LINCOLN 495 8420 Westphalia Road, Upper Marlboro, MD

EXECUTIVE SUMMARY EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

• Core Investment Opportunity: 100% leased with no roll until 2017; weighted average remaining term of over seven years.

• Superior Location: I-95/I-495 “the Beltway” visibility, with 32% of the national population within a one day drive.

• Strong Market Fundamentals: Over 177,000 square feet of net absorption in 2015 and 2016; Submarket vacancy at 9.1%.

• Strong Diverse Tenant Mix: Critically important government tenant and two expanding private sector tenants.

• Modern Efficient Design: 28’ clear ceiling heights, ESFR, 30 docks and two drive in.

• Institutionally Built and Owned: Highest quality construction.

• Offered Free and Clear of Existing Debt.

HFF, L.P., as exclusive representative for the Owner, is pleased to present this offering for the sale of 8420 Westphalia Road, known as Lincoln 495 (the “Property”), a Class A industrial building containing approximately 153,700 square feet. Lincoln 495 is located at the epicenter of the Industrial Corridor and has immediate proximity to I-95/I-495 known as the Capital Beltway “the Beltway”, Joint Base Andrews, National Harbor and Washington, DC. Lincoln 495 is part of the Westphalia Sector Plan, the largest planned development in Prince George’s County since National Harbor, which will guarantee continued long term commercial and residential growth.

Lincoln 495 is currently 100% leased to three tenants: a publicly traded holding company, a government tenant and a portable moving business tenant. The building’s largest tenant, IEH Auto Parts LLC, is an affiliate of Icahn Enterprises L.P. (NASDAQ: IEP). IEH Auto Parts LLC occupies 77,285 SF (50.3%) through December 2023. The government tenant occupies 47,132 SF (30.7%) through February 2028 and 1-800-Pack-Rat, LLC occupies 29,283 SF (19.0%) through October 2017. The Property offers one of the finest examples of Class A industrial space in Prince George’s County. The Building enjoys close proximity to many restaurants and shopping options in Westphalia and Upper Marlboro. There is also ample on-site surface parking at a ratio of 1.2 parking spaces per 1,000 SF.

2 LINCOLN 495

ADDRESS RENTABLE AREA STORIES 8420 Westphalia Road 153,700 Square Feet 1

PARKING RATIO SITE AREA CLEAR HEIGHT 1.2 / 1,000 RSF 13.07 Acres 28'

% LEASED # OF TENANTS YEAR BUILT 100.0% 3 2009

MAJOR TENANTS

IEH Auto Parts LLC Undisclosed Government Tenant 1-800-Pack-Rat, LLC

77,285 SF (50.3%) 47,132 SF (30.7%) 29,283 SF (19.0%)

3 EXECUTIVE SUMMARY

DIVERSE CASH FLOW – CORE OFFERING

The Property benefits from having expanding private sector tenants and a secure Federal tenant with staggered expiration dates. The Property is currently 100% leased. New ownership will benefit from long term stable net operating income with no rollover until October 2017. The Property’s rent roll is a perfectly staggered ladder with approximately five years between each lease expiration.

Location Overview • Lincoln 495 is located at the intersection of the Beltway (Route 495/95) and Pennsylvania Avenue, creating advantageous access to all points north, south, east and west and surrounded on all sides by activity. Prominent Washington, DC Location • West: In direct proximity to, and part of, the Westphalia Sector Plan, one of the most aggressive • Located four miles outside Washington, DC limits inside the Capital Beltway. urban-suburban developments in Prince George’s • Washington, DC industrial Property is being redeveloped, giving tenants fewer choices in the District and making close County. in industrial buildings more valuable.

• South: Located one mile from Joint Base Andrews, • Washington, DC is one of the most resilient and economically stable markets in the with a combined where recent developments include a U.S. Air population of approximately 9 million – the 3rd largest Metro economy in the United States; home to the Country’s most National Guard Readiness Center expansion educated and wealthiest employment base. (170,000 SF) and BRAC administration building • Prince George’s County, , is emerging as a hotspot for industrial real estate investment with development (380,000 SF). projects across all asset classes ushering new capital and investor energy into the County. • North: FedEx Field is located just six miles away, a • The Prince George’s County economy is strengthened by the recent growth and development of several key economic direct trip on the Beltway. engines including: Joint Base Andrews, National Harbor, Tanger Outlet Center, NASA Goddard, UMUC Academic • East: National Harbor, comprised of 40 shops, Center at Largo, arrival of MGM Casino (November 2016) and the Prince George’s County Hospital & Medical 30 restaurants, six hotels, four large residential Center (2020). Each of these projects is on track to bring thousands of new jobs, ancillary real estate development developments and the soon to be opened MGM and further community investment. Casino, is ten miles from the Property, a direct trip • The Property is located between Maryland’s two largest employers, the University of Maryland and Joint Base Andrews. on the Beltway. Each of these economic drivers has experienced substantial growth over the last decade and created millions of square feet of auxiliary demand in the surrounding area.

4 695

70

695 140 83 CCBC 355 139 32 125 Essex 26 95 1 Woodlawn 144 Cemetery

99

40 1 85 94 70 151 695

270 144 40 895 95

40 Loudon Park 395 28 Cemetery

97 29 28 Univ of Maryland 695 County Dundalk 27 Marine 95 650 Terminal 895 124 100 108 108 32 355 195 895 Sparrows Point Curtis Bay Industrial Complex 28 895 Triadelphia 1 Reservoir 695 175 Curtis Bay 710 GSA Depot 270 Chesapeake Bay 108 Baltimore 117 Johns Hopkins 32 650 Washington Univ Applied International Airport 107 Physics Maryland 173 29 Wholesale Food Center 97 Fort Meade 100 28

107 177 Rocky Gorge 28 Reservoir 270 28 LINCOLN 495

182

1 95 586 2 270

Naval Surface 97 185 193 Weapons Center 197 190

97 495 Annapolis 178

650 390 28 1 University of NASA - Goddard Space 3 7 301 Maryland - Flight Center College Park 193 193 450 185 1

704 50 295 301 267

495 208 50 50 7100 WASHINGTON, DC 2 Washington 267 Regional Medical Center (2020) Dulles 214 Intl. Airport 214 FBI 50 424 Smithsonian FedExField 214 468 295 123 U.S. Capitol National 66 202 395 Reconnaissance Office 27 301 Pentagon 495 28 29 50 1 5 2 7 66 29 Reagan 218 National 7100 Airport 236 408

VIRGINIA 395 95 Joint Base 408 495 495 Andrews 259 Tanger MGM Casino (2016) Outlets

National Harbor MARYLAND 28

210 4 National Geospatial 1 2 234 Intelligence Agency 5 5 123 Ft. Belvoir Military Reservation

R E V R I 301 C 95 A M O T O P

228 234 4 1 381 2

210 5

Naval Surface 0 2 MI Warfare Center Quantico Marine 301 488 Corps Base 0 5 KM

US Naval 225 Ordinance Station 425

Lunga 95 Reservior

231 EXECUTIVE SUMMARY

Westphalia Sector Plan - Mixed-Use, Retail, Office and Industrial Improving Market Fundamentals, Originally created in 2007, the Westphalia Sector Plan envisions 6,000 acres with a high- Land Constrained Market Poised for Growth density urban town center surrounded by a balance of residential, commercial and industrial • Prince George’s County recorded an average of 253,528 square feet of net absorption uses. Development commenced in 2012 and once completed, The Westphalia Sector Plan annually over the last ten years, making it one of the most competitive industrial real estate will create a second well-balanced, unified town center community with a pedestrian focus in markets in the Washington, DC Metro.

Prince George’s County that will rival National Harbor. The Westphalia Sector Plan calls for • Average asking rents have increased 7 of the last 8 quarters; a total increase of $0.46 a series of ten new residential developments ranging from 1,000 to over 3,500 units each, per square foot, or 7.2%. creating a total of 14,000-15,300 new residential units. The overall development calls for • Prince George’s County vacancy has declined to 7.4% and market fundamentals are eight new schools, 750,000 square feet of retail space, 4,500,000 square feet of office continuing to improve. space, a library and new police, fire & rescue and health facilities. • There is currently 824,990 square feet of new industrial property under construction in Market Overview Prince George’s County, signaling strong industrial demand and strengthened investor optimism for local warehouse property. Currently, new deals are being completed over The Pennsylvania Avenue Corridor submarket continued to show strength in 2015. Leasing $8.00 per square foot. velocity was strong with over 177,000 square feet of net absorption in 2015 and the first half of 2016, some of the strongest absorption in the last ten years. Vacancy in the submarket • Land currently zoned for industrial is in short supply and becoming increasingly cost continues to improve and has dropped to 9.1% from 16.7% in 2009. prohibitive for building new warehouses. • The Capital Heights submarket has continually been one of Prince George’s County’s most stable and best performing markets given the proximity to Washington, DC.

6 LINCOLN 495

Ronald Reagan Washington Alexandria, VA National Airport Washington, DC

BRANCH AVENUE METRO STATION National Harbor 10 Miles

VE A A NI VA YL NS EN Joint Base Andrews P 0.5 Miles

CAPI TAL BE LTWAY 495 95

Drive Time: Access to 495/95 - 1 min FedEx Field - 9 min National Harbor - 13 min Anacostia River - 15 min Westphalia Town Center Old Town Alexandria - 15 min 1.0 Mile Baltimore Washington Airport - 30 min Regan National Airport - 30 min Washington Dulles International Airport - 45 min

7 Financing: BRUCE E. STRASBURG PATRICK G. GLADING CRAIG S. CHILDS CARY P. ABOD Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Senior Managing Director 202.777.2309 (o) 202.777.2315 (o) Managing Director 202.533.2501 (o) [email protected] [email protected] 202.533.2513 [email protected] [email protected]

Holliday Fenoglio Fowler, L.P. (“HFF”) a Maryland licensed real estate broker. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property 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 representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to 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 diligence 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. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

1775 Pennsylvania Ave, NW, 5th Floor Washington, DC 20006 hfflp.com