3607 parkway lane bov

3607 Parkway Lane,Norcross, GA 30092Prepared By:

Jeff Henson and Chip Sipple3405 Piedmont Rd NE, Suite 450

Atlanta, GA 30305 Presented to Mr. Alex Huang

B R O K E R O P I N I O N O F V A L U E

2

3607 Parkway Lane,Norcross, GA 30092

October 29, 2015

Mr. Alex Huang

RayBio Tech

3607 Parkway Lane

Norcross, GA 30092

Re: Royal Peachtree Corners – Building Two” – 3607 Parkway Lane, Norcross, Georgia 30092 – Broker Opinion of Value (BOV)

Dear Alex:

Lincoln Property Company is pleased to present this Broker Opinion of Value for Royal Peachtree Corners – Building Two located at 3607 Parkway Lane, Norcross, Georgia 30092.

Lincoln Property Company has distinguished history of acquiring, developing, managing, leasing and disposing of commercial properties through the Southeast. Lincoln’s lines of business include property management, leasing, brokerage, acquisitions, dispositions, development, construction management advisory, services, and green building services.

Selection of Lincoln Property Company will bring all of the financial strength and stability of its family of companies to this assignment. Lincoln Property Company is currently ranked in Commercial property News as the #1 Real Estate Services firm in the county and we believe we are uniquely qualified to handle this assignment for Prudential Asset Resources, Inc.

We appreciate the opportunity to present this broker opinion of value and look forward to working with you.

Sincerely,

jeff Henson Chip SippleJeff Henson

Senior AssociateChip Sipple

Senior Investment Analyst

3

LPCTodayLincoln Property Company is one of the largest and most respected diversified real estate services firms in the United States and is the only national real estate company to rank concurrently in the Top 10 lists of Management/Ownership of Office, Industrial and Multi-family.

With an international footprint that includes offices in 38 cities across the United States and 6 cities in Europe and South America, Lincoln remains a privately and closely held company. As a matter of corporate intention and philosophy, the company has operated virtually debt-free since the early 1990’s, uniquely positioning itself to provide focus and performance as well as consistency and stability to its clients and employees.

This corporate philosophy combined with 50 years of global real estate experience and the ability to “think like an owner” is what differentiates Lincoln from other service providers and real estate companies. The company’s history of developing and acquiring assets for its own account – as well as providing a full cadre of services to other owners over the span of the last four decades – has created a culture throughout the firm whereby each employee treats each third party assignment as if it were owned by the company. Consequently, the company’s goal is to hire, train, and retain employees that “take ownership” in each and every assignment.

LPC FACTS:• 50 Year old company. Privately Held, consistent

ownership.

• 180 million + SF managed/leased

• 7,000 employees

• 125,000 Multi-family units managed

• 38 Offices in U.S. and 6 offices in Europe

• Lines of business: Management, Leasing, Brokerage, Acquisitions, Dispositions, Development, Construction Management and Advisory Services

• Top Ranked Developer, 5th Largest Property Manager in U.S., Commercial Property News (2008)

• $7 Billion of office and industrial acquisitions over the last 15 years

• Lincoln’s institutional client list includes such names as American Realty Advisors, Invesco, Morgan Stanley, Prudential, RREEF, TIAA-CREF, UBS and many others

LPC Headquarters - Dallas, TX

5

SOUTHEASTRegionLincoln’s Southeast regional organization was established in 1973 and has grown to become one of the firm’s largest and most successful operations through the management, acquisition and development of over 13 million square feet of commercial property valued at over $1.25 billion.*

*Excludes any property owned, managed or leased by Lincoln-Harris, Lincoln Property Company’s operating group covering the Carolinas.

• • Lincoln Southeast leads the way for Lincoln Property company as a major third party service provider with a focus on office, industrial and retail investment properties and corporate property services

• • • Lincoln currently manages approximately 13 million square feet of

commercial property in the Southeast predominantly for third party clients• • • Lincoln serves the Southeast through 3 regional offices and 60 client service

offices employing over 100 full time professionals

38% OWNED

62% THIRD PARTY

PERCENTAGE OF REVENUES FROM OWNED AND THIRD

PARTY SERVICES

6

Atlanta, GA10 MSF under management

Orlando, FL12 MSF under management

Miami, FL2 MSF under management

PROPE R T Y OPE R AT IONS S E RV IC E S

• Property Management• Facilities Management• Building Engineering• Construction and

Project Management• Due Diligence –

Market and Physical• PropertyLogic©

• LEED/Sustainable Building Services

T R A NS AC T ION S E RV IC E S

• Investment Sales – Acquisition and Disposition

• Project Leasing and Landlord Representation

• Build-to-Suit• Tenant Representation

and Consulting• Land Sales• Corporate Solutions

F I NA NC I A L S E RV IC E S

• Asset Management• Special Asset/

Workout Services• Receivership• Loan Servicing• Due Diligence –

Economic and Financial• Accounting and

Reporting

Third Party ServicesOur goal is to create long-term relationships with owners of commercial real estate by providing greater operational efficiencies, tenant satisfaction and enhanced value to the properties they own. In addition, we strive to be a resource of deal flow and due diligence assistance to those owners interested in expanding their investments in the Southeast. For our corporate clients we offer assistance and expertise in

all aspects of a corporation’s real estate portfolio.

7

VALUATIONOverviewWe have taken this opportunity to evaluate the asset known as “Royal Peachtree Corners – Building Two” (the “Property”) located at 3607 Parkway Lane in the Peachtree Corners office/industrial submarket of Atlanta, Georgia to determine a broker opinion of value (BOV). Trusting our 30 years of experience in commercial real estate across many markets within the Southeast and our intimate knowledge of Atlanta, GA and the Property, we were able to place a value range to the Property by using general assumptions as it relates to the specific submarket and product type.

VALUATION ANALYSIS

We have analyzed the Property’s value under two different scenarios: (1) the Property assumed as vacant and sold to an owner/user and (2) the Property sold to an investor assuming a sale/leaseback scenario between the tenant and the buyer. By utilizing both approaches, we were able to identify our ultimate opinion of value for the Property. The value ranges utilizing these approaches are outlined below and detailed further in the following pages. Understanding the different value ranges resulting from each approach is crucial in ultimately setting our final range of value.

8

SCENARIO 1 – OWNER/USER SCENARIO: PROPERTY ASSUMED TO BE VACANT

The sales comparison approach was utilized to understand the base value of the building if the tenant was to vacate and an owner/user would buy the Property in the future. We analyzed sales comps for assets of similar size, location and genre in the North Fulton and Peachtree Corner submarkets of Atlanta, Georgia. Below is a table that outlines eight (8) sales comparable sales that outline a range of values for properties of similar genre/quality:

As you can see from the table, the value ranges between $47.27 – $73.01 psf with an overall average of $58.07/sf.

Based on our knowledge of both the market and this specific asset, we would expect a likely range of value, if 100% vacant, to be $65.00-$70.00 PSF ($2,380,625.00 to $2,563,750.00).

DATE PROPERTY SUBMARKET BUILT RSF OCC SELLER BUYER PRICE PSF

10/153145 Avalon Ridge Place - Avalon Center Office Park

Norcross/Peachtree Corners

1997 36,225 SF 10.0% Equity Office / Blackstone Ruben Lublin, LLC $2,050,000 $56.59

09/15 6191 Atlantic BlvdNorcross/Peachtree Corners

1984 33,850 SF 100.0% Concilio International Centro Cristiano Evangelico

Jorge A. Franco - Ayala $1,600,000 $47.27

07/15 225 Scientific Dr - Technology Park


1979 39,550 SF 0.0% Syiek Management Company, LLC

Level 3 Communications, LLC

$2,700,000 $68.27

07/15 5085 Avalon Ridge Pky - Avalon Ridge Business Pk


1997 35,040 SF 79.8% GE Commercial Finance Real Estate

The Blackstone Group LP $1,997,300 $57.00

04/151420 Oakbrook Drive - Oakbrook Place, Building 1420


1996 22,539 SF 0.0% Bernard Leviton CEKE Properties, LLC $1,156,400 $51.31

10/14 3135 Avalon Ridge PlaceNorcross/Peachtree Corners

1997 16,983 SF 85.0% General Electric Capital Custard Insurance Adjusters $1,240,000 $73.01

06/14 2831-2837 Peterson Pl - Bldg 6


1981 20,160 SF 100.0% DCT Industrial Trust Gorin Harper McCoy $950,000 $47.12

01/1430 Technology Pky S (4 Properties) - PEM Park Foreclosure


1998 252,759 SF 41.3% TriStone Realty Management Rockwood Real Estate Advisors $16,170,000 $63.97

TOTALS AND AVERAGES 457,106 SF 55.28% $27,863,700 $58.07

9

SCENARIO 2 – SALE/LEASEBACK SCENARIO: PROPERTY ASSUMED TO BE UNDER LONG TERM NNN LEASE

Prior to outlining the Property’s value under a long term lease or sale/leaseback scenario, we first want to outline the items that investors will take into consideration when purchasing the Property under this scenario:

• Tenant’s creditworthiness – strong credit and improving financial history is very important

• Length of term – 12 to 15 years term length most desired; 10 years is typical

• Starting rental rate – should be at market or slightly below market

• Annual escalations – 2.00-3.00% annual rent escalations highly sought after

• NNN Lease – Absolute NNN responsibilities (owner only responsible for roof/structure)

• Yield - investors will look for going in and, sometimes, blended yield over the lease term

Based on our understanding of the North Fulton market, we believe that a market rate for similar type of product in this location would be $10.50 – $11.50/SF NNN. With this applied leasing rate range, the Property could yield a net operating income (NOI) of approximately $353,060 – $386,690, assuming the building is 33,625 square feet.

In our experience, for a property of this size, location and vintage, and making assumptions for the credit that we believe to be in place based on our conversations, (Note: understanding the credit for the company will be a key factor to our valuation range) we believe that a likely investor would look to value the property between a 7.00 – 7.50% going in cap rate.

Based on these assumptions, we have placed an approximate value under this scenario between $4,707,500 – $5,525,000 or $140.00-$165.00 PSF.

In summary, it is clear the value that is created for the Property under the sale/leaseback scenario is significant. We believe that given the location, quality construction, improving market fundamentals, the history of the building, and the financial strength that can be shown, the Property will be well received within the market place if it were to be listed for sale with a long term lease in place.

As always, we appreciate the opportunity to offer an opinion of value for this asset and remain at your service to provide any additional information necessary to allow you to complete your analysis. Upon receipt/review, please feel free to call us to discuss certain assumptions and resulting values.

10

Lincoln Property Companyis pleased to announcethe recent sale of 4 single-storyOffice/Flex Buildingsin Northeast Atlanta

11455 Lakefield DriveDuluth. GA 3009759,746 SFSOLD: $46.00/SF

3135 Avalon Ridge PlaceNorcross, GA 3007116,983 SFSOLD: $72.00/SF

1420 Oakbrook DriveNorcross, GA 3009322,359 SFSOLD: $56.00/SF

3145 Avalon Ridge Place Norcross, GA 3009335,000 SFSOLD: $58.00/SF

SOLD

SOLD

SOLD

SOLD

11

DISPOSITIONServicesLincoln Property Southeast prides itself on being the “one stop shop” for our valued clients. Our commitment to maintaining relationships with a wide range of commercial real estate owners, allows us to be a trusted advisor for them from “cradle to grave” in an asset’s life cycle. Not only do our clients appreciate our management and leasing services, our investment sales capabilities offer a seamless platform for our clients that allow for streamlined asset disposition.s.

Over the past 7 years, Lincoln Property Company Southeast has transacted over 3.0 million square feet of commercial assets totaling over $185 million in investment sales. Given our broad platform of experience in asset classes, we are able to execute the sale of properties including: office, industrial, retail, land and data center properties.

• Lincoln’s approach is an ownership mentality in managing, leasing and disposing of your real estate.

• Lincoln has forty-five plus (45+) years of experience in the industry.

• Lincoln provides the full spectrum of real estate services through a coordinated organization.

• Lincoln’s significant presence in the Southeast and throughout the U.S. will ensure the building receives maximum exposure both locally and nationally.

• Lincoln will assign professionals to your building and these professionals will be dedicated to your asset.

• Lincoln can substantially enhance the image of the project through its marketing programs, brand name and reputation for quality and professionalism.

• Lincoln’s structure emphasizes a team approach across management, leasing and disposition services.

YEAR $ AMOUNT SOLD

# OF DEALS

2009 $2,041,000 2.00 2010 $6,968,760 3.00 2011 $21,091,000 6.00 2012 $13,734,326 7.00 2013 $17,075,000 4.00 2014 $54,390,000 4.00 2015 $69,257,104 6.00

$184,557,190 32.00

12

From our initial contact with our client, we are there for you. From evaluating your property to contract negotiation to closing, our only focus is on representing you the best way we know how.

We are dedicated to assisting you with extensive knowledge of the markets, 45 plus years of experience, or proprietary and extensive database of contacts, and our proven record of success. We know we can help you in all your disposition needs.

We k n o w t h e m a r k e t .We k n o w t h e v a l u e .

We k n o w t h e b e s t u s e .We k n o w m a r k e t i n g .

We k n o w t h e p r o c e s s .We k n o w t h e b u y e r s .

13

YR CLOSED ASSET SUBMARKET TYPE SIZE (SF) STATUS SALES PRICE SALES PRICE

(SF) YR BUILT OCC. INVESTOR/USER SELLER BUYER

2009 4970 Fulton Industrial Boulevard Atlanta - Fulton Industrial Industrial 157,000 Closed $1,436,000 $9.15 1978 0% User GE Capital Whitlock Industrial Holdings

LLC

2009 250 Cinema View Way Atlanta - Woodstock Restaurant 6,167 Closed $605,000 $98.10 1999 0% User GE Capital Bella Roma Inc.

2010 Lakeview 400 Atlanta - Peachtree Corners Office 64,904 Closed $4,218,760 $65.00 1998 0% user Sentinel Lakeview Realty LLC CSI Laboratories

2010 239 Ivan Allen Blvd Atlanta - Downtown Industrial/Flex 10,000 Closed $1,800,000 $180.00 1975 0% User Ferber Corporation Good Samaritan Health Center LLC

2010 6760 Jimmy Carter Blvd Atlanta - Norcross Industrial/Flex 44,249 Closed $950,000 $21.47 1982 40% Investor Capmark Rich Kleven (Individual)

2011 Woodside Center 100 Atlanta - North Fulton office 38,400 Closed $2,688,000 $70.00 1996 0% User Land Investment Partners RCM Partners LLC

2011 3060 Premiere Parkway Atlanta - Duluth Industrial 120,000 Closed $4,500,000 $37.50 1998 0% User GE Capital New Bremen Investments LLC

2011 610 Waterfront Drive Atlanta - Fulton Industrial Industrial 75,000 Closed $700,000 $9.33 1972 0% User Glass Ratner Management Realty Advisors LLC Flood Brothers Inc.

2011 Extended Stay America Spartanburg, SC office 125,000 Closed $12,000,000 $96.00 2001 0% investor Extended Stay America George Johnson (Individual)

2011 3375 Martin Farm Road Atlanta - Suwanee Industrial/Flex 21,242 Closed $903,000 $42.51 2004 0% User GE Capital HT Beauty Assoc. Inc.

2011 1880 West Oak Parkway Atlanta - Marietta Industrial/Flex 6,237 Closed $300,000 $48.10 2005 0% User GE Capital James Tucker / Jason Fernandez

2012 Parker Court Business Center Atlanta - Stone Mountain Industrial/Flex 243,096 Closed $7,350,000 $30.23 1981 - 1989 52% Investor GE Capital JP Partners

2012 Corporate Campus - 6435 Shiloh Rd Atlanta - North Fulton office 56,198 Closed $2,079,326 $37.00 1998 0% User Compass Real Estate

Services Flight Display Systems

2012 105 McIntosh Crossing Atlanta - Fayetteville Office 15,656 Closed $750,000 $47.90 2004 0% User GE Capital Anthony's Dirt - Corporate LLC

2012 255 Homer Street Atlanta - Commerce Industrial 90,000 Closed $205,000 $2.28 1959 0% Investor GE Capital Black Bear Commercial Properties

2012 4335 Wendell Drive Atlanta Industrial 194,991 Closed $1,275,000 $6.54 1979 0% User Printpak Inc. S&P Atlanta LLC

LPC INVESTMENT SALESHistory

CLOSED

14

CLOSED (CONTINUED)YR

CLOSED ASSET SUBMARKET TYPE SIZE (SF) STATUS SALES PRICE SALES PRICE (SF) YR BUILT OCC. INVESTOR/

USER SELLER BUYER

2012 1166 Athens Tech Atlanta - Elberton Office 21,500 Closed $1,250,000 $58.14 2001 100% Investor GE Capital Andsmith Commercial LLC

2012 390 Brogdon Road Atlanta - Suwanee Office/Flex 16,740 Closed $825,000 $49.28 2000 0% User GE Capital Home South Communities LLC

2013 1530 Ellsworth Industrial Blvd. Atlanta Industial/

Showroom 80,344 Closed $2,000,000 $24.89 1955 34% Note GE Capital EPICITY Inc.

2013 2080 Brentwood Street Greensboro/High Point (NC) Office/Flex 28,800 Closed $425,000 $14.76 1989 0% User GE Capital RFLF, LLC

2013 Silhouette Midtown Atlanta - Midtown Office 116,637 Closed $11,550,000 $99.03 1964 80% Investor Wells Fargo Bank Dau Global Investments

2013 Venture Center Atlanta - Chamblee Office 39,185 Closed $3,100,000 $79.11 1985 100% Investor Suntrust Wyatt Investment Group

2014 1505 S Main Street Greensburg, IN Industrial 375,000 Closed $850,000 $2.27 1975 0% Investor Printpak Inc. Simfall LLC

2014 101 Business Park Boulevard Columbia, SC Office 57,375 Closed $2,300,000 $40.09 2001 35% Investor GE Capital Red Hills Holdings LLC

2014 1001 Windward Concourse Atlanta - North Fulton Data Center /

Office 184,553 Closed $50,000,000 $270.92 1986 100% Investor GE Capital Carter Validus

2014 3135 Avalon Ridge Place Atlanta - Peachtree Corners Office 16,983 Closed $1,240,000 $73.01 1997 20% User GE Capital Custard Insurance

2015 Lakeside Office Park Atlanta - Central Perimeter Office 398,916 Closed $40,500,000 $101.53 1970's 40% Investor MetLife Investments Crocker Real Estate

Partners

2015 11455 Lakefield Drive Atlanta - Johns Creek Industrial/Flex 59,746 Closed $2,730,000 $45.69 1990 46% User/Investor GE Capital Hezli Holdings LLC

2015 1029 S Hamilton Street Dalton - Georgia Industrial 164,000 Closed $525,000 $3.20 1920 0% User Rialto Capital Management Lynx Metals

2015 1420 Oakbrook Drive Atlanta - Northeast Industrial 22,359 Closed $1,252,104 $56.00 1996 0% User BL Norcross LLC CEKE Properties LLC

2015 2700 Delk Rd Atlanta - Northwest Office 25,000 Closed $1,250,000 $50.00 1986 0% user ECI Group Alan Barge

2015 City Crossing Warner Robbins, GA Retail 190,433 Under Contract $23,000,000 $120.78 2000 86% Investor Situs Holdings LLC D&J Management

TOTALS 3,065,711 $184,577,190

15

CURRENTLY MARKETING/PENDINGYR

CLOSED ASSET SUBMARKET TYPE SIZE (SF) STATUS SALES PRICE SALES PRICE (SF) YR BUILT OCC. INVESTOR/

USER SELLER BUYER

2015 Venture Pointe Atlanta - Duluth Retail 335,151 Initial Bids due 7/22/2015 $14,000,000 $41.77 2001 85% Investor Situs Holdings LLC TBD

2015 Parker Court Business Center Atlanta - Stone Mountain Industrial/Flex 243,358 Initial Bids due 7/22/2015 $10,000,000 $41.09 1980's 52% Investor JP Partners TBD

2015 3145 Avalon Ridge Place Atlanta - Peachtree Corners Office 36,225 Marketing $2,354,625 $65.00 1997 10% User GE Capital / Blackstone / EOP TBD

2015 3319 N Oak Extension Valdosta - Georgia Retail (condo) 9,358 Marketing $750,000 $80.15 1920 0% User Rialto Capital Management TBD

2015 5085 Avalon Ridge Atlanta - Peachtree Corners Industrial/Flex 35,040 Marketing $2,277,600 $65.00 1997 80% Investor/User

GE Capital / Blackstone / EOP TBD

2015 Southlake Corporate Center Atlanta - Morrow Office 57,826 Marketing $3,469,560 $60.00 1989 61% Investor GE Capital / Blackstone / EOP TBD

Henry County Land Parcel Atlanta - Henry Countay Land 20 acres Marketing $1,600,000 $80,000 / acre N/A N/A Investor Great Dane Trucking TBD

2015 Pleasant Hills Atlanta - Duluth Retail 282,137 Pending $11,000,000 $38.99 2001 26% Investor Situs Holdings LLC TBD

TOTALS 420,586 $21,451,785

404.266.76003405 Piedmont Rd NE, Suite 450Atlanta, GA 30305

3607 parkway lane bov

Documents