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1 Executive Summary 3 About Alliance 4 Location 6 The Campus 8 Our Vision 10 Properties 12 Plans & Images 14 Tax Advantages 20 Contact 22

2Historic Image EXECUTIVE SUMMARY ALLIANCE HSP AT THE ARSENAL

Alliance | HSP has recently acquired six buildings within the historic Frankford Arsenal. The properties are located at 2275 Bridge Street in the Bridesburg neighborhood of , approximately 7.5 miles northeast of Philadelphia’s Center City. The properties total 209,419 square feet of industrial/flex space set among five mid-rise buildings (207,744 sf) and one single-story building (1,675 sf). Alliance intends to convert or upgrade these properties into creative office and flex/showroom space. There are over 210 parking spaces exclusively dedicated to the Alliance Arsenal assets, and the property is well located to both public buses, a regional rail line, future area bike trails and major roads (I-95 exits directly at the gate of The Arsenal). We hope you will join us as we revitalize, refortify and reimagine this unique and historic gem.

AT A GLANCE

2275 BRIDGE STREET OVER 210 PARKING SPACES PHILADELPHIA, PA 19137 SEPTA BUS/REGIONAL RAIL 209,419 SF I-95 BRIDGE STREET EXIT

3 ABOUT US OUR MISSION

Alliance Partners HSP, LLC (“Alliance”) is a private real estate investmetn and operating company focused on opportunistic and core plus investments in commercial properties located in the Eastern and Central U.S. Alliance is the East Coast operating platform of The Shidler Group, one of the nation’s foremost commercial real estate organizations. The Alliance team combines extensive capital markets experience, real estate operating/development capabilities, and the financial agility and resources of our principals to produce superior risk-adjusted returns on our investments. | VISIT WWW. ALLIANCEHSP.COM

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ABOUT US OUR SUCCESSES

RECENT SUCCESS: SONO In September 2014, Alliance acquired the former Destination Maternity warehouse on the edge of Philadelphia’s thriving Northern Liberties neighborhood. Alliance focused on a mixed-use leasing plan for the site. Ultimately Yards Brewing Company chose to open their 70,000 sf flagship brewery and tap room at SONO in November of 2017 and Target will follow with a 50,000 sf small format store in July of 2018. The result is a transformative development that enlivens a formerly industrial stretch of Spring Garden Street.

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OVERVIEW LOCATION OVERVIEW THE ARSENAL LOCATION THE ARSENAL IS A HISTORIC LOCATION IS A HISTORIC MUNITIONS R&D

MUNITIONS R&D AND PRODUCTION Today, the Arsenal is being reimagined by Alliance HSP as dynamic showroom, creative office, CAMPUS IN urban manufacturing and specialty AND PRODUCTION Today, the Arsenal is being distribution space just 15 minutes reimagined by Alliance HSP as from Center City PHILADELPHIAdynamic showroom, creative office, CAMPUS IN urban manufacturing and specialty distribution space just 15 minutes PHILADELPHIA from Center City Regional Rail

Delaware River

City Hall

Market-Frankford Line

Regional Rail Same distance from City Delaware RiverHall as the Navy Yard

6 City Hall ARSENAL OVERVIEW Market-Frankford Line

Same distance from City Hall as the Navy Yard

ARSENAL OVERVIEW : ”

LOCATION AREA HIGHLIGHTS

ACCESS MOMENTUM AMENITIES I-95 The major north-south highway Shoppes at Wissinoming Bridesburg Riverfront Park A on the east coast is less than 0.2 miles A $30M, 110,000 SF new retail design firm was hired in 2017 to head up from the Property. development under construction 0.3 the final 15 month design phase for this miles from the Property. It will feature 10-acre park. It will include a great lawn, a grocery store, a WaWa convenience a stage, a meadow and big sweeping Bridesburg Train Station store, quick-service restaurants, and a waterfront views and connections to Within 0.3 miles of the Property, the gym. bike trails to the North and South. station is served by the Trenton Line, which connects the Property to Center City Philadelphia and northeastern New Development Entitlements North Delaware Bike Trail The suburbs, as well as to Trenton, New Delaware Ave Extension (due by 2020) I-95 Access Ramp underway for $43M state-of-the- Jersey where an additional connection art headquarters and refrigerated will ultimately connect the existing K&T can be made into NYC. distribution hub. Trail and Port Richmond Trails to form a continuous 11 mile recreational trail that stretches down towards Center The Property is also served by Bus Dietz & Watson The national City. two (2) bus stations that connect it headquarters of Dietz and Watson, to “extended Center City” via the producer of premium meats and artisan Frankford Transportation Center. The cheeses, was recently constructed. Frankford Transportation center is served by the City’s subway system. Residential Boom Bridesburg saw the greatest increase in The Property is near Bridges home sales of all Philadelphia equidistant to two major area bridges neighborhoods in 2017 according providing access to : the to The Philadelphia Inquirer. Tacony Palmyra Bridge (1.23 mi) and the Betsy Ross Bridge (1.3 mi).

7 THE ARSENAL CAMPUS AERIAL

WAWA, SHOPRITE, AND BLINK FITNESS IN NEW 110,000 SF SHOPPING CENTER NORTH

SEPTA BRIDESBURG STATION (TRENTON LINE) CENTER CITY 6.3 MILES TACONY - PALMYRA BRIDGE - 1.2 MILES

DIETZ & WATSON

GATED TRUCK ENTRANCE

E TACONY ST RIDG SS B RO TSY BE S - ILE PIDC WAREHOUSE 5 M

1. DEVELOPMENT BRIDGE ST BRIDGE GATED CAR ENTRANCE

CAMPUS ENTRANCE

GATED VISITOR ENTRANCE

P

ALLIANCE HSP BUILDINGS

8 THE ARSENAL A UNIQUE HISTORIC CAMPUS

Opened in 1816 on 20 acres of land purchased departments, buildings and grounds, dining As the U.S. military-industrial complex grew, by President , Frankford halls, as well as everything from maintenance the Arsenal could no longer compete as a Arsenal was the center of U.S. military small- and motor pool, to a complete medical facility. manufacturing entity. More and more of arms design and development its programs were farmed out to industry. until its closure in 1977. From the beginning, The U.S. Army’s The Arsenal’s functions were eventually Frankford Arsenal was involved in the design transferred to the in New By the end of the Civil War, the Arsenal and manufacture of munitions. As military Jersey. employed over 1,000 workers. It served as weapons became more complex, the Arsenal’s a major site for the storage of weapons and role expanded. From within the world famous During the presidential campaign of 1976, pieces, a depot for the repair of Pitman-Dunn Labs located at the Arsenal, vice presidential candidate Walter Mondale artillery, and equipment, scientists and engineers designed and stood in front of the Frankford Arsenal and repair and cleaning of small arms and developed everything from basic materials to promised that it would remain open. The harnesses, the manufacture of LASER guided ballistics, all produced entirely Carter/Mondale ticket won the election but percussion powder and Minié balls, and the in-house from the concept phase to the the promise was not fulfilled; the arsenal testing of new forms of and time fielding of the equipment. New portable closed for U.S. government use in 1977. fuses. During the , and imbedded computer applications saw the Arsenal provided tens of thousands of the development of the LASER rangefinder, The northernmost part of the site was and vast supplies of ammunition. fielded artillery computational machines assumed by the PA Fish and Boat Commission Among the innovations extensively tested (FADAC) and radar systems. During the for use as a boat ramp access and fishing spot at the Arsenal was the Gatling Gun, an early Vietnam War, experiments in caseless on the and the southernmost form of that saw extensive ammunition, far infrared low-light-level part is currently being used by light-industrial service in the Indian Wars. technologies, and advanced LASER and office users. applications were under development. During World War I and II, the arsenal was In November 2017, Alliance Partners HSP again busy with supplying the war efforts, The labs were supported by a full range of purchased six buildings within the Frankford providing a major source of jobs and income first-class drafting and machine shops Arsenal with the intention of revitalizing, for the region. At times, employment reached scattered throughout the many buildings of refortifying and reimagining them into a 22,000. the campus. Everything from milling, to one-of-a-kind work environment for today’s electro-plating, to multi-layer printed circuit innovators on this unique historic campus. The Frankford Arsenal was an entity unto board fabrication could be accomplished by itself. It was a city within a city, containing “The Shops.” The Optical Lens Design Facility everything from its own police and fire was one of the finest in the country. 9 OUR VISION THE FUTURE AT THE ARSENAL

Open Plan/Creative Office

10 Urban Manufacturing Specialty Distribution OUR VISION EXTERIOR UPGRADES

DESIGN PRESENTATION 340 NORTH 12TH STREET 18 JULY 2018 SUITE 421 Arsenal Business Center PHILADELPHIA, PA 19107 Philadelphia, PA 11 THE PROPERTIES BUILDINGS 101, 201, 202, 208, 209, 210

BUILDING 101 1,675 SF BUILDING 201 39,768 SF BUILDING 202 52,182 SF

BUILDING 208 38,622 SF BUILDING 209 38,622 SF BUILDING 210 38,520 SF

12 THE PROPERTIES INTERIOR VIEW

13 FLOOR PLANS

TENANT AREA 12,759 SF

TENANT AREA 6,965 SF

TENANT AREA 6,965 SF

TENANT AREA 13,905 SF

TENANT AREA 13,905 SF

TENANT AREA 5,300 SF

TENANT AREA 5,300 SF

LEVELLEVEL 1 1

14 FLOOR PLANS

TENANT AREA 13,685 SF

TENANT AREA 4,956 SF

TENANT AREA 5,116 SF

COMMON SPACE

TENANT AREA 13,905 SF

TENANT AREA 13,905 SF

TENANT AREA 5,572 SF

TENANT AREA 6,472 SF

LEVELLEVEL 2

15 FLOOR PLANS

TENANT AREA 13,683 SF

TENANT AREA 11,452 SF

TENANT AREA 4,980 SF

TENANT AREA 13,905 SF

COMMON SPACE TENANT AREA 13,905 SF

TENANT AREA 6,472 SF

LEVELLEVEL 33

16 FLOOR PLANS

TENANT AREA 13,905 SF

LEVELLEVEL 4

17 FLOOR PLANS

73’-5”

WC MECH

BUILDING 101 1,675 SF 22’-10”

PLAN VIEW BUILDING 101

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EAST ELEVATION NORTH ELEVATION

WEST ELEVATION SOUTH ELEVATION PARKING

Over 210 Parking Spaces = PARKING 210

LOADING 209

LOADING 208

202

LOADING 201

101

19 KEYSTONE OPPORTUNITY EXPANSION ZONE

Through credits, waivers and broad-based tax abatements, total taxes on economic activity in zones are significantly reduced. These benefits affect the following taxes:

STATE TAXES • Corporate Net Income tax • Mutual Thrift Institution tax • Personal Income tax • Bank and Trust Company • Sales and Use tax (purchases Shares tax consumed and used by the • Insurance Premiums tax qualified business in the zone)

LOCAL TAXES • Earned Income/Net Profits tax • Sales and Use tax (county/ • Business Gross Receipts, city; purchases exclusively Business Occupancy, used and consumed by the Business Privilege and qualified business in the zone) Mercantile tax • Property tax

20 FAQ KEYSTONE OPPORTUNITY EXPANSION ZONE I plan to lease space in a KOEZ? Am I eligible for benefits? How long does it take to get certified? Yes, assuming you are certified, you will be eligible for all tax Normally the process takes less than 60 days. However, benefits that apply to your operations. in the beginning of each year when all renewal applications come in, the process may take 90 days. Is there a lot of paperwork and bureaucratic red tape involved? No. This may well be the least bureaucratic program you will ever What is exempt from state and local Sales and Use tax? see. The application is simple. Purchases of taxable property or services, other than motor vehicles, by a qualified KOEZ business may be exempt from Does the Sales Tax waiver apply to services such as computer state and local Sales and Use Tax. These purchases must be maintenance or equipment repair contracts? used within a KOEZ location by a qualified business. These items Yes, if this work is done in the KOEZ for a KOEZ certified include everything from paper clips to racking and shelving used business use. in the operation of your business at the KOEZ site Since the taxes are abated or waived, do I have to file? Yes. You must continue to file all of your tax forms. See below for For more information, visit... how to take the KOEZ credits or abatements on various tax filings HTTPS://BUSINESS.PHILA.GOV/KOZ-FAQS/

WHAT'S THE CATCH? If you are presently a business and There is no catch. If you own property in the relocate to a KOEZ you must... KOEZ or locate your business in a KOEZ, you will • Increase employment by 20% in the first year;or pay little or no business taxes until 12/31/23. • Invest the equivalent of 10% of the previous year’s gross revenues in capital improvements to the KOEZ THE ONLY REQUIREMENTS ARE: Property; or • Enter into a lease agreement for the property within • You must be up-to-date in all of your a KOEZ for a term at least equivalent to the duration Township and County taxes and in compliance of the KOEZ property and with an aggregate payment with all State laws and regulations. under the lease at least equivalent to 5% of the gross revenues of that business in the immediately • You must file a KOEZ application annually. preceding calendar or fiscal year.

2121 For Leasing Information Please Contact...:

ELIZABETH MORROW INA SARGEN RICHARD GORODESKY, SIOR Vice President Senior Vice President Senior Vice President +1 215 928 7557 +1 610 557 0182 +1 215 928 7545 [email protected] [email protected] [email protected]

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