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OFFERING MEMORANDUM 120 WRENN DRIVE, CARY, NC

EXCLUSIVELY MARKETED BY:

2 | Cushman & Wakefield

THIS OFFERING MEMORANDUM is intended solely for your limited use to determine whether you

wish to express an interest in 120 Wrenn Drive in Cary, NC, as more particularly described herein

(“Property”). This memorandum contains brief, selected information pertaining to the business affairs

of the Property’s owner (“Owner”) and has been prepared by Cushman & Wakefield Commercial

Real Estate Services, Inc., ("Cushman & Wakefield"), the Owner’s exclusive agent, primarily from

information supplied by the Owner. Although representatives of the Owner have reviewed this

memorandum, it does not purport to be all-inclusive or contain all of the information that a potential

investor may desire. Neither the Owner, nor any of its members, officers, directors, employees or

agents, nor Cushman & Wakefield make any representation or warranty, expressed or implied,

as to the accuracy or completeness of any of the information contained herein. The Owner and

Cushman & Wakefield disclaim any liability which may be based on such information, errors therein,

or omissions therefrom. All financial data contained herein is unaudited. The information contained

herein represents estimates based on assumptions considered reasonable under the circumstances.

No representations or warranties, expressed or implied, are made that the actual results will conform

to such information. There is no representation as to environmental conditions of the Property, or as

to any other aspect of the Property.

By your receipt of this memorandum, you agree that this memorandum and the information

contained herein are of a confidential nature and that you will hold and treat them in the strictest

of confidence, and that you will not, directly or indirectly, disclose or permit anyone else to disclose

this memorandum or any part of the contents in any fashion or manner detrimental to the interests

of the Owner.

This memorandum shall not be deemed an indication of the state of affairs of the Owner or constitute

an indication that there has been no change in the business or affairs of the Owner since the date

of preparation of this memorandum. Neither the Owner nor Cushman & Wakefield undertakes any

obligation to provide additional information or to correct or update any of the information contained

in this confidential memorandum.

For more information regarding the proposed transaction, please contact one of the following

individuals:

INVESTMENT CONTACTS

• • •

Robert Hoyt Vice President +1 919 439 5154

[email protected]

• • •

Ben Litke Associate

+1 919 439 5145 [email protected]

120 Wrenn Drive | 3

EXECUTIVE SUMMARY

INVESTMENT SUMMARY

Cushman & Wakefield is pleased to present investors, owner occupants and buyers interested in the prospect of a Build-to-Suit opportunity at 120 Wrenn Drive in Cary. The 0.35 acre property features frontage on Wrenn Drive and Kildaire Farm Road. With development in mind, the site is currently cleared, graded and has Town of Cary approval in place for a three-story office building (parking on the first level and 2 floors of office space). The purchase price includes all site and building plans. 120 Wrenn Drive is located at the intersection of Wrenn Drive and Kildaire Farm Road near its intersection with Cary Parkway. Walkable amenities include the Hibernian, Carrabba’s, Chipotle, Starbucks, Capital Bank and the US Post

Office.

INVESTMENT HIGHLIGHTS

• Rare land and building ownership opportunity in Cary

• High visibility from Kildaire Farm Road

• Pre-approved site plans for a 20,340 SF building

• Site and building plans with Town of Cary approval will convey tobuyer in a sale

• Convenient access to US-1, Hwy 64 and I-40

• The Raleigh-Durham MSA was ranked #1 Fastest Growing U.S. Cityfrom 2000-2012 by Forbes with a current population of 1.8 million.

• Unemployment rate for the Raleigh-Cary CSA was 4.5% as of October 2014, below the national average with continuing job growth.

Apex

164

23

97

97

39

97

96

70

70

70

98

1

1

96

42

55

39

64

64

401

4 0

401

39

39

581

98

98

98

96

96

87

87

1012

85

751

751

751

751

75

42

42

64

64

64

86

86501

1556

50

56

96

26

54

55

1

1

55 401

401

50

85

85

8540

40

40

54

540

540

540

440

40

40440

40540

147

50

86

64

264

264

64

70

70

70

23

401

70

401

50115

70BYP

70BYP

70BUS

1BYP

64BUS

264ALT

6BYP

55BYP

54

Neuse

LakeWheeler

LakeJohnson

JordanLake

HawRiver

LakeBenson

River

GreshamsLake

LakeCrabtree

FallsLake

River

Neuse

RiverLittle

River

Little

RaleighEast

Airport

HoraceWilliamsAirport

Scale: Approximate Miles

0 .5 1 2 3 4

50115

50115

50115

50115

120 WRENN DRIVE

Acreage: 0.35

SALE PRICE: Call For Pricing

Raleigh

Cary


SITE

Address 120 Wrenn Drive

Jurisdiction Town of Cary

Acreage 0.35 acre

Real Estate ID 0763339714

Current Zoning PDD Major - Planned Development District

Proposed Zoning

Link to Current and Proposed Zoning for the Property on the Town of Cary Zoning Website: https://www.townofcary.org/Assets/Planning+Department/Maps/Zoning+Map.pdf

PARKING Proposed 23 spaces onsite and shared parking with retail tenants

BUILDING

Construction Date TBD - Projected Delivery 12-18 months from commencement

Square Footage Proposed 20,340 SF

Number of FloorsProposed 3-story, including first floor covered parking and 2 floors of office space

Construction Type Steel with brick stone facade

UTILITIES

Water Town of Cary

Sewer Town of Cary

Electric Duke Energy

Telecommunications Time Warner

PROPERTY DESCRIPTION

EXTERIOR LOBBY RENDERING

120 Wrenn Drive | 5

WRENN DRIVE

KIL

DA

IRE

FA

RM

RO

ADUS POST

OFFICE

120 WRENN DRIVE

GOODBERRY’S

CARRABBA’S

FIREHOUSE SUBS CHIPOTLE


PROPERTY DESCRIPTIONPROPOSED BUILDING FLOOR PLANS

1st Floor: Parking Garage 2nd Floor: 10,170 RSF

OFFICE SPACE

OPEN BELOW

OFFICE SPACE

WC WOMEN

WC MEN

3rd Floor: 10,170 RSF

OFFICE SPACE

WC WOMEN

WC MEN

*Owner has site plan approved from Town of Cary.

120 Wrenn Drive | 7

PROPERTY DESCRIPTIONPROPOSED BUILDING ELEVATIONS

EAST ELEVATION

WEST ELEVATION

NORTH ELEVATION

SOUTH ELEVATION

North Elevation

EAST ELEVATION

WEST ELEVATION

NORTH ELEVATION

SOUTH ELEVATION

East Elevation

West Elevation

EAST ELEVATION

WEST ELEVATION

NORTH ELEVATION

SOUTH ELEVATION

EAST ELEVATION

WEST ELEVATION

NORTH ELEVATION

SOUTH ELEVATION

South Elevation


LOCATION OVERVIEW

DRIVING TIMES

Apex

164

23

97

97

39

97

96

70

70

70

98

1

1

96

42

55

39

64

64

401

4 0

401

39

39

581

98

98

98

96

96

87

87

1012

85

751

751

751

751

75

42

42

64

64

64

86

86501

1556

50

56

96

26

54

55

1

1

55 401

401

50

85

85

8540

40

40

54

540

540

540

440

40

40440

40540

147

50

86

64

264

264

64

70

70

70

23

401

70

401

50115

70BYP

70BYP

70BUS

1BYP

64BUS

264ALT

6BYP

55BYP

54

Neuse

LakeWheeler

LakeJohnson

JordanLake

Haw

River

LakeBenson

River

GreshamsLake

LakeCrabtree

FallsLake

River

Neuse

RiverLittle

River

Little

RaleighEast

Airport



0 .5 1 2 3 4

50115

50115

50115

50115

Raleigh

Cary

Durham

Morrisville

ResearchTriangle

Park

Chapel HillCarrboro

US POST OFFICE

KIL

DA

IRE

FA

RM

RO

AD

WRENN DRIVE

GOODBERRY’S

CARRABBA’S

FIREHOUSE SUBS CHIPOTLE

120 WRENN DRIVE

A

B

E

F

C

D

DURHAMA WESTERN WAKE MEDICAL CENTERDRIVING TIME: 4 MINUTES

BDRIVING TIME: 4 MINUTESCARY PARKWAY & US-1

EDRIVING TIME: 21 MINUTESRESEARCH TRIANGLE PARK

C

DRIVING TIME: 17 MINUTESRDU INTERNATIONAL AIRPORT

DDRIVING TIME: 18 MINUTESRALEIGH, NC

FDRIVING TIME: 26 MINUTESDURHAM, NC

120 Wrenn Drive | 9

RALEIGH-DURHAM (“TRIANGLE”) ACCOLADES

LOCATION OVERVIEW

Apex

164

23

97

97

39

97

96

70

70

70

98

1

1

96

42

55

39

64

64

401

4 0

401

39

39

581

98

98

98

96

96

87

87

1012

85

751

751

751

751

75

42

42

64

64

64

86

86501

1556

50

56

96

26

54

55

1

1

55 401

401

50

85

85

8540

40

40

54

540

540

540

440

40

40440

40540

147

50

86

64

264

264

64

70

70

70

23

401

70

401

50115

70BYP

70BYP

70BUS

1BYP

64BUS

264ALT

6BYP

55BYP

54

Neuse

LakeWheeler

LakeJohnson

JordanLake

Haw

River

LakeBenson

River

GreshamsLake

LakeCrabtree

FallsLake

River

Neuse

RiverLittle

River

Little

RaleighEast

Airport



0 .5 1 2 3 4

50115

50115

50115

50115

Raleigh

Cary

Durham

Morrisville

ResearchTriangle

Park

Chapel HillCarrboro

Best Place for Business and Careers in 2014

(Raleigh-Cary)

Forbes (July 2014)

Best Large City in the U.S. for

Working Women in 2015

(Durham)Nerdwallet (March 2015)

The Brookings Institution (Jan 2015)

Best Economic Performance

(Raleigh-Cary)

Labor Market 150 Index (Feb 2015)

Among 29 Cities All

Twentysomethings Should Pick Up

and Move To (Raleigh)

Buzzfeed (March 2015)

#1

#2

Fastest Growing Large Metro through 2030

(Raleigh)

#2 Best Labor Market in the U.S. (Raleigh-Cary)

#2 Forbes (Aug 2014)

Best City for Young Professionals

(Raleigh-Cary)

#1

#3

Top Technology Markets in the U.S. (Raleigh-Durham)Urban Land Institute

(2015)

#3 #3 Among Best U.S. Cities for College Students -

Mid-Size Metros (Raleigh-Cary)

American Institute for Economic Research (October 2014)

#4Best Metro for STEM

Professionals WalletHub (Jan 2015)

#8 Among America’s 50 Best Cities to Live

(Cary)24/7 Wall St. (September 2014)

UN Population Division (Aug 2014)

Recent Raleigh-Durham Accolades“RALEIGH-DURHAM RANKED #10 U.S. MARKET TO

WATCH”Urban Land Institute, 2015

Top 5Best City for Young

Entrepreneurs (Raleigh-Durham)

Credit Donkey (Feb 2014)


120 WRENN DRIVE IS LOCATED IN THE CARY SUBMARKET, THE TRIANGLE’S SECOND LARGEST AND CENTRALLY LOCATED SUBMARKET.

120 Wrenn Drive | 11

12%

14%

16%

18%

20%

22%

2011 2012 2013 2014 2015

10 Year Average = 16.1%

$20.30

$20.50

$20.70

$20.90

$21.10

$21.30

$21.50

0

100

200

300

400

500

600

2011 2012 2013 2014 2015Net Absorption, '000s Asking Rent, $ PSF

MARKET OVERVIEW | OFFICE MARKET

OFFICE MARKET INDICATORS *Arrows = Current Qtr Trend

RALEIGH-DURHAM OFFICE 3Q 15

NET ABSORPTION 345,440

VACANCY 13.7%

UNDER CONSTRUCTION 1.36M

ASKING RENT$21.57

OFFICE OVERALL VACANCY

OFFICE NET ABSORPTION/ASKING RENT 4Q TRAILING AVERAGE

TRIANGLE MARKET OVERVIEW

The Raleigh-Durham region continues to demonstrate remarkable vitality, drawing accolades across

the spectrum of economic and lifestyle indicators. The technology and life science sectors continue

to shine – the Triangle was the #4 market in the nation for tech jobs, and led a surge in funding for

life science companies that boosted North Carolina’s start up investment by 71 percent year over year.

Despite a handful of larger corporations announcing layoffs that impacted their Triangle headcounts,

the region maintained the lowest 12 month average unemployment rate since 2007, and added about

20,000 jobs since the beginning of 2015.

MARKET OVERVIEW

Robust leasing activity fueled third quarter net absorption of 345,000 SF and brought year-to-date

totals to 1.4 million SF, a performance surpassed only once before in the past decade. The overall office

vacancy rate declined by 46 basis points (bps) quarter over quarter to an eight year low of 13.58%.

A flurry of leasing activity further whittled the region’s stock of large, 2nd generation availabilities :

TrialCard took 73,014 SF at 2250 Perimeter Park Drive, Genband backfilled the remaining 71,253 SF of

Quintiles’ former space at Berrington Center, and Fidelity took down the entire building at Danbury

Hall. Landlords may rejoice as the overall vacancy rate in the RTP/I-40 submarket plummeted by

240 bps as a result, but large users could be left scrambling as their list of existing options rapidly

approaches zero.

The space shortage is especially dire among Class A buildings. The Class A vacancy rate has held

below the market equilibrium of 10% for 6 consecutive quarters, and ticked down again to 8.7%, the

lowest rate the market has recorded since 2001. Large blocks of existing Class A space are practically

non-existent. There are only two blocks of 2nd-generation Class A space greater than 75,000 SF

currently available in the entire Triangle: 6501 Weston Pky and Colonnade II. The only recent delivery

with a large block of new space is Charter Square, which has 79,065 contiguous SF still available. The

shortage of Class A availabilities of any size is approaching crisis levels in the region’s most desirable

submarkets. Robust organic growth and the handful of headliner transactions mentioned above

brought the RTP/I-40 Class A vacancy rate down 144 bps to 7.38%. Class A vacancy in Downtown

Durham fell to a vanishingly slim 1.79%.


MARKET OVERVIEW | OFFICE MARKET

SUBMARKET COMPARISON AVERAGE CLASS A RENT DIFFERENCE FROM THE TRIANGLE MEAN

-$2.50

-$1.50

-$0.50

$0.50

$1.50

$2.50

$3.50

$4.50

US 1 RTP/I-40 Falls of Neuse CaryS. Durham W. Raleigh US 70 CBD RaleighSix Forks Orange County CBD Durham

So it should come as no surprise that Class A asking rents are climbing to unprecedented highs.

Still, while all submarkets are experiencing some growth, there is an increasing differential in

rates between submarkets. The average asking rent for Class A space in downtown Durham, the

Triangle’s priciest location, is a staggering $5.86 higher than the average rate in US 1/Capital

Blvd, the region’s most affordable submarket. And rents in the central business districts are not

only significantly higher than in suburban submarkets, but are also growing at faster rate, with

year over year growth of 7.7% versus 2.5%, respectively.

OUTLOOK

• Class A vacancy rates should hold steady as the handful of new projects deliver over the

next few quarters; pent up demand seems well able to contend with a still-moderate supply

pipeline

• Class B and flex will continue to see significant net absorption while there is insufficient

Class A space to meet demand.

• Rental rate growth shows no sign of slowing and concessions have all but disappeared in

prime submarkets in what is now truly a landlord’s market.

120 Wrenn Drive | 13

MA

RK

ET

OV

ER

VIE

W

TOTAL BLDGS

INVENTORYDIRECTVACANT

VACANCY RATE

CURRENT NETABSORPTION

PAST 4 QTRS NET

ABSORPTION

QUARTER COMPLETION

UNDER CONSTRUCTION

AVERAGE ASKING RENT

(ALL CLASSES)

AVERAGE ASKING RENT

(CLASS A)

SUBMARKET

Cary 129 6,348,654 705,013 11.1% 17,840 600,233 0 0 $21.19 $22.20

Downtown Durham 58 3,403,801 172,466 5.1% 19,999 140,250 0 284,000 $24.73 $27.76

Downtown Raleigh 83 5,032,277 609,377 12.1% -23,913 -89,786 0 12,729 $23.85 $25.24

Falls of Neuse 76 3,066,465 416,861 13.6% 25,574 73,700 0 0 $19.86 $22.14

North Durham 33 1,385,790 659,095 47.6% -18,699 -38,669 0 0 $17.50 N/A

Orange County 34 1,490,028 121,858 8.2% 18,588 60,615 0 156,000 $23.87 $25.95

RTP/I-40 Corridor 146 11,539,518 1,943,294 16.8% 269,154 341,654 0 192,225 $20.07 $21.95

Six Forks 59 3,292,044 329,838 10.0% 34,597 59,022 0 614,892 $22.84 $25.64

South Durham 37 1,809,137 202,544 11.2% 11,414 73,873 0 0 $20.50 $23.04

US 1/Capital Boulevard 47 2,418,714 423,793 17.5% 46,960 199,443 0 0 $19.54 $21.90

US 70/Glenwood Avenue 71 3,787,207 409,108 10.8% -32,857 149,334 0 0 $22.33 $24.13

West Raleigh 90 5,423,533 630,303 11.6% -16,776 157,610 103,000 104,988 $22.89 $23.93

TRIANGLE MARKET TOTALS

Class A 370 31,992,785 2,780,236 8.7% 186,685 1,602,621 103,000 1,364,834 $23.69 N/A

Class B 430 15,553,790 3,644,836 23.4% 119,388 302,370 0 0 $18.20 N/A

Class C 98 2,300,420 342,760 14.9% 39,367 -27,032 0 0 $15.74 N/A

TOTAL 898 49,846,995 6,767,832 13.58% 345,440 1,877,959 103,000 1,364,834 $21.57 $23.69

Office asking rents converted to Full Service


3015 CARRINGTON MILL BOULEVARD | MORRISVILLE, NC | +1 919 789 4255 | CUSHMANWAKEFIELD.COM

Cushman & Wakefield is the exclusive agent for the sale of this property and, as such, will act as the Seller’s Agent. Consequently, the prospective purchaser should not disclose any confidential information to Cushman & Wakefield.

This Offering Memorandum was prepared by Cushman & Wakefield, and has been reviewed by Seller. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition, and other factors that, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form and do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.

This Offering Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Cushman & Wakefield, or the Seller. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing the Property described herein.

Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller, and any conditions to Seller’s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Seller.

This Offering Memorandum is the property of Cushman & Wakefield, and may be used only by parties approved by Cushman & Wakefield. The Property is privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Cushman & Wakefield, and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Seller. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

LIMITING CONDITIONS

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