NOVANT HEALTHKERNERSVILLE, NC

SUBJECT PROPERTY

NOVANT HEALTH

5.75%CAP

1471 JAG BRANCH BOULEVARD, KERNERSVILLE, NC 27284

Brand new construction trophy asset

New 10-year NN lease

Situated in Smith Crossing, a brand new mixed-use development

with plans to feature 376 upscale apartments

Average household incomes exceed $83k in a 1-mile radius

Centrally located in the Piedmont Triad

Novant Health is the largest employer in Forsyth CountyThis information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

LEASABLE SF11,668 SF

LEASE EXPIRATION9/26/2027

LEASE TYPENN

LAND AREA1.04 AC

PRICE PSF$415.13

YEAR BUILT2017

$4,843,743PRICE

*PRICE IS BASED ON RENT INCREASE IN YEAR TWO IN SEPTEMBER 2018

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Overview

THE OFFERING is a brand new construction, trophy Novant Health single-tenant building in Kernersville, North Carolina, in the heart of North Carolina’s exploding Triad Region. The subject property is on a new 10-year NN lease, featuring 2% annual rent increases with the landlord responsible for roof, structure, and repair of parking lot. Due to the high growth in the market, Novant Health instructed the developer to build them a facility at this location. The specializations in this facility include a Pediatric suite, a Family Practice suite, as well as a Neurology suite specializing in Chronic Headache. The company is the largest healthcare system in both North and South Carolina, with over 14 medical centers, 500 physician clinic locations, and more than 1,500 physicians. According to Winston-Salem Business Inc., Novant Health is the largest employer in Forsyth County.

The subject property, located just off I-40, is part of Smith Crossing: an under-construction, mixed-use development that will feature 376 upscale apartments, along with a Dairy Queen, AAA Climate Controlled Storage, and five additional parcels available for commercial development. The subject property is also in close proximity to a new state-of-the-art VA hospital, recently developed after moving from their previous Winston-Salem location.

JOE CACCAMOjcaccamo@capitalpacific.comPH: (415) 274-7394CA BRE# 01191110

Contact the team

NOVANT HEALTH HAS OVER 500 CLINIC LOCATIONS IN FOUR U.S. STATES

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

IN CONJUNCTION WITH NC LICENSED BROKER: Stuart MullenCommercial Real Estate Carolina, LLCstuart@rangeds.com(704) 661-9800

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Investment Highlights

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BUSINESS SUMMARY

KEY 1-MILE 3-MILES 5-MILES

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 56 812 2,045

Employees 442 9,712 24,555

Residential Population 4,008 28,985 64,089

THE SUBJECT PROPERTY is located in Kernersville, a town centrally located minutes from all three cities in the Piedmont Triad: Greensboro, Winston-Salem, and High Point. Well known in the south, the Triad has over 1.6 million residents and boasts nationally-recognized museums, restaurants, and theaters, and is also home to numerous universities, including Wake Forrest, University of North Carolina – Greensboro, University of North Carolina School of the Arts, and North Carolina Agricultural and Technical University.

Poised for tremendous growth, the town of Kernersville has strategically invested in sewer and transportation improvements in response to development demands. Caleb’s Creek is an under-construction multi-use development located just one mile from the subject property, with plans for approximately 2,333 units on a 937 acre development. Welden Village and Beeson Oaks are additional residential neighborhoods that will provide over 1,700 additional residential units to the area.

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Retail Market

KERNERSVILLE

ROAD

S MAIN

STREET

N MAIN

STREET

UNION C

ROSS ROAD

40

40

40

421

421421

66

66

66

KERNERSVILLE VA MEDICAL

CENTER NOVANT HEALTH

KERNERSVILLE MEDICAL CENTER

RB GLENN HIGH

SCHOOL

SOUTHEAST MIDDLE SCHOOL

CALEB’S CREEK

ELEMENTARY

BISHOP MCGUINESS CATHOLIC

HIGH SCHOOL

KERNERSVILLE ELEMENTARY

FOREST TRAIL

ACADEMY

JAG B

RANCH

BOULEVA

RD

GREENSBORO23 MINS

30,000 VPD

16,000VPD

56,000 VPD

22,000VPD

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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SUBJECT PROPERTY

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Aerial

UNION CROSS ROAD

40

66

SMITH CROSSINGThe Reserve at Smith Crossing is an under construction residential community situated on an 84-acre mixed-use development. Located along Union Cross Road, the Reserve will feature376upscaleapartments,offeringa resort-style community including a pool, grilling area, outdoor lounge, private movie theater,fitnesscenter,andpetpark.Formoreinformation, click HERE.

WELDEN VILLAGEWelden Village is located on 385 acres and will be made up of three neighborhoods: Welden Center, Westridge, and Parkway District. Each neighborhood is designed to promote a healthy outdoor lifestyle, connected via a network of walkable streets, sidewalks, and pathways. It is planned to include approximately 1,700 residential units. For more information, click HERE.

BEESON OAKS DEVELOPMENTBeeson Oaks is a new development site featuring 49 approved one-level brick twin townhomes that start at $227,900. Each townhome features 3 bedrooms, 2 baths, 2 car garages, and a sun room. Each townhome is made with high quality construction and appliances. For more information, click HERE.

Submarket Overview

CALEB’S CREEKCaleb’s Creek is a newly approved 937-acre mixed-use development, that will include both residential and commercial properties. The development is planned for approximately 2,333 units, that will include a mixture of single-family homes, multi-family homes, maintenance-free homes, and a retirement community. For more information, click HERE.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

SUBJECT PROPERTY

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SLATED FOR BIG BOX RETAILBIG BOXRETAIL(PUB-LIX)

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65 SINGLE FAMILY

HOMES PLANNED

NEWDAIRY QUEEN GRILL AND CHILL

AVAILABLEUPSCALE

APARTMENTS

ROAD UNDER CONSTRUCTION

OWNED BY QUALITY OIL

NOT BUILT

LOT 933,347 SF

LOT 167,044 SF

LOT 265,304 SF

LOT 376,204 SF

LOT 453,324 SF

LOT 551,912 SF

40

40

UNION C

ROSS R

OAD

JAG B

RANCH

BOULEVA

RD

54,000 VPD

JAG BRANCH BOULEVARD

SOLO

MA

N D

RIV

E

SMITH

CR

OSSIN

G D

RIV

E

Surrounding Aspects

7This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

LAND OWNED BY CRACKER BARREL

NOT BUILT

EXISTINGAPARTMENTS

SLATED FOR BIG BOX RETAIL

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Subject Property

PRICE $4,843,743 Price Per Square Foot: $415.13

Capitalization Rate: 5.75%

Total Rentable Area (SF): 11,668

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $23.97 $279,682

Effective Gross Income $23.97 $279,682

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Structural Reserve ($0.10) ($1,166.80)

Total Operating Expenses ($0.10) ($1,166.80)

EQUALS NET OPERATING INCOME $278,515

*Price is based on rent increase in Year Two in September 2018

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9

Income & Expense

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLYRENT

MONTHLY RENT/FT

YEARLYRENT/FT

Novant Medical Group, Inc(DBA Novant Health Medical Group)

11,668 09/27/17 09/26/18 $274,198 $22,850 $274,198 $1.96 $23.50

09/27/18 09/26/19 $23,307 $279,682 $2.00 $23.97

09/27/19 09/26/20 $23,773 $285,276 $2.04 $24.45

09/27/20 09/26/21 $24,248 $290,981 $2.08 $24.94

09/27/21 09/26/22 $24,733 $296,801 $2.12 $25.44

09/27/22 09/26/23 $25,228 $302,737 $2.16 $25.95

09/27/23 09/26/24 $25,733 $308,792 $2.21 $26.46

09/27/24 09/26/25 $26,247 $314,967 $2.25 $26.99

09/27/25 09/26/26 $26,772 $321,267 $2.29 $27.53

09/27/26 09/26/27 $27,308 $327,692 $2.34 $28.08

TOTALS: 11,668 $274,198 $22,850 $274,198 $1.96 $23.50

* Price is based on rent increase in Year Two in September 2018

**At the end of the term, rent increases to 125% of last rent in effect unless a new lease is signed.

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Rent Roll

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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Site PlanJA

G B

RA

NC

H B

OU

LEVAR

DSOLOMAN DRIVE

SMITH CROSSING DRIVE

55SPACES

11,686RENTABLE SF

1.04ACRES

AAA CLIMATECONTROLLED STORAGE

Triad’s First Amazon Fulfillment Center?

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

FIVE REASONS THIS COULD BE THE TRIAD’S FIRST AMAZON FULFILLMENT CENTER Triad Business Journal | May 29, 2018 Written by John Brasier

On Tuesday afternoon, Triad Business Journal broke the story that Seefried Construction and Development of Atlanta had submitted plans to the city of Kernersville to build a 1,016,041 square foot ware-house at Triad Business Park with business park owner Samet Corp. serving as the general contractor.

Jeff Hatling, community development director for Kernersville, said he did not know the identity of any prospective tenant. But there are rea-sons to believe that the building could be a future Amazon distribution center. First, the size of the building is almost identical to the several Amazon buildings developed by Seefried.

Second, the Triad notably lacks a sizable Amazon distribution hub de-spite its reputation as a logistics center. Third, the Triad is big enough to have a fulfillment facility. The Greensboro-Winston-Salem-High Point combined statistical area ranked No. 33 in the U.S. in 2017 census es-timates. The Greensboro-High Point MSA was ranked No. 2 for new and expanded corporate facilities in 2017 by Site Selection magazine among markets between 200,000 and 1 million in population.

Fourth, the plans submitted to the Kernersville included the designa-tion “GSO1.” According to one local source in the logistics industry and familiar with Amazon’s distribution network, Amazon typically labels fulfillment centers according to market and/or airport and the number of buildings it has in the particular market. Fifth, the tract of land for the planned fulfillment center is a stone’s throw from a FedEx Ground hub.

VIEW FULL ARTICLE

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PHYSICIAN CLINIC LOCATIONS IN GEORGIA, NORTH CAROLINA,SOUTH CAROLINA, AND VIRGINIA 500+

Novant Health is a not-for-profit integrated system of over 14 medical centers, 500 physician clinic locations, and more than 1,500 physicians. There are numerous outpatient surgery centers, medical plazas, rehabilitation programs, diagnostic imaging centers, and community health outreach programs. The medical facilities employ more than 26,000 team members and are found in four U.S. states: Georgia, North Carolina, South Carolina, and Virginia. Each clinic offers a variety of services including pediatrics, emergency, orthopedics, surgery, women’s health, cancer, heart and vascular, and more. In 2016, Novant Health reported a net income of $412.8 million on operating revenue of $4.34 billion. The not-for-profit health system also reported a community benefit of $725.5 million, including $122 million in financial assistance.

ABOUT NOVANT HEALTH

In 2016, Novant Health had the following:

•4,739,636PHYSICIANENCOUNTERS•538,911EMERGENCYDEPARTMENTVISITS•133,952SURGERIES•20,002BIRTHS•122,662INPATIENTDISCHARGES

COMPANY INFORMATION

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13

Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 3,681 26,611 59,413

2017 4,008 28,985 64,089

2022 4,265 30,606 67,408

2017 HH INCOME

1-MILE 3-MILES 5-MILES

Average $83,857 $74,501 $69,633

Median $93,431 $83,498 $78,502

TOP EMPLOYERS IN FORSYTH COUNTY

EMPLOYER # OF EMPLOYEES

Novant Health 13,673

Wake Forest University BaptistMedical Center 12,563

Winston-Salem/Forsyth County Schools 7,000

BB&T 4,050

Wells Fargo Bank 3,700

KERNERSVILLE

WINSTON- SALEM (10MILES)

THE AVERAGE HOUSEHOLD INCOMEWITHINA1-MILERADIUS

IS OVER $83K

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

GREENSBORO(18MILES)

HIGH POINT(14MILES)

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Demographics

KERNERSVILLE, NORTH CAROLINA

KERNERSVILLE is a town in Forsyth County, North Carolina. The town is located in the northern part of North Carolina and can be accessed by US Route 421. Kernersville is located at the center of the Piedmont Triad metropolitan area and offers a small town atmosphere without compromising the amenities and opportunities of being near a metro area.

Through efforts to improve the town in the past few years, some of the rural farmland surrounding the town has been sold and turned into large middle-to-upper-class housing developments, and numerous large shopping centers have been built.

WINSTON-SALEM

The Piedmont Triad of North Carolina consists of Greensboro, Winston-Salem, and High Point and has a population of over 1.6 million residents. The opening of the

Piedmont Triad International Airport created a building boom along the Interstate 40 corridor, which led to two major research parks, an increase in jobs, and respected higher education. The region has an excellent transportation infrastructure and booming textile, furniture and tobacco industries. These thriving industries have

spawned the growth of new industries including distribution, biotechnology, health care, logistics, and transportation-related manufacturing.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PIEDMONTTRIAD

1,600,000+

PIEDMONT TRIAD POPULATION (ESTIMATED)

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Location Overview

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JOE CACCAMOjcaccamo@capitalpacific.comPH: 415.274.7394CA BRE# 01191110

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