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Westridge Office Park | Indianapolis Metro Area6781 & 6845 East US Highway 36Avon, Indiana 46123

OFFERING MEMORANDUM

$5,000,0008.52% Cap Rate

• General Office/Medical Office Complex

• Strong mix of national, regional and local-credit tenants

• Visibility and easy traffic-light access to a major retail corridor: US Highway 36

• Average daily traffic volume is 36,000+ vehicles

• Additional value-add opportunity with scheduled rent bumps and improving rents with future lease renewals.

Table of Contents

+ PROPERTY OVERVIEW 3

+ TENANT INFORMATION & RENT ROLL 6

+ FINANCIAL ANALYSIS 10

+ AREA INFORMATION 11

+ CONFIDENTIALITY AGREEMENT 13

DISCLAIMER:

This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 6781 & 6845 E. US Highway 36. It has been prepared by RESOURCE Commercial Real Estate. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or RESOURCE Commercial Real Estate. The material is based in part upon information supplied by the Seller and is deemed reliable. Neither Seller, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from RESOURCE Commercial Real Estate, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering

Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Seller and RESOURCE Commercial Real Estate expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you do not wish to pursue negotiations leading to the acquisition of 6781 & 6845 E. US Highway 36, or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or RESOURCE Commercial Real Estate or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date of this Offering Memorandum. Ver 18.08.22-1037

OFFERING GUIDELINES:• Fee Simple Interest: A 100% fee-simple interest is

offered.• Offers: All offers should be submitted to Kevin Dick and

Paul Dick at the address identified in this memorandum. Offers should include price, source of capital, earnest money deposit, due diligence review period and corresponding close date.

• Property Tours: Tours shall be conducted after a prospective investor is registered and has signed a confidentiality agreement. All tours shall be by appointment only and conducted through the listing brokers.

WESTRIDGE OFFICE PARK // 6781 & 6845 E. US HIGHWAY 36, AVON, IN 3RESOURCE COMMERCIAL REAL ESTATE

Property Overview

RESOURCE Commercial Real Estate has been exclusively retained to market for sale the fee-simple interest in Westridge Office Park, a two-building general office / medical office park located in the west submarket of Indianapolis, Indiana.

This 38,448 SF park is comprised of two, single-story buildings with abundant curbside parking and over 600 linear feet of frontage to U.S. Highway 36. The park has traffic-light access to US 36 and is a short 30-minute drive from the Indianapolis CBD.

The park is located in a growing suburb of Indianapolis with historic household growth of over 2.0% annually and a median household income well above the national average. ESRI forecasts show continued growth in the area.

Westridge Office Park provides the office space for professional services and medical providers that are essential for the area, and demand is projected to grow alongside the residential growth.

PROPERTY HIGHLIGHTS + Reduced ownership risk: Established property with diverse tenancy and staggered lease

expirations

+ Strong Tenancy: Westridge is 100% leased. Additionally, over 60% of the rental income is paid by national/institutional credit tenants, and over 50% of the park is occupied by national/institutional credit medical uses.

+ Below Replacement Cost: Low threat of new supply as replacement cost is estimated to be 25-30% higher than asking price.

+ Tenant Stability: Over 50% of the rental income is paid by tenants with at least a 5-year history at the property. The largest tenant renewed for an additional 5-year term.

+ Future Rent Growth: Increased return is possible through pushing rent rates as leases renew.

+ Market Momentum: Increased rental rates and reduced tenant improvement allowances.

+ Desirable Product: General office and medical office product with high visibility is more cost effective than retail and more desirable than office with no visibility.

+ Established Location: Located adjacent to a large, public intermediate school facility and a Kroger-anchored retail center.

EXECUTIVE SUMMARY

CONTACT

KEVIN DICKDirect 317.663.6544Mobile [email protected]

PAUL DICK, CCIMDirect 317.663.6540Mobile [email protected]

DAVID CIECHANOWICZ, SMA CPM®

Mobile [email protected]

4RESOURCE COMMERCIAL REAL ESTATEWESTRIDGE OFFICE PARK // 6781 & 6845 E. US HIGHWAY 36, AVON, IN

Property Overview

Property Westridge Office Park

Property Address 6781 & 6845 E. US Highway 36, Avon, IN 46123

Property Type General Office / Medical Office

State Parcel Number 32-10-10-232-001.000-031, 32-10-10-232-002.000-031

Parcel Size 5.29 acres

Type of Ownership Fee Simple

Rentable Square Feet 38,448

Vacancy 0%

Zoning C-2

Parking Spaces/Parking Ratio 260 (6.76 spaces per 1,000 SF)

Landscaping/Topography Flat

Street Frontage 600+ linear feet of frontage to US Highway 36

Cross Street Avon Avenue

Traffic Counts (vehicles per day) 36,032

Year Built 1989

Construction Type Wood frame, brick facade

Number of Floors 1

Number of Suites 13

Ceiling Height 9 feet

Parking Surface Asphalt

Elevator None

HVAC Building I: Electric Split Systems, Building II: Gas-Fired Split Systems

Roof Tilt-roof, asphalt shingles

BUILDING COMPONENTS


AERIAL

Property Overview

DRIVETIMES


Financial Analysis INCOME & EXPENSES

November 2018

Income PSFBASE RENTAL REVENUE $16.93 $650,886.58Absorption & Turnover Vacancy $- $- Base Rent Abatements $- $-

OTHER INCOMEOPEX Reimbursement Revenue $0.43 $16,519.00 Other Income $- $-

GROSS INCOME $17.36 $667,405.58

EXPENSESRepairs & Maintenance $1.94 $74,720.00 Janitorial $0.41 $15,590.00 Management Fee $0.79 $30,290.00 Utilities $0.54 $20,772.00 Insurance $0.21 $8,100.00 Real Estate Taxes $2.39 $91,764.00

TOTAL EXPENSES $6.27 $241,236.00

NET OPERATING INCOME $11.26 $426,169.58


The Greater Indianapolis Metro Market is made up of Marion County and the eight surrounding counties. Indianapolis, the nation’s 13th largest city and capital of Indiana, has undergone a dramatic revitalization and a stunning renaissance over the past 15 years making it the perfect balance of cosmopolitan style and small-town charm.

More than 65 percent of the U.S. population lives within a 700-mile radius of Indianapolis. More interstates converge in Indianapolis than in any other city in the U.S., which makes it one of America’s most accessible cities, aptly earning the moniker “Crossroads of America.”

Indianapolis continually ranks high on the list of best places to live and work in the U.S. Moreover, Indiana ranked “Best State for Business” in the Midwest and 11th nationally. In addition, Indiana ranked 3rd in the nation in “Business Friendliness,” 4th in transportation, and 6th in cost of business.

The city is known worldwide as the home of the Indianapolis Motor Speedway, hosting the Indianapolis 500, Brickyard 400 as well as numerous other IndyCar and NASCAR events. The city has other state-of-the-art facilities for various sports, including venues that have consistently hosted world-class competitions. In addition, it is home to a number of governing bodies that oversee Olympic teams and national tournaments, including the NCAA National Headquarters. More than 400 national and international sporting events have attracted 4.53 million spectators, 215,000 participants and $2 billion in revenue over the past 20 years. Indianapolis’ hosting of the 2012 Super Bowl was touted as the most successful Super Bowl in the event’s 46-year history.

The Indianapolis region has enjoyed strong growth in the retail and industrial sectors and is emerging rapidly in the life sciences sector. With the nation’s 2nd largest medical school, remarkable growth in venture capital resources, and a host of industry assets like Eli Lilly, Roche Diagnostics, Guidant and Dow AgroSciences, the life sciences industry is Indiana’s largest private employer, providing more than 82,000 jobs.

Area InformationINDIANAPOLIS OVERVIEW

INDIANAPOLIS INTERNATIONAL AIRPORT

INDIANAPOLIS SKYLINE

INDIANAPOLIS MOTOR SPEEDWAY


Avon, Indiana experienced a residential boom throughout the 2000’s due to new affordable housing, an excellent school system and close proximity to Indianapolis. The population growth from 2000 to 2010 was 5.7% and with 2.0% annual population growth from 2010 to 2015. Avon Community School System has 7 elementary schools, 2 intermediate schools, 2 middle schools and a high school with an Advanced Learning Center. In addition to being part of the Indianapolis MSA, Avon is centrally-located with access to I-74 to the north, I-70 to the south and I-465 to the east. The West submarket of Indianapolis consists of just over 1.3 million square feet of office product mostly made up of class “B” institutional-grade office parks and garden/medical office product like Westridge Office Park. Not much new product has recently been brought to the West submarket, and rental rates have remained stable. The majority of the vacancy in the submarket is contained within one large park, known as Waterfront Park, that has multiple 25,000+ square-foot blocks of space.

3 Mile 5 Mile2017 Population 34,662 100,646

2017-2022 Projected Population Growth Rate 1.3% 1.2%

Median Age 38.2 37..0

2017 Number of Households 12,447 36,980

2017 Average Household Income $101,908 $86,033

1 Mile Top 3 Tapestry Segments MiddleburgSoccer MomsGreen Acres

43.3%34.0%22.7%

*Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020. Esri converted Census 2000 data into 2010 geography.

Area InformationAVON / WEST SUBMARKET OVERVIEW

DEMOGRAPHICS*

CONFIDENTIALITY AGREEMENT

Properties: 6781-6845 E. US Highway 36 Avon, Indiana 46123

This CONFIDENTIALITY AGREEMENT (“Agreement”) regarding the Property is made and agreed to by the exclusive listing broker for the Property, Resource Commercial Real Estate, LLC (“Broker”), _______________________________ (“Purchaser”) and _________________________________ (“Purchaser’s Broker”).

The obligation of confidentiality undertaken pursuant to this Agreement shall survive the terms of Broker’s listing agreement with the owner of the Property (the “Owner”). Purchaser and Purchaser’s Broker have requested information from Broker for the purpose of evaluating a possible acquisition of the Property. Owner has instructed Broker to deliver information concerning the Property, much of which is highly confidential, only to those potential purchasers and their brokers who sign this Agreement.

In consideration of the covenants and agreements contained herein, the parties hereby agree as follows:

1. Purchaser and Purchaser’s Broker will not disclose, permit the disclosure of, release, disseminate, or transfer any information obtained hereunder (the “Information”) to any other person or entity.

2. If Purchaser and Purchaser’s Broker is a corporation, partnership, limited liability company, or other non-natural legal entity, the person(s) signing this Agreement on its behalf will take all appropriate precautions to limit the dissemination of the Information only to those persons within the entity who have need to know of the Information and who are specifically aware of this Agreement and agree to honor it.

3. This Agreement applies to all of the Information received from Broker, now or in the future, which is not readily available to the general public. Purchaser and Purchaser’s Broker understand that all of the Information shall be deemed confidential, valuable, and proprietary such that its unauthorized disclosure, even without intent to harm, could cause substantial and irreparable harm to Owner and Broker.

4. All of the Information shall be used for the sole purpose of evaluating the potential acquisition of the Property, and it shall not at any time or in any manner be used for any other purpose.

5. Regarding the Property, Purchaser and Purchaser’s Broker shall not, without Broker’s or Owner’s written permission, directly contact any persons other than Broker. Such persons include, without limitation, Owner’s employees, suppliers, and tenants.

6. Purchaser and Purchaser’s Broker acknowledge that in conjunction with the purchase of the Property: (i) Purchaser is a principal and is not an agent working on behalf of any other party (except advisors working on behalf of their pension fund clients), and (ii) in the event that Purchaser is working with any other broker or agent other than Broker and Purchaser’s Broker, Purchaser will be solely responsible for paying such broker’s or agent’s fee.

7. Neither Broker nor Owner makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the Information received and Purchaser and Purchaser’s Broker expressly waive all rights of recourse against Broker and Owner with respect to the same.

8. The person(s) signing on behalf of Purchaser and on behalf of Purchaser’s Broker represent that they have the authority to bind Purchaser and Purchaser’s Broker.

17

RESOURCE COMMERCIAL REAL ESTATE

9. Unless otherwise agreed to in writing, Broker is the agent of Owner only.

10. This Agreement shall be governed and construed in accordance with the laws of the State of Indiana.

If Purchaser and Purchaser’s Broker are in agreement with the foregoing, please sign below and email to [email protected]. Broker may rely upon the signing of this Agreement as confirmation of Purchaser and Purchaser’s Broker acceptance of, and agreement to be bound by the terms of, this Agreement.

Hereby Agreed to and Accepted this ____ day of ____________, 2018.

Purchaser:

By:

Printed Name:

Title:

Address:

City, State & Zip

Phone:

Email:

Purchaser’s Broker:

By:

Printed Name:

Title:

Address:

City, State & Zip:

Phone:

Email:

18RESOURCE COMMERCIAL REAL ESTATE


RESOURCE Commercial Real Estate9339 Priority Way West Drive Suite 120Indianapolis, IN 46240

www.RCRE.com

KEVIN DICKDirect 317.663.6544Mobile [email protected]

PAUL DICK, CCIMDirect 317.663.6540Mobile [email protected]

DAVID CIECHANOWICZ, SMA CPM®

Mobile [email protected]

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