NOTTINGHAM - HFF

NOTTINGHAM HALL | 1

NOTTINGHAM HALL R A L E I G H - D U R H A M | N O R T H C A R O L I N A

EXECUTIVE SUMMARY | 1

NOTTINGHAM HALL | 2

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 Nottingham Hall, a 105,601 square foot, Class A office asset located in one of Raleigh-Durham’s premier business parks, Imperial Center. Ideally positioned in the center of the flourishing Raleigh-Durham market, the asset is 100% leased to an attractive tenant roster anchored by the Research Triangle’s core industries. This fully stabilized investment opportunity features an attractive weighted average remaining lease term of more than four years and is positioned for long-term success with an ideal location in the Research Triangle Park/Interstate 40 (RTP/I-40) submarket, Raleigh-Durham’s top-performing submarket. Nottingham Hall presents investors with a unique opportunity to acquire an institutionally maintained, Class A asset at a discount to replacement cost in the country’s fastest growing metropolitan area since 2000.

INVESTMENT OPPORTUNITYN O T T I N G H A M H A L L

NOTTINGHAM HALL | 4

EXECUTIVE SUMMARYinvestment highlights

No. 01

INVESTMENT SUMMARYB E S T - I N - C L A S S O F F I C E A S S E T

Nottingham Hall offers the opportunity to acquire an institutionally maintained, Class A asset located in one of Raleigh-Durham’s premier office parks featuring a center-of-the-market location and a market leading amenity package. This premier investment offering features a Research Triangle-oriented tenant roster with significant remaining term, offering investors a stabilized cash flowing asset in the flourishing Raleigh-Durham market.

ATTRACTIVE TENANT ROSTER ANCHORED BY THE RESEARCH TRIANGLE’S CORE INDUSTRIES AND OFFERING EXCEPTIONAL REMAINING TERM

INCREASINGLY URBAN INFILL LOCATION

OPPORTUNITY TO ACQUIRE CORE CLASS A BUILDING BELOW REPLACEMENT COST

A PREMIER BUSINESS PARK IN THE TRIANGLE - IMPERIAL CENTER

FLOURISHING CENTER-OF-THE-MARKET LOCATION – RALEIGH-DURHAM


INVESTMENT SUMMARY OVERVIEW

ADDRESS Nottingham Hall 4505 Emperor Blvd Durham, NC 27703

RENTABLE BUILDING ARE A 105,601 RSF

NUMBER OF STORIES 4

YE AR BUILT 2001

NO. OF TENANTS 13

PERCENT OCCUPIED 100%

WALT 4.42 years

BUILDING ADDRESS RSF % OCCUPIED

2250 PER IMETER PARK 107,276 100%

3800 PAR AMOUNT 119,052 100%

226,328 100%

TOP TENANTS INDUSTRY RSF % OF PROPERTY

Social & Scientific Systems (SSS) Healthcare 26,864 25.4%

Viamet Healthcare 17,084 16.2%

BioCryst Pharmaceuticals Healthcare 14,910 14.1%

Clinverse Technology/Healthcare

10,251 9.7%

Transloc Technology 9,045 8.6%

78,154 74.0%

A B E S T - I N - C L A S S , F U L LY O C C U P I E D A S S E T L O C A T E D I N T H E P R E S T I G I O U S I M P E R I A L C E N T E R B U S I N E S S P A R K , F E A T U R I N G A N A T T R A C T I V E T E N A N T R O S T E R , L O N G - T E R M S T A B I L I T Y , A N D S T A B L E C A S H F L O W S

NOTTINGHAM HALL | 6


ATTRACTIVE TENANT ROSTER A N C H O R E D B Y T H E R E S E A R C H T R I A N G L E ’ S C O R E I N D U S T R I E S A N D O F F E R I N G E X C E P T I O N A L R E M A I N I N G T E R M

Nottingham Hall features an impressive tenant roster anchored by some of the Research Triangle’s core industries, such as healthcare and technology. The asset contains a blend of rapidly expanding regional companies and well established national and international firms, some of which are headquartered at Nottingham Hall. With 79% of the property leased to healthcare and technology companies, the tenant roster is strongly tied to the flourishing life sciences and innovation hub in the Raleigh-Durham market, offering highly coveted long-term stability to investors. The largest tenant, Social & Scientific Systems (SSS), has a growing presence in the region and occupies 25.4% of the asset. Currently, SSS employs approximately 130 professionals in the Raleigh-Durham area and in December 2016 the company commenced a 10-year lease at Nottingham Hall in order to support its future growth in the Triangle region. The stability of the offering is further supported by the exceptional term of the tenant roster which boasts a weighted average lease term of over four years.

Currently 100% leased, Nottingham Hall provides investors with the opportunity to acquire a fully stabilized asset in the tightening Raleigh-Durham market. Moreover, Nottingham Hall is located in one of the region’s premier business parks, Imperial Center, which draws unprecedented tenant demand and consistently achieves higher than market rents for investors. With staggered near-term rollover, Nottingham Hall is well-positioned to retain existing tenants and attract new tenants to the property, maintaining a stable cash flow and offering an exceptional investment opportunity in one of the country’s fastest growing markets.

T E C H N O L O G YP R O F E S S I O N A L S E R V I C E S

H E A LT H C A R EF I N A N C I A L

S E R V I C E S

18% 8%

61%

5%

I N V E S TM E NT H I G H LI G HT

N O.1

TENANT INDUSTRY BREAKDOWN

TENANT MAKEUP BY INDUSTRY

INDUSTRY SF % OF LEASED

Healthcare 63,796 60.68%

Technology 19,296 18.35%

Professional Services 8,800 8.37%

Other 8,210 7.81%

Financial Services 5,028 4.78%

O T H E R

8%

NOTTINGHAM HALL | 8

INCREASINGLY URBAN INFILL LOCATIONThe RTP/I-40 submarket is experiencing unprecedented economic growth resulting in increased urbanization of the area. Historically recognized as a suburban office hub, the RTP/I-40 submarket boasts a development pipeline largely made up of retail and multifamily projects that will further amenitize the area and position the submarket as a true urban infill location. While traditional suburban office locations are characterized by sprawling layouts with limited nearby amenities, Nottingham Hall offers close proximity to numerous restaurants and retail options. Given the notable future developments in the area, the asset is poised for long-term success.


N O. 2

N1914

16

11

09

1008

07

04

0301

0205

06

13

12 17

RALEIGH-DURHAM INTERNATIONAL AIRPORT

UMSTEAD STATE PARK

LAKE CRABTREE

MCCRIMMON PARKWAYEXTENSION (U/C)

WATKINS ROAD IMPROVMENT

540

540

40

40

147

54

18

15

1,546TOTAL NUMBER OF

UNDER CONSTRUCTION APARTMENTS/TOWNHOMES

TOTAL NUMBER OF UNDER CONSTRUCTION

RETAIL SF


HOTEL ROOMS


OFFICE SF


MIXED-USE SF

175,000214,000 20,000 199

NO. PROJECT NAME DEVELOPER PRODUCT TYPE DEVELOPMENT SIZE STATUS COMMENTS

1 Davis Park West Davis Drive & Hopson Road

Pollack Shores Mixed-Use 330 Multifamily Units 20,000+ SF of Street-Level Retail

Under Construction

Scheduled to deliver early 2017

2 Davis Park East Hopson Road

Davis Development

Mixed-Use 1,414 Multifamily Units 201 Townhomes 120,000 SF of Mixed-Use Development

Proposed

3 Churchill Hall Page Road & S Miami Blvd

Tri Properties and Principle Real Estate Investors

Mixed-Use 150,000 SF of Office 25,000 SF Medical Office Building 5 Street-Level Retail Outparcels

Under Construction

Scheduled to deliver Q2 2018

4 Limited Service Hotel South Miami Blvd & Old Page Road

Crown Realty Hospitality Proposed

5 Multifamily Development Site Page Road & Slater Road

Crown Realty Multifamily Proposed

6 Hilton Home2 Suites 1100 Shiloh Glenn Drive

RevPar Management

Hospitality 99 Hotel Rooms Under Construction

7 Shiloh Park Slater Road, Imperial Center

Tri Properties Office/Flex 138,000 SF of Office 61,000 SF of Flex

Proposed

8 Shiloh Crossing Lower Shiloh Way

- Multifamily 330 Multifamily Units Under Construction

9 Sorrell at Perimeter Park Slater Road & Carrington Mill Blvd

Davis Development

Multifamily 262 Multifamily Units Under Construction

10 INC Research BTS Carrington Mill Blvd

Trinity Capital Advisors and Starwood Capital

Office 214,000 SF of Office Under Construction

Class A office space that will serve as the new headquarters for INC Research. Scheduled to deliver in 2018.

11 Perimeter Park - Six & Seven Carrington Mill Blvd

Trinity Capital Advisors and Starwood Capital

Office 2 Office Sites Totaling 536,000 SF

Proposed

12 Wake Tech RTP Campus Paramount Parkway

- Educational Facility

109,000 SF Educational Facility Under Construction

Plans for the 94-acre site include up to 10 educational facilities

13 Town Hall North McCrimmon Parkway & Harris Mill Road

CalAtlantic Multifamily 116 Townhomes Under Construction

14 Twin Lakes Center Davis Drive & Airport Blvd

Leyland Alliance Retail 5 buildings with 173,000 SF of Retail, Restaurant, and Office

Proposed Wegmans will anchor the retail development. A second phase could include 12 acres of additional retail and a possible residential component

15 Bainbridge Lake Crabtree 5005 Evans Road

Bainbridge Multifamily 200 Multifamily Units Under Construction

16 Wake Competition Center Nova Drive & Aviation Parkway

Ammons Building Corporation (Jeff Ammons)

Recreational 30-acre indoor and outdoor multi-sport facility

Proposed $15 million building project will include two ice skating rinks, turf soccer fields and championship-level volleyball and gymnastics facilities

17 Aerial Center Business Park 3000 Aerial Center Parkway

Sentinel Office - Proposed 4.83-acre site with additional office development proposed

18 Element RDU 804 Airport Blvd

OHM Hotels Hospitality 100 Hotel Rooms Under Construction

19 Ovation at Weston Weston Parkway & Evans Road

Woodfield Investments

Multifamily 308 Multifamily Units Under Construction

MIXED-USE HOSPITALITY MULTIFAMILY OFFICE/FLEX RETAIL OTHER

NOTTINGHAM HALL

RTP/I -40 SUBMARKET DEVELOPMENT PIPELINE

EXECUTIVE SUMMARY | 9 EXECUTIVE SUMMARY | 9

OPPORTUNITY TO ACQUIRE CORE CLASS A BUILDINGB E L O W R E P L A C E M E N T C O S T

The ability to acquire Class A assets in the Raleigh-Durham office market has become increasingly competitive as the area is the fastest growing metropolitan in the country since 2000. Nottingham Hall is a best-in-class asset offering attractive, high-quality construction that has been institutionally maintained since its delivery in 2001. The property features well-landscaped exteriors and attractive brick and glass facades in a picturesque suburban office setting and boasts efficient floor plates, impressive lobbies, and Class A interior finishes. Nottingham Hall offers abundant parking with 498 parking spaces and an outstanding parking ratio of 4.7 spaces per thousand square feet, an attractive competitive advantage for investors. Moreover, Nottingham Hall represents an exceptional opportunity to obtain a foothold in one of Raleigh-Durham’s premier business parks. With an estimated replacement cost of $250 per square foot for surface-parked office, investors are presented with an excellent opportunity to invest at an attractive basis, in turn driving significant bottom line growth. Below replacement cost investment opportunities such as this are highly coveted in the thriving Raleigh-Durham market.


N O. 3

NOTTINGHAM HALL | 10

A PREMIER BUSINESS PARK IN THE TRIANGLEI M P E R I A L C E N T E R

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 in the Triangle Region. Ideally positioned at the interchange of I-40 and I-540, Imperial Center is located at the epicenter of the Raleigh-Durham market offering unparalleled access to the area’s main economic drivers, including the world-renowned Research Triangle Park and the RDU International Airport. As a result, the park attracts the region’s top companies including GlaxoSmithKline, QuintilesIMS, MetLife, EMC Corporation, Biogen, BB&T, and Pfizer, many of which have a long-standing history at the park. QuintilesIMS, 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 housing major operations of a number of Fortune 500 companies, Imperial Center supports the growth of numerous businesses local to the Triangle region. The diverse tenant base represents STEM-sector firms, the healthcare industry, and research organizations, all of which have strong ties to the Raleigh-Durham area. With 69 companies and over 5,000 employees in the park, Imperial Center is consistently recognized as one of the premier business parks in the Southeast.

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. 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. Prospective investors have the opportunity to gain access to these rare competitive advantages in the highly competitive Raleigh-Durham office market, further strengthening the investment opportunity at Nottingham Hall.


N O.4

2010 2011 2012 2013 2014 2015 2016 2017 YTD

IMPERIAL CENTER 90.4% 91.1% 90.9% 94.6% 91.7% 99.1% 98.5% 98.7%

NOTTINGHAM HALL 92.4% 89.2% 92.6% 100.0% 100.0% 100.0% 98.8% 100.0%

IMPERIAL CENTER'S INCREDIBLE HISTORICAL PERFORMANCEImper ia l Center & Not t ingham Hal l Occupancy (2010 -2017 YTD)

NOTABLE TENANTS AT IMPERIAL CENTER


FLOURISHING CENTER-OF-THE-MARKET LOCATIONNOTTINGHAM HALL IS

PRIMED FOR SIGNIFICANT LONG-TERM SUCCESS AS

UNPRECEDENTED GROWTH IN THE AREA RESULTS IN

AN INCREASINGLY INFILLED LOCATION

R A L E I G H - D U R H A M

Nottingham Hall is strategically located at the geographic center of the Raleigh-Durham market, offering convenient access to Interstate 40 (0.5 mi) and Interstate 540 (1 mi), which are the area’s two primary transportation arteries. As a result, this location affords easy commutes from Raleigh’s primary residential nodes in Cary (8 mi), West Raleigh (13 mi), and North Raleigh (15 mi) as well as convenient access to the Raleigh-Durham International Airport (3 mi) and the world-renowned Research Triangle Park (3 mi).

With an ideal south-RTP location, Nottingham Hall benefits from close proximity to some of the fastest growing communities in the country such as Apex, Morrisville, and Holly Springs. Recent economic expansion in the area, specifically in innovative industries, attracts an increasingly young population to the Triangle region as evidenced by Cary’s recognition as a top ten city in the US for millennials. Access to a talented growing population supporting Raleigh-Durham’s innovation hub positions Nottingham Hall as a premier office destination for new-to-market companies as well as local expansions, making investments such as this increasingly rare.

Nottingham Hall is primed for significant long-term success as unprecedented growth in the area has resulted in an increasingly infilled location. The asset offers convenient access to over one million square feet of retail amenities within a five mile radius including the Shops at Imperial Point, the Shiloh Crossing Retail Center, and the Creekstone Crossing Shopping Center. Prominent power retail centers such as the Brier Creek Shopping Center (5 mi) and the Streets at Southpoint (7 mi) are also within a short drive of the property.

U M S T E A DP A R K

DURHAM

RALEIGHMorrisville

Research Triangle Park

CARY

40

40

40

440

440

540

54070

R A L E I G H - D U R H A MI N T E R N AT I O N A L A I R P O R T

NOTTINGHAM HALL


N O.5


NOTTINGHAM HALL | 12

40

540

RDU INTERNATIONAL AIRPORT

RESEARCH TRIANGLE PARK

WILLIAM B. UMSTEAD STATE PARK (5,599 ACRES)

TO DURHAM / CHAPEL HILL

TO RALEIGH

NOTTINGHAM HALL

SHILOH CROSSING SHOPPING CENTERWALMART SAM'S CLUBBRUEGGER'S BAGELS

THE SHOPS AT IMPERIAL POINTSTARBUCKSMEZ MEXICAN RESTAURANTPAGE ROAD BAR & GRILLJIMMY JOHN'SFEDEX OFFICE STORE

MARRIOTT HOTEL

PERIMETER PARK

SHERATON HOTEL

FITNESS CONNECTION

COMFORT SUITES

WINGATE BY WYNDHAM

IMPERIAL CENTER

HEADQUARTERS

S MIAMI B

LVD

DOUBLE TREE HOTEL

HOTEL INDIGO

HOMEWOOD SUITES

201 NORTH TRYON STREET | SUITE 1400 | CHARLOTTE, NORTH CAROLINA | 28202

4242 SIX FORKS ROAD | SUITE 876 | RALEIGH, NORTH CAROLINA | 27522

analysts

debt & structured finance

investment advisors

RYAN CLUTTER Senior Managing Director

704.526.2805 [email protected]

WILLIAM MORRIS Real Estate Analyst


RYAN EKLUND Real Estate Analyst


SCOT HUMPHREY Director


CHRIS LINGERFELT Associate Director


ROGER EDWARDS Director


TRAVIS ANDERSON Senior Managing Director


CORY FOWLER Director



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201 NORTH TRYON STREET | SUITE 1400 | CHARLOTTE, NORTH CAROLINA | 28202

4242 SIX FORKS ROAD | SUITE 876 | RALEIGH, NORTH CAROLINA | 27522

NOTTINGHAM - HFF

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