Development BoomLansing Development BoomDevelopments

JDS REAL ESTATE SERVICES, INC.OFFERING MEMORANDUM

JDS Real Estate Services, Inc. in association with Kidder Mathews | L3 OFFERING MEMORANDUM 2

EMPLOYMENT & JOB GROWTH• 1.5% Projected Annual Job Growth

• 4.5% Unemployment

• $51,386 Median Household Income

• 1.7% Household Income Growth

• 1.3% High-Tech Employment

HOUSING• $143,400 Median Home Price

• 7.1% Increase Home Price Change

EDUCATION• 93.1% High School Attainment

• 34.2% College Attainment

• 13.8% Graduate Degrees

• Top College Michigan State University

QUALITY OF LIFE• 11.3% Below National Average

Cost of Living

• 21min Average Commute

• 2,418 Crimes per 100K Residents

DEVELOPMENT BOOMThe already up and coming metropolitan area of Lansing is continuing to see an increase in population following a huge development boom. Recent job growth significantly outpaced the national average with the unemployment rate at 4.5%. In the upcoming few years alone, Lansing will undergo multiple business expansions equaling upwards of $397 million dollars, creating hundreds, maybe even thousands of new jobs. Sparrow Health Systems is also in the process of developing a $64 million five story cancer center and a $20 million three story health center to open in November.

Builders have taken notice of these positive trends, and development has returned to the metro. More than 700 housing units have been completed during this cycle with multiple projects are underway. In 2016, after The Outfield, a 4 Star 84-unit apartment in the Stadium District of the Central/Northside Submarket was built, it was fully occupied four months later. Another example is Prestwick Village Apartments, a 66-unit complex built in April of last year which has already reached stabilization. Following new employment and housing opportunities in the area, a $276 million redevelopment project, the largest in the area in recent history, will be creating spaces with retail, restaurants, breweries, and multiple hotels.

Additionally, $2.2 billion in private investment in Lansing over the past 10 years is being used for projects negotiated or spearheaded by regional business development organization Lansing Economic Area Partnership Inc.

According to data from the Lansing Economic Development Corp., the city’s economic development arm that contracts with LEAP, there has been more than $2.2 billion in private investment in the city of Lansing alone over the past 10 years. A bulk of that — nearly $1.1 billion — came in the past three years and was mainly the result of GM spending roughly $1 billion on its Lansing Delta Township assembly plant, along with adding a stamping plant, logistics operation and hundreds of workers as it retooled its Lansing Grand River assembly plant. Regionally, there has been an additional $199.5 million in private investment outside the city since 2013, according to LEAP.

Michigan State University is an economic driver with more than 50,000 students, high-profile projects such as the $730 million Facility for Rare Isotope Beams for nuclear science and the basic construction and employment that come with being a Big Ten university.

General Motors is adding a stamping plant and a logistics operation to its Lansing Grand River plant to support moving production of the Camaro from Canada to Lansing. It’s part of a long-term strategy to operate its plants at full capacity and adhere to terms of its labor contract with the United Auto Workers.

Source: crainsdetroit.com

Lansing Development Boom

JDS Real Estate Services, Inc. in association with Kidder Mathews | L3 OFFERING MEMORANDUM 3

DevelopmentsPROPERTY ADDRESS DESCRIPTION

1Sparrow Health Systems1215 E Michigan AveLansing, MI

Sparrow Health System is developing a $64 Million five story Herbert-Herman cancer center. The glass-fronted 132,000 square foot building will house all of the health system’s cancer treatments under one roof for the first time. Complimenting the hospital will be a new dining area, called the Gathering Place featuring a full service Starbucks.

2Sparrow Health System Health Center & Laboratory1210 W Saginaw StLansing, MI

Also in development is the $20 Million, three-story health center which is set to partially open in November for primary care services. Sparrow Health System is nearing completion of a $10 million Sparrow Reference laboratory. The 35,000 sf facility will house labs located within the St. Lawrence campus.

3LOC Performance Products 1600 N. Larch St Lansing, MI

LOC Performance Products announced a $96.5 million expansion to the 1600 N. Larch St property. The expansion will provide 700 new jobs and is expected to create a huge economic boost in the area.

4School For The Blind Project656 W Maple StLansing, MI

Indianapolis-Based TWG Development will redevelop the former Michigan School for the Blind to low-income senior housing. At $24.4 million the plan includes creating 72 multi-family units and 60 senior units between 3 buildings.

REO Town Investment - The Venue at East Town2010 – 2020 East Michigan AveLansing, MI

REO town has seen a $500,000 investment that will allow for development of a brewery and pottery studio.Lansings East Side is the site of “The Venue at East Town”, a $5 million 4 story development that will have 39 apartments atop retail space on the first floor. The Gillespie Co. Strange Matter Coffee and Rajje’s Taphouse have been named as tenants.

500 South Washington Avenue, Lansing, MI

Urban Systems purchased the 500 South Washington Avenue block in the beginning of 2018. The development plans for the property include building a five-to eight-story 170-unit apartment building. The building will also have retail space on the SW corner of Washington Avenue and Lenawee Street.

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JDS Real Estate Services, Inc. in association with Kidder Mathews | L3 OFFERING MEMORANDUM 4

PROPERTY ADDRESS DESCRIPTION

1Arcadia Ales & Smokehouse2101 E Michigan AveLansing, MI

Lansing developer Kris Elliot of Urban Feast obtained the licensing from Arcadia Brewing Co. to build a brewpub and restaurant at 2101 E. Michigan Ave. The 10,000-square-foot brewpub will serve Arcadia brands and will also brew six Lansing-only beers on site. The project will also include an outdoor patio to accommodate 150 people.

2Center City DistrictAlbert Ave and Grand River AveLansing, MI

Ballein Management of East Lansing has partnered with a Chicago developer to build two 12-story buildings in downtown East Lansing. The first building would be located on the 100 block of East Grand River Avenue and would include apartments with a grocery store on the first floor. The second would be built in City Lot 1 off Albert Avenue. It would include retail space on the first floor, a parking deck on the next five levels and housing for people 55 and older in the top six floors.

3Hilton Homewood Suites2201 Showtime DrLansing, MI

Hilton Homewood Suites will be the third hotel built since 2015 at the Heights in Eastwood in Lansing Township. Hyatt Place and Fairfield Inn both opened within the last two years at the heights. The 7 story hotel, located next to Walmart, will have 139 rooms.

4Springhill Suites By Marriott1100 Trowbridge RoadLansing, MI

A $10-million Spring Hill Suites hotel will be built at the former Howard Johnson motel at 1100 Trowbridge Road in East Lansing. The four-story hotel will have 88 rooms, a swimming pool and a fitness center. A one-story retail building will also be constructed on the site, which will accommodate four tenants, anchored by a restaurant and a drive-thru coffee shop.

Costco5800 Park Lake RdLansing, MI

A 157,000-square-foot retail warehouse is being built at 5800 Park Lake Road, the site of the former Four Winds Golf Course. When it opens, Costco will employ 150 people. The $30-million project includes a tire center and a standalone gas station that will have 24 pumps.

Marketplace Apartments313 N Cedar StLansing, MI

Developer Pat Gillespie is building more riverfront apartments in downtown Lansing. The expansion of Marketplace apartments will add 79 rental units to the area, half of which overlook the Grand River while the rest overlook the Cooley law School Stadium. The apartment complex will have a rooftop patio and amenities that take advantage of the riverfront, though specifics have not yet been announced.

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JDS Real Estate Services, Inc. in association with Kidder Mathews | L3 OFFERING MEMORANDUM 5

PROPERTY ADDRESS DESCRIPTION

1Park DistrictGrand River Ave and Abbot RdLansing, MI

Plans have been approved for Chicago developer Convexity Properties to build a 13-story hotel and apartment complex on the corner of Grand River Avenue and Abbot Road in downtown East Lansing. Graduate Hotel will manage 150 rooms and the apartment complex will have 197 units.

2General Motors Co920 Townsend StrtLansing, MI

The Detroit automaker is expanding its Lansing-area factories with three new additions — a $44.5 million logistics center to sort and deliver parts to the assembly line and a $174 million stamping plant, both at GM’s Lansing Grand River plant; and a $63 million expansion of its Lansing Delta Township assembly plant.

3The Heights at Eastwood2505 Showtime DrLansing, MI

A $47 million public-private development project north of Eastwood Towne Center in Lansing Township. The project will include hotels, apartments, a parking garage and restaurants near Lake Lansing Road and U.S. 127.

4Waverly Golf CourseWest Saginaw Hwy and Waverly RdLansing, MI

A Detroit-area development firm and restaurant franchise owner has purchased the closed Waverly Golf Course from the city of Lansing. The 120-acre golf course and adjacent park, at the corner of Saginaw Street and Waverly Road, closed in 2007. City voters approved selling the land in 2012, although it has been slow to attract interest.

Red Cedar Renaissance203 S Clippert StLansing, MI

At $276 million, it is the largest redevelopment project in Lansing’s recent history. Lansing developer Joel Ferguson and Frank Kass, chairman of Columbus, Ohio-based Continental Real Estate Cos., plan to turn the closed Red Cedar Golf Course into a mixed-use complex with retail, restaurants, student housing, townhouses and pathways. The property also would include a full-service Hyatt hotel, the namesake brand of Chicago’s Hyatt Hotels Corp. About 22 acres would be preserved as parkland because it lies in the Red Cedar River floodway and can’t be developed. Ingham County Drain Commissioner Patrick Lindemann simultaneously will redesign the drain that empties storm water into the river.

301 W. Lenawee St Lansing, MI

Greystone Finance Group recently closed a deal to provide a $17 million loan to develop a 145-unit apartment complex. The complex, filled with studio units, 1 bedroom and 2 bedroom apartments is expected to be completed by the end of 2019.

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BEVERLY PLACE

BELMONT PARK APARTMENTS

MARVIN GARDENS

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The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from JDS Real Estate Services, Inc. in association with Kidder Mathews and should not be made available to any other person or entity without the written consent of JDS Real Estate Services, Inc. in association with Kidder Mathews.

This information has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. JDS Real Estate Services, Inc. in association with Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, JDS Real Estate Services, Inc. in association with Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has JDS Real Estate Services, Inc. in association with Kidder Mathews 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.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Contact Information

Chris ArmesKidder Mathewscarmes@kiddermathews.com760.613.9200 | CA LIC #01379750

Jennifer D. SteinJDS Real Estate Services, Inc. jstein@jdsreservices.com MI LIC # 6505385865 | 213.446.5366

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