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REPOSITIONED CLASS A OFFICE OPPORTUNITY WITH EXCEPTIONAL IN-PLACE CASH FLOW & VALUE-ADD UPSIDE THROUGH LEASE UP OF TOP FLOOR ORANGE | CALIFORNIA Holliday GP Corp. (“HFF”), a California licensed real estate broker, California License #01385740. *Architectural Rendering
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ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

Aug 15, 2020

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Page 1: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

REPOSITIONED CLASS A OFFICE OPPORTUNITY WITH EXCEPTIONAL IN-PLACE

CASH FLOW & VALUE-ADD UPSIDE THROUGH LEASE UP OF TOP FLOOR

ORANGE | CALIFORNIA

Holliday GP Corp. (“HFF”), a California licensed real estate broker, California License #01385740.

*Architectural Rendering

Page 2: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

2 |

PR

OP

ER

TY

AT

A G

LA

NC

E Address 999 W. Town and Country Rd.Orange, CA 92868

Building Size 98,907 SF

Total Leased % (as of 1/1/2019) 74% (100% leased to AECOM through 12/31/18)

Typical Floor Plates 25,000 RSF

Year Built 1976, Renovated 2010 & 2018

Site Area 2.82 Acres

Parking Ratio 4 : 1,000 SF

Total Floors 4

2019-2024 Lease Expirations 0%

The OfferingHFF, as exclusive advisor, is pleased to present the exceptional opportunity to acquire the 100% fee simple interest in 999 W. Town and Country (the “Property”), a 98,907 SF fully renovated four-story office building located in the Town and Country Corridor in Orange, CA. The Property will be 74% leased to AECOM (NYSE:ACM, Moody’s: Ba2) on a renewed 10 year lease, providing an attractive and stable in-place cash flow. Situated on 2.8 acres, the Property is undergoing an extensive renovation transforming it to best-in-class standards.

Strategically located between two of Orange County’s most vital arterial freeways (I-5 to the West and CA-22 to the North), the Property provides tenants with the coveted ability to attract talent from throughout the Orange County, Los Angeles, and Riverside counties. As the Town and Country Corridor continues to evolve into an urban environment with direct access to walkable retail and service amenities and an abundance of housing options, the Property is positioned to benefit from the continued increase in leasing demand and upward movement in market rental rates.

Exceptional In Place Cash Flow

Substantial Capital Investment In Progress

Growing Urban Work Environment

Major Transportation Corridor

Discount to Replacement Costs

Exceptional Fundamentals & Economic Diversity

Page 3: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

INVESTMENT SUMMARY | 3

Investment Merits

Exceptional In-Place Cash Flow through GloballyRecognized AECOMThe property will be 74% leased (100% leased through 12/31/18) to AECOM (NYSE:ACM, Moody’s: Ba2) on a ten (10) year term with annual rent increases, providing investors secure long term in-place cash flow. In addition, a significant TI allowance was issued to AECOM providing refreshed Title 24 compliant work space as well as renovated lobbies and restrooms. AECOM has occupied the Property as an owner or lessee for over 21 years; leasing the property since 2006 and as an owner/user from 1997 to 2006.

Ranked #1 in Engineering News Record‘s

“TOP 500 DESIGN FIRMS” for 8th consecutive year

Named one of Fortune magazine’s

“WORLD’S MOST ADMIRED COMPANIES” for the fourth consecutive year

S&P 400 | #161 FORTUNE 1000 (June 2017)

Type PublicTraded As NYSE: ACM

Industry Technical Services

Founded 1990

Headquarters Los Angeles, CA

ServicesArchitectural Engineering, Building Design, Construction Management

Revenue (TTM) $18.76B

Market CAP $5,717B

Number of Employees 87,000

Sources: Yahoo Finance

Lease SF % of NRA

Lease Expiration

Term Remaining

73,171 SF 74% May 2028 10

*as of 1/1/19

QU

ICK

FACT

S

Tenant overview

4th Floor Leasing Opportunity

*Architectural Rendering

Page 4: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

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Value-Add Opportunity through Vacant 4th Floor Lease upWith AECOM’s contractual obligation to lease the 4th floor continuing through the end of 2018, potential investors have the ability to craft an aggressive and sound business plan to maximize value while in the interim collecting rent from AECOM through December 2018. Furthermore, with limited options in the market for 25,000 SF of contiguous office space, investors have the ability to capitalize on the upward movement of rents and declining vacancy in the Town and County Corridor and Central Orange County Submarket.

Redefining the Central Orange County MarketCentral Orange County’s emerging growth and transformation presents an exceptional opportunity to capitalize on tenant demands for an urban work environment and experiential retail amenities. Situated in the Town and Country Corridor, the Property benefits from an abundance of walkable retail amenities, 1,885 new and/or proposed multi-family units, and a close proximity to Central Orange County’s prime executive housing options. Furthermore, with the Platinum Triangle to the NW and Downtown Santa Ana to the SW, the Property’s central location is served by the abounding amenities Orange County has to offer.

• A-Town – 1,500 residential units, 45K retail, & 41-acre lifestyle center• ARTIC Hub – Orange County’s central transportation hub for OCTA, Amtrak, &

Metrolink• Honda Center – 18,300 seat entertainment arena; home to the NHL’s Anaheim Ducks• LT Platinum – Proposed Mixed-use development with 415K SF of commercial space

& 95K SF of entertainment space• Angel Stadium – Home to MLB’s Los Angeles Angels of Anaheim• Disneyland – 2nd most visited theme park in the world (17.9M in 2016)• Anaheim Convention Center – 1.1M attendees annually• 4th Street Market Place – Progressive culinary hub in downtown Santa Ana• Westfield MainPlace Mall – Anchored by Nordstroms, Macy’s, 24 Hour Fitness

Santa Ana

395,000 VPD

City Place

Prisma: Multi-Family 182 Units Class A

Eleven 10: Multi-Family260 Units Class A

Completion Date: May 2018

NO

TAB

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Y AT

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CTIO

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Investment Merits

Page 5: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

INVESTMENT SUMMARY | 5

CHOC Commerce Tower

St. Joseph Medical Plaza

Platinum Triangle

AnaheimAngels

Stadium

The Outlets at Orange

MainPlace Mall

Orange Town & Country Shopping Center

146,000 VPDOld Towne

Orange

Chapman University

Future 262 Unit Class A Multi-Family

Development (Toll Brothers)

New Parking

Structure

ARTIC Hub

Honda Center

A-TownAnaheim Convention

Center

LT Platinum

Future Proposed Multi-Family

TOWN AND COUNTRY ROAD

Page 6: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

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P R O P O S E D D E S I G N | C O A S T A L C O M F O R T S

PERSPECTIVE

Extensive Renovations, Institutional Quality AssetThe improvements currently underway will modernize the features of this property to Class A institutional quality standards. Improvements include significant tenant improvements (Title 24 compliant) for AECOM, fully renovated lobby, restrooms (1-3 floors), exterior enhancements, signage package, landscaping enhancements, and a brand new 352 stall 5-story parking garage.

Future 262 Unit

Class A

Multi-Family

(Toll Brothers)

Subject Property

Parking Structure

999 W. Town and Country

*Architectural Rendering

Page 7: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

INVESTMENT SUMMARY | 7

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P R O P O S E D D E S I G N | C O A S T A L C O M F O R T S

PERSPECTIVE

Location Served By Major Transportation Corridors With frontage along the CA-22, the Property also benefits from easy access to the I-5 Freeway, Orange County’s most important North-South arterial connecting the area to Los Angeles to the North and San Diego to the South.

• Convenient freeway access to the 22 Freeway which sees an estimated 146,000 vehicles per day

• Easy freeway access to the 5 Freeway located less than 3/4 mile West of the Property which sees an estimated 395,000 vehicles per day

• Central to the four regions of Orange County, Los Angeles County, Riverside County and San Bernardino County providing immediate accessibility to all major employment pools in Southern California

• Located 10 minutes from John Wayne International Airport and 20 minutes from Long Beach International Airport

Discount to Replacement CostThe Property provides investors the opportunity to acquire a high quality “like new” asset at a discount to replacement cost, estimated to be approximately $440 per SF. Peak level construction costs, coupled with the supply constraints have created significant barriers to competitive development applying upward pressure on rental rates. Furthermore, current market rents are approximately 35% below rents necessary to justify new construction.

Strong Job Growth and Increasing Economic Diversity With a March 2018 unemployment rate of only 2.8%, Orange County’s labor market is burgeoning and is lower than both the state (4.2%) and nation (4.1%) for that same period. Orange County job growth has reached its highest level since 2000 with health services acting as the largest driver of job creation. The significant growth of this highly educated, diversified employment pool will further increase demand for Orange County office space and support continued increases in market rents.

Investment Merits

*Conceptual Rendering of Lobby

Page 8: ORANGE | CALIFORNIA · Architectural Engineering, Building Design, Construction Management Revenue (TTM) $18.76B Market CAP $5,717B Number of Employees 87,000 Sources: Yahoo Finance

© 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

ATLANTA • AUSTIN • BOSTON • CAROLINAS • CHICAGO • DALLAS • DENVER • HOUSTON • INDIANAPOLIS • LOS ANGELES • MIAMI • NEW JERSEY • NEW YORK CITY ORANGE COUNTY • ORLANDO • PHILADELPHIA • PHOENIX • PITTSBURGH • PORTLAND • SAN DIEGO • SAN FRANCISCO • TAMPA • WASHINGTON D.C. • LONDON

For Analytical Support, Contact: For Inquiries, Contact:

CHRISTIAN [email protected] Lic. # 02000531

DERRECK [email protected] Lic. # 01879565

MICHAEL LEGGETTSenior Managing [email protected] Lic. # 01056334

ALDON COLESenior Managing [email protected] Lic # 01457351

BRIAN TORPSenior Director949.798.4118 [email protected] Lic # 01886645

For Debt Financing, Contact: Local Market Expert:

GEORGE THOMSONNewmark Knight FrankSenior Managing [email protected] Lic # 00947200