132,263 SF INSTITUTIONALLY OWNED AND MAINTAINED OFFICE BUILDING IN PHOENIX, ARIZONA

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1 132,263 SF INSTITUTIONALLY OWNED AND MAINTAINED OFFICE BUILDING IN PHOENIX, ARIZONA Holliday Fenoglio Fowler, L.P. ( HFF ), a licensed Arizona real estate broker.

2 INVESTMENT OPPORTUNITY Holliday Fenoglio Fowler, L.P. ( HFF ), as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in Red Mountain Corporate Center (the Property ), a 132,263 SF institutionally owned and maintained office building located in Phoenix, AZ. The Property is situated between State Route 143 and Loop 202, and is directly adjacent to the soonto-be completed 50th Street Light Rail stop providing immediate access to Downtown Phoenix, Downtown Tempe and Phoenix Sky Harbor International Airport. ON-SITE QSR S UNIQUE VALUE-ADD OFFICE ASSET Additional upside through the ability to renovate interior lobbies as well as the on-site retail Red Mountain Corporate Center is 99% leased and features a diverse, creditworthy tenant roster with a mark-to-market leasing opportunity, providing investors stable cash flows coupled with value enhancement potential. PROPERTY OVERVIEW 4801 E Washington Street, Phoenix, AZ SITE AREA 9.7 Acres YEAR BUILT 1999 TOTAL RENTABLE AREA 132,263 SF OFFICE 126,093 SF RETAIL 6,170 SF OCCUPANCY 99% FLOORS 2 AVERAGE FLOORPLATE 63,047 SF PARKING 775 Spaces, 6.0 : 1,000 SF SIGNIFICANT DISCOUNT TO REPLACEMENT COST 2

3 EXECUTIVE SUMMARY NEW 50TH STREET LIGHT RAIL STOP EXCEPTIONAL LOCATION AT THE ENTRANCE OF NORTH TEMPE Located in the immediate path of growth, the Property is located less than 3 miles from Arizona State University ABUNDANCE OF PARKING AT 6.0 : 1,000 SF 3

4 CARRARO HEIGHTS 240-Unit, Class-A Luxury Apartment Community Est. Completion: Spring 2019 LOCATED IN A QUALIFIED OPPORTUNITY ZONE TH STREET LIGHT RAIL STOP Est. Completion: Summer 2019 TRANSIT-ORIENTED LOCATION SPURRING NEW DEVELOPMENT Scheduled for completion in Spring 2019, Encore Enterprises, based out of Dallas, TX, is developing a 240-unit, Class-A luxury apartment community within walking distance of Red Mountain Corporate Center 45,000 DAILY RIDERS 16MM RIDERS ANNUALLY 16% INCREASE IN RIDERSHIP SINCE 2013 ACCESS TO LIGHT RAIL INCREASING OFFICE DEMAND Located within a 5-minute walk of a Light Rail stop, Class-A and -B office in North Tempe, Papago Park and 44th Street markets have seen positive growth as the Light Rail continues to drive office demand 3.9MM SQUARE FEET 93% OCCUPANCY $34.50 PSF/YR AVERAGE ASKING RATE 4

5 EXECUTIVE SUMMARY STRONG IN-PLACE CASH FLOW WITH BELOW MARKET RENTS Red Mountain Corporate Center is 99% leased to a diverse mix of tenants including e-commerce, healthcare, finance and education. INVESTMENT GRADE ANCHOR TENANT 45% OF RBA The Property provides investors strong in-place cash flow with investment grade anchor tenant, Magellan Health, recently expanding from 41,000 SF to 59,000 SF. In addition, there s near term upside potential with 25% of the total office square footage expiring in the first 3 years and in-place rents approximately 22% below market. $35.00 IN-PLACE VS. MARKET RENTAL RATES 100.0% $30.00 IN-PLACE RENT 22% BELOW MARKET $28.39 $30.12 $ % Rent - PSF / Year $25.00 $20.00 $23.25 $ % $ % % of GLA Expiring $ % $10.00 Footnote: Office tenants only Percent of GLA Expiring In-Place Rent Market Rent 0.0% 5

6 RAPID CORPORATE EXPANSION Metro Phoenix has experienced a resurgence in population growth, driven largely by corporate expansion, access to a talented workforce, and a high quality of life. Year-overyear, Phoenix ranked third, behind Austin and Orlando, in percentage employment growth (3.24%). Arizona State University s commitment to innovation has drawn many of these corporations into close proximity. RECENT CORPORATE RELOCATIONS AND EXPANSIONS INTO TEMPE COMPANY # OF EMPLOYEES 1. State Farm 8, JP Morgan Chase 4, Centene Corporation 2, Freedom Financial 2, ADP 1, Bank of the West 1, MUFG 1, Northern Trust 1, Benchmark Electronics 725 Footnote: Companies located within 10 miles of the Property EMPLOYMENT GROWTH GENERALLY RUNS POPULATION GROWTH, AND THE RAPID AMOUNT OF JOB OPENINGS IN GREATER PHOENIX HAS BEEN INCREDIBLY ATTRACTIVE FOR PEOPLE WILLING TO MOVE. - Elliott Pollack, Economist 6 ) ARIZONA STATE ROUTE 202 (± 150,000 VPD

7 EXECUTIVE SUMMARY PHOENIX SKY HARBOR INTERNATIONAL AIRPORT 143 TE ROU A T S A ARIZON 0 VPD) ± 57,00 TE 143 ( 7

8 SUPERIOR LOCATION WITH EXCEPTIONAL FREEWAY ACCESS Red Mountain Corporate Center is situated between Arizona State Route 143 and Arizona State Route 202, acting as a convenient gateway to all of Greater Phoenix. State Route 143 provides direct access to Interstate 10, U.S. Route 60 and the entire Southeast Valley, while State Route 202 connects with State Route 51 and Central Phoenix; and State Route 101 to Scottsdale and Tempe. Lastly, the Property is located less than 5 minutes from Phoenix Sky Harbor International Airport. LIGHT RAIL 51 24TH & CAMELBACK 7.5 MILES ONE OF THE STRONGEST MARKETS FOR POPULATION AND JOB GROWTH Phoenix consistently ranks as one of the top metro areas for population growth. Phoenix s ability to attract individuals from all over the world has triggered a boom in population that has fueled a robust economy supported by a diverse set of industries. DOWNTOWN PHOENIX 5 MILES 2 MILES PHOENIX SKY HARBOR INTERNATIONAL AIRPORT 4.7MM PEOPLE 1.9% year-over-year population increase, 2nd largest increase for top-20 metro areas (as of July 2017) MM JOBS +65,000 jobs added over 12 months, 4th largest increase behind NYC, Dallas & L.A. (as of March 2018) 10 8

9 EXECUTIVE SUMMARY OLD TOWN SCOTTSDALE ABUNDANCE OF TENANT PARKING Phoenix is currently undergoing a transformation from a suburban market to an urban-suburban market. In addition to the new Light Rail stop, Red Mountain Corporate Center provides tenants with 775 parking spaces, of which almost 50% are covered spaces, or 6.0 spaces per 1,000 SF. 2.5 MILES 5 MILES CLOSE PROXIMITY TO ARIZONA STATE UNIVERSITY A key driver behind Phoenix s strong job growth is the resurgence of Arizona State University and their commitment to producing the best qualified graduates. The Property is centrally located between the 12,000 student campus in Downtown Phoenix and the 50,000 student campus in Downtown Tempe DOWNTOWN TEMPE LIGHT RAIL #1 in the U.S. for innovation #1 ASU #2 STANFORD #3 MIT -U.S. News & World Report 2016, 2017 and

10 Investment Advisors BEN GEELAN DIRECTOR MICHAEL LEGGETT SENIOR MANAGING DIRECTOR JAIME FINK SENIOR MANAGING DIRECTOR NICK RAY ANALYST Debt Financing JEREMY WOMACK SENIOR MANAGING DIRECTOR Market Leasing MIKE BEALL EXECUTIVE MANAGING DIRECTOR SEAN SPELLMAN SENIOR DIRECTOR CHRIS WALKER SENIOR DIRECTOR JEFF WENTWORTH EXECUTIVE MANAGING DIRECTOR Broker of Record RYAN FITZPATRICK BROKER OF RECORD AZ LIC. # BR Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and 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 [properties] 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.