INVESTMENT GRADE TENANCY 35% leased to United Healthcare and Fresenius Medical Care MARK-TO-MARKET OPPORTUNITY In-place rents currently 12% below market THE OFFERING HFF has been exclusively retained to offer to qualified investors an opportunity to acquire Plano Corporate Center I & II (the Property ), two Class A office buildings located within Dallas / Fort Worth s flourishing Plano / Richardson submarket. The area has seen tremendous expansion as it has been the preferred location for corporate users and has benefited from recent major corporate relocations, including Toyota, State Farm, and JPMorgan Chase. Comprised of 308,909 square feet, the Property is currently 94% leased with 5.6 years of weighted average remaining lease term and strong recent leasing momentum as evidenced by the 162,979 square feet of leasing in the past nine months. Plano Corporate Center I & II provides investors the opportunity to acquire an asset with stable, longterm, and investment grade cash flows at an attractive yield and discount to replacement cost. 2
TOP PERFORMING SUBMARKET #1 in Absorption since 2013 5.1 million square feet 9% rent growth since Q1 2016 STRONG AMENITY BASE Adjacent to multiple mixed-use developments and University of Texas at Dallas INSTITUTIONAL QUALITY ASSET Recently updated amenities, Class A buildouts and efficient floor plates catering to a range of users with various size requirements PLANO CORPORATE CENTER I PLANO CORPORATE CENTER II ADDRESS 2201 West Plano Parkway 2301 West Plano Parkway RBA 154,220 SF 154,689 SF STORIES Three (3) Three (3) LEASED 100% 89% YEAR BUILT 1999 2001 SITE 10.04 acres 9.97 acres PARKING RATIO 5.00 / 1,000 SF 6.00 / 1,000 SF 3
SUPERIOR TENANCY Comprised of a diverse tenant base and stabilized by an impressive percentage of credit worthy tenants STABLE CASH FLOW WITH UPSIDE POTENTIAL 96% leased with 5.6 years of weighted average lease term (WALT) for overall Property Below market rental rates with upside potential on rollover over 40% rollover in next five years 4
11% 5% 2% MEDICAL LEGAL SERVICES 18% ENGINEERING & CONSTRUCTION PROFESSIONAL & BUSINESS SERVICES TECHNOLOGY & INFORMATION 26% CONSUMER PRODUCTS FINANCE 31% 6% SYNERGISTIC MIX OF TENANT INDUSTRIES RENT ROLL IS REFLECTIVE OF PLANO S ROBUST AND EXPANDING ECONOMY MAJOR TENANCY CHART Tenants SF Credit Rating % of Leased GLA % Below Market Expiration Date Remaining Lease Term (Years) 75,825 25% 18% Aug-23 5.9 55,824 A3 18% 11% Nov-19 2.2 52,206 Baa3 17% 12% Sep-28 11.0 26,189 8% 9% Jun-27 9.7 Totals / Averages 210,044 68% 14% 6.7 5
HISTORIC DOWNTOWN PLANO CITYLINE - STATE FARM & RAYTHEON REGIONAL HQ / HUB - 3,925 RESIDENTIAL UNITS - ALOFT HOTEL - 31 RESTAURANTS & 13 SERVICES + RETAIL TELECOM CORRIDOR RICHARDSON P R O POSED ORANGE LINE BC STATION PARTNERS - 1.250 RESIDENTIAL UNITS - 100,000 SF RETAIL - 2 HOTELS PALISADES CENTRAL - LIBERTY MUTUAL REGIONAL HQ - 1,510 RESIDENTIAL UNITS + HOMES - 200,000 SF RETAIL + RESTAURANTS - 300 HOTEL ROOMS CANYON CREEK COUNTRY CLUB HERITAGE CREEKSIDE - 1,400 RESIDENTIAL UNITS - MULTIPLE RESTAURANTS & RETAIL CUST E R RD HALL PARK AT RICHARDSON - 417 RESIDENTIAL UNITS - 25,000 SF RETAIL R E N N ER TRAIL / SPRING CREEK TRAIL COT TON BELT (UNDER CONSTRUCTION) ROBUST 24-HOUR LOCATION Plano is enjoying a transformation into a P L ANO PA RKWAY 24-hour location as a result of substantial mixed-use development and growth of key economic drivers. TOP PERFORMING SUBMARKET Given the strong market fundamentals of the Richardson / Plano submarket, with occupancy rates at 87% and rental rates increasing 9% in the last twelve months, prospective investors are poised to capitalize on this Property in a market with favorable economic conditions. 6
DALLAS / FORT WORTH S PREEMINENT CORPORATE ADDRESS Plano s flourishing center-of-the-market location has become a magnet for corporate headquarters and major corporate operations. PLANO ACCOLADES N O. 3 BEST PLACES TO LIVE MONEY MAGAZINE N O. 1 SAFEST CITIES IN AMERICA FORBES N O. 2 BEST CITIES FOR FAMILIES WALLET HUB PLANO IS CURRENTLY HOME TO SIX FORTUNE 1000 COMPANIES A multitude of blue-chip firms and several technology giants attract highly skilled workers throughout the nation, partially attributable to the region s attractive advantages: TOP 5 PERFORMING CITIES IN THE NATION MILKEN INSTITUTE 4.2% PLANO UNEMPLOYMENT RATE DFW: 4.3% TEXAS: 5.0% N O. 1 CITY FOR FINDING A JOB FORBES LOW-COST OF LIVING HIGH-QUALITY CORPORATE ENVIRONMENTS ACCESS TO TOP-TIER SCHOOLS HIGHLY EDUCATED & SKILLED WORKFORCE LOW-TAX 7
EXCEPTIONAL JOB CREATION DFW has been ranked 1st in both population and job growth for the past five years and is forecasted to maintain those rankings from 2017 to 2021 4.3% UNEMPLOYMENT RATE Well-below the national average 4TH HIGHEST CONCENTRATION OF HEADQUARTERS In the United States 8
DFW S DIVERSE AND ROBUST ECONOMY Led the nation in job creation for 2016 with 135,400 new jobs ULI S NO. 1 (2016) & NO. 2 (2017) EMERGING TRENDS MARKET TO WATCH DFW is an 18-hour market that is rapidly approaching the level where it is considered as a core, gateway market 9
ADDITIONAL INFORMATION If you have any questions or require additional information, please contact: Debt Service ANDREW LEVY Senior Managing Director TODD SAVAGE Managing Director CHRIS MURPHY Associate Director PARKER MCCORMACK Associate Director MATT MCCARNEY Analyst PHOEBE BRENT Analyst STEVE HELDENFELS Managing Director alevy@hfflp.com 469.232.1961 tsavage@hfflp.com 469.232.1930 cmurphy@hfflp.com 469.232.1941 pmccormack@hfflp.com 469.232.1952 mmccarney@hfflp.com 469.232.1955 pbrent@hfflp.com 214.692.4714 sheldenfels@hfflp.com 469.232.1924 2017 Holliday Fenoglio Fowler, LP ( HFF ) and HFF Securities LP ( HFFS ) 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, advisory services, structured finance, private equity, loan sales, and commercial loan servicing. Holliday Fenoglio Fowler, L.P. ( HFF ) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.