east paces ferry presentation

VISIONEXECUTIONSUCCess

309 EAST PACES FERRY PRESENTED BYLINCOLN PROPERTY COMPANY

Design isnot just what it looks likeand feels likedesign is how it works.John Donahue

“

Qualifications:T.A.M.I. & Creative Spaces

730 midtown730 Peachtree street, atlanta, ga 30308

ACQUIRED: 2000

PRICE: $11,500,000

RENOVATION: $4,200,000, all building systems, finishes, facade

SOLD: $29,250,000

712 West Peachtree712 West Peachtree Street nw, atlanta, ga 30308

ACQUIRED: 2001

PARTNER: Lend Lease

SCOPE: Development of a 285,000 square foot, Class “A”, Office tower appealing to Tech and Dot.com industry

silhouette midtown1447 Peachtree Street Ne, Atlanta, GA 30309

ACQUIRED: 2006

CLIENT: Day Capital

RENOVATION: $3,500,000

SCOPE: Full building systems upgrades including interior and exterior renovations

3405 Piedmont3405 Piedmont RD NE, Atlanta, GA 30305

CLIENT: Colony Realty Partners

LEASING: 100% leased to TAMI and professional service tenants

INNOVATION400 and Haynes Bridge, Alpharetta, GA 30022

RESTAURANT VIEW FROM HAYNES BRIDGE ROAD

CLIENT: MetLife Real Estate Investments

ASSIGNMENT: 1.4 million square foot mixed use development focused on TAMI sector

VIEW OF MARKET STREET BUILDING FROM LAKEVIEW PARKWAY

PROJECT VIEW

ORIGINAL PROJECT VIEW

PROJECT VIEW

ORIGINAL PROJECT VIEW

The Jefferson455 Jefferson street, New York, NY 11237

ACQUIRED: 2015

SQFT: 125,000 SF

TYPE: Office/Retail

SCOPE: Full redevelopment and rehab of existing building in Brooklyn

The Desmond425 W 11th Street, Los Angeles, Ca 90015

ACQUIRED: 2013

SQFT: 78,500 SF

SCOPE: Full redevelopment and rehab of existing building in Los Angeles

i|o Playa Vista12130 & 12180 Millennium drive, Los angeles, ca 90094

ACQUIRED: 2011

SQFT: 301,000 SF

PARTNERS: Clarion Partners/LA Realty Partners

SCOPE: “Re-Invention” of existing office

Tustin2160 Barrance Parkway, Irvine, CA 92782

ACQUIRED: 2015

PHASE I: 760,000 SF creative office development/campus

SITE: 37 acres

PARTNERS: City of Tustin, CA

Good designis obvious.Great designis transparent.Joe soprano

“

Lessons Learned

The“Creative”Equation

+ =

I + E = P/s Interaction

Cool Environment

Productivity/satisfaction

CONNECTION

INTERNET

CLOUD

RELATED

Technology

COMMUNICATION

social media mobilemedia

WIFIconferencing

networkingfacebook

sharingrelationships

linktogetherness

collaboration

open

family/friends electronicsaccessibility

availability

network data

community

INTERIORS AMENITIES Exteriors

Interiors

amenities

exteriors

Sustainable brick & beam efficient openness transparency

roof top deck places to play bocce ball ping pong pool

glass transparency white sleek modern warehouse

collaborative interactive flexible utilization vibrant colorful glass

brew Pub/beer boot camp decompression lounge flexible conferencing fitness

brick nostalgic historic innovative street activated adaptive reuse

natural wood lighting portable comfortable

gigabit service mobile connection activated lobbies food trucks social patio fire pits kitchen bike room putt putt coffee ev stations

Key Features:1. Open floor plates which feature design elements such as high-traffic staircases that encourage accidental interactions; 2. More common areas than are strictly necessary – multiple cafeterias, other places to read and work that encourage workers to leave confined office;3. An emphasis on areas that hold two or more people, rather than single-occupancy offices; and4. Purpose-free generic “thinking” areas in open-plan spaces which encourage workers to do their thinking in the presence of other people, rather than alone.

Loft Office SPacesCreative loft office space is as popular as ever, and although initial construction costs are high, these spaces command much higher rents. They attract a different type of tenant from the traditional office user. The highly-valued TAMI subset of office users are drawn to these spaces, and their high profit margins drives significant demand for these spaces. Loft Office Space is characterized by large floor plates, high, open ceilings, collaborative spaces, and natural light. Fluorescent lights and cubicle farms have been replaced by low partitions and big windows. These spaces are much more expensive to build, but companies that occupy such spaces enjoy high margins and enjoy savings in other areas. Workers who occupy these spaces are more satisfied with their jobs—and that satisfaction drives worker retention.

Creativityis to thinkMoreEfficiently.Pierre Reverdy

“

who will lease

Who will lease?

Hospitality Solution Data Search Engine Cyber Security Health Care Solutions eCommmerce

Health Care Solutions CRM Technologies Online Investments Event Application eCommmerce

E-Invoicing Cyber Security

eCommerce Solutions

Financial Services Staff Agency Cyber Security Parking Application Software

CRM Lottery Technologies B2B Marketing

Cloud Services

Fitness Application

Consulting Services

Health Care Solutions

Marketing Solutions

amenities desired by TAMI companies:

Accessibledesignis gooddesign.Steve Ballmer

“

Leasing Strategy

strengths challengesUnmatched amenity base within walking distance of the Building

Location, Location, Location

Potential Retail opportunities at the Building

Smaller floor plates allow Tenants to control their own floor

Outstanding views

Sense of history (i.e. oldest high-rise office building in Buckhead)

Ceiling Heights

Smaller floor plates prohibit efficient expansion

Lack of Interstate Access

Lack of Public Transportation

Property LeveL Recommendations

Property LeveL Recommendations

DEMOLISH ALL FLOORS OF OFFICE SPACE TO INCLUDE CEILINGS AND GRID

Property LeveL Recommendations

COMPLETE RESTROOM RENOVATION WITH BUILDING STANDARD FINISHES ON ALL FLOORS

Property LeveL Recommendations

CREATE A SPEC FLOOR COMPLETE WITH HARD DUCT HVAC SYSTEM THROUGHOUT, SPRAY THE CEILING AND INSTALL BUILDING STANDARD LIGHTING

Property LeveL Recommendations

CONSIDER CREATION OF BALCONIES ON HIGHER FLOORS OF THE BUILDING

Property LeveL Recommendations

CREATE EXTERIOR SIGNAGE TO DISTINGUISH BUILDING FROM OTHERS

HAYNES BRIDGE ROAD VIEW

Property LeveL Recommendations

ACTIVATE LOBBY AND RETAIL AREAS

rent

Escalations

Lease Term

free rent

Tenant Improvementallowance

parking costs

Floor 3: $32/sf full-serviceFloors 4-7: $35/sf full-service

Floors 8-11: $38/sf full-service

3% 2.5%

65 months 91 months

5 months 7 months

$40/sf $50/sf

$75/month unreserved $150/month reserved

Market lease assumptions

1.3 M SF

$24.95/SF

716,000 SF

18.5%

$29.53/SFamount of existing creative office

space in ATL

average quoted full-service rent for existing Class A traditional office space in ATL

premium in rent that cre-ative office space achieves

over Class A traditional office space in ATL

amount of proposed creative office development in ATL

average quoted full-service rent for existing creative office space in ATL

creative office statistics - metro atlanta

Buckhead Atlanta EFfect

BEFORE RATES

DELTA BEFORE

AFTER RATES

DELTA AFTER

ONE BUCKHEAD $28.50 $40.00

TOWER PLACE 100 $27.50 $31.25

TWO BUCKHEAD $27.50 $38.50

TOWER PLACE 200 $27.00 $33.50

$1.00 $8.75

$0.50 $5.00

Atl tech villageEFfect

BEFORE RATES CHANGE AFTER

RATES

3405 PIEDMONT $19.50 $7.50 $27.00

The Functionof designis letting designfunction.Micha Commeren

“

project team

LINCOLN PROPERTY COMPANY is one of the largest and most respected diversified real estate services firms in the United States and is the only national real estate company to rank concurrently in the Top 10 lists of Management/Ownership of Office, Industrial and Multi-family.

With an international footprint that includes offices in 38 cities across the United States and 6 cities in Europe and South America, Lincoln remains a privately and closely held company. As a matter of corporate intention and philosophy, the company has operated virtually debt-free since the early 1990’s, uniquely positioning itself to provide focus and performance as well as consistency and stability to its clients and employees in the economically challenging times of today.

This corporate philosophy combined with 50 years of global real estate experience and the ability to “think like an owner” is what differentiates Lincoln from other service providers and real estate companies. The company’s history of developing and acquiring assets for its own account – as well as providing a full cadre of services to other owners over the span of the last four decades – has created a culture throughout the firm whereby each employee treats each third party assignment as if it were owned by the company. Consequently, the company’s goal is to hire, train, and retain employees that “take ownership” in each and every assignment.

MEET OUR TEAM

tony bartlettSr Vice President

tbartlett@lpc.com

Michael howellVP of Leasing

mhowell@lpc.com

hunter henritzeVP of Leasing

hhenritze@lpc.com

shane FromanVP of Property Management

sfroman@lpc.com

bob lintaultConstruction Manager

blintault@lpc.com

Jeff ClaytonDirector of Engineering

jclayton@lpc.com

3405 Piedmont Rd NESuite 450

Atlanta, GA 30305404.266.7600

www.lpcsoutheast.com