Value-Add Office Building at the Prime Interchange of I-295 and U.S. Route 1

LAWRENCEVILLE • NJ

CONFIDENTIAL OFFERING MEMORANDUM I. 2 EXECUTIVE EXECUTIVE SUMMARY

II. SUMMARY 6 PROPERTY INTRODUCTION DESCRIPTION Jones Lang LaSalle Americas, Inc. (“JLL”), a licensed real estate broker, has been retained on an exclusive basis III. to arrange the sale of Crossroads Corporate Center (the “Property”), a three-story office building located on a 12 bucolic 45-acre site in the prestigious Princeton submarket. FINANCIAL Situated directly off the prime interchange of Interstate 295 ANALYSIS and U.S. Route 1, the Property features a dramatic two-story lobby with pewter paneled walls and granite floors. The IV. building is occupied by several highly recognizable tenants including education consulting firm Kumon, United Way, 18 credit rated healthcare provider WellCare Health Plans and MARKET Penn National Insurance, which serves as the Property’s OVERVIEW anchor tenant.

V. At approximately 48% occupied, Crossroads Corporate Center offers value creation potential through the lease 22 up of vacant suites, as well as strong tenant retention with LOCATION & a weighted average tenure of approximately ten years. DEMOGRAPHICS Crossroads Corporate Center features unparalleled regional accessibility, as both New York and Philadelphia can be reached in approximately one hour by car. Additionally, the Property is just 2.0 miles from NJ Transit’s Hamilton Railroad Station, which offers direct access to New York Penn Station, while the Quaker Bridge Mall is less than one mile from the Property and offers over 1 million square feet of shopping, entertainment and dining options.

This offering provides an excellent opportunity to acquire a highly desirable office building that delivers an exceptional combination of location, functional utility, strong tenant retention and upside potential through the lease up of vacant space which could be accelerated through the addition of amenities as well as a re-branding campaign.

2 • EXECUTIVE SUMMARY CROSSROADS CORPORATE CENTER IS AN EXCEPTIONAL COMBINATION OF:

DESIRABLE FUNCTIONAL UPSIDE LOCATION UTILITY POTENTIAL

PROPERTY SUMMARY PROPERTY ADDRESS 3150 Brunswick Pike Lawrenceville, NJ 08648

LAND AREA 45.4 Acres

YEAR BUILT/RENOVATED 1991/1996

NET RENTABLE AREA 100,925 SF

NUMBER OF FLOORS 3 (Typical Floor plate 33,600 SF)

% LEASED 48%

PARKING COUNT 405 parking spaces (4.0 spaces per 1,000), with the ability to increase to 510 spaces (5.0 spaces per 1,000)

FINANCING The Property will be offered free and clear of any existing debt. The JLL debt team has fully underwritten the deal and is available for consultation.

EXECUTIVE SUMMARY • 3 SIGNIFICANT CREATE SHARED VALUE-ADD OPPORTUNITY TENANT AMENITIES SUCH AS:

Crossroads Corporate Center offers an investor the opportunity to reposition the building and further enhance the Property through the lease up of 52,764 square feet of vacant space. Additional value could be created by potentially FITNESS CENTER transforming a portion of the unoccupied office space into a shared fitness center, conference area, or lounge to attract tenants seeking a full-service building. Such enhancements will allow the Property to benefit from the “flight to quality” CONFERENCE AREA trend of tenants in the New Jersey office market.

TENANT LOUNGE

CAFÉ

4 • EXECUTIVE SUMMARY 518

603

679

Lincoln Hwy

601

Raymond Rd Stouts Ln 206 KINGSTON Monmouth

C Junction h 522

e Station

y Ridge Rd

i 27 l

l Brunswick Pike R DAYTON d

683

Great Rd Harrison St 1 Friendship Rd

C o l l e Bayard Ln g Princeton e R Miller Rd Forrestal d

PRINCETON Village E

571 629 Princeton Broadway Rd 604 614 University Forrestal Springdale Rd Campus Rosedale Rd Princeton Princeton Station University Medical Center PLAINSBORO PLAZA Dey Rd P ROSEDALE lain sboro Rd

569 Q

a k Sc e ud Petty Rd Carter Rd de r rs M il R l Rd d PRINCETON Princeton Rd JUNCTION Grovers Mill Rd PLAINSBORO 614

A Province Line Rd le x a n d e r R d 615 Mercer Rd CRANBURY MARKET FAIR 615 Cranbury Neck Rd Princeton Carnegie Junction Center Station 206 615

Brunswick Pike e

a d

o WEST

NASSAU PARK R

d WINDSOR 638 571 MERCER MALL 535 QUAKERBRIDGE MALL d

P Clarksville Rd N 685

Quaker Bridge Rd 95

W ge Rd Villa Ba ke rs B a s Mercer in 1 County Park Rd

Lake Mercer PREMIER LOCATION WITH TOP NEW JERSEY EXCEPTIONAL295 ACCESS OFFICE MARKET

Crossroads Corporate Center sits in the heart of the Princeton The Property is located in the prestigious Princeton office Office Market, with a highly accessible location at the market, which is one of the strongest Class A office submarkets interchange of Route 1 and Interstate 295. In addition to these in the State and boasts some of the lowest vacancy rates highly traveled arteries, the Property is in close proximity to in New Jersey (12.4% vs. 16.8% of Northern New Jersey Interstates 95 and 195, as well as Routes 27 and 206, and is less average), according to CoStar. The submarket has attracted than five miles from downtown Princeton, less than two miles many large national and international corporations and from NJ Transit’s Hamilton Railroad Station and less than one pharmaceutical companies due to its convenient location mile from the one million square foot Quaker Bridge Mall and near major highways, superior access to a highly educated the Mercer Mall, which offers a Shop Rite and Starbucks. The labor pool and proximity to the research centers of Princeton Property is also 4.5 miles from the Princeton Junction Train and Rutgers Universities. Corporations with a major presence station, which provides convenient access to Philadelphia, in the corridor include Bank of America, Novo Nordisk, MetroPark in Iselin, Penn Station in New York City and beyond Sandoz, Siemens Corporation, Church & Dwight, Integra, via NJ Transit and Amtrak. Aecom, Covance, Bristol-Myers Squibb, Dow Jones, Munich Re, State Street Bank, NRG and BlackRock, among others.

EXECUTIVE SUMMARY • 5 PROPERTY DESCRIPTION Crossroads Corporate Center is located on a 45.4-acre park-like site. It is located adjacent to the four-way interchange of Interstate 295 and U.S. Route 1 and is accessible to Interstates 195, 95 and 276, as well as Routes 206, 33 and 130.

ADDRESS PARKING 3150 Brunswick Pike 405 spaces (4.0 per spaces per 1,000 SF) Lawrenceville, NJ 08648 ZONING PLAT/PARCEL NUMBER The property lies within the boundaries of the Township Block 4201, Lot 28 of Lawrenceville and is zoned LI-1, Limited Industrial 1 use. Permitted uses include offices, research and engineering LAND AREA offices, laboratories, light manufacturing, wholesale 45.4 Acres distribution and warehouses, and detached single family dwellings.

FLOOD ZONE Crossroads Corporate Center is in flood zone A (1% annual chance flood event)

LANDSCAPING A variety of trees, shrubbery and grass.

PARKING LOT Concrete and granite curbs, brick pavers and concrete walkways.

UTILITIES Sanitary Sewer: NJ American Water Co. Storm Sewer: Underground piping with onsite detection pond Domestic Water: NJ American Water Co. Electric Service: Public Service Electric & Gas Co. Natural Gas: Public Service Electric & Gas Co. Communications: Verizon, FIOS, Broadview and Comcast

6 • PROPERTY DESCRIPTION 1

BRUNSWICK PIKE

295 295

YEAR BUILT/RENOVATED NUMBER OF STORIES 1991/1996 3 stories

LAYOUT & AMENITIES RENTABLE BUILDING AREA The Property is modern and functional in design, with a 100,925 rentable square feet central atrium lobby and elevator access to each floor. There is one set of men’s and women’s restrooms per floor. FLOORPLATE 33,600

PROPERTY DESCRIPTION • 7 MECHANICAL DETAIL HEATING AND COOLING The building is heated by one low pressure 1,890,000 BTUH boiler with a two-pipe circulation system providing perimeter radiation heating. Each floor is air-conditioned by a six-zone, VAV system, with two 55 ton self-contained air-cooled air handling units within mechanical rooms, for a total of six air handling units. Supply air is distributed through ductwork downstream of VAV boxes.

NATURAL GAS LINE Building service is connected via a two-inch gas main located under Clarksville Road. INTERIOR DETAIL

PLUMBING LOBBY The plumbing system is a combination of PVC, steel, copper Two-story center atrium with polished granite floors, brushed and cast iron piping throughout the building. One pair of pewter and polished granite wall panels and rich mahogany restrooms for men and women are situated on each floor of woodwork. the building. LAYOUT ELECTRICAL SERVICE The building is U-shaped and has a central core. 2,500 amphere, 227/480 volt, 3-phase service. Floor Covering: Ceramic tile, carpet or resilient tile.

ELEVATOR SERVICE INTERIOR WALLS The building has 2 solid state controlled hydraulic passenger Painted or wall-covered sheetrock. elevators providing access to all floors of the building. ROOFING SYSTEM STAIRCASE Metal decking with mechanically fastened elastomeer single- Three, serving all floors. ply rubber membrane. The roofing system is original.

FIRE PROTECTION LIGHTING The building is fully sprinklered with concealed heads and A mixture of fluorescent and incandescent light fixtures. three (3) fire hose stations per floor. The building has central station monitoring linked directly to the local fire department. SECURITY WATER SERVICE Consists of closed circuit cameras located along the roof and Distribution consists of a six-inch ductile iron pipe along within interior halls. The main entry is controlled after normal interior roads. business hours with a card key entry.

SANITARY SERVICE Six-inch PVC building main connects to a municipal sewer main under Clarksville Road.

8 • PROPERTY DESCRIPTION FLOOR PLANS

FIRST FLOOR - 32,633 SF

VACANT

FAN 2021 ROOM

2022

2023

VACANT VACANT 4,854 SF 4,968 SF SUITE: 120/120A SUITE: 130

HNTB CORPORATION 1,458 SF SUITE: 130A LXD: 11/30/21 NJCASA 4,250 SF SUITE: 160 KETTLER LXD: 8/30/23 MANAGEMENT INC. 1,750 SF SUITE: 150 LXD: 11/30/21 (HNTB SUB LEASE)

6,426 SF UTILITY

FAN ROOM VACANT ELEVATOR 15,353 SF LOBBY SUITE: 100 RESTROOMS

LOBBY

3,631 SF 5,306 SF

PROPERTY DESCRIPTION • 9 FLOOR PLANS CONTINUED

SECOND FLOOR - 34,181 SF

VACANT

2021 FAN ROOM 2022 SOUTH STATE 1,703 SF 2023 SUITE: 240 LXD: 3/31/21

UNITED WAY OF MERCER COUNTY 8,990 SF SUITE: 230 ERWIN, INC. LXD: 3/31/23 3,036 SF SUITE: 220 LXD: 2/28/22

COMPREHENSIVE HEALTH MANAGEMENT, INC. 6,802 SF SUITE: 260 LXD: 12/31/21

FAN ROOM ELEVATOR LOBBY

PENNSYLVANIA NATIONAL RESTROOMS MUTUAL CASUALTY INSURANCE CO. 11,000 SF SUITE: 200 LXD: 1/31/23

VACANT 2,650 SF SUITE: 210

10 • PROPERTY DESCRIPTION FLOOR PLANS CONTINUED

THIRD FLOOR - 34,111 SF

VACANT

FAN 2021 ROOM

2022

KUMON 2023 3,872 SF SUITE: 340 LXD: 5/31/21 VACANT 4,872 SF SUITE: 320

VACANT 1,023 SF SUITE: 310A

RUBIN EHRLICH & BUCKLEY 5,300 SF SUITE: 310 LXD: 5/31/23

FAN ROOM VACANT ELEVATOR 19,044 SF LOBBY SUITE: 300 RESTROOMS

PROPERTY DESCRIPTION • 11 FINANCIAL ANALYSIS 11 YEAR CASH FLOW PROJECTION

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year Ending $ Per SF Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Year Ending Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030 Potential Gross Revenue Potential Gross Revenue Potential Base Rent $24.60 $2,483,075 $2,554,603 $2,638,487 $2,740,792 $2,825,523 Potential Base Rent $2,880,479 $2,955,584 $3,035,405 $3,101,119 $3,188,975 $3,239,773 Absorption & Turnover Vacancy ($11.84) ($1,194,983) ($752,494) ($53,138) ($129,402) $0 Absorption & Turnover Vacancy ($36,548) ($77,380) ($80,660) ($64,547) ($39,410) $0 Free Rent ($0.85) ($85,317) ($315,734) ($315,235) ($205,645) $0 Free Rent ($37,280) ($86,057) ($116,443) ($29,012) ($105,572) $0 Scheduled Base Rent $11.92 $1,202,774 $1,486,374 $2,270,114 $2,405,745 $2,825,523 Scheduled Base Rent $2,806,651 $2,792,148 $2,838,302 $3,007,560 $3,043,993 $3,239,773 Total Expense Recoveries $0.42 $41,901 $50,136 $70,123 $62,782 $99,104 Total Expense Recoveries $127,844 $137,323 $144,911 $170,006 $176,846 $223,123 Total Potential Gross Revenue $12.33 $1,244,675 $1,536,510 $2,340,237 $2,468,528 $2,924,627 Total Potential Gross Revenue $2,934,495 $2,929,471 $2,983,213 $3,177,566 $3,220,839 $3,462,896 Vacancy Allowance $0.00 $0 $0 ($126,365) ($65,443) ($219,347) Vacancy Allowance ($186,280) ($148,134) ($149,131) ($178,611) ($205,108) ($259,717) Effective Gross Revenue $12.33 $1,244,675 $1,536,510 $2,213,872 $2,403,085 $2,705,280 Effective Gross Revenue $2,748,215 $2,781,337 $2,834,082 $2,998,955 $3,015,730 $3,203,179 Operating Expenses Operating Expenses Administrative Expenses $0.71 $71,552 $73,699 $75,910 $78,187 $80,533 Administrative Expenses $82,949 $85,437 $88,000 $90,640 $93,360 $96,160 Management Fee $0.31 $31,117 $38,413 $55,347 $60,077 $67,632 Management Fee $68,705 $69,533 $70,852 $74,974 $75,393 $80,079 Common Utilities $1.82 $183,881 $190,058 $196,778 $202,577 $208,839 Common Utilities $215,054 $221,452 $228,094 $234,962 $242,048 $249,364 Operating $1.73 $174,502 $207,408 $256,307 $259,634 $275,120 Operating $281,297 $287,477 $296,047 $305,981 $316,700 $328,508 Maintenance $2.59 $260,893 $268,720 $276,782 $285,085 $293,638 Maintenance $302,447 $311,520 $320,866 $330,492 $340,407 $350,619 Real Estate Taxes $2.40 $242,602 $249,880 $257,377 $265,098 $273,051 Real Estate Taxes $281,243 $289,680 $298,370 $307,321 $316,541 $326,037 Property Insurance $0.20 $20,244 $20,851 $21,477 $22,121 $22,785 Property Insurance $23,468 $24,173 $24,898 $25,645 $26,414 $27,206 Total Operating Expenses $9.76 $984,791 $1,049,029 $1,139,977 $1,172,781 $1,221,598 Total Operating Expenses $1,255,163 $1,289,272 $1,327,127 $1,370,016 $1,410,862 $1,457,975 Net Operating Income $2.58 $259,884 $487,481 $1,073,894 $1,230,304 $1,483,682 Net Operating Income $1,493,052 $1,492,065 $1,506,955 $1,628,939 $1,604,868 $1,745,204 Leasing & Capital Costs Leasing & Capital Costs Tenant Improvements $3.52 $355,375 $1,523,587 $174,365 $462,449 $0 Tenant Improvements $85,832 $213,504 $262,131 $143,471 $156,981 $0 Leasing Commissions $1.14 $114,862 $706,679 $121,197 $387,520 $0 Leasing Commissions $59,461 $147,751 $181,218 $99,087 $108,313 $0 Capital Reserves $0.21 $21,414 $22,057 $22,718 $23,400 $24,102 Capital Reserves $24,825 $25,570 $26,337 $27,127 $27,941 $28,779 Total Leasing & Capital Costs $4.87 $491,651 $2,252,323 $318,280 $873,369 $24,102 Total Leasing & Capital Costs $170,118 $386,825 $469,685 $269,686 $293,234 $28,779 Operating CF Before Debt ($2.30) ($231,767) ($1,764,842) $755,614 $356,935 $1,459,581 Operating CF Before Debt $1,322,934 $1,105,240 $1,037,271 $1,359,253 $1,311,634 $1,716,425

12 • FINANCIAL ANALYSIS 11 YEAR CASH FLOW PROJECTION CONTINUED

FINANCIAL ANALYSIS • 13 FINANCIAL ASSUMPTIONS RENTABLE SQUARE FEET MANAGEMENT FEE 100,925 2.5%

START OF YEAR 1 CAPITAL RESERVES January 1, 2020 $0.20 PSF

ANALYSIS PERIOD FREE RENT (MONTHS) 10 Years 0-10,000 SF: New: 4 / Renewal: 2 10,001-20,000 SF: New: 6 / Renewal: 3 CPI/GLOBAL 3.0% RENEWAL PROBABILITY 75% MARKET RENT GROWTH 3.0% LEASE TERM (YEARS/MONTHS) 0-10,000 SF: 5/4 RENT STEPS 10,001-20,000 SF: 10/6 $0.50 Annual Increases MONTHS VACANT BETWEEN LEASES VACANCY/CREDIT LOSS 0-10,000 SF: 6 7.5% 10,001-20,000 SF: 9

REIMBURSEMENTS Base Year Stop + Net TE

MARKET LEASING ASSUMPTIONS Rentable Year 1 TI's ($ PSF) LC's (Average %) Property Area (SF) Occ(%) Market Rent (MG) New Renewal New Renewal 0 - 10,000 SF 55,528 66.9% $25.50 $25.00 $7.50 6.25% 6.25% 10,001 - 20,000 SF 45,397 24.2% $24.50 $35.00 $10.00 6.25% 6.25% Total 100,925 47.7% $25.05 $29.50 $8.62 6.25% 6.25% LEASE ABSORPTION SCHEDULE Tenant Square Footage Start Date Term (Yrs) VACANT - Suite 120/120A 4,854 4/1/2020 5/4 VACANT - Suite 310A 1,023 4/1/2020 5/4 VACANT - Suite 210 2,650 8/1/2020 5/4 VACANT - Suite 320 4,872 12/1/2020 5/4 VACANT - Suite 130 4,968 4/1/2021 5/4 VACANT - Suite 100 15,353 8/1/2021 10/6 VACANT - Suite 300 19,044 12/1/2021 10/6 Total/Avg. 52,764

14 • FINANCIAL ANALYSIS HISTORICAL EXPENSE SUMMARY Year 1 Projection Tenant 2017 Actuals 2018 Actuals (1/1/2020-12/31/2020) PSF Administrative Expenses1 $65,294 $67,445 $71,552 $0.71 Management Fee2 $66,911 $68,322 $31,117 $0.31 Common Utilities3 $125,148 $167,587 $183,881 $1.82 Operating4 $143,201 $148,742 $174,502 $1.73 Maintenance5 $264,909 $245,918 $260,893 $2.59 Real Estate Taxes $227,614 $228,676 $242,602 $2.40 Property Insurance $18,386 $19,082 $20,244 $0.20 Total Operating Expenses $911,463 $945,772 $984,791 $9.76

1. Administrative Expenses includes payroll, office expenses, bank service 4. Operating expenses include snow removal, janitorial services, cleaning, charges, telephone and miscellaneous administrative expenses. exterminating and trash removal. 2. We have assumed a management fee of 2.5% of EGR within our proforma. 5. Maintenance expenses include security and grounds contracts, repairs and maintenance, maintenance payroll, and other miscellaneous repairs 3. Common utilities includes common area electric, gas, water and sewer. and maintenance items.

In New Jersey, properties are not revalued upon sale for tax REAL ESTATE TAXES purposes. Assessments are generally only adjusted when Property Address: 3150 Brunswick Pike the entire municipality undergoes a revaluation or when a Authority: Lawrenceville Township specific property is substantially improved or renovated. Blocks 4201 Lawrenceville Township was last reassessed in 2013 and Lot: 28 has a 2019 equalization ratio of 53.08%. The date of the next Acres: 45.4 planned town wide reassessment is unknown. ASSESSED VALUE Land: $3,131,700 In 2006, the State of New Jersey expanded the so called Improvements: $5,035,300 “Mansion Tax” to include Class 4A (commercial) property. This Total: $8,167,000 2019 Tax Rate: 2.865% purchaser tax covers certain commercial properties where the Total Taxes Based on 2018 Tax Rate: $233,985 purchase price is greater than $1 million. The tax imposed is Tax PSF: $2.32 1% of the entire amount of the consideration. This tax is in addition to, and separate from, the realty transfer tax imposed upon the seller of all real property in New Jersey.

FINANCIAL ANALYSIS • 15 RENT ROLL

TENANT INFORMATION BASE RENT EXPENSE BASE YEARS RENEWAL OPTIONS % Lease Lease Current Expense Base Year Base Year Termination Tenant Name Suite # SF of Total Start End Date $/SF Rent/Yr Base Year CAM Amount Tax Amount Option Year ROFO/ROFR Option HNTB Corporation 130A 1,458 1.4% 10/1/2019 11/30/2021 10/1/2019 $26.50 $38,637 HNTB Corporation 2019 TBD TBD ------10/1/2020 $27.00 10/1/2021 $27.50 Kettler Management 150 1,750 1.7% 2/12/2016 11/30/2021 6/1/2019 $23.50 $41,125 Kettler Management 2016 $715,915 $261,690 1-5 year 2021 -- -- 6/1/2020 $24.00 option 6/1/2021 $24.50 NJCASA 160 4,250 4.2% 9/1/2018 8/30/2023 9/1/2019 $18.50 $78,625 NJCASA 2018 $795,378 $229,289 1-5 year 2023 -- -- 9/1/2020 $19.00 option 9/1/2021 $19.50 9/1/2022 $20.00 Penn National Insurance 200 11,000 10.9% 11/1/1997 1/31/2023 4/1/2019 $24.00 $264,000 Penn National Insurance 2017 $707,636 $261,690 ------4/1/2020 $24.50 4/1/2021 $25.00 4/1/2022 $25.50 Erwin, Inc. 220 3,036 3.0% 11/1/2016 2/28/2022 11/1/2019 $23.00 $69,828 Erwin, Inc. 2016 $715,915 $291,060 1-5 year 2022 -- -- 11/1/2020 $23.50 option 11/1/2021 $24.00 United Way of Greater Mercer 230 8,990 8.9% 8/15/2011 3/31/2023 8/1/2019 $25.50 $229,245 United Way of Greater Mercer 2011 $730,468 $346,321 ------8/1/2020 $26.00 8/1/2021 $26.50 8/1/2022 $27.00 South State, Inc. 240 1,703 1.7% 4/1/2018 3/31/2021 4/1/2019 $18.50 $31,506 South State, Inc. 2018 $795,378 $229,289 ------4/1/2020 $19.08 Comprehensive Health Management 260 6,802 6.7% 5/4/2016 12/31/2021 1/1/2020 $23.00 $156,446 Comprehensive Health Management 2016 $782,153 $282,778 1-5 year 2021 If at any time any 1/1/2021 $23.50 option space on the second floor becomes available tenant shall have a one-time right of first refusal. Rubin, Ehrlich & Buckley, P.C. 310 5,300 5.3% 6/1/2010 5/31/2023 6/1/2019 $22.50 $119,250 Rubin, Ehrlich & Buckley, P.C. 2018 $797,878 $261,690 ------6/1/2020 $23.00 6/1/2021 $23.50 6/1/2022 $24.00 Kumon North America, Inc. 340 3,872 3.8% 6/1/2016 5/31/2021 6/1/2019 $24.00 $92,928 Kumon North America, Inc. 2006 $680,046 $440,501 1-5 year 2021 -- -- 6/1/2020 $24.50 option Occupied Space 48,161 47.7% VACANT 100 15,353 15.2% VACANT 120/120A 4,854 4.8% VACANT 130 4,968 4.9% VACANT 210 2,650 2.6% VACANT 300 19,044 18.9% VACANT 310A 1,023 1.0% VACANT 320 4,872 4.8% Total Vacant Space 52,764 52.3% Total 100,925 100.0%

16 • FINANCIAL ANALYSIS RENT ROLL CONTINUED

FINANCIAL ANALYSIS • 17 MARKET OVERVIEW THE PRINCETON OFFICE MARKET

Anchored by Princeton University, the Princeton Office market is one of the nation’s most prestigious corporate office locations. A major component of the success of this market is its equidistant location from Manhattan and Center City Philadelphia. The Princeton market continues to draw new tenants and generate internal growth. Consequently, there is continued and sustained demand for space in the market.

The Princeton Office market contains 12.7 million square feet among 104 buildings. Of this space, approximately 8.9 million square feet, contained within 71 buildings, is classified as Class A space, such as Crossroads Corporate Center. The Class A market in this area is one of the strongest performing markets in the State. With a current vacancy rate of 12.4%, the Class A office market in Princeton is significantly below the Class A Northern New Jersey average of 16.8%.

Princeton Princeton Northern New Jersey Market Overall Class A Market Class A Market Number of Buildings 104 71 400 Total RBA 12,742,443 8,883,764 72,227,968 Vacancy Rate 12.1% 12.4% 16.8% Avg. Asking Rent $26.35 $28.06 $27.02

Source: CoStar Property

Additionally, the Princeton Class A office market has posted average asking rents of $28.06 PSF (Gross + TE) in the second quarter of 2019, which is approximately 3.85% higher than the total Class A average asking rent in the entire Northern New Jersey Office Market ($27.02 PSF). The proximity to Princeton University, coupled with a highly skilled workforce, superior transportation infrastructure, area amenities, Class A product and high quality of life makes Interstate 295 a highly appealing corporate location and one of the few submarkets in the state that has true cachet. Favorable leasing activity over the past year includes a lease for 122,163 SF at 1700 Merrill Lynch Drive by healthcare giant Horizon Blue Cross/Blue Shield as well as a lease for 90,070 SF at 777 Scudders Mill Road by the biotechnology company Genmab. The lack of new construction in the submarket has also influenced favorable market fundamentals, as no new product was delivered in 2018 or 2019, while there is no new construction in the pipeline, further supporting the area’s sound dynamics.

18 • MARKET OVERVIEW CORPORATE PRESENCE

The Princeton Route 1 Corridor boasts one of the largest corporate bases in New Jersey. This concentration of large corporate users is unique within the state in that the corporate-owned market is nearly equal in size to the investor owned market, which adds significantly to the stability in the submarket.

COMPANY INDUSTRY LOCATION SF Pharmaceutical Lawrence, Pennington, South Brunswick 2,600,000 Financial Services Hopewell 1,600,000 Pharmaceutical/Healthcare North Brunswick, South Brunswick 1,400,000 Financial News/Data South Brunswick 1,100,000 Technology and Medical Research West Windsor 600,000 Pharmaceutical Plainsboro 594,000 Education Ewing 550,000 Insurance West Trenton 500,000 Pharmaceutical Titusville 475,000 Insurance Plainsboro 400,000 Healthcare Services West Windsor 300,000 Consumer Products Ewing 250,000 Engineering West Windsor 230,000 Financial Services Skillman 220,000 Financial Services West Windsor 209,799 Fragrance & Flavor Manufacturer Plainsboro 200,000 Pharmaceutical West Windsor 200,000 Security Systems and Devices West Windsor 170,000 Financial Services East Brunswick 160,000 Energy Services West Windsor 150,000 Pharmaceutical Plainsboro 150,000 Research and Data Collection Services West Windsor 141,176 Pharmaceutical West Windsor 140,000 Satellite Communications Plainsboro 130,000 Financial Services Plainsboro 115,000 Pharmaceutical Cranbury 115,000 Chemical Company Ewing 110,000 Electronics/Engineering Plainsboro 100,000 Medical Imaging Devices Plainsboro 100,000 Publishing East Windsor 100,000

MARKET OVERVIEW • 19 COMPETITIVE PROPERTIES

The primary competitive set for the Property contains approximately 476,381 square feet and is comprised of four Class A office properties and sits within the Princeton submarket in the communities of Princeton and Hamilton Township. The competitive set is exceptionally well leased with an average occupancy of 95.4% and direct asking rents ranging from $24.00 to $25.00 per square foot.

Direct Direct Asking Building Address City Year Built RBA Available Space Occupancy Rent (Net TE) 1 Independence Way Princeton 1982 113,988 - 100.0% $24.50 4 Independence Way Princeton 1987 138,000 - 100.0% $24.00 5 Independence Way Princeton 1985 113,244 12,570 88.9% $25.00 3705 Quakerbridge Road Hamilton Twp. 1990 111,149 9,225 91.7% $24.00 Total/Wtd. Avg. 476,381 21,795 95.4% $24.36

20 • MARKET OVERVIEW 518

603

679

Lincoln Hwy

601

Raymond Rd Stouts Ln 206 KINGSTON Monmouth

C Junction h 522

e Station

y Ridge Rd

i 27 l

l Brunswick Pike R DAYTON d

1 INDEPENDENCE WAY 683

Great Rd Harrison St 1 Friendship Rd

C o l l e Bayard Ln g 5 INDEPENDENCE WAY Princeton e R Miller Rd Forrestal d

PRINCETON Village E

571 4 INDEPENDENCE WAY 629 Princeton Broadway Rd 604 614 University Forrestal

Springdale Rd Campus Rosedale Rd Princeton Princeton Station University Medical Center

Dey Rd P ROSEDALE lain sboro Rd

569 Q

a k Sc e ud Petty Rd Carter Rd de r rs M il R l Rd d ROUTE 1 CORRIDOR PRINCETON Princeton Rd JUNCTION Grovers Mill Rd PLAINSBORO 614

A Province Line Rd le x a n d e r R d 615 Mercer Rd CRANBURY 615 Cranbury Neck Rd Princeton Carnegie Junction Center Station 206 615

Brunswick Pike e

a d

o WEST

d WINDSOR 638 571 535

P Clarksville Rd N 685

Quaker Bridge Rd 95

W ge Rd Villa Ba ke rs B a s Mercer in 1 County Park Rd

Lake Mercer

295 3705 QUAKERBRIDGE ROAD

MARKET OVERVIEW • 21 LOCATION & DEMOGRAPHICS LOCATION OVERVIEW Crossroads Corporate Center is in Lawrenceville (Lawrenceville Township), Mercer County, New Jersey. The Property is conveniently positioned along Interstate 295 and Office Rd, less than one mile from the Quakerbridge Mall and the Mercer Mall. Nearby major highways include Interstates 95 and 195 and Routes 1, and 206 which provide additional labor access from various surrounding regions. Strategically located between the largest metropolitan area in the country, New York City, and Philadelphia, the 5th largest metropolitan area in the U.S., the Princeton area has consistently attracted large corporate users who are drawn to the region because of its large, talented labor pool, emphasis on higher education and high quality of life. The Princeton area boasts extremely strong demographics and key amenities, a suburban setting and one of the top universities in the country. Crossroads Corporate Center lies within the Princeton/I-295 Corridor, a magnet for large technology, pharmaceutical and financial services firms for over three decades, and benefits from being minutes from a 350-room Hyatt Regency hotel and conference center, as well as numerous office park amenities and various nearby retail options. The Princeton Junction train station, just minutes from the Property, is one of the busiest in the state and offers NJ Transit and Amtrak connections throughout the Northeast Corridor.

• Positioned just off Interstate 295 and with proximity to I-95/New Jersey Turnpike and Routes 1 and 206. • Home of The Lawrence Historical Society which includes The Brearley House, home of John Brearley, one of the first signers of the U.S. constitution and The National Guard Militia Museum of NJ. • Highly educated labor pool. (66.55% with a bachelor’s degree or higher). • Rider University, 4.8 miles from Crossroads Corporate Center, ranked #35 in Regional Universities North by US News and World Reports. • Princeton University, 5.1 miles from Crossroads Corporate Center, ranked best in the U.S. by U.S. News and World Reports • Located adjacent to the popular Village Park, with a lighted outdoor sports facility, dog park and exercise paths. • Deemed a commuter town with most residents traveling just minutes to Princeton and Trenton for employment. • Quakerbridge Mall, 1 mile from Crossroads Corporate Center, is where many tenants go to shop, eat lunch and socialize. Also, with Costco Wholesale only being 1.8 miles from Crossroads Corporate Center, tenants can socialize, shop and eat at over 120 stores and do their grocery shopping at one of the largest wholesale centers in the world. • Located in close proximity to New Jersey’s Life Science/Technology Corridor (aka “Einstein Alley”) with both Princeton University and Rutgers University having campuses nearby. • Approximately 10 miles from Bucks County, Pennsylvania, from which the Princeton area draws a significant labor pool.

22 • LOCATION & DEMOGRAPHICS DEMOGRAPHIC PROFILE Crossroads Corporate Center benefits from its ideal location minutes from one of New Jersey’s most affluent areas. Access to major employment centers, as well as a strong local corporate base, provides a bustling economy and hub of local employment for those who live in and around the Princeton area. The average household income in Lawrenceville is $138,338, while the average household income within three miles of the Property is $157,902.

Description 3 Mile Radius 5 Mile Radius 10 Mile Radius Lawrenceville Population 2024 Projection 41,188 115,297 481,510 30,164 2019 Estimate 39,858 112,762 474,485 29,141 2010 Census 37,007 98,475 423,014 27,165 Growth 2019-2024 3.3% 1.9% 1.5% -0.8% Growth 2010-2019 7.7% 3.9% 2.6% -3.2% Growth 2000-2010 21.9% 8.0% 5.3% -4.8% Households 2024 Projection 14,935 53,702 117,929 1,692 2019 Estimate 14,497 52,682 175,060 1,734 2010 Census 13,564 50,972 170,749 1,747 Growth 2018-2024 3.2% 1.9% 1.6% -0.4% Growth 2010-2019 6.8% 3.4% 2.5% -2.1% Growth 2000-2010 19.1% 11.5% 6.3% -0.7% Income 2019 Est. Average Household Income $157,902 $138,666 $131,110 $138,338 Housing Value 2019 Est. Median All Owner-Occupied Housing Value $366,490 $314,786 $333,267 $357,927

Source: 2019 The Nielsen Company

LOCATION & DEMOGRAPHICS • 23 PRINCETON AND RUTGERS RESEARCH CORRIDOR 9W 6 94 (PARRC/EINSTEIN’S ALLEY) 84

Much of the prestige, highly skilled workforce and economic 94 284 17A power of the Princeton area emanates from Princeton 23 210 University. Princeton University is one of the world’s 17 94 preeminent educational facilities, a significant real estate 565 202 206 304 owner as well as the area’s largest private employer. Central

513 87 New Jersey, like the Research Triangle of North Carolina, 287 17 Silicon Valley in California and Route 128 in Massachusetts, 23 is one of the premier research and development areas in 94 the United States. Known as Einstein’s Alley, this corridor includes a 20-mile stretch of Route 1 between Trenton and 517 202 80 15 New Brunswick and is anchored by Princeton University in 512 80 the south and Rutgers University in the north. Largely due to 46 23 10 46 the concentration of these world-class academic611 institutions, 95 Einstein’s Alley became a magnet for corporations beginning 206 10 24 21 during World War II and continuing with increasing strength31 24 202 280 since the late 1970s. NEW YORK CITY 287 Among the first private corporations to establish research 78 78 facilities along the PARRC was RCA Laboratories,611 which 22 202 278 22 440 was founded in 1942 and later became the David Sarnoff 31

Research Center. American Cyanamid manufactured32 the 523 287 27 first commercial sulfa drug, and Carter Wallace in Cranbury 12 NEW JERSEY 1 developed the tranquilizer Miltown in the 1950s. Other 202 major research and development facilities in Einstein’s Alley 206 130 36 27 include: Sanofi – Aventis (formerly Hoechst Marion Roussel 18 523 and Rhône-Poulenc), National Starch and Chemical, Janssen 34 79 35 Pharmaceuticals, Colgate Palmolive, Telcordia Technologies, 9 36 Lucent Technologies, Bristol-Myers Squibb, Johnson & 1 18 Johnson, Union Camp Corporation (acquired by International 71 95 33 PENNSYLVANIA 33 66 Paper), PA Consulting, AT&T, Siemens and ETS. The link 295 between the university and laboratory is very close and the 1

276 Einstein’s Alley region’s emphasis on R&D was started because 195 35 of the area’s strong base in education. Central New Jersey is 73 one of the most concentrated areas of academic research 9 130 295 in the country. Two of the nation’s oldestPHILADELPHIA universities are 539 206 68 70 based here in addition to a dozen other institutions95 of higher education. 38 37 76

24 • LOCATION & DEMOGRAPHICS PRINCETON UNIVERSITY Princeton University, founded in 1746 as the College of New Jersey, is located less than five miles from the Property. Princeton University is the fourth oldest college in the United States, one of eight Ivy League schools and one of the most prestigious universities and research centers in the world and was ranked number 1 National University for 2017 by U.S. News & World Report. The university’s main campus consists of approximately 8 million square feet of space in 160 buildings on 500 acres and is home to 8,138 graduate and undergraduate students. The faculty includes five recipients of the Nobel Prize in physics, literature, economic sciences, and medicine.

RUTGERS UNIVERSITY At the northern section of the Route 1 corridor is Rutgers University, the State University of New Jersey, with over 65,000 students on campuses in Camden, Newark and New Brunswick/ Piscataway. Rutgers is a leading national research university and is one of the major state university systems in the nation. With the establishment of the Rutgers Biomedical and Health Sciences program, the University is considered one of America’s largest and most comprehensive university based centers for the study of health and heath care. Rutgers has 37 faculty that are members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The University has been awarded a high level of grants and contracts; $658 million in externally sponsored research grants and contracts were logged in 2016.

The University contains over 175 centers and institutes, and sponsors a variety of research projects. Rutgers has eight schools that are dedicated to biomedical and health sciences: Other research centers and institutions of higher learning in Einstein’s Alley include:

• Ernest Mario School of Pharmacy • The Institute for Advanced Study • Graduate School of Biomedical Sciences • David Sarnoff Research Center • New Jersey Medical School • University of Medicine and Dentistry • Robert Wood Johnson Medical School (Robert Wood Johnson Medical School) • Rutgers School of Dental Medicine • Rider College • School of Related Health Professions • Middlesex County College • School of Nursing • The Thomas A. Edison State College • School of Public Health

LOCATION & DEMOGRAPHICS • 25 HIGHWAY TRANSPORTATION

Princeton’s central location allows it to draw employees from South and Central New Jersey as well as Bucks County, Pennsylvania making Princeton’s location relative to highways and mass transit a critical factor in the market’s growth over the past two decades. Relevant interstate and other highways to the Property and the Princeton area include:

INTERSTATE 295 ROUTE 206 295 206 The I-295/95 beltway ties together all of the major This highway is another one of New Jersey’s main roadways at the Southern end of the Route 1 north/south highways in the western portion of the Corridor in Mercer County and acts as the primary state, connecting Montague Township in Sussex conduit to large labor pools located in Pennsylvania County to the north to Hammonton Township in and Southern New Jersey. The I-295/95 beltway also Atlantic County to the south. This highway is mostly facilitates east/west traffic via Interstate 195 and two lanes, four in some areas, and merges with Route connects the New Jersey Turnpike and Garden State 202 in a portion of Somerset County. Parkway. ROUTE 27 27 ROUTE 1 This four lane-highway connects with Route 18 to 1 This highway is one of the state’s principal north/ the southwest and Metropark and the Garden State south thoroughfares for automobile traffic that Parkway to the northeast, intersecting Route 1, runs from New York City to Philadelphia. Route 1 is leading to the Princeton/Trenton market. Route 27 primarily four lanes and converges with Route 9 in runs parallel to Route 1 in Middlesex County, and is Woodbridge up to the George Washington Bridge. one of the major north/ south thoroughfares in the This roadway is the one most often associated with county. the Princeton retail and office market, hence the “Princeton/Route One Corridor”.

THE NEW JERSEY TURNPIKE/INTERSTATE 95 95 This Interstate provides access north to Maine and south to Florida. Completed in 1952, the Turnpike has since been widened to encompass a unique “dual-dual” roadway design which separates heavy commercial traffic and passenger cars between interchanges 8A and 14. The New Jersey Turnpike (Exit 8A) is located approximately eight miles east of the Property.

26 • LOCATION & DEMOGRAPHICS PUBLIC TRANSPORTATION

The Property is approximately ten minutes from the major mass transit center of Princeton Junction which offers train, bus and Amtrak service. NJ Transit service (Northeast Corridor Line) and Amtrak provide connections to Philadelphia, MetroPark (in Iselin) and New York City. The NJ Transit 600 route provides bus service to several area amenities, transportation hubs and corporate facilities including Princeton Forrestal Village, the Trenton Train Station, Princeton Junction, Quakerbridge Mall and Princeton Marketfair. The Princeton Jitney provides service between Princeton Junction train station and downtown Princeton.

AIR TRANSPORTATION

Newark Liberty International Airport is one of the largest airports in the New York metro area and the dominant airport in the state. The Airport is located less than 40 miles north of the Property. Newark Liberty International Airport is one of the busiest airports in the northeast, serving over 35 million passengers a year. Twenty-five airlines operate out of Newark International, with hundreds of flights arriving and departing daily. The Property is also located 15 miles from Trenton Mercer Airport, which is the regional airport for Frontier Airlines, while Philadelphia International Airport is one hour from the Property and is a major international hub for American Airlines.

LOCATION & DEMOGRAPHICS • 27 AREA AMENITIES RECREATION The Princeton area offers plentiful recreation opportunities including major parks such as the Princeton Battlefield State Park in Princeton. Golf courses and country clubs within approximately eight miles of the Property include Princeton Country Club, Green Acres Country Club, Springdale Golf Club, Mercer Oaks Golf Course and the exclusive TPC Jasna Polana designed by the legendary Gary Player which features a PGA TOUR quality practice facility.

LODGING RETAIL/SHOPPING Given the high concentration of corporate locations and Being conveniently located off of Route 1, Crossroads headquarters, as well as Princeton University, there are ample Corporate Center sits along one of the largest retail markets lodging options in the Princeton area. Some of the main hotels in Northern New Jersey. The Route 1 retail corridor features in the area include the following: Hyatt Regency Princeton shopping malls, retail strips and stand-alone retail facilities. on Alexander Road encompasses 350 guest rooms, a fully The major shopping centers listed below are located along equipped fitness center, indoor/outdoor pools, tennis courts, Route 1 and are within 5 minutes from the Property. 20,000 square feet of conference facilities and the Crystal Garden Restaurant; The Crown Plaza Princeton - Conference QUAKERBRIDGE MALL Center, located on Scudders Mill Road, contains 364 guest Quakerbridge Mall is a two-level, 1.1 million square foot rooms and current meeting space of over 48,000 square feet, mall that is only 1.1 miles away from Crossroads Corporate makes it the largest conference centers in New Jersey. Other Center. The property was built in 1976 and is anchored by upscale lodging options in the area include the Doral Forrestal Lord & Taylor, Macy’s and JC Penney. The Mall features over Conference Center (which re-opened as a Marriott Hotel in 120 specialty stores and a food court, giving tenants a place early 2007), Westin Princeton, Nassau Inn, Courtyard Marriott to shop, eat and socialize. With both shopping areas being in Princeton and Homewood Suites. close proximity to Crossroads Corporate Center, tenants can easily do all of their shopping within a 2-mile radius of the property.

28 • LOCATION & DEMOGRAPHICS MARKET FAIR

SQUARE AT WEST WINDSOR

NASSAU PARK PAVILION 1

MERCER MALL

QUAKERBRIDGE MALL

295

MERCER MALL MARKET FAIR 295 Mercer Mall is a 500,000 SF shopping center that is located on Market Fair is a 240,000 SF shopping center that is anchored Route 1 across the road from the Quakerbridge Mall. Home by Barnes & Noble and a United Artists Theater. The Mall to national and regional retailers such as Bed, Bath & Beyond contains recognized retailers such as Anthropologie, Pottery and Petco, Mercer Mall is anchored by ShopRite and Raymour Barn and Williams-Sonoma, as well as restaurants such as P.F. and Flanigan. Chang’s and T.G.I. Friday’s.

NASSAU PARK PRINCETON FORRESTAL VILLAGE Nassau Park is a 600,000 SF retail center and a 430,000 SF The Property is located within minutes of Princeton Forrestal pavilion. Nassau Park I is predominantly occupied by power Village, which is a 550,000 SF mixed-use office and retail center tenants such as Wal-Mart and Home Depot, as well as complex situated on 52 acres. Forrestal Village features fine mid sizes tenants such as PetsMart and Best Buy. Nassau Park restaurants such as Ruth’s Chris Steakhouse, and Salt Creek II is anchored by Target, Wegmans and Kohls. The center is Grill. The complex also includes a Westin Hotel, a 73,000 SF located at the intersection of Route 1 and Quakerbridge Road. fitness center, spa, upscale shops and 300,000 SF of Class A office space. Princeton Forrestal Village is located off of Route 1, situated northwest of the Novo Nordisk North American Headquarters.

This Offering Memorandum has been prepared by Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) for use by a limited number of recipients. All information contained herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. JLL and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property may be made available, in Owner’s or JLL’s sole discretion, upon written request by interested and qualified prospective investors.

Owner and JLL each expressly reserves the right, in its sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants who have a valid need to know business reason to know such information (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of JLL and the Owner, (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or JLL or for any purpose other than use in considering whether to purchase the property, and (d) recipient will notify each of the need to know parties of the terms of this agreement and will be responsible for breach of same by any of the need to know parties. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to JLL. NEW JERSEY 1776 On The Green | 67 East Park Place, 4th Floor | Morristown, NJ 07960 | T: 973-549-2000

MARKETING TEAM

JOSE CRUZ KEVIN O’HEARN STEVE SIMONELLI Senior Managing Director Senior Managing Director Senior Director T: 973-549-2011 T: 973-549-2018 T: 973-549-2035 [email protected] [email protected] [email protected]

MICHAEL OLIVER MARK MAHASKY J.B. BRUNO Senior Director Director Associate T: 973-549-2032 T: 973-549-2010 T: 973-549-2022 [email protected] [email protected] [email protected]

FINANCING: GREGORY H. NALBANDIAN | Senior Managing Director | T: 973-549-2021 | [email protected]

LEASING: THOMAS ROMANO | Managing Director | T: 609-423-2490 | [email protected]