MARKET STUDY NORTHEAST INDIANA

Transcription

1 24 th annual COMMERCIAL REAL ESTATE MARKET STUDY NORTHEAST INDIANA

2 CENTRAL INDIANA Montcalm NORTH CENTRAL INDIANA Muskegon NORTHEAST INDIANA Ottawa Kent Ionia NORTHWEST INDIANA Allegan Barry Eaton WEST MICHIGAN Lake Michigan Berrien Van Buren Cass Kalamazoo St. Joseph Calhoun Branch LaPorte St. Joseph Elkhart LaGrange Steuben Lake Porter Starke Marshall Kosciusko Noble DeKalb Newton Jasper Pulaski Fulton Whitley Allen White Cass Huntington Wabash Wells Adams Vermillion Benton Miami Carroll Grant Blackford Howard Warren Tippecanoe Clinton Tipton Delaware Madison Hamilton Fountain Montgomery Boone Henry Hendricks Marion Hancock Parke Jay Randolph Wayne Vigo Clay Putnam Owen Shelby Morgan Johnson Bartholomew Brown Rush Decatur Fayette Franklin Union Monroe

3 TABLE OF CONTENTS PRESIDENT S LETTER RETAIL 05 INDUSTRIAL 16 MULTI-HOUSING 09 OFFICE 18 SERVICES & PROFESSIONALS RESEARCH ANALYSIS STEVEN HEATHERLY sheatherly@bradleyco.com GAGE HUDAK ghudak@bradleyco.com LUCAS DEMEL ldemel@bradleyco.com LAYOUT DESIGN MICHELLE MOREY mmorey@bradleyco.com JONATHAN KITCHENS jkitchens@bradleyco.com KYLIE CURTIS kcurtis@bradleyco.com

4 PRESIDENT S LETTER As a regional leader of commercial real estate services in the Midwest, we understand that critical market knowledge is foundational to the value we provide to our clients. This 24th Edition of our Market Study reflects the collective insights and experience of the growing team of skilled Bradley Company professionals. We first thank our sponsors, who are recognized in the back of this report, for helping deliver this 24th Edition that again provides in-depth analyses on the regions we serve throughout Indiana and Michigan. Within this report you will find market activity from several aspects of our business, which reflect the local, regional, and national economic landscape. While we continually look for ways to enhance our insight into the regions we cover, we believe this study to be an invaluable tool for anyone with exposure to the commercial real estate industry. Our pursuit of excellence, to be the premier commercial real estate service provider in the Midwest, has led to the expansion of our geographic footprint as well as the evolution of our lines of business through the addition of talent. In 2016 we made significant strides to expand our presence in two leading Midwest markets, Indianapolis and Grand Rapids, where we have deepened our talent pool with many new, seasoned professionals in our brokerage and property management lines of business. These professionals bring a wealth of experience and technical expertise that augment our platform to meet an increasingly sophisticated set of client requirements as they seek to gain insights into real estate markets and best advantage their investor or occupier needs. With a presence in eight primary markets from West Michigan through North and Central Indiana, the Bradley Company platform is well positioned to serve the regions dynamic, economic growth. While on the surface 2017 is poised to be a year of improved, yet modest, growth in our markets, the current expansion of the US economy is in its seventh year, with forecasted GDP hovering just above 2%. Equity markets have been robust, with several indexes topping historic highs in recent quarters, as the labor market approaches a return to full employment. Aging demographics are playing in to skilled labor challenges in many sectors. The prospect of Federal tax and regulatory reform could unleash additional capacity, however, on the balance, a tempered climate for international trade could cool opportunities for economic expansion. The two recent Federal interest rate bumps of 25 basis points to reach a 1% total rate and two more increases anticipated in 2017 have spurred active real estate owners to either sell, or lock in low rates and convert from even lower floating rates. This is in direct correlation to what will be rising cap rates and, thus, shrinking real estate values. However, as real estate has been a favored asset class as a tangible investment and significant capital has been parked on the sidelines for this category, cap rates will likely not move up at a matched pace to interest rates, which will mean shrinking investment margins. This environment will require better management and will rely on a continued moderate supply creation environment. E-commerce continues to disrupt traditional retail practices, with total sales in 2016 estimated at nearly $400 billion, up about 15% year over year, far outpacing the 2.9% increase in overall retail sales. The implications for real estate in a mobile economy places demands on the need for additional warehouse facilities to serve growing logistics and distribution needs. Ironically, the competition from the online market has led many national retail anchors to reduce their physical footprint while online retailers, such as Amazon, have opened their first brick and mortar stores to strengthen their dominance. Across the country, population centers continue to trend toward urban density, which translates to an unprecedented volume of multi-family construction in the urban cores of major metropolitan centers as well as secondary and tertiary communities. Simultaneously, traditional suburban retail and office centers are being creatively redeveloped into mixed-use town centers that combine complimentary uses for residential, office, medical, retail, and entertainment uses in a pedestrian friendly format. The evolving consumer patterns and tenant requirements have driven a need for new mixed-use redevelopment construction. 2

5 PRESIDENT S LETTER The industrial sector is performing extremely well, with market vacancies remaining at or near historically low levels in most markets, fueled by consumer products and e-commerce distribution as the largest demand drivers for industrial space in Growth in the manufacturing and goods-producing sectors will be areas to watch as the new presidential administration focuses to spur these fields. In 2015, the Indiana Economic Development Corporation launched the Regional Cities Initiative, a challenge to the State s seven regions to compete for three $42 million place-making grants with a purpose to improve the quality of life in these communities by attracting new residents and investment to the state. The $126 million in collective, state, local, and private matching funds is poised to leverage over $2.1 billion in investment across the North Central, Northeast, and Southwest regions of the state. As much of this investment will occur in the form of new or rehabilitated real estate, the impact in the communities served by Bradley Company will be transformational is poised to be a watershed year as many of the landmark projects spurred by the Regional Cities effort become open for business. In Central Indiana, 2016 was a historic year for the industrial market, where net absorption hit its highest total ever in the market. Downtown Indianapolis continued its growth trajectory, as evidenced by Salesforce expanding into the former Chase Tower building, occupying 250,000 square feet and renaming the building to Salesforce Tower. In North Central Indiana, the RV industry continues to pave the way for economic growth. RV shipments hit their highest total in 40 years, ending 2016 with 430,691 total units shipped with momentum continuing throughout 2017 and shipments expected to total 438,000 units. In Northwest Indiana, the region s economic growth is expected to increase and with the South Shore Commuter Rail line approving a $1 billion capital plan that outlines improvements over the next five years to increase capacity, expedite travel times and expand and renew the fleet. The economic impact of these upgrades are expected to be over $2 billion annually, once completed. For Northeast Indiana, Downtown Fort Wayne has been the focus of regional market attention. Projects such as the Skyline Tower and Cityscape Flats mark the first significant residential projects developed in the past five years for the downtown market. The new riverfront development, combined with the proposed $100 million arena, are expected to add new energy to the downtown and surrounding areas. West Michigan markets continue to see companies making large capital investments. Pfizer and Stryker are investing over $100 million in their campuses, while the largest data center in the eastern United States, Supernap, continues its $5 billion campus at the site of the former Steelcase Pyramid building in Grand Rapids. As we delve much deeper in to the statistics and facts of our markets herein, we hope you find our 24th edition useful and beneficial in your everyday decisions. Should you wish to further engage in any of our data and information contained herein, feel free to contact us. Bradley Company s team of professionals look forward to a prosperous growth year for all! Warm regards, Bradley J. Toothaker, CPM, SIOR President & CEO 3

6 NORTHEAST INDIANA While the Northeast Indiana region consists of several counties, Allen County is the regional economic hub with the City of Fort Wayne driving much of the regional economy. With a population of over 260,000 people, Fort Wayne is the second largest city in Indiana. The downtown area is experiencing significant regentrification, due in large part to Northeast Indiana Regional Partnerships Vision 2020 initiative and the Regional Cities Initiative. St. Joseph Elkhart LaGrange Steuben Marshall Kosciusko Noble DeKalb Whitley Fulton Allen Wabash Huntington Wells Adams Miami Grant Blackford Jay DEMOGRAPHICS BY COUNTY 1 Population 1 Households 1 Median HH Income 2 Labor Force 2 Unemployment Rate County 2016 Annual Growth Rate* 2016 Annual Growth Rate* 2016 Annual Growth Rate* 2015 January 17 Allen 370, % 143, % $50, % 178, % Surrounding Counties 334, % 123, % $50, % 151, % Northeast 704, % 267, % $50, % 330, % 1 Source: ESRI BAO 2 Source: STATS Indiana * Projected Annual Growth Rate 4

7 NORTHEAST INDIANA INDUSTRIAL The Northeast Indiana region is well positioned within a one-day drive of 50 percent of all U.S. markets. Kroger, Sweetwater Sound, Walmart, FedEx, and Family Dollar all have distribution centers within the region. Emerging industries within the region include design and craftsmanship, distribution and e-commerce, food and beverage, and advanced materials. Over 780 transportation businesses employ roughly 11,682 people in the region. Vehicle manufacturing accounts for 20.7 percent of the manufacturing employment in the region, compared to 7.5 percent for the United States. The area around the General Motors Fort Wayne Assembly Plant on Fort Wayne s southwest side is undergoing major expansion projects. General Motors is investing $1.2 billion into expanding its facility, one of the largest investments documented in northeast Indiana, while NorthPoint Development is constructing GM-related industrial buildings, including an 804,805-square-foot distribution center. These investments are key examples of the growing confidence in the industrial market for northeast Indiana. MILWAUKEE GRAND RAPIDS CHICAGO 254 MILES 162 MILES S. BEND / MISHAWAKA 90 MILES 175 MILES FORT WAYNE 162 MILES DETROIT 204 MILES CLEVELAND Since 2014, four speculative industrial buildings were constructed in the region, adding 218,000 square feet of industrial space to the market. The increased confidence in the industrial market is giving developers a sense of security when deciding whether or not to construct spec facilities without tenants in place before construction. This, combined with the 15 certified shovel ready sites, is preparing the region for future development. 124 MILES INDIANAPOLIS 179 MILES 159 MILES COLUMBUS 234 MILES CINCINNATI LOUISVILLE > The Hagerman Group; Airport Expressway, Fort Wayne 5

8 NORTHEAST INDIANA INDUSTRIAL CERTIFIED SHOVEL READY SITES Shovel Ready Sites HUNTINGTON FORT WAYNE AUBURN In Northeast Indiana, we are seeing continued growth throughout our 11 county region. Companies benefit from our central Midwest location with exceptional highway and railroad connections. We remain committed to investment in speculative buildings, certified shovel ready sites and developing a skilled talent pipeline to anticipate employer demands. JOHN SAMPSON - PRESIDENT AND CEO NORTHEAST INDIANA REGIONAL PARTNERSHIP Availability & Asking Rates Allen County finished 2016 with 3.2 million square feet of industrial space available for sale or lease, making up 55 percent of the total available space for the region. Since 2014, over 1.6 million square feet of industrial space has been taken off the market in Allen County. The recent investment sale of International Park, a 1.46 million-square-foot complex, impacted the flex rental rates towards the end of The building sat nearly half vacant at the time of sale, with most of the spaces asking below market rates. The new owners are planning to repurpose the facility, and once completed, will likely impact flex rental rates in the coming years. Recently, over 250,000 square feet came onto the market at 1450 Production Road in Fort Wayne. Raytheon formerly owned the facility, but downsized and sold it. The new tenant only occupies 30 percent of the building, with the rest of the space available for lease. The facility is located within an established industrial park, and can be easily converted into a variety of uses. Availability Rates 14% 12% 10% 8% 6% 4% 2% 0% Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Allen County Asking Rates - $/SF NNN $6 $5 $4 $3 $2 $1 Q $0 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16

9 NORTHEAST INDIANA INDUSTRIAL Notable Transactions Sale ADDRESS CITY SF SALE PRICE BUYER OFF MARKET International Park; 2701 S. Coliseum Blvd.* Fort Wayne 1,400,000 $2,250,000 Phoenix Fort Wayne, LLC ADDRESS CITY SF TENANT TYPE OFF MARKET 84 Commercial Rd. Huntington 131,786 Ecolab, Inc. New Q Adams Center Rd. Fort Wayne 125,477 Multimatic Indiana New Q Investment Dr. Fort Wayne 99,579 Shambaugh & Son New Q4 16 Q Rose Ave.* New Haven 180,000 $3,400,000 Cedar, LLC Q Lincoln Pkwy.* Fort Wayne 138,720 $2,850,000 Undisclosed Q Piper Dr. Fort Wayne 64,300 $1,450,000 Quoin, LLC Q Industrial Rd. Fort Wayne 49,464 $740, , LLC Q2 16 *Investment sale Lease 2801 W. State Blvd. Fort Wayne 98,000 Best Warehousing & Transportation New Q East Rail Connect Dr. Columbia City 70,000 Autoliv ASP, Inc. New Q4 16 New Construction & Additions Building Permit Activity $400M $300M $200M $100M GM INVESTMENT ALLEN COUNTY After 2015 s significant increase in the total estimated value of industrial permits issued, 2016 reverted back to steady values. General Motors massive expansion was the main reason for the significant increase in The majority of building permits issued in 2016 were expansion and renovation projects. $

10 NORTHEAST INDIANA INDUSTRIAL Growth & Development 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 6 PROJECTS TOTALING 575,500 SQUARE FEET COMPLETED 8 PROJECTS TOTALING 2,913,845 SQUARE FEET UNDER CONSTRUCTION February 2017 Trinity Health & XPO Logistics, Fort Wayne $26 million, 400,000-square-foot distribution center Developed by Trinity Health and XPO Logistics Serves as regional hub for medical and surgical supplies for Trinity Health hospitals Around 75 new jobs expected to be created by 2018 The Hagerman Group; Airport Expressway, Fort Wayne 137,500-square-foot building Leased to Faurecia Clean Mobility Expected to create 144 new jobs by 2018 Building expected to be completed late 2017 General Motors Fort Wayne Assembly Plant NorthPoint Development Vera Bradley North American Cold Storage, Inc., Woodburn Completed late ,000-square-foot addition to current facility Since 2014, nearly $28.1 million has been invested in the facility NorthPoint Development, Roanoke $15 million, 804,805-square-foot distribution center near General Motors complex No tenant announced yet, but building is expected to be finished in the spring of

11 NORTHEAST INDIANA OFFICE CITY OF FORT WAYNE Activity in the office market for Downtown Fort Wayne has historically been rather neutral, however recent developments are generating positive momentum. Ash Brokerage s new headquarters has helped spur other developments in the downtown area. It is expected that when completed, Skyline Tower will add 16,000 square feet of Class A office space to the market. Ash Realty recently closed on the purchase of the 123,000-square-foot Fifth Third Metro Center, with plans to convert the office building into a mixed-use office and retail center, with high-end residential condominiums on the top two floors. The renovation will re-class a significant amount of Class B office space to attractive Class A space. FORT WAYNE Office Clusters > Ash Brokerage Building, Fort Wayne Despite the attention towards downtown, the suburban office market is still in high demand. Outer lying office space is being absorbed quickly and becoming more and more attractive to medical users vying for space proximal to Lutheran Hospital and Parkview Hospital. The two hospitals continue to expand in the market, creating opportunities for new medical users entering into the market, as well as existing companies growing their footprints. 9

12 NORTHEAST INDIANA OFFICE Availability Rates Availability & Asking Rates 25% Asking Rates - $/SF Full Service Gross $18 20% 15% 10% 5% $16 $14 $12 0% Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 $0 Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Notable Transactions Investment Sales ADDRESS CITY SF SALE PRICE BUYER OFF MARKET Fifth Third Metro; 202 W. Berry St. Fort Wayne 123,368 Undisclosed Ash Realty Q W. Berry St. Fort Wayne 66,000 $1,900,000 Meca Building, LLC Q E. Washington Blvd. Fort Wayne 39,111 $910, Street, LLC Q W. Jefferson Blvd. Fort Wayne 11,750 $562,000 Trinity Development Group Q Coldwater Rd. Fort Wayne 7,848 $1,500,000 Oakmont Dev. Co. II Q1 16 Lease ADDRESS CITY SF TENANT TYPE OFF MARKET 3400 Coliseum Blvd. Fort Wayne 16,406 Undisclosed New Q1 16 Lincoln Tower; 116 E. Berry St. Fort Wayne 13,104 MarLo Business Services New Q Coliseum Blvd. Fort Wayne 12,756 Earth Link, Park 3000 New Q Directors Row Fort Wayne 11,376 Heartland Home Services Renewal Q2 16 ALLEN COUNTY 10 New Construction & Additions Compared to previous years, 2016 saw an increase in new construction and expansion projects by several different companies. Previously, the total estimated value was highlighted by one significant project: Ash Brokerage. In 2017, we expect the value of building permits to be consistent to 2016 with a combination of expansion projects and a few new construction developments. Building Permit Activity $50M $40M $30M $20M $10M $

13 Growth & Development NORTHEAST INDIANA OFFICE 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 6 PROJECTS TOTALING 70,720 SQUARE FEET COMPLETED 4 PROJECTS TOTALING 112,280 SQUARE FEET UNDER CONSTRUCTION Parkview Health Clinic, Fort Wayne Completed November ,171-square-foot primary care clinic, which includes 18 exam rooms Skyline Tower, Fort Wayne $40 million mixed-use development Began construction in October 2016 Project includes 16,000 square feet of modern Class A office space on the second story Overall project expected to be completed in midsummer 2018 Rendering Sycamore Pointe Office Park, Fort Wayne Phase II completed in late ,000-square-foot Class A office building with finishto-suit specifications Mike Thomas Associates Realtors, Fort Wayne 20,000-square-foot office building Expected to open in early 2017 Rendering Skyline Tower is a tremendous addition to the heart of our City. I continue to be encouraged by the progress we re seeing throughout Fort Wayne. We re strengthening our position as a point of destination where individuals, families, and business want to invest. By working together, we re attracting and retaining jobs as a community moving in the right direction. MAYOR TOM HENRY, FORT WAYNE 11

14 NORTHEAST INDIANA RETAIL ALLEN COUNTY The retail market in Fort Wayne looks encouraging in that new franchises are coming into the market. Long corridors such as: Lima Road, U.S. 3, and Illinois Road are seeing an increase in retail developments. > Riverfront Initiative (Promenade) Rendering, Fort Wayne The retail inventory in Downtown Fort Wayne has tightened significantly over the few years. Tenants are staying downtown by locking in longer lease terms. The Ash Brokerage project added over 12,000 square feet of high-end retail space to the downtown market in 2016 and was leased prior to completion. Skyline Tower, the Riverfront Initiative, the Landing Development, and the proposed $104.9 million downtown event center are expected to immensely increase foot traffic downtown, draw more people to the downtown core, and open up various new retail opportunities. Dupont & Diebold Area Proposed Parkside Development Anchored by a 160-room dual-brand Hilton Hotel 10 out lots available for development, totaling 8.96 acres Proximal to the Parkview Regional Medical Center, and two I-69 interchanges PROMENADE AERIAL VIEW > Dual-Brand Hilton Hotel Rendering, Fort Wayne > The Landing Rendering, Fort Wayne 12

15 Availability Rates 20% Availability & Asking Rates Asking Rates - $/SF NNN $30 NORTHEAST INDIANA RETAIL 15% 10% 5% 0% Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Availability rates decreased 2.11 percent since first quarter 2014, with nearly 300,000 square feet of retail space taken off the market during that time. Newly constructed retail spaces are generally asking between $23 to $30/squarefoot, triple-net, while second generation spaces below 10,000 square feet are asking between $9 to $16/squarefoot, triple-net. $25 $20 $15 $10 $5 Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 SG = Second Generation The leveled availability rates, partnered with reasonable rental rates, will continue to keep the retail market in Fort Wayne stable over the next few years. New developments for the downtown area may intrigue new retailers to pursue the market. As new retailers begin to backfill vacant spaces, availability rates are expected to decline. GENERAL ELECTRIC CAMPUS REVITALIZATION Announced February 2017, Baltimore-based Cross Street Partners will invest $300 million to redevelop the vacant General Electric campus on the southwest side of Fort Wayne into a mixed-use innovation district. The project involves over 1 million square feet of development on the 31-acre campus and will have a residential, educational, retail, office, and hotel component. Construction on the redevelopment could begin in the fall of 2017, taking approximately four years to complete. > General Electric Campus Rendering, Fort Wayne We want to be a nationally recognized economy. This is the most transformational project of my career. We believe this is a strong proposal with the potential to be a nationally recognized project. ERIC DODEN - CEO OF GREATER FORT WAYNE 13

16 NORTHEAST INDIANA RETAIL Sale ADDRESS CITY SF SALE PRICE BUYER OFF MARKET The Marketplace of Canterbury; 5675 St. Joe Rd.* ADDRESS CITY SF TENANT TYPE OFF MARKET Parkwest Center; 3800 W. Jefferson Fort Wayne 35,001 The Great Escape New Q3 16 North Georgetown Shopping Center; 6505 E. State Blvd. Fort Wayne 90,042 $1,600,000 DG Properties 11 Q Parnell Ave.* Fort Wayne 84,900 $2,300,000 Undisclosed Q Illinois Rd. Fort Wayne 51,822 $3,445,000 Schipper, LLC Q Lima Rd.* Fort Wayne 24,801 $1,035,000 *Investment sale Lease Notable Transactions Summit City Management, LLC Q4 16 Fort Wayne 12,100 St. Joseph Health System New Q1 16 Dupont Landing; 2910 E. Dupont Rd. Fort Wayne 10,030 Century 21 Renewal Q1 16 ALLEN COUNTY New Construction & Additions The total estimated value of new construction and addition projects in 2016 was fairly consistent with the previous two years. A healthy, consistent investment in the retail market for Fort Wayne will continue to draw residents from outlying markets. Building Permit Activity $25M $20M $15M > Downtown Sports Arena Rendering, Fort Wayne $10M $5M $ > Parkview Field, Fort Wayne 14

17 NORTHEAST INDIANA RETAIL Growth & Development 2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS 5 PROJECTS TOTALING 68,209 SQUARE FEET UNDER CONSTRUCTION 4 PROJECTS TOTALING 23,931 SQUARE FEET COMPLETED Image from Greenwood, IN Ash Brokerage, Fort Wayne Kroger Marketplace, Fort Wayne 4 retailers occupied over 12,000 square feet Tenants include: The Golden restaurant, Lake City Bank, DeBrand Fine Chocolates, and The Find boutique 31,000-square-foot expansion brings store s overall size to over 123,500 square feet $14 million investment expected to be completed in early 2017 Stellhorn Crossing, Fort Wayne Rendering Ruth s Chris, Fort Wayne Multi-tenant, 7,840-square-foot retail center Skyline Tower-anchor Finish-to-suit specifications Expected to open in the fall of 2017 Rendering 15

18 NORTHEAST INDIANA MULTI-HOUSING ALLEN COUNTY 91 apartments totaling 21,292 units Year * 2018* # Units Added *Projected Occupancy & Rent The primary focus of the Fort Wayne multi-housing market over the past year has been creating opportunities for people to relocate downtown. Cityscape Flats, Skyline Tower, and the recent purchase of the Fifth Third Metro Center are prime examples of this. Cityscape and Skyline will add 287 high-end, amenity rich apartment units to the downtown area by mid This recent resurgence is significant as the last residential development project to take place in the downtown area was five years ago, when the Harrison project added 46 apartment units to the Parkview Field ballpark. Occupancy Rates 98% 96% 94% 92% Q2 12 Q4 12 Q2 13 Q4 13 Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Source: Yardi 16

19 NORTHEAST INDIANA MULTI-HOUSING Rental Rates Fort Wayne $1400 $1200 $1000 $800 $600 $400 $200 Momentum for the movement downtown has already generated an abundance of activity. According to a September interview with Domo Development partner, Scott Sorensen, 122 people have already expressed interest in the 163 available units, with eight people having already signed leases before completion of the complex. The success of these three projects will be vital to the massive transformation happening in Downtown Fort Wayne. $ Growth & Development 2017 NOTABLE PROJECTS 3 PROJECTS TOTALING 491 UNITS UNDER CONSTRUCTION Skyline Tower, Fort Wayne $40 million, 12-story mixed-use development Development by Great Lakes Capital Project includes 124 apartment units, as well as 30,000 square feet of retail and office space Floors 3-8 expected to be completed Q Remaining residential portion expected to be completed mid-summer 2018 Rendering Cityscape Flats, Fort Wayne $27 million apartment complex Developed by Domo Development Opened doors in February 2017 to half of units, expected to be fully open in April Rendering Project includes a 163-unit apartment complex, 14 row houses, 173-space parking garage, and streetscape improvements 17

20 A seasoned and talented team of real estate professionals serving the Midwest region since BRADLEY COMPANY SERVICES & PROFESSIONALS CREATING REAL VALUE IN PROPERTY. Founded in 1978, Bradley Company is a diversified real estate firm offering clients a full range of commercial brokerage and asset services. With regional offices throughout Indiana and Michigan, we employ nearly 250 knowledgeable professionals. Our experienced team manages 10± million square feet of commercial property including office, retail, industrial and medical office buildings among our many clients. In addition, we act as brokerage agents for over 550 commercial properties. We also manage more than 3,000 multi-housing units varying from conventional to student and associations. BROKERAGE Commercial sales and leasing Property marketing Proprietary market research Market/competitive analyses Strategic planning Property positioning Analytics and consulting Buyer and tenant representation CAPITAL MARKETS 18 Real estate finance advisory Creative debt and equity capital solutions Financial model and packaging Extensive rolodex of local, regional and national debt and equity providers ASSET SERVICES Property management Financial management and administration Lease administration and tenant relations Receivership Contract management Cost containment Parking management Route maintenance CORPORATE SERVICES Integrated facility management Project management Portfolio strategy/planning Alternative workplace solutions Space management Energy management Lease administration Safety & compliance Vendor & contract management Asset management MULTI-HOUSING Property management Leasing Resident relations Financial management Maintenance, repair and capital planning Grant writing and funding source management Strategic planning Development and market rent studies Receivership TAX CONSULTING Property assessment and comparison Property tax monitoring and control Property evaluation Analysis Tax liability savings Review business uses of property

21 CENTRAL INDIANA INDIANAPOLIS JIM LOGAN Managing Director JEFF NORRIS Senior Vice President, CAS BILLY MCCLAMROCH Office CASEY CUPP Marketing Director W. SHAWN CONWAY Bioscience INDIANAPOLIS 8604 Allisonville Rd., Suite 150 Indianapolis IN T ALEX COHN Office acohn@bradleyco.com DAVID ELLIS Retail & Investment dellis@bradleyco.com NORTH CENTRAL INDIANA BRAD TOOTHAKER, CPM, SIOR President & CEO btoothaker@bradleyco.com MARK NEAL Principal mneal@bradleyco.com KARA MCGUIRE Executive Vice President kmcguire@bradleyco.com SOUTH BEND AL KOCH Retail & Office akoch@bradleyco.com AUTUMN PSAROS Retail apsaros@bradleyco.com GAGE HUDAK Office & Retail ghudak@bradleyco.com JOHN O BRIEN, CCIM Industrial & Retail jobrien@bradleyco.com LUCAS DEMEL Retail & Investment ldemel@bradleyco.com PATRICK MAGLIOZZI Industrial & Land pmagliozzi@bradleyco.com SOUTH BEND 112 W. Jefferson Blvd., Suite 300 South Bend, IN T F ELKHART 300 NIBCO Pkwy., Suite 250 Elkhart, IN T WARSAW 523 S. Buffalo St. Warsaw, IN T SCOTT FORD Executive Vice President sford@bradleyco.com RUDY YAKYM III Senior Vice President, Brokerage ryakym@bradleyco.com MICHAEL ZINK Vice President, Multi-Housing mzink@bradleyco.com JAMIE RUIZ Vice President, Tax Consulting & Business Development jruiz@bradleyco.com DAN SKODRAS, CPA Managing Director, Corporate Services & Investments dskodras@bradleyco.com GREG PINK Industrial & Office gpink@bradleyco.com JANEE CARLILE Director, Brokerage Support jcarlile@bradleyco.com JENA MAE SMOROSKE Office & Retail jsmoroske@bradleyco.com JOHN JESSEN Office & Investment jjessen@bradleyco.com JOHN MESTER Retail & Office jmester@bradleyco.com ELKHART STEVE ELLISON Industrial & Retail sellison@bradleyco.com JEREMY MCCLEMENTS Industrial jmcclements@bradleyco.com THERESE GEISE Office & Retail tgeise@bradleyco.com MATT WETZEL Land & Retail mwetzel@bradleyco.com WARSAW KIRK ZUBER Industrial & Retail kzuber@bradleyco.com GARY SALYER Retail & Land gsalyer@bradleyco.com ALEX REED Office & Retail areed@bradleyco.com 19

22 NORTHEAST INDIANA DAN DICKEY President, Northeast IN TOM DEITCHE Managing Director DENNIS CALLISON Vice President, Brokerage Services ANNA BOWMAN Office & Retail FORT WAYNE GREG CONKLING Land & Investment KIENAN O ROURKE Office & Industrial korourke@bradleyco.com MIKE DAHM Investment & Industrial mdahm@bradleyco.com PAUL REFAKIS Industrial & Retail prefakis@bradleyco.com STAN PHILLIPS Retail & Office sphillips@bradleyco.com STEVE CHEN Office & Industrial schen@bradleyco.com TYLER BINKLEY Industrial & Retail tbinkley@bradleyco.com FORT WAYNE 111 E. Ludwig Rd., Suite 101 Fort Wayne, IN T NORTHWEST INDIANA JIM NICKSIC Office & Retail jnicksic@bradleyco.com MATT REARDON Investment & Industrial mreardon@bradleyco.com MERRILLVILLE ROSS BROWN Office & Retail rbrown@bradleyco.com STEVE NICKSIC Office & Retail snicksic@bradleyco.com TONYA O ROURKE Office & Land torourke@bradleyco.com MERRILLVILLE 359 W. 84th Dr. Merrillville, IN T MICHELLE DEVINE Land & Office mdevine@bradleyco.com TODD DICKARD Office & Industrial tdickard@bradleyco.com WEST MICHIGAN KALAMAZOO JODI MILKS, CCIM Retail & Office jmilks@bradleyco.com GRAND RAPIDS KALAMAZOO 277 S. Rose St., Suite 3500 Kalamazoo, MI T SALLY TUCKER Managing Director stucker@bradleyco.com DREW NELSON Office & Retail dnelson@bradleyco.com JEFFREY TUCKER Office & Retail jtucker@bradleyco.com KEVIN VANHAITSMA Office & Investments kvanhaitsma@bradleyco.com MIKE LOPATIN Investments mlopatin@bradleyco.com MITCHELL PATZER Office & Retail mpatzer@bradleyco.com GRAND RAPIDS 250 Monroe Ave., Suite 426 Grand Rapids, MI T

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27 BEST BEST OF OF THE THE Krieg DeVault is honored Krieg to be named DeVault to is the honored 2016 to Midwest be named Real to Estate the 2016 News Midwest BEST OF Real THE Estate BEST News BEST Top Law OF Firms list THE BEST for Top Real Estate Law Firms list Transactions for Real Completed* Estate Transactions Completed* Krieg DeVault LLP 4101 Edison Lakes Parkway Suite 100 Mishawaka, Krieg DeVault Indiana LLP46545 P: Edison Lakes Parkway Suite 100 Mishawaka, Indiana P: Krieg DeVault LLP 8001 Broadway Suite 400 Krieg Merrillville, DeVault Indiana LLP P: Broadway Suite 400 Merrillville, Indiana P: OUR NORTHERN INDIANA REAL ESTATE PRACTICE OUR NORTHERN INDIANA REAL ESTATE PRACTICE Christopher D. Long PARTNER SELECTED TO THE 2017 Christopher INDIANA SUPER D. Long PARTNER LAWYERS LIST SELECTED TO THE 2017 Scott J. Fandre INDIANA SUPER PARTNER LAWYERS LIST Scott J. Fandre PARTNER Paul G. Reis PARTNER Paul G. Reis PARTNER Stephanie T. Eckerle PARTNER SELECTED TO THE 2017 Stephanie INDIANA SUPER T. Eckerle PARTNER LAWYERS RISING STARS LIST SELECTED TO THE 2017 Sarah E. Jones INDIANA SUPER ASSOCIATE LAWYERS RISING STARS LIST Sarah E. Jones ASSOCIATE Stephen A. Studer PARTNER SELECTED TO THE 2017 Stephen INDIANA SUPER A. Studer PARTNER LAWYERS LIST SELECTED TO THE 2017 INDIANA John Lloyd SUPER LAWYERS OF COUNSEL LIST John Lloyd OF COUNSEL Lori Jean PARTNER Lori Jean PARTNER J. Brian Hittinger PARTNER J. Brian Hittinger PARTNER John B. Baxter PARTNER SELECTED TO THE 2017 INDIANA John B. Baxter SUPER LAWYERS PARTNER LIST SELECTED TO THE 2017 Andrew C. Strobel INDIANA SUPER ASSOCIATE LAWYERS LIST Andrew C. Strobel ASSOCIATE 2017 Krieg DeVault LLP. Krieg DeVault LLP, Indianapolis, IN is responsible for this content. *2016 Best of Best List Top Law Firm data collected by Midwest Real Estate News for total 2015 transactions completed Krieg DeVault LLP. Krieg DeVault LLP, Indianapolis, IN is responsible for this content. *2016 Best of Best List Top Law Firm data collected by Midwest Real Estate News for total 2015 transactions completed. 25

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31 Founded in 1978, Bradley Company is a diversified real estate firm providing commercial brokerage services, commercial and multi-housing management, real estate tax consulting, maintenance services, project and facilities management, research services, corporate services and strategic planning. Bradley Company is the largest full service commercial real estate solutions provider in Indiana and West Michigan. YEARS IN EMPLOYEES $160M+ BUSINESS VALUE OF BROKERAGE TRANSACTIONS IN 2016 Brokerage Over 50 brokers in 8 offices & an average of 700 listings per year Commercial Management 10± million commercial square feet managed Multi-Housing 3,000± Conventional, Affordable, Senior, Student and Special Needs units under management Real Estate Tax Consulting Over $1 million saved in tax liabilities since 2011 Capital Markets Over $1.5 billion in experience Corporate Services Strategic partner serving corporate clients in all classes of property