Space Park North - Proposal v4

Proposal to Provide Leasing and Property Management Services 1

presented by Buist Richardson, SIOR Principal 615.727.7417 [email protected] Sue Earnest, CCIM Principal 615.727.7421 [email protected] Mick Wrigley Vice President, Property Management 615.727.7414 [email protected] Melanie Giaconia Senior Property Manager 615.727.7408 [email protected] presented to 5106 Maryland Way, Brentwood, TN 37207 | 615.727.7400 | avisonyoung.com ©2015 Avison Young (USA) Inc. All rights reserved. The information contained in this proposal (‘Proposal”) was prepared by Avison Young. It contains selected information pertaining to the Property, which Avison Young views to be accurate. It does not purport to be all-inclusive or to contain all of the information, which a prospective purchaser/tenant may desire, and each potential purchaser/ tenant is encouraged to verify the information contained herein. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond our control and, therefore, are subject to material change or variation. This Proposal is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Avison Young. The Owner is to rely upon its own investigation, evaluation and judgment as to the valuing of the Property described herein. This Proposal is the property of Avison Young and may be used only by parties approved by Avison Young. The Property is privately offered and, by accepting this Proposal, the party in possession hereof agrees (i) to return it to Avison Young immediately upon request and (ii) that this Proposal and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Proposal may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Avison Young. This Proposal is confidential, furnished solely for the purpose of a review by the potential Owner of the Property and is not to be used for any other purpose or made available to any other person without the express written consent of Avison Young and the Owner. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Avison Young from sources it deems reasonably reliable. Summaries of any document are not intended to be comprehensive or all-inclusive, but rather only to outline some of the provisions contained therein. No warranty or representation, expressed or implied, is made by the Owner, Avison Young, or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or as to engineering or environmental matters. The terms and conditions set forth above apply to this Proposal in its entirety.2

Table of Contents1 | Executive Summary 42 | Asset Overview P3 | Property Management P4 | Leasing Strategy P5 | Company/Team P6 | Fee Structure P 3

Avison Young is pleased to have the opportunity to present Red Tail Acquisitions with a comprehensive Leasing and Management Proposal for Space Park North located in Goodlettsville, TN.4

Executive SummaryOur proven approach is rooted in what we believe are basic fundamentals of success:Dedication of Talent / Leasing Personalized ServiceWe will staff the management team with talented, We will proactively reach out directly to you and your staff,experienced professionals who will work directly with and the tenants, to ensure the construction, move in, andyou on the asset. ----- is a seasoned commercial property continued experience in the building is exceptional. We willmanager with diversified experience. He, along with Mick execute our role as property manager with both your role asWrigley, as head of Property Management, and our on-site owner and the retention of your tenants in mind.maintenance engineering team, will fully devote the depthof their experience, local market knowledge and intimate Best of Classunderstanding of the asset to this assignment. We will use our proven accounting, reporting and costCost Savings savings methods to produce the highest and best level of accountability to Red Tail Acquisitions regarding Space ParkWe maintain a portfolio of 7+ million SF of third party assets, North. Our program focuses on personal interactions thatenabling Red Tail Acquisitions to benefit from the cost savings create relationships, loyalty and repeat business. We haveof group vendor bidding and shared maintenance engineer the track record and desire to provide Red Tail Acquisitionsservices to ... with the level of service you deserve and the building experience you expect as an owner-occupier.Buist Richardson, SIOR Sue Earnest, CCIM Mick Wrigley Melanie GiaconiaPrincipal Principal Vice President, Senior Property Manager Property ManagmentSpace Park North Executive Summary points 5• Value the trust an owner gives us when hired – communication, accountability, and market knowledge is a priority• Great relationship with Property Engineer• Experience on both leasing and management with these properties• Great track record of performing to the needs of the Landlord• Active community involvement• Excel in maintaining value without a hefty price tag (reword but with that thought in mind)

Asset Overview SWOT Analysis Strengths Weaknesses • 2,000 to 150,000 sf variety support growth • Older space • Interstate visibility and access • North market • Dominate property for northern market • Auto and truck parking can be tight • Loading dock and drive-in door options • Some suites need work • Priced below new construction • Northern submarket has less demand • Good ceiling height for warehouse • Ideal location for area businesses • Near Dollar General Headquarters • Strong partnership with City of Goodlettsville (Codes, Chamber, etc) • Competitive pricing • Large park – opportunity for existing tenants to shift within park66

Opportunities Threats • Limited supply of competing space • New space coming on line in north market • Raise rents while you can • Older space is cheaper further out • Nashville economy continues to rise (ie: Portland, Gallatin) • Growth in Sumner/Robertson Counties • Economic downtown – possible greater effect on • Cheaper option than Brick Church Pike/ small business users Metro Center • Space to support new businesses (ie: Beretta) 77

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Property ManagementOptimizing the Asset Solutions Across the Entire Asset LifecycleOur Property Management team is structured to work in tandem withour Brokerage processes, to create the most effective and profitable Avison Young works with you to maximize the value of your assetoutcome for Ownership. Specifically suited to this type of project, we from acquisition through management operations and eventual salehave exceptional experience with Project Management, Sustainability or re-finance. With an “Ownership” mindset, we provide the abilityand Tenant Transition, assisting both Ownership and Tenants in the to integrate purchase, due diligence, management, leasing, anddelicate and exciting steps toward occupying new, creative space. construction, and sale or recapitalization. As a world-class provider with top local and global capabilities, we can enhance your investment’sIn our discussions regarding management for Space Park North, we value by increasing revenue, minimizing expenses, and maximizingwill highlight the benefit of our experience in the following areas: perceived asset value. Project Management Leasing & Management Partnership • Perimeter Two: conversion from a traditional office building to a In partnering with Avison Young, you will receive the full benefit of our university with office Management team, along with our full company resources at your disposal. Our Management teams work with brokerage to relay • MAC I: conversion for HCA important market information to you and to keep you apprised of submarket and related economic activity. Sustainability • We anticipate your needs and are accessible when you need us. • Finding and assisting tenants interested in sustainability of various levels • We have brokers in our company dedicated to the interchange submarket who will deliver superior market recon regularly to • Experience in LEED Platinum, Gold and Silver buildings, lending you and our management staff. our expertise to suggest sustainable options • We track every piece of detailed tenant information in the • The Bridge Building: project management on conversion of market utilizing our proprietary database. original Nashville Bridge Company • We have long-term relationships with the top brokers who work • Building to a LEED Platinum office building your submarket, and call on them regularly Value Maximization • We offer Red Tail Acquisitions, LLC the depth of resources that a dedicated team brings to the leasing and management process: • Project management of capital improvements, roof from extensive experience with institutional, investor and user replacements, tenant improvement and building modernization sales to capital market knowledge with national and global insight into corporate strategic movement and financial market • Noel Place: overseeing property demolition / conversion to impact that affect commercial real estate. a hotel 9

Our Management Services As Property Manager, Avison Young will provide the following services: Property Inspection Annual Operating Expense Reconciliation Upon commencement of our assignment, Avison Young will perform Avison Young will prepare an annual operating expense reconciliation a thorough physical inspection and prepare a report for ownership of report to reconcile Common Area Maintenance, Insurance, and Taxes. our findings and recommendations. Contracts Transition Management We will keep a summary list of all contracts for the facility and the Within 30 days Avison Young will review and evaluate building original of each contract in files. This contract list will include the system warranties and contracted services concerning costs and contracted service, the name and address of contractor, the financial quality. Once we identify cost saving opportunities, Avison Young obligation under the contract, the term and renewal or extension will competitively bid, negotiate, renegotiate and contract, with options, competitive bids, and insurance requirements. All service ownership’s prior approval, for required ongoing maintenance. contracts will be cancellable on 30 or 60 days notice unless otherwise approved by ownership. Maintenance For all service, repair or other contracts in excess of $5,000, Avison Young anticipates daily ongoing maintenance problems competitive bids are taken unless such competitive bidding is waived and will establish a preventive maintenance program to reduce by ownership. Whenever possible, at least three competing bids from the number of maintenance emergencies. As detailed further in qualified firms are obtained and analyzed. succeeding sections below, it will also develop emergency contact and problem resolution protocols with Client and the tenants at the Factors such as cost, the contractor’s track record, the quality of their property. work and any guarantees will be considered. Justification is given for recommending acceptance of a bid other than the lowest. Inventory Avison Young will inventory tools, supplies and equipment at the data center. We will also implement an inventory control system to ensure adequate stock of these items for timely repairs and maintenance. We will also use the inventory system to control and account for tools and supplies as needed. Annual Property Budgets Avison Young will prepare detailed operating budgets. The annual budget is accompanied by worksheets giving monthly explanations of each line item and a detailed budget narrative supporting the assumptions used.10

Insurance Key Contact InformationAvison Young will work closely with your insurance agent, or solicit bids Avison Young staff will carry emergency telephone numbers includingfor comparison, while evaluating your property and liability both daytime and after-hours numbers of the major contractors,insurance program. building tenants, etc., all of whom would be contacted whenever appropriate.Avison Young will also initiate incident reports to your insuranceagent on a timely basis and in the event of a loss, work with the Customer Service/Complaint Resolutioninsurance adjuster as the owner’s representative to negotiate propertysettlements or investigate third-party losses. During our normal business hours, Monday through Friday from 8:00 A.M. to 5:00 P.M., we will field all incoming calls concerning servicesAvison Young will obtain certificates of insurance from all contractors required at the property. All tenants and contractors will be providedperforming work at the property and from each tenant in accordance the Property Manager’s direct phone number in order to respondwith their lease. to any inquiries or problems. During normal business hours, Avison Young staff will dispatch either the appropriate vendor or a staffProperty Tax member to correct any issues or problems.Due to the impact of continual fluctuations in property values andthe varying methods used by cities to set tax rates, real estate tax After hours calls will be received by Avison Young’s emergencyconsultation is a critical element of expense control. Avison Young telephone line. Avison Young provides a 24/7 manned answeringwill work with ownership’s legal representative or a firm approved by service which will contact a member of the Avison Youngownership to contest property tax increases. Management staff for resolution of any issues or problems. OSHA / ADA Compliance We perform compliance audits to identify and mitigate potential issues with regulatory agencies including OSHA and the ADA. 11

Education and Training Active involvement with commercial real estate organizations enables our management professionals to expand their knowledge of the industry, remain apprised of trends and technological innovations, expand relationships, and understand operational and legal issues impacting property performance. Our staff takes pride in having earned professional designations bestowed by the Building Owners and Managers Association, the Association of Certified Commercial Investment Members, the International Council of Shopping Centers, the Institute of Real Estate Management, as well as the Community Association Institute. Other areas which make up our Scope of Services and focus include: • Common area billings • Tenant disputes • Key notification dates • Lien waivers • Lease enforcement • Parking and delivery issues • Standards for OSHA enforcement • Joint marketing programs • Tenant relations • Tenant allowance approval • Tax parcels management • Capital construction • Tenant and sale signage • Waste disposal • Cross easements • Risk and safety strategy • Tenant and Landlord build outs • City and governmental coordination • Certificate of Occupancy completion • Energy Star Tracking Surveys and Tenant Relations Lease Administration The Avison Young Team knows that they hold the key to successful Avison Young’s local presence, local accounting, leasing and tenant relationships and regularly schedule tenant communication and management team ensures all existing leases are abstracted and other services to ensure tenants are pleased with the level of attention operating expense/tax recovery templates are established, shared, and service provided. Personal business relationships are critical and communicated and updated as events happen. Our team abstracts they serve as the most important tool to be used for the benefit of each new lease agreement immediately following execution and tenant satisfaction. confirms the information is accurately set up in the accounting system. From theses abstracts, critical dates, such as lease expirations, The formal way to gauge a tenant’s satisfaction is to conduct an as well as options and rights, are flagged and brought to the attention annual survey of all tenants. While the goal is to grade Avison Young of the Property Manager, Leasing Team and Accounting department. performance as well, these surveys provide a wealth of useful information including expansion opportunities and tenant Property Appearance and Cleanliness business objectives. Avison Young has developed a typical Building Inspection Procedure to assist management personnel. Careful, thorough, and regularly scheduled building inspections are an integral component of the management and engineering services program. We will perform inspections to: • Eliminate safety hazards • Verify mechanical equipment maintenance • Ensure cleaning specifications are being met • Confirm that tenants are satisfied with services provided12

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Maintenance & Tenant Emergency Emergency / Disaster PlansHandbook / Procedures In the wake of 9/11, all qualified 3rd party firms reviewed andPreventative and Recurring Maintenance amended their response procedures in the event of future disasters. The general planning procedure identifies the management structureThe computerized work order system is typically used to establish and their tasks, the mobilization of variable resources within theon-going maintenance supported by hard copy records and is based company to address the immediate problems, and clarifies the returnon a user-defined, 52-week schedule. The system produces weekly path to normal operations.equipment preventive maintenance work schedules. Since it is user-defined, the primary goal of the maintenance management system Priorities such as the protection of human life, prevention oris ultimately to decrease the amount of unscheduled equipment minimization of personal injury and reduction of the physical asset’smaintenance by increasing the efficiency in managing the scheduled exposure are established in the planning phase. Once established,equipment maintenance. In other words, the primary objective of clear plans of action for evacuation and shelter, personal protectiona maintenance management system is to regulate and control the and rescue and relief are determined. All employees are trained in thescheduling of the maintenance repairs. Our engineer will be able to building’s emergency procedures – both fire/life safety and security.input the existing preventive maintenance schedule into the system Periodically such procedures are reviewed by senior management onand gain the benefits of computerized work schedules and monitoring. the assignment. All fire/life safety equipment is regularly inspected and tested pursuant to owners’ requirements and of course by local,Communication state and national requirements.Clear lines of communication are specified in each disaster recovery Additionally, Avison Young has strict procedures for public relationsand security plan. All management personnel know the chain of in a disaster situation. All requests for media response are directedcommand, which includes the contact numbers for every property to Mick Wrigley, managing director of Avison Young’s Managementmanager and their supervisors, should a crisis arise. Ownership’s contact Division, who will work with the owners directly to appropriatelyinformation is also available as part of this plan. address requests for information. Typically, only the designated spokesperson for Avison Young and the building ownership will beThe type and location of the command center will vary, depending on authorized to publicly discuss these matters, so that a professional andthe type of emergency. The disaster recovery team assembles in the caring response is presented to the public.appropriate location to implement appropriate procedures to addressthe recovery.Disaster ManagementThe security team will have a preliminary report based on actionstaken as outlined in the Avison Young property manual. Allinformation is relayed to the Disaster Team Coordinator and theProperty Manager as quickly as possible. They determine theappropriate level of response and plan implementation at that point.Should a full evacuation be necessary, all procedures in the securitymanual are followed. The evacuation plan shall adhere to the firesafety plan established for the building, including who may authorizea full building evacuation. 15

Accounting & Property Operating Expense Reconciliations Management Reporting • Tenant escrows are adjusted to the new year escrows for the January Accounting rent statements. The only exception would be if the escrows are capped based on prior year actuals. Property Managers will provide to Avison Young accounting is performed on MRI - cloud-based, fully accounting the new monthly estimates. New estimates are sent to the secured and monitored software. This accounting and property tenants by the property managers. management package is capable of providing high quality reports to Owners in a variety of customized formats. • For CAM, tax, and insurance reconciliations, reconciliations are to be completed by the Property Managers in the first quarter of the year. All current reporting versions include the following modules: Property Managers should check tenant leases to see if each lease • Accounts Payable states when the reconciliations must be completed by. Once the • General Ledger reconciliations are completed, the Property Manager will forward a • Commercial Management copy of the letter and invoices to the accountant to input into the • Financial Statement Designer property software. • Report Writer • Accountants will review reconciliations with their Property Managers Avison Young will adapt our reports according to ownership as a final check. requirements. We are also trained in Yardi and Skyline, and can integrate and adapt our reporting should Ownership require other • Once the accountant receives and verifies get the billings from software integration. the managers they enter them in the system before the next rent statements are generated. • Lease review verifications take place as needed. • Final sign off is renewed by property accountant, property manager, reviewing senior accountant and the Director of Property Management assigned to your asset.16

Financial ReportingThe standard Avison Young financial report is straightforward and easy to understand. It provides all the necessary information needed to review per-formance of the property. The mainstay of the Avison Young Management Department is flexibility and the desire to give our clients the highest qualityproducts. We can download and transmit information electronically and can close the monthly report on any day desired. Avison Young standard monthly reports include:• Summary of Receipts and Disbursements • Check Register Indicates the cash flow for the current reporting month. It Lists information regarding all checks printed for the current includes the beginning cash balance, income expense and the reporting month. It includes: the check number and date, the ending cash balance. payee, the invoice date and amount, along with any description.• Balance Sheet • Bank Statement Details the assets and liabilities and the owner’s equity balance A copy of the reported month’s bank statement. for the current reporting month. • Check Reconciliation• Budget Comparison Details the bank balance and the book balance at the end of Includes an explanation for all monthly and year to date each reporting month; lists the outstanding checks and the budget variances over 5% or $1,000 for the current reporting difference between the two balances. month. • General Ledger• Receivables Ledger Shows all debits and credits made to each account (within the Lists all tenants and includes: previous balances, billing Chart of Accounts) as well as the date, description and amounts for the month, the receipts received as well as dates, previous balance. check numbers and check amounts and any current balances remaining. • Rent Roll Lists all tenants and includes the property location, square feet,• Aged Receivables tenant name, lease term, lease period, base rent per square feet, Lists any tenants with past due balances (over 31 days) and annual rent, percentage rent, additional rent, rental options and total amounts owed. relevant comments. 17

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Leasing Strategy UPDATEAs we indicate throughout this package, we strongly recommend a These attributes will also allow us to capitalize on the buzz surroundingtenant-centered approach to redeveloping the building. This property the area’s growth, green solutions, unique work environments,offers a great opportunity to provide unique and transformative transportation, health and nature as its location allows for integrationoffice space to the Nashville business community. The challenge is of all these things, and will allow us to implement a tailored marketingdetermining which improvements will make the strongest impact on strategy that enhances our communication and sales efforts. Whilethe market. The property has exceptional potential to provide not only we have the opportunity to implement unique marketing strategiesmuch needed space, but the unique ability to offer creative space, for this property, our broker marketing plan is a set of comprehensive,walkability and access to retail, restaurants and parks. The unique strategic tools – keenly focused on one goal: to generate new leases.benefits are two-fold. We highlight several of these tools below, and later our marketing and branding specifications, leasing budget and timeline. We will provideAs the Greater Nashville area, and North Industrial market in particular, marketing updates for you, or you may request specific reports tooffers little industrial vacancy, tenants have limited choices for their coincide with our management activity.company’s growing needs. Those growing needs include more thanjust an additional need for space, but they include other cost and Tenant Interactiontime saving efficiencies such as employee retention, use of space, anduse of energy. By offering something that answers those needs in a We propose to launch our strategy by meeting with a few selectedcustom-tailored and exciting approach, we believe that the property tenants in the market. These tenants have already agreed to meetwill set itself apart from the competition. And by seeking market input with us and dream up an ideal office space in the building. This willfrom potential tenants and architects we receive cutting-edge input provide valuable insight in matching tenants with the building infrom the front lines, and unnecessary improvements and costs can be this underserved market,as there are few examples of what specificsimultaneously mitigated without the loss of value or marketability. improvements are most valuable to tenants. Second, this willThis allows our goals as a brokerage firm to be more ambitious, as not allow us create buy-in from these and other potential tenants in theonly can we seek out potential tenants who are already looking to market, and third, it will contribute to developing a buzz once they aremove, but we can also motivate tenants with newly realized potential released from confidentiality.for their space planning goals. Few, if any, competitors will be able toprovide similar benefits. 19

Marketing Strategy UPDATE Marketing Plan Broker Relations As the owners of Space Park North in the process of reviewing Over 80% of commercial leases involve brokers on both sides of the service providers you must ask yourselves this question: What can table. Avison young prides itself on our relationships with other another brokerage firm do differently that will make an impact on the brokers throughout the Nashville market. Our goal would be to leasing? A critical component in Space Park North’s leasing strategy will constantly have Space Park North’s availabilities in front of our be the marketing plan for the campus. constituents. Every broker that works this product type will receive an updated vacancy abstract every 8th business day by email as well as a We are Seasoned Professionals comprehensive marketing brochure every 16th business day by mail. This package will be kept up to date as suites are leased and vacated. The two brokers on this leasing assignment have a total of -- years of experience in commercial real estate. Space Park North will not Media be a training ground for new/junior brokers. As a whole, we are not conflicted with the marketing of other assets. Space Park South, In today’s fast paced environment where the world is getting smaller, arguably, is the only similar product type which is now at 98% the internet should be utilized to push a property in front of more occupancy. Avison Young is purely a third party service provider, people faster. We will use this tool to accent Space Park North via: therefore the firm does not own any competitive product. Finally, we are hungry for a large trophy listing and we welcome the opportunity • Avison Young’s website to prove ourselves. • Loopnet, CoStar, Xceligent Transition and Rollover • Space Park North’s own website We pledge to honor deals working and facilitating those deals currently being worked by the current service provider until those leases are These resources must be kept up to date on a regular basis just the signed. Our next step is to immediately begin reaching out to tenants aforementioned marketing brochure. whose leases come due in 2015. We intend to introduce ourselves to existing tenants and work closely with property management to see Other Centers of Influence that their needs are met to insure they renew. Airpark’s occupancy will never improve if retention struggles. Nashville is a “hot” market with a lot of people looking around. The Chamber of Commerce is a powerful tool that many prospects will use to explore what is available in Nashville. We will work directly with the Chamber and make sure they have updated information on Space Park North. Marketing Materials Reporting These items will be discussed and displayed during the interview: Last but not least, the owner of an asset such as Space Park North needs to be kept informed on a regular basis about deals, activity and Canvassing Program conditions of the market. This holds brokers accountable and keeps the owners up to speed as to what their service providers are doing Although some consider this marketing item as antiquated, we for them. This item, among many others, we would like to elaborate believe there is no substitute for putting your park in front of as many on during the interview. potential tenants as possible with a face to face meeting. Cold calling accomplishes this. Realistic Goals If these recommendations are implemented, we estimate that within 8-10 months of engagement that we can bring occupancy levels to the mid-to-upper eighties and to the mid-nineties within 12-14 months.20

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Amenities In an effort to increase tour activity at the building, we recommend a broker tour incentive. Every time a broker tours the building with a We will assist you in seeking out ideal solutions to increase parking, legitimate prospective tenant, he or she will earn a $30.00 gift card. improve accessibility, manage traffic, etc. We can do this by This will help incentivize brokers to include the asset on all of their communicating with our local contacts and community leaders. property tours. We believe that an aggressive canvassing campaign will produce prospective tenants for the property. Networking We will physically deliver building information to tenants in our We will utilize our continued communication with local Chambers of competitive buildings during the first and second phases of our Commerce and their Economic Development groups to ensure that marketing plan. we are aware of and able to connect with the newest opportunities, such as relocating companies and growing businesses. Avison Young would create a welcome center near the main entry of the building in order to achieve the highest standard in showcasing Broker Relations the potential for the space and the benefits of the location. All spaces will be clean, well-lit and common areas manicured and inviting. A major strength of the leasing and marketing team is its broker The welcome center will demonstrate our professionalism and relations. The Avison Young team has developed and maintained commitment to the project’s ultimate success by providing a red- strong, long- term relationships with the area’s top brokers. Because carpet-feel, and marketing collateral that will provide visual appeal, effective broker cooperation will be important to reaching our such as aerials, maps, videos , photos and architectural renderings if objectives, we will continue to foster existing relationships, as well as applicable. cultivate relationships with new brokers who are becoming active in this market. Our strategy also embodies the obvious, such as canvassing, broker relations, technology for online awareness and digital media. We plan To support specific deal and lease negotiations and ongoing to target key brokers in the area, those who are doing the majority of marketing efforts, one-on-one broker entertainment such as sporting the deals in the Nashville, Cool Springs, and Brentwood submarkets. events, lunch, and golf outings will be held with key members of the We have identified upcoming lease renewals and will contact brokerage community to build continued awareness of the property. those tenants. Broker networking and community involvement are a part of a UPDATE successful ongoing marketing program. The majority of all lease transactions in Cool Springs involve a tenant broker., Therefore, continuous relationship building and communication with the select brokers who focus on this area will be essential to the successful lease- up of the property. We consistently track the Tenant Representation brokers who actively work in this market and the deals they are currently working on. As incentive to get them to physically tour the property, we will host individual and group lunches at the building, discuss the building in detail and send them off with our most current marketing materials. These interactions will keep the asset at the front of their minds as they discuss opportunities with their clients, as well as serve as a source for gathering market information on prospective tenants and competitive building activity.22

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Space Park North | Old Stone Bridge GOODLETTSVILLE, TN Old Stone Bridge Loopnet Premium Listing Loopnet is a powerful marketing tool for commercial listings. Premium Listers on Loopnet are three times more likely to source a deal than Free Account listings. We will utilize this Premium Service to ensure the highest level of visibility for prospective tenants.24

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Our Team Executive Industrial Warren Smith Property Management Principal/ Managing Director Buist Richardson Sue Earnest Mick Wrigley Julia Sutherland Melanie Giaconia Vice President, Senior Property Manager Principal Principal Vice President, Operations Property Operations Brennan Pitts David Keltonic Connie Williams Senior Financial Senior Designer Manager/ Analyst Financial Reporting26

Reference Letters/ Highlights 2727

Seniority. Track Record. Time. Leasing & Property Management for Red Tail Acquisitions, LLC Buist Richardson, SIOR Sue Earnest, CCIM Principal Principal Buist Richardson is a seasoned commercial real Sue Earnest specializes in assisting Fortune 500 estate veteran skilled in third party negotiations. companies, as well as owner occupied properties, He values his relationships for the long term, as he throughout Middle Tennessee with the leasing, helps his clients navigate the waters of commercial acquisition and/or disposition of their real estate, real estate. He is proud to lead the Industrial with a focus on the sales and leasing of industrial Division for Avison Young’s Nashville office. and commercial properties in Tennessee. Her As a native Nashvillian, Buist has seen Nashville knowledge of the market, attention to detail, and progress from a sleepy city to the robust, thriving, strong work ethic have resulted in her success and cultural community it is today. Prior to joining representation of sales and leasing transactions. Avison Young, Buist was a Principal at Cushman Prior to joining Avison Young’s Nashville office, & Wakefield | Cornerstone where he specialized Sue was a Principal and broker with Cushman & in Industrial services. He has over thirty years of Wakefield| Cornerstone and previously Newmark experience in commercial real estate, experiencing Knight Frank. Sue was also Vice President/Affiliate the peaks and valleys of the industry. Broker for the Chas. Tailins Company Inc/CORFAC International, where she spent six years in sales and leasing of commercial properties, both industrial parks and office buildings. Prior to entering the commercial real estate profession in 2000, Sue worked with National Material Company, a steel coil servicing company for ten years. Here she worked in inside sales, as well as implemented and managed the ISO 9000 standards program for their Middle Tennessee service center.2288

Buist + Sue + Mel + Connie (+ Kyle) Mick Wrigley, RPA • Former Space Park North Team Experience Vice President, Property Management • Proven Engaged Communication • All Senior Team J. Mick Wrigley, RPA is a Vice President for Avison • Live and Work in the Space Park North Market Young’s Nashville office where oversees the office’s property management services. He adds 30 Melanie Giaconia years of property management experience to the company with a diversified background in office, Senior Property Manager retail, industrial, medical office buildings, and commercial associations. Mick oversees property Melanie Giaconia, a native of Nashville, is a management, building maintenance, building Senior Property Manager with Avison Young’s engineer training, project management, and Nashville office. With experience ranging from Energy Star and Experience Exchange reporting. Class A office space to warehouse properties, her Most recently, Mick was Director of Property portfolio includes Providence West Medical Center, Management with Cushman & Wakefield | Perimeter Park II, Point Place II, MetroExchange, Cornerstone. Prior to joining Cornerstone, Mick was Heritage Medical Plaza, Physician’s Plaza the Director of Property Management at Southeast (Hendersonville), Parkside Plaza I, and TN Dept. Venture, LLC where he managed various types and of Energy & Conservation. Before joining Avison classes of buildings along with several commercial Young, Melanie was a Property Manager with associations. He was also a Senior Property Cushman & Wakefield| Cornerstone. Prior to joining Manager at USAA Realty Company for nine years Cornerstone, she spent over 10 years in the retail managing class A office and industrial space and restaurant industries. totaling 5.5 million square feet. His experience includes management, operations, financial Connie WIlliams analysis and leasing of commercial buildings, extensive project management, and managing Manager/Financial Reporting building engineers. Mick holds a Brokers license and the Real Property Administration designation. Connie Williams is a Manger of Financial Reporting He serves as Past-President for BOMA Nashville and with Avison Young where she specializes in BOMA Southern Region and has earned several financial reporting. Most recently with Cushman TOBY awards during his career. & Wakefield| Cornerstone, Connie has over 30 years of experience in Accounting in the Property 2299 Management field. Her assignments have included the Property Accounting responsibilities for various institutional investors, partnerships, and individual owners. Because some clients maintain their own accounting software packages, Connie has experience with MRI, Yardi, and Skyline. Her many years and variety of experience enable her to adapt to any property accounting needs the client may request and require.

on relationships, not just transactions; on long-term performance, not just the current quarter. Whether you are seeking advice or require a detailed plan of action, whether you are an owner/investor or a business looking at your next office, industrial or retail lease, we’re here to help. Avison Young’s Nashville Office A Client-Centric Approach. Typically in this business, client relationships are approached as a Avison Young is a full-servicsaeetrociepos-mdoofmtwraennrpscayiacratlimorenidas.lsBteirgsutcfaitrutmeresfoitrrramgdaintsiipozneeadclliiyanltmiozaisnniloaggs,ienetithohefefirricbbeuy,srineetsasilinand THE AVISON YOUNG industrial brokerage, propersteyrvmicealninaeg, eomr geenogt,ravpahluicarteioginons,eorrvbicoeths.,Tahsewseeglrloauspisnovfetesntment APPROACH Principal- Led Team sales. With over 60 employeceosminpettheewNithaeshacvhilloethoefrf.iActeA, v2i8soanrYeoaucntgi,vweeindebcridoekdertoagbere.ak from these conventions in order to have a greater positive impact on Together with the firm’s Knooxuvr iclllieenatns’dsuMcceesms. phis offices, Avison Young has over 90 professionals in Tennessee, Tsoeruvsi,nitg’s ncolitejnusttsaintraenvseacrytiosne,citt’soar,soalnudtioins ltinhkeedontolyaccoliemntm’s ercial real estate firm to span the opevrnoetjreiarcleltststertaaatmteegsyuo,fnatendndeiirntcccloaunmdcemrtohsoosnuagmohwtullnetiateudrdesehrsiowpf.hnoeeddos.nTohtapt risodwuhcyeour revenue directly. We do excel at transactions—we have people who With an intimate knowledgaereoafmthoengetnhteiriendTuesntrnye’sstsoepepmrodaurkceerts,—thbeuAt tvhiesopnoinYot ius,nwge see a Nashville office is widely recboigggneirzpeidctuarse.pYroeusrtbigigiogeursp, ibcetusrte-.in-class commercial real estate services firm with outstandiWneg’rereinpbuutasitnioesnsstofobrusiludpreelartioiornssehirpvsi.cTeh,apt’sewrfhoyrmweanelcime,ineaxteedcution and delivery. silos. Our capabilities and services are structured organically, around client relationships rather than business units. Our key success measure is client satisfaction. Our principals’ Real Estate Servicescompensation is tied to it, along with long-term value creation for clients. That’s different. Dedicated to providing the most comprehensive real estate services with the highest level of professionalism and integrity, Avison Young specializes in the following disciplines: • Acquisitions & DisposAitioLnoso k a• tTOenuarntGRreopwrestehn.tation • Market Research • Multi-family Disposition • Property ManagemenAtvison Youn• g iTsatxheDfeasfteersrte-gdroEwxcinhgacnogmems ercial re• alSetsrtateegfirimc Pinlatnhneiwngorld. The firm’s rap•i d Logistics Services Subleasingwgreowcatnh oisffder•ri vcelPinernobtyds.uoFucurtrtsRhtreearptmergeoysreet,onthbtaeutiiilndodnouus trrgye’sobge•r satpSrheitiacel reAesatncaahtelyapsnridosfe/exsDpsieuorentiasDlesitaliorgeiemjonpicnreoinvge the value • Leasing & their • Investment Services businesses w• itBhuoiuldrs-taon-dSbueitcoming Avison Young• prSinacleipa/lsL.easebackEDMONTON REGINA PITTSBURGH TORONTO (2) QUEBEC CITY LONDON (2) 1978 CALGARY TORONTO NORTH MONCTON CLEVELAND MISSISSAUGA HALIFAX THAMEFSoVuAnLdLEeYd GUELPH BOSTON WINNIPEG DETROIT OTTAWA HARTFORD MONTREAL COLUMBUSVANCOUVER LETHBRIDGE HEAmMpBUloRyGees 2,100 71 SACRAMENTO MINNEAPOLIS FAIRFIELD/WESTCHESTER DUESSELDORF LONG ISLAND 800+ CHICAGO (2) FROANffKicFeUsR T 1900+ReaAl vEsistaotenPYroofueNPNsnHEEsiWWIgoLnAYJaDEOlsRERiSLnKEP2YCH0II1TA5Y RENO DENVER Avison Young SUBURBAN MARYLAND ReMaUlNEICsHtate WASHINGTON, DC Professionals LAS VEGAS 300INDIANAPOLIS Real Estate Professionals in 2008 TYSONS CORNER DALLAS RALEIGH-DURHAM (2) NASHVILLE CHARLOTTE HOUSTON MEMPHIS Property Under Approx. AUSTIN Management 80 million sf+ KNOXVILLE SAN ANTONIO TAMPASAN FRANCISCO LOS ANGELES (4) GREENVILLESOAANKLM3AA0NTDEO ORANGE COUNTY ORLANDO CHARLESTON SAN DIEGO MEXICO CITY WEST PALM BEACH (2) ATLANTA FORT LAUDERDALE MIAMI

Centers of Excellence Culture is KeyOur staff and brokers are members of the following real estate, city and government organizations: The Five Pillars of the Avison Young Culture• International Council of Shopping • Partnership 2020 Honesty and integrity Centers (ICSC) • Nashville Area Chamber of Commerce Investing in our people and • Society of Industrial & Office Realtors community• Building Owners Managers Association A principal-led business model (BOMA) (SIOR) - National Board of Directors • Nashville Downtown Partnership Elimination of service line silos• Certified Commercial Investment • Women in Commercial Real Estate – Open-source solution Member (CCIM) - National Board of Directors Member of the Executive Board• National Association of Industrial and Office Properties (NAIOP)Avison Young: Select Regional Industrial Landlords AY Day of GivingStatistics Avison Young’s Nashville office currently leases and manages a 7+ million square foot portfolio of over 50 office, retail and industrial properties throughout Tennessee. 70% of our business is dedicated to landlordCumulative from January 2014 representation and the other 30% is dedicated to tenant representation. $315 730+ 3.9 5.2 31 MILLION Lease & Sale Transactions MILLION MILLIONIn Transactional Volume Square Feet Sold Square Feet Leased

Fees & CompensationLeasingAvison Young Only Avison Young & Outside BrokerNew Leases and Expansions Renewal: 4% of gross rental income over term New Leases and Expansions: 6% of gross rental income over term 2% of gross rental income over term Renewal: 4% of gross rental income over termManagementThe sole compensation to Operator for the management services it provides to Owner hereunder shall be 1.85 percent of the gross revenues ofthe property, with a minimum monthly free of $4,000. As used herein, “gross rents” shall mean all monies paid by tenants of the Property to Ownerpursuant to their leases.Engineer CostDue to the size of the building, a maintenance engineer will be required on-site. We propose retaining Kyle Keataley at his current salary. In the eventhe is used on a limited basis at another Avison Young location, Avison Young will reimburse Property at $45 per hour.Project Management FreeWe recognize that using project management services for driving cost savings, specialization, up front value design engineering, and overall riskmanagement will need to be approved on a project by project basis by Red Tail Acquisitions, LLC and believe it has great value to deal making andservicing of the Owner/Occupier.Project Management Services will by provided on a sliding scale as follows:$0-$10,000 0%$10,000+ 3% For more information: Sue Earnest, CCIM Melanie Giaconia Mick Wrigley Principal Senior Property Manager Vice President, Property Management Buist Richardson, SIOR 615.727.7421 615.727.7408 615.727.7414 Principal [email protected] [email protected] [email protected] 615.727.7417 [email protected]