SE_MC - Tenant Presentation

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Accelerating success. Industrial Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright © 2023 Colliers International. May 8, 2023 Jonathan Kingsley Vice Chairman +1 305 785 2665 jonathan.kingsley@colliers.com Prepared by

Landlord Proposals Summary

SML/SSI Landlord Proposals Summary

2, 5 year at Market with no floor None

and

spots Total 287 employee spaces and 87 trailer spots

employee spaces and 79 trailer spots 321 employee spaces and 106 trailer spots

Premises/SF Lease Term Rate Increase Operating Expenses Increase Taxes Increase Rent Abatement Allowance Renewal Option RoFR Parking 296,984SF Bldg 1. 88,584SF Bldg. 3 208,400SF 120 months $16.00 4% $2.07 4.03% $2.05 TBD None $185,460.00 $0.65/SF plus $50,000 for “Essentials” 1, 5 year at Market None but 49,216SF available 8/1/23Unit 7850 As exists Midpoint Logistics 297,918SF 122 months $14.95 4% $2.90 TBD Incl. in Opex TBD 2 Months Net $2,681,261.00 ($9.00/SF) plus "extras" 2, 5 year at Market None since SML would lease the full bldg. 250 employee parking spaces. No dedicated trailer spots although control of full site. LBA Logsistics 320,136SF Bldg. 1. 103,829SF Bldg 2. 216,307SF 122 months $18.25 4.50% $2.50 TBD Incl. in Opex TBD 2 Months Net $3,201,136.00 ($10.00/ SF) plus "extras" 2, 5 year
Market
Conceptually
Bldg. 1.
Bldg.
Bridge Point Gratigny 409,189SF 303,814SF - Option 1 409,189SF Option 2 122 months 123 months $17.95 $17.55 4.50% 4.50% $2.25 $2.25 TBD TBD Incl. in Opex Incl. in Opex TBD TBD 2 Months Net 2 Months Net on 303,814SF Addit’l. 9 Months Net on 105,374SF $2,430,512.00 ($8.00/SF)
“extras” $4,091,890.00
plus “extras”
237
at
with no floor
agreed pending negotiations
83 employee spaces and 25 trailer spots
2. 204 employees spaces
62 trailer
plus
($10.00/ SF)
Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright © 2023 Colliers International. Renewal

Financial Models

PRE-TAX OCCUPANCY COST ANALYSIS Analysis as of 5/4/23

Executive Summary

employee pasrking spaces and 25 trailer spots

II: 204 employee spaces and 62 trailer spots.

Building Existing Building Midpoint Logistics LBA Logistics Bridge Point Gratigny Option 1 Bridge Point Gratigny Option 2 Rentable Square Feet 296,984 297,918 320,136 303,814 409,189 Lease Term (Mos) 120 122 122 122 123 Base Rent $16.00 $14.95 $18.25 $17.95 $17.55 Operating Expense (estimate) $2.07 $2.90 $2.50 $2.25 $2.25 Real Estate Taxes $2.05 $0.00 $0.00 $0.00 $0.00 Current TI allowance propsoed by landlord (PSF) $0.65 $9.00 $10.00 $8.00 $10.00 Gross Rent $23.12 $17.85 $20.75 $20.20 $19.80 Annual Base Rent Escalations 4.0% 4.0% 4.50% 4.5% 4.5% Annual Operating Expense Increases 4.03% Commencement Date Rent Abatement None 2 mos NNN 2 mos NNN 2 mos NNN 3 mos NNN on 409,189-rsf and an additional 9 mos NNN on 105,374-sf Parking Ratio Per Existing 250 employee parking spaces. No dedicated trailer spaces although contril of the full site Bldg 1: 83
Total of 287
237 employee spaces and 79 trailer
321 employee spaces
Renewal Option One 5-yr Options with 12 mos Notice at Market Two 5-yr Options with 2 mos Notice at Market Two 5-yr Options with 2 mos Notice at Market with no floor. Two 5-yr Options with 2 mos Notice at Market with no floor. Two 5-yr Options with 2 mos Notice at Market with no floor. ROFR None, but 49,216 SF available 8/1/23. Unit 7850 None since SML will lease the entire building. Conceptually agreed pending negotiations None None Security Deposit PRE-TAX NET PRESENT VALUE @ 8.0% NPV of Total Occupancy Costs $66,445,150.08 $57,814,228.59 $74,069,348.37 $68,463,759.12 $88,534,370.16 NPV Avg NNN Rent (Per Square Foot) $17.79 $16.12 $20.15 $19.82 $18.78 NPV Avg Gross Rent (Per Square Foot) $22.37 $19.09 $22.76 $22.17 $21.11 TOTAL OCCUPANCY COSTS (NON-DISCOUNTED) $71,760,762.09 $62,439,366.87 $79,994,896.24 $73,940,859.85 $95,617,119.78 Total Occupancy Costs Avg Gross Rent (Per Year) $7,176,076.21 $6,141,577.07 $7,868,350.45 $7,272,871.46 $9,328,499.49 Avg Gross Rent (Per Square Foot) $24.16 $20.68 $24.58 $23.94 $22.80 Capex (per sq ft) $0.00 $0.00 $0.00 $0.00 $0.00 Capex (total) $0.00 $0.00 $0.00 $0.00 $0.00
Bldg
employee spaces and 87 trailer spots
spots
and 106 trailer spots

EXISTING BUILDING

Analysis as of 5/4/23 General Assumptions Size (RSF) 296,984 0 Lease Term 120 0 Rental Rate $16.00 0 Operating Expenses $2.07 0 Real Estate Taxes $2.05 0 Annual Increases 4.00% 0 TI Offered $0.65 0 $193,039.60 NPV at 8.00% Total PRE-TAX CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cost Rent Expenses New Lease Base Rent $4,751,744.00 $4,941,813.76 $5,139,486.31 $5,345,065.76 $5,558,868.39 $5,781,223.13 $6,012,472.05 $6,252,970.94 $6,503,089.77 $6,763,213.36 Less Free Rent $52,824,025.45 $4,751,744.00 $4,941,813.76 $5,139,486.31 $5,345,065.76 $5,558,868.39 $5,781,223.13 $6,012,472.05 $6,252,970.94 $6,503,089.77 $6,763,213.36 $57,049,947.48 Operating Expenses Operating Expenses $13,621,124.63 $614,756.88 $639,531.58 $665,304.71 $692,116.48 $720,008.78 $749,025.13 $779,210.85 $810,613.04 $843,280.75 $877,264.96 Real Estate Taxes $608,817.20 $633,352.53 $658,876.64 $685,429.37 $713,052.17 $741,788.17 $771,682.24 $802,781.03 $835,133.11 $868,788.97 Total Operating Expense $1,223,574.08 $1,272,884.12 $1,324,181.35 $1,377,545.85 $1,433,060.95 $1,490,813.31 $1,550,893.08 $1,613,394.08 $1,678,413.86 $1,746,053.93 $14,710,814.60 Pre-Tax Occupancy Cost/(Revenue) $66,445,150.08 $5,975,318.08 $6,214,697.88 $6,463,667.66 $6,722,611.62 $6,991,929.34 $7,272,036.44 $7,563,365.14 $7,866,365.01 $8,181,503.63 $8,509,267.30 $71,760,762.09 Avg Gross Rent (Per Year) $7,176,076.21 Avg Gross Rent (Per Square Foot) $24.16

MIDPOINT LOGISTICS

5/4/23 General Assumptions Size (RSF) 296,984 0 Lease Term 122 Rental Rate $14.95 Operating Expenses $2.90 Real Estate Taxes $0.00 Annual Increases 4.00% TI Offered $9.00 $2,672,856.00 NPV at 8.00% Total PRE-TAX CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Cost Rent Expenses New Lease Base Rent $4,439,910.80 $4,617,507.23 $4,802,207.52 $4,994,295.82 $5,194,067.66 $5,401,830.36 $5,617,903.58 $5,842,619.72 $6,076,324.51 $6,319,377.49 $1,095,358.76 Less Free Rent ($739,985.13) $48,672,277.36 $3,699,925.67 $4,617,507.23 $4,802,207.52 $4,994,295.82 $5,194,067.66 $5,401,830.36 $5,617,903.58 $5,842,619.72 $6,076,324.51 $6,319,377.49 $1,095,358.76 $52,566,059.55 Operating Expenses Operating Expenses $9,141,951.23 $861,253.60 $887,091.21 $913,703.94 $941,115.06 $969,348.51 $998,428.97 $1,028,381.84 $1,059,233.29 $1,091,010.29 $1,123,740.60 $192,908.80 Real Estate Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Operating Expense $861,253.60 $887,091.21 $913,703.94 $941,115.06 $969,348.51 $998,428.97 $1,028,381.84 $1,059,233.29 $1,091,010.29 $1,123,740.60 $192,908.80 $9,873,307.33 Pre-Tax Occupancy Cost/ (Revenue) $57,814,228.59 $5,422,432.87 $6,391,689.65 $6,629,615.41 $6,876,525.95 $7,132,764.68 $7,398,688.30 $7,674,667.25 $7,961,086.31 $8,258,345.09 $8,566,858.69 $1,481,176.37 $62,439,366.87 Avg Gross Rent (Per Year) $6,141,577.07 Avg Gross Rent (Per Square Foot) $20.68
Analysis as of

LBA LOGISTICS

5/4/23 General Assumptions General Assumptions Size (RSF) 320,136 Lease Term 122 Rental Rate $18.25 Operating Expenses $2.50 Real Estate Taxes $0.00 Annual Increases 4.50% TI Offered $10.00 $3,201,360.00 NPV at 8.00% Total PRE-TAX CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Cost Rent Expenses New Lease Base Rent $5,842,482.00 $6,105,393.69 $6,380,136.41 $6,667,242.54 $6,967,268.46 $7,280,795.54 $7,608,431.34 $7,950,810.75 $8,308,597.23 $8,682,484.11 $1,512,199.32 Less Free Rent ($973,747.00) $65,573,976.91 $4,868,735.00 $6,105,393.69 $6,380,136.41 $6,667,242.54 $6,967,268.46 $7,280,795.54 $7,608,431.34 $7,950,810.75 $8,308,597.23 $8,682,484.11 $1,512,199.32 $70,819,895.07 Operating Expenses Operating Expenses $8,495,371.45 $800,340.00 $824,350.20 $849,080.71 $874,553.13 $900,789.72 $927,813.41 $955,647.82 $984,317.25 $1,013,846.77 $1,044,262.17 $179,265.01 Real Estate Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Operating Expense $800,340.00 $824,350.20 $849,080.71 $874,553.13 $900,789.72 $927,813.41 $955,647.82 $984,317.25 $1,013,846.77 $1,044,262.17 $179,265.01 $9,175,001.17 Pre-Tax Occupancy Cost/ (Revenue) $74,069,348.37 $6,469,415.00 $7,754,094.09 $8,078,297.82 $8,416,348.80 $8,768,847.90 $9,136,422.36 $9,519,726.97 $9,919,445.25 $10,336,290.77 $10,771,008.45 $1,870,729.33 $79,994,896.24 Avg Gross Rent (Per Year) $7,868,350.45 Avg Gross Rent (Per Square Foot) $24.58
Analysis as of

BRIDGE POINT GRATIGNY OPTION 1 Analysis

General Assumptions Size (RSF) 303,814 Lease Term 122 Rental Rate $17.95 Operating Expenses $2.25 Real Estate Taxes $0.00 Annual Increases 4.50% TI Offered $8.00 $2,430,512.00 NPV at 8.00% Total PRE-TAX CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Cost Rent Expenses New Lease Base Rent $5,453,461.30 $5,698,867.06 $5,955,316.08 $6,223,305.30 $6,503,354.04 $6,796,004.97 $7,101,825.19 $7,421,407.33 $7,755,370.66 $8,104,362.34 $1,411,509.77 Less Free Rent ($908,910.22) $61,207,744.48 $4,544,551.08 $5,698,867.06 $5,955,316.08 $6,223,305.30 $6,503,354.04 $6,796,004.97 $7,101,825.19 $7,421,407.33 $7,755,370.66 $8,104,362.34 $1,411,509.77 $66,104,364.04 Operating Expenses Operating Expenses $7,256,014.64 $683,581.50 $704,088.95 $725,211.61 $746,967.96 $769,377.00 $792,458.31 $816,232.06 $840,719.02 $865,940.59 $891,918.81 $153,112.73 Real Estate Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Operating Expense $683,581.50 $704,088.95 $725,211.61 $746,967.96 $769,377.00 $792,458.31 $816,232.06 $840,719.02 $865,940.59 $891,918.81 $153,112.73 $7,836,495.82 Pre-Tax Occupancy Cost/ (Revenue) $68,463,759.12 $5,911,714.08 $7,107,044.95 $7,405,739.30 $7,717,241.22 $8,042,108.04 $8,380,921.59 $8,734,289.31 $9,102,845.37 $9,487,251.84 $9,888,199.96 $1,717,735.23 $73,940,859.85 Avg Gross Rent (Per Year) $7,272,871.46 Avg Gross Rent (Per Square Foot) $23.94
as of 5/4/23

BRIDGE POINT GRATIGNY OPTION 2 Analysis

General Assumptions Size (RSF) 409,189 Lease Term 123 Rental Rate $17.55 Operating Expenses $2.25 Real Estate Taxes $0.00 Annual Increases 4.50% TI Offered $10.00 $4,091,890.00 NPV at 8.00% Total PRE-TAX CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Cost Rent Expenses New Lease Base Rent $7,181,266.95 $7,504,423.96 $7,842,123.04 $8,195,018.58 $8,563,794.41 $8,949,165.16 $9,351,877.59 $9,772,712.09 $10,212,484.13 $10,672,045.92 $2,788,072.00 Less Free Rent ($3,182,302.01) $78,761,675.76 $3,998,964.94 $7,504,423.96 $7,842,123.04 $8,195,018.58 $8,563,794.41 $8,949,165.16 $9,351,877.59 $9,772,712.09 $10,212,484.13 $10,672,045.92 $2,788,072.00 $85,062,609.82 Operating Expenses Operating Expenses $9,772,694.40 $920,675.25 $948,295.51 $976,744.37 $1,006,046.70 $1,036,228.11 $1,067,314.95 $1,099,334.40 $1,132,314.43 $1,166,283.86 $1,201,272.38 $309,327.64 Real Estate Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Operating Expense $920,675.25 $948,295.51 $976,744.37 $1,006,046.70 $1,036,228.11 $1,067,314.95 $1,099,334.40 $1,132,314.43 $1,166,283.86 $1,201,272.38 $309,327.64 $10,554,509.95 Pre-Tax Occupancy Cost/ (Revenue) $88,534,370.16 $5,840,315.44 $9,401,014.98 $9,795,611.79 $10,207,111.99 $10,636,250.62 $11,083,795.06 $11,550,546.39 $12,037,340.94 $12,545,051.85 $13,074,590.67 $3,406,727.27 $95,617,119.78 Avg Gross Rent (Per Year) $9,328,499.49 Avg Gross Rent (Per Square Foot) $22.80
as of 5/4/23

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