OFFERING MEMORANDUM...Feb 20, 2018 · 4 | Industrial Zoned Land, Bensalem, PA Binswanger is pleased to offer to qualified buyers this unique development opportunity located in Bensalem,

OFFERING MEMORANDUMIndustrial Zoned Land, Bensalem, PA

Street Road

2 | Industrial Zoned Land, Bensalem, PA

DISCLAIMERThe information contained in this Offering Memorandum is proprietary and strictly confidential. It is furnished solely for the purpose of review by a prospective purchaser of the Subject Property and is not to be used for any other purposes or made available to any person without the expressed written consent of the Seller or Binswanger

The information in this prospectus has been compiled from sources deemed to be reliable. However, neither the information nor the reliability of their sources are guaranteed by Binswanger or the Seller. Neither Binswanger nor the Seller have verified, and will not verify, any of the information contained herein. Neither Binswanger nor the Seller makes any representation or warranty whatsoever regarding the accuracy or completeness of the information provided herein.

A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the Property without reliance on this or any other confidential information, written or verbal, from Binswanger or the Seller.

This Confidential Offering Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. This Confidential Offering Memorandum does not constitute an offer of security.

Prospective purchasers are recommended to seek professional advice. This includes legal, tax, environmental, engineering and other as deemed necessary relative to a purchase of this Property. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to real estate is subject to volatility. The Owner (Seller) expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party, at any time, with or without written notice. The Seller and Binswanger reserve the right to negotiate with one or more prospective purchasers at any time.

Only a fully executed Real Estate Purchase Agreement, approved by the Seller, shall bind the property. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or the information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in a fully-executed Real Estate Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against the Seller or Binswanger or any of their affiliates, officers, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

Each prospective purchaser and/or broker proceeds at its own risk.

Industrial Zoned Land, Bensalem, PA | 3

TABLE OF CONTENTS

Executive Summary.............4Property Summary...............5Location Summary.............10Process & Procedures .......16



Binswanger is pleased to offer to qualified buyers this unique development opportunity located in Bensalem, PA. This tremendous 88.69+ acre site is situated in the heart of lower Bucks County, and is located in one of the most sought after areas of the greater Philadelphia region.

The majority of the site is comprised of 73.3 acres zoned L-I (Light Industrial District) while the remaining 15.39 acres fall within the R-22 Residential District. The site is located directly off Route 132 (Street Road) and is within immediate proximity of the PA Turnpike, Route 1 and I-95. Additionally, Bensalem Township is one of the most densely populated areas within Bucks County.

Located within the Southeastern Pennsylvania marketplace, this site offers any buyer, the rare potential opportunity to enter into a proven & mature market. With several strong market indicators, such as robust logistical access, and record low vacancy rates, this area continues to garner significant interest from buyers regionally & nationally. We anticipate strong interest in this offering and look forward to discussing the opportunity with you in more detail.

Chris Pennington Binswanger Partner and Senior Vice President Two Logan Square Philadelphia, PA 19103

215-448-6053 [email protected]

Jason OstachBinswanger Vice President Two Logan Square Philadelphia, PA 19103

215-448-6021 [email protected]

EXECUTIVE SUMMARY


PROPERTY OVERVIEW

73.3 ACRES


15.39 ACRES

INDUSTRIAL ZONED LAND

RAIL AVE.

STREET RD.

TREMONT AVE.

OAKFORD AVE.


PROPERTY DETAILSHIGH BARRIER TO ENTRY MARKET

• L-I Light Industrial district

• One of the last remaining strategically located industrial sites

• Only 4 available flex/industrial buildings within Bucks County totaling 90,000+ SF

SURGING INDUSTRIAL DEMAND IN BUCKS COUNTY PA

• 3.9% vacancy rate; consistently lower than Philadelphia for the last 15 years (Q1 2020)

• Only 1% of inventory is currently under construction

• $7.17 average price per SF

STRATEGIC INFILL LOCATION

• Infill location within the Philadelphia MSA (Bensalem, PSA - Bucks County)

• Direct CSX Rail Service available along the southern portion of the property

• Two (2) sewer lines already in place

• Local access to public transportation via Trevose SEPTA Regional Rail Line Station

• Direct access to Route 132 (Street Road), Route 1, I-95 and PA Turnpike I-276

REGIONAL INFRASTRUCTURE IMPROVEMENTS

• I-95 & PA Turnpike Connector project recently completed

• PhilaPort Expansion – two new super post-Panamax cranes installed in 2018 / 45-foot river dredging project 99.9% finished and is expected to be completed in early 2020

TAXES (According to Bensalem Townships Tax Assessors Office)

• Smaller Parcel - 02-005-374 - $3,073.30 (Estimated 2020)

• Larger Parcel - 02-004-308 - $27,085.55 (Estimated 2020)


LIGHT INDUSTRIAL DISTRICTL-I industrial districts are designed to provide for light, high-technology, or precision manufacturing uses and related activities that impose substantially less physical burdens on the community than traditional “smokestack” industrial uses. L-I districts are designed to provide a more complimentary interface between industrial and nonindustrial areas. In addition, L-I districts permit the integration of light industrial with commercial office uses, affording smaller enterprises the opportunity to consolidate their management and production facilities.

LIGHT MANUFACTURING - uses limited to the assembly and production of fullyprocessed materials and subassemblies, including the following previously processed and manufactured materials: pre-formed metal castings or forgings, pre-molded plastics, bone, canvas, ceramics, cork, feathers, felt, fur, glass, hair, horn, leather, paper, plastics, organic shells, rubber and wood

PRECISION MANUFACTURING - defined to include, and shall be limited to activities of a similar character as, the manufacturer of jewelry, clocks, watches, professional, scientific, electronic and optical instruments, and other products not requiring the large-scale processing of raw or semi-processed materials

SCIENTIFIC RESEARCH FACILITIES - including laboratories, for research, testing and experimental uses or similar establishment for research or product development, not involving danger from fire or explosion

DAIRY PRODUCT PROCESSING - as creamery, butter or cheese making, or milk bottling establishment; Soft drink or other premixed non-alcoholic beverage bottling facilities not requiring the processing of raw or semi-processed materials

WAREHOUSING AND STORAGE, in enclosed buildings, for retail, manufacturing, wholesale or distribution businesses or establishments, including showrooms and offices in connection with same

ADDITIONAL PERMISSABLE USES: Monument production facilities (not requiring metal casting or forging). Wholesale business facilities, Laundry, dry cleaning and/or clothes pressing plant, dying facilities (but not including the dying of fur or leather)

L-I AREA REGULATIONS - 35% Building Coverage Allowable By Right, 55% Impervious Coverage Allowable By Right, Building Height of up to 40’ Allowable by Right

R-22 RESIDENTIAL DISTRICT Residential districts are designed to provide singlefamily, detached residential housing at densities higher than permitted in other districts, in an effort to provide for the preservation of natural resources and environmental features that are unique to each area.

R-22 AREA REGULATIONS - Height Regulations: No building or structure in an R-22 district shall exceed 35 feet in height, provided that such height limit may be exceeded by one foot for each foot by which both the width of each side yard and the depth of the front yard is increased, beyond minimum side yard and front yard requirements, up to a maximum height of 50 feet.

Maximum Density – No more than 2.5 dwelling units per acre*

ZONING


A $500,000 preservation grant was preliminarily approved by the Bucks County Open Space Commission in connection with this property. Current ownership will pass along to the buyer the rights to this grant. While the grant is conditioned upon the long-term preservation of the eastern portion of the property, it is ownership’s understanding that the grant area can still be counted toward open space requirements, as well as be used for stormwater management. Further documentation & analysis of this portion will be provided upon request.

PRESERVATION GRANT

INCENTIVES/FUNDINGThe Bucks County Economic Development Corporation (BCEDC) is currently offering numerous types of potential loan programs, grants, and tax credits that can be used to finance various types of real estate projects (eligibility requirements may vary).

Bucks County Economic Development Corporation https://www.bcedc.com/

Bucks Countyhttp://www.buckscounty.org/

Bucks County Open Space Commissionhttps://dataportal-bucksgis.opendata.arcgis.com/pages/os-ag-natural-areas


REVISIONS

THIS DRAWING IS FOR PERMITPURPOSES ONLY - NOT FOR

CONSTRUCTION UNTIL THIS BOX HASBEEN CHECKED AND DATED.

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HORIZONTAL DATUM : -----

TOWNSHIP OF BENSALEMBUCKS COUNTYPENNSYLVANIA

TMP 2-4-308

72.76 ACRES

2018016 DCP

DATE OF ISSUE02/20/2018

REVISION 1-----

GRAPHIC SCALE

AS-OF-RIGHT INDUSTRIAL CONCEPT PLAN


LOCATION OVERVIEWINDUSTRIAL

ZONED LAND



HIGHWAY MAP

1.4 miles to

2.5 miles to

6.7 miles to

15.6 miles to

17.6 miles to PHILA

73.9 miles to NYC

PHILADELPHIA

CAMDEN




MARKET OVERVIEWOver the past three years, Bucks County’s industrial inventory averaged only 0.6%, or 400,000 SF, annual growth, however given this submarket’s large base of industrial tenants and moderate levels of new construction, Bucks County’s vacancy rate (3.9% as of 2020Q1) has been tighter than the Philadelphia Metro Area average for the past 15 years.

Bucks County’s annual industrial rent growth began to push above 3% in 2016 and has continued to increased well over 5% as of Q4 2017 (Q1 QTD 2020 is 5.5%). With vacancies tight and only a moderate level of new industrial projects under construction, robust rent growth will likely continue if the current economic expansion continues.

Most newly developed industrial facilities have been listing asking rents in the range of $6.25/SF–$7.50/SF triple net. Prior to Urban Outfitters preleasing all 309,000 SF of Herring Properties’ 2501 Green Lane, the developer was listing space within the project as available for lease at rents of $6.25/SF triple net. Pennridge Development’s 102,000-SF Pennridge Airport Business Park in Perkasie is currently listing asking rents of $6.50/SF triple net, and Nappen & Associates’ 125,000-SF distribution center development underway in Quakertown is currently listing asking rents of $7.50/SF triple net.

DEVELOPMENTFrom a development standpoint, Herring Properties has been one of the most active developers here since the Great Recession. During 2019, the firm completed the 309,000-SF build-to-suit distribution center at 2501 Green Lane, and seven years earlier, delivered a 250,000-SF build-to-suit distribution facility in Levittown for Airgas Safety, a supplier of industrial and medical gases.

A partnership between Cabot Properties and MRP Industrial is seeking tenants for a two-building, 260,000-SF development on West Pumping Station Road in Quakertown along Route 309. Just across that highway, Gorski Engineering is wrapping up construction on 2525 Milford Square Pike, a 125,000-SF project adjacent to the Quakertown Airport.

Meanwhile, much closer to the subject property, Ivy Realty completed the 235,000-SF project at 3750 State Road (Bensalem) in late 2019. No leasing has been announced yet, but the project is rumored to be close to securing full occupancy.

INVESTMENTLocally based Alliance Partners HSP closed one of 2019’s largest acquisitions when it purchased 6300 Bristol Pike in Levittown for $8.4 million, or $56/SF. The property, which was originally built in 1963, is fully leased to Solid Wood Cabinets through 2024. But the asset could eventually be a candidate for redevelopment, given its low price per SF and the fact that the buildings sits on a relatively large, 15-acre parcel with a floor-to-area ratio of 0.25.

Additionally, Long Island-based REIT One Liberty Properties acquired 500 State Road in Bensalem for $6.2 million, or $73/SF, at a 5.6% cap rate. The seller had acquired the property just six months earlier, when it was only 72% leased, for $4.7 million, or $55/SF, and brought the property to full occupancy with tenants including Betz Mechanical & Industrial Supply and Easy Heat Wood Pellets.

With numerous logistical access points & consistently low vacancy rates, Bucks County continues to be a proven and highly sought-after area of opportunity for investors, owners, and users.

BUCKS COUNTY


Philadelphia

Philadelphia (Entire region including Philadelphia Metro/Suburban, Southern New Jersey, portions of Delaware)Inventory SF: 553,000,000Under Construction SF: 6,700,000Vacancy Rate: 5.5%

Lehigh ValleyInventory SF: 135,000,000Under Construction SF: 9,200,000Vacancy Rate: 4.6%

Trenton, NJInventory SF: 40,800,000Under Construction SF: 486,000Vacancy Rate: 3.9%

Northern New JerseyInventory SF: 237,000,000Under Construction SF: 4,200,000Vacancy Rate: 4.1%

LOCAL INVENTORY

PENNRIDGE AIRPORT BUSINESS PARK



ACCESS AND INFRASTRUCTUREThe entire PA Turnpike/I-95 project consists of three stages. The majority of phase 1, which connects the PA Turnpike and Interstate 95, was completed last year, and other minor planned improvements are scheduled to be completed in early 2020. This $1.1 Billion Dollar project will reduce congestion throughout Bucks County as well as improve the flow of traffic in the Philadelphia region.

The project will ultimately have a positive effect on the markets overall attractiveness. Based on the Pennsylvania Turnpike Study conducted in 2000, this project will increase Bucks County’s competitive position compared to other Philadelphia suburban markets. In addition, potential office development could shift from elsewhere within the region to Bucks County.

NEW INTERCHANGE


According to the study, some of the notable benefits will be:

• 2,700 new jobs in Bucks County by 2025

• $375,000,000 in business sales in Bucks County by 2025

• $75,000,000 in personal income in Bucks County by 2025


PHILADELPHIA / BENSALEM TOWNSHIPPHILADELPHIAThe Philadelphia MSA is the eighth largest US metropolitan area and provides access to 115 million people or 35% of the total United States population within a one-day truck drive. The Southeastern Pennsylvania market continues to benefit from ongoing infrastructure investments and improvements. 2019 saw the construction of the PA Turnpike/I-95 Interchange come to a completion. The new interchange connects I-95 Northbound to I-276 Eastbound, and I-276 Westbound to I-95 Southbound. resulting in an unbroken I-95 running from Maine through Florida. Locally, the Southeastern Pennsylvania market now experiences enhanced connectivity to the NJ Turnpike and the New York City population.

BENSALEMWidely considered “The Gateway to Bucks County,” Bensalem is the largest municipality in Bucks County and is located less than 20 miles north of downtown Philadelphia. Founded in 1692, Bensalem’s 22 square mile township is bounded on three sides by waterways: the Delaware River, Neshaminy Creek, and Poquessing Creek. The township houses many communities including Bridgewater, Cornwells Heights, Eddington, Flushing, Oakford, Siles, Trappe, and Trevose. Home to over 30 parks, a Fortune 1000 company, local shopping, and easy access to highways & regional rail lines, it’s understandable why

over 57,000 residents call Bensalem home. Intersected by four major transportation arteries, over 250,000 people pass through the township daily. The unemployment rate sits at just below 4.0%, consistent with the national average and job growth over the next 10 years is projected to be at 38.59%. According to the US Census – 2013-2017 American Community Survey, the estimated median household income in this area is $61,025, just $912 less than the 2018 national average (US Census – 2018 American Community Survey).

Bensalem Township is situated just 30 miles from one-sixth of the United States Population, and one-third of the United States population is within a one day’s drive. Conveniently located just northeast of Philadelphia, I-95, the Pennsylvania Turnpike, Route 1, and multiple regional rail lines run through Bensalem allowing residents fast and easy access to all major cities along the east coast including New York City, Baltimore, Boston and Washington DC. Additionally, The Philadelphia International Airport (PHL) is located approximately 25 miles from Bensalem allowing easy air travel throughout the United States and internationally. Bordered by the Delaware River, the township has over four miles of river frontage offering access to most large vessels transporting raw materials. The 19020 ZIP code, which contains most of the township’s population, is home to 2,235 businesses that employ 30,009 workers.


PROCESS & PROCEDURE

SUMMARY OF OFFER PROCESSBinswanger of Pennsylvania, Inc. (“Binswanger”) is advising Ownership regarding the disposition of the properties located at Oakford Road and Moosewood Avenue in Bensalem.

This Property will be sold “as is, where is.” Ownership will consider all offers that comply with this Offering Memorandum. Ownership is under no obligation to accept the highest offer or any offer. To qualify for review of this offer, buyers must follow the provisions, requirements, terms, and conditions of this Offering Memorandum.

TERMS AND CONDITIONSNo asking price has been established, however ownership reserves the sole and absolute right to accept or reject any and all offers. The successful offer will be selected based on a variety of criteria including, but not limited to: the offer price, contingencies and due diligence criteria, timeline to closing, deposit funds (including “at risk” deposit at contract execution), proven ability, and prior successes in closing on a transaction of this site.



OFFERING PROCEDURE

All submissions must be in electronic form submitted to [email protected] & [email protected]. Offers should be submitted in the form of a non-binding letter of intent and should specify the following:

• Offering Price

• Study Period (if any)

• Earnest Money Deposit

• Contingencies (if any)

• References

• Documentation of previously completed transactions

• Sources of Funds (Equity and Debt)

• Consents and/or approvals needed (if any)

• Any other information having a direct bearing on the buyer’s ability to close the proposed transaction

Property inspections will be made by appointment only and arranged through Binswanger.


IF YOU HAVE ANY QUESTIONS PLEASE FEEL FREE TO REACH OUT TO US

215.448.6000

THANK YOU

International Real Estate2 Logan Square, Philadelphia, PA 19103binswanger.com RMA 04/20

Chris Pennington Partner and Senior Vice President 215-448-6053 [email protected]

Jason Ostach Vice President [email protected]

Documents

OFFERING MEMORANDUM...Feb 20, 2018 · 4 | Industrial Zoned Land, Bensalem, PA Binswanger is pleased to offer to qualified buyers this unique development opportunity located in Bensalem,