AETNA REGIONAL HEADQUARTERS 3721 TecPort Drive Harrisburg, PA 17111
CAFETERIA
THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ) has been retained to arrange the sale of Aetna Regional Headquarters (the Property ), a 143,220 SF office asset located in Harrisburg, Pennsylvania. The Property, one of Aetna s four regional headquarters in the state, is 100% leased to Aetna (89.8%) and TransCore (10.2%), two growing, investment grade companies with S&P credit ratings of A and BBB-, respectively. The Property is part of the TecPort Business Center, a 102-acre business park surrounded by 5 major hotels and immediately adjacent to the Harrisburg Mall, a regional retail destination which attracts over 4 million annual visitors. Aetna Regional Headquarters is being offered free and clear of existing financing, and represents an opportunity to acquire a stabilized asset with credit tenants in one of the most exciting mixed-use aggregations in Harrisburg, PA. PROPERTY OVERVIEW ADDRESS 3721 TecPort Drive Harrisburg, PA 17111 TOTAL LEASABLE AREA 143,220 SF OCCUPANCY 100% TENANTS Aetna, TransCore TOTAL LAND AREA 11.40 Acres YEAR BUILT / RENOVATED 1966 / 2013 TOTAL PARKING 815 PARKING RATIO 5.69 / 1,000 OFFERING Free & Clear 100% LEASED TO INVESTMENT GRADE TENANTS The Aetna Regional Headquarters is 100% leased to two credit tenants, Aetna and TransCore, who is a subsidiary of Roper Industries. Aetna accounts for 89.8% of the Property, ranks 57 on the Fortune 100 list, and has an S&P credit rating of A, which conveys a very strong capacity for the company to meet its financial commitments. Since 2011, Aetna has increased its operating revenues by 67%, with over $57 billion in operating revenues for 2014. Aetna is also the 5th largest health insurance company in the US and has over 26 million policy holders. The remaining 10.2% of the Property is leased by TransCore, another financially secure company as it s a subsidiary of Roper Industries, which generated over $3.5B of revenue in 2014, and is part of the S&P 500, Fortune 100 and Russell 1000 indices. Size % of Property S&P Credit Rating Expiration Date Aetna 128,654 89.8% A Jul-22 1 TransCore (Roper Industries) 14,566 10.2% BBB- 2 Feb-20 143,220 1 Tenant has the right to terminate on 7/19 with a $1.4MM termination payment and 9 months notice. 2 Credit Rating applies to Roper Industries, the guarantor on TransCore's lease. 3
TECPORT BUSINESS CENTER - A PRIME MIXED-USE LOCATION The TecPort Business Center consists of over 102 acres, and is a master planned development consisting of office and research facilities, hotels, and an abundance of retailers. The total business center has over 410,000 SF of office space, 5 nationally recognized hotels, and is directly across from the Harrisburg Mall, a regional traffic generator. The TecPort Business Center also has a U-Gro Learning Center (daycare/ preschool) and a Planet Fitness currently being developed immediately behind the Property. Major Office Tenants Aetna Capital Blue Cross PIT AL Metro Bank BE LTW AY Trane K&W Engineers CAPITAL PAXTON ST Masco Construction Getech Belco TECP Hotels Hilton Garden Inn N RD RT VI IS DR RR EW HA Howard Johnson IE P PO Hilton Homewood Suites FR HARRISBURG MALL HI DR S 40TH ST Wingate by Wyndham DS ORT BELTWAY EISENHOWER BLVD CA TransCore BU Town Place Suites by Marriott RG ST Retailers CH AM Harrisburg Mall (94 stores) BER SH ILL RD Fiesta Mexico Hibachi Grill HIGH POINT COMMONS The Melting Pot Chipotle Starbucks Sheetz STRATEGICALLY POSITIONED OFFICE PARK Aetna Regional Headquarters is located within a major office park, has direct access to multiple northeastern roadway arterials, and is minutes to the Capital City of Harrisburg and Hershey, making the Property an ideal location for corporations. The TecPort Business Center lies at the 83 intersection of I-83, I-283 & Route 322, and is only three miles north of the Pennsylvania Turnpike, enabling companies within the campus to attract employees throughout Central Pennsylvania. The Property is also only 6 miles from downtown Harrisburg and 9 miles from Hershey, which are both major employment hubs. The Commonwealth of Pennsylvania has over 20,000 employees located in downtown Harrisburg and between Hershey s medical, entertainment, and food manufacturing businesses, there are over 22,000 jobs. 4 Harrisburg Mall
SUPERIOR AMENITY BASE The TecPort Business Center is only 700 feet from The Harrisburg Mall, a major regional retailer and traffic driver. The Harrisburg Mall pulls from the greater region, attracting over 4 million visitors per year to its 94 stores, which includes Macy s, Bass Pro Shop, and Regal Cinemas. It is owned by St. John Properties, and has recently had significant improvements to its facade. The Property also has access to multiple dining options such as the Melting Pot, Ruby Tuesday, and the Lancaster Brewing Company, in addition to being walking distance to the U-Gro Learning Center and Planet Fitness. RENOVATED, HIGH QUALITY ASSET Current Ownership has maintained the Property at the highest standards. Since 2012, management has put over $1.5 million in tenant improvements into the asset and over $750,000 into the common area facilities. The Property has new energy management systems, that greatly reduces CAM expenses, in addition to newly renovated lobbies and elevators. Aetna has also recently invested capital into its own space, building a brand new cafeteria. 5
Exclusive Marketing Advisors If you have any questions or require additional information, please contact any of the individuals below. BEN APPEL CHRIS MUNLEY Director Managing Director T 484.532.4214 T 484.532.4207 bappel@hfflp.com cmunley@hfflp.com HFF Philadelphia Eight Tower Bridge 161 Washington Street Suite 925 Conshohocken, PA 19428 hfflp.com MICHAEL DICOSIMO Senior Real Estate Analyst T 484.532.4169 mdicosimo@hfflp.com FINANCING CONTACTS JAMES CONLEY RYAN ADE Managing Director Managing Director T 484.532.4208 T 484.532.4209 jdconley@hfflp.com rade@hfflp.com Confidentiality and Conditions Holliday Fenoglio Fowler, L.P. is a Pennsylvania licensed real estate broker. 2015 Holliday Fenoglio Fowler. This Offering Memorandum has been prepared by Holliday Fenoglio Fowler, L.P. ( HFF ) for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to sell the property to any entity reviewing this Offering Memorandum or making an offer. This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or HFF. If you have no interest in the property, please return the Offering Memorandum forthwith.