Behringer harvard proposal 120213

Property Management Presentation Subtitle

Prepared For: Client Name Title Behringer Harvard

Prepared By: Broker Name Title 000.000.0000 Firstname.Lastname@cassidyturley.com

1234 Street, Suite Number City, State Zipcode T: XXX.XXX.XXXX F: XXX.XXX.XXXX cassidyturley.com

Table of Contents

Section 1: Title # Section 2: Title # Section 3: Title # Section 4: Title # Section 5: Title # Section 6: Title #

Section Header

Executive Summary

4 | Cassidy Turley

Leadership Greg Morris President, CEO Denver Leadership 303.312.4285 greg.morris@cassidyturley.com

Marla Maloney Executive Managing Director, Principal Project Management Leadership 314.746.0342 marla.maloney@cassidyturley.com

Alex Fox Senior Vice President, Principal Property Management Leadership 303.312.4232 alex.fox@cassidyturley.com

Name Property Manager 303.312.4232 alex.fox@cassidyturley.com

Kevin Terrien Senior Vice President Project Development Leadership 303.312.4203 kevin.terrien@cassidyturley.com

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Local Expertise.

For more than 55 years, Cassidy Turley Colorado has been acknowledged as a leader in commercial real estate services in Colorado. The firm represents more properties than any of its peers, with more than 700 exclusive listings in the Denver Metro and Northern Front Range area.

Colorado Facts • 2 Regional Offices

• 5 .5

• 100+ Professionals

• 526 Lease Transactions in 2012

• 60 Brokerage Professionals

A Full Service Firm

6 | Cassidy Turley

Million SF Managed Portfolio

National Coverage.

Quick Facts

Our Core Values

• 6 0 U.S. offices

Exceptional Results for Our Clients

• $ 22

billion in transaction volume completed for 2012

• 400

million SF managed portfolio on behalf of corporate,

institutional and private clients • 3 ,800 associates, including more than 970 brokers

We do whatever it takes, wherever it takes us.

Dedication to Our Communities We don’t just work in our communities, we belong to them.

Growth for Our Company We grow to get better, not just bigger.

Energizing Workplace for Our Associates Our people are more than assets; they are Cassidy Turley

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Property Management Overview Manage your properties according to your individual financial goals, objectives, and priorities.

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

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

specializing in management, maintenance, and support

Sustainability by the Numbers • • •

100+ LEED Accredited Professionals 69 LEED Projects; 17 million SF 104 ENERGY STAR Buildings; 25.6 million SF

Professional Certifications • Real Property Administrator (RPA) • Certified Property Manager (CPM) • Certified Public Accountant (CPA) • Certified Commercial Investment Member (CCIM)

8 | Cassidy Turley

Office 29%

Healthcare 3%

on behalf of corporate, institutional and private clients

Retail 13%

1,583 Property Management Professionals

Industrial 55%

400 million SF managed portfolio

2012 BOMA TOBY Award Winners International • Georgia Power Company HQ

Atlanta, GA 500,000–1,000,000 SF category • P iedmont West

Atlanta, GA Medical Office Building of the Year

Regional • G ateway Commerce Center III (Westway III) St. Louis, MO Industrial category • D elmar Gardens

St. Louis, MO Suburban Office (low rise) category • 5 00 New Jersey, NW

Washington, DC Under 100,000 SF category

Property Management Management Approach - The Cassidy Turley Advantage Cassidy Turley will enhance the current Property Management operation at the Esplanade with its national platform. The local Property Management team is currently doing a good job. In reading the Kingsley Surveys and in talking to current tenants at the Esplanade the current tenant base is satisfied with the staff in place. Tenants recognize the improvements that have been made to the team over the last year, and there is positive momentum in this portion of the overall asset. Given all the changes we will be making at the asset it would be prudent to leave this team as a constant.

Our approach to the Esplanade Property Management is as follows: • Onboard the entire current team and evaluate the performance of individual contributors • Enhance the team with support on the Retail Property Management, Marketing and Promotions.

• Actively engage the Property Management team as part of the Strategic Asset Plan development • Create a more concierge service oriented mindset in the Property Management team:

Alex: Need specific language here about the asset. I left the Esplanade in as a point of reference.

• Relocate the team to a ground floor retail location with more visibility to the tenants • Develop a rebranded Esplanade website with a building portal to: • Facilitate work orders • Provide tenants ongoing information about the property and events • Provide links to on-site car detailing, food delivery options, dry cleaning services, and so on.

Robust National Platform Through years of experience, Cassidy Turley has developed a proven record of successful third party management with more than 400 million square feet under management. We integrate our standard “best-in-class” services, coupled with our depth of experience, to meet ownership’s goals. Cassidy Turley views its relationship with MetLife as forging a partnership; therefore, we commit to developing a strategic plan to provide integrated services at the Esplanade.

Companies and individual owners hire Cassidy Turley for our reputation of establishing effective management programs that efficiently support the property’s, specific operations, which achieves substantial operational savings with minimal or no impact to service delivery levels.

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Client Accounting Client Accounting • 183 Client Accounting Associates • 7 years with an unqualified audit opinion - Annual

Service Organization Control (SOC1) Report •

5 Accounting Systems - Yardi - MRI - Skyline - CTI - Timberline

Monthly Statistics

16,183 Rent Statements

37,091 Invoices

Accounting and Financial Reporting Cassidy Turley’s Client Accounting department offers an institutional grade accounting program that offers the highest level of security, accuracy, expertise, and flexibility within the industry to benefit our clients.

Accounting Overview From processing basic day to day transactions to complex accounting and reporting needs, our accounting professionals deliver financial information that is both accurate and timely.

Our process begins with strong people. Our accounting team consists of more than 183 professionals with an average tenure of more than eight-years of real estate accounting experience. The senior management team who oversee and are responsible for all accounting functions have up to 20+ years industry experience.

Our accounting management team, many of whom are licensed CPAs and hold advanced degrees, monitor process quality and consistency. Our system of strong controls, certified as SOC1 compliant, ensures existence and maintenance of all necessary safeguards over MetLife’s confidential information.

Our collaborative approach between Property Manager and Property Accountant allow us to deliver client financial reports which enables you to make sound business decisions regarding your investment.

We have a sophisticated standard financial reporting package that we tailor to ensure it fits your unique reporting needs. Our scalable approach allows us to deliver a quality financial report in a cost efficient manner.

Internal Controls and SOC 1 Compliance

29,160 Checks Cut

10 | Cassidy Turley

Cassidy Turley’s approach to ensuring accurate and consistent accounting data is based on our internal controls, which are reviewed and tested annually by KPMG, LLP as part of our Statement of Standards for Attestation Engagements (SSAE) No. 16, or “SSAE 16,” audit or Service Organization Controls (SOC1) audit.

Client Accounting Financial Reporting Our Accountants will prepare the reporting packages in accordance with MetLife’s frequency request, specifications, and requirements. During preparation of the preliminary reports for review, the Accountant completes a comprehensive financial statement pre-close interactive checklist, which addresses all aspects of the data from the tie-out process, supporting schedules, documentation of reconciling items, and report formatting. Upon completion, the Accountant sends the monthly reporting package to the Property Manager for review and approval.

The Property Manager will review the reporting package, including specific checks of the Accountants’ work to determine that the revenue and expenses have been recorded accurately on the property. Accounting managers also perform property reviews to verify that accounting data is recorded and reconciled properly.

The Property Manager will: • Inspect the reports to determine required bank account reconciliations are included and accurately prepared.

• Review the tenant accounts receivable aging reports to identify accurate application of payments and recording of tenant receivables. The Property Manager may also identify unrecorded receivables for a property.

• Review the expense distribution report to determine and approve the expenses applied to the property’s ledger as well as identify any accrued expenses recorded or missing on the account.

• Review the budget-to-actual comparison report for the month. The review will highlight variances; therefore, the manager can identify revenue or expense items are potentially recorded incorrectly or missing from the financial statements. The budget comparison is approved prior to generation of the final financial statements.

Accounting Software Cassidy Turley’s accounting group is experienced with the most popular and widely used accounting software systems including: Yardi, MRI, Timberline, CTI, and Skyline. We maintain our own SQL database as well as access client databases via a Citrix connection. We have experienced accounting professionals with more than eight-years of MRI (Foresight model) experience. We are flexible in using owner designated systems and have been a licensed user of dominant industry software packages for more than 15-years. Additionally Cassidy Turley has been a licensed user of Kardin Budgeting Software for more than 12-years.

In addition to our internally hosted and maintained financial accounting software databases, we can also access client hosted software via secure remote access.

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Transition & Quality Control Success Story

Transitions & Quality Control • 178.5 million SF transitioned into the Cassidy Turley platform since 2010 • 2,750 leases abstracted or audited in 2012

Key Client Transitions Since 2010

RSF

Industrial

19,214,343

Industrial

12,028,993

Office / Industrial / Retail

10,929,955

Office / Industrial

8,849,544

Office

3,522,636

Office / Industrial / Retail

3,036,006

Office / Industrial

3,005,791

IndCor Properties 7.8 million square feet, 51 assets Denver, Kansas City, Chicago, Columbus, Cincinnati, Indianapolis, and Louisville Cassidy Turley assembled a team of management professionals in each market to quickly form relationships with the tenants and local service providers to engage and understand the day-to-day operations which led to a seamless transition from the previous management companies.

TQC team initial transition: • Reviewed

Office / Industrial

2,200,378

all lease records for any missing documentation

• Developed

Office / Industrial / Retail

1,919,001

procedures and best practices relating to the communication of financial information

• Centralized

Office / Flex

1,772,580

document storage by leveraging Cassidy Turley’s existing SharePoint client portal

• 7.8

Realty Advisors

12 | Cassidy Turley

Office / Industrial / Retail

1,443,507

Office

1,381,023

MSF initial transition of 254 IndCor (original Prologis) portfolio leases within 60 days in June 2011

• 5.3

MSF recent transition of 87 IndCor (Dexus) portfolio leases within 60 days in June 2012

Transition & Quality Control Strategic Asset Plan During the first 90-days, we will develop our Strategic Asset Plan for the Esplanade. We will collaborate with MetLife to refine our concepts and include other ideas they may have gathered through their discernment process. The plan will include key strategic elements and proposed tactical implementation along with estimated costs and time lines. This will be summarized with an Argus Financial Model.

Property Management and Client Accounting Transition Our dedicated TQC team provides assistance to the Property Managers and Accountants during the initial stages of a transition. The added resource allows our team to focus on what is truly important: building relationships with the tenants and identifying ways to maximize revenue and reduce expenses.

The TQC team utilizes a detailed checklist to make certain that all aspects of a property’s transition are completed on time.

In 2012, Cassidy Turley successfully on-boarded 52 million square feet of managed property and abstracted or audited more than 3,100 leases.

PROPERTY MANAGEMENT - FIRST 30-DAYS

RESPONSIBLE PARTY

Delivery of electronic copies of all lease documents Define financial reporting requirements.

&

Hard and electronic copies of all property files (including vendor contracts, budgets, reconciliations, insurance/tax information, utility/telecom invoices, building automation system information, building equipment lists, etc.)

Face to face transition meetings with the current Property Management teams and the new Cassidy Turley teams.

&

Dedicated MetLife SharePoint site updated for document storage/routing.

Property management agreement executed.

&

Face to face meetings with tenants to discuss transition and any outstanding concerns that need to be addressed.

Leases are reviewed / audited for accuracy in preparation for February rent rolls.

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Project and Development Services Listening closely to clients, fully grasping their project goals and urgencies while striving to increase quality and reduce cost.

Managing more than 250 major projects, Cassidy Turley professionals complete an additional 3,600 minor projects every year.

Delivering an average 10-25% savings of the project cost on each assignment.

Project Management is Good — Project Leadership is Better All good project managers can oversee a project through to completion, but Cassidy Turley’s project professionals listen closely to clients, fully grasping their project goals and urgencies while striving to increase quality and reduce cost.

• W hile managing more than 250 major projects, Cassidy Turley professionals complete an additional 3,600 minor projects every year.

• W e deliver an average 10-25% savings of the project cost on each assignment, no matter the size, by adding value and mitigating risk at each milestone of the design and construction process.

• O ur project management professionals across the country have an average of 18-years experience delivering construction and development projects.

14 | Cassidy Turley

Project and Development Services Scope of Services

Due diligence advisory

Infrastructure and capital projects

Base building and development consulting

Moves, adds and changes along with workspace optimization projects

Tenant fit-out

Multi-site program management

Client Testimonials “ I have had extensive dealings with project management firms, but I have never seen a group put so much into understanding a client’s needs and constraints. While aggressive advocates for their clients, they managed the process in a clear, open and consistent manner. Their guidance made sure our project was a winner.”

Tom Troeschel Vice President, Operations Service Source Network

“ The intricacies of coordinating design solutions and regulatory approvals while minimizing our cost and schedule exposure was handled masterfully. Having the leadership of an experienced project manager to create a collaborative environment amongst the regulatory agencies, design professionals and contractors was invaluable.”

Jay Epstien US Real Estate Practice Chair DLA PIPER

Occupancy planning

Energy audits and consulting

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Sustainability Cassidy Turley’s Sustainability Services delivers integrated, tailored solutions to maximize sustainable opportunities for every class of real estate.

Energy Deregulation by State

We oversee more than 17 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 Sustainability Services has the ability to provide these services locally and nationally: • Sustainability Visioning • Energy Procurement Advisory • Operating Efficiencies Consulting

Electricity and Gas Deregulation

• ENERGY STAR Benchmarking

Electricity Deregulation

• Utility Control and Tracking

Gas Deregulation

• Employee Participation Programs

No Deregulation

®

• Environmental Risk Mitigation • LEED Certification Project Management

LEED APs

LEED Projects

ENERGY STAR®

• 100+ LEED Accredited Professionals Nationwide

• 69 LEED Projects • 17 Million SF

• 104 ENERGY STAR Buildings

16 | Cassidy Turley

• 25.6 Million SF

Sustainability Powerful Ideas® Campaign

Sustainability Spectrum Reuse & Recycling

Supply Chain Awareness

• Waste reductions • Take Back and reuse initiatives Programs

Low

Imp

• Sustainable Procurement Policies

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

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

Hig

• Sustainability Financial Modeling

h Im

pac

t

• “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.”

Partnerships

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Site Visits

18 | Cassidy Turley

Site Visits

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