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

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 roadway section to a 2 lane road with a raised median, marked bike lanes and on-street parking where feasible, from Gardner Street to the Rosemary Street / Shepherd Street intersection and includes proposed roundabouts at Brooks Avenue, Dixie Trail and Rosemary/Shepherd Streets.

HISTORY

This portion of Hillsborough Street is classiﬁed as a minor thoroughfare roadway in the City of Raleigh’s Comprehensive Transportation Plan and carries an average of 17,000 - 19,000 vehicles per day (2016 ADT). This project design will improve the usability of the corridor by using a “complete streets” design approach to provide better access for trafﬁc, bicyclists, and pedestrians alike. In the end, this will provide a fully functional multi-modal corridor, improve safety for motorists and pedestrians, and provide a sustainable solution along this important business district and the northern perimeter of the NC State University campus. 13 | CityPlat INVESTMENT HIGHLIGHTS - PROXIMITY TO SURROUNDING AMENITIES

The Property is situated in close proximity to Cameron Village and downtown Raleigh, in addition to being located directly along Hills- borough St. All three of these locations are prominent retail hubs in the Raleigh market. Cameron Village, CAMERON VILLAGE an upscale, premier shopping destination merely a ﬁve minute drive from the property features a stand-out merchandise mix featuring local, regional and national stores. Spanning six blocks of tree-lined walkway, brick sidewalks, unique storefronts, distinctive boutiques, cozy cafes & wonderful restaurants, a location close to to Cameron Village is ideal.

Downtown Raleigh, inclusive of many diverse districts including the Warehouse District and the growing Glenwood South Entertainment District is also mere minutes away. Particularly, Glenwood South has blossomed in past decade. A palpable energy has developed as local restaurants, hip bars, and small cafes have opened up along this 8-block stretch of Glenwood Avenue. This downtown entertainment district – whose nightlife scene was once only known for its clubs - has transitioned into a trendy spot now also home to many liquor lounges and upscale dive bars. DOWNTOWN RALEIGH

HILLSBOROUGH STREET 14 | CityPlat INVESTMENT HIGHLIGHTS

DOWNTOWN RALEIGH Over 200 retailers, restaurants and bars occupy Raleigh’s Central Business District, with over 850 businesses located downtown. CAMERON VILLAGE 527,917 SF upscale shopping with a blend o fnational and local retailers. The Southeast’s original lifestyle cetner.

Hillsborough St

NC STATE UNIVERSITY / HILLSBOROUGH ST RETAIL CORRIDOR Over 90 retailers,restaurants and bars pepper the prime retail corridor encompassing NC State’s campus. 15 | CityPlat INVESTMENT HIGHLIGHTS - PROXIMITY TO SURROUNDING AMENITIES

DINING SHOPPING OTHER

CAMERON VILLAGE 1. Ben and Jerry’s 26. Taco Bell Cantina 2. Brickhouse Sports Pub 27. Insomnia Cookies 3.Beansprout Chinese 28. Brugger’s Bagels 4. Raleigh Brewing Company 29. Gonza Tacos Y Tequila 31 32 5. Snoopy’s Hot Dogs 30. Jubala Coffee 6. Sushi Tsune 31. Liquid State 28 29 30 8 7. Arby’s 32. David’s Dumplings 25 26 27 20 8. The Wild Cooke’s 7 21 7 9. Sub Conscious 1. Reader’s Corner Bookshop 19 17 22 10. Pizza Hut 2. Smoke Ring Smokeshop 6 18 11. Penn Station Subs 3. Nice Price Books 5 6 16 12. Smoothie King 4. College Beverage 4 13 13. Hot Tomato Pizzeria 5. CVS Pharmacy 15 14 14. Wings Over Raleigh 6. Fed Ex Office/Print/Shop 4 5 15. Hangover Grill 7. Red Line Beer and Wine 3 12 16. Checkers Pizza and Subs 3 10 11 17. Poke Bar 1. BP Gas Station 18. Chick Fil A 8 1 2 2. White Wall Auto Repair 2 9 19. Caza Nightclub 3. Pantana’s Pool Hall 7 5 20. Mitch’s Tavern 4. Bitcoin Depot ATM 6 1 21. Global Village Coffee 5. Cutting Edge Salon 3 22. Jasmine and Olive 6. State Employees Credit 4 23. Coco Bongo Union 2 1 N 24. Chipotle Mexican Grill 7. Wells Fargo Bank 25. Jimmy John’s 8. Sam and Bill’s Hair Design 16 | CityPlat INVESTMENT HIGHLIGHTS - PROXIMITY TO SURROUNDING AMENITIES

RALEIGH / DURHAM MARKET: ASSET CLASS SUMMARY

EFFECTIVE RENT EFFECTIVE RENT OCCUPANCY PER UNIT PER SF (%)

CLASS A $1,605 $1.88 94.3%

CLASS B $1,085 $1.11 95.2%

CLASS C $898 $0.93 96.0%

RALEIGH / DURHAM MARKET: ASSET CLASS SUMMARY

EFFECTIVE RENT EFFECTIVE RENT OCCUPANCY PER UNIT PER SF (%)

CLASS A $1,605 $1.88 94.3%

CLASS B $1,085 $1.11 95.2%

CLASS C $898 $0.93 96.0%

Raleigh/Durham Class A Effective Rent (psf)

EXCELLENT ACCESSIBILITY 2,500 Easy access to I-40, I-440, Highway 70, US 64, Capital Blvd. and other major transportation arteries 2,000 NC AMTRAK set ridership record in 2013 with passenger travel between Raleigh and Charlotte jumping 4.7% YoY 1,500 R-LINE Downtown Raleigh’s free bus service that continues to grow ridership; buses run approximately every 15 minutes 1,000 SIZEABLE PROPERTY IN A HIGH BARRIERS TO ENTRY MARKET Hillsborough Street’s unique submarket characteristics amplify the 0.500 attractiveness of the opportunity. Situated on a generous 1.72 acres, the property is a rare offering in this competitive, high barriers to entry market 0.000 which is bordered by residential neighborhoods to the north and NC State 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015 3Q 2016 3Q 2017 3Q 2018 University to the south. Class A Releigh/Durham Effect Rent PSF Class A National Effective Rent PSF 17 | CityPlat INVESTMENT HIGHLIGHTS - PROXIMITY TO DOWNTOWN RALEIGH

#6 #2 #3 Best city #1 Hottest Healthiest Boomtown to start a Spot for job 2016 career Tech Jobs market

#2 #3 #3 Area Best Top US #2 #46 with the Best city for Best places for Life highest # young performing business & science of tech entrepreneurs large city career cluster jobs

Top 12 #3 Travel Best #4 destinations #4 midsize Top Tech Best place in the metro for StartUp to live world job City seekers 18 | CityPlat INVESTMENT HIGHLIGHTS

STRONG FUNDAMENTALS FOR MULTIPLE DEVELOPMENT OPTIONS

APARTMENTS HOTELS

Downtown Raleigh’s multi-family apartment market is Raleigh hotels consistently outperform county, state, and booming with low vacancy rates driving the demand. For national averages, demonstrating a growing visitor base multi-family apartment buildings within downtown, the and increasing demand for hotels in Raleigh’s CBD. vacancy rate is a mere 2.73%, while the vacancy rate for all Downtown has 1,257 hotel rooms with a hotel room apartment buildings within one mile of downtown is 6.0% occupancy of 71.3%. The average daily room rate in 2017 and the vacancy rate for Class A apartments within one was $148.71 and there has been a 37% growth in revenue / mile of downtown is 7.3%. (These numbers do not include room to $104.09 over 2013. brand new buildings currently in their lease-up phase.)

95.3% $1,444 19.0% 11.2% Overall occupancy for Average rent for all Increase in revenue per Growth in hotel multifamily apartments apartments in room over 2013 in occupancy over 2013 in in Downtown Raleigh Downtown Raleigh Downtown Raleigh Downtown Raleigh 19 | CityPlat INVESTMENT HIGHLIGHTS - MULTIFAMILY MAP

Hillsborough St

1 2 5 4 6 3

AVG AVG AVG AVG AVG AVG YR BLT/ AVG SF/ STUDIO SINGLE DOUBLE TRIPLE QUAD RENT / PROPERTY ADDRESS BEDS RENO BED $/BED $/BED $/BED $/BED $/BED SF OCC.

FRIENDLY APARTMENTS 105 Friendly Dr 49 2016 n/a - $1,495 $965 - $780 $2.10 100.0%

STANHOPE APARTMENTS 3001 Hillsborough St 810 2015 467 $1,165 $1,550 $935 $900 $830 $1.91 99.0%

VALENTINE COMMONS 3009 M E Valentine Dr 928 2012 315 - - $796 $731 $681 $2.24 97.0%

UNIVERSITY TOWERS 111 Friendly Dr 1,680 1989 420 - - - - $687 $1.64 98.1%

2811 2811 Hillsborough St 66 2015 376 - $1,143 - $814 - $2.32 96.7%

2604 2604 Hillsborough 29 2014 394 - $1,112 - $769 - $2.19 99.1%

THEORY RALEIGH 1505 Hillsborough St 525 2018 396 - $1,505 $1,003 $786 $769 $2.00 96.7%

TOTAL/AVERAGE 4,038 2004 401 $2.06 97.8% 26 | CityPlat DEVELOPMENT OVERVIEW

APARTMENT LAND COMPARABLES PRICE PRICE SALE SALE PRICE/ PER PER ADDRESS SIZE ZONING UNITS BEDS DATE PRICE SQFT UNIT BED

3101 Hillsborough St 2.9 NX-5-UG 234 707 5/27/2016 $10,750,000 $85.10 $45,940 $15,205

2811 Hillsborough St 0.57 NX-4-SH 30 66 1/17/2014 $1,425,000 $57.39 $47,500 $21,591

2812 Hillsborough St 0.21 NX-4-SH 29 49 7/31/2018 $1,060,000 $115.88 $36,552 $21,633

2702 Hillsborough St 0.21 NX-4-CH 15 45 6/28/2016 $860,000 $94.01 $57,333 $19,111

Maiden Lane Assemblage 3.63 NX-3-UG 203 265 10/7/2016 $11,600,000 $73.36 $57,143 $43,774

1505 Hillsborough St 2.49 NX-5-UG 150 525 4/4/2016 $10,000,000 $92.20 $66,667 $19,048

3020 Hillsborough St 2.46 NX-3-UG 142 326 2/6/19 $12,200,000 $113.85 $85,915 $37,423

2303 Clark / 101 Enterprise St 0.81 OX-5-UL 51 89 8/15/2019 $2,990,000 $84.74 $58,627 $33,596

102 Logan Ct 1.12 RX-3 81 192 1/6/2017 $2,767,000 $56.72 $34,160 $14,411

113 Chamberlain St 0.62 RX-3 45 102 1/6/2017 $1,383,000 $51.21 $30,733 $13,559

Totals 14.6 936 2272 $53,115,000 $83.52 $56,747 $23,378

NON APARTMENT HILLSBOROUGH ST. LAND COMPS PRICE PRICE SALE SALE PRICE/ PER PER ADDRESS SIZE ZONING UNITS BEDS DATE PRICE SQFT UNIT BED

2020 Hillsborough St 0.58 NX-4-UL 10/27/2017 $2,750,000 $108.85 $45,940 $15,205

Maiden Lane Parking Lot 0.69 OX-3 12/10/2015 $2,000,000 $66.54 $47,500 $21,591

Maiden Lane Parking Lot 0.31 OX-3 8/11/2017 $1,258,500 $93.20 $57,143 $43,774

207 Oberlin Rd 0.84 NX-3-GR 3/16/2017 $3,992,000 $109.10 $66,667 $19,048

1615 Hillsborough St 0.9 OX-5 7/27/2018 $2,692,300 $68.67 $70,423 $20,675

Totals 3.32 $12,692,800 $87.77 $54,396 $22,410 LAND OVERVIEW 28 | CityPlat LAND OVERVIEW

PARCEL OVERVIEW

PARCEL PIN ACREAGE

1 0794338424 0.52

2 2 0794339499 0.32

3 0794339442 0.27

1 4 0794338395 0.26 3

5 0794338360 0.20

6 0794338236 4 0.15

TOTAL: 1.72 ACRES

6 ZONING NX-5-UL-CU Neighborhood Mixed Use - 5 Stories-Urban Limited-Conditional Use with Special Residential Parking Overlay District

N 29 | CityPlat LAND OVERVIEW

CURRENT ZONING PRICE PRICE SALE SALE PRICE/ PER PER ADDRESS SIZE ZONING UNITS BEDS DATE PRICE SQFT UNIT BED

2020 Hillsborough St 0.58 NX-4-UL 10/27/2017 $2,750,000 $108.85 $45,940 $15,205

Maiden Lane Parking Lot 0.69 OX-3 12/10/2015 $2,000,000 $66.54 $47,500 $21,591

Maiden Lane Parking Lot 0.31 OX-3 8/11/2017 $1,258,500 $93.20 $57,143 $43,774

207 Oberlin Rd 0.84 NX-3-GR 3/16/2017 $3,992,000 $109.10 $66,667 $19,048

1615 Hillsborough St 0.9 OX-5 7/27/2018 $2,692,300 $68.67 $70,423 $20,675

Totals 3.32 $12,692,800 $87.77 $54,396 $22,410

30 | CityPlat LAND OVERVIEW

TOPOGRAPHY 31 | CityPlat LAND OVERVIEW

SOILS MARKET OVERVIEW 33 | CityPlat MARKET OVERVIEW - NORTH CAROLINA STATE UNIVERSITY

Largest#1 public Startups and100+ spin offs based on university in North NC State research, attracting a Carolina total of $1.6 billion in venture capital Undergraduates24,437

Graduate9,516 and professional In new sponsored$300 research + Million awards and the only students university in the nation leading two National Science Foundation Engineering Research Centers

North Carolina State University, commonly known as NCSU or NC State, is a public, coeducational, research university in Raleigh, NC. As the largest university in the state, it is known for its leadership in education and research, and globally recognized for its science, technology, engineering and  Average starting salary for graduates out of all NC mathematics leadership. NC State is home to 12 undergraduate colleges, a public colleges | onlinecollegesdatabase. org graduate school, two professional schools, and over 2,000 faculty members. 60  Best Value College among North Carolina universities Doctoral SmartAsset.com Programs  College of Veterinary Medicine in the nation | U.S. News & World Report  Best value among U.S. public universities | Princeton 120 Review Master’s  Best value among U.S. public universities | U.S. News & Programs World Report  On-campus includes all college owned, operated or afﬁliated properties.

Undergraduate100 Programs 34 | CityPlat MARKET OVERVIEW - NORTH CAROLINA STATE UNIVERSITY

In January 2013, the $115 million James B. Hunt Library opened. The Library is located on Centennial Campus and is most known for its architecture and technological integration, including a large robotic book storage and retrieval system which houses most of the university’s engineering, textiles, and hard sciences collections.

PIPELINE HOUSING & MEAL PLAN RATES FOR 2015 & 2016 ACADEMIC YEAR On Campus: No planned developments at this time. Off Campus: Stanhope was delivered to Residence Halls: $5,910 to $7,720 per year On-Campus Apartments: $620 market at 100% occupancy in August 2015. to $995 per bed Meal Plans: $995 to $1,680 per semester

RESIDENTIAL LIFE

North Carolina State University’s residence halls are divided across East, Central and West campuses with apartments throughout the campus.

While 78% of the new freshmen class live in University housing, they are not required to live on campus. All first-year students (students entering college for the first time) living in on-campus housing and are required to have a meal plan their first year. 35 | CityPlat MARKET OVERVIEW - NORTH CAROLINA STATE UNIVERSITY

Carter-Finley Stadium

NC State’s sports teams, nicknamed the Wolfpack, compete in NCAA Division 1 FBS as a full–member of the 15 team ACC Conference. Debby Yow is the Athletic Director. Facilities include the 57,583 seat Carter-Finley Stadium for football, the 19,722–seat PNC Arena for men’s basketball, the 9,500–seat Reynolds Coliseum for women’s basketball, and Doak Field with a seating Doak Field capacity of 2,200 for baseball.

PNC Arena 36 | CityPlat MARKET OVERVIEW - TIER ONE EDUCATIONAL HUB

Total Undergraduate Graduate Live On Live Onff Distance to the Drive Time to the School Enrollment* Enrollment Enrollment Campus Campus Property Property

Meredith College 1,982 1,682 300 1,189/60% 793/40% 0.7 miles 3 min

NC State University 34,015 24,111 9,90 13,266/39% 20,749/61% 0.5 miles 2 min

William Peace University 1,077 1,077 N/A 549/51% 528/49% 4.3 miles 11 min

St. Augustine’s University 1,000 1,000 N/A 740/74% 260/26% 5.6 miles 15 min

Campbell Law School 391 N/A 391 N/A 391/100% 4.4 miles 11 min

Shaw University 1,666 1,546 114 933/56% 733/44% 4.0 miles 14 min

Totals 40,131 29,416 10,709 16,677 23,454 3.25 miles 9 min 37 | CityPlat MARKET OVERVIEW - TIER ONE EDUCATIONAL HUB

SHAW UNIVERSITY Shaw University is a private, liberal arts school founded in 1865. It is the oldest historically African-American School in the South.

MEREDITH Meredith College is a private, liberal arts, women’s university founded in 1891. Today, men participate in their graduate programs. In 2012 Meredith launched a new strategic plan for the future of the College which included massive capital investments to their infrastructure, educational programs, and marketing plans. Highlights from the plan include graduating increasingly larger classes, renovating campus buildings, and establishing new graduate programs. SAINT AUGUSTINE’S COLLEGE St. Augustine’s University is a private, liberal arts, Episcopal university founded in 1867. They offer over 25 major programs.

CAMPBELL LAW SCHOOL The Norman Adrian Wiggins School of Law, also known as Campbell Law School, is a private law school known for having the highest bar passage rate in North Carolina WILLIAM PEACE UNIVERSITY William Peace iUniversity s a small, private college with Presbyterian afﬁliations. Previously known as Peace College, the school changed its name in 2012 when it allowed males to enroll. Since this change, total enrollment has increased 71.57%. 38 | CityPlat MARKET OVERVIEW - HILLSBOROUGH ST ECONOMIC DEVELOPMENT ACTIVITY

Live It Up! Hillsborough Street Development Report 39 | CityPlat MARKET OVERVIEW - HILLSBOROUGH ST ECONOMIC DEVELOPMENT ACTIVITY KEY Total Undergraduate Graduate Live On Live Onff Distance to the Drive Time to the School Enrollment* Enrollment Enrollment Campus Campus Property Property

Meredith College 1,982 1,682 300 1,189/60% 793/40% 0.7 miles 3 min

NC State University 34,015 24,111 9,90 13,266/39% 20,749/61% 0.5 miles 2 min

William Peace University 1,077 1,077 N/A 549/51% 528/49% 4.3 miles 11 min

St. Augustine’s University 1,000 1,000 N/A 740/74% 260/26% 5.6 miles 15 min

Campbell Law School 391 N/A 391 N/A 391/100% 4.4 miles 11 min

Shaw University 1,666 1,546 114 933/56% 733/44% 4.0 miles 14 min

Totals 40,131 29,416 10,709 16,677 23,454 3.25 miles 9 min

40 | CityPlat MARKET OVERVIEW

DENSITY | PEOPLE PER SQUARE MILE Downtown Raleigh is 70% more dense than the City of Raleigh and 369% denser than Wake County.

CBD City of Raleigh Wake County 5,063/SM 2,977/SM 1,079/SM A DOWNTOWN ON THE RISE “Downtown Raleigh’s population has grown by 179% since 2000 with the addition of over 3,500 residential units in the past 17 years in buildings like Park Devereux, PNC Plaza, The POPULATION | EXPONENTIAL Hudson Condominiums, The Dawson, Hue Apartments, Palladium Plaza, West at North, 222 Glenwood, 712 Tucker, SkyHouse, The L, Elan City Center, Edison, Link, The Gramercy, and St. GROWTH AT CENTER Mary’s Square.” The population within a one mile radius of the CBD will grow at a rate of 2.7% between 2012 and 2017 - nearly four times the national rate.

199,000 | 1 Mile Radius of Capital

95,000 | 3 Miles

15,000 | 1 Miles

5,975 | In the CBD 41 | CityPlat MARKET OVERVIEW

EDUCATION | DOWNTOWN IS A BRAIN MAGNET

Educational Attainment of ages 25+ with College Degrees or Higher [SOURCE: American Community Survey, 2007-2011]

POPULATION | BY AGE The median age of an urban Raleigh resident is 30.1, more than 7 years younger than the national median age.

16-

14-

12-

10-

8- Percent 6-

4- 2013 2018 2-

0- 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ 42 | CityPlat MARKET OVERVIEW

Downtown Employment By Sector

“Downtown Raleigh Residents are YOUNG, SMART, and CREATIVE and they want an URBAN LIFESTYLE. Forty-six percent hold a bachelor’s degree or higher. Employer’s recognize that the best talent demands the amenities downtown offers. Citrix brings 339 new permanent full time positions with an average wage of $70,914 over the next 5 years. Red Hat’s 1000 employees and contractors, with a median age of 28 and salary of $80,000, ﬁll downtown restaurants, retailers, and bars with smart, young, savvy people.” 43 | CityPlat MARKET OVERVIEW

ANNOUNCED $ 3 B I L L I O N 1. 220 The Saint - 216 St Mary's St. completed, under construction, and planned projects in the CBD in just 10 years. 2. Edison Ofﬁce - 335 S Wilmington St. 3. Moore Square Renovation - 200 S. Blount St. 8. 4. West Apartments - 413 N Harrington St. 2. 5. West Apartments II - 441 N Harrington St. 6. Residence Inn by Marriott - 602 S Salisbury St. 4. 7. 7. Union Station - 510 W. Martin St. 7. 5. 12. 9. 3. UNDER CONSTRUCTION 10. 1. 200. S Salisbury - 200 S Salisbury St. 2. 227 Fayetteville St. - 227 Fayetteville St 3. Blount Street Commons - 510 John Haywood Lane 12. 4. Boylan Pearce Building - 217 Fayetteville St 5. Charter Square - 501 Fayetteville St 6. 8. The Edison Apartments - 301 S Wilmington St 4. 7. Elan City Center - 501 N Wilmington St 3. 8. Peace Street Townes - 206 E. Peace St. 9. The Gramercy - 630 N. North St. 10. The Lincoln - 402 E. Hargett St. 11. 11. The L - 209 W Davie St 1. 13. 12. Link Apartments - 207 N. West 1. 1. 10. 13. The Ten at South Person - 520 S. Person St.LE 2. 4. 3. 13. COMPLETED 9. 7. 2. 1. SkyHouse Raleigh – 313 Wilmington St. 2. Raleigh Beer Garden - 614 Glenwood Ave. 11. 6. 3. Holiday Inn Renovation - 320 Hillsborough St. 5. 4. North Carolina State Bar - 217 E. Edenton St. 6. 5. Red Hat Tower - 100 E. Davie St. 6. Sheraton Raleigh Hotel Renovation - 421 S Salisbury St. 7. Carolina Ale House - 500 Glenwood Ave. 5. 8. State Employees Credit Union - 100 N Salisbury 9. Wake 6. County Justice Center - 300 S. Salisbury St. 10. Hibernian Pub – Renovation – 311 Glenwood Ave 11. Citrix - 120 S. West St. 12. Devon Four25 - 425 N Boylan Ave. 13. Marbles Kids Museum Expansion - 201 E. Hargett St. 14. SunTrust - 411 Fayetteville St.

14. 44 | CityPlat MARKET OVERVIEW

Downtown Employment By Sector

Hottest#2 Spot for Best#2 Place for Highest#2 Number Best City#3 for Job Highest#4 % of City with#4 Fastest Tech Jobs Business of Tech Jobs Seekers in 2017 Workforce in STEM Growing Income FORBES FORBES NEW YORK TIMES INDEED WALLETHUB SMARTASSET

“Downtown Raleigh is in the midst of historic growth. Since 2005, downtown has seen over $3 billion in development completed and under construction, which has added new residences, convention space, ofﬁces, retail, entertainment venues, hotels, and restaurants”

- Downtown Raleigh Alliance, State of Downtown Raleigh 2018

COMPARED TO THE U.S. WORKFORCE AS A WHOLE:

Higher96% share of Higher40% share of Higher156% share of computer and architecture & Higher105% share of software & app mathematical engineering civil engineers occupations occupations developers 45 | CityPlat MARKET OVERVIEW - DEMOGRAPHICS

2018 Summary 1 mile 3 miles 5 miles

Population 17,133 96,173 217,128

Households 3,761 40,066 89,945

Families 1,402 15,257 41,453

Average Household Size 2.33 2.07 2.21

Owner Occupied Housing Units 1,214 14,126 35,436

Renter Occupied Housing Units 2,547 25,940 54,509

Median Age 22.0 28.9 31.5

Median Household Income $52,304 $53,059 $54,127

Average Household Income $83,951 $87,812 $82,732

2023 Summary 1 mile 3 miles 5 miles

Population 17,983 106,086 238,859

Households 4,116 44,948 99,772 1 Mile Families 1,517 16,870 45,382

Average Household Size 2.34 2.06 2.21

Owner Occupied Housing Units 1,389 16,066 40,446

Renter Occupied Housing Units 2,727 28,882 59,326 2 Miles Median Age 22.2 29.6 31.8

Median Household Income $57,023 $59,122 $60,538

Average Household Income $91,663 $96,947 $92,256

3 Miles COMMERCIAL REAL ESTATE

Nikita Zhitov [email protected] 919.412.9038

Vincenzo Verdino [email protected] 917.566.5944

Patrick Moore [email protected] 724.549.5916

CityPlat www.cityplat.com 919.650.2643

119 SW Maynard Rd Suite 200 Cary, NC 27511