95 METCALF SQUARE W 95 TH STREET OVERLAND PARK, KS

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1 M I X E D U S E O F F E R I N G 95 METCALF SQUARE W 95 TH STREET OVERLAND PARK, KS MICHAEL VANBUSKIRK, SIOR, CCIM, CRE Executive Managing Director, Principal Investment Sales and Capital Markets mvanbuskirk@ngzimmer.com CHRIS ROBERTSON, CCIM Director Investment Sales and Capital Markets crobertson@ngzimmer.com

2 EXECUTIVE SUMMARY Newmark Grubb Zimmer Capital Markets is pleased to present the opportunity to acquire the 95 Metcalf Square portfolio, an eight-building mixed-use complex including multi-tenant office and retail assets. The complex is located on acres at West 95th Street, Overland Park, Kansas. The portfolio contains 152,108 rentable square feet of various spaces that offer variety for companies and retailers seeking great visibility and proximity to a top tier employment pool. Originally constructed in 1984, the portfolio has been well maintained with major capital improvements. Recent improvements include exterior painting to further enhance curb appeal and visibility. Ownership recently signed a lease for a 13,700-square foot plus user which will bring the occupancy to 88% which offers investors a historically proven and stable cash flow with additional upside through lease-up at market rental rates and appreciation through increased demand in the immediate area. Ownership currently has an existing loan on the property with favorable terms that can be assumed by the new ownership group. Additional details regarding the existing loan assumption are including in the offering memorandum. Located at the southwest corner of Metcalf Avenue and 95th Street the property offers retail users great visibility and unparalleled traffic counts with close proximity to amenities and neighborhood nodes for office tenants. The property is accessed by West 95th Street and Metcalf Avenue with proximity to Highway 69 and Interstate 435 providing access to the entire Kansas City metro. 95 Metcalf benefits from several market drivers including Sprint, Black and Veatch Engineers, Waddell and Reed Financial Services, YRC Worldwide, Johnson County Community College, among other major employers in the area. The area continues to improve with new investment in the immediate area including the mixed-use redevelopment of the 62 plus acre Metcalf South Mall site directly east of the property. Construction on the site has already begun and delivery of the Lowe s anchor tenancy is expected early to mid Other proposed uses in this development include independent senior living and market rate apartments that will further add to the population in the immediate area. $16,000,000 Asking Price $ per square foot 10.66% Projected Unleveraged Return Attractive unleveraged return over 10 year hold 9 Buildings In-demand and market functional office and retail assets 152,908 Square Feet Providing investors mass and scale in a dynamic market Acres Large infill site on strong commercial corridor 88% Leased Quality tenancy, proven cash flow Ideal Location Kansas City s premier suburban office and retail market $578,000,000 + Total on-going investment in immediate 7 7

3 INVESTMENT HIGHLIGHTS PROPERTY DESCRIPTION UPSIDE POTENTIAL 95 Metcalf offers investors the opportunity to lease-up the remaining 18,392 square feet of vacant space at market rents and further diversify the tenant mix of the asset while increasing the net operating income going forward. INCREASING RENTAL INCOME The leases in place and the market leasing trends allow for inflation hedging with in place and market rental increases. STRONG INFILL LOCATION 95 Metcalf represents an extraordinary opportunity for an investor to acquire proven infill office and retail assets in the strongest suburban submarket in the Kansas City metro. ATTRACTIVE BASIS AT A DISCOUNT TO REPLACEMENT COSTS Barriers for competitive properties have been created with today s high construction costs. This provides an opportunity to purchase a well-maintained office and retail asset in a rapidly changing market at a price that is substantially below replacement cost. STRONG MARKET DYNAMICS The Kansas City office and retail market conditions continue to improve throughout the Kansas City metropolitan area. The market continues to tighten, as vacancy rates dropped over the past year and quoted rental rates increased in the majority oflocal submarkets. HIGH GROWTH AREA 95 Metcalf is located in the heart of Johnson County at one of the busiest intersections in the submarket. Johnson County has been recognized as one of the most affluent counties in the United States and continues to grow with a dynamic and healthy business atmosphere. Continued growth will be fueled by new investment and redevelopment in the immediate area totaling more than $578 million. Address: Rentable Square Footage: W 95th Street Overland Park, KS 152,908 SF Offering Price: $16,000,000 Property Type: Number of Buildings: Location: Year Built: 1984 Zoning: Parking: Multi-Tenant Office & Retail 9 Buildings Metcalf Avenue & 95th Street, Close proximity to Highway 69 CP-2, Planned General Business District 865 parking spaces Parcel Number: Legal Description: OVERLAND VILLAGE LTS 2 THRU 21 OPC 808A 2 Select Tenants: Number of Tenants: 48 City of Overland Park Population: Major Employers: Weight Watchers, PB&J Restaurants, Inc, ShowingTime 185,000 + City of Overland Park, Shawnee Mission School District, Johnson County Community College 8 8

4 LOCATION OVERVIEW SITE PLAN / AERIAL 10 10

5 $30 Million Redevelopment of Regency Park Shopping Center Lane4 Redevelopment of old south Metcalf Mall. Lowe s opening Spring Multiple pads under negotiation. 95 Metcalf Square 11 11

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10 LOCATION OVERVIEW Substantial Investment In Overland Park NAME OF PROJECT ADDRESS DESCRIPTION DOLLAR SIZE COMPLETION YEAR 1 Old Metcalf South Mall Redevelopment NE & SE Corner of 95 th & Metcalf Lowe s Home Improvement Store plus 16 retail parcels, a French Market, and 134 senior living units. $80 million Regency Shopping Center Redevelopment 9294 Metcalf Redevelopment of the 200,000 square foot plus retail center anchored by Michaels and Natural Grocers. $30 million Avenue Metcalf Ave. New construction of luxury apartment community consisting of 213 units, parking garage and center courtyard $32.3 million Q2, Johnson County Arts & Heritage Center 8788 Metcalf Ave Renovation of the former King Louie entertainment center to create the Johnson County Arts and Heritage Center. The center will be the new home for the Johnson County Museum, Theatre in the Park programs and other cultural programs, community events and elections. $22 million Promontory On the east side of Metcalf Avenue between 89th and 91st streets Redevelopment of the former Loehmann's Plaza shopping center with 130,000 square feet of new retail and 420 residential units $98 million Q4, Meadowbrook Redevelopment 9101 Nall Ave. The development includes a new 80-acre county park, a 330-unit senior-living facility, 54 single-family homes, 70 townhomes, 280 market-rate apartments and a 44-room boutique inn with supporting retail and restaurant uses $200 million+ Under Construction 7 Shawnee Mission School District 2015 Bond Phase One, Briarwood Elementary School 5300 W. 86th St New schools constructed on existing sites for Briarwood, Trailwood & Crestview Elementary schools, each consisting of about 65,000 square feet $51.26 million Completed Q4, Shawnee Mission School District Center for Academic Achievement 8200 W. 71st St. 131,000-square-foot consolidated central administrative site and learning laboratory for students in the district's Signature Programs $32.3 million Shawnee Mission Health Phase 1 Addition/Renovations Total 9100 W. 75th St. Hospital campus addition, expansion and upgrades $33 million Completed Q4, 2016 $ million 42 42

11 8 W St 3 7 Nall Ave W 87th St Metcalf Square 43 Lamar Ave Antioch Rd Nieman Rd 9 75th W 95th St 43

12 Newmark Grubb Zimmer 1220 Washington Street Suite 300 Kansas City, MO T MICHAEL VANBUSKIRK, SIOR, CCIM, CRE Executive Managing Director, Principal Investment Sales and Capital Markets mvanbuskirk@ngzimmer.com Newmark Knight Frank United States Office Locations CHRIS ROBERTSON, CCIM Director Investment Sales and Capital Markets crobertson@ngzimmer.com 48