Edgewater Commerce Center

SIGNIFICANT DISCOUNT TO REPLACEMENT COST WITH ROBUST CASH FLOW AND MARK-TO-MARKET UPSIDE

• Future ownership will benefit from an acquisition basis nearly 40% below replacement cost - a benchmark that has pushed north of $120 per square foot in Wilmington

• 100% leased to four (4) tenants, ECC provides robust immediate income enabling investors to obtain accretive financing, further buy down basis, and build ample cash reserves ahead of the near-term mark-to-market opportunities

• Over half the leasable square footage within the building presents a 40% average mark-to-market opportunity within the first three (3) years of ownership - a rare value creation event supported by a tight industrial market that has averaged 95% occupancy over the past five (5) years

ECC'S STERLING LEASING PERFORMANCE

• Due to severe lack of functional large-footprint space outside of new Class A product in the market, rental rates within the building have skyrocketed by more than 300% since acquisition in 2019

• Since 2020, each non-renewing space at ECC has been backfilled on average 90 days prior to outgoing lease expiration with zero downtime, most recently demonstrated by the 200,000 SF lease to Ivy Technology and 100,000 SF lease to Home Insights

• Out of 30 million square feet of inventory, ECC is one of only three (3) institutional-quality facilities in the Wilmington-Myrtle Beach market capable of accommodating a user over 200,000 SF and the only one capable of accommodating 300,000+ SF

HIGHLY FUNCTIONAL MULTI-TENANT ASSET WITH SIGNIFICANT CAPITAL UPGRADES AND FUTURE VALUE CREATION OPPORTUNITIES

• Currently featuring a diversified mix of suites ranging from 46,748 SF to 105,818 SF with two tenants occupying multiple contiguous suites, ownership has enhanced multi-tenant functionality by adding/updating office pods, dock-high positions and drive-in doors, while separating utility infrastructure when needed

• ECC features a 24’ minimum clear height, wire reinforced slab, and ample dock-high/ drive-in doors with the with the ability to add more in the future, providing highly functional space for distributors and manufacturers

• ECC has undergone $3.7 million of capital upgrades including:

1. Installation of a brand new 60 mil TPO roof on the entire facility with a 20-year warranty
2. Installation of a brand-new fire pump that ties into a 12” public water line and has been sized and planned to accommodate an ESFR sprinkler conversion in the future

• Future ownership has the ability to capture additional rent upside through an ESFR sprinkler conversion program, which can be performed in 100,000 SF increments, or construct a brand-new 100,000 SF Class A expansion

THE WILMINGTON-MYRTLE BEACH INDUSTRIAL MARKET IS ONE OF THE MOST DYNAMIC MARKETS IN THE SOUTHEAST

• Straddling the NC-SC border and comprised of four coastal counties (Horry, Brunswick, New Hanover and Pender) that house two top ten cities in the US for population growth, the Wilmington-Myrtle Beach industrial market features 30.4 million square feet of industrial inventory

• Wilmington-Myrtle Beach’s outstanding market fundamentals derive from the simple dynamic that one of the fastest growing regions in the United States requires institutional-quality inventory capable of housing the expansion of in-market users, while new-to-market users seeking to capitalize on growth supercharge demand

• The mega-corridor has experienced a significant number of household names sign leases within the past three years, including Amazon, Home Depot, Lowe’s, Trane, Red Bull, and Pepsi, among others, demonstrating demand from world-class companies on the leading edge of growth

• Class A product is quickly and continually redefining the upper limits of rental rates, with new construction garnering rents north of $10.00 PSF, resulting in significant runway for rental rate growth at Edgewater Commerce Center

HIGHLY CONNECTED LOGISTICS LOCATION IN THE HEART OF GROWTH

• Positioned directly along the US HWY 74 corridor, ECC enjoys outstanding access to major transportation infrastructure, including interstate 140 - Wilmington's outer loop, the Port of Wilmington and Wilmington International Airport

• The Property is also located minutes from a dense set of Wilmington's fastest-growing communities, Downtown Wilmington, and world-famous beaches

CULTURAL VIBRANCY, COASTAL LIFESTYLE, AND DYNAMIC INDUSTRY

• Wilmington’s combination of a high-energy, youthful population, with a buzzing historic downtown, outstanding culinary scene and world class beaches has propelled the city to the top of rankings year after year as one of the country’s best places to live

• In tandem with population growth, Wilmington houses a diverse (and growing) array of major industries and headquarter operations, including logistics, film, fintech, pharmaceuticals and advanced manufacturing

• Known as the “Port City,” Wilmington is also home to North Carolina’s largest deep-water port, which boasts the highest container truck gate and crane productivity on the East Coast