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HORIZON AT NORCROSS

NORCROSS, GA

OFFERING MEMORANDUM
HORIZON AT NORCROSS
NORCROSS, GA

CONFIDENTIALITY AND DISCLAIMER


CONFIDENTIALITYAGREEMENT
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended
to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the property,
the size and square footage of the property and improvements, the presence or absence of contaminating substances,
PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements
thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue
its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from
sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the
information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP
AGENT FOR MORE DETAILS.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158
HORIZON AT NORCROSS
NORCROSS, GA

TABLE OF CONTENTS
SECTION ONE
...............................................PRICING & FINANCIAL ANALYSIS

SECTION TWO
..................................................PROPERTY DESCRIPTION

SECTION THREE
...................................................RECENT SALES

SECTION FOUR
............................ON MARKET COMPARABLES

SECTION FIVE
..............................LEASE COMPARABLES

SECTION SIX
............................MARKET OVERVIEW

SECTION SEVEN
..................DEMOGRAPHIC ANALYSIS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158
PRICING & FINANCIAL ANALYSIS
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

PRICING & FINANCIAL ANALYSIS


Offering Summary
Price $1,598,950

Down Payment 20% $319,790

Gross Square Feet 8,849

Price/Gross SF $180.69

Rentable Square Feet 8,849


Price/Rentable SF $180.69
Year Built 2009

Parcel Size Condo

VITAL DATA

CAP Rate - Pro Forma 8.25%

Net Operating Income - Pro Forma $131,927

Net Cash Flow After Debt Service - Pro Forma 9.71% $31,048

Total Return - Pro Forma 21.72% $69,473

COMMENTS
Brand new high quality construction 9 feet approximately 8,850
square feet that is perfect for any professional owner / user. This
free standing two-story brick building with an elevator offers four
independent condo suites with two units on each floor.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

1
HORIZON AT NORCROSS
NORCROSS, GA

PRICING & FINANCIAL ANALYSIS


Financing
PROPOSED FINANCING

FIRST TRUST DEED


Loan Amount $1,279,160
Loan Type Proposed New
Interest Rate 4.95%
Amortization 20 Years
Program Owner / User
Loan to Value 80

COMMENTS
We have offers from a local bank for rate as low as 4.95% loan to owner/users on a
20-year amortization an 80 percent LTV. Investors are offered 70 percent LTV loans
on a 20-year amortization schedule.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PRICING & FINANCIAL ANALYSIS


Income & Expenses

Gross Square Feet 8,849


Rentable Square Feet 8,849

PRO FORMA PER SF

BASE RENT
Available Space at Market Rents (8,849 SF) 123,886 14.00

GROSS POTENTIAL RENT $123,886 $14.00

Expense Reimbursements
Real Estate Taxes 19,200 2.17
Insurance 3,500 0.40
Total Expense Reimbursements $22,700 $2.57

GROSS POTENTIAL INCOME $146,586 $16.57

Vacancy/Collection Allowance (% of GPI) (10%) 14,659 1.66

EFFECTIVE GROSS INCOME $131,927 14.91

NET OPERATING INCOME $131,927 14.91

NET CASH FLOW BEFORE DEBT SERVICE $131,927 14.91

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PRICING & FINANCIAL ANALYSIS


Financial Overview
LOCATION ANNUALIZED OPERATING DATA
4720 Peachtree Industrial
INCOME PRO FORMA
Norcross, GA 30071

Base Rent
Available Space at Market Rents 123,886
Gross Potential Rent $123,886
Expense Reimbursements 22,700
Gross Potential Income $146,586
Vacancy/Collection Allowance 10% 14,659
Effective Gross Income $131,927
Net Operating Income $131,927
Debt Service $100,879
Debt Coverage Ratio 1.31
Net Cash Flow After Debt Service 9.71% $31,048
Price $1,598,950
Principal Reduction $38,425
Down Payment 20% $319,790
Total Return 21.72% $69,473
Gross Square Feet 8,849
Price/Gross SF $180.69
Rentable Square Feet 8,849
Price/Rentable SF $180.69
CAP Rate - Pro Forma 8.25%
Year Built 2009
Parcel Size Condo
Type of Ownership Fee Simple

FINANCING
FIRST TRUST DEED
Loan Amount $1,279,160
Loan Type Proposed New
Interest Rate 4.95%
Amortization 20 Years
Program Owner / User
Loan to Value 80

Loan information is time sensitive and subject to


change. Contact your local Marcus & Millichap Capital
Corporation representative.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

4
PROPERTY DESCRIPTION
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Investment Overview

INVESTMENT Marcus & Millichap is pleased to present the building #400 at Horizon
HIGHLIGHTS at Norcross Office Building, a freestanding office building located at
New Construction 4720 Peachtree Industrial Blvd in Norcross (NE Atlanta MSA) Georgia.
The subject is a 8,849+/- square foot, two-story structure that offers a
purchaser an excellent opportunity to own and occupy their own
Four-Units of Approximately 2100 building.
Square Feet.
It is comprised of four individual office condos, two on each floor. This
makes business expansion in the future for the owner/user an easy task
Proforma Cap Rate of Nine+
Percent to accomplish.

The subject property was built in 2009 and it is completely finished with
80 Percent Financing Available to
Qualified Owner / User high end materials including crown molding, hardwood floors,
elevator, curved stairs and curved wall. The spaces are ideal for any
professional business like lawyers, financial services, insurance
Two-Story Building with Elevator
companies, consultants, chiropractors, etc.

The subject property is located in an area with 224,000+ populations in


SBA Loan Available to Qualified
Buyers the five mile radius and $94,000+ average household income.

70 Percent Financing Available to


Investors

4.95% loan available on a 20-year


amortization, 5-year term

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Property Features
CONSTRUCTION
Brick

Hardwood Floors

Elevator

Easy Maintenance

FEATURES
Four Suites

Elevator

Ample Parking

Easy Access to Peachtree Industrial Boulevard

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Property Summary
THE OFFERING
Property Horizon at Norcross
Property Address 4720 Peachtree Industrial Boulevard
Norcross, GA 30071
Property Type Office Condo

SITE DESCRIPTION
Parcel Size Condo
Type of Ownership Fee Simple
Rentable Square Feet 8,849

CONSTRUCTION
Year Built 2009
Construction Type Brick & Fram
Number of Floors 2
Number of Suites 4
Floor Plate Size 2100
Roof Composition Hip
Foundation Concrete
Parking Surface Asphalt

MECHANICAL
Elevator Yes
HVAC Individual Units
Utilities All

INTERIOR DETAIL
Ceilings 11'+
Floor Coverings Hard Wood
Rest Rooms Two to each suite
Corridors yes

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

8
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Property Photos

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

9
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Property Photos

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

10
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Area Maps

LOCAL MAP

REGIONAL MAP

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Site Plan

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Floor Plans

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

13
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Floor Plans

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

14
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Aerial Photo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

15
HORIZON AT NORCROSS
NORCROSS, GA

PROPERTY DESCRIPTION
Aerial Photo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

16
RECENT SALES
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

RECENT SALES
Recent Sales Map

Subject Property
1) Peachtree Parkway
2) 5425 Peachtree Parkway
3) Horizon at Norcross
4) 3321 Berkeley Lake Road
5) Horizon at Norcross

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

RECENT SALES
CAP Rate & Price/Rentable SF
AVERAGE PRICE/RENTABLE SF

300.00

270.00

240.00
Avg $221.87
210.00

180.00

150.00

120.00

90.00

60.00

30.00

0.00
Subject Peachtree 5425 Horizon 3321 Horizon
Parkway Peachtree at Berkeley at
Parkway Norcross Lake Norcross
Road
COMMENTS

AVERAGE PRICE/GROSS SF

300.00

270.00

240.00
Avg $221.87
210.00

180.00

150.00

120.00

90.00

60.00

30.00

0.00
Subject Peachtree 5425 Horizon 3321 Horizon
Parkway Peachtree at Berkeley at
Parkway Norcross Lake Norcross
Road

COMMENTS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

19
HORIZON AT NORCROSS
NORCROSS, GA

RECENT SALES
Recent Sales
HORIZON AT NORCROSS
4720 Peachtree Industrial Boulevard
Norcross, GA 30071
Offering Price: $1,598,950

Rentable SF: 8,849 Percent Down: 20%

Year Built: 2009

Occupancy: N/A Price/Rentable SF: $180.69


SUBJECT PROPERTY

1 PEACHTREE PARKWAY
200 Scientific Drive
Norcross, GA 30003
Close of Escrow: N/A Sales Price: $1,357,500

Rentable SF: 4,330 Percent Down: N/A

Year Built: 1993 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $313.51

2
5425 Peachtree Parkway
Norcross, GA 30092
Close of Escrow: N/A Sales Price: $4,650,000

Rentable SF: 18,234 Percent Down: N/A

Year Built: 2006 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $255.02

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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HORIZON AT NORCROSS
NORCROSS, GA

RECENT SALES
Recent Sales
3 HORIZON AT NORCROSS
4720 Peachtree Industrial Boulevard #300
Norcross, GA 30071
Close of Escrow: N/A Sales Price: $1,553,920
Rentable SF: 8,288 Percent Down: N/A

Year Built: 2008 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $187.49

COMMENTS
Office condo located in the same office park as the subject property.

4
3321 Berkeley Lake Road
Norcross, GA 30071
Close of Escrow: N/A Sales Price: $1,009,058

Rentable SF: 6,040 Percent Down: N/A

Year Built: 2007 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $167.06

COMMENTS
Berkeley Lake Village is a new office park with office condos available in 1500 square feet increments. Each building has four
units for the total of 6000 square feet in each building.

5 HORIZON AT NORCROSS
4720 Peachtree Industrial Boulevard #500
Norcross, GA 30071
Close of Escrow: N/A Sales Price: $375,500

Rentable SF: 2,016 Percent Down: N/A

Year Built: 2008 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $186.25

COMMENTS
Office condo located in the same office park as the subject property.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

21
ON MARKET COMPARABLES
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

ON MARKET COMPARABLES
On Market Comparables Map

Subject Property
1) 4989 Peachtree Parkway
2) 280 Technology Parkway
3) 4729 Peachtree Industrial
Boulevard
4) Peachtree Parkway
5) 3301 Berkeley Lake Road
6) 3311 N Berkeley Lake Road NW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

23
HORIZON AT NORCROSS
NORCROSS, GA

ON MARKET COMPARABLES
CAP Rate & Price/Rentable SF
AVERAGE PRICE/RENTABLE SF

210.00

180.00 Avg $170.29

150.00

120.00

90.00

60.00

30.00

0.00
Subject 4989 280 4729 Peachtree 3301 3311
Peachtree Technology Peachtree Parkway Berkeley N
Parkway Parkway Industrial Lake Berkeley
Boulevard Road Lake
Road
NW
COMMENTS

AVERAGE PRICE/GROSS SF

210.00

180.00 Avg $170.29

150.00

120.00

90.00

60.00

30.00

0.00
Subject 4989 280 4729 Peachtree 3301 3311
Peachtree Technology Peachtree Parkway Berkeley N
Parkway Parkway Industrial Lake Berkeley
Boulevard Road Lake
Road
NW
COMMENTS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

24
HORIZON AT NORCROSS
NORCROSS, GA

ON MARKET COMPARABLES
On Market Comparables
HORIZON AT NORCROSS
4720 Peachtree Industrial Boulevard
Norcross, GA 30071
Offering Price: $1,598,950

Rentable SF: 8,849 Percent Down: 20%

Year Built: 2009

Occupancy: N/A Price/Rentable SF: $180.69


SUBJECT PROPERTY

1
4989 Peachtree Parkway
Norcross, GA 30092
Close of Escrow: N/A List Price: N/A

Rentable SF: 15,378 Percent Down: N/A

Year Built: 1998 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $227.60

2
280 Technology Parkway
Norcross, GA 30092
Close of Escrow: N/A List Price: N/A

Rentable SF: 15,600 Percent Down: N/A

Year Built: 2000 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $168.97

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

25
HORIZON AT NORCROSS
NORCROSS, GA

ON MARKET COMPARABLES
On Market Comparables
3
4729 Peachtree Industrial Boulevard
Duluth, GA 30096
Close of Escrow: N/A List Price: N/A

Rentable SF: 8,675 Percent Down: N/A

Year Built: 2005 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $140.00

COMMENTS
Price offered is for shell space only.

4 PEACHTREE PARKWAY
200 Scientific Drive
Norcross, GA 30003
Close of Escrow: N/A List Price: N/A

Rentable SF: 4,330 Percent Down: N/A

Year Built: 1993 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $225.17

5
3301 Berkeley Lake Road
Duluth, GA 30096
Close of Escrow: N/A List Price: N/A

Rentable SF: 6,000 Percent Down: N/A

Year Built: 2007 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $130.00

COMMENTS
The price offered is for shell space only. Berkeley Lake Village is a new office park with office condos available in 1500 square feet
increments. Each building has four units for the total of 6000 square feet in each building.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

26
HORIZON AT NORCROSS
NORCROSS, GA

ON MARKET COMPARABLES
On Market Comparables
6
3311 N Berkeley Lake Road NW
Duluth, GA 30096
Close of Escrow: N/A List Price: N/A

Rentable SF: 6,000 Percent Down: N/A

Year Built: 2007 CAP Rate: N/A

Occupancy: N/A Price/Rentable SF: $130.00

COMMENTS
The price offered is for shell space only. Berkeley Lake Village is a new office park with office condos available in 1500 square feet
increments. Each building has four units for the total of 6000 square feet in each building.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

27
LEASE COMPARABLES
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

LEASE COMPARABLES
Lease Comparables Map

Subject Property
1) Berkeley Lakes
2) S. Berkeley Lakes
3) S. Berkeley Lakes
4) Horizon
5) Horizon
6) Peachtree Industrial Boulevard
7) Spalding
8) Spalding

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

29
HORIZON AT NORCROSS
NORCROSS, GA

LEASE COMPARABLES
Occupancy & Average Rent/SF

20.00

18.00 Avg $17.09


16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00
Subject Berkeley S. S. Horizon Horizon Peachtree Spalding Spalding
Lakes Berkeley Berkeley Industrial
Lakes Lakes Boulevard

AVERAGE RENT/SF

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

30
HORIZON AT NORCROSS
NORCROSS, GA

LEASE COMPARABLES
Lease Comparables
HORIZON AT NORCROSS
4720 Peachtree Industrial Boulevard
Norcross, GA 30071
Date Surveyed: N/A
Rentable SF: 8,849
Occupancy: N/A
Year Built: 2009

SUBJECT PROPERTY

COMMENTS
An owner / user will enjoy below market lease rates when comparing total monthly mortgage payment, principal recapture and
depreciation.

1 BERKELEY LAKES
3321 Berkeley Lake Road
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2007
Rent/SF Available SF Lease Type
$17.00 3,000 Gross

COMMENTS
Berkeley Lake Village is a new office park with office condos available in 1500 square feet increments. Each building has four units
for the total of 6000 square feet in each building.

2 S. BERKELEY LAKES
4535 S. Berkeley Lakes Road
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built/Renovated: N/A
Rent/SF Available SF Lease Type
$15.00 2,500 MG

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

31
HORIZON AT NORCROSS
NORCROSS, GA

LEASE COMPARABLES
Lease Comparables
3 S. BERKELEY LAKES
4537 S. Berkeley Lake Road
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2004
Rent/SF Available SF Lease Type
$15.00 4,500 MG

4 HORIZON
4720 Peachtree Industrial Boulevard #300
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2008
Rent/SF Available SF Lease Type
$14.96 1,203 G

COMMENTS
Horizon at Norcross is a new office condo park on Peachtree Industrial Blvd. The newly built offices all have high end finishes and
the park has a great street scape.

5 HORIZON
4720 Peachtree Industrial Boulevard #100
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2008
Rent/SF Available SF Lease Type
$19.00 1,736 MG

COMMENTS
Horizon at Norcross is a new office condo park on Peachtree Industrial Blvd. The newly built offices all have high end finishes and
the park has a great street scape.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

32
HORIZON AT NORCROSS
NORCROSS, GA

LEASE COMPARABLES
Lease Comparables
6 PEACHTREE INDUSTRIAL BOULEVARD
4729 Peachtree Industrial Boulevard
Norcross, GA 30071
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2005
Rent/SF Available SF Lease Type
$15.00 2,500 NNN

7 SPALDING
5448 Spalding Drive #100
Norcross, GA 30092
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2006
Rent/SF Available SF Lease Type
$19.75 3,000 FS

8 SPALDING
5448 Spalding Drive #200
Norcross, GA 30092
Date Surveyed: N/A
Rentable Square Feet: N/A
Occupancy: N/A
Year Built: 2006
Rent/SF Available SF Lease Type
$21.00 3,000 FS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

33
MARKET OVERVIEW
HORIZON AT NORCROSS
NORCROSS, GA
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

MARKET HIGHLIGHTS
Heavy concentration of corporate and regional
headquarters

• Thirteen Fortune 500 companies are


headquartered in Atlanta.
High median household income

• The median household income is almost 30


percent higher than the national level.
Population growth

• Atlanta’s population growth is expected to


average 2 percent annually through 2012.

Low costs of living and doing business

• Atlanta is ranked in the top 10 among major


MSAs for cost of living and housing affordability.

GEOGRAPHY
Atlanta is nestled in the rolling hills of northwest Georgia. The MSA lacks natural barriers to development.
While several commercial centers have been developed to serve residential areas to the northwest, north and
northeast of the city, urban redevelopment projects are beginning to draw many residents back to live in the
center city. Stone Mountain is the most prominent geological feature of the area. Located east of Atlanta, it is a
major part of a granite vein running through the metro area.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

35
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

COUNTIES
The Atlanta MSA is comprised of 20 counties.
Population of the metro area has more than doubled
during the past 10 years, with an increase of 1.3
million residents. Suburban growth has reached the
outlying counties during the past 10 years. The Atlanta
region contains five of the nation’s 25 fastest-growing
counties. Gwinnett County to the northeast and Cobb
County to the northwest are the largest suburban
counties, and together they account for nearly 30
percent of the population in the Atlanta MSA.

Largest Counties: Atlanta MSA


INFRASTRUCTURE
Atlanta’s extensive and well-developed transportation Fulton 916,000 Clayton 268,000
Gwinnett 726,000 Cherokee 184,000
network is one of its key competitive advantages. The
DeKalb 678,000 Henry 168,000
Hartsfield-Jackson Atlanta International Airport is the
Cobb 664,000 Forsyth 140,390
world’s busiest passenger airport and also a key hub
for air cargo. Atlanta continues to invest in airport
expansion, with $5.4 billion budgeted for the current The world’s busiest passenger airport
10-year development plan. The Metropolitan Atlanta • Served by 32 passenger airlines

Mass Transit Authority operates 47.6 miles of rail mass • Supports 19 cargo carriers

transit with 38 stations, running on four lines that • Home of Delta Air Lines

include a link to the airport, along with 125 bus lines. 6 Regional airports
The system serves 500,000 passengers per day. 3 Interstate freeways
The metro area’s roadway system is one of the nation’s • I-20, I-75, I-85
best, ensuring Atlanta’s status as the pre-eminent 3 Railroad lines
distribution hub of the Southeast. The region is within Atlanta is:
a day’s drive of several growing metro areas, • 251 miles from Savannah (port facilities)

including Charlotte and Orlando. • 637 miles from Washington, D.C.

The Atlanta Regional Commission is embarking on • 721 miles from Chicago

major transportation system improvements, which


• 787 miles from Dallas

include increasing passenger rail miles and a new


regional bus service.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

36
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

ECONOMY
Atlanta’s diverse economic base enables it to continue
its robust expansion. Economic growth during the past
10 years has averaged 3.8 percent annually, well above
the national average of 2.9 percent. Growth is
projected to average 4.1 percent during the next few
years, compared to a 2.3 percent national average.
Leading business sectors include transportation, which
involves one of the nation’s largest concentrations of
air transportation, cargo and warehousing operations.
The technological base includes leading
telecommunications and biosciences industries, as well
as significant defense and auto manufacturing
facilities.
The economy is bolstered by Atlanta’s position as a
leading business and government center. The city
ranks third nationwide as a headquarters city for
Fortune 500 companies and serves as a financial hub
for the Southeast. Numerous governmental and
educational entities are based in Atlanta, such as the
Centers for Disease Control, the Federal Reserve Bank
of Atlanta and more than 30 accredited institutions of
higher learning.
Atlanta is also a leading venue for conventions,
drawing more than 2 million attendees annually. The
Georgia World Congress Center (GWCC) contains 3.9
million square feet, with 1.4 million devoted to exhibit
space. Many national shows such as The National
Association of Home Builders, The Gift Fair in Atlanta
and CHEERSPORT schedule dates at GWCC. These
events are leading solid performance of this sector.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

37
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

LABOR
During the past 10 years, Atlanta nonfarm employment grew an average 1.7 percent per year, above the
national growth rate of 1.1 percent. Nearly 380,000 jobs were added, bringing the total to 2.5 million.
Employment growth is expected to exceed the national average during the next decade. Employers are
attracted to the metro area’s relatively low business costs and the quality of the labor pool. The educational
attainment level of Atlanta’s work force ranks 16th among the 150 largest MSAs in the United States.
The transportation industry continues to be the largest employment sector with more than 560,000 workers,
including 56,000 working at the Hartsfield-Jackson Atlanta International Airport. The sector also derives its
strength from its position as the distribution hub of the Southeast, with numerous large companies locating
warehouse facilities in the area. Employment growth at transportation companies is expected to continue.
The professional and business services sector, with 410,000 employees, averaged 2.6 percent annual growth
during the past five years. Atlanta’s strength as a business center will ensure strong growth in this sector,
forecast at 1.9 percent during each of the next five years. The educational and health services sector continues
to expand along with the population, with 1.9 percent average growth during the past five years expected to
continue at an annual rate of 2.9 percent through 2012. Employment in this sector now stands at 254,000.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

38
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

EMPLOYERS
Atlanta is one of the nation’s leading business centers. In
addition to the 13 Fortune 500 companies that call Atlanta
home, 1,400 companies with more than 100 employees on
their headquarters staff are based in the MSA. Three-
fourths of the Fortune 1,000 companies maintain a
presence in the region. The largest employers include
homegrown businesses such as Coca-Cola and Home
Depot, as well as companies such as United Parcel Service,
which chose to relocate to Atlanta to take advantage of the
high-quality work force, low cost of doing business and
world-leading transportation infrastructure. Top 10 Employers
Gwinnett County Public Schools 27,000
Large employers include transportation companies such as
Emory University 22,000
Delta Air Lines, the largest employer with an Atlanta
Delta Air Lines 19,000
payroll of 19,000, and United Parcel Service, with more
Publix Supermarkets 17,000
than 11,000 employed in the area. Altogether, 56,000 Kroger Co. 15,500
people work in various operations at the Hartsfield- Bellsouth Corp 15,500

Jackson Atlanta International Airport. Major employers Wal-Mart Stores Inc. 14,700
DeKalb County Public Schools 14,500
include telecommunications companies such as BellSouth
UPS 14,000
and AT&T, with a combined employment of more than
Home Depot 13,200
25,000. Nearly 75,000 people are employed in Atlanta’s
technology industry. The MSA also hosts a robust
biotechnology industry and defense manufacturer
Lockheed Martin, which employs 7,500 at its operations in
Marietta.
Atlanta is the largest city in the region and thus has the
largest concentration of government and financial offices
in the Southeast. Major public and population-serving
employers include the Centers for Disease Control,
military facilities, public school districts and Emory
University, and large retailers such as Kroger and Wal-
Mart.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

39
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

DEMOGRAPHICS
Atlanta’s emergence as a world-class business center,
along with the population shift from the Sun Belt
areas, has driven rapid population growth in the
Atlanta region. During the past 10 years, Atlanta’s
population grew by 1.2 million, the second most of any
U.S. MSA, and the city is now the nation’s ninth
largest.
The largest increases have been in the northern
suburbs, with Gwinnett County, northeast of the city
center, adding 435,000 residents since 1990 and
becoming the region’s second-most populous county
with 788,000 residents. Cobb County, to the northwest,
added another 250,000 residents and now has a total of
695,000. Counties comprising the city center include
Fulton, the largest with 986,000 residents, and DeKalb,
with 735,000. Population in these counties continues to
grow, albeit at a lower rate, particularly as downtown
redevelopment entices many Atlanta residents to
move into town to enjoy an urban lifestyle. Rapid
growth is also occurring in smaller outlying counties.
The population is relatively young with a median age
of 34.3 years. Educational attainment is high, and the
city ranks sixth nationwide in its proportion of
university graduates and second among major cities.
Job quality is relatively high, reflected in a median
household income of $61,000 per year, 22 percent
higher than the national median of $50,000.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

40
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

QUALITY OF LIFE
The Atlanta metro area features a growing business
environment, economy and infrastructure while
providing entertainment and attractions in a safe and
comfortable community. Combined with genuine
southern hospitality, Atlanta boasts a lifestyle that is
unparalleled.
The below average cost of living and affordable housing
allows citizens to lead prosperous lives in Atlanta. The
cost of living index is 96 percent of the national average
and the median home price is approximately 20 percent
below the national median. Metro residents are able to
choose from a variety of living options, ranging from
urban to rural settings.
Outdoor and sports enthusiasts will find plenty to
enjoy. Year-round mild weather beckons residents to
hike and bike on the many trails in and around Atlanta.
Atlanta is also one of the few cities in the nation to host
professional teams in all four major sports.
The metro area boasts several nationally acclaimed
cultural institutions, including Zoo Atlanta and the
High Museum of Art. Central Atlanta continues its
urban renaissance, and residents can enjoy an
abundance of nightclubs and restaurants. Additional
attractions include the Georgia Aquarium and the new
World of Coca-Cola museum at Atlantic Station.
More than 30 institutions of higher learning call Atlanta
home, including Emory University, Georgia Institute of
Technology and Spelman College. Georgia Tech has
maintained its top-10 national ranking in several
specialties, and Emory University continues to be
nationally ranked by major media publications.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

41
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta
Outlying Areas Struggle, but Impact on Downtown Minimal
Counter to the national trend, office construction activity in Atlanta will accelerate in 2009. Supply growth in
the metro has averaged 1.5 percent annually for the past decade, significantly above the average office-using
employment expansion rate of 0.4 percent per year. This oversupply is affecting performance measures. In
Buckhead, for instance, nearly 1.5 million square feet in three towers - Two Alliance Center, 3630 Peachtree
and Terminus 200 - is projected in the next 18 months, which will push up area vacancy to the low-20 percent
range, the highest rate in more than 10 years. Consequently, large blocks of vacant space will likely present
opportunities for tenants seeking concessions. Additionally, some office tenants will move north to Buckhead
from the Downtown submarket, leading to negative net absorption of approximately 500,000 square feet and
elevating vacancy to 25 percent in the CBD.

In Atlanta's investment market, transaction velocity continued to taper off last year and will remain slow in
2009. The deceleration is due to the growing disconnect between buyers' and sellers' pricing expectations. Cap
rates in the metro currently average in the low- to high-7 percent range, though a few recently closed deals
involving Class B/C assets priced with initial yields in the mid-8 percent range. Some experienced, private-
equity investors, long absent from the local buyer pool, are positioning themselves for discounted acquisitions
as the market weakens. Looking ahead, investors seeking to place equity may investigate the North Fulton
submarket, where the prospect of tenant demand growth continues to be fueled by the area's expanding
population.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

42
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta
2009 Market Outlook
• 2009 NOPI Rank: 28, Down 5 Places. Atlanta dropped five spots in the ranking this year due to rising
completions and a vacancy level that will exceed the national average.

• Employment Forecast: Local employers are projected to shed 37,500 workers in 2009, a 1.6 percent
decrease; 81,600 jobs were eliminated last year. In office-using sectors, 11,600 positions will be cut this
year, or 1.8 percent, after 23,000 office spots were lost in 2008.
• Construction Forecast: Builders are forecast to complete 1.9 million square feet of for-lease office space in
2009, following the delivery of 1.7 million square feet last year

• Vacancy Forecast: Slackening demand and additions to supply will drive up vacancy 380 basis points this
year to 20.4 percent. In 2008, negative absorption of 1.3 million square feet caused vacancy to rise 150 basis
points.

• Rent Forecast: Asking rents are forecast to decline 4.9 percent to $20.37 per square foot in 2009, while
effective rents are expected to fall 6.6 percent to $16.50 per square foot.

• Investment Forecast: Investors will likely target properties in the North Fulton, Roswell, Alpharetta and
Perimeter submarkets this year due to the areas' above-average population growth.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

43
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

MARKET HIGHLIGHTS
Heavy concentration of corporate and regional
headquarters

• Thirteen Fortune 500 companies are


headquartered in Atlanta.
High median household income

• The median household income is almost 30


percent higher than the national level.
Population growth

• Atlanta’s population growth is expected to


average 2 percent annually through 2012.

Low costs of living and doing business

• Atlanta is ranked in the top 10 among major


MSAs for cost of living and housing affordability.

GEOGRAPHY
Atlanta is nestled in the rolling hills of northwest Georgia. The MSA lacks natural barriers to development.
While several commercial centers have been developed to serve residential areas to the northwest, north and
northeast of the city, urban redevelopment projects are beginning to draw many residents back to live in the
center city. Stone Mountain is the most prominent geological feature of the area. Located east of Atlanta, it is a
major part of a granite vein running through the metro area.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

44
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

COUNTIES
The Atlanta MSA is comprised of 20 counties.
Population of the metro area has more than doubled
during the past 10 years, with an increase of 1.3
million residents. Suburban growth has reached the
outlying counties during the past 10 years. The Atlanta
region contains five of the nation’s 25 fastest-growing
counties. Gwinnett County to the northeast and Cobb
County to the northwest are the largest suburban
counties, and together they account for nearly 30
percent of the population in the Atlanta MSA.

Largest Counties: Atlanta MSA


INFRASTRUCTURE
Atlanta’s extensive and well-developed transportation Fulton 916,000 Clayton 268,000
Gwinnett 726,000 Cherokee 184,000
network is one of its key competitive advantages. The
DeKalb 678,000 Henry 168,000
Hartsfield-Jackson Atlanta International Airport is the
Cobb 664,000 Forsyth 140,390
world’s busiest passenger airport and also a key hub
for air cargo. Atlanta continues to invest in airport
expansion, with $5.4 billion budgeted for the current The world’s busiest passenger airport
10-year development plan. The Metropolitan Atlanta • Served by 32 passenger airlines

Mass Transit Authority operates 47.6 miles of rail mass • Supports 19 cargo carriers

transit with 38 stations, running on four lines that • Home of Delta Air Lines

include a link to the airport, along with 125 bus lines. 6 Regional airports
The system serves 500,000 passengers per day. 3 Interstate freeways
The metro area’s roadway system is one of the nation’s • I-20, I-75, I-85
best, ensuring Atlanta’s status as the pre-eminent 3 Railroad lines
distribution hub of the Southeast. The region is within Atlanta is:
a day’s drive of several growing metro areas, • 251 miles from Savannah (port facilities)

including Charlotte and Orlando. • 637 miles from Washington, D.C.

The Atlanta Regional Commission is embarking on • 721 miles from Chicago

major transportation system improvements, which


• 787 miles from Dallas

include increasing passenger rail miles and a new


regional bus service.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

45
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

ECONOMY
Atlanta’s diverse economic base enables it to continue
its robust expansion. Economic growth during the past
10 years has averaged 3.8 percent annually, well above
the national average of 2.9 percent. Growth is
projected to average 4.1 percent during the next few
years, compared to a 2.3 percent national average.
Leading business sectors include transportation, which
involves one of the nation’s largest concentrations of
air transportation, cargo and warehousing operations.
The technological base includes leading
telecommunications and biosciences industries, as well
as significant defense and auto manufacturing
facilities.
The economy is bolstered by Atlanta’s position as a
leading business and government center. The city
ranks third nationwide as a headquarters city for
Fortune 500 companies and serves as a financial hub
for the Southeast. Numerous governmental and
educational entities are based in Atlanta, such as the
Centers for Disease Control, the Federal Reserve Bank
of Atlanta and more than 30 accredited institutions of
higher learning.
Atlanta is also a leading venue for conventions,
drawing more than 2 million attendees annually. The
Georgia World Congress Center (GWCC) contains 3.9
million square feet, with 1.4 million devoted to exhibit
space. Many national shows such as The National
Association of Home Builders, The Gift Fair in Atlanta
and CHEERSPORT schedule dates at GWCC. These
events are leading solid performance of this sector.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

46
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

LABOR
During the past 10 years, Atlanta nonfarm employment grew an average 1.7 percent per year, above the
national growth rate of 1.1 percent. Nearly 380,000 jobs were added, bringing the total to 2.5 million.
Employment growth is expected to exceed the national average during the next decade. Employers are
attracted to the metro area’s relatively low business costs and the quality of the labor pool. The educational
attainment level of Atlanta’s work force ranks 16th among the 150 largest MSAs in the United States.
The transportation industry continues to be the largest employment sector with more than 560,000 workers,
including 56,000 working at the Hartsfield-Jackson Atlanta International Airport. The sector also derives its
strength from its position as the distribution hub of the Southeast, with numerous large companies locating
warehouse facilities in the area. Employment growth at transportation companies is expected to continue.
The professional and business services sector, with 410,000 employees, averaged 2.6 percent annual growth
during the past five years. Atlanta’s strength as a business center will ensure strong growth in this sector,
forecast at 1.9 percent during each of the next five years. The educational and health services sector continues
to expand along with the population, with 1.9 percent average growth during the past five years expected to
continue at an annual rate of 2.9 percent through 2012. Employment in this sector now stands at 254,000.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

47
HORIZON AT NORCROSS
NORCROSS, GA

MARKET OVERVIEW
Atlanta

EMPLOYERS
Atlanta is one of the nation’s leading business centers. In
addition to the 13 Fortune 500 companies that call Atlanta
home, 1,400 companies with more than 100 employees on
their headquarters staff are based in the MSA. Three-
fourths of the Fortune 1,000 companies maintain a
presence in the region. The largest employers include
homegrown businesses such as Coca-Cola and Home
Depot, as well as companies such as United Parcel Service,
which chose to relocate to Atlanta to take advantage of the
high-quality work force, low cost of doing business and
world-leading transportation infrastructure. Top 10 Employers
Gwinnett County Public Schools 27,000
Large employers include transportation companies such as
Emory University 22,000
Delta Air Lines, the largest employer with an Atlanta
Delta Air Lines 19,000
payroll of 19,000, and United Parcel Service, with more
Publix Supermarkets 17,000
than 11,000 employed in the area. Altogether, 56,000 Kroger Co. 15,500
people work in various operations at the Hartsfield- Bellsouth Corp 15,500

Jackson Atlanta International Airport. Major employers Wal-Mart Stores Inc. 14,700
DeKalb County Public Schools 14,500
include telecommunications companies such as BellSouth
UPS 14,000
and AT&T, with a combined employment of more than
Home Depot 13,200
25,000. Nearly 75,000 people are employed in Atlanta’s
technology industry. The MSA also hosts a robust
biotechnology industry and defense manufacturer
Lockheed Martin, which employs 7,500 at its operations in
Marietta.
Atlanta is the largest city in the region and thus has the
largest concentration of government and financial offices
in the Southeast. Major public and population-serving
employers include the Centers for Disease Control,
military facilities, public school districts and Emory
University, and large retailers such as Kroger and Wal-
Mart.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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MARKET OVERVIEW
Atlanta

DEMOGRAPHICS
Atlanta’s emergence as a world-class business center,
along with the population shift from the Sun Belt
areas, has driven rapid population growth in the
Atlanta region. During the past 10 years, Atlanta’s
population grew by 1.2 million, the second most of any
U.S. MSA, and the city is now the nation’s ninth
largest.
The largest increases have been in the northern
suburbs, with Gwinnett County, northeast of the city
center, adding 435,000 residents since 1990 and
becoming the region’s second-most populous county
with 788,000 residents. Cobb County, to the northwest,
added another 250,000 residents and now has a total of
695,000. Counties comprising the city center include
Fulton, the largest with 986,000 residents, and DeKalb,
with 735,000. Population in these counties continues to
grow, albeit at a lower rate, particularly as downtown
redevelopment entices many Atlanta residents to
move into town to enjoy an urban lifestyle. Rapid
growth is also occurring in smaller outlying counties.
The population is relatively young with a median age
of 34.3 years. Educational attainment is high, and the
city ranks sixth nationwide in its proportion of
university graduates and second among major cities.
Job quality is relatively high, reflected in a median
household income of $61,000 per year, 22 percent
higher than the national median of $50,000.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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MARKET OVERVIEW
Atlanta

QUALITY OF LIFE
The Atlanta metro area features a growing business
environment, economy and infrastructure while
providing entertainment and attractions in a safe and
comfortable community. Combined with genuine
southern hospitality, Atlanta boasts a lifestyle that is
unparalleled.
The below average cost of living and affordable housing
allows citizens to lead prosperous lives in Atlanta. The
cost of living index is 96 percent of the national average
and the median home price is approximately 20 percent
below the national median. Metro residents are able to
choose from a variety of living options, ranging from
urban to rural settings.
Outdoor and sports enthusiasts will find plenty to
enjoy. Year-round mild weather beckons residents to
hike and bike on the many trails in and around Atlanta.
Atlanta is also one of the few cities in the nation to host
professional teams in all four major sports.
The metro area boasts several nationally acclaimed
cultural institutions, including Zoo Atlanta and the
High Museum of Art. Central Atlanta continues its
urban renaissance, and residents can enjoy an
abundance of nightclubs and restaurants. Additional
attractions include the Georgia Aquarium and the new
World of Coca-Cola museum at Atlantic Station.
More than 30 institutions of higher learning call Atlanta
home, including Emory University, Georgia Institute of
Technology and Spelman College. Georgia Tech has
maintained its top-10 national ranking in several
specialties, and Emory University continues to be
nationally ranked by major media publications.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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MARKET OVERVIEW
Atlanta
Outlying Areas Struggle, but Impact on Downtown Minimal
Counter to the national trend, office construction activity in Atlanta will accelerate in 2009. Supply growth in
the metro has averaged 1.5 percent annually for the past decade, significantly above the average office-using
employment expansion rate of 0.4 percent per year. This oversupply is affecting performance measures. In
Buckhead, for instance, nearly 1.5 million square feet in three towers - Two Alliance Center, 3630 Peachtree
and Terminus 200 - is projected in the next 18 months, which will push up area vacancy to the low-20 percent
range, the highest rate in more than 10 years. Consequently, large blocks of vacant space will likely present
opportunities for tenants seeking concessions. Additionally, some office tenants will move north to Buckhead
from the Downtown submarket, leading to negative net absorption of approximately 500,000 square feet and
elevating vacancy to 25 percent in the CBD.

In Atlanta's investment market, transaction velocity continued to taper off last year and will remain slow in
2009. The deceleration is due to the growing disconnect between buyers' and sellers' pricing expectations. Cap
rates in the metro currently average in the low- to high-7 percent range, though a few recently closed deals
involving Class B/C assets priced with initial yields in the mid-8 percent range. Some experienced, private-
equity investors, long absent from the local buyer pool, are positioning themselves for discounted acquisitions
as the market weakens. Looking ahead, investors seeking to place equity may investigate the North Fulton
submarket, where the prospect of tenant demand growth continues to be fueled by the area's expanding
population.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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MARKET OVERVIEW
Atlanta
2009 Market Outlook
• 2009 NOPI Rank: 28, Down 5 Places. Atlanta dropped five spots in the ranking this year due to rising
completions and a vacancy level that will exceed the national average.

• Employment Forecast: Local employers are projected to shed 37,500 workers in 2009, a 1.6 percent
decrease; 81,600 jobs were eliminated last year. In office-using sectors, 11,600 positions will be cut this
year, or 1.8 percent, after 23,000 office spots were lost in 2008.
• Construction Forecast: Builders are forecast to complete 1.9 million square feet of for-lease office space in
2009, following the delivery of 1.7 million square feet last year

• Vacancy Forecast: Slackening demand and additions to supply will drive up vacancy 380 basis points this
year to 20.4 percent. In 2008, negative absorption of 1.3 million square feet caused vacancy to rise 150 basis
points.

• Rent Forecast: Asking rents are forecast to decline 4.9 percent to $20.37 per square foot in 2009, while
effective rents are expected to fall 6.6 percent to $16.50 per square foot.

• Investment Forecast: Investors will likely target properties in the North Fulton, Roswell, Alpharetta and
Perimeter submarkets this year due to the areas' above-average population growth.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
HORIZON AT NORCROSS
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HORIZON AT NORCROSS
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DEMOGRAPHIC ANALYSIS
Demographic Report
1 Miles: 3 Miles: 5 Miles:

1990 Population 2,918 38,675 107,917


2000 Population 5,938 65,020 177,062
2008 Population 6,694 79,362 206,841
2013 Population 7,121 87,885 228,379

1990 Households 1,316 15,164 43,030


2000 Households 2,298 24,168 65,051
2008 Households 2,477 28,378 71,970
2013 Households 2,584 30,889 77,807
2008 Average Household Size 2.70 2.78 2.85

2008 Daytime Population 4,501 60,431 156,935

1990 Median Housing Value $140,322 $104,499 $101,194


2000 Median Housing Value $215,191 $157,350 $161,619

2000 Owner Occupied Housing Units 69.6% 59.6% 54.0%


2000 Renter Occupied Housing Units 27.8% 36.9% 42.2%
2000 Vacant 2.62% 3.48% 3.79%

2008 Owner Occupied Housing Units 63.3% 52.9% 49.9%


2008 Renter Occupied Housing Units 28.1% 37.1% 39.4%
2008 Vacant 8.66% 9.96% 10.69%

2013 Owner Occupied Housing Units 61.5% 50.8% 48.1%


2013 Renter Occupied Housing Units 27.7% 36.8% 38.5%
2013 Vacant 10.91% 12.39% 13.40%

$ 0 - $ 14,999 2.6% 4.2% 4.5%


$ 15,000 - $24,999 4.2% 4.7% 5.0%
$ 25,000 - $34,999 5.9% 6.9% 7.3%
$ 35,000 - $49,999 9.9% 13.3% 14.1%
$ 50,000 - $74,999 14.1% 21.3% 21.0%
$ 75,000 - $99,999 13.2% 15.2% 13.8%
$100,000 - $124,999 13.7% 11.1% 10.4%
$125,000 - $149,999 9.6% 7.2% 7.1%
$150,000 - $200,000 13.0% 7.9% 7.1%
$200,000 to $249,999 5.9% 3.2% 3.0%
$250,000 + 8.1% 5.3% 6.6%

Median Household Income $100,455 $74,643 $72,424


Per Capita Income $40,709 $32,487 $33,354
Average Household Income $112,064 $91,016 $94,621

Demographic data © 2008 by Experian/Applied Geographic Solutions.


This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
Summary Report
Geography: 5 Miles

Population
In 2008, the population in your selected geography is 206,841. The population has changed by 16.82% since 2000. It is
estimated that the population in your area will be 228,379 five years from now, which represents a change of 10.41%
from the current year. The current population is 51.13% male and 48.87% female. The median age of the population in
your area is 33.2, compare this to the US average which is 36.9. The population density in your area is 2,633.58 people
per square mile.

Households
There are currently 71,970 households in your selected geography. The number of households has changed by 10.64%
since 2000. It is estimated that the number of households in your area will be 77,807 five years from now, which
represents a change of 8.11% from the current year. The average household size in your area is 2.85 persons.

Income
In 2008, the median household income for your selected geography is $72,424, compare this to the $US average which
is currently $52,599. The median household income for your area has changed by 26.38% since 2000. It is estimated that
the median household income in your area will be $80,829 five years from now, which represents a change of 11.61%
from the current year.

The current year per capita income in your area is $33,354, compare this to the $US average, which is $26,464. The
current year average household income in your area is $94,621, compare this to the $US average which is $68,953.

Race & Ethnicity


The current year racial makeup of your selected area is as follows: 49.04% White, 24.35% Black, 0.23% Native American
and 13.05% Asian/Pacific Islander. Compare these to US% averages which are: 73.52% White, 12.40% Black, 0.77%
Native American and 4.60% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 27.38% of the current
year population in your selected area. Compare this to the US% average of 15.50%.

Housing
The median housing value in your area was $161,619 in 2000, compare this to the $US average of $115,194 for the same
year. In 2000, there were 36,494 owner occupied housing units in your area and there were 28,558 renter occupied
housing units in your area. The median rent at the time was $741.

Employment
In 2008, there are 156,935 employees in your selected area, this is also known as the daytime population. The 2000
Census revealed that 70.6% of employees are employed in white-collar occupations in this geography, and 29.4% are
employed in blue-collar occupations. In 2008, unemployment in this area is 6.87%. In 2000, the median time traveled to
work was 28.2 minutes.

Demographic data © 2008 by Experian/Applied Geographic Solutions.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
Population Density

Demographic data © 2008 by Experian/Applied Geographic Solutions.

Population Density
Theme Low High
High 170 or more
Above Average 107 170
Average 67 107
Below Average 42 67
Low less than 42
Number of people living in a given area per square
mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
Employment Density

Demographic data © 2008 by Experian/Applied Geographic Solutions.

Employment Density
Theme Low High
High 80 or more
Above Average 50 80
Average 32 50
Below Average 20 32
Low less than 20
The number of people employed in a given area per
square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
Average Household Income

Demographic data © 2008 by Experian/Applied Geographic Solutions.

Average Household Income


Theme Low High
High $137,906 or more
Above Average $86,875 $137,906
Average $54,728 $86,875
Below Average $34,477 $54,728
Low less than $34,477
Average income of all the people 15 years and older
occupying a single housing unit.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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DEMOGRAPHIC ANALYSIS
Traffic Counts

Traffic Count data © 2008 by TrafficMetrix. All rights reserved. Two-way, average daily traffic

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or
implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the
information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus
& Millichap Real Estate Investment Services of Atlanta, Inc. © 2009 Marcus & Millichap Q0230158

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