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SINGLE TENANT NET LEASED INVESTMENT OPPORTUNITY | CLASS A OFFICE | TROPHY LOCATION

FOCUS BRANDS GLOBAL HEADQUARTERS


5620 GLENRIDGE DRIVE | ATLANTA, GA 30342

GUIDELINES

The offering is being distributed exclusively by Marcus & Millichap to the investment community.
The owner will engage qualified investors as offers are received for the property.

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Offers must be presented in writing and include:

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400
285
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Price

Source of capital & relevant experience

Proposed schedule of due diligence and closing

Amount of earnest money

List of contingencies including committee approvals, possible 1031 exchanges, etc.

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All interested investors are encouraged to schedule a property tour to visit the FOCUS Brands
Global Headquarters and surrounding market with Marcus & Millichap to fully appreciate its market
position, quality and strong fundamentals.

ATLANTA

20
285

285

DIRECTIONS

FROM GEORGIA 400 (SOUTHBOUND): Take Exit 4C for Hammond Drive. Turn right onto Hammond
Drive NE. Turn left at first stop light onto Glenridge Drive. FOCUS Brands Global Headquarters is
located immediately on the right
85after crossing under the I-285 overpass.

20

75Exit 4A for Glenridge Connector toward Peachtree


FROM GEORGIA 400 (NORTHBOUND): Take
Dunwoody Road. Turn left onto Glenridge Connector. Turn left onto Johnson Ferry Road. Turn right
onto Glenridge Drive. FOCUS Brands Global Headquarters is located immediately on the left.

FROM INTERSTATE 285 (WESTBOUND): Take Exit 27 to merge onto GA-400 S toward Atlanta. Take Exit 3
for Glenridge Connector. Turn left onto Glenridge Connector. Turn left onto Johnson Ferry Road. Turn right
onto Glenridge Drive. FOCUS Brands Global Headquarters is located immediately on the left.
FROM INTERSTATE 285 (EASTBOUND): Take Exit 26 for Glenridge Drive toward Glenridge Connector. Turn
right onto Glenridge Drive. Turn right to stay on Glenridge Drive. FOCUS Brands Global Headquarters is
located immediately on the right.

Exclusively listed
675

85

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Exclusively listed by:


GARY LEE
Senior Director
National Office & Industrial Properties Group
(678) 808-2757 office
(404) 578-8898
Gary.Lee@marcusmillichap.com

PAUL JOHNSON
Senior Director
National Office & Industrial Properties Group
(678) 808-2761 office
(404) 313-3200 mobile
Paul.Johnson@marcusmillichap.com

ATLANTA OFFICE
1100 Abernathy Road, N.E.
Bldg. 500, Suite 600
Atlanta, GA 30328
(678) 808-2700 (phone)

OFFICES NATIONWIDE

www.marcusmillichap.com

table of contents
EXECUTIVE SUMMARY
Property Summary & Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

TENANT PROFILE
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Investment Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FINANCIAL ANALYSIS
OVERVIEW

Lease Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Central Perimeter at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Unmatched Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Return Summary for Initial Lease Term . . . . . . . . . . . . . . . . . . . . . . 41

Close Proximity to Atlantas Most Desirable Areas . . . . . . . . . . . . . . . 8

Tenant Expansion Contracted & Optional . . . . . . . . . . . . . . . . . . . . 43

Surrounded by Executive Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . 9


Quick Access to Interstate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

MARKET ANALYSIS

Glenridge Micro-Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Low Market & Submarket Vacancy . . . . . . . . . . . . . . . . . . . . . . . . . 46

Walkable Amenities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Central Perimeter Rental Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Area Amenities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Future I-285 & GA-400 Improvements . . . . . . . . . . . . . . . . . . . . . . . 16

DEMOGRAPHIC STUDIES

Significant PCID-Led Improvements Completed . . . . . . . . . . . . . . . 18

Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Central Perimeter - Atlantas Top Submarket . . . . . . . . . . . . . . . . . . 19

Demographic Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

PROPERTY DESCRIPTION

APPENDIX

Property Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Confidentiality Agreement & Disclaimer

Creative & Flexible Modern Headquarters Space . . . . . . . . . . . . . . . 23

Non-Endorsement Notice

10 Million Full Building Renovations . . . . . . . . . . . . . . . . . . . . . . . . 24


Floor Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

summary

EXECUTIVE SUMMARY

FFO
O CUS B R A N
NDS
DS G LO B A L H EA D Q UA RTER S

EXECUTIVE SUMMARY
Marcus & Millicha p is pleased to exclusively present for
sale the FOCUS Brands Global Headquarters & Innova tion
Center loca ted a t the economic epicenter of Atlanta, GA:
Central Perimeter.
Setting a NEW STANDARD for modern office environment in Atlanta
Class A, 4-story, single-tenant office building totaling 87,650 SF
In 2015, $10 Million invested to reconstruct the building from

structural shell with state of the art systems and trappings

UNIMPEACHABLE DEMAND DRIVERS CREATE LEGACY QUALITY INVESTMENT

Location within Atlanta

PROPERTY SUMMARY
Address 5620 Glenridge Drive, Atlanta, GA 30342

Building Configuration - Ideal for single or multiple tenants


Transportation - Proximity & access to roads & transit
Demographics - Long-term, positive demographic trends toward density &
urbanization

Property Description Class A Office; Complete Renovation from Structural Shell


Year Built 2015

Tenant FOCUS Brands

Reconstruction
Total Size (SF) 87,651 SF

Term 12 Years

(Through 12/31/27)

NNN LEASED TO FOCUS BRANDS


Number of Stories 4 Floors

Recently Executed 12-year Lease


2.5% Annual Rent Escalations

* Parking 339 Spaces


Spaces & Ratio

5.4 | 1,000 SF
(on initial premises)

THE OFFERING

Full Parent Entity Lease Guaranty


No Termination or Contract Options/Rights

Price

$21,500,000
MINIMUM RETURN SUMMARY
All-Cash

Leveraged

Total Return

74.30%

133.25%

Average Cash-on-Cash

6.75%

6.91%

* 3.87 | 1,000 SF if Tenant occupies entire Terrace Level (339 spaces, 87,651 SF occupied)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A N DS G LO B A L H EA D Q UA RTER S

EXEC UT IVE SUMMARY


Investment Highlights: Purest Type of Real Estate Investment
MISSION-CRITICAL HEADQUARTERS & INNOVATION FACILITY

The building serves as the global headquarters for FOCUS Brands, the franchisor and
operator of over 5,000 restaurants in the United States, Puerto Rico and 60 foreign
countries operating under globally prominent brands Carvel, Cinnabon, Schlotzskys,
Moes Southwest Grill, Auntie Annes, McAlisters Deli and Seattles Best Coffee.
STATE-OF-THE-ART, MILLENNIAL-MINDED, CREATIVE SPACE

The projects driving force, MidCity Realty Partners has delivered yet another
architectural winner. The FOCUS Brands building looks, flows and feels like it was
designed and built from the ground up. Artful, architecturally interesting, inviting, and
efficient.
Over $4.2 Million of Landlord Funded Base Building Renovations
$5.7 Million of Landlord and Tenant Funded Tenant Improvements
Total Hard Cost Investment of $10 Million
NEW Roof, Plumbing, Electrical, Restrooms, HVAC Systems, Windows, Elevators,
Lifesafety Systems, Common Areas & Lobbies
RARE IN ATLANTA: IMMEDIATE ACCESS TO WALKABLE AMENITIES

FOCUS Brands is enveloped into the master-planned urban development known as


Glenridge Springs. As Such, the building is part of a luxury apartments mixed-use
project offering numerous walkable restaurants, retail amenities and residential options
including Windsor at Glenridge. Additionally, FOCUS Brands Global Headquarters is a
quick mile walk from Glenridge Pointe, also offering eateries and retail conveniences.
Lunch and Dinner options include popular Atlanta eateries such as Sushi Nami,
Qdoba Mexican Grill, Firehouse Subs, Blue Moon Pizza, Davinci Donuts, & Tazikis
Mediterranean Cafe.
The retail portion of the project, Glenridge Springs, recently sold to Paragon Companies
for $320 PSF while the residential portion, The Windsor at Glenridge, sold to GID for
$220,000 per Unit.

HIGHLY DESIRABLE VISIBILITY & ACCESS

Convenient location within Central Perimeters coveted Glenridge micro-market


with uncongested access to I-285 and GA-400
Prominent building signage with I-285 visibility seen by over 230,000 cars daily
Additional building signage facing Glenridge Connector and Glenridge Drive and
two street-level monument signs
Above-Market 5.4/1,000 SF parking availability includes reserved, covered and
surface options

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

location

L O C AT I O N O V E R V I E W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

L OCATIO N O VER VIE W


THE CENTRAL PERIMETER SUBMARKET IS REGARDED AS THE ECONOMIC AND
DEMOGRAPHIC EPICENTER OF METRO ATLANTA. This densely populated and highlyaffluent northern arc of the metropolitan area has emerged as one of the citys most
dynamic, infill, live-work-play, mixed-use communities.
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Central Perimeter thrives with some of the top median and average household incomes
575
400

in all of Metro Atlanta and is well above state and national averages. The submarket
also benefits from a diverse population comprising of a wide variety of ages. Within a
85
3-mile radius of FOCUS Brands Global Headquarters, the prime working age of 25 to 54
years comprises 50% of the population.

CENTRAL PERIMETER AT A GLANCE


Largest

Office Market in Metro Atlanta with 33.5 Million SF

Major

Employment Hub with highest concentration of Fortune 500 and Fortune 1000
Companies in the Southeast
985
85Access - Interstates 285, 85, 75 and GA-400
Excellent Highway
Home

to 4 MARTA Rail Stations all with direct access to Hartsfield-Jackson International


Airport

$122,800+ Average

Household Income within a 3-mile radius of FOCUS Brands Global

Headquarters
6%

Projected Population Growth over the next 5 years

Robust

High-End Retail provides for a significant amenity base for office tenants
unmatched in any other Atlanta Office submarket

CENTRAL PERIMETER
SUBMARKET

40%

of Metro Atlantas Hospital Beds less than 1/2 Mile from the Site - Northside
Hospital, Emory St. Josephs Hospital, Childrens Healthcare of Atlanta at Scottish Rite

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Low

400

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285
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Cost of Living and Affordable Home Pricing - Central Perimeter includes executive
and more moderately priced housing options. Atlantas cost of living is more than 3%
below the national average.

Central

Perimeter has been Awarded a Best Workplaces for Commuters District


Designation by the U.S. Environmental Protection Agency

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ATLANTA

20
285

285
20
85

75
675

85
6

75

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

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L OCAT IO N O VER VIE W

575

400

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

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Unmatched Location & Access


Central Perimeter benefits from its unequaled location at the northern point of I-285, Atlantas perimeter highway, and its intersection with GA-400, Atlantas primary north-south suburban access
highway.

285
400

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Its centralized location is convenient for both employees and executives commuting from almost any
point in the metropolitan area.
Central Perimeter offers direct, convenient access to some of Atlantas most prestigious in town
neighborhoods as well as the metros most attractive, desirable suburban communities including
Dunwoody, Sandy Springs, Roswell and Alpharetta.

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ATLANTA

20
285

285

HIGHLY ACCESSIBLE
5-Minute

20
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Drive South to Buckhead via GA-400

25-Minute

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Drive to Hartsfield-Jackson Atlanta International Airport via GA-400

MARTA Rail Stations Serve the submarket, second highest concentration of mass-transit
availability providing direct access to Buckhead, Midtown, Downtown and Hartsfield Jackson
International Airport

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CENTRAL PERIMETER VIEW OF BUCKHEAD & MIDTOWN ATLANTA

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

L OCATIO N O VER VIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Close Proximity to Atlanta's Most Desirable Areas


ad

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SANDY SPRINGS CITY CENTER DEVELOPMENT

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Peachtree Dunwoody Rd

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onn

Roswell Road

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Powe

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ATLANTA BRAVES DEVELOPMENT

n
Wi

PERIMETER MALL

BUCKHEAD SKYLINE

R
ox
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oad

1 Mile

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

L OCAT IO N O VER VIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Property Surrounded by Executive Housing

$969,000
Median Home Value
30327 Zip Code

$650,000
Median Home Value
30342 Zip Code

$594,000
Median Home Value
30319 Zip Code

$635,000
Median Home Value
30305 Zip Code

N
Sources: Tulia and Zillow
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

L OCATIO N O VER VIE W


Quick Access to Interstate & Transportation
FOCUS Brands Global Headquarters is located in Central Perimeters Glenridge micromarket, an enclave of commercial development located at the southwest corner of the
intersection of I-285 and GA-400.
The area is highly desirable due to its location inside the perimeter and convenient
surface road access to the high-end Buckhead and Chastain Park residential areas.
While most locations within the Central Perimeter submarket offer some level of
convenience to either I-285 or GA-400, the Glenridge micro-market is the only office
location within the submarket that offers the convenience of being within two traffic
lights to both major roadways.

HIGHLY ACCESSIBLE
Less

than 1/4 mile (two traffic lights) from the I-285/Glenridge Drive halfdiamond interchange

COMPLIMENTARY SHUTTLE TO MARTA

Less

than 1/2 mile (two traffic lights) from the GA-400/Glenridge Connector
interchange

Desirable

location at the junction of Glenridge Drive, Glenridge Connector and


Johnson Ferry Road

MARTA STATION ACCESS


FOCUS

Brands Global Headquarters located exactly 1 mile from MARTAs


Medical Center Rail Station

FOCUS

Brands offers daily shuttle service to MARTAs Medical Center station


during peak commuting hours for employees

Shuttle

is provided at no-cost to FOCUS Brands employees

MARTA

bus line available


MARTA MEDICAL CENTER STATION

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

L OCAT IO N O VE RVIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Glenridge Micro-Market

LUXURY APARTMENTS

E
IDG
NR
GLE

CO
NN
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TOR

PEACHTREE DUNWOO

DY ROAD

GLE

RIV

ED

DG
NRI

MARTA BUS & SHUTTLE ROUTE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

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FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

L OCATIO N O VER VIE W


Walkable Amenities

LUXURY APARTMENTS

LUXURY TOWNHOMES

tor

Glenridge Connec

rive

idge D

Glenr

Johnson

Ferry Ro

ad

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FOCUS Brands Global Headquarters benefits by its proximity to an abundance of amenities within walking distance. The Property is located adjacent to the Windsor at Glenridge
development, a high-end mixed-use project built in 2011. The development includes luxury apartment homes and street-level retail including Blue Moon Pizza, Firehouse Subs,
Qdoba Mexican Grill, Sushi Nami,Tazikis Mediterranean Cafe and DaVinci Donuts. FOCUS Brands Global Headquarters is also a quick mile walk from Glenridge Pointe, which
includes Moes Southwest Grill, The UPS Store, Subway, Wells Fargo and Jimmy Johns.

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

L OCAT IO N O VE RVIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Walkable Amenities

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

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L OCATIO N O VER VIE W

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FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

F I NA NC IA L A NA LYSIS
Area Amenities

LUXURY RETAIL SUPPORTED BY


HIGH-END DEMOGRAPHICS

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ri

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ter

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With over 7 million square feet of


retail space, Central Perimeter offers
the densest concentration of high-end
retail in metro Atlanta making it a major
regional shopping destination. It is
anchored by the 1.6 million square foot
super regional Perimeter Mall featuring
Dillards, Macys, Nordstrom and Von
Maur.

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ord

Dunw
oody

Rd

Ashf

Popular fine-dining and white tablecloth


options include Capitol Grille, Chequers
Seafood Grill, Eclipse di Luna, Flemings
Steakhouse, La Grotta, Maggianos,
McKendricks Steakhouse, Seasons 52
and Villa Christina.

Peach
tree D
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dy Rd

Hammond Dr

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me

ter

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es

Glenridge Connector

Central Perimeter is home to nearly 30


hotels, including some of the worlds
top flagship brands. Significant namebrand hotels in the area include Westin
Atlanta North at Perimeter, Crowne
Plaza Atlanta Perimeter at Ravinia,
Hilton Atlanta Perimeter Suites, Atlanta
Marriott Perimeter Center, Le Meridien
Hotel and Embassy Suites Perimeter
Center.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

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FO
F OCUS B R A NDS G LO B A L H EA D Q UA RTER S

L OCATIO N O VER VIE W


Rendering of Future I-285 & GA-400 Improvements

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

L OCAT IO N O VER VIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Future I-285 & GA-400 Improvements


The Georgia Department of Transportation has proposed $1.056 billion in improvements
designed to aid in reducing traffic congestion and improving safety in the area surrounding the
I-285/GA-400 interchange.
PROPOSED IMPROVEMENTS

New Flyover Ramps

New Collector-Distributor Lanes

Existing GA-400/Abernathy Road Interchange will be converted into a diverging


diamond interchange

Mt. Vernon Road Bridge over GA-400 will be replaced

New shared-use path providing a connection through the I-285/GA-400


Interchange for future planned bike and pedestrian facilities in the area

ESTIMATED COST

$1.056 Billion

CONSTRUCTION TIMELINE

Anticipated to begin in late 2016 and to be completed mid-2020

TOTAL PROJECT LENGTH

10.5 Miles
Along I-285 from west of Roswell Road in Fulton County to
east of Ashford-Dunwoody Road in DeKalb County (4.3 miles)
Along GA 400 from the Glenridge Connector to Spalding Drive
(6.2 miles)

EXPECTED RESULTS

Save the average commuter 8 hours per year


Reduce total commuter delay by over 20,000 hours a day
Reduce traffic congestion and improve safety

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

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L OCATIO N O VER VIE W

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Significant PCID-LED Improvements Completed


Central Perimeter benefits from nearly 15 years of local leadership provided by the Perimeter Community Improvement District (PCID), a self-taxing commercial district covering 29
Million SF of office space centered around the Central Perimeter area. Over the past decade, Central Perimeter has been the direct beneficiary of several landmark infrastructure
improvements that have helped to alleviate congestion and enhance accessibility:
$18 MILLION INVESTED

$40 MILLION INVESTED

2012 Ashford Dunwoody Diverging Diamond completed,

2011 Hammond Half Diamond Interchange opened the first

2007 Perimeter Center Parkway Flyover Bridge constructed

improving traffic flow at Central Perimeters primary interchange;

new access point along GA-400 since 1993, providing Central

to provide an alternative route connecting the northern and

1st diverging diamond in the state of Georgia and 7th in the Nation

Perimeter with another gateway in and out of the market

southern portions of the Central Perimeter submarket

$6 MILLION INVESTED

The effects on quality of life and the movement of people and vehicles throughout the submarket continue to be substantial and are of great benefit to area office building owners.

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$6M

od

wo

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18

D
rd

$40M

hfo

Perimeter Center Parkway


Flyover Bridge

Ashford Dunwoody
Diverging Diamond
Interchange

As

$18M

Pe
ri

Hammond
Half Diamond
Interchange

Peachtree Dunwoody Rd

Hammond Drive

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

OCAT IONN OOVER


VE RVIE
W
LLOCATIO
VIE W

FO
F O CUS B R A NDS
N DS G LO B A L H EA D Q UA RTER S

Central Perimeter Atlantas Top Submarket


Central Perimeter is Metro Atlantas largest office submarket and one of
its largest employment centers. It remains the destination of choice for
Atlantas most notable tenants and a top location for office investment.

Fortune 500 Companies Highest concentration in the


Southeast

+123,000 Employees - One of the largest concentration of


workers in the metropolitan area

35,000 Jobs by 2018 - Employment base anticipated growth

3 Nationally Acclaimed Hospitals Childrens Healthcare of


Atlanta at Scottish Rite, Northside Hospital, Emory St. Josephs
Hospital

ABERNA
THY

RO
AD

WY

NH

NT

MOU

NO
VER

PERIMETE

R CENTER

WEST

Significant Recent High-Profile Relocation and Expansion


Announcements:
Mercedes-Benz
State Farm
Cox Enterprises
Elavon
AirWatch
Newall Brands
Arby's

HAMMOND DRIVE

AS
H

D DUNWOO
OR

OAD
DY R
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

19

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

property

PROPERTY DESCRIPTION

F O CUS B R A NDS G LO B A L H EA D Q UA RTER S

PROPERTY DES C RIPTION


Property Details
PROPERTY SPECIFICATIONS
Class A Office

Number of Floors

4 Stories

1978, Renovated 2015

Typical Floor Size

20,000 SF

Total SF

87,651 SF

Construction Type

Cast in Place Concrete

Finished & Occupied SF

63,049 SF

Exterior Finishes

74,049 Minimum to
87,651 Maximum

Interior Finishes

Type
Year Built

CONSTRUCTION

Leased SF After 5/1/2018

Roof

SITE DESCRIPTION
Parking
2

Parking Ratio

Office Component Parcel #


Total Land Area
Zoning
Landscaping
Highway Access
1

17-0038-LL-269-2

Parking Surface

New single-ply thermoplastic-polyolefin


membrane; 20 year manufacturers warranty
Asphalt

MECHANICAL

8.71 Acres
MIX (Mixed-Use District)
Well-Maintained at Expense of HOA
GA-400, I-285

Tenant is not required to occupy or build out the 11,000 RSF minimum "Must Take Space" but is required
to begin paying rent on the minimum "Must Take Space" May 1, 2018 as if they occupy the space.
(See page 43 in Financial Analysis section for details)
3.87 | 1,000 SF if Tenant converts entire Terrace Level into office space (at Tenant's expense)

22

Fully Renovated Modern Space

(Genflex Roofing System) effective 1/28/2015

339 Spaces (Surface, Covered & Reserved)


5.4 | 1,000 SF

Masonry

Elevators
Fire Protection
HVAC

(2) 3,000 lbs. passenger elevators


Wet-pipe sprinkler system in building; dry-pipe
system in parking level
Trane ZX-1204 120-ton rooftop unit, Installed
3/2015

Water & Sewer

City of Atlanta

Utilities

Georgia Power

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

F OCUS B R A NDS G LO B A L H EA D Q UA RTER S

PROPERTY
ROPERT Y DES
DESCCRIPTION
RIPTION
P
PROPERTY
Creative & Flexible Modern Headquarters Space

Collaborative design with open floorplans to foster


employee interaction and innovation

Millennial-minded creative space designed to attract


and retain top employee talent

Modern lobby with seating and two-story glass atrium


entrance

Building Annex contains 6 state-of-the-art, full


mock-up test kitchens, designed for franchise sales
and product testing, a critically important component
of FOCUS Brands business model *

Building design accomodates multi-tenant leasing in


the future

Mock-up test kitchens

* Landlord has right to require Tenant remove


kitchens and restore space at end of lease

The 6,400 SF
Building Annex

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

23

PROPERTY DES C RIPTION

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

$10 Million of Recent Full Building Renovations & Capital Improvements


FU LLY- RE NOVATE D CL ASS A HEA DQ UARTERS FA C ILIT Y
5620 Glenridge Drive is a complete down to the slab building renovation/reconstruction
that included a new roof, restrooms, HVAC system, windows, as well as updated
common areas and lobbies. Renovations were completed in 2015 and included over
$5.7 million of Landlord and tenant funded tenant improvements and over $4.2 million
of landlord funded base building renovations representing a total hard cost investment
of nearly $10 million.
L A N D LOR D & TE NANT F UND ED T ENANT IMP R OV E ME NTS
($ 5 . 7 M I LLI ON | $9 0 PSF )

Complete interior headquarters buildout

Millennial-minded offices designed to attract & retain top employee talent

Brand new employee & executive offices

State-of-the-art conference & boardrooms

Employee breakrooms & collaborative areas

Additional restroom facilities

6 full mock-up test kitchen facilities for employee training & franchisee marketing
totaling 6,400 SF (Landlord has sole discretion to require Tenant remove all kitchen
facilities and restore to white box condition)

24

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A N
DS G LO B A L H EA D Q UA RTER S
NDS

P ROPERTYY DES
DESCCRIPTION
RIPTION
PROPERT

$10 Million of Recent Full Building Renovations & Capital Improvements


L AN D LOR D FU NDED BUIL DIN G IMPROVEME NTS
( $ 4. 2 MILLIO N | $ 48 PSF )

Complete demolition of floors 1-3 and terrace level

New restrooms on all floors

Completely renovated main lobby

New, two-story frameless glass entry

New entry stairs & concrete plaza

New elevator lobby on terrace level

New roof

Steel reinforcements

Breezeway updated with metal roof structure

New Trane 120-ton multi-zone roof top HVAC unit

New HVAC system & controls throughout

New sprinkler system on floors 1-3 and terrace level

Complete window replacement on all sides

Insulate and fireproof underside of 1st floor slab

All new core doors, frames and hardware

New security cameras and access control system

New terrace level patio area

New entry and exit drive lanes

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

25

PROPERTY DES
DESCCRIPTION
RIPTION
PROPERTY

B RRTER
A N DS
FO CUS B R A NDS G LO B A L HFO
EACUS
D Q UA
S

Floor Plans
FIRST FLOOR - LOBBY, OFFICE, R&D KITCHENS
FOCUS
Caf

Schlotzkys
R&D Kitchen

Shared
Support
Kitchen

Future Brand
R&D Kitchen

6,400 SF

TERRACE LEVEL - PARKING GARAGE

Multi-Purpose
Room

Carvel R&D
Kitchen

Cinnabon
R&D Kitchen

Channel
Development
R&D Kitchen

McAllisters
R&D Kitchen

Moes R&D
Kitchen

* Landlord has sole discretion to require Tenant remove all


kitchen facilities and restore to white box condition

26

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

P ROPERT Y DES C RIPTION

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Floor Plans

SECOND FLOOR - OFFICE

THIRD FLOOR - C-SUITES & OFFICE


This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

27

PROPER T Y DESC RIPTION

28

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

P ROPERT Y DES C RIPTION

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

339 PARKING SPACES | 5.4 PER 1,000 SF PARKING RATIO *

154 Spaces
144 Covered spaces exclusively
for office plus 10 spaces shared
with apartment residents

49 Spaces
Tenant pays for reserved parking
spaces on the Terrace Level of
the Property at a rate of $50 per
parking space per month

cto

ne

on

eC

dg

nri

Gle

135 Spaces
E

eD

eN
riv

g
rid

73 Spaces exclusively
for office plus 62 spaces
shared with the adjacent
retail component

Gle

* 3.85 per 1,000 SF if Tenant converts entire Terrace Level into office (at Tenants expense)
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

29

PROPERTY DES C RIPTION

30

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

P ROPERT Y DES C RIPTION


site
plan

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

SITE PLAN

285

I-285 Exit Ramp

8.71 ACRES

AIL

RET

ive

ge

Dr

id
nr

le

Glenridge Connector

108 LUXURY TOWNHOMES


$400s - $600s

Town
h

omes

Apar

tmen

ts

LUXURY APARTMENTS

HAVERTYS

ge Driv

Glenrid

John

son F

erry R

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

31

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

tenant

TENANT PROFILE

TENANT PR O FILE

F O C US B R A NDS G LO B A L H EA D Q UA RTER S

Tenant Overview
WHO DOES FOCUS BRANDS REPRESENT?
Founded in 1988 with 1,600 Locations World Wide
The Worlds Largest Hand Rolled soft pretzel franchise
Ranked #5 on Entrepreneur Magazines 2015 Top Global Franchise List
Founded in 1934 with 400 Franchised & Food Service Locations
Considered the nations first retail ice cream franchise
Leading provider of premium soft ice cream & ice cream cakes

T E N A NT OVER VI E W
FOCUS Brands, Inc. is the franchisor of over 5,000 restaurants in the United
States, Puerto Rico and 60 foreign countries under brand names such
as Carvel, Cinnabon, Auntie Annes, Schlotzskys, Moes Southwest Grill,
McAlisters Deli and Seattles Best Coffee. Focus Brands develops owned
and acquired food service brands by leveraging the core franchise business
into multiple distribution channels such as licensing, consumer products and
e-commerce. FOCUS Brands uses this business plan to grow steadily and
effectively in order to meet its company objective: be a leading developer of
global multi-channel food service brands.
* Tenant Financials are available

34

Founded in Seattle in 1985


The market leader with 1,240 locations in +55 Countries
#24 Fastest Growing Franchise in the U.S. & Canada (2015)
$1 Billion in Retail Sales
Founded in 1989 in Oxford, Mississippi
380 Locations in 24 States
Top Limited Service Sandwich Chain in 2013 (Technomic)
Fast-Growing Mexican Fast-Casual Restaurant
575 Locations Worldwide
Consistent Top 100 Franchise - #78 in 2015 (Entrepreneur)
Founded in 1971
Fast-Casual Restaurant Pioneer with Passionate Customer Following
350 Locations in 35 States and 3 Countries

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

TENA NT PR O FILE

FO CUS B R A N DS G LO B A L H EA D Q UA RTER S
WHY F OCUS BRANDS C HOS E THI S L OC ATI ON

Located in Central Perimeter - Atlantas top office submarket

High-quality Class A asset designed to fit FOCUS Brands needs

21st Century tech center catered to the innovative nature of Millennial


Employees

High Parking Ratio & Multiple Signage Opportunities - Critical branding


element

Mixed Use Environment

Access to an abundant, well qualified labor force

WHAT F OCUS BRA NDS DOES AT THE P R OP ERTY

Global Corporate Headquarters to FOCUS Brands housing executive offices


and training facilities

The Annex Building contains 6 full mock-up test kitchens & product testing
space making it the innovation center for FOCUS Brands *

Continue to develop the branding strategies of its internationally recognized


retail subsidiaries
* Landlord has sole discretion to make Tenant remove all kitchen
facilities and restore to white box condition

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

35

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

financial

F I N A N C I A L A N A LY S I S

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

F INA NC IA L A NALYSIS
LEASE ABSTRACT

FOCUS BRANDS

Lease Date

March 6, 2015

Tenant

FBIG LLC, a Georgia Limited Liability Company

Guarantor

FOCUS Brands, Inc., A Delaware Corporation

Building/Property

MidCity Plaza
5620 Glenridge Drive
Atlanta, GA 30342
Floor

Premises (initial)

Rentable Area

1st

23,891 SF

2nd

17,830 SF

3rd

21,328 SF

Total

63,049

Total After 5/1/2018

74,049 SF Minimum/87,651 Maximum

**Note: See Tenant Future Must-Take Space section below for important info
Tenants Percentage Share

100%

Commencement Date

January 1, 2016

Lease Term

12 Years

Expiration Date

December 31, 2027

Base Rental

Year

Date

Initial Premises

Must-Take Premises

Increase

Year

Date

Initial premises

Must-Take Premises

Increase

1/1/2016

$18.00

n/a

2.5%

1/1/2022

$20.87

$10.44

2.5%

1/1/2017

$18.45

n/a

2.5%

1/1/2023

$21.40

$10.70

2.5%

1/1/2024

$21.93

$10.97

2.5%

1/12018

$18.91

$9.46*

2.5%

1/1/2019

$19.38

$9.69

2.5%

10

1/1/2025

$22.48

$11.24

2.5%

1/1/2020

$19.87

$9.93

2.5%

11

1/1/2026

$23.04

$11.52

2.5%

1/1/2021

$20.37

$10.18

2.5%

12

1/1/2027

$23.62

$11.81

2.5%

*Commencing 5/1/2018
Abatement

1/1/2016-4/30/2016

Security Deposit

$139,233

Operating Expenses & Taxes

Net lease structure, Tenant shall reimburse Landlord for all Operating Expenses and Property Taxes (Additional Rental). Note: Tenants Additional Rental for the first year of the lease term is estimated
at $10.28 PSF.
The term Operating Expenses shall mean all costs reasonably paid or incurred by Landlord in the management, operation, maintenance, repair and security of the Building and the Property that would
typically and reasonably be incurred in the prudent and direct operation of a similar first class (Class A) office building in the Central Perimeter submarket of Atlanta, GA.

Management Fee Pass-Through

May be included in recoverable Operating Expenses in amount not to exceed 3% of gross annual revenues.

Extension Option

Two, 5-Year options at the prevailing net market rental rate with at least 9 and no more than 12 months notice.

Termination Option

None

38

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

F I NA NC IA L A NA LYSIS
LEASE ABSTRACT (CONT.)
Use

General office use (including a cafeteria for employees) and food/beverage handling, cooking, preparation and research and development in test kitchens within the Premises; provided, however, that
such food and beverages may not be offered for sale or distributed other than to (1) Tenants employees or (2) Tenants guests (Tenant may charge its employees a fee to consume food & beverages from
such test kitchens).
Note: Upon expiration of the lease, Landlord, at its sole option, may require Tenant to remove all furniture, fixtures, equipment and improvements located in the space occupied by the Test
Kitchens and return the space to the substantial condition existing prior to the installation.

Test Kitchens

Subject to compliance with all applicable laws, statute, code, ordinance, rules and regulations, including Tenant obtaining and maintaining any required governmental permits, approvals, and/or licenses,
Tenant shall have the right to upfit the Premises with multiple test kitchens (including related equipment, appliances, and improvements) in locations selected by Tenant. Tenant shall have the right to
use the Test Kitchens for the purpose of food product testing in a test kitchen format, subject to the permitted use of the Premises. Tenant shall be solely responsible for the proper ventilation of the Test
Kitchen, the exhaust of any odors and the maintenance and repair of any equipment or facilities related thereto.
Tenant shall be entitled to:

Parking Spaces

1.
2.
3.

154 unassigned, unreserved covered parking spaces (10 of which are shared spaces with adjacent residential component) in the parking deck on a first-come, first served basis
135 unassigned, unreserved surface parking spaces (62 of which are shared spaces with the adjacent retail component) in the surface parking area on a first-come, first-served basis
Additionally, Tenant shall take and pay for 49 reserved parking spaces and 1 handicapped space on the Terrace Level of the Building as of the Commencement Date at the then current rate
charged by Landlord for such parking spaces, which rate, as of the Lease Date is $50.00 per parking space per month.

Tenant acknowledges and agrees that use of such spaces shall be subject to the Condominium Documents, the Parking Easement, the Parking License and the rules and regulations adopted by Landlord
from time to time for the use of the parking areas.
Tenants Building Signage

Tenant, at Tenants expense, may install and maintain three exterior top of building signs with one facing I-285, one facing Glenridge Connector and one facing Glenridge Drive. Also, Tenant may have
two panel signs on bottom 15% of the monument sign.

Tenant Improvement Allowance

$45 PSF (fully funded by seller)


Tenant must lease additional space located on the Terrace Level of the Building currently being used for covered parking, under the following conditions:
1.
2.

Tenant Future Must-Take Space

3.
4.
5.
6.
7.

Tenant must lease from Landlord (but is not required to occupy) a minimum of 11,000 rentable square feet and not more than approximately 24,602 rentable square feet.
Landlord shall have no obligation to construct or install any improvements or provide any allowances for the Must-Take Space; all costs of construction of the Must-Take Space are entirely the
responsibility of the Tenant.
Tenant agrees to submit its proposed plans and construction drawings for the Must-Take Space on or before October 31, 2017.
The Must-Take Space shall be added to and become a part of the Premises on May 1, 2018 (the Must-Take Commencement Date), regardless of the completion of any improvements by Tenant.
From and after the Must-Take Commencement Date, the annual Base Rental for the Must-Take Space so leased will be at a rental rate per rentable square feet per annum equal to fifty percent
(50%) of the then-current rental rate for the Premises.
The exact location and final configuration of the Must-Take Space Shall be mutually agreed upon by Landlord and Tenant
Landlord and Tenant agree that if Tenant has failed to make a determination of the amount of rentable square feet of the Must-Take Space as evidenced by final construction drawings for the
Must-Take Space approved by Landlord and Tenant, then the rentable square feet used for purposes of determining Base Rental for the Must-Take Space as of the Must-Take Commencement
Date shall be 11,000 rentable square feet and the number of parking spaces on the Terrace Level charged to Tenant shall be twenty-six (26). Thereafter, once Landlord and Tenant have final,
approved construction drawings for the Must-Take Space, the actual rentable square feet set forth in the final, approved construction drawings shall be used and the number of parking spaces on
the Terrace Level charged to Tenant will be adjusted based on the number of parking spaces that were not taken by Tenant as part of the Must-Take Space, whether such parking spaces be
partial or whole, usable or unusable.

Note: Notice of the current sale effort has been provided to Tenant and Tenant has declined to exercise its Purchase Option.
Tenant No Longer Has Option
to Purchase Building

If Landlord elects to sell or convey the Property, Landlord shall deliver notice of such election together with the amount of the purchase price to Tenant. Tenant shall exercise its Purchase Option by
delivering written notice to Landlord, together with 2.0% of the Purchase Price to the title agent or title company to be held as earnest money (the Earnest Money), within fifteen (15) business days
after receipt of Landlords written notice. If so exercised, closing of the sale to Tenant shall be no earlier than twenty (20) days and not later than forty-five (45) days after Tenants notice. If Tenant has not
delivered its notice to Landlord within 15 business days, this Purchase Option shall terminate and be of no further force or effect.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

39

F INA NC IA L A NA LYSIS

F O CUS B R A NDS G LO B A L H EA D Q UA RTER S

Cash Flow
Building SF

87,651

Initial Premises SF
Contract Must-Take Premises SF

63,049
11,000

Purchase Price

$21,500,000

Rent Schedule

Initial Premisis

PSF
Amount

Contract Additional Premises 1, 4

PSF
Amount

Parking Revenue (Spaces @ $50/Month) 2

Minimum NOI3

1/1/2017

1/1/2018

1/1/2019

1/1/2020

1/1/2021

1/1/2022

1/1/2023

1/1/2024

1/1/2025

1/1/2026

1/1/2027

$18.45

$18.91

$19.38

$19.87

$20.37

$20.87

$21.40

$21.93

$22.48

$23.04

$23.62

$1,163,254

$1,192,335

$1,222,144

$1,252,697

$1,284,015

$1,316,115

$1,349,018

$1,382,744

$1,417,312

$1,452,745

$1,489,064

$9.23

$9.46

$9.69

$9.94

$10.19

$10.44

$10.70

$10.97

$11.24

$11.52

$11.81

$101,530

$104,060

$106,590

$109,340

$112,090

$114,840

$117,700

$120,670

$123,640

$126,720

$129,910

$29,400

$20,200

$15,600

$15,600

$15,600

$15,600

$15,600

$15,600

$15,600

$15,600

$15,600

$1,294,184

$1,316,595

$1,344,334

$1,377,637

$1,411,705

$1,446,555

$1,482,318

$1,519,014

$1,556,552

$1,595,065

$1,634,574

Footnotes:
(1) Seller will credit at closing the equivalent of $9.46 PSF on the Must-Take Space until FOCUS Brands takes space in May 2018. Landlord must pay leasing commision of $61,420.42 on May 1, 2018.
(2) Tenant is not required to occupy or build out the 11,000 RSF minimum Must-Take Space but is required to begin paying rent on the minimum Must-Take Space May 1, 2018 as if they occupy the space. Simultaneously
with Must-Take Space, Parking Income will decrease by $15,000 annually as Must-Take Space displaces parking spaces. If option for remaining Terrace Level space is exercised, parking income will cease.
(3) An increase of $120,000 in NOI (+2.5% annually) will occur if Tenant exercises remaining Terrace Level option after May 1, 2018.

(4) If Tenant leases more than 11,000 SF, Landlord will owe a leasing commission on the additional space. The total commission due (including the $61,420.42) will be calculated as follows:
1.5 x first month's rent + 6% of rent over the lease term minus $43,944.18. "Rent" shall equal the yearly NNN rate + $3.25 PSF.

40

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

F INA NC IA L A NA LYSIS
Return Summary for Initial Lease Term

MINIMUM RETURN SUMMARY (FOR INITIAL LEASE TERM) 3


All-Cash

Leveraged 2

Total Return

74.30%

133.25%

Average Cash-on-Cash

6.75%

6.91%

POTENTIAL RETURN SUMMARY (FOR INITIAL LEASE TERM) 1, 3


All-Cash

Leveraged 2

Total Return

80.08%

149.76%

Average Cash-on-Cash

7.28%

8.41%

Footnotes:
(1)

Potential Return assumes FOCUS Brands leases remainder of Terrace Level

(2)

Debt Assumptions: 65% LTV, 4.5% Interest Rate, 25 Year Amortization

(3)

Loan Balance at Lease Expiration (12/31/2027): $9,668,897.63 ($110.31 PSF)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

41

PROPER T Y DESC RIPTION

42

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FPROPERTY
PINA
ROPERT
NC IA Y
L DES
A
DES
NALYSIS
RIPTION
CCRIPTION

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

Tenant Expansion Contracted & Optional


"MUST-TAKE SPACE" TIMELINE

LEASE
COMMENCEMENT

2016

LEASE
EXPIRATION

May 1, 2018

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Tenant must pay rent and any TI on 11,000 SF of Terrace Level


Tenant has option to convert, at Tenants expense, remainder of Terrace Level to OFFICE
MAY 1, 2018

The Tenant must start paying $9.46 PSF on 11,000 SF of the


24,602 SF located on the Terrace Level currently used for parking.
This is known as the Must-Take Space. Any improvements to
the space are at the Tenant's expense.

At this time, Tenant will only pay for 26 parking spaces at $50.00
per space per month.

Landlord must pay a leasing commission of $61,420.42 on May


1, 2018

Beginning on May 1, 2018, if Tenant opts to take possession of


the remainder of the Terrace Level, Landlord must pay a real
estate commission equal to 1.5 x first months rent plus 6% of
rent over the lease term minus $43,944.18. Rent shall equal
NNN rate + $3.25 PSF

Tenant must provide notice and submit to Landlord plans to


Must-Take Space"

Tenant must lease but is not required to occupy the "MustTake" Space

OCTOBER 31, 2017

Tenant must provide Landlord notice by October 31, 2017 and


submit proposed plans for Must-Take Space
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

43

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

analysis

M A R K E T A N A LY S I S

FO
F O CUS
CUS B
BR
RA
A NDS
NDS G
G LO
LO B
BA
A LL H
H EA
EA D
DQ
Q UA
UA RTER
RTER SS

M ARK ET A NA LYSIS
Low Market & Submarket Vacancy

Atlanta MSA Class A Office market has continued to strengthen - Overall vacancy rate for
the market decreased to 12.4% at the end of 2Q 2016

Class A Office Vacancy (2Q 2016)


14.0%

High employment growth in Atlanta continues to fuel demand


2014 - 88,200 jobs created
2015 - 77,500 jobs created
2016 - 70,000 jobs forecasted

12.0%

10.0%

Central Perimeter Class A Office submarket is one of the most active and desirable
submarkets in Atlanta

8.0%

Central Perimeter submarket has the second lowest vacancy rate among the 10 major
submarkets with 10.4%

6.0%

Low vacancy rate in Central Perimeter is being fueled by contained speculative office
projects, several high-profie headquarter relocations to the submarket and increased
demand for development sites across all uses.

4.0%

46

Leasing professionals and property owners in Central Perimeter agree that paid parking
is on the horizon which will produce additional income for the FOCUS Brand building in
the future

12.4%
10.4%

7.3%

2.0%

0.0%

Atlanta MSA

Central Perimeter

Glenridge Micromarket

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

F O CUS B R A NDS G LO B A L H EA D Q UA RTER S

M ARK ET A NA LYSIS
Low Micro-Market Vacancy

92.8% Average Occupancy of 10 closest office buildings to FOCUS Brands Global Headquarters
87.5% Central Perimeter Average Office Occupancy
Glenridge
Medical Center

200
Glenridge Point

99%

100%

100
Glenridge Point

100%

Glenridge
Center

Lincoln
400

100%
One
Premier Plaza

86%

Centrum at
Glenridge
Two
Premier Plaza

100%

78%

82%

Glenridge
Highlands Two

93%
Glenridge
Highlands One

90%

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

47

FO
F OCUS
CUS BBRRAANDS
N DS GGLO
LOBBAALL HHEA
EADDQQUA
UARTER
RTERSS

M ARK ET A NA LYSIS
Re n t s i n C e n t r al P er i me ter

Trophy Class A Office rates range from $30-34 PSF

Rates trail only Buckhead & Midtown

Approximate 20% increase in Class A rental rates since 2012

Asking rents have had a consistent positive trend since 2011

$40 PSF gross rents required to support new high-rise office construction

FOCUS Brands is paying the gross equivalent of $28.50 PSF gross, more than
$11.50 PSF below new construction rents and in-line with the overall average

Given tenant demand for office space in the Central Perimeter as well as
constraints on development, Central Perimeter rents are expected to steadily
rise for an extended run

Gross "All Class A Buildings" Rents

FOCUS Brands Rent - Below Market


$40.00

$29.00

$28.17
$28.00

$36.00

$27.03

$27.00

$34.00

$11.50
PSF

$32.00

$26.00

$3.50
PSF

$30.00

$24.92

$25.00

$28.00

$32.00

$28.50

$26.00

$24.00

$24.00

$23.00

$22.37

$22.46

$22.63

$22.00

$22.00

$20.00
* FOCUS Brands
Rent

$21.00
2011

48

$40.00

$38.00

2012

2013

2014

2015

2016
(Q2)

Top Central Perimeter


Market Rents

Quoted Rental Rates


for New Construction

* Approximated Gross Rent from NNN Rate

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

M ARK
AR KET A NA LYSIS

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

49

CLASS OFFICE | VALUE-ADD INVESTMENT OPPORTUNITY

demographics

DEMOGRAPHIC STUDIES

CUSFOCUS
Brands Brands

DEM
O G R A PH
IC
Y SPRINGS,
SANDY
GA
SPRINGS,
GA

DEMOGRAPHIC
DEMOGRAPHIC
ANALYSISANALYSIS
FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

STU D IE S

Demographic
Summary
OGRAPHIC
DEMOGRAPHIC
REPORT REPORT

Geography: 5 Miles

00 Population
2000 Population
10 Population
2010 Population
14 Population
2014 Population
19 Population
2019 Population

1 Mile
7,069
10,762
12,286
12,451

1 3Mile
Miles
7,069
70,853
10,762
84,785
12,286
92,460
12,451
97,995

35Miles
Miles
196,578
70,853
220,562
84,785
237,527
92,460
250,526
97,995

5 Miles
196,578
220,562
237,527
250,526

00 Households
2000 Households
10 Households
2010 Households
14 Households
2014 Households
19 Households
2019 Households

3,368
5,178
5,906
6,029

3,368
31,521
5,178
37,715
5,906
41,129
6,029
43,721

31,521
84,717
37,715
97,146
105,029
41,129
111,895
43,721

84,717
97,146
105,029
111,895

2.07

2.07
2.21

2.21
2.25

2.25

23,138

23,138
125,855

125,855
240,639

240,639

14 Average Household
2014 Average
SizeHousehold Size

14 Daytime Population
2014 Daytime Population

POPULATION
237,527
34.6

- 20.83% increase since 2000

median age

3,024

people per square mile

HOUSEHOLDS
105,029

households - 23.97% increase since 2000

Average

size is 2.24 persons

INCOME
$118,276

average household income (2014)

00 Owner Occupied
2000 Owner
Housing
Occupied
Units Housing Units
00 Renter Occupied
2000 Renter
Housing
Occupied
Units Housing Units
00 Vacant 2000 Vacant

39.94%
44.05%
16.01%

39.94%
48.68%
44.05%
42.45%
16.01%
8.87%

48.68%
47.89%
42.45%
44.89%
8.87%
7.22%

47.89%
44.89%
7.22%

14 Owner Occupied
2014 Owner
Housing
Occupied
Units Housing Units
14 Renter Occupied
2014 Renter
Housing
Occupied
Units Housing Units
14 Vacant 2014 Vacant

33.67%
66.33%
3.46%

33.67%
51.10%
66.33%
48.90%
3.46%
3.82%

51.10%
49.74%
48.90%
50.26%
3.82%
4.45%

49.74%
50.26%
4.45%

19 Owner Occupied
2019 Owner
Housing
Occupied
Units Housing Units
19 Renter Occupied
2019 Renter
Housing
Occupied
Units Housing Units
19 Vacant 2019 Vacant

34.63%
65.37%
2.26%

34.63%
50.81%
65.37%
49.19%
2.26%
3.48%

50.81%
49.21%
49.19%
50.79%
3.48%
4.30%

49.21%
50.79%
4.30%

10.3%
8.2%
8.9%
13.6%
14.3%
11.2%
9.4%
5.9%
5.5%
4.7%
8.1%

10.3%
8.9%
8.2%
7.5%
8.9%
7.5%
13.6%
12.1%
14.3%
14.9%
11.2%
11.1%
9.4%
9.8%
5.9%
6.0%
5.5%
7.9%
4.7%
5.3%
8.1%
9.2%

8.9%
9.1%
7.5%
8.2%
7.5%
8.2%
12.1%
12.5%
14.9%
15.6%
11.1%
10.5%
9.8%
9.2%
6.0%
6.1%
7.9%
7.0%
5.3%
4.9%
9.2%
8.8%

9.1%
8.2%
8.2%
12.5%
15.6%
10.5%
9.2%
6.1%
7.0%
4.9%
8.8%

14 Median Household
2014 Median
Income
Household Income
14 Per Capita2014
Income
Per Capita Income

$64,332
$53,749

$64,332
$73,389
$53,749
$54,784

$73,389
$68,254
$54,784
$52,367

$68,254
$52,367

14 Average Household
2014 Average
Income
Household Income

$111,496

$111,496
$122,805

$122,805
$118,276

$118,276

Average HH Income

- $14,999 $ 0 - $14,999
5,000 - $24,999
$ 15,000 - $24,999
5,000 - $34,999
$ 25,000 - $34,999
5,000 - $49,999
$ 35,000 - $49,999
0,000 - $74,999
$ 50,000 - $74,999
5,000 - $99,999
$ 75,000 - $99,999
00,000 - $124,999
$100,000 - $124,999
25,000 - $149,999
$125,000 - $149,999
50,000 - $199,999
$150,000 - $199,999
00,000 - $249,999
$200,000 - $249,999
50,000 +
$250,000 +

52

HOUSING
43,727

owner occupied

40,988

renter occupied

$788

median rent

EMPLOYMENT
240,638

employees (2014)

76.83%

white collar, 23.29% blue collar

Average

commute time, 26.4 minutes (2000)

DEMOGRAPHICS
1-Mile

3-Miles

5-Miles

2014 Population Total

12,286

92,460

237,527

2019 Population Total

12,451

97,995

250,526

2014 Households

5,906

41,129

105,029

2019 Households

6,029

43,721

111,895

Median HH Income

$64,332

$73,389

$68,254

Per Capita HH Income

$53,749

$54,784

$52,367

$111,496

$122,805

$118,276

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

FO CUS B R A NDS G LO B A L H EA D Q UA RTER S

DEM O G R A PH IC STU D IE S
Demographic Maps

DENSITY
Willow POPULATION
Trail

Demographic data 2012 by Experian.

EMPLOYMENT DENSITY
DEMOGRAPHIC ANALYSIS

ORCORSS, GA

AVERAGE HOUSEHOLD INCOME

Demographic data 2012 by Experian.

Demographic data 2012 by Experian.

This information has been secured from sources we believe to be reliable, but we make no
the accuracy of the information. References to square footage or age are approximate. Bu
inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate
Millichap. All rights reserved.

Number of people living in a given area per square mile.

The number of people employed in a given area per square mile.

AVERAGE HOUSEHOLD INCOME

TRAFFIC COUNTS
14,780

s information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
curacies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus &
lichap. All rights reserved.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus &
Millichap. All rights reserved.

193,990

214,180

118,280

Demographic data 2012 by Experian.

23,850

18,730

Average income of all the people 15 years and older occupying a


single housing unit.

Two-way, average daily traffic volumes

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. 2015 Marcus & Millichap. All rights reserved.

53

CONFIDENTIALITY AND DISCLAIMER


The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed
only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the
written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to
prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein
is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no
warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance
of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances,
PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the
financial condition or business prospects of any tenant, or any tenants plans or intentions to continue its occupancy of the subject
property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however,
Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap
conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set
forth herein.

NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing
package. The presence of any corporations logo or name is not intended to indicate or imply affiliation with, or sponsorship or
endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial
listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

exclusively listed
Exclusively listed by:

GARY LEE
Senior Director
National Office & Industrial Properties Group
(678) 808-2757 office
(404) 578-8898
Gary.Lee@marcusmillichap.com

PAUL JOHNSON
Senior Director
National Office & Industrial Properties Group
(678) 808-2761 office
(404) 313-3200 mobile
Paul.Johnson@marcusmillichap.com

ATLANTA OFFICE
1100 Abernathy Road, N.E.
Bldg. 500, Suite 600
Atlanta, GA 30328
(678) 808-2700 (phone)

OFFICES NATIONWIDE

www.marcusmillichap.com