INDY TECH CAMPUS Offering Memorandum
Indy Tech Campus Table of Contents 2
Table of contents Executive Summary...5 Property Overview...9 Location Description...29 Market Overview...35 About JLL...40 3
Indy Tech Campus Executive Summary 4
Executive summary Angie s List East Washington Campus, located in Indianapolis, Indiana, consists of 41 different parcels that contain office buildings, flex/warehouse buildings, parking lots and a cafe. The buildings total approximately 190,000 square feet, situated on 17.56 acres of land. This unique piece of real estate is situated less than one mile from Monument Circle less than 0.2 miles to the I-65 and I-70 exits. The property exhibits a campus feel with a mix of office and flexible buildings, including a network operation center, diner, modern cafe, meeting and conference center, and an unfinished brick-andtimber warehouse. The campus also includes 994 paved parking spaces to accommodate the density of the campus, with several parcels of unpaved land that could add additional density. The distinctive facade of the buildings fronting Washington Street reflect the history of the corridor and clearly define the unique campus setting. 5
Indy Tech Campus Executive Summary Value-add campus opportunity The Angie s List Campus is a unique re-development opportunity that offers the largest land parcel assemblage with proximity to downtown. Opportunity to create income in the immediate future, based on several newly renovated office buildings that are occupant-ready. Dense, controlled parking, creating an immediate draw for activity in the downtown area without parking costs. Visibility and accessibility from the interstate and downtown create a unique branding opportunity. Located directly in the path of development with the re-development of the Ford Plant and the impending relocation of the justice center, clearing the path to connect downtown to the campus. 6
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Indy Tech Campus Property Overview 8
Property Overview The urban campus provides a unique opportunity for a corporate campus environment, a multiuse multi-tenant campus environment, or a redevelopment opportunity. The campus has been maintained and continually upgraded over time to provide top amenities for the employees that work on campus. 25 Buildings +190,000 sf +17.5 acres +1,000 Parking Spaces 9
Indy Tech Campus Property Overview Fitness Center / Workout Facility Conference Center Diner Moto Café Cultural Trail 1/2 mi Campus Amenities Modernized Moto Café with an event space above (15) Ample Parking Classic diner in the middle of campus for off-site meetings (13) State of the art conference center (14) Urban setting with walking access to downtown (0.8 miles to Monument Circle) Existing fitness center / workout facility (12) A half mile from the Cultural Trail (walking / bike trail) 10
Dorman 930 & 934 East Washington Street Office Year Built 1920 Renovated 2017 11,605 sf / 0.22 ac Parcel Number 1084196; 1063332 Number of Floors 2 Restrooms 4 Roof 2017 MU2 Nut house 954 East Washington Street Office Year Built 1920 Renovated 2011 3,000 sf / 0.13 ac Parcel Number 1045329 Number of Floors 2 Restrooms 2 Roof 2012 MU2 11
Indy Tech Campus Property Overview Swamp 958-960 East Washington Street Office Year Built 1880 Renovated 1995 8,784 sf / 0.15 ac Parcel Number 1006306 Number of Floors 2 Restrooms 5 Roof 2017 MU2 Penthouse 1002 & 1004 East Washington Street Office Year Built 1880 Renovated 2016 17,522 sf / 0.91 ac Parcel Number 1070172 Number of Floors 3 Restrooms 8 Roof 2016 MU2 12
Old Moto Café 1006 East Washington Street Office Year Built 1880 Renovated N/A 4,000 sf / 0.91 ac Parcel Number 1070172 Number of Floors 1 Restrooms 0 Roof 2017 MU2 Firehouse 1030 East Washington Street Office Year Built 1880 Renovated 2014 8,608 sf / 0.36 ac Parcel Number 1099548 Number of Floors 3 Restrooms 4 Roof 2017 MU2 13
Indy Tech Campus Property Overview Meeks / Campaign 1032 East Washington Street Office Year Built 1950 Renovated 2015 8,030 sf / 0.16 ac Parcel Number 1059846 Number of Floors 1 Restrooms 2 Roof 2015 MU2 IBEW 1038 East Washington Street Office Year Built 1950 Renovated N/A 3,357 sf / 0.18 ac Parcel Number 1012659 Number of Floors 1 Restrooms - Roof N/A MU2 14
NOC 902 East Market Street Network Operation Center Year Built 1950 Renovated 2015 6,700 sf / 0.64 ac Parcel Number 1082283 Number of Floors 1 Restrooms 2 Roof 2015 MU2FF Glass building 25 North Pine Street Office Year Built 1900 Renovated 2013 16,700 sf / 0.57 ac Parcel Number 1045749 Number of Floors 1 Restrooms 2 Roof 2013 MU2FF 15
Indy Tech Campus Property Overview Marble 933 & 919 East Market Street Office Year Built 1950 Renovated N/A 8,909 sf / 0.90 ac Parcel Number 1080676 Number of Floors 1 Restrooms 0 Roof N/A MU2 Last Chance 1024 & 1000 East Market Street Gym / Flex Year Built 1950 Renovated N/A 4,447 sf / 1.56 ac Parcel Number 1008412 Number of Floors 1 Restrooms 2 Roof 2008 MU2 16
Diner 1023 East Market Office Year Built 1937 Renovated N/A 471 sf / 0.13 ac Parcel Number 1063371 Number of Floors 1 Restrooms 0 Roof 2006 MU2 Tile Building 1025 East Market Street Office Year Built 1940 Renovated 2014 6,565 sf / 0.32 ac Parcel Number 1022516 Number of Floors 1 Restrooms 2 Roof 2014 MU2 17
Indy Tech Campus Property Overview MOTO CAFé (Dev Shed) 1026 East Market Street Café Year Built 1960 Renovated 2015 1,873 sf / 0.32 ac Parcel Number 1022516 Number of Floors 1 Restrooms 2 Roof 2015 MU2FF Yellow House 1042 & 1046 East Market Street Office Year Built 1880 Renovated 2006 4,334 sf / 0.12 ac Parcel Number 1039015 Number of Floors 3 Restrooms 5 Roof 2015 D8 18
Blue House 1048 & 1050 East Market Street Office Year Built 1880 Renovated 2006 3,849 sf / 0.12 ac Parcel Number 1032116 Number of Floors 3 Restrooms 2 Roof 2017 D8 Carriage House 14 Cruse Street Office Year Built 1910 Renovated 1995 2,107 sf / 0.15 ac Parcel Number 1006306 Number of Floors 1 Restrooms 2 Roof 2017 MU2 19
Indy Tech Campus Property Overview Westside day care 118 Herman Street Day Care Year Built 1880 Renovated 2004 655 sf / 0.14 ac Parcel Number 1031474 Number of Floors 1 Restrooms 1 Roof 2006 MU2FF Eastside day care 124 Herman Street Day Care Year Built 1880 Renovated 2004 650 sf / 0.14 ac Parcel Number 1102975 Number of Floors 1 Restrooms 1 Roof 2006 MU2FF 20
Bowes building 903 East Ohio Street Office Year Built 1910 Renovated 2017 6,313 sf / 0.77 ac Parcel Number 1105048 Number of Floors 1 Restrooms 6 Roof 2017 MU2FF Red house 130 Dickson Street Office Year Built 1920 Renovated 2010 3,066 sf / 0.21 ac Parcel Number 1068763 Number of Floors 2 Restrooms 2 Roof 1995 MU2 21
Indy Tech Campus Property Overview Fred s house 1010 East Market Street Office Year Built 1920 Renovated 2006 3,500 sf / 0.92 ac Parcel Number 1037937 Number of Floors 3 Restrooms 5 Roof 2006 MU2FF dalton building 1050 East Washington Street Warehouse Year Built 1920 Renovated N/A 48,396 sf / 0.91 ac Parcel Number 1091677 Number of Floors 2 Restrooms 0 Roof N/A I3 22
Dove house 14 North Highland Avenue Office Year Built 1920 Renovated N/A 6,605 sf / 0.12 ac Parcel Number 1024405 Number of Floors 3 Restrooms 5 Roof 1995 D8 23
Indy Tech Campus Property Overview N East Ohio Street North Highland Avenue 21 35 I-65 20 19 12 34 East Market Street 36 9 16 31 11 22 26 25 13 11 10 23 18 3 1 14 28 29 30 2 39 4 4 24 5 6 7 8 37 Southeastern Avenue East Washington Street 32 27 15 3 1 North Pine Street 17 38 41 40 33 LEGEND Parking Buildings 24
Property Tax Table PROPERTY NAME PROPERTY ADDRESS SF ZONING ASSESSED VALUE ACREAGE 1 Dorman 930 & 934 E. Washington St. 11,605 MU2 $97,800.22 2 Nut House 954 E. Washington St. 3,000 MU2 $202,200.13 3 Swamp 958-960 E. Washington St. 8,784 MU2 $338,200.15 4 Penthouse 1002 & 1004 E. Washington St. 17,522 MU2 $663,900 See 24 5 Old Moto Cafe 1006 E. Washington St. 4,000 MU2 $663,900 See 24 6 Firehouse 1030 E. Washington St. 8,608 MU2 $327,100.36 7 Meeks/Campaign 1032 E. Washington St. 8,030 MU2 $135,400.16 8 IBEW 1038 E. Washington St. 3,357 MU2 $101,100.18 9 NOC 902 E. Market St. 6,700 MU2FF $144,400.64 10 Glass Building 25 North Pine St. 16,700 MU2FF $14,800.57 11 Marble 933 & 919 E. Market St. 8,909 MU2 & MU2FF $516,800 See 25 12 Last Chance 1024 & 1000 E. Market St. 4,447 MU2 & MU2FF $166,000 1.56 13 Diner 1023 E. Market St. 471 MU2 $68,100.13 14 Tile Building 1025 E. Market St. 6,565 MU2 $334,900 See 26 15 Moto Cafe (Dev Shed) 1026 E. Market St. 1,873 MU2FF $334,900 See 26 16 Yellow House 1042 & 1046 E. Market St. 4,334 D8 & MU2FF $224,900.12 17 Blue House 1048 & 1050 E. Market St. 3,849 D8 $130,900.12 18 Carriage House 14 Cruse St. 2,107 MU2 $338,200.15 19 Westside Day Care 118 Herman St. 655 MU2FF $47,800.14 20 Eastside Daycare 124 Herman St. 650 MU2FF $44,500.14 21 Bowes Building 903 E. Ohio St. 6,313 MU2FF $347,000.77 22 Parking 902 E. Washington St. MU2FF $13,800.23 23 Parking 912 E. Washington St. MU2FF $20,200.33 24 Parking 1014 E. Washington St. MU2 $11,900.v91 25 Parking 935 E. Market Street MU2 $516,800.90 26 Parking 1019-1021 E. Market Street MU2 $334,900.32 27 Parking 1043 E. Market Street MU2 $60,200.58 28 Parking 1045 E. Market Street MU2 $77,400.57 29 Parking 1049 E. Market Street MU2 $19,000.50 30 Parking 1117 E. Market Street MU2 $77,100.43 31 Parking 919 E. Market Street MU2FF $30,000.20 32 Parking 50 Shelby Street MU2 $146,500 1.10 33 Parking 966 E. Maryland MU2 $64,900.51 34 Parking 114-126 Dickson St. MU2 $101,300.25 35 Red House 130 Dickson St. 3,066 MU2 $192,500.21 36 Fred s House 1010 E. Market St. 3,500 MU2FF $351,400.92 37 Dalton Building 1050 E. Washington St. 48,396 I3 $651,900.91 38 Reliable Insurance Building 1122 E. Washington St. 1,846 I3 $105,900.49 39 Dove House 14 N. Highland 6,605 D8 $141,700.12 40 Taco Lot 1214 Southeastern Ave. I3 $67,800 1.77 41 Home Elevator Lot 1142 Southeastern Ave. I3 $215,700.77 TOTALS 191,892 $5,685,700 17.56 25
Indy Tech Campus Property Overview Upgrades The campus has been upgraded and maintained as needed over the years of occupancy. Several buildings have been fully renovated to class A office space. The upgraded buildings include: Meeks/Campaign Glass Building Moto Café Bowes Building NOC Firehouse 26
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Indy Tech Campus Location Description Monument Circle East Ohio Street North Pine Street East Market Street Southeastern Avenue North Highland Avenue East Washington Street 28
Location Description New York Street Massachusetts Avenue With over 1.9 million people in the Metropolitan Statistical Area (MSA), the city of Indianapolis is the 13th largest in the nation, the second largest in the Midwest after Chicago and the state capital of Indiana. In 2015, the Bureau of Economic Analysis concluded the gross domestic product (GDP) for the Indianapolis MSA was 134 billion, making it one of the 30 largest GDPs in the U.S. out of 363 metropolitan areas. Indianapolis tremendous growth as a business center and its reputation as a professional sports capital have captured the attention of the cities across the nation. A new entrepreneurial attitude has enveloped Indianapolis and with it has come great economic vitality. The Hoosier capital consistently ranks as one of the cleanest and safest cities in the nation, and its cost of living, cost of doing business and unemployment rates remain below the national average. In 2016, Tax Foundation ranked Indianapolis #5 on its list of Best State s for Business in the Midwest. Accordingly, Indiana s central business district population has grown by 92% since 2010, largely due to the Millennial demographic shift to the urban core. Vermont Street As an economic powerhouse of the Midwest, the Indianapolis region has a vibrant and favorable business climate that has diversified far beyond its historical manufacturing roots in to the expanding insurance, healthcare, life sciences, pharmaceutical, and technology industries. December 2016 employment reached 3.2 million, with a 4.0% unemployment rate well below the national average of 4.7%. Further, Indianapolis has consistently ranked as one of the most affordable places to live and conduct business in the nation, according to Forbes Magazine. At the end of December 2016, the median home price range in the Indianapolis metropolitan areas was $134,000, compared to the national median home price of $195,700 during the same period, according to Zillow. Overall, the city s cost of living is much less than that of other comparable U.S. cities, with a cost of living index of 87.9, compared to a national average of 100. Accordingly, Indianapolis has a lower cost of living than cities such as Los Angeles, Chicago, Denver, Minneapolis, Kansas City, Dallas and St. Louis. 29
Indy Tech Campus Location Description EMERGING INDUSTRY Long known as the Crossroads of America, Indianapolis has now emerged as one of the nation s top four life sciences communities. The Central Indiana region offers numerous advantages for life sciences companies including diverse industry base, intellectual capital, academic partnerships and business and industry collaborations. Indianapolis has become a leader in the life sciences industry 300 58,000 life sciences business founded since 2002 employees working in the life sciences industry $1 Billion 6 life sciences projects worth over completed in 2013 & 2014 As the life sciences industry has grown in Indianapolis in recent years, so too has the technology and startup scene. The decision of cloud computing giant Salesforce to lease approximately 228,000 square feet in renamed Salesforce Tower has had a profound impact on Indianapolis CBD tech leasing activity, of which Angie s List campus is ideally situated to leverage. Salesforce has been a game-changer for the Indianapolis CBD through its positive buzz in the market, while also stabilizing competitors, ultimately ensuring a push for aggressive rents. As such, Salesforce has driven downstream leasing demand as tech vendors desire to be new the tech giant. 30
16 TECH CAMPUS The addition of Salesforce has changed the perception of Indianapolis as an attractive location for highly educated college graduates and has cemented Indianapolis position in the market as a major tech hub. Other companies such as Indianapolis tech venture, High Alpha, have begun heavily investing capital into startups in the region. Indianapolis has focused on developing a technology cluster called 16 Tech, which is a convergence of leading life sciences, biotech, information technology and motorsports businesses downtown. The development of 16 Tech s Phase 1 build-out over the next ten to twenty years will be accompanied by over 2,600 tech jobs, of which 61 percent are expected to be entry-level and middle skills jobs, while the remaining 39 percent will be high-skill jobs. commits to 175 new highwage tech jobs by 2021 will add approximately 800 new jobs by 2021 has raised $35M for investment in local cloud-based software startups High-tech software and services grew by 18% from 2012 to 2014 6th best U.S. city for obtaining tech jobs 31
Indy Tech Campus Location Description Culture and Amenities The thriving arts scene in Indianapolis is highlighted by the Indianapolis Museum of Art, the Indianapolis Symphony Orchestra, the Eiteljorg Museum of American Indians and Western Art, and the Children s Museum. Another popular destination includes Massachusetts Avenue, or Mass Ave considered Indianapolis art and theater district. Offering residents and visitors a unique experience, Mass Ave s five-block area is downtown Indianapolis destination for theater, restaurants, art galleries, and eclectic, independent boutiques. Indianapolis offers one of the nation s most unique, world class urban bike and pedestrian paths in The Indianapolis Cultural Trail. Spanning eight (8) miles, the Indianapolis Cultural Trail seamlessly connects neighborhoods, cultural districts, and entertainment amenities while serving as the downtown hub for central Indiana s vast greenway system. The Trail connects Indianapolis six (6) cultural districts ultimately promoting to both residents and visitors the city s cultural assets. #3 TOP 10 BEST DOWNTOWNS Livability - 2014, 2015 INDIANAPOLIS IS HOME TO THE WORLD S LARGEST CHILDREN S MUSEUM 32
Talented Workforce Indianapolis outperforms the state of Indiana in bachelor s and graduate degree attainment, with 28.8 percent of Indianapolis population having obtained a bachelor s degree or higher compared to just 23.2 percent for the entire state. In turn, a larger percentage of Indianapolis population has received a bachelor s degree or higher when compared to other major cities such as Philadelphia, San Antonio, Phoenix and Baltimore. Moreover, 5.2 percent of the Indianapolis population earns over $150,000 per year. Over 64,000 higher-education students live in downtown Indianapolis in order to attend several prestigious institutions, including Indiana University- Purdue University Indianapolis, Butler University and the University of Indianapolis. In addition to a strong education base, businesses benefit from the close proximity of other nationally recognized schools such as Indiana University, the University of Notre Dame, Purdue University and Rose- Holman Institute of Technology. 28.8% of Indianapolis population earned a bachelor s degree or higher, 5.6% above state average 5.2% of Indianapolis population earns $150,000+ 64,000+ higher-education students live downtown Indianapolis 33
Indy Tech Campus Market Overview 34
Market Overview The Indianapolis metropolitan office market contains approximately 32 million square feet of inventory comprised of both suburban and CBD office space. The CBD office market accounts for approximately 38 percent of the total space in the Indianapolis metropolitan area. The tables on the following two pages provide a brief snapshot of the Indianapolis metropolitan office market. 35
Indy Tech Campus Market Overview Breakdown of Net Absorption The Indianapolis CBD office market is comprised of approximately 12.6 million square feet of office space, of which 47 percent is Class A. Since 1Q2015, the Indianapolis CBD has experienced positive rental rate growth of 5.4 percent, while direct vacancy declined 22 percent. Over this same time period, total Indianapolis CBD year-to-date net absorption increased by approximately 53,000 square feet far outpacing the suburbs, which stood at negative 129,000. More specifically, Indianapolis CBD Class A rental rates remained resilient, increasing 7.2 percent since the beginning of 2015 while CBD Class A vacancies decreased approximately 14.4 percent, exemplifying strong fundamentals and tenant demand in the market. 200,000 CBD Suburban 150,000 Total Net Absportion (s.f.) 100,000 50,000 0-50,000-100,000-150,000-200,000 2015 2016 YTD 2017 36
CBD Class A Vacancy vs Ask Rates 21% $23.50 20% 19.2% 19.0% 19.9% 19.6% 19.6% 19.4% $23.00 19% 18% 17.5% 18.3% $22.50 17% 16.3% $22.00 16% 15% 15.4% 14.6% $21.50 14% $21.00 13% $20.50 12% 11% $20.00 10% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 $19.50 Since 1Q2015 5.4% 22% 7.2% Indianapolis CBD rental rate growth Vacancy decline in Indianapolis CBD CBD Class A vacancies decreased approximately Increase in CBD Class A rental rates 14.4% 37
Indy Tech Campus Market Overview TENANT Migration Companies whose success is dependent on ideas and innovation are acutely aware of the advantages the CBD provides in accessibility to talent. The growing trend of companies relocating to downtown Indianapolis, coupled with accelerating job growth already occurring in the city, will lead to continued market improvements including increased leasing velocity, positive absorption and rental rate appreciation. Distribution Suburban Distribution (2014 - Present) Keystone - 55,777 sf North Meridian / Carmel - 63,912 sf 36% Northeast - 54,437 sf Northwest - 9,400 sf Other - 86,787 sf 13% 15% 13% Leases Annual Migration Leases 2014 2015 2016 7 Deals - 68,926 sf 9 Deals - 102,804 sf 25 Deals - 184,714 sf New to Market - 150,868 sf Suburban to CBD Total - 421,181 sf 21% 2% 2017 3 Deals - 64,737 sf Industry 28% 22% 11% 8% 8% 6% 16% Where did they go? Class A 56% 234,818 sf Class B 35% 146,563 sf Class C 9% 39,800 sf Real Estate Technology Non-Profit Business Services Finance Consulting Other 44 Tenants New to CBD 16 of the 44 are new to market 38
Tech-Focused urban center momentum The Indianapolis CBD market continues to experience unprecedented demand, while new supply remains historically limited with 25,000 square feet to be delivered in 2Q2017, of which only 2,400 square feet will be available. The desire of suburban firms to access talent that prefer to live and work in downtown has created a consistent pipeline of demand that continues to garner national attention. Since 1Q2015, Indianapolis central business district has seen a large, positive swing in year-to-date net absorption that currently stands at 37,677 square feet, up from its 1Q2015 low of negative 15,000 square feet. Further exemplifying Indianapolis recent growth trend, overall direct vacancy has decreased 14 percent from 1Q2015 to 1Q2017. #1 MOST AFFORDABLE CITY FOR YOUNG URBAN PROFESSIONALS Locality.com - 2014 Forbes - 2016 FOR RECENT #2 BEST CITY FOR MID-CAREER PROFESSIONALS #2 BEST CITY TECH GRADS DataFox - 2016 #7 AMERICA S MOST UNDERRATED CITY FOR MILLENNIALS The Huffington Post - 2015 #10 TOP MARKET FOR TECH LEASING JLL - 2016 #6 TOP CITY FOR TECH JOBS #9 CITY CREATING THE MOST TECHNOLOGY JOBS Fast Company - 2016 Forbes - 2016 39
About Jll JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com. MATT WAGGONER +1 317 810 7368 matt.waggoner@am.jll.com MIKE CORR +1 317 810 7177 michael.corr@am.jll.com