2600 TOWER 2600 N CENTRAL AVENUE VALUE-ADD OFFICE BUILDING LOCATED IN THE HEART OF CENTRAL PHOENIX

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1 2600 TOWER 2600 N CENTRAL AVENUE VALUE-ADD OFFICE BUILDING LOCATED IN THE HEART OF CENTRAL PHOENIX

2 2 COLLIERS INTERNATIONAL

2600 Tower is an ideal investment opportunity to participate in the rebirth of Midtown.

±323,607 square feet within a 20-story office building in Phoenix, Arizona.

Key tenants include CMOC Mining USA, Trapp Technologies and five federal agencies, which include the Western Regional office of the Bureau of Indian Affairs and Drug Enforcement Agency.

Its unique building infrastructure and systems, which are not normally found in a Class A high-rise, could support an additional ±26,843 square feet of technology-oriented uses.

3 2600 Tower is an ideal investment opportunity to participate in the rebirth of Midtown. THE OFFERING Colliers International, as exclusive advisor, is pleased to present the opportunity to acquire 2600 Tower, located at 2600 N Central Avenue (the Property ), consisting of ±323,607 square feet within a 20-story office building in Phoenix, Arizona. This office building offers Class A offices as well as unique technologysuitable space, all on ±16,000 square foot floorplates. Key tenants include CMOC Mining USA, Trapp Technologies and five federal agencies, which include the Western Regional office of the Bureau of Indian Affairs and Drug Enforcement Agency Tower is also home to 10 datacenters, totaling ±27,455 square feet. Its unique building infrastructure and systems, which are not normally found in a Class A high-rise, could support an additional ±26,843 square feet of technology-oriented uses. Some of these features include redundant and heavy electricity supply, redundant and ample cooling systems, and 4 MW in two back-up diesel generators. Located in the heart of Midtown, 2600 Tower is in an urbanized setting adjacent to other offices, luxury residential condominiums, historic neighborhoods, numerous retail and restaurant amenities, as well as arts and cultural facilities. The building, located just north of downtown Phoenix, is also a short walk to two light rail stations at Thomas Road and Encanto Boulevard N CENTRAL AVENUE, PHOENIX, AZ 3

PROPERTY SUMMARY PROPERTY ADDRESS: 2600 N Central Ave Phoenix, AZ 85004 YEAR BUILT: 1982 IN PLACE ESTIMATED NOI: $3,181,862 BUILDING AREA: ±323,607 SF PARKING COUNT: ±832 spaces PERCENT LEASED: 78%

4 PROPERTY SUMMARY PROPERTY ADDRESS: 2600 N Central Ave Phoenix, AZ YEAR BUILT: 1982 IN PLACE ESTIMATED NOI: $3,181,862 BUILDING AREA: ±323,607 SF PARKING COUNT: ±832 spaces PERCENT LEASED: 78% SITE AREA: ±2.72 Acres ZONING: Office Building: C-2 HR (intermediate commercial), City of Phoenix Garage: P-2 (parking designation), City of Phoenix INVESTMENT HIGHLIGHTS Secure a Significant Value-Add Position on Central Avenue with Stable Occupancy The offering is 78% leased with lease expirations that are spread out over more than 10 years. Utilizing 35% of the tower, federal agencies began occupancy in There are now five federal agencies at 2600 Tower, along with 10 datacenter uses and more than a dozen other companies, which suite sizes range from less than 1,000 square feet to multiple full-floors. This allows investors the certainty of diverse and stable occupancy while executing on value-creation. An Outstanding Value Proposition: Below Replacement Cost Pricing in a Rising Rental Rate Market If constructed today to the same quality of materials, 2600 Tower costs would exceed $300 per square foot. This is a fraction of where the building will be purchased. We have seen a sharp jump in rental rates during the first half of 2018 in the Midtown submarket as new innovative, tech-oriented businesses have discovered the benefits of Midtown. The dramatically undervalued Midtown submarket is benefitting as the affordable alternative that is also urban, hip, and innovative. This is an ideal time to acquire 2600 Tower, and participate in this submarket s recovery. 4 COLLIERS INTERNATIONAL

PROPERTY HIGHLIGHTS Offering includes Class A Building Features 2600 Tower was designed and constructed to the highest quality, Class A standards and provides tenants with a first-class business

The chevron-shaped building with ±16,000 square foot floorplates provides dimensions and clear spans that allow convenient space configurations.

5 PROPERTY HIGHLIGHTS Offering includes Class A Building Features 2600 Tower was designed and constructed to the highest quality, Class A standards and provides tenants with a first-class business environment including a distinctive main lobby with numerous upgraded building materials such as Italian marble, travertine, granite, copper trim, and wood panels. The chevron-shaped building with ±16,000 square foot floorplates provides dimensions and clear spans that allow convenient space configurations. Even the smallest tenants enjoy tenant entrances that are close to the elevator lobbies. Unique, Technology-Oriented Space The building also caters to demands of technology-oriented tenants, whether for wet and dry lab space, research & development or datacenters, with its numerous building systems upgrades. These include a chilled-water loop cooling system with 1,660 tons of cooling capacity through six separate chillers that provides for redundancy and maximum flexibility when space planning to any level of density; an ample 12 megawatts of power supply coming from three separate substations that meets the technical requirements of the most discerning tech-oriented business, a separate freight elevator, floor by floor building venting via the building fin columns, and two, twomegawatts of back-up generator power N CENTRAL AVENUE, PHOENIX, AZ 5

PROPERTY HIGHLIGHTS (continued) Major Building Systems have been Modernized, Replaced or Refurbished All of the major building systems that have needed to be modernized, replaced, or refurbished have

6 PROPERTY HIGHLIGHTS (continued) Major Building Systems have been Modernized, Replaced or Refurbished All of the major building systems that have needed to be modernized, replaced, or refurbished have been addressed at a cost of more than $3.9 million. This includes newly modernized building elevators, replacement of four 250-ton fluid cooling towers, refurbishment of two 330-ton fluid cooling towers, installing 80 new water-sourced heat pump units so that all 360 original units have now been replaced, replacement of the building swing stage used for exterior building maintenance and implementing a state-of-the-art chemical free water treatment system. 7TH ST Comfortable and Convenient Urbanized Campus Environment 2600 Tower is in the heart of Midtown. This is an urbanized site design that is compact, while also convenient and inviting. Surrounded by four streets, it provides for comfortable vehicular and pedestrian access. Virginia Avenue provides safe signalcontrolled full access to Central Avenue, while 1st Avenue provide easy access to Thomas Road - 1/4 mile to the north. These various routes are especially beneficial during the rush hours. The building s loading dock is separated from entrances used by building occupants and guests, and is adjacent to the freight elevator and middle stairs, so as to allow a separation of deliveries and movement of chemicals or federal agent protocol from building occupants and their guests. All parking is via the six-level garage that is just west of the building, steps away from the building entrance. On site amenities include a deli, bank branch, and on site storage. LOCATION HIGHLIGHTS Bullseye Location Located just north of downtown Phoenix, 2600 Tower offers amazing connectivity to the rest of the metropolitan area through numerous transportation systems. This includes the Metro light rail system it is a short distance between two Valley Metro light rail stations at Thomas Road and Encanto Boulevard. It is also adjacent to a Valley Metro bus stop connecting Rapid Transit bus lines; and the I-17, I-10 and SR51 freeway systems are short distances away. More than 3.4 million people can reach this location within a 40-minute commute (i.e. 82% of the population of Maricopa County). This Midtown location also offers many amenities including world renown arts and cultural venues and a plethora of dining options. Renewed Interest in Urban Infill Midtown has benefited greatly from the urban infill movement. Nearly 2,000 multifamily units are currently under construction or planned for the immediate area. This new multifamily activity combined with new restaurants and other amenities, as well as convenient light rail access, have helped rebrand the area into a corridor for startups, technology companies and unique local businesses. 6 COLLIERS INTERNATIONAL

Downtown Campus Phoenix Convention Center Phoenix Center for the Arts Phoenix City Hall Burton Barr Central Library 3R D ST Phoenix Art Museum

Hance Park E CENTRAL AV Phoenix Theatre 7T H Arizona Opera MCDOWELL RD 3R D Flinn Foundation 5T AV E AVE HA VE Heard Museum Willo, Roosevelt and

Affordable Rental Rates Compared to its neighboring submarkets, Midtown offers an amazing value to companies.

2600 Tower can promote its Class A facilities, along with its proximity to downtown Phoenix and all of its amenities at an average rent that is

Strengthening Occupancy Filling Existing Inventory The Midtown Phoenix market is going through a rebirth, attracting a wide range of employers

7 Downtown Campus Phoenix Convention Center Phoenix Center for the Arts Phoenix City Hall Burton Barr Central Library 3R D ST Phoenix Art Museum Margaret T. Hance Park E CENTRAL AV Phoenix Theatre 7T H Arizona Opera MCDOWELL RD 3R D Flinn Foundation 5T AV E AVE HA VE Heard Museum Willo, Roosevelt and other Historic Neighborhoods TOW E R 1S T 2600 AVE VIRGINIA AVE MARKET HIGHLIGHTS Arts District is Bridging Downtown with Midtown at more Affordable Rental Rates Compared to its neighboring submarkets, Midtown offers an amazing value to companies. Downtown Phoenix and Camelback Corridor average asking rents are 33% and 37% higher than those of Midtown Tower can promote its Class A facilities, along with its proximity to downtown Phoenix and all of its amenities at an average rent that is dramatically less. This truly transit-oriented destination has become an infill hot spot for entrepreneurial businesses. Strengthening Occupancy Filling Existing Inventory The Midtown Phoenix market is going through a rebirth, attracting a wide range of employers and new residents as its live, work, play offering continues to expand. Vacancy rates have declined to 20.5% by the first half 2018 a 120 basis point improvement from year end 2017 when vacancy stood at 21.7%; and with continued demand and no projects under construction or planned for this area, Midtown s vacancy will tighten further N CE N T RAL AVE N UE, PHO E N I X, A Z 7

TECH-ORIENTED SPACE RECAP 2600 Tower is uniquely positioned in the Midtown class A, high-rise office building marketplace, in that it offers outstanding, class A office space, while also offering

Historically datacenters have benefitted from this tech-oriented space, but it could also be used for other mission-critical computer functions; as well as research & development, clean rooms, wet

8 TECH-ORIENTED SPACE RECAP 2600 Tower is uniquely positioned in the Midtown class A, high-rise office building marketplace, in that it offers outstanding, class A office space, while also offering tech-oriented space. Historically datacenters have benefitted from this tech-oriented space, but it could also be used for other mission-critical computer functions; as well as research & development, clean rooms, wet labs, and other critical-environment functions that require enhanced infrastructure. The reason 2600 Tower is able to accommodate this type of usage is because it has the requisite enhanced infrastructure needed. The Property Profile section in this offering memorandum also describes some of these systems, in conjunction with the overall building configuration. So as to clearly identify the unique equipment that is incorporated into 2600 Tower, the components that are available to serve this type of usage is reiterated here. Electrical Service Three separate electrical substations bring service to 2600 Tower. This is highly unusual to even have two, let alone three substations serving a class A high rise office building. The services total 12,000 amp, 277/480 volt, 3-Phase in increments of 7,000 amps, 3,000 amps, and 2,000 amps. This provides substantially more power than a typical high-rise office building both in terms of supply quantity, as well as redundancy of the sources of electricity. The current owners have never lost power during the entire history of their ownership, which has spanned 15 years. Redundant HVAC System Building cooling is provided by water source heat pump HVAC utilizing six fluid cooling towers that are formatted in two sets: (i) two 330-ton BAC units; and (ii) four 250-ton EVAPCO units. These cooling towers cool condenser water to an 80 degree set point, and utilize two fullyredundant building loops that can be merged together or operated separately at roof level. Redundant Water Pump System Condenser water is delivered by way of two sets of fully-redundant pumps two 100-hp pumps as well as two 50-hp back-up tech pumps, all of which are on VFD drives. This provides full redundancy in an emergency, or to provide routine maintenance without losing service to the building. It also provides extraordinary flexibility and convenience for customizing comfortable temperatures in all types of space configurations. Back-Up Generator and Emergency Power Two Caterpillar 2,000 kw diesel-fueled generators located on the south side of the lower level are dedicated to support the space that is available for technology-oriented uses. There is room to install a third generator of equal size in this area. Each generator has a 2,000 gallon above-ground belly tank; and there is also an auxiliary 8,000 8 COLLIERS INTERNATIONAL

9 gallon tank for additional fuel supply. In addition to these generators, Trapp Technologies and Integra have installed dedicated generators exclusively tied into their datacenters, and there is plenty of room on site for additional generators for other tenants exclusive uses. Fiber Service A separate telecommunications room in the lower level contains the main incoming services for the building. Seven providers deliver fiber including AT&T, Zayo (metro), Zayo (dark), TW Telecom, Verizon, CenturyLink, Integra, and Cox Communication. Wall Venting System The exterior wall system includes thin concrete fin columns that project 21 inches out from the glass panels. In addition to the cosmetic and shading benefits of these concrete fin columns, they also function to support tech-oriented uses. These hollow columns are used as vertical supply chases for the entire height of the building, supporting fresh air intake as well as exhaust vents that are needed for any type of tech-space configuration. They also are used to run communications and electrical wiring. Separate Freight Delivery and Freight Elevator There is a loading dock area accessible from Cambridge Avenue. A 4,500 pound freight elevator serves the building that is separately located adjacent to the loading dock in the vicinity of the building core area. By having a separate freight elevator, tech-oriented tenants are able to avoid sharing rides with the general public, particularly important if they are carrying bulky freight, or chemicals where the protocol is to keep separated from the general public. Other Features for Tech-Oriented Uses Floor and Frame: Each floor and the roof is of cast-in-place eight-inch thick post-tension concrete slabs that span between concrete beams allowing it to carry heavy floor loads. The superstructure is cast-in-place concreteframed over one level of basement. Chemical-Free Water Treatment System: The state-of-the art water treatment system greatly improves the functioning and reliability of the mechanical equipment. Security Access System: A proximity card access system, video surveillance cameras and a 24 hour a day / 7 day per week on-site security guard patrol secure the property. Small Datacenter Space and On-Site Storage: In addition to the larger technology-equipped spaces, tenants also have access to facilities on the lower level that can be equipped for smaller datacenters and dedicated server rooms. The building also offers on-site storage N CENTRAL AVENUE, PHOENIX, AZ 9

10 CAPITAL IMPROVEMENTS SUMMARY 2600 Tower was originally developed as a class A corporate headquarters high rise building and was designed and appointed with the highest quality of improvements and infrastructure. While these materials were built to last, they do require refurbishment and replacement over time. All of the major building systems that have needed to be modernized, replaced, or refurbished have been addressed over recent years, at a cost of more than $3.9 million. Some of the most significant projects include the following. All of the major building systems that have needed to be modernized, replaced, or refurbished have been addressed over recent years, at a cost of more than $3.9 million. 10 COLLIERS INTERNATIONAL

Newly modernized building elevators All of the building s six 3,000-pound passenger elevators and a 4,500-pound freight elevator were fully modernized in 2018 by Thyssen Krupp Elevators to

11 Newly modernized building elevators All of the building s six 3,000-pound passenger elevators and a 4,500-pound freight elevator were fully modernized in 2018 by Thyssen Krupp Elevators to state-of-the-art digital controls, gearless motors and remodeled cabs at a total cost of $1.9 million. This modernization delivers innovative and advanced technology to provide a smooth and quiet ride while improving reliability and energy efficiency. HVAC System The four 250-ton Evapco fluid cooling towers were installed in 2013 at a cost of $700,000. The two 330-ton fluid cooling towers were also recently refurbished at a cost of $44,000. Heat-Pump Units Of the 360 water-sourced heat pump units, 80 original units were recently replaced, along with energy management system upgrades at a cost of $467,000. All 360 original units have now been replaced. Chemical-Free Water Treatment System Water for the cooling towers is treated using six dual-anode UET reactors, a state-of-the art water treatment system that removes the scaling from the water without the use of chemicals prior to entering the mechanical equipment. The chemical free water treatment system was installed in 2016 at a cost of $183,000. Fire Prevention The building is fully-equipped with fire-sprinklers. The fire panel, fire pump controller and other fire life safety equipment were recently replaced or substantially refurbished totaling $292,000. All the data center tenants have their own dry fire suppression systems. Window Washing Equipment and Bird Control In 2014, the swing-stage used for exterior building maintenance such as window washing was replaced and additional bird control devices were installed on the roof at a combined cost of $183,000. Exterior Walls Resealed The aluminium-framed curtain wall system consists of exposed concrete fin columns, concrete wall sections and glass panels. The entire exterior wall system was resealed recently at a cost of $74,000. Upper Floor Elevator Lobby, Hallways and Restrooms Along with the remodeled elevator cabs, an updated design criteria has been established for the upper floor common areas. The 7th floor is the first floor to be renovated to the specifications as shown on the adjacent rendering. The cost for this floor s common area remodel is $130,000. Plumbing and Sewer The cast iron vertical sewer pipes from floors 2 through 18 were replaced at a cost of $25, N CENTRAL AVENUE, PHOENIX, AZ 11

2600 TOWER EXCLUSIVE ADVISORS: MINDY KORTH Executive Vice President DIRECT +1 602 222 5005 mindy.korth@colliers.

12 2600 TOWER EXCLUSIVE ADVISORS: MINDY KORTH Executive Vice President DIRECT KIRK KULLER Vice President DIRECT DEBT & EQUITY ADVISOR: JOHN SMECK Senior Vice President DIRECT

Washington Square FPO. 111 Washington Square > Office Space FOR LEASE > OFFICE SPACE 111 WASHINGTON AVENUE, MINNEAPOLIS, MN 55401

Washington Square FPO. 111 Washington Square > Office Space FOR LEASE > OFFICE SPACE 111 WASHINGTON AVENUE, MINNEAPOLIS, MN 55401 FOR LEASE > OFFICE SPACE Washington Square 111 WASHINGTON AVENUE, MINNEAPOLIS, MN 55401 FPO 111 Washington Square > Office Space HENNEPIN AVE PARKING RAMP > Built in 1987, 111 Washington is part of a three