The convergence of. into one urban campus 5offering shared spaces FOR A DYNAMIC, SOCIABLE ENVIRONMENT CREATIVE OFFICE BUILDINGS

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2 The convergence of CREATIVE OFFICE BUILDINGS into one urban campus 5offering shared spaces FOR A DYNAMIC, SOCIABLE ENVIRONMENT IN THE HEART OF DOWNTOWN BOSTON. 2

3 THE OPPORTUNITY Holliday Fenoglio Fowler, L.P. (HFF) has been exclusively retained to market The HIVE a collection of five buildings located at the intersection of Summer and Chauncy Streets in the heart of Downtown Boston. Together, these assets comprise 348,368 square feet of prime, ground floor retail and upper floor creative office space that is currently 95% leased. 5 BUILDINGS 20% RETAIL/TOTAL IN-PLACE NOI 348,368 SQUARE FOOTAGE 95 % OCCUPANCY 48 TENANTS 24% BELOW MARKET RENTS The sale presents an extraordinary opportunity to make a scalable investment in a portfolio that takes advantage of current market dynamics and offers long-term capital appreciation. The HIVE is being offered on a free and clear basis, allowing investors to take advantage of today s attractive debt markets or deploy a meaningful amount of equity. 3

4 Boston Common WASHINGTON STREET Post Office Square SUMMER STREET CHAUNCY STREET South Station 4

5 ASSET SUMMARY 38 CHAUNCY 55 SUMMER 71 SUMMER 77 SUMMER 87 SUMMER 132,772 SQUARE FEET 125,231 SQUARE FEET 15,951 SQUARE FEET 46,295 SQUARE FEET 28,119 SQUARE FEET 14 STORIES 10 STORIES 6 STORIES 11 STORIES 5 STORIES 99.6% OCCUPANCY 90.4% OCCUPANCY 100% OCCUPANCY 95.4% OCCUPANCY 91.1% OCCUPANCY 7.2% RETAIL 26.7% RETAIL 33.3% RETAIL 16.6% RETAIL 38.4% RETAIL UNMATCHED STREET RETAIL On-site amenities and street-level retail have become top priorities from both an investment and leasing perspective. As retail rents continue to run in Downtown Boston, vibrant street retail is in high demand and a key differentiator in drawing office tenants to the property. Tenants are willing to pay a premium in order to enjoy direct access to a lounge, fitness center, café, fast-casual restaurant, and other necessity based retailers. The HIVE greatly benefits from not only a first-class shared amenity center but also a dynamic retail line up anchored by CVS Pharmacy (one of the retail chain s top performing stores in the region), a brand-new Sweetgreen, Barry s Bootcamp, Drybar and others. 5

6 WHY THE HIVE? WHAT S THE BUZZ? DIVERSIFIED, EXCITING TENANTS OFFICE 2.0 MARKET LEADING AMENITY PACKAGE PUBLIC TRANSIT ACCESS URBAN RETAIL UNMATCHED DTX EXPOSURE Where else can investors find an institutional quality, urban creative office campus with ground floor retail space in one of the nation s top performing submarkets? 6

7 SO WHY THE HIVE? RIGHT SIZE The HIVE will allow a new owner to augment its existing footprint in the market or to create a beach-head investment. Additionally, the various sized floorplates across the portfolio allows an incoming investor to support tenants throughout any future growth or consolidation in order to keep them within the portfolio long-term. RIGHT PRODUCT Today s tenants are shifting away from Class A towers and seeking creative office space that provides a casual, welcoming environment in which to work within a conveniently located area. The HIVE provides tenants with just that. RIGHT RETAIL The HIVE offers 32,000 SF of premier street-level retail that includes first-class tenants such as CVS, Sweetgreen and Barry s Bootcamp, among others. With rents 28% below market, the Portfolio s eight retail tenants generate $2.7 million of revenue today, which equates to approximately 20% of the Portfolio s in-place revenue. RIGHT SITE The Portfolio offers investors a 1.06 acre development site in the heart of Downtown Boston. The opportunity to acquire such a site is exceptionally rare and provides investors with the ultimate covered land play. RIGHT NOW For these reasons, the HIVE is the perfect opportunity for investors looking to deploy capital in one of the nation s strongest markets. The HIVE provides for a scalable footprint of creative office space in Downtown Boston along with significant nearterm upside and long-term development potential a truly unique opportunity. RIGHT MARKET Downtown Boston is surging as the market welcomes a significant amount of new development as well as companies from other submarkets, or new to Boston entirely, looking to call Downtown home. The HIVE s strategic positioning along Summer and Chauncy Streets allows the Portfolio to benefit from all of the activity Downtown. 7

8 COLEMAN BENEDICT Senior Managing Director BEN SAYLES Director PATRICK MCANENY Senior Analyst CHRIS PHANEUF Managing Director MARK CAMPBELL Director TUCKER BURLEIGH Analyst hfflp.com