North Pointe B-HFF-113940

Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained as the exclusive sales representative for North Pointe B – a 247,000 square foot, state-of-the-art distribution facility located in the rapidly growing Charleston, South Carolina market. The Class A+ warehouse and regional headquarters facility is 100% leased to Expeditors International of Washington, Inc. (NASDAQ: EXPD) and features 6 years of remaining lease term with 2.4% annual rent escalations. Expeditors is one of the world’s largest and strongest global logistics companies with a $15.6 billion market cap, $8.2 billion in revenues (FY’19) and a robust balance sheet with an investment grade equivalent S&P: “BBB+” credit rating (shadow rated).

From this strategic, port-proximate location the company services its logistics clients such as Walmart, Boeing, Gap, Ingersoll Rand, Baby Fair Imports and numerous automotive suppliers associated with the Charleston-based Daimler and Volvo facilities. Expeditors has been growing steadily within the Charleston market since June of 1995. Their recent investment into the North Pointe B facility acts as an expansion and consolidation of various locations into one mission-critical regional headquarters and distribution facility.

INVESTMENT GRADE EQUIVALENT TENANCY

100% leased to Expeditors with 6 years of remaining lease term and 2.4% annual escalations

•NASDAQ-100 company publicly-traded under ticker “EXPD”

•$15.6 billion market cap

•$8.2 billion revenues (FY’19), 18.1% growth since 2017

•9.1x EBITDAR Coverage Ratio

•Shadow rated S&P: BBB+ investment grade equivalent credit rating

MISSION-CRITICAL FACILITY WITH INGRAINED OPERATIONS

This location houses Expeditors’ port operations serving its large Charleston customers such as Walmart, Boeing, Gap, Ingersoll Rand, Baby Fair Imports and numerous Daimler and Volvo automotive suppliers. As a part of the company’s long-term growth strategy, Expeditors simultaneously expanded and consolidated its various locations in the market into North Pointe B. Expeditors has operated in the Charleston market since June of 1995 and remains embedded at this strategic location as the #1 Filer in Charleston, processing the most customs entries through the Port of Charleston.

IRREPLACEABLE INFILL LOCATION

•Strategically positioned in close proximity to the Port of Charleston’s North Charleston Terminal (5.4 miles), I-526 (4.5 miles), the new Leatherman Terminal (10.5 miles) and Wando Welch terminal (14.3 miles)

•Superior regional accessibility via I-526 provides North Pointe B with direct access to the Charleston International Airport (CHS), SPAWAR defense installation and the Joint Base, large regional manufacturers and I-26 – one of South Carolina’s main distribution arteries and main linkage to I-95 to the west

•The lack of developable sites in the submarket continues to bolster North Pointe’s position in the Charleston market and provides landlords with an irreplaceable supply-constrained industrial location.

HIGHLY FUNCTIONAL, VERSATILE BUILDING DESIGN

•Institutional-quality, LEED certified design features 32’ clear, ESFR and a 45mil TPO roof with 15-year warranty (13 years remaining)

•Multiple store fronts offer flexible future leasing configurations

•Ample trailer storage area (0.22/1,000 SF) and healthy existing parking (0.76/1,000 SF) with the ability to expand employee parking area by 194 spaces (1.55/1.000 SF)

VALUABLE TAX INCENTIVES

North Pointe B has been granted a 30-year Fee in Lieu of Tax (FILOT) for the site (28 years remaining), which reduces the property’s taxes by a cumulative total of approximately $5 million over the life of the incentive. The issuance of new FILOT incentive agreements have been curtailed, creating substantial operational advantages in this facility that cannot be duplicated elsewhere in the market

TIGHT CHARLESTON MARKET EXPERIENCING STRONG GROWTH

Increased port capabilities, acceleration in e-commerce adoption and an average population growth of 30 new residents to the Charleston MSA per day (current population 802,122; expected to be over 1M in ten years) have led to increased demand in the Charleston industrial market. Moreover, the consolidation of the Boeing 787 Dreamliner production to Charleston and the addition of a second car production line at the Volvo plant increases demand for aerospace and automobile-related manufacturers and distribution users.