2013 05 13 trizetto by Brenna Designs, LLC

TriZetto Corporation & Lexington Realty Trust Presentation for Property Management

May 13, 2014

Driving Superior Results for Property Management Updated 12/30/13 Lori Drury KMR

Overview

Objectives

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Cassidy Turley Overview

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Positive Building Experience for TriZetto

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Property Management Capabilities

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Unmatched Responsiveness to TriZetto Issues

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Engineering, Operations and Sustainability

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Manage Expenses and Maximize Value

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Client Accounting and Transitions & Quality Control

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The Cassidy Turley “EDGE”

“ Why do we work with Cassidy Turley? The ‘why’ is the people. It’s a company that demonstrates a tremendous respect for people up and down the organization, as well as a great level of commitment to their clients.” Fred Seigel, President and COO Beacon Capital Partners, LLC

2 | Cassidy Turley

“ Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” Peter F. Drucker Management Consultant

Company Overview

National Coverage. Local Expertise. National Coverage.

Local Expertise.

• 60 U.S. offices

• 55+ years as a leader in commercial real estate services in Colorado

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$25.8 billion in transaction volume completed for 2013

• 700+ exclusive listings in the Denver Metro and Northern Front Range area

400 million SF managed portfolio on behalf of corporate, institutional

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• #2 Denver-Area Real Estate Brokerage in the Denver Business Journal

and private clients •

4,000 associates, including more than 970 brokers 24,000+ domestic corporate service Turley locations Regional supported Cassidy

•

Map

NORTH CENTRAL St. Louis Indianapolis Cincinnati/Dayton Minneapolis

Columbus Kansas City Milwaukee

TRI-STATE New York New Jersey

NEW ENGLAND Boston

MID-ATLANTIC Washington DC Virginia Bethesda Baltimore Columbia

WEST

Los Angeles San Francisco San Jose Palo Alto Burlingame East Bay/ Sacramento San Diego Phoenix

SOUTHEAST Nashville Atlanta Charlotte Raleigh Louisville Tampa

SOUTH CENTRAL Dallas Houston Denver

4 | Cassidy Turley

Property Management Capabilities

Legacy of Success. “ Panattoni outsourced the property management of nearly 22 million SF to Cassidy Turley and gained a trusted partner we rely on to make us more efficient and profitable.” Bill Bullen, Director of Asset Management Panattoni Development Company, Inc.

Realty Advisors

“ The Cassidy Turley Team understood our objectives and clearly evaluated all alternatives to assist us in meeting those objectives. The leasing and management team had one focus and communicated plans and ideas which they felt were in the best interest of the success of our investment. The open communication, responsiveness and professional consultation of the Cassidy Turley Team were invaluable. Brant Glomb, Vice President EQUUS Capital Partners, Ltd.

“Cassidy Turley’s team has done a tremendous job, in a very short period of time, in transitioning the level of service at my office building from borderline mediocre to Class A.” Kendrick C. TA Associates Realty

6 | Cassidy Turley

Property Management. Delivering Bottom Line Results. Manage your properties according to your individual financial goals, objectives, and priorities.

Property Management Stats Property Management Professionals Property Management Professionals Property Management Maintenance Technicians Client Accounting Ancillary Personnel (Concierge, etc.)

Address your asset’s distinctions and market potential, as well as your requisite reporting needs and decision making path. 714 716 159 64

Analyze the financial and physical characteristics of each asset and proactively seek ways to enhance your property’s value.

Ancillary Personnel 159 159 (concierge, etc.) Client Accounting Client Accounting Property Management Professionals

Sustainability by the Numbers •

100+ LEED Accredited Professionals

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69 LEED Projects; 17 million SF

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104 ENERGY STAR Buildings; 25.6 million SF

Property Management Maintenance Technicians Client Accounting

Ancillary Personnel (Concierge, etc.)

Our Commitment to You

Healthcare 3%

Retail 13%

Maintenance Maintenance Technicians Technicians

specializing in management, maintenance and support

Office 29%

716 716

Property Management

1,653 Property Management Professionals

Industrial 55%

714

400 million SF managed portfolio on behalf of corporate, institutional, and private clients

BOMA TOBY Award Winners 2012 International

Communication: Your Denver property management team will be accessible and proactive.

• Georgia Power Company HQ

• Piedmont West

Atlanta, GA

500,000–1,000,000 SF category

Medical Office Building of the Year

2013 Regional Professional Certifications • Real Property Administrator (RPA)

Problem Resolution: Resolutions will be reached within 24 hours and on first attempt.

• Certified Property Manager (CPM) • Certified Public Accountant (CPA) • Certified Commercial Investment Member (CCIM)

• StoneCrest Physicians Building

Chesterfield, Missouri

Medical Office Category

Suburban Office Park, Low-Rise Category

• 8900 Keystone Crossing

Expense Management: From real estate taxes and utilities to light bulbs and hand soap, all building expenses will be continuously monitored for value and savings opportunities.

• Delmar Gardens

Smyrna, Tennessee

Indianapolis, Indiana

Renovated Building Category

• Creve Coeur Center IV Creve Coeur, Missouri 100,000-249,000 SF Category

• McPherson Building

Washington, DC Renovated Building Category

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Engineering, Operations and Sustainability

Engineering and Operations. Energy Management Total Envelope Management

Water Systems Management

Deliver best-in-class procedures to provide more efficient and reliable equipment and systems operation. Implement computerized maintenance tracking systems. Deliver a program that will extend the life of the assets, equipment and systems. Provide three- to five-year capital planning.

Building Standards

Energy Efficient Lighting

Environmental Health & Safety

Fire Life Safety

Tenant Request Tracking

Fire Supression

Indoor Air Quality

Data Center Management

Best Practices Training

Emergency Power Management

Safety Training

Manage and reduce consumption and cost through internal audits, utility management, demand side management, project management, utility rebates and EPA Energy Star initiatives.

Preventive Maintenance

Manage inspections and preventive programs to deliver comfortable work space that is also safe and compliant with local, state and national codes and standards. Provide industry-standard procedures for health and safety inspections and response.

Fire Life Safety Manage and maintain systems compliant to NFPA codes and standards. Work with state and local authorities which have jurisdiction to deliver safe work space and proper working asset protection. Maintain system integrity through tests and inspections. Develop emergency response plans for building.

Physical Asset Maintain building standards and/or assist owner with developing those standards. Implement computerized tenant request dispatch and tracking system. With attention to detail, keep clean and organized both front of the house and back of the house areas to include exterior landscape and hardscape areas.

Water Treatment Energy Star Benchmarking

Manage and maintain water quality for systems that use water as a medium for process. Examples include: heating, cooling, suppression, domestic and feature fountains. Best practices to mitigate risk and liability, provide efficient operation and minimize piping loss due to corrosion and scale.

Utility Management

Team Development / Customer Service Training and development includes core safety and health program through Skill Soft. Conduct on-site training of operations, equipment and systems, procedures and processes. Partner with vendors for training on industry and technology changes.

Critical Environments Method of procedures geared toward 100% uptime and availability of systems. Emergency power management and maintenance clean floor, management, contingency planning. Provide best-in-class procedures and or use owner-required procedures.

Computerized Maintenance Systems

Preventive Maintenance

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Engineering Services. New Engineer Orientation

Success Stories

NEW ENGINEER (ORIENTATION)

Engineering Transition Checklist

ENGINEER: Administrative 1. ___ New hire paper work. 2. ___ Uniforms ordered. (steel toe shoe voucher) 3. ___ Communication Device ordered. 4. ___ Keys. 5. ___ Card Access for main building. 6. ___ Card access parking. 7. ___ Tenant card access. 8. ___ Tools ordered. 9. ___ Email address 10. ___ PM and Work Order System Log On. 11. ___ Building Automation System Log On. 12. ___ Skill Soft log in and password. 13. ___ e-Community engineering section tour 14. ___ Building standards, policies and procedures Building Tour 1. ___ Main water shut off location. Building and Curb 2. ___ Main electrical shut off locations 3. ___ Main Gas and Steam shut off locations 4. ___ Main fire pump and sprinkler valve locations 5. ___ Electrical each floor (Distribution) 6. ___ Mechanical equipment room locations. 7. ___ Central Plant Tour 8. ___ FCC Fire Panel Room 9. ___ Roof access and equipment layout 10. ___ BAS tour front end. 11. ___ Dock use and locations 12. ___ Outdoor lighting controls 13. ___ Emergency generator room. 14. ___ Domestic water booster systems 15. ___ Elevator machine room locations 16. ___ Critical Environments 17. ___ Intake and exhaust system 18. ___ Parking garage and lot locations Administrative Follow Up 1. ___ Uniforms Received (steel toe shoes) 2. ___ Communication device received 3. ___ Keys received 4. ___ Parking received 5. ___ All Card access for building and tenants received. 6. ___ Tools received. 7. ___ Have logged on to BAS 8. ___ Have logged on to work order system 9. ___ Email address active 10. ___ Skill Soft log in achieved and engineer is taking required core classes

Cassidy Turley Engineering Transition Checklist Owner:

Date Updated:

Asset Manager:

Assignment Date:

Priority 1 Other (Priority 1) Priority 2

Property Manager: Chief Engineer:

Engineering Transition Checklist

Percent Complete:

Assigned to:

Due Date

0% Target Completion Date

Site Employees (Priority 1) ~ Complete new hire form for all new and transferred employees

~ Measure and order new uniforms

~ Establish email accounts

~ Determine computer needs

~ Conduct HR new hire orientation for all new staff

~ Safety training for Engineering Team setup in SkillPort

~ Provide computers as needed

~ Provide cell phone/Blackberrys as needed

~ Conduct new hire orientation for all new staff

~ Provide contact numbers on wallet sized cards for all staff

~ Cassidy Turley's Engineering Standards are reviewed by the team

A plan is developed move towards compliance Section Total Completed:

Actual Completion Date

Develop a 24/7 emergency contact list for these vendors

* Elevator

* Life safety systems Remarks * Mechanical

* Electrical

* Building Automation

* Access Control

~ Notification of new management

Tenants

Vendors

Utilitiy providers

Local Authorities

~ ~ Section Total Completed:

~ Review Elevator Inspection Records

Are inspections up to date?

Are certificates current?

~ Review last electrical system PM Records >

Was inspections completed within past 3-years?

~ ~ ~

~ Confirm procedures for after-hour answering service

~ Confirm off-site monitoring of the fire alarm system

~ Obtain list of all chemicals in building

~ Obtain MSDS for all chemicals in building

~ Locate safety equipment (obtain and install, if necessary)

~ Fire extinguishers

Location list

Review Inspection records

~ ~

Any deficiencies not addressed?

All testing and inspections up to date?

~ ~

Was the inspection completed within the past year?

~ Determine if the property has asbestos containing material >

If so, follow te plan in CT's Eng Disciplines (III.4.S)

~ Determine if any underground stargae tanks are onsite >

If so, follow te plan in CT's Eng Disciplines (III.7.S)

~ Determine if any boiler(s) or pressure vessels requiring inspection >

If so, are inspections and state issued certificates current?

~ All on-site refrigerants are inventoried, both in-use and in-stock

~ An indoor air quality (IAQ) plan is in place (CT's or Client's)

~ Section Total Completed:

Other (Priority 2) ~ Determine any sub-meter readings and billing schedule

~ Understand OT HVAC routines and associated costs

~ Understand any special tenant sevices provided

~ Review any recent environmental or building assessment reports

~ Section Total Completed:

Review evacuation routes/procedures with the Property Team

List emergency contacts

~ Establish/review security guard post orders

Fire department

~ Conduct an inventory of facility, equipment, and personal property

Police department

~ Any Building permits for active construction?

Ambulance service

~ Determine PM system that will be used (Workspeed, etc)

Local hospital

Set-up equipment in preventive maintenance system

Develop Crisis Communications Plan (CCP)

Provide staff training in use of preventive/w.o. system

Conduct tabletop exercise for building staff

Check exit and emergency signage

Section Total Completed:

management processes, industry-best practices and benchmarking, and enacted extensive technical training

~ Review the last roof achorage certification report

centers • 100% up-time over the past 6 years • Standardized and documented 300 facility

Legal/Regulatory Compliance Status (Priority 2)

~ Review last electrical infrared scan report, note last testing date

~ Confirm locations of all utility shut-offs

• Directed ISO 9000 Certification for both data

~ Develop Emergency Response Plan (ERP)

0 ~

United States & Canada Size: 12 million SF (115,000 SF data center)

Provide tenant training on use of the workorder system

~ Confirm locations of all emergency equipment

Edward Jones

Fire & Life Safety and Emergency Response (Priority 1)

~ Review Life Safety System Inspection Records

~ A key control program is established for building keys

~ Determine the key contractors for the property

~ Provide offer letters to new employees

0 of 20 0% ~ Determine tenant be used (Workspeed, etc) 0 system of that 11 will0% Priority 3 WO > Setup tenats in the system 0 of 84 0% Total >

Check Off

New Engineer Orientation

Other (Priority 3)

~ Benchmark the building in Energy Star

~ Inventory of building plans (as-builts, tenant drawings, etc.)

~ Conduct a full inspection of the building and property

Condition of the roof, active leaks?

Deferred maintenance

Page 1 of 2

Market Tower Page 2 of 2

Indianapolis, IN Size: 513,000 SF

• Installation of a new energy efficient chilled

water system

• $72,000 annual energy savings obtained

within the first year • $53,000 in maintenance savings

10 | Cassidy Turley

Sustainability Services. 2014 ENERGY STAR Partner of the Year. Cassidy Turley’s Sustainability Services delivers integrated, tailored solutions to maximize sustainable opportunities for every class of real estate. We oversee more than 20 + million square feet of LEED certified projects. Our active local and national involvement with organizations such as the U.S. Green Building Council, BOMA, ENERGY STAR® and the Urban Land Institute, keep us firmly rooted in cutting edge technologies and best practices throughout the industry. Cassidy Turley’s Sustainability LEED APs Services has the ability to provide • 100 + LEED these services locally and Accredited nationally: Professionals • Sustainability Visioning • Energy Procurement Advisory • Operating Efficiencies Consulting

Powerful Ideas® Campaign

Sustainability Spectrum Supply Chain Awareness

Reuse & Recycling

• Waste reductions • Take Back and reuse initiatives Programs • Sustainable Procurement Policies

Low

Imp

act

Employee Engagement • Dedicated Sustainability Team • Cross Departmental Representation

Full Site Evaluations • Site Maintenance Policies • Water Use Reduction & Efficiencies • Energy Reduction Programs

• Incorporation into • Carbon Footprint Mission Statement Analysis • Greenhouse Gas Emissions Reductions

Energy Deregulation by State

Third Party Verification

Triple Bottom Line

• LEED • ENERGY STAR

• Full Integration of Sustainability into Company’s Offerings, Process & Culture

• BOMA360 • Green Globes

• Proactive involvement in Local, State & Federal Legislation

• BREEAM • ISO 14001 • State & Regional Certification Programs • Other Global Certifications

• Annual Corporate Sustainability Reports • Peer Benchmarking

Nationwide

• “Powerful Ideas®” was developed as an awareness campaign to encourage our tenants and clients to join in our efforts while reducing our carbon footprint. • “Powerful Ideas®” provides tips encouraging everyone to take simple steps that can make a difference. • The program has expanded beyond energy and addresses waste management and “sustainability basics.”

• Sustainability Financial Modeling

Hig

h Im

LEED Projects • 20 + million SF

pac

• ENERGY STAR® Benchmarking • Utility Control and Tracking • Employee Participation Programs

ENERGY STAR

• Environmental Risk Mitigation

• 450 + buildings benchmarked

• LEED Certification Project Management

Electricity and Gas Deregulation ®

Electricity Deregulation Gas Deregulation No Deregulation

Partnerships

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Client Accounting and Transitions & Quality Control

Client Accounting. Transitions & Quality Control. Client Accounting

Transitions & Quality Control (TQC)

• 159

•

Client Accounting Associates located in Phoenix and St. Louis

5 Accounting Systems - Yardi - MRI - Skyline - CTI - JD Edwards

222 million SF transitioned into the Cassidy Turley platform since 2010

(43.5 million SF in 2013)

4,500 leases abstracted or audited in 2013

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Key Client Transitions Since 2010

RSF

Industrial

19,214,343

Compliance

Industrial

12,028,993

• 8 years

Office / Industrial / Retail

11,369,955

Office / Industrial

9,249,544

Office

3,522,636

Office / Industrial / Retail

3,036,006

Office / Industrial

3,630,791

Office / Industrial

2,700,378

Office / Industrial / Retail

1,919,001

Office / Flex

2,122,580

Office / Industrial / Retail

1,443,507

Office

1,381,023

with an unqualified audit opinion - Annual Service Organization Control (SOC1) Report

Monthly Statistics 17,423 Rent Statements

37,678 Invoices

29,264 Checks Cut Realty Advisors

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The Cassidy Turley “EDGE”

The Cassidy Turley “EDGE”. How will the EDGE Work for You? Our Cassidy Turley team strives for excellence and exceptional results. We have assembled a dedicated, experienced team for the TriZetto assignment. We will help TriZetto and Lexington grow and are energized to help make you better. “Best in class” service is our standard. Our team will be led by property manager, Celeste Fellows. Celeste embodies the CEO mentality Cassidy Turley expects from its property managers. Celeste will be actively engaged at the property while attending weekly meetings with the TriZetto team, inspecting the building with vendors, or visiting with TriZetto associates. You will be pleased with Celeste and enjoy working with her; she strives for, and expects, results.

Risk Reduction

Experience & Expertise

• Quality Control

Savings • Initial audit of all expenses

• Contracts and RFP’s • Procurement Strategies

• Proven, experienced team • National and local resources • History of similar success

U Unrivaled • Strong sense of urgency

• “Re-commission” the building to ID • Your Cassidy Turley savings team is available 24/7 potential • Cassidy Turley buying power = cost savings to TriZetto

• This assignment is more important to us than to anyone else

T Tenacity

Leverage • Global purchasing power • Leverage our buying power for TriZetto • Vendors as service partners

• Solve problems • Solution-oriented

S Service • No one will out-work us • You will see your Cassidy Turley team often

• Value-driven • Cross-training of maintenance personnel

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