DURHAM, NORTH CAROLINA

HERITAGE SQUAREREDEVELOPMENT OPPORTUNITY FOR SALE+/- 9.58 ACRES

CONTENTS

2 EXECUTIVE SUMMARY

3 PROPERTY INFORMATION

8 LOCATION OVERVIEW

14 MARKET SNAPSHOT

17 DURHAM AREA HIGHLIGHTS

Disclaimer: All information provided herein is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and is subject to errors, omissions, change of price, rental or other conditions.

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Foundry Commercial is pleased to offer a highly desirable development tract for sale located along NC Highway 147 in Downtown Durham. This 9.58 acre property includes the 60,788 square foot Heritage Square retail center. This offering represents one of the largest tracts of undeveloped land in Downtown Durham in one of the most dynamic areas in the Triangle.

• Unbeatable local and regional transportation connectivity• Located in one of the fastest growing submarkets in the Triangle

which allows a developer to take advantage of increased infrastructure, population growth and rising incomes

• The highly recognizable Fayetteville Road and NC Highway 147 location has convenient access to Interstate 40, Interstate 85, as well as the Research Triangle Park

• Flexible zoning allows retail, multifamily, office and mixed-use development up to 150 feet high

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EXECUT IVE S U M M A RY

PROPERTYINFORMATION

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ADDRESS 606 Fayetteville Road401 East Lakewood Avenue

PARCEL IDS 119327 and 119326

MUNICIPALITY City of Durham

BUILDING SIZE 60,788 square feet

BUILDING AGE 1985

TOTAL ACREAGE 9.58 acres

CURRENT ZONING DD-S1 & DD-S2 (small portion of site)

CURRENT USAGE Retail Shopping Center

SEWER & UTILITIES Municipal water and sewer

OCCUPANCY 100%

EST. NOI (2016) $280,630

LIST PRICE Call for details

PROPERTY INFORMATION

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‹

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Sources: Esri, HERE, DeLorme, USGS, Intermap, INCREMENT P, NRCan, EsriJapan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), MapmyIndia,NGCC, © OpenStreetMap contributors, and the GIS User Community

May 5, 2017

Information depicted hereon is for reference purposes only and is compiled from the best available sources. The City of Durham/Durham County assumes no responsibility for errors arising from use or misuse of this map.

0 0.15 0.30.075 mi

0 0.2 0.40.1 km

1:9,028

:

ZONING

The majority of the site is zoned DD-S1 within the City of Durham, the property is located within the Downtown Design - Support 1 zoning district which allows for a broad range of commercial, residential and mixed-use development with a maximum building height up to 100 feet without provisions and 150 feet with provisions in place. A small portion of land along East Lakewood Avenue is zoned Downtown Design - Support 2 or DD-S2 which will allow for development up to 50 feet. For more information on the existing zoning designations please refer to Durham's Unified Development Ordinance (http://durhamnc.gov/414/Unified-Development-Ordinance-UDO).

ZON

ING

DD

-S1 ^

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TENANT SUITE SF

Super Swirl d/b/a Pelican's Snoballs 606 800

Food World A 30,625

Family Dollar - Store # 772 B 8,510

Heritage Square Complex C 6,000

Cephus Williams D 3,200

Recovery Innovations E1A 4,469

Visions Counseling Studio E1B 5,975

JC Express Auto Service E2 2,400

Rajohn Dock F 2,400

Ebony Beauty Supply G 3,600

Elahi d/b/a Subway #1948 H 2,000

TENANT INFORMATION

1

23

4

5

6

7

8

9

1110

EAST LA

KEWO

OD AVEN

UE

1

2

3

4

5

6

7

8

9

11

10

147

EXISTING CASH FLOW

The existing Heritage Square retail center provides over $580,000 of gross incomes and $280,000 of net income which will assist in the offsetting of carrying costs while a buyer completes planning and approvals for its proposed redevelopment.

LOCAT IONOVERVIEW

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WEST MAIN STREET

DURHAM FREEWAY

SOU

TH D

UKE

STR

EET FAYETTEVILLE ROAD

147

147

98

78,000 VPD

15,0

00 V

PD

SOUT

H RO

XBO

RO S

TREE

T

DURHAM BULLS BASEBALL STADIUM

AMERICAN TOBACCO CAMPUS (ATC)

FUTURE DURHAM POLICE DEPARTMENT

LOFTS AT SOUTHSIDE

VAN ALEN

21C MUSEUM HOTEL

BRIGHTLEAF SQUARE

WEST VILLAGE

DURHAM PERFORMING ARTS CENTER

DURHAM CONVENTION CENTER THE DURHAM HOTEL

7

7

4

4

6

6

3

3

1

1

5

5

2

2

8

8

UNDER CONTRACT

3.72 600 WILLARD ST

UNDER CONTRACT

2.47 606 JACKSON ST

10/7/2016 11.18 601 WILLARD ST

7/2/2015 3.96 504 E PETTIGREW ST

5/16/2015 3.72 600 WILLARD ST

5/15/2015 6.06 VAN ALEN

3/23/2015 4.82 600 E MAIN ST

4/11/2014 2.62 LIBERTY WAREHOUSE

EXPONENTIAL GROWTH

Heritage Square is uniquely located in Downtown Durham which has experienced a surge in new residential, office and retail projects totaling over $1.3 billion in investment since 2000. Since 2010, 50 new retail shops, 31 new goods and services businesses and 62 new restaurants have opened to support the growth of office and residential projects in the area. Currently there are over 2,500 residents, 1,700 residential units, 16,500 employees, 90 restaurants and bars, 55 retail stores, and 150 startups thriving in downtown Durham. http://downtowndurham.com

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DURHAM BULLS BASEBALL STADIUM

WEST VILLAGE21C MUSEUMHOTEL

AMERICAN TOBACCOCAMPUS (ATC)

THE LOFTS AT SOUTHSIDE

DURHAM PERFORMING ARTS CENTER DURHAM

COURTHOUSE

AUSTIN LAWRENCE 23-STORY APARTMENTS + OFFICES

DURHAM COUNTY DEPARTMENT OF PUBLIC HEALTH

VENABLE

VAN ALEN

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GATEWAY

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PATH OF GROWTH

Heritage Square is positioned in Downtown Durham and less than one mile north of North Carolina Central University. The area between NCCU and Downtown Durham is experiencing a redevelopment renaissance from which Heritage Square will benefit.

NCCU is part of the University of North Carolina system has a current enrollment of approximately 8,500 students which is an approximately 30% increase in enrollment in the past 15 years. In addition to offering innovative programs in visual and performing arts, science and business, NCCU has a nationally recognized law school and up-and-coming biotechnological and biomedical programs helping to fuel its growth.

SPAULDING ELEMENTARY WHITTED SENIOR

HOUSING

SOUTHSIDE/ ROLLING HILLS

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DOWNTOWN DURHAM

DUKE UNIVERSITY

FOREST HILLS

NORTH CAROLINA CENTRAL UNIVERSITY

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Rolling hills/southside rEVITALIZATIONHousing Authority of the City of durham McCormack baron salazar

©2009 Torti Gallas and Partners, Inc. | 1300 Spring Street, 4th �oor, Silver Spring, Maryland 20910 301.588.4800

21

MA

STER

PLA

N V

ISIO

N

-

-

Lakewood Ave

Enlarged Rolling Hills / Southside Revitalization Plan

Chestnut St.

Hillside Ave.

Piedmont Ave.

S. R

oxbo

ro S

t.

Sout

h St

.

.rD tuocS

W.Enterprise St.

0

50 100

200 FeetN

AREA DEVELOPMENT

Directly south and west of Heritage is the 125 acre Southside redevelopment project. This $48 million project includes new for sale and for rent residential properties in close proximity to downtown and provides a link to well-established Forest Hills and other neighborhoods to the west.

SOUTHSIDE/ ROLLING HILLS

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DEMOGRAPHICS 3 MINUTES 5 MINUTES 7 MINUTES

2017 ESTIMATED POPULATION 47,054 101,258 156,789

2022 PROJECTED POPULATION 52,287 111,028 171,392

2017 ESTIMATED HOUSEHOLD INCOME $53,269 $54,689 $58,862

2017 ESTIMATED HOUSEHOLDS 17,489 38,523 62,750

2022 PROJECTED HOUSEHOLDS 19,882 43,072 69,578

TRAFFIC COUNTS

DURHAM FREEWAY 78,000 VPD

FAYETTEVILLE STREET 16,000 VPD

E LAKEWOOD AVENUE 7,000 VPD

S ROXBORO AVENUE 7,000 VPD

DEMOGRAPHICS 1 MILES 3 MILES 5 MILES 7 MILES

2017 ESTIMATED POPULATION 15,470 95,606 194,939 268,762

2022 PROJECTED POPULATION 17,406 104,897 212,679 292,083

2017 ESTIMATED HOUSEHOLD INCOME $53,504 $55,110 $66,522 $72,391

2017 ESTIMATED HOUSEHOLDS 5,737 36,107 78,907 111,189

2022 PROJECTED HOUSEHOLDS 6,634 40,419 87,234 122,381

1 MILE 3 MILE 5 MILE 7 MILE

MARKET SNAPSHOT

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RETAIL

The property offers a tremendous opportunity for retailers, restaurants, entertainment, hospitality, lodging and other users to capitalize on the surge of residential growth as well as road infrastructure of NC 147 in one of the most sought after submarkets in the Triangle.

With over 3.25 million SF of retail space in downtown Durham, the submarket has a vacancy rate of nearly 2.6% according to real estate database CoStar.

Numerous anchor and junior anchor retailers are currently seeking locations in proximity to downtown Durham, which shows a meaningful demand for space and locations that meet their requirements with limited supply. The 9.58 acres available at Heritage Square are well positioned to accommodate this demand.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

West Raleigh US70/Glenwood

Six Forks Falls of Neuse US 1/CapitalBoulevard

DowntownRaleigh

Cameron Village Eastern WakeCounty

Southern WakeCounty

Cary RTP/I-40Corridor

Central Durham North Durham South Durham

(SF)

Submarkets

Orange County/Chapel

Hill

RALEIGH-DURHAM RETAIL LEASABLE SQUARE FOOTAGE

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MULTIFAMILY

The Raleigh-Durham metro area continues to be one of the hottest multifamily development markets in the country due to a red-hot economic recovery with nearly 50,000 jobs created in the past two years and the #1 Fastest Growing Metro from 2000-2013 according to CityLab (April 2015). Accordingly, over 80 people move to the area a day due to job growth and its high quality of life. Construction starts have exploded over the last two years and there are now 8,835 units under construction throughout the Triangle, with an additional 4,919 units proposed to be built.

Drilling down to the downtown Durham submarket where the subject property is located, there are 4,710 total units which constitute approximately 5.3% of the total Triangle market. Located in a substantial path of growth due to the fast-growing downtown Durham area, the submarket vacancy is a healthy 14.4%. The average square footage in this submarket is 875 square feet and units average monthly rents of $1,322 ($1.51 per square foot). There are currently approximately 863 units under construction and 450 units proposed, though the local pace of growth indicates that the area can support additional apartment development.

PLACES TO LIVE 2016

U.S. News & World Report

TOP 5

DURHAM AREA HIGHL IGHTS

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STELLAR NATION-LEADING POPULATION GROWTHHome to more than 2.0 million residents, the Raleigh-Durham CMSA is continually ranked as one of the fastest growing metros in the U.S., welcoming more than 720,000 newcomers between 2000 and 2014 for a 55% cumulative uptick in population.

DIVERSIFIED, INNOVATION-BASED ECONOMYThe Triangle is anchored by world-class universities, well-managed state and local governments, and operations of many of the nation’s leading technology, biotechnology, pharmaceutical, and health care firms.

HIGHLY-RANKED JOB CREATION, QUALITY OF LIFEDue to its robust economy, inviting business climate, highly-educated workforce, established infrastructure, and outstanding quality of life, the Triangle consistently garners accolades touting its appeal to businesses and residents alike.

EXCEPTIONAL EDUCATIONAL CACHET

The Triangle region is home to nationally esteemed universities: Duke University and North Carolina Central University in Durham, North Carolina State University in Raleigh, and the University of North Carolina in Chapel Hill.

OUTSTANDING LONG-TERM PROSPECTS

With the right pieces in place for a thriving economy and a rising quality of life, population and economic growth are fully expected to continue to rank highly amongst other U.S. cities for the long-term.

RALEIGH-DURHAM HAS HISTORICALLY POSTED STRONG JOB GROWTHwith a healthy current unemployment rate of 4.2%. The region has added nearly 30,000 net new jobs in the past twelve months.

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ECONOMIC VIBRANCY

RALEIGH-DURHAM ANNUAL JOB GROWTH

ANNUAL JOB GROWTH

HFF PROJECTION

2004 20062005 2007 2008 2010 2012 20142009 2011 2013 2015 2016 PROJECTED

Y E A R U N I T ED S TAT E S % ∆ N O R T H C A R O L IN A

% ∆ R A L E I G H -D U R H A M -

C A RY C S A1

% ∆

2015 Estimate 318,857,100 3% 9,993,105 5% 2,036,374 9%

2010 Census 308,745,538 10% 9,535,483 18% 1,867,307 34%

2000 Census 281,421,906 13% 8,049,313 21% 1,412,128 14%

1990 Census 248,709,873 10% 6,628,637 13% 1,072,158 24%

1980 Census 226,545,805 11% 5,874,000 16% 861,479 22%

1970 Census 203,392,031 5,082,059 708,453

Growth 1970-2015 57% 97% 187%

CAGR 1970-2015 1.0% 1.5% 2.4%

CAGR 2000-2015 0.8% 1.5% 2.5%

TRIANGLE REGION HISTORICAL POPULATION TRENDS

Source: Census.gov, American FactFinder

1- CSA includes 11 counties – Harnett, Chatham, Durham, Orange, Person, Vance, Granville, Wake, Johnston, Franklin, and Lee

TOP 10 CIT IES FOR CREATIVES

SMART ASSETS

No. 2 AMERICA'S 20 FASTEST GROWING METRO AREAS

FORBES.COM

TOP 10 TECH TOWNS

WIRED MAGAZINE

TOP 10 AMERICAN CIT IES FOR WORKING MOMS

CITI

No. 6 AMERICA'S TOP 10 CIT IES FOR SMALL BUSINESS

WASHINGTON POST

No. 2 TOP 10 SMALL AMERICAN CIT IES OF THE FUTURE

FDI, A DIVISION OF FINANCIAL TIMES

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AN ENVIABLE QUALITY OF LIFE

The Triangle region has added an average of 80 new residents per day between 2010 and 2014.

The region continues to attract a steady stream of new residents from all over the world. With the right pieces in place for a thriving economy and a rising quality of life, population and economic growth are fully expected to continue to rank highly amongst other U.S. cities for the long-term.

Established, high-amenity crossroads located at the center of one of the nation’s most high-growth metros with an enviable quality of life. No. 7

U.S. WORLD & NEWS REPORT

No. 1

BON APPETITE

ACCOLADES

TOP 5

TODAY

No. 5

U.S. WORLD & NEWS REPORT

FOODIEST SMALL TOWN

DESTINATIONS TO RETIRE IN THE U.S.

BEST PLACES TO L IVE

BEST PLACE FOR STEM GRADUATES(SC I ENCE , T ECHNOLOGY, ENG INEER ING AND MATH)

foundrycommercial.com

JIM ALLAIRE, SIORManaging Director(919) 576 2691jim.allaire@foundrycommercial.com

KARL HUDSON IV, CCIMVice President(919) 987 1012karl.hudson@foundrycommercial.com