NORFOLK COMMERCE PARK PORTFOLIO

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1 INVESTMENT OFFERING OPPORTUNITY SEPTEMBER 2018 NORFOLK COMMERCE PARK PORTFOLIO NORFOLK,VA AN INSTITUTIONALLY-SIZED OFFICE/FLEX PORTFOLIO Hampton Roads

2 Military Circle Mall JANAF NORTHAMPTON BLVD. PRINCESS ANNE ROAD I T A R Y H I G H W A Y Building I Building III Building IV M I L

3 EXECUTIVE SUMMARY CBRE Hampton Roads is pleased to announce its exclusive sale representation of the Norfolk Commerce Park Portfolio located in Norfolk, Virginia. The 331,857 square foot offering represents a rare opportunity to acquire a critical mass of three contiguous assets in the Hampton Roads market. The 97% leased portfolio represents a diverse mix of industries including finance (PRA Group), health care (BioScrip), energy (GE Power), business services (FedEx), and federal government / defense (AECOM, Alion, and US Government - Coast Guard). Along with the high in-place occupancy, the portfolio does also have a number of value-add components including lease-up of remaining vacancy (a prime 8,800 square foot first floor suite with lobby access), lease-up of a pending vacant suite (6,835 square foot suite to be downsized by GE Power), and scheduled rent increases from the existing tenancy. Additionally, an affiliated owner entity of the seller owns the 3.1 acre undeveloped site originally planned for construction of NCC II, and the portfolio buyer could acquire that site for additional office development or even alternative use such as hotel or retail / restaurant. Norfolk Commerce Park is part of the Central Norfolk submarket which benefits from its central location in Hampton Roads as well as adjacency to Interstate 64, Military Highway, and the Norfolk International Airport. In addition to being centrally located in the region to serve all area customers and employee bases, the park is also the closest substantial office location to the Norfolk Naval Base which has attracted numerous defense contractors to the park over the years. The Norfolk Commerce Park Portfolio features abundant on-site parking with 1,084 spaces (approximately 3.3 spaces per 1,000 square feet) even with the office buildout at approximately 70% overall. The office/flex product type is highly favored and successful throughout the Hampton Roads market for a number of reasons including tenant signage opportunity at suite entrance, secured private access, lack of core factor for a lobby outside of their space, flexibility, and cost advantages. Offering Price: Major Tenants: INVESTMENT SUMMARY Unpriced Rentable Square Feet: 331,857 Occupancy: 97.4% Year 1 NOI (Projected): $2,937,073 PRA Group AECOM Federal Express Corp. Alion GE Power Bioscrip U.S. Government - (GSA) Norfolk Commerce Park ~ Norfolk, VA

4 PORTFOLIO HIGHLIGHTS CRITICAL MASS OF HIGH-QUALITY OFFICE/FLEX SPACE The subject office / flex portfolio encompasses 331,857 rentable square feet in adjacent low-rise properties, two of which are one-story and one of which is two-story in the center with one-story wings for the u-shaped property. The relatively large offering size is unique for the Hampton Roads market, especially within a fully-developed park setting with immediate access to Interstate 64 and the Norfolk International Airport. LOCATION IN STABLE ECONOMIC AREA WITH GROWTH MOMENTUM Norfolk is part of the Hampton Roads region which is the second largest metro area between Washington, DC and Atlanta and among the 40 largest metro areas in the country. The Norfolk area is a $100 billion economy and has an unemployment rate of 3.1% which is well below the national average. While great strides have been made in recent years to diversify the economy including in the port and tourism sectors, the area is expecting accelerated growth in the defense sector with the 2018 budget features and plans to increase the US Navy from 275 to 355 ships. The area has also become widely recognized as one of the state s most dynamic hubs for entrepreneurship and innovation which will help stimulate job growth further as well. SECURED CASH FLOW WITH INCOME UPSIDE The portfolio has projected year 1 Net Operating Income of nearly $3.0 million and has seen a flurry of recent tenant activity from existing tenants and new prospects. Recent activity with existing tenants has included the renewals of Federal Express and Offix, the renewal and expansion of Alion Science and Technology Corporation, and the renewal and downsizing of GE Power. Additionally, WR Systems recently signed a lease to immediately backfill a suite that had been previously occupied by another defense contractor. Additional income is projected as rents increase and other available space is leased. OPPORTUNITY TO CAPITALIZE ON THE THRIVING CENTRAL NORFOLK SUBMARKET Central Norfolk features a vacancy rate of 6% which is approximately 25% lower than the overall South Hampton Roads vacancy rate of 8%. Major corporate users in the submarket outside of the subject portfolio include American Funds, Amerigroup, Beacon Health Options, Booz Allen Hamilton, CMA CGM, Maersk, Titan America, U.S. Government (Social Security Administration), Virginia Eye, and Zim American. New drivers for the submarket include retail developments (IKEA, Simon Premium Outlets, and a new mixed-use development within Lake Wright), major road improvements, and high priced investment sales for office, multi-family, and retail uses. 331,857 RENTABLE SQUARE FEET CENTRAL NORFOLK LOCATION 97.4% LEASED ACCELERATED GROWTH HIGHEST MILITARY CONCENTRATION OUTSTANDING CAMPUS ENVIRONMENT

5 CLOSE-UP AERIALS NORFOLK COMMERCE PARK I NORFOLK COMMERCE PARK IV NORFOLK COMMERCE PARK III

6 BUILDING I EXCLUSIVE SALE CONTACT J. SCOTT ADAMS, CCIM Regional President, Mid-South Affiliate Offices scott.adams@cbre-norfolk.com LOCAL MARKET LEASING CONTACTS MATTHEW L. WILBRICHT Senior Vice President matt.wilbricht@cbre-norfolk.com PATRICK K. MUGLER Executive Vice President pat.mugler@cbre-norfolk.com BUILDING III FINANCING CONTACT JOHN C. RICHARDS First Vice President john.richards@cbre-norfolk.com UNDERWRITING CONTACT MICHAEL ETTEL michael.ettel@cbre-norfolk.com BUILDING IV Hampton Roads 2018 CB Richard Ellis of Virginia, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk.