5656 WEST JOHN CANNON DRIVE, SALT LAKE CITY, UTAH 84116 INDUSTRIAL INVESTMENT OPPORTUNITY | CLASS A FACILITY | 457,320 SQUARE FEET | 100% LEASED May 2021 OFFERING MEMORANDUM Newmark (the “Agent”) has been engaged as the exclusive sales representative for the sale of 5656 West John Cannon Drive (the ”Property”) by ‘Ownership’ (the “Seller”). This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (May 2021) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property 5656 WEST JOHN CANNON DRIVE, SALT LAKE CITY, UTAH 84116 will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or INSTITUTIONAL INVESTMENT CONTACTS offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Kyle Roberts, CCIM, SIOR Luke Burbank Seller reserves the right to change the timing and procedures for the Offering Executive Managing Director Executive Managing Director process at any time in Seller’s sole t 801 578 5525 t 801.578.5522 discretion. Seller shall have no legal [email protected] [email protected] commitment or obligations to any party reviewing this Memorandum, UT Lic. # 5474336-SA00 UT Lic. # 6922585-SA00 or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Bret Hardy Jim Linn Property has been fully executed Executive Managing Director Executive Managing Director and delivered by Seller and the Purchaser thereunder. t 213-804-7815 t 213-248-3900 This Memorandum and the contents, [email protected] [email protected] except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting Andrew Briner Kevin Shannon this Memorandum, you agree that you will hold and treat it in the strictest Executive Managing Director Co-Head, U.S. Capital Markets confidence, that you will not forward, t 925-708-8316 t 310-491-2005 photocopy or duplicate it, that you will not disclose this Memorandum [email protected] [email protected] or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to DEBT & STRUCTURED FINANCE make a proposal and from whom you have obtained an agreement David Milestone Brett Green of confidentiality) without the prior Vice Chairman Senior Managing Director written authorization of Seller or Agent, and that you will not use this t 310-491-2015 t 310-491-2009 Memorandum or any of the contents [email protected] [email protected] in any fashion or manner detrimental to the interest of Seller or Agent. Table of Contents EXECUTIVE SUMMARY 01 PROPERTY PROFILE 02 TENANT SUMMARY 03 AREA OVERVIEW 04 MARKET HIGHLIGHTS 05 INVESTMENT ANALYSIS 06 01EXECUTIVE SUMMARY The Offering Newmark is pleased to present the unique opportunity to acquire 5656 West John Cannon Drive (“XR1”, “The Property” or “Project”), a recently constructed, multi- tenant, Class A distributuion facility strategically located in the Airport submarket of Salt Lake City, UT. Built in 2019, the building totals 457,320 square feet and is situated on 30.57 acres with immediate access to I-80, I-15, and Salt Lake International Airport. The Property is equipped with modern industrial features including 36’ clear heights and offers cross dock loading capabilities with ample parking for trailers and automobiles. XR1 is 100% leased to two national tenants with 5.1 years of average remaining lease term and no tenant rollover until April 2025. Moreover, XR1 will allow an astute investor to accretively finance the acquisition for outsized risk-adjusted returns. 6 Executive Summary Executive Summary 7 Investment Highlights CORE ASSET FUNCTIONALITY • XR1 exemplifies the highest-quality industrial product in the Salt Lake City market • State-of-the-art industrial design with high functionality and future divisibility • Modern cross-dock industrial features, excess trailer parking and 2.1% high-finish office space STRATEGIC LOGISTICS LOCATION • Salt Lake City has been deemed the “Crossroads of the West” • 19% of the nation’s population is within a twelve hour drive-time • Significant corporateoccupiers in the immediate vicinity validate this location as logistically advantaged and highly desirable ROBUST SALT LAKE CITY MARKET FUNDAMENTALS • The direct vacancy rate has remained steady at an impressive 3.8% • 792,000 square feet of positive net absorption in Q1 2021 - second best Q1 performance in Salt Lake City history • 13% rent growth in the last 12 months 8 Executive Summary DURABLE INCOME FROM NATIONAL CREDIT TENANTS • 5.1 years of weighted average lease term remaining • No tenant rollover until April 2025 • Two established tenants with national footprints • SALT LAKE CITY - PRO-BUSINESS ENVIRONMENT INVESTMENT SNAPSHOT • Ranked #2 Best Economy by U.S. News & World Report in 2020 and #3 Best State for Business by Forbes 457,320 SF 36’ TOTAL BUILDING AREA CLEAR HEIGHT • Unemployment rate of 3.1% (5.5% below the national average) • Low, flat-rate income and corporate tax of below 5% 30.57 ACRES 5.1 YEARS TOTAL LAND AREA WALT 2019 $0.48 YEAR BUILT CURRENT IN-PLACE RENT (NNN) 100% $2,660,086 OCCUPANCY YEAR 1 NET OPERATING INCOME 9,795 (2.1%) OFFICE SQUARE FEET Executive Summary 9 High-Image Core Building Profile STATE-OF-THE-ART DESIGN AND FEATURES • Built in 2019 - Instituionally owned and operated since inception • Cross Dock Loading Configuration • 83 Dock High Doors - 1 per 5,500 SF • 36’ Minimum Clear Height • 9,795 (2.1%) office finish with no mezzanine space • 58 On-Site Trailer Parking Stalls • ESFR Fire Suppression System 10 Executive Summary 100% Leased to Two National Tenants XR1 provides investors with durable and predictable income from two committed tenants with no rollover until April 2025. Suite 100 Size 353,720 % of Property 77.3% Current Base Rent $0.47 NNN Lease Expiration 12/31/2026 WALT 5.5 Years Suite 500 Size 103,600 % of Property 22.7% Current Base Rent $0.54 NNN Lease Expiration 4/30/2025 WALT 3.8 Years XR1’s rent roll is comprised of two tenants, each possessing a national footprint and proven business model. Investors have an excellent opportunity to generate stable cash flow from a newly constructed, low-touch property, fully leased on a Triple-Net basis. Executive Summary 11 STRATEGIC SALT LAKE CITY AIRPORT MARKET LOCATION LOCAL, REGIONAL AND NATIONAL CONNECTIVITY XR1 is proximate to the region’s major transportation infrastructure, providing direct access and serviceability to Greater Salt Lake City and neighboring regions. I-80 4 Minutes Salt Lake International Airport 8 Minutes State Road 201 8 Minutes I-15 12 Minutes The Property immediately borders the Utah Inland Port area, which sits at the intersection of two interstate freeways, major national railways, and an international airport. This connectivity bolsters the area’s serviceability and generates demand for warheouse and distribution centers like XR1. STRONG REGIONAL DEMOGRAPHICS Salt Lake County offers a deep, skilled labor pool and favorable business environment for companies of all sizes. Current Population Estimate 1.16 M Median Household Income $74,865 Median Home Value $305,700 Ten-Year Population Growth 12.70% 12 Executive Summary UNRIVALED ACCESSIBILITY Utah is known as the “Crossroads of the West” for its excellent connectivity to the entire nation. Salt Lake City, specifically, benefits from a favorable geographic location that provides easy access to primary commercial hubs across the country. This connectivity has helped established the region as a global marketplace for its ability to facilitate an efficient flow of goods through its vast transportation networks. All major metros in the Western Region, and many major metros in the Mid-West, are within a 24 hour drive time. SEATTLE, WA Ground Distance: 840 Miles Ground Time: 12.5 Hours BILLINGS, MT BISMARCK, ND (! Ground Distance: 567 Miles Ground Distance: 922 Miles PORTLAND, OR Ground Time: 8.5 Hours Ground Time: 14 Hours NATIONAL Ground Distance: 766 Miles Ground Time: 11.5 Hours (! BOISE, ID DRIVE TIMES Ground Distance: 339 Miles Ground Time: 5 Hours ¨§94 (! (! RENO, NV Ground Distance: 516 Miles (! POCATELLO, ID Ground Time: 7 Hours Ground Distance: 164 Miles ¨§84 Ground Time: 2.5 Hours SAN FRANCISCO, CA (! Ground Distance: 735 Miles CHEYENNE, WY §5 SALT LAKE CITY, UT Ground Time: 11 Hours ¨ ¨§80 Ground Distance: 440 Miles LINCOLN, NE (! \! Ground Time: 6.5 Hours Ground Distance: 879 Miles (! Ground Time: 13 Hours SAN JOSE, CA (! ¨§80 (! Ground Distance: 768 Miles LAS VEGAS, NV ¨§15 (! 70 (! Ground Time: 11 Hours Ground Distance: 420 Miles ¨§ Ground Time: 6 Hours (! LOS ANGELES, CA DENVER, CO KANSAS CITY, MO Ground Distance: 688 Miles Ground Distance: 1,073 Miles ! Ground Distance: 521 Miles Ground Time: 10 Hours ( Ground Time: 16 Hours Ground Time: 8 Hours SAN DIEGO, CA (! Ground Distance: 750 Miles ¨§40 (! (! Ground Time: 11 Hours (! (! OKLAHOMA CITY, OK Ground Distance: 1,187 Miles Ground Time: 17 Hours Drive Time Population ¨§10 ALBUQUERQUE, NM (! 4.5 Hours 3,788,586 PHOENIX, AZ Ground Distance: 598 Miles DALLAS, TX Ground Distance: 663 Miles Ground Time: 10 Hours Ground Distance: 1,243 Miles 9 Hours 14,336,518 Ground Time: 10 Hours ¨§35 Ground Time: 19.5 Hours 12 Hours 61,318,341 (! (! 15 Hours 80,421,393 HOUSTON, TX 18 Hours 92,197,900 SAN ANTONIO, TX Ground Distance: 1,477 Miles Ground Distance: 1,303 Miles Ground Time: 23 Hours 21 Hours 139,632,755 Ground Time: 20.5 Hours 24 Hours 183,375,089 Drive times are based on speed limits and an average traffic flow.