indy tech campus - JLL

INDY TECH CAMPUS Offering Memorandum

Indy Tech Campus

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Table of Contents

Table of contents

Executive Summary�� 5 Property Overview�� 9 Location Description��29 Market Overview��35 About JLL��40

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Indy Tech Campus

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Executive Summary

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.

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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.

6

•

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.

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Indy Tech Campus

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Property Overview

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

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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 Type

Office

Year Built

1920

Renovated

2017

Size

11,605 sf / 0.22 ac

Parcel Number

1084196; 1063332

Number of Floors

2

Restrooms

4

Elevators

0

Roof

2017

Zoning

MU2

Nut house 954 East Washington Street Type

Office

Year Built

1920

Renovated

2011

Size

3,000 sf / 0.13 ac

Parcel Number

1045329

Number of Floors

2

Restrooms

2

Elevators

0

Roof

2012

Zoning

MU2

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Indy Tech Campus

Property Overview

Swamp 958 - 960 East Washington Street Type

Office

Year Built

1880

Renovated

1995

Size

8,784 sf / 0.15 ac

Parcel Number

1006306

Number of Floors

2

Restrooms

5

Elevators

0

Roof

2017

Zoning

MU2

Penthouse 1002 & 1004 East Washington Street

12

Type

Office

Year Built

1880

Renovated

2016

Size

17,522 sf / 0.91 ac

Parcel Number

1070172

Number of Floors

3

Restrooms

8

Elevators

0

Roof

2016

Zoning

MU2

Old Moto Café 1006 East Washington Street Type

Office

Year Built

1880

Renovated

N/A

Size

4,000 sf / 0.91 ac

Parcel Number

1070172

Number of Floors

1

Restrooms

0

Elevators

0

Roof

2017

Zoning

MU2

Firehouse 1030 East Washington Street Type

Office

Year Built

1880

Renovated

2014

Size

8,608 sf / 0.36 ac

Parcel Number

1099548

Number of Floors

3

Restrooms

4

Elevators

0

Roof

2017

Zoning

MU2

13

Indy Tech Campus

Property Overview

Meeks / Campaign 1032 East Washington Street Type

Office

Year Built

1950

Renovated

2015

Size

8,030 sf / 0.16 ac

Parcel Number

1059846

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2015

Zoning

MU2

IBEW 1038 East Washington Street

14

Type

Office

Year Built

1950

Renovated

N/A

Size

3,357 sf / 0.18 ac

Parcel Number

1012659

Number of Floors

1

Restrooms

-

Elevators

0

Roof

N/A

Zoning

MU2

NOC 902 East Market Street Type

Network Operation Center

Year Built

1950

Renovated

2015

Size

6,700 sf / 0.64 ac

Parcel Number

1082283

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2015

Zoning

MU2FF

Glass building 25 North Pine Street Type

Office

Year Built

1900

Renovated

2013

Size

16,700 sf / 0.57 ac

Parcel Number

1045749

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2013

Zoning

MU2FF

15

Indy Tech Campus

Property Overview

Marble 933 & 919 East Market Street Type

Office

Year Built

1950

Renovated

N/A

Size

8,909 sf / 0.90 ac

Parcel Number

1080676

Number of Floors

1

Restrooms

0

Elevators

0

Roof

N/A

Zoning

MU2

Last Chance 1024 & 1000 East Market Street

16

Type

Gym / Flex

Year Built

1950

Renovated

N/A

Size

4,447 sf / 1.56 ac

Parcel Number

1008412

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2008

Zoning

MU2

Diner 1023 East Market Type

Office

Year Built

1937

Renovated

N/A

Size

471 sf / 0.13 ac

Parcel Number

1063371

Number of Floors

1

Restrooms

0

Elevators

0

Roof

2006

Zoning

MU2

Tile Building 1025 East Market Street Type

Office

Year Built

1940

Renovated

2014

Size

6,565 sf / 0.32 ac

Parcel Number

1022516

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2014

Zoning

MU2

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Indy Tech Campus

Property Overview

MOTO CAFé (Dev Shed) 1026 East Market Street Type

Café

Year Built

1960

Renovated

2015

Size

1,873 sf / 0.32 ac

Parcel Number

1022516

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2015

Zoning

MU2FF

Yellow House 1042 & 1046 East Market Street

18

Type

Office

Year Built

1880

Renovated

2006

Size

4,334 sf / 0.12 ac

Parcel Number

1039015

Number of Floors

3

Restrooms

5

Elevators

0

Roof

2015

Zoning

D8

Blue House 1048 & 1050 East Market Street Type

Office

Year Built

1880

Renovated

2006

Size

3,849 sf / 0.12 ac

Parcel Number

1032116

Number of Floors

3

Restrooms

2

Elevators

0

Roof

2017

Zoning

D8

Carriage House 14 Cruse Street Type

Office

Year Built

1910

Renovated

1995

Size

2,107 sf / 0.15 ac

Parcel Number

1006306

Number of Floors

1

Restrooms

2

Elevators

0

Roof

2017

Zoning

MU2

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Indy Tech Campus

Property Overview

Westside day care 118 Herman Street Type

Day Care

Year Built

1880

Renovated

2004

Size

655 sf / 0.14 ac

Parcel Number

1031474

Number of Floors

1

Restrooms

1

Elevators

0

Roof

2006

Zoning

MU2FF

Eastside day care 124 Herman Street

20

Type

Day Care

Year Built

1880

Renovated

2004

Size

650 sf / 0.14 ac

Parcel Number

1102975

Number of Floors

1

Restrooms

1

Elevators

0

Roof

2006

Zoning

MU2FF

Bowes building 903 East Ohio Street Type

Office

Year Built

1910

Renovated

2017

Size

6,313 sf / 0.77 ac

Parcel Number

1105048

Number of Floors

1

Restrooms

6

Elevators

0

Roof

2017

Zoning

MU2FF

Red house 130 Dickson Street Type

Office

Year Built

1920

Renovated

2010

Size

3,066 sf / 0.21 ac

Parcel Number

1068763

Number of Floors

2

Restrooms

2

Elevators

0

Roof

1995

Zoning

MU2

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Indy Tech Campus

Property Overview

Fred’s house 1010 East Market Street Type

Office

Year Built

1920

Renovated

2006

Size

3,500 sf / 0.92 ac

Parcel Number

1037937

Number of Floors

3

Restrooms

5

Elevators

0

Roof

2006

Zoning

MU2FF

dalton building 1050 East Washington Street

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Type

Warehouse

Year Built

1920

Renovated

N/A

Size

48,396 sf / 0.91 ac

Parcel Number

1091677

Number of Floors

2

Restrooms

0

Elevators

0

Roof

N/A

Zoning

I3

Dove house 14 North Highland Avenue Type

Office

Year Built

1920

Renovated

N/A

Size

6,605 sf / 0.12 ac

Parcel Number

1024405

Number of Floors

3

Restrooms

5

Elevators

0

Roof

1995

Zoning

D8

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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

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Property Tax Table PROPERTY NAME

PROPERTY ADDRESS

1

SF

ZONING

ASSESSED VALUE

ACREAGE

Dorman

2

Nut House

930 & 934 E. Washington St.

11,605

954 E. Washington St.

3,000

MU2

$97,800

.22

MU2

$202,200

.13

3

Swamp

4

Penthouse

958 - 960 E. Washington St. 1002 & 1004 E. Washington St.

8,784

MU2

$338,200

.15

17,522

MU2

$663,900

See 24

5 6

Old Moto Cafe


Firehouse


4,000

MU2

$663,900

See 24

8,608

MU2

$327,100

.36

7

Meeks/Campaign


8,030

MU2

$135,400

.16

8

IBEW


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


MU2FF

$13,800

.23

23 Parking


MU2FF

$20,200

.33

24 Parking


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


MU2

$60,200

.58

28 Parking


MU2

$77,400

.57

29 Parking


MU2

$19,000

.50

30 Parking


31 Parking


32 Parking 33 Parking 34 Parking

114-126 Dickson St.

35 Red House

130 Dickson St.

36 Fred’s House 37 Dalton Building

MU2

$77,100

.43

MU2FF

$30,000

.20

50 Shelby Street

MU2

$146,500

1.10

966 E. Maryland

MU2

$64,900

.51

MU2

$101,300

.25

3,066

MU2

$192,500

.21

1010 E. Market St.

3,500

MU2FF

$351,400

.92


48,396

I3

$651,900

.91

38 Reliable Insurance Building


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

$5,685,700

17.56

TOTALS

191,892

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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: • • •

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Meeks/Campaign Glass Building Moto Café

• • •

Bowes Building NOC Firehouse

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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

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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.

Massachusetts Avenue

New York Street

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


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

life sciences business founded since 2002

58,000 employees working in the life sciences industry

6 life sciences projects worth over

$1 Billion 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

High-tech software and services grew by 18% from 2012 to 2014

has raised $35M for investment in local cloud-based software startups

6th best U.S. city for obtaining tech jobs

31

Indy Tech Campus


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.

#3 TOP 10 BEST DOWNTOWNS Livability - 2014, 2015

32

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.

INDIANAPOLIS IS HOME TO THE

WORLD’S LARGEST CHILDREN’S MUSEUM

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

28.8%

of Indianapolis population earned a bachelor’s degree or higher, 5.6% above state average

per year. Over 64,000 higher-education students live in downtown Indianapolis in order to attend several prestigious institutions, including Indiana UniversityPurdue 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 RoseHolman Institute of Technology.

5.2%

of Indianapolis population earns

$150,000+

64,000+

higher-education students live downtown Indianapolis

33

Indy Tech Campus

34

Market Overview

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

Total Net Absportion (s.f.)

150,000 100,000 50,000 0 -50,000 -100,000 -150,000 -200,000

36

2015

2016

YTD 2017

CBD Class A Vacancy vs Ask Rates 21% 20%

$23.50 19.2%

19.9%

19.0%

19.6%

19.6%

19.4%

19% 18%

$23.00 18.3%

17.5%

$22.50

17%

$22.00

16.3%

16%

15.4% 14.6%

15%

$21.50 $21.00

14% 13%

$20.50

12% $20.00

11% 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%

Indianapolis CBD rental rate growth

22%

Vacancy decline in Indianapolis CBD

7.2%

Increase in CBD Class A rental rates

CBD Class A vacancies decreased approximately

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.

36%

15%

Northeast - 54,437 sf Northwest - 9,400 sf Other - 86,787 sf

13%

New to Market - 150,868 sf

21%

Suburban to CBD Total - 421,181 sf

2%

28% Industry

22% 11%

Real Estate

Technology

Leases

Keystone - 55,777 sf North Meridian / Carmel - 63,912 sf

Annual Migration Leases

13%

Non-Profit

16% 8%

8%

Business Services

Finance

6% Consulting

Where did they go?

Distribution

Suburban Distribution (2014 - Present)

2014

7 Deals - 68,926 sf

2015

9 Deals - 102,804 sf

2016

25 Deals - 184,714 sf

2017

3 Deals - 64,737 sf

Class A

56% 35% 234,818 sf

Other

44 Tenants New to CBD 16 of the 44 are new to market

38

Class B

146,563 sf

Class C

9% 39,800 sf

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

#2 BEST CITY

FOR MID-CAREER PROFESSIONALS

#7 AMERICA’S

MOST UNDERRATED CITY FOR MILLENNIALS The Huffington Post - 2015

Forbes - 2016

#2 BEST CITY FOR TECH GRADS RECENT

#10 TOP MARKET FOR

TECH LEASING

DataFox - 2016

#6 TOP CITY FOR

TECH JOBS

Fast Company - 2016

JLL - 2016

#9 CITY CREATING THE MOST TECHNOLOGY JOBS 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 [email protected] MIKE CORR +1 317 810 7177 [email protected]