HILLSBOROUGH STREET LAND ASSEMBLAGE for Multifamily Development Near NC State University 3411 Hillsborough St Raleigh, NC 27605 Hillsborough St Gorman St COMMERCIAL REAL ESTATE COMMERCIAL REAL ESTATE CONFIDENTIALITY CONTACT DISCLAIMER The information contained in this Offering Memorandum is proprietary and strictly confidential. It CityPlat is intended to be reviewed only by the party(ies) receiving it from CityPlat, LLC and should not be www.cityplat.com made available to any other person or entity without the written consent of CityPlat, LLC. If you are 919.650.2643 not the intended recipient, you are hereby notified that any retention, dissemination, duplication, forwarding, copying or taking any action in reliance on the contents of this information is strictly prohibited. If you receive this Offering Memorandum in error, whether in electronic or printed form, please notify the sender and destroy the document. 119 SW Maynard Rd Suite 200 This Offering has been prepared to provide a summary of unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The Cary, NC 27511 information contained herein is not a substitute for a thorough due diligence investigation. CityPlat, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its Nikita Zhitov occupancy of the subject property. [email protected] 919.412.9038 The information contained in this Offering has been obtained from sources we believe are reliable; however, CityPlat, LLC has not verified, and will not verify, any of the information contained herein, nor has CityPlat, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the Vincenzo Verdino information provided. [email protected] 917.566.5944 Patrick Moore [email protected] 724.549.5916 4 7 Executive Investment Summary Highlights 2 1 3 4 5 6 N TABLE OF 20 CONTENTS 27 Development Overview Land Overview 32 Market Overview EXECUTIVE SUMMARY 5 | CityPlat EXECUTIVE SUMMARY The offering represents an outstanding Hillsborough St opportunity to acquire six parcelsGorman St totaling 1.72 aces for development in one of the most dynamic markets in the country. The property is an extremely desirable opportunity in Raleigh, NC because of its prominent location pedestrian to NC State University and only one mile from Downtown Raleigh. This location lends itself to multiple options going forward. The land assemblage could be developed as student housing, market-rate multifamily, condos, retail and mixed use. Gorman St 6 | CityPlat EXECUTIVE SUMMARY Raleigh-Durham was ranked #4 Multiple sources report an announcement is Raleigh-Durham was one of 20 finalists under consideration for “Market to Watch” by ULI in their imminent for Apple’s move to the Triangle. Amazon’s second headquarters, dubbed “HQ2”, one of only 20 cities 2018 Emerging Trends in Real Sources believe Apple would employ 10,000 from proposals submitted by 238 communities in North America. Estate Report. This was out of people. Apple will temporarily locate in Cary Although ultimately Raleigh-Durham was not selected, its inclusion as nearly 80 markets in the U.S. In the and North Raleigh before transitioning to a a top market is significant. Additionally, Amazon selected Garner, just prior three years, Raleigh-Durham Research Triangle Park development site. south of Raleigh, for its brand new $200 million, 2.6 was ranked #7, #11, and #10. million-square-foot Amazon distribution center, under construction now with plans to deliver in 3Q2019. The center will bring nearly 1,500 jobs. OFFERING TERMS PROPERTY SUMMARY Terms Offered on an all-cash basis Address 3411 Hillsborough St Property Visits Interested parties are Zoning NX-5-UL-CU Neighborhood required to schedule property Mixed Use - 5 Stories - visits directly through CityPlat. Urban Limited-Conditional Under no circumstances Use with Special Residential should the property or seller Parking Overlay District be contacted directly Conditional Use Restricts 4 bedroom Offer Submission Please submit offers directly dwelling units to CityPlat in the form of a non-binding letter of intent Total Acres 1.72 Acres (“LOI”). < 0.25 miles 17.8 miles 31.2 miles 4.2 miles 11.2 miles INVESTMENT HIGHLIGHTS 8 | CityPlat INVESTMENT HIGHLIGHTS PEDESTRIAN TO NC STATE HILLSBOROUGH STREET PROXIMITY TO SURROUDING DOWNTOWN RALEIGH: THRIVING MARKET DISTRICT AMENITIES UNBRIDLED GROWTH FUNDAMENTALS The property is pedestrian to North Carolina State The property is prominent The property is within Less than one mile to The market fundamentals University, a Tier 1 University and perfectly poised to moments of a plethora of downtown Raleigh, the are strong for a variety of with robust student benefit from the exploding surrounding amenities, by property is perfectly development options, and fundamentals. Hillsborough Street District, either a short walk or a short positioned to benefit from the property provides a which has undergone drive. the explosive growth unique opportunity in a high significant revitalization and experienced in downtown barrier to entry market. growth in the past two years. Raleigh. 9 | CityPlat INVESTMENT HIGHLIGHTS - PEDESTRAIN TO NC STATE As students/millennial/baby boomers/the population are continually influenced by the resurgence of urban living and desire to be walking distance of NC State and surrounding amenities, the Property’s location two blocks from NC State’s campus positions the property for stable, long-term demand for development. New surrounding developments will provide demand for additional amenities and continue to strengthen the revitalization of Hillsborough Street. CAMERON VILLAGE 527,917 SF upscale shopping & lifestyle center with a mix of local & national tenants Hillsborough St 10 | CityPlat INVESTMENT HIGHLIGHTS - ROBUST STUDENT HOUSING DEMAND ENROLLMENT APPLICANTS GRADUATE ENROLLMENT INCREASED SINCE 2007 INCREASED SINCE 2007 INCREASED SINCE 2007 6% 44% 95% Hillsborough St ENROLLMENT GROWTH North Carolina State University’s projected enrollment for 2020 is 37,000 students total which includes undergraduate, graduate, and non-degree seeking. With these projections, 30 new faculty members would be added as well. STUDENT HOUSING DEMAND With NCSU’s undergraduate full-time enrollment (FTE) at 24,150 and campus beds at 13,266 the number of undergraduate students seeking off campus housing will exceed 10,800 students. University-Owned housing options for students include 20 residence halls (small dormitories on campus) and apartment- style dormitories such as Wolf Village, ES King Village, Western Manor and the newly constructed Wolf Ridge. 11 | CityPlat INVESTMENT HIGHLIGHTS - HILLSBOROUGH ST REVITALIZATION PROJECT As a major gateway to the city of Raleigh and a hub for NCSU, Hillsborough Street is a well-known downtown Raleigh corridor which has undergone many transformations throughout its history, the most notable of which occurring in the past five years. The current renaissance of Hillsborough Street has been spurred by the completion of phase 1 of the city’s revitalization project in 2010, NC State’s purchases of numerous redevelopment sites, and an influx of private investment. The road serves as a busy transportation corridor, linking the town of Cary with downtown Raleigh. Hillsborough St is also the center of social life for NC State, Meredith College, and William Peace University students, offering bars, restaurants, coffee shops, convenience stores, and banks. $20+ MILLION CITY- FINANCED MAKEOVER Completed in 2010 and totaling $10 million, the first phase of the city’s revitalization plan included improvements to the street, adding roundabouts, a raised median and street parking. More improvements are currently underway – including the addition of more roundabouts and converting another section of the street Private Investment Commitment in Real Estate (From Gardner Street to Rosemary Street) from a multi-lane, $160 undivided roadway section into a two-lane road with a raised MILLION Along Hillsborough St median, on-street parking and bike lanes. As the corridor continues to blossom, retail and restaurants have Restaurants & Eateries Current Average Sales seen record setting increases in sales and the growth is only 18% Increase expected to endure. Popular local businesses are opening additional locations, businesses are converting old warehouse into modern high-end office space, and Raleigh residents other than just students are moving to Hillsborough Street. This corridor is Revitalization Project Centered on Street transforming into a vibrant, urbanized downtown district. $20+ Improvement MILLION 12 | CityPlat INVESTMENT HIGHLIGHTS - HILLSBOROUGH ST REVITALIZATION PROJECT Phase II of the Hillsborough Street Revitalization Project has just been completed. The total invested in the project, centered on street improvement, is now over $20 million. SUMMARY This project is modifying Hillsborough Street from the prior configuration of a multi-lane undivided