A MULTIFAMILY INVESTMENT OPPORTUNITY PRESENTED BY

A MULTIFAMILY INVESTMENT OPPORTUNITY PRESENTED BY

HARRISON GRANDE

HARRISON GRANDECARY, NORTH CAROLINA

HARRISON GRANDECARY, NORTH CAROLINA

HARRISON GRANDE

HARRISON GRANDECARY, NORTH CAROLINA

HARRISON GRANDECARY, NORTH CAROLINA

1995 Value-Add Opportunity

40

Maynard RdMaynard Rd

Harrison Ave

Harrison Ave

Chapel Hill Rd

Chapel Hill Rd

Evans R

d

Evans R

d54

540

NW Cary PkwyNW Cary Pkwy

1

4

3

2

1314

15

5

6

7

9

8

11

10

12

Medfield Estates$250-500k Residential

Weston$350-500k Residential

PrestonwoodCountry Club$300k-$2.4m+

Residential

Downtown Raleigh› 40,000 employees› 10 minute drive time

SAS Institute› 5,180 employees› Expanding campus by 450k SF

MetLife› 1,200 new employees› Average salary $112k

Park West Village› 750,000 SF new lifesyle center

Cary Towne Center› 10 minute drive time

Research Triangle Park› 45,000 employees› 170 companies

16

1. Weston Business Park › 1.4M SF Office, Verizon Wireless, Oxford University Press, John Deere, Austin Quality Foods (Keebler)

2. Park West Village › 750k SF Retail, Firebird’s, Zoe’s Kitchen, Target, TJ Maxx, Buy Buy Baby, Gander Mtn., Pier1 Imports

3. Harrison Pointe Shopping Center › Harris Teeter, Staples, Restaurants

4. Northwoods Shopping Center › Walmart Neighborhood Market

5. Meridian at Harrison Pointe › 339 Multifamily Class AA Units in Lease Up

6. RDU International Airport7. West Cary Middle School8. Cary Academy (private)9. Lake Crabtree10. William B. Umstead

State Park › 5,439 acres

11. The Bristol at Park West Village › 260 Multifamily Class AA Units in Lease Up

12. Brier Creek Submarket13. Umstead Hotel & Spa

› Only Five-Star Hotel in North Carolina

14. Arboretum Shopping Center › 123k SF Retail, Ruth’s Chris, Carolina Café, Starbucks, Bonefish Grill

15. Reedy Creek Middle School16. Godbold Park &

Black Creek Greenway › 7.1 miles of trails › 35 acre park

HARRISON GRANDE

N

Multifamily Investment Opportunity / Harrison GrandeOffering Highlights › Top Tier Cary Demographics – Located in one of the Southeast’s most affluent cities.

› Superior Connectivity – within 25 minutes of 90% of the Triangle’s (Chapell Hill, Durham, Raleigh) jobs and minutes from blockbuster MetLife and SAS expansions.

› “Live-Work-Play” Influencers Reshaping North Cary – Driving New Demand for Modern Finishes

› Robust Organic Rent Growth – Recent leases 3.8% higher than 2013 averages.

› Rebranding Achieves Rent Parity – Surrounding upgraded 1980’s & non-upgraded 1990’s properties have higher rents.

› Proven Value-Add Opportunity – 36 renovated units achieve at least $150 premiums. Rents of like-type renovated properties exceed Harrison Grande by $250-$300.

› Significant Lift in Rent Ceiling –New nearby AA properties rents provide rental cushion of $400-$700.

Property Summary300 Sudbury Dr | Cary, NC 27513Year Completed 1995 No. of Units 319 Rentable SF 400,127 Avg. SF per Unit 1,254 Avg. Effective Rent $874 Avg Effective Rent/SF $0.70No. of Floors 2 & 3 floorsCeiling Height 9-footLand Area (Acres) 35.71Density 8.93Occupancy 95%Parking Spaces 647Parking Ratio 2.03

Unit Mix and Effective Rent Summary

Unit Type No. of Units Unit Mix Unit SF Effective RentEffective Rent/

SF

1BR - 1BA 64 20% 861 $675 $0.781BR - 1BA 51 16% 931 $716 $0.771BR - 1BA 6 2% 865 $665 $0.772BR - 2BA 8 3% 1,109 $847 $0.762BR - 2BA 72 23% 1,264 $881 $0.702BR - 2BA 8 3% 1,317 $966 $0.732BR - 2BA 4 1% 1,317 $874 $0.663BR - 2BA 42 13% 1,430 $1,033 $0.723BR - 3BA 64 20% 1,822 $1,099 $0.60Total / Averages 319 100% 1,254 $874 $0.70*Based on 5/7/2014 Unit Statistics Report

JLL is pleased to present Harrison Grande (“Property”), Cary’s defining multifamily value-add opportunity. Harrison Grande is a 1995, institutionally-owned multifamily community with a stronghold Cary location at the intersection of NW Maynard and Harrison Avenue. The asset is differentiated from its peers by virtue of its unique angular floor plans, massive unit sizes, Black Creek Greenway access, extensive amenities, walkability to upscale retail & grocery, and dual visibility and entrances off Harrison Avenue and NW Maynard. With a City of Cary location, area demographics surrounding Harrison Grande are not only among the highest in Raleigh, but among the highest in the Southeast.

Harrison Grande is strategically centered between the Weston Business Park, new Park West Village lifestyle center, Cary Towne Center, and Arboretum at Weston – all which have played a substantive roll in reshaping and energizing this infill Cary corridor. These nearby catalysts have exerted tremendous influence in the area which has led to exponential growth that is not only attracting more residents to the area, causing ever-escalating rents, but attracting residents more desirous of premium unit finishes at premium rent levels.

As a result of these market dynamics, Harrison Grande has witnessed very strong year-over-year organic rent growth that the next owner can capitalize upon as these higher rents fully penetrate the rent roll. Equally, the Property has experimented with proven value-add upgrades having modernized 36 units which attain $150+ premiums. The next owner has the strategic advantage to either continue riding the rising tide of escalating rents as these dynamics influence market fundamentals, or, expand the proven value-add through the remainder of the Property. With lead-ing Cary schools and a walkable-enhanced location, this “investment optionality” makes Harrison Grande stand out as Cary’s leading acquisition target.

Multifamily Investment Opportunity / Harrison Grande

Institutionally-Owned, Multi-Faceted Opportunity in Sought-After Cary SubmarketWith a Class A pedigree and 9-foot ceilings, Harrison Grande’s future success lies in its strategic City of Cary location, one of the Southeast’s most afflu-ent suburbs, and access to the highly desirable Cary school system. Harrison Grande benefits from a location just south of the I-40 / Harrison Avenue exit in North Cary with drive-by visibility to over 30,000 cars per day. The Property is nestled between the macro influences of Downtown Raleigh to the east, and Research Triangle Park to the northwest.

The Property is currently positioned as the “value-luxury” choice amongst its mid-late 1990’s Cary peers. While it holds that unique market niche, given the dynamics of this re-energized corridor, Harrison Grande’s finishes stand “val-ue-add ready” in a market where like-type competitors are successfully execut-ing premium oriented upgrades. With a low density site plan, square footage that exceeds the market by 20%, Cary Greenway access, and unique amenities that include the sole remaining indoor pool in Raleigh, Harrison Grande is the quintessential value-add opportunity in Cary.

Key Area Influencers Reshaping North CaryFive years ago, North Cary was regarded as a quiet, well-healed, suburban enclave nestled between Cary Towne Center, Re-search Triangle Park, and Downtown Ra-leigh. The area has dramatically changed with the proliferation of massive “life-style centers” like Arboretum at Weston and Park West Village that introduced a hip, urban-style nightlife scene that has now expanded the live-work-play fabric of North Cary. “Game changers” like the new and expanding campuses of nearby MetLife and SAS Institute are catalyzing upper-scale housing and attracting high quality retailers that have infused renewed energy into this corridor. These key influ-encers have enabled Harrison Grande and it’s competitors to achieve dramatic rent increases attributable to these favorable market fundamentals, but also actualize successful value-add programs. The next owner of Harrison Grande will be able to further capitalize on this dynamically evolv-ing location by maintaining rent parity with its 1990’s peers.

Multifamily Investment Opportunity / Harrison GrandeOrganic Growth Momentum Drives YieldHarrison Grande presents a new owner with the opportunity to capitalize on the Property’s strong rent growth momen-tum. From 2011 to 2013, the Property experienced 10% growth in effective rents while maintaining 95% occupan-cy levels. Rent growth has accelerat-ed further with Harrison Grande now signing new leases that are higher than 2013 average rents by another 3.8%. A new owner can step into this organic rent growth momentum realizing over $123,000 in additional annual income and increasing yield by 33 basis points.

Harrison Grande Rents Lag 1990’s Unrenovated Peers Suggesting Rebrand and Reimage StrategyHarrison Grande’s rents are significantly below the rents of its unrenovated 1990’s peer group by $150-$200. This is largely explained as the visual appeal of Harrison Grande’s exterior façades, amenity areas, clubhouse furnishings and signage fall slightly behind these 1990’s competitors. Highlighting this con-cept even further, despite its 9-foot ceilings, 1995 construction, and distinctly larger floor plans and expansive amenity pack-age, Harrison Grande’s rents are generally not higher than 1980’s assets with 8 foot ceilings.

We believe this clear disconnect can be easily remedied with a strategy incorporating rebranding and reimaging of the Proper-ty that would properly elevate rents well above the 1980 assets, and recapture the rent gap of its 1990 contemporaries. Modest, yet thoughtful, exterior curb appeal improvements would help overcome some of these minor visual nuances and present the next owner with a relatively low risk option for increasing yield.

Effective Rent Growth

$650

$700

$750

$800

$850

$900

2011 Average 2012 Average 2013 Average Most Recent 30 Leases

$772

$814

$849

$881

10% Growth

3.8% Growth

Multifamily Investment Opportunity / Harrison Grande

Current Upgrade Harrison Grande – 36 Units

Rising Rent Ceiling Enables Market-Proven Interior Value-AddCary’s rent ceiling has been dramatically lift-ed with new high-end communities nearby like The Bristol, Meridian at Harrison, and Bradford. These new properties have su-per-luxury finish levels and state-of-the-art amenities that command rents $400-$700 higher than Harrison Grande and its 1990’s competitors. This new “super-luxury” market niche has now created a “value-luxury” niche that many Harrison Grande competitors have sought to fill. As a result, these 1990 competitors are implementing unit upgrades and amenity modernizations that yield rents $250-$300 higher than Harrison Grande yet fall well under the top-tier rental ceiling of these newer communities.

In 2009, the Property completed 36 unit up-grades that included new cherry cabinets, black appliances, faux granite countertops, and hardware and light fixtures throughout. While these upgrades were deemed relevant five years ago, they are considered “dated” by today’s standards, yet they still attain $150+ premiums. In fact, 30% of these units achieve $212 premiums over non-renovat-ed units. Notwithstanding the option of sim-ply riding the rising tide of increasing rents, even now more magnified by this heightened rent ceiling, the next owner has a vetted unit modernization program at both the Property and market level.

Current Harrison Grande

Multifamily Investment Opportunity / Harrison Grande

ResearchTriangle

Park

WILLIAM BUMSTEAD

STATE PARK

CARL ALWINSCHENCK

MEMORIALFOREST

ENO RIVERSTATE PARK

Horace WilliamsAirport

Raleigh-Durham

International

DurhamCollege

DukeUniv

NCCentral

Univ

Univ Of NC

NC StateUniv

North CarolinaState University

EnoRiver Crystal

Lake

HoganLake Eastwood

Lake

UniversityLake

ComanLake

LakeLynn

ReedyCreekLake

ReedyCreek

SymphonyLake

LochmereLake

Wake ForestReservoir

Falls Lake

Falls Lake

LittleBrierCreek Big

Lake

SycamoreLake

ShelleyLake

LakeJohnson

LakeRaleigh

Mac GregorDowns Lake

YatesMillpond

LakeWheeler

Haw River

B EverettJordanLake

B EverettJordanLake

RobertsonsCreek

B Everett JordanLake

AustinPondDeep River

LakeBenson

HarrisReservoir

BassLake

Manns

Cha

pel R

d

Hamlets Chapel Rd

Dee

Farre

ll Rd

Beaver Creek Rd

White Oak Rd

Sunset Lake Rd

New Hill Holleman Rd

Aven

t Ferr

y Rd

Avent Ferry Rd

Old

Sta

ge R

d

Old

Sta

ge R

d

Rock Service Station Rd

Cass

Holt

Rd

Corn

wallis

Rd

Barb

er M

ill Rd

Louisburg Rd

Hillsborough Rd

Durham

Chapel Hill Blvd

New Raleigh HwyFordham Blvd

Fordham Blvd

Colum

bia S

t

Capital

Blvd

Capi

tal B

lvd

Glenwood Av

North BlvdNew Bern Av

Dawso

n St

Saun

ders

StW

ilmin

gton

St

Faye

ttevil

le Rd

Durham Frwy

Durham

Frwy

Raleigh Chapel Hill Exwy

Gorman

Parkwood

ChapelHill

Carrboro

Morrisville

Cary

New Hope

Apex

Garner

Fearrington

Youngsville

WakeForest

Knightdale

Durham

Raleigh

DURH

AM C

O.

ORAN

GE C

O.

GRANVILLE CO.WAKE CO.

WAK

E CO

.

CHAT

HAM

CO.

FRANKLIN

70

501

751

157

98 98

98

42

96

96

55

54

751

751

147

751

70

70

86

64 64

1

1

1

15

1

70

70

401

401

401

401

70

70

70

64 64

50

50

50

50

55

50

55

54

54

54

55

540

15501

164

64264

1401

64

501BYP

501BYP

15501

15501

70BYP

85

85

40

40

40

40

40

440

440

440

540

440

J O H N S T O N

LEE

Franklinton

Clayton

HillsboroughMountain

View

Rolesville

HollySprings

Moncure

Fuquay-Varina

70B

85

Exclusively Presented By

JLL Americas, Inc.4201 Congress St., Suite 300Charlotte, North Carolina 28209

For More Information Please Contact:

Disclaimer Neither the Owner nor Jones Lang LaSalle nor any of their respective officers, agents or principals has made or will make any representations or warranties, expressed or implied as to the accuracy or completeness of the Flyer or any of the contents, and no legal commitment or obligation shall arise by reason of this Flyer or the Contents. By accepting or accessing information applicable to the Property, the user agrees that the owner of the Property, including its affiliates, agents (collectively, the “Owner”) or Jones Lang LaSalle accept no responsibility for errors or omissions in any such Property related information, whether now or hereafter obtained (collectively, the “Property Information”). The Property Information is subject to errors, omissions, changes and other conditions, withdrawal without notice, and to any special listing conditions now or hereafter imposed, and is not to be relied upon without Owner’s prior written permission. Owner accepts no, and expressly disclaims any, duty to update or revise the Property Information even if it becomes aware of an inaccuracy and/or omission.

Harrison Grande / 300 Sudbury Drive, Cary, NC 27513

Directions From Raleigh-Durham International Airport: Take I-40 East to exit 287 towards N Harrison Avenue. Continue on N Harrison Avenue towards Cary. Turn right onto Grande Heights Drive, then left onto Sudbury Drive. The Property’s clubhouse will be on your left.

Join us on Twitter and visit us atwww.jll-bloomgutting.com

Andrea Howard David GuttingSenior Vice President 704.756.7485 andrea.howard@am.jll.com

Managing Director 404.995.2283 david.gutting@am.jll.com

Marshall Farrell Derrick BloomAnalyst 704.804.5791 marshall.farrell@am.jll.com

Managing Director 404.995.2287 derrick.bloom@am.jll.com

HARRISON GRANDE