FRANCIS T. QUINN, JR. President Raleigh +1 919 582 3150 LAND FOR SALE Master Planned Community Multifamily Residential Commercial DAVIS PARK EAST RESEARCH TRIANGLE PARK COLLIERS INTERNATIONAL P. 1
Premier Urban Mixed-Use Development Opportunity Research Triangle Park Minutes to Raleigh Durham International Airport > 12,000 RTP Employees > Annual revenue of $82 billion Davis Drive > 2,000 RTP Employees > Largest facility built by the agency, covering nearly 1.2 million SF > 3,500 RTP Employees > $5.2 trillion, Assets under administration DAVIS PARK EAST NC Railroad > 2,500 RTP Employees > Merged with IMS Health, generated $7.2 billion in revenue in 2015 Hopson Road Miami Blvd >> Davis Park East a 93 acre fully entitled land tract, is in a blue chip location adjacent to Research Triangle Park (The Park), where there are significant barriers to entry for mixed-use development. >> The property is one of the largest remaining land parcels for mixed-use development adjacent to Research Triangle Park. SOLD >> This world class land investment opportunity is well positioned with locational attributes and an economic basis that will enable the buyer to experience a high level of value creation. COLLIERS INTERNATIONAL P. 2
Master Site Plan As Approved by Durham > > During October 2016, the Ownership closed on their first pod of approximately 14 acres of land. > > The land parcel was conveyed to a National Multifamily Builder-Developer with plans to commence construction on a 262 unit luxury garden style apartment community during the first quarter 2017. > > The property continues to attract attention from other multifamily builders, major national homebuilders and commercial enterprises. SOLD - 76,000-95,000 SF 20,000-25,000 SF DISCLAIMER: No warranty or representation, express or implied, is made to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by principals. COLLIERS INTERNATIONAL P. 3
KEYSTONE PARK PARK PLACE IMPERIAL CENTER PARK PERIMETER PARK COLLIERS INTERNATIONAL P. 4 Miami Blvd N.C. Railroad DAVIS PARK EAST Hopson Road Church St Ext. Davis Drive Triangle Expressway
IMPERIAL CENTER PARK Miami Blvd PARK PLACE Church St. Ext EXIT 280 DAVIS PARK EAST KEYSTONE PARK KEYSTONE HOMES Hopson Road Davis Drive Triangle Expressway COLLIERS INTERNATIONAL P. 5
PARK PLACE S. Miami Blvd DAVIS PARK EAST Davis Drive Keystone Park Dr. Triangle Expressway Hopson Road KEYSTONE PARK COLLIERS INTERNATIONAL P. 6
Property Details The Master Site Plan was approved on 9/18/09 in order to implement the approved zoning/development plan, density and site layout. 1. Zoning: OI (D)-Office & Institutional, allowing 1,963 units of apartment, townhouse, and 120,000 square feet of retail and office use. 2. Land Use Medium High Density: allows multiple units and unit types. The zoning is consistent with this Land Use. 3. Sanitary Sewer: an existing 12 Sanitary Sewer Line is located in Davis Drive. This 12 line is shown as being extended into the project on the Utility Sheet of the Master Site Plan. 4. Waterline: a 12 Waterline extends from the existing 12 line in Merrion and Keating Streets that stub from Davis Drive. An existing 16 Waterline exists in Hopson and also shown as extending into the site. 5. Stormwater: the site is within the Cape Fear River Basin. The site was submitted as a Master Site Plan and a key benefit is that the site is grandfathered under the previous adopted storm water regulations. 6. Parks and Recreation: community open spaces, parks, or other natural areas that are committed were conditioned at the time of the Rezoning and Development Plan. 7. Roads & NCDOT: the ingress/egress points are annotated on the Site Plan. 8. Mass Transit: a future Triangle Transit Authority (TTA) Rail and Rail Station was proposed to be located contiguous to the northeast corner of Davis Park. The funding and plans for the mass transit do not affect the approved zoning or master site plan for this site. Durham Farmers Market 9. Impact Fees: are based on the number of units, the linear feet of frontage, the linear feet of streets, meter sizes, pipe sizes and other factors. See Durham County regulations. COLLIERS INTERNATIONAL P. 7
Property Details 10. Utilities: electric, gas, telephone and cable are all available to the site. Electric is available through Duke Energy; Gas is available through PSNC; Telephone is available through Bell South and Cable is available through Time Warner. Existing utilities are all located along the existing roadways. 11. Survey: Boundary: a boundary survey has been completed and is shown as the Existing Boundary Exhibit sheet in the Master Site Plan. An updated official ALTA survey dated 6/21/2011 has been completed. Topographical: a topographical survey has not yet been performed and was not required at the time of a Master Site Plan. The topography shown on the Existing Conditions of the Master Plan is built from LIDAR. Typically LIDAR is very close to the actual topography found on site. Fidelity Campus Tree Survey: the required 18 and above DBH tree survey was performed. 12. Soils Investigation: a Geotech report prepared by TAI and Associates, PLLC, was completed on the site. Hilton at Duke IBM COLLIERS INTERNATIONAL P. 8
Research Triangle Park The Heart of a Technology-Driven Economy RTP is currently undergoing exciting redevelopment and reimagination including: 100 acres purchased for $17M for RTP Village Center, new tract provides space for 6 million SF Purchased acreage creates the potential of 150,000 new jobs, residential units, retail and hospitality developments $2 Billion Urban Makeover coming in the next 3-5 years. The Frontier, which opened in December 2014, is the first park renovation. This 120,000 SF building is the largest open innovation center in the nation. Funding received for planning the commuter rail project that would extend from Durham to Garner through RTP RTP Village Center Renderings Source: The Research Triangle Park COLLIERS INTERNATIONAL P. 9
Research Triangle Park Research Triangle Park (RTP) is the leading and largest high technology research and science park in North America. Founded in 1959, this 7,000-acre namesake for the entire Triangle region is two miles wide and eight miles long, based in Durham with an extension now spilling into Wake County toward Cary and Morrisville. Reichhold, Inc./IEM Just four miles from Downtown Durham and encompassed on three sides by the City of Durham, RTP was originally named for its affiliation with three major research universities: Duke University in Durham, the University of North Carolina at Chapel Hill, and North Carolina State University in Raleigh. This part of Durham is approximately equidistant between Raleigh and Chapel Hill. Originally envisioned by UNC s Howard W. Odum and fostered by the administration of Durham native Governor William Umstead, the Park was developed by the Research Triangle Foundation in 1959 and now includes over 170 companies, 42,000 full time employees, and 10,000 contract workers. The three original universities are joined by Durham s North Carolina Central University (located less than two miles from RTP), playing a major role as home to the Biomanufacturing Research Institute & Technology Enterprise (BRITE) Center for Excellence. To Hwy 54/55 Lodging & Dining Cluster Today, Reichhold, RTP Inc./IEM is surrounded by a variety of other Durham business and corporate parks populated by pharmaceutical, microelectronic, biotechnology, textile, and telecommunications, businesses to name a few. Research Triangle Park is not a city, but it has a special Durham postal substation Research Triangle Research Park (RTP) Triangle is the leading and Park, NC 27709. It exists largest in a high special technology county research district, and science park serviced by Durham utilities. in North America. Founded in 1959, this 7,000-acre namesake for the entire Triangle region is two miles wide and eight miles long, based in Durham with an extension now spilling into Wake County toward Source: Durham Convention Cary and & Visitors Morrisville. Bureau Just four miles from Downtown Durham and encompassed on three sides by the City of Durham, RTP was originally named for its FRANK QUINN 919 affiliation 582 3150with three major research universities: Duke University in Durham, the University of North Carolina at Chapel Hill, and North Carolina Medicago Grifols, Inc National Institute of Statistical Sciences Fidelity Investments Where great innovations happen The Research Triangle Park County Durham City RTP Nortel Networks/ Avaya Lodging & Dining Cluster (located less than two miles from RTP), playing a major role as home to the Biomanufacturing Research Institute & Technology Enterprise (BRITE) Center for Excellence. Today, RTP is surrounded by a variety of COLLIERS INTERNATIONAL P. 10 F t s 1 ( O f e
Research Triangle Park Fast Facts MAJOR EMPLOYERS IN THE TRIANGLE 10,000 + EMPLOYEES Duke University and Medical Center University of North Carolina IBM SAS Institute 2,500+ EMPLOYEES Durham Public Schools Blue Cross & Bule Shield of NC Cisco Systems Verizon RTI International PPD Teleflex Medical Lenovo Cree 1,000+ EMPLOYEES Fidelity Investments Quintiles Transnational Environmental Protection Agency Lowes Foods Kroger Food Lion RBC Center UPS Harris Teeter First Citizens Bancshares Longistics Wake Technical Community College Lowes Town of Cary ACS Target Wal-mart Waste Industries Source: The Research Triangle Park >> 50,000 High-tech employees >> 50% Associates degree or higher >> 47% Bachelors degree or higher >> 18% Graduate degree or higher >> 220 Companies >> 245 start-ups >> 3,256 patents >> 1,970 trademarks COLLIERS INTERNATIONAL P. 11
Triangle Area Market Information Demographics POPULATION 1 MILE 3 MILES 5 MILES 2010 Total Population 989 13,561 83,470 2016 Population 2,009 18,949 104,483 2021 Projected Population 2,459 22,536 120,626 2016 Male Population 49.7% 48.9% 48.0% 2016 Female Population 50.3% 51.1% 52.0% 2016 Median Age 32.1 33.1 34.1 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2016 Total Households 1,040 8,362 44,710 2021 Total Households 1,268 9,930 51,270 2016-2021 Annual Rate 4.04% 3.5% 2.78% 2016 Average Household Size 1.93 2.27 2.33 COLLIERS INTERNATIONAL P. 12
Triangle Area Market Information Demographics MEDIAN HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2016 Median Household Income $66,805 $78,580 $77,055 2021 Median Household Income $75,881 $83,706 $83,843 2016-2021 Annual Rate 2.58% 1.27% 1.70% AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2016 Average Household Income $75,457 $88,827 $96,326 2021 Average Household Income $83,026 $96,761 $105,091 2016-2021 Annual Rate 1.93% 1.73% 1.76% PER CAPITA INCOME 1 MILE 3 MILES 5 MILES 2016 Per Capital Income $41,473 $38,381 $40,901 2021 Per Capital Income $45,456 $41,751 $44,305 2016-2021 Annual Rate 1.85% 1.70% 1.61% COLLIERS INTERNATIONAL P. 13
Triangle Area Market Information Single Family/Townhome Local Market Update September 2016 A RESEARCH TOOL PROVIDED BY TRIANGLE MLS Entire Triangle Region + 4.9% + 10.8% + 5.5% Change in New Listings September Change in Closed Sales Change in Median Sales Price Year to Date 2015 2016 + / 2015 2016 + / New Listings 3,597 3,774 + 4.9% 36,374 37,769 + 3.8% Closed Sales 2,869 3,179 + 10.8% 25,953 28,448 + 9.6% Median Sales Price* $219,900 $232,000 + 5.5% $218,000 $230,833 + 5.9% Average Sales Price* $253,492 $264,515 + 4.3% $255,946 $269,212 + 5.2% Total Dollar Volume (in millions)* $726.9 $1,003.6 + 38.1% $6,636.3 $7,817.0 + 17.8% Percent of Original List Price Received* 96.8% 97.6% + 0.8% 96.7% 97.6% + 0.9% Percent of List Price Received* 98.1% 98.8% + 0.7% 98.0% 98.7% + 0.7% Days on Market Until Sale 49 44-10.2% 59 50-15.3% Inventory of Homes for Sale 10,827 9,091-16.0% -- -- -- Months Supply of Inventory 3.9 3.0-23.1% -- -- -- * Does not account for seller concessions. Activity for one month can sometimes look extreme due to small sample size. September 2015 2016 Year to Date 2015 2016 3,597 3,774 2,869 3,179 36,374 37,769 25,953 28,448 + 4.9% New Listings + 10.8% Closed Sales + 3.8% New Listings + 9.6% Closed Sales Change in Median Sales Price from Prior Year (6-Month Average)** Entire Triangle Region a + 12% + 10% + 8% + 6% + 4% + 2% 0% - 2% - 4% - 6% - 8% 1-2008 7-2008 1-2009 7-2009 1-2010 7-2010 1-2011 7-2011 1-2012 7-2012 1-2013 7-2013 1-2014 7-2014 1-2015 7-2015 1-2016 7-2016 ** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. Current as of October 10, 2016. All data from Triangle Multiple Listing Service, Inc.. Powered by ShowingTime 10K. COLLIERS INTERNATIONAL P. 14
Triangle Area Market Information Multifamily Strength of the Multifamily Market Showing No Signs of Slowing Key Takeaways > > At the close of the second quarter of 2016, The Raleigh-Durham multifamily market remained fundamentally solid. While absorption rates have been consistent and rents continue to grow, the market s supply and demand have also remained steady. > > Average asking rents were reported at $1,018 per unit, providing a 4.2% growth rate per year and the average rate per square foot was $1.06. Concession rates were up at the end of the quarter, reporting at 2.9% throughout the overall Triangle market. Market Indicators Relative to prior period VACANCY EFFECTIVE RENTS ABSORPTION Raleigh-Durham Q2 2015 Raleigh-Durham Q2 2016 > > Multifamily demand is solid in the Raleigh-Durham region. There were 7,302 units under construction at the close of Q2 2016. Total occupancy rates were strong at 94.7%. CONSTRUCTION Market Overview As of May 2016, the Triangle unemployment rate was reported at 4.5% down from 4.8% that was reported in the previous month of April. The Raleigh-Durham market has been adding approximately 2,000 jobs per month and have added 10,300 jobs since the beginning of 2016. Raleigh was recently named among the top ten large cities in the country for economic growth while new and expanding companies remain attracted to the area by its well-educated labor pool. Major employers such as MetLife and Deutsche Bank continue to create more jobs in there area. MetLife recently created more than 1,000 jobs at its new office in Cary. The Raleigh-Durham region ranks as one of the best value propositions for investors in commercial real estate in the country. So far in 2016, investors of commercial real estate properties in the Triangle have bought and sold nearly $1.36 billion in commercial properties. Summary Statistics Q2 2016 Total Inventory (Units) Raleigh Durham Market 134,161 Vacancy Rate 5.1% Total Occupancy Rate 94.9% Absorption (Units) Under Construction (Units) Deliveries (Units) 1,076 7,613 976 Cap Rate 5.6% Effective Rents Per Unit Per Month Average Per Unit $989 Concessions 2.5% Percent Growth per Year 2.9% Average Per SF $1.03 Source: Colliers RDU Research COLLIERS INTERNATIONAL P. 15
Triangle Area Market Information Hotel Key Takeaways > > The Raleigh-Durham hotel market remained fundamentally solid. Average price per unit for the prior 12 months through Q3 16 is $143,947, with a cap rate of 8.5%. Historical Market Performance Year-over-year chg: -77% United States Actual Chg vs Prior Actual Chg vs Prior Volume (mil) Prior 12 mos (thru Q3 '16) $86.2-80% $35,512.9-21% Q3 '16 $0.0 % $7,649.4 8% No. of props Prior 12 mos (thru Q3 '16) 7-72% 1,626-30% Q3 '16 0 % 321-21% Total units Prior 12 mos (thru Q3 '16) 1,123-71% 219,396-30% Q3 '16 0 % 46,536-6% Avg Price/unit Prior 12 mos (thru Q3 '16) $76,724-35% $144,081-9% Q3 '16 $0 % $153,999 % Avg Cap Rate (Yield) Prior 12 mos (thru Q3 '16) 8.6% unch 8.5% 30 bps Q3 '16 % N/A 8.4% 8 bps L Raleigh/Durham Price $ per unit Quartile Distribution Pricing Analysis Cap Rate (Yield) Quartile Distribution Bottom Bottom 25% Median Top 25% Top Bottom Bottom 25% Median Top 25% Top 22,348 45,907 58,140 69,853 134,581 10.3% 9.3% 8.2% 8.1% 8.1% United States 10,571 46,377 74,166 141,311 1,400,000 United States 13.4% 9.4% 8.5% 7.6% 2.9% Data based on prior 12 months. Data based on prior 12 months. Investment Activity Net Investment $ (mil) Capital Flows Buyer Types United States Source: Real Capital Analytics COLLIERS INTERNATIONAL P. 16
Triangle Area Market Information Office New Construction Projects Create Exciting Triangle Market Key Takeaways > > New construction projects that have reached ground-breaking status in the Triangle have created an enticing office environment in the third quarter of 2016. Commercial real estate developers and investors have become more assertive as demand for Class A office space has outpaced current construction of new buildings; and subsequently pushed vacancies to record lows > > Average Class A rents are reportedly $24.90 PSF. > > Vacancy rates remained steady at 7.2%, resulting in 1.4% decrease from the third quarter of 2015. Vacancy rates in the Triangle s suburban market fell to 7.7%, a 1.5% decrease from a year ago, which indicates that tenant demand is not only strong in the CBD markets, but across the region. Market Overview As of May 2016, the Triangle unemployment rate was reported at 4.5% down from 4.8% that was reported in the previous month of April. The Raleigh-Durham market has been adding approximately 2,000 jobs per month and have added 10,300 jobs since the beginning of 2016. Raleigh was recently named among the top ten large cities in the country for economic growth. The Raleigh-Durham region ranks as one of the best value propositions for investors in commercial real estate in the country. Market Indicators Relative to prior period VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE Summary Statistics Q3 2016 Regional Office Market Existing Inventory (Square Feet) Triangle Region Triangle CBD Triangle Suburban 81,351,968 12,322,127 69,029,841 Vacancy Rate 7.2% 4.8% 7.7% Change From Q3 2015 (basis points) YTD Absorption (Square Feet) Under Construction (Square Feet) Raleigh-Durham Q3 2015 Raleigh-Durham Q3 2016 1.4 0.5 1.5 1,293,306 69,467 1,223,839 2,500,537 701,000 1,799,537 Deliveries (Square Feet) Asking Rents Per Square Foot Per Year 26,000 0 26,000 Average Quoted $21.35 $26.40 $20.90 Change from Q3 2015 $0.86 $1.68 $0.96 Class A Rents $24.90 $28.20 $24.42 Source: Colliers RDU Research COLLIERS INTERNATIONAL P. 17
FOR SALE > LAND Master Planned Community Multifamily Residential Commercial DAVIS PARK EAST RESEARCH TRIANGLE PARK FRANCIS T. QUINN, JR. President Raleigh +1 919 582 3150 COLLIERS INTERNATIONAL P. 18