West Palm Small Bay Industrial Portfolio

The West Palm Small Bay Advantage

Reliable Cash Flows The Portfolio provides a predictable and stable income stream with an average of 4-years remaining lease term and no tenant comprising more than 5% of the total rentable area. Current ownership has successfully been able to organically grow rental income by over 35% across the three Properties while selectively gentrifying the rent roll and removing “undesirable” tenants. Through continuing to build upon current ownerships efforts and/ or repositioning specific buildings within the Portfolio, additional value creation can be achieved. Upside Potential Evenwith the recent growthof rental rates, the in-place rents across the Portfolio are still approximately $2 PSF below market. Through making minor capital improvements, new ownership will be positioned to justify rental rate increase and continue to grow net operating income. Combined with the leverage of owning multiple industrial properties in a constrained submarket, the Portfolio should be viewed as an exceedingly rare, value-add opportunity.

Location South Florida is one of the top three land-constrained industrial markets in the U.S., along with Southern California and Northern New Jersey. In fact, South Florida has the lowest ratio of industrial SF per capita (62 SF) of all industrial markets. Additionally, estimates have South Florida adding the lowest amount of industrial product per capita (33 SF) over the next five years. The Portfolio possesses true in-fill locations within the most desirable industrial submarkets in South Florida: West Palm Beach and Riviera Beach, each of which is heavily sought after by tenants and investors alike. Furthermore, each Property is proximate to Interstate 95, the main north/south artery of the Eastern United States. Velocity The Palm Beach County Industrial market is one of the tightest andmost fundamentally sound in the entire country, with an overall vacancy rate of 4.2%. The offering is entirely comprised of small bay warehousing space, which has an overall vacancy rate 4.0% across Palm Beach County. With over 677,000 sf leasing activity in 2016 alone, demand for industrial space in Palm Beach County is extremely robust.

// 8