Market Research for Real Estate using GIS

1. PINEVILLE MEDICAL @ FIVE TWENTY-ONE CHARLOTTE, NC BELK DEVELOPMENT GROUP Real Estate Development MBAD 6159 Prepared by: Rashmi Menon, Anthony Provenzano, Mike Foster, Bo Shinn, and Sisi Yan

2. Project Site

3. Site Plan

7. Tenant Mix Type of Practice Office Space (Sq. Ft) Rental Rate Lease Status Floor Rehabilitation Services 12,000 $21.50 Pre-leased 1 Outpatient Services 7,200 $24.00 Pre-leased 1 Orthopedic Services 4,000 $25.77 Available 2 Psychiatric Services 2,200 $25.77 Available 2 Pediatric Services 3,000 $25.77 Available 2 Diagnostic and Imaging 3,000 $25.77 Available 2 Laboratory Services 7,000 $24.00 Pre-leased 2 Gynecological Services 6,200 $24.75 Available 3 Primary Care Practice 8,000 $23.00 Pre-leased 3 Primary Care Practice 5,000 $24.75 Pre-leased 3

10. Employment

12. Office Net Absorption

14. Demography

18. Construction Assumptions Item Assumption Time for Construction 12 Months Land Costs per Acre $750,000 Number of Acres 3.8 Building Square Feet (3 Stories) 57,600 Hard Costs (+5% Contingency) $108.68 Tenant Improvement Allowance $36.00 Architectural/Engineering/Permitting 3% Leasing and Marketing 7% Closing Costs and Other $68,220 Developer’s Fee and Overhead 2%

19. Construction Cost Summary Expense Amount Per Sqft Hard Costs $ 6,259,680 $ 108.68 Soft Costs 1,205,840 20.93 Land Cost 2,850,000 49.48 Developer Fee 149,310 2.59 Total Construction Cost $10,464,831 $181.68

20. Space Market Assumptions Item Assumption Operating expense per square ft. $7.55 % of expenses eligible for Tenant Reimbursements 0.00% Projected Stabilized Vacancy 11.50% Growth Rate-Rents 3.00% Growth Rate Expenses after Year 1 3.00% Capex Percentage 0.50% Sales Costs (sale on completed project) 3.00% Average Lease Term (years) 10.0

21. Capital Market Assumptions Construction Loan Assumptions Construction Loan Interest Rate 8.0% Construction Loan Fee 1.0% Loan to Cost Ratio Construction Loan 75.0% Permanent Loan Assumptions Mortgage Interest Rate Perm Mtg 6.50% LTV Ratio Perm Mtg 70.0% Amortization Period Perm Mtg 20 Points/Fees Perm Mtg 1.0% Risk Free Rate 3.93% Expected Completed Property Cap Rate 7.75% Terminal Cap Rate Discount 0.50% Unlevered BT Discount Rate Development 15.05% Unlevered BT Discount Rate Operations 10.65%

22. Land Price Sensitivity Current Scenario NPV -$20,844 Unlevered BT IRR Development 15.05% Land Price Reduction of 80 Basis Points NPV $0 Unlevered BT IRR Development 15.89% Land Price Reduction of 5 Percent NPV $115,302 Unlevered BT IRR Development 20.53% Land Price Reduction of 10 Percent NPV $251,488 Unlevered BT IRR Development 25.88%

23. Go / No Go ??? Wait until seller expectations drop to 5% of current value!!