Regency Park Land

REGENCY PARK LAND

10.03-ACRE DEVELOPMENT OPPORTUNITY IN PRESTIGIOUS REGENCY PARK

CARY, NORTH CAROLINA

Y A W K R A P Y C N E G E R MACGREGOR DOWNS COUNTRY CLUB REGENCY PARK LAND Single Family Homes | $600K-$5M

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EXECUTIVE SUMMARY INVESTMENT SUMMARY THE INVESTMENT OPPORTUNITY PROPERTY NAME Regency Park Land 10.03-Acre Development Opportunity in Prestigious Regency Park ADDRESS 12010 Regency Parkway Cary, NC 27518 MUNICIPALITY Town of Cary HFF Carolinas is pleased to offer for sale the 10.03-acre development COUNTY Wake opportunity, known as Regency Park Land, within the well-leased, desirable Regency Park office area. The Property is a unique offering, that PIN 0752801457 was previously approved for a 103,553 SF office building and is proximate ZONING Regency Park Planned Development District (PDD) to several of Cary’s most exclusive decision-maker communities such as PREVIOUS APPROVAL 07-SP-020: expired site plan approval for a MacGregor Downs and Lochmere, notable lifestyle amenities Symphony (EXPIRED 5/16/2016) 103,553 SF office building Lake and Hemlock Bluffs State Park and Nature Preserve, WakeMed Cary ACREAGE 10.03 Hospital, and several burgeoning retail nodes.

COMPLETED Rough grading and one shared access point completed IMPROVEMENTS Offering a regionally connected and centralized office location within the booming Triangle market, Regency Park Land is surrounded by well- respected global occupiers such as ABB, Caterpillar, and Global Knowledge, and is able to tap into the region’s fast-expanding Science, Technology, Engineering, and Mathematics (STEM) employment base.

REGENCY PARK LAND | HFF STELLAR TRIANGLE & CARY OFFICE MARKET STATISTICS

TRIANGLE MARKET CARY SUBMARKET 91.1% 93.0% OFFICE OCCUPANCY RATE OFFICE OCCUPANCY RATE

3.8 MSF 570,897 NET ABSORPTION IN THE LAST 12 SF NET ABSORPTION IN THE LAST 12 MONTHS MONTHS HIGHLY ACCRETIVE IN-PLACE INFRASTRUCTURE Representing a significant Seller investment, Regency Park Land offers a fast-tracked path to development due to numerous in- place improvements, including a rough graded condition, existing 6.5% 8.5% BMP, and existing ingress infrastructure. The property was also previously approved for a 103,553 SF office building. RENTAL RATE INCREASE IN RENTAL RATE INCREASE IN THE LAST 24 MONTHS THE LAST 24 MONTHS

EXTREMELY FAVORABLE OFFICE MARKET Recently ranked the #1 Office Market in the U.S. by Morgan Stanley (2015), the Triangle office market has stellar fundamentals with a healthy 4.8% unemployment rate, 49,000+ jobs created in the past 24 months, 92.6% Class A occupancy rate, and over 3.8 MSF of positive net absorption since 2014.

TOP-PERFORMING CARY OFFICE SUBMARKET The Cary submarket, at 93% occupancy, has now generated an impressive 807,000 square feet of positive net absorption over the last 24 months which has driven rental rates up 8.5% over the same period.

PRESTIGIOUS REGENCY PARK LOCATION Situated in the successful 1.25 MSF Regency Park – home to global STEM names such as ABB, Garmin, HCL, SchoolDude, Global Knowledge, Caterpillar, and Chiesi Pharmaceuticals – the established office area has absorbed 184,000 SF in the past 24 months.

REGENCY PARK LAND | HFF RALEIGH-DURHAM NO.01 OFFICE MARKET IN A TOP PERFORMING BRAIN HUB WITH A LONGSTANDING HISTORY OF INNOVATION THE UNITED STATES a global leader in technology, life sciences and healthcare research MORGAN STANLEY (2015) NO.01 RALEIGH-DURHAM OFFERS INVESTORS GREAT VALUE GIVEN THAT IT’S PRICED AT LEAST EXPENSIVE A SUBSTANTIAL DISCOUNT TO COMPARABLE PEER MARKETS SUCH AS AUSTIN, TX COMMERCIAL REAL ESTATE MARKET

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TECH INDUSTRY JOB GROWTH O 62.3% (2004-2014) 4.8% 45.2% $83K 11.4% N .02 unemployment of population average STEM millennial CITIES CREATING THE STEM OCCUPATION GROWTH rate with bachelor’s employee wage population growth MOST TECHNOLOGY or higher in the past 5 years JOBS IN 2015 led the nation in STEM (COMPARED TO 2.2% U.S. GROWTH) FORBES 39.0% job growth (2004-2014) RALEIGH-DURHAM POPULATION GROWTH NO.02 HOME TO THREE TIER-1 RESEARCH UNIVERSITIES 1990 953,547 FASTEST GROWING LARGE 38% U.S. CITY BETWEEN NOW AND 2030 2000 1,314,589 UNITED NATIONS POPULATION DIVISION 46% 2010 1,912,729 Research Triangle Park is the largest dedicated 8% O research park in the world N .03 2014 2,075,126 106,500 net new jobs since 2011 IN THE NATION IN RENT GROWTH (23%) IN THE Raleigh-Durham received over $1 billion in NIH A TOP RANKED quality of life that continues to PAST 24 MONTHS funding in FY 2015 attract new employers and residents alike CBRE RESEARCH , 2015

REGENCY PARK LAND | HFF HIGHLY AMENITIZED SUBURBAN OFFICE PARK The prestigious Regency Park offers tenants a uniquely amenitized location with wooded, park-like surroundings and walkable access to the Koka Booth Amphitheatre, jogging trails, the 30-acre Symphony Lake, and the 150-acre Hemlock Bluffs State Park and Nature Preserve.

STRONG SURROUNDING AMENITY BASE Regency Park Land is situated at the center of Cary’s highly desirable retail and entertainment amenity base, with more than 4 MSF of desirable retail and restaurants at major retail nodes such as Waverly Place, Cary Towne Center, and the Crossroads area.

SOUGHT-AFTER CARY LOCATION PROXIMATE TO DECISION-MAKERS With immediate accessibility to Raleigh-Durham’s most exclusive neighborhoods such as Regency, MacGregor Downs, Lochmere, and Prestonwood Country Club, Regency Park Land has access to numerous decision-makers. The Regency area is able to tap into a stellar residential base with top-of-market demographics such as $127,369 median household income and $397,140 median home value in a one-mile radius.

WAVERLY PLACE EXCELLENT REGIONAL CONNECTIVITY Located at the confluence of U.S. Highway 1 and U.S. Highway 64, the Property is ideally positioned in a sought-after, well-connected area with easy regional access to critical east-west connector Interstate 40, recently expanded interstate-grade Highway 540, and Interstate 440/Raleigh’s Inner Beltline.

THRIVING RALEIGH-DURHAM METRO The booming Research Triangle market (2+ million population) boasts a diversified, innovation-based economy, with a notable focus on high-impact STEM industries, three world-class KOKA BOOTH AMPHITHEATRE universities, an enviable quality of life, and nation-leading MACGREGOR DOWNS COUNTRY CLUB TRIANGLE ARTS & MUSIC MAGAZINE population growth.

REGENCY PARK LAND | HFF 15 Creedmoor GRANVILLE Franklinton 501 COUNTY

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96 Bunn DURHAM COUNTY 98 40 DURHAM 98 98

98 ORANGE ke COUNTY rest 751SURGE IN POPULATION GROWTH 251,923 SURROUNDING55 REGENCY147 PARK WITH STELLAR DEMOGRAPHICS 70 2015 SOUTH WAKE CO. 86 CHAPEL POPULATION Precipitated by the recent 2011/2012 opening of the western leg of Highway 540/Raleigh’s Outer 540 HILL Loop – also known as the Triangle Expressway – the entire South Wake County area has experienced APEX401 Carrboro explosive, high-quality growth due to increased transportation connectivity. Accordingly, the ongoing 54 surge in high-income population growth around Regency Park has created a desirable infill location and 40 increased Regency Park office space demand.540 Rolesville$92,051 50 MEDIAN HOUSEHOLD INCOME Research RDU 96 Airport Triangle Park WAKE 5.5% 1 COUNTYPOPULATION CAGR 70 NOTABLE DEVELOPMENTS (2000-2015) 55 401 PRECIPITATED BY THE 751 TRIANGLE EXPRESSWAY 54 HOLLY SPRINGS NASH 440 COUNTY

40 RESIDENTIAL $85,936 540 MEDIAN AMBERLY HOUSEHOLD INCOME 70 $350K–$600K 495 RALEIGH Morrisville 401 Knightdale 334% GROWTH SINCE 2000 BELLEWOOD MANOR 8.9% $700K–$800K POPULATION CAGR RALEIGH (2000-2015) HADDON HALL495 $450K–$1M Cary CARY 751 WYNDFALL440 AT REGENCY 1 CHATHAM 40 $800K–$1M 96 COUNTY $90,934 RENAISSANCE AT REGENCY MEDIAN 64 HOUSEHOLD INCOME 64 $425K–$1.5M Apex WAKE REGENCY PARK LAND 12 OAKS 540 113% GROWTH 3.6% COUNTY SINCE 2000 $300K–$2M POPULATION CAGR Jordan (2000-2015) 401 JOHNSTON Pittsboro Lake RETAIL COUNTY 70 MORRISVILLE 1 Garner PARKSIDE TOWN COMMONS BEAVER CREEK COMMONS $89,939 540 50 40 MEDIAN HOUSEHOLD INCOME Holly Springs 230% GROWTH 540 SINCE 2000 Clayton 11.1% 75 55 POPULATION CAGR (2000-2015)70 1 401 OPENED DECEMBER 8, 2011 OPENED AUGUST 1, 2012 OPENED DECEMBER 20, 2012 NCDOT RECOMMENDED ORANGE ROUTE, 2018 CONSTRUCTION PROJECTED REGENCY PARK LAND | HFF regency park land

40 CARY TOWNE CENTER  CARY CROSSROADS 440 1.1 MSF 2+ MSF

investment advisor JUSTIN GOOD Managing Director  919.573.4642 [email protected]

SCOT HUMPHREY 64  Director MACGREGOR DOWNS 919.573.4641 64 COUNTRY CLUB CENTRUM AT CROSSROADS [email protected] Single Family Homes | $600K-$5M  BEAVER CREEK COMMONS analyst

SARAH GODWIN  WAVERLY PLACE

210,000 SF Senior Real Estate Analyst  919.573.4643  [email protected]

debt & structured finance REGENCY PARK LAND TRAVIS ANDERSON Senior Managing Director KOKA BOOTH 704.526.2806 AMPHITHEATER [email protected] 1 LOCHMERE GOLF CLUB CORY FOWLER Associate Director 704.526.2807 [email protected]

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a North Carolina licensed real estate broker (“HFF”). STONEBRIDGE VILLAGE

©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 lead-  ing 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. LAKE WHEELER HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] 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 repre- sentations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to 540 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 dil- igence 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. NCDOT RECOMMENDED ROUTE Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.