BROAD RIPPLE TOWER OFFERING MEMORANDUM

Transcription

1 BROAD RIPPLE TOWER OFFERING MEMORANDUM

2 NON-ENDORSEMENT AND DISCLAIMER NOTICE NON-ENDORSEMENT S Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved.

3 BROAD RIPPLE TOWER Multi-Tenant Professional Office PRESENTED BY JOSEPH DISALVO First Vice President Investments Indianapolis, Indiana Office (317) Cell (317) License IN: RB ALEX NULF Associate Indianapolis, Indiana Office (317) Cell (574) License IN: RB TYLER SHIRLEY Director of Operations Indianapolis, Indiana Office (317) Cell (765) EVAN DAVIES Financial Analyst Indianapolis, Indiana Office (317) Cell (317) O F F I C E S N A T I O N W I D E AND T H R O U G H O U T C A N A D A

4 BROAD RIPPLE TOWER 6100 N Keystone Avenue Indianapolis, IN 46220

5 BROAD RIPPLE TOWER M U L T I - T E N A N T P R O F E S S I O N A L O F F I C E 07 PROPERTY ANALYSIS 19 SECTION 1 Executive Summary Investment Overview Photos Property Details 29 MARKET OVERVIEW SECTION 3 Market Overview Economy Demographics TABLE OF CONTENTS FINACIAL ANALYSIS SECTION 2 Operating Statement Tenant Summary Sales / Lease Comparables PRESENTED BY

6 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

7 B R O A D R I P P L E T O W E R // PROPERTY ANALYSIS PROPERTY ANALYSIS BROAD RIPPLE TOWER

8 OFFERING HIGHLIGHTS B R O A D R I P P L E T O W E R // P R O P E R T Y A N A L Y S I S BROAD RIPPLE TOWER MULTI-TENANT PROFESSIONAL OFFICE 6100 N Keystone Avenue, Indianapolis, IN OFFERING PRICE $7,300,000 VITAL DATA CAP RATE 10.01% Price $7,300,000 Cap Rate 10.01% Price/SF $93.33 Rentable Building Area 78,220 SF Occupancy 91.80% Net Operating Income $730,838

9 BROAD RIPPLE TOWER Multi-Tenant Professional Office B R O A D R I P P L E T O W E R / / P R O P E R T Y A N A L Y S I S

10 PROPERTY OVERVIEW The DiSalvo Group of Marcus & Millichap, as exclusive advisor, is pleased to present to the market the Broad Ripple Tower, a rare multi-tenant, value-add office opportunity situated in the heart of Indianapolis. The Broad Ripple Tower is strategically located at 6100 North Keystone Avenue, one of the most trafficked Indianapolis corridors - at the East 62nd Street intersection, directly across from the Glendale Town Center and benefits from daily traffic counts exceeding 42,000 vehicles per day. The Kite Realty-owned Glendale Town Center, also known as the Glendale Mall, is a 724,026 square-foot retail power center featuring anchor tenants such as Macys, Lowes, Target, Macys, Staples, and Landmark Theatres. B R O A D R I P P L E T O W E R // P R O P E R T Y A N A L Y S I S The Broad Ripple Tower is located at 6100 North Keystone Avenue, sharing a parking lot with Goodwill, KFC, PNC Bank, and LA Fitness. In addition to the abundance of anchor retailers in the immediate trade area, The Broad Ripple Tower also benefits from an abundance of restaurant amenities such as Starbucks, Panera Bread, O Charleys, Jimmy Johns, Taco Bell, Chick-fil-A, Taco Bell and Buffalo Wild Wings all located within walking distance. The Broad Ripple Tower is a six-story, 78,220 square-foot professional office center that has benefited from a total renovation over the past twenty-four months of which includes a brand new roof, resealed and striped parking lot, updated lobby and common areas, and a completely revamped and redesigned exterior that has driven substantial leasing traffic. The subject property was acquired less than two years ago by the Seller with a three-to-five year plan to complete the improvements, lease-up the property, and eventually sell or refinance upon stabilization. Timing motivations have since changed, creating an opportunity for an investor to capitalize on the improvements completed by the Seller, continue the lease-up, and capture the upside for themselves. PROPERTY OVERVIEW Brand New Roof and Updated Common Areas Within the Past Two Years Resealed and Striped Parking Lot and New Facade Completed within the Past Two Years Strategically Positioned Across from Glendale Mall 724,026 SF Retail Power Center Densely Populated Trade-Market Over 215,000 Residents within Five-Mile Radius Well-Located Along Keystone Avenue A Major Indianapolis Corridor 44,000+ VPD

11 BROAD RIPPLE TOWER Multi-Tenant Professional Office B R O A D R I P P L E T O W E R / / P R O P E R T Y A N A L Y S I S

12 PROPERTY DETAILS The DiSalvo Group of Marcus & Millichap, as exclusive advisor, is pleased to present to the market the Broad Ripple Tower, a rare multitenant, value-add office opportunity situated in the heart of Indianapolis. The Broad Ripple Tower is strategically located at 6100 North Keystone Avenue, one of the most trafficked Indianapolis corridors - at the East 62nd Street intersection, directly across from the Glendale Town Center and benefits from daily traffic counts exceeding 42,000 vehicles per day. The Kite Realty-owned Glendale Town Center, also known as the Glendale Mall, is a 724,026 square-foot retail power center featuring anchor tenants such as Macys, Lowes, Target, Macys, Staples, and Landmark Theatres. B R O A D R I P P L E T O W E R // P R O P E R T Y A N A L Y S I S Broad Ripple Tower Property Address 6100 N Keystone Avenue Number of Units 52 Number of Buildings 1 Number of Stories Six (6) Year Built 1968/2017 Lot Size 2.49 Acres / 108,464 sf Type of Ownership Fee Simple Parking 140 Free Surface Spaces / 1.79/1,000 Parking Ratio Utilities: Water Municipal Utilities: Electric Municipal Topography Flat Major Thoroughfare Access Keystone Avenue Foundation Concrete Slab Framing Steel Frame Exterior Concrete Parking Surface Asphalt Roof Rubber Membrane HVAC Complete Upgrade Elevators Two (2). Life Safety Smoke Detectors and Fire Alarms

13 Three Crosswoods Multi-Tenant Professional Office B R O A D R I P P L E T O W E R / / P R O P E R T Y A N A L Y S I S

14 B R O A D R I P P L E T O W E R // P R O P E R T Y A N A L Y S I S

15 B R O A D R I P P L E T O W E R / / P R O P E R T Y A N A L Y S I S

16 B R O A D R I P P L E T O W E R // P R O P E R T Y A N A L Y S I S

17 Regional Map

18 Local Map

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20 BROAD RIPPLE TOWER This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

21 B R O A D R I P P L E T O W E R // FINANCIAL ANALYSIS FINANCIAL ANALYSIS BROAD RIPPLE TOWER

22 B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S OPERATING STATEMENT

23 TENANT SUMMARY B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S

24 B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S TENANT SUMMARY

25 TENANT SUMMARY B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S

26 Lease Rollover (By Year) GLA (By Tenant) B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S

27 INVESTOR PRO FORMA (ALL-CASH) B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S

28 B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S INVESTOR PRO FORMA (WITH FINANCING)

29 B R O A D R I P P L E T O W E R // F I N A N C I A L A N A L Y S I S MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES MMCC our fully integrated, dedicated financing arm is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. WHY MMCC? Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Closed 1,651 debt and equity financings in 2016 National platform operating within the firm s brokerage offices $5.1 billion total national volume in 2016 Access to more capital sources than any other firm in the industry Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

30 BROAD RIPPLE TOWER This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID Z

31 B R O A D R I P P L E T O W E R // PROPERTY ANALYSIS MARKET OVERVIEW BROAD RIPPLE TOWER

32 INDIANAPOLIS OVERVIEW B R O A D R I P P L E T O W E R // M A R K E T O V E R V I E W The Indianapolis metro is situated in central Indiana and consists of 11 counties: Marion, Johnson, Hamilton, Boone, Hendricks, Morgan, Hancock, Shelby, Brown, Putnam and Madison. The metro lacks formidable development barriers, except for the several rivers and creeks that traverse the region. Marion County is home to Indianapolis, the capital city, which contains a population of approximately 856,000 people. Carmel in Hamilton County is the second most populous with nearly 90,000 residents. A large portion of the surrounding counties is rural, offering builders ample land for residential and commercial development. Population growth is primarily concentrated to the northern suburbs and west of the city. METRO HIGHLIGHTS PREMIER DISTRUBUTION HUB Around 50 percent of the U.S. population lies within a one-day drive of Indianapolis, making it a center for the transportation of goods. MAJOR HEALTH SCIENCES CENTER Eli Lilly & Co., Roche Diagnostics Corp. and Covance Inc. maintain operations in the region, among other major health-related employers. LOW COST OF DOING BUSINESS Indianapolis costs are far below national averages, attracting businesses and residents to the area.

33 BROAD RIPPLE TOWER ECONOMY Indianapolis underwent an economic renaissance during the past two decades, diversifying from a manufacturing-based economy into a variety of other employment sectors. The metro is one of the key health-sciences centers in the nation, anchored by several pharmaceutical and life-sciences companies. The metro is accessible to a large portion of the nation in one day by ground or air, making the region a burgeoning logistics and distribution hub. Annual GMP tops the national level, a trend that is set to persist over the next five years. MAJOR AREA EMPLOYERS Eli Lilly & Co Indiana University Health Rolls-Royce Corp. Community Health Marsh Supermarkets Kroger IUPUI FedEx Roche Diagnostics Finish Line * Forecast SHARE OF 2016 TOTAL EMPLOYMENT 9% MANUFACTURING 15% PROFESSIONAL AND BUSINESS SERVICES 13% 10% 6% GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES 22% TRADE, TRANSPORTATION AND UTILITIES 5% CONSTRUCTION + 15% EDUCATION AND HEALTH SERVICES 2% INFORMATION 4% OTHER SERVICES

34 BROAD RIPPLE TOWER B R O A D R I P P L E T O W E R // M A R K E T O V E R V I E W DEMOGRAPHICS The metro is expected to add nearly 110,000 people through 2021, which will result in the formation of nearly 40,000 households, generating demand for housing. A median home price below the national level has produced a homeownership rate of 66 percent, which is above the national rate of 64 percent. Roughly 31 percent of people age 25 and older hold bachelor s degrees; among those residents, 11 percent also have earned a graduate or professional degree Population by Age 7% 0-4 YEARS 2016 POPULATION: 2M Growth *: 5.3% 21% 5-19 YEARS Indianapolis offers residents many big-city amenities in an affordable, small-town atmosphere. The city is home to several high-profile auto races, including the Indianapolis 500 and Brickyard 400. Races are hosted at the Indianapolis Motor Speedway and the Lucas Oil Raceway at Indianapolis. The metro has two major league sports teams: the Indianapolis Colts (NFL) and the Indiana Pacers (NBA). The area also has a vibrant cultural and arts scene, with more than 200 art galleries and dealers, the Indianapolis Symphony Orchestra and a variety museums, including the Eiteljorg Museum of American Indians and Western Art. Additionally, the Children s Museum of Indianapolis is one of the largest children s museums in the world HOUSEHOLDS: 774K 5.6% 7% YEARS Growth *: 28% YEARS 2016 MEDIAN AGE: 36.2 U.S. Median: 37.7 QUALITY OF LIFE 26% YEARS 12% 65+ YEARS 2016 MEDIAN HOUSEHOLD INCOME: $53,700 U.S. Median: $54,500 SPORTS EDUCATION ARTS & ENTERTAINMENT * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau

35 BROAD RIPPLE TOWER INDIANAPOLIS METRO AREA Tech Sector Expansion Changing Indianapolis Office Market Success of large tech firms provides foundation for the burgeoning industry. More than 114,000 people are employed in the technology sector in Indiana and the expansion of the industry is centered in the Indianapolis metro. The success of firms including Salesforce and Interactive Intelligence is garnering the attention of other tech businesses that are considering expanding into the market. Salesforce recently moved into 220,000 square feet in the building now known as Salesforce Tower. The firm also has plans to add 800 employees and train 500 apprentices over the next five years. Another growing tech company, Knowledge Services, is planning to build a new headquarters in Fishers. The firm will complete the facility in 2018 and add 400 positions to the more than 1,100 employees already working in the state. Office buildings adjusting to attract new tech companies. Lower rent expenses and a skilled labor force make the region a more affordable alternative to many coastal markets and operators are changing to accommodate these businesses. Some operators are modernizing office buildings with open floor plans for collaborative workspace and adding amenities that attract tech and creative companies. Others are turning space into shared offices to draw startups. Office 2017 Outlook 1.3 million sq. ft. will be completed 10 basis point decrease in vacancy 1.1% increase in asking rents Construction: Deliveries reach an eight-year high during 2017, doubling last year s 590,000 square feet. Construction is dispersed throughout the market Vacancy: More than 1 million square feet of net absorption will decrease vacancy to 12.3 percent. Vacancy also declined 10 basis points last year. Rents: The average asking rent climbs 1.1 percent to $18.14 per square foot in 2017 following a 2.5 percent hike last year. Investment Trends * Trailing 12 months through 1Q17 Sources: CoStar Group, Inc.; Real Capital Analytics Interest in office assets will remain strong in 2017, limited only by the availability of quality listings. Lower entry costs and higher cap rates than are available in many markets will draw a wide range of investors to the metro. Properties that can be refurbished with open floor plates, natural lighting and amenities to attract tech, creative and startup companies will draw buyers to downtown Indianapolis and the Broad Ripple neighborhood. Investors will also follow tech companies northward into Hamilton County, where cities such as Fishers are actively recruiting these firms. The sale of medical office properties rose in the last four quarters as more properties were listed. During this time, assets priced appropriately received multiple offers at an average price of $184 per square foot. Cap rates begin in the 6 percent range, with both local and out-of-state buyers active throughout the market.

36 INDIANAPOLIS METRO AREA YEAR OVER YEAR B R O A D R I P P L E T O W E R // M A R K E T O V E R V I E W EMPLOYMENT increase in total 1.8% employment Y-O-Y Metrowide, employers added 18,500 workers to staffs year over year in March, including 2,100 office-using positions. Overall gains were led by growth in the education and health services sector. A slowdown in hiring can be partially contributed to a lack of available workers. The unemployment rate has remained below 4 percent for three consecutive quarters. CONSTRUCTION 516,900 square feet completed Y-O-Y Developers delivered 200,700 square feet in the first quarter of 2017, raising the 12-month total to 516,900 square feet. One year earlier, 805,200 square feet was completed metrowide. The largest building to open so far this year is Cummins 164,000-squarefoot distribution headquarters in the redeveloping Market East district in the city of Indianapolis. 70 VACANCY basis point decrease in vacancy Y-O-Y The absorption of more than 1 million square feet over the last four quarters reduced the vacancy rate to 11.7 percent in March. One year earlier, vacancy ticked up 30 basis points. Demand for office space in the core has cut vacancy 140 basis points to 8.9 percent in the Downtown submarket year over year in the first quarter. RENTS increase in the 2.9% average asking rent Y-O-Y Tightening vacancy is pushing rents higher, with the average asking rent advancing 2.9 percent to $17.87 per square foot in March. During the previous 12 months, rents declined 1.3 percent. Rents soared 10.4 percent to $13.46 per square foot in the Far South Counties submarket in the last four quarters. Rents here remain the lowest among submarkets. * Forecast

37 BROAD RIPPLE TOWER INDIANAPOLIS METRO AREA Demographic Highlights * **1Q FORECAST JOB GROWTH Metro 1.7% U.S. Average 1.4% 2017 OFFICE- USING JOB GROWTH Metro 1.4% Sales Trends U.S. Average 2.2% * POPULATION AGE Metro 21% U.S. Average 21% POPULATION OF AGE 25+ * PERCENT WITH BACHELOR DEGREE+ Metro 31% U.S. Average 29% **SQ. FT. PER OFFICE WORKER Metro 301 U.S. Average 210 **OFFICE SQUARE FOOTAGE Investors Broaden Search Area, Moving Farther From Metro Core 37% Urban U.S. Average 32% 63% Suburban U.S. Average 68% Transaction velocity remained relatively steady over the last four quarters with both local and out-of-state investors active. Sales activity increased in Hamilton, Hendricks and Johnson counties during this time. Class B and Class C properties were most often targeted at an average price of $94 and $82 per square foot, respectively, year over year in March. Outlook: Local buyers may find value-add opportunities in small office properties in growing cities such as Westfield or Zionsville. Submarket Trends Lowest Vacancy Rates 1Q17 Submarket Vacancy Rate Y-O-Y BasisPoint Change Asking Rent Y-O-Y % Change Far South Counties 3.8% -260 $ % Hancock County 5.0% -580 $ % East County 5.4% -110 $ % South County 7.0% -380 $ % Downtown 8.9% -140 $ % Far West Counties 10.8% 150 $ % West County 11.0% -180 $ % North County 14.7% 400 $ % Northeast County 15.5% -160 $ % Northwest County 15.5% -70 $ % Overall Metro 11.7% -70 $ % ** Trailing 12 months through 1Q17 Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

38 INDIANAPOLIS METRO AREA B R O A D R I P P L E T O W E R // M A R K E T O V E R V I E W Capital Markets Monetary policy in transition. Despite the Fed raising its benchmark short-term rate three times in seven months and signaling another rise before the end of the year, long-term rates have remained stable. The yield on the 10-year U.S. Treasury bond remained in the low- to mid-2 percent range throughout the second quarter of The Federal Reserve wants to normalize monetary policy and, in addition to rate hikes, will start paring its balance sheet. While short- and long-term rates do not always move in tandem, both actions by the Fed have the potential to lift long-term rates. Sound economy a balancing act for Fed. With unemployment at the lowest level since 2007 at 4.3 percent, the Federal Reserve will remain vigilant regarding the possible rapid increase in inflation if wage growth takes off. Additionally, business confidence sits close to its all-time high. Businesses finally have the confidence to expand their footprint after years of tepid growth following the Great Recession. Office properties stand to gain significantly from this expansion with increased hiring adding to occupancy, plus expanding economic growth. The Fed, however, must now balance economic growth and job creation against wage growth and inflationary pressures. Underwriting discipline persists; ample debt capital remains. Overall, leverage on acquisition loans has continued to reflect disciplined underwriting, with LTVs typically ranging from 60 percent to 75 percent for most office properties. At the end of 2016, the combination of higher rates, conservative lender underwriting and fiscal policy uncertainty encouraged some investor caution that slowed deal flow, a trend that has extended into A potential easing of regulations on financial institutions, though, could liberate additional lending capacity and higher interest rates may also encourage additional lenders to participate. * Forecast Sources: CoStar Group, Inc.; Real Capital Analytics

39 PROPERTY NAME Created on October 2017 POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 11,078 73, , Estimate Total Population 11,063 74, , Census Total Population 10,549 71, , Census Total Population 10,707 74, ,362 Current Daytime Population 2016 Estimate 11,795 81, ,770 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection Total Households 5,615 34,236 95, Estimate Total Households 5,598 34,268 95,154 Average (Mean) Household Size Census Total Households 5,313 32,809 91, Census Total Households 5,430 33,915 94,067 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate $200,000 or More 4.09% 6.52% 4.17% $150,000 - $199, % 5.44% 3.91% $100,000 - $149, % 12.92% 9.87% $75,000 - $99, % 11.21% 9.81% $50,000 - $74, % 17.69% 16.35% $35,000 - $49, % 14.81% 15.42% $25,000 - $34, % 10.85% 12.11% $15,000 - $24, % 9.78% 12.66% Under $15, % 10.45% 14.32% Average Household Income $75,989 $85,863 $68,839 Median Household Income $55,872 $54,401 $43,777 Per Capita Income $38,624 $39,882 $30,403 MARKETING TEAM POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2016 Estimate Total Population 11,063 74, ,092 Under % 21.00% 23.84% 20 to 34 Years 35.34% 25.53% 25.46% 35 to 39 Years 8.25% 6.54% 6.05% 40 to 49 Years 11.25% 11.91% 11.62% 50 to 64 Years 15.81% 20.71% 19.38% Age % 14.33% 13.67% Median Age Population 25+ by Education Level 2016 Estimate Population Age 25+ 8,408 53, ,822 Elementary (0-8) 1.81% 1.61% 2.36% Some High School (9-11) 3.37% 4.59% 7.82% High School Graduate (12) 13.18% 16.50% 23.07% Some College (13-15) 13.71% 17.62% 20.48% Associate Degree Only 6.00% 5.32% 6.35% Bachelors Degree Only 40.88% 32.28% 24.54% Graduate Degree 20.62% 21.35% 14.47% Source: 2016 Experian

40 PROPERTY NAME Created on October 2017 MARKETING TEAM B R O A D R I P P L E T O W E R // M A R K E T O V E R V I E W POPULATION BY TRANSPORTATION TO WORK 1 Miles 3 Miles 5 Miles 2016 Estimate Total Population Bicycle 0.79% 0.70% 0.41% Bus or Trolley Bus 0.54% 1.21% 2.33% Carpooled 3.84% 7.29% 8.97% Drove Alone 88.92% 83.40% 81.29% Ferryboat 0.00% 0.00% 0.00% Motorcycle 0.00% 0.03% 0.05% Other Means 0.15% 0.40% 0.92% Railroad 0.00% 0.00% 0.00% Streetcar or Trolley Car 0.00% 0.00% 0.01% Subway or Elevated 0.09% 0.01% 0.01% Taxicab 0.00% 0.20% 0.11% Walked 1.71% 1.72% 2.00% Worked at Home 3.96% 5.02% 3.91% POPULATION BY TRAVEL TIME TO WORK 1 Miles 3 Miles 5 Miles 2016 Estimate Total Population Under 15 Minutes 20.80% 21.51% 23.30% Minutes 52.76% 51.21% 48.15% Minutes 18.40% 18.46% 20.04% Minutes 1.20% 1.37% 2.00% 90 or More Minutes 1.08% 1.28% 1.45% Worked at Home 3.96% 5.02% 3.91% Average Travel Time in Minutes Source: 2016 Experian

41 PROPERTY NAME MARKETING TEAM Population In 2016, the population in your selected geography is 74,316. The population has changed by -0.82% since It is estimated that the population in your area will be 73, five years from now, which represents a change of -0.45% from the current year. The current population is 47.45% male and 52.55% female. The median age of the population in your area is 37.54, compare this to the US average which is The population density in your area is 2, people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 68.24% White, 26.05% Black, 0.01% Native American and 1.63% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.02% of the current year population in your selected area. Compare this to the US average of 17.65%. Households There are currently 34,268 households in your selected geography. The number of households has changed by 1.04% since It is estimated that the number of households in your area will be 34,236 five years from now, which represents a change of -0.09% from the current year. The average household size in your area is 2.14 persons. Housing The median housing value in your area was $173,065 in 2016, compare this to the US average of $187,181. In 2000, there were 22,172 owner occupied housing units in your area and there were 11,742 renter occupied housing units in your area. The median rent at the time was $571. Income In 2016, the median household income for your selected geography is $54,401, compare this to the US average which is currently $54,505. The median household income for your area has changed by 7.24% since It is estimated that the median household income in your area will be $64,305 five years from now, which represents a change of 18.21% from the current year. Employment In 2016, there are 35,143 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 74.73% of employees are employed in white-collar occupations in this geography, and 25.36% are employed in blue-collar occupations. In 2016, unemployment in this area is 3.46%. In 2000, the average time traveled to work was minutes. The current year per capita income in your area is $39,882, compare this to the US average, which is $29,962. The current year average household income in your area is $85,863, compare this to the US average which is $78,425. Source: 2016 Experian

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43 P R E S E N T E D B Y Joseph DiSalvo First Vice President Investments Director - National Office and Industrial Properties Group Indianapolis Office Tel: (317) Fax: (317) joseph.disalvo@marcusmillichap.com License: IN RB Alex Nulf Associate National Office and Industrial Properties Group Indianapolis Office Tel: (317) Fax: (317) Alexander.nulf@marcusmillichap.com License: IN RB