EXECUTIVE SUMMARY INFILL TROPHY ASSET INDIANAPOLIS CBD

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1 INFILL TROPHY ASSET INDIANAPOLIS CBD Holliday Fenoglio Fowler, L.P. ( HFF ) acting by and through Holliday GP Corp, an Indiana licensed real estate broker

2 INVESTMENT OVERVIEW 2 96 WALK SCORE HFF is property is uniquely positioned to afford residents a true Live / pleased to present Pulliam Square, a brand-new, 145-unit luxury mid-rise Multi-Housing community in downtown Indianapolis. The Work / Play environment as it is within walking distance to the CBD and the Mass Ave Cultural District; Indianapolis most dynamic entertainment corridor; home to some of the most popular restaurants, bars, entertainment venues, and economic activity in all of Indianapolis. One block from Pulliam Square is access to the 8-mile Cultural Trail, a world class urban bike and pedestrian path, allowing residents seamless connection to eclectic neighborhoods, cultural districts, and entertainment amenities across the city. To the east of Pulliam Square is the Historic Lockerbie Neighborhood which boasts average list prices for condominiums and townhomes of $421,000 and single family homes for $766,000. Pulliam Square was completed in September of 2015 and is currently 90% leased; the property has averaged nearly 12 leases per month through lease up. Residents enjoy up-scale luxury living in a fully-amenitized community set in an urban, walkable setting. DOWNTOWN INDIANAPOLIS MOST» WALKABLE MULTI-HOUSING DEVELOPMENT 95 BIKE SCORE AVERAGE HOUSEHOLD INCOME VS. IN-PLACE RENTS $7,992 MEDIAN MONTHLY UNIT INCOME 20.4% RENT-TO-INCOME RATIO $1,633 AVERAGE RENTS PROPERTY DESCRIPTION ADDRESS: 152 East New York Street, Indianapolis, IN YEAR BUILT: 2015 CURRENT OCCUPANCY: 72% as of 5/17/2016 (Property is in Lease-Up) CURRENT LEASED: 90% as of 5/17/2016 TOTAL UNITS: 145 AVERAGE UNIT SIZE: 976 square feet COMMERCIAL SPACE: 13,656 square feet (3 tenant bays 82% Leased LOI for 100% Leasing) NUMBER OF STORIES: Five LAND AREA: 1.26 acres DENSITY: units per acre PARKING: 155 parking spaces in adjacent parking garage (1.1 spaces / unit)

3 CULTURAL TRAIL EAGLE UNION 50 MASS AVE» INDY AVIBRANT DISTRICT OF SHOPS AND FINE RESTAURANTS PACERS BIKESHARE RATHSKELLER INVESTMENT HIGHLIGHTS INSTITUTIONAL, CLASS A ASSET IN A CORE, INFILL LOCATION Completed in 2015, Pulliam Square is a trophy Class A community and the first to be built downtown that provides less than one block access to both the CBD and Mass Ave. This best-in-class property presents the rare opportunity to acquire a distinct asset with a desirable infill location, abundant community amenities, leased retail, and some of the finest unit interiors including granite countertops, stainless steel appliances, espresso and white cabinets, and wood-style flooring. Residents have easy access to the finest shopping, dining, and entertainment venues in the entire city. Due to these factors Pulliam Square has achieved a Walk Score of STEPS FROM MASS AVE In addition to the two on-site restaurants, The Tap and Wild Eggs, Pulliam Square residents can walk out their front door and have direct access to Mass Ave. The one mile long strip is home to some of the most popular bars, restaurants, entertainment venues, and retail in Indianapolis. Included among them are the famous 1,800 seat concert hall, Murat Center and the historic Rathskeller German beer hall and massive outdoor beer garden. Intersecting with Mass Ave are parts of the 8-mile long Cultural Trail, an urban bike and pedestrian path that connects all points of downtown. At various spots along the cultural trail are stations for Indianapolis Pacers Bikeshare and various parking spots for the BlueIndy car sharing service. THE SALESFORCE EFFECT Among its peer cities in the Midwest, Indianapolis leads in tech industry employment as a percentage of total employment which currently stands at 5.2%...and it will be growing. Salesforce just announced it will grow its presence in Indianapolis, just one and a half blocks from Pulliam Square, by taking 250,000 square feet and hiring 800 new employees at what is currently known as Chase Tower. The tower will be renamed Salesforce Tower, creating a Midwest headquarters. Salesforce Tower Indianapolis joins the ranks of other regional headquarters including Salesforce Tower NY and Salesforce Tower London, and the company s new global headquarters, Salesforce Tower San Francisco.

4 40 NEARLY MASS AVE AREA AMENITIES MAP RESTAURANTS & BARS MASS AVE 4 $200 MILLION IN RECENT DEVELOPMENT 50 ST J OVER OFFICE LOCATIONS & RETAIL SHOPS LEGEND

5 CYCLE BAR THE TAP BALL & BISCUIT WILD EGGS BAKERSFIELD MARSH GROCERY THE EAGLE STARBUCKS BRU BURGER THREE DOGS BAKERY RATHSKELLER GLOBAL GIFTS YMCA OUTLIERS BREWING CO. 5 PIZZOLOGY UNION 50 JOSEPH S BREWERY CHATHAM TAP MESH RESTAURANT FORTYFIVE

6 6 INVESTMENT HIGHLIGHTS A DINING DESTINATION With its Walk Score of 96, Pulliam Square is Indianapolis most walkable Multi-Housing community and places its residents steps from some of the best dining options in all of Indianapolis. In the past few years there have been numerous new restaurants brought into the market and home grown by local chefs. At Pulliam Square, The Tap has opened to crowds for both evening dining as well as a robust lunch business; Wild Eggs, a new-to-market breakfast concept from Louisville, opened in early May Across the street from the property are Cincinnati transplants Eagle and Bakersfield. Other notable restaurants and bars within two blocks of Pulliam Square include: Ball & Biscuit (high-end cocktail lounge), Union 50 (restaurant & cocktail lounge), Pizzology (high-end pizzeria), and Libertine (craft cocktail PULLIAM SQUARE WITHIN 3 BLOCKS OF PULLIAM SQUARE DOWNTOWN S MOST DESIRABLE DEVELOPMENT Pulliam Square has been very well received by the residents moving from the suburbs to downtown as well as relocating to Indianapolis. The Property has had a strong leaseup, averaging 20 leases per month, even during the typically slow leasing time periods of December, January, and February, and is currently 90% leased. In addition to the strong lease-up of the residential units, Pulliam Square opened its doors with leases signed for 2 of its 3 retail spaces with an LOI signed on the 3rd. The LOI is signed with Cycle Bar - Premium Indoor Cycling. This is the best lease-up of retail at any Indianapolis Multi-Housing development. UNIT MIX UNITS UNIT DESCRIPTION % OF TOTAL SQUARE FEET MARKET RENT RENT PER SF 13 Studio 9% 654 $1,241 $ One Bedroom 60% 900 $1,471 $ Two Bedroom 31% 1,215 $2,088 $ % 976 $1,642 $1.68

7 INVESTMENT HIGHLIGHTS IDEAL LOCATION TO DOWNTOWN S TOP EMPLOYERS The map below shows how excellent the location of Pulliam Square is vis-à-vis the economic engine of Indianapolis. Angie s List, Anthem, Eli Lilly, Salesforce, IU Health, One America, Simon, and WellPoint locations on the map all represent Corporate Headquarters locations, which total nearly 24,000 employees. Many of these companies employ the millennial generation that are looking for a Live / Work / Play environment and will look to take advantage of all Pulliam Square and the neighborhood has to offer. 7

8 January 2017: Chase Tower will be rena Salesforce to take 250, employees. CHASE TOWER JW MARR LUCAS OIL STADIUM BANKERS LIFE FIELDHOUSE BMO PLAZA REGIO NS TOWE R MARKET TOWER BIRCH BAYH FEDERAL BUILDING & US COURT HOUSE FUTURE SITE OF 21C MUSEUM HOTEL MASS CONDOS (listed from $600,000 to $2M) New Dela St York war e St Al ab MARIETTA ON MASS am as t Mass A ve (New Class A+ Office Space) rm Ve o S nt t

9 amed Salesforce Tower; 00 square feet and hire W RIOTT ONE AMERICA IUPUI 300 N. MERIDIAN UNIVERSITY PARK Meridi Pennsy r Ve m t on St lvania St an St 9

10 COMMUNITY AMENITIES INTERIOR AMENITIES DESIGNER KITCHENS SPA INSPIRED BATHS Resident Business Center with Coffee Lounge 24-Hour Fitness Center Bike Storage Elevated Courtyard w/ Skyline Views Boccie Ball Court Outdoor BBQ Area w/grills Tenant Access to Adjacent Covered Parking On-Site Retail Featuring Bars & Restaurants Elevator Access Community Dog Park Scenic Views of Downtown Indianapolis or Mass Ave Wood-Style Flooring Contemporary Lighting Package Wall Outlets w/usb Charging Spacious Walk-In Closets Faux Wood Blinds Washer and Dryer Included w/unit Private Patio/Balconies* Floor to Ceiling Windows* Townhome, Studio, One, and Two Bedroom Units Available Stainless Steel Appliances Granite Countertops Contrasting Espresso Under Counter & White Wall-Mounted Cabinets Stainless Steel Undermount Sinks Tile Backsplash Ceramic Top Ovens Kitchen Islands Granite Countertops Spacious Soaking Tub Linen Closet* Polished Chrome Hardware * IN SELECT UNITS Walkability to CBD & Mass Ave 10 ECONOMIC OVERVIEW Indianapolis employment and economic growth is being fueled by its AAA Standard & Poor s credit rating and job gains in high-wage industries such as life sciences and technology. The growth of these high-wage positions in Indianapolis is out pacing the national average. Among its peer cities in the Midwest, Indianapolis leads in life sciences and technology employment as a percentage of total employment. Indianapolis tech-sector employment currently stands at 5.2% with its nearest peer city, Louisville, KY, at 4.7%. The success of local technology company start-ups, and the reinvestment of the resulting wealth created through monetization of those companies, has driven statewide venture capital funding to a multi-year high. APARTMENT MARKET OVERVIEW Pulliam Square is situated in the 2,208-unit Central submarket, one of the highest regarded submarkets in Indianapolis. As of Q1 2016, the submarket posted rents of $1,213 per month or $1.50 per square foot, the highest rents of the 12 Indianapolis submarkets. The rent comparables average rents of $1,472 per month or $1.82 per square foot and occupancy of 93%. The Central submarket has a four-year average occupancy of 96%. Over the previous year, 453 total units were absorbed by the submarket, the second highest absorption in Indianapolis. This trend is expected to continue over the next year as Axiometrics projects over 500 units will be absorbed.

11 ADDITIONAL INFORMATION FINANCING Free and clear - available on an All Cash basis. Please contact Dave Keller (contact information below for debt quotes/assistance). TOUR DATES Please contact HFF to setup a tour of Pulliam Square. The Owner and HFF respectively request that interested parties refrain from contacting any on-site personnel or residents. Tours must be scheduled in advance by contacting Ken Martin as noted below. INVESTMENT CONTACTS KEN MARTIN DIRECTOR kmartin@hfflp.com (317) WICK KIRBY ASSOCIATE DIRECTOR wkirby@hfflp.com (312) SEAN FOGARTY MANAGING DIRECTOR sfogarty@hfflp.com (312) DEBT CONTACT DAVE KELLER SENIOR MANAGING DIRECTOR dbkeller@hfflp.com (317) Lic # PB HFF INDIANAPOLIS 135 N. Pennsylvania Street Suite 1650 Indianapolis, IN T: (317) F: (317) HFF CHICAGO 181 W. Madison Street Suite 3900 Chicago, IL T: (312) F: (312) HFF and HFF Securities L.P. (HFFS) 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 sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference 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 purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

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