177,418 SF OFFICE INVESTMENT OPPORTUNITY LOCATED IN WEST LOS ANGELES, CA THE OPPORTUNITY Holliday Fenoglio Fowler, L.P. (“HFF”), as exclusive advisor, is pleased to offer qualified investors an opportunity to purchase the leasehold interest in Atria West (the “Property”), an institutional quality office project centrally located in West Los Angeles, California. Atria West is a value-add opportunity consisting of two 3-story class A office buildings (“West Building” and “East Building”) and four free- standing, 2-story historic buildings (“The Grove” or “Cottages”) totaling 177,418 square feet. Situated on Santa Monica Boulevard, one of the West Side’s key artery roads, the Property encompasses 2.38 acres with nearly 900 feet of high visibility street frontage. The Property features superb landscaping, stunning three-story glass atriums providing maximum natural light, floor-to-ceiling windows and exquisite limestone interiors and facades. Two subterranean parking garages, located beneath the office buildings, offer tenants a 3.02 parking ratio per 1,000 square feet. 2 ATRIA WEST INVESTMENT HIGHLIGHTS ATRIA WEST OVERVIEW ADDRESS RARE WEST LOS ANGELES VALUE ADD OPPORTUNITY EAST OFFICE BUILDING 10585 Santa Monica Blvd WEST OFFICE BUILDING 10635 Santa Monica Blvd Currently 69.6% leased, the Property represents an incredible value-add opportunity in THE GROVE (COTTAGES) 10669-10685 Santa Monica Blvd a market with a vacancy rate of 8.2%. Additionally, with 50% of the current occupancy Los Angeles, CA 9025 expiring within the first two years investors will be afforded the opportunity to capitalize on the mark-to-market opportunity with rents in-place 30% below current market rents. RENTABLE SQUARE FEET 177,418 WEST OFFICE BUILDING 103,711 SF EAST OFFICE BUILDING 66,328 SF 46.7% $6.00 50.0% THE GROVE (COTTAGES) 7,379 SF $5.35 $5.35 $5.51 45.0% F $5.15 S $5.13 PERCENTAGE LEASED 69.6% $5.00 $4.98 $5.25 L ) 40.0% A G $4.35 $4.42 T S 35.0% O F $4.19 NUMBER OF BUILDINGS T 2 (Office) / 4 (Cottages) $4.11 $4.00 . F S 30.0% O O $3.34 $3.48 $3.50 ) AVG. FLOOR PLATES M $3.00 25.0% % / ( F 28,340 SF T S 20.0% (OFFICE) P N ( $2.00 E T 15.0% C R N SLAB-TO-SLAB HEIGHTS 13 Feet (Average) E E 9.0% 10.0% R $1.00 5.2% P 3.3% 1.6% 2.6% 5.0% YEAR BUILT 1992 (Office) / 1934 (Cottages) $0.00 0.0% STORIES 3 (Office) / 2 (Cottages) SITE AREA 2.38 Acres 536 Stalls % RSF Expiring (BOMA) Gross Rent Upon Expiration Market Rent PARKING STALLS (2 Subterranean Structures) PARKING RATIO 3.02 / 1,000 SF HIGHLY FAVORABLE 69 YEAR GROUND LEASE WITH 9 CAP BUYOUT OPTION GROUND LEASE OVERVIEW The Leasehold interest at Atria West is encumbered by three separate ground leases with 69 years remaining. Owned by the Pardee Family, the lease provides an option for an investor to EXPIRATION DATE November 30, 2085 acquire the land components through a purchase option at a 9% capitalization rate based on TERM REMAINING 69 Years the then ground rent payment in 2039. The majority of the ground rent payments are based off PURCHASE OPTION PERIOD Dec. 1, 2039 - Nov. 30, 2044 of CPI with no mark to market adjustments. PURCHASE PRICE 9% Cap Rate on Annual Rent INVESTMENT SUMMARY 3 EXCEPTIONAL CENTURY CITY OFFICE FUNDAMENTALS The submarket is currently 92% occupied with no new construction, the Century City market is poised for very strong rent growth. Atria West is exceptionally well positioned to benefit from these market dynamics. ROBUST LEASING DEMAND AND STRONG HISTORICAL OCCUPANCY As quality space in Century City continues to evaporate, the Property’s desirable contiguous availabilities will become increasingly attractive. The Century City submarket has realized over 400k square feet of positive net absorption since 2010, decreasing the vacancy rate from a cycle high of 13.9% to 8.2% YTD. STRONG HISTORICAL OCCUPANCY FROM “TAMI” TENANTS ○ The Property has benefited from strong historical occupancy from TAMI (technology, advertising, media and information) tenants as evidenced by its impressive historical tenant roster of Sony Music, BET, and Warner Chapell Music. Additionally, the Property continues to attract new economy tenants including high profile marketing and product firms. ○ The asset has maintained an average occupancy of 94.16% over the past 10 years. The recent drop in occupancy is due to three corporate tenants consolidating divisions in three separate submarkets in Los Angeles. SIGNIFICANT DISCOUNT TO REPLACEMENT COST The Property represents an opportunity for an investor to purchase a high profile asset on the West Side of Los Angeles at a significant discount to replacement cost (including factoring in a cost for the eventual purchase of the land). EXCELLENT 13 FT. SLAB TO SLAB HEIGHTS PROVIDE FOR FURTHER CREATIVE CONVERSION Although a fair amount of the current tenant build out has an open ceiling configuration, the Office 13 foot clear height throughout will provide for additional creative repositioning potential for the next investor. 4 ATRIA WEST CENTURY CITY IS RIDING A “ TEN THOUSAND (Completion: Early 2017) DOWNTOWN $3.5 BILLION DOLLAR DEVELOPMENT ○ 40-Story Luxury Residential Tower LOS ANGELES “ ○ +$300 Million Investment WAVE TOWARDS URBANIZATION ○ 283 Total Units ○ 75k SF of Amenity Space ○ +60 On-Site House Staff MIRACLE MILE HOLLYWOOD BEVERLY HILLS CENTURY PLAZA HOTEL & RESIDENCES RANCHO PARK CENTURY CITY (Completion: Early 2018) ○ Complete Renovation of Hotel GOLF COURSE ○ Addition of Two 46-Story Luxury Residential Towers ○ +$2.5 Billion Investment ○ 290 Residential Units ○ 294 Key Hotel ○ +100k SF of Retail Space DISTANCE TO WESTFIELD MALL (0.5 MILES) Walking - 10 min SANTA MONICA BLVD. Driving - 5 min Transit - 5 min WESTFIELD CENTURY CITY (RENOVATION) (Completion: 2017) ○ +1.2 Million SF ○ +$800 Million Investment ○ Additional 422k SF of New Space ○ +220 Shops and Dining Options ○ 10,000 Jobs Created ○ +$1.4B Annual Economic Output (Est.) INVESTMENT SUMMARY 5 IRREPLACEABLE LOCATION IN THE PREMIER CENTURY CITY SUBMARKET ○ Century City, Los Angeles’ largest cluster of high-rise trophy assets, continues to experience robust fundamentals as tenant demand from the FIRE (finance, insurance, and real estate), entertainment, and legal sectors are further supplemented with rising technology sector interest. Atria West is well-positioned to capitalize on this increase in tenant demand. ○ Situated on Santa Monica Boulevard, one of West Los Angeles main arterial roads, between the 405 Freeway and Century City provides unmatched access to a highly educated labor force and executive housing options (i.e. Beverly Hills, Brentwood, Santa Monica, Westwood, Chevoit Hills, Beverlywood and Castle Heights). Furthermore, the available building-top signage offers a lucrative marketing advantage for tenants seeking a high visibility location. 6 ATRIA WEST ABILITY TO ACCOMMODATE A WIDE VARIETY OF TENANT REQUIREMENTS Atria West was efficiently designed and offers the ability to accommodate a wide variety of tenant requirements due to its flexible floor plates. CONVENIENT SUBTERRANEAN PARKING Each building features an executive quality subterranean parking facility at a ratio of 3.02 per 1,000 providing very efficient access for tenants. MAJOR TENANT SUMMARY Tenant Lease Expiration Square Feet % of NRA WARNER/ CHAPPELL MUSIC Sept'17 50,340 28.4% ANASTASIA Jun'22 15,661 8.8% PABST BREWING COMPANY Jun'17 15,243 8.6% CUNNINGHAM ESCOTT Apr’23 9,160 5.2% INVESTMENT SUMMARY 7 AREA DEMOGRAPHICS DESCRIPTION 1.0 MILE 3.0 MILE 5.0 MILE 2016 EST. POPULATION 44,404 292,279 678,064 2016 EST. MEDIAN AGE (YEARS) 41 37 39 EST. POPULATION GROWTH (2016 - 2021) 4.8% 4.0% 4.0% EDUCATION (BACH’S DEGREE OR HIGHER) 69.9% 63.1% 58.5% 2016 EST. AVG HOUSEHOLD INCOME $123,975 $110,290 $109,629 % OF EXECUTIVE WORK FORCE 90.4% 82.9% 79.7% AMENITY RICH ENVIRONMENT WITH ABILITY TO ENHANCE CONNECTIVITY ○ Atria West’s central location, within close proximity to numerous retail amenities including the newly renovated Westfield Century City Mall and Beverly Hills’ Rodeo Drive, offers tenants an array of world class dining, retail and entertainment options. ○ Additionally, Café Chez Marie, the highly Zagat rated on-site restaurant, offers tenant’s fresh, healthy, French inspired cuisine. ○ The Property has the potential to enhance connectivity to the surrounding venues by offering an electric golf cart or shuttle services as a tenant amenity. UNPRECEDENTED CENTURY CITY CORRIDOR DEVELOPMENT WAVE ○ Century City is undergoing a vibrant urbanization renaissance, with over $3.5 billion in development underway. With no new office product pegged for delivery this cycle, Atria West is well positioned to capitalize on the influx of tenant demand. 8 ATRIA WEST UNIQUE HISTORICAL CREATIVE COTTAGE BUILDINGS - THE GROVE Originally built in 1935, the Property features four historically protected “cottages.” The unique free-standing 2-story buildings offer hardwood floors and high ceilings catering to creative and production uses which command premium rents. INVESTMENT SUMMARY 9 ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIANAPOLIS LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY (CA) ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND (OR) PRESENTED BY SAN DIEGO RYAN GALLAGHER ANDREW HARPER MICHAEL MATCHETT SAN FRANCISCO Senior Managing Director Director Analyst TAMPA [email protected] [email protected] [email protected] WASHINGTON, D.C. T. 949.798.4100 T. 310.407.2139 T. 310.407.2132 CA License # 01269918 CA License # 01319640 CA License # 01960206 ©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 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 FINANCING LOCAL LEASING TEAM sales, equity placement, advisory services, loan sales and commercial loan servicing.