has two subsequent extension low interest rates and a wide range of financing options to options. Additionally, the lease is guaranteed by the tenant’s best serve their individual needs. parent company, Williams Partners, L.P. (NYSE : WPZ) (credit ratings: Moody’s: Baa2, S&P: BBB). 3 PARK PLACE I & II AREA OVERVIEW Parking Structure (283 spaces) Park Place II Park Place I Parking Structure (286 spaces) PROPERTY OVERVIEW Park Place I Park Place II Total Address: 1000 & 2000 Commerce Drive, Pittsburgh, PA 15275 Rentable Area: 99,847 SF 112,481 SF 212,328 SF Year Built: 1982 1985 n/a Year Renovated: 2012 2012 2012 Stories: 5 5 5 Parking Spaces: 470 510 980 Parking Ratio: 4.7/1,000 RSF 4.5/1,000 RSF 4.6/1,000 RSF Site Area: 4.41 acres 5.20 acres 9.61 acres Zoning: Business Park District (BPK) Occupancy: 88.8% 100.0% 94.7% 4 PARK PLACE I & II Area Overview Over the past three decades, the Pittsburgh region has The Property is located along the Parkway West, approximately undergone a dramatic renaissance and it now stands as ten (10) miles west of the Pittsburgh CBD and less than one of our nation’s largest and most appealing locations to five (5) miles from the Pittsburgh International Airport. To live, do business and own real estate. The region supports be precise, the “Parkway” refers to Interstate 376 which an exceptionally strong market for all types of commercial is the thoroughfare that connects downtown Pittsburgh to real estate. The foundation of the real estate market is its eastern and western suburbs. The strategic connection Pittsburgh’s central location, highly developed transportation between downtown and the airport makes the Parkway system providing excellent connectivity, a diverse and West Corridor one of the most attractive areas in Pittsburgh balanced economy, excellent universities, world renowned to work and live. Furthermore, the Property provides direct health care, resurgence as an energy center, and progressive access to the Parkway, allowing for a convenient commute leadership. from any direction. PITTSBURGH INTERNATIONAL AIRPORT RIDC West Office Park Over 50 Companies Including: Park Place I & II $250M Office Development Site Plaza at North Fayette 5 Contact Information For more information, please contact one of the individuals listed below: Mark Popovich Jim Meisel Jaime Fink Investment & Debt Contact Senior Managing Director Senior Managing Director Senior Managing Director jmeisel@hfflp.com jfink@hfflp.com mpopovich@hfflp.com 202.533.2505 312.528.3683 412.281.8714 Matt Nicholson Jeff Bramson Nick Unkovic Investment Contact Executive Managing Director Real Estate Analyst Associate Director jbramson@hfflp.com nunkovic@hfflp.com mnicholson@hfflp.com 312.528.3687 412.222.2037 202.533.2502 Jeremy Kronman Leasing Contact | CBRE Executive Vice President [email protected] 412.394.9848 Atlanta | Austin | Boston | Charlotte | Chicago | Dallas | Denver | Houston | Indianapolis Los Angeles | Miami | New Jersey | New York City | Orange County | Orlando Philadelphia | Pittsburgh | Portland | San Diego | San Francisco | Tampa | Washington D.C..