Iconic, Class A Office Complex CLAYTON, MO EXECUTIVE SUMMARY. Holliday GP Corp. ( HFF ), a Missouri licensed real estate broker

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1 Iconic, Class A Office Complex CLAYTON, MO EXECUTIVE SUMMARY Holliday GP Corp. ( HFF ), a Missouri licensed real estate broker

2 Holliday Fenoglio Fowler, L.P. ( HFF ) has been retained on an exclusive basis to arrange the sale of Pierre Laclede Center (the Property ) in the CBD of Clayton, the undisputed preferred choice of office tenants in the St. Louis metropolitan area. The Property is comprised of two stabilized, Class-A, highrise towers totaling 580,68 RSF. Pierre Laclede Center has been institutionally owned and maintained since 00 with extensive renovations and upgrades to ensure the Property s Class A prominence in the market. Pierre Laclede Center is poised to capture significant rent growth. As of 08, Class A office space in Clayton has a vacancy rate of.%, the lowest vacancy rate among St. Louis submarkets. Pierre Laclede Center presents a unique opportunity for investors to acquire a core office asset with substantial upside in a highly sought after, transit oriented, infill location. LOCATED IN THE HEART OF CLAYTON, PIERRE LACLEDE CENTER IS AN ESTABLISHED BUSINESS DESTINATION THAT COMBINES DISTINCTIVE FEATURES, EXTENSIVE AMENITIES AND AN ATTRACTIVE LOCATION

3 LATHROP & GAGE Key Property Statistics Stories Building I 6 (770 Forsyth Blvd) Building II (77 Forsyth Blvd) Rentable Sq. Ft. (RSF) Building I 8,75 Building II 6,99 Total RSF 580,68 Year Built Building I 96 Building II 970 Renovated Building I Building II % Leased Building I 96.75% Building II 9.95% Total 95.00% Parking,0 spaces Average Floorplate Building I 5,59 RSF Building II 5,90 RSF Ceiling Height (Slab-to-Slab) '8" Finished Ceiling Height 8'6" Walkscore 9 Tenancy by Industry Agriculture % Real Estate 6% Personal Services 0% Business Services % Civic/Government % Engineering/Technology % Financial Services % Legal 9% Healthcare 5% WALK SCORE

4 LATHROP & GAGE

5 EXECUTIVE SUMMARY Name Floor Summary of Major Tenants Current RSF Pierre Laclede I % of Total RSF BY Gross Rent Escalations Expires W.A.L.E. (Yrs) () Saint Louis Club - 6 7,756 8.% $9.00 $0.50 //0. Lathrop & Gage - 5 0,58 5.% $8.9 $0.50 7//0.7 Capes, Sokol, Goodman & Sarachan &,9.0% $9.00 $0.50 //00. Danna McKitrick, P.C. 8-9,07.0% $8.00 $0.50 //09. The St. Louis Trust Company 5,59.6% $7.50 $0.50 /8/00. Harbour Group () 6,.0% $8.50 $0.50 7//0 5.7 Centene Corporation 7,56.% $8.00 $0.50 /9/00. Name Floor Pierre Laclede II Current RSF % of Total RSF BY Gross Rent Escalations Expires W.A.L.E. (Yrs) () Centene Corporation () 7-9 & -5 59, 0.% $7.50 $0.50 7//0.7 Morgan Stanley 0-0,80 5.% $7.00 $0.50 8// Central Bank of St. Louis 6,07.5% $5.00 $0.50 0// Dowd Bennett 8-9 5,6.% $7.50 $0.50 //0. Mueller Prost () & 6 9,9.% $7.7 $0.50 5//0.6 RehabCare Group 7-8 5,599.7% $8.5 $0.50 9/0/0.9 Harbour Group 5,90.6% $9.50 $0.50 7// PLC I & II Weighted Average / Total 50, %.6 Yrs () W.A.L.E. assumes an analysis start date of //08. () Harbour Group s expansion (,8 RSF) on the 6th floor of PLC I has a lease expiration on /0/0. () Centene Corporation (Suite 00) is $0.50 per RSF more expensive than other Centene units. Suite 00 has a lease expiration date on //0. () Mueller Prost rent/psf listed above is a weighted average between two units with base year rents of $7.50 and $8.50 per RSF. MORGAN STANLEY 5

6 Institutionally Renovated Pierre Laclede Center has been institutionally owned and maintained since February 00. As a result, the Property has consistently been on the cutting edge of the market. Since 00, over $9 million has been spent renovating and upgrading Pierre Laclede Center. The adjacent table describes the specific upgrades to the building systems such as garage, HVAC and lighting upgrades, as well as lobby, façade and restroom upgrades. These renovations have restored this historic project to its prominence among the elite St. Louis business addresses. Building Renovations PLC PLC II Total Garage $6,69,68 $6,9,8 $,,8 Mechanical/HVAC $,6,55 $5,8 $,76,9 Exterior Façade $58,67 $765,8 $,,00 Life Safety $59,70 $5,50 $88,070 Roof $7,0 $7,0 $56,806 Lobby Renovations $6,97 $8,07 $5,05 Unrivaled Amenity Base Restroom Renovations $7,7 $08,06 $79,6 Pierre Laclede Center offers its tenants an Electrical $8,87 $,56 $05,99 extensive amenity package commensurate with its position as a premier office property. From the beautifully landscaped plaza and private veranda to technologically advanced conference and meeting facilities, the Property leaves no box unchecked. The revitalized plaza and veranda provide outdoor patio areas for tenants to enjoy meals and meet with clients. In 05, the PLC II conference center was modernized Screen Wall Conference Center/Amenities Corridor Renovations Plumbing TOTAL $0 $0 $0 $,98 $9,68,9 $70,6 $0,89 $,50 $58,088 $9,885,9 $70,6 $0,89 $,50 $9,86 $9,566,60 with upgraded furniture, carpeting and wall covering. Furthermore, the recently upgraded fitness center and café ensure that every tenant s needs are met on premises. Pierre Laclede Center s robust amenity list is rounded off with on-site concierge, car washing and banking services, as well as a deli, barber shop and shoe shine stall. As evidenced by the map on the following page, tenants and visitors are also within walking distance of the burgeoning restaurant and retail scene in Clayton. Devoted Tenancy The longevity of the tenancy at Pierre Laclede Center underscores the quality and desirability of the location. One of the Property s anchor tenants, The Saint Louis Club, has been at the Property since it first opened in 96, and Central Bank of St. Louis has continued to stay at the Property since it first moved there in 970. On average, the anchor tenants have been in occupancy for more than 8 years. These tenants, among others, have helped Pierre Laclede Center establish itself in the market as the definitive address for premier businesses. FITNESS CENTER 6

7 EXECUTIVE SUMMARY Clayton Residential Development Clayton continues to develop as an urban, /7 node in the St. Louis metropolitan area. Three residential projects were delivered in and there are currently two projects proposed or under construction. Clayton Residential Developments - Recently Delivered Development # of Units Location The Barton Maryland Ave Ceylon 0 5 N Central Ave Two Twelve Clayton 50 S Meramec Ave Avenue Shaw Park 9 WALK SCORE Clayton Residential Developments - Proposed or Under Construction Developer # of Units Location Montgomery Development 6 S Central Ave 5 Flaherty & Collins Properties Forsyth Blvd RESTAURANTS Star Burgers 80 Chophouse Almonds Restaurant Barcelona Tapas Restaurant Blue Elephant Royal Thai 80 Fish Cantina Laredo Cafe Napoli Chipotle City House Coffee & Creperie The Crossing Crushed Red First Watch House of Wong John P. Fields Kaldi s Coffee Brentwood Blvd. 5 7 Molly Darcy s 8 Oceano 9 Panera Bread 0 Pastaria by Niche The Patio Cafe Pickleman s Posh Nosh Deli Potbelly Sandwich Shop 5 Ruth s Chris Steak House 6 Starbucks 7 Whitebox Eatery 8 Subway 9 Tani Sushi Bistro 0 Uptown Cafe Herbie's Dominic's Trattoria 5 0 Meramec Avenue Mera 7 METROLINK Clayton Station 5 Central Avenue Clayton Local Amenities 9 Ce Sardella Parigi 5 The Capital Grille HOTELS 5 6 Maryland Avenue Crowne Plaza Hotel The Ritz-Carlton Seven Gables Inn Sheraton Clayton Plaza Hotel 5 Hampton Inn and Suites 9 Bemiston Avenue Bemist Forsyth Blvd Carondelet Avenue Bonhomme Avenue Shaw Park Drive Lind 7 8 SERVICES/RETAIL International Diamond Jon s Pipe Shop Lusso Metro Personal Training Northern Trust Bank 5 Peoples National Bank 6 Red Fitness Lounge Hanley Road 5 Hanle PLC II PLC I 0 Minutes to Fitness Bank of America Clayton Yoga Elleard Heffern Fine Jewelers Ethos Aveda Salon & Spa The Wine Merchant First National Bank GolfTEC Heartland Bank Forest Park Parkway Pulaski Bank 8 U.S. Bank 9 Reliance Bank 0 Wellbridge Athletic Club & Spa RESIDENTIAL DEVELOPMENTS 5 The Barton Ceylon Two Twelve Clayton Montgomery Development Flaherty & Collins Properties Ritz Carlton Drive METROLINK Forsyth Station ive 7

8 Strong Ties to St. Louis History Pierre Laclede Center boasts a unique and impressive roster of large and devoted tenants that have made important historical and cultural contributions to the region. The Saint Louis Club, a members-only dining and social club, has been a tenant at the Property since its founding in 96, and is recognized as one of the premier business clubs in St. Louis. The beautifully decorated rooms accommodate business and social events for groups from two to two hundred, as well as offering creative Club sponsored events. In 07, the Saint Louis Club completed a $.8 million renovation that added 9,500 square feet of cafe space to appeal to emerging entrepreneurs and established members alike. The Club is renowned for serving consistently high quality food in a comfortable atmosphere, accompanied by fine service. Not only is it a Top 5% city club nationally and a fixture in St. Louis cultural history, but it attracts world-class chefs such as Pierre Chambrin, former Executive Chef to the White House and 008 Chef of the Year as voted by the Master Chefs of France. Other notable tenants of Pierre Laclede Center include the law firm of Lathrop & Gage and Central Bank of St. Louis. Lathrop & Gage is considered the oldest continuously operating law firm west of the Mississippi River. The firm was founded in Kansas City more than 5 years ago, and has some of the best lawyers in the country. Central Bank of St. Louis has been a tenant at the Property for more than 5 years, and a fixture in St. Louis for more than a century. Their move to Pierre Laclede Center in 970 represented a watershed moment for the company by allowing it to expand its capabilities without sacrificing its stature and commitment to the local economy. Hub of St. Louis ST. LOUIS IS RATED A FORBES TOP 00 PLACE FOR BUSINESS AND CAREERS 8

9 EXECUTIVE SUMMARY CLAYTON IS THE HUB OF THE ST. LOUIS METROPOLITAN AREA AND THE SEAT OF ST. LOUIS COUNTY Uniquely Urban Location Pierre Laclede Center is positioned at the center of Clayton, recognized throughout the St. Louis region for its outstanding quality of life. The city has over million square feet of retail spread across five shopping districts, as well as a vibrant social and nightlife scene. Within two and one-half square miles, Clayton blends a bustling downtown with quiet, secure residential neighborhoods. At every corner in the busy district there are places to eat, drink, shop and stay. The architecture of central Clayton reflects its economic activity and eras of growth. This urban landscape has earned Pierre Laclede Center a walk score of 9. Pierre Laclede Center is considered a walker s paradise, given its central location to retail and services, along with being only minutes away from two MetroLink stations. PLC II METROLINK Clayton Station PNC Center PLC I Sheraton Clayton 0 South Hanley Carondelet Avenue Centene Plaza Maryland Avenue Hanley Road Forest Park Parkway The Plaza in Clayton (Residential) The Plaza in Clayton (Office) Forsyth Blvd 9 Ritz Carlton WALK SCORE Regional Market Revitalization St. Louis revitalization can be attributed to its unique advantage of having both a highly educated workforce and a relatively low cost of conducting business, as well as a diverse range of industries. This favorable combination has led several strong industry clusters to gravitate towards the region, such as life sciences, financial services, IT, and advanced manufacturing. Most recently, St. Louis was ranked in the Forbes Top 00 Places for Business and Careers. Strong & Consistent Employment Gains: As of May 08, the St. Louis area unemployment rate is.%, lower than the national rate of.7% Impressive Job Force: The percentage of St. Louisans age 5 or older with bachelor s degrees or higher more than 0 percent exceeds the national average. This same survey found that among St. Louis area residents 5 or older,.5% percent have graduate or professional degrees, exceeding the U.S. average of. percent. The creates an impressive job force for existing companies in the St. Louis area and companies looking to relocate to St. Louis. Fortune 500 Magnet: St Louis is home to ten Fortune 500 companies, including Express Scripts, Centene Corporation and Emerson Electric. On a larger scale, 6 Fortune 000 companies call St. Louis home, along with some of the nation s largest privately held firms such as Enterprise Rent-a-Car and World Wide Technology. 9

10 Hub of St. Louis Clayton is the undisputed hub of the St. Louis metropolitan area. Boasting twelve minute travel times to both Downtown St. Louis and the Lambert International Airport, Clayton enjoys tremendous accessibility. It is also proximate to several major highways including interstate highways I-70 and I-6. The MetroLink light rail, which has been called one of the best mass transit systems in the country, provides access to all of the areas attractions. Beginning at St. Louis Lambert International Airport, MetroLink stretches 8 miles through Missouri and Illinois and includes stops at 7 stations. On weekdays, trains usually run every seven minutes during peak hours and every 5 minutes on weeknights. METROLINK Forsyth Station Ritz Carlton The Plaza in Clayton (Residential) The Plaza in Clayton (Office) 0 South Hanley Centene Plaza: Phase II Ce Forsyth Blvd 0

11 EXECUTIVE SUMMARY St. Louis Premier Office Submarket Clayton is the St. Louis region s most dynamic and sought-after submarkets for office property, making Pierre Laclede Center a particularly attractive investment opportunity. The area is the clear choice for financial and legal service tenants, as validated by historical net absorption rates. Historically, the Clayton submarket has outperformed other areas in the region. As of 08, Class A office space in Clayton has a vacancy rate of.%, the lowest vacancy rate among St. Louis submarkets. The area has also seen significant leasing activity, including Morgan Stanley s lease to move into Pierre Laclede Center in Fall 0 and Centene Corporation s lease of over 60,000 RSF in 07. Clayton, along with the Mid-City submarket that immediately surrounds it, also sees the highest Class A asking rental rates in the region. Increasing Clayton s attractiveness for office tenants is its proximate location to Downtown St. Louis, Lambert International Airport, as well as easy access to two interstate highways and Metrolink stations. METROLINK Clayton Station PNC Center St. Louis County Department of Justice Shaw Park ntene Plaza: Phase I PLC I Bank of America Meramec Avenue PLC II Hanley Road Maryland Avenue

12 Contact Information HFF Chicago 50 North Riverside Plaza Suite 500 Chicago, IL Telephone: Fax: Investment Contacts Jaime M. Fink Senior Managing Director Jeffrey M. Bramson Senior Managing Director / Managing Broker jbramson@hfflp.com Bryan D. Rosenberg Director brosenberg@hfflp.com Patrick M. Shields Director pshields@hfflp.com Sam M. DiFrancesca Director sdifrancesca@hfflp.com Kemp Collings Analyst KCollings@hfflp.com Financing Contacts Christopher S. Carroll Managing Director ccarroll@hfflp.com Daniel A. Kaufman Managing Director dkaufman@hfflp.com MO License # Atlanta Austin Boston Carolinas Chicago Dallas Denver Houston Indianapolis Las Vegas Los Angeles Miami New Jersey New York Orange County (CA) Orlando Philadelphia Phoenix Pittsburgh Portland (OR) San Diego San Francisco Seattle Tampa Washington, DC London 08 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 6 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.