Hub RTP Office Pitchbook

Office Site RESEARCH TRIANGLE PARK NORTH CAROLINA

Table of Contents

0 1 EXECUTIVE SUMMARY 09 HUB RTP PROPERTY SUMMARY 17 LOCATION OVERVIEW 39 MARKET OVERVIEW CONFIDENTIAL DISCLAIMER

This document and the information in it are provided in confidence, for the sole purpose of exploring business opportunities between the disclosing party and the receiving party concerning Hub RTP, and may not be disclosed to any third party or used for any other purpose without the express written permission of the disclosing party.

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY Office Site

EXECUTIVE SUMMARY Office Site

For the first time,

Location

exclusive opportunity to develop high-rise office space in

Pad Ready

2021

Hub RTP—a mixed-use setting at the heart of the Park.

Zoning

SRP-C*, Science Research

world-renowned Research Triangle Park (RTP) is offering an

The site will be pad-ready in 2021, and 6.7 +/- acres are available for development of Class A office space. This is the only site on the 7,000-acre Park zoned for mixed-use development, and a rare location offering significant visibility from Interstate 40, the region’s most prominent corridor. The Research Triangle Foundation of North Carolina, owner of the land and long-term manager of RTP, is acting as the Master Developer for this project.

Hub RTP – Intersection of I-40/HWY 147/NC 54

Park-Center Site Acreage

6.7 +/- Acres

Major Highway Visibility

200K+ Commuters Daily

Direct Interstate Access

Via Dedicated Ramp

Minimum Requirement

Class A

Easement

Parking Deck

Ability to Leverage Parking with Hotel User The surrounding Raleigh-Durham area is one of the most sought-after markets in the country for investors, companies and families. In 2018, solid economic and leasing

Synergies in Meeting Space Available with Hotel Retail Amenities to Support HUB RTP Community

fundamentals fueled healthy investments and low Class A vacancy rates while pushing price per square foot up— making 2019 the optimal time to invest in this market.

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*Durham County SRP-C Zoning: See Appendix

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EXECUTIVE SUMMARY Investment Highlights

EXECUTIVE SUMMARY Investment Highlights

COMMITTED PARTNERS

The following partners are committed to funding:

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HW

Y1

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Unparalleled Access RTP HQ

HU NC

$20 million — Approved Infrastructure Grant from Durham County $10 million — Durham-Wake Service District (RTP special tax district)

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$100 million — MAA under contract to develop 450-unit apartment development to deliver in 2022

$92 MILLION IN SITE IMPROVEMENTS The 100-acre site has been entitled and rezoned as Science Research Park-Center (SRP-C)*, making it the only site in RTP zoned for mixed-use development. Common area elements boardwalks, vehicular and pedestrian bridges, bike paths, and

TP

$70 million — Willard Retail under contract to develop 150,000-square-foot experiential retail center to deliver in 2022

for tenants to enjoy will include a splash pad, amphitheater,

I-4

BR

54

Davis Drive

Hub RTP is a rare development opportunity in one of the world’s premier innovation communities.

$70 million — Research Triangle Foundation of North Carolina

$70 million — Funded by RTF to redevelop 500k SF office and lab space, and build a 15k SF cargotecture retail concept (30M spent to date on construction) $450 million — KDC partnership to develop up to a million square feet of Class-A office space $300 million — in planned future development

other natural amenities.

Prior to closing, the Seller will make infrastructure

A THRIVING MARKET

improvements to:

The Raleigh-Durham office market has performed extraordinarily in recent years and solid market metrics continue to indicate

Roadways

Duct bank

Gas

Water

Power

Reuse water

building sales totaling $2 billion. The market has seen only

Sewer

Fiber Loop

Recreational facilities

absorption for 2018 was 1.6 million square feet—up a staggering

a favorable outlook. 2018 was a record-setting year, with office 10 percent Class A vacancy year-over-year, and its annual

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EXECUTIVE SUMMARY Offer Format and Process

OFFERING FORMAT Given the long-term interest of the Seller with regard to the greater RTP development, numerous elements of a prospective purchaser’s bid will be considered when evaluating each offer. We request that all offers include the following level of detail to assist the Seller in making its decision with regard to the disposition of the office site.

Acquisition Terms — Open to opportunities for seller participation, i.e., ground lease, equity interest, promote, etc.

Proposed Due Diligence Timing Estimated Development Cost Capital Sources Development Team Proposed Development Description — i.e., # building(s), square footage, total and floor plates, conceptual plan, etc.

PROPERTY TOURS

OFFERING MATERIALS

Available upon request.

A due diligence website is available to

Deposit and Timing — commitment to developing on an agreed upon timeline

prospective purchasers following the execution of a nondisclosure agreement.

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HUB RTP PROPERTY SUMMARY 09

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PROPERTY SUMMARY Hub RTP

With 6 million square feet at the center of the Park, Hub RTP will be an urban, walkable district offering largescale to start-up offices, greenspaces, a uniquely connected infrastructure, restaurants and retail.

The office site’s location is a unique opportunity to capitalize on the expanding amenity-rich environment of Hub RTP. With a convenient location in an area nationally ranked for its quality of life and highly educated workforce, this is an opportunity to invest in one of the most attractive innovation communities in the country.

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At the intersection of I-40, HWY 147 and NC 54 Site is central to 7,000-acre innovation community that is home to world-renowned companies Environment built for working, living or enjoying leisure time Restaurants and fitness center Amenities will include retailers and grocery shopping 6 miles and 9 minutes from Raleigh-Durham International Airport

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PROPERTY SUMMARY Hub RTP

PROPERTY SUMMARY Hub RTP

Available Office Space

PHASE ONE

I-40

DAVIS DRIVE

Office Future Mixed-Use Residential

With total investment estimated to be $1 billion, Phase One will offer a complementary mix of commercial developments.

During this phase, Hub RTP will also be connected to the existing half-million square feet of Frontier RTP Innovation District, which is 85 percent leased.

1.1M square feet of office

Food/Beverage/Retail Hotel & Convergence 150,000 square feet of retail*

Available

NC 54

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850 residential units**

375 hotel rooms

PHASE TWO

In Phase Two, there will be development opportunities for an additional 3 million square feet of mixed-use development.

80,000 square feet of convergence center

*PSA executed with Willard Retail; expected construction completion 2022 **PSA executed with MAA for first 450 units; expected construction completion 2022

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LOCATION OVERVIEW

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LOCATION OVERVIEW Mission

MISSION

As we look to the next 60 years, RTP is being reimagined.

Facilitate collaboration between the Triangle’s universities.

Promote

cooperation between universities and industry.

Create

Founded in 1959, Research Triangle Park is: 7,000 acres v24M+ square feet of lab and office space 300+ of both established and startup biotech, life science, data science and tech companies Founded at the same time, RTP is also home to Research Triangle Institute, conducting more than $1B in research annually Our restrictive covenants, attractive central location and powerful mission attract everything from top-tier STEM employers to early-stage startups.

economic impact for the citizens of North Carolina.

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NC-147

OFFICE

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HOTEL & CONVERGENCE

MIXED-USE

NC-54

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Attracting Talent at the Center of the Triangle

Frontier RTP is home to creative freelancers, startups, STEM professionals, and emerging companies.

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LOCATIOIN OVERVIEW FRONTIER RTP

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Attracting Talent at the Center of the Triangle

Boxyard RTP will be an active, eventdriven meeting point for the region’s most innovative minds, showcasing locally produced food, beverage, and artisan goods.

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LOCATION OVERVIEW BOXYARD RTP

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LOCATION OVERVIEW Research Triangle Park Total Employment Growth Rate 2007-2017* Raleigh-Durham, NC

19.2%

Denver, CO

17.9%

San Francisco, CA

16.4%

Seattle, WA

14.2%

Boston, MA

The Triangle is Growing Rapidly

10.7%

Atlanta, GA

9.8%

United States

6.3%

Projected Population Growth (2016-2046)** Raleigh-Durham, NC

70.7%

Atlanta, GA

48.7%

Boston, MA

11.0%

Austin, TX

87.4%

Nashville, TN

40.5%

San Francisco, CA

19.4%

109 people move to RaleighDurham every day, and the average age is 27.

Total Technology Industry Employment Growth (2012-2017)*** Raleigh-Durham, NC

14.6%

Atlanta, GA

12.8%

Boston, MA

10.9%

San Francisco, CA

10.0%

San Jose, CA

10.0%

Nashville, TN Austin, TX

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* Bureau of Labor Statistics ** Source: US Conference of Mayors 2017 *** Source: EMSI

9.4% -.07%

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LOCATION OVERVIEW Research Triangle Park

Fortune 500 Tenants

LOCATION OVERVIEW Research Triangle Park

Regional Highlights

#3

Demographic Highlights I-mile radius

3-mile radius

5-mile radius

Total Population

313

25,656

100,692

Total Households

165

11,083

42,789

Median Household Income

$72,809

$71,299

$74,118

Median Age

33

36

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BIGGEST BOOMTOWNS IN AMERICA Magnify Money, August 2018

1,786,119 POPULATION

#2

#2

Forbes, 2018

Money Magazine, 2018

BEST PLACES FOR BUSINESS AND CAREERS

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BEST PLACES TO LIVE IN AMERICA

#3

U.S. MARKETS TO WATCH FOR OVERALL REAL ESTATE PROSPECTS IN 2019 The Urban Land Institute

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LOCATION OVERVIEW Research Triangle Park

An Entrepreneurial Hotbed

#3

BEST PLACE IN AMERICA FOR STARTING A BUSINESS Inc., 2018

TOP 10

BEST CITIES FOR STARTUPS YOU’LL WANT TO BE BASED IN Hubstaff, 2017

2,500

STARTUPS ESTABLISHED IN THE TRIANGLE REGION Pitchbook, 2018

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DURHAM

RDU International Airport Serves more than 12 million passengers annually

HUB RTP

10 airlines 66+ nonstop destinations

RALEIGH

CHAPEL HILL

7 international nonstops, including daily to London and Paris Lowest average fare in North Carolina

A Business Climate Where Industry Thrives PREDOMINANT INDUSTRIES

MAJOR COMPANIES IN THE TRIANGLE* Cree

Red Hat, Inc.

IQVIA

Education

Blue Cross and Blue Shield of North Carolina

RTI International

Healthcare

Citrix

PPD

Technology

Met Life

SAS Institute Inc.

World-Class Universities and a Highly Educated Workforce TIER 1 RESEARCH UNIVERSITIES Duke University

COLLEGES AND UNIVERSITIES North Carolina Central University

North Carolina State University

Durham Technical Community College

University of North Carolina at Chapel Hill

Meredith College

Norman Adrian Wiggins School of Law (Campbell University) Saint Augustine’s University Shaw University

Wake Forest University (Winston-Salem) Wake Technical Community College William Peace University

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LOCATION OVERVIEW Research Triangle Park

At the Center of the Triangle Innovation Ecosystem

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MARKET OVERVIEW

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MARKET OVERVIEW Raleigh-Durham Office Market

MARKET OVERVIEW Raleigh-Durham Office Market

Investors are attracted to the Triangle for positive market indicators.

Absorption vs. Completion* 2,000,000 1,500,000 1,000,000 500,000 0

2012

2014

Absorption

2016

2018

Completion

Vacancy Trends* 20% 15% 10% 5%

YE12 Total

YE14 Class A

YE16

YE18

Class B

SF Under Construction* 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

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YE12

* Avison Young

YE14

YE16

Developments under construction in the I-40/RTP corridor enjoy some of the highest pre-lease rates in the Triangle.*

YE18

Property

Submarket

Projected Completion

Total Office SF

% Pre-lease

555 Mangum

Downtown Durham

3Q19

229,455

23%

One Glenwood

Downtown Raleigh

1Q19

212,500

75%

FNB Tower

Downtown Raleigh

4Q19

149,842

61%

MetLife III

Cary

1Q19

213,500

100%

Crabtree Terrace

Glenwood/Creedmoor

4Q19

168,000

31%

Perimeter Six

I-40/RTP

1Q19

200,000

67%

Triangle 54 - Building 1

I-40/RTP

1Q19

152,456

100%

3300 Paramount Parkway I-40/RTP

1Q19

97,462

70%

Tower IV at North Hills

Six Forks Road

3Q19

328,600

18%

Wade V

West Raleigh

1Q19

209,145

0%

*Avison Young, Fourth Quarter 2018, Office Market Report, Raleigh-Durham

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MARKET OVERVIEW Market Facts*

OFFICE BUILDING SALES TOTALED

$2 billion

IN 2018, SHATTERING HISTORIC RECORDS BY A WIDE MARGIN

MARKET OVERVIEW Market Facts*

VACANCY AND ABSORPTION In the fourth quarter, net absorption of 943,518 square feet brought the annual total to 1.6 million square feet, the market’s strongest performance since 2007.

NEW CONSTRUCTION 10% CLASS A VACANCY

unchanged YEAR-OVER-YEAR

A year-end wave of completions pushed the 2018 total of construction deliveries to 1.6 million square feet. Projects totaling 2.2 million square feet were still underway at yearend, with 55 percent of the space reported as leased.

RENTAL RATES 1.6 MSF: 2018 ABSORPTION

up 47% VERSUS 2017

The region’s rental rates have been on an upward trajectory since 2012, and 2018 brought a considerably sharper rate of increase. Tight market conditions and rising construction costs continue to be major factors in these rates, but the

recent surge in investment sales played a particularly significant role in recent months. Owners have routinely pushed rates higher before taking buildings to market, and buyers typically raise rates again after closing and, in many instances, investing in improvements. The average Class A rate rose to a record-high of $28.67 per square foot in the fourth quarter, up 8 percent year-over-year.

INVESTMENT SALES 2018 was a record-breaking year for both overall Triangle investment sales and office sales. Total market volume hit $5.5 billion for the year, up 31 percent over 2017. Office sales were a substantial driver of this increase in activity, representing 36 percent of overall sales for the year. Office sales totaled a record setting $2 billion, up 78 percent versus the previous year.

*All Market Facts on this page from Avison Young, Fourth Quarter 2018, Office Market Report, Raleigh-Durham

$28.67 PSF: AVERAGE CLASS A ASKING RATE

up 8%

IN THE LAST 12 MONTHS

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*All Market Facts on this page from Avison Young, Fourth Quarter 2018, Office Market Report, Raleigh-Durham

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MARKET OVERVIEW Market Facts*

TALENT

OUTLOOK

The Triangle economy continues to perform exceptionally well, setting the stage for another active year for the Triangle office market and favorable conditions for landlords.

The region added 23,600 jobs between November 2017 and November 2018, and unemployment fell from 3.9 percent to just 3.0 percent during this time. 2018 was also a highly successful year for corporate recruitment, with Advance Auto Parts and Pendo choosing the Triangle for their corporate

1,137,497 WORKERS IN THE RESEARCH TRIANGLE REGION

headquarters, resulting in more than 1,000 new jobs.

(Raleigh-Durham CSA)

#3

#4

9.6%

Fortune, January 2019

Fortune, December 2018

National Average: 6%

BEST CITIES TO WORK IN

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Companies are attracted to the Triangle for its highly educated workforce and strong employment statistics.

LOCATION WHERE JOBS WILL BE IN 2019

*All Market Facts on this page from Avison Young, Fourth Quarter 2018, Office Market Report, Raleigh-Durham

5-YEAR PROJECTED GROWTH RATE IN JOBS

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