Chattanooga Industrial One

STATE-OF-THE-ART CONSTRUCTION

1. Pre-cast concrete panel construction
2. Rear-load configuration
3. 16 dock-high doors
4. Expandable to add 50 more, insulated, fully equipped with 40k lb. mechanical levelers, seals and lights
5. 2 drive-in doors, expandable to add 2 more
6. 32’ – 35’ clear heights
7. 130’ truck court (60’ concrete apron)
8. 45-mil TPO roof with 13 years of warranty remaining (exp. 5/27/36)
9. R-28.8 insulation, external gutters and downspouts
10. 261’ x 1154’ building depth
11. 50’ x 48’ column spacing (60’ speed bays)
12. 10,000 SF of office
13. ESFR sprinkler system
14. LED lights
15. 390 auto spaces
16. Multiple points of ingress/egress with full site circulation
17. Project secured with fence, gates and guardhouse
18. Ability to convert to multi-tenant
19. Located in Enterprise South Industrial Park

FINANCIAL HIGHLIGHTS

1. 100% leased to Sesé Industrial with 12.2 years of term remaining
2. 2.50% annual rent escalations, increasing to 2.75% on 12/1/31
3. In-place rent is $7.74 (6.2% below market)
4. Net recovery structure with limited landlord responsibility
5. Grupo Sesé (Guarantor)
6. A Tier 1 automotive supplier with multi-generational corporate relationships
7. Grupo Sesé has a strategic relationship with Volkswagen across its global manufacturing network
8. 60+ years of experience in the automotive manufacturing sector
9. Clients include industry leaders such as Volkswagen, Ford, GM, and Mercedes-Benz
10. Parent company – Grupo Sesé
11. A multi-generational, privately held global logistics conglomerate based in Spain
12. 14,700+ employees operating in 20 countries across Europe, North America, Asia and Africa
13. Exceeded €1B top-line revenue in 2023 and 2024

STRATEGIC, MISSION-CRITICAL LOCATION

1. Mission-critical extension of the Volkswagen’s 3.4M SF production plant
2. Volkswagen’s plant is located just 1.5 miles away
3. The Property supports two marquee vehicles in Volkswagen’s North American lineup: the Atlas and the ID.4
4. Sesé's lease term represents two full production cycles of VW's Atlas and ID.4 assemblies
5. Operates up to 24/7 to meet Volkswagen’s assembly demands
6. Assembled front and rear axles and central modules depart the Facility every four minutes
7. Grupo Sesé’s only North American facility
8. 19th production plant with Volkswagen globally
9. Sesé has invested over $80M into the building with the installation of a custom, automated assembly line, underscoring their long-term commitment to the facility, demonstrating their long-term commitment to the facility and its operations
10. Continuous operations delivering assembled vehicle components at four-minute intervals, establishing the facility as essential infrastructure in Volkswagen’s manufacturing ecosystem
11. Strategic 50-year, board-level partnership with Volkswagen Group and diverse client portfolio including premier automotive manufacturers (Ford, GM, Mercedes-Benz) and global consumer brands (Coca-Cola, Adidas)
12. Sophisticated Chattanooga facility supporting Volkswagen’s electric vehicle and internal combustion engine production initiative with precision component integration processes

HISTORICALLY TIGHT INDUSTRIAL MARKET WITH LIMITED NEW SUPPLY

1. The Chattanooga market includes 6 counties spanning from North Georgia to Southeastern Tennessee and comprises nearly 110 MSF of industrial inventory
2. Bradley, Hamilton, & McMinn counties in TN
3. Catoosa, Walker, & Whitfield counties in GA
4. Vacancy has remained below 5% since 2017 and currently sits at 2.9%
5. Outlying Chattanooga Submarket 5-year average vacancy rate of 1.3%
6. On average, 302,245 SF of product has been delivered annually over the past 5 years representing less than 0.5% of current market inventory
7. High barriers to entry including rocky soil and challenging topography limit industrial development in all directions
8. Asking rents across the market have exploded over the past 5 years demonstrated by a 7.9% CAGR
9. Forecasted rent growth over the next 5 years remains strong at a ~5% CAGR and is supported by growing demand requirements combined with natural supply constraints

CHATTANOOGA - THE GATEWAY TO THE SOUTHEAST

1. Crossroads of three major thoroughfares, including I-24, I-75, & I-59
2. Rated as a 5-star logistics hub by Expansion Management & Transportation magazine
3. Home to Volkswagen’s only U.S. Plant – 1,400 acres w/ total investment over $3.5 billion
4. Employs 5,000+ people, producing 234,000 vehicles per year
5. Air, Water, & Rail
6. Chattanooga Metropolitan Airport served by FedEx for air cargo services
7. Administered by the Tennessee Valley Authority (TVA), the Tennessee River carries barge lines along 16,000 miles of navigable waterways
8. Major freight hub with the presence of Norfolk Southern and CSX Class I freight rail service
9. Appalachian Regional Port in Murray County opened in 2018 and has seen explosive growth
10. Current throughput of 75,000 containers is ahead of their 2022 projection of 20,000 per year
11. Volkswagen is one the ARP’s largest customers
12. Chattanooga, known as “Gig City”, was the first U.S. city to provide gigabit-speed internet to residential and commercial sectors
13. Turning Chattanooga into a hot spot for tech companies and startups
14. Education Enrollment
15. University of Tennessee Chattanooga: 10,781
16. Chattanooga State Community College: 5,058
17. Southern Adventist University: 2,303
18. Affordable living – Chattanooga’s cost of living is 9% below the national average
19. Named “Best Place to Live in Tennessee” by U.S. News & World Report in 2024
20. Major industries include automotive, advanced manufacturing, food and beverage, and healthcare