MIDTOWN ONE AND TWO. Executive Summary TWO CLASS A OFFICE BUILDINGS IN MIDTOWN ATLANTA S INNOVATION DISTRICT 100% LEASED LONG-TERM TO AT&T

Transcription

1 TWO CLASS A OFFICE BUILDINGS IN MIDTOWN ATLANTA S INNOVATION DISTRICT 100% LEASED LONG-TERM TO AT&T MIDTOWN ONE AND TWO 754 PEACHTREE STREET & 725 WEST PEACHTREE STREET ATLANTA, GEORGIA Executive Summary

2 MIDTOWN ONE & TWO 13 MIDTOWN TWO PARKING ATLANTA 280 MIDTOWN ONE Luxury residential units (Under Construction) Not included in offering Midtown One and Two 2 PARKING MIDTOWN TWO MIDTOWN ONE Hartsfield - Jackson Atlanta International Airport 407

3 CORE INVESTMENT HIGHLIGHTS Best-in-class, trophy quality, 794,110 RSF in two office buildings and a 2,459 space parking structure constructed in 01 and % leased to AT&T as part of its regional headquarters in Atlanta Investment grade tenant with a market cap in excess of $174 billion Triple-net lease structure with annual rent escalations. Outstanding amenity base provided by its position within the Midtown Mile, home of the most dense concentration of cultural and retail amenities in all of Atlanta, as well as 4,100 hotel rooms and and a booming high-rise residential market. Adjacent to the North Avenue MARTA rail transit station. Outstanding accessibility provided by proximity to the Downtown Connector (I-/I-75), which is accessible in less than 3 minutes. Ponce De Leon Avenue and North Avenue are the main east-west surface streets in central Atlanta and are three and four blocks away, respectively. Conveniently located 12 miles from Hartsfield Jackson International Airport (less than minute driving time), the nearest of any of AT&T s area locations. MARTA rail service to the airport terminal is a direct, no-transfer trip on both red and yellow lines. In-place rents below market and drastically below the rental rate required to justify new construction (estimated to be $28 per square foot NNN) Discount to replacement cost (estimated to be $375+ per square foot) 3 Executive Summary ASSET PROFILE Address Rentable Area Midtown One Midtown Two Total Year Built Stories Floor Area Site Acreage Zoning: 754 Peachtree Street & 725 West Peachtree Street Atlanta, Georgia ,101 RSF (*includes 13,257 of retail space master leased by AT&T that is physically located in the parking structure) 282,009 RSF 794,110 RSF 01 (Midtown One) / 02 (Midtown Two) 1 (Midtown One) / 8 (Midtown Two) ± 32,000 SF (Midtown One) / ± 35,000 SF (Midtown Two) 1.8 Acres (Midtown One) / 2.2 Acres (Midtown Two) / 3.10 Acres (Garage) C4 / SP12 / C4 % Leased 100% to AT&T Parking Ratio On-Site Amenities 3.1/1,000 SF (2,459 stalls) in a 9-level above-grade garage Conference and training center, restaurants, coffee shop, fitness center with locker rooms

4 MIDTOWN ONE AND TWO ATLANTA, GEORGIA HFF, L.P., as exclusive representative for the Owner, is pleased to present this offering for the leased fee interest in Midtown One and Two (the Property ), 794,110 rentable square feet in two office buildings and a 2,459 space adjacent parking garage. The Property is 100% leased on a triple-net basis to AT&T (NYSE: T), a global leader in the communications industry. The property was developed as a build-to-suit for BellSouth prior to its 0 merger with AT&T and reflects its corporate identity within a property also suited for multi-tenant occupancy. 4 Midtown One and Two Situated in the heart of Midtown Atlanta, the Property enjoys a highly visible and accessible location, convenient to all major surface arteries and the Downtown Connector with presence and frontage on both West Peachtree and Peachtree Streets. The North Avenue MARTA station is adjacent to the property, and the property abuts the Georgia Institute of Technology s growth eastward across the Downtown Connector at Fifth Street. The factors that attracted AT&T to the site have since attracted other major corporate users such as NCR Corp to recently announce plans to develop a 1.5 million square foot corporate headquarters campus nearby, employing 4,000. Atlanta boasts a diverse and resilient economy and the resurgence is evident in the recent employment growth that has outpaced the nation with 115,000 new jobs added over the past two years and over 72,000 jobs projected to be added in the upcoming year. This growth has had a direct and positive effect on Atlanta office market fundamentals and is also evident in the 7. million sf of Class A net absorption over the past 12 quarters, thirty percent of which has occurred in the urban core submarkets of Midtown and Buckhead. This core investment represents a superb opportunity to purchase one of the most well positioned office campuses in Atlanta both for its longterm stable cash flow from a credit tenant and for its long-term market position. It appeals to tenants for whom proximity to the Georgia Institute of Technology in the heart of Midtown s innovation district is of vital importance. Midtown One and Two are poised to benefit from both a high probability of tenant retention and a current rental rate structure that is well below current and projected future market rental rates.

5

6

7 Atlanta Austin Boston Charlotte Chicago Denver Dallas Florham Park (NJ) Hartford Houston Indianapolis Los Angeles Miami New York Orange County (CA) Orlando Philadelphia Pittsburgh Portland (OR) San Diego San Francisco Tampa Washington, DC INVESTMENT SALES Ralph Smalley Managing Director John Jugl Senior Managing Director Michael George Real Estate Analyst FINANCING Mark West Senior Managing Director Coler Yoakam Managing Director Kelly Kuykendall Associate Director Brandon Chavoya Managing Director HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 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, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff Peachtree Road, Suite 1750 Atlanta GA, 3032 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 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.