Offering Brochure - CBRE Marketplace

Investment Summary
PHILADELPHIA, PA

The Offering
CBRE, Inc. has been retained as the exclusive representative of a subsidiary of The Dow Chemical Company (“Dow”) to effect the
disposition of 100 Independence Mall West (“100 Independence,” or “the Property”), located at the southwest corner of 6th and Market
Streets in the Independence Mall submarket of Philadelphia, Pennsylvania. 100 Independence is a landmark, Class A urban office building
totaling 392,689 rentable square feet. The Property is prominently located in one of Philadelphia’s most desirable office submarkets,
within 100 yards of the Liberty Bell, the National Constitution
Center and Independence National Park. The Property is leased Asset Profile
on a long-term basis to two tenants: Rohm & Haas Company
(“R&H”), a wholly-owned subsidiary of Dow (NYSE: DOW) and
the General Services Administration of the United States (“GSA”).
ADDRESS:
100 Independence Mall West
Philadelphia, Pennsylvania
The Property will be 84% leased at closing with R&H occupying RENTABLE SQUARE FEET: 392,689
173,000 RSF (four and a half office floors) for a term of 6+ years; LAND AREA:
1.53 acres
the GSA lease encumbers 135,715 RSF for a term of fifteen years
NO. OF FLOORS: Nine (9)
commencing on or about July 1, 2014.
YEAR COMPLETED: 1965
LEASED (7-2013): 84%
In-Place Gross Rents: $8,100,000
GSA Tenancy
The Owner has recently executed a 15-
STABILIZED NOI: $5,000,000
year lease agreement with the GSA. The Owner desires to sell the building subject to the GSA lease prior to
the commencement of the construction related to the GSA’s improvements. The GSA lease calls for a specified
tenant improvement allowance of $6,557,500 ($48/RSF) to be supplied by the owner of the building. Further,
the GSA lease calls for certain specified base building improvements to be completed by the Owner during the
tenant improvement process. Such base building work is estimated to cost approximately $7,760,000 ($20/GBA). Each of these
capital expense obligations will be transferred with the lease.
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property description
Completed in 1965, 100 Independence is a nine-story office building which features an attractive lobby with dual entrances, a lobbylevel
restaurant, highly efficient 40,000 SF floor plates, below-grade loading and storage areas and city-scape views from all sides. The
high quality construction includes a dramatic lobby, an EPDM rubber membrane roof, recently updated common areas and a new HVAC
system. On-site amenities include a full-service restaurant and an executive parking area. The Property benefits from the surrounding
retail base along Market, Chestnut, Sansom and Walnut Streets and numerous nearby parking, dining and hotel facilities. The Property’s
location at the southwest corner of 6th and Market Streets provides excellent visibility and access to all forms of mass transportation.
Quality Tenancy
Rohm and Haas Company, a wholly-owned subsidiary of Dow, occupies approximately 48% of the net rentable area of 100 Independence
for a remaining term of approximately six and one-half years and provides significant income stability. The GSA lease encumbers 135,715
RSF for a term of fifteen years commencing on or about July 1, 2014. The parent of Rohm and Haas is rated BBB by S&P. The GSA lease
is a direct obligation of the U.S. Government (S&P: AAA).
The Dow Chemical Company
With sales of $57 billion in 2012 and 54,000 employees worldwide, Dow is a diversified chemical company
that combines the power of science and technology with the “Human Element” to constantly improve what
is essential to human progress. The Company delivers a broad range of products and services to customers
in 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water,
food and pharmaceuticals to paints, packaging and personal care products. During April 2009, Dow acquired Rohm and Haas Company,
a global specialty materials company with 2008 sales of $10 billion and 15,000 employees worldwide. The Rohm and Haas Advanced
Materials business currently employs more than 1,000 persons in the Philadelphia region and is committed to a long-term presence in
the region.
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federal courts
federal reserve bank
federal building
constitution center
100 Independence
independence visitor
center
liberty bell
independence hall
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Investment Highlights
Central Location
100 Independence Mall West possesses an irreplaceable
location in the Independence Mall submarket. Several
modes of public transportation are within a short walk
and SEPTA buses pass the building several hundred
times a day. The Property is also proximate to I-676
and I-95. 100 Independence is but a few steps away
from the Federal Courts, the National Constitution
Center, Independence Hall, Betsy Ross House, and the
Liberty Bell, placing it solidly in the middle of the one
of America’s most historic areas.
Value Enhancement
100 Independence Mall West offers an experienced
operator the opportunity to enhance cash flow and
value via the completion of the build-out associated
with the GSA lease and implementation of a focused
marketing program that redevelops the ground-floor
retail and below grade areas. With 12,815 SF of underutilized
ground floor retail and 45,031 SF of vacant
below-grade area available to lease during 2014, the
Property offers the opportunity to dramatically increase
cash flow and value.
Income Security
100 Independence offers the rare combination of
significant income security and rental upside via
the releasing effort of the lobby and below-grade
areas. Approximately 50% of the contractual income
generated by the Property is derived from the current
occupant, an investment-grade tenant, for the next 6+
years. The balance is generated by the GSA with an
expected rent commencement of July 1, 2014 and a
fifteen year lease commitment.
Strong Office Market Fundamentals
Philadelphia’s diverse economy has contributed to
the Central Business District’s continued low vacancy
rates. 100 Independence Mall West is situated within
the Independence Mall submarket, which contains 5.3
million square feet. The market-wide vacancy rate
within the CBD was 15% as of First Quarter 2013.
Major Tenants
TENANT SF FLOOR(S) LEASE EXP.
Rohm and Haas Company 172,947 6-9; Portions of LL & First Floor 12/2019
GSA 135,715 2-4; Portion of 5 06/2029
Rohm and Haas Company 20,237 Portion of 5 12/2014
Total 328,899
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ONE LIBERTY PLACE
Cozen O’Connor
TWO LIBERTY PLACE
Cigna
Mellon bank Center
FMC Corporation
one south broad
wells fargo
834 chestnut
Benjamin Franklin House
833 chestnut
Thomas Jefferson
Curtis center
U.S. Dept. of Labor
public ledger building
GSA
6 executive summary

Comcast centre
Comcast
three logan
Janney Montgomery Scott
Aramark tower
Aramark
PA Convention center
801 market
Commonwealth Of PA
1 independence mall
GSA
mellon independence center
Philadelphia Parking Authority
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Exclusive Contacts
Capital Markets
Robert Fahey
Executive Vice President
215.561.8951
robert.fahey@cbre.com
Lizann McGowan
Senior Vice President
215.561.8957
lizann.mcgowan@cbre.com
Jerome Kranzel
Senior Vice President
T +1 215 561 8954
jerome.kranzel@cbre.com
debt financing
james gunning
Executive Vice President
T +1 201 712 5855
james.gunning@cbre.com
leasing
George cauffman
Senior Vice President
T +1 215 561 8934
george.cauffman@cbre.com
www.cbremarketplace.com/100independence