Redevelopment Opportunity Charlotte, North Carolina Offering Memorandum South End

ACRES NORTH 37 Acre Historic US Army & 37 END Motor Company Assembly Site

N. GRAHAM ST INTERSTATE 77

STATESVILLE AVE

INTERSTATE 85

REDEVELOPMENT OPPORTUNITY CHARLOTTE, NORTH CAROLINA OFFERING MEMORANDUM SOUTH END

PLAZA MIDWOOD UPTOWN / CBD

NODA NC MUSIC FACTORY

N. GRAHAM ST

STATESVILLE AVE

NORTH TABLE OF CONTENTS

37 Acres at North End-The Offering 4

Site History 6

Charlotte Economic Growth 8

Retail Development 10

Residential Development 12

Office Development 14

Current Site Overview 16

John Cashion, SIOR Pete Pittroff, SIOR Brad Cherry, CCIM, SIOR Todd Hughes Managing Director Managing Director Managing Director Managing Director +1 704 804 5780 +1 704 927 3012 +1 704 927 3013 +1 443 451 2608 [email protected] [email protected] [email protected] [email protected]

The information contained in this Offering Memorandum is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with further discussions with the owner regarding a possible transaction with respect to 1776 Statesville Road, Charlotte, North Carolina (the “Property”). The information contained herein shall not be photocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Offering Memorandum does not choose to pursue such a transaction, this Offering Memorandum shall be returned to Jones Lang LaSalle (“JLL”). Neither the owner, nor Jones Lang LaSalle (“JLL”), nor any of their officers, directors, employees or agents, assume any responsibility or make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to the Property or this Offering Memorandum or any information or statements (including financial statements and projections) contained herein or relating hereto, including the accuracy or completeness of such information or statements and the condition, quality or fitness of the Property. Such information and statements have in many circumstances been obtained from outside sources, have not been tested or verified and may be subject to errors or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting the foregoing, in the event this Offering Memorandum contains information relating any hazardous, toxic or dangerous materials in relation to the Property, such information shall in no way be construed as creating any warranties or representations, express or implied, by operation of law or otherwise, by any party, as to the existence or non-existence or nature of such materials in, under, on or around the Property. Potential investors are urged to perform their own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Offering Memorandum orany information or materials contained herein or otherwise provided. The only party authorized to represent the owner of the Property is Jones Lang LaSalle (“JLL”), and the owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with the owner shall be obligated to pay any fees or commissions due any advisors, brokers or representatives, other than Jones Lang LaSalle (“JLL”), dealing with such party. This Offering Memorandum is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice or any liability. In no event shall the delivery or receipt of this Offering Memorandum be deemed to create any legal obligation to enter into any transaction with respect to the Property, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction.

page 3 N CHARLOTTE’S CENTER CITY 2020 VISION PLAN & ULI’S APPLIED INNOVATION O CORRIDOR LAKE NORMAN R T ACRES 37 Acres at North End is located just outside of Charlotte’s current CBD. The Property 16 MILES NORTH H is included within the City of Charlotte’s Center City 2020 Vision Plan (the Vision). As a part of the Vision, Charlotte’s CBD will be extended further Northeast, past the NORTH I-277 loop and is a part of the Applied Innovation Corridor (the Corridor). The Urban Land Institute’s National Advisory Panel performed an extensive survey of the area

S END presented their recommended strategy for the North End section of the Corridor in a T A

THE OFFERING report published in May 2014. E S T JLL has been exclusively retained by the Owner to market for sale the fee V S I L M simple interest in the 37 Acres at North End (“The Property”), located Per the Vision, the purpose of the North End redevelopment is to “create a distinctly L 37 E A H just outside of Charlotte, North Carolina’s current Central Business District A A walkable, mixed-use ‘urban industrial park’ with distinctive neighborhoods. This V R E (CBD). The Offering represents a unique opportunity to acquire a well- G area fosters an atmosphere of creativity, innovation and entrepreneurship; provides

located and historic tract of land, in one of the fastest-growing markets unparalleled connectivity for moving goods and people; and creates an exciting urban

in the United States. The Property is well-known to native and long-time living and working experience linking North End to NoDa and the larger Applied

Charlotteans as the former Ford Motor Company Assembly Plant, United Innovation Corridor.”

States Army Quartermaster Corps Depot and Charlotte Army Nike Missile

Plant. The Property is recognized by the Charlotte-Mecklenburg Historic As a part of the Vision and the Corridor, the new Fire Department Headquarters 37 ACRES Landmarks Commission and has been included in the City of Charlotte’s officially opened on April 11, 2015 at 500 Dalton Avenue (which is less than 500 yards Center City 2020 Vision Plan for expanding the CBD beyond the I-277 loop. from the Property). AT NORTH END

The Property is one of the largest remaining land tracts available in the The strategic location of 37 Acres at North End is part of the Vision because of its 9,300 immediate vicinity of the CBD. As of April 2015, 37 Acres at North End is proximity to a millennial labor pool, unparalleled interstate access and the LYNX Blue 13,000 NODA the largest land offering available within 1.5 miles of the CBD and the second Line Light Rail Extension (BLE). After its completion in 2017, the Blue Line & BLE will largest land offering available within 5 miles of the CBD. The Property is run from Pineville to the UNC Charlotte campus, covering over eighteen (18) miles and conveniently located in close proximity to popular neighborhoods, like extending through the CBD. Two new Blue Line Stations will be within walking distance NoDa, Plaza Midwood and Uptown, containing popular attractions such of the Property. as the NC Music Factory, BB&T Ballpark, Time Warner Cable Arena and MILES TO LOCATION Bank of America Stadium. The 2030 Transit Corridor System Plan also includes the proposed LYNX Red Line FIRE DEPT HQ Light Rail, which is less than 75 yards from the Property and will begin in the CBD and ±1 TO I-77 The Property is being offered without a stated asking price and is available run just north of Davidson. The Red Line will provide an alternative route for commuters on an “all cash” basis. traveling into the City from the Lake Norman area. ±2 TO I-85 ±9 TO AIRPORT THE PROPERTY The Applied Innovation Corridor Summary can be found here: 37 Acres at North End, located at 1776 Statesville Avenue, consists of https://jll.box.com/s/u1w467f2uw65x1sih1crm1dfiak5m910 PLAZA MIDWOOD 633,896 square feet in nine (9) buildings on two parcels totaling 36.89 BLUE LINE & EXTENSION UNDER acres of historically industrial land. The buildings were constructed over a The full Center City 2020 Vision Plan can be found here: CBD 33 year period and have been utilized for a variety of uses throughout the https://jll.box.com/s/x4gfw6499a044ajw5bng438q31tt3x9t CONSTRUCTION years. Most recently, Rite Aid has used the Property as a distribution hub in the Southeast. Rite Aid will be moving out in January 2017. The full 2030 Transit Corridor System Plan can be found here: PROPOSED RED LINE https://jll.box.com/s/utkxipbir52d5l8wp2l7wqizgmeag1u2 SOUTH END “As a central anchor of the Applied Innovation Corridor, North End will be the focal point CHARLOTTE 2012 NC DOT TRAFFIC COUNTS LAKE WYLIE of a new urban mixed-use neighborhood” ~ Charlotte Center City 2020 Vision Plan DOUGLAS INT’L 17 MILES SOUTH AIRPORT N O LAKE NORMAN R T 16 MILES NORTH H

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9,300 13,000 NODA

MILES TO LOCATION ±1 TO I-77 FIRE DEPT HQ ±2 TO I-85 ±9 TO AIRPORT PLAZA MIDWOOD BLUE LINE & EXTENSION UNDER CONSTRUCTION CBD

PROPOSED RED LINE SOUTH END CHARLOTTE 2012 NC DOT TRAFFIC COUNTS LAKE WYLIE DOUGLAS INT’L 17 MILES SOUTH AIRPORT MILLENNIAL ATTRACTION THE SUCCESS OF HISTORIC SOUTH END Uptown Charlotte has become the Southeast’s Millennial Magnet, 37 Acres at North End is well-positioned for Charlotte’s growing population as Charlotte’s Historic offering a fast-paced, mobilized, cultured lifestyle demanded by South End (South End) development reaches its capacity. Much like North End, South End was this young demographic group. Increased walkability; accessibility historically a predominantly industrial area in Charlotte, with Charlotte’s first railroad connecting the via multiple transit options; modernized work environments with Queen City to Columbia and Charleston. In the 1990’s, developers capitalized on the industrial vacancy progressive office space; and chic lifestyle amenities and attractions and redeveloped the area to target for the inevitable influx of millennial population to Charlotte. create this nucleus of attraction. Similar to South End, North End will be a pedestrian-oriented population. As of April 2015, South CBD attractions include: End is home to more than 3,000 residents. These residents, seeking a neighborhood connection, have created the South End Neighborhood Association, a non-profit organization dedicated to building • The EpiCentre – offering spectacular skyline views, over community by serving the residents, businesses, and friends of South End. 300,000 square feet of state-of-the-art entertainment, gourmet restaurants, Aloft hotel, sidewalk cafes, nightclubs, specialty FORD MOTOR COMPANY ASSEMBLY PLANT retail and a LYNX Blue Line stop The Ford Motor Company Assembly Plant was an important component of Charlotte’s industrial and commercial infrastructure in the early twentieth century. Ford began operations in the Queen City during • Bank of America Stadium - home to the NFL Carolina the company’s early years. During its first year of operation, the popularity of the T Model prompted Panthers and NCAA Football ACC Championship Ford to begin assembling bodies in Charlotte onto chassis shipped in from Michigan. By 1924, Ford • BB&T Ballpark – home to the minor league Charlotte Knights outgrew their other facilities and began construction on their 1776 Statesville Avenue plant.

• North Carolina Music Factory - home to popular indoor To build Charlotte’s newest manufacturing facility, Henry Ford turned to renowned industrial architect music venue The Fillmore, outdoor music venue The Uptown Albert Kahn, an industrial architect of national importance, working with the McDevitt-Fleming Company Amphitheatre, VBGB Beer Garden and seven other dining of Charlotte. options UNITED STATES ARMY QUARTERMASTER CORPS DEPOT • Time Warner Cable Arena – home to the NBA Charlotte As the Charlotte Quartermaster Corps (QMC) Depot during World War II, the complex and the Hornets Charlotteans employed at the site played an important role in the war effort by processing and distributing supplies. • The NASCAR Hall of Fame and Museum – a high-tech venue, designed to educate and entertain race fans and non- The QMC was activated on May 16, 1941, initially with a staff of three army officers and thirty-two (32) fans alike, which includes artifacts, interactive exhibits, and a civilians under the command of Lieutenant Colonel Clare W. Woodward. Even before the site was 278-person state-of-the-art theater officially purchased, the QMC was setting up shop and soliciting construction bids as Ford was moving • Romare Bearden Park – offering events such as Music Box their materials out. Lunch, Party in the Park and Hats Off to Parks Mechanized equipment played a large role in the work done at the QMC Depot. Extensive rail lines The region’s higher educational opportunities have also had an connected the six buildings together and to the Southern Railroad—the facility saw a daily turnover of impact on the CBD population. Since 2000, the CBD has the highest forty (40) boxcar loads. It even had its own diesel-electric GMC locomotive to move cars around the number of Degreed Residents when compared to other employment facility. Gasoline-driven tractors and hoisting equipment were used to move and stack heavy cargoes, hubs such as: Downtown Atlanta, Denver, Dallas, Nashville, and the such as crates of canned goods weighing 1,000 pounds. In addition, small tractors were used to pull U.S. as a whole. long trains of “flatcars” about the warehouses. While the operation was mostly train based, the QMC maintained a motorpool of about 50 to 100 trucks for highway shipping.

37 Acres at North End, formerly known as the Charlotte Army Missile Plant, was the only plant in the United States to manufacture the Nike Hercules Missile.

CHARLOTTE ARMY MISSILE PLANT As one of two plants in the United States manufacturing missiles for the Nike Program and the only one making the Nike Hercules, the Charlotte Army Missile Plant and its local civilian employees played a major role in the national defense of this country during the Cold War.

In 1957, Douglas Aircraft began to “tool up” and install new facilities for the production of the next generation of Nike missile—the Hercules. The upgrades cost the Department of Defense $21.5 million ($9 million for plant rehab and $7.5 million in machinery).

The Charlotte Ordnance Missile Plant was the sole production site for the Nike Hercules Missile. The major components for the missile consisted of the missile airframe (forward and aft body, the main and center fins, booster fins, and booster cluster), the warhead body assembly, and shipping containers.

Although production of the Hercules Missile dominated the activities at CAMP through 1965, Nike was not the only project DAC and its workforce of 1,750 Charlotteans were working on. Production began in 1962 on the Honest John XM50 Rocket, as did research and development for the Nike Zeus. The early sixties saw work done for other military agencies and NASA on aerospace vehicles, missilery, and military hardware—such as infantry-carried anti-tank weaponry.

In 1965, the Assistant Secretary of the Army determined that retention of the plant could not be warranted under new polices set by the Defense Department earlier that year. Despite formal protest by the Hercules Project Manager, Secretary of Defense Robert S. McNamara announced the close and subsequent disposition of the installation. Missile production ended in May 1965, with repair parts production continuing on a phase out basis until the last equipment left the site in May 1967. After the close of the Charlotte plant, Hercules manufacture was subcontracted by McDonnell Douglas (formerly DAC) to the Mitsubishi Heavy Industries Company in Japan.

Pat Hall Enterprises purchased the property after McDonnell Douglas’s military contracts expired. Pat Hall then subdivided the property, selling parcels to the current owners for manufacturing and warehouse space.

For more information from the Charlotte-Mecklenburg Historic Landmarks Commission, please visit their site: http://www.cmhpf. page 7 org/S&Rs%20Alphabetical%20Order/surveys&rfordplantII.htm Charlotte Economic Growth

LYNX Light Rail 2015 will be the best year in terms of economic growth...in a decade.” - John Connaugton, Director, UNC Charlotte “ Economic Forecast

#2 Fastest- #3 America’s #3 Best Growing Big Top 5 Cities States for Cities in the to Keep on Business U.S. Your Radar

GROWING WAGES 2015 JOBS The LYNX Red Line Extension is a 25-mile commuter rail project using the existing Norfolk Southern rail line. This line will connect Charlotte with four of the region’s fastest growing towns - Average Huntersville, Cornelius, Davidson & Mooresville. Ten stations will wagesAverage will 26,300 be incorporated into surrounding Transit Oriented Developments. wagesincrease will The Blue Line Extension (Northeast Corridor) is an extension jobs expected of the LYNX Blue Line light rail service. The 9.3-mile alignment 11%increase by extends from Ninth Street in Center City through the North to be added Davidson (NoDa) and University areas, terminating on the 201911% to UNC Charlotte campus. By including the LYNX Blue Line in Charlotte in Extension in a comprehensive transportation system that by$80,696 2019 to includes roads, buses, bus rapid transit and commuter rail, we $80,696 2015 can offer more choices and alternatives to congestion on I-85. page 9 Retail Development

NC Music Factory (0.6 mi) The NC Music Factory is the preeminent Uptown location for live music in Charlotte, only two minutes from the I-277 exit and three minutes from the I-77 exit with 2,500 surface parking spaces. Attractions and amenities include: indoor concert venue The Fillmore; outdoor concert venue The Uptown Amphitheatre; VBGB Beer Garden, Osso, Texicali, Eight Sushi, Mattie’s Diner, Automatic Slims, Wet Willie’s and The Comedy Zone.

The first phase of more than 1,000 planned apartments and unique residences located at the Uptown illageV is a 6-story, 139-unit Art Deco/South Beach style project dubbed the NC Music Factory Lofts. Featuring rooftop terraces and unparalleled amenities, amazing, unobstructed views, and the security and tranquility of a private village, this is one of the most unique projects to hit the Charlotte market. Situated adjacent to the NC Music Factory, non-stop fun is just outside your door. EpiCentre (1.5 mi) Located in Uptown Charlotte, EpiCentre sits in the very center of one of the most vibrant cities in the region, if not the nation, and offers over 300,000 square feet of state-of-the-art entertainment, gourmet restaurants, sidewalk cafes, nightclubs and specialty retail. Tenants include: Bubble Lounge, BlackFinn, Vida! Vida! Flemming’s Prime Steakhouse, Whiskey River, Strike City Bowling, Studio Movie Grill and Gold’s Gym.

EPICENTRE is conveniently located next to the Time Warner Arena (home to the NBA’s Charlotte Hornets), and a few blocks from Bank of America Stadium (home to the NFL’s Carolina Panthers) and the new minor league Charlotte Knights Stadium. EpiCentre is connected to the Lynx Commuter Rail station with ridership averaging 15,000 a day, and direct access to the Overstreet Mall pedestrian bridge system, which links all major office complexes North Davidson “NoDa” (1.7 mi) Located two miles north of Uptown, North Charlotte was established in the early 1900s as a tightly-knit mill community. The mills and neighborhood have seen many changes since then, but what has remained is a unique sense of identity. The evolution from milltown to vibrant arts community has produced an eclectic neighborhood where spontaneity and diversity are celebrated.

Affectionately known as NoDa, the area is widely regarded as Charlotte’s Arts & Entertainment District. NoDa offers many locally owned performance venues, restaurants, breweries, galleries, and small shops as well as an active street vending and busking scene during its Art Crawls, the 1st and 3rd Friday of every month. An active volunteer organization is dedicated to supporting and preserving NoDa’s history, art, small businesses, and unique character. CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

SOUTH END BANK OF AMERICA STADIUM Epicentre BB&T BALLPARK TIME WARNER CABLE ARENA

UPTOWN NC Music Factory FIRE DEPT. HEADQUARTERS

37 ACRES AT NORTH END

ST NoDa AT PLAZA ES VI LL MIDWOOD E AVE NODA PROPOSED RED LINE NORTH BLUE LINE EXT. Residential Development

Brightwalk (0.5 mi) Brightwalk is part of an evolving master plan for re-development of Double Oaks, a 98 acre community specifically addressed as part of the “applied innovation corridor” in the 2020 Vision Plan for Center City. The re-development plan for the site includes more than 1,000 homes and apartments, parks and greenways, in addition to property that could accommodate shops, restaurants, and offices as Charlotte’s Center City expands and market conditions evolve

Standard Pacific Homes, an accomplished national builder will initially build three series of homes and townhomes with prices expected to range from $120,000 to more than $300,000

SkyHouse (0.9 mi) Atlanta-based Novare Group, Grubb Properties and Batson-Cook Development Co. broke ground in early 2014 on SkyHouse Uptown, a 24-story, 336-unit apartment tower at the corner of North Church and West 10th streets. The project is expected to deliver in the first quarter of 2015.

SkyHouse Uptown is conveniently located near the best shopping, dining, and entertainment that Charlotte has to offer. Local attractions such as Discovery Place, the Charlotte Convention Center, and the Bechtler Museum are minutes from your doorstep. Whether you desire an elegant evening on the town or just need to grab a quick bite, it is available to you in Uptown Charlotte. POPULATION

2014 2019 Yards at NoDa (1.7 mi) The NoDa District of Charlotte, an enclave of distinctive galleries, restaurants, bars and performing spaces, will soon be home to a brand new 340-unit apartment building

The Yards at NoDa will be adjacent to the 36th Street stop on the planned extension of Population is expected Charlotte’s LYNX Blue Line. Slated for completion in 2017, this new leg of the light rail system to increase 7% over will offer riders quick and convenient transportation between Uptown, Downtown and the the next 5 years nearby University of North Carolina CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

SOUTH END BANK OF AMERICA STADIUM BB&T BALLPARK TIME WARNER CABLE ARENA UPTOWN FIRE DEPT. HEADQUARTERS SkyHouse 37 ACRES AT NORTH END Brightwalk ST AT PLAZA ES VI LL MIDWOOD E AVE Yards at NODA PROPOSED NoDa RED LINE NORTH BLUE LINE EXT. Office Development

300 South Tryon (1.7 mi) 300 South Tryon will feature approximately 630,000 rentable square feet of Class A office space on floors 2-25. Floor plates will be an average of 26,000 square feet of efficient and flexible workspace for tenants.The building will offer a great combination of Tryon Street energy on the lower floors and panoramic views on the upper floors. Approximately 200,000 square feet of this space will be anchored by Babson Capital.

Tryon Place (1.8 mi) Crescent Communities envisions an “office community that is authentic to Charlotte’s progressive heritage yet embraces how people live, work and play...” The site is located diagonally opposite the Duke Energy Center on South Tryon Street. Officials said the project would include 500,000 to 1 million square feet of office space. Design on Crescent’s project is expected to be completed by year’s end; construction won’t start, however, until anchor tenants sign on and leasing reaches levels necessary to support a construction loan. Current Conditions Tenant Leverage 615 South College (1.7 mi) Peaking Falling Market Market Portman Holdings is planning a 15-story, 345,000 SF office tower to be built atop a parking deck next to The Westin Hotel at the corner of College and Stonewall Streets. The design also calls for a 1/3 acre green Rising Bottoming space to be built over the top of the deck to be used for corporate events Market Market

or outdoor meeting space. Portman needs to pre-lease about half of the Leverage Landlord space before construction can begin. CBD Charlotte Suburban CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

300 S. Tryon Tryon Place SOUTH END BANK OF AMERICA STADIUM BB&T BALLPARK 615 S. College TIME WARNER CABLE ARENA UPTOWN FIRE DEPT. HEADQUARTERS

37 ACRES AT NORTH END

ST AT PLAZA ES VI LL MIDWOOD E AVE NODA PROPOSED RED LINE NORTH BLUE LINE EXT. Current Site Overview

Total Square Feet: 633,896 Tax Map Reference: 079-031-02 (22.1 Acres) # Building Square Feet Year Built Tax Map Reference: 079-031-05 (14.79 Acres) 1 Boiler Room 4,416 1924 Land Area: 36.89 Acres 2 Storage Building 21,202 1957 3 Storage Building 3,240 1950 Zoning: I-2 4 Warehouse Building 240,800 1924 Sprinklers: Primarily Wet System 5 Warehouse Building 216,000 1942 Present Use: Industrial 6 Guard House 200 N/A Flood Plan: Property is not located within a FEMA Flood zone 7 Office 13,103 1957 Ingress / Egress: Property has two primary curb-cuts 8 Office 5,335 1944 along Statesville Avenue 9 Warehouse Building 129,600 1942 Real Estate Taxes: $123,624 on valuation of Grand Total 633,896 $9,625,000 (2014)

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REDEVELOPMENT OPPORTUNITY CHARLOTTE, NORTH CAROLINA OFFERING MEMORANDUM

Although information has been obtained from sources deemed reliable, Owner, Jones Lang LaSalle, and/or their representatives, brokers or agents make no guarantees as to the accuracy of the information contained herein, and offer the Property without express or implied warranties of any kind. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2015. Jones Lang LaSalle. All rights reserved.