MERIDIAN CORPORATE CENTER

Transcription

1 RALEIGH-DURHAM NORTH CAROLINA MERIDIAN CORPORATE CENTER SINGLE-STORY OFFICE/R&D PORTFOLIO

2 MERIDIAN CORPORATE CENTER SINGLE-STORY OFFICE/R&D PORTFOLIO INVESTMENT OPPORTUNITY Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a North Carolina licensed real estate broker ( HFF ) has been retained as the exclusive sales representative for the Meridian Corporate Center Single-Story Office/ R&D Portfolio (the Property or Portfolio ), a 269,180 square foot, institutional-quality office/r&d portfolio located in West-RTP s premier business park. Ideally positioned in the center of the flourishing Raleigh-Durham market, the Portfolio is 97.8% leased to an attractive tenant roster anchored by creditworthy STEM tenants representing the Research Triangle s core industries. This fully stabilized investment opportunity features an attractive weighted average lease term of more than four years and is positioned for long-term success as the only institutional business park located on the western side of Research Triangle Park. Meridian Corporate Center presents investors with a unique opportunity to acquire significant critical mass at a discount to replacement cost in the nation s fastest growing metropolitan since MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 2

3 MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO FOUR SINGLE-STORY OFFICE/R&D ASSETS IN ONE OF RALEIGH-DURHAM S PREMIER BUSINESS PARKS The Meridian Corporate Center Single-Story Office/R&D Portfolio offers the opportunity to acquire four single-story office/r&d buildings located in one of Raleigh-Durham s premier office parks featuring a center-of-themarket location and a market leading amenity package. Investors have the opportunity to gain an instant foothold in one of the country s largest innovation markets with unmatched competitive advantages in Meridian Corporate Center, driving tenant demand and consistently achieving premium rental rates. Additionally, the single-story nature of this portfolio caters perfectly to Raleigh-Durham s high concentration of healthcare and technology tenants. As such, the rent roll is dominated by these STEM employers and offers significant remaining term providing investors a highly diverse and secure cash flowing portfolio in the flourishing Raleigh- Durham market. PREMIER WEST-RTP BUSINESS PARK UNPARALLED PARK AMENITIES STRATEGIC CENTER OF INNOVATION WITH EXPLOSIVE JOB GROWTH ATTRACTIVE RESEARCH TRIANGLE-ORIENTED TENANT ROSTER FLOURISHING CENTER-OF-THE-MARKET LOCATION INVESTMENT FLEXIBILITY MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 3

4 INVESTMENT SUMMARY ADDRESSES 2600 Meridian Parkway Durham, NC Meridian Parkway Durham, NC Meridian Parkway Durham, NC Meridian Parkway Durham, NC RENTABLE BUILDING AREA 2600 Meridian 65,599 SF 2700 Meridian 51,637 SF 2800 Meridian 51,066 SF 2810 Meridian 100,878 SF Portfolio 269,180 SF PERCENT OCCUPIED* 2600 Meridian 100.0% 2700 Meridian 100.0% 2800 Meridian 100.0% 2810 Meridian 94.1% Portfolio 97.8% NO. OF TENANTS Portfolio 13 WEIGHTED AVERAGE REMAINING LEASE TERM (EXISTING TENANTS) Portfolio 4.19 Years *Occupancy reflects all contractual leases modeled in the financial analysis. This includes the Connections Education relocation to 2800 Meridian, scheduled to commence on 7/1/2018, and the NVIDIA expansion in 2700 Meridian, projected to commence on 1/1/2019. MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 4

5 PREMIER WEST-RTP BUSINESS PARK FOUR BEST IN CLASS OFFICE ASSETS Meridian Corporate Center is located adjacent to the world-renowned Research Triangle Park (RTP), the largest dedicated scientific research park in the United States, benefitting from unparalleled proximity to one of the primary economic drivers in the Triangle region. Featuring 1,041,702 SF of institutional office space situated within a beautifully landscaped 270-acre park, Meridian Corporate Center is considered the only true business park located on the west side of RTP, resulting in a significant competitive advantage for Meridian Corporate Center landlords. With limited competitive product in the West-RTP area, Meridian Corporate Center is the primary office destination for decision making executives residing in Durham and Chapel Hill. As a result, Meridian Corporate Center houses major operations of some of the market s top innovative and STEM companies such as BASF, NVIDIA, PAREXEL International, Chimerix, Health Decisions, and Frontier Communications. In addition to attracting a number of publicly traded, investment grade companies, this center of innovation fosters the growth of numerous local entrepreneurial companies. Meridian Corporate Center is designed to meet the needs of the rapidly expanding roster of STEM, healthcare, research organizations, and innovative companies that are highly concentrated in the Triangle area. High-quality construction and a market-leading amenity package supplement the ideal West-RTP location of the park offering extraordinary competitive advantages to investors. Consistently outperforming the surrounding market, Meridian Corporate Center boasts strong historical occupancy with a trailing five year average occupancy of 93.4%, demonstrating the ability to consistently attract new tenants to the assets and retain existing tenants. Moreover, significant leasing momentum, totaling 307,010 SF of executed leases over the past 24 months, illustrates the compelling opportunity for investors to capitalize on a four asset portfolio offering situated in West- RTP s premier business park. MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 5

6 UNPARALLELED PARK AMENITIES Meridian Corporate Center, a premier 270-acre mixed use park in the heart of the Research Triangle, offers an unparalled park amenity package including: Recently delivered, 339 apartment units at The Heights at Meridian, featuring: THE HEIGHTS AT MERIDIAN Salt water pool with fountains and sundeck Fitness club Resident lounge Outdoor lounge with kitchen, fireplace and grills DOUBLETREE SUITES Attractive landscaping featuring mature trees, cascading waterfalls, fountains and numerous reflection pools Pedestrian trails, greenways, outdoor picnic tables and scenic views of the seven-acre lake DoubleTree Suites by Hilton Hotel (Raleigh-Durham) located within the park offering a restaurant, pool and fitness center

7 CREDIT SUISSE ADDING 1,200 JOBS IN RESEARCH TRIANGLE PARK $1.15 BILLION IN NIH FUNDING IN 2016 RELIAS LEARNING PICKS TRIANGLE OFFICE PARK FOR NEW HEADQUARTERS CAMPUS STRATEGIC CENTER OF INNOVATION WITH EXPLOSIVE JOB GROWTH DUKE ENERGY SELECTS NC LOCATIONS FOR ECONOMIC DEVELOPMENT PROGRAM METLIFE EXPANDING THEIR TECH HQ TO ITS THIRD BUILDING IN THE TRIANGLE INFOSYS TO BRING 2,000 JOBS TO WAKE COUNTY Raleigh-Durham has emerged as one of the country s leading innovation markets. STEM (Science, Technology, Engineering, and Mathematics) employment growth is a primary economic driver in the Raleigh-Durham market as the area boasts the second highest Tech industry job growth in the country. As an innovation hub, the Raleigh-Durham market has attracted unprecedented capital investment and relocation of major technology and life sciences employers. Not only does the region continue to attract large new-to market companies that make major hiring announcements, but the Triangle s greatest accomplishment is providing an ideal environment for companies to expand organically. As the innovative market expands, Raleigh-Durham is poised for strong future growth driven by superior fundamentals and the presence of three of the country s top research universities (Duke University, University of North Carolina Chapel Hill and North Carolina State University). BIOMÉRIEUX CUTS RIBBON ON $60M DURHAM EXPANSION MAJOR STEM EMPLOYEES IBM SAS CISCO BASF GLAXOSMITHKLINE RED HAT METLIFE ABB QUINTILESIMS BAYER CROPSCIENCE CITRIX SYSTEMS LENOVO US GOVERNMENT CITRIX TO ADD 400 JOBS TO RALEIGH OPS MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 7

8 ATTRACTIVE RESEARCH TRIANGLE-ORIENTED TENANT ROSTER ANCHORED BY CREDITWORTHY TENANTS WITH LONG-TERM TENANCY AT THE ASSETS TELECOMMUNICATIONS TECHNOLOGY HEALTHCARE MANUFACTURING FINANCIAL SERVICES OTHER 19% 7% 20% 4% 25% 25% The Portfolio features an impressive tenant roster anchored by publicly traded, creditworthy tenants representing some of the Research Triangle s core industries such as healthcare, technology, and telecommunications. The assets contain a blend of rapidly expanding regional companies and well established national and international firms, many of which are headquartered at the Property. With 70% of the property leased to healthcare, technology, and telecommunications companies, the tenant roster is strongly tied to the flourishing life sciences and innovation hub in the Raleigh-Durham market offering highly coveted long-term stability to investors. Notable tenants include NVIDIA (NASDAQ: NVDA; Moody s: A3) and Spoonflower (HQ), which combine for 25% of the Property and offer attractive stability to the offering. NVIDIA is a publicly traded, investment grade company (Moody s: Baa1) experiencing tremendous growth in the Raleigh-Durham area providing appealing credit and stability to the tenant roster. Spoonflower was founded in the Raleigh-Durham area and is currently headquartered at the Property, strengthening the stability of the offering with a rapidly expanding company that has an established regional presence and long-standing client relations in the Triangle area. In addition, the two tenants boast a weighted average tenancy of approximately 11 years at the Property demonstrating the ability to attract large users to the assets and successfully renew and expand these rapidly growing companies. The offering is further supported by the balanced rollover schedule limiting significant downside exposure in any given year. MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 8

9 SOUTHPOINT MALL (2 MILES) 1.3 MSF, 150+ STORES ARBORETUM AT SOUTHPOINT APARTMENTS EMERALD FOREST APARTMENTS CHAPEL HILL THE HEIGHTS AT MERIDIAN (339 UNITS) MIDTOWN AT MERIDIAN DOUBLE TREE SUITES BY HILTON MERIDIAN CORPORATE CENTER 2600 MERIDIAN 2800 MERIDIAN HOPE VALLEY COUNTRY CLUB 2810 MERIDIAN 2700 MERIDIAN DOWNTOWN DURHAM FLOURISHING CENTER-OF- THE-MARKET LOCATION RALEIGH-DURHAM, NORTH CAROLINA Meridian Corporate Center is strategically located at the geographic center of the Raleigh-Durham market, offering immediate access to Interstate 40 and Route 55, two of the area s primary transportation arteries. As a result, this location affords easy commutes from the surrounding executive communities in Durham (5 mi) and Chapel Hill (7 mi) as well as convenient access to the Raleigh- Durham International Airport (7 mi) and the world-renowned Research Triangle Park (1 mi) CHAPEL HILL DURHAM MERIDIAN CORPORATE CENTER Research Triangle Park RALEIGH-DURHAM INTERNATIONAL AIRPORT UMSTEAD P ARK RALEIGH Wake Forest Meridian Corporate Center is primed for significant long-term success as unprecedented growth in the area has resulted in an increasingly infill location with convenient access to a robust amenity base. The park is within a 5-mile radius of over 1.4 million square feet of retail amenities including the prominent power retail center at the Streets at Southpoint (2 mi), which offers over 150 retail shops, a range of casual restaurants and fine dining options, and additional amenities. Other notable amenities within a five minute drive of the Property include Starbucks, Chick Fil A, Walgreens, and Harris Teeter. CARY

10 INVESTMENT FLEXIBILITY The offering includes one single-tenant and three multi-tenant office buildings and is well-positioned to accommodate a range of small, mid-size, and large users. The Portfolio features a modest amount of laboratory space, which opens up the potential for a future landlord to accommodate more lab space, which tends to be in high demand in the Research Triangle market. Additionally, the four assets sit on three separate tax parcels (with 2700 Meridian and 2800 Meridian sharing a single tax parcel) and provide future investors flexibility in the financing or sale of the assets. Investment flexibility offered in a portfolio of this size allows potential investors to acquire significant critical mass while maintaining various exit strategies that will attract a broader range of investors and drive pricing in the event of a sale. ASSET PARCEL ID PIN ACRES 2600 Meridian Parkway Meridian Parkway Meridian Parkway Meridian Parkway MERIDIAN SINGLE-STORY OFFICE/R&D PORTFOLIO 10

11 MERIDIAN CORPORATE CENTER SINGLE-STORY OFFICE/R&D PORTFOLIO RALEIGH-DURHAM INTERNATIONAL AIRPORT DOWNTOWN RALEIGH INVESTMENT ADVISORS RYAN CLUTTER Senior Managing Director IBM UNITED THERAPEUTICS CREE SYNGENTA RESEARCH TRIANGLE PARK RTI INTERNATIONAL FIDELITY INVESTMENTS BASF SCOT HUMPHREY Senior Director CHRIS NORVELL, SIOR Senior Managing Director DURHAM (5 MILES) 55 MERIDIAN CORPORATE CENTER PATRICK NALLY Director ANALYSTS 2810 MERIDIAN RYAN EKLUND Associate WILLIAM MORRIS Real Estate Analyst MERIDIAN THE HEIGHTS AT MERIDIAN 2700 MERIDIAN DEBT + STRUCTURED FINANCE TRAVIS ANDERSON Senior Managing Director tanderson@hfflp.com ROGER EDWARDS Senior Director redwards@hfflp.com 2600 MERIDIAN LEASING CONTACT BRAD CORSMEIER CBRE Raleigh brad.corsmeier@cbre-raleigh.com 2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 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 Twitter at twitter.com/hff.