Centennial Corporate Center (Four Commercial Buildings ... Corp Center - Aiken, SC - OM.pdfSCANA Energy Marketing, Inc. is a wholly owned subsidiary of SCANA Corporation. SCANA Corporation

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Centennial Corporate Center (Four Commercial Buildings)1991 South Centennial Avenue, Aiken, SC 29803

NET LEASE VALUE ADD INVESTMENT OFFERINGVacant

51,250 SF

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty OverviewLease OverviewPro FormaMonthly Pro Forma

II. Location Overview

Site PlanAerialMapPhotos

III. Market & Tenant Overview

Tenant ProfilesLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject properties. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable;however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale four office buildings located within the Augusta, Georgia metropolitan area. Three of the buildings are leased on a single tenant basis to national and international companies; United Parcel Service, Inc. (S&P: A+), AECOM (S&P: BB) and SCANA Corporation (S&P: BBB+). The investment allows an investor to add value by leasing the one vacant building.

The subject offering is located within the Centennial Corporate Center, which features four office buildings, three of which are 100% leased to national tenants. The property is positioned strategically in a centralized location benefitted by a lack of competing office properties in the immediate area. The submarket office vacancy rate (5.5%) is the third lowest in the Augusta MSA which is significantly lower than that of the entire market (7.9%). The UPS Supply Chain Solutions, Inc. lease expires April 30, 2021, the AECOM lease expires September 30, 2018 and the SCANA Energy Marketing, Inc. lease expires March 31, 2020 featuring annual rental escalations of 2.5%.

Centennial Corporate Center offers an investor value-add opportunity based on the lease-up of one currently vacant building. All four buildings are identical, 51,250 square feet single story office buildings are constructed of a steel frame and reinforced concrete foundation with stucco and glass exterior finishes. There are a total of 1,540 parking spaces on the premises.

Centennial Corporate Center is located in the immediate proximity to the significant signalized intersection of East Pine Log Road and Whiskey Road. This heavily trafficked signalized intersection of two main thoroughfares experiences traffic counts in excess of 60,000 vehicles per day. Whiskey Road features the Aiken Mall, which is anchored by Belk and Dillard’s, as well as numerous national retailers including Walmart Supercenter, Lowe’s, Target, Home Depot, Publix, Kroger, ALDI, Hobby Lobby, Staples, Walgreens, CVS Pharmacy, TJ Maxx, Ross Dress For Less, Academy Sports and many more. There is a limited supply of office properties in the immediate trade area which contributes to the strength of the offering. There are approximately 30,000 people living within a three mile radius of the property earning average annual household incomes in excess of $92,000.

There are over four years remaining on the UPS Supply Chain Solutions, Inc. lease which expires April 30, 2021. UPS Supply Chain Solutions, Inc. is a wholly owned subsidiary of United Parcel Services, Inc. United Parcel Service, Inc. is a publicly traded company (NYSE: UPS) with a market capitalization in excess of $95 billion and is an investment grade rated company (S&P: A+).

There are two years remaining on the AECOM lease which expires September 30, 2018. AECOM is a publically traded company (NYSE: ACM) with a market capitalization in excess of $4.25 billion and is an investment grade rated company (S&P: BB).

There are over three years remaining on the SCANA Energy Marketing, Inc. lease which expires March 31, 2020. The lease features annual rental escalations of 2.5%. SCANA Energy Marketing, Inc. is a wholly owned subsidiary of SCANA Corporation. SCANA Corporation is a publicly traded company (NYSE: SCG) with a market capitalization in excess of $8.5 billion and is an investment grade rated company (S&P: BBB+).

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• Located within the Augusta, Georgia MSA

• Opportunity to create value through lease up of vacant building

• Three single tenant buildings are 100% leased

• SCANA Energy’s lease features 2.5% annual rental escalations

• Immediate proximity to the Savannah River Site which is a 310 square mile Department of Energy Site that employs approximately 10,000 people and provides an economic impact to the area of approximately $2.5 billion annually

• Property is an office park that has been professional managed and maintained

• Located in the Aiken submarket which has an office vacancy rate (5.5%) that is significantly lower than the Augusta MSA as a whole (7.9%)

• Third lowest submarket vacancy in the Augusta MSA

• Centralized location in the Aiken community in the immediate proximity to the strategic intersection of Whiskey Road and East Pine Log Road (60,000 VPD)

• Located 55 miles southwest of the state capital Columbia

• Average annual household incomes within a three mile radius of the property are in excess of $92,000

• Roughly 53,000 people living within a five mile radius of the property

• Tenants have a long operating history at the property

• Limited alternative office properties in the surrounding area

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

Offering

Price: $23,000,000

“Stabilized” Cap Rate: 7.91%

“Stabilized” NOI: $1,819,441

“As-Is” Cap Rate: 5.68%

“As-Is” NOI: $1,305.411

Year Built: 1991

Building Size: 205,000 SF

Land Area: 24.6 Acres

Parking Ratio 7.4:1,000 SF (1,540 Spaces)

Parcel Number: 122-14-01-001 (Building 1 & 4)

122-14-01-003 (Building 2 & 3)

Four buildings must be purchased together.

PROPERTY OVERVIEW:


LEASE OVERVIEW

LEASE OVERVIEW:

Vacant

Building: 1 -- 3 4

Annual Rent: $512,500 -- $703,150 $498,062

Rental Escalations: Flat -- Flat 2.5% Annually

Renewal Options: None -- None None

Lease Commencement Date:

May 1, 2001 -- June 1. 1999 June 1, 1999

Lease Expiration Date:

April 30, 2021 -- September 30, 2018 March 31, 2020

Tenant: UPS Supply Chain Solutions, Inc. (a wholly owned subsidiary of United Parcel Service, Inc.)

-- AECOM SCANA Energy Marketing, Inc. (a wholly owned subsidiary SCANA Corporation)

Year Built: 1991 1991 1991 1991

Building Size: 51,250 SF 51,250 SF 51,250 SF 51,250 SF

Address: 1991 Centennial AvenueAiken, SC 29803

2361 Centennial AvenueAiken, SC 29803




PRO FORMA

PRO FORMA:

“Stabilized” Operating Statement 1

“As-Is” Operating Statement

Income

Base Rent $2,440,551 $1,796,2303

Recoveries

Real Estate Taxes $139,104 $139,104

Insurance $8,996 $8,996

Electricity $17,147 $17,147

Total Recoveries $165,247 $165,247

Gross Rental Income $2,605,796 $1,961,477

Vacancy Allowance $(130,290) 2 $0

Effective Gross Income $2,475,508 $1,961,477

Expenses

Repairs and Maintenance (40,000) (40,000)

Utilities (58,677) (58,677)

Taxes (268,563) (268,563)

Insurance (17,874) (17,874)

Contracted Services (116,436) (116,436)

Management Fee (61,805) (61,805)

Direct Operating Expenses (Payroll, Salary & Wages) (48,691) (48,691)

Administrative Expenses (41,734) (41,734)

Leasing& Marketing (2,285) (2,285)

Total Expenses (656,066) (656,066)

Net Operating Income 1,819,441 1,305,411 1 Based on Building 2 being leased at $14 PSF on a gross lease basis2 5% vacancy based on gross rental income3 Includes tenant holdover through March 2017


MONTHLY PRO FORMA

“As-Is” Operating Statement January-17 February-17 March-17 April-17 May-17 June-17 July-17 August-17 September-17 October-17 November-17 December-17 Total

Income

Base Rent 167,202.50 167,202.50 167,202.50 143,846.96 143,846.96 143,846.96 143,846.96 143,846.96 143,846.96 143,846.96 143,846.96 143,846.96 1,796,230.17

Recoveries

Real Estate Taxes 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 11,592.03 139,104.34

Insurance 749.65 749.65 749.65 749.65 749.65 749.65 749.65 749.65 749.65 749.65 749.65 749.65 8,995.84

Electricity 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 1,428.88 17,146.54

Total Recoveries 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 13,770.56 165,246.72

Gross Rental Income 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 163,456.41 1,961,476.89

Vacancy Allowance 0.00

Effective Gross Income $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $163,456.41 $1,961,476.89

Expenses

Repairs and Maintenance (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (3,333.34) (40,000.06)

Utilities (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (4,889.72) (58,676.59)

Taxes (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (22,380.23) (268,562.71)

Insurance (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (1,489.53) (17,874.30)

Contracted Services (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (9,703.01) (116,436.17)

Management Fee (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (5,150.45) (61,805.37)

Direct Operating Expenses

(Payroll, Salary & Wages)(4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (4,057.62) (48,691.43)

Administrative Expenses (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (3,477.84) (41,734.05)

Leasing& Marketing (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (190.46) (2,285.47)

Total Expenses (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (54,672.18) (656,066.15)

Net Operating Income $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $108,784.23 $1,305,410.74


SITE PLAN

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SUBJECT OFFERING

PARCEL LINE

Vacant51,250 SF


CONSTRUCTION SUMMARY

Structure The buildings are constructed of a steel frame and reinforced concrete foundation with EIFS and glass exterior finishes.

Roof The roofs on the buildings are white single ply EPDM membrane roofing systems over a webbed steel structure. The roofs were replaced in 2005 with a warranty expiring in 2025.

Windows & Doors The store fronts include a liberal use of impact resistant glass panels and entries set in aluminum trim. Interior doors are a combination of wood and hollow core metal set mainly in wood frames.

HVAC The property features mounted gas fired heat pump package units. Several of the units have been replaced throughout the park as part of a preventative maintenance program – the units on Building 1, 2 and 3 are the responsibility of the tenant.

Interior Finishes The building interior finishes include painted gypsum wallboard and carpeted floors with 2x2 acoustical drop ceilings with 2x4 lay-in recessed fluorescent light fixtures.

Parking There are a total of 1,540 parking spaces of which fifteen are designating for handicapped usage. The total surface parking is in excess of what is required by present zoning, offering a parking ration of 7.51/1,000 rentable sq/ft. The parking lots are equipped with pole mounted lighting.

CONSTRUCTION SUMMARY:

AERIALS


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Whiskey Road (36,000 VPD)

E Pine Log Road (24,000 VPD

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South Centennial Avenue

19US

SOUTH AIKEN HIGH SCHOOL

VACANT

KENNEDY MIDDLE SCHOOL

CHURCHILL COMMONS APARTMENTS

NEW LONDON APARTMENTS

SUBJECT OFFERING


MAP

NSAVANNAH RIVER SITE


PHOTOS


TENANT PROFILE

United Parcel Service, Inc. (UPS) is the world’s largest package delivery company and a provider of supply chain management solutions. The global logistics company is headquartered in Sandy Springs, Georgia, which is part of the Greater Atlanta metropolitan area. UPS delivers more than 15 million packages a day to more than 6.1 million customers in more than 220 countries and territories around the world. UPS is known for its brown delivery trucks and uniforms, hence the company nickname “Brown”. UPS also operates its own airline and air cargo delivery service.

UPS operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, Asia, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. It offers three guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment offers international air and ocean freight forwarding, customs brokerage, distribution and post-sales services, and mail and consulting services in approximately 195 countries and territories; and less-than-truckload and truckload services to customers in North America.

United Parcel Service, Inc. is a publicly traded company on the New York Stock Exchange (Symbol: UPS) with a market capitalization in excess of $93 billion. United Parcel Service, Inc. is an investment grade rated company with a Standard and Poor’s rating of A+.

UPS Supply Chain Solutions, Inc. is a wholly owned subsidiary of United Parcel Service, Inc.

Website: www.ups.com

Stock Symbol: NYSE: UPS

Market Capitalization: $93 Billion

Credit Rating: S&P: A+

Employees: 401,000

Year Founded: 1907

Headquarters: Sandy Springs, GA

TENANT PROFILE:


TENANT PROFILE

AECOM (Architecture, Engineering, Consulting, Operations, and Maintenance) is a leading global provider of professional technical and management support services for public and private clients around the globe. AECOM provide planning, consulting, architectural and engineering design, and program and construction management services for a broad range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings, water and wastewater facilities and power transmission and distribution. AECOM has approximately 92,000 employees on 7 continents in over 150 countries. AECOM was number 156 on the 2016 Fortune 500 list. Fortune named AECOM as 2015 World’s Most Admired Companies and Engineering News-Record ranked AECOM as Number 1 Global Design Firm.

The company’s official name from 1990 to early January 2015 was AECOM Technology Corporation. Today, it is known simply as AECOM. AECOM is a publicly traded company on the New York Stock Exchange (Symbol: ACM) and on the Franfurt Stock Exchange (Symbol: E6Z). AECOM is a rated company with a Standard and Poor’s rating of BB.

Website: www.aecom.com

Stock Symbol: NYSE: ACM

Market Capitalization: $4.5 Billion

Credit Rating: S&P: BB

Employees: 92,000

Year Founded: 1910

Headquarters: Los Angeles, California

TENANT PROFILE:


TENANT PROFILE

SCANA Corporation through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. It owns nuclear, coal, hydro, natural gas and oil, and biomass generating facilities. The company also purchases, sells, and transports natural gas; offers energy-related services; and owns and operates a fiber optic telecommunications network, ethernet network, and data center facilities in South Carolina. In addition, it offers tower site construction, management, and rental services, as well as sells towers in South Carolina, North Carolina, and Tennessee. As of December 31, 2014, the company supplied electricity to approximately 688,000 customers; and provided natural gas to approximately 859,000 residential, commercial, and industrial customers in North Carolina and South Carolina, as well as markets natural gas to approximately 459,000 customers in Georgia. It serves municipalities, electric cooperatives, other investor-owned utilities, registered marketers, and federal and state electric agencies, as well as chemical, educational service, paper product, food product, lumber and wood product, health service, textile manufacturing, rubber and miscellaneous plastic product, and fabricated metal product industries. The company was founded in 1924 and is based in Cayce, South Carolina.

SCANA Corporation is a publicly traded company on the New York Stock Exchange (Symbol: SCG) with a market capitalization in excess of $8.5 billion. SCANA Corporation is an investment grade rated company with a Standard and Poor’s rating of BBB+.

SCANA Energy Marketing, Inc. is a wholly owned subsidiary of SCANA Corporation. SCANA Energy Marketing, Inc. purchases and sells natural gas to industrial and commercial companies as well as municipalities. It is also responsible for capacity management, asset management, risk management and scaling & balancing.

Website: www.scanaenergy.com

Stock Symbol: NYSE: SCG

Market Capitalization: $8.5 Billion

Credit Rating: S&P: BBB+

Employees: 5,877

Year Founded: 1924

Headquarters: Cayce, SC

TENANT PROFILE:


LOCATION OVERVIEW

AIKEN, SOUTH CAROLINA

Aiken is the county seat of Aiken County, South Carolina which was formed in 1871 from parts of Orangeburg, Lexington, Edgefield, and Barnwell counties. With Augusta, Georgia, it is one of the two largest cities of the Central Savannah River Area. It is part of the Augusta-Richmond County Metropolitan Statistical Area. Aiken is home to the University of South Carolina at Aiken. The population was 29,494 at the 2010 census. Aiken was recognized with the All-America City Award in 1997 by the National Civic League.

The Southside is the southern area of the city of Aiken, which strongly increased in development after the construction of the Savannah River Site. It now serves as the premiere shopping district in Aiken County, being the location of the Aiken Mall, multiple retail stores, and several restaurants.

The Savannah River Site (SRS) is a nuclear reservation in the United States in the state of South Carolina, located on land in Aiken, Allendale and Barnwell Counties adjacent to the Savannah River. The site was built during the 1950s to refine nuclear materials for deployment in nuclear weapons. It covers 310 square miles and employs more than 10,000 people. The site is protected by G4S Secure Solutions. It is owned by the U.S. Department of Energy (DOE). The management and operating contract is held by Savannah River Nuclear Solutions LLC and the Liquid Waste Operations contract is held by Savannah River Remediation, which is a team of companies led by URS Corp. A major focus is cleanup activities related to work done in the past for American nuclear buildup. Currently none of the reactors on-site are operating. SRS is also home to the Savannah River National Laboratory and the USA’s only operating radiochemical separations facility. Its tritium facilities are also the United States’ only source of tritium, an essential component in nuclear weapons. The USA’s only mixed oxide fuel (MOX) manufacturing plant is being constructed at SRS overseen by the National Nuclear Security Administration. When operational, the MOX facility will convert legacy weapons-grade plutonium into fuel suitable for commercial power reactors.

AUGUSTA, GEORGIA MSA

Augusta, Home to Augusta National Golf Course, the annual site of the Masters Golf Tournament, is the second oldest and largest city in the state of Georgia. The Augusta metropolitan area consists of cities in both Georgia and South Carolina. The Savannah River serves as the boundary between Augusta and Aiken County, South Carolina. The Augusta MSA has a population of 603,658 ranked 92nd in the United States.

LOCATION OVERVIEW:


DEMOGRAPHICS

DEMOGRAPHIC REPORT: Population 3 Mile 5 Mile 7 Mile

Total Population 29,889 52,737 99,955

Total Households 13,478 22,296 40,762

Income 3 Mile 5 Mile 7 Mile

Median Household Income $68,563 $60,082 $52,070

Average Household Income $91,876 $85,342 $74,120

CORPORATE PARKWAY

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Randy [email protected]

Jimmy [email protected]

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Documents

Centennial Corporate Center (Four Commercial Buildings ... Corp Center - Aiken, SC - OM.pdfSCANA Energy Marketing, Inc. is a wholly owned subsidiary of SCANA Corporation. SCANA Corporation