INTERSTATE COMMERCE PARK Greensboro | , 27406

Confidentiality Agreement & Offering Memorandum

100% Leased, Value-Add, Under Market Rents INTERSTATE COMMERCE PARK INVESTMENT OVERVIEW

Interstate Commerce Park (ICP) is a 218,537 square foot distribution and warehousing property comprised of five buildings on 9.99 acres of land in Greensboro, North Carolina. ICP presents the rare opportunity of owning a fully stabilized asset, while at the same time providing a value-add opportunity due to future lease expirations that provides for organic rent growth and upside. One of the site’s greatest assets is its location at the intersection of I-85/I-40 and S. Elm/Eugene Street at exit #125. The property has visibility from I-85/I-40, which has 154,827 VPD and has frontage on Elm/Eugene Street, which has 30,137 VPD. The property has historically low vacancy rates, and the current occupancy rate is 100%. Two factors have mainly attributed to the low vacancy rate: first, the below market rental rates are attractive to tenants, and second, the location is convenient and has easy access to I-85 and the entire North Carolina Triad area. This is especially attractive to distributors with intensive shipping/trucking requirements.

ICP is not only an ideal building for distribution and warehousing tenants, but it also represents an outstanding opportunity for real estate investors. The property has a great tenant mix with national tenants such as Goodyear Tire, Prologix, and Northern Composites, but also strong regional and local tenants such as Snider Tire, Cregger and Pegram-West.

COLLIERS INTERNATIONAL | 2 INTERSTATE COMMERCE PARK INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS >> ORGANIC RENT GROWTH POTENTIAL Interstate Commerce Park has in-place rents that are well below market rents ($2.80 PSF NNN Avg). The average market rental rate is $4.50 PSF NNN. Closing this gap as expiring leases are brought to market rent levels, provides an investor with solid rent and value growth opportunity.

>> IDEAL LOCATION Situated at a highly visible intersection in the southern portion of the city of Greensboro with frontage on I-40/I-85, Interstate Commerce Park is well-located in a primary traffic corridor in Greensboro. As part of the Triad region, the property also benefits from its accessibility to major markets along the Eastern Seaboard.

>> BELOW REPLACEMENT COSTS Built in phases between 1973 and 2002, Interstate Commerce Park offers an opportunity to acquire a high- quality, low maintenance asset at well below replacement cost.

COLLIERS INTERNATIONAL | 3 INTERSTATE COMMERCE PARK

PROPERTY OVERVIEW DOWNTOWN GREENSBORO

110 E Meadowview Rd Address Greensboro, NC 27406

Zoning LI - Light Industrial

Net Rentable Square Footage 218,537

Number of Buildings 5

Buildings 101, 112, 114: 2001-2002 Year Constructed Buildings 102, 110: 1973

Land Area 9.9 acres

Space Flexibility 3,200-218,530 SF

Occupancy 100% ST

Number of Tenants 11

Asking Price $8,199,000

S ELM EUGENE

BRANCH 40 85 EXIT 125 BRANCH40 85

SOURCE: Google Maps Photorealistic Rendering

COLLIERS INTERNATIONAL | 4 INTERSTATE COMMERCE PARK PROPERTY OVERVIEW

SITE DESCRIPTION

Property Tax ID 0029829

Zoning LI - Light Industrial District

Land Area 9.99 acres; 435,164 SF

Topography Level with no areas of wetlands

East Meadowview Rd (521 ft) & Frontage/Access South Elm Eugene Street (417 ft)

CONSTRUCTION (Bldgs 101, 112 & 114)Heavy Metal Frame with Concrete Tilt Up Panel Construction Structural system (Bldgs 102 & 110) Concrete block construction with steel

Foundation Monolithic Slab Foundation

Flat & Gable Roofs with Metal & Membrane Roof Coverings, Metal Guttering Concrete tilt up walls on Buildings 112, 114, & 101, Exterior Wall concrete block exterior on Buildings 102 & 110

COLLIERS INTERNATIONAL | 5 INTERSTATE COMMERCE PARK PROPERTY OVERVIEW

IMPROVEMENTS MECHANICAL Combination of Gas & Electric Ceiling Height ±16’ - 24’ Eave Height HVAC Warehouse Heating System and Central A/C for office areas Windows Glass & Metal Storefront UTILITIES Flooring Concrete Water & Sewer City of Greensboro (BLDGS 101, 112, 114) Halogen/Florescent Lighting Lighting (BLDGS 102 & 110) LED Electricity Duke Energy

Life Safety 98.5% Sprinklered Gas Natural Gas Tenants provide individual Security Southern Bell Telephone security systems for each space Telephone

COLLIERS INTERNATIONAL | 6 INTERSTATE COMMERCE PARK SITE PLAN

E MEADOWVIEW RD

Building 112

Building 110

Building Building 102

114 ST

S ELM EUGENE EUGENE ELM S Building 101

E C A R T E R E T S T

EXIT 125 40 85

COLLIERS INTERNATIONAL | 7 INTERSTATE COMMERCE PARK LOCATION MAP | SURROUNDING WORKFORCE IDEAL LOCATION OFF I- 40 & MINUTES TO DOWNTOWN GREENSBORO Interstate Commerce Park not only has a highly visible location along highways I-85 and I-40, it is also near a variety of restaurant options. Less than 3 miles away is Downtown Greensboro, Greensboro Coliseum Complex, UNCG, and over 2 million square feet of retail.

LESS THAN 3 MI. TO Greensboro Fire Station, Police GREENSBORO CBD Station, & Water Resources S Elm Euguene St

INTERSTATE Randleman Rd Randleman BRANCH40 COMMERCE PARK 85

154,827 ADT

BRANCH 30,137 ADT 85 40

COLLIERS INTERNATIONAL | 8 INTERSTATE COMMERCE PARK LOCATION MAP | DISTANCES

WINSTON-SALEM GREENSBORO DURHAM

110 E MEADOWVIEW RALEIGH

CHARLOTTE

DRIVING DRIVING LOCATION NOTES LOCATION NOTES DISTANCE DISTANCE Fronts 9 Minutes +17,929 On-campus Students Interstate 85/40 I-85/I-40 154,827 VPD UNCG 3.3 Miles +250 Graduate, Undergraduate and Certificate Programs

Piedmont Triad 8 Minutes Home to 5 International Brands 13 Minutes +2,137 On-campus Students International 6.3 Miles Over +12,000 Jobs Created Guilford College 6.3 Miles Guilford County Airport (PTI)

8 Minutes #1 In Economic Development in NC 25 Minutes +242,203 Population DOWNTOWN WINSTON SALEM GREENSBORO 2.4 Miles #4 In Economic Development in Southeast US 12 Miles Located in Forsyth County (County Seat)

1 Hour 16 Minutes 9,943,331 Passengers Per Year Centralized between Raleigh & Charlotte RDU Int. Airport 13 Minutes 10.8 Miles 77.4 Miles 4,640 Employees

1 Hour RTP 1 Hour Charlotte Douglas 45,909,899 Passengers Per Year 7 Minutes Largest Research Park in the Country 32 Minutes Ranked 5th in USA’s Busiest Airports 250 Companies | 50,000 People of Expertise Int. Airport 96 Miles Park 72.6 Miles

COLLIERS INTERNATIONAL | 9 INTERSTATE COMMERCE PARK U.S. INDUSTRIAL MAP ±40% of the U.S. population lives within a day’s drive ±55% of the U.S. population lives within a 750 mile radius

Detroit New York Chicago MSA Headquartered FORTUNE 1000 Companies Pittsburgh Rank Name Revenue ($B)

Washington D.C. 23 Bank of America $95.2 Cincinnati 50 Lowe’s $56.2

250 Miles Richmond St. Louis 116 Duke Energy $25.7 Louisville Norfolk 139 Nucor $21.1 500 Miles Greensboro 315 Sonic Automotive $9.2 Nashville Morehead City 366 Sealed Air $7.8 Wilmington Memphis 470 Domtar $5.6

Atlanta Charleston 514 American Tire Distributors $5.0 Birmingham 750 Miles 542 SPX $4.7 Savannah 596 Resolute Forest Products $1.3 610 Belk $4.1 640 CommScope $3.8 715 Carlisle $3.2

Tampa 772 Babock & Wilcox $2.9 834 Curtiss-Wright $2.6 837 Albemarle $2.6

COLLIERS INTERNATIONAL | 10 INTERSTATE COMMERCE PARK THE TRIAD & EASTERN SEABOARD DISTRIBUTION

One of the more significant factors in the local economy is its accessibility to major markets. The Triad is located along the eastern seaboard, approximately halfway between Washington, DC and , . The Triad’s central location relative to larger metropolitan areas has helped to establish it as a distribution center for the Piedmont area.

The Triad is halfway between Charlotte and Raleigh, the largest cities in North Carolina. Three metropolitan areas, Greensboro/ High Point/Winston-Salem, Raleigh, and Charlotte, form the metropolitan hubs of North Carolina.

Greensboro/High Point/Winston-Salem (TRIAD) is in the geographic center of these metropolitan areas, within 1.5 hours driving time of both Charlotte and Raleigh. Greensboro’s central location vis-à-vis these major markets have contributed to its emergence as a regional distribution center. 100 miles

DRIVING DRIVING PORTS AIRPORTS DISTANCE DISTANCE

Wilmington, NC 208 Miles 14 Miles 200 miles

Morehead City, NC 224 Miles Person County 60 Miles 300 miles Norfolk, VA 232 Miles RDU International 77 Miles

Charleston, SC 280 Miles Charlotte Douglas 95 Miles

COLLIERS INTERNATIONAL | 11 INTERSTATE COMMERCE PARK TRIAD | INDUSTRIAL MARKET OVERVIEW (GREENSBORO, WINSTON-SALEM, HIGHPOINT)

TRIAD INDUSTRIAL MARKET The Triad industrial market contains approximately 266 million square SECOND LARGEST feet of leased and owner occupied INDUSTRIAL MARKET IN THE CAROLINAS distribution and manufacturing space, second only to Charlotte as the largest industrial market in the Carolinas. SOUTH GREENSBORO SUBMARKET Net absorption for the overall Triad Interstate Commerce Park is located in the heart of the South Greensboro Submarket, which includes market was positive 2,047,241 million 7.7 million square feet of distribution and manufacturing space. The average rental rate in this submarket square feet in the 4th quarter of 2017 is .20 cents higher psf than the overall Greensboro market. Demand for this submarket is generated alone. Vacancy rates have declined by its proximity to Interstates 40 & 85, and Highways 70 & 220. The Federal Express Air Hub and the dramatically to 4.3% of direct vacancy FedEx ground mega-hub have attracted many companies to the area seeking outbound logistics, low throughout the market. Greensboro operating costs, and a highly educated labor pool. Additionally, from this location companies literally is equidistant from Atlanta, GA and sit in the epicenter of North Carolina. This is as central as one can get. Washington, DC.

OCCUPANCY RATE NET ABSORPTION AVG. ASKING LOCATION INVENTORY (4TH QUARTER 2018) (PAST 12 MONTHS) NNN RENT SOUTH GREENSBORO 7,700,000 97% 154,000 $4.64 TOTAL GREENSBORO INDUSTRIAL 153,000,000 95% 414,000 $4.44 INTERSTATE COMMERCE PARK 218,537 100% 75,698 $2.80

COLLIERS INTERNATIONAL | 12 INTERSTATE COMMERCE PARK TRIAD | INDUSTRIAL MARKET OVERVIEW (GREENSBORO, WINSTON-SALEM, HIGHPOINT)

NO. NO. NO. TRIAD INDUSTRIAL MARKET The 266 Million SF Greensboro–Winston-Salem–High Point (“Triad”)warehouse market is second only to Charlotte as the 1 2 5 MANUFACTURING INDUSTRIAL MANUFACTURING largest industrial market in the Carolinas and has recorded an LOCATION IN NC MARKET LOCATION IN THE impressive 6.5 Million SF of positive net absorption over the SOUTHEAST past 24 months.

The Triad market is extremely tight featuring a market wide NO. NO. NO. 96.1% occupancy rate overall.

ICP is located in the South Greensboro submarket of 7.7 1 2 3 PLACE TO START BEST STATE FOR BEST CITY FOR Million SF, a 97% occupied submarket that has performed A SMALL BUSINESS BUSINESS YOUNG IT exceptionally well, having garnered 154,000 SF of positive net AND CAREERS PROFESSIONALS absorption over the last 12 months.

PREMIER INDUSTRIAL MARKET: Guilford County has the NO. NO. highest number of industrial sector jobs of any county in North Carolina WINNER OF and is among the top five in the Southeastern United States. PROSPERITY CUP 2 17 BEST PLACE TO BEST PLACE TO START A BUSINESS START A BUSINESS

COLLIERS INTERNATIONAL | 13 INTERSTATE COMMERCE PARK TRIAD | INDUSTRIAL MARKET OVERVIEW (GREENSBORO, WINSTON-SALEM, HIGH POINT) FEDEX (NYSE: FDX) BB&T (NYSE: BBT) RECENT ECONOMIC ANNOUNCEMENTS made significant investment in the Triad by selecting the headquartered in the Triad, announced construction of region to hold the company’s fifth major U.S. hub which a $34 million, 58,000 square foot leadership institute in The Triad serves as headquarters for five Fortune offers companies within an hour’s drive a plethora of Greensboro. 500 companies including Reynolds America, business advantages including the ability to meet higher customer demand through greater shipping flexibility. COCA COLA (NASDAQ: COKE) BB&T, VF Corporation, Laboratory Corporation of $4 million investment in 135,300 square foot facility HONDAJET in Greensboro America and Hanesbrands. The regional economy located their world headquarters at the Piedmont Triad still maintains a strong presence in the textile, International Airport (PTI) and recently announced plans B/E AEROSPACE (NASDAQ: BEAV) to double production of their aircrafts over the next few has recently expanded operations in Winston-Salem furniture and tobacco years, likely attracting suppliers to the area. and plans to build a testing facility in the area. industries but has also diversified into fields such POLO RALPH LAUREN (NYSE: RL) PROCTER & GAMBLE (NYSE: PG) as aviation, logistics, life sciences and medicine. completed 400,000 square foot expansion of their completed their 22,000 square foot expansion of their existing 1.5 million square foot High Point Facility. current facility, a total investment of approximately $8.9 The unemployment rate for the Triad region million dollars (including equipment). is currently 5.4% as of Q3 2018, and the local CATERPILLAR (NYSE: CAT) has grown their Greensboro manufacturing PUBLIX economy is booming. operations to 250 employees, solidifying their has picked Greensboro for its $400M, 1,000 job presence in the Triad. distribution center. This will be a 1.8 million SF center located near Birch Creek Road and U.S. 70.

WINSTON SALEM GREENSBORO HIGH POINT

COLLIERS INTERNATIONAL | 14 INTERSTATE COMMERCE PARK CAROLINAS INVESTMENT SALE COMPARABLES 2017 & 2018

PROPERTY NAME SALE PRICE TOTAL SF SELLER BUYER SALE DATE PROPERTY ADDRESS ($PSF)

Avery Dennison Corp $2,500,000 2025 16th St 63,114 16th Street Group LLC Brady Services Oct-18 ($40) Greensboro

Airport Distribution Center $32,175,000 Thackeray Partners, 202 N Chimney Rock Rd 764,582 Blackstone, Talos Capital Jun-18 ($42) Somerset Properties Greensboro

519 Patton Avenue $2,800,000 519 Patton Ave 48,613 Robert & Sons LLC NC Holdings Feb-18 ($58) Greensboro

fmr Steelcase $10,000,000 250 Swathmore Ave 244,851 Lexington Realty Comfort Systems USA Oct-17 ($41) High Point

162 North Cherry Street $2,950,000 162 N Cherry St 82,270 J.P. Thomas & Co MAS ACME USA Sep-17 ($36) Asheboro

206 North Pendleton Street $4,120,000 Star International Furniture 206 N Pendleton St 100,000 Mannington Mills Inc Jun-17 ($41) Inc High Point

COLLIERS INTERNATIONAL | 15 INTERSTATE COMMERCE PARK TRIAD LEASE COMPARABLES (2016-2018)

SQUARE RENTAL LEASE START PROPERTY TERM TI COMMENTS FEET RATE TYPE DATE

Nov. 404 N Chimney Rock Rd , Greensboro 46,074 SF $4.60 NNN - - 2018 Industrial Class B

Nov. 4500 Green Point Dr, Greensboro 12,718 SF $5.25 NNN - - 2018 Industrial Class B. Built 1989.

Nov. 1005 Norwalk St, Greensboro 22,500 SF $4.50 MG 1 Year - 2018 Industrial Class C

3012 S Elm Eugene St, Greensboro 38,130 SF $5.50 NNN - - Oct. 2018 Flex Class B

Mar. 4809 Kroger Blvd, Greensboro 20,160 SF $5.25 NNN 5 Years - 2018 Industrial Class C

4501 Green Point Dr, Greensboro 13,879 SF $5.25 NNN 5 Years - Apr. 2018 Industrial Class B. Built 1990.

Nov. 1660 Sullivan St, Greensboro 11,340 SF $4.28 MG 1 Year $0 2018 Industrial Class C

220 Atwell, Greensboro 9,101 SF $5.30 MG 3 Years $0 July 2018 Industrial Class C

COLLIERS INTERNATIONAL | 16 INTERSTATE COMMERCE PARK COLLIERS TEAM | BIOS

David Divine | Director of Commercial Investment Sales With over 20 years of office, industrial and retail investment sales experience, David Divine has a proven track record of maximizing values and returns for his clients. His clients include individual property owners, institutional owners, developers, banks, REIT’s, and special services. Delivering the Colliers’ promise of global teamwork and local expertise, David’s mission is to help clients achieve the highest and best return on their real estate investment in order to accelerate their success.

Richard Polley, CSM, RPA | President - Management Services/RDU Rick’s 33 year career in commercial real estate has been practiced in both public and private companies and has included a diversity of property types. His first 19 years in the industry were spent in the REIT world managing and leasing large institutional shopping malls and mixed use assets in 6 different markets along the east coast from Massachusetts south to North Carolina. Rick worked for Urban Retail Properties Co, The Rouse Company and General Growth during this time. As a Senior Vice President and Group Manager, Rick oversaw multiple malls and mixed use assets for clients that included JMB Realty, Met Life, JP Morgan Real Estate Investments and First Chicago Bank.

Joe Cinosky | Vice President of Investment Sales Joe Cinosky is a Commercial Investment Sales Broker who works with clients to share great ideas and creative solutions that help our customers accelerate their success. Colliers International is a top-tier global real estate services and investment management company. What sets us apart is not what we do, but how we do it. After graduating from the University of Maryland, Joe owned, operated, and managed lacrosse companies in Minnesota and North Carolina and spent ten years playing professional lacrosse before becoming an active investor and Broker.

Ed Finley | Senior Financial Analyst Ed joined the Colliers Raleigh-Durham Multifamily team in 2017. He has an extensive background in both pure and applied mathematics and adds expertise of property and project valuation in the residential and multifamily markets. Ed’s primary responsibilities include providing analysis and valuation for investment properties as well as due diligence and market research in the development of such properties. As a native of Raleigh, Ed has strong ties to the community and an intimate knowledge of the market.

Cole Bosson | Property Manager Cole specializes in investment sales for industrial properties throughout central and eastern North Carolina. He is responsible for financial analysis, business development, and real estate consultation. Over a five-year period, Cole has underwritten approximately $455mm in operating companies and commercial property, $150mm of which culminated in a closed deal. He has worked with a variety of commercial real estate property types (office, industrial, farmland, retail, and multifamily) and is well-versed in identifying and analyzing industry trends across multiple asset classes.

COLLIERS INTERNATIONAL | 17 DISCLAIMER

This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation this Offering Memorandum, you have no further interest in purchasing the Property, kindly return this Offering Memorandum of the state of affairs of the Property or the owner of the Property (the "Owner") to be all-inclusive or to contain all or part of to Colliers International RDU. the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, DISCLAIMER market conditions, competition and other factors beyond the control of the Owner and Colliers International RDU. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references The information contained in this document has• been obtained from sources believed reliable. While Colliers International to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to RDU does not doubt its accuracy, Colliers International RDU has not verified it and makes no guarantee, warranty or inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, documents, including leases and other materials, are described in summary form. These summaries do not purport to be opinions, assumptions or estimates used are for example only and do not represent the current or future performance of complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, all such summaries and other documents of whatever nature independently and not rely on the contents of this Offering financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to Memorandum in any manner. determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. Colliers International RDU Neither the Owner or Colliers International RDU, nor any of their respective directors, officers, Affiliates or representatives and the Colliers International logo are service marks of Colliers International and/or its affiliated or related companies in the make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum United States and other countries. All other marks displayed on this document are the property of their respective owners. or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase AFFILIATED BUSINESS DISCLOSURE the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Offering Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Colliers International RDU operates within a global family of Colliers companies with many subsidiaries and/or related entities Offering Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase (each an "Affiliate") engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner's obligation services, property and facilities management, valuation, investment fund management and development. In some cases. The therein have been names of these Affiliates show no reference to the Colliers Affiliation. At all times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Offering Memorandum may be received by our Affiliates, including AACRE Properties, LLC; AACRE, LLC. Those, or other, Affiliates may express an interest in the property CONFIDENTIALITY AGREEMENT described in this Offering Memorandum (the "Property") may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither Colliers International RDU This is a confidential Offering Memorandum intended solely for your limited use and benefit in determining whether you nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of desire to express further interest in the acquisition of the Property. By receipt of this Offering Memorandum, you agree that the Property. In all instances, however, Colliers International RDU will act in the best interest of the client(s( it represents in this Offering Memorandum and its contents are of a confidential nature, that you will hold and treat it in strictest confidence the transaction described in this Offering Memorandum and will not act in concert with or otherwise conduct its business in a and that you will not disclose this Offering Memorandum or any of its contents to any another entity without the prior written way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business authorization of the Owner or Colliers International RDU. You also agree that you will not use this Offering Memorandum or in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described any of its contents in any manner detrimental to the interest of the Owner or Colliers International RDU. If after reviewing in this Offering Memorandum. 110 E MEADOWVIEW ROAD Greensboro, NC

DAVID DIVINE RICK POLLEY, CSM, RPA JOE CINOSKY COLLIERS INTERNATIONAL Director of Commercial President - Management Vice President of Raleigh-Durham Investment Sales Services/RDU Investment Sales DIR +1 919 832 1110 DIR +1 919 582 3114 DIR +1 919 582 3113 DIR +1 973 722 7373 colliers.com/rdu [email protected] [email protected] [email protected]