POTENTIAL EXPANSION

INVESTMENT SUMMARY

A CBRE National Partners Investment Opportunity

TRUE VALUE6736 Tilghman Street, Allentown, PA

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• SINGLE TENANT• 150,598 RSF• LEHIGH VALLEY• I-78 / US ROUTE 100 INTERCHANGE

6736 Tilghman Street | Allentown, PA

THE OFFERINGCBRE, Inc. (“CBRE”) has been retained by Ownership to arrange for the disposition of 6736 Tilghman Street located at the I-78 / US Route 100 Interchange in Allentown, Lehigh County, Pennsylvania (the “Property”). Positioned within the in-fill Iron Run Corporate Center in one of the Lehigh Valley’s most well leased warehouse/distribution locations, the Property affords optimal east-west and north-south accessibility via I-78 and I-476 respectively, each within three miles.

6736 Tilghman is 100% leased by True Value Company, which has occupied the Property since 2007. True Value owns and operates an adjacent 530,000 square foot regional distribution center, and has benefited from operating efficiencies, renewing its lease at the subject Property twice, continuing utilization as seasonal storage for bulk items.

Currently leased significantly below market rents achieved in comparable single-tenant bulk distribution buildings at this strategic interchange, 6736 Tilghman provides unique exposure to potential yield upside. A 15.4-acre site distinguishes the Property from its competitive set, providing potential for future building expansion or expansion of its already above-standard trailer storage capacity.

6736 Tilghman represents a rare opportunity to acquire a fully-leased, institutionally-maintained, functional, bulk warehouse/distribution facility in one of the I-78 / I-81 Industrial Corridor’s most desirable submarkets, complemented by unique layout flexibility and yield upside.

FINANCIAL SUMMARYOccupancy: 100%

Tenants: True Value Company (2013 Revenue $1.4 Billion)

Year 1 NOI: $640,299 ($4.25 PSF)

Market Rent: +/- $4.50 NNN

Projected Rental Rate Growth:

17.6% cumulative growth projected over the next five years (per CBRE Econometric Advisors)

PHYSICAL SUMMARYAddress: 6736 Tilghman Street, Allentown, PA 18106

Land Area: 15.4 acres

Building Size: 150,598 SF, potential expansion of ±55,000 SF

Year Built: 1975

Construction:Concrete masonry unit (CMU), steel panel and stone veneer exterior finishes

Building Dimensions: Depth: 334’ - 424’Width: 324’

Loading Configuration: Front loading Side rail loading (Inactive)

Clear Height: 21’

Loading: 16 Dock Doors / 1 Drive-In Door / 6 Rail Doors

Truck Court: ± 100’ - 120’

Trailer Parking: +/- 40 trailer positions (with potential expansion)

Car Parking: 17 spaces

Executive Summary •

INVESTMENT HIGHLIGHTS

CREDIT WORTHY TENANCY• The True Value cooperative represents independent retailer locations worldwide with

2013 revenue of $1.4 billion• As one of the world’s largest retailer-owned hardware cooperatives, True Value

represents independent retailer locations in over 60 countries with more than 2,500 associates

OPERATING EFFICIENCY – CONTINUED RENEWAL• True Value has renewed its lease at the Property twice, with the latest renewal in

December 2014• 6736 Tilghman is immediately adjacent to one of the company’s 13 regional

distribution centers and fulfills the DC’s need for additional out-of-season bulk storage for product ranging from large gas grills to bulk rock salt packages

YIELD UPSIDE• Current Net Operating Income of approximately $4.25/SF is significantly below

market rent, presenting a unique opportunity to capitalize on the Lehigh Valley’s surging leasing market

• Over a ten year span, asking rents at the I-78 / US Route 100 Interchange have averaged $4.56/SF NNN

FLEXIBLE DESIGN - EXPANSION CAPACITY• 15.4-acre site could accommodate building expansion of approximately 55,000

square feet, along with approximately 63 car parking spaces• Current impervious coverage below maximum ratio could also present an opportunity

to expand the Property’s already above-standard trailer parking capacity

FUNCTIONAL BULK WAREHOUSE DISTRIBUTION• Ample loading with 8,850 rentable square feet per door• T-5 / T-8 Lighting installed in 2011, with increased concentration in speed bay• EPDM Roof installed 2005, minimizing near-term capital exposure• Mechanical dock levelers, dock locks, lights, bumpers, and seals

ACCESSIBILITY• Within three miles of I-78 and I-476• 90 miles from the Ports of New York/ New Jersey• Within 200 miles of New York City, Philadelphia, Washington, DC, and Baltimore

EXCEPTIONAL LEASING FUNDAMENTALS• Direct Vacancy at the I-78 / US Route 100 Interchange of 1.6% as of year-end 2014

outpaces the overall Lehigh Valley (6.6%)• Average asking rents at this 28.8 million square foot concentration of industrial/flex

buildings have exceeded the overall Lehigh Valley market by 5.6% over the past 10 years

IRON RUN CORPORATE CENTER• The Property is positioned within one of the Lehigh Valley’s most established, mature

bulk warehouse/distribution and shallow bay parks which totals approximately 6.5 million square feet in 69 buildings

• 80% of inventory in the park features minimum clear heights of 24’ or lower, and 70% of the park was built out in the 1970’s/ 1980’s

• There are virtually no in-fill development pads with comparable proximity to the I-78 / US Route 100 Interchange, and the vast majority of lots are fully built out without expansion capability

LEHIGH VALLEY DEMAND• Total Bulk Net Absorption of 5 million square feet from 2013 - 2014 (represents 7.6% of total

bulk inventory)• One of the East Coast’s most active development locations, with 5.8 million square feet

delivered in 2014/2015 and 6.0 million square feet under construction - many current projects are either pre-leased or build-to-suit

• Over the past five years, absorption in the Lehigh Valley has totaled 10.1 million square feet, while only 6.7 million square feet of new bulk product has been delivered

6736 Tilghman Street | Allentown, PA

A T L A N T I CO C E A N

LakeErie

LakeOntario

Providence

Charlottesville

Ocean CIty

Washington, DCArlington Annapolis

Baltimore

Albany

Hartford

Pittsburgh Harrisburg Trenton

Dover

Wilmington

Newark

Yonkers

Rochester

Bu�alo

HarpersFerry

Lancaster

NiagaraFalls

New Haven

Syracuse

Allentown

Erie

New York

Philadelphia

Atlantic City

Scranton

Spring�eld

Worcester

Morgantown

Corning

York

Carlisle

Wilkes-Barre

Altoona

Reading

Binghamton

Bedford

Gettysburg

Concord

Boston

Portsmouth

Toronto

Hamilton

W E S T V I R G I N I A

P E N N S Y L V A N I A

V I R G I N I A

MARYLAND

DEL.

CONN.

N.J .

MASS.

O N T A R I ON E W Y O R K

N.H.VT.

90

81

88

80

79

390

17

90

80

76

76

7881

81

83

68

70

270

81

66

79

95

95

95

495

380

195

13

301

87

90

495

39584

84

64

29

99

86

91

84

30

30

476

8987

81

6

15

15

3381

5 0 M I L E S

PORT OF WILMINGTON

PORT OF PHILADELPHIA

PORT OF NEW YORK/ NEW JERSEY

PORT OF BALTIMORE

KEY DISTANCESPorts of NY/ NJ 90 milesPhiladelphia, PA 60 milesNew York City, NY 95 milesBaltimore, MD 150 milesWashington, DC 185 milesBoston, MA 310 miles

LOCATION HIGHLIGHTS

LOCATION HIGHLIGHTS• Lehigh Valley location affords unrivaled access to the

New York City Metropolitan Population of 19.8 million• 300 Mile radius includes 38 million people• 600 Mile radius includes 40% of US population• $1.1 Trillion in consumer expenditures within 600

Miles - projected to grow 9.1% over the next five years• FedEx & UPS Regional Distribution Hubs within close

proximity• Two class 1 railroads (Norfolk Southern and

Canadian Pacific) interchange at Bethlehem Intermodal

2.6 MILES

476

DISTANCES TO :

2.4 MILES

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Executive Summary •

TRUE VALUE

WACKER CHEMICAL CORP

ABC SUPPLY/ HERR’S

O’BRIEN’S MOVING & STORAGE

CELLULAR CONCRETE

WINHOLT/ LOGISTICS & DISTRIBUTION INC.

SYKES ENTERPRISES

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SUBMARKET AERIAL - IRON RUN CORPORATE CENTER

TILGHMAN STREET

6736 TILGHMAN STREET

BLUELINX

AMERICOLD

AMERICOLD

H.T. LYONS

LEHIGH VALLEYEXPRESS

INTERNATIONALBATTERY

CONTINENTAL

YOURWAYTRANSPORTATION

WAREHOUSESPECIALIST

SIGMA-ALDRICHCO.

NEOVIALOGISTICS

CARPENTER CO.

VALV-TECH, INC.ALLENTOWN CANDY

KNOLL

SAPPIFINE PAPER

CENTRAL ADMIXTURE/FLEXLINK

ATAS INT’L

ENERSYS

RUPP

SVIL

LE R

OAD

• MILL ROAD

SNOWDRIFT ROAD

ALLENTECH

VITRA

SANBOR / PMD

J. R. PETERS

PHOEBE SERVICES

LUTRON

RODALE

ANDESA

INSTITUTIONAL OWNERSHIP

Cohen Asset Management Liberty Property Trust

DCT Industrial Trust Oaktree Capital Management

DRA Advisors PennCap Properties

EIP Prologis

Exeter Property Group Seagis Property Group

High Street Equity Advisors Indcor

Industrial Income Trust (IIT) Welsh Property Trust

CAPITAL MARKET CONTACTS

NORTHEAST

Michael D. Hines Executive Vice President +1 610 251 5185michael.hines@cbre.comLicensed: PALicensed Salesperson: NJ

Brian Fiumara Senior Vice President +1 610 251 5164brian.fiumara@cbre.comLicensed: PA Licensed Salesperson: NJ

Brad A. Ruppel Senior Associate +1 610 251 5139brad.ruppel@cbre.comLicensed: PA, DELicensed Salesperson: NJ

For more information, please visit our website at

www.cbremarketplace.com/6736Tilghman

DEBT & EQUITY FINANCE

James Gunning Executive Vice President+1 201 712 5855james.gunning@cbre.com

Offering integrated real estate capital markets solutions from strategy to execution—delivered by a seamless national partnership

NORTHEASTMichael D. HinesBrian FiumaraBrad A. Ruppel

SOUTHEASTChris RileyFrank FallonBrian BudnickJennifer Klingler

SOUTH CENTRALJack FrakerJosh McArtorJonathan BryanHeather Venegoni

NORTH CENTRALMike CaprileTed StaszakStephanie Park

DEBT & EQUITYFINANCESteven RothSteven Kundert

WESTDarla LongoBarbara EmmonsRebecca Finkel

DEBT & EQUITYFINANCEVal AchtemeierBrett Green

www.cbre.com/np

© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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