Disclaimer & Confidentiality

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2 Disclaimer & Confidentiality Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a Texas licensed real estate broker ( HFF ). This Offering Memorandum has been prepared by HFF for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or HFF If you have no interest in the property, please return the Offering Memorandum forthwith. Page 2

3 Table of Contents 1. Executive Summary 4 Investment Overview Property Map Property Overview 2. Tenant Profile 7 FedEx Corp. o FedEx Ground Deal Contacts: Coler Yoakam cyoakam@hfflp.com Ph: Brandon Chavoya bchavoya@hfflp.com Ph: Patrick Sullivan psullivan@hfflp.com Ph: Mark West mwest@hfflp.com Ph: Adam Herrin aherrin@hfflp.com Ph: Michael George mgeorge@hfflp.com Ph: o FedEx Freight Stephen Bailey sbailey@hfflp.com Ph: Jeff Bramson IL License: Property Overview 11 Property Summary Lease Summary Location Overview Industrial Overview Maps Aerials Mike Tepedino NY License: 30TE Sean Fogarty KS License: BR Page 3

Investment Overview The Opportunity HFF, on behalf of Ownership, is pleased to exclusively present an outstanding opportunity to purchase the fee simple interest of a Class-A industrial asset backed

The Property is being offered on a free-and-clear basis. The Property is supported by a double-net lease with the landlord responsibilities limited to roof and structure.

5 Investment Overview The Opportunity HFF, on behalf of Ownership, is pleased to exclusively present an outstanding opportunity to purchase the fee simple interest of a Class-A industrial asset backed by a long-term lease and the investment-grade credit of FedEx Corporation ( FedEx or the Tenant ) totaling 181,799 square feet and 21.7 acres in Bel Aire, Kansas (the Property ). The Property is being offered on a free-and-clear basis. The Property is supported by a double-net lease with the landlord responsibilities limited to roof and structure. However, it should be noted that with the newer construction of the Property (built in 2015), the responsibilities of the landlord will be significantly mitigated. Investment Highlights Strong Corporate Credit. FedEx Corp. (NYSE: FDX) is the world s largest commerce provider, with a trailing 12-month revenue generation of $47.56 billion, over $1.38 billion in net income in the last 2 quarters alone, and investment-grade credit ratings from both Moody s and Standard & Poor s of Baa1 and BBB, respectively. Furthermore, the guarantor of two of the assets is FedEx Ground Package System, Inc., which is the highest volume and highest yielding of the three main FedEx Corp. service lines, accounting for over $14.8 billion dollars in annual revenues and more than 50% of the reported FedEx Corp. operating income in the 12-months ending November 30 th, For additional detail on FedEx Corp and subsidiaries, please refer to the Tenant Profile section. Exceptional Lease Structure & Stable Cash Flow. The Property is net leased with minimal landlord exposure to maintenance and repair responsibilities. In addition, the newly constructed nature of the asset further alleviates future landlord expenditures typically associated with distribution facilities. Finally, the asset has two, fiveyear fixed-rate renewal options remaining (with escalations). Page 5

For additional detail on the tailored construction of the asset, please refer to the Property Overview section. Proven Tenant Commitment & Mission- Critical Locations.

6 Investment Highlights (cont.) Investment Highlights (cont.) Build-to-Suit Construction. The Property is comprised of a first generation, build-tosuit asset built in 2015 and specifically designed to fit the needs of the Tenant. For additional detail on the tailored construction of the asset, please refer to the Property Overview section. Proven Tenant Commitment & Mission- Critical Locations. Through the long-term lease obligations, substantial lease guarantees, and build-to-suit nature of the Property, the Tenant has demonstrated a clear commitment to each asset. At each of the assets, the Tenant has illustrated this commitment at the Properties as demonstrated by the lease structures recent occupancies. The Tenant s equipment investment and detailed construction specifications for the asset is further support that the Tenant plans to occupy the asset on a long-term basis. For additional detail on the construction and lease specifics of the asset, please refer to the myhff Document Center. Page 6

Property Overview Address Tenant Tenant Guarantor Building Size (SF) Site Size (Acres) Year Built Lease Start Lease End Remaining Lease Term Rent Bumps Lease Type Expansion Potential Year 1 Annual

7 Property Overview Address Tenant Tenant Guarantor Building Size (SF) Site Size (Acres) Year Built Lease Start Lease End Remaining Lease Term Rent Bumps Lease Type Expansion Potential Year 1 Annual Rent Year 1 Annual Rent PSF 5180 N. Industry Rd Bel Aire, KS FedEx Ground Package System, Inc. FedEx Ground Package System, Inc. 181, Jul-15 Jun Years Flat Net Lease Yes $720,570 $3.96 Page 7

freight forwarding services; international trade advisory services, such as assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as global

9 Tenant Profile FedEx Corporation FedEx Corporation FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; international trade advisory services, such as assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information in various customs areas; and offers supply chain solutions, including critical inventory logistics, transportation management, and temperature-controlled transportation services. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers high volumes of low-weight and less time-sensitive business-to-consumer packages. The company's FedEx Freight segment offers less-than-truckload freight services, as well as freightshipping services. As of May 31, 2015, this segment operated approximately 65,000 vehicles and trailers from a network of approximately 370 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, and other back-office support services; Web-enabled mobile devices, which allows customers to track the status of packages, create shipping labels, get account-specific rate quotes, and access drop-off location information; access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and a range of ground shipping and time-definite express shipping services; and packing services, and packing supplies and boxes. The company was founded in 1971 and is based in Memphis, Tennessee.. Revenue FedEx has grown tremendously since its first night of operations in Now FedEx serves more than 220 countries and territories and continues to offer new products and services around the globe. FedEx Portfolio Bundle of Services The FedEx portfolio bundle has significant value, 96% of U.S. revenue comes from customers of two or more operating companies. Managing as a portfolio for the benefit of customers and FedEx. Independent operations enable optimal service quality, reliability, and focus. FY15 Revenue: $47.5 billion Team Members: More than 325,000 Countries and Territories Served: More than 220 Page 9

Net FedEx Ground advantage of 26.7% as of July 2015.

10 Tenant Profile FedEx Ground FedEx Ground Fact Sheet FedEx Ground Competitive Position Annual transit time improvements has consistently accelerated FedEx Ground s speed advantage: FedEx Ground is faster to more locations than UPS Ground. Net FedEx Ground advantage of 26.7% as of July Three Distinct Services Driving Growth FedEx Ground, FedEx Home Delivery, FedEx SmartPost, are delivering significant revenue growth for FedEx Ground. The result is 16 consecutive years of ground revenue market share gains. Page 10

FedEx Freight Priority has the fastest published transit times of any U.S.

11 Tenant Profile FedEx Freight FedEx Freight Fact Sheet FedEx Freight Competitive Position With extensive coverage throughout the U.S. (including Alaska and Hawaii), Canada, Mexico, and Puerto Rico as well as service to the U.S. Virgin Islands, FedEx Freight provides less-than-truckload (LTL) choices based on customers shipping needs. FedEx Freight Priority has the fastest published transit times of any U.S. nationwide LTL service, and of any LTL service connecting the U.S. and major Canadian markets (Vancouver, Calgary, Toronto, Ottawa, and Montreal) with a single network. FedEx Freight s Outstanding Service Delivers Market Share Page 11

5180 N. Industry Drive, Bel Aire, Kansas Property Summary Address: Size (SF): Office Finish: Air Conditioned Space: 4.1% Year Built: 2015 Site Area: Truck Court: 169' Loading: Loading Doors: 5180 N.

13 5180 N. Industry Drive, Bel Aire, Kansas Property Summary Address: Size (SF): Office Finish: Air Conditioned Space: 4.1% Year Built: 2015 Site Area: Truck Court: 169' Loading: Loading Doors: 5180 N. Industry Drive Bel Aire, KS ,799 square feet 4.1% - 7,531 square feet Acres Front Load 45 - Dock high doors 7 Grade level doors Parking: 512 parking spaces (2.82: 1,000) Clear Height: 24 Building Dimensions: Construction Overview: Roof: HVAC System: 260 (Depth) x 699 (Width) Metal Corrugated galvanized steel roof with fiberglass bat insulation Roof-top units for the finished areas Lease Summary Tenant: Guarantor: FedEx Ground Package System, Inc. FedEx Ground Package System, Inc. Expenses: Net Lease Tenant responsible for taxes, insurance, utilities, and maintenance and repair. Landlord is responsible for roof and structure. Lease Term: Remaining Lease Term: 10 Years 8.8 Years Commencement Date: July 1, 2015 Maturity Date: June 30, 2025 Rent Escalations: Rent PSF: Flat $3.96 PSF Annual Rent: $720, Renewal Options: Renewal Notice Period: Two, fixed rate 5-year options. First option will be at a rental rate of $4.36 PSF ($792, annually) and the second option will at rental rate of $4.58 PSF ($832, annually). 1 year prior to expiration. Page 13

14 5180 N. Industry Drive, Bel Aire, Kansas Location Overview 5180 N. Industry Drive is located 14 miles northeast of Wichita, Kansas, and in close proximity to two of the largest thoroughfares in Kansas, Interstate 135 and Interstate 35. The property is positioned 1.4 miles south of KS-254 which provides east-west transportation to Interstate 135, running north-south, and Interest 35, which is a direct line to Kansas City. 97% 96% Northeast Market Historical Occupancy and Rental Rates $7.18 $6.64 $6.82 $6.82 $6.82 $7.50 $7.00 Bel Aire, Kansas is a suburb of Wichita and consists of approximately 6,900 people. Wichita is home to the corporate headquarters for major aviation and industrial users such as Cessna Aircraft Company, Sprit AeroSystems Inc. and Hawker Beechcraft. The city is widely referred to as the Air Capital of the World for its dominance in the aviation industry. Additionally, Wichita 95% 94% 93% 92% 91% $5.08 $5.61 $6.39 $6.50 $6.00 $5.50 $5.00 is the largest city in Kansas, with a metropolitan population of over six hundred thousand (U.S. Census Bureau, 2014) and attracts over 360 companies. 90% 89% $3.57 $3.93 $4.19 $4.50 $ % $ % Q2015 2Q2015 3Q2015 4Q2015 $3.00 Industrial Market Overview The Property is located within the Wichita Industrial market and specifically benefits from its location within the Northeast Industrial submarket. The Northeast Industrial market is the largest Occupancy Average Rental Rates submarket in the Wichita comprising of 357 warehouse buildings and over 13 million square feet. This accounts for over 28% of the entire Wichita Industrial market. The Northeastern Industrial market is currently 95.2% leased, outperforming the overall Wichita market occupancy of 94.7%. As of third quarter 2015, the Northeast market has absorbed 127,998 square feet of warehouse space, or 97.9% of all the absorbed square feet in the Wichita industrial market. Rental rates in the warehouse space are currently $6.82 PSF. This is an increase of 91% since the beginning of With no product currently under construction, occupancy and rental rates are expected to continue to increase. Across all 22 substantial (100,000 SF or greater) industrial facilities in a 5-mile radius, these assets boast a 97.9% Northeast Industrial Market # of Industrial Buildings 357 Market Size (SF) 13,053,116 Vacancy 588,304 (4.8%) Occupied Space 12,464,812 (95.2%) YTD Net Absorption (SF) 127,998 Deliveries (SF) 180,000 Under Construction (SF) 0 occupancy rate. Furthermore, the average Rent PSF of this subset is $6.09, representing a 53.8% premium to the in-place, below market rents. Page 14

15 5180 N. Industry Drive, Bel Aire, Kansas Subject Property Page 15

16 5180 N. Industry Drive, Bel Aire, Kansas Subject Property Page 16

OFFERING MEMORANDUM FEDEX GROUND 3400 ZELL MILLER PARKWAY I STATESBORO, GA

OFFERING MEMORANDUM FEDEX GROUND 3400 ZELL MILLER PARKWAY I STATESBORO, GA I N D U S T R I A L EXCLUSIVE LISTING AGENTS: ALEX HARROLD Associate GARY CHOU FVP & Senior Director DIRECT 1 310 919 5790 MOBILE