CHALLENGE

Consolidation of existing APL Logistics (APLL) Warehouse facilities into Build-to-Suit Campus.

EXISTING FACILITIES
1,166,923square feet, functionally obsolete warehouse space located in four (4) different facilities with staggered expirations dates: 12/31/03, 01/31/04 and 03/16/04.

EXISTING SPACE AVERAGE ANNUAL BASE RENTAL
Average Annual Rent: $2.76 / $3,218,362.80

SOLUTION

BUILD-TO-SUIT CAMPUS
980,202 square feet, in three (3) buildings. Eliminating approximately 187,000
square feet of vacant space.

CAMPUS BASE RENTAL
Average Annual Rent: $2.503 / $2,453,445.61

BENEFIT
        •   Shared Efficiencies.
        •   Premier location at below market rents.
        •   State of the Art facility improvements

IMPROVEMENTS/ALLOWANCES INCLUDED IN BASE RENTAL RATE

• $2.753 per square foot Tenant Improvements
• $1.00 move costs allowance - $980,202.00
• One (1) month early occupancy – Rent Free
• Upgraded TPO Roof
• Electricity savings due to competition between Service providers.
• Full dock equipment packages including Kelley 30,000 lb. FX (air bag), dock seals and Dock Locks (Kelley Star 2)

RENTAL ABATEMENT
Four (4) months free rent – Outside one (1) month early occupancy.

TOTAL DEAL ESTIMATE
$25 million at $25.19 per square foot

ANNUAL RENTAL RATE SAVINGS
$764,917.19/$0.257

REAL ESTATE TAX SAVINGS
$0.32 per square foot or $313,600 annually and $1.568 million savings over the first five (5) years of the Lease Term. Total tax abatement is ten(10) years. Actual Average annual R.E. taxes is $0.087 per square foot annually.

ELECTRICITY SAVINGS
$50,000 annually

TOTAL SAVINGS
$1,128,517.19 Annual Savings

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