COVINGTON AT IMPERIAL CENTER RARE 8.03-ACRE INFILL MULTIFAMILY DEVELOPMENT OPPORTUNITY IN THE HEART OF IMPERIAL CENTER DURHAM, NC

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1 COVINGTON AT RARE 8.03-ACRE INFILL MULTIFAMILY DEVELOPMENT OPPORTUNITY IN THE HEART OF DURHAM, NC

2 DURHAM 70 EXECUTIVE SUMMARY THE INVESTMENT OPPORTUNITY L RESEARCH TRIANGLE PARK Morrisville UMSTEAD PARK 5 RALEIGH-DURHAM INTERNATIONAL AIRPORT 70 NORTH HILLS incredibly rare, 8.03-acre infill multifamily development site - Raleigh/Durham MSA CARY 4 4 HFF is pleased to offer for sale Covington at Imperial Center, a rare 8.03-acre parcel within the acclaimed Imperial Center of Durham. Covington is ideally situated between Raleigh and Durham, minutes from Research Triangle Park. The property therefore benefits from invaluable proximity and accessibility to the Triangle s major employment hubs. Covington also enjoys walking access to surrounding retail establishments as well as offices within job-heavy Imperial Center. Apex 64 1 Garner 70 PROPERTY DETAILS Address 5321 Page Road Durham, NC, Durham County PIN Municipality Water/Sewer Gross Acreage (approx.) 8.03 Zoning Max Height 145' Multifamily Entitlements Site Conditions Pricing City of Durham City of Durham Water - Durham County Sewer MU(D), Compact Neighborhood Up to 300 units Vacant Land with on site surface parking lot Unpriced SURROUNDING DEMOGRAPHICS RADIUS 1-MILE 3-MILE 5-MILE 2017 Population 3,709 19, ,631 Census Population (2000) 2,5 11,714 74,298 Historical Population CAGR ( ) 7.7% 9.0% 5.6% Avg Household Income $86,183 $95,560 $101,783 Median Household Income $77,131 $87,845 $90,259 Per Capita Income $47,594 $44,054 $44,477 Median Age % Bachelors Degree or Higher 66.8% 67.2% 63.9% % HH Incomes over $100,000 32% 41% 42% Source: Regis 2 EXECUTIVE SUMMARY

3 RDU INTERNATIONAL AIRPORT 6 minute drive 5 92,000 VPD DOWNTOWN RALEIGH 20 minute drive SHERATON IMPERIAL HOTEL & CONVENTION CENTER 190,000 VPD PAGE ROAD - 15,000 VPD IQVIA (Formerly Quintiles) 2.5+MSF office/flex DOWNTOWN DURHAM 12 minute drive SLATER ROAD 3

4 INVESTMENT HIGHLIGHT A PREMIER BUSINESS PARK IN THE TRIANGLE Imperial Center is Raleigh-Durham s largest premier business park with more than four million square feet of mixed-use space situated on 456 beautifully landscaped acres. Ideally positioned at the interchange of I- and I-5, Imperial Center offers unparalleled access to the area s main economic drivers, including world-renowned Research Triangle Park and the RDU International Airport. As a result, the park attracts the region s top companies including IQVIA, EMC Corporation, Biogen, BB&T, Pfizer, Fidelity Investments, LabCorp and Zoetis many of which have a long-standing history at the park. IQVIA, the world's largest provider of drug development services to pharmaceutical and life sciences companies, is headquartered in a state-of-the-art, 252,000 square foot office building at the primary entrance to Imperial Center highlighting the prestigious reputation of the park. In addition to the ideal location and prominent tenant roster at the park, Imperial Center offers a market-leading amenity package including various dining options, multiple retail destinations, four name brand hotels, and a host of health & fitness amenities, all of which are immediately accessible to the Covington resident. Notable retail centers include the Shops at Imperial Point and the Shiloh Crossing Retail Center which collectively offer a Starbucks, Mez Contemporary Mexican Restaurant, Page Road Bar & Grill, Jimmy John s, Bruegger's Bagels, Sam s Club, Walmart, and a FedEx Office store. Imperial Center also includes a full-service Fitness Connection gym and well-maintained jogging trails that run throughout the park. With high-occupancy, dense office surrounding the site alongside a market-leading amenity package, the Covington at Imperial Center presents itself as a highly quantifiable living destination for the Imperial Center/RTP employee or anyone desiring a short commute to Raleigh, or Durham. 'S INCREDIBLE HISTORICAL PERFORMANCE OCCUPANCY ( ) % 91.1% 90.9% 94.6% 91.7% 99.1% 98.5% 98.9% NOTABLE TENANTS AT 4 EXECUTIVE SUMMARY

5 INCREASINGLY URBAN INFILL LOCATION The RTP/I- submarket is experiencing unprecedented economic growth resulting in increased urbanization of the area. Historically recognized as a suburban office hub, the RTP/I- submarket boasts a development pipeline largely made up of office, retail and mixed-use projects that will further amenitize the area and position the submarket as a true urban infill location. RTP/I- SUBMARKET DEVELOPMENT PIPELINE While traditional suburban office parks are characterized by sprawling layouts with limited nearby amenities, Covington at Imperial Center offers close proximity to not only vast retail and restaurants options, but over 2.5MSF of office space within a 10-minute walk. Given the additional future development in the area, this site is poised for long-term success. N ,216 APARTMENTS/TOWNHOMES WATKINS ROAD IMPROVEMENT 08 OFFICE SF MIXED-USE HOSPITALITY MULTIFAMILY OFFICE/FLEX RETAIL OTHER 54 MCCRIMMON PARKWAY EXTENSION (U/C) 364,000 25, RETAIL SF RALEIGH-DURHAM INTERNATIONAL AIRPORT LAKE CRABTREE HOTEL ROOMS UMSTEAD STATE PARK 175,000 MIXED-USE SF NO. PROJECT NAME 1 Republic Flats Davis Drive & Hopson Road 2 Davis Park East Hopson Road 3 Churchill Hall Page Road & S Miami Blvd DEVELOPER PRODUCT TYPE DEVELOPMENT SIZE STATUS COMMENTS Pollack Shores Multifamily 330 Multifamily Units First units delivered / 1Q 2018 Lease-Up Davis Development Tri Properties and Principle Real Estate Investors Mixed-Use Mixed-Use 1,414 Multifamily Units 201 Townhomes 120,000 SF of Mixed-Use Development 150,000 SF of Office 25,000 SF Medical Office Building 5 Street-Level Retail Outparcels Proposed/ 4 Limited Service Hotel Crown Realty Hospitality Proposed South Miami Blvd & Old Page Road 5 Covington at Imperial Center Page Road & Slater Road TBD Multifamily Up to 300 units Proposed 6 Hilton Home2 Suites 1100 Shiloh Glenn Drive 7 Shiloh Park Slater Road, Imperial Center 8 Shiloh Crossing Lower Shiloh Way 9 Sorrell at Perimeter Park Slater Road & Carrington Mill Blvd 10 INC Research BTS Carrington Mill Blvd 11 Perimeter Park - Six & Seven Carrington Mill Blvd 12 Wake Tech RTP Campus Paramount Parkway 13 Town Hall North McCrimmon Parkway & Harris Mill Road 14 Twin Lakes Center Davis Drive & Airport Blvd 15 Bainbridge Lake Crabtree 5005 Evans Road 16 Wake Competition Center Nova Drive & Aviation Parkway 17 Aerial Center Business Park 3000 Aerial Center Parkway 18 Element RDU 804 Airport Blvd 19 Woodfield Weston Corners Weston Parkway & Evans Road RevPar Management Scannell Properties Hospitality 99 Hotel Rooms Office/Flex 138,000 SF of Office 61,000 SF of Flex Proposed/ Confidential Multifamily 318 Multifamily Units Proposed Davis Development Trinity Capital Advisors and Starwood Capital Trinity Capital Advisors and Starwood Capital Multifamily 262 Multifamily Units Office 214,000 SF of Office Office - Educational Facility 2 Office Sites Totaling 536,000 SF 109,000 SF Educational Facility Proposed/ Lennar/CalAtlantic Multifamily 116 Townhomes Delivered/ Leyland Alliance Retail 5 buildings with 173,000 Proposed SF of Retail, Restaurant, and Office Bainbridge Multifamily 200 Multifamily Units Ammons Building Corporation (Jeff Ammons) Recreational 30-acre indoor and outdoor multi-sport facility Proposed Scheduled to deliver 2Q ,000sf flex space under construction, office is prelease deal First units deliver 1Q 2018 Class A office space that will serve as the new headquarters for INC Research. Scheduled to deliver in Relias Learning anchoring Perimeter Six., to deliver 1Q Perimeter Seven currently on market for BTS. Plans for the 94-acre site include up to 10 educational facilities Wegmans will anchor the retail development. A second phase could include 12 acres of additional retail and a possible residential component Scheduled to deliver early 2018 $15 million building project will include two ice skating rinks, turf soccer fields and championship-level volleyball and gymnastics facilities Sentinel Office - Proposed 4.83-acre site with additional office development proposed OHM Hotels Hospitality 100 Hotel Rooms Woodfield Investments Multifamily 308 Multifamily Units Scheduled to deliver 2Q

6 298 UNIT CONCEPTUAL PLAN Studio Unit Unit A1 Unit B1 Unit Legend Unit B2 Unit B3 Unit C1 Studio Unit Unit A1 Unit B1 Unit B2 Unit B3 Unit C1 ACCRETIVE IN-PLACE ENTITLEMENTS Covington at Imperial Center is currently zoned for up to 300 multifamily units on site. With this, developers will have a much shorter lead time for their respective development. The site is also entitled for up to 8,700SF of office development, as well as up to 10,000SF of retail space. According to the approved Development Plan, at least one building must be vertically integrated, meaning office/retail square footage must be included in at least one building within the project. TRASH TRASH COVINGTON MIXED-USE MINIMUM AND MAXIMUM DENSITY REQUIREMENTS CLUB MINIMUM DEVELOPMENT MAXIMUM DEVELOPMENT Multifamily 150 units 300 units Office - 8,700SF Retail 1,200SF 10,000SF TRASH 6 EXECUTIVE SUMMARY

7 WESTERN WAKE FWY Sam s Club Walmart SHILOH CROSSING RETAIL CENTER - Bruegger s Bagels - Wayback Burger - Neo Japan - Verizon Wireless - Great Clips MIAMI BLVD - 25,000 VPD TRIANGLE EXPRESSWAY - Panera Bread - Chipotle - Firehouse Subs - Mezeh Mediterranean Grill McDonald s : First Citizens Bank 5 MINUTE WALK Arby s Page Road Grill Bojangle s Quizno s Tropical Smoothie Cafe Wok N Grill Serena Gastropub Randy s Pizza Zaxby s Chelsea Cafe BB&T State Employees Credit Union PAGE ROAD - 15,000 VPD Jimmy John s FedEx Starbuck s Mez Contemporary Mexican Coastal Federal Credit Union RETAIL CONNECTIVITY An undoubtedly strong attribute of the Covington site is its immediate walkability to the area s desirable retail. An amenity serving both Imperial Center and RTP, the immediate area retail has the ability to serve both the Imperial Center employee, and/or the Covington resident. The Miami Boulevard/Page Road intersection has flourished as a walkable, eclectic retail corridor that will soon offer new restaurant opportunities within the Churchill Hall development such as Chipotle, Panera Bread, and Firehouse Subs. Each of these destinations is located within a 5-minute walk from the front door of Covington at Imperial Center. 7

8 WILLIAM B. UMSTEAD STATE PARK 5,599 acres DOWNTOWN RALEIGH 20 minute drive RDU INTERNATIONAL AIRPORT WOODLAKE CENTER 812,000+SF industrial park PERIMETER PARK 3.0M+SF office/flex 5 92,000 VPD SHERATON IMPERIAL HOTEL & CONVENTION CENTER 2.5+MSF office/flex 190,000 VPD PAGE RD CHURCHILL HALL 150,000sf office; 25,000sf medical office (proposed) DOWNTOWN DURHAM 12 minute drive DOUBLE TREE HOTEL SLATER RD Chipotle Firehouse Sub s Panera Bread investment advisors analysts structured finance JUSTIN GOOD Managing Director jgood@hfflp.com JEFF GLENN Managing Director jglenn@hfflp.com ALLAN LYNCH Senior Director alynch@hfflp.com CAYLOR MARK Director cmark@hfflp.com JOHN MIKELS Real Estate Analyst jmikels@hfflp.com SARA WAGMAN Real Estate Analyst swagman@hfflp.com TRAVIS ANDERSON Senior Managing Director tanderson@hfflp.com ROGER EDWARDS Senior Director redwards@hfflp.com Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a North Carolina licensed real estate broker ( HFF ). Seller will be selling the Property on an as-is, where is basis and will not be making any representations or warranties regarding the condition or suitability of the property. 201 NORTH TRYON STREET SUITE 10 CHARLOTTE, NORTH CAROLINA SIX FORKS ROAD SUITE 876 RALEIGH, NORTH CAROLINA HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described 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, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on