CROSS CREEK AT LAKE BOONE L AK E BOO N E A RE A 8.18-ACRE MIXED-USE DEVELOPMENT OPPORTUNITY ADJACENT TO UNC REX HOSPITAL CROSS CREEK AT LAKE BOONE 1

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1 CROSS CREEK L AK E BOO N E A RE A 8.18-ACRE MIXED-USE DEVELOPMENT OPPORTUNITY ADJACENT TO UNC REX HOSPITAL 1

2 COURT LANDMARK DRIVE EXECUTIVE SUMMARY THE INVESTMENT OPPORTUNITY 8.18-acre development opportunity adjacent to UNC REX Hospital with income potential UNC REX HOSPITAL Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a North Carolina licensed real estate broker ( HFF ), has been retained as the exclusive sales representative for Cross Creek at Lake Boone, a +/ acre residential or commercial development opportunity with short-term income potential in the highly central, quickly urbanizing Lake Boone corridor. Anchored by the 665-bed UNC REX Hospital, a major regional economic engine with 5,400 employees, the Lake Boone area benefits from exceptional proximity to numerous high-growth employment centers within a 10 minute drive such as Downtown Raleigh, North Carolina State University and affiliated Centennial Campus, North Hills/Midtown Raleigh, Crabtree Valley, and Weston Parkway. INVESTMENT SUMMARY ADDRESS Landmark Drive and Cross Creek Court Raleigh, NC WAKE COUNTY PIN Part of MUNICIPALITY City of Raleigh GROSS ACREAGE (APPROX.) 8.18 acres FRONTAGES (APPROX.) 304' Landmark Drive APPROVED REZONING PETITION Z REMAINING ENTITLEMENTS (ON NORTHERN 18 ACRES) ZONING CURRENT USAGE AVAILABILITY PRICING 550 residential units and 72,555 SF commercial (GFA) OX-4-CU Part of the Villages of Lake Boone Trail (1970s vintage) apartment community Available immediately Unpriced Cross Creek at Lake Boone has favorable OX-4-CU zoning and is part of a 34-acre redevelopment that is approved for up to 800 residential units and 100,000 SF of commercial space, with entitlements for 555 units and 72,555 SF remaining for the northern 18 acres combined. Phase I of this redevelopment is already underway at the corner of Lake Boone Trail and Landmark Drive and includes a Panera Bread, a 245-unit high-density surface-parked multifamily project (TriBridge/Bluerock), and a signalized intersection. Located adjacent to UNC REX Hospital, the Property is located along an invaluable connector between Lake Boone Trail and Blue Ridge Road, which provide direct access to I-40/Wade Avenue, I-440, and Glenwood Avenue/Highway 70. The Property includes a man-made pond that has been drained with jurisdictional boundaries established and an existing Cross Creek Court roadway that could be preserved. Additionally, the Property can generate short-term cash flow from 64 units (on the 8.18 acres) within the existing 1970s vintage apartment community. 2

3 CAROLINA COUNTRY CLUB $600,000-$5M SINGLE-FAMILY HOMES DOWNTOWN RALEIGH 45,000+ EMPLOYEES NC State Capitol, Red Hat HQ, Citrix, Duke Energy, Wells Fargo CAMERON VILLAGE 540,000 SF Harris Teeter, The Fresh Market, numerous boutique retailers CENTENNIAL CAMPUS (public-private partnership) 4,000+ EMPLOYEES NC STATE UNIVERSITY 34,000+ STUDENTS 8,500+ FACULTY/STAFF SOJOURN LAKE BOONE 283 units (completed in 2016) WALTONWOOD SENIOR LIVING 182 units (opening in mid-2017) LAKE BOONE SHOPPING CENTER Starbucks, Chick-fil-A, Food Lion MARTIN MAGNET MIDDLE SCHOOL 9/10 RATING WHOLE FOODS RITE AID 440 LAKE BOONE TRAIL 33,000 VPD 118,000 VPD 62,000 VPD MARKETPLACE Which Wich, Buffalo Brothers, Guacasa, Bottle Revolution, Body Bliss Yoga, Salonspace VILLAGES OF LAKE BOONE REDEVELOPMENT Leigh House (245-unit TriBridge/Bluerock development), Panera, and CVS 40 UNC REX HOSPITAL 665 BEDS BLUE RIDGE ROAD BLUE RIDGE ROAD 25,000 VPD 3

4 PHASE I UNDERWAY FOR COMPLETION Phase I of this redevelopment is already underway at the corner of Lake Boone Trail and Landmark Drive and includes the 245-unit Leigh House high-density surface-parked multifamily project (TriBridge/ Bluerock), standalone retail (Panera Bread and CVS), and a signalized intersection. LEIGH HOUSE (245 UNIT APARTMENT UNDERWAY FOR MID-2017 COMPLETION) PANERA, CVS REMAINING MIXED-USE ENTITLEMENTS RESIDENTAL AND COMMERCIAL SPACE Based on the development s 2013 rezoning approval, the original 34-acre area had approval for 800 residential units and 100,000 SF of commercial space, while future redevelopment on the northern 18 acres have in-place entitlements for 555 remaining units and 72,555 SF of commercial. Accordingly, Cross Creek at Lake Boone is well-positioned for high-density residential or commercial development in this high-growth corridor. 4

5 LAKE BOONE CORRIDOR ESTABLISHED MEDICAL CORRIDOR WITH BURGEONING RESIDENTIAL AND RETAIL GROWTH Anchored by the 665- bed UNC REX Hospital - the main campus of the UNC REX Healthcare System - the Lake Boone corridor enjoys a significant concentration of state-of-the-art medical office facilities and a growing residential and retail appeal. MARKETPLACE SOURCE: COSTAR 57,000+ patients a year (UNC REX Hospital) 2.1 MSF medical-focused office (Lake Boone area) immediate retailers, new multifamily units, restaurants, and including underway service providers, Leigh House including underway Panera and CVS : DEMOGRAPHICS RADIUS 1-MILE 3-MILE 5-MILE 2016 POPULATION 8,098 72, ,270 CENSUS POPULATION (2000) 6,644 53, ,572 HISTORICAL POPULATION CAGR ( ) 1.3% 2.1% 1.7% AVG HOUSEHOLD INCOME $93,526 $96,967 $85,293 % HOUSEHOLD INCOME OVER $100, % 31.00% 27.50% AVG. FAMILY INCOME $126,714 $140,988 $118,060 PER CAPITA INCOME $43,525 $41,607 $38,159 MEDIAN AGE MEDIAN HOME VALUE $278,323 $348,211 $274,949 MEDIAN AGE OF HOMES (YEARS) SOJOURN LAKE BOONE SOURCE: COSTAR LEIGH HOUSE SOURCE: TRIBRIDGE 5

6 AT LAKE BOONE investment advisors GLENLAKE OFFICE PARK PRA Health Sciences, Principal Financial, Ernst & Young, State Farm, Pepsi Bottling CRABTREE VALLEY MALL 1.3 MSF REGIONAL RETAIL DESTINATION Belk, Macy s, Barnes & Noble, Pottery Barn, McCormick & Schmick s, Apple NORTH HILLS 850,000 SF RETAIL, 1 MSF OFFICE, 1,520+ APARTMENTS Captrust Financial Advisors, Bank of America, First Citizens Bank JUSTIN GOOD Managing Director jgood@hfflp.com 118,000 VPD JEFF GLENN Managing Director jglenn@hfflp.com ALLAN LYNCH Director alynch@hfflp.com GLENLAKE GARDENS $350K-$500K TOWNHOMES (BUILT 2013) 440 analysts SARAH GODWIN Associate sgodwin@hfflp.com GEORGE SCHUBERT Real Estate Analyst gschubert@hfflp.com UNC REX HOSPITAL 665 BEDS LEIGH HOUSE (245-unit TriBridge/Bluerock development), Panera, and CVS debt & structured financing TRAVIS ANDERSON Senior Managing Director tanderson@hfflp.com BRENT BOWMAN Director bbowman@hfflp.com ROGER EDWARDS Director redwards@hfflp.com CORY FOWLER Associate Director cfowler@hfflp.com LAKE BOONE TRAIL 33,000 VPD This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. The recipient ( Recipient ) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient s employees, agents and consultants (collectively, the need to know parties ) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. CROSS The Recipient CREEK and the AT need LAKE to know BOONE parties agree to 6keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.