125 LINCOLN 150 WASHINGTON Santa Fe, New Mexico

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1 125 LINCOLN 150 WASHINGTON Santa Fe, New Mexico SANTA FE S SIGNATURE OFFICE/RETAIL PROPERTY PREMIER DOWNTOWN LOCATION EXECUTIVE SUMMARY

2 THE OPPORTUNITY CBRE, as exclusive advisor, is pleased to present to qualified investors the opportunity to acquire 125 Lincoln 150 Washington (the Property ), Downtown Santa Fe s signature office/retail property. The Property is exceptionally located in the heart of Downtown Santa Fe and is comprised of two Class A buildings with a total of 139,119 net rentable square feet. The buildings share a central courtyard and a single-level underground parking garage a unique and valuable on-site amenity. Each building is subject to longterm ground lease. Additional detail is provided within the Offering Memorandum. 125 Lincoln 150 Washington boasts a premier location within a prestigious market. It comprises nearly a full city block and is just north of Santa Fe s historic Plaza home to the Palace of the Governors and adjacent to the New Mexico State Museum. The exclusive restaurants, retail shops and hotels that surround the Property provide unmatched access to best-in-class amenities. With Santa Fe s strict building restrictions particularly within the Downtown historic district the Property is well-insulated from the competition of future development. It is also bolstered by historically strong demand and the ability to command the market s top rents. 125 Lincoln 150 Washington is 60% leased to a diverse base of investment-credit and local tenants, resulting in a secure, in-place cash flow. The Property offers significant upside through the lease-up of current vacancy and the mark-to-market of near-term rollover with in-place rents ±12% below current market rents. Further upside can be achieved through converting the Property s full-service rents to a more favorable Plus E structure. The 125 Lincoln 150 Washington offering presents investors with a unique opportunity to acquire a landmark property in a premier destination market. Click for Video: LINCOLN 150 WASHINGTON

3 ASSET PROFILE Address: 125 Lincoln Avenue 150 Washington Avenue Santa Fe, New Mexico Net Rentable Area: 139,119 RSF Leased: 60% Building Details: 125 Lincoln: 4 Tenant Floors 150 Washington: 3 Tenant Floors Years Built: Typical Floor Sizes: Ranges from 14,500 RSF to 28,500 RSF Site: 1.5 Acres On-Site Parking/Ratio: 166 Total Garage Parking Spaces 1.3/1,000 RSF INVESTMENT HIGHLIGHTS Near-Term Upside Potential Lease-up of Current Vacancy Conversion of Rents to a Plus E Structure Mark-to-Market of Near-Term Rollover Secure In-Place Cash Flow Diversified, Investment-Credit Quality Tenants Loyal, Long-Term Tenancy Limited Large Tenant Exposure Santa Fe s Premier Office & Retail Space Class A Buildings with High-End Finishes Recent Capital Improvements of ±$6 Million On-Site, Underground Parking Upscale, Amenity-Rich Location Adjacent to the Historic Santa Fe Plaza Best-in-Class Restaurants, Shops, Hotels & Cultural Destinations Premier Downtown Santa Fe Submarket Coveted Downtown Address Significant Barriers to Entry Stable Office Market Fundamentals Affluent Residential Neighborhoods Santa Fe, New Mexico Oldest State Capital in the U.S. World-Renowned Tourist Destination Strong Local Economy Tremendous Value for CRE Investors EXECUTIVE SUMMARY 3

4 NEAR-TERM UPSIDE POTENTIAL Lease-up of Current Vacancy ±55,000 Total SF Suites Range from ±1,000 SF to ±13,500 SF SECURE IN-PLACE CASH FLOW Diversified, Investment Credit Quality Financial Services Business Consulting 27% 20% Conversion to Plus E Rents More Favorable Lease Structure for Investors Reflective of the Property s Strong Market Position Mark-to-Market of In-Place Leases ±12% Below Current Market Rents Real Estate Investment 1% 4% Legal Services 5% Retail Services Information Technology 7% 9% 10% 17% Real Estate Services Restaurants Art Galleries/Retail Substantial NOI Growth $2,500,000 Loyal, Long-Term Tenancy Two of the Three Largest Tenants in Place through December 2023 and March 2026 $2,000,000 $1,500,000 $1,000,000 $500,000 Nearly 1.5x Growth over the Hold Limited Large Tenant Exposure Average Tenant Size of ±4,585 SF Tenants leasing more than 25,500 square feet, or 30% of the Property s leased space, have been at 125 Lincoln 150 Washington for 10 or more years. $0 CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 Offered free of in-place financing, 125 Lincoln 150 Washington allows an investor to take advantage of strong lending markets generating significant leveraged returns LINCOLN 150 WASHINGTON

5 475 Superior Accessibility 1/2 Mile from Paseo de Peralta (SH 475) 4 Miles to Interstate Minutes to Santa Fe Regional Airport 1 Hour to Albuquerque International Airport SANTA FE S PREMIER OFFICE & RETAIL SPACE Market-Leading Asset Quality High-End Finishes throughout All Common Areas & Tenant Spaces Underground Parking with Direct Access to Each Building Generously Landscaped Central Courtyard Fully Operative Windows with Spectacular Views Valuable Street Frontage & Access Caters to Upscale Office & Retail Users 125 Lincoln 150 Washington offers a highly visible location with frontage on Santa Fe s main avenue of hotels, restaurants, art galleries, and retail shops adjacent to the historic Plaza and renowned museums. Limited Near-Term Capital Exposure ±$6 Million Invested (since 2009) HVAC & Lighting Upgrades Renovated Lobbies, Corridors & Restrooms New Windows & Courtyard Improvements Convenient Amenities On-Site Restaurants & Shops Upper-Level Balcony Space Abundant Garage Parking Walking Distance from Historic Plaza & Museums EXECUTIVE SUMMARY 5

6 PREMIER DOWNTOWN SANTA FE LOCATION N First Judicial District Court Secretary of State State of New Mexico Offices Old Santa Fe Inn Hilton Santa Fe Inn Supreme Court Justice Inn of the Governors Hotel St. Francis Santa Fe County Clerk El Dorado Hotel & Spa La Fonda Hotel Historic Santa Fe Plaza Palace of the Governors New Mexico Museum of Art Georgia O Keeffe Museum Annex Georgia O Keeffe Museum 125 LINCOLN Santa Fe Community Convention Center Rosewood Inn of the Anasazi 150 WASHINGTON LINCOLN AVE Hotel Chimayo de Santa Fe WASHINGTON AVE La Boca Restaurant Santa Fe Library MARCY ST LINCOLN 150 WASHINGTON

7 N 125 LINCOLN 150 WASHINGTON Paseo De Peralta Santa Fe SIGNIFICANT BARRIERS TO ENTRY Greater Santa Fe Downtown Santa Fe Inventory Inventory 3,258,093 SF 514,341 SF Occupancy Rents Occupancy Rents 93.9% $20.13 FSG 87.1% $24.86 FSG Santa Fe Regional Airport Five-Year Rent Growth Five-Year 15% Rent Growth 31% SANTA FE, NEW MEXICO Internationally Renowned Tourist Destination 1.5 Million Visitors Annually The state of New Mexico offers tremendous value to commercial real estate investors. A historically stable market, Santa Fe s single-digit vacancy and lack of competitive supply creates a favorable rent environment with significant runway for investors entering the market. Increasingly Diversified State Economy Government/Military, Energy, Tourism, Film/TV Production, Emerging Tech Sector Very Low Unemployment 3.7% Seasonally Adjusted in June 2018 Strong Projected Job Growth 5.9% through 2026 Exceptional Quality of Life Affluent Demographics Superior Climate with World-Class Amenities EXECUTIVE SUMMARY 7

8 EXCLUSIVE MARKETING ADVISORS GARY CARR Vice Chairman JOHN ALVARADO Senior Vice President TOM JENKINS, SIOR, CCIM First Vice President MARGUERITE HAVERLY Senior Associate DEBT & STRUCTURED FINANCE PETER GINERIS Senior Vice President UNDERWRITING SUPPORT MARY CLAIRE HOUSEMAN Senior Financial Analyst For additional information regarding this opportunity, please visit the property website at Click Above Link to Obtain CA 2018 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners.