Minkles Broadpointe LLC

Broadpointe Industrial Park Executive Summary

March 2017

Aerial photograph of Broadpointe Industrial Park and the Asheville Regional Airport (AVL) from June 2015.

The aerial shows the French Broad River, NC Hwy 280 connection with Interstate 26, Pisgah National Forest to the

west,and surrounding industrial companies UPM Raflatac, Continental, Electrolux, Raumedic AG, Empire

Distribution and Sierra Nevada Brewing Company.

For Additional Information Contact

Andrew Tate Brittany Brady

Henderson County Partnership for Economic Development

330 N.King Street Hendersonville, NC 28792

828.692.6373

INTRODUCTION

Broadpointe Industrial Park is a 125 acre industrial park that was initially

developed in the mid 1990’s by the Cadgene family. Since that time,

Northern Henderson County has become the North Carolina home to over

ten companies, including Sierra Nevada Brewing Company, Continental

Automotive, UPM Raflatac, Empire Distributors and Raumedic AG.

Minkles Broadpointe is one of the last undeveloped parcels in Broadpointe

Industrial Pak. The site has access to public and private infrastructure, major

east-coast transportation arteries and is adjacent to the Asheville Regional

Airport (AVL). The Minkles Broadpointe site is visually striking, positioned

close to the French Broad River with views to Pisgah National Forest. This

executive summary is designed to serve as a concise summation of the

property - focused on mitigating risk and providing defined information

relating to development. Supporting documentation is available upon

request.

BACKGROUND

The Minkles Broadpointe site was identified as one of the best available

industrial sites in Buncombe and Henderson Counties and the process to

acquire the property was finalized in late June 2015. The reasoning for

focusing on Broadpointe Industrial Park was best summed up by Martin

Bayer, Raumedic CEO, who selected the park in the Spring of 2015 as the

site of their new US headquarters and production facility. "We really fell in

love with the area," Mr. Bayer stated. "For us, Henderson County provides

an experienced and skilled workforce and the ideal business environment for

our investment."

During the due diligence process, ownership identified and addressed items

that would improve the marketability of the site and compress the timeline

for future industrial development. This process included obtaining a current

deed and survey, legal title searches and identification of easements and

right-of-ways. Other third-party verifications included the completion of a

Phase I and Phase II environmental site assessments,

geotechnical/subsurface reports, the development of a site plan and the

establishment of preliminary site development costs. Most of this work was

coordinated through WGLA Engineering PLLC, the pre-eminent civil

engineering firm in the area. With the assistance of WGLA, ownership

conducted a thorough review of these due diligence items, including

confirmation that the site had access to water, wastewater, electricity, natural

gas and telecommunication service.

SITE INFORMATION

Site Size: 15.0 acres (35.15 acres total)

Address: 69 Wonder Way, Town of Mills River, NC

County: Henderson

Utilities: All required utilities are either on-site or in the right of

way along Broadpointe Drive.

PROPOSED BUILDING

Manufacturing or Distribution Building

Proposed building up to 175,000 sf

30' clear height

ESFR sprinklers

1 dock door per 10,000 sf of space

5-8% office

Parking for 150 people. Can be expanded.

Trailer storage.

Rental Rate

$4.75/sf triple net, to be adjusted based on credit, term and cost. If the

tenant has exceptional credit, requires all or a substantial portion of the

building and wants a long term lease, the rate could be

lower. Additional and/or over-standard finish requirements would be

amortized over the term of the lease.

Construction Time

The site has a preliminary grading plan, preliminary stormwater

management plan and grading permits in place. Grading could

commence immediately upon acquisition. Building time would be 4 - 5

months, depending on finish requirements and availability of materials.

Site Plan Options

One potential site option for a 150,000 sf industrial building.

Second potential site option for two industrial buildings.

MINKLES BROADPOINTE - RISK MITIGATION

Documentation of Title, Boundary, Deed, Rights -of- Way, Easements, etc.

A thorough legal review and 85 year title search of the property uncovered no

recorded deeds of trust or encumbrances and states that the site is vested

with good, marketable, fee simple title with the exception infrastructure

rights­ of-way (power lines, gas line). A survey from June 2015 is available.

Phase I Environmental Site Assessment

ECS Carolinas LLP, a licensed engineering and environmental services firm,

completed a Phase I Environmental Site Assessment and a Phase II

Environmental Site Assessment on March 23, 2015 that suggested the need

to remove a limited amount of soil resulting from a leaking above ground

diesel storage tank that had been used in the original farming operation

conducted on the site. A final Soil Remediation Report was submitted on

June 1, 2015 that stated that the site was clean and with no further evidence

of recognized environmental conditions.

Geotechnical Review & Assessment

ECS Carolinas LLP also performed subsurface and geotechnical work

associated with the property. The assessment was completed on April 16,

2015 and included a visual reconnaissance of the property and the

performance of seven widely-spaced soil borings at depths ranging from 10

to 13 feet. Soil boring locations were established in the field by personnel

from WGLA Engineering. The final review of March 2015 work resulted in a

favorable assessment, indicating that the soils at the site appear suitable for

support of the proposed industrial building and pavements using conventional

construction techniques. The on-site soils should be able to be excavated

using conventional earthmoving equipment and are generally suitable for re-

use as fill. Additionally, the proposed building can be supported on

conventional shallow foundations bearing in properly evaluated and approved

alluvium and/or new engineered fill.

Stormwater Management

Designing a traditional stormwater basin or a bioretention cell based on recent

development in the industrial park would add approximately $32,000 per acre

to the cost of development. Given the location of the site along the French

Broad River, utilizing the adjacent 20 acres of land for stormwater

management with designed grading could lower the cost of stormwater

management to less than $8,500 per acre, which would equate to a savings of

approximately $350,000.

Grading Permits

Ownership has obtained a letter of approval from NCDENR dated July 15,

2015 that expires three years from the date of issue which would enable the

immediate initiation of site grading. Those permits are transferrable and

renewable if required.

INFRASTRUCTURE

Electrical Service

The Minkles Broadpointe site is situated within the Duke Energy electrical

territory. There are 12.5kV and 115 kV three phase power lines that

serve the site using overhead transmission lines. Duke Energy is the

largest electric utility in the United States, with 7.1 million customers.

Electricity is delivered using a combination of hydro-electric, nuclear, coal

and renewable energy sources.

Natural Gas Service

PSNC Energy has a 4" plastic distribution line located along Broadpointe

Drive which has a design operating pressure of 60 psi.

Water Service

Water service is provided by the City of Asheville. Water is committed

and permitted from the City of Asheville. The park is served by a 12"

waterline that extends into the park and originates at the City's 24"

waterline at NC-280. Normal operating pressure on this 12" waterline is

130 PSI and the current reserve capacity available to serve the park

exceeds 1 MGD.

•

Wastewater Service

Wastewater is committed from the Cane Creek Sewer District. An 8"

designated, gravity line has been extended to the site and is situated in

close proximity to the French Broad River. Wastewater is treated by the

Metropolitan Sewerage District located in Woodfin, North Carolina,

approximately 15 miles from the property. The current capacity for the

regional system is 40 MGD; peak utilization of the facility is approximately

23 MGD; resulting in excess capacity of 17 MGD.

Telecommunications

AT&T fiber optic cable is located along Broadpointe Blvd. They offer a

full range of U-verse commercial services including internet transport

speeds up to 75 Mbps. If needed, AT&T can pair bonding of their fiber

optic lines which will double the speeds available up to 1.5 Gbps.

TRANSPORTATION & ACCESS

Interstate Access

Interstate 26 serves as the primary transportation route to service the

region. The I-26 exit is located 2.4 miles from the Broadpointe Industrial

Park entrance, via 4-lane, divided NC Hwy 280. Other nearby interstates

include I-40 (10 miles), I-85 (50 miles), I-81 (85 miles), I-77 (111 miles), I-75

(123 miles) and I-20 (140 miles).

In May 2014, the North Carolina Department of Transportation began work on

an $8.8 million project to change the traffic pattern at Exit 40 where NC

Highway 280 crosses I-26 to what is called a diverging diamond interchange.

When completed, the unusual road layout will allow motorists to make most

left turns in the area without having to cross in front of traffic coming in the

opposite direction. This improvement will greatly enhance traffic flow moving

south along NC Highway 280. The entire project, including a re-vamped

entrance to the Asheville Airport, is scheduled for completion in late 2016.

Broadpointe Drive - Access Road

Access to Broadpointe Industrial Park is provided utilizing NC Highway 280

(Boylston Highway), a state-controlled and maintained four-lane, divided

highway, which connects to Broadpointe Drive. The NCDOT has committed

to consider the installation of a signalized intersection designed to enhance

access and safety. Access to the site is also available by exiting Highway

280 at Ferncliff Drive and turning west on Old Fanning Bridge Road.

The completion of the final segment of Broadpointe Drive has been initiated

by the NC Department of Transportation and a request for funding was made

on March 26, 2015. The improvements will consist of:

Widening the existing Broadpointe Drive from a gravel road to provide a

24 paved roadway;

Replacement of Bridge No. 107 with a Reinforced Concrete Box

Culvert on an adjusted grade to provide an improved vertical alignment

to make the grade more truck accessible.

The project is being coordinated directly by the NC DOT and work is

projected to commence in early 2016.

Air Service

Broadpointe Industrial Park is in close proximity to the Asheville Regional

Airport (AVL). The airport serves about 2,000 passengers a day, inbound

and outbound, with 22-25 daily flights on Delta, US Airways, United and

Allegiant, which offer direct flights from Asheville to eight cities: Atlanta,

Charlotte, Chicago, Detroit, Newark, New York, Orlando and Philadelphia.

Greenville Spartanburg (GSP) is a 45-minute drive away, and Charlotte

Douglas International (CLT) is 1.5 hours away.

On August 8, 2014 Asheville Regional Airport (AVL) broke ground on the

biggest construction project since the airport was originally built, titled Project

SOAR: Significant Opportunity for Aviation and the Region. The 5-year, 4-

phase project, slated for completion in 2018, will result in a new replacement

runway, a second taxiway and 40-plus acres of land suitable for aeronautical

development. The planned improvements will enable the airport to add

flights, attract additional cargo flights and enhance the region’s accessibility

for business relocation.

Deep Water Ports

The park is located within 311miles of three deep-water ports which

include the Port of Charleston, SC (246 miles), Port of Savannah, GA (276

miles) and Port of Wilmington, NC (311miles).

Greer Inland Port

Is a new intermodal facility that is owned and operated by the SC Ports

Authority with rail service provided by Norfolk Southern. Located 212 miles

from the Charleston port and 65 miles from the Minkles Broadpointe site, rail

service is provided five days a week and the facility can provide 40,000 lifts

per year with the ability to double the capacity.

Rail Service

Broadpointe Industrial does not have plans for direct rail service and

access, however rail could be provided utilizing an off-site rail transload

location in partnership with Norfolk Southern Corporation/Watco.

Automobile Manufacturing Plants

During the past twenty years, four European car manufacturing operations

have been or will be established in the Southeast US. Minkles

Broadpointe provides a central location for OEM companies interested in

providing goods to any or all of the manufacturers. The site is located 61

miles from Greer, SC (BMW), 221 miles from Chattanooga, TN

(Volkswagen Group), 223 miles from Ridgeville, SC (Volvo) and 346 miles

from Birmingham, AL (Mercedes Benz).

LAND USE

Mills River Zoning

Ownership obtained a zoning letter from the Town of Mills River dated March

23, 2015 that states the property is zoned MR-Light Industrial and is

compatible with a wide range of manufacturing and distribution uses.

Additionally, the letter states that any future code changes would not remove

any uses currently permitted and operating at the site.

Design Guidelines

While Broadpointe Industrial Park is an industrial development that

promotes quality, stewardship, job creation and encourages the most

current development and operational Best Management Practices

(BMP's), there are no set design guidelines that limit development nor

covenants that restrict operation.

APPLICABLE TAXES

Entity Tax Rate

Henderson County $0.5136 per $100 of assessed valuation

Town of Mills River $0.1124 per $100 of assessed valuation

Town of Mills River Fire District $0.900 per $100 of assessed valuation

North Carolina Personal Income Tax 5.75% (reduced in 2015)

North Carolina Corporate Income Tax 5.0% (reduced in 2015)

Inventory Tax No inventory tax

Sales Tax on Utilities No sales tax on utilities

DEMOGRAPHICS

Facts Henderson

County

Buncombe

County

Population, 2016 estimate 114,209 250,539

Population, % change from 4/1/2010 to

7/1/2014 4.1% 5.1%

Population, between ages of 18 and 65 49% 57.5%

High School Graduate or higher 87.5% 89%

Bachelor’s Degree of higher 27.7% 33.8%

Housing Units (2015) 55,614 114,556

Homeownership Rate (2009 – 2013) 74.3% 64.5%

Median Household Income (2009-2013) $44,815 $44,713

Source U.S. Census Bureau: State and County Quick Facts

Revised: Friday, 29-May-2015

BROADPOINTE INDUSTRIAL PARK AND IMMEDIATE AREA

Area Companies

Sierra Nevada Brewing Company specializes in the development and

production of craft beer. The North Carolina facility represents the

company's east coast facility. The operations encompasses

approximately 300,000 square feet of office, production, warehouse and

visitor facilities. Estimated cost of development exceeded $175 million.

Continental Automotive Systems Group - Continental is an international

automotive supplier, tire manufacturer, and industrial partner. The Mills River

facility operates in the Chassis & Safety division. In 2013, the company

expanded operations by 125,000 square feet and is now 335,836 square feet

in size.

UPM Raflatac - a Finnish company that makes pressure sensitive labels. The

facility is currently 237,135 sf in size.

Federal Express Ground Distribution – a 90,000 square foot facility.

Empire Distributors - beer and wine distribution, construction completed in

2014, developed a 171,833 sf distribution facility.

American Coating / Prince Manufacturing – the facility is 107,550 square

feet in size.

Smart Products, Inc. (announced in July 2016) – announced a new

manufacturing operation in Broadpointe Industrial Park.

Raumedic AG – opened 2016 - a German manufacturing company that

makes polymer components for the medical industry is building a 75,000 sf

initial phase and plans for a 75,000 sf expansion.

GF Linamar – under construction 2017 – a joint venture between Georg

Fischer AG and Linamar Corporation is building a state-of-the-art aluminum

die casting operation in Ferncliff Park to provide components to the

automotive industry.

Henderson and Buncombe County Relocations and Expansions- 2012 to 2015

New Belgium Brewery (2013) - established a craft brewery and distribution

location with an estimated cost of $100 million for site and building.

GE Aviation – estimated at $100 million, built 150,000 sf manufacturing

building.

Legacy Paddle Sports (2012) – built new manufacturing / distribution building

in Henderson County.

KYOCERA Precision Tools (2013) – relocated headquarters to Henderson

County.

Borg Warner Turbo / Borg Warner Thermal (2014) – expanded both

operations.

Elkamet (2014) – German manufacturing company expansion.

Multi Packaging Solutions (2012) - expansion and consolidation in

Henderson County.

Norafin Industries (2016) – first North American manufacturing facility

announced.

Gaia Herbs – announced June 2016 - natural foods manufacturer and

distributor of natural foods.

Demmell AG – a German based manufacturer opened their first North

American manufacturing facility in Henderson County in 2016