NEWNAN DISTRIBUTION CENTER ATLANTA, GEORGIA MSA NEWNAN DISTRIBUTION CENTER 1

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1 ATLANTA, GEORGIA MSA NEWNAN DISTRIBUTION CENTER NEWNAN DISTRIBUTION CENTER 1

2 EXECUTIVE SUMMARY NEWNAN DISTRIBUTION CENTER 1,917,000 MSF, 87% LEASED MULTI-TENANT DISTRIBUTION CENTER WITH OUTSTANDING TERM AND IMMEDIATE UPSIDE Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Georgia licensed real estate broker ( HFF ) has been retained as the exclusive sales representative for Newnan Distribution Center, a 1,917,084 square foot, 87% occupied bulk distribution warehouse located in the explosive Atlanta market. Featuring a brand new 1.4 million square foot, 20-year lease to Variety Wholesalers, the warehouse acts as the conglomerate s mission-critical facility, which serves over 180 locations across the Southeast. Additionally, Elite Comfort Solutions, a rapidly growing foam manufacturer headquartered in Newnan, has recently consolidated operations into 257,000 square feet of the warehouse with term through With 255,000 square feet of vacancy, Newnan Distribution Center also provides investors the rare opportunity to capitalize on immediate value-add upside through leasing while enjoying stable, long-term cash flows. Furthermore, the property allows investors to acquire a sizeable 1.9 million square feet in the red-hot Atlanta market at a basis well below replacement cost. Built in 1978 and renovated in 2001, the well-maintained facility exhibits highly functional bulk distribution features throughout including 24' clear heights, over 300' truck courts and nearly 1,000 dedicated trailer storage positions. Additionally the facility s entire roof has nearly 10 years of remaining warranty while approximately 825,000 square feet of the warehouse has nearly 20 years of remaining warranty. Newnan Distribution Center is strategically located along the rapidly growing I-85 South Corridor providing its tenants seamless access to a network of major transportation thoroughfares including Interstate 65, Interstate 285 and Interstate 75, which combine to provide access to every major Southeast commercial hub, six top-25 container ports and the Fairburn Intermodal Terminal. Currently 96% leased, the I-85 South Corridor has experienced unprecedented leasing activity due to the area s excellent connectivity, skilled labor force and favorable business climate all of which have attracted a myriad of brand name industrial users including Amazon, Clorox, Duracell, Google and Petsmart among others. INVESTMENT SUMMARY ADDRESS RENTABLE BUILDING AREA TENANTS OCCUPANCY 87% WEIGHTED AVERAGE REMAINING LEASE TERM 60 Herring Road Newnan, Georgia Warehouse: 1,889,461 SF Office: 27,623 SF TOTAL: 1,917,084 SF Variety Wholesalers (1,405,420 SF; LXD 9/2036) Elite Comfort Solutions (257,000 SF; LXD 5/31/2023) 16.8 Years IN-PLACE NOI $2,889,929 PROJECTED STABILIZED NOI (YEAR 2) $3,824,192 NEWNAN DISTRIBUTION CENTER 2

3 RARE OPPORTUNITY TO ACQUIRE 1,917,000 SF DISTRIBUTION FACILITY WELL BELOW REPLACEMENT COST WITH OUTSTANDING TERM 87% leased, 1,917,084 square foot bulk distribution center featuring a brand new 1.4 million square foot, 20-year lease to Variety Wholesalers and a new 257,000 square foot, six (6) year lease to Elite Comfort Solutions Mission Critical Facility: Established in 2016 as the company s second distribution center, Variety Wholesalers has invested approximately $10.5 million into opening the new operation, which is intended to create 320 jobs and serve over 180 stores across the Southeast 255,000 square feet of vacancy provides investors with the opportunity to immediately add value through leasing within the 95% leased I-85 South Corridor, which continues to experience high-velocity leasing activity At an extremely attractive price per-square-foot basis, the Newnan Distribution Center presents investors with the ability to acquire an asset well below replacement cost Unique opportunity to acquire a 1.9 million square foot footprint within the Atlanta market one of the premier Tier 1 industrial markets in the country NEWNAN DISTRIBUTION CENTER 3

4 ATLANTA - WEST POINT RAILROAD SPUR 73 TRUCK SPACES 78 TRUCK SPACES 1.9 MSF INDUSTRIAL FACILITY WITH EXCELLENT DISTRIBUTION CAPABILITIES AND SIGNIFICANT RECENT CAPITAL INVESTED A 1,917,084 square foot bulk distribution facility, the Newnan Distribution Center is an extremely wellmaintained property with significant recent capital invested The warehouse features 24' clear heights, 48' x 48' column spacing and truck courts up to 330' deep with 110 concrete aprons Well-suited for bulk distribution, the facility contains nearly 1,000 trailer storage spaces, 600 employee parking spaces, 118 dock-high loading positions and borders an active CSX rail line that provides direct access to the Fairburn Intermodal Terminal 150 TRUCK SPACES RAILROAD SPUR LOADING DOORS ' 39 LOADING DOORS 48' 110' VARIETY WHOLESALERS 1,405,420 SF (LXD 9/30/2036) 48' LOADING DOORS 8 LOADING DOORS 100' 315' 170 TRUCK SPACES 40 TRUCK SPACES 136 TRUCK SPACES HERRING RD Featuring a TPO membrane throughout, the entire roof has nearly 10 years of remaining warranty while sections 1, 2, 8 and a portion of section 3 have nearly 20 years of remaining warranty VACANT 254,664 SF ELITE COMFORT SOLUTIONS 257,000 SF (LXD 5/31/2023) 30 LOADING DOORS The acre site is fully fenced with two points of controlled access Landlord is currently installing four (4) dock-high loading positions and a new glass office entrance in the vacant space, creating a highly functional suite capable of accommodating a wide variety of tenants 7 4 FUTU R E LOADING DOORS FUTURE GLASS ENTRANCE 71 TRUCK SPACES 8 9 INNOVATION WAY 53 TRUCK SPACES NEWNAN DISTRIBUTION CENTER 4

5 NEWNAN DISTRIBUTION CENTER Greenville 300 MILES 600 MILES LOCATION OVERVIEW PRIME LOGISTICAL LOCATION ALONG THE INTERSTATE 85 SOUTH CORRIDOR Superior accessibility via Interstate 85 to a network of major transportation thoroughfares including Interstate 65, Interstate 285 and Interstate 75, which provides an excellent one-day distribution radius that encompasses all major Mid-Atlantic and Southeastern metropolitan areas Ideally positioned along the I-85 Corridor providing seamless connectivity to Hartsfield Jackson Atlanta International Airport the busiest airport in the world and the Fairburn Intermodal Terminal, which is Atlanta s intermodal gateway to the South and West Strategically located within a day s drive from the Port of Savannah, Charleston, Jacksonville, Miami, Everglades and Norfolk six of North America s top-25 container ports Well-amenitized, the property is located less than two (2) miles from over three million square feet of retail, and enjoys less than a ten minute drive to two premier golf clubs as well as the Newnan City Center Approximately one in every 20 people in the Coweta County area work in the transportation and warehouse sector of the economy, providing a skilled labor force that continues to attract high-caliber tenants to the region Pro-business county and municipal legislatures provide strong economic incentive packages, creating a low-cost-of-operation business climate and allowing the I-85 South Corridor to compete for tenants across the East Coast NEWNAN DISTRIBUTION CENTER 5

6 MARKET OVERVIEW INCREDIBLY TIGHT I-85 SOUTH CORRIDOR WITHIN EXPLOSIVE ATLANTA MARKET Atlanta s overall warehouse occupancy rate has risen to 93% on the heels of 27.1 million square feet of positive net absorption since the beginning of 2016, and nearly 12 million square feet year-to-date, making it the most active industrial market in the nation The I-85 South Corridor, which extends from Hartsfield Jackson Atlanta International Airport down to Newnan, Georgia, has experienced five consecutive quarters of declining vacancy rates, pushing occupancy to a ten-year high of 96% Since the beginning of 2016, nine (9) leases of 275,000 SF or greater totaling 5.3 million square feet have been signed along the I-85 South Corridor, displaying strong tenant demand for highly connected, institutional-quality industrial space Excellent access to a network of transportation infrastructure and low cost of operation has attracted a rolodex of brand name industrial users to the I-85 South Corridor including Amazon, Procter & Gamble, Petsmart, Clorox, Duracell, Lowes and Google among others Multiple high-profile corporations have displayed large economic commitments to the City of Newnan including Niagara Bottling and Yamaha Motor Manufacturing Corporation, which employs over 1,250 workers and has invested over $250 million into the company s first U.S plant which produces four different personal recreational vehicles NEWNAN DISTRIBUTION CENTER 6

7 GEORGIA ADVANCED METAL MAXXIS INTERNATIONAL USA LS MTRON YUDO-SUNS WHITE OAK GOLF CLUB SUMMER GROVE GOLF CLUB 65 TO NEWNAN-COWETA COUNTY AIRPORT YAMAHA YAMAHA GRENZEBACH CORP PETSMART TO ATLANTA GREENVILLE CHARLOTTE SYGMA YAMAHA BWAY YOKOGAWA CORP ELITE COMFORT SOLUTIONS ELITE COMFORT SOLUTIONS NIAGARA BOTTLING ASHLEY PARK SHOPPING CENTER NEWNAN DISTRIBUTION CENTER INVESTMENT ADVISORS ANALYSTS DEBT + STRUCTURED FINANCE CHRIS NORVELL, SIOR Senior Managing Director cnorvell@hfflp.com MIKE CRAWFORD Senior Director mcrawford@hfflp.com MIKE MASSARDO Real Estate Analyst mmassardo@hfflp.com VALERIE DERRICK Real Estate Analyst vderrick@hfflp.com GREGG SHAPIRO Managing Director gshapiro@hfflp.com PATRICK NALLY Director pnally@hfflp.com MARTY BUSEKRUS Senior Director mbusekrus@hfflp.com LOCAL MARKET EXPERTISE RAY STACHE, SIOR Senior Director Cushman & Wakefield ray.stache@cushwake.com LISA PITTMAN Director Cushman & Wakefield lisa.pittman@cushwake.com NEWNAN DISTRIBUTION CENTER 2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.