OFFERING MEMORANDUM 745 Industrial Park Drive |Newport News, VA 23608 SUNBELT RENTALS EXCLUSIVE ADVISOR

A STABILIZED NET LEASE INVESTMENT OPPORTUNITY ANCHORED BY SUNBELT RENTALS OFFERING MEMORANDUM 745 Industrial Park Drive |Newport News, VA 23608 SUNBELT RENTALS EXCLUSIVE ADVISOR

555 Fayetteville Street JOE GRAHAM, CCIM Executive Vice President Suite 800 +1 919 831 8196 Raleigh, NC 27601 [email protected] www.cbre.us/raleigh

AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this 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 CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation 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 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, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum 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 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 Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER © 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 2 TABLE OF CONTENTS

EXECUTIVE SUMMARY...... 4

INVESTMENT SUMMARY...... 5

INVESTMENT HIGHLIGHTS...... 8

SURROUNDING AREA...... 9

MARKET OVERVIEW...... 11

TENANT PROFILE...... 13

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 3 EXECUTIVE SUMMARY

CBRE is pleased to exclusively offer the Absolute Net Lease Sunbelt Rentals property for sale, located at 745 Industrial Park Drive, in Newport News, Virginia. The combined properties consist of 2.11 acres of land with improvements that include 7,716 SF plus a mezzanine of approximately 1,250 SF, as well as outside and fenced storage. This Sunbelt Rentals location has been open since 1997 and required additional land in 1999 in order to store more equipment, showing the success and longevity of the subject property for Sunbelt. Sunbelt recently extended their lease for five more years.

Located in the Hampton Roads, Virginia MSA, the property benefits from close proximity to I-64, Fort Eustis Boulevard and Highway 143/Jefferson Boulevard. This submarket has high barriers to entry and with the property/improvements being below replacement cost, and limited options for new space, it’s highly likely the Tenant will continue to occupy this successful location.

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 4 INVESTMENT SUMMARY OFFERING OVERVIEW

ADDRESS 745 Industrial Park Drive, Newport News, VA CURRENT BUILDING RENT $130.207.20

MARKET Hampton Roads, VA MSA ADDITIONAL PARCEL RENT $5,148.96

GLA ±8,966 SF (±7,716 SF + ±1,250 SF Mezzanine) TOTAL NOI $135,356.16

ACREAGE 2.11 Ac. ASKING PRICE $1,804,750

EXPIRATION DATE 12/31/2022 ASKING CAP RATE 7.5%

RENT SCHEDULE

Additional Parcel Lease

MONTHLY RENT ANNUAL RENT MONTHLY RENT ANNUAL RENT

12/15/2017 - 12/31/2017 $5,930.33 N/A $235.30 N/A

1/1/2018 - 12/31/2018 $10,850.60 $130,207.20 $429.08 $5,148.96

1/1/2019 - 12/31/2019 $11,067.61 $132,811.32 $437.66 $5,251.92

PROPERTY DETAILS 1/1/2020 - 12/31/2020 $11,288.96 $135,467.52 $446.41 $5,356.92

1/1/2021 - 12/31/2021 $11,514.74 $138,176.88 $455.34 $5,464.08

1/1/2022 - 12/31/2022 $11,745.03 $140,940.36 $464.45 $5,573.40

1 MILE 3 MILES 5 MILES

EST. POPULATION (2017) 8,946 55,523 113,961

POP GROWTH (2010-2017) 0.15% 0.72% 0.68%

PROJECTED POP (2022) 9,040 57,197 117,337

EST. HOUSEHOLDS (2017) 3,182 21,016 42,423

HH GROWTH (2010-2017) -0.02% 0.60% 0.55%

PROJECTED HHs (2022) 3,193 21,593 43,596

MEDIAN HH INCOME (2017) $56,939 $52,627 $59,537

AVG HH INCOME (2017) $67,533 $62,298 $74,040

DEMO SNAPSHOT HOUSEHOLDS >$75,000 HHI 1,136 6,303 16,448

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 5 Sunbelt Rentals

Legend

INVESTMENT SUMMARY PARCEL OVERVIEW

ADDITIONAL PARCEL LEASE

0.33 AC

1.78 AC

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 6 City of Newport News

Any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for general information only and shall not be used for the design, modification, or construction of improvements to real property or for flood plain determination. INVESTMENT SUMMARY SITE PLAN

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 7 INVESTMENT HIGHLIGHTS

STRONG TENANT PERFORMANCE ANNUAL INCREASES

This location is one of Sunbelt Rentals’ most successful since opening The tenant’s lease adheres to 2% annual increases throughout the in 1997. duration of the term.

SUCCESSFUL LOCATION NO OPTIONS Due to its success, Sunbelt Rentals requested the acquisition of adjacent Given the low rent and the cost to replace this asset, as well as high land parcel within only a few years of being open, resulting in an barriers to entry, any renewal would likely favor the Landlord. expansion site in 1999.

STRONG COMPANY ACCESS Sunbelt Rentals is the largest and most profitable subsidiary of the The subject property benefits from easy access to nearby I-64, along publicly held parent company, Ashtead Group. with Fort Eustis Boulevard and Highway 143/Jefferson Boulevard.

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 8 SUNBELT RENTALS NEWPORT NEWS, VA

GOLF CLUB AT DEER RUN SURROUNDING AREA AERIAL

GREENWOOD 15,000 VPD ELEMENTARY SCHOOL

WOODSIDE HIGH SCHOOL

30,000 VPD

STONEYBROOK SHOPPING CENTER RICHNECK 64 SHOPPING CENTER

MARY PASSAGE MIDDLE SCHOOL

STONEY RUN ATHLETIC COMPLEX

25,342 VPD

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 9

© 2017 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L07 MapId:4840799 SUNBELT RENTALS NEWPORT NEWS, VA

GOLF CLUB AT DEER RUN SURROUNDING AREA AERIAL

GREENWOOD ELEMENTARY SCHOOL

PATRICK HENRY MALL WALMART SAM’S CLUB

JEFFERSON PLAZA

PENINSULA TOWN CENTER

WALMART NEIGHBORHOOD MARKET

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 10

NEWPORT NEWS, VIRGINIA

Located in the Hampton Roads metropolitan area of Virginia at the southeastern end of the Virginia Peninsula, Newport News sits where the James River meets the Chesapeake Bay. The city runs approximately 23 miles along the James River and The Hampton Road Harbor. Rich in heritage, Newport News is a city of diverse trades including shipbuilding, technological research and international commerce.*

Its location within Hampton Roads makes it easy to reach Newport News from anywhere in Virginia. The major commercial airlines and connections that arrive daily at Newport News/Williamsburg International Airport make Newport News easily accessible by air. In addition, Norfolk International Airport is approximately 30 minutes from Newport News. Traveling by rail is one of the many easy methods of reaching Newport News as well. Amtrak makes connections from Boston, New York, Philadelphia, Wilmington, Baltimore, Washington D.C., Richmond and from major southern cities via Richmond.**

Since the turn of the 19th century, Newport News has been known as the provider of the nation’s finest, technologically advanced military ships. In more recent years, Newport News has also become a center for international commerce, research and technology. Its economy is strengthened by a strong military presence in Hampton Roads and Newport News is proud to be home of the U.S. Army Transportation Center at Fort Eustis.

The city’s historic sites, museums and cultural facilities complement the quality of life for Newport News residents and businesses. The city boasts more than 20 public parks, as well as public boat ramps and recreation facilities. Newport News Park, one of the largest municipal parks in the country, has 8,000 acres along with two 18-hole golf courses.*

*www.nngov.com **www.newport-news.org

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 11

One of the largest equipment rental companies in North America and backed by a network of more than 625 locations, Sunbelt Rentals successfully services a variety of customers - from those in the commercial, residential, industrial, municipal, and specialized service industries, to weekend do-it-yourselfers. Sunbelt’s extensive fleet exceeds $7.0 billion and includes general construction equipment, industrial tools, pumps and power generation equipment, trench shoring, scaffolding, remediation & restoration equipment, and more.

Designed to serve distinct customer segments requiring a high level of technical expertise, Sunbelt Rentals offer a highly diversified product mix, as well as trained experts (www.sunbeltrentals.com).

• Climate Control Services • Pile Driving Services • Flooring Solutions

• Industrial Services • Pump & Power Services • Facility Maintenance

• Tools & Equipment • Scaffold Services

• Oil & Gas Services • Remediation and Restoration

As the parent company of Sunbelt Rentals, Ashtead is an international equipment rental company with national networks in the US and the UK and a small presence in Canada. It rents a full range of construction and industrial equipment across a wide variety of applications to a diverse customer base. Equipment can be used to lift, power, generate, move, dig, compact, drill, support, scrub, pump, direct, heat and ventilate - whatever is required.

The company’s objective is to deliver sustainable value and above average performance across the economic cycle, thereby extending our industry-leading position and delivering superior total returns for shareholders (www.ashtead-group.com).

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 12

EXCLUSIVE ADVISOR

JOE GRAHAM, CCIM Executive Vice President +1 919 831 8196 [email protected]

555 Fayetteville Street Suite 800 Raleigh, NC 27601 www.cbre.us/raleigh

SUNBELT RENTALS OFFERING MEMORANDUM | 745 INDUSTRIAL PARK DRIVE | NEWPORT NEWS, VIRGINIA 13