Flat Shoals Distribution Center

CLASS A STATE-OF-THE-ART BULK DISTRIBUTION FACILITY TOTALING 362,700 SF LOCATED IN ATLANTA’S HIGHLY SOUGHT AFTER I-85 SOUTH SUBMARKET

I-85 S/FLAT SHOALS DISTRIBUTION CENTER

TRAILERSTORAGE

TRAILER STORAGE

200’ DEEPTRUCK COURT

150’ DEEPTRUCK COURT

CARPARKING/TRAILER

STORAGE

CROSS DOCK362,700 SF

806’

450’

2

Confidentiality Memorandum and DisclaimerThis Offering Memorandum was prepared by Lincoln Property Company (LPC), and has been reviewed by the Seller. It

contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the

information that a prospective purchaser may desire. All financial projections are provided for general reference purposes

only and are based on assumptions relating to the general economy, competition, and other factors, which therefore

are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified

prospective purchasers.

In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form

and do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they

constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.

This Offering Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and

does not constitute a recommendation, endorsement, or advice as to the value of the Property by LPC or the Seller. Each

prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing

the Property described herein.

Seller and LPC expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to

purchase the Property and/or to terminate discussions with any party at any time with or without notice. Seller shall have

no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase

the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved

by the Seller, and any conditions to Seller’s obligations thereunder have been satisfied or waived. LPC is not authorized to

make any representations or agreements on behalf of the Seller.

This Offering Memorandum is the property of LPC, and may be used only by parties approved by LPC. The Property is

privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to

LPC, and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in

the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to

anyone without prior written authorization of LPC and the Seller.

THE TERMS AND CONDITIONS SET FORTH ABOVE APPLY TO THIS OFFERING MEMORANDUM IN ITS ENTIRETY.

TONY BARTLETT

DEnton Shamburger

Chip Sipple

Senior Vice [email protected]

Vice [email protected]

Senior [email protected]

3

Confidentiality Memorandum and Disclaimer

table of

CONTENTSExecutive Summary

Competitive Properties

Project Overview

Lease and Sales COmps

4

Executive

SummaryI.

85

FLAT SHOALS ROAD

BUFFINGTON ROAD

5

LINCOLN PROPERTY COMPANY (“Lincoln”) is seeking JV equity to partner in the opportunity to develop Flat Shoals Distribution Center (“FSDC”), a Class A, state of the art, bulk distribution building totaling 362,700 SF and located in Atlanta’s highly sought after I-85 South submarket.

Lincoln is currently under contract for a 54.6 acre tract of land, which as planned, would accommodate a single, “mini-bulk” distribution building at the intersection of Buffington Road and Flat Shoals road in south Atlanta. The I-85 South/Fairburn industrial submarket is Atlanta’s hottest submarket having attracted corporate stalwarts like Google, SC Johnson, Amazon, Wal-Mart, Smuckers, Proctor & Gamble, Kraft Foods, Lowes, Costco, Clorox, Nestle Purina, Newell Rubbermaid and Kellogg to the area in recent years. In fact, the I-85 South corridor is the second fastest growing bulk industrial corridor in Metro Atlanta since 1990:

FSDC is a superior infill location with immediate proximity to I-85 at the first exit south of I-285 and only 6.5 miles away from Atlanta’s Hartsfield International Airport. CSX’s new 24-hour terminal, its 9th largest in terms of lift volume and occupying over 200 acres, lies 8 miles to the south along I-85.

The competitive set for FSDC is comprised of 14.25 million SF of competitive Class A bulk product that has a current vacancy rate of only 3.87%. Bulk Warehouse buildings in this submarket currently lease for $3.35 - $3.75 NNN on a square foot.

No other industrial corridor in Atlanta can match I-85 South’s combination of size, volume, and occupancy. No other corridor with at least 20million SF or greater of bulk product has such a low vacancy rate. Although Atlanta’s I-85 North Corridor boasts an overall vacancy of 2.4%, comparable bulk product in that submarket totals only 28 buildings and 12,466,560 SF, compared with 43 buildings totaling 25,086,372 SF along I-85 South. Even Atlanta’s massive I-75 South Corridor, the only submarket with more bulk product, has a 5.9% vacancy rate, lagging behind the burgeoning I-85 South market. This submarket has 2.7 million SF of new product under construction of which 88% has been pre-leased. Most recently, Innerface Furniture has leased 370,000 Sf with Oakmont at its Goodson Road project, leaving only 2 speculative projects with space available for lease.

KEY INVESTMENT HIGHLIGHTSProject Overview:

• 54.6 Acres

• 362,700 SF

• September 1, 2016 Land Closing/Ground Breaking (subject to rezoning)

• April 1, 2017 Delivery

• November 1, 2017 Lease Commencement

• $18.5 million total Project Costs

• $3.65 NNN rental rates yielding 7.00% cash on cash return

• 23.35% anticipated project IRR

No. Bldgs

6

ATLANTA INDUSTRIAL MARKETFollowing a nation-leading 17.4 million square feet of positive net absorption in 2014, the 554.5 million SF Atlanta industrial market continued its torrid growth 2015 with over 15 million SF of positive net absorption. Tightening vacancy has driven construction activity—and with nearly 21 million SF of industrial product currently under construction (including over 10 million SF of bulk product in South Atlanta alone), 2016 projects to carry Atlanta’s Bulk Market momentum from 2014 and 2015 into 2016.

Over the past four years Atlanta has experienced a total of 51.7 million SF of absorption. The strong performance of 2015 was distorted somewhat by Kmart’s departure from two distribution centers in South Atlanta, accounting for 2.4 million SF of negative absorption. Without that anomalous move out, net absorption would have exceeded 17 million square feet for 2015.

Bulk Warehouse product led positive net absorption in 2015 with 9.5 million SF, followed by Shallow Bay (2.4M SF) and Flex (300k SF). The South Atlanta Industrial Submarket leads Atlanta with 6.1 million SF of positive net absorption.

I-85 SOUTH/FAIRBURN COMPETITIVE SETIn addition to being Atlanta’s largest bulk-product market by volume, the I-85 S corridor boasts competitive asking rates and low market-wide vacancy:

The I-85 S / Fairburn Industrial Submarket has experienced a flurry of recent leasing activity following 6.83M SF of new requirements in the past 24 months, including: Wal-Mart (1.2M SF), Menlo/Google (1.1M SF), Proctor & Gamble (1.0M SF), Smuckers (1.0M SF), Exel/Keurig (988k SF), Dick’s Sporting Goods (914k SF with a 256k SF expansion), Amazon (517k and 301k SF), and PAE (471k SF).

7

Map Key:

Top 20 East Cost Ports

CSX Railyards

Transportation Infrastructure (Rail)

Georgia is the #1 State in Rail and Highway AccessibilityTransportation Challenges

• Transportation costs already comprise 61.5% of total logistics expenditures • Freight tonnage is forecasted to grow 23.5% by 2025 • The recent drop in oil prices has strained the economic viability of

exploratory activity, increasing fuel price sensitivity to world events (i.e. Saudi-Iranian hostility, extreme weather events, etc.)

• The U.S. and China recently negotiated a deal to reduce their greenhouse gas output—which means increased domestic regulatory costs through tighter EPA regulations.

Intermodal Rail Benefits• Provides sustainable savings of 10-40%• Increases access to a scalable source of capacity• One freight train can carry the equivalent of 280 trucks – greatly

decreasing marginal fuel and equipment costs to scale• The new CSX rail yard provides immediate access to the ports of Savannah,

Charleston, and Jacksonville and is less than 20 miles from the world’s largest Airport, Hartsfield-Jackson International

• Sustainability Integration – Rail Use Lowers CO2 output per unit of product shipped

RAIL TRANSIT TIMES FROM GA

Atlanta

Savannah

Tampa

3-4 Days

5-7 Days

Jacksonville

Charleston

Charlotte

ChambersburgPhiladelphia

New Jersey

Baltimore

Winter Haven

Besserner

Nashville

Evansville

Indianapolis

Kansas CityEast St. Louis

SoCal

NorCal

Seattle

LouisvilleCincinnati

Columbus

Chicago

Northwest Ohio

Detroit

Buffalo

SyracuseNew England

Ft. LauderdaleMiami

Memphis

1-2 Days

8

Marietta

Sandy Springs

ATLANTA

Hiram

Mableton

Smyrna

Vinings

East Cobb

duluth

NorcrossLawrenceville

grayson

SnelvilleTuckerBrookhaven

Redan

Lithonia

Conyers

Loganvile

Decatur

east point

College Park

union City

Fairburn

campbellton

douglasville

palmetto

Tyrone

Peachtree City

fayettville

jonesboro

riverdaleMorrow

Stockbridge

McDonough

BracksvilleOla

Newman

PowderSprings

Lakeview STates

chattahoocheehills

285

285285

285

285

20

20

20

85

85

85

75

75

675

10

29

140

120

78

70

154

65

29

34

7054

41

155

PROJECT

OVERVIEWII.

Harstfield-JacksonAtlanta International Airport

FLAT SHOALS DISTRIBUTION CENTER

9

CSX Fairburn Intermodal Terminal 7.0 milesI-85 0.2 milesI-285 3.35 milesHartsfield-Jackson Atlanta Int’l Airport 6.5 miles

KEY DISTANCES

S FULTON PKWY

JONESBORO ROAD

7 miles to CSX

3.35 m

iles t

o 285

6.5 miles to

Airport

ROOSEVELT HWY 85

85

85

285

285

HARTSFIELD-JACKSONAtlanta International Airport


10

SITE PLAN AND SPECS

Land Specifications:

Total Acres: Approximately 54.6 Acres

Usable Acres: Approximatley 40 Acres

Topography: Rolling (portion previously cleared and rough graded)

Utilities: Available subject to verification

Current Zoning: Residential

Proposed Zoning: M-1A (Light Industrial)

Anticipated Zoning Calendar:

Submittal March 29, 2016

Planning Commision (CZB)

May 17, 2016

Board of Commissioners

June 1, 2016

Municipality: Unincorporated Fulton County

Trailer Storage

806’

480’

150’200’

Trailer Storage

Wetland

Proposed Building362,700 SF

Property Line

flat shoals road

Buffington Road

85

11

Proposed BUILDING SPECS

BUILDING Specifications:

Building Size: 362,700 SF

Building Dimensions:

450' D x 806' L

Clear Height: 36'

Column Spacing: 56' W x 55' D

Speed Loading Bays:

60' Deep

Dock Loading: 80 Dock High Doors; 4 Drive-In Doors

Concrete Truck Court(s):

200' D / 150' D (Cross-Dock)

Trailer Parking: 41 Spaces (Expandable)

Floor Slab: 7" Concrete Slab on 6" GAB

Sprinkler: ESFR

Roof: TPO - 60mil

Flex Lot: Additional Trailer Storage, Auto Parking or Outside Storage

12

13

Marietta

Sandy Springs

ATLANTA

Hiram

Mableton

Smyrna

Vinings

East Cobb

duluth


grayson


Redan

Lithonia

Conyers

Loganvile

Decatur

east point

College Park

union City

Fairburn

campbellton

douglasville

palmetto

Tyrone

Peachtree City

fayettville

jonesboro

riverdaleMorrow

Stockbridge

McDonough

BracksvilleOla

Newman

PowderSprings

Lakeview STates

chattahoocheehills

285

285285

285

285

20

20

20

85

85

85

75

75

675

10

29

140

120

78

70

154

65

29

34

7054

41

155



Competitive

PropertiesIII.

14


S FULTON PKWY

JONESBORO ROAD

ROOSEVELT HWY 85

285

6

54

1

32

COMPETITIVE PROPERTIES MAP - I-85 SOUTH OVER 300,000 SF

MAJOR TENANTS:


1 Roosevelt Hwy 2 Southcreek 3EXEL

Southpark 4 I-85 Distribution Ct 5 Majestic Airport Ct III 6 Majectic Airport Ct I

22 Buildings12.7 MSF

19 Buildings 100% LeasedOnly 2 Vacancies

15

Project # of Bldgs Owner SF Vacant SF % Occ. Tenant Year Built Clear Height

Roosevelt Hwy 2

8095 McLarin Road USAA 1,044,288 0 100% Owens Corning 1998/2001 32’

8400 Tatum Road Lowe’s 1,337,487 0 100% Lowe’s 1989/1998 34’

Southcreek 5

1595 Oakley Industrial Blvd USAA 1,150,000 0 100% Clorox 2011 35’

1525 Oakley Industrial Blvd DCT Industrial Trust 556,800 556,800 0% Smuckers (vacating) 2006 28’

1555 Oakley Industrial Blvd DCT Industrial Trust 484,017 0 100% SC Johnson 2006 35’

1200 Oakley Industrial Blvd DCT Industrial Trust 400,704 0 100% Mobis Parts 1999 32’

1300 Oakley Industrial Blvd DCT Industrial Trust 350,000 0 100% Navistar 2001 30’

Southpark 8

5395 Oakley Industrial Blvd Exeter 422,304 150,866 64% Peachtree Logistics 2001 31’

7320 Oakley Industrial Blvd Exeter 400,000 0 100% Royal Appliance 1997 30’

7300 Oakley Industrial Blvd Industrial Income Trust 346,224 0 100% New Breed Logistics 1995 30’

7280 Oakley Industrial Blvd Exeter 353,400 0 100% IntegraCore 2014 32’

7780 Spence Road Exeter 798,296 0 100% Electrolux 2006 32’

5005 Terminus Drive Clarion Partners 569,918 0 100% Nestle Purina 1996 34’

130 Whitewater Place Exeter 498,050 0 100% Toto 2004 32’

4795 Coates Drive Prologis 339,362 0 100% Exel 1990 38’

I-85 Distribution Center 1

6855 Shannon Parkway South USAA 744,000 0 100% Amazon.com 2006 32’

Majestic Airport Center III 3

6720 Oakley Industrial Blvd Majestic Realty 1,001,790 0 100.00% Proctor & Gamble 2014 34’

6710 Oakley Industrial Blvd Majestic Realty 918,868 0 100.00% Kraft 2010 35’

6705 Oakley Industrial Blvd Majestic Realty 560,625 0 100.00% Menlo/Google 2014 36’

Majestic Airport Center I 2

2400 Sullivan Road Majestic Realty 420,000 0 100.00% Southeast Paper 1997 30’

2500 Sullivan Road Majestic Realty 425,000 0 100.00% DHL 1997 30’

Total Buildings 21 12,721,133 707,666 94%

1

4

5

6

2

3

COMPETITIVE PROPERTIES - I-85 SOUTH OVER 300,000 SF

16


S FULTON PKWY

JONESBORO ROAD

ROOSEVELT HWY 85

285

15

2

3

4

InnerfaceFurniture

Vacant

COMPETITIVE PROPERTIES under construction - I-85 SOUTH


6 Buildings4.7 MSF

75% Preleased

17

Project # of Bldgs

Owner SF Vacant SF

% Occ. Tenant DElivery Date

Clear Height

Shugart Farms 2 Red Rock 1,034,000 0 100% Smuckers (BTS) 2016 32’Red Rock 873,800 873,800 0% Vacant (spec) 2016 32’

Fairburn 85 1 Trammell Crow Company 317,520 317,520 0% Vacant (spec) 2016 30’

Goodson Road 1 Oakmont 370,000 0 100% Innerface Furniture 2016 36’

Union Station 1 Rooker / LaSalle 987,840 0 100% Exel/Keurig (spec pre-lease)

2016 36’

Fairburn Logistics Center 1 TBD (currently U.C. Seller is TPA Group)

1,129,750 0 100% Menlo/Google 2016 36’

1

2

3

4

5

COMPETITIVE PROPERTIES under construction - I-85 SOUTH

Under Construction SF Vacant SF % Occupied6 4,712,910 1,191,320 75%

18

19

Marietta

Sandy Springs

ATLANTA

Hiram

Mableton

Smyrna

Vinings

East Cobb

duluth


grayson


Redan

Lithonia

Conyers

Loganvile

Decatur

east point

College Park

union City

Fairburn

campbellton

douglasville

palmetto

Tyrone

Peachtree City

fayettville

jonesboro

riverdaleMorrow

Stockbridge

McDonough

BracksvilleOla

Newman

PowderSprings

Lakeview STates

chattahoocheehills

285

285285

285

285

20

20

20

85

85

85

75

75

675

10

29

140

120

78

70

154

65

29

34

7054

41

155



Lease And

Sales CompsIV.

20

Lease COmps - I-85 SubmarketTenaNT Project Date Year SF Rate Term TI Comment

Innerface Furniture Oakmont 12/1/2015 2015 370,000 $3.50 38 $4.00 2 mos free. 3% annnual bumps. Building was to sell vacant for sub

6% cap.

Amazon.com 730 Building 7/1/2015 2015 730,000 $3.30 88 $3.50 2.50%, 4 months free

Amazon.com I-85 Distribution Center 7/1/2015 2015 517,080 $3.15 60 $0.25 3% annual bumps

Exel / Keurig Union Station Business Center 7/1/2015 2015 987,840 $3.43 60 $3.50 2.5% annual bumps

Menlo / Google 212 Bohannon Road 4/1/2015 2015 1,129,750 $3.72 84 $5.50 Spec building pre-leased to Menlo for Google account, 2.0% annual

escalations

Smuckers Shugart Farms 4/1/2015 2015 1,034,000 $3.35 120 $4.00 BTS for Smuckers, paying on 750K in yr 1, 2.5% annual escalations

PAE 4300 South Fulton Parkway 4/1/2015 2015 471,000 $2.95 84 $1.70 2.5% annual escalations, 3 months free. US Postal Service account.

Menlo Logistics Majestic Airport Center III 7/1/2014 2014 560,625 $3.33 64 $4.20 Spec building pre-leased to Menlo for Google account, 2.0% annu-al escalations. 5 mo free, 3.00%

bumps. Built in 2014

IntegraCore 7280 Oakley Industrial Blvd 6/1/2014 2014 353,400 $3.19 86 $3.00 2 mo free, 3.00% bumps. Built in 2014

Wal-Mart Majestic Airport Center IV 4/1/2014 2014 1,200,000 $3.90 240 NA BTS for Wal-Mart

Amazon.com 4200 N Commerce Drive 1/1/2014 2014 301,200 $3.55 65 $5.00 2% annual escalations

Proctor & Gamble Majestic Airport Center III 10/1/2013 2013 1,001,790 $3.91 124 NA BTS for P&G, flat rent for yrs 1 - 5, bumps to $4.26 NNN yrs 6 - 10; 4

mos free rent

AVERAGES 721,390 $3.44 93 $3.47

1

9

3

11

5

7

2

10

4

12

6

8

21

Lease COmps Map1

1

Innerface Furniture

9

Menlo Logistics

3

3

Amazon.com

11

Wal-Mart

5 Menlo/Google

Proctor & Gamble

7 PAE

2 Amazon.com

10

IntegraCore

4 Exel/Keurig

12

Amazon.com

6 Smuckers

8

85

85

85

285

285

4

8

10

5 12

7

2

9

11

6



22

Atlanta Industrial Sales - Metro WideSale Date

Property Submarket Year Built

RSF % Leased

Seller Buyer Purchase Price

PSF Cap Rate

Pending Fairburn Logistics Center I-85 South 2015 1,129,750 100% TPA TBD $78,000,000 $69.04 5.42%Comments: One, 100% preleased to Menlo Logistics/Google. 7 year lease term expiring December 2022 with 2% annual rent escalations. Delervering YE 2015 (tilt-up), cross dock, 550’ deep, 36’ clear, EFR, 190-200’ deep, TPO roof (20 warranty).

Jun-15 Chastain Meadows Northwest 2007-2009

510,699 96% Taylor & Mathis Industrial Property Trust

$45,650,000 $89 6.21%

Comments: Five, multi-tenant, Class A rear load buildings constructed from 2007-2009 (tilt-up). Clear heights range from 24’-28’, 120’+ truck courts, Class IV/ESFR fire protection & T5/Metal Halide lighting.

Dec-14 Peachtree North I-85 Northeast 1997-1998

708,370 92% McDonald Development Corporation

Industrial Property Trust

$50,200,000 $70.87 5.75%

Comments: Four-building, (3 rear-load, 1 front-load), to 22 tenants. Built 1997 - 1998 (tilt-up), 24’ - 28’ clear heights, 40’ x 40’ column spacing, 120’ truck courts (w/ 50’ - 60’ concrete aprons), ESFR (88% of SF), T5 lighting (68% of SF), and 19% average office.

Sep-14 "Rockdale Regional DC (Hill Phoenix BTS)"

I-20 East 2014 496,780 100% Ashley Capital Ladder Capital $32,565,500 $66 6.00%

Comments: Cross-dock, build-to-suit bulk distribution building, 100%-leased to Hill-Phoenix through 3/31/2029 at $3.93 PSF with rental rate increase of 1%, 1.5%, then 2% bumps (1.3% average annual increases). 28’ clear height, 135’ truck courts, 460’ building depth, 52’ x 50’ bays.

Sep-14 Technology Center of Georgia

I-85 Northeast 2003-2009

944,444 97% Taylor & Mathis TA Associates $63,250,000 $67 5.83%

Comments: Five, multi-tenant bulk distribution buildings, featuring 24’ -30’ clear heights, 125’ - 175’ truck courts (with 50’ - 60’ concrete aprons), 120’ - 240’ building depths, ESFR, T-5 lighting.

Jul-14 "Terminus West (1250 Terminus Dr Bldg)"

I-20 West/Fulton Indistrial

2007 330,000 100% High Street Equity Advisors

Cabot Properties $17,735,000 $54 6.75%

Comments: One, front-loading bulk distribution building 100% leased to two tenants. Built in 2007, 32’ clear height, 300’ building depth, 52’ x 40’ column spacing,, 63 trailer parking spaces, 180’ truck courts (with 60’ concrete aprons) including a 50’ deep trailer parking courts (with 15’ concrete dolly pad), 60 dock doors, 4.2% office finish, ESFR, T-5 lighting, and 57% warehouse HVAC.

Jan-14 "Fabric.com Building (Jiles Commerce Center)"

Northwest 2012 202,120 100% Republic Property Company

Hillwood Investment Properties

$12,000,000 $59 6.33%

Comments: Single tenant building. Leased to Fabric.com (an Amazon company) for 8 years (May 2020). Paying at time of sale $3.80/sf with $0.10/sf annual bumps. 12.3% office, 30’ clear, 125’ truck court, ESFR.

TOTALS/AVERAGES 4,322,163 98% $67.88 6.04%

1

2

3

4

5

6

7

23

Sales COmps Map

Marietta

Sandy Springs

Roswell

Alpharetta

Johns Creek

ATLANTA

HollySpringsCartersville

Emerson

Alatoona

Kennesaw

Hiram

Mableton

Smyrna

Vinings

East Cobb

Milton

Suwanee

duluth


grayson


Redan

Lithonia

Conyers

Loganvile

Decatur

east point

College Park

union City

Fairburn

campbellton

douglasville

palmetto

Tyrone

Peachtree City

fayettville

jonesboro

riverdaleMorrow

Stockbridge

McDonough

BracksvilleOla

Newman

Buford

PowderSprings

Lakeview STates

chattahoocheehills

285

285

575

985

285

285

285

20

20

20

85

85

85

85

75

75

75

675

10

29

140

23

19

92

120

78

70

154

65

29

34

7054

41

155

1

1

2

2

3 3

4

4

5

56

6

7

7

Fairburn Logistics Center

Rockdale Regional DC

Terminus West

Chastain Meadows

Peachtree North

Technology Center of Georgia

Fabric.com Building


3405 Piedmont Rd NESuite 450Atlanta, GA 30305404.266.7600www.lpcsoutheast.com

Documents

Flat Shoals Distribution Center