symphony centre - jll

1 | Symphony Centre | 32 E. Washington St.

Confidential offering memorandum

32 East Washington Street, Indianapolis, Indiana

Unique opportunity to acquire a historic building in the heart of downtown Indianapolis.

Symphony Centre

2 | Symphony Centre | 32 E. Washington St. JLL | 3

Contents Investment summary 05

Property overview 06

Location overview 13

Market overview 21

Transaction guidelines 25


The Offering

Address 32 E. Washington St., Indianapolis, Indiana, 46204

Building Type Multi-tenant Office

Year Built/Renovation 1912/1981

Total Size 73,017 rsf

Site Size 0.12 acres

Parcel Number 1028287 (State Parcel # - 49-11-01-240-178.000-101)

Zoning CBD-1

Occupancy 84.5%

PROPERTY SUMMARY

JLL is pleased to offer for sale Symphony Centre (the “Property”), a 73,017 square foot building, located in the heart of a thriving downtown Indianapolis. The historic, 17-story building is situated along East Washington Street less than one block from Monument Circle and within walking distance of exceptional area amenities. With a timeless brick exterior, an exceptional window line and efficient floorplates, the Property boasts historic character with an eclectic feel that appeals to the modern tenant.

INVESTMENT HIGHLIGHTS

• Flexible zoning opportunity. CBD-1 zoning allows for flexible opportunities including retail, outdoor cafe or redevelopment opportunities.

• Significant upside potential. With a recent remeasurement to BOMA square footage and expiring rents at approximately $3.00 below market, there is a significant upside potential by rolling expiring leases to rental rates reflective of current market rates.

• Appeal to today’s tenants. With a footprint reflective of the highest velocity of tenant demand, Symphony Centre offers everything today’s modern tenants want. The unique finishes, panoramic views and value-add potential for a rooftop patio add to the appeal.

• Healthy submarket and office market strength. Leasing activity in the CBD continues its uphill climb and represents 43% of the completed leases in Indianapolis MSA year to date. With steady investment activity and more than 60 projects in the pipeline through 2022, momentum and revitalization will continue throughout downtown Indianapolis.

• Stability. Indianapolis Symphony Orchestra is looking to remain partially in the building from the lower level through the third floor. Further specifics on those terms will be given upon an executed confidentiality agreement.

Symphony Centre | 32 E. Washington St.Investment summary

WASHINGTON STREET

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Property overview

The PropertySymphony Centre was added to the National Register for Historic Places in 1980; the Property was originally developed in 1912 as the Washington Hotel, which was the tallest hotel in Indiana at that time. The adaptable floorplates have allowed the building to evolve from a hotel, apartments, banquet space and office space during its history.

With a unique, historic ambiance and the potential for creative space, the Symphony Centre offers an experience that is desired by today’s tenant. Unobstructed, panoramic views of the city, along with the unique opportunity for a penthouse or rooftop deck, allows tenants to experience the vibrancy of the city, even when inside the building.

With a prime location just one block from Monument Circle, the Symphony Centre stands at the core of the city’s business and cultural districts. The Property is surrounded by professional and cultural attractions and is steps away from an abundance of dining, shopping and nightlife. The Cultural Trail, which runs in front of the building, is an 8-mile, $50 million bike and pedestrian trail providing connectivity to all six of the downtown cultural districts.

Symphony Centre | 32 E. Washington St.

Panoramic views

73,017 rsf CBD-1 zoning

Situated along the Cultural Trail

At the core of a thriving downtown

Unique, historic ambiance

View of Monument Circle from Rooftop

Second Floor Greenroom 17th Floor Penthouse

Unique Finishes

PROPERTY HIGHLIGHTS


Symphony Centre | 32 E. Washington St.Property overview

Stacking Plan Building Specifications

Stories 17, with lower level and partial sub lower level

Typical Floorplates 4,200 rsf

Standard Ceiling Height 8 feet

Elevators 2 passenger, 1 freight

Restrooms 2 per floor

Roof Rubber membrane

Exterior Brick exterior underwent full re-mortar and repair from 2014 through 2017. Wall assembly contains glass windows set in wood frame.

Foundation Concrete foundation with basement and subbasement

Structure Metal frame

HVAC There are 56 heat pumps in the building which are ran off of a chiller. There’s a cooling tower on the roof. The building’s heat is ran by steam.

Life Safety Systems Wet sprinkler system. AMAG (with Symmetry Professional) security system.

Vacant MTM 2019 2020 2021 2022 Size reflected in parenthesis is BOMA Standard

17 Indianapolis Symphony Orchestra1700 | 4,126 sf (3,171 sf)MTM

16 Vacant Precision Dialogue Marketing Indiana Utility Shareholders Public Interest Legal Foundation016 | 910 sf (447 sf) 1625 | 1,999 sf (2,089 sf) 1650 | 505 sf (522 sf) 1675 | 1,086 sf (1,170 sf)

MTM LXD 12/31/2019 LXD 01/31/202015 Benhussen, Duetsch & Associates

1500 | 4,271 sf (4,212 sf)MTM

14 Vacant1400 | 4,271 sf (4,179 sf)

13 IVCI (Cathedral Arts) Vacant Vacant1300 | 1,903 sf (1,991 sf) 1350 | 1,452 sf (1,679 sf) 916 sf (331 sf)LXD 04/30/2022

12 Vacant1200 | 4,271 sf (4,228 sf)

11 Indiana Grantmakers Alliance1100 | 4,271 sf (4,169 sf)LXD 12/31/2022

10 Vacant Maribeth Smith Indiana Grantmakers Alliance010 | 1,178 sf (630 sf) 1000 | 1,997 sf (2,139 sf) 1050 | 1,096 sf (1,286 sf)

MTM LXD 12/31/20229 Vacant OI Career Consultants New World Youth Orchestra

09 | 568 sf (144 sf) 900 | 2,903 sf (2,681 sf) 950 | 800 sf (1,104 sf)LXD 11/30/2019 MTM









LL Indianapolis Symphony OrchestraLL | 1,180 sf (4,387 sf)MTM

9,544

0

3,2031,170 0

7,446

35,692

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5,000

10,000

15,000

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MTM 2018 2019 2020 2021 2022 ISO

Lease Expiration Schedule

Rooftop Patio Potential First Floor Common Hallway


Symphony Centre | 32 E. Washington St.Property overview

Representative Floorplans Representative Floorplans

EXAMPLE OF SINGLE TENANT FLOOR

EXAMPLE OF MULTI-TENANT FLOOR

LOWER LEVEL

FIRST FLOOR


IndianapolisWith over 1.9 million people in the Metropolitan Statistical Area (MSA) the city of Indianapolis is the 17th largest in the nation, the third largest in the Midwest and the state capital of Indiana. In 2016 the Bureau of Economic Analysis concluded that the gross domestic product (GDP) for the Indianapolis MSA was $117.6 billion, making it the 27th largest GDP’s in the U.S. out of 363 metropolitan areas. Indianapolis’ tremendous growth as a business hub and its reputation as a professional sports capital have placed Indianapolis in the national spotlight. The recent focus on life sciences and technology startups has yielded an entrepreneurial attitude, and has further affirmed Indianapolis’ economic vitality.

The Hoosier capital consistently ranks as one of the safest and cleanest cities in the nation and many of the surrounding counties have been cited as “Best Places to Live”. Indianapolis has been revered for its quality of life and low cost of living.

As an economic powerhouse in the Midwest, the Indianapolis region has a vibrant and favorable business climate that has diversified far beyond its historical manufacturing roots into the expanding insurance, financial, healthcare, life science and technology industries. In 2018, Tax Foundation ranked Indianapolis #1 on its list of Best State’s for Business in the Midwest and #10 in the nation.

Symphony Centre | 32 E. Washington St.Location overview

Photo: Downtown Indy Photo: Downtown Indy

Photo: Downtown IndyPhoto: Downtown Indy

#1 State Business Tax Climate in the Midwest - Tax Foundation, 2018

#10 State Business Tax Climate in the US - Tax Foundation, 2018

#5 Best Place to do Business in the US - Chief Executive Magazine, 2018

#2 Best City to Start Your Business Right Now - Inc., 2018

#1 Government in the US - US News & World Report, 2017

#1 Thriving Tech City - Money Under 30, 2017

#2 Best City for Jobs - Money, 2017

#2 Most Resurgent City in the Country - Realtor.com, 2017

#1 Best Airport in North America - Airports Council International, 2012-2017

UNEMPLOYMENT RATE

POPULATION MEDIAN INCOME

BACHELOR’S DEGREE OR HIGHER

2,053,679 3.7% 34% $58,470

Mass Ave The Canal

Georgia Street Monument Circle



Downtown Indianapolis

Former Angie’s List Campus

Eli Lilly & Company

Urban Core

Anthem

IUPUI Campus

Eiteljorg Museum

Indiana State Museum

NCAA Museum

Victory Field

White River State Park

Lucas Oil Stadium

Indiana Convention Center

Bankers Life Fieldhouse

Rolls Royce

Salesforce

Monument Circle

Circle Centre Mall

City Market

Mass Ave

Central Library Bottleworks District Development

Fountain Square

Corporate Headquarters Cultural Attraction Sports Attraction Development/Campus Miscellaneous

16 Tech Development

GM Stamping Development

Indiana Avenue

The Canal

Georgia Street

One America

Farm Bureau Insurance

Emmis Communications

Simon Property Group

Angie’s List

Cummins



Quality of Life

Over the past two decades, downtown Indianapolis has been transformed into the highly coveted “live, work, play” urban center. Since 1990, the city has invested over $9 billion to more than 485 projects in the downtown area, representing an average of more than $450 million of new investment each year over the past 20 years.

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 world’s largest Children’s Museum. Another popular destination includes Mass Ave, a cultural destination featuring restaurants, breweries, art galleries, night life, theaters and boutiques.

Home to the Indianapolis Colts, Indiana Pacers, Indiana Fever and the NCAA headquarters, Indianapolis has carved out a niche in the professional sports industry. Since 2006 the city has hosted Super Bowl XLVI, 3 NCAA Men’s Final Fours (2006, 2010, 2015), and 2 NCAA Women’s Final Fours (2011, 2016). The city is also the home of the NFL Scouting Combine (1987-present), the Big Ten Football Championship (2011-present) and the largest single-day sporting event in the world with the Indianapolis 500 (400,000 people). The city will host the Final Four and NBA All-Star Game in 2021.

Downtown Indy is known as a “walker’s paradise” with a climate controlled skywalk connecting more than 5,000 hotel rooms ans businesses to the Indiana Convention Center, Circle Centre Mall and Lucas Oil Stadium. In addition, the Cultural Trail, which winds through downtown, offers a world-class urban bike and pedestrian path spanning eight miles and connecting the six cultural districts.

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Indy Bike Share Greenspaces Cultural Trail

Amenities Map

23 MILES 300+

7,514

BIKE LANES & TRAILS RESTAURANTS & BARS

HOTEL ROOMS

64%DOWNTOWN RESTAURANTS

ARE LOCALLY OWNED

20BREWERIES, WINERIES

& DISTILLERIES

275 ACRESPARKS & PUBLIC SPACES

#1 Trending Destinations in the USAirbnb, 2018

#22 Most Exciting Food Cities in 2018Zagat, 2017

One of the Best States for MillennialsMoney-rates.com, 2017

Top 50 Best Places to Travel in the WorldTravel + Leisure, 2017

#1 Convention CityUSA Today, 2017

#1 America’s Best City for RentersForbes, 2017

Top 10 Most Underrated Cities Travel + Leisure, 2017

Top 15 Biking Cities in the U.S.Bicycling Magazine, 2016

#1 Walkable CityRejuvenate Magazine, 2016

One of the 50 Best Places to Live in AmericaBusiness Insider, 2016

INDIANAPOLIS QUALITY OF LIFE ACCOLADES

INDIANAPOLIS CULTURAL TRAIL

BIKE & WALKING TRAIL THROUGHOUT DOWNTOWN

Indy Bike Share

Blue Indy

Cultural Trail/Bike Path

Restaurants

Legend

Hotels

City Market

Indiana Repertory

Theatre

CanalWalk

Bankers Life Fieldhouse

Circle Centre Mall

GeorgiaStreet

IndianaConvention

Center

StateCapital

MonumentCircle

University Park

Mass Ave

8 MILES

CONNECTIVITY TO ALL SIX CULTURAL DISTRICTS

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BIKE RACKS86

PUBLIC ART PROJECTS ALONG THE TRAIL

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Location overview

Talented Workforce and Education

INDIANAPOLIS TECH ACCOLADES

Indianapolis outperforms the state of Indiana in bachelor’s and graduate degree attainment with 28.8% of Indianapolis’ population having obtained a bachelor’s degree or higher compared to 23.2% of the entire state. Over 64,000 higher education students live in downtown Indianapolis and attend several of the city’s academic partners, IUPUI (Indiana University Purdue University Indianapolis), Butler University and University of Indianapolis. Also near are Big 10 powerhouses Indiana University, Purdue University, Notre Dame, DePauw University, Wabash College and Rose-Hulman Institute of Technology, which was ranked as the top under-graduate engineering program by US News & World Report for 19 consecutive years.

#10 Best Cities for Women in Tech – Smart Asset, 2018

#2 Cities that are secretly great for tech grads - Data Fox, 2018

Top 4 Tech hubs to watch in 2018 - Venture Beat, 2017

One of the best tech cities - G2 Crowd, 2018

#5 City Creating the Most Technology Jobs – Forbes, 2017

Top 8 Thriving Tech Cities – Money Under 30, 2016

#8 of the Top CBD Markets for Tech Leasing – JLL, 2016

#6 of the Top Cities for Tech Jobs – Fast Company, 2016

#2 Best City for Recent Tech Grads” – DataFox, 2016

Emerging Industry The technology and startup scene in Indianapolis has seen trememndous growth in the passt five years due to strong business leadership developing and attracting young talent. Although Indianapolis is known for being a staple for industrial users, mid-size and bulk distribution clients have recently been adopting new technology and Indianapolis has seen a significant increase in logistics-focused companies in the market. In 2016, Indianapolis’ professional and business services sector, including the tech industry, grew 5.8% and accounted for $13.9 billion of the GDP, making it one of Indianapolis’ largest industry sectors.

Parking


# Garage / Lot Monthly Cost

38 Old City Hall Lot $110

39 Newpoint Lot 419 $75

40 Market District Garage $95

41 City Park Garage $140

42 IBJ Lot $130

43 PNC Center/Hyatt Garage $155

44 Capitol Commons Garage $125

45 Plaza Park Garage $145

46 Pan Am Plaza Garage $135

47 World of Wonders Garage $135


48 Moon Garage $135

49 239 Lot $85

50 Omega Building Lot $125

51 Merchants Garage $165

52 Maryland Street Garage $125

53 La Rosa Ramp Lot $70

54 Bankers Life Fieldhouse NE Lot $75

55 301 E Washington Lot $125

56 La Quinta Inn Lot $40

57 433 E Washington Lot $50

8900 Keystone Crossing, Suite 1150 • Indianapolis, IN 46240 • +1 317 810 7000 • www.jll.com/indianapolis

IndianapolisDowntown


1 Salesforce Tower Circle Garage $215

2 Salesforce Tower Garage $175

3 Huntington Plaza Garage $150

4 Express Park Garage $150

5 Wabash Street Garage $125

6 BMO Plaza Garage $170

7 135 E Market Lot $120

8 Indiana Parking Garage $70

9 Regions Tower Garage $165

10 219 Delaware Lot $100

11 Market Square Center Garage $140

12 Sheraton Hotel Garage $135

13 Circle Block Garage $143

14 Market Tower Garage $165

15 Hilton Garage $150

16 Court Street Garage $135

17 One America Lot 4 $75

18 EZ Parking Lot 535 $80

19 500 N Illinois Garage $70

20 One America Lot 28 $85

21 101 W. Ohio Building Garage $145

22 One America Tower Garage $135

23 Capital Center Garage $155

24 Central Park Garage $130

25 Denison Lot 323 $155

26 327 Garage $130

27 Penn and Vermont Lot $90

28 555 North Delaware Lot $50

29 Penn Center Lot $90

30 Roberts Park Church Lot $75

31 Regions Bank Lot $130

32 Marrott Center Lot $95

33 418 Alabama St. Lot $60

34 Michigan & Alabama Lot $65

35 Old National Center North Lot $60

36 Athenaeum Lot $65

37 Municipal Garage $95

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Garage Lot

Parking garage + monthly rate map

With more than 73,000 spaces downtown, it’s easy to find parking within close proximity of your final destination. Parking in downtown Indianapolis also ranks among the most affordable in the country.

TECH COMPANIES IN THE CBD CORE

56 Tech companies located within a quarter mile radius of Monument Circle

Monument Circle


Market overview

The MarketIndianapolis Office Market Overview Indianapolis is positioned for long-term growth and sustainability. A diversified economy paired with a favorable business, tax and cost of living climate continues to attract a steady inflow of new residents and companies that will continue to boost job and income growth in the region.

The Indianapolis metropolitan office market contains approximately 34 million square feet of inventory comprised of Class A, B & C suburban and CBD office space. The CBD market accounts for approximately 38% of the total amount of space in the metro area.

Q3 2018 INDIANAPOLIS CBD OFFICE MARKET SNAPSHOTS


Fundamentals ForecastYTD net absorption -19,880 s.f. ▶Under construction 41,470 s.f. ▲Total vacancy 15.5% ▶Average asking rent (gross) $21.39 p.s.f. ▲Concessions Stable ▶

-100,000

0

100,000

200,000

2015 2016 2017 YTD 2018

Supply and demand (s.f.) Net absorptionDeliveries

17.5%

15.5% 15.1% 15.5%

2015 2016 2017 Q3 2018

Total vacancy

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

2015 2016 2017 Q3 2018

Average asking rents ($/s.f.) Class AClass B

Inventory (sf)

Total net absorption

(sf)

YTD Total net absorption

(sf)

YTD Total net absorption

(%)

Direct vacancy

(%)

Average asking rate

($/psf)

Under development

(sf)Class A 5,978,151 -7,729 -32,225 -0.5% 14.1% $23.42 41,470

Class B 6,167,460 -20,786 12,345 0.2% 15.7% $19.61 0

Total 12,145,611 -28,515 -19,880 -0.2% 14.9% $21.39 41,470

View Looking West from Rooftop 14th Floor Available Suite

17th Floor Conference Room 10th Floor Tenant Space


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Indy Bike Share Greenspaces Cultural Trail

Market overview

Creative Class Developments


Building Class Size (sf) Available (sf) Occ % Asking

Rent1 Circle Tower Building B 111,587 0 100% $28.002 The Marietta on Mass A 25,361 0 100% $26.00 3 Guaranty Building B 99,664 23,397 77% $26.00 4 Marott Center B 45,820 5,515 88% $22.75 5 Artistry A 59,028 14,457 76% $22.50 6 IPL Building A 151,880 17,400 81% $22.00 7 Sears Building B 101,070 6,300 94% $24.008 Allen Plaza B 72,056 2,823 96% $21.50 9 J.F. Wild Building B 54,914 23,754 57% $22.0010 Lacy Building B 55,559 10,708 81% $26.5011 941 N Meridian St B 93,660 0 100% $21.0012 130 East Washington B 203,250 86,624 57% $20.25 13 429 Pennsylvania Center B 100,760 12,119 88% $20.00 14 Century Building B 153,849 17,158 89% $19.00 15 The Majestic Building B 80,855 14,673 82% $19.0016 Empire Square B 31,138 0 100% $18.5017 OBER Building B 52,383 0 100% $18.5018 The Union B 120,180 0 100% $18.00 19 Morrison Opera B 52,019 0 100% $18.00 20 445 N Penn B 63,900 0 100% $14.0021 Gibson Building B 103,389 0 100% N/A22 The Firehouse @ Lockerbie B 70,135 0 100% N/A23 Harrison Building B 33,264 0 100% N/A

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Creative Class Asking Rate

$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

2014 2015 2016 2017 2018

CREATIVE CLASS HISTORICAL ASKING RATES

The increase in popularity of unique and creative office space in Class B buildings has sparked a new “creative class”. In addition to the upgrade in tenant spaces, investors have transformed dated common areas to reflect the modern, urban feel that today’s tenants covet.

16 Tech60 acre innovation community

16 Tech is an urban innovation district where creative thinkers and doers in tech, life sciences and advanced engineering connect, collaborate and innovate.

Plans include: makerspace, flexible working space, research and wet labs, greenspace and event space.

Bottleworks District12 acre urban district

The Bottleworks District is a fusion of past and present in the heart of historic neighborhoods, robust arts, industrial architecture & one-of-a-kind progressive office space.

Plans include: office space, food hall, entertainment venues, retail, hotel and residential.

Waterside (former GM Stamping Plant)103 acre urban district

This redevelopment will partner with the residential and business communities to bring a dynamic and world-class urban district to the west side of Indianapolis adjacent to White River.

Plans include: residential, office, commercial, hotel, retail, greenspace and event venues.

Bottleworks District

16 Tech

Waterside

The revitalization and investment in downtown Indianapolis over the past decade have lead to a rapidly expanding urban core. This growth will continue with three large scale development projects in the pipeline.


The GuidelinesThe Symphony Centre transaction guidelines The offering of Symphony Centre is being distributed exclusively by JLL to a select group of qualified investors. JLL will be available to assist prospective investors to arrange on-site inspections and to answer any questions related to information contained in this Offering Memorandum.

Leasing assumptions and further building specific information/financials to be upon receipt of an executed Confidentiality Agreement.

Transaction guidelines include the following:

• All offers must be presented in writing and be net of all seller closing costs. All offers must include the following:

• The amount of earnest money deposit and time frame to non-refundable status

• An outline of the proposed schedule for due diligence and closing

• A description of any physical or environmental assumptions which affect the price being offered

• A list of any contingencies, including committee approvals, required to close the transaction

As is the standard practice for the sale of office buildings in Indianapolis, real estate taxes will be prorated on a cash basis so that the prospective purchaser will receive a credit at closing for real estate taxes that are due and payable in the year of closing. Offers must confirm that the bid incorporates such real estate tax prorations.


Traci Kapsalis +1 317 810 [email protected]

Abby Zito +1 317 810 [email protected]

Contact information

Traci Kapsalis +1 317 810 [email protected]

Abby Zito +1 317 810 [email protected]

Contact information

Although information has been obtained from sources deemed reliable, neither Owner nor JLL makes any guarantees, warranties or representations, express or implied, as to the completeness or accuracy as to the information contained herein. Any projections, opinions, assumptions or estimates used are for example only. There may be differences between projected and actual results, and those differences may be material. The Property may be withdrawn without notice. Neither Owner nor JLL accepts any liability for any loss or damage suffered by any party resulting from reliance on this information. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. © 2018. Jones Lang LaSalle IP, Inc. All rights reserved.

symphony centre - jll

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