OFFERING SUMMARY
INVESTMENT OVERVIEW HFF, L.P. has been exclusively retained by the Owner to offer qualified investors the opportunity to purchase 3660 Regent (the Property ), a fully-leased, 158,728 square-foot office building located adjacent to Dallas / Fort Worth International Airport in the dynamic Las Colinas market, DFW s premier corporate destination. The Property features outstanding credit through investment-grade credit tenants occupying 64.2% of the building with rents 25.3% below market. The offering presents investors the opportunity to acquire a stable cash-flowing asset with remarkable credit in Dallas / Fort Worth, one of the nation s fastestgrowing and most vibrant markets. 2
PROPERTY OVERVIEW LOCATION: OFFICE MARKET: 3660 Regent Blvd Irving, TX 75063 Las Colinas/Freeport TENANT RENTABLE % OF PROPERTY LEASE EXPIRATION % B MKT AT EXPIRY TENANT INDUSTRY CREDIT RATING RENTABLE SQ. FT.: 158,728 FLOOR PLATE SQ. FT.: 79,364 YEAR BUILT: 1999 PERCENT LEASED: 100% SITE: 13.5 acres PARKING RATIO: 5.9 : 1,000 # OF TENANTS: 5 AVERAGE TENANT SIZE: 31,746 Ford Motor Credit Co 45,909 28.9% Dec-20 23.4% Financial Services BBB LoanMe 39,846 25.1% Apr-22 21.6% Financial Services Private Aviall Services, Inc. (Boeing) 39,580 24.9% Jun-23 28.9% Aerospace and Defense A Orbitz Worldwide 17,003 10.7% Jan-23 41.4% Leisure and Hospitality BBB- MetLife 16,390 10.3% Dec-19 14.5% Insurance A- TOTAL 158,728 100.0% 25.3% 3
INVESTMENT HIGHLIGHTS 100% LEASED WITH OUTSTANDING CREDIT Rents are on average 25.3% below market rates at tenant expiration Fully occupied with an average remaining lease term of 4.2 years 64.2% of the building s R is occupied by a company or a subsidiary of a company with investment grade credit Originally a Build to Suit for Ford Motor Credit Co., they have been an anchor tenant in the building since its completion Of the Fortune 500 tenants at the property, three are in the top 50 TENANT INDUSTRY BREAKDOWN 10% 11% Financial Services Aerospace and Defense Ford Motor Credit Company 45,909 PARENT COMPANY Ford Motor Company S&P CREDIT RATING BBB Metropolitan Property & Casualty Insurance Co. 16,390 PARENT COMPANY MetLife S&P CREDIT RATING A- Leisure and Hospitality 54% TICKER SYMBOL NYSE: F TICKER SYMBOL NYSE: MET 25% Insurance CURRENT STOCK PRICE $12.69 MARKET CAP $50.59 billion FORTUNE 500 RANKING 9 CURRENT STOCK PRICE $53.35 MARKET CAP $58.44 billion FORTUNE 500 RANKING 40 Orbitz 17,003 PARENT COMPANY Expedia, Inc. S&P CREDIT RATING BBB- TICKER SYMBOL NYSE: EXPE CURRENT STOCK PRICE $133.72 MARKET CAP $20.10 billion FORTUNE 500 RANKING 385 Aviall 39,580 PARENT COMPANY Boeing S&P CREDIT RATING A TICKER SYMBOL NYSE: BA CURRENT STOCK PRICE $175.56 MARKET CAP $108.72 billion FORTUNE 500 RANKING 24 4
SUPERIOR ACCESSIBILITY Dallas/Fort Worth International Airport Adjacent to the Property Fourth-busiest airport in the world 1,830 daily flights 66 million annual passengers 3660 Regent enjoys immediate access to virtually every employment, residential, and amenity base in the Metroplex via network of highways including I-635, I-35E, and SH-114 INSTITUTIONAL QUALITY ASSET Institutionally owned and maintained throughout its history Expansive and flexible floor plates with 10 ceilings offer high efficiency configurations Best-in-class parking ratio of 5.9:1000 EXCEPTIONAL IMMEDIATE AREA AMENITIES Numerous retail, hotel and restaurant options located within walking distance including Panda Express, Jimmy John s, McAlister s Deli, and the unique PINSTACK dining, bowling and entertainment destination coming Summer 2017 PORTFOLIO 5
INVESTMENT HIGHLIGHTS HIGH GROWTH OFFICE MARKET As of Q1 2017, Las Colinas average Class A rental rate is $28.36 per square foot, reflecting a 30% increase since Q1 2011 TTM Q1 2017 TOP DFW ABSORPTION MARKETS (000 S) Las Colinas 1,050 Las Colinas accounted for 69% of DFW s absorption from Q1 2016 Q1 2017 Far North Dallas 806 Occupancy in the Las Colinas/Freeport submarket, home to the Property, has increased 520 basis points since Q1 2011 Las Colinas/Freeport is second only to the Upper Tollway/West Plano in submarket net absorption year to date Uptown/Turtle Creek Northeast Ft Worth 101 176 South Ft Worth 48 Southwest Dallas 37 North Fort Worth 24 Ft Worth CBD 20 0 200 400 600 800 1,000 $24.00 $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 LAS COLINAS/FREEPORT RENTAL RATES V. OCCUPANCY Q1 2013 TTM Q1 2014 TTM Q1 2015 TTM Q1 2016 TTM Q1 2017 TTM 88.0% 87.0% 86.0% 85.0% 84.0% 83.0% 82.0% 81.0% 80.0% 79.0% 78.0% RENTAL RATES OCCUPANCY 6
DALLAS / FORT WORTH ECONOMIC OVERVIEW One of the most diverse economies in the U.S. ANNUAL POPULATION GROWTH RATES ANNUAL JOB GROWTH RATES 3.5% unemployment rate, well below the national average Over 119,300 jobs added in trailing 12 months as of February 2017. DFW, along with New York, were the only two MSAs nationwide to add more than 100,000 jobs during this period. From 2017 to 2021, the Dallas / Fort Worth MSA is expected to rank first in both population and job growth according to REIS, Inc. DFW was ranked as ULI s Emerging Trends #2 Top Market to Watch in 2017 4% 3% 2% 1% 0% -1% 1.81% 1.75% 2.07% 2.03% 1.92% 2.01% 1.97% 1.88% 1.83% 1.87% 0.99% 0.99% 1.00% 0.95% 0.96% 1.03% 1.03% 1.00% 0.96% 0.97% 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f 2021f DFW United States 5% 4% 3% 2% 1% 0% -1% 3.83% 3.63% 3.13% 3.08% 2.84% 3.12% 2.22% 2.27% 1.62% 2.42% 2.48% 2.13% 2.08% 1.50% 1.53% 1.75% 1.50% 1.04% 0.56% 0.31% 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f 2021f DFW United States 7
Las Colinas Urban Center Dallas CBD Corporate Campus Cypress Waters 1,000-acre Mixed-Use Development PINSTACK dining, bowling and entertainment destination coming Summer 2017 Hackberry Creek Single Family Development Irving Convention Center at Las Colinas Bridges Residential Community Headquarters Headquarters Headquarters N Belt Line Rd 39,000 VPD Element Dallas/Fort Worth Airport North Royal Crossing W Royal Ln Regent Blvd 19,000 VPD (2 miles) ADDITIONAL INFORMATION If you have any questions or require additional information, please contact: ANDREW LEVY Senior Managing Director alevy@hfflp.com 469.232.1961 TODD SAVAGE Managing Director tsavage@hfflp.com 469.232.1930 CHRIS MURPHY Associate Director cmurphy@hfflp.com 469.232.1941 ALEX DE LARREA Analyst adelarrea@hfflp.com 214.692.4710 ROSS CRAWFORD Analyst rcrawford@hfflp.com 214.692.4712 For information regarding debt structures on the property, please contact: CULLEN ADERHOLD Director caderhold@hfflp.com 469.232.1994 2323 Victory Avenue, Ste. 1200 Dallas, TX 75219 Tel: (214) 265.0880 Fax: (214)265.9564 www.hfflp.com 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 [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference 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 purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.