franklin forest and northwoods bov

Broker Opinion Value

Presented to:

April 10, 2015

Franklin Forest and Northwoods North Atlanta Flex Portfolio

CHIP SIPPLESenior Investment Analyst

[email protected]

DENTON SHAMBURGERVice President404.266.7600

[email protected]

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April 10, 2015

Mr. Jimmy Yoo VP- Senior Asset ManagerSitus2 Embarcadero CenterSuite 1300San Francisco, CA 94111

Re: Franklin Forest Industrial Park: 805-840 Franklin Court and 811-841 Livingston Court, Marietta, GA Northwoods: 2725-3175 Northwoods Parkway, 2850 Colonnades Court, and 2915-2995 Courtyards Drive Norcross, GA

Dear Jimmy:

Lincoln Property Company is pleased to present this Broker Opinion of Value (“BOV”) for the assets known as Franklin Forest Industrial Park and Northwoods Business Park, located at the addresses listed above.

Lincoln Property Company has distinguished history of acquiring, developing, managing, leasing and disposing of commercial properties throughout the Southeast. Lincoln’s lines of business include property management, leasing, brokerage, acquisitions, dispositions, development, construction management advisory, services, and green building services.

We appreciate the opportunity to present this BOV and look forward to working with you.

Sincerely,

J. Denton Shamburger Chip SippleVice President Senior Investment AnalystLincoln Property Company Lincoln Property Company

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TABLE OF CONTENTS

General Overview 4Property Strengths and Challenges 5

Atlanta Industrial Overview 7Franklin Forest Competitive Set 8Northwoods Competitive Set 13

Valuation Overview 19Direct Capitalization Approach 20Sales Comparison Approach 23IRR Approach 28Property Cash Flows 32Rent Rolls 34

PROPERTY OVERVIEW

MARKET OVERVIEW

FINANCIAL ANALYSIS

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GENERAL OVERVIEWFranklin Forest and Northwoods Business Park (“Northwoods”) are two, flex industrial parks made up of a total of

twenty-one (21) buildings located in the Northern suburbs of Atlanta, GA. Franklin Forest is located in the Southeast Cobb County/ Marietta industrial submarket off Franklin Road, which is accessible from Delk Road, directly off of I-75 (the major northwestern interstate that runs through Atlanta). Northwoods is located in the Norcross industrial submarket between two major thoroughfares that bisect this submarket: Peachtree Industrial Boulevard and Buford Highway. Together, the portfolio totals 880,139 SF and is anchored by tenants such as Comcast Corporation, Haso USA, US Kids Golf, and Starband Communication.

Franklin Forest

Northwoods

Portfolio total:

YEAR BUILT: 1983

ADDRESS: 805-840 Franklin Court811-841 Livingston Court

LEASING RATE: $5.00 - $7.50 / SF (NNN)

SUBMARKET/COUNTY: SE Cobb County / Marietta

TOTAL SF: 306,249 SF

PERCENT OCCUPIED: 58.43%

NO OF BUILDINGS: 9 buildings

INGRESS/EGRESS: Franklin Road SE

PARKING: Approximately 2.65 / 1,000 SF

MAJOR TENANTS: Starband Communications, Lasership Inc, Restore-It, Protection One Alarm, Can You Imagine Enterprise, AFA Protective System, etc.

YEAR BUILT: 1984 - 1988

ADDRESS: 2725 - 3175 Northwoods Pkwy2915 - 2995 Courtyards Drive2850 Colonnades Court

LEASING RATE: $5.00 - $6.50 / SF (NNN)

SUBMARKET/COUNTY: Norcross Industrial

TOTAL SF: 573,890 SF

PERCENT OCCUPIED: 85.27%

NO OF BUILDINGS: 12 buildings

INGRESS/EGRESS: Peachtree Industrial Boulevard and Langford Rd NW

PARKING: Approximately 2.35 / 1,000 SF

MAJOR TENANTS: Comcast Communications, Haso USA, US Kids Golf, Sortimo, Voxpopuli, etc.

TOTAL SF: 880,139 SFOCCUPIED SF: 668,308 SF VACANT SF: 211,831 SFOCCUPIED: 75.93% VACANT: 24.07%

Before analyzing the value range for both Franklin Forest and Northwoods, we first want to identify the inherent strengths and challenges that these assets face as these characteristics will factor into our ultimate recommendation:

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Excellent access to I-75 via Delk Road and South Marietta Parkway. Less than 1 mile from both exits on I-75.

The Northwest/Marietta submarket has recently experienced big announcements that will have a large impact on the immediate area:

Home Depot’s announcement to move into 250,000 SF in the immediate area on a long term lease.

The Atlanta Braves stadium relocation just south of Franklin Forest.

Located in an area that many public and private groups are focused on improving in the future. Programs such as a redevelopment bond referendum, Marietta opportunity zone, gateway Marietta CID, livable centers initiative and I-75 Managed Lanes Project have been initiated to improve the immediate area.

With varying percentages of office build out throughout the portfolio, landlord can accommodate various tenants’ uses and requirements.

Recent expiration of the property’s largest tenant, Kratos Southeast, Inc (35,908 SF), leaves a large hole to backfill. This vacate decreased the Franklin Forest occupancy by 11.73%.

Immediately surrounding area along Franklin Road presents challenging demographics.

Many of the properties in the immediate corridor have gone through foreclosures during the last cycle - some more than once.

Building type and layout keep project dependent upon smaller tenants with higher credit risk profiles.

Ingress/egress via Franklin Court is limited and challenging for users to access via large (53’) tractor trailers.

High vacancy rate in direct competitive set.

Property Strengths

Property Challenges

Franklin Forest

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Located in the largest flex industrial market in Atlanta.

Area touts exceptional amenities, demographics, technology infrastructure, etc.

Northwoods Business Park is a well-established park and recognizable throughout the Atlanta real estate community.

Close proximity to executive housing and strong labor force.

Well-maintained Business Park offering a variety of small suite sizes ideally suited for target tenant market.

Functional/flexible product type which offers both dock-high and drive-in loading coupled with wide range of office square footage.

The largest tenant, Comcast Corporation (117,647 SF), is considered to be a potential vacate after the end of their lease term in October, 2015, lowering the portfolio’s occupancy by 20.50%. The capital costs to retrofit the Comcast space will be significant.

Competitive like-kind product in immediate area.

The portfolio is in need of capital infusion to improve the condition of some of the vacancies and curb appeal.

Property Strengths

Property Challenges

Northwoods

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Overall vacancy rate of 7.9% is lowest since 2001 (1.50% drop YoY)

$4.00 overall rent: 6.40% YoY growth (new record)

16.1 MSF positive absorption (new record): +167% from 2013

20.0 MSF of leasing activity: strongest since 2007, +52% YoY

15.3 MSF under construction (new record): +502% from YE 2013

Atlanta’s position in current cycle

MARKET OVERVIEWOverall, the Atlanta Industrial Market remained in the Top 5 for the second straight year among major US markets in multiple categories during 2014. The continued robust activity has kept Atlanta in the forefront as a significant inland distribution market contributing to the country’s strengthening industrial fundamentals. Atlanta industrial market dynamics continued to show vast improvement with many market indicators pointing towards continued growth for the foreseeable future.

YEAR END 2014: RECORD SETTING ATLANTA INDUSTRIAL STATS AND FIGURES

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PERIODEXISTING INVENTORY VACANCY

NETABSORPTION

DELIVERIES UC INVENTORYLEASING ACTIVITY

# BLDS TOTAL RBA DIRECT SF TOTAL SF VAC % # BLDS TOTAL RBA # BLDS TOTAL RBA

SE Cobb County/ Marietta Industrial Flex Sector Historical Statistics

Franklin Forest is located in the SE Cobb County / Marietta Industrial submarket located northwest of Atlanta’s CBD and concentrated along the Interstate 75 North corridor. Current market conditions for flex product in the Marietta submarket show this sector having an overall vacancy rate of 16.5% (2014), down from 17.2% from the previous year (2013) which is still significantly above the overall Atlanta Industrial vacancy average (7.90%). Last year, was a record setting year for the industrial market in Atlanta, but the flex market in the SE Cobb County/ Marietta submarket continues to show signs of a slower recovery versus other submarkets and product types.

Vacant space in this subject product type (Flex) and submarket (SE Cobb County / Marietta Industrial) remains plentiful. For example, today, users in the 5,000 – 50,000 square foot range would find 54 options existing in 39 different properties in the SE Cobb County / Marietta flex submarket. Given the number of availabilities for future tenants, leasing of the vacancy at Franklin Forest could remain slow without the execution of certain marketing strategies to drive traffic to the project (i.e. – timely incentives targeting both tenants as well as the brokerage community, aggressive up front rate/concessions to promote a seamless and affordable transition into a new location for new tenants).

Franklin Forest

From a macro standpoint, the flex industrial product type continues to lag behind an otherwise flourishing Atlanta Industrial Market. Overall, within the Metro Atlanta area, the flex market vacancy rate is 15.1%. Most of the recent activity has been in the shallow bay and bulk warehouse sectors. It is not uncommon to see flex product trail the market as it suffers the most during economic downturns and is slower to recover. We do anticipate the flex product to improve as markets continue to gain momentum as tenants are priced out of higher-end product and search for lower priced alternatives such as flex product similar to Franklin Forest and Northwoods.

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Franklin Forest’s direct competitive set, which we have identified as a total of 12 projects and further outlined in the following pages, was heavily impacted during the downturn – more so than the overall flex submarket (Marietta Industrial). The overall vacancy rate within Franklin Forest’s direct competitive set is 27.8%, more than 10% higher than the Marietta flex submarket as a whole. This micro market continues to lag, likely due to the stigma/demographic shift of the immediate area along Franklin Road and Delk Road. We anticipate the competitive set to improve as the overall market continues to improve – especially if the local public/private initiatives currently on the drawing board are ultimately executed which will:

Franklin Forest Competitive Set - Vacancy Rate (%)

Make exceptional improvements to the immediate area

Make a meaningful impact on the transition to a Live/Work/Play environment

Spur job creation

Increase leasing velocity

The direct competitive set was extremly affected during the economic downturn.

The vacancy rate peaked in 2012 at approximately 32%.

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FRANKLIN FOREST COMPETITIVE SETPICTURE # PARK LANDLORD / AGENT PARK SIZE

# BLDGSAVAILABLE SF % VACANT OFFICE CLEAR

HEIGHTDOCK DOORS

YEAR BUILT

ASKING LEASE RATE COMMENTS

Franklin Forest 805-840 Franklin Court 811-841 Livingston Court

High Street Realty / DTZ 306,249 9 Bldgs

127,319 42% Vacant 65% Finish 12'-18' Dock-High &

Grade-Level 1983 $5.50 - $6.50 NNN Subject property

1Northwest Business Center 2129 -2151 Northwest Pky 2125 Corporate Dr SE

Colony / CBRE 197,000 3 Bldgs

49,715 25% Vacant 20% Finish 18'-24' Dock-High 1981 - 1986 $5.55 - $6.25

NNNDH vacancy with minimal office. Vacancies range from 4,000 - 15,000 SF. Property is just on the other side of Delk Rd. giving it a slightly supe-rior location.

2Northwest Business Center 2130 - 2275 Northwoods Pky 1337-1351 Capital Cir

Sealy & Company (Win-throp) / Colliers

471,871 12 Bldgs

118,607 29% vacant 50%-100% Finish 14'-20' Dock-High &

Grade-Level 1982-1988 $7.00 - $8.00 MG

NWBC contains flex, office & whse space. Vacancies range from 1,800 SF up to 14,299 SF. Property is just on the other side of Delk Rd. giving it a slightly superior location.

3Cumberland Business Center 1700 & 1750 Enterprise Way SE

Meritex / Reliant RE 168,078 2 Bldgs

26,559 16% vacant 30% Finish 16' - 18' Dock-High 1986 $6.50

MGBrick-on-block construction in a good location off S. Cobb Drive. Good tenant mix with standard warehouse features.

4Newmarket Business Park 2140 & 2150 Newmarket Pky SE

Blackstone / NAI Brannen Goddard

144,566 2 Bldgs

32,169 22% vacant 30% Finish 16' - 22' Dock-High 1985 $6.00-$6.25

NNNOne 6,000 SF space, one 9,000 SF Space and one 17,000 SF (95% dropped ceiling) space currently available. Well known Park name with good amenities. Parking can be tight.

5Newmarket Office Park 2110 - 2250 Newmarket Pky SE

Sealy & Company / LNR / Colliers

469,728 6 Bldgs

96,291 20.5% vacant 75%-100% Finish 14' - 22' Grade-Level 1983 - 1985

$8.00 - $10.00 MG (Single Story)

Office component of Park with large vacancy exposure.

6 Kingston Court 2171 - 4014 Kingston Ct ING Clarion / Avison Young 371,291

8 Bldgs136,151 37% vacant 20% Finish 18' Dock-High 1981 $4.00 - $5.10

NNNThere are two 3-4,000 SF and one 10,000 SF vacancies w/ dock high loading. ING will get aggressive on rate.

7 Franklin Oaks 877 - 889 Franklin Rd ING Clarion / Avison Young 152,179

4 Bldgs60,947 40% vacant 100% Finish 14' Grade-Level 1999 $5.35- $6.00

NNNSingle story office product w/ vacancy from 7,000 SF up to 17,000 SF. Interior finish has many upgrades. ING will get aggressive on rate.

8 Cobb Corporate Center 350 - 450 Franklin Rd SE Crown West / LPC 200,090

5 Bldgs79,301 39% vacant 100% Finish 14' Grade-Level 1985 $9.50 - $10.50

NNN Flex designed buildings have been mostly converted to 100% office.

9 American Business Center 1395 S Marietta Pky SE

Oaktree Capital Manage-ment / Ackerman

284,306 8 Bldgs


Grade-Level 1983-1987 $6.00 - $8.75 NNN

Multi-story office bldgs excluded in these numbers. Landlord pays a por-tion ($0.45/sf) of the expenses and will get aggressive for credit tenants. Remaining pass throughs are $1.50/sf.

10Powers Ferry Business Center 2030 Powers Ferry Rd NW

Epicty / Epicity 260,294 5 Bldgs

59,402 22% vacant 85-100% Finish 14' Dock High &

Grade-Level 1982 $12.50 MG

Flex Park located off of Powers Ferry and Windy Hill. Vacancies all have heavy office. CAM is $1.25/sf.

11 Interstate Northwest 120 Interstate N Pky SE LNR / Transwestern 283,437

4 Bldgs72,294 25% vacant 75-100% Finish 14'-18' Grade-Level 1979 $11.50

MGFlex Park located off of Powers Ferry and Windy Hill. All availabilities are under 10K and have heavy office. $8 rate for the two building with less build out, $12 for heavier office.

12White Water Business Center 200-240 Cobb Pky N


214,343 4 Bldgs


Grade-Level 1986 $6.00 - $9.00 NNN

Largest space available is 20K and many smaller spaces. Landlord pays a portion ($0.45/sf) of the expenses and will get aggressive for credit tenants. Remaining pass throughs are $1.54.

COMPETITIVE SET TOTAL/AVERAGES 3,217,183 27.8% 64%

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FRANKLIN FOREST COMPETITIVE SETPICTURE # PARK LANDLORD / AGENT PARK SIZE


HEIGHTDOCK DOORS

YEAR BUILT


Franklin Forest 805-840 Franklin Court 811-841 Livingston Court


127,319 42% Vacant 65% Finish 12'-18' Dock-High &

Grade-Level 1983 $5.50 - $6.50 NNN Subject property

1Northwest Business Center 2129 -2151 Northwest Pky 2125 Corporate Dr SE

Colony / CBRE 197,000 3 Bldgs

49,715 25% Vacant 20% Finish 18'-24' Dock-High 1981 - 1986 $5.55 - $6.25

NNNDH vacancy with minimal office. Vacancies range from 4,000 - 15,000 SF. Property is just on the other side of Delk Rd. giving it a slightly supe-rior location.

2Northwest Business Center 2130 - 2275 Northwoods Pky 1337-1351 Capital Cir

Sealy & Company (Win-throp) / Colliers

471,871 12 Bldgs


Grade-Level 1982-1988 $7.00 - $8.00 MG

NWBC contains flex, office & whse space. Vacancies range from 1,800 SF up to 14,299 SF. Property is just on the other side of Delk Rd. giving it a slightly superior location.

3Cumberland Business Center 1700 & 1750 Enterprise Way SE

Meritex / Reliant RE 168,078 2 Bldgs

26,559 16% vacant 30% Finish 16' - 18' Dock-High 1986 $6.50

MGBrick-on-block construction in a good location off S. Cobb Drive. Good tenant mix with standard warehouse features.

4Newmarket Business Park 2140 & 2150 Newmarket Pky SE

Blackstone / NAI Brannen Goddard

144,566 2 Bldgs

32,169 22% vacant 30% Finish 16' - 22' Dock-High 1985 $6.00-$6.25

NNNOne 6,000 SF space, one 9,000 SF Space and one 17,000 SF (95% dropped ceiling) space currently available. Well known Park name with good amenities. Parking can be tight.

5Newmarket Office Park 2110 - 2250 Newmarket Pky SE

Sealy & Company / LNR / Colliers

469,728 6 Bldgs

96,291 20.5% vacant 75%-100% Finish 14' - 22' Grade-Level 1983 - 1985

$8.00 - $10.00 MG (Single Story)

Office component of Park with large vacancy exposure.

6 Kingston Court 2171 - 4014 Kingston Ct ING Clarion / Avison Young 371,291

8 Bldgs136,151 37% vacant 20% Finish 18' Dock-High 1981 $4.00 - $5.10

NNNThere are two 3-4,000 SF and one 10,000 SF vacancies w/ dock high loading. ING will get aggressive on rate.

7 Franklin Oaks 877 - 889 Franklin Rd ING Clarion / Avison Young 152,179

4 Bldgs60,947 40% vacant 100% Finish 14' Grade-Level 1999 $5.35- $6.00

NNNSingle story office product w/ vacancy from 7,000 SF up to 17,000 SF. Interior finish has many upgrades. ING will get aggressive on rate.

8 Cobb Corporate Center 350 - 450 Franklin Rd SE Crown West / LPC 200,090

5 Bldgs79,301 39% vacant 100% Finish 14' Grade-Level 1985 $9.50 - $10.50

NNN Flex designed buildings have been mostly converted to 100% office.

9 American Business Center 1395 S Marietta Pky SE


284,306 8 Bldgs


Grade-Level 1983-1987 $6.00 - $8.75 NNN

Multi-story office bldgs excluded in these numbers. Landlord pays a por-tion ($0.45/sf) of the expenses and will get aggressive for credit tenants. Remaining pass throughs are $1.50/sf.

10Powers Ferry Business Center 2030 Powers Ferry Rd NW

Epicty / Epicity 260,294 5 Bldgs


Grade-Level 1982 $12.50 MG

Flex Park located off of Powers Ferry and Windy Hill. Vacancies all have heavy office. CAM is $1.25/sf.

11 Interstate Northwest 120 Interstate N Pky SE LNR / Transwestern 283,437

4 Bldgs72,294 25% vacant 75-100% Finish 14'-18' Grade-Level 1979 $11.50

MGFlex Park located off of Powers Ferry and Windy Hill. All availabilities are under 10K and have heavy office. $8 rate for the two building with less build out, $12 for heavier office.

12White Water Business Center 200-240 Cobb Pky N


214,343 4 Bldgs


Grade-Level 1986 $6.00 - $9.00 NNN

Largest space available is 20K and many smaller spaces. Landlord pays a portion ($0.45/sf) of the expenses and will get aggressive for credit tenants. Remaining pass throughs are $1.54.

64% 16.5’

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Northwoods is located in the Norcross Industrial submarket located northeast of Atlanta’s CBD and concentrated directly west of the Interstate 85 North corridor along Peachtree Industrial Boulevard. Current market conditions for flex product in the Norcross submarket show this sector having an overall vacancy rate of 20.2% (2014), down from 21.4% from the previous year (2013) which, like Franklin Forest, is still significantly above the overall Atlanta Industrial vacancy average (7.90%).

Northwoods

PERIODEXISTING INVENTORY VACANCY

NETABSORPTION

DELIVERIES UC INVENTORYLEASING ACTIVITY

# BLDS TOTAL RBA DIRECT SF TOTAL SF VAC % # BLDS TOTAL RBA # BLDS TOTAL RBA

Norcross Industrial Flex Sector Historical Statistics

The submarket hits highest vacancy rate in 2003 - 27.2%

Over the past 15 years the average vacancy rate is 24.06%

Leasing velocity has remained relatively stable since 2007 (250,000 - 350,000)

Despite the steady leasing velocity, net absorption has been spotty

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Like Franklin Forest, vacant space in the Northwoods product type (Flex) and submarket (Norcross Industrial) remains plentiful. In a similar search for vacant space in the Norcross submarket, users in the 5,000 – 50,000 square foot range would find 79 options existing in 52 different properties. The plethora of options for tenants looking to move and/or re-locate into this market could create a prolonged, challenging environment to achieve stabilization.

Unlike Franklin Forest though, the Northwoods competitive set has outperformed the overall flex submarket (Norcross Flex Industrial). When analyzing Northwoods’ direct competitive set, as outlined in the 10 projects listed in the following table(on the following pages), it is evident that is has experienced a greater amount of leasing velocity in recent quarters; however, rents have remained relatively flat. The direct competitive set for Northwoods boasted a 12.8% vacancy factor at 2Q, 2014, as compared to the 20.2% vacancy factor for the overall Norcross submarket. It has since experienced a slight uptick in vacancy due to a few recent vacates and is now 17.8%, yet still lower than the Norcross flex industrial market as a whole. This is not surprising as the Northwoods Business Park is well positioned, thoughtfully maintained, centrally located and positively perceived in the brokerage and tenant community as a viable, strategic place to operate a business.

Northwoods Competitive Set - Vacancy Rate (%)

Northwood’s competitive st vacancy dropped over 20% from the peak in 2010 to 2Q 2014

Currently 17.8% vacant

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NORTHWOODS COMPETITIVE SETPICTURE # PARK LANDLORD / AGENT PARK SIZE


HEIGHTDOCK DOORS

YEAR BUILT


Northwoods 2725-3175 Northwoods Pkwy 2915-2995 Courtyards Drive 2850 Colonnades Court


84,512 15% vacant 25-100% Finish 14'-22' Dock-High 1984-1988 $5.00-$6.50 NNN Subject property

1 Northwoods Business Park 3140 - 3145 Northwoods Pky Trident Capital / CBRE 174,952

2 Bldgs5,600 3% vacant 25-75% Finish 24' Dock-High 2000 $4.25-$4.95 NNN One available space in 3145 building of 5,600 SF.

2 Northwoods Business Center 3000 Northwoods Pky OA Development / LPC 110,490

3 Bldgs31,890 28% vacant 85% Finish 14' Grade-Level 1983 $9.50 MG Single story office / flex product. Spaces ranging from

1,616 sf up to 6,996 sf. 3.5 / 1000 parking

3 4955 Avalon Ridge Pkwy Resource Real Estate Part-ners / CBRE 60,824 0

0% vacant 80-100% Finish 22' Dock-High 1996 $6.50-$7.50 Net Newer tilt-up product with 3.2 / 1000 parking. 100% leased.

4 4995 Avalon Ridge McCarty Construction / Comm Property Prof 30,676 0

0% vacant 75% Finish 14' - 24' Dock-High 1996 $7.95 - $9.95 NNN Newer tilt-up product with 3 / 1000 parking. 3 spaces available with heavy office.

5 4825 S. Old Peachtree Rd Progress Acquisition / Heritage 55,447 0

0% vacant 18% Finish 22' Dock-High 1998 $4.95 NNN 100% leased. Heavy parking available at 4 / 1000 sf.

6Peachtree Tech Center 5804 - 5933 Peachtree Industrial Blvd 5854 & 5855 Peachtree Corners E

Various 291,180 6 Bldgs

15,400 5% vacant 20-65% Finish 12' - 22' Dock-High 1982 $5.50-$5.75 NNN One 15,000 Sf vacancy.

7 Nortech 5875 Peachtree Industrial Blvd ING Clarion / Avison Young 117,488

3 Bldgs14,675 12% vacant 15-100% Finish 18' Dock-High/

Grade Level 1985 $7.00/ NNN There are 3,000 and 11,000 SF spaces available with heavier office build out.

8 Chattahoochee Corners 4680 River Green Parkway

Annie International / Bull Realty 106,000 46,000

43% vacant 20% Finish 22'-24' Dock-High 1992 $3.50 - $6.50 NNN Excess land with 1.5 acres for expansion (36,000 SF), stor-age, or additional parking. Intended to be a user sale.

9 Beaver Ruin Business Center 1850 - 1900 Beaver Ridge Cir

Owner: St. Paul Fire and Marine Insurance Company / The Travelers Companies, Inc. Agent: Colliers

614,552 10 Bldgs

102,603 17% Vacant 15-100% Finish 14'-24' Dock-High /

Grade Level 1983 - 1998 $4.00 - $5.50 NNN

10 Reps Miller 3170 - 3190 Reps Miller Rd OA Development / LPC 161,834

3 Bldgs30,579 18% Vacant 50% Finish 24' Dock High /

Ramps 1997 - 1999 $6.00 - $8.00/NNN 3 Bldg Industrial Park with Heavy office buildout. Rates ranging from $6.00-$8.00. 2 Vacancies 7,000 and 28,000.

COMPETITIVE SET TOTAL/AVERAGES 1,461,443 17.8% 55%

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NORTHWOODS COMPETITIVE SETPICTURE # PARK LANDLORD / AGENT PARK SIZE


HEIGHTDOCK DOORS

YEAR BUILT


Northwoods 2725-3175 Northwoods Pkwy 2915-2995 Courtyards Drive 2850 Colonnades Court


84,512 15% vacant 25-100% Finish 14'-22' Dock-High 1984-1988 $5.00-$6.50 NNN Subject property

1 Northwoods Business Park 3140 - 3145 Northwoods Pky Trident Capital / CBRE 174,952

2 Bldgs5,600 3% vacant 25-75% Finish 24' Dock-High 2000 $4.25-$4.95 NNN One available space in 3145 building of 5,600 SF.

2 Northwoods Business Center 3000 Northwoods Pky OA Development / LPC 110,490

3 Bldgs31,890 28% vacant 85% Finish 14' Grade-Level 1983 $9.50 MG Single story office / flex product. Spaces ranging from

1,616 sf up to 6,996 sf. 3.5 / 1000 parking

3 4955 Avalon Ridge Pkwy Resource Real Estate Part-ners / CBRE 60,824 0

0% vacant 80-100% Finish 22' Dock-High 1996 $6.50-$7.50 Net Newer tilt-up product with 3.2 / 1000 parking. 100% leased.

4 4995 Avalon Ridge McCarty Construction / Comm Property Prof 30,676 0

0% vacant 75% Finish 14' - 24' Dock-High 1996 $7.95 - $9.95 NNN Newer tilt-up product with 3 / 1000 parking. 3 spaces available with heavy office.

5 4825 S. Old Peachtree Rd Progress Acquisition / Heritage 55,447 0

0% vacant 18% Finish 22' Dock-High 1998 $4.95 NNN 100% leased. Heavy parking available at 4 / 1000 sf.

6Peachtree Tech Center 5804 - 5933 Peachtree Industrial Blvd 5854 & 5855 Peachtree Corners E

Various 291,180 6 Bldgs

15,400 5% vacant 20-65% Finish 12' - 22' Dock-High 1982 $5.50-$5.75 NNN One 15,000 Sf vacancy.

7 Nortech 5875 Peachtree Industrial Blvd ING Clarion / Avison Young 117,488

3 Bldgs14,675 12% vacant 15-100% Finish 18' Dock-High/

Grade Level 1985 $7.00/ NNN There are 3,000 and 11,000 SF spaces available with heavier office build out.

8 Chattahoochee Corners 4680 River Green Parkway

Annie International / Bull Realty 106,000 46,000

43% vacant 20% Finish 22'-24' Dock-High 1992 $3.50 - $6.50 NNN Excess land with 1.5 acres for expansion (36,000 SF), stor-age, or additional parking. Intended to be a user sale.

9 Beaver Ruin Business Center 1850 - 1900 Beaver Ridge Cir

Owner: St. Paul Fire and Marine Insurance Company / The Travelers Companies, Inc. Agent: Colliers

614,552 10 Bldgs

102,603 17% Vacant 15-100% Finish 14'-24' Dock-High /

Grade Level 1983 - 1998 $4.00 - $5.50 NNN

10 Reps Miller 3170 - 3190 Reps Miller Rd OA Development / LPC 161,834

3 Bldgs30,579 18% Vacant 50% Finish 24' Dock High /

Ramps 1997 - 1999 $6.00 - $8.00/NNN 3 Bldg Industrial Park with Heavy office buildout. Rates ranging from $6.00-$8.00. 2 Vacancies 7,000 and 28,000.

55% 20’

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Peac

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Peachtree Industrial Blvd

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NORTHWOODS COMPETITIVE SET MAP

Chattahoochee Corners | Beaver Ruin Business Center | Beaver Ruin Business Center

Northwoods | Northwoods Business Park | Northwoods Business Center | 4955 Avalon Ridge Pkwy 4995

Avalon Ridge | 4825 S. Old Peachtree Rd | Peachtree Tech Center | Nortech 1 2 3

4 5 6 78 9 10

1

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VALUATION OVERVIEWThe valuation of Franklin Forest and Northwoods is based on our team’s thorough understanding of the Marietta and

Norcross Industrial markets, our extensive knowledge of the projects themselves, and our knowledge of the current capital market environment in Atlanta and surrounding markets.

We have utilized three different approaches to analyze the value for the projects. Those three approaches include: (1) the Direct Capitalization Approach (DCA); (2) the Comparable Sales Approach (CSA) and; (3) the IRR Approach (IRR). The first methodology is to cap the existing, Year 1 NOI at various market Cap Rates while assigning a more limited value to the remaining vacancy. In the CSA we analyze recent sales of similar type assets in the Atlanta MSA while the third approach, IRR, utilizes an 11 year Cash Flow with associated leasing and expense assumptions to analyze the IRR potential of the asset to an opportunistic buyer.

By utilizing all three approaches, we were able to identify our ultimate opinion of value for Franklin Forest and Northwoods. With all valuation approaches taken into consideration, we believe that a value between $36,080,000 ($41 psf) and $41,385,000 ($47 psf) is achievable for the total portfolio in today’s market.

The value ranges utilizing all three (3) of these approaches are outlined below and detailed further in the following pages. Understanding the different value ranges resulting from each approach, we have been able to identify our ultimate range of value.

Based on these approaches, we believe that the charts below identify the likely sale range for the Property.

1. Direct Capitalization Approach (DCA)

2. Sales Comparable Approach (SCA)HIGH VALUE TARGET VALUE CONSERVATIVE VALUE

VALUATION $44,010,000 $39,610,000 $35,210,000

PRICE PER SF $50.00 $45.00 $40.00

HIGH VALUE TARGET VALUE CONSERVATIVE VALUE

VALUATION $44,010,000 $39,610,000 $35,210,000

PRICE PER SF $50.00 $45.00 $40.00

3. IRR Approach (IRR)HIGH VALUE TARGET VALUE CONSERVATIVE VALUE

VALUATION $40,070,000 $38,640,000 $37,250,000

PRICE PER SF $45.53 $43.90 $42.32


VALUATION $41,385,000 $38,711,000 $36,080,000

PRICE PER SF $47.02 $43.98 $40.99

Final Opinion of Value

20

The first approach utilized in our evaluation is the direct capitalization approach. We have applied a cap rate to the existing NOI and imputed a value to the remaining vacancy. The sum of these two components is the basis for determining value in this approach.

Because Franklin Forest is located in a struggling micro market (higher vacancy rates) within Metro Atlanta, the leases are typically to more local, credit risk tenants. Investor is likely to utilize a market cap rate ranging from 8% to 10% on the in-place NOI. The value of the vacancy is determined by applying a cap rate against the market NOI derived after lease up and subtracting the transaction costs. The cap rate applied to the vacancy will be adjusted upward for risk and applied to the in-place NOI after a vacancy factor.

Franklin Forest1. Direct Capitalization Approach

BASE RENT ON VACANCY (96,694 SF @ $5.50 NNN PSF)

306,249 Total SF x 10% = 30,625 SF (Assuming 90% Occupancy)

127,319 SF (Current Vacancy) – 30,625 SF (Market Vacancy) = 96,694 SF

CAP RATE

SUB-TOTAL

LESST.I.(Approximately $6.85 PSF)

LESSCOMMISSIONS(8.94%)

VALUEONVACANCY

$531,817

15.00%$3,545,447$662,354$237,722$2,645,371

Based on the above valuation of the vacancy, we proceed to value the entire project using a range of cap rates on the December 2014 In-Place NOI* ($845,595) added to the value of the vacancy as noted below:

*Note: The December 2014 In-Place NOI that we received as part of the property materials, included all rent attributed to the Kratos lease. Based on our due diligence, we have found that Kratos has vacated as of their lease expiration date of January 2015, so their rent and additional rent charges were removed from the NOI calculation to achieve as more appropriate NOI as of today

7.50% 8.00% 8.50% 9.00% 9.50%

VALUE ON IN PLACE NOI

$11,274,600 $10,569,938 $9,948,176 $9,395,500 $8,901,000

PLUS VACANCY VALUE

$2,645,371 $2,645,371 $2,645,371 $2,645,371 $2,645,371

TOTAL VALUE $13,919,971 $13,215,309 $12,593,547 $12,040,871 $11,546,371

PRICE PER SF $45.45 $43.15 $41.12 $39.32 $37.70

Franklin Forest Direct Cap Table

This methodology suggests a range of value between $12,040,871 and $13,215,309 (app. $39.32 to $43.15 PSF). These amounts, with the attributed value to the vacancy, yields a cap rate range against the In-Place NOI of 6.40% to 7.02%.

21

Because the property currently is only 58% leased, the direct cap approach results in an initial yield for a potential investor that is lower than what is expected for this type of product and profile for in place income. With that in mind, by placing value to the vacancy as we have outlined, we believe that the value range indicated is appropriate and corresponds to our other valuation techniques that we will further outline in more detail. An investor may put less weight to the DCA given the occupancy level of the property, but we believe that is should still be considered into our ultimate recommendation


VALUATION $13,215,309 $12,593,547 $12,040,871.00

PRICE PER SF $43.15 $41.12 $39.32

Franklin Forest Direct Capitalization Approach

Like Franklin Forest, we have utilized the DCA as our first approach in determining the value for Northwoods. We have applied a cap rate to the existing NOI and imputed a value to the remaining vacancy. The sum of these two components is the basis for determining value in this approach.

As previously mentioned, Northwoods is located in a stronger submarket and micro more specific market as compared to Franklin Forest. Taking this into consideration, an investor may look to placing a lower cap rate to value the vacancy at Northwoods given stronger market fundamentals. With this in mind, we have placed a cap rate of 12.00% for the remaining vacancy. However, given the large amount of supply in this product type in the immediate area and the risk that Comcast (Northwoods largest tenant) may vacate, we have placed the same market cap rate range (8.00% -10.00%) as we did with Franklin Forest to be applied to the in-place NOI. Below is a similar breakdown of our valuation for Northwoods.

Northwoods1. Direct Capitalization Approach

BASE RENT ON VACANCY (27,123 SF @ $6.00 NNN PSF)

573,890 Total SF x 10% = 57,389 SF (Assuming 90% Occupancy)

84,512 SF (Current Vacancy) – 57,389 SF (Market Vacancy) = 27,123 SF

CAP RATE

SUB-TOTAL

LESST.I.(Approximately $6.00 PSF)

LESSCOMMISSIONS(8.94%)

VALUEONVACANCY

As with Franklin Forest, based on the above valuation of the vacancy, we proceed to value the entire project using a range of cap rates on the December 2014 In-Place NOI* ($1,849,585) added to the value of the vacancy as noted below:

*Note: As noted in previous conversations, we are aware that Comcast is a potential vacate at the end of their lease term. The December 2014 In-Place NOI that we received as part of the property materials, includes Comcast rent as they are still occupying their space. We have not removed their rent from the NOI calculation but incorporate that risk in the market cap rates applied to this valuation. We believe that other valuation techniques will better attribute the risk of their potential vacate than this approach.

$162,738

12.00%$1,356,150$162,738$72,744$1,120,668

22

7.50% 8.00% 8.50% 9.00% 9.50%

VALUE ON IN PLACE NOI

$24,661,133 $23,119,813 $21,759,824 $20,550,944 $19,469,316

PLUS VACANCY VALUE

$1,120,668 $1,120,668 $1,120,668 $1,120,668 $1,120,668

TOTAL VALUE $25,781,801 $24,240,481 $22,880,492 $21,671,612 $20,589,984

PRICE PER SF $44.92 $42.24 $39.87 $37.76 $35.88

Northwoods Direct Cap Table

Northwoods Direct Capitalization Approach

This methodology suggests a range of value between $21,671,612 and $24,240,481 (app. $37.76 to $42.24 PSF). These amounts, with the attributed value to the vacancy, yields a cap rate range against the In-Place NOI of 7.63% to 8.53%.

By utilizing the DCA for both properties, the resulting value range for the portfolio would be between $33,710,000 and $37,460,000 (app. $38.30 to $42.56 PSF). Please see the below chart for the portfolio value range.


VALUATION $24,240,481 $22,880,492 $21,671,612

PRICE PER SF $42.24 $39.87 $37.76

Portfolio Direct Capitalization Approach

HIGH VALUE TARGET VALUE CONSERVATIVE VALUEVALUATION $44,010,000 $39,610,000 $35,210,000 PRICE PER SF $50.00 $45.00 $40.00

23

The second approach used to value the portfolio was the Sales Comparison Approach (SCA). To complete this valuation technique, we analyzed sales comps for buildings of similar size, location, submarket and genre in the entire Atlanta MSA to apply an appropriate value range. Given that both Franklin Forest and Northwoods are highly comparable in the majority of these categories, we believe that these sales comparables compare to both projects. Therefore, we have only compiled one table of comparables to use for the entire portfolio. The following pages outline nine (9) sales comparables over the last 24 – 36 months.

As you can see from the sales comparable table on the following page, the values range between $24.00 – $55.00 PSF with an overall average of $42.61 PSF and an overall average cap rate of 8.46%. One comparison factor of high impact and importance when comparing these sales transactions to the portfolio is the occupancy at time of sale. Three (3) of the comparables were above 85%+ occupied when they traded while the other six (6) comparables were all less stabilized and had occupancy levels lower than 75%. When removing the more stabilized properties, the average value for the remaining six (6) buildings is $37.00 PSF with an average cap rate of 8.52% and occupancy of 58.2%.

In summary, based on the analysis of these comparables, we believe a value between $40.00 – $50.00 psf (approximately $35,210,000 – $44,010,000).

2. Sales Comparison Approach

Sales Comparable Approach (SCA)HIGH VALUE TARGET VALUE CONSERVATIVE VALUE

VALUATION $44,010,000 $39,610,000 $35,210,000

PRICE PER SF $50.00 $45.00 $40.00

24

SALES COMPARABLES

PICTURE PROPERTY SUB-MARKET

SALE DATE

SF SELLER BUYER PRICE PSF CAP RATE

OCC. NOTES

1) 2825 Pacific Drive & 6400, 6410 6420 Atlan-tic Blvd

Northeast Nov-14 210,662 IndCor Properties

Industry Capital

$5,117,800 $24 N/A 38.0% 4-building portfolio 38% leased at sale. Portfolio included one shallow bay building and other three buildings were flex build-ings built in 1981.

2) Hembree Park 105 Hembree Park Drive

North Central

Sep-14 419,574 CalSTRS Sperry Equities

$21,000,000 $50 9.00% 84.6% 7-building portfolio totaling 419,574 SF located in Atlanta's North Central submarket. Built in 1986, the buildings are flex buildings.

3) Peachtree Corporate Center

Northeast Aug-14 192,700 NTS Development Company

Industry Capital $8,500,000 $44 N/A 68.0% 5-building portfolio, 63% leased flex park located in the North-east. Built in 1980, they were 68% leased at the time of sale. Off market transaction.

4)Sandy Plains Business Park

Northwest Jul-14 167,329 Duetsche Bank Asset & Wealth Mgmt (RREEF)

SDM Partners $7,500,000 $45 8.25% 94.0% 3-building business park that was 94%-leased at sale. Built in 1986, rear-loading facility features 22' clear heights, 45 dock high doors, 65% office finish.

5) 1000 Holcomb Woods Parkway

North Central

Jul-14 244,292 Common-Wealth REIT

Lone Star Funds $9,267,850 $38 8.00% 70.0% 4-building business park that was 70% leased at sale. Built in 1986 and renovated in 1998. The asset sold as part of a 20-property national portfolio, on an allocated 8% cap rate.

6) Regency & Oakbrook & Northgate

Multi-Market

May-14 721,326 Trident Capital Group

MDH Partners $39,700,000 $55 7.91% 86.0% 3 parks consisting of 15 rear loading buildings totaling over 700,000 SF- Regency (26,339 SF), Oakbrook (248,687 SF), and Northgate (208,300 SF)- located in Atlanta's I-85 Northeast and I-75 Northwest Submarkets.

7) Chattahooche Cor-ners at River Green

Northeast Oct-13 250,497 The Alter Group

RexHall $13,709,150 $55 N/A 55.0% 5-building sale of multi-tenant and single-tenant flex prop-erties. The buildings were 55% occupied at time of sale nd feature 22' clear height and various parking ratios.

8) Regency & Oakbrook Park

Northeast Jun-12 546,872 DCT Industrial

Trident Capital Group

$19,275,000 $35 8.43% 71.0% Portfolio sale of 13 properties. Flex light distribution

9) Breckinridge Center & Breckinridge Ex-change

Northeast Jun-12 374,285 CW Capital Goddard Invest-ment Group

$9,200,000 $25 9.14% 47.0% Brekinridge Center sold for $6.0 M (cap of 8.84%) and Breckin-ridge Exchange sold for $3.2 M (9.69% cap).

TOTALS 3,127,537

25

SALES COMPARABLES

PICTURE PROPERTY SUB-MARKET

SALE DATE

SF SELLER BUYER PRICE PSF CAP RATE

OCC. NOTES

1) 2825 Pacific Drive & 6400, 6410 6420 Atlan-tic Blvd

Northeast Nov-14 210,662 IndCor Properties

Industry Capital

$5,117,800 $24 N/A 38.0% 4-building portfolio 38% leased at sale. Portfolio included one shallow bay building and other three buildings were flex build-ings built in 1981.

2) Hembree Park 105 Hembree Park Drive

North Central

Sep-14 419,574 CalSTRS Sperry Equities

$21,000,000 $50 9.00% 84.6% 7-building portfolio totaling 419,574 SF located in Atlanta's North Central submarket. Built in 1986, the buildings are flex buildings.

3) Peachtree Corporate Center

Northeast Aug-14 192,700 NTS Development Company

Industry Capital $8,500,000 $44 N/A 68.0% 5-building portfolio, 63% leased flex park located in the North-east. Built in 1980, they were 68% leased at the time of sale. Off market transaction.

4)Sandy Plains Business Park

Northwest Jul-14 167,329 Duetsche Bank Asset & Wealth Mgmt (RREEF)

SDM Partners $7,500,000 $45 8.25% 94.0% 3-building business park that was 94%-leased at sale. Built in 1986, rear-loading facility features 22' clear heights, 45 dock high doors, 65% office finish.

5) 1000 Holcomb Woods Parkway

North Central

Jul-14 244,292 Common-Wealth REIT

Lone Star Funds $9,267,850 $38 8.00% 70.0% 4-building business park that was 70% leased at sale. Built in 1986 and renovated in 1998. The asset sold as part of a 20-property national portfolio, on an allocated 8% cap rate.

6) Regency & Oakbrook & Northgate

Multi-Market

May-14 721,326 Trident Capital Group

MDH Partners $39,700,000 $55 7.91% 86.0% 3 parks consisting of 15 rear loading buildings totaling over 700,000 SF- Regency (26,339 SF), Oakbrook (248,687 SF), and Northgate (208,300 SF)- located in Atlanta's I-85 Northeast and I-75 Northwest Submarkets.

7) Chattahooche Cor-ners at River Green

Northeast Oct-13 250,497 The Alter Group

RexHall $13,709,150 $55 N/A 55.0% 5-building sale of multi-tenant and single-tenant flex prop-erties. The buildings were 55% occupied at time of sale nd feature 22' clear height and various parking ratios.

8) Regency & Oakbrook Park

Northeast Jun-12 546,872 DCT Industrial

Trident Capital Group

$19,275,000 $35 8.43% 71.0% Portfolio sale of 13 properties. Flex light distribution

9) Breckinridge Center & Breckinridge Ex-change

Northeast Jun-12 374,285 CW Capital Goddard Invest-ment Group

$9,200,000 $25 9.14% 47.0% Brekinridge Center sold for $6.0 M (cap of 8.84%) and Breckin-ridge Exchange sold for $3.2 M (9.69% cap).

$133,269,800 $42.61 8.46% 68.18%

26

The following is a map that identifies the location of the aforementioned sales comparables and their proximity to both Franklin Forest and Northwoods.

6 4

25

1

ATLANTA

27

7

9

6

76

13

2

Franklin Forest

Northwoods

2825 Pacific Dr and 6400, 6410, 6420 Atlantic Blvd

Hembree Park

Peachtree Corporate Center

Sandy Plains Business Park

1000 Holcomb Woods Parkway

Regency and Oakbrook and Northgate

Chattahooche Corners at River Green

Regency & Oakbrook Park

Breckinridge Center & Breckinridge Exchange

1

2

34

5

6

7

8

9

1

2

Sales Comparables

28

Lastly, we utilized the IRR approach by utilizing current market terms to assume lease up inside the portfolio.

Using the Argus Valuation DCF model, the Property’s cash flows were generated to determine value. Based on this understanding, an 11 year cash flow analysis was created by using current market rents between $4.50/sf NNN and $7.50/sf NNN (depending on the office build out in individual suite product types), projected expense data, and utilizing the other major assumptions listed in the following pages. From this analysis, we were able to create a range of value that we believe a typical investor would likely attribute to the Property in its current condition.

We have applied varying discount rates and exit caps between the two projects. Given that the micro market for Franklin Forest is considered to be a less traditional market and the competitive set has struggled more as compared to the Norcross industrial market (Northwoods), we have applied a slightly higher discount rate range to it. For Franklin Forest, we believe an investor will price the opportunity based on a 10- year NPV (discounted cash flow analysis) with a 16.00% – 20.00% levered discount rate and look to achieve approximately 18%+ levered returns using modest debt assumptions, while a similar investor would look to achieve slightly lower levered returns 14.00 - 18.00% for Northwoods.

Given these assumptions, we believe that the most likely investor for the entire portfolio will be a local/regional buyer, looking for value-add (15.00-18.00% +) levered returns during a quick (four - five year) hold period. These buyers will look add smart capital where needed, lease up the vacancy, stabilize the current tenancy and be able to push rates in new leases as the market conditions continue to improve.

Based on these assumptions, we believe that the chart below identifies the likely sale range for the Property:

IRR ApproachHIGH VALUE TARGET VALUE CONSERVATIVE VALUE

VALUATION $40,070,000 $38,640,000 $37,250,000

PRICE PER SF $45.53 $43.90 $42.32

Assuming the value-add investment profile of the portfolio, we believe that most investors will look to value the property using the IRR Approach and have, therefore, given the most weight to the values generated using these assumptions in our final opinion of value.

Franklin ForestLeveraged NPV of Cash Flows with Exit Cap Rate and Discount Rate Sensitivity (4 Year Hold)

NorthwoodsLeveraged NPV of Cash Flows with Exit Cap Rate and Discount Rate Sensitivity (4 Year Hold)

LEVERED DISCOUNT RATE

EXIT CAP RATE 16.00% 17.00% 18.00% 19.00% 20.00%

8.00% $13,974,375 $13,711,544 $13,451,975 $13,195,721 $12,941,238

8.25% $13,576,740 $13,322,686 $13,070,297 $12,821,161 $12,575,324

8.50% $13,205,277 $12,956,586 $12,710,982 $12,468,537 $12,230,000

8.75% $12,830,629 $12,611,699 $12,372,284 $12,136,135 $11,903,112

9.00% $12,521,600 $12,281,760 $12,048,473 $11,822,202 $11,594,032

EXIT CAP RATE 14.00% 15.00% 16.00% 17.00% 18.00%

7.75% $28,410,139 $27,912,170 $27,419,669 $26,932,767 $26,448,284

8.00% $27,611,475 $27,130,968 $26,652,716 $26,179,946 $25,712,778

8.25% $26,866,725 $26,378,172 $25,931,389 $25,472,650 $25,018,559

8.50% $26,121,778 $25,706,502 $25,254,001 $24,806,948 $24,365,176

8.75% $25,499,987 $25,054,822 $24,614,518 $24,179,201 $23,747,081


3. The IRR Approach


29

ARGUS VALUATION ASSUMPTIONSGeneral Assumptions

Operating Expense Assumptions

ANALYSIS PERIOD April 1, 2015 - March 31, 2026

PORTFOLIO RSF 880,139 Total SF

ANNUAL GROWTH RATES

GENERAL INFLATION 2.50%

MARKET RENT 0%-Year 1

3.0% Year 2 and beyond

VACANCY LOSS 10% of Potential Gross Revenue reduced by absorption and turnover Lease Up Period vacancy.

LEASE UP PERIOD We assume that the vacancy of 211,831 SF is leased up over 24 months of the analysis with a buyer funding all tenancy costs for the new tenants.

GENERAL The 2014 operating statements were reviewed to produce the operating expense baseline assumptions used for the valuation.

MANAGEMENT FEE A management fee of 3.00% of EGR was utilized.

CAPITAL RESERVE $0.25 per RSF.

30

Market Leasing Assumptions

*Note: We have tiered the market assumptions to specific buildings within the portfolio based highly on the amount of office build out that we believe to be in the buildings. We were not provided a specific outline of this breakdown so we have utilized our market understanding of every building and the knowledge that we have of the various tenants and their specific space needs.

MARKET RENTAL RATE

Franklin Forest$5.00/SF (NNN) – 825 & 850 Franklin Court $5.50/SF (NNN) – 2850 Colonnades Court$6.50/SF (NNN) – 810/830 Franklin Court and 811/821 Livingston Court$7.50/SF (NNN) – 841 Livingston Court

Northwoods$5.00/SF (NNN) – 2725/3040/3055 Northwoods Pkwy$5.50/SF (NNN) – 835 & 840 Franklin Court$6.50/SF (NNN) – 2925-2995 Courtyards Drive, 3075/3100/3155/3175 Northwoods Pkwy, and 2915 Courtyards Dr

FREE RENT New Leases - 5 months free (1 month / Lease Year of Term) Renewal Leases - 5 months - Year 1 5 months - Year 2 2.5 months – Year 3 and beyond

OPERATING EXPENSES

We assume all new tenants pay their pro rata share of all the operating Pass Through expenses.

TENANT IMPROVEMENTS

Franklin Forest(1) New ($6.00/RSF) & Renew ($4.00/RSF) – 825 & 850 Franklin Court (2) New ($6.00/RSF) & Renew ($4.00/RSF) – 2850 Colonnades Court(3) New ($10.00/RSF) & Renew ($5.00/RSF) – 810/830 Franklin Court and 811/821 Livingston Court(4) New ($10.00/RSF) & Renew ($5.00/RSF) – 841 Livingston Court

Northwoods(1) New ($5.00/RSF) & Renew ($3.00/RSF) – 2725/3040/3055 Northwoods Pkwy and 835/840 Franklin Court(2) New ($8.00/RSF) & Renew ($4.00/RSF) –3075/3100/3155/3175 Northwoods Pkwy, and 2915 Courtyards Drive (3) New ($12.00/RSF) & Renew ($6.00/RSF) –2925-2995 Courtyards Drive **Note: This is based on the information received, that the current owner anticipates if Comcast were to vacate at the end of their term, it would cost approximately $12.00/RSF to retrofit their space.

LEASING COMMISSION*

New: 6.00% plus 100% of first month’s rent Renewal: 6.00%*Note: Both submarkets are heavily brokered and we have assumed that all deals have outside representation.

RENEWAL PROBABILITY

Franklin Forest(1) 85% / 15% – 841 Livingston Court(2) 75% / 25% - All other buildings

Northwoods(1) 50% / 50% – 2925-2995 Courtyards Drive *(2) 75% / 25% - All other buildings*Note: We have assumed a 50/50 probability that Comcast renews at the end of their term.

DOWNTIME 9 Months

31

FRANKLIN FOREST AND NORTHWOODS PORTFOLIO VALUATION

Square Feet

Purchase Price PSF Year 1

Cap RateYear 2

Cap Rate Occ. Exit Cap Rate

Exit PSF IRR Leveraged

IRR

Franklin Forest Industrial Park 306,249 $12,709,334 $41.50 5.52% 8.19% 58.43% 8.50% $60.14 10.90% 18.01%

Northwoods Atlanta Business Park

573,890 $25,934,089 $45.19 6.73% 7.88% 85.27% 8.25% $60.13 9.66% 16.00%

TOTAL 880,139 $38,643,423 $43.91 6.34% 8.10% 75.93% $60.14 10.08% 16.70%

Rentable SF: 880,139

Occupied SF: 668,308

% Occupied: 75.93%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

March-16 March-17 March-18 March-19 March-20 March-21 March-22 March-23 March-24 March-25 March-26

TOTAL NOI $2,448,262 $3,130,185 $3,994,081 $4,258,760 $4,412,599 $4,508,776 $4,255,186 $4,797,661 $5,169,720 $5,346,812 $5,284,984

CAP RATE 6.34% 8.10% 10.34% 11.02% 11.42% 11.67% 11.01% 12.42% 13.38% 13.84% 13.68%

TENANT ROLLOVER SCHEDULEVacant Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Square Feet: 211,831 256,410 67,099 66,996 52,497 178,280 11,118 - 35,908

% on Total: 24.07% 29.13% 7.62% 7.61% 5.96% 20.26% 1.26% 0.00% 4.08%

Cumulative %: 24.07% 53.20% 60.82% 68.44% 74.40% 94.66% 95.92% 95.92% 100.00%

CONSOLIDATED CASH FLOWS1 2 3 4 5 6 7 8 9 10 11 12

Purchase Price March-16 March-17 March-18 March-19 March-20 March-21 March-22 March-23 March-24 March-25 March-26 March-27

Franklin Forest Industrial Park

($12,899,974) ($194,821) ($384,551) $801,033 $19,360,298


($26,323,100) $478,316 ($389,884) $1,547,915 $36,212,607

Total Cash Flow ($39,223,074) $283,495 ($774,435) $2,348,948 $55,572,905 $0 $0 $0 $0 $0 $0 $0 $0

UNLEVERAGED IRR 10.08%

CONSOLIDATED LEVERAGED CASH FLOWS1 2 3 4 5 6 7 8 9 10 11 12

Purchase Price (Equity) March-16 March-17 March-18 March-19 March-20 March-21 March-22 March-23 March-24 March-25 March-26 March-27

Franklin Forest Industrial Park

($5,183,314) ($505,820) ($695,550) $490,034 $11,274,327


($10,576,836) ($156,294) ($1,024,494) $913,305 $19,712,743

Total Cash Flow ($15,760,150) ($662,114) ($1,720,044) $1,403,339 $30,987,071 $0 $0 $0 $0 $0 $0 $0 $0

LEVERAGED IRR 16.70%

32

FRANKLIN FOREST CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

FOR THE YEARS ENDING

MAR-2016 MAR-2017 MAR-2018 MAR-2019 MAR-2020 MAR-2021 MAR-2022 MAR-2023 MAR-2024 MAR-2025 MAR-2026

Potential Gross Revenue

- Base Rental Revenue $1,987,557 $1,954,683 $1,943,009 $1,984,509 $2,029,619 $2,051,546 $2,109,205 $2,170,825 $2,233,371 $2,301,479 $2,369,849

- Absorption & Turnover Vacancy -718,947 -311,677 -41,253 -23,235 -4,819 -60,617 -183,747 -46,016 -13,025 -22,345 -11,508

- Base Rent Abatements -132,621 -283,723 -122,328 -23,484 -19,883 -71,406 -297,193 -113,208 -36,930 -34,915 -17,982

Scheduled Base Rental Revenue 1,135,989 1,359,283 1,779,428 1,937,790 2,004,917 1,919,523 1,628,265 2,011,601 2,183,416 2,244,219 2,340,359

Expense Reimbursement Revenue 169,405 326,110 441,764 466,927 497,103 501,829 507,527 563,231 589,849 602,535 621,159

Total Potential Gross Revenue 1,305,394 1,685,393 2,221,192 2,404,717 2,502,020 2,421,352 2,135,792 2,574,832 2,773,265 2,846,754 2,961,518

-General Vacancy -184,992 -219,560 -245,865 -187,580 -48,207 -216,069 -265,604 -264,565 -285,795

Effective Gross Revenue 1,305,394 1,685,393 2,036,200 2,185,157 2,256,155 2,233,772 2,087,585 2,358,763 2,507,661 2,582,189 2,675,723

Operating Expenses

-Cleaning 13,895 14,242 14,598 14,963 15,337 15,721 16,114 16,517 16,930 17,353 17,787

-Repairs & Maintenance 33,765 34,609 35,474 36,361 37,270 38,202 39,157 40,136 41,139 42,168 43,222

-Parking 7,384 7,569 7,758 7,952 8,151 8,354 8,563 8,777 8,997 9,222 9,452

-Utilities 29,610 30,350 31,109 31,887 32,684 33,501 34,339 35,197 36,077 36,979 37,903

-Ground Care 64,911 66,534 68,197 69,902 71,650 73,441 75,277 77,159 79,088 81,065 83,092

-Pest Control 4,990 5,115 5,243 5,374 5,508 5,646 5,787 5,932 6,080 6,232 6,388

-Security 33,462 34,299 35,156 36,035 36,936 37,859 38,806 39,776 40,770 41,789 42,834

-Management Fee 39,162 50,562 61,086 65,555 67,685 67,013 62,628 70,763 75,230 77,466 80,272

-Real Estate Taxes 225,750 231,394 237,179 243,108 249,186 255,415 261,801 268,346 275,054 281,931 288,979

-Property Insurance 10,719 10,987 11,262 11,543 11,832 12,128 12,431 12,742 13,060 13,387 13,721

-General Admin 1,365 1,399 1,434 1,470 1,507 1,544 1,583 1,623 1,663 1,705 1,747

-N/R - Cleaning 16,141 16,545 16,958 17,382 17,817 18,262 18,719 19,187 19,666 20,158 20,662

-N/R - Repairs & Maintenance 14,798 15,168 15,547 15,936 16,334 16,743 17,161 17,590 18,030 18,481 18,943

-N/R - Utilities 59,754 61,248 62,779 64,349 65,957 67,606 69,296 71,029 72,804 74,625 76,490

-N/R - Miscellanous 32,702 33,520 34,358 35,216 36,097 36,999 37,924 38,872 39,844 40,840 41,861

-N/R - General Admin 15,125 15,503 15,891 16,288 16,695 17,113 17,540 17,979 18,428 18,889 19,361

Total Operating Expenses 603,533 629,044 654,029 673,321 690,646 705,547 717,126 741,625 762,860 782,290 802,714

Net Operating Income 701,861 1,056,349 1,382,171 1,511,836 1,565,509 1,528,225 1,370,459 1,617,138 1,744,801 1,799,899 1,873,009

Leasing & Capital Costs

-Tenant Improvements 436,499 809,687 193,764 147,706 0 335,531 909,731 378,164 82,675 115,494 59,194

-Leasing Commissions 153,621 322,737 76,936 62,870 0 139,420 413,332 169,855 35,269 50,616 26,069

-Capital Reserve 76,562 78,476 80,438 82,449 84,510 86,623 88,789 91,008 93,284 95,616 98,006

-CAPEX 230,000 230,000 230,000 0 0 0 0 0 0 0 0

Total Leasing & Capital Costs 896,682 1,440,900 581,138 293,025 84,510 561,574 1,411,852 639,027 211,228 261,726 183,269

Cash Flow Before Debt Service & Taxes -194,821 -384,551 801,033 1,218,811 1,480,999 966,651 -41,393 978,111 1,533,573 1,538,173 1,689,740

33

NORTHWOODS CASH FLOWS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

FOR THE YEARS ENDING

MAR-2016 MAR-2017 MAR-2018 MAR-2019 MAR-2020 MAR-2021 MAR-2022 MAR-2023 MAR-2024 MAR-2025 MAR-2026

Potential Gross Revenue

- Base Rental Revenue $3,166,369 $3,200,405 $3,348,502 $3,443,495 $3,619,803 $3,884,981 $4,006,764 $4,100,379 $4,220,525 $4,348,068 $4,494,668

- Absorption & Turnover Vacancy -788,395 -120,211 -28,953 -48,820 -159,521 -101,030 -488,189 -83,739 -29,961 -72,674 -178,184

- Base Rent Abatements -181,433 -538,058 -132,789 -76,281 -117,709 -250,081 -353,192 -230,620 -88,327 -55,704 -322,272

Scheduled Base Rental Revenue 2,196,541 2,542,136 3,186,760 3,318,394 3,342,573 3,533,870 3,165,383 3,786,020 4,102,237 4,219,690 3,994,212

Expense Reimbursement Revenue 541,219 780,714 870,387 900,898 908,794 957,605 895,596 1,011,463 1,059,923 1,071,222 1,069,138

Total Potential Gross Revenue 2,737,760 3,322,850 4,057,147 4,219,292 4,251,367 4,491,475 4,060,979 4,797,483 5,162,160 5,290,912 5,063,350

-General Vacancy -224,095 -379,657 -377,991 -281,568 -358,220 -404,383 -489,251 -463,685 -345,969

Effective Gross Revenue 2,737,760 3,098,755 3,677,490 3,841,301 3,969,799 4,133,255 4,060,979 4,393,100 4,672,909 4,827,227 4,717,381

Operating Expenses

-Cleaning 2,875 2,947 3,021 3,096 3,173 3,253 3,334 3,417 3,503 3,590 3,680

-Repairs & Maintenance 111,882 114,679 117,546 120,485 123,497 126,584 129,749 132,993 136,317 139,725 143,218

-Parking 201 206 211 216 222 227 233 239 245 251 257

-Utilities 74,254 76,110 78,013 79,963 81,963 84,012 86,112 88,265 90,471 92,733 95,051

-Ground Care 141,977 145,526 149,165 152,894 156,716 160,634 164,650 168,766 172,985 177,310 181,743

-Pest Control 3,741 3,835 3,930 4,029 4,129 4,233 4,338 4,447 4,558 4,672 4,789

-Security 53,437 54,773 56,142 57,546 58,984 60,459 61,971 63,520 65,108 66,735 68,404

-Management Fee 82,133 92,963 110,325 115,239 119,094 123,998 121,829 131,793 140,187 144,817 141,521

-Real Estate Taxes 352,202 361,007 370,032 379,283 388,765 398,484 408,446 418,657 429,124 439,852 450,848

-Property Insurance 18,169 18,623 19,089 19,566 20,055 20,557 21,070 21,597 22,137 22,691 23,258

-General Admin 1,603 1,643 1,684 1,726 1,769 1,814 1,859 1,905 1,953 2,002 2,052

-N/R - Cleaning 12,115 12,418 12,728 13,047 13,373 13,707 14,050 14,401 14,761 15,130 15,508

-N/R - Repairs & Maintenance 31,256 32,037 32,838 33,659 34,501 35,363 36,247 37,154 38,082 39,034 40,010

-N/R - Utilities 53,057 54,383 55,743 57,137 58,565 60,029 61,530 63,068 64,645 66,261 67,917

-N/R - Miscellaneous 24,709 25,327 25,960 26,609 27,274 27,956 28,655 29,371 30,106 30,858 31,630

-N/R - General Admin 27,748 28,442 29,153 29,882 30,629 31,394 32,179 32,984 33,808 34,653 35,520

Total Operating Expenses 991,359 1,024,919 1,065,580 1,094,377 1,122,709 1,152,704 1,176,252 1,212,577 1,247,990 1,280,314 1,305,406

Net Operating Income 1,746,401 2,073,836 2,611,910 2,746,924 2,847,090 2,980,551 2,884,727 3,180,523 3,424,919 3,546,913 3,411,975

Leasing & Capital Costs

-Tenant Improvements 451,528 1,406,901 317,960 261,755 583,259 391,510 1,781,325 257,469 255,006 199,481 832,352

-Leasing Commissions 244,463 481,138 166,677 110,587 341,242 200,608 654,860 141,289 130,123 78,682 492,137

-Capital Reserve 143,472 147,059 150,736 154,504 158,367 162,326 166,384 170,544 174,807 179,177 183,657

-CAPEX 428,622 428,622 428,622 0 0 0 0 0 0 0 0

Total Leasing & Capital Costs 1,268,085 2,463,720 1,063,995 526,846 1,082,868 754,444 2,602,569 569,302 559,936 457,340 1,508,146

Cash Flow Before Debt Service & Taxes 478,316 -389,884 1,547,915 2,220,078 1,764,222 2,226,107 282,158 2,611,221 2,864,983 3,089,573 1,903,829

34

Tenant NameType & Suite NameLease Dates & Term

FloorSqftBldg Share

Rate & AmountPer YearPer Month

Changes on

Changes to

MonthstoAbate

PcnttoAbate

Description ofOperating ExpenseReinbursements

ImprovementsRateAmount

CommssnsRateAmount

Assumption aboutSubsequent termsfor this tenant

1 Ambient Healthcare of $8.75 - - - - See method: OPEX - - Market

Industrial, Suite: A ( 8,912 $77,980 Only See assumption:

Feb-2003 to Mar-2017 2.9% $0.73 $5.00 NNN

170 Months $6,498

2 Vacant $5.00 Sep-2016 $5.15 1-5 100% Net: Pays a full $6.00 $2.19 Market

Industrial, Suite: A1 3,586 $17,930 Sep-2017 $5.30 pro-rata share of 8.96% See assumption:

Sep-2015 to Aug-2020 1.2% $0.42 Sep-2018 $5.46 all reimbursable $21,516 $7,863 $5.00 NNN

60 Months $1,494 Sep-2019 $5.63 expenses.

3 Wang Electro-Opto Cor $5.10 - - - - See method: OPEX - - Market

Industrial, Suite: B ( 7,707 $39,306 Only See assumption:

Oct-2013 to Dec-2016 2.5% $0.43 $5.00 NNN

39 Months $3,275

4 AFA Protective System $7.50 May-2015 $7.73 - - See method: OPEX - - Market

Industrial, Suite: C ( 10,276 $77,070 May-2016 $7.96 Only See assumption:

May-1998 to Feb-2020 3.4% $0.63 May-2017 $8.20 $5.00 NNN

262 Months $6,423 May-2018 $8.44

5 Miller Electric Compa $5.31 - - - - Net: Pays a full - - Market

Industrial, Suite: E ( 9,929 $52,723 pro-rata share of See assumption:

Sep-2012 to Feb-2018 3.2% $0.44 all reimbursable $5.00 NNN

66 Months $4,394 expenses.

6 Global Environmental $10.44 - - - - See method: OPEX - - Market


Aug-2008 to Mar-2016 2.8% $0.87 $6.50 NNN

92 Months $7,501

7 Can You Imgaine $7.03 - - - - See method: OPEX - - Market

Industrial, Suite: EFG 11,354 $79,819 Only See assumption:

Jun-2005 to Jan-2016 3.7% $0.59 $6.50 NNN

128 Months $6,652

8 Kayoda Aladesuyi East $7.43 - - - - Net: Pays a full - - Market

Industrial, Suite: H ( 3,708 $27,550 pro-rata share of See assumption:

Feb-2012 to Jul-2017 1.2% $0.62 all reimbursable $6.50 NNN


9 Vacant $6.50 Nov-2016 $6.70 1-5 100.0% Net: Pays a full $10.00 $2.85 Market

Industrial, Suite: J ( 3,702 $24,063 Nov-2017 $6.90 pro-rata share of 9.0% See assumption:

Nov-2015 to Oct-2020 1.2% $0.54 Nov-2018 $7.10 all reimbursable $37,020 $10,553 $6.50 NNN

60 Months $2,005 Nov-2019 $7.32 expenses.

10 Floor Expo Inc $9.25 - - - - See method: OPEX - - Market


Aug-2008 to Mar-2016 2.8% $0.77 $6.50 NNN

92 Months $6,559

11 Vacant $6.50 Dec-2016 $6.70 1-5 100.0% Net: Pays a full $10.00 $2.85 Market

Industrial, Suite: B ( 12,199 $79,294 Dec-2017 $6.90 pro-rata share of 9.0% See assumption:

Dec-2015 to Nov-2020 4.0% $0.54 Dec-2018 $7.10 all reimbursable $121,990 $34,774 $6.50 NNN

60 Months $6,608 Dec-2019 $7.32 expenses.

12 Vacant $6.50 Mar-2017 $6.70 1-5 100.0% Net: Pays a full $10.00 $2.85 Market

Industrial, Suite: A ( 3,739 $24,304 Mar-2018 $6.90 pro-rata share of 9.0% See assumption:

Mar-2016 to Feb-2021 1.2% $0.54 Mar-2019 $7.10 all reimbursable $37,390 $10,658 $6.50 NNN

60 Months $2,025 Mar-2020 $7.32 expenses.

13 Vertisys Corp $8.56 - - - - See method: OPEX - - Market

Industrial, Suite: B ( 6,437 $55,101 & Ins See assumption:

Jul-2009 to May-2017 2.1% $0.71 $6.50 NNN

95 Months $4,592

FRANKLIN FOREST RENT ROLL

35


FloorSqftBldg Share


Changes on

Changes to

MonthstoAbate

PcnttoAbate



CommssnsRateAmount


14 Vacant $6.70 May-2017 $6.90 1-5 100.0% Net: Pays a full $10.25 $2.94 Market

Industrial, Suite: E ( 2,700 $18,077 May-2018 $7.10 pro-rata share of 9.0% See assumption:

May-2016 to Apr-2021 0.9% $0.56 May-2019 $7.32 all reimbursable $27,675 $7,927 $6.50 NNN

60 Months $1,506 May-2020 $7.54 expenses.

15 The Spark Agency $8.44 - - - - See method: OPEX - - Market

Industrial, Suite: G ( 2,682 $22,636 Only See assumption:

Jun-2010 to Jul-2015 0.9% $0.70 $6.50 NNN

62 Months $1,886

16 Restore-It $4.35 - - - - See method: OPEX - - Market

Industrial, Suite: A/B 14,893 $64,785 & Ins See assumption:

May-2011 to Oct-2015 4.9% $0.36 $5.00 NNN

54 Months $5,399

17 Lasership Inc $5.41 - - - - See method: OPEX - - Market

Industrial, Suite: C ( 20,551 $111,181 & Ins See assumption:

Nov-2013 to Dec-2018 6.7% $0.45 $5.00 NNN

62 Months $9,265

18 NDM Floors Distributo $5.50 - - - - See method: OPEX - - Market

Industrial, Suite: F ( 5,063 $27,847 & Ins See assumption:

Apr-2014 to Apr-2015 1.7% $0.46 $5.00 NNN

13 Months $2,321

19 Airware LLC $5.50 - - - - See method: OPEX - - Market

Industrial, Suite: G ( 5,063 $27,847 & Ins See assumption:

Apr-2014 to Apr-2017 1.7% $0.46 $5.00 NNN

37 Months $2,321

20 Vacant $5.30 Jul-2018 $5.46 1-5 100.0% Net: Pays a full $6.30 $2.33 Market

Industrial, Suite: H ( 9,689 $51,395 Jul-2019 $5.63 pro-rata share of 9.0% See assumption:

Jul-2017 to Jun-2022 3.2% $0.44 Jul-2020 $5.80 all reimbursable $61,077 $22,539 $5.00 NNN

60 Months $4,283 Jul-2021 $5.97 expenses.

21 Protection One Alarm $9.27 - - - - See method: OPEX - - Market


Oct-2004 to Apr-2015 4.7% $0.77 $6.50 NNN

127 Months $11,078

22 Vacant $5.67 Apr-2017 $5.83 1-5 100.0% Net: Pays a full $6.15 $2.48 Market

Industrial, Suite: A ( 35,908 $203,419 Apr-2018 $6.01 pro-rata share of 9.0% See assumption:

Apr-2016 to Mar-2021 11.7% $0.47 Apr-2019 $6.19 all reimbursable $220,834 $89,209 $5.50 NNN

60 Months $16,952 Apr-2020 $6.38 expenses.

23 Starband Communicatio $8.75 - - - - See method: OPEX - - Market

Industrial, Suite: G ( 35,908 $314,195 Only See assumption:

Dec-2001 to Apr-2021 11.7% $0.73 $7.50 NNN

233 Months $26,183

24 Vacant $5.67 Feb-2018 $5.83 1-5 100.0% Net: Pays a full $6.15 $2.48 Market

Industrial, Suite: A ( 25,386 $143,812 Feb-2019 $6.01 pro-rata share of 9.0% See assumption:

Feb-2017 to Jan-2022 8.3% $0.47 Feb-2020 $6.19 all reimbursable $156,124 $63,068 $5.50 NNN

60 Months $11,984 Feb-2021 $6.38 expenses.

25 Vacant $5.67 Nov-2017 $5.83 1-5 100.0% Net: Pays a full $6.15 $2.48 Market

Industrial, Suite: A1 20,364 $115,362 Nov-2018 $6.01 pro-rata share of 9.0% See assumption:


60 Months $9,614 Nov-2020 $6.38 expenses.

26 Vacant $5.67 Jan-2018 $5.83 1-5 100.0% Net: Pays a full $6.15 $2.48 Market

Industrial, Suite: B1 5,046 $28,586 Jan-2019 $6.01 pro-rata share of 9.0% See assumption:

Jan-2017 to Dec-2021 1.7% $0.47 Jan-2020 $6.19 all reimbursable $31,033 $12,536 $5.50 NNN

60 Months $2,382 Jan-2021 $6.38 expenses.

36


FloorSqftBldg Share


Changes on

Changes to

MonthstoAbate

PcnttoAbate



CommssnsRateAmount


27 Graphic Packaging Int $9.34 - - - - See method: OPEX - - Market

Industrial, Suite: B ( 4,976 $46,476 Only See assumption:

Dec-2007 to Apr-2015 1.6% $0.78 $5.50 NNN

89 Months $3,873

28 Vacant $5.67 Mar-2018 $5.83 1-5 100.0% Net: Pays a full $6.15 $2.48 Market

Industrial, Suite: C ( 5,000 $28,325 Mar-2019 $6.01 pro-rata share of 9.0% See assumption:


60 Months $2,360 Mar-2021 $6.38 expenses.

FRANKLIN FOREST RENT ROLL (CONT.)

TOTAL OCCUPIED SQFT: 178,930TOTAL AVAILABLE SQFT: 127,319

37


FloorSqftBldg Share


Changes on

Changes to

MonthstoAbate

PcnttoAbate



CommssnsRateAmount


1 Vox Populi Inc $3.98 - - - - See method: OPEX - - Market

Industrial, Suite: A1 27,253 $108,467 & Ins See assumption:

Jan-2012 to Jun-2019 4.8% $0.33 NNN (warehouse)

90 Months $9,039

2 HARP Business Service $4.60 - - - - Net: Pays a full - - Market

Industrial, Suite: A2 18,925 $87,055 pro-rata share of See assumption:

Oct-2014 to Feb-2020 3.3% $0.38 all reimbursable NNN (warehouse)


3 EFACEC USA Inc $4.92 - - - - Net: Pays a full - - Market

Industrial, Suite: B ( 15,228 $74,922 pro-rata share of See assumption:

Nov-2011 to Dec-2015 2.7% $0.41 all reimbursable NNN (warehouse)


4 Renewal by Anderson $4.75 - - - - Net: Pays a full - - Market

Industrial, Suite: C ( 15,280 $72,580 pro-rata share of See assumption:

Mar-2014 to Jul-2019 2.7% $0.40 all reimbursable NNN (warehouse)


5 Haso USA Inc $4.25 - - - - Net: Pays a full - - Market

Industrial, Suite: A ( 102,128 $434,044 pro-rata share of See assumption:

Oct-2014 to Dec-2019 17.8% $0.35 all reimbursable 5.50 NNN (Haso)


6 Comcast $6.46 - - - - See method: OPEX - - Vacate

Industrial, Suite: A ( 71,763 $463,589 & Ins See assumption:

Mar-2005 to Oct-2015 12.5% $0.54 mcast Buildings

128 Months $38,632




128 Months $14,719




128 Months $9,982

9 US Kids Golf LLC $3.45 - - - - See method: OPEX - - Market


Nov-2000 to Jan-2017 8.8% $0.29 NNN (warehouse)

195 Months $14,513

10 Sortimo North America $4.59 - - - - Net: Pays a full - - Market

Industrial, Suite: A ( 31,946 $146,632 pro-rata share of See assumption:

Mar-2013 to Aug-2018 5.57% $0.38 all reimbursable 5.00 NNN (flex)


11 Land Business Solutio $6.70 - - - - See method: OPEX - - Market


Apr-2013 to Mar-2018 2.90% $0.56 $6.50 NNN

60 Months $9,306

12 Vacant $6.50 Sep-2016 $6.70 1-5 100% Net: Pays a full $5.00 $2.85 Market

Industrial, Suite: B ( 24,733 $160,765 Sep-2017 $6.90 pro-rata share of 8.96% See assumption:

Sep-2015 to Aug-2020 4.31% $0.54 Sep-2018 $7.10 all reimbursable $123,665 $70,503 $6.50 NNN

60 Months $13,397 Sep-2019 $7.32 expenses.

13 Ingersoll-Rand Comp $6.75 - - - - See method: OPEX - - Market


Sep-2007 to Oct-2015 1.91% $0.56 $6.50 NNN

98 Months $6,168.00

NORTHWOODS RENT ROLL

38


FloorSqftBldg Share


Changes on

Changes to

MonthstoAbate

PcnttoAbate



CommssnsRateAmount


14 Vacant $6.50 Nov-2016 $6.70 1-5 100% Net: Pays a full $5.00 $2.85 Market

Industrial, Suite: B ( 13,109 $85,209 Nov-2017 $6.90 pro-rata share of 8.96% See assumption:


60 Months $7,101.00 Nov-2019 $7.32 expenses.

15 Loadmaster Supply Inc $10.89 Jan-2016 $11.22 - - See method: OPEX - - Market

Industrial, Suite: E ( 4,418 $48,118 Jan-2017 $11.55 Only See assumption:

Jan-2015 to Dec-2019 0.77% $0.91 Jan-2018 $11.90 $6.50 NNN

60 Months $4,010.00 Jan-2019 $12.26

16 Alixa Rx LLC $6.51 - - - - Net: Pays a full - - Market

Industrial, Suite: F ( 11,118 $72,378 pro-rata share of See assumption:

Jan-2013 to May-2020 1.94% $0.54 all reimbursable $6.50 NNN

89 Months $6,032.00 expenses.

17 Director of Facilitie $8.33 - - - - See method: OPEX - - Market

Industrial, Suite: A1 20,265 $168,807 & Ins See assumption:

Jan-2012 to Feb-2016 3.53% $0.69 $6.50 NNN

50 Months $14,067.00

18 Vacant $6.50 Mar-2017 $6.70 1-5 100% Net: Pays a full $5.00 $2.85 Market

Industrial, Suite: A2 13,265 $86,223 Mar-2018 $6.90 pro-rata share of 8.96% See assumption:


60 Months $7,185.00 Mar-2020 $7.32 expenses.

19 Sortimo $5.14 - - - - Net: Pays a full - - Market

Industrial, Suite: A3 7,000 $35,980 pro-rata share of See assumption:

Jul-2014 to Apr-2015 1.22% $0.43 all reimbursable $6.50 NNN


20 Vacant $6.70 May-2017 $6.90 1-5 100% Net: Pays a full $5.13 $2.94 Market

Industrial, Suite: A ( 25,421 $170,194.0 May-2018 $7.10 pro-rata share of 8.96% See assumption:

May-2016 to Apr-2021 4.43% $0.56 May-2019 $7.32 all reimbursable $130,283 $74,638 $6.50 NNN

60 Months $14,183.00 May-2020 $7.54 expenses.

21 Vacant $6.70 Mar-2018 $6.90 1-5 100% Net: Pays a full $8.20 $2.94 Market

Industrial, Suite: B ( 7,984 $53,453.0 Mar-2019 $7.10 pro-rata share of 8.96% See assumption:


60 Months $4,454.00 Mar-2021 $7.54 expenses.

22 Scool Specialty $8.50 - - - - See method: OPEX - - Market

Industrial, Suite: A ( 10,574 $89,879.0 Only See assumption:

Jul-2013 to Jun-2015 1.84% $0.71 $6.50 NNN

24 Months $7,490.00

23 Amano McGann Inc $7.25 - - - - Net: Pays a full - - Market

Industrial, Suite: B ( 5,165 $37,446.0 pro-rata share of See assumption:

Mar-2009 to Sep-2017 0.90% $0.60 all reimbursable $6.50 NNN


24 Rose Marks Delta Comp $3.09 - - - - Net: Pays a full - - Market

Industrial, Suite: B1 4,292 $13,262.0 pro-rata share of See assumption:

Feb-2013 to Feb-2016 0.75% $0.26 all reimbursable $6.50 NNN


25 Giben America Inc $5.75 - - - - Net: Pays a full - - Market

Industrial, Suite: C ( 20,027 $115,155.0 pro-rata share of See assumption:

Mar-2014 to Jun-2017 3.49% $0.48 all reimbursable $6.50 NNN


TOTAL OCCUPIED SQFT: 489,378TOTAL AVAILABLE SQFT: 84,512

39

NOTES

CHIP SIPPLESenior Investment Analyst

[email protected]

DENTON SHAMBURGERVice President404.266.7600

[email protected]

About Lincoln:

Lincoln Property Company is one of the largest and most respected diversified real estate services firms in the United States and is the only national real estate company to rank concurrently in the Top 10 lists of Management/Ownership of Office, Industrial and Multi-Family.

Lincoln’s Southeast regional organization was established in 1973 and has grown to become one of the firm’s largest and most successful operations through the management, acquisition and develop-ment of over 24 million square feet of commercial property valued at over $1.25 billion.

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