5656 West John Cannon Drive, Salt Lake City, Utah 84116

5656 WEST JOHN CANNON DRIVE, SALT LAKE CITY, UTAH 84116

INDUSTRIAL INVESTMENT OPPORTUNITY | CLASS A FACILITY | 457,320 SQUARE FEET | 100% LEASED

May 2021

OFFERING MEMORANDUM Newmark (the “Agent”) has been engaged as the exclusive sales representative for the sale of 5656 West John Cannon Drive (the ”Property”) by ‘Ownership’ (the “Seller”). This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (May 2021) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property 5656 WEST JOHN CANNON DRIVE, SALT LAKE CITY, UTAH 84116 will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or INSTITUTIONAL INVESTMENT CONTACTS offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Kyle Roberts, CCIM, SIOR Luke Burbank Seller reserves the right to change the timing and procedures for the Offering Executive Managing Director Executive Managing Director process at any time in Seller’s sole t 801 578 5525 t 801.578.5522 discretion. Seller shall have no legal [email protected] [email protected] commitment or obligations to any party reviewing this Memorandum, UT Lic. # 5474336-SA00 UT Lic. # 6922585-SA00 or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Bret Hardy Jim Linn Property has been fully executed Executive Managing Director Executive Managing Director and delivered by Seller and the Purchaser thereunder. t 213-804-7815 t 213-248-3900 This Memorandum and the contents, [email protected] [email protected] except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting Andrew Briner Kevin Shannon this Memorandum, you agree that you will hold and treat it in the strictest Executive Managing Director Co-Head, U.S. Capital Markets confidence, that you will not forward, t 925-708-8316 t 310-491-2005 photocopy or duplicate it, that you will not disclose this Memorandum [email protected] [email protected] or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to DEBT & STRUCTURED FINANCE make a proposal and from whom you have obtained an agreement David Milestone Brett Green of confidentiality) without the prior Vice Chairman Senior Managing Director written authorization of Seller or Agent, and that you will not use this t 310-491-2015 t 310-491-2009 Memorandum or any of the contents [email protected] [email protected] in any fashion or manner detrimental to the interest of Seller or Agent. Table of Contents

EXECUTIVE SUMMARY 01 PROPERTY PROFILE 02 TENANT SUMMARY 03 AREA OVERVIEW 04 MARKET HIGHLIGHTS 05 INVESTMENT ANALYSIS 06

01EXECUTIVE SUMMARY The Offering

Newmark is pleased to present the unique opportunity to acquire 5656 West John Cannon Drive (“XR1”, “The Property” or “Project”), a recently constructed, multi- tenant, Class A distributuion facility strategically located in the Airport submarket of Salt Lake City, UT.

Built in 2019, the building totals 457,320 square feet and is situated on 30.57 acres with immediate access to I-80, I-15, and Salt Lake International Airport. The Property is equipped with modern industrial features including 36’ clear heights and offers cross dock loading capabilities with ample parking for trailers and automobiles.

XR1 is 100% leased to two national tenants with 5.1 years of average remaining lease term and no tenant rollover until April 2025. Moreover, XR1 will allow an astute investor to accretively finance the acquisition for outsized risk-adjusted returns.

6 Executive Summary Executive Summary 7 Investment Highlights CORE ASSET FUNCTIONALITY

• XR1 exemplifies the highest-quality industrial product in the Salt Lake City market

• State-of-the-art industrial design with high functionality and future divisibility

• Modern cross-dock industrial features, excess trailer parking and 2.1% high-finish office space

STRATEGIC LOGISTICS LOCATION

• Salt Lake City has been deemed the “Crossroads of the West”

• 19% of the nation’s population is within a twelve hour drive-time

• Significant corporateoccupiers in the immediate vicinity validate this location as logistically advantaged and highly desirable

ROBUST SALT LAKE CITY MARKET FUNDAMENTALS

• The direct vacancy rate has remained steady at an impressive 3.8%

• 792,000 square feet of positive net absorption in Q1 2021 - second best Q1 performance in Salt Lake City history

• 13% rent growth in the last 12 months

8 Executive Summary DURABLE INCOME FROM NATIONAL CREDIT TENANTS

• 5.1 years of weighted average lease term remaining

• No tenant rollover until April 2025

• Two established tenants with national footprints

• SALT LAKE CITY - PRO-BUSINESS ENVIRONMENT INVESTMENT SNAPSHOT • Ranked #2 Best Economy by U.S. News & World Report in 2020 and #3 Best State for Business by Forbes 457,320 SF 36’ TOTAL BUILDING AREA CLEAR HEIGHT • Unemployment rate of 3.1% (5.5% below the national average) • Low, flat-rate income and corporate tax of below 5% 30.57 ACRES 5.1 YEARS TOTAL LAND AREA WALT

2019 $0.48 YEAR BUILT CURRENT IN-PLACE RENT (NNN)

100% $2,660,086 OCCUPANCY YEAR 1 NET OPERATING INCOME

9,795 (2.1%) OFFICE SQUARE FEET

Executive Summary 9 High-Image Core Building Profile

STATE-OF-THE-ART DESIGN AND FEATURES

• Built in 2019 - Instituionally owned and operated since inception

• Cross Dock Loading Configuration

• 83 Dock High Doors - 1 per 5,500 SF

• 36’ Minimum Clear Height

• 9,795 (2.1%) office finish with no mezzanine space

• 58 On-Site Trailer Parking Stalls

• ESFR Fire Suppression System

10 Executive Summary 100% Leased to Two National Tenants

XR1 provides investors with durable and predictable income from two committed tenants with no rollover until April 2025.

Suite 100 Size 353,720 % of Property 77.3% Current Base Rent $0.47 NNN Lease Expiration 12/31/2026 WALT 5.5 Years

Suite 500 Size 103,600 % of Property 22.7% Current Base Rent $0.54 NNN Lease Expiration 4/30/2025 WALT 3.8 Years

XR1’s rent roll is comprised of two tenants, each possessing a national footprint and proven business model. Investors have an excellent opportunity to generate stable cash flow from a newly constructed, low-touch property, fully leased on a Triple-Net basis.

Executive Summary 11 STRATEGIC SALT LAKE CITY AIRPORT MARKET LOCATION

LOCAL, REGIONAL AND NATIONAL CONNECTIVITY XR1 is proximate to the region’s major transportation infrastructure, providing direct access and serviceability to Greater Salt Lake City and neighboring regions.

I-80 4 Minutes Salt Lake International Airport 8 Minutes State Road 201 8 Minutes I-15 12 Minutes

The Property immediately borders the Utah Inland Port area, which sits at the intersection of two interstate freeways, major national railways, and an international airport. This connectivity bolsters the area’s serviceability and generates demand for warheouse and distribution centers like XR1.

STRONG REGIONAL DEMOGRAPHICS Salt Lake County offers a deep, skilled labor pool and favorable business environment for companies of all sizes.

Current Population Estimate 1.16 M Median Household Income $74,865 Median Home Value $305,700 Ten-Year Population Growth 12.70%

12 Executive Summary UNRIVALED ACCESSIBILITY Utah is known as the “Crossroads of the West” for its excellent connectivity to the entire nation. Salt Lake City, specifically, benefits from a favorable geographic location that provides easy access to primary commercial hubs across the country. This connectivity has helped established the region as a global marketplace for its ability to facilitate an efficient flow of goods through its vast transportation networks. All major metros in the Western Region, and many major metros in the Mid-West, are within a 24 hour drive time.

SEATTLE, WA Ground Distance: 840 Miles Ground Time: 12.5 Hours BILLINGS, MT BISMARCK, ND (! Ground Distance: 567 Miles Ground Distance: 922 Miles PORTLAND, OR Ground Time: 8.5 Hours Ground Time: 14 Hours NATIONAL Ground Distance: 766 Miles Ground Time: 11.5 Hours (! BOISE, ID DRIVE TIMES Ground Distance: 339 Miles Ground Time: 5 Hours ¨§94 (! (! RENO, NV Ground Distance: 516 Miles (! POCATELLO, ID Ground Time: 7 Hours Ground Distance: 164 Miles ¨§84 Ground Time: 2.5 Hours SAN FRANCISCO, CA (! Ground Distance: 735 Miles CHEYENNE, WY §5 SALT LAKE CITY, UT Ground Time: 11 Hours ¨ ¨§80 Ground Distance: 440 Miles LINCOLN, NE (! \! Ground Time: 6.5 Hours Ground Distance: 879 Miles (! Ground Time: 13 Hours SAN JOSE, CA (! ¨§80 (! Ground Distance: 768 Miles LAS VEGAS, NV ¨§15 (! 70 (! Ground Time: 11 Hours Ground Distance: 420 Miles ¨§ Ground Time: 6 Hours (! LOS ANGELES, CA DENVER, CO KANSAS CITY, MO Ground Distance: 688 Miles Ground Distance: 1,073 Miles ! Ground Distance: 521 Miles Ground Time: 10 Hours ( Ground Time: 16 Hours Ground Time: 8 Hours SAN DIEGO, CA (! Ground Distance: 750 Miles ¨§40 (! (! Ground Time: 11 Hours (! (! OKLAHOMA CITY, OK Ground Distance: 1,187 Miles Ground Time: 17 Hours Drive Time Population ¨§10 ALBUQUERQUE, NM (! 4.5 Hours 3,788,586 PHOENIX, AZ Ground Distance: 598 Miles DALLAS, TX Ground Distance: 663 Miles Ground Time: 10 Hours Ground Distance: 1,243 Miles 9 Hours 14,336,518 Ground Time: 10 Hours ¨§35 Ground Time: 19.5 Hours 12 Hours 61,318,341 (! (! 15 Hours 80,421,393 HOUSTON, TX 18 Hours 92,197,900 SAN ANTONIO, TX Ground Distance: 1,477 Miles Ground Distance: 1,303 Miles Ground Time: 23 Hours 21 Hours 139,632,755 Ground Time: 20.5 Hours 24 Hours 183,375,089

Drive times are based on speed limits and an average traffic flow. STRONG SALT LAKE CITY MARKET FUNDAMENTALS Current Prior Year Ago 12-Month Quarter Quarter Period Forecast FAST-GROWING INDUSTRIAL MARKET Inventory 157.6 MSF 156.7 MSF 151.9 MSF • The Salt Lake City industrial market boasts strong Direct Vacancy fundamentals, with over 157 million square feet of total 3.8% 3.7% 3.5% industrial inventory. Rate Quarterly Net 752,910 3,080,844 1,458,887 • The overall Salt Lake City industrial market continues to Absorption (SF) Average Asking realize positive net absorption with 791,000 square feet $0.61 $0.59 $0.54 Rent PSF being absorbed in Q1 2021, which was the second-best Under 9,488,296 8,555,161 7,794,560 first quarter for positive net absorption historically. Construction (SF)

• Salt Lake City’s net absorption totaled nearly 5.7 million Deliveries (SF) 826,142 3,526,925 965,533 square feet in Covid impacted 2020.

• Total direct vacancy for Sale Lake City is at an impressive 3.8%, remaining essentially flat compared to 2020 rates, despite a record amount of new deliveries. NOTABLE CORPORATE NEIGHBORS • Surging tenant demand continues to spark new Blue-Chip tenants have a significant development in the Salt Lake City market. Salt Lake presence in Northwest Salt Lake City. currently has 9.5 Million square feet of industrial product under construction, with almost 50% of the space already pre-committed. BUSINESS-FRIENDLY CITY Salt Lake City’s pro-business Salt Lake City has experienced environment and strong market fundamentals continue to attract world- approximately 13% rent growth in renowed companies and drive economic the last 12 months. growth.

14 Executive Summary N

CORPORATE NEIGHBORS

Executive Summary 15 Offering Guidelines

This offering is being distributed exclusively by Newmark Capital Markets to a select group of pre- qualified investors. By taking receipt and possession of this offering memorandum, the prospective registered investor has agreed to treat and utilize the information and data contained in this document in strict confidence.

Following the distribution of materials, Newmark Capital Markets will be available to assist prospective investors and their consultants with Property inspections and to respond to questions regarding information contained in the Offering Memorandum.

This investment opportunity is being offered unpriced on an as-is, where-is basis. Newmark Capital Markets will notify qualified prospective purchasers of the initial bid date.

16 Executive Summary Executive Summary 17

02PROPERTY PROFILE Property Profile

Delivered in 2019, XR1 is a premier industrial asset in Salt Lake The Property features 36’ Clear Heights, an ESFR Fire Suppression City’s Airport submarket that was masterfully designed for optimal System, and clerestory windows providing for plentiful natural effeciency and flexibility. Totaling 457,320 square feet, the project light supplemented by modern skylights throughout the building. has a wide array of attractive physical qualities that will secure The Project also offers investors the opportunity to further demise high-quality tenants and command market leading rents. space to cater to tenants of various size ranges.

The building was tailored to meet the demands of tenants in the modern logistics/distribution space by offering excellent loading capabilities, a cross-dock configuration, and ample parking for both ±120’ trailers and automobiles. 0 41’8” 60’ John Cannon Dr 5656 West John Cannon Drive 56’ 370’ 457,320 SF

1,236’ 60’ ±200’

20 Property Profile Site Plan

Dock-High Dock-High Grade-Level Office Door with Bumpers, Door Area Shelters & Levelers

N ±120’ 0 41’8” 60’ John Cannon Dr 5656 West John Cannon Drive 56’ 370’ 457,320 SF

1,236’ 60’ ±200’

Property Profile 21 Property Summary

Address 5656 West John Cannon Drive

APN 07-26-426-001-0000

Acreage 30.57 Acres

Number of Suites 2

Rentable SF 457,320

Office SF 9,795 (2.1%)

Occupancy 100%

Year Built 2019

Clearance Height 36'

Dock-High Doors 83 (9' x 10')

Grade-Level Doors 6 (14' x 16')

Construction Type Concrete Tilt Up

Roof 45 Mil TPO with R30 Rigid Insulation

Building Depth 370'

Building Length 1,236'

Power 2,200 Amps, 480/277 Volts, 3 Phase

Trailer Parking 58 Stalls

Auto Parking 258 Stalls

Column Spacing 41'8" x 56'

22 Property Profile Property Profile 23

03TENANT SUMMARY Tenant Summary TENANT OVERVIEW

Suite 500

Square Feet 103,600

% of Property 22.7%

Current Base Rent (PSF/Month) $0.54 NNN

Lease Expiration 4/30/2025

Headquarters Scranton, PA COMPANY OVERVIEW Website kanelogistics.com In 1930, Edward Kane traded his car for a used truck to provide local hauling to valley regions of Northeast Pennsylvania. That was the beginning of Kane Freight Lines. Today, Kane Logistics (KANE) is one of the nation’s leading 3PL SUITE AREAS providers — managing a truckload fleet of 150 power units and 500 trailers, Warehouse Area 101,100 and operating six million square-feet of 3PL warehousing space across 26 distribution center locations. Ground Floor Office ±2,500 Total Footprint 103,600 Kane Logistics’ six million square feet are within both dedicated distribution centers (single client) and shared distribution centers (multiple clients) spanning Second Floor Office 0 every region of the U.S. Their nationwide network provides consumer product Total Suite Area 103,600 companies with the national distribution infrastructure they need to get products to market quickly and efficiently. Total Office Area ±2,500

KANE has over 1,100 employees and an estimated annual revenue of $126.3M % Office 2.4% per year. KANE finished 2019 with an RIR (Recorded Incident Rate) of 1.97, well below the industry average of 4.6 for this key safety measure. Also in 2019, SUITE AREAS Kane was featured in the Transport Topics Top Dry Storage Warehousing Firms and was named by Multichannel Merchant as a Top 3PL provider. Clear Height 36'

Dock-High Doors 24

Grade-Level Doors 2

26 Tenant Summary Tenant Floorplan N

Kane Logistics 103,600 SF

Tenant Summary 27 Tenant Summary TENANT OVERVIEW

Suite 100

Square Feet 353,720

% of Property 77.3%

Current Base Rent (PSF/Month) $0.47 NNN

Lease Expiration 12/31/2026

Headquarters Knoxville, TN COMPANY OVERVIEW Website redstagfulfillment.com Founded in 2013 by Eric McCollom, Red Stag Fulfillment was the creation of two entrepreneurs who were successfully running several e-retail businesses, but could not find a fulfillment company that provided the service level and SUITE AREAS quality they expected and demanded. After trying three separate fulfillment Warehouse Area 346,425 providers, and researching dozens of others, they soon realized there was no company that could provide the level of quality and dependability they desired. Ground Floor Office 7,295 Thus, Red Stag Fulfillment was created. Total Footprint 353,720

Red Stag Fulfillment is a cloud-based order fulfillment company for B2C and Second Floor Office 0 B2B online retailers. Red Stag Fulfillment has a national network of four Total Suite Area 353,720 fulfillment centers located in Los Angeles, CA, Salt Lake City, UT, Knoxville, TN, and Harrisburg, PA. Total Office Area 7,295

Red Stag Fulfillment has been able to differentiate itself through it’s custom % Office 2.1% dashboard, which allows clients to easily integrate with a long list of eCommerce platforms and ERP systems, and Red Stag Fulfillment’s proprietary cloud-based SUITE AREAS system (RSF OPS). These technological advancements have helped Red Stag Fulfillment produce a 99%+ accuracy rate on orders shipped. Clear Height 36'

Dock-High Doors 59

Grade-Level Doors 4

28 Tenant Summary Tenant Floorplan N

Red Stag Fulfillment 353,720 SF

Tenant Summary 29

04AREA OVERVIEW SALT LAKE CITY OVERVIEW

Salt Lake City is known as the “Crossroads to the West” due to its central location in the Western United States. The First Transcontinental Railroad, completed in 1869 at Promontory Point on the north side of the Great Salt Lake, fueled mass migration to the Salt Lake City region in the 19th century, with mining and railroad operations providing a strong source of income. Today, Salt Lake City’s economy is diverse, driven by technology, government, trade, transportation, utilities, industrial banking, and professional and business services.

As a whole, the State of Utah is known for its dynamic economic climate, well-run state government, young, highly-educated work force, and business friendly environment. Since 2010, Forbes has consistently ranked the state as one of the top 5 “Best States for Business.” Utah features low costs of doing business, countless economic incentives, relatively affordable real estate costs, low wages, competitive corporate income and sales tax, and affordable health care insurance.

DEMOGRAPHICS The state of Utah has a population of 3.27 million. Approximately 2.45 million people (75% of the population) live along the Wasatch Front, a four-county geographic area surrounding Salt Lake City. The state has the fastest growing population in the country, which is also the youngest. Major universities in the Greater Salt Lake area include Brigham Young University, Utah Valley University, Salt Lake Community College, Westminster College, Eagle Gate College, Broadview University and The University of Utah. These universities, located within 30 minutes of the Property, provide a constant flow of highly educated employees.

Why Invest in Utah

#4 Best State Overall AAA Credit Rating #1 Best State for Business U.S. News & World Report, 2019 Standard & Poor’s, 2020 2010, 2011, 2012, 2014, 2015 & 2016 Forbes, 2016

#3 Best Markets #1 Pro-Business State #1 Best State for for Real Estate Entrepreneurs Investment Pollina and AEDI, 2017 Amazon, 2019 Urban Land Institute

32 Area Overview 3,273,000 #1 75% Population Fastest Growing Population of State’s Population (2.45M) Live in Greater Salt Lake Region 91% 31.2 3.6% have a High School Diploma, 68% Median Age Lowest Unemployment Rate have College Experience, 31% have (Lowest in the Nation) in U.S. (BLS, December 2020) a Bachelor’s Degree

Best Economic #1 Cities Poised to Top 10 Best Cities To Outlook Become Tomorrow’s Recover From Coronavirus ALEC, 2020 Tech Meccas (Forbes, 2020) Forbes, 2017

Top 10 Housing #10 America’s Fastest #1 State For Job Market Growing Cities Growth Forbes, 2020 Forbes, 2017 U.S. BLS, August 2019

Area Overview 33 ECONOMIC OVERVIEW Since 2010, Forbes has consistently ranked Utah as one of the top five “Best States for Business.” The state benefits from light regulation and energy costs that are 23% below the national average. Employment expanded 3.1% year-over-year, making the state the national leader for job growth. Utah has been a tech destination for years, with companies such as eBay, Oracle, Microsoft,Twitter, Facebook and Amazon building up a heavy presence in the state as a low-cost alternative to California. Today, there are over 7,000 tech and life sciences companies located in Utah. Venture capital firms invested $1.1 billion in Utah in 2019—more than three times the average investment over the past four years. From the end of the great recession in 2009, venture capital investment in Utah companies has grown by 500%, nearly double the national growth rate. The number of deals per year has also more than doubled in the same time period.

Utah’s economic performance is impressive on many levels and speaks to the State’s ability to compete in global markets and attract new business. Companies that have recently expanded within or entered Utah include Adobe, Ebay, Amazon, Goldman Sachs, Fidelity and Twitter. This tenant migration has had a notable impact on the region’s unemployment rate, which at 3.6% (December 2020) is the lowest rate in the U.S.

Top Employers in Utah

34 Area Overview Salt Lake Ranked Best 2nd Most Livable State Place to Live & Park City CQ Press Ranked Best Town Ever Outside Magazine

15 World-Class Ski Resorts #1 Hiking City - Salt Lake City National Geographic Adventure

LIFESTYLE More Than 9 Million Acres #1 State for Future Both the state of Utah and Salt Lake City have been cited of National Forest Livability by virtually every prestigious publication as one of the top Gallup Wellbeing destinations in the nation to live, work and play. Life in Utah offers an ideal mix: job opportunities, low cost of living, low crime rates, affordable higher education, top- notch health care, and cultural diversity. Best of all, Salt Lake City offers a side-by-side mix of outdoor recreation Salt Lake Ranked One of the 5 National Parks and urban entertainment. Outside magazine ranked Salt Healthiest Metro Areas Lake City as one of the “Best Place to Live” in 2014. Atlantic Cities Magazine Outside also named Salt Lake City among America’s “10 Best Big Cities for Active Families” for its commitment to open space, smart solutions to sprawl and gridlock, can-do community spirit, and an active embrace for an adventurous life. 43 State Parks Utah has 6th Lowest Crime Rate in the U.S. FBI Area Overview 35 TRANSPORTATION AIRPORT Often referred to as the “Crossroads of the West”, Salt Lake City is located nearly equidistant from Los Salt Lake City International Airport (SLC), located four miles west of downtown, is within 2.5 hours Angeles, Denver, San Francisco, Portland, Phoenix from half of the nation’s population and is within a 30-minute drive of nearly 1.3 million jobs. SLC serves and Seattle, making it an important trade and shipping more than 26.8 million passengers annually and is ranked the 23rd busiest airport in North America hub to the western United States. Transportation in and 85th busiest in the world in terms of passenger numbers. The airport serves as the western hub Salt Lake City consists of a wide network of roads, a for Delta Air Lines. Ten passenger airlines fly into Salt Lake City International Airport. major international airport, an extensive bus system, In 2014, Salt Lake City broke ground on an ambitious, $4.1 billion Terminal Redevelopment Program. a light rail system, and a commuter rail line. Designed by HOK, the new SLC will replace the five existing, aging concourses with two modern, linear concourses intended to accommodate the ever-growing demands of a modern airport. Phase I of the project was unveiled in 2020, with the remainder scheduled for completion by 2024.

36 Area Overview FREEWAYS westernmost point from which all West Coast cities FrontRunner, the high speed commuter rail system, Four major freeways located within Salt Lake City can be directly served by rail without backtracking. first opened in 2008 and runs 89 miles from the are vital to the efficient movement of goods and Union Pacific is the major freight carrier throughout northern border of Weber County through the Salt materials throughout the Wasatch Front. Interstate Utah and Amtrak provides passenger service. Lake City Intermodal Hub and south to Provo. The 15 (extending north to Canada and south to Mexico) Clift and Felt Buildings are located one mile from the runs west of downtown, while Interstate 80 Salt Lake Central Station, which can also be reached (extending east to New York City and west to San MASS TRANSIT via the TRAX Blue Line. Francisco) enters near the airport and exits to the Salt Lake City’s mass transit service is operated east through Parley's Canyon. Utah State Route 201 by the Utah Transit Authority (UTA) and includes a Pleasant View runs east-west along the border with West Valley bus system, light rail, and a commuter rail line. The City. Interstate 215, a beltway, traverses the city’s Ogden Ogden LEGEND Brookings Institution in 2011 rated Salt Lake City’s Roy TRAX Blue Line 701 Multi-Day Parking northwest and west neighborhoods and encircles TRAX Red Line 703 Day Parking mass transit system as the third-best in the nation Clearﬁeld TRAX Green Line 704 Free Fare Zone S-Line Streetcar 720 the city’s southern suburbs. FrontRunner 750 at connecting people to jobs. Layton 801-743-3882 (RIDE-UTA) rideuta.com rideuta Utah plays a key part in the transfer of consumer Farmington UTA’s bus system extends throughout the Wasatch Woods Cross Arena Temple Square goods and raw materials throughout the United Front from Brigham City in the north to Santaquin in Airport

Power Fairpark States. Utah is home to approximately 760 trucking University Planetarium City Center Salt Lake City Medical Center the south and as far west as Grantsville, as well as Jackson/Euclid North Temple Bridge 1940 W. North Temple Old companies. Three major interstates (I-15, I-80 and GreekTown Gallivan Plaza east to Park City. Approximately 62,000 people ride Salt Lake Central Fort Douglas

Library Trolley 900 East Stadium South CampusUniversity I-70) connect in the state and access in all directions the bus daily. Courthouse is readily available. Movement of consumer goods West Valley City 900 South and raw materials is able to reach the west coast The 45.2-mile light rail system, (TRAX) consists of Ballpark River Trail Central Pointe

three lines (Blue Line, Red Line and Green Line) South Salt Lake 300City East 500 East 700 East Sugarmont Fairmont in a one- to two-day delivery time. Movement of Redwood Junction Millcreek goods from the west coast to the east can be which are serviced by a total of 50 stations. Daily Decker Lake South Salt Lake ridership averages 64,200, making TRAX the ninth West Valley Central Meadowbrook made in a one-day range from Utah to Denver and Murray North most-ridden light rail system in the country. Both the Murray a four-day range from Utah to Atlanta. Murray Central

Clift and Felt Buildings are located less than one block Fashion Place West

Bingham Junction from the Gallivan Plaza Station. From this location, Midvale Fort Union RAIL Historic Gardner Midvale Center passengers are able to travel south towards Draper West Jordan West Jordan City Center Midvale Utah features more than 1,700 miles of railroad on the Blue Line, or west to SLC International Airport Sugar Factory Rd. Historic Sandy Jordan Valley Sandy Expo Sandy tracks that stretch throughout the state. These on the Green Line. 4800 W. Old Bingham Hwy.

5600 W. Old Bingham Hwy. Sandy Civic Center rail lines converge in Salt Lake County allowing South Jordan Pkwy. South Jordan Crescent View for second morning service to almost 90% of Daybreak Pkwy. South Jordan Draper Kimballs Lane the western United States. The Wasatch Front is Lehi Draper Town Center Draper an excellent interline switching route, as it is the American Fork

Orem Central

Provo Central Provo

Area Overview 37

05MARKET HIGHLIGHTS Salt Lake City Industrial Market Overview

ECONOMICALLY DIVERSIFIED MARKET SIGNALS FURTHER VIBRANCY AND INDUSTRIAL GROWTH

• Consisting of more than 157 million square feet of space, the Salt Lake City industrial market is one of the most robust growth markets in the country.

• The Salt Lake City industrial market continues to attract new businesses due to its strategic location as the “Crossroads of the West”, being within a twelve-hour drive of 19% of the nation’s population and the five major western seaports.

• Infrastructure investment as well as establishment of the Utah Inland Port Authority in 2018 set the stage for Utah to further cement its role as the “Crossroads of the West” and become a leader in the global economy by developing a statewide, generational logistics system.

• Utah is decidedly pro-business, frequently appearing at the top of the rankings for pro-business states published by Forbes, U.S. News, and CNBC. The state also receives high marks for one of the best states in which to start a business.

• Strong population growth, infrastructure development, and transportation connections to primary markets as well as fast- growth markets have helped fuel the demand of industrial-space These drivers of industrial demand occupiers. underpin a region which will experience strong growth and sustained economic prosperity.

40 Market Highlights Salt Lake City Industrial Market

SALT LAKE CITY INDUSTRIAL STATISTICS - Q1 2021

Total Direct Sublease Total Direct Net Under Planned Weighted Direct Completions Inventory Vacancy Availability Availability Vacancy Absorption Construction Construction Avg Asking Vacant (SF) YTD (SF) (SF) Rate (SF) (SF) Rate (4Q20) YTD (SF) (SF) (SF) Rental Rate Airport 18,792,487 1,310,397 7.0% 56,882 1,439,479 8.5% 293,315 0 2,146,170 3,866,497 $0.50 Bluffdale 2,076,854 37,865 1.8% 16,600 54,465 2.1% 5,000 0 434,828 851,227 $1.00 California Avenue 57,381,035 1,488,091 2.6% 171,488 1,951,635 2.6% 88,297 0 3,684,523 5,907,457 $0.63 Downtown SLC 11,205,368 642,405 5.7% 0 685,793 5.0% -80,290 0 23,000 0 $0.67 Draper 4,712,525 90,744 1.9% 15,984 106,728 1.9% 0 0 117,516 629,425 $1.04 Murray 5,431,875 114,910 2.1% 67,295 334,811 1.9% -11,580 0 0 0 $0.62 Sandy 6,325,788 75,202 1.2% 88,608 260,564 0.7% -32,234 0 116,555 121,241 $0.76 South Salt Lake 12,239,639 451,791 3.7% 0 564,395 3.7% 57,905 62,874 0 0 $0.64 Taylorsville 3,010,729 34,392 1.1% 0 34,392 1.1% 0 0 521,800 237,215 $0.74 West Jordan 11,266,153 327,492 2.9% 20,000 350,642 2.3% -64,165 0 1,331,231 5,086,969 $0.61 West Valley 25,141,754 1,354,573 5.4% 25,032 1,582,098 4.8% 567,712 763,268 1,090,470 2,662,461 $0.61 Grand Total 157,584,207 5,927,862 3.8% 461,889 7,365,002 3.7% 791,692 826,142 9,466,093 19,362,492 $0.61

Market Highlights 41 INDUSTRIAL SUB-MARKETS Salt Lake County, Utah

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( P l a n n e d )

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376 East 400 South, Suite 120 l Salt Lake City, Utah 84111 l 801.578.5555 l www.ngacres.com This document has been prepared by Newmark Knight Frank for advertising and general information purposes only. While the information contained herein has been obtained from what are believed to be reliable sources, the same has not been verified for accuracy or completeness. Newmark Knight Frank accepts no responsibility or liability for the information contained in this document. Any interested party should conduct an independent investigation to verify the information contained herein.

1/14/2021 l C:\Users\mpacker\Desktop\industrial-regions_slco.mxd - Map Data and/or Imagery Courtesy of NAIP, Esri INDUSTRIAL SUB-MARKETS Salt Lake County, Utah

") ¤£89

") 2300 North 2100 No rth ") RENTAL RATES ")

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( P l a n n e d )

0241 Miles

1/14/2021 l C:\Users\mpacker\Desktop\industrial-regions_slco.mxd - Map Data and/or Imagery Courtesy of NAIP, Esri Strong Salt Lake City Market Fundamentals

• The unemployment rate for the Salt Lake City Metro has historically stayed below the national average by a full 1.0% to 2.0% for the past decade. 12-Month • Despite the unemployment rate increasing dramatically due to 2019 2020 Forecast COVID-19 back in April 2020, the Salt Lake City metro area continued to stay below the national average throughout 2020 and into 2021 662,600 653,300 by a significant amount, coming in at 3.5% in January 2021. Employment

• Job growth has bounced back well, with a total net increase of 67,183 jobs added back to the market since April 2020, with Unemployment Rate 2.1% 3.1% financial activities, professional and business services and trade, transportation and utilities seeing the highest job growth year 3.5% 8.8% over year. U.S. Unemployment Rate

• The trade, transportation, and utilities industry–a sector that largely occupies industrial real estate–posted the second largest positive job growth thanks in part to consumers shifting their spending to eCommerce.

Salt Lake City’s economy is well poised to to bounce back to the strong economic conditions experienced pre-pandemic. With a below national average unemployment rate, strong job and population growth, and a swift vaccine rollout, Salt Lake City will see those industries beleagured by the pandemic make a robust comeback further strengthening one of the most resilient, vibrant economies in the country .

44 Market Highlights N

THE SALT LAKE CITY INDUSTRIAL MARKET IS RESILIENT While the larger Salt Lake City metro area didn’t suffer as severely as other metros across the county, due in large part to its diversified economy, certain industries suffered significantly, like much of the rest of the country. While various industries were beleagured by the effects of the pandemic, the industrial market thrived. eCommerce, distribution, logistics, and manufacturing users are the primary drivers for industrial real estate demand in Salt Lake City. With the onset of the pandemic many consumers turned to and increased their reliance on eCommerce for shopping needs, furthering boosting and accelerating the growth of eCommerce, distribution, and logistics tenants. eCommerce, which has driven significant leasing activity in the current cycle, is more important now than ever before. Many eCommerce- ready distribution projects will benefit from having the size flexibility necessary to meet continued increasing demand.

Market Highlights 45 INDUSTRIAL SUB-MARKETS Salt Lake County, Utah

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B Northwest Quadrant Fundamentals Utah State ") e Prison Site c k S tr

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e 0 1000 North t International o Airport 0 W r

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101.3 million square feet of inventory or 64.3% of the t

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South Temple

9 0 )" 0 )" )" )" d 6 )" oa 5 R of the total market inventory for bulk and medium-sized n ") 400 South o 500 S outh y a n 700 Sou th )" C distribution product is located within this area. Most on NORTHWEST QUADRANT )" Downtown SLC a ti 800 South igr Salt Lake Em HIGHLIGHTS—Q1 2021 City of the prominent local, regional, and national industrial d a ")

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( P l a n n e d )

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1/14/2021 l C:\Users\mpacker\Desktop\industrial-regions_slco.mxd - Map Data and/or Imagery Courtesy of NAIP, Esri INDUSTRIAL SUB-MARKETS Salt Lake County, Utah

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( P l a n n e d )

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1/14/2021 l C:\Users\mpacker\Desktop\industrial-regions_slco.mxd - Map Data and/or Imagery Courtesy of NAIP, Esri Airport - Growing Salt Lake City Submarket The Airport submarket, is one of the strongest submarkets in Salt Lake County and is one of the most highly desirable destinations for AIRPORTS HIGHLIGHTS—Q1 2021 institutional capital in the Western Region. Totaling 18.9 million sqaure feet, the Airport submarket accounts for approximatley 11.9% of the overall Salt Lake City market and continues to display excellent market 18.9 MSF fundamentals. INVENTORY The Airport submarket is at the epicenter of a myriad of public infrastructure projects that will be beneficial to the industrial submarket for years to come. Some of the projects include the redevelopment 11.9% OF THE OVERALL INDUSTRIAL MARKET of the Salt Lake City International Airport, the Utah Inland Port, and the redevelopment of the 5600 West arterial. Additionally, the Airport submarket is sited with direct access to I-15 and I-80, which run north/ south/east/west across the country, as well as I-215, SR-201, and 7.0% Bangerter Highway that provide access to the larger metro area. VACANCY RATE

CONTINUED STRONG TENANT DEMAND $0.50 AVERAGE ASKING RATE • Tenants are attracted to this submarket due to its immediate access to key transportation infrastructure, proximity to the blue collar work force, and modern Class-A facilities. 272,915 SF • The attractive fundamentals and location of the Airport submarket POSITIVE NET ABSORPTION has FAANG-occupier Amazon establishing a sizeable industrial footprint in the submarket. Amazon opened a 2.4-million-square- foot fulfillment center in 2018 and has grown its footprint in the submarket by an additional 1.3 million square feet since. TAKEAWAY: • The Airport submarket is coming off a strong performance in Available land for development in the Airport submarket is becoming more scarce and expensive, creating high barriers to 2020, where it experienced a total of 1.1 million square feet of new development. With vacancy rates continuing to compress positive net absorption for the year. and bulk warehouse/distribution space absorbing quickly, XR1 is positioned well to compete with new product and retain tenants in a maturing submarket.

48 Market Highlights CLASS A VACANCY IN THE AIRPORT SUBMARKET IS COMPRESSING • The Airport Class A Bulk Distribution subset totals roughly 7 million square feet and is showing a 9.4% vacancy rate today.

• Leases are pending for 525,000 square feet, which will bring the vacancy rate to 1.91%.

VACANCY VS. RENTS 10% $0.60

8% $0.54

6% $0.48

4% $0.42

2% $0.36

0% $0.30 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 Vacancy Rate Asking Rental Rate (NNN)

HEIGHTENED DEMAND IS DRIVING RENTS UPWARD • The average asking rent in the Airport submarket experienced a 3.5% compounded annual growth rate since 2017.

• Average asking rents are trending at $0.50 as of the first- quarter 2021 - a 14.6% increase since Q1 2017.

• Falling vacancy rates, rising land costs, and elevated levels of demand are putting upwards pressure on industrial rents in the Airport submarket.

Market Highlights 49 Lease Comps

3250 West Professional SLC Global Logistics Center - Exeter Summit Logistics Center - Amazon Fulfillment Center - West Meridian Commerce Center 3 201 Mountain View Park Price California XI Ace Industrial Landmark 4 Circle Building 3 Building 1 Jordan 3250 West Professional 260 North Ace Yeager Court Address 4236 West Commercial Way 6162-6312 W Beagley Road 770 South Gladiola Street 6620 West 700 North 1862 South 4800 West 5550 West 150 South 7148 West Old Bingham Highway Circle (5900 West)

City / State Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, UT Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah West Jordan, Utah

Submarket West Valley West Valley West Valley West Valley Airport West Valley West Valley West Valley West Valley Building Area (SF) 428,854 146,823 375,025 100,085 310,479 585,912 686,865 843,078 1,330,843 Land Acres N/A 8.67 22.16 7.29 17.68 34.03 35.71 N/A 76.12 Tenant My Patriot Supply Wise Company Duluth Trading Company Amazon Health Line Medical Products Amazon Web Services IQS Gateway Plastics Amazon Tenant Area (SF) 104,351 92,986 228,800 63,908 67,241 585,912 686,865 843,078 1,330,843 Year 1 Rate ($/sf/mo) $0.60 $0.54 $0.46 $0.75 $0.50 $0.43 $0.44 $0.41 $0.45 Recovery NNN NNN NNN NNN NNN NNN NNN NNN NNN Escalations N/A N/A N/A N/A 3.00% 2.50% N/A N/A 2.00% Lease Term (Months) 121 63 125 60 144 120 60 188 180 Signed Date 6/26/2020 11/8/2019 N/A 6/7/2019 10/1/2020 8/19/2020 7/7/2020 6/22/2020 9/6/2019 Start Date N/A N/A N/A 10/1/2019 4/1/2021 4/1/2021 N/A N/A 8/1/2020 Tenant - - - - - $9.00 - $5.00 - Improvements ($/SF) Free Rent (Months) 1 0 N/A 0 6 0 0 8 0 Year Built N/A 1985 2021 2019 2019 2021 2008 N/A 2020 Clear Height 36' 29' 36’ N/A 32 40' 32' 32' N/A Dock High Doors 18 13 78 0 N/A N/A 135 161 N/A Grade Level Doors 2 2 6 0 N/A N/A 8 4 N/A Lessor Meridian Venture Three Palmer Chicago Investment Hines Price Gladiola East Wasatch Group Phase 1 GLC 3 Landmark 4 Exeter Property Group USAA Real Estate Class A bulk distribution facility. Class A bulk distribution facility. Landlord is building out two offices Class A bulk distribution Class A medium Class A distribution facility. 78 135 DH and 8 GL doors. Tenant Class A bulk distribution facility. Two, Five Class A bulk distribution facility. Class A bulk distribution facility. Comments of 6,487 SF and 1,000 SF and three facility. ESFR. 4,917 SF of distribution facility. 13% DH doors and 4 GL doors. 40% initially leased 342,477 SF and Class A bulk distribution facility. Year options at Fair Rental Value. 29,296 SF of office space. ESFR. production rooms totaling 3,488 SF. office. coverage. coverage. expanded by 344,388 SF on Lease rate reflects food production area. 7/7/2020 for a total of 686,865 SF. TAKEAWAY: In the Northwest Quadrant of Salt Lake City, average rental rates currently range from $0.45 - $0.52 for large sized bulk distribution space. This region is now geographically land constrained, with substantial construction and land value appreciation. Absorption velocity and lease activity has contributed to a year over year 20’-21’ rental rate growth of 7.5%, with no sign of slowing demand.

City / State Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, UT Salt Lake City, Utah Salt Lake City, Utah Salt Lake City, Utah West Jordan, Utah

I SLC Global Logistics Center Lake Park Commerce Center 201 Mountain View Park ARA Building C XR2 I-80 Logistics Center III ARA Building B Meridian Commerce Center 3 RWK Legacy Logistics II I-215 Commerce Center B Copper Crossing II Building 3 Building 1 Building 4 2499 South 6755 West 5420 West John Cannon Drive 355 North John Glenn Road 2450 South 6755 West 4236 West Commercial Way 620 South 5700 West 2260 North 2200 West 455 South 6400 West 6620 West 700 North 5041 West 2400 South 6162 West Beagley Road Submarket West Valley Airport Airport Airport West Valley West Valley California Avenue California Avenue West Valley Airport California Avenue

Number of Buildings 1 1 1 1 1 1 1 1 1 1 1

Total RSF 634,260 585,912 533,880 503,249 497,632 431,139 428,854 383,892 375,025 374,288 311,090

Total RSF Available 0 0 0 0 0 0 324,503 0 146,225 0 31,301

% Leased 100% 100% 100% 100% 100% 100% 24% 100% 61% 100% 90%

Clear Height 36.0 36.0 36.0 36.0 32.0 36.0 36.0 36.0 36.0 32.0 36.0

Ownership Freeport West Great Basin Ventures The Moulton Company Et Al Westcore Freeport West Hamilton Partners Freeport West Black Creek Group Hines Hamilton Partners Riverbend Holdings

Year Built/ 2019 2020 2019 2017 2015 2020 2020 2019 2021 2018 2020 Renovated Asking/Deal Rate Per ------$0.48 - $0.55 - $0.65 SF/MO

Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A Class A DH Doors: 111 DH Doors: Not Specified DH Doors: 94 DH Doors: 106 DH Doors: 79 DH Doors: 74 DH Doors: 73 DH Doors: 76 DH Doors: 78 DH Doors: 60 DH Doors: 64 Comments GL Doors: 6 GL Doors: Not Specified GL Doors: 6 GL Doors: 8 GL Doors: 6 GL Doors: 6 GL Doors: 6 GL Doors: 8 GL Doors: 6 GL Doors: 4 GL Doors: 8 Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR Fire Suppression: ESFR 49% Coverage Ratio 40% Coverage Ratio 38% Coverage Ratio 43% Coverage Ratio 29% Coverage Ratio 45% Coverage Ratio 36% Coverage Ratio 38% Coverage Ratio 39% Coverage Ratio 61% Coverage Ratio 43% Coverage Ratio

52 Market Highlights TAKEAWAY: There is currently limited availability in the Northwest Quadrant for similar, newly constructed, Class A Core buildings. The few vacancies currently on the market are seeing elevated asking rents due to the high demand for logistically advantaged real estate in a thriving sub-market with excellent connectivity.

SLC Global Logistics Center Lake Park Commerce Center 201 Mountain View Park ARA Building C XR2 I-80 Logistics Center III ARA Building B Meridian Commerce Center 3 RWK Legacy Logistics II I-215 Commerce Center B Copper Crossing II Building 3 Building 1 Building 4 2499 South 6755 West 5420 West John Cannon Drive 355 North John Glenn Road 2450 South 6755 West 4236 West Commercial Way 620 South 5700 West 2260 North 2200 West 455 South 6400 West 6620 West 700 North 5041 West 2400 South 6162 West Beagley Road Submarket West Valley Airport Airport Airport West Valley West Valley California Avenue California Avenue West Valley Airport California Avenue

Number of Buildings 1 1 1 1 1 1 1 1 1 1 1

Total RSF 634,260 585,912 533,880 503,249 497,632 431,139 428,854 383,892 375,025 374,288 311,090

Total RSF Available 0 0 0 0 0 0 324,503 0 146,225 0 31,301

% Leased 100% 100% 100% 100% 100% 100% 24% 100% 61% 100% 90%

Clear Height 36.0 36.0 36.0 36.0 32.0 36.0 36.0 36.0 36.0 32.0 36.0

Ownership Freeport West Great Basin Ventures The Moulton Company Et Al Westcore Freeport West Hamilton Partners Freeport West Black Creek Group Hines Hamilton Partners Riverbend Holdings

Year Built/ 2019 2020 2019 2017 2015 2020 2020 2019 2021 2018 2020 Renovated Asking/Deal Rate Per ------$0.48 - $0.55 - $0.65 SF/MO

Market Highlights 53

06INVESTMENT ANALYSIS Investment Summary

XR1 is being offered for sale without an asking price. All investors should base their offer and price on the “as-is, where-is” condition of the Property.

Summarized below are key investment characteristics for XR1:

457,320 SF $2,660,086 TOTAL BUILDING AREA YEAR 1 NET OPERATING INCOME

100% 5.13 YEARS OCCUPANCY PROPERTY WALT

The following information is provided to assist investors in their initial underwriting:

• Financial Summary

• 11-Year Cash Flow Projection

• Lease Expiration Schedule

• In-Place vs Market Rent Comparison

• Rent Roll

56 Investment Analysis CASH FLOW ASSUMPTIONS (2ND GENERATION)

Cash Flow Start Date July 1, 2021 75.00% 2021 Market Rents Renewal Probability

XR < 125K SF: $0.54 per square foot per month, NNN Downtime 6 Months XR > 300K SF: $0.47 per square foot per month, NNN XR < 125K SF: XR > 300K SF: 9 Months Year Growth Rate 2 Months New 2022 7.00% Rent Abatement 0 Months Renew 2023 5.00% Market Rent Growth 2024 4.00% Tenant Improvements 2025 3.00% $5.00 PSF New 2026... 3.00% XR < 125K SF: $2.50 PSF Renew $4.00 PSF New Lease Term 62 Months XR > 300K SF: $2.00 PSF Renew Contractual Rent 3.00% Annually 6.00% New Escalations Leasing Commissions 3.00% Renew All operating expenses are considered to 3.00% Annually be recoverable. All tenants are assumed to CPI Inflation Rate Reimbursable Expenses be a Triple Net (NNN) lease and pay their Real Estate Tax Growth Rate 2.00% Annually pro-rata share of reimbursable operating General Vacancy Loss None expenses.

REVENUES EXPENSE REIMBURSEMENT REVENUE The existing tenants are Triple Net leases and pay their pro-rata share of reimbursable operating expenses. Kane Is Able is subject to a Controllable Operating Expense increase cap of 7% on an annual, cumulative, and compound basis. “Controllable Operating Expenses” shall mean all Property Operating Expenses exclusive of (x) the cost of insurance, taxes, utilities, and security costs, (y) the annual amortized capital costs incurred by Landlord for capital repairs and replacements and to comply with laws, (z) costs incurred by Landlord in connection with union wages and labor costs, and (aa) snow removal costs.

FREE RENT CREDITS Red Stag Fulfillment has a rent abatement period that is in effect after the analysis start date. The following totals will be credited to Buyer at Close by Seller: Red Stag Fulfillment: $773,537 for full rent abatement from 7/1/2021 - 10/31/2021 and partial rent abatement from 11/1/2021 - 2/28/2022.

Investment Analysis 57 OPERATING EXPENSES Year 1 and 2 projected operating expenses are summarized in the chart below: REPAIRS & MAINTENANCE The Repairs & Maintenance expense represents costs associated with maintaining the Projected Projected Projected Year 1 PSF Year 1 Year 2 parking lot, snow removal, contract services, and general repairs and maintenance. Security & Life ($0.10) ($45,802) ($47,176) Safety GENERAL & ADMINISTRATIVE Cleaning ($0.01) ($2,436) ($2,509) The General & Administrative expense represents costs associated with postage mileage, Repairs and ($0.19) ($84,618) ($87,156) bank fees, and general administrative expenses. Maintenance Administrative ($0.03) ($15,286) ($15,744) LANDSCAPING Landscaping ($0.02) ($7,562) ($7,789) The Landscaping expense represents exterior landscaping contract costs and sprinkler repairs. Management ($0.09) ($42,386) ($43,658) Fees Insurance ($0.14) ($64,965) ($66,914) MANAGEMENT FEE Real Estate Taxes ($0.97) ($445,533) ($458,899) The Management Fee expense is calculated as 1.25% of Effective Gross Revenue. Utlities ($0.05) ($22,218) ($22,885) TOTAL EXPENSES ($1.60) ($730,806) ($752,730) INSURANCE

Projected operating expenses are based on Ownership’s 2021 Budget. All expenses, excluding The Insurance expense represents premiums for primary general liability coverage. Buyers Management Fee and Real Estate Taxes, increase by 3.00% annually. should make their own assumptions regarding the cost to insure the property.

CAPITAL RESERVES UTILITIES $0.10 per square foot per year, growing at 3.00% annually. The Utilities expense represents water and electricity expenses. The Utilities expense is Capital Reserves begin in Year 6 of hold period. assumed to be 100% fixed over hold period.

REAL ESTATE TAXES EXPENSE DETAIL Real Estate Taxes are based on the Final 2020 Tax Decision by the County Board of Equalization SECURITY & LIFE SAFETY for 5656 West John Cannon Dr. It is the responsibility of the investor to calculate future The Security & Life Safety expense represents costs associated with property tax obligations and adjust tax amounts accordingly. 2020 Real Estate Tax details nightly monitoring of three cameras with one patrol, annual alarm testing are displayed below: and inspections, and monthly monitoring of property.

Tax Tax Total Millage Parcel # Assessed Value Tax Rate Millage Tax CLEANING Area Relief Charges The Cleaning expense reflects costs associated with cleaning the property, 07-26-426- $35,900,000.00 01X 1.222700% $438,949.30 $0.00 $438,949.30 such as a Day Porter onsite for two hours per week and cleaning contract 001-0000 services.

58 CASH FLOW PROJECTION

Property SF: 457,320 Year Start Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 (Fiscal) Year Ending Jul-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030 Jun-2031 Jun-2032 Average Occupancy Percentage 100.0% 100.0% 100.0% 96.2% 100.0% 100.0% 100.0% 100.0% 87.1% 96.2% 100.0% Economic Occupancy1 100.0% 100.0% 100.0% 96.3% 99.1% 100.0% 100.0% 100.0% 86.7% 95.8% 100.0% Year 1 REVENUE $/SF/YR2 Potential Base Rent 5.82 2,659,963 2,739,900 2,821,167 2,916,100 3,039,204 3,154,356 3,248,986 3,346,456 3,551,023 3,747,810 3,850,878 Absorption & Turnover Vacancy 0.00 - - - (134,656) - - - - (463,892) (156,104) - Free Rent -1.69 (773,537) - - - (33,664) - - - (115,973) (39,026) - TOTAL RENTAL REVENUE 4.12 1,886,426 2,739,900 2,821,167 2,781,444 3,005,540 3,154,356 3,248,986 3,346,456 2,971,157 3,552,681 3,850,878 Expense Recoveries 1.60 730,930 752,730 775,309 767,858 822,701 847,957 873,543 899,749 805,602 920,362 985,638 Free Rent Credit 1.69 773,537 ------POTENTIAL GROSS REVENUE 7.41 3,390,892 3,492,630 3,596,476 3,549,302 3,828,242 4,002,312 4,122,529 4,246,205 3,776,759 4,473,043 4,836,517 Vacancy Allowance 0.00 ------EFFECTIVE GROSS REVENUE 7.41 3,390,892 3,492,630 3,596,476 3,549,302 3,828,242 4,002,312 4,122,529 4,246,205 3,776,759 4,473,043 4,836,517

EXPENSES3 Security & Life Safety -0.10 (45,802) (47,176) (48,591) (50,049) (51,550) (53,097) (54,690) (56,331) (58,020) (59,761) (61,554) Cleaning -0.01 (2,436) (2,509) (2,584) (2,662) (2,742) (2,824) (2,909) (2,996) (3,086) (3,178) (3,274) Repairs and Maintenance -0.19 (84,618) (87,156) (89,771) (92,464) (95,238) (98,095) (101,038) (104,069) (107,191) (110,407) (113,719) Administrative -0.03 (15,286) (15,744) (16,217) (16,703) (17,204) (17,721) (18,252) (18,800) (19,364) (19,945) (20,543) Landscaping -0.02 (7,562) (7,789) (8,022) (8,263) (8,511) (8,766) (9,029) (9,300) (9,579) (9,866) (10,162) Management Fees -0.09 (42,386) (43,658) (44,956) (44,366) (47,853) (50,029) (51,532) (53,078) (47,209) (55,913) (60,456) Insurance -0.14 (64,965) (66,914) (68,921) (70,989) (73,119) (75,312) (77,572) (79,899) (82,296) (84,765) (87,308) Real Estate Taxes -0.97 (445,533) (458,899) (472,666) (486,846) (501,452) (516,495) (531,990) (547,950) (564,388) (581,320) (598,759) Utlities -0.05 (22,218) (22,885) (23,571) (24,279) (25,007) (25,757) (26,530) (27,326) (28,146) (28,990) (29,860) TOTAL OPERATING EXPENSES -1.60 (730,806) (752,730) (775,300) (796,621) (822,675) (848,096) (873,541) (899,747) (919,279) (954,145) (985,635)

NET OPERATING INCOME 5.82 2,660,086 2,739,900 2,821,176 2,752,681 3,005,566 3,154,216 3,248,989 3,346,458 2,857,480 3,518,898 3,850,882

CAPITAL COSTS Tenant Improvements 0.00 - - - - (364,383) - - - (1,153,811) (422,420) - Leasing Commissions 0.00 - - - - (165,446) - - - (569,963) (191,797) - Total Capital Expenditures 0.00 - - - - - (53,811) (55,425) (57,088) (58,801) (60,565) (62,382) TOTAL LEASING & CAPITAL COSTS 0.00 - - - - (529,830) (53,811) (55,425) (57,088) (1,782,575) (674,783) (62,382)

CASH FLOW BEFORE DEBT SERVICE 5.82 2,660,086 2,739,900 2,821,176 2,752,681 2,475,737 3,100,405 3,193,563 3,289,370 1,074,906 2,844,116 3,788,500

[1] Takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatement. [2] Based on 457,320 square feet. [3] Expenses are based on Ownership 2021 Budget. Investors should confirm and model based on their own operating expense assumptions. Investment Analysis 59 EXISTING LEASE EXPIRATION SCHEDULE Pro-Rata Share % Suite Tenant Tenant SF Property Expiration Date WALT1 MLA Profile 2025 Expirations 500 Kane Is Able 103,600 22.7% 4/30/2025 3.8 XR <125K SF $0.54

Total 103,600 22.7% 3.8 2026 Expirations 100 Red Stag Fulfillment 353,720 77.3% 12/31/2026 5.5 XR >300K SF $0.47

Total 353,720 77.3% 5.5 TOTAL/AVERAGE 457,320 100% 5.1

1WALT calculation is based on the analysis start date (7/1/2021).

EXISTING VS. MARKET RENT COMPARISON

Tenant Pro-Rata Share % Current Rent NNN Market Rent NNN Suite Tenant SF Property PSF/Mo PSF/Yr PSF/Mo PSF/Yr % Below Market 500 Kane Is Able 103,600 22.7% $0.54 $6.43 $0.54 $6.48 0.74% 100 Red Stag Fulfillment 353,720 77.3% $0.47 $5.58 $0.47 $5.64 1.06% TOTAL/AVERAGE 457,320 100% $0.48 $0.49 0.98%

60 Investment Analysis RENT ROLL

Pro-Rata Tenant Tenant Share % Lease Term Current Rent Rent Changes Recovery Rent Abatement Market Suite Name SF Property Begin End $/Mo PSF/Mo PSF/Yr Date Monthly PSF/Mo PSF/Yr Type # Mos % Leasing Profile 500 Kane Is Able 103,600 22.7% 1/2/2020 4/30/2025 $55,529.60 $0.54 $6.43 1/1/2022 $57,187.20 $0.55 $6.62 NNN XR <125K SF 1/1/2023 $58,948.40 $0.57 $6.83 $0.54 1/1/2024 $60,709.60 $0.59 $7.03 1/1/2025 $62,574.40 $0.60 $7.25 Options: Two 5yr options at FMV with 3% escalations. 6 - 9 month notice period. ROFO on adjacent space. Notes: Guarantor is Kane is Able, Inc. 7% cap on annual controllable expense increases and 3% management fee cap.

100 Red Stag 353,720 77.3% 5/1/2021 12/31/2026 $164,479.80 $0.47 $5.58 5/1/2022 $169,431.88 $0.48 $5.75 NNN 6 100% XR >300K SF Fulfillment 5/1/2023 $174,383.96 $0.49 $5.92 Mo 1 - 6 $0.47 5/1/2024 $179,689.76 $0.51 $6.10 4 17.57% 5/1/2025 $184,995.56 $0.52 $6.28 Mo 7 - 10 5/1/2026 $190,655.08 $0.54 $6.47 Option Period 1/1/2027 12/31/2029 1/1/2027 $196,374.73 $0.56 $6.66 1/1/2028 $202,265.97 $0.57 $6.86 1/1/2029 $208,333.95 $0.59 $7.07

Options: Two 3yr options. First option is at 103% of expiration rent with 3% escalations. Second option is at FMV. 6 - 9 month notice period for both options. Right to expand into the 103,600 SF currently leased by Kane Is Able upon their expiration.

Notes: Rent is fully abated for months 1-6 of lease term. Tenant only responsible for $135,575.40/mo for months 7 - 10 of lease term.

TOTAL/AVERAGE 457,320 100% $220,009 $0.48 $5.77

OCCUPANCY Vacant 0 0% Occupied 457,320 100% Total 457,320 100%

Investment Analysis 61 INSTITUTIONAL INVESTMENT CONTACTS

Kyle Roberts, CCIM, SIOR Luke Burbank Executive Managing Director Executive Managing Director t 801 578 5525 t 801.578.5522 [email protected] [email protected] UT Lic. # 5474336-SA00 UT Lic. # 6922585-SA00

Bret Hardy Jim Linn Executive Managing Director Executive Managing Director 5656 WEST JOHN CANNON DRIVE, SALT LAKE CITY, UTAH 84116 t 213-804-7815 t 213-248-3900 [email protected] [email protected]

Andrew Briner Kevin Shannon Executive Managing Director Co-Head, U.S. Capital Markets t 925-708-8316 t 310-491-2005 [email protected] [email protected]

DEBT & STRUCTURED FINANCE David Milestone Brett Green Vice Chairman Senior Managing Director t 310-491-2015 t 310-491-2009 [email protected] [email protected]

May 2021

The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.