Offering Brochure - CBRE Marketplace

Investment Summary
11 Year triple Net Lease Investment Opportunity Mission Critical
8800 Tinicum Boulevard | Philadelphia, PA
Operations Center
C A P I T A L M A R K E T S | I N S T I T U T I O N A L G R O U P

THE OPPORTUNITY
CBRE is pleased to present the acquisition opportunity of 8800 Tinicum Boulevard (the
“Property” or the “Tinicum Operations Center”), a state-of-the-art bank operations and data
center facility located along Interstate 95 in the “International Airport Corridor” section of
Philadelphia, PA. The Property is fully-leased to PNC Bank, National Association, a leader in
the financial services business (the “Tenant”). The Tenant has been in continuous occupancy of
the Property since 1997 and leases the entire property through December 31, 2024, with one
additional extension option through December 31, 2034. The triple-net lease has a remaining
term of eleven (11) years with no provision for termination and provides for average annual
net rent escalations of 4.2% from 2013 through the lease expiration in 2024. The Property
provides the Tenant 441,000 square feet of high-tech office, operations and robust data center
space along with a total of 1,274 surface parking spaces situated on a 31.6 acre site.
Situated within the Tinicum section of southwest Philadelphia along Tinicum Boulevard just
a few thousand yards west of the Philadelphia International Airport, and directly adjacent
to Interstate 95, the Property features superior regional access and boasts a location within
one of Philadelphia’s most important centers for commerce. This offering presents a welltimed
opportunity comprised of a high-quality office/operations and data center asset, an
intrinsically valuable location and the much sought-after security of a long-term cash flow
secured by an internationally-recognized tenant with significant net worth and a superior
credit rating: A, A-3, A+ from S&P, Moody’s and Fitch, respectively.
ASSET PROFILE
PROPERTY SUMMARY
Address:
8800 Tinicum Boulevard
Philadelphia, PA 19153
Leased: 100%
Net Rentable Area: 441,000
Number Of Stories: Five (5)
Site Size:
31.6 Acres
Year Built: 1997 and 2000
Year Renovated:
Ongoing & Continuous
Parking:
1,274 surface spots
Parking/Ratio: 2.9/1,000
LEASE SUMMARY
Tenant:
PNC Bank, N.A.
Lease Type:
Triple Net
Lease Commencement: December 11, 1997
Lease Expiration: December 31, 2024
Remaining Term:
11+ Years
Extension Options: One 10-year option
2013 Noi: $5,163,000
2 11 Year TRIPLE Net Lease Investment Opportunity

I n v e s t m e n t S u m m a r y
Location
The Property is located just west of the Philadelphia International Airport in the southwest section of Philadelphia County. The Property, developed by Liberty Property Trust for the Tenant
during 1997 and expanded in 2000, has substantial frontage and visibility along Interstate 95. The Route 291 (Exit 10) of Interstate 95 (northbound) is three minutes south of the Property
and the Bartram Avenue (Exit 12B) of Interstate 95 (southbound) is located directly adjacent to the Property.
BARTRAM AVENUE
90TH STREET
89TH STREET
88TH STREET
86TH STREET
TINICUM BOULEVARD
PHL Airport
Employee
Parking
Expansion
Parking Field
Phase 3
100,000 SF
(Planned)
Expansion
Parking Field
EXIT RAMP
Phase 2
161,000 SF
Phase 1
280,000 SF
AIRPORT EXIT RAMP
INTERSTATE 95 SOUTH
INTERSTATE 95 NORTH
3

INVESTMENT HIGHLIGHTS
STABLE AND PREDICTABLE, LONG-TERM CASH FLOW
The Property is fully leased to PNC Bank, N.A., a recognized leader in the financial services
industry through December 2024, with an additional extension option through December
2034. The favorable, triple-net lease which does not include a termination option, provides
for average annual rent steps equivalent to 4.2% from the current below-market net rent of
$9.00/SF, thereby supplying investors with a long-term, stable and predictable cash flow. The
Property’s triple-net lease will also afford the new owner with relative ease of management,
as the tenant is contracted to address virtually all of the building’s maintenance and repairs
with the exception of roof and structural repairs/replacements which are the responsibility
of the landlord.
TENANT: LEADING PROVIDER OF INVESTMENT MANAGEMENT SERVICES
The Tenant is a leader and pioneer in the financial services and investment management
business and is headquartered in Pittsburgh, Pennsylvania. The Tenant is publicly traded on
the New York Stock Exchange (NYSE: PNC), employs 52,000 people and had 2011 net
income of $3.1 billion. PNC is rated “A” by Standard & Poors and A-3 Positive by Moody’s
and A+ by Fitch. PNC owns 25% of the investment management firm BlackRock.
STATE-OF-THE-ART Operations/DATA CENTER
Originally built as PNC’s regional Operations Center for Eastern Pennsylvania, New Jersey
and Delaware, the Center was designed to extraordinarily high reliability and
security standards. Today this facility continues to operate in the same fashion for the
Tenant supporting mission critical operations for the Greater Philadelphia area. PNC
operates five such facilities throughout their footprint; the Tenant regards the Tinicum location
as the second most critical facility. The site and buildings are designed to run
24x7x365 without interruption. The tenant has continuously upgraded and improved the
asset to meet current and expanding technology requirements from this mission critical
location.
4 11 Year TRIPLE Net Lease Investment Opportunity
HIGHLY VALUED MASS TRANSIT/TOD LOCATION
The PNC Bank Operations Center is located a short walk from the Eastwick station of
the SEPTA Airport Line, providing direct access to several transit arteries, numerous
neighborhoods and bedroom communities and the deep labor pool of the City. The
Eastwick Station is 10 minutes from University City (West Philadelphia); 14 minutes from
the 30th Street Station stop (Amtrak and the regional rail); 19 minutes from Suburban
Station (Center City and the Broad Street subway) and 24 minutes from the Temple
University stop (North Philadelphia). By way of this transportation infrastructure, over half
of the City’s population of 3 million persons and the corresponding labor pool is within a
24 minute train ride of the Property.

I n v e s t m e n t S u m m a r y
EXPaNDABILITY and divisibility
The site was originally planned and approved for additional density. The plans allowed
for the addition of another 100,000 SF (5-story) building. Parking is expandable by over
1,000 spaces on excess land, which is encumbered by the lease, and thus part of this
offering. The City approvals would need to be renewed should the Tenant wish to expand.
The building has three entrance points with adjacent parking fields and was designed to
allow for multi-tenant use.
SIGNIFICANT CAPITAL IMPROVEMENTS
Over the past several years, many millions have been invested at the Property by the
Tenant. Over the next six months, another $1.5-$2 million will be invested in various
systems. The Tenant recently replaced two of the six generator sets and has upgraded/
replaced major portions of the HVAC system.
IRREPLACEABLE NORTHEAST CORRIDOR LOCATION
The offering of the Property presents investors with a tremendous opportunity to acquire
a premier operations and data center with truly irreplaceable location in the heart of the
I-95/Northeast corridor of the United States.
CITY OF PHILADELPHIA: PRO-BUSINESS ENVIRONMENT
The Property is located in the Philadelphia MSA, the fifth-largest metro area in the
U.S. and a major regional employment center with more than 30,000 businesses that
account for approximately 2.9 million jobs. Philadelphia’s pro-business leadership and
investment in the future have earned it a national reputation as one of the best major
metros in the country for employers to do business and for families to live and work.
As a result, the region is home to an unmatched concentration of corporate America,
including the corporate headquarters locations for several Fortune 500 corporations—
AmeriSourceBergen, Comcast, Sunoco, CIGNA, Vanguard, Aramark, Lincoln National,
Air Products, Crown Holdings, UGI, Sungard Data Systems, Universal Health, Unisys,
Airgas and VWR Scientific.
CRITICAL REGIONAL ACCESSIBILITY
The Property benefits from a location that boasts proximity to three major highways. Its major
thoroughfares include Interstate 95 (adjacent southeast), Interstate 476 (five miles to the south
via Interstate 95) and Tinicum Boulevard (U.S. Route 291). These roadways offer direct access
to every other major thoroughfare in the region which provide direct access to New York City
(85 miles to the north via the PA Turnpike), the City of Philadelphia’s CBD (5 miles north along
I-95) and the Central New Jersey area such as Princeton and Trenton (via Route 1 North). As
a result, the Property is highly accessible from all directions.
Building BUSINESS FUNCTIONS
PNC Bank utilizes the Property as its sole Operations Center for the region including
Eastern Pennsylvania, all of New Jersey and the Northern half of Delaware. There are
approximately 900 employees at the Property throughout the day. The most critical
function performed at the Property is the oversight of the entire ATM network operations
in the region, as well as the ATMs at all Wawa Food Markets. PNC Bank operates
its check processing and the related deposit services department within the Property.
Additionally, the PNC Bank Credit Administration Center is located within the Property.
The Credit Administration Center provides administrative and support services and
loan servicing for commercial business loans and commercial real estate loans. PNC
Bank operates its wealth management clearing services, its credit review services and
the PNC Bank Wire Transfer department from within the Property. Lastly, PNC Bank
also performs credit fraud investigations and anti-money laundering reviews from the
Property.
Tax Increment Financing (“tif”)
The PNC Bank Operations Center was originally developed and partially financed
with the assistance of the Philadelphia Authority for Industrial Development. The TIF
financing effectively rebates the vast majority of real estate taxes paid by the Tenant to
the landlord during calendar years 1997-2014. The projected amount is approximately
$1.25 million during each year and expires on December 31, 2014.
DESIRABLE CORPORATE NEIGHBORHOOD
Based in the Southwest section of Philadelphia County, the immediate area around
the Property provides businesses with a desirable high-tech and corporate address.
Specifically, there is a significant concentration of corporate America located within the
immediate area, which includes Boeing, Kimberly Clark, U.S. Airways, Keystone Mercy
Health, Holly Corporation/Sunoco, AIG, The City of Philadelphia, the Transportation
Security Administration (TSA), Wells Fargo, Oracle Corporation, PNC Bank, N.A, and
numerous other business enterprises.
5

11 Year Absolute Net Lease Investment Opportunity
Eastwick
Rail Station
Center City - Philadelphia
Michael Hines
Executive Vice President
215.561.8952
michael.hines@cbre.com
Robert Fahey
Executive Vice President
215.561.8951
robert.fahey@cbre.com
Russell Ingrum
Vice Chairman
Managing Director
713.787.1969
russell.ingrum@cbre.com
CBRE philadelphia
Two Liberty Place
50 S. 16th St.
Suite 3000
Philadelphia, PA 19102
www.cbremarketplace.com/8800tinicum