AN OFFICE INVESTMENT OFFERING IN BEVERLY HILLS, CALIFORNIA 2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF)
Investment Overview HFF, as the exclusive advisor, is pleased to present to qualified buyers the exceptional opportunity to acquire a 100% fee simple interest in 9171 Wilshire (the Property ), a 6-story, 106,890 square foot, value-add office investment located in the heart of Beverly Hills. Ideally positioned along the prestigious Wilshire Boulevard and adjacent to the world-renowned Golden Triangle, this irreplaceable Property features spectacular ocean and mountain views, modernized elevators and common areas, and subterranean parking ratio of 2.3 stalls per 1,000 square feet. 9171 Wilshire is an extremely rare opportunity to acquire an asset with significant upside in one of the most sought-after core markets in the world. Property Overview Net Rentable Area (SF): 106,890 % Leased: 85.6%* Year Built / Renovated: 1961/1997 No. of Floors: 6 Typical Floor Plates (SF): 22,123 *Percentage Leased is reflective of Re-Measured BOMA SF 2
Generational Acquisition Opportunity 9171 Wilshire is an irreplaceable office building ideally situated in one of the top performing and supplyconstrained submarkets on the West Coast. Through cosmetic capital investment, an investor has the opportunity to transform the asset into a core-quality building located in the epicenter of West Los Angeles booming technology and content industries. One of the most sought-after urban infill locations in the country, Beverly Hills is a world-wide destination for tourist, luxury retail and other unique amenities in addition to the strong demand from a wide variety of high-image companies that seek the cache of the Beverly Hills address. The top Penthouse floor offers a unique space and outdoor patio with full views of Los Angeles providing an opportunity to command a significant rental premium on 4% of the NRA. The Property has been institutionally owned and maintained with recent capital improvements of over $2.2 million since 2013. The Property features include 13 foot slab-floor to ceiling window lines, creative converted offices, and a spacious rooftop patio. The Property boasts a preliminary Energy Star rating of 95. Tenant INDUSTRY SF (BOMA) % of NRA RJ Mgt/ RJ Capital Professional Services IN-PLACE VS. MARKET 16,181 15.1% (40.1%) Premier Business Centers Real Estate 14,950 14.0% (23.5%) Mejia & Kaplan Financial 8,317 7.8% (22.6%) Protravel International Travel 8,110 7.6% (19.3%) Rodeo Realty, Inc. Real Estate 7,423 6.9% (44.8%) Avalon Entertainment Entertainment 6,754 6.3% (30.1%) 3
Unmatched Amenity Base The Golden Triangle, adjacent to the Property, is a premier tourist destination defined by its palm trees, high-street retail, celebrity sightings, and the extravagant style and glamour that permeate throughout the entire city. This premier location offers tenants not only a prestigious Beverly Hills address, but also direct access to affluent residential communities and five-star hotels and restaurants. As the fashion capital of the world, Beverly Hills local shopping scene emanates from Rodeo Drive, and features luxury retailers including Prada, Chanel, Louis Vuitton, Gucci, Cartier, Versace, Emporio Armani, and more. Beverly Hills is one of the most sought-after destinations in the country and home to the region s classiest and most exclusive restaurants, hotels, bars, and entertainment. Some notable tenants in the city are: Bars: Nineteen12, Bar Bouchon, 10, The Club Bar, Citizen, The Garden Bar Theaters: Clarity Theater, Rodeo Screening Room, Samuel Goldwyn Theater, Noisy Nest, Wallis Annenberg Center for the Performing Arts Parks and Recreational: Beverly Gardens Park, Tulip Sculptures and Lily Pond, Greystone Mansion Historic Estate, Will Rogers Memorial Park, Virginia Robinson Gardens Restaurants: Hotels: 4
Malibu Brentwood Bel-Air Century City Golden Triangle WALLIS ANNENBURG CENTER FOR THE PERFORMING ARTS Santa Monica Boulevard 10 RODEO SCREENING ROOM CLARITY THEATER Wilshire Boulevard 5
Strong Historial Performance with Significant Upside Potential Since 2007, the Property has achieved an average occupancy of over 91.4%, outpacing the overall Beverly Hills office market at 90.7%. The Property, situated just outside the Golden Triangle, offers the upside of relatively depressed in-place rents and the security of tenant overflow from the expensive Golden Triangle in a down market. Current in-place rents are approximately 23.7% below market rents providing investors with significant mark-to-market opportunities as existing leases roll to market rates With tenants encompassing nearly 23% of the rentable area expiring in the first three (3) years, investors can generate an incremental $1.2 million in NOI The Property s broad tenant demand is demonstrated by the current rent roll diversity, which includes tenants from the entertainment, financial, legal, medical, and real estate sectors Ground floor retail suites draw traffic, offer employees amenities, and drive up rental rates 6
World-Class Beverly Hills Identity for Office Tenancy Beverly Hills is renowned across the globe for unparalleled luxury, trailblazing fashion, and five-star accommodations. In accordance with its reputation, the Beverly Hills office submarket is one of the strongest in the nation, highlighted by its robust rental rates, the highest of any submarket in all of Los Angeles County. Acquisition opportunities in this supply-constrained area are extremely rare, as only 107,562 SF (2.2% of supply) has been delivered in the last 7 years. The elegance and allure of Beverly Hills have translated into recent record-breaking office investment sales prices in excess of $1,000 PSF. Beverly Hills has experienced historically consistent rent growth, with year-over-year rents rising since 2012 Robust leasing demand and explosive rental rate growth have driven a total increase in asking rates of 47% over the last 5 years Adjacent Golden Triangle average office rents of $6.25-$7.00 are 60% higher than the market rents at 9171 Wilshire Beverly Hills office vacancy has decreased dramatically from 14.5% in 2011 to the current low of 8% 9171 Wilshire will trade at a significant discount to today s replacement cost of +/-$1,000 PSF 7
8
Outstanding Accessibility Highlighted by Approved Metro Purple Line The Property is ideally located along one of West Los Angeles s major thoroughfares and the future Metro route, and as a result has a plethora of convenient transportation options. The proposed Metro Purple Line Extension was recently approved and the second phase is set to break ground in 2018. The route will extend along Wilshire Boulevard, passing directly in front of 9171 Wilshire. Centrally located between DTLA, Hollywood, Century City, and West LA Golden Triangle lies at the intersection of Wilshire Blvd. and Santa Monica Blvd. 405 & 10 Freeway Access (1-2 miles) In 2015, a Bus-Only lane project was completed on Wilshire Boulevard that extends from Downtown to the edge of Santa Monica 9
AN OFFICE INVESTMENT OFFERING IN BEVERLY HILLS, CALIFORNIA INVESTMENT SALES ADVISORS - HFF DEBT ADVISORS - HFF RYAN GALLAGHER Sr. Managing Director T: 949.798.4100 rgallagher@hfflp.com CA Lic. #01269918 ANDREW HARPER Managing Director T: 310.407.2139 aharper@hfflp.com CA Lic. #01319640 MATT FISHER Analyst T: 310.407.2121 mfisher@hfflp.com CA Lic. #02012875 PAUL BRINDLEY Sr. Managing Director T: 310.407.2112 pbrindley@hfflp.com CA Lic. #01173794 TODD SUGIMOTO Managing Director T: 310.407.2100 tsugimoto@hfflp.com CA Lic. #01264139 2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. 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.