NORTH RHETT COMMERCE CENTER 511,891 SF, 81% LEASED VALUE-ADD INDUSTRIAL OPPORTUNITY IN RED-HOT CHARLESTON,

NORTH RHETT COMMERCE CENTER | 1 EXECUTIVE SUMMARY THE INVESTMENT OPPORTUNITY

North Rhett Commerce Center | Charleston, South Carolina

Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present the opportunity to acquire North Rhett Commerce Center, a 511,891 square foot, two (2) building industrial complex located in the rapidly expanding Charleston, South Carolina market. Featuring an outstanding location, the rail-served facility is positioned directly adjacent to the Port of Charleston’s North Charleston Container Terminal and has direct access to , , Charleston International Airport, and the Boeing 787 Dreamliner Plant. North Rhett Commerce Center presents investors with the opportunity to immediately create value via the lease up of the 94,620 square feet of contiguous vacancy, below market in-place rents, and the potential to develop additional square footage onsite. Further adding to the upside potential, North Rhett stands to benefit dramatically from the $2.0 billion Port of Charleston expansion set to be completed in 2019, a project that will deepen the channel to 52' and create INVESTMENT SUMMARY a new terminal and railhead only four miles from North Rhett.

ADDRESS 5801 North Rhett Avenue FEATURING 81.5% OCCUPANCY, NORTH RHETT COMMERCE CENTER Hanahan, South Carolina PRESENTS AN INCREDIBLY RARE OPPORTUNITY TO ACQUIRE A TOTAL SIZE 511,891 SF VALUE-ADD, PORT-ADJACENT INDUSTRIAL PARK LOCATED WITHIN BUILDING I 313,823 SF THE RAPIDLY EXPANDING CHARLESTON, SC MARKET. BUILDING II 198,068 SF North Rhett Commerce Center is strategically positioned on an irreplaceable TOTAL ACREAGE 34.14 Acres 34-acre site and possesses institutional quality features throughout. The TOTAL OCCUPANCY 81.5% property has been the recipient of significant recent capital investments such BUILDING I 100% as new 60 mil white TPO roofs each with 15-20 year original manufacturer warranties, new monument signage, new energy efficient T5 lighting and a BUILDING II 52% full conversion to ESFR sprinklers systems currently in-progress. Located in CLEAR HEIGHT 24'-32' the 91.4% occupied Berkeley County submarket, investors have the ability TENANTS Wainwright Industries Inc. - 212,000 SF to capitalize on outstanding rental rate growth of 14.4% over the last 12 Frontier Logistics - 101,823 SF months. The red-hot Charleston MSA has experienced unprecedented recent JBE Incorporated - 103,448 SF population growth and overall economic expansion and is heralded as one IN-PLACE NOI $1,457,719 of the country’s top business climates. As a result, the Charleston region has attracted significant recent corporate announcements from Volvo, Boeing, IN-PLACE NOI (W/ FRONTIER $1,984,567 LOGISTICS MTM INCOME) Daimler, and Blackbaud, collectively contributing an incredible $3.5 billion to the local economy in 2015 alone, while expecting to add an additional 20,000 jobs by 2017.

NORTH RHETT COMMERCE CENTER | 2 TRUE VALUE-ADD OPPORTUNITY IN IRREPLACEABLE PORT-ADJACENT LOCATION

Ability to immediately create value through the lease-up of 94,620 square feet of contiguous vacancy (18.5% of RSF)

Prime logistical infill location, minutes from the I-26/I-526 , Charleston International Airport, and directly adjacent to the Port of Charleston’s North Charleston Container Terminal

The existing 94,620 square foot vacancy is currently leased on a month-to-month basis, providing additional NOI support with flexibility to attract a long term tenant

Below market rental rates located in the 91.4% occupied Berkeley County submarket; over the last 12 months Berkeley County has generated 14.4% rental rate growth

Substantial recent capital invested at the property including new roofs, T5 lighting, monument signage, and various capital repairs around the facility; property is currently undergoing full ESFR conversion throughout

Added upside potential via approximately eight (8) acres of trailer storage, a scarce commodity in Charleston, with the potential to accommodate future building expansion

Charleston is quickly becoming a manufacturing and distribution powerhouse – major tailwinds include recent job announcements from Volvo, Daimler and Boeing

NORTH RHETT COMMERCE CENTER | 3 RAIL-SERVED FACILITY WITH INSTITUTIONAL-QUALITY FEATURES AND SIGNIFICANT RECENT CAPITAL INVESTED

Consisting of two (2) buildings totaling 511,891 square feet, North Rhett Commerce Center is a well-maintained warehouse and distribution complex, with significant recent capital invested

Institutional quality features including precast concrete construction, 24'-32' clear-height, new 60 mil white TPO roofs each under 15-20 year manufacturer warranties, new energy efficient T5 lighting and full conversion to ESFR sprinkler systems currently underway

Forty-four (44) dock-high loading doors (expandable) and two (2) drive- ins service the facility as well as twenty (20) rail doors served by an active CSX rail spur, linking the property directly to the Port of Charleston’s North

Charleston Terminal E IC RV SE IL The 34 acre complex is fully fenced with controlled access and features RA X extensive trailer and employee parking as well as a dual axel weigh station CS onsite for containers

Approximately eight (8) acres of land onsite can accommodate additional trailer storage or development with great visibility on North Rhett Avenue

NORTH RHETT COMMERCE CENTER | 4 PRIME LOGISTICAL LOCATION IN FAST GROWING CHARLESTON MARKET

Irreplaceable infill location strategically positioned adjacent to the Port SPAWAR COMMAND CHARLESTON of Charleston’s North Charleston Terminal (1.25 miles) and Interstate INTERNATIONAL 526 (1 mile) AIRPORT NORTH CHARLESTON TERMINAL NORTH RHETT 26 COMMERCE Superior regional accessibility via Interstate 526 providing North Rhett CENTER with quick access to the Charleston International Airport, Boeing’s 787 Dreamliner Plant and Interstate 26, one of South Carolina’s main distribution arteries and main linkage to Interstate 95 to the west 526 Uninterrupted access to the park via the dedicated interchange at CSX/NORFOLK SOUTHERN FUTURE $1.1 BILLION Interstate 526 and North Rhett Avenue; Downtown Charleston located INTERMODAL YARD NORTH CHARLESTON only 15 minutes away NAVAL BASE TERMINAL 26 The red-hot Charleston MSA has experienced unprecedented recent 526 NAVAL BASE TERMINAL WANDO WELCH TERMINAL population growth and overall economic expansion, and is heralded as one of the country’s top business climates due to its favorable tax and incentive structure, skilled workforce, favorable logistical position and overall quality of life

Currently featuring a healthy 4.6% unemployment rate, the Charleston region has added 12,000 jobs over the last 12 months totaling a 3.5% COLUMBUS STREET TERMINAL year-over-year increase; since 2010 the MSA has averaged 3.4% annual job growth DOWNTOWN CHARLESTON The region has attracted significant recent corporate announcements from Volvo, Boeing, Daimler, and Blackbaud, collectively contributing an incredible $3.5 billion to the local economy in 2015 and expected to add 20,000 jobs by 2017

NORTH RHETT COMMERCE CENTER | 5 THE CHARLESTON PORT STORY

Extensive $2.0 billion port expansion project officially underway and scheduled to be completed in 2019

Project is set to deepen the channel from 45' to 52', in order to accommodate New-Panamax carriers, and build new terminal and corresponding rail network at the new North Charleston site (4 miles from North Rhett)

Fantastic recent growth in containerized cargo, up 10% year over year in 2015

Charleston recently included as the final North American stop in what is known as the North Atlantic Express (AX1) by the G6, a consortium of ocean carriers – a move that will bring significantly more Post-Panamax carriers to port

1/3rd of the containerized cargo, and growing, is related to South Carolina’s booming manufacturing economy

RECENT/CURRENT PORT OF FUTURE PORT OF CHARLESTON CHARLESTON GROWTH DRIVERS GROWTH DRIVERS

• Completion of Panama Canal SHIFTING OF expansion project in 2016 POPULATION INTO THE SOUTHEASTERN U.S. • Functionality of the Port – 52' channel depth coming in 2019 to make way for the largest ships passing through the expanded SUPERIOR ACCESS TO EXTENSIVE RAIL NETWORKS/ Panama Canal INTERSTATES/INTERMODAL FACILITIES • Continued population shift into Southeast U.S. • Continued growth of South Carolina manufacturing industry SOUTH CAROLINA’S MANUFACTURING BOOM • Opening of Cuba • Recent change by USDA that allows fruit/food to be chilled in transit vs shipped into cooler WEST COAST climates LABOR DISPUTES • Increased usage of the Suez Canal by Asian companies

NORTH RHETT COMMERCE CENTER | 6 ACTIVE INDUSTRIAL MARKET WITH SIGNIFICANT RECENT GROWTH

Located in the 91.4% occupied Berkeley County submarket which is home to a premier set of industrial users including FedEx, Fruit of the Loom, Husqvarna, SAIC, New Breed Logistics, Ozburn Hessey, and U.S. Department of Defense

The Berkeley County submarket has generated 14.4% rental rate growth over the last 12 months

The 12.4 million square foot submarket has been extremely active over the first quarter of 2016, recording 355,529 square feet of positive net absorption (2.8% of total)

Charleston’s overall warehouse occupancy rate has risen to 91.6% following approximately 1.3 million square feet of net absorption in the last 12 months

Tenant demand has prompted new construction of distribution facilities along Charleston’s I-26 Corridor with rents now pushing the high $5.00 PSF range for Class A product and north of $6.00 PSF for air-conditioned facilities

NORTH RHETT COMMERCE CENTER | 7 MT. PLEASANT WANDO WELCH TERMINAL SULLIVAN’S ISLAND DOWNTOWN CHARLESTON NORTH RHETT COMMERCE CENTER CLEMENTS FERRY

FUTURE $1.1 BILLION NORTH CHARLESTON NAVAL BASE TERMINAL investment advisors CHRIS NORVELL, SIOR Lic #68127 526 Senior Managing Director NORTH CHARLESTON TERMINAL 704.526.2818 [email protected]

BRUCE STRASBURG 26 Senior Managing Director 202.533.2501 [email protected] CHARLESTON INTERNATIONAL AIRPORT analysts PATRICK NALLY Senior Real Estate Analyst 704.526.2815 [email protected] SPAWAR CHARLESTON

WALKER MCLEAR Real Estate Analyst 704.526.2817 [email protected]

debt advisors BRENT BOWMAN Director 704.526.2827 [email protected]

leasing information NORTH RHETT LEE ALLEN COMMERCE CENTER CSX RAIL SER JLL | Senior Vice President 843.805.5111 [email protected] VENUE

VICE TH RHETT A

Christopher Norvell, a licensed real estate broker in the state of South Carolina, NOR along with Holliday Fenoglio Fowler, L.P. (collectively “HFF”).

©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.

HFF has been engaged by the owner of the property to market it [them] for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is NORTH RHETT COMMERCE CENTER | 8 subject to change.