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park plaza hilton head, south carolina


Hilton Head, SC

Park Plaza

table of contents

831 East Morehead Street | Suite 650 Charlotte | NC |28202 704-379-1980 www.berkeleycap.com

property summary offering overview  3 aerial close up  4 site plan  5 retail competition map  6 retail competition key  7 aerial east  8 aerial west  9 economic summary projected operating statement  10 schedule of prospective cash flow  11 financial assumptions  12 aerial north  13 tenant summary rent roll  14 market overview  16 demographics / ca demographics 18 ca 19

contacts: rob carter 704.379.1982 carter@berkeleycap.com rad wyatt 704.714.2367 wyatt@berkeleycap.com

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Hilton Head, SC

Park Plaza

offering overview Name Address Market

Park Plaza 33 Office Park Rd. Hilton Head, South Carolina

Size Occupancy Year Delivered Parcel ID# Total Land Size

60,780 SF 100% 2000 / 2011 R552 014 000 0886 0000 +/- 7.54 Acres

Traffic Counts

US 278 - 23,900 AADT US 278 BUS - 39,400 AADT

key investment highlights • Attractive brick & mortar with a redevelopment of the center in 2011 • Fully stabilized center • Located in a very high demographic area • Barriers to entry • Supply constraint • Class “A” Anchor tenant • Infill location

Pro Forma NOI

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$422,882

• Top tier grocer in the marketplace


Hilton Head, SC

Park Plaza

aerial close up Office Park Dr.

Greenwood Dr.

parkplaza

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Hilton Head, SC

Park Plaza

site plan parkplaza no. 1 2 3 4 5

Greenwood Dr.

tenant

sf

Harris Teeter 52,000 Mellow Mushroom 5,215 Park Plaza Liquors 1,321 Nail Pro 923 Sweet Frog 1,321 Total % Occupied

60,780

100%

2

3 4 5

1

Office Park Rd

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Hilton Head, SC

Park Plaza

retail competition map Shelter Cove Mall Redevelopment Program • • • • •

tearing down much of the mall property designed as a walking village of shops and restaurants Kroger would be secondary anchor to Belk 285,000 sf of commercial space 220 residential units

Click here for a conceptual master plan of the redevelopment of the Mall at Shelter Cove.

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5 2 1 3

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Hilton Head, SC

Park Plaza

retail competition key

7

1

2

3

4

5

6

SHOPPING CENTER

Park Plaza

Island Crossing

Palmetto Crossroads

Circle Center

Coligny Plaza

Fresh Market Shoppes

Plaza at Shelter Cover

SF

60,780 SF

96,598 SF

40,910 SF

66,313 SF

123,000 SF

86,746

86,044

OCCUPANCY

100%

98%

25%

94%

98%

90%

100%

YEAR BUILT

2000

1984 / 1999

1990

1992 - 2000

1956

2004

1984

MAJOR TENANTS

Harris Teeter

Publix, Staples

Dark Food Lion

BI-LO, Wild Wing Cafe

Piggly Wiggly, Chicos

Fresh Market, Bone Fish Grill

Piggly Wiggly, TJ Maxx

RETAIL RENTS PSF

$6 - $23

$16 - $38

-

$15 - $20

$18 - $24

$16 - $20

$22 - $24

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Hilton Head, SC

Park Plaza

aerial east Atlantic Ocean

Shipyard Golf Club $335K - $1M Pope Avenue

parkplaza

Greenwood Dr.

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Park Plaza Cinemas Alligator Grill UPS Store


Hilton Head, SC

Park Plaza

aerial west

Dark Food Lion

Wexford Plantation & Wexford Golf Club $380K - $3.2M Palmetto Bay Rd. / US 278 23,900 AADT

Sea Pines Resort Home of Harbour Town Golf LInks

Sea Pines Country Club $300K - $8M

parkplaza Sea Pines Circle

Greenwood Dr. Park Plaza Cinemas Alligator Grill UPS Store

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Hilton Head, SC

Park Plaza

projected operating statement PRO FORMA For the Years Ending

Mar-2014

p ot e n t i a l g r o s s r e v e n u e

Base Rental Revenue Absorption & Turnover Vacancy Scheduled Base Rental Revenue

$470,447 470,447

expense reimbursement revenue

CAM

121,554

Insurance

26,741

Property Taxes

86,911

Total Reimbursement Revenue

235,206

Total Potential Gross Revenue

705,653

General Vacancy

(10,635)

Effective Gross Revenue

695,018

o p e r at i n g e x p e n s e s

CAM

121,560

Insurance

26,743

Property Taxes

86,915

Property Management (4% EGR)

27,801

Capital Reserves ($0.15 PSF)

9,117

Total Operating Expenses

272,136

Net Operating Income

$422,882

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Hilton Head, SC

Park Plaza

schedule of prospective cash flow Year 1 Mar-2014

Year 2 Mar-2015

Year 3 Mar-2016

Year 4 Mar-2017

Year 5 Mar-2018

Year 6 Mar-2019

Year 7 Mar-2020

Year 8 Mar-2021

Year 9 Mar-2022

Year 10 Mar-2023

$470,447

$475,368

$480,365

$485,438

$490,295

$495,512

$500,804

$506,187

$515,721

$521,312

-

-

-

-

-

-

-

-

(11,371)

-

470,447

475,368

480,365

485,438

490,295

495,512

500,804

506,187

504,350

521,312

CAM

121,554

125,200

128,957

132,826

136,811

140,915

145,142

149,495

153,034

158,600

Insurance

26,741

27,544

28,371

29,222

30,099

31,002

31,931

32,889

33,668

34,892

Property Taxes

86,911

89,519

92,204

94,969

97,819

100,754

103,777

106,888

109,418

113,400

Total Reimbursement Revenue

235,206

242,263

249,532

257,017

264,729

272,671

280,850

289,272

296,120

306,892

Total Potential Gross Revenue

705,653

717,631

729,897

742,455

755,024

768,183

781,654

795,459

800,470

828,204

General Vacancy

(10,635)

(10,932)

(11,234)

(11,542)

(11,840)

(12,159)

(12,482)

(12,812)

(1,889)

(13,696)

Effective Gross Revenue

695,018

706,699

718,663

730,913

743,184

756,024

769,172

782,647

798,581

814,508

CAM

121,560

125,207

128,963

132,832

136,817

140,921

145,149

149,503

153,989

158,608

Insurance

26,743

27,545

28,372

29,223

30,100

31,003

31,933

32,891

33,877

34,894

Property Taxes

86,915

89,523

92,209

94,975

97,824

100,759

103,782

106,895

110,102

113,405

Property Management

27,801

28,268

28,747

29,237

29,727

30,241

30,767

31,306

31,943

32,580

Capital Reserves

9,117

9,117

9,117

9,117

9,117

9,117

9,117

9,117

9,117

9,117

Total Operating Expenses

272,136

279,660

287,408

295,384

303,585

312,041

320,748

329,712

339,028

348,604

Net Operating Income

422,882

427,039

431,255

435,529

439,599

443,983

448,424

452,935

459,553

465,904

Tenant Improvements

-

-

-

-

-

-

-

-

3,554

-

Leasing Commissions

-

-

-

-

-

-

-

-

11,319

-

Total Leasing & Capital Costs

-

-

-

-

-

-

-

-

14,873

Cash Flow After Debt Service

$422,882

$427,039

$431,255

$435,529

$439,599

$443,983

$448,424

$452,935

$444,680

For the Years Ending p ot e n t i a l g r o s s r e v e n u e

Base Rental Revenue Absorption & Turnover Vacancy Scheduled Base Rental Revenue expense reimbursement revenue

o p e r at i n g e x p e n s e s

leasing

&

c a p i ta l c o s t s

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$465,904


Hilton Head, SC

Park Plaza

financial assumptions This section provides details on the general assumptions made in the 10-year financial analysis for the subject property. Berkeley Capital used Argus™ Version 15 to derive financials included in this package, and a copy of the Argus™ analysis may be sent upon request.

M ARKET LEASIN G ASS U M PTIONS

G ENERAL a n a ly s i s p e r i o d s ta r t :

April 1, 2013

a n a ly s i s p e r i o d e n d :

March 31,2023

term

10 years

property size

60,780 SF SF

GLA

Anchor

52,000

85.55%

Retail

8,780

14.45%

s pa c e d i s t r i b u t i o n

g e n e r a l i n f l at i o n

(per

3.00%

annum)

reimbursement method

Fiscal reimbursements using fiscal inflation

g e n e r a l vac a n c y lo s s

5.00%

o p e r at i n g e x p e n s e s o u r c e

2013 Budget

reimbursements

Varies by tenant

renewal probability

75%

m a r k e t r e n t [1]

Varies by tenant

rent growth

3.00% Annually

lease term

5 years (Inline)

expense recovery type

Varies by tenant

tenant improvements

New

$5.00

Renewal

$0.00

Speculative (Weighted Avg.)

$1.25

leasing commissions

New

5.00%

Renewal

2.50%

Speculative (Weighted Avg.)

3.13%

downtime

New

6 Months

Renewal

0 Months

Speculative (Weighted Avg.)

2 Months[2]

notes:

[1] The market rent represents estimated future values based on current and historical market conditions, recent lease transactions, location, construction, and age of the subject property. The market rental rates are utilized for all projected new leases and speculative lease rollovers. The market rental rates used in the cash flow projection vary and are dependant upon the specific tenant and individual leasing space. [2] The analysis assumes a weighted downtime of two months between speculative rollovers. This weighted average lag time is based on no downtime for lease renewals and six months downtime for new leases. The weighted average is calculated as follows: 75% x 0 months (renewals) + 25% x 6 months (new) = 1.5 months (Rounded to 2 Months)

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Hilton Head, SC

Park Plaza

aerial north

Long Cove Golf Club $390K - $1M

Wexford Plantation & Wexford Golf Club $380K - $3.2M

US BUS 278 AADT 39,400

parkplaza

Greenwood Dr.

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Palmetto Dunes 3 Golf Courses $415K - $5M


Hilton Head, SC

Park Plaza

rent roll Tenant

Square

Lease

Lease

Rent

Annual

Recovery

Renewal

Rent

Feet

Start

End

PSF

Rent

Rent Escalations Date

PSF

Type [1]

Options

PSF

$5.61

$291,720

None

None

NNN

TBD

TBD

$23.34

$30,832 4/1/14 4/1/15

$24.04 $24.76

NNN

(1) 5-Yr Option Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

$25.50 $26.27 $27.06 $27.87 $28.71

$19,014 5/1/13 5/1/14 5/1/15

$21.21 $21.85 $22.51

NNN

(1) 5-Yr Option Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

$23.19 $23.88 $24.60 $25.34 $26.10

$26,420 8/6/13 8/6/14 8/6/15 8/6/16

$20.60 $21.21 $21.85 $22.51

NNN

anchor Harris Teeter

52,000

retail Park Plaza Liquors

Nail Pro

Sweet Frog

1,321

923

1,321

[1] See Argus file for reimbursement details.

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04/01/11

05/01/11

08/06/12

03/31/16

04/30/16

08/05/17

$20.60

$20.00

(2) 5-Yr Options Option 1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Option 2 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

$23.19 $23.88 $24.60 $25.34 $26.10 $26.88 $27.68 $28.52 $29.37 $30.25


Hilton Head, SC

Park Plaza

rent roll Tenant retail Mellow Mushroom

Square

Lease

Lease

Rent

Annual

Feet

Start

End

PSF

Rent

5,215

03/04/02

05/14/17

$19.00

Rent Escalations Date

$99,085 5/15/13 5/15/14 5/15/15 5/15/16

Recovery

Renewal

Rent

PSF

Type [1]

Options

PSF

$19.50 $20.00 $20.50 $21.00

NNN

(5) 5-Yr Options Option 1 Option 2 Option 3 Option 4 Option 5

$21.50 $24.00 $26.50 $29.00 $31.50

*Rents increase $0.50 psf each year within the option term.

TOTAL

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60,780 SF


Hilton Head, SC

Park Plaza

market overview Hilton Head, SC Hilton Head Island or simply Hilton Head is a Lowcountry resort town located on an island of the same name in Beaufort County, South Carolina. It is 20 miles north of Savannah, Georgia and 95 miles south of Charleston. The island gets its name from Captain William Hilton. In 1663, Captain Hilton identified a headland near the entrance to Port Royal Sound, which he named “Hilton’s Head” after himself. The island features 12 miles of beachfront on the Atlantic Ocean and is a popular vacation destination. In 2004, an estimated 2.25 million visitors pumped more than $1.5 billion into the local economy. The year-round population was 37,099 at the 2010 census, although during the peak of summer vacation season the population can swell to 275,000. Over the past decade, the island’s population growth rate was 32%. The island has a rich history that started with seasonal occupation by native Americans thousands of years ago, and continued with European exploration and the Sea Island Cotton trade. It became an important base of operations for the Union blockade of the Southern ports during the Civil War. Once the island fell to Union troops, hundreds of ex-slaves flocked to Hilton Head, which is still home to many ‘native islanders’, many of whom are descendants of freed slaves known as the Gullah (or Geechee) who have managed to hold onto much of their ethnic and cultural identity. The Town of Hilton Head Island incorporated as a municipality in 1983 and is well known for its 1 6 www.berkeleycap.com

“eco-friendly” development. The town’s Natural Resources Division enforces the Land Management Ordinance which minimizes the impact of development and governs the style of buildings and how they are situated amongst existing trees. As a result, Hilton Head Island enjoys an unusual amount of tree cover relative to the amount of development. Approximately 70% of the island, including most of the tourist areas, is located inside gated communities. However, the town maintains several public beach access points, including one for the exclusive use of town residents, who have approved several multi-million dollar land-buying bond referendums to control commercial growth.

Head retirement communities offer independent living with activities, dining, and wonderful amenities for active adults.

Hilton Head Island offers an unusual number of cultural opportunities for a community its size, including Broadway-quality plays at the Arts Center of Coastal Carolina, the 120-member full chorus of the Hilton Head Choral Society, the highly-rated Hilton Head Symphony Orchestra, the largest annual outdoor, tented wine tasting event on the east coast, and several other annual community festivals. It also hosts the Heritage Golf Classic, a stop on the PGA Tour which is played on the Harbour Town Golf Links in Sea Pines Resort.

Technology-based businesses such as CareCore National and Field Stone Marketing have created a number of jobs in the Lowcountry area. Gulf Stream is located 30 miles away in Savannah, and the new Boeing 787 Jet Assembly Plant is located in nearby Charleston.

Retirement Communities Retirees ages 65 and older account for 23 percent of the area population. Factors that play an integral role in the decision to retire here include the quality healthcare, continued learning opportunities, nature, culture, sub-tropical weather, and the myriad opportunities for making family memories. Hilton

jobs Tourism is a leading industry on Hilton Head Island. There are numerous resort and hotel jobs, everything from marketing to accounting. Hilton Head Island also has a large retail and professional sector. The resort lifestyle means that you might be able to find a job with non-traditional hours. Many retirees enjoy working resort jobs on the weekends, leaving their weekdays free for golf and tennis.

Biking and Parks With its focus on nature and the natural beauty of the Island, it’s no surprise that Hilton Head Island has 7 community and 7 recreational parks with walking trails, tennis courts, and plenty of open space to enjoy your surroundings. The Island also has more than 100 miles of multi-use trails connecting riders everywhere they want to go. The 12 miles of hardpacked sandy beach is also ideal for bike riding, walking and jogging. continued on next pg.


Hilton Head, SC

Park Plaza

Airports Two airports service the Hilton Head Island area: Hilton Head Airport, located on the north end of the Island, and Savannah/Hilton Head International Airport, located approximately 45 miles (72 km) south of the Island.

real estate market is also quite lucrative, with the average residential property in Sea Pines selling for about $1,613,000 as of March 2010. Sea Pines is home to 3 golf courses, including Harbour Town Golf Links, Ocean Course, and Heron Point golf courses (formerly known as the Sea Marsh course).

Sea Pines, SC Park Plaza is located in the Sea Pines area of Hilton Head. The Sea Pines Resort or Sea Pines (formerly known as the Sea Pines Plantation) is a gated community located on the western end of the town of Hilton Head Island, South Carolina. It is the largest plantation on the island which contains a large portion of the rental properties on the island. The

Bluffton, SC Bluffton is the fastest growing town in Beaufort County, South Carolina, United States. It is a Lowcountry town located across U.S. Route 278 between Hilton Head Island and Interstate 95. The town’s original one square mile area, now known as Old Town, is situated on a bluff along the May River. The population was counted by the 2010 census at 12,530. Bluffton is the fastest growing municipality in South Carolina with a population over 2,500, growing 882.7% between the 2000 and 2010 census. Bluffton is the fifth largest municipality in South Carolina by land area. The town’s Micropolitan Statistical Area population was counted by the 2010 census at 187,010. Bluffton is known for its eclectic Old Town district and natural views of the May River. It has been called “The last true coastal village of the south.”

Harbour Town Golf Links

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After its founding in 1852, Bluffton became a popular loca-

tion for wealthy Savannah merchants and plantation owners. Following the Tariff of 1842, Bluffton became a hotbed of separatist sentiment. In 1844 the Bluffton Movement, a protest against federal taxes, birthed the secession movement and led South Carolina to be the first state to leave the Union.

Hilton Head Accolades Top 5 Best Beach – Southern Living Best Weekend Getaways Top 20 Best Beaches in the Nation – TripAdvisor.com Travelers’ Choice Awards Best Memorial Day Weekend Destination – AOL.com Top 10 Family Beach – MSNBC.com Top Five Best Family Biking Getaways in America – Disney’s Family Fun magazine Top Ten Vacation Rental Destination in the U.S. – TripAdvisor.com The Inn at Harbour Town was named among the “Top 20 Resorts in the South” - Conde’ Nast Traveler TOP 50 Resorts by Condé Nast Traveler’s “Best in the World - TOP 100” - Reader’s Choice Award.”


Hilton Head, SC

Park Plaza

demographics

Area Map Trade Area 1

population 2018 Projection 2013 Estimate 2010 Census 20000 Census Growth 2013-2018 Growth 2010-2013 Growth 2000-2010

18,804 18,264 17,981 16,313 2.96% 1.57% 10.22%

2013 est. pop by single race class

18,264

White Alone Black or African American Alone Amer. Indian and Alaska Native Alone Asian Alone Native Hawaiian and Other Pac. Isl. Alone Some Other Race Alone Two or More Races 2013 est. households by household income CY HHs, Inc < $15,000 CY HHs, Inc $15,000 - $24,999 CY HHs, Inc $25,000 - $34,999 CY HHs, Inc $35,000 - $49,999 CY HHs, Inc $50,000 - $74,999 CY HHs, Inc $75,000 - $99,999 CY HHs, Inc $100,000 - $124,999 CY HHs, Inc $125,000 - $149,999 CY HHs, Inc $150,000 - $199,999 CY HHs, Inc $200,000 - $249,999 CY HHs, Inc $250,000 - $499,999 CY HHs, Inc $500,000+ 2013 Est. Average Household Income 2013 Est. Median Household Income 1 8 www.berkeleycap.com

16,007 843 32 188 18 1,007 168 8,737 592 648 958 1,158 1,590 1,171 730 518 423 266 468 216 $102,340 $65,917

33 HIL Co Poly

%

87.64 4.62 0.18 1.03 0.10 5.51 0.92 6.78 7.42 10.96 13.25 18.20 13.40 8.36 5.93 4.84 3.04 5.36 2.47

Prepared on: Fri Oct 12, 2012 Prepared For:

Page 1 of 2

Nielsen Solution Center 1 800 866 6511

© 2012 The Nielsen Company. All rights reserved. © 2006-201 Prepared By:


Hilton Head, SC

Park Plaza

TERMS OF PRESENTATION CON FIDENTIALITY & DISCLAIMER Berkeley Capital Advisors, LLC (“BCA”) has been authorized by the owner of the subject property (the “Seller”) to present you with this marketing package. This is a confidential package intended solely for your own limited use and benefit, as a principal, in considering whether you desire to pursue negotiations to acquire the subject property. Your receipt and acceptance of this package serves to acknowledge your agreement to: (1) hold the information and materials contained herein, and the offering they represent, in the strictest of confidence; (2) not disclose, directly or indirectly, the information and materials contained herein, or the offering they represent, to any other person, firm or entity without prior written authorization from BCA or the Seller; (3) not use the information and materials contained herein in any fashion or manner detrimental to the interest of BCA or the Seller; (4) not disturb any tenants in possession of the subject property nor reveal to them the offering this package represents. This marketing package was prepared by BCA and it has been reviewed by representatives of the Seller. The information and materials contained herein are selective and limited in nature, and neither BCA nor the Seller purports this to be an all-inclusive report on the subject property. Within this package, certain leases, documents and other materials are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of those documents. Interested and qualified prospective purchasers will be afforded an opportunity to review additional information and to inspect the subject property, and all such prospective purchasers should conduct their own independent due diligence. This package is based in part upon information supplied by the Seller and in part upon information obtained by BCA from sources believed to be reliable. All income, expense and/or investment projections contained herein are provided for general reference purposes only, in that they are based on assumptions relating to the general economy, competition and other factors beyond the control of BCA and the Seller, and all such projections are therefore subject to variation. This package shall not be deemed an indication of the state of affairs of the subject property, nor constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of this package. Neither BCA, the Seller, nor any of their respective officers, employees or agents, has made or does make any representation or warranty, expressed or implied, as to the accuracy or completeness of this package or any of its contents, and no legal commitments or obligations shall arise by reason of this package or its contents. BCA and the Seller expressly reserve the right, at their sole discretion, to alter or amend the terms of this offering, to reject any or all

1 9 www.berkeleycap.com

expressions of interest or offers to acquire the subject property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligation to any entity reviewing this package or making an offer to acquire the subject property unless and until a written agreement for such acquisition has been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations thereunder have been satisfied or waived. Parties seeking to act in a third-party brokerage capacity must register their client(s) with BCA prior to receiving or dispersing any marketing information. BCA will not recognize any third-party brokerage relationships without first receiving and approving such written client registration, nor will BCA or the Seller be obligated for any brokerage claims which may result, regardless of such broker’s involvement in procuring a purchaser for the subject property. This package is the property of BCA. Photocopying, re-typing or other duplication of the information and materials contained herein is expressly prohibited. The information contained within this package and the offering of the subject property may not be announced, posted or otherwise publicized in any electronic media (such as, by way of example only, any Internet or “broadcast facsimile” communications). If, after reviewing this package, you have no further interest in acquiring the subject property at this time, please return this package in its entirety to BCA. Likewise, if the terms contained in this Confidentiality & Disclaimer section are not acceptable to you, please immediately return this package to BCA.

The terms and conditions stated in this Confidentiality & Disclaimer section apply and relate to all of the sections of this package as if stated independently therein. Prospective purchasers of the subject property are hereby notified that Berkeley Capital Advisors, and its agents, are acting in the capacity of a “Seller’s Agent” during the course of this offering, and as such are solely representing the interests of the Seller. DE SCRIPTION OF AGENT DUTIES AND RE L ATIONSHIPS Before you begin working with any real estate agent, you should know who the agent represents in the transaction. Every listing agreement, buyer agency agreement or other agreement for brokerage services in a real estate sales transaction in North Carolina must contain this “Description of Agent Duties and Relationships” [N.C. Real Estate Commission Rule 21 NCAC 58A.0104(c), eff. 7/1/95]. Real estate agents should carefully review this information with you prior to entering into any agency agreement. AGENT’S DUTIES When you contract with a real estate firm to act as your agent in a real estate transaction, the agent must help you obtain the best price and terms possible, whether you are the buyer or seller. The

agent also owes you the duty to: • Safeguard and account for any money handled for you • Act with reasonable skill, care and diligence • Be loyal and follow reasonable and lawful instructions • Disclose to you any information which might influence your decision to buy or sell Even if the agent does not represent you, the agent must still be fair and honest and disclose to you all “material facts” which the agent knows or reasonably should know. A fact is “material” if it relates to defects or other conditions affecting the property, or if it may influence your decision to buy or sell. This does not require a seller’s agent to disclose to the buyer the minimum amount the seller will accept, nor does it require a buyer’s agent to disclose to the seller the maximum price the buyer will pay. AG E N T S WOR K I N G W I T H S E L L ER S A seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. The listing agreement should state what the seller will pay the listing firm for its services, and it may require the seller to pay the firm no matter who finds the buyer. 4The listing firm may belong to a listing service to expose the seller’s property to other agents who are members of the service. Some of those agents may be working with buyers as buyers’ agents; others will be working with buyers but still representing the sellers’ interests as an agent or “subagent”. When the buyer’s agents and seller’s subagents desire to share in the commission the seller pays to the listing firm, the listing agent may share the commission with the seller’s permission. AG E N T S WOR K I N G W I T H B U YER S A buyer may contract with an agent or firm to represent him (as a buyer’s agent), or may work with an agent or firm that represents the seller (as a seller’s agent or subagent). All parties in the transaction should find out at the beginning who the agent working with the buyer represents. If a buyer wants a buyer’s agent to represent him in purchasing a property, the buyer should enter into a “buyer agency agreement” with the agent. The buyer agency agreement should state how the buyer’s agent will be paid. Unless some other arrangement is made which is satisfactory to the parties, the buyer’s agent will be paid by the buyer. Many buyer agency agreements will also obligate the buyer to pay the buyer’s agent no matter who finds the property that the buyer purchases. A buyer may decide to work with a firm that is acting as agent for the seller (a seller’s agent or subagent). If a buyer does not enter into a buyer agency agreement with the firm that shows him properties, that firm and its agents will show the buyer properties as an agent or subagent working on the seller’s behalf. Such a firm represents the seller (not the buyer) and must disclose that fact to the buyer.


Hilton Head, SC

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A seller’s agent or subagent must still treat the buyer fairly and honestly and disclose to the buyer all material facts which the agent knows or reasonably should know. The seller’s agent typically will be paid by the seller. If the agent is acting as agent for the seller, the buyer should be careful not to give the agent any information that the buyer does not want the seller to know. D UAL AGE NT S A real estate agent or firm may represent more than one party in the same transaction only with the knowledge and consent of all parties for whom the agent acts. “Dual Agency” is most likely to occur when a buyer represented by a buyer’s agent wants to purchase a property listed by that agent’s firm. A dual agent must carefully explain to each party that the agent and the agent’s firm are also acting for the other party. In any dual agency situation, the agent must obtain a written agreement from the parties which fully describes the obligations of the agent and the agent’s firm to each of them. This document is enclosed under the requirements of the North Carolina Real Estate Commission. Prospective buyers should review and sign this document, retain a copy and return the original to Berkeley Capital Advisors. DISCLOSURE TO BUYER FROM SELLER’S AGENT OR SUBAGENT Note: This form must be used by real estate agents working with buyers as agents or subagents of the seller. [N.C. Real Estate Commission Rule 21 NCAC 58A.0104(e), eff. 7/1/95]. Firm Name: Berkeley Capital Advisors, LLC

Agent Name: Robert S. Carter, Alex W. Quarrier & David C. Webb

AGENCY DISCLOSURE When showing you property and assisting you in the purchase of a property, the above-referenced agent and firm will be representing the interests of the SELLER. As such, the firm and its agents must work to obtain for the seller the best price and terms possible. The firm and its agents must also furnish the seller any information obtained from you or any other source which is material to the transaction or which might influence the seller’s decision to sell. Therefore, as a buyer, you should not give the seller’s agent any information that you do not want the seller to know.

ACKNOWLEDGEMENT (DO NOT SIGN THIS FORM UNTIL YOU HAVE READ BOTH SIDES.) By signing below, I acknowledge that I have received a completed copy of this form.

__________________________________________________________ Buyer’s Name (Print or type)

__________________________________________________________ Buyer’s Name (Print or type)

__________________________________________________________ Buyer’s Signature

__________________________________________________________ Buyer’s Signature

__________________________________________________________ Date

__________________________________________________________ Date

INSTRUCTIONS TO AGENTS 1. Review the “Description of Agent Duties and Relationships” with the buyer(s) at the time of your first substantial contact with the buyer(s). 2. Explain the type(s) of agency (seller agency, buyer agency, dual agency) your firm offers. 3. Enter your name and the firm name at the top of this form and review the Agency Disclosure with the buyer(s). 4. Have the buyer(s) complete the ACKNOWLEDGEMENT above. 5. Give the buyer(s) a copy of this form, and retain the signed original for your files. NOTE:

If your firm will act as a buyer’s agent, do not use this form. Enter into a buyer agency agreement with the buyer.

2 0 www.berkeleycap.com


831 East Morehead Street | Suite 650 Charlotte | NC |28202 704-379-1980 www.berkeleycap.com

Robert Carter carter@berkeleycap.com

Alex Quarrier quarrier@berkeleycap.com

David Webb webb@berkeleycap.com


Park Plaza