Avalon Project Overview

Stephen Mayo and Carl Kandutsch

Alpharetta, Georgia The Avalon Project is located in Alpharetta, Georgia, a suburb of Atlanta which is the commercial hub of the Southern United States and is known as the “Technology City of the South”. This is a game-changer for Alpharetta," said Alpharetta Mayor David Belle Isle. "Nowhere else in Georgia can you get gigabit service to your home and nowhere else but Alpharetta can a business take advantage of this cost-effective way to future-proof their operations."

Avalon Master Plan

Avalon – Georgia’s First “Fiberhood”

Avalon is a North American Properties $600 million mixed-use development located on 86 acres.

Upon completion, Avalon is projected to generate approximately:

$21 million annually in sales tax revenue. $4.5 million annually in new property taxes. $1.1 million annually in hotel taxes. 4,000+ of new permanent jobs.

Residential

More than 800 residents expected to call Avalon home. 250 luxury one and two bedroom rental units, located above the retail space – the first apartments built in Alpharetta in 12 years. 101 single-family, “courtyard style”, attached and detached residences.

Retail

• Committed retail tenants include:

• * Cru Wine Bar, * Pinkberry, * Dry Bar, * Ford Fry Restaurant, * Van Michael Aveda Salon, * Mitchell Gold + Bob Williams, * lulu lemon, * Fly Wheel,

• * Marmi Shoes, * Kona Grill, * Destination Maternity,

• * L’ Occitane, * Regal Cinemas, * Whole Foods,

• * Anthropologie, * Marlow’s Tavern, * Orvis,

• * Ted’s Montana Grill, * Fab’rik, * Athleta, * Arhaus,

• * Paper Source, * Banana Republic.

The Avalon project will feature over 559,000 square feet of experiential retail with shops, restaurants, a grocery store and a movie theatre.

Hotels

-A 300 room, Four-Star, full-service hotel.

A 175 room boutique hotel, located over the retail space.

The hotels will serve both business executives and leisure travelers and are the first hotels built in Alpharetta since 2001.

Office

750,000 square feet of Class A office in two buildings.

85,000 square feet of loft office over the retail space.

Education

Gwinnet Technical College has purchased 25 acres of property from NAP across the street from Avalon and is planning on construction of a satellite campus.

Avalon – A Destination

Mark Toro, Managing Partner for North American Properties - “We are much more focused on the guest experience than the buildings, this is the factor that sets the great properties apart from the good ones.”

Avalon Driving Principles Every decision has meet the following tests.

• 1. Deliver 5-star Hospitality & Services: Avalon’s Services will generate the “luxury of time” for our residents and guests. Here we take care of your needs so that you can enjoy life more.

• 2. Build Community: Avalon will be a place people can connect with family and friends to create lasting memories, support causes that parents value (like local schools and charities), and belong to a community where we listen and respond to each other’s needs.

• 3. Cater to Families & Kids: Avalon will cater to family needs by offering a full range of services where you can drop off your kids at a Camp Avalon activity and enjoy a glass of wine with your spouse, play a game or two of bocce with your kids on the lawn before dinner or escape from the bustle in our family lounge for a quiet feeding with your infant.

• 4. Promote Healthy Living: Avalon will extend their healthy living lifestyle through shopping, dining and programming options.

• 5. Create Cultural Encounters: Avalon’s cultural encounters will be interactive, approachable and fun with cosmopolitan, global influences.

• 6. Value Sustainability: Avalon is a sustainably designed community that values eco-friendly practices and minimizing our environmental impact.

• 7. Invoke a Sense of Place: Avalon will evoke memories of the moments in one’s life when things were as they should be—familiar, relaxed, effortless, beautiful, connected.

• 8. Prioritize Walkability: Visual threads and pedestrian pathways will connect all components of Avalon encouraging guests and residents to delight in walking from one end to the other.

• 9. Advance Technology: Avalon will enhance Alpharetta’s status as the Silicon Valley of the Southeast by establishing itself as the most wired community in the Southeast.

The Technology Vision

• The broadband concept for Avalon revolves around bandwidth, specifically, bringing Gigabit service to each home and business within the development.

• Mark Toro, Managing Partner for North American Properties, summarized the Avalon’s broadband vision as follows: “Gigabit service is a catalyst for economic development, and it’s crucial for future-proofing development in Metro Atlanta. With bandwidth requirements growing at more than 30 percent per year, this is the way to get ahead … and stay ahead.”

The Network

The network plan for Avalon includes deployment of an all-fiber community infrastructure including an open and scalable technology platform capable of delivering development-centric communications services to residents and commercial tenants.

The fiber-rich on-site network includes multiple overlapping fiber rings within the development, redundant access to local service providers, and redundant fiber paths from the Avalon site to the carrier hotel located at 56 Marietta Street in Atlanta.

Marietta Street Colocation, Atlanta

A key feature of the project is access to the Marietta Street Co-Lo Facility in Atlanta, the largest telecomm hub in the Southeast and occupied by more than 250 telecomm-related companies, including 50+ carriers and 36 fiber providers.

The Plan

• We began to identify a complete set of technology hardware, software, products and services specifically tailored to the development’s future retail, residential, office and guest components.

• We developed the infrastructure plan including:

• Conduit and hand-hole system,

• Access points at the property edge for service provider egress,

• Building access facilities, closets, and pathways,

• Low voltage wiring,

• On-campus head-end facility (location, power/backup power, environmental requirements)

The Plan (cont.)

• We began to identify and review potential service models. (Create marketing agreements with incumbents, Select a private full service provider, Utilize a combination of specialty service providers (i.e.. Internet, Security, CATV, VOIP), Create a new provider specific to the project).

• We developed a financial model to help us determine feasibility.

• The Avalon team’s next step was to select a service provider capable of and committed to participating in the Avalon vision.

The Search for an Operator

• We solicited service proposals from a variety of service providers, including well-known cable operators and telephone companies.

• During the RFP process, the Avalon team met with plant engineers, wiring contractors, billing companies and customer service managers who represented numerous potential providers.

• The team eliminated the proposals that did not convey a commitment to create the unique experience they envisioned for Avalon.

The Selected Operator - Hotwire • Hotwire Communications Ltd. distinguished itself from the

crowd in several ways. – First, from a technology perspective, Hotwire has the right

service delivery platform, excellent back-office support structure and exceptional fiber backhaul transport infrastructure to connect Avalon to the world.

– Second, from an operational perspective, Hotwire is well-funded, knowledgeable, has established teams and procedures, has the necessary technology platforms, features, and services.

– Third, and perhaps most important to the forward-looking nature of the Avalon vision, NAP is convinced that Hotwire understands the Avalon vision and is committed to fashioning a customized, comprehensive broadband solution tailored to make it a reality.

The Final Piece -The Agreement Carl Kandutsch

• Avalon vision – create an agreement, parallel to the physical infrastructure, that could be relied upon to “future-proof” the community so that tenants and homeowners would be assured of receiving state-of-the-art services over an extended period of time.

• The challenge: Build into the agreement sufficient incentive for Hotwire to invest in future-proof technology while at the same time avoid locking NAP into the kind of long-term commitment that would undermine Avalon’s ability to offer its residents and tenants the most advanced communications services available in the marketplace.

The Agreement (cont’d)

• Strict Service Level Agreement (SLA) – to ensure a high-quality broadband experience for Hotwire subscribers. Customer service standards are specific and detailed, measureable and enforceable.

• Strong Competitive Standard for infrastructure and services – to ensure that services at Avalon remain the best available in the greater Atlanta market.

The Agreement (cont’d)

• Agreement is structured to reflect the infrastructure design – redundancy and flexibility.

• While terms are designed to enable Hotwire to succeed, they are also structured to allow multiple providers to operate at Avalon should that become necessary.

The Agreement (cont’d)

• Avalon consists of several distinct communities including residential (rental and single-family) and commercial (office, retail and service). Each community has its own interests and needs while preserving the Avalon brand.

• Agreement – Modular structure:

• Master Agreement governs Hotwire’s access to the development generally and the nature and quality of services to be provided.

The Agreement (cont’d)

• Separate “Component Agreement” for each of the residential communities (MDU and SFH). The Component Agreements govern the specific services to be provided to each community.

• Modular structure allows a certain degree of flexibility for each component while permitting NAP to retain control over the development as a whole.

Avalon – Grand Opening October 1, 2014