Forsyth industrial park

Forsy th Park Central Florida’s Next Generation Warehousing Complex

INVESTING IN A POWERFULL AND UNPARALLELED INDUSTRIAL ASSET CLASS

Our firm is data driven, after all making important business decisions must be grounded on data. That is why at The Portfolio Group we have developed a broad stream of research, and innovative technology, to both determine and illustrate the best use of each individual asset. In this proposal we will illustrate the best use of the Forsyth Lot, the Local Traffic Counts, the location relative to the freight traffic, and the Demographic Data that supports the asset. Our aim is to expose the market data that supports our position that there is a strong Demand For Next Generation Warehousing in today’s market place. We hope to lure investors and tenants by creating a value added proposal that exposes all the benefits and integrated technological components of the Forsyth Industrial Park.

Marke&ng the Forsyth Lot Requires Substan&a&ng the Investment with Data and Innova&ve Technology

Our Designers have crafted an Intelligent Storage Facility with Strong Curb Appeal & Technology Applications…

“Our unique vision is to drive investment to an unparalleled product that is currently lacking and unavailable in the Central Florida Marketplace. “ A-Class Intelligent Storage Facilities are currently scarce and unavailable. For the past decade we have advanced tremendously in the way we do business, especially, since e-commerce is now the norm rather than the exception. With new productive avenues in doing business there are new demands in both Managing and producing effective supply chains that seamlessly adapt to the expectations for instantaneous delivery of products and services for our 21 century clients.

Forsyth Park Draws Interna1onal Architectural Collabora1on The Forsyth Commerce Park has truly been designed with the help of international collaborators. A team of four experienced independent architectural firms from different corners of the globe were used to create what we feel is an innovative and attractive asset that can enhance all types of Business and commerce, while still providing lucrative yields to potential investors.

Maximizing the Use of the Land The US based firm, Civil Engineering Group Inc, is a interdisciplinary engineering firm, prac&cing in the Southeastern United States, South America and the Caribbean. The firm was largely responsible for maximizing the use of the land and crea&ng the drawing for the project. Crea1ng Design Elements through Interna1onal Collabora1on Interna&onal Collaborators have enhanced the design drawings by crea&ng both 2-‐Dimensional and 3-‐Dimensional CAD Drawings of the Forsyth Commerce Park. The interna&onal collaborators spanned 4 countries and 3 different con&nents. Addi1onal Collabora1on, Experience, and Educa1on Architect / VFU Architecture in Bulgaria, 2008-‐2013 (4 Years / Architectural Designer / Architecture & Planning) Architect / HCM university of architecture in Vietnam, 2007-‐2012 (5 Years / Award in Architecture -‐ Espace Architecture-‐DEGW France 2010)

Architect / Cebu InsPtute of Technology, Saudi Arabia, 1998-‐2003 (5 years/9 years experience/ LEED-‐Green Building Principles and Prac&ces)

15.63 Acre Lot For Sale List Price: 1.75 Million

In this proposal we hope to illustrate how we can maximize the income potential for the lot on Forsyth Rd and Old Cheney Hwy.

Forsyth Industrial Park

15 Acre Site with 82,000 SQ Feet

The site was designed to maximize the use of the available land. The region hosts an adjacent industrial park that is thriving. What makes our park more attractive is the technological prowess and architecture that the park will offer to lure in both tenants and potential investors. The scarcity of quality and custom A-Class Warehouse space will create an impetus for the development.

Forsyth Industrial Park -‐ Site Map

Building one is composed of 8,000 SF of contiguous space with the capability for four divisible units.

Building two is composed of 36,000 SF of contiguous space with the capability for 7 divisible units. The unit have 58 parking spaces.

Building three is composed of 20,000 sf and has 39 Parking Spaces.

Forsyth Industrial Park

Building Four is composed of 18,000 SF and 30 Parking Spaces. Located on Old Cheney Hwy.

Forsyth Loca1on And Traffic Counts

49,500 Vehicles per Day 5,297 Trucks per Day

15,500 Vehicles per Day 806 Trucks per Day 2,100 Vehicles per Day

76 Trucks per Day

The Forsyth Commerce Park offers strong industrial and commercial ac&vity adjacent to the vicinity of the site.

Source: Department Of Transporta&on

Investment Cash Yields: Industrial yields are among the highest of the four main real estate types. Although warehouses may seem a little pricey, they're worth it thanks to strong fundamentals. Warehouses aren't known for their growth, but we estimate yields of 4.2% yields (after adjusting for below-the-line expenses). That's about 23% better than office yields, which is driving players from other sectors into the industrial arena.

Build Out Cost /sf Warehouse Lease Rate (Average 6/sf)

$85 $7 SF 82000 Lot Cost Max Revenue $1750000 $574000 Build out Cap Rate $6970000

6.7%

Total Cost Cap Rate 20% Vacancies and 20% Opera1ng Expenses

$8570000

4.29%

The Estimated Projections for Cap Rate is:

6.7%

Cap Rates Vs Investment Vehicle

Local Demographic Analysis 1-‐Mile / 3-‐Mile / 5-‐Mile Radius

The centrality of the asset supports a broad demographic base within a 5-‐mile radius. Namely a total household popula&on of 247,669 people with a median income of $45,000.

% 0 to 5 years

% 5 to 9 years

% 10 to 14 years

% 15 to 17 years

% 18 and 19

years

% 20 years

% 21 years

% 22 to 24 years

% 25 to 29 years

% 30 to 34 years

% 35 to 39 years

% 40 to 44 years

% 45 to 49 years

% 50 to 54 years

% 55 to 59 years

% 60 and 61

years

% 62 to 64 years

% 65 and 66

years

% 67 to 69 years

% 70 to 74 years

% 75 to 79 years

% 80 to 84 years

% 85 years and over

1 Mile Radius 6.6% 6.0% 6.2% 3.9% 4.2% 2.6% 2.8% 6.9% 10.6% 8.0% 6.9% 6.2% 6.9% 6.1% 4.5% 1.6% 1.8% 1.3% 1.5% 2.0% 1.7% 1.1% 0.7%

2 Mile Radius 6.4% 5.8% 5.8% 3.7% 4.2% 2.6% 2.4% 7.1% 9.9% 7.5% 6.8% 6.4% 6.8% 6.0% 5.1% 1.7% 2.3% 1.3% 1.5% 2.2% 1.8% 1.4% 1.3%

3 Mile Radius 5.9% 5.4% 5.6% 3.6% 3.6% 2.3% 2.3% 6.5% 9.8% 7.8% 7.1% 6.8% 7.2% 6.5% 5.4% 1.9% 2.5% 1.4% 1.7% 2.3% 1.9% 1.4% 1.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Male Percentage Distrib

u1on

Male Popula1on By Age Group 1 Mile, 2 Mile, 3 mile Radius

The large body of both female and male demographics is concentrated from 22-59 age group. Comprising of 57.1% cumulative of the overall demographics.

Poraolio Group Research℠


% 0 to 5 years

% 5 to 9 years

% 10 to 14 years

% 15 to 17 years

% 18 and 19 years

% 20 years

% 21 years

% 22 to 24 years

% 25 to 29 years

% 30 to 34 years

% 35 to 39 years

% 40 to 44 years

% 45 to 49 years

% 50 to 54 years

% 55 to 59 years

% 60 and 61 years

% 62 to 64 years

% 65 and 66 years

% 67 to 69 years

% 70 to 74 years

% 75 to 79 years

% 80 to 84 years

% 85 years

and over

1 Mile Radius 6.5% 5.7% 6.1% 3.9% 3.2% 2.1% 2.2% 6.8% 9.2% 7.5% 6.7% 6.6% 7.0% 6.2% 5.1% 1.8% 2.6% 1.3% 1.8% 2.8% 2.1% 1.5% 1.4%

2 Mile Radius 5.9% 5.5% 5.6% 3.6% 3.0% 1.8% 1.8% 6.1% 8.9% 7.1% 6.8% 6.4% 7.0% 6.6% 5.7% 2.0% 2.9% 1.5% 2.0% 2.9% 2.5% 2.2% 2.4%

3 Mile Radius 5.4% 5.2% 5.2% 3.4% 3.0% 1.9% 2.0% 5.9% 8.9% 7.2% 6.7% 6.5% 7.2% 6.9% 6.0% 2.2% 2.9% 1.6% 2.2% 3.0% 2.6% 2.2% 2.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Female Percentage Distrib

u1on

Female Popula1on by Age Group 1 Mile, 2 Mile, 3 Mile Radius



Learning the population demographics is important within vantage point of an investor because it exemplifies the maturity of the working class body that can facilitate economic activity and consumer spending in the region.

Inves1ng In Industrial Real Estate

Sec&on 1

Demand for prime space (Class A) in the best loca&ons remains strong. As investors switch from the sidelines they are more op&mis&c that the economy is on a solid path to recovery. New industrial developments will likely be funded by a combina&on of nimble private equity investment groups, as well as larger en&&es, including real estate investment trusts.

There is pent up demand for A Class Warehouse space as it is becoming more scarce in the Orlando Metropolitan Area.

5 R E A S O N S Y O U S H O U L D I N V E S T I N A N I N D U S T R I A L A S S ET C L A S S

In Commercial 101 we learn that Net Absorption is defined as the addition of all of the properties added to a market in a single quarter minus all of the properties that were leased out in that same quarter. If the number of properties that were leased in that quarter exceeds the number of properties that where added by landlords in that quarter then economists say “we have a net absorption of properties from the overall market!” In the 3Q of 2012 the Orlando area leased more than 2 Million square feet worth of real estate plus an additional 423,892 square feet that were “Absorbed” from the previous quarter industrial real estate market.

Moving Over From Mul1family to Industrial is the next growth wave.

Posi1ve net absorp1on rates: Signify Demand is increasing in market Nega1ve net absorp1on rates: Signify Demand is falling in market

Orlando saw a strong 423,892M SF of net posi&ve absorp&on last year. We predict large growth rates this year as industrial inventory dwindles and market rents begin to see sharp increases.

Why industrial proper;es are being absorbed out of the market “like a sponge”…

The Orlando Metropolitan are had a strong Net Absorp&on in all Coun&es except one. The regional area where our subject property is located had a posi&ve YTD Net Absorp&on of 112,154 for the industrial asset class.

1145 DENNIS AVE ORLANDO, FL 32807

“Small construcPon rates and large absorpPon rates is a formula for lower vacancy rates, improved rental rates, and increased demand.” With cranes sitting idle, construction pipeline will remain a primary driver of performance improvement during 2012. In fact, this year’s projected deliveries pale in comparison to the past decade, when an average 10 million square feet were completed annually. Last year we saw “negative net completions” nationwide as the pace of industrial space removal more than offset the rate of new construction. Nationally, construction is ramping up with 35M SF in the ground, but that's only 0.3% of the current inventory and 55% of the constructions was Built To Suit. That's barely up from the trough and well below the last cycle, when we added 1.5% annually. We expect construction will ramp up rapidly over the next year or two as rents increase. In the meantime, there's a great window where investors can benefit with renewed investment opportunities.

AEer 6 consecu;ve quarters of reducing the vacancy rates the vacancy rate has leveled off in the fourth quarter of 2012. It is important to note that the fourth quarter typically experiences Lower absorpPon rates.

Low Construc1on Rates Are Propelling Market Normaliza1on And Improving Investor Outlook

Future Rental Growth Opportunities Central Florida’s industrial market held steady in the fourth quarter, with the overall vacancy rate remaining unchanged from the prior quarter at 10.2 percent. The vacancy Rate is defined as the total number of usable but unoccupied units. Year-over-year, however, the 145 million-square-foot market showed continued improvement. The vacancy rate has already dropped 3 percentage points since the fourth quarter of 2009 when it hit 13.2 percent. As the economy improves it is expected that industrial warehouse demand will increase further as population growth and improved employments trends fuel consumer spending and GDP growth.

Unemployment Trends

US GDP

Source: Bureau of Labor StaPsPcs

Employment Trends Fuel The Local Economy With more than 1 Million Locals Employed In the Orlando Metropolitan Area.

Improved Economic Trends and Investor Confidence, will sharply increase regional demand for High Quality Industrial Real Estate Assets.

Orlando Popula;on Grows Exponen;ally

Demographic trends will con1nue to drive further economic growth and remain highly suppor1ve of industrial space demand. The U.S Census Projections calculate that the population growth in Florida over the next decade will grow 20.5% and will surpass 19 million inhabitants. The strong rise in population will stimulate consumer spending, trade and manufacturing as cities adapt to growing demographic changes and increased demand in consumer products.

Data from U.S. Census Bureau

Trade, GDP, And Warehouse Demand

Sec&on 2

Orlando’s Economic Developments & Business Diversity

The Needs of The 21st Century businesses and the way that we use real estate is changing more-‐so today than it ever has! With the advent of the informa&on age and the ease of personal compu&ng many businesses have adapted to facilitate increased consumer purchases and increased consumer choices. For example, today we have more produce selec&ons (it’s not just Coke® and Pepsi® -‐ but a dozen of varie&es of Flavors, dietary choices, and caffeine free versions)

To illustrate the increase demand for warehouse space we would like to note that the space necessary to house each consumers products from the point it is manufactured un&l it has been delivered has increased from 37 square feet per person in 1981 to more than 50 Square Feet Per Person Today!

Cap Rates Vs Investment Vehicle

Waterborne Trade and its effect on Our Local Industrial Real Estate

Port Canaveral is located approximately 50 miles east of Orlando and it provides access to the Atlantic Ocean for international and domestic bulk shipments, containers, and passengers.

Container volume at the Florida ports is expected to exceed capacity by the year 2012. By 2020 it is es&mated that Florida ports will be unable to handle approximately 15 million tons (about 1,000,000 containers) without expanding current facili&es. If Port Canaveral captured 10% of this excess, current volumes would increase 100 &mes. This in turn by necessity will require stronger demand in industrial real estate warehousing to house the Influx of addi&onal commodi&es.

Port Canaveral, Florida

“The shear volume of international trade is already having ripple effects on the demand for industrial real estate in most geographical areas.”

– The Portfolio Group

Orlando Trade Demographics

The Orlando Metropolitan Area is currently ranked 29th out of 366 Metropolitan areas studied in the United States by the Bureau of Economic Analysis in the United States. Our area boasts a gross domestic product (GDP) of more than $100 billion dollars.

Below is a list of the industries that are a strong component of the GDP and are found in our regional area in the 32803 Zip Code where this warehouse located. Most of the economic activity in the Orlando Metropolitan area is within a 20 mile radius of this location

Orlando Metropolitan Area Overall GDP Gross domestic product for the city of Orlando has grown from 65 billion dollars in 2001 to a 102 billion dollars in 2011. Gross domestic product for the manufacturing sector has increased from a 3.3 billion dollar industry to a 4.2 billion dollar industry in the last decade.


Orlando Metropolitan Area GDP Growth For Warehousing and Storage Gross domestic product for the city of Orlando Warehousing sector has grown from 44 billion dollars to 62.1 billion Dollar industry from 2004 to 2011. That’s a 18 billion dollar GDP growth in less than a decade!


Lot Loca1on Rela1ve To Economic Ac1vity

Sec&on 3

The United States has the largest freight transporta&on system in the world, an extensive physical network of infrastructure and en&&es that provide transporta&on services:

•4 million miles of public roads, •140,000 miles of railroad tracks operated by freight carriers, •25,000 miles of navigable waterways, •9,800 coastal and inland waterway facili&es, and •5,200 public-‐use airports

The U.S. transporta&on network serves more than 300 million people and 7.5 million business establishments. Moving raw materials and finished goods between produc&on and consump&on centers, this freight network is a vital component of commerce in the United States.

Source: U.S Department of TransportaPon

Figure 1: Na&onal Truck Movement & Na&onal Train Movement

Below are maps illustra&ng the truck and train movements and the densi&es for the individual movements of the path of goods. This is important because the flow of goods determines where and how we should establish warehouses. The Council of Supply Chain Management Processional’s es&mates that the typical consumer product is stored in four or more distribu&on warehouses before the consumer ever receives the product.

“Identifying the best warehouse locations is done by accurately understanding where the path of goods flow from manufacturing to consumer delivery”

Central Warehouse Location

1145 DENNIS AVE, ORLANDO, FL 32807

Given the importance of being through the path of goods, the Asset is Adjacent to all the Major Regional Highway Freight corridors in The Orlando Metropolitan Area

The lot in question is located close to SR 50. With a 11.84% of the states freight traffic, it is an attractive industrial asset, with a large share of economic certainty.

The Regional Density of the States Highway Freight System

1145 DENNIS AVE ORLANDO, FL

1145 Dennis Ave

Retail Establishment Density Retail establishment near the warehouse on 1145 Dennis Ave deliver 125,000 tons of shipments in and out of the 32807 zip code every year. This is forecasted to increase by 3% by 2025.

Traffic flows delivers 10.5 Million annual tons moving to and from the Orlando regional area. The district consumes 7.8 million tons and ships 2.7 Million tons. There are three primary channels of distribu&on. Food Distribu&on, industrial distribu&on, and consumer retail. Our asset would primarily service the Industrial and retail sectors. Fortunately, our asset is at the heart of the largest Retail Establishments. If addi&onal storage space and offices are needed it would be accessible to local clients for easy accessibility and the efficient delivery of products.

Driver of Local Demand For Industrial and Consumer Retail Center Warehousing

Goods and services traffic in the Orlando Regional Planning Area (ORPA) is projected to rise by 130% in the years extending to 2025

Warehouse Technology and Op1miza1on

Sec&on 3

Warehouse Technology Optimization The design of The Forsyth Park takes into account advances in technology by integrating smart technology into the building to maximize distribution Efficiency, Accuracy, and Profitability. Here are a Few Technologies that we suggest could be introduced for Industrial Optimization:

&

Transportation Autonomous Vehicular License Plate Recognition Software GPS Vehicular Tracking

Pick / Pack Workflow Arrangement Optimization 3D Barcode Implementation and Supply Chain Database Design Real Time Location System (RTLS)

Ready For Shipment Manual Delivery Mechanisms Vs Robotic Delivery Systems Voice Directed Warehouse Systems Pick To Light and Put to Light Systems

Optimization Warehouse Management Systems Energy Saving Technology

Warehouse Management Sodware The software could be purchased through third parties or developed specifically for your business needs. Since there are a complex suite of processes that need to be coordinated efficiently, Warehouse Management Software integrates all of your business operations from online purchases to order fulfillment to increase the effectiveness of all of your business operations. WMS allows the business owner to effortlessly gain insight into analytics of the operation to instantly gauge how effectively and efficiently orders are being streamlined. Here are a few ways WMS can help you manage the structure of your business. •  Integrate Customer Order Processing with Warehouse Delivery Fulfillment •  Manage Receiving, Putting Away, and Delivery. •  Know where all your pallets are and what they contain. •  Know where all your trucks and drivers are. •  Log all incoming and outgoing shipments. •  Monitor the positioning of the inventory. •  Track which doors are open and closed. •  Improve energy efficiency. •  Deliver breakthrough efficiency, productivity and visibility, in real–time… all the time.

Promo&ng Warehouse Efficiency Through The Use Of Warehouse Management Systems.

Performance Analy&cs

WMS improves levels of ROI through order accuracy, on time shipping, minimizing inventory carry costs, and decreasing labor costs. Today’s warehouse managers are consistently finding that 2 to 5% improvement across various performance metrics can mean hundreds of thousands of dollars in bottom-line returns to the business. Thus, implementing and having a system that integrates all the facets of your business into one comprehensive platform, to some degree, will be well worth the initial capital investment. The Forsyth Industrial Park will make use of advanced technologies to Attract business owners by promoting and increasing productivity yields.

WMS System Tracking Inventory Levels, Loca&on, and Distribu&on Status

Tracking Shipments with Real-Time Tracking & Monitoring provides 24/7/365 location visibility for all cargo and assets. You will be able to see notifications when cargo crosses supply boundaries. The app is web based and is available for the iPhone for easy access.

Tracking Shipments and vehicles coming in and out of Forsyth Park.

Real-‐ Time Shipment Tracking Sodware

“Receive mobile noPficaPons when shipments cross defined Supply boundary lines to get ready for a shipment.”

Forsyth Park License Plate Recogni&on Sooware

The Commerce Park can also be equipped with License Plate Recognition software to Log all vehicles that enter into the park for both security and to meet operational goals.

Storage and Delivery systems need to be taught out comprehensively. Primarily, Long Term improvement in ROI needs to outweigh the Initial Capital Investment. The business demands need to be assessed and improved incrementally to improve long term capital gains.

Autonomous Storage Based Systems

Manual Storage Based Systems VS

“Knowing where your packages are and understanding The Dynamics of how they are being stored and delivered has strong implicaPons on being able to improve The efficiency and long term ROI.”

-‐The Porbolio Group

3D Barcode Technology Allows You Store and Access informa&on in the Barcode itself to improve efficiency. The dated process of cross checking 2d Barcodes with paper slows down the delivery and storage process.

Real Time Loca1on Systems (RTLS) and RFID Systems With Real Time Loca&on systems you can track the posi&oning of all the Fortklios using imaging technology. You can also track the posi&oning of the pallets, so that you know exactly where all your products are all at once.

Pallet Loca&ons Tracking Sooware

•  Keep popular stock items in prime pick areas. Put slow-moving merchandise in an area

where it will not clog highly trafficked areas.

•  Look at underused or unused areas of your warehouse.

•  Watch workflow from department to department. Could things move more smoothly with a different system or additional equipment, such as better conveyor systems or a mezzanine?

•  Schedule regular meetings with employees and managers to ask about ways the operation could improve.

•  Boost employee morale with ergonomically efficient work areas and performance incentives.

•  Provide your employees with the best pallet rack and other organizational systems so that they take pride in the company and their jobs.

•  Add hours or shifts to your labor force.

•  Consider cross docking some of your inventory. Cross docking reduces the need for storage space because it takes popular incoming merchandise and transfers it directly to the shipping area where orders are being processed. A good conveyor system speeds the transfer of cross docking.

•  Run a scheduled dock by insisting that every incoming and outgoing driver make an appointment.

Ways To Increase Opera&onal Efficiency Through Careful Warehouse Layout Planning and Op&miza&on

Forsyth industrial park

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