The Atrium Multi-Tenant Office Investment Opportunity Home to State Department of Financial Services – Expires 2034

THE ATRIUM MULTI-TENANT OFFICE INVESTMENT OPPORTUNITY HOME TO STATE DEPARTMENT OF FINANCIAL SERVICES – EXPIRES 2034

323 JOHN KNOX RD TALLAHASSEE FLORIDA THE ATRIUM 323 JOHN KNOX RD, TALLAHASSEE, FLORIDA

Property Contacts

Jimmy Nystrom, SIOR Kat Butler Director Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 Cell +1 850 570 5837 Cell +1 615 428 7909

Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property(ies), as applicable. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI TALCOR, CRE WOODCREST LLC, and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.

2 TALCOR.COM SECTION 1 EXECUTIVE SUMMARY 01

Trousdell Aquatics Center Centre of Tallahassee New State Offices: Department of Health Department of Children & Families Division of Corporations TALCOR.COM 01 EXECUTIVE SUMMARY OVERVIEW NAI TALCOR is pleased to offer this stabilized, multi-tenant office investment. The Atrium is well positioned within the Woodcrest Office Park, centrally located within Tallahassee’s MSA. The building is current 98% occupied with over 55,645 rentable square feet. It is home to the State Department of Financial Services and the State Fire Marshall office, making the Atrium a desirable long-term asset in any investor's portfolio. The building is located adjacent to the newly renovated Centre of Tallahassee which is home to approximately 1,800 state employees within three branches (DOH, DCF and DOE). Amenities in the area include a public aquatic center (Trousdell Aquatic Center seen in the photo across John Knox), an Urban Food Court located in the adjacent mall, various QSR’s and national retailers.

Key Investment Highlights 98% Occupied DFS Long Term Lease | Expires 2034 Strong Submarket Below Replacement Cost Ample Area Amenities Excellent Physical Condition

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 4 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01

323 JOHN KNOX RD, TALLAHASSEE, FL 32303

55,645 RSF 1989 3 3.20 AC 98.10% 3.4/1,000 RSF

Size Year Built Stories Site Area Occupancy Parking THE (as of June 2020) (Surface and Garage) ATRIUM

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 5 5 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01 EXECUTIVE SUMMARY MARKET HIGHLIGHTS Tallahassee Office Market The overall Tallahassee office market is currently at a vacancy rate of 6.1% in the second quarter of 2020, well below the national average of 9.7%. The Tallahassee CBD has a mixed-use project in the Cascades Park area which will add an additional 63,980 feet of office space along with a Hotel and Apartments projected to be completed in Q4 2020. In more rural suburban markets, an additional 20,000 square feet will be added by 2021. Over 200,000 square feet of state offices were relocated from the W. Tennessee corridor to the Centre of Tallahassee. The office parks in which these tenants left will likely be redeveloped and repositioned with new ownership in the next three to five years, as they are obsolete office space with little interest from prospective tenants.

6.1% 83,980 SF Vacancy Under Construction in Tallahassee Office Market Tallahassee Office Market

Economic Growth As the state capital, Tallahassee maintains a healthy and stable economy with significant footprints in the Government Services, Healthcare, Financial Services, and Hospitality sectors. Additionally, Tallahassee is home to two major universities, Florida State University and Florida A&M University, making Education a major demand driver for the region.

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 6 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 01 EXECUTIVE SUMMARY LOCATION

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 7 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 2 PROPERTY OVERVIEW 02 TALCOR.COM 02 PROPERTY OVERVIEW PHYSICAL CONDITON

The Property has been exceptionally well-maintained over the years with over $1.7 million in capital improvements made in recent years. Bathrooms on 2nd and 3rd floors completed in the last 12 months. Several HVAC units have been replaced in the last 5 years as well. All but one interior space has been updated in the last 24 months.

UPGRADES THROUGHOUT THE BUILDING

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 9 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY OVERVIEW SITE PLAN

3.20 AC

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 10 10 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 02 PROPERTY SUMMARY LOCAL MAP N

THE ATRIUM

Florida State Capitol

Florida State University FL A&M University

© 2019 Google Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 11 11 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 1 TALCOR.COM EXECUTIVE SUMMARY 02 RETAIL MAP

THE ATRIUM

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 12 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 3 FINANCIAL ANALYSIS 03 TALCOR.COM 03 VALUATION FINANCIAL OVERVIEW TALCOR.COM 03 VALUATION RENT ROLL

Notes: • DFS and State Fire Marshall only pay on Useable Square Feet. The total square footage is a blended number with useable and rentable square footage. • All leases are on a full-service basis.

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 15 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 03 VALUATION

EXPENSE SUMMARY Expenses Covered by Woodcrest Association Prorata Share Of Common Area Cost*: • Landscaping • Irrigation • Sidewalks • Roadways Taxes $62,434 • Sweeping Contr. • Street Lighting • Mgmt. Ofc. Exp. Insurance* $24,635 • Directory Sign Maint. *Not a complete list Association Fees** $141,793 Cost for Interior Maint. Based on Budget: • HVAC Filters • Janitorial Operating Expenses*** $193,295 • Trash Removal • Pest Control Gross Expenses $422,157 • Light Bulbs/ • Ballasts Other Operating Expenses *Prorata Share of 2020 Budgeted Insurance (Not Covered by Association) **2020 Budget for Association Estimated to be $2.34/SF ***Estimated Based on 2020 Budget • Building Specific (i.e.) Vendor Repairs (Repairs for HVAC, Plumbing, Electrical, Structure, Etc.) • Painting • Pressure Cleaning • Management Fees • Association Fees • Building Utilities • Other Building Specific Maintenance/Repairs

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 16 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 SECTION 4 MARKET OVERVIEW 04 TALCOR.COM 04 MARKET OVERVIEW OFFICE MARKET OVERVIEW The Property is located in the Suburban Tallahassee submarket, the largest Tallahassee Downtown Office Submarket submarket in terms of inventory and asset value, which consists of Downtown Market CBD Suburban All Classes* approximately 10.6 million square feet. This includes the large number of State of Florida owned and occupied buildings. As of May 2020, the Suburban Overall Vacancy: 12.2% 4.2% 6.1% Tallahassee office submarket had a vacancy rate of 4.2%, compared to the Rental Rate (PSF): $27.37 $19.41 $18.74 overall Tallahassee office market's current vacancy of 6.1%. The Suburban market rent range is between $12.00 and $18.00 PSF, according to market YTD Net Absorption (SF): 34,107 2,744 101,991 experts. Class A rates in the Downtown market range between $26.00 and $35.00 PSF. Total RBA (SF): 2,269,226 10,607,222 23,451,932

There are two Suburban parks where the State of Florida tenants have left Under Construction (SF): 63,980 20,000 83,980 and moved to the Centre of Tallahassee (a repositioned mall), Winewood and Source: Through Q2 2020 CoStar Koger Center. Both of these parks are currently undergoing repositioning as *This includes rural office product they provide out-of-date space with little interest from prospective tenants.

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 18 18 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 TALLAHASSEE FLORIDA Tallahassee is the capital of Florida and the third most populous state in the nation. Withapopulationof385,000people,theTallahassee metropolitan areaboasts a diverse economy supported by a business-friendly climate. Tallahassee MSA has the fastest 3.3% growing economy per capita for any Florida city. Education is a significant driver in UNEMPLOYMENT the local economy. The city is a prominent college town with a student population of over 70,000 attending Florida State University, Florida A&M University, and Tallahassee Community College.

The government holds a central place in the Tallahassee economy, with the State of Florida and Florida State University being the city’s two largest employers. As Florida’s 2.1% ANNUAL JOBGROWTH state capital, Tallahassee enjoys a stable economy and a comparatively low THROUGH DECEMBER 2018 unemployment rate. The community benefits not only from the thousands of jobs the state government creates, but the annual three-month legislative session, supporting industries, national attention and an economic stability that keeps consumer dollars moving through all seasons. Largest Employers – Tallahassee MSA 96.6% COST OF LIVING INDEX Company Employees State of Florida 19,442 Florida State University 14,378 Leon County School Board 5,383 Tallahassee Memorial HealthCare 4,583 City of Tallahassee 2,811 Publix 2,200 Tallahassee Community College 1,518 $13.2 BILLION GDPUP Florida A&M University 1,767 3.1% YEAR-OVER-YEAR Leon County 1,712 Capital Regional Medical Center 1,051

Source: The Tallahassee Chamber of Commerce Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 19 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 Tallahassee Accolades

NUMBER 1 –––––––– Most Educated Cityin FL, 2018 Wallethub.com NUMBER ––––––––2 Fastest Growing Economy in FL, 2018 FloridaTrend Magazine ––––––––TOP 100 Places to Live in the Nation, 2018 Livability.com

TOP ––––––––10 Metro City for Startup TOP 50 Growth, 2018 –––––––– Five Thirty Eight City for Entrepreneurs in the Nation, 2018 Entrepreneur Magazine

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 20 20 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 MARKET OVERVIEW GOVERNMENT Tallahassee, as the state capital of Florida, is heavily influenced by the presence of the government and related businesses. The two-month legislative session from March to April is an economic driver for the city. The influx of lawmakers, lobbyists and visitors is a boost for restaurants, hotels and rental property owners.

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 21 21 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 MARKET OVERVIEW EDUCATION Tallahassee is home to two major universities, Florida State University and Florida A&M University.

Florida State University Florida A&M University 32,812 9,614 students students 16 12 schools and colleges schools and colleges 26th 180th Best public university in the UnitedStates, Best Education Graduate Schools, U.S. News and World Report2019 U.S. News and World Report2019

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 22 22 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 MARKET OVERVIEW LIFESTYLE Tallahassee is home to a variety of vibrant entertainment venues, festivals, athletic events, and museums that draw visitors to Tallahassee every year.

Railroad Square ArtPark Museums Sports The Railroad Square Art Park is an arts, culture, The Museum of Fine Arts at Florida State Tallahassee is home to one of the most and entertainment district. The Park features University, the Tallahassee Museum, the competitive collegiate athletics programs in the metal art sculptures and a variety of stores Mission San Luis de Apalachee, and the nation, the Florida State Seminoles. The program selling artwork and collectibles. Railroad Tallahassee Automobile Museum. ranked the 13th highest revenue-generating Square is known for its locally-owned shops collegiate athletics program in 2017, boasting and alternative art scene. $144 million of total revenue.

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 23 23 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 MARKET OVERVIEW TRANSPORTATION Commercial air travel is supported by Tallahassee International Airport (TLH), a city-owned airport located five miles southwest of downtown Tallahassee. Tallahassee International Airport Leading cargo handler in the Panhandle area of Florida 66,869 Aircraft operations, averaging 183 Per day

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 24 24 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 TALCOR.COM 04 FROM SUBJEECT PROPERTY DEMOGRAPHICS 1 Mile 3 Miles 5 Miles Population Population of 2020 9,051 82,274 175,007 2025 Projected 9,353 84,419 180,013 Annual Growth 2020-2025 3.34% 2.61% 2.86% Households 82,274 2020 4,171 33,871 73,147 HH Growth 2020-2025 3.31% 2.87% 3.03% Within a three-mile radius Average Household Income 2020 $49,510 $40,206 $41,129 Of The Atrium Source:CoStar

1-Mile

3-Miles

5-Miles

Jimmy Nystrom Kat Butler Commercial Real Estate Advisor Commercial Real Estate Advisor [email protected] [email protected] Office +1 850 224 2300 Office +1 850 224 2300 25 25 TALCOR.COM Cell +1 850 570 5837 Cell +1 615 428 7909 ASSET CONTACTS Jimmy Nystrom Kat Butler DIRECTOR COMMERCIAL BROKER NAI TALCOR NAI TALCOR 850.224.2300 850.224.2300 [email protected] [email protected]