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THE ROCKSIDE OFFICE PORTFOLIO n CLEVELAND, OHIO

CONFIDENTIAL OFFERING MEMORANDUM

Class B Office Portfolio n Six Buildings n 422,121 Square Feet n Premier Cleveland Submarket

I.

EXECUTIVE SUMMARY...................................5

II. PROPERTY OVERVIEW.................................13


III. LOCATION & MARKET OVERVIEW...............29
IV. TENANT OVERVIEW......................................41
V. FINANCIAL OVERVIEW..................................73
VI. TRANSACTION GUIDELINES........................85

TABLE OF CONTENTS
Contact Information

For information on debt availability, please contact:

James J. Postweiler

Rob Roe

Peter Harwood

Jon Vanderplough

Bryant Gewalt

Keith A. Largay

Managing Director
Tel +1 312.228.2661
jim.postweiler@am.jll.com

Managing Director
Tel +1 216.937.4371
rob.roe@am.jll.com

Executive Vice President


Tel +1 312.228.2124
peter.harwood@am.jll.com

Vice President
Tel +1 216.937.4376
jon.vanderplough@am.jll.com

Associate
Tel +1 312.228.3193
bryant.gewalt@am.jll.com

Executive Vice President


Tel +1 312.228.3111
keith.largay@am.jll.com

Disclaimer

The material in this Investment Offering Introduction is confidential, furnished solely for the purpose of considering the AS IS acquisition of The Rockside Portfolio located near Cleveland, Ohio. The information is not to be used for any other purpose or to be made
available to any other person without the express written consent of Agent on behalf of Owner. The material is based, in part, upon information supplied by Owner and, in part, upon information obtained by Agent from sources they deem to be reliable. Summaries
contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is
made by Owner, Agent or any of their respective related agents or entities as to the accuracy or completeness of the information contained herein. Prospective investors should make their own investigations, projections and conclusions regarding the Property. It
is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engineering and environmental inspections as they deem necessary to determine the condition of the Property and the existence or
absence of any potentially hazardous materials used in the construction or maintenance of the Property. No representations, expressed or implied, are made as to the foregoing matters by the Owner, Agent or any of their respective officers, employees, affiliates
and/or agents.

EXECUTIVE SUMMARY

THE ROCKSIDE OFFICE PORTFOLIO


5

EXECUTIVE SUM MARY

THE ROCKSIDE OFFICE PORTFOLIO

THE OFFERING

Jones Lang LaSalle is pleased to exclusively offer for sale the fee-simple ownership interest in The Rockside Office Portfolio (the Portfolio) located in suburban Cleveland, Ohio. The Portfolio consists of six
buildings totaling 422,121 square feet as outlined in the table below, and a 7-acre land parcel.

Net Rentable Area Summary


Property

Occupied

Vacant

Total

Re-measured NRA

% Occupied

Freedom Square I

26,934

13,501

40,435

40,710

66.6%

Freedom Square II

93,130

21,598

114,728

116,162

81.2%

Freedom Square III

14,614

56,438

71,052

71,025

20.6%

Rock Run North

57,582

5,712

63,294

62,278

91.0%

Rock Run Center

56,276

7,018

63,294

62,223

88.9%

Oak Tree

28,371

40,947

69,318

68,471

40.9%

Total / Wtd. Avg.

276,907

145,214

422,121

420,869

65.6%

The Rockside Office Portfolio is a modern, six building, Class 5, multi-tenant


suburban office complex approximately 10 miles southwest of downtown
Cleveland. The Portfolio contains 422,121 square feet of net rentable area
and an approximate 7-acre land parcel adjacent to the 6111 Oak Tree
building. The Portfolio is 65.6 percent leased to a high-quality tenant roster
of investment grade and credit worthy tenants including JP Morgan Chase,
Mutual of Omaha and Wells Fargo Financial Services. The Property is ideally
situated in the vibrant Rockside Corridor submarket, a preferred submarket
for tenants looking for convenient transportation access, abundant parking
and prime amenities.

The Portfolio was constructed between 1980 and 1997 as part of the Rockside Road Business Park development. The Property features a modern infrastructure, flexible floor plates to accommodate a variety
of tenants, a fitness center, an amphitheater and a beautifully landscaped business park with an outdoor courtyard.
The Northeast Ohio region is anchored by Greater Cleveland and ranks as the 12th largest region in the United States with more than 4.1 million residents and a $140 billion economy. Known for its central
location and access to national transportation hubs, Northeast Ohio offers a wealth of transportation resources, including five interstate highways, Class 1 railroads and a variety of ports and sea port facilities
as well as the ability to reach over 50 percent of the U.S. population within a one-day drive. Cleveland also boasts a large, educated workforce, combined with a superior healthcare and bioscience industry
and a strong corporate foundation. In fact, the Cleveland region also boasts the fourth-heaviest concentration of headquarters employment 38 percent higher than the national average.

Investment Summary
Buildings:
Square Feet:
Occupancy:
Market Occupancy:
In-Place NOI:
Projected Stabilized NOI:

6 Building Portfolio
422,121
66%
82.4%
$2,198,864
$3,860,770

The Portfolios great location, exceptional access, efficient and varied floorplate sizes and numerous area amenities create the flexibility to meet a
variety of business needs. The offering presents the attractive opportunity to acquire a value-add office portfolio in a prime suburban location at a
significant discount to replacement cost.

EXECUTIVE SUM MARY

INVESTMENT HIGHLIGHTS
Convenient Location

The Rockside Office Portfolio is strategically located at the core of the highly desirable Rockside Corridor submarket
within the Cleveland suburban office market. Situated just southwest of the intersection of Interstate 480 (I-480) and
Interstate 77 (I-77) and proximate to the full four-way interchange of I-77 and Rockside Road, the Property is only 15
minutes from downtown Cleveland as well as the Cleveland Hopkins Airport. With convenient access to the surrounding
region via I-480 and I-77, the Property offers tenants and visitors a convenient and practical commute from most of
the greater Cleveland region. The Propertys position in Independence, Ohio is a preferred destination for corporate
office users due to its well positioned location, access to all segments of the workforce, well-established workforce
demographics and proximity to both downtown Cleveland, Akron as well as both airports.

Competitive Landscape & Parking Constraints


Given the Portfolios attractive size, flexible floorplates and strong parking ratios, the Rockside Office Portfolio is
extremely well positioned in the market. As corporations look to design more efficient workplace solutions, the increased
density has driven the need for additional parking. Parking ratios have become an important driver of recent office
transactions in the Cleveland suburban office market and most current availabilities cannot accommodate more than
4 spaces per 1,000 square feet. As parking ratios approach 5 per 1,000 square feet, building owners are constantly
challenged with the parking constraints at suburban buildings developed to a lower parking ratio. The Portfolio parking
ratios range from 4.0 to 5.5 spaces per 1,000 square feet, providing it with a significant competitive advantage.

Flexible Floorplate Design with Efficient Multi-Tenant Ability


The Rockside Office Portfolio boasts flexible floorplates ranging from 10,200 square feet to 55,800 square feet that
can be easily and efficiently configured to accommodate any multi-tenant needs. This allows for maximum flexibility for
both large and small prospective tenants.

Discount to Replacement Cost


Reproduction of similar office buildings in suburban Cleveland is conservatively estimated to be $175 to $225 per
square foot. The limited amount of developable land in the market along with a myriad of other factors such as
lenders pre-leasing have contributed to the lack of any recent or projected near-term speculative office development
in Cleveland. Coupled with this lack of new office development, properties such as Freedom Square, Rock Run and
Oak Tree will continue to benefit from the positive leasing momentum occurring in the submarket as market conditions
tighten, vacancy rates decline and significant upward pressure is placed on rental rates.
8

THE ROCKSIDE OFFICE PORTFOLIO

Significant Upside Potential


The Property provides an investor with significant value-enhancement potential. The Property is currently 65.6 percent occupied, allowing for net operating income to increase significantly to stabilization.
The net operating income is projected to more than double upon stabilization, increasing from $2.2 million currently in place to $3.8 million through the lease-up of the currently vacant space to a stabilized
occupancy of approximately 89 percent. In addition, the Property offers stability through current in-place income from investment grade and creditworthy tenants with an average remaining lease term of 5.45
years. In addition, over 30 percent of the currently occupied space has leases that expire after 2020.

Rockside Corridor Submarket


Located within the Rockside Corridor, the City of Independence offers a broad and varied community where businesses thrive. The city and submarket are an excellent location choice for many companies due
to its convenient location, low real estate taxes, first-class office space, high concentrations of business and employees, free parking and advanced technological infrastructure. Major national and international
corporations located in the Rockside submarket include Cleveland Clinic Foundation, Kitchler Electric, Travelers Insurance, ADP, Alcoa, Cello Partnership, Ferro Corporation, Farmers Group and Honeywell.
Proximity to both the airport and downtown as well as the markets mobility serves as critical features in attracting corporations to this market.
9

EXECUTIVE SUM MARY


10

Cost of Doing Business & Strong Incentives


Highly competitive operating costs combined with an
available and dedicated workforce make the Cleveland
Region a desirable business location and one of the nations
most affordable cities. Specifically, the regions cost of living
is four percent lower than the national average. The greater
Cleveland region also supports its corporate community
with an incredibly competitive business environment.
Local companies enjoy the lowest real estate tax rate in
Cuyahoga County, surpassing any abatement program in
the surrounding area. Moreover, Ohio is among the top three
states for favorable business tax rates on new investments.
The Cleveland Region also boasts an impressive variety of
incentive offerings such as the $2.1 billion Ohio Third Frontier,
an internationally recognized economic development initiative
that provides funding to Ohio technology-based companies to
create new products, companies, industries and jobs.

THE ROCKSIDE OFFICE PORTFOLIO

Significant Headquarter Presence


The Cleveland region boasts the fourth-heaviest concentration of headquarters employment 38 percent higher than
the national average. Proportionately, the region outpaces much larger markets, including Chicago, Atlanta, New
York and Los Angeles. In fact, headquarters employment in Northeast Ohio has grown nearly 160 percent from 1990
to 2013; while U.S. headquarters employment has increased only 22 percent. The Cleveland area is also home to
the significant operation centers for 24 FORTUNE 500 and FORTUNE 1000 companies, including but not limited to
Goodyear Tire, The J.M. Smucker Company, Progressive Casualty Insurance, The Shermin-Williams Company and
Travel Centers of America.

Superior Transportation Access


Cleveland has superior connectivity throughout the region. Known for its central location and access to national
transportation hubs, Northeast Ohio offers a wealth of transportation resources, including Cleveland Hopkins Airport,
Akron-Canton Airport, five interstate highways, Class 1 railroads and a variety of ports and sea port facilities. Northeast
Ohio ports are also Foreign Trade Zones, providing substantial savings for international shippers. Accordingly, it is
possible to reach 50 percent of the U.S. population within a one-day drive. Because of this extensive highway and
interstate network, Cleveland has quickly become the location of choice for a variety of businesses and industries
ranging from warehousing and logistics to life sciences and manufacturing.

Major Tenant Summary


Tenants

Leased RSF

% of Property Lease Expiration Current Net Rent PSF

Sedgwick Claim Management

69,491

16.5%

4/14/23

$16.87

Hylant Group

24,714

5.9%

6/30/23

$19.00

Sterling Backcheck

28,371

6.7%

3/31/17

$17.50

Acumen Solutions

24,958

5.9%

2/28/25

$11.50

147,534

35.0%

7.5 Years

$16.44

Total/Weighted Average

11

PROPERTY OVERVIEW

THE ROCKSIDE OFFICE PORTFOLIO


13

PROPERT Y OVERVIEW

Property Overview

The Rockside Portfolio is a well located office complex in the Rockside Corridor submarket and is situated on the southwest corner at the confluence and full four-way interchange of Interstate 480 and Interstate 77.

Rockside Office Portfolio


City:
Independence, OH
Square Feet:
422,121
Year Built:
Floors:

1980
4

Freedom Square I

Freedom Square II
1987
6

Freedom Square III


1997
4

Rock Run North


1,984
2

Rock Run Center


1985
2

6111 Oak Tree


1,979.0
4

Height (Feet):
Zoning:

54 Feet
Office Building/Research

66 Feet
Office Building/Research

54 Feet
Office Building/Research

29 Feet
Shopping Mall District

29 Feet
Shopping Mall District

54 Feet
"Office Building/Research

21' x 24'
24' x 24'

25' x 27'

30' x 36' 6"


30' x 24' 8"

25' x 25'

25' x 25'

25' x 25'

12'
8' 0"

12' 6"
8' 6"

12' 6"
8' 6"

12'
8' 0" to 8' 6"

12'
8' 0" to 8' 6"

12'
8' 6"

Bay Spacing
Interior:

Ceiling Heights
Floor-to-Deck:
Average Finished:

14

71 S t E

Canal

Fw
e n n ings

Rda

21
THE ROCKSIDE OFFICE
PORTFOLIO

oadview

Sch

aaf

Rd

Bre

cks

General Property Information

S ky

line

Dr

Freedom Square III


6.10 Acres
196 / 40 Garage
3 curb cuts along Freedom
Square Drive

Rock Run Center


6.16 Acres
267
2 curb cuts along Lombardo
Center

6111 Oak Tree


Granger Rd E
3.99 Acres
487
Willow
1 curb cut along Oak Tree
Boulevard

D
rN

480
Dorset Dr

Plaza
Center

Rock Run17
North
2.08 Acres
272
2 curb cuts along Lombardo
Center

Wa r n e

Granger Rd E

Freedom Square II
2.31 Acres
308 / 37 Garage
3 curb cuts along Patriots
Way

cast e r

Freedom Square I
3.82 Acres
205
5 curb cuts along Freedom
Square Drive and Patriots
Way

Lan

Property Element
Site Area
Parking
Access

Rd

Site Description

r Rd

ville

Rockside R

Rock Run Business Campus

21
77

Oak Tree Place


Saint Peters
Cemetery

176

Ridgewood Dr E

d
ille R

c ksv

Freedom Square

Bre

D e c k er Dr E

R o c k s i d e Wo o d s B l v d

Crossview Rd

Cree

k Rd

D a r t m o o r Av e

roi Dr

Av e

Maple Shade
Cemetery

R ocksid

Lafa yette Blvd

15

FREEDOM SQUARE II SITE PLAN

Patriots Way

Freedom
Square II

Dr

lvd N

Freedom
Square I

Freedom Square

Oak Tree B

PROPERT Y OVERVIEW

FREEDOM SQUARE I SITE PLAN

ay
Patriots W

FREEDOM SQUARE III SITE PLAN

Freedom Square
Dr

16

ROCK RUN NORTH SITE PLAN

Freedom
Square III

Rock Run
North

THE ROCKSIDE OFFICE PORTFOLIO

ROCK RUN CENTER SITE PLAN

OAK TREE PLACE SITE PLAN

ree Blv
O ak T

Rock Run
Center

Oak Tree
Place

Lombardo Center

17

PROPERT Y OVERVIEW
18

Construction Detail
Property Element Freedom Square I

Freedom Square II

Freedom Square III

Rock Run North

Rock Run Center

6111 Oak Tree

Foundation

Poured in-place concrete


slab

Poured in-place concrete


Poured in-place concrete
Poured-in-place reinforced
wall / precast concrete panel wall / precast concrete panel concrete slab on grade
with exterior brick veneer
precast panels supported by
concrete footings

Poured-in-place reinforced
Poured in-place concrete
concrete slab on grade
wall / precast concrete panel
with exterior brick veneer
precast panels supported by
concrete footings

Superstructure

Structural steel frame

Structural steel frame

Structural steel frame

Structural steel frame

Structural steel frame

Structural steel frame

Floor Loading

80 pounds per square foot


and 20 pounds per square
foot partition decking

70 pounds per square foot


and 20 pounds per square
foot partition decking

80 pounds per square foot


and 20 pounds per square
foot partition decking

80 pounds per square foot


and 20 pounds per square
foot partition decking

80 pounds per square foot


and 20 pounds per square
foot partition decking

80 pounds per square foot


and 20 pounds per square
foot partition decking

Exterior Finish

Stone finished precast


concrete panels, glass
panels and glass spandrel
panels

Stone finished precast


concrete panels and glass
panels

Stone finished precast


concrete panels and glass
panels

Brick veneer precast panels


and glass panels

Brick veneer precast panels


and glass panels

Stone finished precast


concrete panels and glass
panels

Roof Type

Single-ply EDPM membrane Ballasted 4-ply asphalt built


up roof system

Ballasted single-ply EDPM


membrane

Ballasted 4-ply asphalt built


up roof system

Ballasted 4-ply asphalt built


up roof system

Ballasted 4-ply asphalt built


up roof system

Windows

Glazed, insulated double


pane glass panels

Glazed, insulated double


pane glass panels

Glazed, insulated double


pane glass panels

Glazed, insulated double


pane glass panels

Glazed, insulated double


pane glass panels

Glazed, insulated double


pane glass panels

Pedestrian Door

Double-leaf aluminum
bronzed color framed glass
doors

Double-leaf stainless steel


Double-leaf stainless steel
clad framed glass doors that clad framed glass doors
open into a vestibule and
finally the main lobby

Double-leaf stainless steel


clad framed glass doors

Double-leaf stainless steel


clad framed glass doors

Double-leaf stainless steel


clad framed glass doors

THE ROCKSIDE OFFICE PORTFOLIO

Interior Detail
Property Element Freedom Square I

Freedom Square II

Freedom Square III

Rock Run North

Rock Run Center

6111 Oak Tree

New wall ceramic floor


New wall ceramic floor
Floating drywall ceiling / vinyl
tile, wall covering and
tile, wall covering and
wall covering / wood accent
commercial grade carpet tile commercial grade carpet tile wall

Lobby

Ceramic tile flooring covering Polished granite stone tile /


/ rich stained hardwood / pink mirrored panels
marble accents

Polished granite stone tile /


mirrored panels

Flooring

Commercial grade carpet


and ceramic tile

Commercial grade carpet


and ceramic tile

Commercial grade short


Commercial grade short
Commercial grade short
Commercial grade carpet
loop carpet / carpet tile and loop carpet / carpet tile and loop carpet / carpet tile and and ceramic tile
ceramic / composite vinyl tile ceramic / composite vinyl tile ceramic / composite vinyl tile

Ceilings

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

2 x 2 and 2' x 4' acoustical


lay-in ceiling tiles

Walls

Painted, vinyl or cloth


covered gypsum wallboard

Painted, vinyl or cloth


covered gypsum wallboard

Painted, vinyl or cloth


covered gypsum wallboard

Painted, vinyl or cloth


covered gypsum wallboard

Painted, vinyl or cloth


covered gypsum wallboard

Painted, vinyl or cloth


covered gypsum wallboard

Lighting

2' x 2' and 2' x 4' recessed


ceiling mounted, T12
fluorescent fixtures

2' x 2' and 2' x 4' recessed


2' x 2' and 2' x 4' recessed
ceiling mounted, T8 and T12 ceiling mounted, T8
fluorescent fixtures
fluorescent fixtures

2' x 2' and 2' x 4' recessed


ceiling mounted, T8
fluorescent fixtures

2' x 2' and 2' x 4' recessed


ceiling mounted, T8
fluorescent fixtures

2' x 2' and 2' x 4' recessed


ceiling mounted, T8 and T12
fluorescent fixtures

Restroom

One mens and one womens One mens and one womens One mens and one womens One mens and one womens One mens and one womens One mens and one womens
restroom
restroom
restroom
restroom
restroom
restroom

Building Security

Daily roaming security patrol Daily roaming security patrol Daily roaming security patrol Daily roaming security patrol Daily roaming security patrol Daily roaming security patrol
/ electronic keycard access / BAS / electronic keycard
/ electronic keycard access / electronic keycard access / building keycard access
/ electronic keycard access
access

19

PROPERT Y OVERVIEW

Mechanical Detail
Property Element Freedom Square I

Freedom Square II

Freedom Square III

Rock Run North

Rock Run Center

6111 Oak Tree

HVAC

Rooftop mounted; split DX


cooling system / Carrier
Corporation air handling unit
and two Carrier Corporation
condensing units / Carrier
Corporation Moduline
variable air volume (VAV)
boxes

Central system DX cooling


system / Trane water-cooled
semi-hermetic compressors
/ Trane variable air volume
(VAV) boxes

McQuay water-cooled heat


pumps / BAC fluid cooler and
three building loop pumps
/ Delta Controls state-ofthe-art Building Automation
System (BAS)

Carrier Corporation rooftop


mounted, package HVAC
units / variable air volume
(VAV) boxes / Delta Controls
state-of-the-art Building
Automation System (BAS)

Carrier Corporation rooftop


mounted, package HVAC
units / variable air volume
(VAV) boxes / Delta Controls
state-of-the-art Building
Automation System (BAS)

Two 75-ton Carrier


Corporation rooftop mounted
air handling units (RTU) /
variable air volume (VAV)
boxes / one Peerless boiler
supplying hot water

Emergency Power

Rechargeable battery backup Pad-mounted diesel


with a 90 minute capacity
emergency generator

Plumbing Systems Domestic water passes


through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by a gas
fired hot water heater

Domestic water passes


through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by a gas
fired hot water heater

Rechargeable battery backup Rechargeable battery backup Rechargeable battery backup Rechargeable battery backup
with a 90 minute capacity
with a 90 minute capacity
with a 90 minute capacity
with a 90 minute capacity
Domestic water passes
through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by electric
water heaters located on
each floor

Domestic water passes


through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by a gas
fired hot water heater

Domestic water passes


through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by a
20-gallon gas fired hot water
heater

Vertical
Transportation

2 Dover hydraulic passenger 3 Dover hydraulic passenger 2 Dover hydraulic passenger There is no building common There is no building common 2 ESI hydraulic passenger
elevators
elevators
elevators
area vertical transportation area vertical transportation elevators

Fire & Life Safety

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

Property Element Universal


Utilities

20

Domestic water passes


through a domestic water
meter and feeds each floor
via a booster pump / hot
water is generated by a gas
fired hot water heater

Electricity: The Illuminating Company (A First Energy Company)


Water: The City of Cleveland Department of Water
Sewer: Northeast Ohio Regional Sewer District
Natural Gas: Dominion East Ohio Gas Company
Telecommunications: AT&T

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

Pull stations, audio-visual


devices, smoke detectors,
and HVAC duct detectors /
sprinkler systems

THE ROCKSIDE OFFICE PORTFOLIO

21

PROPERT Y OVERVIEW

FREEDOM SQUARE I | FIRST FLOOR FLOORPLAN

22

THE ROCKSIDE OFFICE PORTFOLIO

FREEDOM SQUARE II | SECOND FLOOR FLOORPLAN

EXST
E. PANEL

EXST
E. PANEL
EXST
E. PANEL

EXST
E. PANEL

23

PROPERT Y OVERVIEW
24

FREEDOM SQUARE III | FOURTH FLOOR FLOORPLAN

THE ROCKSIDE OFFICE PORTFOLIO

ROCK RUN NORTH | FIRST FLOOR FLOORPLAN

EP

EP

EP

EP

EP

MECH.
JAN. CLO.

EP

UP

UP

WOMEN'S
RESTROOM

MEN'S

RESTROOM

WOMEN'S
RESTROOM

EXST E.
PANELS

STAIR

STAIR
MEN'S

BUILDING
AMPHITHEATER

RESTROOM

BLDG. ELECT.

BLDG.
TELE.

25

PROPERT Y OVERVIEW

ROCK RUN CENTER | FIRST FLOOR FLOORPLAN

BRIDGE ABOVE

EXST
E. PANEL
EXST
E. PANEL

ELEC.
ROOM
SHOWERS
EXST
E. PANEL

SHOWERS

JANITOR

VENDING

WOMEN'S
UP

MEN'S
R
EXST
RAISED
ACCESS
FLOORING

EXISTING MILLWORK TO REMAIN


IF POSSIBLE. PROVIDE NEW AS
NEEDED.
NEW
DISHWASHER

3" CONDUIT
FROM CEILING
TELEPHONE
PANEL

STAIR
RAMP
UP

ELECTRICAL
PANEL
PARTIAL
HEIGHT
WALL
T
T

26

UP

APPROX.
LOCATION OF
HVAC VENTS IN
CEILING

TELE.

BLANK

JUNCTION
BOX

STAIR
EXST
E. PANEL

THE ROCKSIDE OFFICE PORTFOLIO

OAK TREE PLACE | THIRD FLOOR FLOORPLAN

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

CAPTG

ELECT. RM.

JANITOR

WOMEN'S

STAIR

STAIR

MEN'S

27

LOCATION & MARKET OVERVIEW

THE ROCKSIDE OFFICE PORTFOLIO


29

LOCATION OVERVIEW

Location Overview

The Portfolio is strategically located at the core of the highly desirable


Rockside Corridor submarket within the Cleveland suburban office
market. Situated just southwest of the intersection of Interstate 480
(I-480) and Interstate 77 (I-77) and proximate to the full four-way
interchange between I-77 and Rockside Road, the Portfolio is only
fifteen minutes from downtown Cleveland as well as the Cleveland
Hopkins Airport.

The Greater Cleveland Region


The Northeast Ohio region is anchored by Greater Cleveland and
ranks as the 12th largest region in the United States with more than
4.1 million residents and a $140 billion economy. Historically known
as the heart of the rust belt, the Northeast Ohio economy has become
highly diverse and no longer reliant on the steel and automotive
sectors. While still heavily based on manufacturing, other sectors
such as health care, science and engineering, biotechnology and
biomedical and education have flourished throughout the region.
Cleveland ranks highly among U.S. markets in the number of
company headquarters and FORTUNE 500 and FORTUNE 1000
companies. Additionally, a significant number of overseas companies
have significant U.S. operations centers in Northeast Ohio. Further,
over 30 institutions of higher learning are located in Northeast Ohio
with over 27,000 college graduates per year.

30

THE ROCKSIDE OFFICE PORTFOLIO

Rockside Corridor Submarket


Centrally located at the crossroads of I-480 and I-77 in Independence, Ohio, the Rockside Corridor
(just west of I-77) is comprised of 38 Class A and Class B office buildings, totaling approximately 3.5
million square feet. Ten Class A properties are included in this set and total 1.3 million square feet;
while 28 Class B buildings make up the remainder and total 2.2 million square feet.
Located within the Rockside Corridor submarket, the City of Independence offers a broad and varied
community where businesses thrive. The city and submarket are an ideal location for many companies
due to their convenient location, low real estate taxes, first-class office space, high concentrations of
business and employees, free parking and the advanced technological infrastructure. Major national
and international corporations located in the Rockside submarket include Cleveland Clinic Foundation,
Kitchler Electric, Travelers Insurance, ADP, Alcoa, Cello Partnership, Ferro Corporation, Farmers
Group and Honeywell. Proximity to both the airport and downtown as well as the markets mobility
serves as critical features in attracting corporations to this market.

Rockside Corridor Top Employers


Company
Cleveland Clinic Foundation
Kitchler Electric
Traveler's Insurance
ADP
Alcoa Products and Services
Cello Partnership
Ferro Corp.
Farmers Group Incorporated
Honeywell International
Cavaliers Holdings LLC

INDUSTRY
Health Care
Manufacturing
Home and Business Products
Payroll Processing
Manufacturing
Communications
Research and Development
Training
Manufacturing
Professional Basketball Team

Number of Employees
2,058
410
256
240
224
205
181
170
148
77

31

LOCATION OVERVIEW

Highly Educated and Skilled Workforce


For corporations to succeed in such a diverse and competitive market, it is critical to
attract and have access to top intellectual talent. The Portfolio provides an outstanding
opportunity for a future owner to capitalize on the surrounding areas abundant, welleducated workforce. The Cleveland region has over 25 accredited colleges and universities,
52 two-year training programs and 63 non-degree (certificates/diplomas) training centers.
With more than 320,000 enrolled college students, the Cleveland region grants 51,000 postsecondary degrees and certificates annually and spends over $4 billion annually on college
expenditures. Further, within 150 miles, the area boasts almost 200 four-year colleges and
over 200 two-year colleges according to EMSI and IPEDS.

Quality of Life
Todays workforce increasingly calls the suburbs home due to the higher quality life that
these communities offer. While city living is attractive to a younger population, many people
and their families move to the suburbs to take advantage of a lower cost of living, reduced
commute times, decreased crime rates and increased property sizes. The vibrant Cleveland
region has everything that an employee needs including reliable public transportation, short
commutes, great schools and neighborhoods as well as a variety of cultural and recreational
resources. Further, the region boasts everything that a larger metropolitan area does, but
at a significantly more affordable price, making the region such an attractive place to live,
works and invests.

32

THE ROCKSIDE OFFICE PORTFOLIO

Cost of Doing Business & Strong Incentives


Highly competitive operating costs combined with an available and dedicated workforce make the Cleveland
Region a desirable business location and one of the nations most affordable cities. Specifically, the regions
cost of living is four percent lower than the national average. The greater Cleveland region also supports
its corporate community with an incredibly competitive business environment. Local companies enjoy the
lowest real estate tax rate in Cuyahoga County, surpassing any abatement program in the surrounding
area. Moreover, Ohio is among the top three states for favorable business tax rates on new investments.
And, the Cleveland Region boasts an impressive variety of incentive offerings such as the $2.1 billion Ohio
Third Frontier, an internationally recognized economic development initiative that provides funding to Ohio
technology-based companies to create new products, companies, industries and jobs.
Additionally, Ohio is among the top three states for favorable business tax rates on new investments. State
tax reforms have lowered business tax burdens by more than half, eliminating taxes on inventory, corporate
income and capital investments. Further, Ohios Commercial Activity Tax (CAT) is a low 0.26 percent on
gross receipts exceeding $1 million and is not applied to gross receipts outside of Ohio.

6.0
%
6.8
4.6
%

Minnesota

Indiana

7.2

Michigan

- Ernst & Young, May 2011

4.4
Ohio

Illinois

4.5

Wisconsin

With a strong, diversified economy led by both established and emerging industries, extremely low costs of
living and doing business, a pro-business tax structure, the Cleveland region is poised to continue seeing
strong improvements in market fundamentals, including increased office demand and leasing velocity,
positive absorption and rental rate appreciation in the near-term.
Source: ClevelandPlus

Maximize Profits with a Competitive-Cost


of Doing Business

No

tax on corporate profits

No

tax on machinery, equipment and R&D investments

No

tax on products sold to customers outside of Ohio

No

tax on tangible personal property

33

LOCATION OVERVIEW

Significant Headquarter Presence


The Cleveland region also boasts the fourth-heaviest concentration of headquarters employment
38 percent higher than the national average. Proportionately, the region outpaces much larger
markets, including Chicago, Atlanta, New York and Los Angeles. In fact, headquarters employment
in Northeast Ohio has grown nearly 160 percent from 1990 to 2013; while U.S. headquarters
employment has increased only 22 percent. Specifically, Northeast Ohio headquarters employment
has grown from 19,000 employees in 1990 to nearly 49,000 in 2013.
The Cleveland area is also home to the significant operation centers for 24 FORTUNE 500 and
FORTUNE 1000 companies, including Goodyear Tire, The J.M. Smucker Company, Progressive
Casualty Insurance, The Sherwin-Williams Company and Travel Centers of America. Further
solidifying their commitment to the area, Eaton Corp., Goodyear Tire and the J.M. Smucker
Company are among the dozens of corporations that have invested in their headquarters in recent
years.
These headquarters locations are supported by a world-class professional services cluster of
leading financial, legal and insurance firms. Successful businesses need the support of top-tier
professional services, such as accounting, legal and marketing. As such, the Cleveland region
is home to one of the worlds largest financial sectors and one of the nations largest legal
communities:

Seven

of the regions law firms employing 100 or more attorneys - such as Jones Day and
Squire Sanders - have five or more offices across the globe.

The

Cleveland region is home to major banks such as KeyCorp (Cleveland) and FirstMerit
(Akron), and is the headquarters of the Fourth Federal Reserve District, one of twelve regional
Reserve Banks in the Federal Reserve System.

With

approximately 58,000 workers, Northeast Ohio employs more individuals in the financial
services industry than any other Ohio region.

Source: Economy.com, Cleveland State University JobsOhio Report, March 2013

34

FORTUNE 500 & 1000 Companies


Aleris

KeyCorp

American Greetings Corporation

Lincoln Electric Holdings, Inc.

Applied Industrial Technologies

Lubrizol Corporation

Cliffs Natural Resources

Medical Mutual

Diebold, Inc.

Nacco Industries

Eaton Corporation

Parker Hannifin Corporation

Ferro Corporation

Polyone

First Energy Corporation

Progressive Casualty Insurance Company

Goodyear Tire & Rubber Company

The Sherwin-Williams Company

Invacare Corporation

The Timken Company

Jo Ann Stores, Inc.

Travel Centers of America

The J.M. Smucker Company

RPM International

Were proud to call


Northeast Ohio home.
Its talented workforce,
commitment to innovation
and rewarding lifestyle
make Cleveland Plus a great
business opportunity.

- TIM TIMKEN

CHAIRMAN, THE TIMKEN COMPANY

Major Industries
Advanced Energy
Advanced Manufacturing
Advanced Materials
Aerospace
Automotive
Biomedical
Food Processing
Financial Services
Instruments and Controls
Mechanical Engineering
Medical Devices
Oil and Gas
Professional Services

THE ROCKSIDE OFFICE PORTFOLIO

90

Transportation Access
Airports

Cleveland Hopkins International Airport is the areas major national and international
airport. The Cleveland Hopkins International Airport offers 136 daily departures to 40 nonstop destinations, including the headquarters of many Fortune 500 companies and large
markets around the world. In fact, Cleveland Hopkins holds the distinction of having the
first airport-to-downtown rapid transit connection in North America, which was established
in 1968. The Akron Canton Airport, better known for its low fares and relaxing environment,
offers an additional 35 daily departures. Major airlines that serve these airports include Air
Canada, AirTran, American Airlines, Delta, Frontier, Southwest, United and US Airways.
Cargo carriers include Continental, Federal Express, ServisAir GlobeGround, Southwest,
UPS, United States Post Office and World Wide Flight Services.

Roads
The Portfolio is well situated for commuting by car with exceptional access to two of
the Cleveland suburbs major Interstates, I-490 and I-77, which connect the Property to
downtown Cleveland, Interstate 80, a national east-west connector, and Interstate 90,
another national east-west connector located to the north. The Portfolios location just
south of the intersection of I-77 and I-480 at the full four-way interchange of I-77 and
Rockside Road enables immediate and seamless access to the best highways to reach
any of these destinations.

90

ALT
6

90

6
20

Cleveland
71

90

322
87

490

271

10

43

77

480

480

94

71
237

42

14

176

ROCKSIDE OFFICE PORTFOLIO

Commuter Rail & Bus Transportation

80
The Cleveland region has both a bus and mass transit rail system operated by the Greater
Cleveland Regional Transit Authority (RTA). The rail portion is officially called the RTA
Rapid Transit; however, local residents refer to it as The Rapid. The Rapid consists of
two light rail lines, known as the Green and Blue Lines, and a heavy rail line, the Red Line.

An RTA bus stop is approximately one mile east of the Rockside Portfolio at the
intersection of Rockside Road and Brecksville Road. Specifically, the RTA 77F bus line
connects the area to downtown Cleveland, The Rapid as well as the Citys international
and national airports.

322

77

82
80

180

21

14

271
480

35

LOCATION OVERVIEW

Suburban Cleveland Office Market


The Greater Cleveland Office Market is comprised of 29 million square feet of Class A and Class B office space. At the end of the second quarter 2014, the overall office markets direct vacancy stood at 16.3
percent with a Class A vacancy of 13.6 percent and a Class B vacancy of 17.9 percent. Net Absorption for the second quarter 2014 was approximately 26,000 square feet; while year-to-date net absorption
was approximately 97,000 square feet with office tenants seeking approximately 1.1 million square feet of space in the greater Cleveland marketplace.
In comparison to other suburban areas in the United States, the greater Cleveland region has remained relatively resilient during the various economic cycles. This is due to the diversity of the suburban
Cleveland economy across a broad spectrum of economic sectors, a well-trained and highly educated workforce and a top tier headquarters tenant base. Such a diverse economy offers protection against
cyclical downturns in any one industry, while strong labor pools and the presence of critical facilities for businesses augment the suburban markets economic strength. Similar to many office markets across the
country, the strong growth from 2003 to 2007 pushed overall occupancy to peak levels. While the suburban market did soften with the broader economic recession beginning in 2008, the economic recovery
is accelerating with increased positive net absorption, no new construction and rental rate growth.

Suburban Submarket
Rockside Corridor
Northeast
East
Southeast
South
Southwest
West
Total / Wtd. Avg. Suburban Stock
Total CBD Stock
Total Chicago Office Market

Stock

Vacancy

% Suburban Stock

3,485,885
557,642
4,211,817
952,160
4,714,986
1,096,322
1,875,112
16,893,924
15,453,773
32,347,697

17.6%
25.9%
12.9%
21.0%
18.2%
9.0%
13.8%
16.1%

20.6%
3.3%
24.9%
5.6%
27.9%
6.5%
11.1%
100.0%

Suburban Submarket
Rockside Corridor
Northeast
East
Southeast
South
Southwest
West
Total / Wtd. Avg. Suburban Stock
Total CBD Stock
Total Chicago Office Market

Class B Stock

Vacancy

% Class B Stock

2,160,850
557,642
2,334,637
768,337
2,885,794
1,008,322
1,394,201
11,109,783
9,689,926
20,799,709

17.5%
25.9%
12.9%
22.3%
19.2%
9.8%
16.5%
16.9%

19.4%
5.0%
21.0%
6.9%
26.0%
9.1%
12.5%
100.0%

Rockside Corridor Submarket


As of the second quarter 2014, total vacancy across both classes stood at 17.7 percent (618,000 square feet), down from the previous quarter of 17.9 percent. Vacancy rates were slightly higher in Class A
properties at 18.1 percent (240,000 square feet) while the Class B vacancy rate stood at 17.5 percent (378,000 square feet). Over the course of the last few years, the submarket has experienced a surge of
interest by occupiers and has seen a number of transactions finalized, resulting in positive absorption of approximately 100,000 square feet since, the majority of which occurred in Class A assets.
The average asking rate in the second quarter stood roughly flat at $17.88 per square foot full service gross. Over the course of the last four years, average asking rates have remained fairly static. Among Class
B assets, the average asking rate over that period stood at $18.19 per square foot full service gross.
36

THE ROCKSIDE OFFICE PORTFOLIO

Discount to Replacement Cost


Reproduction of similar buildings in the Cleveland suburbs is
conservatively estimated to be $175 to $225 per square foot.
The limited amount of developable land in the market along
with a myriad of other factors such as lenders pre-leasing have
contributed to the lack of any recent or anticipated near-term
speculative office development in Cleveland. Coupled with this lack
of new office development, properties such as Freedom Square,
Rock Run and Oak Tree will continue to benefit from the positive
leasing momentum occurring in the submarket as market conditions
tighten, vacancy rates decline and significant upward pressure is
placed on rental rates.

Cost Category
Hard Costs
Core & Shell (1)
Tenant Improvement Costs
Sitework (2)
Soft Costs
Land Costs
Total Project Costs

Low (PSF)

20

6
90
20

MIDTOWN
6

$110.00

$25.00

$35.00

$25.00

$35.00

$25.00

$25.00

$10.00

$20.00

$175.00

$225.00

Primary variable is the curtain wall design


20
(2)
Primary variable is on-site water retention and drainage
Source: Jones Lang LaSalle Research

90

NORTHEAST

High (PSF)

$90.00

84

CBD

20

322

322
271

EAST

91

490

77

83

71

20

WEST

480

480

480

SOUTH

42
71

(1)

80

SOUTHEAST

422

ROCKSIDE OFFICE PORTFOLIO

SOUTHWEST

77
271

480

80

71

80

37

LOCATION OVERVIEW

Competitive Properties
The Portfolio affords a new owner the opportunity to capitalize on the dearth of quality, well-leased products on the market. The Propertys competitive set, as outlined in the table and map below, consists of
other Class B assets nearby that are of similar quality when compared to The Property; however, the Portfolio is only 65.6 percent leased, which is less than the Portfolios competitive set, providing immediate
upside through the lease-up of vacant space. By simply leasing to its competitive sets occupancy level of 73.5 percent, the Portfolios NOI increases by 75.6% percent. As such, tenants whom desire this
office pocket will be driven to the Property.

Competitive Set
1
2
3
4
5
6
7
(1)

38

Property
Rockside Portfolio
Metro Center
6200 Oak Tree
Plaza 45
Rockside Square I & II
Spectrum Building
Summit 1, 2, 3 & 4
Gold Building
Total / Weighted Avg.

Midpoint used when range was provided.

Submarket
Rockside Corridor
Rockside Corridor
Rockside Corridor
Rockside Corridor
Rockside Corridor
Rockside Corridor
Rockside Corridor
Rockside Corridor

Class
B
B+
B
B
B
B
B
B-

NRA (SF)
422,121
57,000
55,800
57,671
156,553
121,881
525,900
34,000
1,008,805

Occupancy
65.6%
74.6%
96.0%
89.2%
80.7%
70.5%
69.1%
52.2%
73.5%

Total Expenses
$7.23
$6.73
$7.28
$8.82
$7.60
n/a
$6.99
$6.05
$6.31

Asking NNN Rent ($/PSF)


$9.27
$8.52
$11.22
$8.43
$9.90
n/a
$9.83
$10.90
$8.61

Asking Gross Rent ($/PSF)


$16.50
$15.25
$18.50
$17.25
$17.50
$19.50
$16.82
$16.95
$17.28

Sch

aaf

Rd

Bre

THE ROCKSIDE OFFICE PORTFOLIO


cks

17

Wa r n e

Rd

r Rd

ville

Granger Rd E

Dr

Granger Rd E

cast e r

D
rN

480

77

Freedom Square

4
7

Oak Tree Place

ille R

R o c k s i d e Wo o d s B l v d

D e c k er Dr E

Cree

k Rd

21

Crossview Rd

Maple Shade
Cemetery

Rockside Rd

Ridgewood Dr E

Bonroi Dr

eters
ry

Rda

Rockside R

Rock Run Business Campus

Canal

Dorset Dr

c ksv

line

Cloverleaf
Speedway

Bre

S ky

Willow

Lan

Competitive Properties Map

Lafa yette Blvd

39

TENANT OVERVIEW

THE ROCKSIDE OFFICE PORTFOLIO


41

TENANT OVERVIEW

Tenant Information

The Rockside Portfolio is 65.6 percent leased to a high-quality roster of publicly traded, institutional quality and creditworthy tenants including: JP Morgan Chase, Mutual of Omaha and Wells Fargo Financial
Services. With 5.45 years of weighted average remaining lease term, the Portfolio provides the benefits of both long-term stability and the ability to offer upside through leasing as below-market rents are rolled
in a rising market. More than 35 percent of the property is occupied by four major tenants: Sedgewick Claims Services, the Hylant Group, Sterling Info Systems and Acumen Solutions.
Investment grade, public and creditworthy, non-rated tenants at the Property are responsible for approximately 55 percent of gross in-place revenue, promoting the long-term stability and stable cash flow
of the Property. Specifically, investment grade companies contribute approximately $350,000 of total rent and creditworthy tenants, such as Sedgwick Claims Management, Sterling Backcheck, Xerox, Volt
Information Sciences and Independence Bank, contribute approximately 47 percent of total rent or $2.05 million out of $4.41 million.

Major Tenant Summary

Tenants
Sedgwick Claim Management
Hylant Group
Sterling Backcheck
Acumen Solutions
Total/Weighted Average

% of Property Lease Expiration Current Net Rent PSF


16.5%
4/14/23
$16.87
5.9%
6/30/23
$19.00
6.7%
3/31/17
$17.50
5.9%
2/28/25
$11.50
35.0%
7.5 Years
$16.44

Rockside Portfolio Expiration Schedule

90%

80,000

80%

70,000

70%

60,000

60%

50,000

50%

40,000

40%

30,000

30%

20,000

20%

10,000

10%
0%

SF Expiring

42

100%

90,000

Cumulaive % Expiring

Year
2015
SF Expiring 17,944
% Expiring
Cumulaive % Expiring

Cumulative Percent Expired

Total Square Feet Expiring

100,000

Leased RSF
69,491
24,714
28,371
24,958
147,534

2016
26,727

2017
39,418

2018
28,081

2019
34,155

2020
7,686

2021
16,818

2022
2023
0 106,078

4.25% 6.33% 9.34%


4.25% 10.58% 19.92%

6.65%
26.57%

8.09% 1.82% 3.98% 0.00%


34.66% 36.49% 40.47% 40.47%

25.13%
65.60% 6

THE ROCKSIDE OFFICE PORTFOLIO

Sedgwick Claims Management Services, Inc.


RENTABLE AREA:
LEASE COMMENCEMENT:
LEASE EXPIRATION:
WEBSITE:

69,491 square feet


May 1, 2008
April 14, 2023
www.sedgwick.com

Founded in 1969, Sedgwick Claims Management Services (Sedgwick) is the leading North American
provider of innovative, technology-enabled claims and productivity management solutions, delivering
a world of expert resources to a diverse client base through nearly 11,000 employees and 200 offices
across the U.S. and Canada. The company, which handles more than two million claims per year,
processes more claims than any other third party administrator in North America and offers its solutions
to a wide range of American businesses, from local employers to global corporations.
Acquired in 2010 by Stone Point Capital and Hellman & Friedman, Sedgwick boasts annual revenue
of $1.15 billion and EBITDA of more than $200 million. In January 2014, the company was acquired
by New York global investment firm KKR & Co. for $2.4 billion. KKRs purchase signifies a longterm commitment to the company by a well-capitalized investor. The sale also positions Sedgwick for
continued growth, but according to president and CEO David North, the ownership change wont lead
to any significant strategy or management shifts for the company, but it may provide financial backing
to speed the development of products and services.

43

TENANT OVERVIEW

Hylant Group
RENTABLE AREA:
LEASE COMMENCEMENT:
LEASE EXPIRATION:
WEBSITE:

24,714 square feet


July 1, 2007
June 30, 2023
www.hylant.com

Founded in 1935, the Hylant Group (Hylant) is a full-service business insurance brokerage firm
offering clients complete risk management services, employee benefits consultation, loss control,
401(K) and wealth management services, healthcare management and insurance for businesses and
individuals around the world.
Hylant is among the largest privately held insurance brokerage firms in the United States and maintains
strong international brokerage relationships. The firm is a member of the Worldwide Broker Network
(WBN), which allows Hylant to provide its services anywhere in the world. With 14 offices in six states,
Hylant is one of the largest privately held brokerage firms in the United States. The company currently
employs 675 professionals and has offices in Florida, Illinois, Indiana, Michigan, Ohio and Tennessee.

44

THE ROCKSIDE OFFICE PORTFOLIO

Sterling Backcheck
RENTABLE AREA:
LEASE COMMENCEMENT:
LEASE EXPIRATION:
CREDIT RATING:
WEBSITE:

28,371 square feet


January 1, 1998
March 31, 2017
B2 (Moodys), B (S&P)
www.sterlingbackcheck.com

SterlingBackcheck, formerly Sterling Infosystems, Inc., is a background screening company with an


international presence and is known for its industry leading turn-around-time, customer service and
expertise in customizing solutions for industry specific needs. Sterling offers a broad range of services,
including student screening services, corporate due diligence and background investigation services,
occupational health services and employment-related business tax consulting.
With 200 locations around the world, the privately owned Company has more than 2,200 employees
and serves over 20,000 customers, including a quarter of the Fortune 100. Sterling Backcheck also
boasts a 92 percent client retention rate, which is unrivaled in the industry.

45

TENANT OVERVIEW

Acumen Solutions, Inc.


RENTABLE AREA:
LEASE COMMENCEMENT:
LEASE EXPIRATION:
WEBSITE:

24,958 square feet


July 1, 2011
February 28, 2025
www.acumensolutions.com

Acumen Solutions, Inc. is a business and technology consulting firm with offices across the United
States and Europe. Acumens clients include Fortune 500 companies, government agencies and
other emergent industry leaders in industries such as Communications and Media, Financial Services,
Public Sector and Consumer and Commercial Products.
Acumen Solutions is the trusted leader in Enterprise Cloud Transformation, helping organizations
realize dramatic improvements in productivity and profitability through innovations in business and
technology. Industry and government leaders including American Express, Comcast, McKesson, and
the US Securities and Exchange Commission rely on Acumen to deliver cloud solutions that yield
exceptional results. The company maintains five locations in the United States and one office in
London.

46

THE ROCKSIDE OFFICE PORTFOLIO

Net Rentable Area Summary


Property
Freedom Square I
Freedom Square II
Freedom Square III
Rock Run North
Rock Run Center
Oak Tree
Total / Wtd. Avg.

Occupied
26,934
93,130
14,614
57,582
56,276
28,371
276,907

Vacant
13,501
21,598
56,438
5,712
7,018
40,947
145,214

Total
40,435
114,728
71,052
63,294
63,294
69,318
422,121

Re-measured NRA
40,710
116,162
71,025
62,278
62,223
68,471
420,869

% Occupied
66.6%
81.2%
20.6%
91.0%
88.9%
40.9%
65.6%

47

TENANT OVERVIEW

FREEDOM SQUARE I STACKING PLAN

Floor
4

INDEPENDENCE BANK
Suite 403
2,007 RSF
5/31/2021

INTEGRITY FINANCIAL
Suite 406
2,571 RSF
1/31/2017

HURRICANE LABS
Suite
310 BANK
INDEPENDENCE
Suite 403
5,951 R
SF
2,007 RSF
5/31/2021
9/30/2016

ZIG MARKETING 1,200 RSF


Vacant
Suite 214
Suite 212
2,642
1,200 RSF
INDEPENDENCE BANK
5/31/2015

VACANT
SUITE 405
1,131 RSF

HURRICANE LABS
Suite 300 VACANT
VACANT
Suite 42,020
04
RSF SUITE 405
2,417 RSF
9/30/2016 1,131 RSF

INTEGRITY FINANCIAL
Suite 406
2,571 RSF
1/31/2017
HURRICANE LABS
Suite 310
Vacant
5,951 RSF
9/30/2016
Suite
212

ZIG MARKETING
3
Suite 214
2,642
5/31/2015 2

VACANT
Suite 404
2,417 RSF

PANTEK, INC.
Suite 205
1,683
RSF
PANTEK, INC.
Suite 205
1/14/2019

HURRICANE LABS
Suite 300
2,020 RSF
9/30/2016

VACANT
Suite 390
2,943 RSF

VACANT
Suite 200
2,387 RSF

VACANT
Suite 200
2,387 RSF

Suite 201
1,852 RSF

1,683 RSF
1/14/2019

VACANT
Suite 390
2,943 RSF

HANTZ GROUP
Suite 401
2,771 RSF
9/30/2018

VACANT
Suite 201
VACANT1,852 RSF

Suite 100 INDEPENDENCE BANK


Suite 100
6,680 RSF
6,680 RSF
5/31/2021
5/31/2021

HANTZ GROUP
Suite 401
2,771 RSF
9/30/2018

VACANT
Suite 106
922 RSF

VACANTCT CONSULT. VACANT


VACANT
Suite
106 Suite 110 Suite 108
Suite 108
609 RSF
649
RSFRSF
922
649 RSF
4/30/2015

CT CONSULT.
Suite 110
609 RSF
4/30/2015

Occupied

Vacant

Total

7,349

3,548

10,897

7,971

2,943

10,914

4,325

5,439

9,764

7,289

1,571

8,860

26,934 13,501

40,435

Total
2014

2014

2015

2015

2016

2016

2017

2017

2018

2019

2018

2019

9/3/14

9/3/14

48

2020

2021+

2020

Vacant

2021+

Vacant

THE ROCKSIDE OFFICE PORTFOLIO

FREEDOM SQUARE II STACKING PLAN

Floor
WELLS FARGO DEALER SERVICES
Suite 500
12,593 RSF
WELLS FARGO DEALER SERVICES
2/29/2016

Suite 500
12,593 RSF
2/29/2016

HYLANT GROUP, INC.


Suite 400
24,714 RSF
6/30/2023

4
4

3
3

ACCURATE GROUP HOLDINGS


Suite 300
11,552 RSF
8/31/2019

MSC Industrial Direct


Suite 260
8,131 RSF
2
11/30/2021

MUTUAL OF
OMAHA
Suite
230
VACANT
2,078
Suite R2SF
20
3,526
RSF
3/31/2020

VACANT
Suite 220
3,526 RSF

HYLANT GROUP, INC.


Suite 400
24,714 RSF
6/30/2023
ACCURATE GROUP HOLDINGS

VACANT
Suite 135
1,160 RSF

XEROX CORPORATION
Suite 100
12,225 RSF
6/30/2018

VOLT INFORMATION
SCIENCES,
INC.
MUTUAL
OF
Suite
240
OMAHA
2,340
RSF
Suite
230
2,078 RSF
9/30/2017
3/31/2020

JP MORGAN CHASE
Suite
VACANT
3,230
RSF
Suite
135
1,160 RSF
5/31/2017

VACANT
Suite 500
4,528 RSF

Vacant
Suite 540
7,103 RSF

Suite 310/340
ACCURATE GROUP HOLDINGS
6,372 RSF
Suite 310/340
8/31/2019

ACCURATE GROUP HOLDINGS


Suite 300
11,552 RSF
8/31/2019

MSC Industrial Direct


Suite 260
8,131 RSF
11/30/2021

XEROX CORPORATION
Suite 100
12,225 RSF
6/30/2018

Vacant
Suite 540
7,103 RSF

6,372 RSF
8/31/2019

Occupied

Vacant

Total

12,593

11,631

24,224

24,714

24,714

19,847

2,567

22,414

17,101

3,526

20,627

ALEXANDER PLONA
Suite
1,611 RSF
10/31/2016

17,066

3,874

20,940

Total

93,130

21,598

114,728

VACANT
Suite 500
4,528 RSF

ACCURATE GROUP
HOLDINGS
VACANT
ACCURATE GSuite
ROUP
Suite 350
380
HOLDINGS
1,923 RSF
2,567 RSF
Suite 350
8/31/2019

VACANT
Suite 380
2,567 RSF

1,923 RSF

VOLT
INFORMATION
BUILDING
ATRIUM/
SCIENCES, INC.
COMMON AREA
BUILDING ATRIUM/
Suite 240
COMMON AREA
2,340 RSF
9/30/2017

VACANT
JP MORGAN
CHASE
BUILDING
ATRIUM/
150
Suite
BUILDING ASuite
TRIUM/
COMMON AREA
3,230 RSF
COMMON 2,714
AREA RSF
5/31/2017

8/31/2019
SATYAM
Suite 250
4,552 RSF
4/30/2016

SATYAM
Suite 250
4,552 RSF
4/30/2016

ALEXANDER PLONA
VACANT Suite
1,611 RSF
Suite 150
2,714 10/31/2016
RSF

Total

2014

2015

2014
2016

2015
2017

2016 2018

2017

2019

2018

2020

2019

2021+ 2020

2021+
Vacant

BUILDING
Vacant
COMMON

Total

BUILDING
COMMON

9/3/14

9/3/14

49

TENANT OVERVIEW

FREEDOM SQUARE III STACKING PLAN

Floor
VACANT
Suite 400
19,150 RSF

3
3

BUILDING ATRIUM/
2
COMMON AREA

1
BUILDING ATRIUM/
COMMON AREA

VACANT
Suite 400
19,150 RSF

TEK SYSTEMS
Suite 300
8,668 RSFTEK SYSTEMS
11/12/2015Suite 300

VACANT
Suite 220
BUILDING ATRIUM/
COMMON A2,435
REA RSF

8,668 RSF
11/12/2015

VACANT
Suite 220
2,435 RSF

JLL MGMT
Suite 390
JLL MGMT
3,040 RSF
Suite 390
3,040 RSF

VACANT

VACANT
VACANT
Suite
250
Suite 250
3,941
RSF
3,941
RSF

VACANT
Suite 230
Suite 230
RSF
2,129 R2,129
SF

VACANT
Suite 330
1,397 RSF

M W V E
Suite 210
2,906 RSF
10/31/2017

VACANT
VACANT
Suite 100
Suite
100
9,217
RSF
9,217 RSF

BUILDING ATRIUM/
COMMON AREA

VACANT
Suite 330
1,397 RSF
M W V E
Suite 210
2,906 RSF
10/31/2017

VACANT
Suite 320
5,343 RSF

VACANT
Suite 320
5,343 RSF

VACANT
Suite 200
5,177 RSF

VACANT
Suite 200
5,177 RSF

VACANT
Suite 190
7,649 RSF

VACANT
Suite 190
7,649 RSF

Occupied

Vacant

Total

19,150

19,150

11,708

6,740

18,448

2,906

13,682

16,588

16,866

16,866

14,614

56,438

71,052

Total
2014

2014

2015

2015

2016

2016

2017

2017

2018

2019

2018

2019

9/3/14

9/3/14

50

2020

2021+

2020

Vacant

2021+

BUILDING
COMMON

Vacant

BUILDING
COMMON

THE ROCKSIDE OFFICE PORTFOLIO

ROCK RUN NORTH STACKING PLAN

Floor
2

2
1

OC TANNER
VACANT VACANT
Suite 245
Sutie 246 Suite 250
1,176
1,176
1,185
OC TANNER
VACANT VACANT 12/31/15
Suite 245
Sutie 246 Suite 250
1,176
1,185
1,176
12/31/15

SEDGWICK CLAIMS MANAGEMENT


Suite 205
24,736
SEDGWICK CLAIMS MANAGEMENT
4/14/23
Suite 205
SEDGWICK CLAIMS MANAGEMENT
24,736
Suite 100
4/14/23
31,670
SEDGWICK CLAIMS MANAGEMENT
4/14/23
Suite 100
31,670
4/14/23

VACANT
Suite 240
3,351
VACANT
Suite 240
3,351

2014

2014

2015

2015

2016

2016

2017

2017

2018

2019

2018

2019

2020

2021+

2020

2021+

Vacant

Vacant

Occupied

Vacant

Total

25,912

5,712

31,624

31,670

31,670

Total

57,582

5,712

63,294

BUILDING COMMON

BUILDING COMMON

9/3/14

9/3/14

51

TENANT OVERVIEW

ROCK RUN CENTER STACKING PLAN

SCOTT WILLIAMS
& WILLIAMS
TEICHMAN
SCOTT
&
ASSOCIATES ASSOCIATES
FINANCIAL
2
Suite
2
90
Suite 290
Suite 280
3,742 RSF 1,866 RSF
3,742 RSF
9/30/202010/31/2020
9/30/2020

Floor

TEICHMAN
VACANT VACANT
FINANCIAL
Suite 2Suite
80 281 Suite 281
1,866 1,610
RSF RSF 1,610 RSF
10/31/2020

Acumen
Acumen
Suite 2242
Suite
42
24,958 RRSF
24,958
SF
2/28/25
2/28/25

OHIO KEPRO, INC.

OHIO KEPRO, INC.


Suite 100
Suite 100 12,625 RSF
12,625 RSF 7/31/2019
7/31/2019

2014

2014

2015

2015

2016

2016

VACANT

2017

2017

2018

2018

2019

2019

9/3/14

9/3/14

52

SEDGWICK
SEDGWICK
Suite 150
13,085 Suite
RSF 150
13,085 RSF
8/31/2018

VACANT
VACANT
Suite 145
Suite R1SF
45
1,757

VACANT
Suite 120
Suite
120
3,651
RSF
3,651 RSF

1,757 RSF

2020

2020

8/31/2018

2021+

2021+

Vacant

Vacant

BUILDING
COMMON

BUILDING
COMMON

Occupied

Vacant

Total

30,566

1,610

32,176

25,710

5,408

31,118

Total

56,276

7,018

63,294

THE ROCKSIDE OFFICE PORTFOLIO

OAK TREE STACKING PLAN

Floor
STERLING INFOSYSTEMS
Suite 400
15,354 RSF
3/31/2017

STERLING INFOSYSTEMS
Suite Suite
300400
15,354
15,405
RSFRSF
3/31/2017

VACANT
VACANT
Suite 300
Suite
200 RSF
15,405
15,405 RSF

VACANT

STERLING 2INFOSYSTEMS
Suite 130
BUILDING
3,866 RSF
COMMON
STERLING INFOSYSTEMS
Suite 130
3/31/2017
1

3,866 RSF

3/31/2017
VACANT
Suite 003
VACANT
Suite
050 RSF
1,219

VACANT
Suite 050
2,892 RSF LL

LL

2,892 RSF

STERLING Suite
INFOSYSTEMS
200
15,405 RSF
Suite110
5,475 RINFOSYSTEMS
SF
STERLING
Suite110
3/31/2017

BUILDING
COMMON

VACANT
VACANT Suite 004
Suite 003 2,790 RSF

1,219 RSF

BUILDING
COMMON
BUILDING
COMMON

5,475 RSF
3/31/2017

BUILDING COMMON

VACANT
Suite 004
2,790 RSF

Vacant

Total

15,354

15,354

0 15,405

15,405

0 15,405

15,405

VACANT

Occupied

STERLING INFOSYSTEMS
Suite 140/150/170
STERLING INFOSYSTEMS 3,676 RSF
Suite 140/150/170 3/31/2017
3/31/2017
VACANT
Suite 000 Vacant
1,000 RSFSuite 020

2,236 RSF

Vacant
Suite 020
2,236 RSF

1
Total

2014

2014

2015

2015

2016

2016

2017

2017

2018

2019

2018

2019

2020

2020

13,017

13,017

0 10,137

10,137

28,371 40,947

69,318

3,676 RSF

VACANT
Suite 000
1,000 RSF

BUILDING COMMON

2021+

Vacant

2021+

BUILDING
COMMON

Vacant

BUILDING
COMMON

9/3/14

9/3/14

53

TENANT OVERVIEW

One and Two Rockside Portfolio Expiration Schedule


Tenant

2015 Expirations
CT Consultants
Zig Marketing
TEKSYSTEMS
Corporate Plaza Catering
Duke Realty Services
OC Tanner Recognition
Total 2015 Expirations

As-Leased SF

Expiration

% Total Area

110
214
300
G10
Mgmt. Office
245

609
2,642
8,668
1,809
3,040
1,176
17,944

4/30/15
5/31/15
11/12/15
12/31/15
12/31/15
12/31/15

0.14%
0.63%
2.05%
0.43%
0.72%
0.28%
4.25%

12,593
4,552
7,971
1,611
26,727

2/29/16
4/30/16
9/30/16
10/31/16

2,571
28,371
3,230
2,340
2,906
39,418

1/31/17
3/31/17
5/31/17
9/1/17
10/31/17

12,225
13,085
2,771
28,081

6/30/18
8/31/18
9/30/18

2016 Expirations
WFS Financial
Satyam Computer Services
Hurricane Labs
Plona, Mayer, Simon
Total 2016 Expirations

580
250
300/310
165

2017 Expirations
Integrity Financial Services
Sterling Infosystems
JP MORGAN CHASE
Volt Information Sciences
M.W.V.E.
Total 2017 Expirations

406
110/140/150/400
140
240
210

2018 Expirations
Xerox Corporation
Sedgwick
Hantz Group
Total 2018 Expirations

54

Suite

100
150
401

2.98%
1.08%
1.89%
0.38%
6.33%

0.61%
6.72%
0.77%
0.55%
0.69%
9.34%

2.90%
3.10%
0.66%
6.65%

Total Area Cumulative

% Leased Space

Leased Space Cumulative

4.25%

0.22%
0.95%
3.13%
0.65%
1.10%
0.42%
6.48%

6.48%

10.58%

4.55%
1.64%
2.88%
0.58%
9.65%

16.13%

19.92%

0.93%
10.25%
1.17%
0.85%
1.05%
14.24%

30.37%

26.57%

4.41%
4.73%
1.00%
10.14%

40.51%

THE ROCKSIDE OFFICE PORTFOLIO

One and Two Rockside Portfolio Expiration Schedule


Tenant

Suite

As-Leased SF

Expiration

% Total Area

2019 Expirations
Pantek Incorporated
Ohio KePro
Accurate Group Holdings
Total 2019 Expirations

205
100
350

1,683
12,625
19,847
34,155

1/14/19
7/31/19
8/31/19

0.40%
2.99%
4.70%
8.09%

2020 Expirations
Mutual of Omaha Insurance
Scott A. Williams & Associates
Teichman Financial Group
Total 2020 Expirations

230
290
280

2,078
3,742
1,866
7,686

3/31/20
9/30/20
10/31/20

2021 Expirations
Independence Bank
SID TOOL CO.
Total 2021 Expirations

100
260

8,687
8,131
16,818

5/31/21
11/30/21

2023 Expirations
Sedgwick
Sedgwick
Hylant Group
Acumen Solutions
Total 2023 Expirations

218/230/235
100
400
201

5,063
51,343
24,714
24,958
106,078

3/31/23
4/14/23
6/30/23
2/28/25

276,907
145,214
422,121

65.6%
34.4%
100.0%

Total Leased Space


Vacant Space
Total Space

0.49%
0.89%
0.44%
1.82%

2.06%
1.93%
3.98%

1.20%
12.16%
5.85%
5.91%
25.13%

Total Area Cumulative

% Leased Space

Leased Space Cumulative

34.66%

0.61%
4.56%
7.17%
12.33%

52.84%

36.49%

0.75%
1.35%
0.67%
2.78%

55.62%

40.47%

3.14%
2.94%
6.07%

61.69%

65.60%

1.83%
18.54%
8.93%
9.01%
38.31%

100.00%

55

TENANT OVERVIEW

Freedom Square I Rent Roll


Tenant
CT Consultants, Inc.

Suite
110

As-Leased
Lease
NRA Commence
609

2/1/12

Lease
Expire

Rent Step
Dates

4/30/15

Current

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$10,049

$16.50

Pro-Rata Share
(Opex & Taxes)

Net

Base Year
Base Stop

Gross-Up (%)

1.50%

100%

6.81%

95%

19.58%

95%

COMMENTS

Relocation Option: Landlord, at its sole cost, with ninety (90) days written notice, may relocate Tenant within building or another building owned by landlord.
Parking: Free and in common, plus one (1) reserved spot in the garage.
Security Deposit: $2,532.45

Hantz Group, Inc.

401

2,771

2/1/96

9/30/18

Current
10/1/15
10/1/16
10/1/17

$46,414
$47,107
$47,800
$48,492

$16.75
$17.00
$17.25
$17.50

Net

COMMENTS

Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Controllable Expense Cap: Administrative cap 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost, with ninety (90) days written notice, may relocate Tenant within the building or another building owned by landlord.
Parking: Free and in common.
Security Deposit: $5,383.33

Hurricane Labs, LLC

COMMENTS

310
300

5,951
2,020
7,971

7/1/05

9/30/16

Current

$147,464

$24.78

Net

Relocation Option: Landlord, at its sole cost, with thirty (30) days written notice, may relocate Tenant within the building or another building owned by landlord.
Parking: Free and in common.
Security Deposit: $3,963

56

THE ROCKSIDE OFFICE PORTFOLIO

Freedom Square I Rent Roll


Tenant
Independence Bank

Suite

As-Leased
Lease
NRA Commence

100

6,680

403

2,007
8,687

12/1/95

Lease
Expire

Rent Step
Dates

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type

5/31/21

Current
8/1/17

$162,881
$171,568

Current

$40,005

$18.75 Gross
$19.75

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

21.34%

2010

95%

COMMENTS

Renewal Option: Right to two (2) five (5) year option, with nine (9) months prior written notice at market.
ROFO: One time right to purchase building if the landlord wishes to sell.
Parking: Free and in common, plus 10 reserved.

Integrity Financial Services, Inc.

406

2,571

7/1/11

1/31/17

$15.56

Net

6.32%

100%

COMMENTS

Relocation Option: Landlord, at its sole cost and with thirty (30) days written notice, may relocate Tenant to comparable space within the building or another building owned by the landlord.
Renewal Option: Right to one (1) five (5) year option, with nine (9) months prior written notice at market.
Parking: Free and in common.
Security Deposit: $2,117.33

Pantek Incorporated

205

1,683

1/15/14

1/14/19

Current

$28,190

$16.75 Gross

4.13%

2014

95%

COMMENTS

Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Signage: Tenant has building signage rights.
Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Security Deposit: $2,349.18
Relocation Option: Landlord, at its sole cost and with sixty (60) days written notice, may relocate Tenant to comparable space within the building or another building owned by the landlord.
Parking: Free and in common
Renewal Option: Right to one (1) three (3) year option, with nine (9) months prior written notice at market.

57

TENANT OVERVIEW
58

Freedom Square I Rent Roll


Tenant
Zig Marketing, Inc.

Suite
214

As-Leased
Lease
NRA Commence
2,642

6/1/09

Lease
Expire

Rent Step
Dates

5/31/15

Current

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$42,272

$16.00

Pro-Rata Share
(Opex & Taxes)

Net

COMMENTS

Controllable Expense Cap: 6% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost, with thirty (30) days written notice, may relocate Tenant within the building or another building owned by landlord.
Security Deposit: $5,800

6.49%

Base Year
Base Stop

Gross-Up (%)
100%

THE ROCKSIDE OFFICE PORTFOLIO

Freedom Square II Rent Roll


Tenant
Accurate Group Holdings, LLC

Suite

As-Leased
Lease
NRA Commence

Rent Step
Dates

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type

8/31/19

Current
12/1/14
12/1/15

$36,537
$37,499
$38,460

$19.00
$19.50
$20.00

350

1,923

300

11,552

Current
12/1/14
12/1/15

$219,488
$225,264
$231,040

$19.00
$19.50
$20.00

6,372
19,847

Current
12/1/14
12/1/15

$121,068
$124,254
$127,440

$19.00
$19.50
$20.00

310
340

403

11/1/12

Lease
Expire

Net

Pro-Rata Share
(Opex & Taxes)
17.09%

Base Year
Base Stop

Gross-Up (%)
95%

2,007
8,687

COMMENTS

Controllable Expense Cap: 5% annually. Administrative fees 3% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
ROFO: Ongoing right for any space on the 2rd floor, and Suite 380.
Signage: Monument sign rights.
Parking: Free and in common, plus right to lease two (2) spaces at $75.00 per month.

Corporate Plaza Catering

G10

1,809

1/1/05

12/31/15

Current

$0.00

COMMENTS

Note: Building amenity.

59

TENANT OVERVIEW

Freedom Square II Rent Roll


Tenant
Hylant Group, Inc.

Suite
400

As-Leased
Lease
NRA Commence
24,714

7/1/07

Lease
Expire

Rent Step
Dates

6/30/23

Current
7/1/17
7/1/19
7/1/21

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$469,566
$481,923
$494,280
$506,637

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

$19.00
$19.50
$20.00
$20.50

Net

21.28%

95%

$18.75
$19.00
$19.25

Net

2.78%

100%

COMMENTS

Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Tenant Improvement Allowance: Landlord to provide a $247,140.00 allowance to be used by 04/30/2018.
Renewal Option: Right to one (1) five (5) year option, with nine (9) months written notice at market rate.
Signage: Tenant is granted monument panel and building sign rights.
Parking: Free and in common, plus right to lease three (3) parking garage spaces at $65 per month for each.

JP MORGAN CHASE BANK N.A.

140

3,230

5/1/12

5/31/17

Current
6/1/15
6/1/16

$60,563
$61,370
$62,178

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost and with thirty (30) days written notice to comparable first floor space.
Parking: Free and in common.
Renewal Option: Right to one (1) three (3) year option, with twelve (12) months written notice at market.
ROFO: Ongoing right to approximately 1,160 RSF adjacent space.
Termination Option: Tenant has the right to terminate the lease effective 6/30/15 with written notice on or before 9/30/14 and payment of $69,234.89.

60

THE ROCKSIDE OFFICE PORTFOLIO

Freedom Square II Rent Roll


Tenant
SID TOOL CO., INC.
(dba MSC Industrials Direct Co.)

Suite
260

As-Leased
Lease
NRA Commence
8,131

8/1/14

Lease
Expire

Rent Step
Dates

11/30/21

Current
8/1/15
8/1/16
8/1/17
8/1/18
8/1/19
8/1/20
8/1/21

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$169,531
$172,581
$175,691
$178,863
$182,099
$185,399
$188,766
$192,199

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

7.00%

2014

100%

$20.85 Gross
$21.23
$21.61
$22.00
$22.40
$22.80
$23.22
$23.64

COMMENTS

Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost and with four (4) months written notice, but not within the last twelve (12) months may relocate Tenant to comparable space in building or other building owned
by the landlord.
Parking: Free and in common, plus right to lease three (3) parking spaces in the building garage at $75 per month for each.
Renewal Option: Right to one (1) five (5) year option, with twelve (12) months written notice at market.
Termination Option: Tenant has the right to terminate the lease effective 11/30/2019 with written notice on or before 11/30/18 and payment of $183,906.17.

Mutual of Omaha Insurance Company

230

2,078

10/1/09

3/31/20

Current
1/1/16
1/1/17
1/1/18
1/1/19
1/1/20

$37,404
$38,131
$38,859
$39,586
$40,313
$41,040

$18.00 Gross
$18.35
$18.70
$19.05
$19.40
$19.75

1.79%

2015

100%

COMMENTS

Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Parking: Free and in common, plus right to lease one (1) parking spaces in the building garage at $75 per month for each.
ROFO: Ongoing right to contiguous space on second floor with a minimum lease of 5 years.
Renewal Option: Right to one (1) three (3) year option, with nine (9) months written notice at market.
Relocation Option: Landlord, at its sole cost and with sixty (60) days written notice to comparable space within the building or another building owned by landlord.
61

TENANT OVERVIEW

Freedom Square II Rent Roll


Tenant
ALEXANDRA PLONA, JOHN MAYER and
ANDREW J. SIMON, Joint and Severally

Suite
165

As-Leased
Lease
NRA Commence
1,611

5/1/12

Lease
Expire

Rent Step
Dates

10/31/16

Current
11/1/15

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$30,609
$31,012

$19.00
$19.25

Pro-Rata Share
(Opex & Taxes)

Net

Base Year
Base Stop

1.39%

Gross-Up (%)
100%

COMMENTS

Parking: Free and in common, plus right to use two (2) parking spaces in the underground parking garage.
Relocation Option: Landlord, at its sole cost and with thirty (30) days written notice, may relocate Tenant to comparable space in the building or another building owned by the landlord.
Security Deposit: $2,584.31

Satyam Computer Services Limited

250

4,552

11/1/01

4/30/16

Current
3/1/15
3/1/16

$84,212
$86,488
$88,764

$18.50
$19.00
$19.50

Net

3.90%

95%

2.01%

100%

COMMENTS

Relocation Option: Landlord, at its sole cost and with ninety (90) days written notice, may relocate Tenant to comparable space in the building or Freedom Square.
Parking: Free and in common.
Security Deposit: $7,966.00

Volt Information Sciences, Inc.

COMMENTS

240

2,340

10/1/13

9/1/17

Current
10/1/15
10/1/16

$47,385
$48,555
$49,725

$20.25
$20.75
$21.25

Net

Relocation Option: Landlord, at its sole cost, with sixty (60) days written notice, may relocate Tenant within the building or another building owned by landlord.
Security Deposit: $7,702.50
Parking: Free and in common.

62

THE ROCKSIDE OFFICE PORTFOLIO

Freedom Square II Rent Roll


Tenant
WFS Financial Inc.

Suite

As-Leased
Lease
NRA Commence

580

12,593

3/1/01

Lease
Expire

Rent Step
Dates

2/29/16

Current
5/1/15

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$251,860
$258,157

$20.00 Gross
$20.50

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

10.84%

2010

95%

10.52%

2015

100%

COMMENTS

Renewal Option: Right to two (2) five (5) year option, with seven (7) months written notice at market.
Relocation Option: Landlord, at its sole cost and with sixty (60) days written notice to comparable space within the building or Freedom Square II or III.
Abatement: First two (2) months of gross rent each calendar year abated.
Parking: Free and in common, plus two (2) reserved spaces in the building garage.
ROFR: One time right to contiguous space on fifth floor.
Rooftop Satellite Dish: Tenant has the right to install and maintain, at its own expense, a dish on the roof of the building for its exclusive use.

Xerox Corporation

100

12,225

4/25/95

6/30/18

Current
1/1/15
1/1/16
1/1/17
1/1/18

$280,564
$226,163
$232,275
$238,388
$244,500

$22.95 Gross
$18.50
$19.00
$19.50
$20.00

COMMENTS

Renewal Option: Right to one (1) three (3) year option, with nine (9) months prior written notice at market.
Signage: Tenant has monument signage rights.
Parking: Free and in common.
Exclusivity: Landlord shall not enter into a lease agreement in the building with a competitor: Alco Standard, Apple, Konica, Kodak, Canon, Danka, Heidelberg, HP, Ricoh, Minolta, Mita, NCR Corp., OCE,
Savin, and Sharp.
Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Rooftop Dish: Tenant is granted space on roof of building for satellite dish.
Abatement: Gross rents is abated for the first month of the new term.
Note: Projection assumes tenants signs five (5) year proposal.

63

TENANT OVERVIEW

Freedom Square III Rent Roll


Tenant
M.W.V.E., Inc.
(dba Great expectations)

Suite
210

As-Leased
Lease
NRA Commence
2,906

9/1/97

Lease
Expire

Rent Step
Dates

10/31/17

Current
4/1/15
4/1/16

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$63,932
$65,385
$66,838

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

4.09%

2012

100%

12.22%

2012

95%

$22.00 Gross
$22.50
$23.00

COMMENTS

Relocation Option: Landlord, at its sole cost and with thirty (30) days written notice to comparable space within the building or another building owned by landlord.
Parking: Two (2) underground spaces.

TEKSYSTEMS, INC.

300

8,668

8/13/07

11/12/15

Current

$182,028

$21.00 Gross

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Parking: Free and in common, plus right to lease three (3) parking spaces in the building garage at $75 per month for each.
Renewal Option: Right to one (1) five (5) year option, with nine (9) months written notice at market.
Relocation Option: Landlord, at its sole cost and with nine (9) months written notice to comparable space within the building or another building owned by landlord.
Exclusivity: Landlord shall not enter into a lease agreement with a competitor: Cynergies, Visium, Sapphire, Kforce, Modis, Comsys, Compuware, Robert Half International, Beacon Hill, Murtec, Precision,
Oxford, and Genesis 10.
ROFO: Right to space on third floor.

64

THE ROCKSIDE OFFICE PORTFOLIO

Rock Run North Rent Roll


Tenant

Suite

OC Tanner Recognition Company

245

As-Leased
Lease
NRA Commence
1,176

12/15/04

Lease
Expire

Rent Step
Dates

12/31/15

Current

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$20,580

$17.50

Pro-Rata Share
(Opex & Taxes)

Net

Base Year
Base Stop

Gross-Up (%)

1.89%

100%

90.57%

100%

COMMENTS

Relocation Option: Landlord, at its sole cost and with one (1) month written notice to comparable space within the building or another building owned by landlord.
Parking: Right to 5:1,000 SF free and in common.
Security Deposit: $1,519

Sedgwick Claims Management Services, Inc.

100

51,343

4/15/13

4/14/23

Current
4/15/15
4/15/17
4/15/19
4/15/21

$866,156
$891,828
$917,499
$943,171
$968,842

$16.87
$17.37
$17.87
$18.37
$18.87

218/230/235

5,063
56,406

1/1/15

3/31/23

Current
4/1/15
4/1/17
4/1/19
4/1/21

$85,413
$87,944
$90,476
$93,007
$95,539

$16.87
$17.37
$17.87
$18.37
$18.87

Net

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Management Fee Cap: 4.25% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Parking: Right to 4.55:1,000; free and in common.
Exclusivity: Landlord shall not enter into a lease agreement with a competitor: RSKCo- CANs TPA, GAB-Robins, Gallagher Bassett, Constitution States- Travelers TPA, REM-Zurich Americans TPA,
Helmsman, ESIS-Aces TPA, Crawford & Company
Renewal Option: Two (2) rights to two (2) five (5) year options, with nine (9) months written notice at market.
ROFR: Ongoing right to additional space in the building.

65

TENANT OVERVIEW

Rock Run Center Rent Roll


Tenant
Acumen Solutions, Inc.

Suite
201

As-Leased
Lease
NRA Commence
24,958

7/1/11

Lease
Expire

Rent Step
Dates

2/28/25

Current
9/1/15
9/1/16
9/1/17
9/1/18
9/1/19
9/1/20
9/1/21
9/1/22
9/1/23
9/1/24

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$286,898
$307,884
$329,396
$399,328
$405,568
$411,807
$418,047
$424,286
$430,526
$436,765
$443,005

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

40.11%

2014

95%

20.29%

2011

95%

$11.50 Gross
$12.34
$13.20
$16.00
$16.25
$16.50
$16.75
$17.00
$17.25
$17.50
$17.75

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Parking: Free and in common.
ROFO: Ongoing right to space for the adjacent space in the building at market.
Renewal Option: Right to one (1) five (5) year option, with twelve (12) months written notice at market.
Termination Option: Tenant has the right to terminate the lease effective 08/31/22 with written notice on or before 11/30/21 and payment of $448.514.94.
ROFR: Ongoing right of refusal to additional space in the building following the ROFR by Sedgwick Claims Management Services, Inc., tenant in the building.

Ohio KePro, Inc.

100
115

7,321
5,304
12,625

4/1/03

7/31/19

Current
8/1/15
8/1/16
8/1/17
8/1/18

COMMENTS

$214,625
$217,781
$220,938
$224,094
$227,250

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Renewal Option: Right to one (1) five (5) year option, with written notice no later than 3/31/19 at market.
Parking: Free and in common.
Security Deposit: $20,692.50
66

$17.00 Gross
$17.25
$17.50
$17.75
$18.00

THE ROCKSIDE OFFICE PORTFOLIO

Rock Run Center Rent Roll


Tenant
Sedgwick Claims Management Services, Inc.

Suite

As-Leased
Lease
NRA Commence

150

10,223

150A

2,862
13,085

5/1/08

Lease
Expire

Rent Step
Dates

8/31/18

Current
9/1/15
9/1/16
9/1/17
Current
9/1/15
9/1/16
9/1/17

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$168,680
$171,235
$173,791
$176,347
$47,223
$47,939
$48,654
$49,370

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

21.03%

2012

95%

$16.50 Gross
$16.75
$17.00
$17.25
$16.50
$16.75
$17.00
$17.25

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Management Fee Cap: 5% of gross revenues. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Parking: Free and in common, 5:1,000
Exclusivity: Landlord shall not enter into a lease agreement with a competitor: RSKCo- CANs TPA, GAB-Robins, Gallagher Bassett, Constitution States- Travelers TPA, REM-Zurich Americans TPA,
Helmsman, ESIS-Aces TPA, Crawford & Company.
ROFR: Ongoing right to additional contiguous space on the first floor.
Renewal Option: Right to one (1) five (5) year option, with twelve (12) months written notice at market.

Teichman Financial Group, LTD.

100
280

7,321
1,866

4/1/03
8/15/14

7/31/19
1/14/21

Current
Current
1/15/15
1/15/16
1/15/17
1/15/18
1/15/19

$214,625
$29,856
$30,789
$31,722
$32,655
$33,588
$34,521

$17.00 Gross
$16.00 Gross
$16.50
$17.00
$17.50
$18.00
$18.50

20.29%
3.00%

2011
2014

95%
100%

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost and with one (1) month written notice to comparable space within the building or another building owned by landlord.
Renewal Option: Right to one (1) five (5) year option, with twelve (12) months written notice at market.
Parking: Free and in common.
Security Deposit: $2,488

67

TENANT OVERVIEW

Rock Run Center Rent Roll


Tenant
Scott A. Williams & Associates, L.P.A.

Suite
290

As-Leased
Lease
NRA Commence
3,742

5/1/14

Lease
Expire

Rent Step
Dates

9/30/20

Current
10/1/15
10/1/16
10/1/17
10/1/18
10/1/19

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$56,130
$58,001
$59,872
$61,743
$63,614
$65,485

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

6.01%

2014

100%

$15.00 Gross
$15.50
$16.00
$16.50
$17.00
$17.50

COMMENTS

Controllable Expense Cap: 5% annually. Cap not modeled since current cap exceeds the projected allowable growth of 3%.
Relocation Option: Landlord, at its sole cost and with one (1) month written notice to comparable space within the building or another building owned by landlord.
Renewal Option: Right to one (1) five (5) year option, with twelve (12) months written notice at market.
Signage: Tenant is granted monument panel sign rights.
Parking: Free and in common.
Security Deposit: $9,355

68

THE ROCKSIDE OFFICE PORTFOLIO

Oak Tree Place Rent Roll


Tenant
Sterling Infosystems, Inc.

Suite

As-Leased
Lease
NRA Commence

110/140/150/400

23,490

120/130/170

4,881
28,371

1/1/98

Lease
Expire

Rent Step
Dates

3/31/17

Current
4/1/15
Current
5/1/15
9/1/17

Total Annual Annual Rent Lease


Rent ($)
($/PSF) Type
$411,075
$422,820
$85,418
$87,858
$49,370

$17.50 Gross
$18.00
$17.50
$18.00
$17.25

Pro-Rata Share
(Opex & Taxes)

Base Year
Base Stop

Gross-Up (%)

41.44%

2010

100%

COMMENTS

Relocation Option: Landlord, at its sole cost and with thirty (30) days written notice, may relocate Tenant to comparable space.
Renewal Option: Right to two (2) three (3) year option, with twelve (12) months written notice at market.
Parking: Free and in common.

69

TENANT OVERVIEW

Freedom Square I Totals


Total Leased Space
Vacant Space
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Total Vacant Space

Suite
106
108
200
212
201
390
404
405

Total Leased Space


Total Vacant Space
Total Space

26,934
13,501
40,435

Freedom Square III Totals


Total Leased Space
Vacant Space
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Total Vacant Space
Total Leased Space
Total Vacant Space
Total Space
70

26,934
As-Leased NRA
922
649
2,387
1,200
1,852
2,943
2,417
1,131
13,501

Suite
100
190
200
220
230
250
320
330
390
400

14,614
As-Leased NRA
9,217
7,649
5,177
2,435
2,129
3,941
5,343
1,397
3,040
19,150
59,478
11,574
59,478
71,052

Freedom Square II Totals


Total Leased Space
Vacant Space

93,130
Suite

As-Leased NRA

Vacant

135

1,160

Vacant

150

2,714

Vacant

220

3,526

Vacant

380

2,567

Vacant

500

4,528

Vacant

540

7,103

Total Vacant Space

21,598

Total Leased Space

93,130

Total Vacant Space

21,598

Total Space

114,728

Rock Run North Totals


Total Leased Space
Vacant Space

57,582
Suite

As-Leased NRA

Vacant

240

3,351

Vacant

246

1,185

Vacant

250

1,176

Total Vacant Space

5,712

Total Leased Space

57,582

Total Vacant Space

5,712

Total Space

63,294

THE ROCKSIDE OFFICE PORTFOLIO

Rock Run Center Totals


Total Leased Space

56,276

Vacant Space

Suite

As-Leased NRA

Vacant

120

3,651

Vacant

145

1,757

Vacant

281

1,610

Total Vacant Space

7,018

Total Leased Space

56,276

Total Vacant Space

7,018

Total Space

63,294

Oak Tree Place Totals

Total Leased Space


Vacant Space
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Total Vacant Space

Suite
0
3
4
20
50
200
300

28,371
As-Leased NRA
1,000
1,219
2,790
2,236
2,892
15,405
15,405
40,947

Total Leased Space


Total Vacant Space
Total Space

28,371
40,947
69,318

Net Rentable Area Summary


Property

Occupied

Vacant

Total

Re-measured NRA

% Occupied

Freedom Square I

26,934

13,5 v01

40,435

40,710

66.6%

Freedom Square II

93,130

21,598

114,728

116,162

81.2%

Freedom Square III

14,614

56,438

71,052

71,025

20.6%

Rock Run North

57,582

5,712

63,294

62,278

91.0%

Rock Run Center

56,276

7,018

63,294

62,223

88.9%

Oak Tree

28,371

40,947

69,318

68,471

40.9%

Total / Wtd. Avg.

276,907

145,214

422,121

420,869

65.6%

71

FINANCIAL OVERVIEW

THE ROCKSIDE OFFICE PORTFOLIO


73

FINANCIAL OVERVIEW

Financial Overview
ARGUS

The ARGUS model for The Rockside Portfolio is located on the Due Diligence Website and was
created based on the financial assumptions described in this section.

GENERAL ASSUMPTIONS
For the purposes of creating the ARGUS model, all information is input based on a calendar year basis
commencing January 1, 2015 and ending December 31, 2015. The financial analysis and cash flow
projection are presented annually over an 11-year period beginning January 1, 2015. Unless otherwise
specified, the general inflation rate for all income and expense items is 2.5 percent per year.

Net Rentable Area


The total current Net Rentable Area (NRA) of the Property is outlined in the table below.

Property
Freedom Square I
Freedom Square II
Freedom Square III
Rock Run North
Rock Run Center
Oak Tree
Total / Wtd. Avg.

74

Occupied
26,934
93,130
14,614
57,582
56,276
28,371
276,907

Vacant
13,501
21,598
56,438
5,712
7,018
40,947
145,214

Total

40,435
114,728
71,052
63,294
63,294
69,318
422,121

Re-measured NRA
40,710
116,162
71,025
62,278
62,223
68,471
420,869

% Occupied
66.6%
81.2%
20.6%
91.0%
88.9%
40.9%
65.6%

THE ROCKSIDE OFFICE PORTFOLIO

Specific Leasing Assumptions


The Portfolio is currently 65.6 percent occupied. The projection assumes that all vacant space is leased based on the schedule in the table below utilizing market leasing assumptions outlined in this section.
As opposed to utilizing a vacancy factor, the projection assumes that the designated vacant space detailed in the table remains permanently vacant throughout the analysis period. These specific suites result
in a static vacancy amount of approximately 10 percent.

Speculative Leaseup of Vacant Space

Building
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square I
Freedom Square II
Freedom Square II
Freedom Square II
Freedom Square II
Freedom Square II
Freedom Square II
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Freedom Square III
Total

Suite
200
390
405
106
108
201
212
404
500
135
150
220
380
540
190
200
220
230
250
320
390
400
100
300

NRA
2,387
2,943
1,131
922
649
1,852
1,200
2,417
4,528
1,160
2,714
3,526
2,567
7,103
7,649
5,177
2,435
2,129
3,941
5,343
3,040
19,150
9,217
1,397
94,577

Lease Start
12/1/15
9/1/15
3/1/16
6/1/16
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
9/1/20
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
6/1/15
6/1/15
6/1/15
1/1/16
1/1/16
1/1/16
1/1/17
1/1/17
Perm. Vacant
Perm. Vacant

Speculative Leaseup of Vacant Space


Building
Rock Run North
Rock Run North
Rock Run North
Rock Run Center
Rock Run Center
Rock Run Center
Oak Tree Place
Oak Tree Place
Oak Tree Place
Oak Tree Place
Oak Tree Place
Oak Tree Place
Oak Tree Place
Total

Suite
240
246
250
120
145
281
200
300
0
3
4
20
50

NRA

3,351
1,185
1,176
3,651
1,757
1,610
15,405
15,405
1,000
1,219
2,790
2,236
2,892
53,677

Lease Start

Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
1/1/16
1/1/16
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant
Perm. Vacant

75

FINANCIAL OVERVIEW
76

Average Occupancy
The average occupancy over a 10-year projection period is approximately 86 percent.

Specific Tenant Assumptions

Xerox

Cross

Ohio

Country Healthcare

Security

THE ROCKSIDE OFFICE PORTFOLIO

Market Leasing Assumptions


Market Rent (Gross)
Category
Freedom Square I
Freedom Square II
Freedom Square III
Oak Tree
Rock Run North
Rock Run Center

2015
$17.00
$18.50
$19.00
$16.00
$16.50
$16.50

2016+
2% growth
2% growth
2% growth
2% growth
2% growth
2% growth

Lease Term
Freedom Square I
Freedom Square II
Freedom Square III
Oak Tree
Rock Run North
Rock Run Center

64 Months
64 Months
90 Months
90 Months
64 Months
64 Months

Base Rent Escalations


Freedom Square I
Freedom Square II
Freedom Square III
Oak Tree
Rock Run North
Rock Run Center

Renewal Probability
75%

Downtime
Nine months

$0.25 per square foot annual escalations


$0.35 per square foot annual escalations
$0.50 per square foot annual escalations
$0.35 per square foot annual escalations
$0.25 per square foot annual escalations
$0.25 per square foot annual escalations

Gross Free Rent (Months)


Category
Freedom Square I
Freedom Square II
Freedom Square III
Oak Tree
Rock Run North
Rock Run Center

2015+
6 months
4 months
4 months
4 months
4 months
4 months

Note: Seller will provide a credit for all contractual rent abatement for a period ending 12/31/15, after which time all abatement
is included in the ARGUS model and is Purchasers responsibility.

Tenant Improvement Allowances


Category
Freedom Square I
Freedom Square II
Freedom Square III
Oak Tree
Rock Run North
Rock Run Center

New

2015+

$20.00
$20.00
$20.00
$20.00
$20.00
$20.00

Renew
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00

Tenant Improvements are projected to remain flat throughout the analysis period.

Leasing Commissions
Category
New Office
Renewal Office

2014+
7.50%
5.50%

Leasing Commissions are applied to all speculative office leases at a rate 7.5 percent of cumulative
gross rent on new leases and 5.5 percent of cumulative gross rent on renewals.
Leasing Commissions are projected to remain flat throughout the analysis period.
77

FINANCIAL OVERVIEW

Building Capital

Management Fee

A capital reserve allowance of $0.10 per square foot is modeled in 2015. This amount is projected to
grow at 2.5 percent per year.

Management Fee is equal to three percent of effective gross revenue (EGR). For the purpose of
calculating CAM charges, ownership passes through a management fee to the tenants equal to three,
four or five percent of EGR. This pass-through is modeled as a reference account in ARGUS.

Category
Capital Reserve ($ psf)

2014
$0.10

2015+
2.5% inc.

Reimbursement Revenue
The majority of leases at the Property are gross leases, with gross-up provisions equal to either 95
percent or 100 percent. Operating expenses and real estate taxes are reimbursed pursuant to each
tenants specific lease provision. Speculative office leases are projected to pay their proportionate
share of operating expenses and real estate taxes over a base year and speculative retail leases are
projected to be fully gross.
The following expenses at the Property are projected to be variable with occupancy:

Cleaning

Utilities

Management

Fee

Operating expenses have been adjusted to account for owner specific expenses and non-recurring
items.

Telecom / Tenant Service Income


The Property generates additional income by leasing antenna and telecom space as well as by
providing additional tenant services. The projection assumes telecom income of $25,070 in 2015. This
amount is based upon the 2015 budget and the rent roll and is projected to grow at 2.5 percent per
year. All other income is modeled under miscellaneous revenue.

78

Non-Recoverable Expenses
The projection assumes approximately $33,709 in miscellaneous non-recoverable operating expenses
for items such as marketing costs, legal fees and space planning in 2015 and zero percent growth per
year. Investors are encouraged to make their own assumptions as it relates to miscellaneous nonrecoverable operating expenses.

THE ROCKSIDE OFFICE PORTFOLIO

Real Estate Taxes


Taxes in Cuyahoga County are assessed on a tri-annual basis and are payable one year in arrears (i.e.
2012 real estate taxes are payable in 2013). The Propertys most recent full year tax bill for 2013 taxes
payable in 2014 equated to $9.98 or $702,202 per square foot. Real estate taxes are presented in the
analysis on a cash basis and are projected to grow at three percent per year. Investors are encouraged
to conduct their own review of real estate taxes.

Historical Real Estate Taxes

Parcel
2011 / P2012
561-18-013
561-18-004
561-18-012
551-11-096
551-11-097
562-28-014
Total 2011 / P 2012 Real Estate Taxes
2012 / P2013
561-18-013
561-18-004
561-18-012
551-11-096
551-11-097
562-28-014
Total 2012 / P 2013 Real Estate Taxes
2013 / P2014
561-18-013
561-18-004
561-18-012
551-11-096
551-11-097
562-28-014
Total 2013 / P 2014 Real Estate Taxes

Tax Year (1)

Total Taxes

Taxes PSF (2)

2011
2011
2011
2011
2011
2011

$88,205
$190,003
$154,393
$72,036
$142,724
$96,638
$743,999

$2.18
$1.66
$2.17
$1.14
$2.25
$1.39
$10.80

2012
2012
2012
2012
2012
2012

$73,847
$197,093
$123,837
$74,829
$93,799
$83,168
$646,573

$1.83
$1.72
$1.74
$1.18
$1.48
$1.20
$9.15

2013
2013
2013
2013
2013
2013

$77,147
$205,900
$129,371
$102,633
$100,267
$86,884
$702,202

$1.91
$1.79
$1.82
$1.62
$1.58
$1.25
$9.98

(1) Real Estate Taxes in Cuyahoga County are payable in arrears, i.e. 2012 real estate taxes are paid in 2013.

79

FINANCIAL OVERVIEW

Historical Operating Expenses


Freedom Square I, II and III
Category

Recoverable Expenses
Utilities
Housekeeping
Maintenance
Repairs
Insurance
Management Fee
Security
Association Fees
Other
Total Recoverable Operating Expenses
Real Estate Taxes (1)
Total Recoverable Expenses
Non-Recoverable Expenses
General & Administrative
Total Non-Recoverable Expenses
Total Expenses

2011
$ Amount

$ PSF

2012
$ Amount

$ PSF

2013
$ Amount

$ PSF

$375,509
$215,855
$143,010
$165,120
$46,099
$83,207
$10,505
$1,383
$7,174
$1,047,862
$474,144
$1,522,006

$5.17
$2.82
$2.12
$2.35
$0.61
$1.11
$0.14
$0.02
$0.10
$14.44
$6.45
$20.89

$352,104
$207,200
$144,130
$174,798
$48,218
$73,798
$10,262
$1,719
$7,897
$1,020,126
$429,042
$1,449,168

$4.87
$2.70
$2.11
$2.32
$0.64
$0.98
$0.14
$0.03
$0.11
$13.89
$5.76
$19.65

$330,135
$176,278
$167,183
$162,660
$51,915
$73,512
$9,771
$25,719
$12,931
$1,010,104
$429,456
$1,439,560

$4.53
$2.26
$2.45
$2.20
$0.69
$0.95
$0.13
$0.35
$0.15
$13.69
$5.79
$19.49

$418,740
$204,045
$198,781
$194,327
$54,354
$82,694
$11,461
$1,719
$15,536
$1,181,657
$436,196
$1,617,853

$5.71
$2.64
$2.96
$2.64
$0.72
$1.05
$0.15
$0.03
$0.21
$16.12
$5.89
$22.00

$25,884
$25,884
$1,547,890

$0.35
$0.35
$21.24

$25,743
$25,743
$1,474,911

$0.35
$0.35
$20.00

$4,011
$4,011
$1,443,571

$0.06
$0.06
$19.55

$29,265
$29,265
$1,647,118

$0.40
$0.40
$22.40

(1) Real estate taxes are presented on a cash basis. Amounts include tax consultant fees.

80

$ PSF

2014 Budget
$ Amount

THE ROCKSIDE OFFICE PORTFOLIO

Historical Operating Expenses


Rock Run North and Center
Category

Recoverable Expenses
Utilities
Housekeeping
Maintenance
Repairs
Insurance
Management Fee
Security
Association Fees
Other
Total Recoverable Operating Expenses
Real Estate Taxes (1)
Total Recoverable Expenses
Non-Recoverable Expenses
General & Administrative
Total Non-Recoverable Expenses
Total Expenses

2011
$ Amount

$ PSF

2012
$ Amount

$119,057
$58,473
$76,510
$99,815
$23,650
$17,350
$5,739
$922
$2,219
$403,735
$329,201
$732,936

$1.88
$0.92
$1.21
$1.58
$0.37
$0.27
$0.09
$0.01
$0.04
$6.38
$5.20
$11.58

$121,426
$72,210
$74,441
$103,286
$24,563
$18,311
$5,413
$1,146
$3,799
$424,595
$169,628
$594,223

$402
$402
$733,338

$0.01
$0.01
$11.59

-$16,059
-$16,059
$578,164

2013
$ Amount

$1.92
$1.14
$1.18
$1.63
$0.39
$0.29
$0.09
$0.02
$0.06
$6.71
$2.68
$9.39
-$0.25
-$0.25
$9.13

$ PSF

$ PSF

2014 Budget
$ Amount

$ PSF

$194,659
$123,208
$81,809
$129,698
$26,448
$49,209
$5,310
$1,146
$5,212
$616,699
$205,019
$821,718

$3.08
$1.95
$1.29
$2.05
$0.42
$0.78
$0.08
$0.02
$0.08
$9.74
$3.24
$12.98

$219,842
$133,438
$99,361
$113,487
$27,690
$48,451
$6,180
$1,146
$6,051
$655,646
$188,316
$843,962

$3.47
$2.11
$1.57
$1.79
$0.44
$0.77
$0.10
$0.02
$0.10
$10.36
$2.98
$13.33

$469
$469
$822,187

$0.01
$0.01
$12.99

$3,084
$3,084
$847,046

$0.05
$0.05
$13.38

(1) Real estate taxes are presented on a cash basis. Amounts include tax consultant fees.

81

FINANCIAL OVERVIEW

Historical Operating Expenses


Oak Tree Place
Category

Recoverable Expenses
Utilities
Housekeeping
Maintenance
Repairs
Insurance
Management Fee
Security
Association Fees
Other
Total Recoverable Operating Expenses
Real Estate Taxes (1)
Total Recoverable Expenses
Non-Recoverable Expenses
General & Administrative
Total Non-Recoverable Expenses
Total Expenses

2011
$ Amount

$ PSF

2012
$ Amount

$ PSF

2013
$ Amount

$ PSF

$137,790
$85,659
$44,524
$75,949
$13,962
$31,107
$3,271
$461
$2,579
$395,302
$102,472
$497,774

$1.99
$1.24
$0.64
$1.10
$0.20
$0.45
$0.05
$0.01
$0.04
$5.70
$1.48
$7.18

$122,136
$78,656
$45,255
$48,205
$14,568
$15,332
$3,097
$573
$1,477
$329,299
$90,070
$419,369

$1.76
$1.13
$0.65
$0.70
$0.21
$0.22
$0.04
$0.01
$0.02
$4.75
$1.30
$6.05

$130,198
$61,352
$43,497
$57,989
$15,686
$17,933
$3,037
$573
$1,508
$331,773
$87,484
$419,257

$1.88
$0.89
$0.63
$0.84
$0.23
$0.26
$0.04
$0.01
$0.02
$4.79
$1.26
$6.05

$151,695
$75,557
$57,332
$67,892
$16,422
$21,404
$3,888
$573
$5,579
$400,342
$92,892
$493,234

$2.19
$1.09
$0.83
$0.98
$0.24
$0.31
$0.06
$0.01
$0.08
$5.78
$1.34
$7.12

$202
$202
$497,976

$0.00
$0.00
$7.18

$202
$202
$419,571

$0.00
$0.00
$6.05

$101
$101
$419,358

$0.00
$0.00
$6.05

$1,360
$1,360
$494,594

$0.02
$0.02
$7.14

(1) Real estate taxes are presented on a cash basis. Amounts include tax consultant fees.

82

$ PSF

2014 Budget
$ Amount

THE ROCKSIDE OFFICE PORTFOLIO

The Rockside Portfolios Cash Flow


PSF

1
2015

2
2016

3
2017

4
2018

5
2019

6
2020

7
2021

8
2022

9
2023

10
2024

11
2025

$15.34
($3.40)
($0.40)
$0.96
$0.06
$12.56

6,454,965
(1,429,483)
(169,504)
404,310
25,070
5,285,358

6,542,017
(804,137)
(242,463)
441,024
25,070
5,961,511

6,636,436
(116,278)
(307,998)
481,174
25,070
6,718,404

6,758,032
(84,828)
(49,737)
534,368
25,070
7,182,905

6,857,358
(121,464)
(54,609)
567,867
25,070
7,274,222

6,954,966
(49,571)
(28,306)
624,792
25,070
7,526,951

7,073,334
(150,378)
(63,009)
664,424
25,070
7,549,441

7,161,196
(53,582)
(25,313)
707,662
25,070
7,815,033

7,271,768
(445,420)
(285,021)
668,865
25,070
7,235,262

7,405,017
(292,090)
(154,488)
664,769
25,070
7,648,278

7,587,633
(333,817)
(202,625)
596,324
25,070
7,672,585

Expenses
Electric
Housekeeping
Maintenance
Repairs
RE Taxes
Insurance
Security
Assoc. Dues
Other
Management Fee
Other Owner Expense
Promotions
Total Expenses

$1.92
$1.08
$0.83
$0.89
$1.74
$0.24
$0.05
$0.01
$0.03
$0.38
$0.06
$0.02
$7.16

806,083
452,965
348,853
375,366
731,753
100,435
21,961
3,504
11,964
158,561
24,000
9,709
3,045,154

822,205
512,759
355,830
382,874
746,386
102,443
22,398
3,576
12,201
178,844
24,000
9,709
3,173,225

838,650
575,878
362,946
390,531
761,317
104,493
22,848
3,648
12,445
201,553
24,000
9,709
3,308,018

855,422
590,663
370,205
398,341
776,538
106,583
23,303
3,720
12,695
215,487
24,000
9,709
3,386,666

872,528
599,984
377,610
406,309
792,069
108,714
23,770
3,798
12,948
218,226
24,000
9,709
3,449,665

889,981
617,443
385,164
414,433
807,916
110,889
24,245
3,870
13,207
225,809
24,000
9,709
3,526,666

907,779
622,592
392,865
422,724
824,070
113,107
24,730
3,948
13,472
226,484
24,000
9,709
3,585,480

925,934
642,467
400,724
431,178
840,553
115,369
25,224
4,026
13,742
234,452
24,000
9,709
3,667,378

944,454
625,084
408,739
439,800
857,364
117,677
25,729
4,110
14,016
217,058
24,000
9,709
3,687,740

963,342
649,717
416,912
448,597
874,509
120,029
26,243
4,188
14,296
229,449
24,000
9,709
3,780,991

982,610
659,956
425,250
457,569
892,002
122,430
26,768
4,272
14,582
230,178
24,000
9,709
3,849,326

Net Operating Income

$5.40

2,240,204

2,788,286

3,410,386

3,796,239

3,824,557

4,000,285

3,963,961

4,147,655

3,547,522

3,867,287

3,823,259

Capital
Tenant Improvements
Leasing Commissions
Structural Reserve
Total Capital

$1.26
$0.62
$0.10
$1.99

530,827
261,462
43,055
835,344

895,915
566,782
43,917
1,506,614

1,085,477
754,385
44,796
1,884,658

235,153
207,740
45,692
488,585

269,466
229,859
46,605
545,930

147,088
110,408
47,538
305,034

333,409
238,208
48,488
620,105

125,072
105,503
49,459
280,034

1,086,431
1,190,611
50,446
2,327,488

568,634
633,094
51,457
1,253,185

799,613
839,398
52,486
1,691,497

Cash Flow

$3.42

1,404,860

1,281,672

1,525,728

3,307,654

3,278,627

3,695,251

3,343,856

3,867,621

1,220,034

2,614,102

Calendar Year Ending December,


Revenue
Potential Rental Revenue
Absorption & Turnover Vacancy
Base Rent Abatements
Expense Reimbursement Revenue
Telecom / Other Income
Total Revenue

83

TRANSACTION GUIDELINES

THE ROCKSIDE OFFICE PORTFOLIO


85

TR ANSACTION GUIDELINES

Transaction Guidelines

The offering of The Rockside Portfolio is being distributed exclusively by Jones Lang LaSalle to a
select group of pre-qualified investors. The prospective investor will be selected by Owner in its sole
and absolute discretion based on a variety of factors including, but not limited to:

Offer Price

Financial strength

Level of discretion to invest funds

Ability to close in a timely fashion

Experience in closing similar transactions

Absence of contingencies

Level of Property due diligence completed

Thoroughness and conveyance of Property underwriting

Timeframe and amount of non-refundable earnest money deposit

Strength of commitment from lender and terms of debt, if any

Contact Details

Supplemental information regarding the Property, including the ARGUS model and other due diligence
information is available on the due diligence website. All inquiries should be directed to the attention of
one of the following representatives:

JLL Americas, Inc.


200 East Randolph Drive
Chicago, IL 60601
Tel +1 312.782.5800
Fax +1 312.601 1416

James J. Postweiler

Peter G. Harwood

Managing Director
Tel +1 312.228.2661
jim.postweiler@am.jll.com

Executive Vice President


Tel +1 312.228.2124
peter.harwood@am.jll.com

Jones Lang LaSalle 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.
For information regarding debt availability, please contact:
Other key Transaction Guidelines include the following:
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 timeframe 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

The Seller will be responsible for County and State transfer taxes and the prospective purchaser will
be responsible for the city transfer taxes, survey and title insurance.

As is the standard practice for the sale of office buildings in Chicago, real estate taxes will be prorated on
a cash basis so that the prospective purchaser will not receive a credit at closing for accrued real estate
taxes. Offers must confirm that the bid incorporates such real estate tax prorations.

All

86

Keith A. Largay

Executive Vice President


Tel +1 312.228.3111
keith.largay@am.jll.com

Disclaimer

The material in this Investment Offering Introduction is confidential, furnished solely for the purpose of considering the AS IS
acquisition of The Rockside Portfolio located near Cleveland, Ohio. The information is not to be used for any other purpose or to
be made available to any other person without the express written consent of Agent on behalf of Owner. The material is based,
in part, upon information supplied by Owner and, in part, upon information obtained by Agent from sources they deem to be
reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of
such documents, but rather only outlines of some of the principal provisions contained therein. No warranty or representation,
expressed or implied, is made by Owner, Agent or any of their respective related agents or entities as to the accuracy or
completeness of the information contained herein. Prospective investors should make their own investigations, projections and
conclusions regarding the Property. It is expected that prospective investors will conduct their own independent due diligence
concerning the Property, including such engineering and environmental inspections as they deem necessary to determine
the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or
maintenance of the Property. No representations, expressed or implied, are made as to the foregoing matters by the Owner,
Agent or any of their respective officers, employees, affiliates and/or agents.

THE ROCKSIDE OFFICE PORTFOLIO

87

Contact Information

For information on debt availability, please contact:

James J. Postweiler

Rob Roe

Peter Harwood

Jon Vanderplough

Bryant Gewalt

Keith A. Largay

Managing Director
Tel +1 312.228.2661
jim.postweiler@am.jll.com

Managing Director
Tel +1 216.937.4371
rob.roe@am.jll.com

Executive Vice President


Tel +1 312.228.2124
peter.harwood@am.jll.com

Vice President
Tel +1 216.937.4376
jon.vanderplough@am.jll.com

Associate
Tel +1 312.228.3193
bryant.gewalt@am.jll.com

Executive Vice President


Tel +1 312.228.3111
keith.largay@am.jll.com