PREMIER REAL ESTATE PROJECTS

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1 A spotlight on some of Northeast Ohio s PREMIER REAL ESTATE PROJECTS

2 S2 NOVEMBER 13, 2017 THE MASTER DEVELOPER S STORY JOHNSON CONTROLS The Johnson Controls Hall of Fame Village project is a nearly $800 million, multi-phased, mixed-use development surrounding the Pro Football Hall of Fame. IRG (Industrial Realty Group LLC) has partnered with the Pro Football Hall of Fame for the project and is its master developer. Once completed, it will be the first sports and entertainment smart city. The village features 10 components, including the new Tom Benson Hall of Fame Stadium, a four-star Hall of Fame Hotel and Conference Center, National Football and Youth Sports Complex, Center for Excellence, Center for Performance, Player Care Center, Hall of Fame Experience and Waterpark, Black College Football Hall of Fame and Hall of Fame Way. Investors believe these efforts will catapult the site, built in 1963, into an entertainment destination for sports fans and players alike, which will benefit Canton, Northeast Ohio and the state. The venture is estimated to be the largest tourism investment in Ohio s history. In 2016, Johnson Controls announced one of the richest naming rights deals in sports at the village. The total amount of the agreement ranks in the top 20% of all sports naming rights deals and the largest ever for its market size. In 2016, Forbes named the Tom Benson Hall of Fame Stadium one of its 13 Game-Changing NFL Stadiums. The Johnson Controls Hall of Fame Village has been featured by The New York Times, Forbes, The Wall Street Journal, Sports Illustrated, FOX Business and ESPN. The project in its entirety is particularly complex, featuring multi-phased components that are designed, constructed and managed by many different partners. They all focus on creating an unparalleled experience for visitors. A project of this magnitude will inevitably experience challenges. For example, the recently completed $83 million second phase of Tom Benson Hall HKS Architects conceptual renderings of Johnson Controls Hall of Fame Village (above and opposite page) depict the 10 major components of the project, including Tom Benson Hall of Fame Stadium, a four-star hotel, senior care facility, retail and office space, and a state-of-the-art amusement and waterpark. of Fame Stadium was a challenging component on several fronts. As the historic venue for the nationally televised Hall of Fame Game and Enshrinement, the stadium had a firm completion date with no margin for construction delays. The aggressive, 10-month schedule also required that all technical aspects to operate flawlessly. The team opened Tom Benson Hall of Fame Stadium on time, welcoming 23,000 fans in August to watch the Hall of Fame Game televised by NBC. Days later, the stadium also hosted the annual Enshrinement Ceremony, televised nationally on ESPN and NFL Network, and the Concert for Legends, featuring Toby Keith and Kid Rock. IRG is the project s master developer and owner. The company is a nationwide real estate development and investment firm. IRG, through its affiliated partnerships and limited liability companies, operates a portfolio containing more than 150 properties in 28 states with over 100 million square feet of space. IRG is nationally recognized for solving some of America s most difficult real estate challenges. The Pro Football Hall of Fame, located in Canton, the birthplace of the National Football League, is a 501(c) (3) nonprofit institution with the mission to honor the heroes of the game, preserve its history, promote its values and celebrate excellence everywhere. Other partners include Johnson Controls (naming rights Johnson Controls Hall of Fame Village IRG Project Master Developer Various locations throughout the U.S. Stuart Lichter or Tracy Green info@jcihofv.com sponsor), Welty (construction management), HKS (architect), TSAV (technology consulting and integration) and many more. As master developer and property owner, IRG built a modern, world headquarters building for Goodyear Tire & Rubber Co. in 2013 and redeveloped the remaining 1.4 million-square-foot campus into a live, work, play environment known as The East End. Components completed at the Akron development include: Hilton Garden Inn, Goodyear Theater, Residences at The East End apartments and a gymnasium. Current renovations are underway to create additional highly desirable office space.

3 NOVEMBER 13, 2017 S3 THE LAW FIRM S STORY HALL OF FAME VILLAGE The Johnson Controls Hall of Fame Village in Canton represents one of this region s larger, more highly visible real estate developments. Valued at nearly $800 million, it has come together with the support of numerous parties under the watchful eye of master developer Industrial Realty Group LLC, which has formed a joint venture with the Pro Football Hall of Fame. This complex project is being completed in phases, with a majority of the stadium renovations being completed in 2017 and the remaining portions of the village being completed over the next three to five years. Johnson Controls Hall of Fame Village Walter Haverfield Cleveland Jack Waldeck and Nick Catanzarite jwaldeck@walterhav.com ncatanzarite@walterhav.com The Johnson Controls Hall of Fame Village has been described as a lifechanger for Canton, as it s the largest development to take place in the city s history. With nearly 300,000 visitors annually, the Pro Football Hall of Fame ranks as one of the more highly visited tourist attractions in this region. Its redevelopment will help to keep Northeast Ohio in the national spotlight. There are many factors that make the Johnson Controls Hall of Fame Village one of the most complex real estate developments in the region in recent history. Those considerations include the large number of parties involved, the structuring of the public-private partnership, the involvement of two school districts, the City of Canton and the Stark County Port Authority, the procurement of 75-plus parcels of land and the sheer size of the project. However, the promise that the project holds for the region in helping to elevate its national stature overshadows any challenges. Walter Haverfield started providing the behind-the-scenes legal work long before the first shovel went into the ground. Due to the complex nature of the financing and tax structure, the project required the collective bench strength of the firm s real estate, public law, structured finance and tax practice groups to help its client, IRG, move the project forward, despite numerous obstacles. At times, Walter Haverfield had a team of 10-plus lawyers working on this massive project. When the project is complete, the Johnson Controls Hall of Fame Village will not only be a major destination for sporting events and entertainment, but will also include significant retail, hospitality and office space, residential housing, and facilities dedicated to research and health care. The Village will also seek to implement cutting edge smart city technology. Walter Haverfield is involved in a number of high-visibility real estate development projects throughout Northeast Ohio. One of the more recent projects includes Pinecrest, a $230 million upscale mixed-use development in Orange Village. The project is the result of a joint venture between Walter Haverfield client Fairmount Properties and DiGeronimo Cos., as well as other companies. Projected for completion in spring 2018, Pinecrest will include nearly 400,000 square feet of retail space, 150,000 square feet of office space, 87 luxury apartments and a boutique AC Marriott hotel. Major tenants already announced include Whole Foods, REI, Silverspot Cinema, Pinstripes, West Elm, Red the Steakhouse and Shake Shack. For this project Walter Haverfield attorneys are serving as lead counsel for all phases of the project, including land aggregation, financing, leasing and development. Proud to be part of the Hall of Fame Village and Pinecrest Success Stories We ve provided the behind-the-scenes legal work to make some of this region s largest deals a reality. The Real Estate Attorneys of Cleveland Team attorneys handling these projects include: Josh Hurtuk, Megan Zaidan, Kevin Murphy, Tyler Bobes, Jack Waldeck, Nick Catanzarite, Irene MacDougall, Nate Felker

4 S4 NOVEMBER 13, 2017 HALLE RENOVATION WHAT S THE STORY? K&D Management LLC is in the midst of a bold revitalization of the iconic Halle Building in Playhouse Square. Built in 1908 as an upscale department store, the Halle Building had been reconfigured into 392,000 square feet of office space when K&D in 2014 acquired it from Forest City Enterprises Inc. for $15 million. The developer s initial intent was to renovate the bulk of the 11-story property into roomy one-, two- and three-bedroom apartment homes to cater to an untapped market of empty-nesters and families looking for larger rental units in downtown Cleveland. After several existing commercial tenants expressed a desire to remain, K&D pursued a more evenly split mixed-use development. The lower level comprises five floors of office space that are already 100% leased, while 123 apartments will make up the upper six floors. The Halle Building was about 50% occupied with commercial office tenants when K&D bought it. Very little had been done, inside or out, to preserve its heritage or maximize its potential, especially given the building s inviting downtown location. K&D seized on the opportunity to reimagine the Halle as a vessel through which to deliver a much-needed product larger downtown apartments while also giving the structure an interior and exterior facelift. The one-bedroom apartments will average 1,200 square feet, compared to the 750-square-foot average among all downtown Cleveland apartments. Two- and three-bedroom apartments range from 1,600 to 3,000 square feet. As with any major development, financing was one of the biggest challenges. K&D did a condominium Halle Building Renovation K&D Management LLC Willoughby Doug Price corporate@kandd.com split of the property that allowed the company to obtain separate commercial and residential loans for the office segment on the first six floors and the residential segment on floors six through 11. That multiplied the paperwork, complexity and fees. Dividing the building, however, provided an opportunity for K&D to utilize Federal New Markets Tax Credit loans for the office portion of the project because of its job-creation aspect. Meanwhile, it made use of state and federal historic tax credits on both portions. Another challenge was managing the building s existing tenants, which required K&D to obtain agreements from those companies to move them from the upper floors and rebuild their space out on the lower levels. The developer offered new, updated offices in exchange for long-term lease agreements. Huntington National Bank is the lead lender on the project. U.S. Bancorp Community Development Corp. of St. Louis bought the federal historic tax credit. Berardi+Partners in Columbus provided architectural and design services. Mentor-based Cleveland Construction Inc. is K&D s contractor. Along with existing tenants, The NRP Group, an apartment developer and owner, signed a leasing agreement to move its corporate headquarters K&D Management LLC is in the midst of an exciting transformation of the historic Halle Building in Playhouse Square. The mixed-use development satisfies residential demand for roomier downtown Cleveland apartments, while both retaining and attracting new commercial tenants to the lower floors. from Garfield Heights into the newly renovated fourth floor of the Halle Building. Encompassing the entire floor, the 42,000-square-foot office will bring 150 new jobs into the city of Cleveland. Once the finishing touches are put on the Halle development, K&D will turn its attention to the Terminal Tower project. In June 2018, the company expects to begin converting the lower 14 floors of the 52-story office tower into 300 residences. K&D is pursuing state historic-preservation tax credits for the $100 million project. The upper floors will remain offices. THE HALLE 1228 Euclid Ave Cleveland, OH THE KEITH 1621 Euclid Ave. Cleveland, OH THE LEADER 526 Superior Ave. Cleveland, OH POST OFFICE PLAZA 1500 W. 3rd St. Cleveland, OH RESERVE SQUARE 1701 E. 12th St. Cleveland, OH TERMINAL TOWER 50 Public Square Cleveland, OH FOR COMMERCIAL REAL ESTATE & LEASING INFORMATION, CONTACT: DYANN DAVISON dyann@davisonandcompany.com

5 NOVEMBER 13, 2017 S5 AC HOTEL BY MARRIOTT AT PINECREST S HVAC SYSTEM WHAT S THE STORY? The highly anticipated 58-acre Pinecrest entertainment-retail-residential development is taking shape just off I-271 in Orange Village on the East Side. Daikin Heating Ventilating & Air Conditioning (HVAC) equipment is used extensively throughout the complex to meet the comfort needs of the upscale tenants and their customers. The latest example of a Daikin project at Pinecrest is DelMonte Hotel Group s new 145-room AC Hotel by Marriott. Westland Heating & Air Conditioning and, Daikin s new representative in Northeast Ohio, are providing the equipment for the project. The new Pinecrest project boasts the first AC Hotels by Marriott property in the Cleveland area. The brand, characterized by smart modern space design and a focus on customer experience, chose Daikin HVAC equipment to ensure guest comfort. Daikin is known for global innovation and advances in energy-efficiency. The prominence of Daikin throughout the modern, sub-urban lifestyle Pinecrest development signifies a broader shift in the local HVAC market., the area s leading HVAC systems provider since 1962, made waves in the Cleveland construction community earlier this year by choosing to exclusively represent Daikin moving forward. The challenge for any hotel is to provide maximum guest comfort while keeping control of energy use and costs. The AC Hotel system features the innovative, awardwinning Daikin Rebel Packaged Commercial Rooftop System, which provides a 43% energy savings compared to ASHRAE s 90.1 design standard for efficiency. ASHRAE is a global society that promotes sustainable building, and its 90.1 standard is a benchmark for commercial building energy codes The 145-room AC Hotel by Marriott at Pinecrest in Orange features state-of-the art Daikin HVAC equipment from, installed by Westland Heating & Air Conditioning. in the U.S. At the heart of the hotel s comfort system is a Daikin Variable Refrigerant Volume (VRV) system, which offers improved guest comfort control, outstanding energy efficiency and quiet indoor units for a good night s rest. Like most construction projects, there is a long list of local players involved in this Fairmount Properties development that features, in addition to the DelMonte Hotel Group property, 400,000 square feet of retail space, 150,000 square feet of Class A office space and 87 apartments. The mechanical engineer on the AC Hotel by Marriott project is WHS Engineering. Westlake-based Westland Heating & Air Conditioning is the mechanical contractor, playing a critical role in completing all of the HVAC work., with its team of more than 200 local associates, is Daikin s exclusive factory representative in Northeast Ohio, providing system design assistance and support throughout the project., a fixture in Northeast Ohio s commercial HVAC market since 1962, began representing Daikin in May In making the change, cited Daikin s position as the leading HVAC manufacturer in the world, its long-term commitment to independent, locally managed distribution, and Daikin s focus on product development and award-winning innovation. Minneapolis-based Daikin Applied Americas operates manufacturing facilities throughout the United States. Daikin recently opened a new AC Hotel by Marriott at Pinecrest Solon Dan Babic dbabic@whgardiner.com 4.2 million-square-foot plant in Texas, which is the largest air-conditioning plant in the world and the second-largest manufacturing facility of any kind in the U.S. With the support of the engineering and mechanical contracting community, has quickly built momentum with Daikin in Northeast Ohio. In addition to Pinecrest projects, Daikin equipment is being installed in many prominent facilities, including Sherwin Williams, University Hospitals, Cuyahoga Community College, NASA, 5th Street Arcades, Third Federal Savings & Loan, a number of local school districts, higher education institutions, health care facilities, government buildings and office properties across Northeast Ohio. Reaching new heights for HVAC & building intelligence in Northern Ohio. Since 1962, our team of 200+ has been solving building challenges, delivering the results and a competitive edge that building operators and contractors in Northern Ohio need. As an independent local representative of the largest HVAC company in the world, Daikin, we create the freedom to reach new heights of success and make HVAC work smarter for you. Start solving your building challenges: CLEVELAND AKRON-CANTON TOLEDO