OFFERING MEMORANDUM
GREG WILSON SIOR, CCIM | Executive Vice President CBRE | Triad Region 101 CentrePort Drive, Suite 160 Greensboro, NC 27409 T 336 331 9399 | F 336 773 1098 greg.wilson@cbre.com
DODSON SCHENCK CCIM, SIOR | Managing Director CBRE | Triad Region 101 CentrePort Drive, Suite 160 Greensboro, NC 27409 T 336 478 0234 | F 336 373 0603 dodson.schenck@cbre.com
PATRICK GILDEA CBRE | Capital Markets | Investment Properties 201 South College Street, Suite 1700 Charlotte, NC 28244 T 704 331 1217 | F 704 331 1259 patrick.gildea@cbre.com
TABLE OF CONTENTS Section 01 Investment Summary........................................1 Section 02 Downtown Winston-Salem............................. 17 Section 03 Property Overview........................................29 Section 04 Triad Economy..............................................49
01
INVESTMENT SUMMARY
1
Introduction & Overview
CBRE, on behalf of R.J. Reynolds Company, the owner, is pleased to exclusively offer the opportunity to purchase the iconic R.J. Reynolds Building (the “Property” or “Building”) located at 51 E. Fourth Street in the heart of Winston-Salem, North Carolina. A unique Art Deco architectural gem, the 275,408 square foot R.J. Reynolds Building was completed in April, 1929, during which time Art Deco’s cool, sophisticated style was gaining immense popularity. R.J. Reynolds Tobacco Company engaged the New York architectural firm of Shreve and Lamb to design the building. Soon after finishing the R.J. Reynolds Building, Shreve and Lamb went on to design the similar Empire State Building in New York.
• National Association of Architects Building or the Year – 1929 • Art Deco Society: Best Art Deco Building Restoration – 1983 • American Institute of Architects Honor Award – 1984
The R.J. Reynolds Building offers a once-in-a-lifetime opportunity for creative investors and developers to utilize historic tax credits to redevelop a truly iconic building. According to the N.C. General Statutes, there is an overall 30 percent state tax credit for rehabilitating income-producing historic structures in Forsyth County. A 20 percent federal investment tax credit is also available. The certification process has already begun for getting the building listed on the National Register of Historic Places. The Property lends itself to being transformed into a mixed-use project with retail on the ground floor and an undefined mixture of office, residential, and hoteling uses on the upper floors. Any project should take into account not only the practical usage of the building, but also its historical significance to the community and the role it might play in the continued growth and renaissance of downtown Winston-Salem. Repurposing of the R.J. Reynolds Building will benefit from renovations taking place at the nearby Pepper Building, Mast General Store retail presence, and the larger Civic Plaza project. The Building is positioned on a 0.59 acre parcel at the corner of Main and Fourth Streets, in Winston-Salem’s CBD. Close by is Piedmont Triad Research Park, which is making progress in redeveloping the former tobacco district into a future job center with high tech jobs and supporting services and a growing residential component.
2 Investment Summary
When it opened in 1929, the R.J. Reynolds Building was a landmark of the industrial South and was the tallest building at that time from Baltimore to Miami. The R.J. Reynolds Building has received many awards, including:
3
The asset is in place; the market has retuned; the vision is needed!
Investment Highlights • Unique opportunity to “own” a piece of history – the R.J. Reynolds Building was the model for the internationally acclaimed Empire State Building
• State and federal tax credits available to help a developer reposition the asset • Opportunity to reposition the Building as an office building or redevelop the asset for a residential or hotel use
• Offered well below replacement cost
4
Asset Facts & Highlights of Art Deco design and detail.
• It was the tallest office building south of Baltimore when completed in 1929. Without the flagpole, it was the tallest office building between Baltimore and Birmingham.
• It succeeded the Nissen Building in 1929 as the tallest building in North Carolina, a rank it held until 1965 when it was surpassed by Winston Tower.
• The official opening was on Saturday, April 27, 1929. • The chief cladding material is Indiana limestone, while the lobby features marble finishes and metal detail. • The top of the Building is lit at night, and is one of the most distinctive features of the city's skyline. • The R.J. Reynolds Building has been seen as an icon of corporate power and prosperity unequaled in the South, and is still often regarded as a symbol of Winston-Salem.
• R.J. Reynolds Tobacco occupied the Building from inception until 2009. Former business units in the Building were: executive, brand marketing, legal and human resources operations.
• The Building was constructed atop the site formally occupied by the Winston-Salem Municipal Building. • The R.J. Reynolds Building has been under one ownership since it was built. • There really are no other truly comparable buildings in this market.
Investment Summary
• The Building is one of the most architecturally significant buildings in the Carolinas, a masterpiece
5
Market Highlights • With 1.6 million people residing in the area, the Greensboro-Winston-Salem-High Point CSA, also known as the Triad, is the second largest combined statistical area located entirely in North Carolina.
• The Triad serves as the headquarters for four Fortune 500 firms: Reynolds American, VF Corporation, BB&T and HanesBrands.
• The Triad benefits from its strategic location along the I-85 corridor, halfway between Atlanta and Washington, DC.
• The Triad maintains one of the lowest costs of living in the United States. • The region offers direct access to five interstates: I-40, I-85, I-73, I-74 and I-77. • Significant employers in the region include: American Express, AT&T, BB&T, B/E Aerospace, Caterpillar,
Cone Health System, FedEx Corporation, HanesBrands, Honda Aero, Kay Chemical, LabCorp, Lorillard Tobacco, Novant Health, Ralph Lauren, Reynolds American, RF Micro Devices, UNC-Greensboro, VF Corporation, Volvo Trucks, Wake Forest University, and Wells Fargo.
Investment Summary
6
7
Opportunity to Reposition the Asset as
A MODERN CLASS “A” OFFICE BUILDING
Through modernizing the asset an investor could reposition the R.J. Reynolds Building as a class “A” office building. While the Building features limestone and marble finishes, with extremely ornate carved wood ceilings indicative of a class “A” office environment, the building systems need to be modernized to capture top of the market rents. Upon completing the renovation and stabilizing the R.J. Reynolds Building, significant upside will be achieved through employing a repositioning strategy. Considering the low cost of living in the Triad market (10% below the national average), the iconic nature of the Building, and state and local tax incentives, it’s entirely plausible that the Building could attract a company to relocate their headquarters. There are currently only three buildings in the Triad market with over 100,000 square feet available for lease. These
buildings include the Carolina Corporate Center, the Wendover Funding Building and the Clayton Homes Building, none of which are comparable to the R.J. Reynolds Building; therefore, should a large corporate tenant enter the market seeking quality office space in a visible location, the Property would compete favorably for these tenants. With over 4.5 million square feet of multi-tenant office space, the Winston-Salem CBD is the largest office submarket in the Triad. As of year-end 2012, the submarket reported the highest occupancy rate in the Triad. Considering the submarket is 92.9% occupied, converting the Building for multi-tenant use would likely result in success, as the Building would compete favorably for existing Triad tenants as well as companies moving to the region.
Investment Summary
8
9
Opportunity to Redevelop the Asset as
A RESIDENTIAL BUILDING
While downtown Winston-Salem features an enviable amenity base, the area contains only 3.6% of the rentable multifamily units in the Triad market. Currently there are only 2,131 rental units in the Forsyth County Central submarket. This is the largest office submarket in the Triad and, therefore, the area has sufficient demand for rental units as evidenced by the market’s leading occupancy rate of 94.8%. Furthermore, the submarket achieves the second highest rents in the Triad - $0.782 per square foot per month. Within downtown WinstonSalem there are more than 75 galleries and shops, nearly 100 restaurants and bars, and numerous other services and entertainment venues. Proximity to employment and amenities are the driver for multifamily occupancies; therefore, it’s anticipated that a redevelopment of the R.J. Reynolds Building to residential use would be well received by the market. The number of people living in downtown WinstonSalem has increased by 36.9% over the past ten years. It’s clear that residential developers have taken advantage of the renaissance of downtown Winston-Salem. A visionary developer could take advantage of this trend through renovating the R.J. Reynolds Building. While the condominium market is currently sluggish due to the national economy, the Building could be redeveloped as luxury apartments and eventually converted to condominiums when the market rebounds. Through renovating the Building at today’s development costs, upside can be achieved when the units are converted to condominiums and sold when market conditions are more bullish and development costs are higher.
Investment Summary
10
11
Opportunity to Redevelop the Asset as
A HOTEL
After conducting a preliminary analysis of the Winston-Salem hotel market, the concept of converting the R.J. Reynolds Building into an upscale, full-service hotel is feasible. The 22-story iconic Building represents an ideal adaptive re-use of an office tower into a lodging/hospitality use. Currently, downtown Winston-Salem is serviced by two upscale hotels, the Marriott Winston-Salem and the Embassy Suites Winston-Salem; otherwise, there are few options for fine lodging in the immediate area. These two hotels total 461 rooms, feature meeting rooms, a restaurant/ lounge, and other amenities common within the upscale sector of the hotel industry. While the Marriott and Embassy Suites represent the most direct competition for the conversion of the R.J. Reynolds Building to a hotel, other full service hotels in the Triad market include the Marriott Greensboro, Doubletree Greensboro, Embassy Suites Greensboro, and the Marriott Greensboro-High Point Airport. These properties comprise the competitive set for the analysis of upscale hotels in the Triad market.
12 Investment Summary
Considering the significant concentration of office space and entertainment venues in downtown Winston-Salem, it’s anticipated that an upscale hotel would be well received. Furthermore, the Mezzanine level of the R.J. Reynolds complex would be ideally suited to house retailers which service both the hotel and employees of R.J. Reynolds who office in the Plaza Building. Other factors which could lead to the R.J. Reynolds Building becoming a successful upscale, business-focused hotel include the central location within the CBD, multiple floors that could be dedicated to meeting space, visibility in the Winston-Salem skyline, and the classic Art Deco architecture and historic nature of the building.
13
Revenue per available room (RevPAR) is a commonly used index to measure the performance of a lodging market. RevPAR is the product of occupancy and average daily rate. For the first three months of 2013, the Greensboro / Winston-Salem lodging market experienced stronger RevPAR growth than both the Raleigh / Durham and Charlotte lodging markets. For this time period, the Greensboro / Winston-Salem lodging market reported RevPAR growth of 5.5 percent compared to the first three months of 2012. The Raleigh / Durham and Charlotte lodging markets reported RevPAR growth of 2.1 percent and 3.9 percent for the same time period, respectively. Comparatively, the national lodging market reported RevPAR growth of 6.4 percent. In addition to RevPAR growth, the location and conversion opportunities would attract local, regional and national hoteliers. Several demand generators provide room night demand to the Downtown submarket of Winston-Salem. They include Innovation Quarter ($350 million in new investment over last four years), Reynolds American world headquarters, BB&T world headquarters, IMG College Headquarters, and Wake Forest University Medical Center (2.3 miles to the west), all of which are located in proximity to the R.J. Reynolds Building. It is also important to note that the newest hotel constructed in Downtown Winston-Salem is the 112-unit Wingate Inn by Wyndham which was built in 2000. It is already 13 years old and is generally perceived to be an economy/budget brand. The only other major hotels to enter into the Downtown submarket include the 146-unit Embassy Suites and the 315-room Marriott which were unveiled in September and October of 2005. These hotels weren’t purpose-built and are a conversion of the former Adam’s Mark Hotel, originally constructed in 1984. Most supply additions to Winston-Salem’s lodging market have occurred in the Hanes Mall submarket which is approximately five miles or a 10-minute drive from Downtown. Given the dynamics of R.J. Reynolds Building’s location and potentially long list of available franchises, we believe an opportunity to convert certain components to hotel use are not only feasible, but much needed.
14 Investment Summary
According to our CBRE Hotels Group, a portion of the R.J. Reynolds Building would be a viable candidate for hotel development. Travel patterns (both corporate and leisure) within the United States are on an upswing and as credit markets for hotel acquisition and development continue to become more active, opportunities such as the R.J. Reynolds Building would attract significant interest from hoteliers due to its downtown location and conversion possibilities.
02
DOWNTOWN WINSTON-SALEM
17
Downtown Winston-Salem
Downtown WinstonSalem is a vibrant community boasting over 20,000 employees and over 38,000 residents within a two mile radius. The R.J. Reynolds Building has been at the epicenter of downtown Winston-Salem since 1929 and is well positioned to capitalize on the resurgence and revitalization that continues in Winston-Salem’s CBD. Currently, the CBD enjoys the lowest office vacancy rates in the Triad at 7.1% (CBRE), the lowest multifamily vacancy rates in the Triad at 5.2% (Apartment Index), the highest concentration of new investment in the City with over $350 Million of new projects since 2010, and the fastest residential growth of any sector in the market with over 800 units added since 2005.
• One Biotech Place – $100+ million investment, 242,000 square foot, LEED certified office and lab building in the Innovation Quarter developed by Wexford Science and Technology for Wake Forest University using Federal Historic Tax Credits
• Inmar – $100+ million investment, 240,000 square foot headquarters office facility in the Innovation Quarter developed by Wexford Science and Technology for Inmar Corporation utilizing state and Federal Historic Tax Credits. Inmar plans to relocate its 900+ employees from the suburbs in early 2014
• Innovation Quarter Expansion – Construction is underway on an approximately $20 million, 100,000 square foot office expansion for Wake Forest Health to be completed in early 2014. Developed by Wexford Science and Technology utilizing Federal Historic Tax Credits. There is also a strong indication that Wake Forest Health intends to relocate its School of Medicine to the Innovation Quarter in the near future with plans to renovate an additional 350,000 +/- SF of former tobacco manufacturing buildings.
• Winston Factory Lofts – Conversion of former textile facility into 87 apartments with cost over $13 million. First Phase completed in 2013 and is 100% leased. Construction on Phase 2 underway with over 1/3 of the units pre-leased.
• Phillips Building – 270,000 square foot former Wachovia Bank facility being renovated for use by the Forsyth County Sheriff’s office at a cost in excess of $20 million. Occupancy in 2nd quarter 2013.
• Bailey Power Plant – currently being re-developed as potential office, retail, and conference facilities. • Mast General Store – Purchased property at the corner of Fifth and Trade to open its nineth specialty retail store in the country. Opening is slated for 2015.
18
Since 2005, the Winston-Salem CBD has enjoyed a robust revitalization and is now largely regarded as one of the best places to “live, work, play and learn” in the Triad as evidenced by the announcement or completion of the following projects:
Downtown Winston-Salem
Revitalization
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• Over 2,200 housing units (source: The Downtown Winston-Salem Partnership) • Over 193 retail locations including galleries/shops, services, grocery, automotive, entertainment venues, salons, and fitness locations (source: The Downtown Winston-Salem Partnership)
• Approximately 100 restaurants, clubs and bars (source: The Downtown Winston-Salem Partnership) • Over 800 hotel rooms (source: The Downtown Winston-Salem Partnership) • BB&T Ballpark ranked as Number 1 new ballpark in the US when constructed in 2010 (Baseballparks. com). It is home to the Winston-Salem Dash, the single A affiliate of the Chicago White Sox.
• 10 Special Events and Festivals such as the Summer Music Series and River Run Film Festival which draw over 170,000 visitors a year to downtown.
Downtown Winston-Salem
• Over 6.5 million square feet of commercial office space (according to CoStar)
20
In addition to the projects listed previously, Downtown Winston-Salem is home to the following:
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The Winston-Salem Downtown has received numerous accolades in recent years including the following:
• Livability ranked Winston-Salem and the No. 2 Best Downtown in America.
• Ranked as one of the nation’s best downtowns by Forbes Magazine
Downtown Winston-Salem
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13
lvd
52
ke St
Patterson Ave
Chesnut St
4th St 48
Park
36
3rd St
3rd St 42 44
45
38
County Government Center
43
P
9
1st St
1st St
City Hall
Chesnut St
Corpening Plaza
P
Church St
st St
41
N Main St
W1
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39
Liberty St
St
Cherry St
Marshall St
15
Av e
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2nd St Spruce St
W 1st
tow n
10
2nd St
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22 31 31Future
Milton Rhodes 27 Center for the Arts
2nd St
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Chesnut St
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14
33 30 35
Church St
1
Spring St
3
4
4th St
Winston Square Park
Holly Ave
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37 34
61
24 26
14
7
Broad St
6
20
Church St
Green St
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13
62
5th St Main St
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10
Burke Street
3
P
4th St
9
Cherry St
W 4th St
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Stevens Center
Main St
4½ St 18
2
17
Arts Park
Transportation Center
29
Liberty St
4½ St
Spring St
5
Public Library
54
Millennium Center
Trade St
6
P
53
5th St
16
W 6th Ave Liberty St
Marshall St
M.C. Benton Convention Center
1
Poplar St
7
4
Broad St
Summit St
8
5th St
W 5th St
Chesnut St
Cherry St
50
11
West End
7th Ave
51
Spruce St
Poplar St
Pilot View St
Pilot View St
5 12
W 6th Ave
W 6th Ave
g Jr Dr
Trade St
t ry S
lvd dB
s Spring St
t dS
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Summit St 8
Marshall St
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W 6th Ave
West En
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Spring Park
Martin Lu
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r Che
7th Ave
Bu r
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Restaurants, Clubs, & Bars MAP
1st St
Poplar St
47
wn to
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Broa
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Gre
Municipal Building
7
e Av
40 5
40
High St
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60 58
59
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40 S Main St
3
Cherry St
Marshall St
28
Old Salem Rd
w roll ay
St
Cemetery St Salem Cemetery
Children’s Museum
Brookstown Ave
d St
Broa
Visitor Center
56 57 6
Old Salem
1
2
4
Courtesy of Downtown Winston-Salem Partnership www.dwsp.org
24 Clubs & Bars
1
The Tavern in Old Salem
32
Downtown Thai & Sushi
1
Burke Street Pub
2
Mayberry’s in Old Salem
33
Jimmy John’s
2
Gatsby’s Pub
3
Burke Street Pizza
34
King’s Crab Shack & Oyster Bar
3
Ten O One
4
Bernadin’s
35
Thai’Nee Tapas and Sake
4
Downtown Brody’s
5
Flashback Smoothies
36
Murphy’s Lunch
5
The Garage
6
Mozelle’s Fresh Bistro
37
Tokyo’s Shapiro
6
Old Winston Social Club
7
Old 4th Street Filling Station
38
Upper Deck Deli
7
Recreation Billiards
8
West End Cafe
39
Downtown Diamondback
8
Tate’s Craft Cocktails
9
Xia’s Asian Bistro and Sushi Bar
40
Mooney’s Mediterranean Cafe
9
Club Therapy
10
Caffe Prada
41
Courtside Cafe
10
Bull’s Tavern
11
Bib’s Downtown
42
Cafe Ole Coffee House
11
Silver Moon Saloon
12
Lighthouse Restaurant
43
Legendary Goat Coffee Shop
12
Single Brothers
13
Skippy’s Hot Dogs
44
Meta’s
13
Ziggy’s
14
Subway
45
Subway
14
Second & Green Tavern
15
Wen Hwa Asian Fusion
46
Downtown Deli
16
The Grille (Embassy Suites)
47
Twin City Chop House
17
Starbucks
48
Krankie’s Coffee
1
Embassy Suites in the Twin City Quarter
18
Spring House
49
Mary’s Gourmet Diner
2
Marriott Hotel in the Twin City Quarter
19
Camino Bakery
50
Finnigan’s Wake Irish Pub
3
The Hawthorne Inn & Conference Center
20
Dioli’s Trattoria
51
6th & Vine Wine Bar & Cafe
4
The Augustus T. Zevely Inn
21
Mellow Mushroom
52
Bubbling Well Tea & Cafe
5
Henry Shaffner House Bed & Breakfast
22
Tropical Smoothie
53
Chelsee’s Coffee Shop
6
Brookstown Inn
23
Foothills Brewing Company
54
Sweet Potatoes Restaurant
7
Wingate by Wyndham - Winston Salem
24
Hutch & Harris Pub
55
District Bar & Grille
8
Summit Street Inns
25
Artisan Rest & Bar
56
Meridian
26
Wolfie’s Frozen Custard
57
Ollie’s Bakery
27
Rhodes Center Arts Cafe
58
Senor Bravo
28
Bayberry Bistro
59
The Screaming Rooster
29
WS Prime
60
Willow’s Bistro
30
Buena Pinta
61
Jeffrey Adams
31
Dill Pickle Sandwich Shop
62
Community Art’s Cafe
Hotels
Downtown Winston-Salem
Restaurants
Martin Lu
ther Kin
r Che 22
ke St
Green St
lvd
26 30
Burke Street
Winston Square Park
Holly Ave
38
36 67
4th St 78
71
3rd St
3rd St 37 21
County Government Center
P 2nd St
City Hall
Chesnut St
P
Church St
1st St
1st St
N Main St
st St
Corpening Plaza
Liberty St
W1
P
Cherry St
St
Marshall St
Spruce St
Av e
1st St
Poplar St
40
wn to
ks
oo Br
d St
Broa
t en S
Gre
Municipal Building
e Av
High St
nc
hS t
Children’s Museum
Brookstown Ave
d St
Broa
Visitor Center
S Main St
Bra
Cherry St
Marshall St
40
Old Salem Rd
w roll ay
St
40
Entertainment
18
29
19
34
20
35
22
Automotive
Cemetery St Salem Cemetery
Old Salem
23
Fitness
P
Future Park
32
2nd St
oks
tow n
77 30
4th St
Milton Rhodes Center for the Arts
2nd St
Bro
10
27
Spring St
Broad St
19
Patterson Ave
17 16
24
28
31
11
12
5th St Chesnut St
18
Center
13
15
Church St
10
P
20
Cherry St
Spring St
4th St
39
Arts Park
Transportation Center
P
33Stevens
Millennium Center
Main St
4½ St
61
40
Chesnut St
50
5th St
25 10
65
14
Church St
58
49
66
43
47
W 6th Ave 23
Main St
53
29
41 44
Liberty St
Public Library
W 4th St
W 1st
54
75 42
Liberty St
4½ St
17
70
P
46
Trade St
28
5th St
W 5th St
Poplar St
16
24 76
M.C. Benton Convention Center
28
56
64 63 60 69
Broad St
26 27
Summit St
11 13
48
51 57
West End 12
72 21
74
55 52
Marshall St
Spruce St
Pilot View St
Pilot View St
73
W 6th Ave
W 6th Ave
Poplar St
Spring St
t dS
oa Br
Summit St
W 6th Ave
7th Ave
62
45
Cherry St
s
lvd dB
t E dB n
Marshall St
We
West En
25
79
14
Spring Park
68
g Jr Dr
Chesnut St
59
Trade St
t ry S
7th Ave
Bu r
25
Retail Locations Map
11
Courtesy of Downtown Winston-Salem Partnership www.dwsp.org
Grocery Items
1
Master Fitness
1
The Millennium Center
1
Jackson Auto Work
1
Shell Gas & Convenience
2
Golden Flower Tai Chi
2
Stevens Center of UNCSA
2
B&M Automotive
2
Sunoco Gas & Convenience
3
Showtime Physique
3
Community Arts Cafe
3
Automotive Associates
3
4 Brothers Convenience Store
4
The Yoga Gallery
4
Aperture Cinema
4
Rattle & Hum
4
Ronnie’s Country Store
5
The Rush Fitness Complex
5
Winston Cup Museum
5
Jackson Auto Work
5
Keur Serigne Mourtada Mback
6
New Planet Yoga
6
Trustmark Detailing
6
Alpha Market
7
Milton Rhodes Center for Arts / Hanesbrands Theatre
6
Bikram’s Yoga
7
Enterprise Rent-A-Car
7
CVS
8
YMCA
8
Spaugh Motor Company
8
City Beverage
9
YWCA
9
U-Haul
9
Cobblestone Farmers Market
10
Rainbows Total Body Concepts
10
Kingz Grocery
11
Old Salem Cobblestone Farmers Market
12
Washington Perk
26 1
Gusto Fashions
47
Imagine Flowers
11
Hill’s Alteration Tailoring Shop
2
Brookstown Antiques
48
Studio at 625
12
Lefkowitz Tailor Shop
3
Barnhills Books & Wine
49
The B-String
13
Allegacy Drive Thru
4
Lara’s Boutique
50
The Other Half Gallery
14
Ember Audio
5
Burke Street Comics
51
Seed Gallery
6
Haute Chocolate
52
Delurk
7
A Creative Mind Boutique
53
Artworks Gallery
1
Hawthorne Barbershop
8
Re-Tale
54
The Chrysalis Studio & Gallery
2
Yodi International
9
Smokey Shay’s Tobacco
55
Earthbound Arts
3
Spoiled Rotten Salon
10
Merlot & Van Gogh
56
Fiber Company
4
Purrfect Cut Barber Shop
11
Price David Florist
57
Red Dog Gallery
5
Hair Bomb Salon
12
Topaz Creations Florist
58
Umoja
6
Sarafine
13
Ideas
59
WS Rescue Mission Thrift
7
The Studio
14
Downtown Thrift
60
Leftowitz Tailor Shop
8
The Fix Hair & Nail Studio
15
Piedmont Music Center
61
Clean Daze
9
Genesis Hair Studio
16
Elasha B’s Candy Tree
62
Retro Artware
10
Silk Road Salon & Spa
17
Sole Cravings
63
Downtown Tax Service
11
Salon Cabelo
18
Moravian Book & Gifts
64
Cricket Phone Service
12
Dye Pretty Salon
19
T. Bagge: Merchant
65
Liberty Arts Center
13
Hair Den
20
Winkler Bakery
66
Jack Jennings Metalsmith
14
A Touch of Love Hair Salon
21
Woodland Moth
67
Cece’s Boutique
15
Oumy Hair Salon
22
Miksch House and Shop
68
Lucky Strike
16
Escape Salon
23
Old Salem Marketplace
69
Ron Propst Studio
17
Jennifer K Designs & Spa
24
Tattoo Archive
70
Computer Repair Services
18
The Oval Office Men’s Salon
25
Anastasia Furs
71
Camel City Tattoo Shop
19
Salon 939
26
Eyecare Center
72
Intersection Gallery
20
Beauty Town
27
Associated Artist
73
Johnnie’s Shoe Repairs
21
Silke Salon
28
CVS Pharmacy
74
Willy Nilly
22
The Chop Shop
29
The Horton Museum Center
75
Unleashed Art Center
23
Creative Hands
30
Apple Pawn Shop
76
Sculptor’s Studio
24
Karma Salon
31
Camel Pawn Shop
77
Liberty Tattoo
25
Ma’ati Spa
32
Mid Town Gallery
78
Centenial Trading Company
26
Sixth Sense Massage
33
Community Arts Cafe
79
Woven Soul
27
West End Hair Studio
34
Butner Hat Shop
28
Fourth Street Brow
35
Gateway Gallery
29
Nuevo Salon
36
North Liberty Street News
1
Sprint Phone Store
30
Fur Pet Salon & Spa
37
Zeke’s Shoeshine
2
Center City Post Office
38
Contempo Concepts
3
BB&T (2)
39
Fair’s Florist
4
WS Federal Credit Union
40
Artists on Liberty
5
Truliant Federal Credit Union
41
Body and Soul
6
Benbow Beck Locksmith
42
Swift Wade Gallery
7
Elliot Bros. Locksmith
43
Keona’s Boutique & Beauty
8
Computer Repair
44
Kindred Spirits
9
Wells Fargo (2)
45
Miller’s Variety Store
10
Victor’s Custom Tailors
Services
Salon / Spa
Downtown Winston-Salem
Galleries & Shops
03
PROPERTY OVERVIEW
29
ADDRESS 51 E. Fourth Street Winston-Salem, North Carolina 27101 YEAR CONSTRUCTED 1928-1929 TAX PARCEL 6835-27-5376 NET RENTABLE AREA 275,408 Square Feet LAND AREA 0.59 Acre ZONING CB, Central Business District
30 Property Overview OVERVIEW The R.J. Reynolds Building was completed in April 1929, during which time Art Deco’s cool, sophisticated style was gaining immense popularity. R.J. Reynolds Tobacco Company executives chose the New York architectural firm of Shreve and Lamb to design the building. Soon after finishing the R.J. Reynolds Building, Shreve and Lamb went on to design the similar Empire State Building in New York. The R.J. Reynolds Building has received many awards, including:
• National Association of Architects Building or the Year – 1929 • Art Deco Society: Best Art Deco Building Restoration – 1983 • American Institute of Architects Honor Award – 1984 With such a highly recognizable profile, the R.J. Reynolds Building offers a variety of users a trophy address and instant recognition. The property is within walking distance of all of downtown and near the rapidly developing Piedmont Triad Research Park North district. The R. J. Reynolds Building offers the possibility of conversion to multi-uses including mixed use, residential, hotel and office.
31
ACCESS The building is well located at the corner of Main Street and Fourth Street in downtown Winston-Salem. Primary access to the Winston-Salem central business district is provided by Business Interstate Highway 40 and Highway 52. Business 40 runs through Winston-Salem, traversing the neighborhood in an east-west direction and connects with Highway 52, the primary north/south highway in Winston-Salem. These two highways provide interchanges at major local roadways throughout Winston-Salem. FLOORS The building has 22 floors above grade as well as a basement, sub-basement and sub-basement mezzanine. Floor plates vary from 5,600 to 17,000 square feet. EXTERIOR The exterior façade of the R.J. Reynolds Building consists primarily of Indiana limestone veneer with brick and clay tile backup. The limestone is attached using a curtain-wall construction. The stone was hung on supporting steel beams rather than resting directly on the steel. There are mortar joints between the limestone, punched windows at each floor level, and metal spandrel panels at approximately the floor slab level between windows. ROOF The distinctive building design is such that small roof areas occur at various locations on a number of floors, along with substantial roof areas at the 10th floor level. Multiple roofs are located on the building’s 2nd, 3rd, 10th, 11th, 18th, 20th, 22nd, and 23rd stories. All roofs are ballasted thermoplastic single-ply membrane roofs with internal drainages.
A 26’ x 8’ mural by Dennis Abbe of New York covers most of one lobby wall. This “Tapestry of Tobacco” traces the history of tobacco from Native Americans in the 1600’s to the year the R.J. Reynolds Building opened in 1929. In earlier years, two advertising paintings used in Camel cigarettes advertisements reflected the era when the Building opened, and display cases contained smoking accessories popular at the time of the Building’s construction, including several pieces by Cartier. The ceiling is a plaster base covered with gold leaf. It features dozens of circular designs reminiscent of smoke rings. Tobacco leaves frame the edges of the lobby ceiling. The carved marble detailing near the ceiling is typical of Art Deco, as are the designs in the lighting fixtures and elevator door motifs. Terrazzo floors complete the sophisticated look.
32 Property Overview
INTERIOR FINISHES Extensive ornate metal grille work welcomes guests as they enter the revolving doors into the lobby. Inside, this same metal presentation is used to accent walls and elevators. The metal used in the lobby is known as Benedict metal – a combination of copper, tin, lead, zinc and nickel. Since this metal is no longer made, custom orders had to be quarried from West German mines for later renovations.
33
ELEVATORS & STAIRS The Building features six high-speed passenger elevators. One freight elevator serves the sub-basement through ninth floor. There are two stair towers in the lower floors and one stair tower from the 11th floor up.
SECURITY Seven networked surveillance cameras allow internal and external monitoring. Door monitoring alarms feature video switching and recording and motion detectors. CENTRAL MECHANICAL/HVAC The central chilled water, steam, and control air production plants serving the R.J. Reynolds Building, Plaza Tower and Galleria are located in the Basement and Concourse levels of the Plaza Building. The central system consists of two (2) 1,000-ton Trane centrifugal type chillers, replaced in 2006; one (1) 300-ton Trane screw type Chiller; (1) 300-ton York centrifugal with VFD. located on the Concourse level and replaced in 2006; two (2) nominal 1,200-ton and one (1) nominal 600-ton BAC cooling towers, located on the Plaza Building roof, installed in 1988; two (2) precision electric boilers, 11,000 pph each, installed in 2008 and located in the Basement; two (2) 30 HP Sullaire air compressors and two (2) Sullaire 150 CFM air dryers for control air, installed in 2007 and located in the Basement; six (6) B&G chilled water pumps, located on the Concourse Level; and six (6) B&G condenser water pumps, located on the Penthouse Level.
34 Property Overview
RESTROOMS The Building has 48 restrooms throughout.
35
ELECTRICITY Primary power service is a new 12:4KV 3-phase line from Duke Energy fed from an underground vault located in the side walk on 4th street. This service goes to a S&C single phase protection device and on to serve the 600v doubleended main switch gear located in the sub-basement. Emergency power is supplied by a 600KW 600 volt CAT diesel generator located in “J” parking lot. This feed comes into the Building via the underground utility tunnel under Church Street that runs from “J” lot to the sub-basement. The asbestos has been abated and all unused piping removed from the underground utility tunnel. There is adequate room to install process piping if someone wanted to put their cooling tower or physical plant in “J” lot. The Plaza Building emergency generator is also located in “J” lot and enters the R. J. Reynolds Building through the underground pipe tunnel. There will be a utility right of way for the emergency feed going through the R.J. Reynolds Building to the Plaza Building.
36 Property Overview FIRE & LIFE SAFETY The high pressure (185 PSIB) fire protection sprinkler systems for the R.J. Reynolds Building and the Tower are supplied by an electric fire booster pump located in the fire pump room on the east side of the Galleria at the mezzanine level. The fire pump is an Aurora pump rated for 1,000 gpm at 115 psi, 100 hp, 3,500 rpm, 23;460v/3ph. The Building is equipped with a smoke management system which is a combination of stairwell pressurization and elevator shaft pressurization. The dock area is protected by a dry pipe system. Kitchen hoods, located on the 10th and 20th floors, are equipped with dry chemical fire suppression systems, which are connected to the fire alarm system. The building features a Johnson Controls fire alarm system and Firevac evacuation system, which controls the speaker system tones and voice messages for evacuation. The control room operator also has the capability to manually activate the system or execute a voice command over the speaker system for other emergencies. Evacuation speakers are located on all floors of the Building. Fire alarm tests and maintenance are performed at regular intervals as required by NFPA 25 and NFPA 72. PARKING There is no parking with the Building, but there is a 1,500-space city parking lot across from the building on Church Street. The Property has 715 spaces, 572 of which are currently assigned to R.J. Reynolds employees. The city may lease spaces in the Church Street or Main Street parking decks, or possibly offer these to the purchaser of the Building. LOADING DOCKS The building has one bay.
37
STacking Plan
21st Floor - 3,844 SF
20th Floor - 3,844 SF
19th Floor - 5,567 SF
18th Floor - 5,839 SF 17th Floor - 6,565 SF 16th Floor - 6,505 SF 15th Floor - 6,489 SF 14th Floor - 6,489 SF 12th Floor - 6,484 SF 11th Floor - 6,451 SF 10th Floor - 9,121 SF 9th Floor - 18,397 SF 8th Floor - 18,397 SF 7th Floor - 18,397 SF 6th Floor - 18,397 SF 5th Floor - 18,397 SF 4th Floor - 18,397 SF 3rd Floor - 18,397 SF 2nd Floor - 20,206 SF Mezzanine - 23,437 SF
Basement - 25,523 SF Sub Basement Mezzanine - 4,353 SF Sub Basement - 5,912 SF
SUBBASEMENT
5,912 Square Feet
SUBBASEMENT MEZZANINE
4,353 Square Feet
BASEMENT
25,523 Square Feet
38 Property Overview
floor plans
39
MEZZANINE
23,437 Square Feet
SECOND FLOOR
20,206 Square Feet
THIRD FLOOR
18,397 Square Feet
40 FIFTH FLOOR
18,397 Square Feet
SIXTH FLOOR
18,397 Square Feet
Property Overview
FOURTH FLOOR
18,397 Square Feet
41
SEVENTH FLOOR
18,397 Square Feet
EIGHTH FLOOR
18,397 Square Feet
NINTH FLOOR
18,397 Square Feet
42 ELEVENTH FLOOR
6,451 Square Feet
TWELFTH FLOOR
6,484 Square Feet
Property Overview
TENTH FLOOR
9,121 Square Feet
43
FOURTEENTH FLOOR
FIFTEENTH FLOOR
SIXTEENTH FLOOR
SEVENTEENTH FLOOR
6,489 Square Feet
6,505 Square Feet
6,489 Square Feet
6,565 Square Feet
44 5,839 Square Feet
TWENTIETH FLOOR
3,844 Square Feet
NINETEENTH FLOOR
5,567 Square Feet
TWENTYFIRST / EQUIPMENT FLOOR 3,844 Square Feet
Property Overview
EIGHTEENTH FLOOR
45
Investment Summary
46
04
TRIAD ECONOMY
49
The Greensboro-Winston-Salem-High Point CSA can be defined as the second largest combined statistical area (CSA) located entirely in North Carolina. The 12-county region is commonly known as the “Piedmont Triad”. The Triad has enjoyed steady growth as a central member of the South’s “population crescent,” a high-growth corridor extending from Atlanta to Raleigh-Durham along I-85. The Triad is located in the geographic center of North Carolina and is almost equidistant from the two major metropolitan areas of Raleigh and Charlotte. Positioned in the middle of the eastern seaboard of the United States, half of the United States population is within a 600 mile radius. The Piedmont Triad, with a population of 1.6 million people, consists of three key cities: Winston-Salem, Greensboro and High Point. The metropolitan area benefits from its strategic location along the I-85 corridor, halfway between Atlanta and Washington, DC. North Carolina, the “Tar Heel State,” regularly receives accolades in national surveys and publications as a top state in which to live, relocate and do business. From a transportation and distribution perspective, the Triad is an optimum location because of access to five interstate highways, abundant labor, and quick drive time to the Blue Ridge Mountains or the Atlantic coast. Going forward, the region is poised to prosper due to its quality of life, low cost of living, mild climate, business friendly environment, and diverse economic base.
• A $700 million American Express data center • A $426 million plant for Caterpillar in Winston-Salem • The FedEx mid-Atlantic sorting facility at the PTI Airport in Greensboro • 125-acre FedEx Ground Delivery facility in Greensboro • Honda Aero’s international headquarters and very light jet (V L J) manufacturing facility at the PTI airport. In addition to new economic development, two worldwide brands with existing operations within the Triad are increasing their presence. Polo Ralph Lauren will be expanding its facility by 400,000 SF, while adding 500 jobs, and Inmar, Inc. will expand its corporate headquarters in Winston-Salem to 240,000 SF and increase employees by 212. Clearly, the Triad is on everyone’s short list for major economic development projects. Like the rest of the country, the Triad experienced a sharp rise in its unemployment rate in recent years due to the impact of the economic recession. The Triad has historically had a lower unemployment rate than the national average and this trend should return once the nation again experiences positive job growth. According to the Bureau of Labor Statistics, the unemployment rate for the Greensboro-High Point MSA and the Winston-Salem MSA were 10.2% and 9.4% respectively as of July 2012. To gain perspective of how the overall economy has affected the Triad region’s unemployment, in May 2007 the unemployment rate for the Greensboro-High Point MSA was 4.8% while the Winston-Salem MSA reported a 4.3% unemployment rate. Without question, as the overall economy improves, the unemployment rates for the region will continue to track downward to a level more in line with historic averages. Adding to the strong employment base, the Triad continues to provide well qualified employees for area businesses from the graduates of the six local colleges and universities.
50 Triad Economy
Employment in the region is highly diversified, with the largest employers representing seven different industry types, including the aerospace, healthcare, manufacturing and banking sectors. As a traditional manufacturing based economy primarily focused in the tobacco, textile, and furniture industries, the Triad was hit harder than most in the late 1990’s and early 2000’s as many of these industries moved their manufacturing operations offshore due to low labor costs. However, with aggressive state, regional, and local economic development efforts, major companies have looked favorably on the Triad as a base to expand their operations. Recent success stories include the commencement of:
51
Demographics
The Piedmont Triad metro region grew 19.16% throughout the 1990’s and has grown 13.5% since 2000. The area is growing at an average annual rate of almost 1.5% a year. While the Triad MSA is comprised of 12 counties, nearly 52% of the region’s population is clustered within two counties, Guilford and Forsyth. Greensboro, North Carolina’s third largest city has a population of 269,666. Winston-Salem is the state’s fifth largest municipality with 229,617 residents. The Triad enjoys one of the lowest costs of living among major cities throughout the United States, and North Carolina has recently been ranked #1 for Business Climate by Site Selection magazine for the ninth consecutive year, including 2011. These positive trends will continue to fuel population and employment growth throughout the region. The region serves as the headquarters for four Fortune 500 firms (Reynolds American, VF Corporation, BB&T and HanesBrands) and several other large employers representing a wide variety of economic sectors. The region enjoyed relatively low unemployment and job growth throughout the 1990’s, gaining new jobs through the relocation or expansion of both home grown success stories and international blue chip corporations including Honda Aero, American Express, FedEx Corporation, Caterpillar, Volvo Trucks, RF Micro Devices, VF Corporation, Kay Chemical, Lorillard Tobacco, B/E Aerospace and Cingular Wireless (now AT&T). Although the region suffered from significant job losses in the early 2000’s, primarily due to the decline of the textile market, it has diversified its economic base and is poised for solid growth for the foreseeable future. Those textile, furniture and tobacco companies that remained in the region are generally leaner, more profitable and much stronger companies today. As indicated, many of these firms are adding employees, investing in capital projects and infrastructure and in an “offensive” posture.
Major Employers COMPANY NAME
EMPLOYEES
INDUSTRY
14,000
Heathcare
Novant Health
9,000
Healthcare
Cone Health System
6,524
Healthcare
Laboratory Corporation of America
4,149
Medical
Wells Fargo Company
3,500
Banking
BB&T Corporation
3,160
Banking
UNC-Greensboro
2,701
Higher Education
Hanesbrands Inc.
2,700
Marketing and Sales
Reynolds American Inc.
2,500
Tobacco Products
Wake Forest University
2,450
Higher Education
Wake Forest University Baptist
52 Triad Economy Compared with similar metropolitan areas, the Piedmont Triad is an area recognized as having one of the lowest costs of living in the United States. From wage rates to construction costs to median home prices, the area is a bargain given the quality of life. In fact, a study by The Boyd Company found the area as the “least expensive place in America for a Fortune 500 firm to relocate�. With the skyrocketing costs of living in many major metropolitan areas, companies will be tempted to consider North Carolina and the Piedmont Triad as one of the best options for future expansion. Despite the relatively low costs, North Carolina boasts the second highest productivity index in the nation as a right to work state, and the lowest union membership dues in the country.
53
Triad-wide Economic Development Wins • American Express has completed construction on the first of two data centers with a total investment north of $700M which indicates their strong bias towards the Triad as a great place to do business.
• In late 2011, Caterpillar completed construction on a manufacturing facility in Winston-Salem with about one million SF. The plant will employ approximately 500 people and represents investment in the Triad economy estimated at $450M.
• Honda is completing its world headquarters for Honda Aircraft Company, the producer of the HondaJet, a business-class plane in the Very Light Jet (VLJ) category. Honda recently completed construction of a 60,000 SF office building and an adjacent 300,000 SF jet plant and hangar at the Piedmont Triad Airport, and is clearing ground for an additional 300,000 SF facility. HondaJet will begin the delivery of planes in 2013 and it is anticipated that they will employ over 800 people.
• FedEx chose Piedmont Triad International Airport over a host of southern authorities for its new Mid-Atlantic Hub – the company’s fifth major U.S. hub. The others are located in Memphis, Indianapolis, Fort Worth and Anchorage. A hub of this magnitude is expected to make it possible for manufacturers to relocate or expand in the Greensboro region in order to have a reliable means of delivering their products to the market. This pattern is expected to mirror the economic and population boom experienced in Memphis and Indianapolis over the last two decades. The hub opened in 2009 and operations are ramping up to meet demand as the economy recovers.
• Polo Ralph Lauren, already with a significant presence in the Triad with over 1.5M SF of distribution and office space, announced in June that it will increase its presence within High Point and plans to invest $97M and create 500 jobs over the next four years. The world renowned lifestyle product designer and distributor will expand its facility by 400,000 SF. The expansion will drive an additional $45M into the Triad economy.
• BB&T has recently signed a seven-year, 390,000 SF lease near the Piedmont Triad International Airport in Greensboro. This call center is part of a large back-office operation which will create 1,700 new jobs over five years and will eventually hold 2,500 employees. BB&T expects to begin moving employees into the new facility by year’s end.
• Inmar, Inc., a technology company that specializes in Supply Chain, Promotion and Pharmaceutical Services, will be expanding its corporate headquarters in WinstonSalem and will soon be under construction to renovate approximately 240,000 SF in the Piedmont Triad Research Park. The company plans to create 212 jobs within the next five years and invest $24.5M into the Triad area.
• Herbalife, which makes nutritional and personal care products, announced in 2012 that it will locate a manufacturing and distribution hub in Winston-Salem and is expected to create nearly 500 jobs over the next three years. In an attempt to strengthen its East Coast operations, Herbalife has targeted the 585,000 SF Dell plant to be the site for the company’s largest owned facility.
54 Triad Economy In addition to the Economic Development wins, the Triad has repeatedly received national recognition in recent years as an excellent place to live and work. Other recent accolades bestowed upon the Triad are:
• 4th consecutive Top 10 national ranking for attracting new industry among similar-sized cities, Site Selection Magazine (2011)
• #7, for the number of corporate real estate projects of $one million or greater in the nation, Site Selection Magazine (2010)
• #7, “The Best Cities for Small Business”, Entrepreneur Magazine (2012) • #8, “America’s 50 Hottest Cities”, Expansion Management (2006) • #11, “The Best Places to Live in America”, Money Magazine (2010)
55
Quaker Gap 311
S T O K E S
R O C K I N G H A M
King 65
Stokesdale
Rural Hall
89
220 29
158
52
Walkertown 68
WINSTON-SALEM 421
Kernersville 40
F O R S Y T H
Colfax
Gibs E
G U I L F O R D
40
GREENSBORO 40
Clemmons
311
Jamestown High Point
Arcadia D A V I E
109
85
220 421
Archdale Thomasville
311
64
Lexington D A V I D S O N
Tyro
Cotton Grove R O W A N
Spencer
New Market
Randleman
Growing Transportation Hub 73
The area’s central East Coast location puts the Triad within a 650-mile radius of Rmore A than N one-half D O Lof PtheHU.S. population and most 64major markets. The area offers direct access to five interstates: I-40, I-85, I-73, I-74 and I-77. US 311, US 29, US 220 and US 421 in the Ramseur area also provide excellent connectivity throughout the state.64 The region’s industrial sites are linked throughout the U.S. and Canada by two major railroad lines: Norfolk CedarSouthern Grove Corporation and CSX Corporation. 49 The Piedmont Triad International (“PTI”) Airport is located between Greensboro and Winston-Salem and serves approximately one million passengers per year, with daily non-stop flights to cities such as Atlanta, Boston, Charlotte, New York, Chicago and Washington, DC. The PTI Airport has approximately 60 daily direct flights on major carriers to large U.S. cities from its 4,000-acre campus. Major airlines serving PTl are Delta, US Airways, United, and American Airlines.
DISCLAIMER
CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be
made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. The Property is being sold by the Owner on an “as-is, where-is” basis. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
56
Approximately 62,000 students are enrolled in the area’s 12 universities and colleges in addition to another 80,500 students enrolled in the area’s two community colleges. Colleges and universities based in the area include Wake Forest University, North Carolina School of the Arts, Salem College, Winston-Salem State University, Elon University, the University of North Carolina at Greensboro, High Point University and Guilford College. The area’s two community colleges are Guilford Technical and Forsyth Technical, both of which offer specific training programs, creating a workforce designed to employers’ specifications.
Triad Economy
Education
GREG WILSON SIOR, CCIM | Executive Vice President CBRE | Triad Region 101 CentrePort Drive, Suite 160 Greensboro, NC 27409 T 336 331 9399 | F 336 773 1098 greg.wilson@cbre.com
DODSON SCHENCK CCIM, SIOR | Managing Director CBRE | Triad Region 101 CentrePort Drive, Suite 160 Greensboro, NC 27409 T 336 478 0234 | F 336 373 0603 dodson.schenck@cbre.com
PATRICK GILDEA CBRE | Capital Markets | Investment Properties 201 South College Street, Suite 1700 Charlotte, NC 28244 T 704 331 1217 | F 704 331 1259 patrick.gildea@cbre.com
OFFERING MEMORANDUM