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Presented to: November 12, 2013 GAS COMPANY TOWER Los Angeles, CA P o s i t i o n i n g s t r a t e g y t h e g a s C o m p a n y T o w e r

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Page 1: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Presented to:

November 12, 2013

GAS COMPANY TOWER Los Angeles, CA

Positioning strategy the gas Company Tower

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2

Table of contents

I.! Marketing Outside of California!

II.! Marketing Within Southern California!

III.! Strength Through Technology!

IV.! Reintroduce The Gas Company Tower!

V.! NGKF Team Experience!

VI.! Conclusion!

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Revitalize The Gas Company Tower and position it as a

preferred destination in Downtown Los Angeles.

We are prepared to our fees at

risk based on agreed Key Performance Indicators.

!! Increase occupancy !! Increase rents !! Lease 400,000+ square feet !! 90+% occupancy in 18 months

!! Generate market energy !! Study successful trends and apply in real time !! Evaluate existing tenant categories !! Identify targeted tenant categories based upon The Gas Company

Tower’s tenant profiles and market trends

!! Meet with all the major tenant rep brokers in LA – and key tenants !! Target Class B tenants looking to upgrade !! Leverage NGKF national account relationships !! Emphasize Fortune 500 companies

Brookfield & ngkf partnership

GOALS:

METHODOLOGY:

TARGETS:

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!! Website technology to drive end user access to information !! Cloud based surveys to drive refinement of amenities !! “View the Space” (VTS) videos for lobby and selected suites !! Embed video in website to enhance remote access !! Mobile presentation utilizing iPad

!! Advantage – No LA Market Conflicts !! 100% focus on The Gas Company Tower !! Team will relocate to The Gas Company Tower !! Optimize existing Brookfield tenant relationship across US

!! Develop and administer a design competition !! Create 3 tiered approach to possible improvements !! Consider interior and exterior renovations

o! Consider hybrid creative spec suite o! Consider renovate elevator cabs and lobbies o! Consider new exterior iconic lighting

Approach

COMMITMENTS:

TECHNOLOGY:

AMENITIES:

Page 5: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Marketing Outside California

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6

!! Law Firms

!! Financial

!! Real Estate Related

!! Insurance

!! Accounting

CATEGORY 1 – LARGE BLOCK USERS

!! Entertainment

! Technology/Software

! Web Production

! PR Marketing

! Internet Gaming

! Hybrid Tenants (bifurcated)

the future of the gas Company Tower

CATEGORY 2 – alternative & creative

!! Architects

!! Engineering

Apply new workplace concepts to tradition

users.

Page 7: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

NGKF tenant representation strategy

Team will directly contact national and regional brokerage firms.

Target List of Tenant Representation Companies

San Francisco

Ngkf internal tenant rep resources

West Los Angeles South Bay Los Angeles London Beijing

New York City Chicago San Diego Shanghai Tokyo

Page 8: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Marketing Within Southern California

Page 9: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Marketing Within Southern california

NO CONFLICTS in the Downtown LA Market

Develop incentives for procuring brokers.

An on-site broker event

Execute a creative, bi-weekly email campaign to local brokers.

NGKF will relocate the team onsite and would potentially relocate its Downtown office to The Gas Company Tower

The NGKF Team will focus on contacting businesses located in other Class A properties in Southern California.

Create spec suites

NO CONFLICTS -

CLASS A -

INCENTIVES -

EVENTS -

CAMPAIGN -

OCCUPY -

NEW -

Page 10: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Law Firms are one of the largest occupiers of space in

DTLA.

NGKF has significant relationships locally and

nationally.

NGKF Law firm relationship

LAW FIRM NGKF RELATIONSHIP

Bailey Kennedy John Bailey

Ballard Spahr Bill Curran

Black & LoBello Tisha Black Cherine

Bowler Dixon & Twitchell Andrew Dixon

Brownstein Hyatt Farber Schreck Frank Schreck

Fennemore Craig Joe Brown

Hansen Rasmussen Scott Rasmussen

Holland & Hart Greg Gilbert

Kaempfer Crowell Renshaw Gronauer Fiorentino Robert Gronauer

Koeller Nebeker Carlson Haluck Bob Carlson

Kolesar & Leathem Robert Kolesar

Kravitz Schnitzer Sloane Johnson Martin Kravitz

Laxalt & Nomura Holly Parker

Lewis Brisbois Bisgaard & Smith Andrew Cass

Lionel Swayer & Collins Senator Richard Bryan

McDonald Carano Wilson Jeff Silvestri

Parson Behle Latimer Kevin Polei

Santoro Driggs Walch Kearney Doug Driggs

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A selection of current tenants in the market over 40,000 SF:

Market Activity

275,000 SF 90,692 SF*

45,166 SF 41,441 SF

48,708 SF* 65,633 SF*

89,600 SF* 57,282 SF

154,597 SF 154,136 SF*

47,996 SF* 218,517 SF

60,272 SF 91,170 SF*

41,344 SF 42,420 SF

61,381 SF* 40,117 SF

135,839 SF

58,693 SF *Currently located in a Brookfield Properties building.

Page 12: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Selection of larger class a Dtla availabilities

Page 13: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

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Full floor demo. Warm shell add lighting to market open floor

Consider multi-tenant spec suites •! Creative •! Traditional

Potential spec suite or collaboration center

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Interior ideas

Conference center and shared work space on lower floors

Warm shell tour optimized space on upper floor

Hybrid traditional spec suite on lower floor

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15

Reintroduce the GAS COMPANY TOWER

BUILDING TOP LIGHTING FEATURE

•! Consider lighting feature at building top flame crown

ENHANCE STREET EXPOSURE

•! Consider opening mezzanine to outside

•! Add 5th Street ground floor tenant

•! Remove non structural stone from sidewalk facade

SIMPLIFY LOBBY SECURITY

•! Move security badge kiosks closer to elevations

•! Consider restaurant tenant for old bank

•! Renovate elevator cabs and lobbies

SIMPLIFY AND INCFREASE BUILDING ACCESS

•! Expand Grand Avenue pedestrian access

•! Allow access directly to patio area

•! Allow access directly to south/bank side of lobby

•! Upgrade elevator access controls

INTEGRATE PATIO WITH BETTER BUILDING

ENTRANCE

•! Clean mural on adjacent building

•! Modify water feature to utilize more outdoor space

•! Create non smoking area

CONSIDER NEW BRANDING

•! Create logo for building (re: 777 Century Plaza)

We think we know what you need and we want to know more before recommending any architecture firms. Based on your appetite for these elements, we’ll recommend 3-4 firms to compete. This will ensure you get the best design at the right price.!

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Strength through Technology

Page 17: the gas Company Tower150414967.homesconnect.com/AccountData/150414967/Sample Co… · Law Firms!! Financial!! Real Estate Related!! Insurance!! Accounting CATEGORY 1 – LARGE BLOCK

Our Company has implemented successful technology platforms in significant properties across the globe.

Our plan is to develop a new technology platform for The Gas Company Tower, which will be best-in-class and further differentiate The Gas Company Tower from the competition.

Utilize the Latest Technology

View the Space (VTS) videos for selected suites

New interactive website enabling viewers to envision occupancy through videos and access to team

•! Vision •! Key performance Indicator measurement.

Transform data into information in real time.

•! Analytics •! Property and prospect tracking Providing

insight on the performance of existing systems and the need for new work.

•! AMP •! Powerful applications utilized to compare

location scenarios, test the future effects of expansion, contraction and workplace considerations.

RECENTLY CREATED FOR US BANK TOWER

Vision

Analytics

AMP

of expansion, contraction and workplace considerations.

Vision Key performance Indicator measurement. Transform data into information in real

Vision Vision Vision Key performance Indicator measurement. Transform data into information in real

Vision Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Transform data into information in real Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Transform data into information in real Key performance Indicator measurement. Key performance Indicator measurement. Key performance Indicator measurement. Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real Transform data into information in real time. time.

Analytics Property and prospect tracking Providing insight on the performance of existing Property and prospect tracking Providing insight on the performance of existing systems and the need for new work.

Property and prospect tracking Providing • Property and prospect tracking Providing insight on the performance of existing Property and prospect tracking Providing insight on the performance of existing systems and the need for new work.

Powerful applications utilized to compare Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

insight on the performance of existing systems and the need for new work. systems and the need for new work.

Powerful applications utilized to compare

systems and the need for new work.

AMP Powerful applications utilized to compare

AMP Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Powerful applications utilized to compare Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace considerations. of expansion, contraction and workplace of expansion, contraction and workplace considerations.

Vision Key performance Indicator measurement. Transform data into information in real Key performance Indicator measurement. Transform data into information in real Key performance Indicator measurement. Transform data into information in real time.

Analytics Property and prospect tracking Providing insight on the performance of existing systems and the need for new work.

AMP Powerful applications utilized to compare location scenarios, test the future effects of expansion, contraction and workplace

Key performance Indicator measurement. Transform data into information in real Key performance Indicator measurement.

Property and prospect tracking Providing

Transform data into information in real Transform data into information in real

Property and prospect tracking Providing

Transform data into information in real

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Reintroduce THE Gas Company tower

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90-Day Marketing Timeline

JAN FEB MARCH 1 2 3 4 5 1 2 3 4 1 2 3 4

INIT

IAL

STA

RT-

UP

al

l eve

nts

occu

r sim

ulta

neou

sly

Select advertising / marketing company !!

Select space planning company !!

Create marketing flyer and materials !!

Establish marketing budget !!

Create website - Interested parties able to e-mail us from website !!

Create VTS videos !!

Finalize broker’s incentive menu !!

Project video !!

Amenities profile defined !!

Marketing Office !!

LEA

SIN

G A

ND

MA

RK

ETIN

G Fortune 500 companies/ selected categories !!

!!

Call every NGKF tenant representation broker !!!!

National site selection firms call !!!!

Tenant representation - National and regional brokerages !!!!

Creative e-mail campaign !!!!

!!!!

!!!!

Contact tenants in Los Angeles Class A buildings !!!!

Contact local commercial real estate agents !!!!

Local broker event !!

Virtual U.S. tenant representation broker events !! !!

Virtual site selector events !! !!

Weekly NGKF Team / landlord conferences

Place marketing materials on Property Line & Loopnet !!

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NGKF Team Experience

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A SELECTION OF Relevant experience

445 S FIGUEROA

627,334 SF

801 S FIGUEROA

458,149 SF

888 W 6TH ST

109,796 SF

FIGUEROA PLAZA II

307,556 SF

WARNER CENTER TOWER

1,958,677 SF

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22

CASE STUDIES

Local

Warner Center Plaza III Los Angeles, CA Size: 585,848 SF Service(s) Provided: Agency Leasing

Challenge The commercial real estate market in the greater Los Angeles area was extremely soft and, in addition, businesses in the San Fernando Valley were recovering from the Northridge earthquake. Nevertheless, most of the prestigious Warner Center Properties (which were part of a master-planned project, comprising 21 buildings totaling 2.3 million square feet) were experiencing improved activity. However, one of the Properties, Warner Center Plaza III, which totaled 585,848 square feet and was conceived as the premier building in the San Fernando Valley, remained 90 percent vacant since its completion. Ownership sought to attract quality tenants to the Property, increase occupancy and achieve premium rents.

Action The Leasing Team, led by Don Hudson, worked with AEW Capital Management, an advisor to the ownership of the  Property,  to  meet  ownership’s  objectives. Their concentrated effort included producing marketing materials that clearly positioned Plaza III as a part of the extremely successful Warner Center Properties master-planned project  and  as  the  premier  building  in  the  West  Valley.    These  materials  promoted  the  building’s  image and the Project’s   quality.   Further, the Team engaged extensive outreach program to tenant brokers to improve awareness of the Property throughout the brokerage community. To this group, Plaza III was positioned as the best and last quality alternative for prominent institutional tenants with significant contiguous space requirements. The  Team’s  marketing efforts capitalized on the Property’s   low vacancy by highlighting leasing activity in the local and adjacent markets to enable the Property to appear as the only viable opportunity for prospective tenants in the market and to force those tenants to act quickly to secure this opportunity.

Result Quickly, the market in which Plaza III resided tightened, changing perception about the Property. Plaza III reemerged in the tenant community as the premier building in the premier project in the Valley. Ultimately, as a result of its strategic marketing effort, the Newmark Grubb Knight Frank team was able to increase occupancy, occupancy at Plaza III from a low 10 percent to more than 85 percent within 12 months of receiving the assignment.

Pacific Center 523 W. 6th street Los Angeles, CA Size: 425,000 SF Service(s) Provided: Agency Leasing

Challenge Built in 1926 and renovated in 2003, the Pacific Center was perceived by the tenant and brokerage communities as a dated building with low occupancy and lackluster ownership. The   Pacific   Center’s new owner, Alliance Commercial Partners (Alliance), retained a Leasing Team, led by Gibran Begum, to help it add value to this Property by reintroducing it to the market as a vibrant and contemporary workplace. Alliance Commercial Partners hoped that the Team could  increase  the  building’s  occupancy  and  improve  rents.    Additionally, Alliance needed to be formally introduced to the brokerage community as a new and well-funded owner that embraced brokers and completing transactions.

Action The Leasing Team created a comprehensive marketing campaign that was designed to ignite interest in the Pacific Center among the tenant and brokerage communities. As part of this marketing program, the Team rebranded the Property by emphasizing its deep history and introducing it as a classic Los Angeles building. The Team recommended that special suites be created that could be immediately occupied. The classic aesthetic and robust amenities in these suites quickly attracted tenants to the Pacific Center.

Moreover, the Team implemented a broker incentive program that succeeded in creating enthusiasm for the Pacific Center among the brokerage community. It was not long until many prominent Los Angeles brokers were directing their tenant clients to this Property.

Result As a result of its rebranding of the Pacific Center and its aggressive brokerage outreach program, the Leasing Team was able to improve building occupancy in an 18-month period. The Team increased average rents at the Property by 32 percent, raising rents from $19 FSG to $25 FSG, with some floors in the Pacific Center achieving rents as high as $30 FSG.

BROKER CLIENT REFERENCE CONTACT INFORMATION SERVICES PROVIDED

Don Hudson AEW Capital Management Thomas E. Mullahey Director

601 S. Figueroa St., Ste 2150 | Los Angeles, CA 90017 213.312.2610 [email protected]

Agency leasing and property repositioning

Gibran Begum Alliance Commercial Partners Larry Lance Partner/Portfolio Manager

165 South Union Blvd., Ste 510 | Lakewood, CO 303.986.2222 www.alliancecp.com

Agency leasing and property repositioning of 523 W 6th Street (“Pacific Center”

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Team bios

Professional Biographies DON HUDSON Executive Vice President

Newmark Grubb Knight Frank 445 S. Figueroa Street, Suite 3300 Los Angeles, CA 90071 [email protected] T 213.596.2200 F 213.488.0819 RE License #00637048 Years of Experience 30 Years Areas of Specialization Landlord Representation Tenant Representation Partial Client List Accenture AEW Capital Management Bank of America Hammerson Properties IBM Mutual of Omaha USC/Health Sciences USC/Information Sciences Korn/Ferry International State Compensation Insurance Fund (CA) Walt Disney Company

Professional Background Don Hudson is the Executive Vice President, Managing Director of the Downtown Los Angeles office at Newmark Grubb Knight Frank. As a commercial real estate professional in the Los Angeles market for over 30 years, Don provides his clients with strategic advisory and transaction services, completing numerous lease transactions throughout Southern California. He has worked in Downtown Los Angeles for over 15 years and has complimented that experience by working in the San Fernando Valley for 10 years. An expert in the development of office leasing and marketing strategies, he has consistently been recognized for his sales and leadership skills.

Mr. Hudson is committed to helping his clients make the best strategic decisions possible to ensure that they met their business and real estate objectives. He is focused on developing trusted, long-term partnerships with his clients – employing his market knowledge, high-level relationships and negotiating expertise.

Leasing Assignments Warner Center Properties (2,300,000 square feet)

Figueroa Plaza II (300,000 square feet)

818 Building (370,000 square feet)

1100 Wilshire (325,000 square feet)

1000 Fremont (300,000 square feet)

Union Bank Plaza (600,000 square feet)

IBM Tower (600,000 square feet)

444 Building (100,000 square feet)

Education Bachelor of Science – Business, University of Southern California

Professional Affiliations Los Angeles Commercial Realty Association (LACRA) – Past Board

Member

University of Southern California Board of Governors

Santa Monica Hospital Foundation Board

Valley Presbyterian Hospital – Development Board

Economic Alliance of the San Fernando Valley – Past Board Member

GIBRAN BEGUM Managing Director

Newmark Grubb Knight Frank 445 S. Figueroa Street Suite 3300 Los Angeles, CA 90071 [email protected] T 213-596-2281 F 213-596-6881 RE License #01455990 Years of Experience 10 Years Area of Specialization Agency Representation:

Landlord & Sublandlord

Professional Background Gibran Begum is a Managing Director in the Downtown Los Angeles office of Newmark Grubb Knight Frank. A business graduate of Pepperdine University, Mr. Begum has been an active and prominent member of the greater Los Angeles commercial real estate industry. In 2005, the Los Angeles Business Journal named Mr. Begum as one of the few selected designees   in   their   acclaimed,   “Who’s   Who   of   Emerging   Brokers.”   Before  joining Grubb & Ellis in 2010, Mr. Begum worked at Cushman & Wakefield in Downtown Los Angeles since 2004.

Mr. Begum uses his experience in the multiple disciplines of commercial real estate to strategically provide a full-service platform to his clients. His practice is focused on office representation which involves the servicing of creative centers, new media shops, corporations and professional firms.

Experience Mr. Begum has represented many notable tenants which has enhanced his experience representing private and institutional building owners. In this capacity, he has managed several of the prominent high-rise trophy, mid-rise boutique and historical creative assets in Downtown Los Angeles. Past Landlord Representation Projects (Downtown L.A.):

801 So. Figueroa St. ‘Fig  Tower’ 458,159 SF Mani Brothers

523 West 6th St. ‘Pacific  Mutual‘ 424,598 SF Alliance Commercial Partners

811 Wilshire Blvd. 349,213 SF Jamison Properties

888 West 6th St. 95,490 SF Somerset Mngmt, LTD

1212 South Flower St. 67,952 SF

The KOR Group

605 West Olympic Blvd. 102,587 SF Standard Oil Investment Group

Education Bachelor of Arts. – Pepperdine University

Master of Fine Arts – A.F.I

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24

Total Downtown SF Listing 5,300,000 3,800,000 3,410,000 ZERO

CONFLICTS

Lack of Conflicts and Capacity to Execute

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Conclusion

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Increase Occupancy

Increase Rents

!! We have created a marketing plan to accomplish each of these objectives. The plan is aggressive, targeted and measurable.

!! A plan is only as good as it can be executed. Our NGKF Team has completed challenging assignments for projects with challenges similar to those of The Gas Company Tower.

!! We practice disciplined time-management and therefore have a manageable volume of listings, enabling us to commit the necessary energy and time necessary to such a substantial project.

Objectives

Increase Activity

METHODOLOGY

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Organization chart

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Rental rates AND Compensation contRact terms

Floor Base Rental Rate (per SF, per annum) Annual Rent Increases Rent Abatement

Lower Floors $23.00-$25.00 NNN

4% 1-1.5 Months per Year

Upper Floors $25.00-$27.00 NNN

4% 1-1.5 Months per Year

We plan to obtain the approximate rental rates detailed in the following table and look forward to discussing further with Brookfield.

Transaction Type Lease Term Period Direct (No Outside Broker) Outside Broker

Newmark Grubb Knight Team/Co-Brokerage Partner Newmark Grubb Knight Team Outside Broker

New Yrs. 1-5 Yrs. 6-10 Yrs. 11+

4% 2% 1%

2% 1% 0.5%

4% 2% 1%

Expansions (if applicable) Yrs. 1-5 Yrs. 6-10 Yrs. 11+

4% 2% 1%

2% 1% 0.5%

4% 2% 1%

Renewals (if applicable) Yrs. 1-5 Yrs. 6-10 Yrs. 11+

4% 2% 1%

2% 1% 0.5%

4% 2% 1%

The following table illustrates our proposed compensation contact terms. We look forward to discussing these terms further with Brookfield and mutually determining the length of time of our contract.

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LOS ANGELES DOWNTOWN 445 S. Figueroa Street Suite 3300 Los Angeles, CA 90071 213.596.2222

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