GE INSPECTION TECHNOLOGIES SINGLE TENANT OFFERING

INVESTMENT RATED • 73,820 SF • 5 YRS TERM • $13.60/SF NOI • 8.25% CAP RATE DISCLAIMER

The information contained in this Offering Memorandum is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with further discussions with the owner regarding a possible transaction with respect to the property comprising the GE Inspection Technologies Single Tenant Offering, the (Asset). The information contained herein shall not be photocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Offering Memorandum does not choose to pursue such a transaction, this Offering Memorandum shall be returned to Jones Lang LaSalle (JLL).

Neither the owner, nor JLL, nor any of their officers, directors, employees or agents, assume any responsibility or make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to the Asset or this Offering Memorandum or any information or statements (including financial statements and projections) contained herein or relating hereto, including the accuracy or complete-ness of such information or statements and the condition, quality or fitness of the Asset. Such information and statements have in many circumstances been obtained from outside sources, have not been tested or verified and may be subject to errors or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting the foregoing, in the event this Offering Memorandum contains information relating any hazardous, toxic or dangerous materials in relation to the Asset, such information shall in no way be construed as creating any warranties or representations, express or implied, by operation of law or otherwise, by any party, as to the existence or non-existence or nature of such materials in, under, on or around the Asset. Potential investors are urged to perform their own examination and inspection of the Asset and information relating to same, and shall rely solely on such examination and investigation and not on this Offering Memorandum or any information or materials contained herein or otherwise provided.

The only party authorized to represent the owner of the Asset is JLL, and the owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with the owner shall be obligated to pay any fees or commissions due any advisors, brokers or representatives, other than JLL, dealing with such party. This Offering Memorandum is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Asset, and is subject to withdrawal, all without notice or any liability. In no event shall the delivery or receipt of this Offering Memorandum be deemed to create any legal obligation to enter into any transaction with respect to the Asset, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction. Executive Summary 04

Property Overview 09

Market Overview 14

Financial Summary 17

TODD TOROK RYAN BARR RYAN BENNETT MANAGING DIRECTOR PRINCIPAL PRINCIPAL JLL Capital Markets Lee & Associates Lee & Associates 312 228 3738 760 448 2446 760 448 2449 JLL Industrial Capital Markets [email protected] [email protected] [email protected] 8755 West Higgins Road, Suite 750 Chicago, IL 60631

721 EXECUTIVE SUMMARY

TRANSACTION SUMMARY Asking Price $12,170,000 Price PSF $164.90 Cap Rate 8.25% INTRODUCTION In-Place NOI $13.60 Jones Lang LaSalle (JLL), in cooperation with Lee & Associates, has been retained to Address 721 Visions Drive market for sale the fee simple interest in 721 Visions Drive, referenced herein as GE City, County Skaneateles, Onondaga Inspection Technologies Single Tenant Offering (the Offering). The Property is located in Skaneateles, , roughly 16 miles southeast of Syracuse. The Property was Ownership Fee Simple constructed as a build-to-suit for GE Innovation Technologies (the Tenant or GE), an Tenant GE Inspection Technologies operating division and designer / manufacturer of innovative digital solutions within GE Oil Parent Rating S&P: A- & Gas. The Tenant recently executed a five-year lease extension through January 2023 Initial Lease Execution 03/27/07 featuring contractual annual escalations. The lease provides GE with the option to terminate the lease on the last day of the forty eighth (48th) full calendar month by Lease Expiration 01/14/23 providing no less than 120 days prior written notice and delivering a Termination Fee Lease Type Net equal to the unamortized leasing commissions and three (3) months Base Rent. LL Responsibilities Roof & Structure

GE INSPECTION TECHNOLOGIES | 5 | CONFIDENTIAL OFFERING MEMORANDUM Constructed as a build-to-suit for GE in 2007, the Offering consists of a 73,820 square-foot, free-standing facility situated on 17.77 acres1. Designed to fit GE’s specific use, the Property is demised to include production/assembly areas, office and shipping/storage. The building also features on-site amenities for the tenant’s employees, including a full-service cafeteria and gym. The Property is further distinguished by its abundant 2,000 amps, 277/480 volt power service and twenty (20) 20-ton RTU heating and A/C units. The site offers a generous 3.95 / 1,000 auto parking capacity, or 292 stalls, located within a stand-alone parking lot immediately north of the property. Pricing / Yield

GE employs over 165 employees, including skilled engineers, at the facility which designs and manufactures remote visual inspection equipment for non-destructive $12,170,000 Asking Price testing in the aerospace, oil/gas, mining and power generation industries. After an initial ten-year term, the Tenant recently executed a five-year lease extension through 8.25% Cap Rate January 2023. The lease is a net lease with landlord responsibility limited to maintenance, repair and replacement roof and structural components of the building as well as lessor’s insurance and management of the facility.

(1) Leased acreage is 15.99 acres with balance consisting of a strip of land along west border containing a drainage creek, for which Owner is responsible, and an easement for access road serving the property, for which tenant is responsible.

GE INSPECTION TECHNOLOGIES | 6 | CONFIDENTIAL OFFERING MEMORANDUM INVESTMENT HIGHLIGHTS

Subject Property

COMMITTED TENANCY ATTRACTIVE LEASE STRUCTURE

The Tenant recently executed a five-year lease extension Designed as a build-to-suit for GE in 2007, the Property is through January 2023. The lease features annual 1% rental occupied by a division of GE Oil and Gas, which is responsible escalations which allow for contractual yield growth for the design and production of advanced measurement, sensor-based inspection technology solutions for industrial throughout the lease term. Tenant is responsible for real sectors. The tenant employs over 165 employees on site, estate taxes, utilities, tenant’s insurance and maintenance relying on the highly skilled, advanced manufacturing and and repair of building systems, parking lots, driveways and engineering labor force that surrounds Syracuse and sidewalks. Landlord’s maintenance is restricted to Rochester metro areas. In addition to reliance on skilled labor maintenance, repair and replacement of building structure force, the Tenant has invested significantly into property, plant and roof. Landlord is responsible for lessor’s insurance policy and equipment that would be cost prohibitive to replicate and management of the Property, which are not recoverable and/or move. from Tenant. Notably, while not a party to the lease, the General Electric Company (Moody’s: A3; S&P: A-) maintains responsibility for the obligations of tenant under the lease.

GE INSPECTION TECHNOLOGIES | 7 | CONFIDENTIAL OFFERING MEMORANDUM QUALITY BUILDING DESIGN

The Property consists of a 73,820 square-foot facility situated on 17.77 acres. The Property is constructed using concrete masonry exterior walls with finished metal panels at higher elevations. The building offers 2,000 amps (277/480v) power service, twenty (20) 20-ton heating and A/C RTUs, a 75 kVa back-up generator and wet/dry pipe fire suppression system. The building roof system is a Firestone 0.45 mil fully-adhered TPO system.

COMPELLING YIELD OPPORTUNITY

The Offering presents an attractive opportunity to acquire a mission-critical facility together with a steady, predictable cash flow and the backing of an investment- rated parent at an attractive yield which represents a significant premium over return on GE corporate bond.

GE INSPECTION TECHNOLOGIES | 8 | CONFIDENTIAL OFFERING MEMORANDUM

721 TENANT OVERVIEW

The Subject Property is leased to GE Inspection Technologies, a Tenant: GE Inspection Technologies LP business line within GE Measurement & Control which falls within the umbrella of Baker Hughes, a GE company. GE Measurement & Control Premises: 73,820 SF is a leading innovator in advanced, sensor-based measurement; non- Lease Expiration: 1/14/23 destructive testing and inspection; flow and process control; turbine, generator, and plant controls; and condition monitoring. The company Parent: General Electric Company provides end-to-end solutions for industries within aerospace, oil & Credit: Public (NYSE: BHGE) gas, mining and power generation. The company’s suite of product offerings include sensor-based measurement, advanced software, Rating: A3 (Moody’s); A- (S&P) asset condition monitoring, controls, inspection technologies and radiation measurement solutions as well as global services and *General Electric Company assigned the lease upon execution to GE Inspection Technologies. Within the expertise. assignment agreement, the General Electric Company agreed that the assignment did not release General In 2016, GE and Baker Hughes announced an agreement to combine Electric Company from any obligations of tenant under the GE’s oil and gas business and Baker Hughes to create a world-leading lease. oilfield technology provider, combining GE’s oil and gas technology, manufacturing and digital platform with Baker Hughes’ oilfield services offerings and technologies. With dual headquarters in Houston, TX and London, UK, the combined company has over 70,000 employees across locations in 120 countries and combined revenues in excess of $23 billion.

GE INSPECTION TECHNOLOGIES | 10 | CONFIDENTIAL OFFERING MEMORANDUM The Subject Property serves as production and support for many product offerings manufactured by GE Measurement & Control. In particular, the facility is the sole US manufacturing location for one of the company’s most valued and emerging technologies: the Mentor Visual iQ Video Borescope. The Mentor Visual iQ from GE combines intelligent machines, data and people to deliver more productivity. This industry-changing video borescope provides the portability, powerful features and collaboration needed for faster, more accurate decisions.

In addition to product design and manufacturing, the Subject Property is one of 18 global locations for GE Inspection Academy, a global training and knowledge-sharing program for GE customers and employees. Launched in 2012, the GE Inspection Academy provides access to the latest non- destructive technologies (NDT) as well as high-quality training in the application of a wide range of NDT modalities to help customers improve their probability of detection, boost productivity, establish lifelong career skills and build confidence for better decision making.

GE INSPECTION TECHNOLOGIES | 11 | CONFIDENTIAL OFFERING MEMORANDUM PROPERTY DESCRIPTION

Address 721 Visions Drive

Location Skaneateles, NY

County Onondaga County

TAX ID 018-02-39

Rentable Area 73,820 SF

Total Land 17.77 AC

Leased Land 15.99 AC

Year Built 2007

Use Manufacturing / Production

Concrete masonry with finished Construction metal panels at roof line GE Inspection Technologies Employee Parking 293; 3.97 per 1,000 SF 01/14/23 Dock Doors 2

Clear Height 25’

Roof Composition 0.45 mil fully-adhered TPO

Power 2,000 amp; 277/480 volt

Sprinklers wet- and dry-pipe sprinkler system

Bldg Dimensions +/- 203’ x 366’

GE INSPECTION TECHNOLOGIES | 12 | CONFIDENTIAL OFFERING MEMORANDUM

721 MARKET OVERVIEW

GREATER SYRACUSE REGION Syracuse is the county seat of Onondaga County, New York, and is the fifth most populous city in the state. Metropolitan Syracuse is home to roughly 663,000 people, based on the 2010 Census, an increase of a modest 1.9 percent from 2000. The majority of the population in the metropolitan area resides in the city of Syracuse and the surrounding county of Onondaga, which includes approximately 70 percent of the three-county population. The two remaining counties are predominantly suburban and rural, and are much less thickly populated. Madison County's population expanded by nearly 6 percent between 2000 and 2010, making it, by far, the fastest growing of these three counties. Onondaga's population rose by just under 2 percent, while Oswego's population was little changed.

The Syracuse metropolitan area's industry mix closely parallels the Nation’s. Manufacturing accounts for roughly 11 percent of employment— in line with the national average. In particular, computer and electronics manufacturing is highly concentrated in the metro area, especially in Onondaga County. Educational services is also a major industry, led by Syracuse University in Onondaga County and Colgate University in Madison County.

GE INSPECTION TECHNOLOGIES | 15 | CONFIDENTIAL OFFERING MEMORANDUM VILLAGE OF SKANEATELES, NY

Skaneateles is an affluent village in the town of Skaneateles, Onondaga County, New York, United States. The village is named from and located on the shores of , one of the . As of the 2010 census, the village had a population of 2,450 residents. The main highway through the community is U.S. Route 20 (Genesee Street), which heads out west towards Auburn. US 20 and Skaneateles also serve as the northern terminus of New York State Route 41 and its suffixed route, New York State Route 41A. It is also the southern terminus of New York State Route 321.

Many of the Village's architectural treasures date from the 1830's. (A downtown Historic District was established in 1985.) Early agriculture was centered on dairy and grain. By 1850, the village and it's surrounding hamlets had grown in industry as well, producing wool cloth, mill machinery, carriages, sleighs, paper, bricks, ironwork and farm implements. Today, a major employer is Welch Allyn, one of the world's largest manufacturers of medical diagnostic instruments and bar code scanning products. Tourism is also a mainstay of the Skaneateles economy, welcoming visitors who are drawn by the beauty of the lake and the charm of the shops, restaurants, a museum, galleries, B & B's, historic inns, the Skaneateles Music Festival and the Dickens Christmas celebration.

GE INSPECTION TECHNOLOGIES | 16 | CONFIDENTIAL OFFERING MEMORANDUM

721 FINANCIAL OVERVIEW

RENT ROLL MLA ASSUMPTION Square Lease Rent Rent Annual Annual Pro Rata Lease Market Rent: $14.16 Net Tenant Feet Expires Start End RSF Rent Share Type GE Inspection Lease Term: 5 years Technologies 73,820 1/14/23 1/15/18 1/14/19 $14.16 $1,045,291 100% Net Renewal Probability: 75% 1/15/19 1/14/20 $14.30 $1,055,744 Annual Escalation: 1.5% 1/15/20 1/14/21 $14.44 $1,066,302 Free Rent: 1 (New) / 1 (Renew) 1/15/21 1/14/22 $14.59 $1,076,965 TI Allowance: $3.00 (New) / $1.00 (Renew) 1/15/22 1/14/23 $14.73 $1,087,734 Leasing Commissions: 6.0% (New) / 3.0% (Renew)

GE INSPECTION TECHNOLOGIES | 18 | CONFIDENTIAL OFFERING MEMORANDUM LEASE ABSTRACT Utilities: Utilities shall include gas, electricity, water (including for fire protection service), sewer (sanitary and storm) and telephone. Tenant shall pay all charges for consumption of said utilities during the Term of this Lease.

Taxes: Tenant shall pay all real estate taxes, payment in lieu of taxes, assessments, and other governmental charges, general or special, in any kind and nature, that are assessed upon the Premises and become payable during the Term of this Lease

Landlord Maintenance: Landlord shall maintain the exterior and structural portions of the Premises. Landlord's responsibility for maintenance and repair shall be limited to the following: (i) roof; (ii) foundation; (iii) exterior and load-bearing walls; (iv) mechanical and electrical service lines; (v) replacement of parking lots, driveways, sidewalks, and walkways

Tenant Maintenance: Tenant shall maintain (i) the Premises; (ii) maintain and repair and replace all mechanical and electrical systems in the Building; (iii) maintain, patch and restripe the parking lots, and (iv) maintain and repair the driveways, sidewalks, and walkways.

LEASE OPTIONS Termination Option Effective as of the last day of the forty eighth (48th) full calendar month by providing no less than 120 days prior written notice and delivering a Termination Fee equal to (i) an amount equal to the unamortized portion of any leasing commissions, calculated based on an 8% amortization rate, and (ii) three (3) months then current Base Rent ($271,933.56)

GE INSPECTION TECHNOLOGIES | 19 | CONFIDENTIAL OFFERING MEMORANDUM AVERAGE OCCUPANCY FOR THE YEAR 100% 100% 100% 100% 100% 79% 100% 100% 100% 100% FISCAL YEAR ENDING MARCH PSF 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

REVENUE Base Rental Revenue $14.19 1,047,511 1,057,986 1,068,566 1,079,252 1,078,721 1,045,291 1,060,971 1,076,885 1,093,038 1,109,434 Absorption & Turnover Vacancy $0.00 0 0 0 0 (221,984) 0 0 0 0 0 Rent Abatement $0.00 0 0 0 0 0 (87,108) 0 0 0 0 Reimbursement Revenue $2.07 153,001 157,591 162,318 167,188 134,817 212,030 225,770 232,073 238,562 242,027 General Vacancy $0.00 0 0 0 0 0 (57,749) (64,310) (65,449) (66,582) (67,539) TOTAL REVENUE $16.26 1,200,512 1,215,577 1,230,885 1,246,440 991,554 1,112,464 1,222,430 1,243,509 1,265,019 1,283,922

EXPENSES Common Areas $0.26 19,151 19,726 20,318 20,927 21,555 22,202 22,868 23,554 24,260 24,988 Insurance $0.07 5,362 5,523 5,689 5,860 6,035 6,216 6,403 6,595 6,793 6,997 Management Fee $0.49 36,015 36,467 36,927 37,393 29,747 33,374 36,673 37,305 37,951 38,518 Real Estate Taxes $1.81 133,849 137,865 142,001 146,261 150,649 155,168 159,823 164,618 169,556 174,643 TOTAL EXPENSES $2.63 194,378 199,581 204,934 210,441 207,986 216,960 225,767 232,072 238,560 245,145

NET OPERATING INCOME $13.63 1,006,133 1,015,996 1,025,951 1,035,999 783,568 895,504 996,663 1,011,437 1,026,459 1,038,777

CAPITAL Tenant Improvements $0.00 0 0 0 0 0 132,217 0 0 0 0 Leasing Commissions $0.00 0 0 0 0 0 202,213 0 0 0 0 Capital Reserve $0.10 7,660 7,890 8,127 8,371 8,622 8,881 9,147 9,421 9,704 9,995 TOTAL CAPITAL $0.10 7,660 7,890 8,127 8,371 8,622 343,311 9,147 9,421 9,704 9,995

CASH FLOW $13.53 998,473 1,008,105 1,017,824 1,027,628 774,946 552,193 987,516 1,002,016 1,016,755 1,028,782

GE INSPECTION TECHNOLOGIES | 20 | CONFIDENTIAL OFFERING MEMORANDUM 8755 W HIGGINS RD 7TH FLOOR CHICAGO, IL 60631

PRIMARY CONTACTS

• TODD TOROK | MANAGING DIRECTOR | 312 228 3738 | [email protected]

• RYAN BARR | PRINCIPAL | 760 448 2446 | [email protected]

• RYAN BENNETT | PRINCIPAL | 760 448 2449 | [email protected]

Michael Carpenter | New York Broker of Record | [email protected]