OFFERING MEMORANDUM BINGHAMTON, NY

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OFFERING MEMORANDUM 100 EMERSON PARKWAY <INSERT KEY CALLOUT> BINGHAMTON, NY 13905-6625 For more information, please

1 OFFERING MEMORANDUM 100 EMERSON PARKWAY <INSERT KEY CALLOUT> BINGHAMTON, NY For more information, please contact: MAUREEN WILSON; CCIM, SIOR President - Binghamton Real Estate Broker (607) x323 Mwilson@pyramidbrokerage.com LEO F. JONES Director of Sales Associate Real Estate Broker (607) x317 Ljones@pyramidbrokerage.com PYRAMID BROKERAGE COMPANY 84 Court Street; Suite 300 Binghamton, NY (607) Fax: (607) pyramidbrokerage.com

2 Table of Contents Section I Confidentiality and Conditions Offering Summary Section II The Property Property Description Tax Map Assessments & Taxes Zoning Property Photos Site Plan Floor Plan Survey Section III Location Information About the Area Location Map Location Aerial Demographics Section IV ADDENDUM

3 SECTION I Confidentiality and Conditions Offering Summary

4 Confidentiality and Conditions SECTION I This Brochure was prepared by Pyramid Brokerage Company and has been reviewed by the owner of the Property ( Owner ). It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information, which a prospective purchaser might desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition, and other factors beyond control, and therefore, are subject to material change or variation. In this Brochure, certain documents and other materials are described in summary form. The summaries do not purport to be complete, nor necessarily accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Brochure is subject to prior placement, error, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advise as to the value of the Property by Pyramid Brokerage Company or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. Nothing contained in this Brochure shall constitute a representation or warranty of Pyramid Brokerage Company or the Owner. Owner and Pyramid Brokerage Company expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offer to purchase the Property and/or terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this Brochure or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Owner and any conditions to Owner s obligations hereunder have been satisfied or waived. Pyramid Brokerage Company is not authorized to make any representations or agreement on behalf of Owner. This Brochure is the Property of Pyramid Brokerage Company and may be used only by parties approved by Pyramid Brokerage Company. The Property is privately offered and by accepting this Brochure, the party in possession hereof agrees (i) to return it to Pyramid Brokerage Company immediately upon request of Pyramid Brokerage Company or Owner and (ii) that this Brochure and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Brochure may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Pyramid Brokerage Company and Owner. The terms and conditions set forth above apply to this Brochure in its entirety. For additional information regarding the proposed transaction with respect to the Property, please contact the following: Maureen Wilson President Binghamton Real Estate Broker (o) x323 (m) Mwilson@pyramidbrokerage.com Leo F. Jones Director of Sales Associate Real Estate Broker (o) x317 (m) Ljones@pyramidbrokerage.com

5 Offering Summary SECTION I THE OFFERING Pyramid Brokerage Company has been retained to exclusively represent the owner in the sale of an existing building located at 100 Emerson Parkway Binghamton, New York The offering price for the property is $2,800,000. OFFERING PROCEDURES The Owner will consider all qualified offers on the property. Offers and letters of interest or intent are to be submitted through Pyramid Brokerage Company. PROPERTY OVERVIEW The property, occupied for only seven years, is a state of the art facility with almost 40,000 square feet of space built to maximize flexibility and productivity. The building has uniform ceiling clearances and floor loading capability throughout with an equipotential grounding system built into the slab. Provision has been made for an expansion of up to 13,000 square feet. The many specialized electronic features include an on-site transformer, and a battery driven UPS system backed up by a natural gas driven generator. The property will be eligible for a Payment in Lieu of Taxes program through the Agency (Broome County s Industrial Development Agency). Alternatively, the purchasing entity could be eligible for an array of tax abatements included in the Start-Up New York Program. Additional economic development programs that could apply to a new user include, the Excelsior Program, the Upstate Revitalization Initiative, and the 76 West Clean Energy Competition.

6 SECTION II Property Description Tax Map Assessment & Taxes Zoning Property Photos Site Plan Floor Plan Survey

7 Property Description SECTION II Address: 100 Emerson Parkway Binghamton, NY Utilities: City water and sewer NYSEG Gas & Electric Tax ID: Year Built: 2009 Site Size: 5.13 acres Foundation: Poured concrete Gross Building Area: 37,846 SF Exterior Walls: Metal panels Breakdown (apprx) Shape/Topography: Office: 15,000 SF Manufacturing & loading: 17,846 SF Lab & testing: 5,000 SF Level site Ceiling Heights Roof: Floor: throughout (to deck) Insulated metal roof 6 reinforced slab Ingress/Egress: From West Street Located between exits 71 & 72, Route17/I86 Lighting: HVAC: Energy efficient fluorescent ballasts Air conditioning and gas-fired forced hot air via roof top units Parking: 89 spaces including handicapped *Please see detailed building information on following pages

8 Detailed Building Information SECTION II UTILITIES Electric service: Sprinklers: 2000 amp; 277/480 volts Transformer on site UPS throughout facility Backup generator, gas powered Wet system; 8 riser FEATURES OF LAB AND TESTING AREA SPECIAL BUILDING FEATURES 12 independent test chambers Transformer bank to facilitate variable test conditions FEATURES OF OFFICE AREA Two areas of wired cubicles Numerous private offices All office furniture, phones, and A/V equipment to remain Five conference rooms of varying sizes with teleconferencing, screens, projectors and other special features Telephone system & equipment with VOIP IP room with server racks, network cabling, redundant fiber optic, UPS system FEATURES OF MANUFACTURING AREA Steel structure with uniform ceiling heights for flexibility Slab has equipotential grounding system Redundant fiber optic services 13 roof top HVAC units are independently controlled Cafeteria with fully equipped kitchen Security system with interior and exterior monitoring cameras / motion detectors Computerized badge access system Flat screen television monitors Oil separation pit for rainwater runoff Expansion capacity of 13,000 SF to deck 6 reinforced slab overall with 12 isolation pad for heavy loads One 14 grade-level door Two docks with hydraulic levelers and shelters Buss duct and air drops throughout

9 Tax Map SECTION II

10 Assessment and Taxes SECTION II According to the assessment records of the City of Binghamton the current assessment for the subject property is as follows: Assessment TAX ID# LAND ASSESSMENT TOTAL ASSESSMENT FULL MARKET VALUE $350,000 $4,500,000 $5,421,687 New York State has a competitive package of economic development incentives and programs for tax abatement to offer to companies that provide job creation and retention and companies that are engaged in technology development and advanced manufacturing. Like many other industrial development sites in the Southern Tier of New York, the construction of 100 Emerson Parkway was leveraged by investments from Empire State Development and the Broome County Industrial Development Agency ( The Agency ). In addition the property is located in an area designated as a New York Empire Zone. When the property was developed in 2009, it qualified for a 10 year real property tax abatement under the Empire Zones program. The abatement was at 100% for the past seven years and is scheduled to phase out at 75%, 50% and 25% over the remaining three years of the term. To date no taxes have been paid on the developed property. It is in the interest of the community to provide continued tax abatement and economic development assistance to a purchasing company that will create or retain jobs in the market. Since the Empire Zone benefits are nearing termination and the Empire Zone program has been phased out, other statewide incentives, such as the Excelsior Program, which replaced the Empire Zones program for manufacturing companies, can provide the basis for incentivizing job creation. The Start-Up New York program is an alternative opportunity that provides benefits to qualifying companies through a wide array of tax abatements. A PILOT program, or Payment in Lieu of Taxes, granted and administered through the IDA, may offer the best alternative for continued tax abatement to a company purchasing 100 Emerson Parkway. The IDA, now called The Agency, offers a standard 15 year PILOT program and has the ability to consider a non-standard program stretching beyond that term. Companies expressing interest in a purchase of 100 Emerson Parkway will be referred to The Agency and its partners, including the City of Binghamton, to discuss economic development incentives and tax abatement programs. Please refer to the Addendum to this offering for more detailed explanations of these incentives and tax abatement programs.

Uses permitted within this district include: Use 1 Use 2 Use 3 Office business or

11 Zoning SECTION II According to the Code Enforcement Office for the City of Binghamton, the subject property is zoned Urban Business Park. Uses permitted within this district include: Use 1 Use 2 Use 3 Office business or professional Industrial light or medium (special use permit) Industrial research and development (special use permit)

12 Property Photos SECTION II South façade and entrance North facade- 1 of 2 loading docks Transformer and generator north side Main Entrance Lobby Conference areas Lobby

13 Property Photos SECTION II Conference area Hallway with private offices Smaller private meeting room UPS system & Network server

14 Property Photos SECTION II Manufacturing Manufacturing Manufacturing & Racking Manufacturing 12 isolation slab

15 Property Photos SECTION II Computerized compressors Dock area Racking & assembly Assembly

16 Property Photos SECTION II 2 of 12 test chambers Mezzanine transformer bank Lab & testing area View from lobby Lab and testing area

17 Property Photos SECTION II Main conference (opens to hallway) Board room with hospitality Board room Planning room

18 Property Photos SECTION II Cafeteria Kitchen area Cafeteria - seating Office pod with furniture Office pod with furniture

19 Site Plan SECTION II

20 Floor Plan SECTION II

21 Survey of Site and Surrounding Business Park SECTION II

22 SECTION III About the Area Location Map Location Aerial Demographics

23 About The Area SECTION III Binghamton Area Profile: The Binghamton MSA, located in the Southern Tier of New York, is comprised of Broome County and neighboring Tioga County, with a total population of 250,000. As of 2014 the City of Binghamton s population was 46,299. Binghamton is a Logistical Hub: Located at the intersection of 181, 188 and Route 17/186, with easy access to major metropolitan areas in the Northeast including Philadelphia, New York, Boston, and Scranton/Wilkes-Barre, as well as Upstate New York cities including Albany, Rochester and Syracuse. Companies in the Binghamton Area: IBM and Link Flight Simulator were founded in the region. Top companies in the area today include: Defense Contractors and Electronics Manufacturers BAE Raymond Corporation Systems Lockheed-Martin Rockwell Collins I3 Electronics, Inc L-3 Communications Food Distribution Companies (Two large privately held companies) Willow Run Foods Maines Paper & Food Education and Healthcare Employers: Binghamton University / SUNY Broome Community College - Binghamton is home to Binghamton University, a growing research-oriented university with an enrollment over 17,000, ranked in the top twenty public universities in the country. Binghamton University is at the forefront of high tech research and development in a number of fields including smart energy, integrated electronics packaging, flexible circuitry and 3-D printing. In addition, the University is developing a new Pharmacy School and relocating its nursing program to create a separate bio-tech oriented campus. The University and SUNY Broome are developing a 30,000 sf high-tech incubator for research and early stage business development. ECONOMIC DEVELOPMENT OPPORTUNITIES In December 2015, the Southern Tier Regional Economic Development Council emerged as one of the three winners in a competition for five-hundred million dollars in state economic development benefits over the next five years. In addition to targeted development projects, the Council s winning plan focuses on fostering emerging technologies, leveraged by private investment and research initiatives at Binghamton University and Cornell. This potential for economic growth has created increasing optimism and energy in the region. In addition, the Governor s Start-Up New York program offers the opportunity for new companies and companies relocating to the area from out-of-state to align themselves with Binghamton University or SUNY Broome Community College to take advantage of tax abatement programs in exchange for job creation. In this context, the availability of the pristine, state-of-the-art facility at 100 Emerson Parkway offers new users a multitude of opportunities to leverage economic development benefits to grow businesses ranging from call centers, to data centers to electronics, bio-tech, and alternative energy research and development.

24 Location Map SECTION III Exit 71 Exit 72 City of Binghamton

25 Location Aerial SECTION III

Demographic Summary SECTION III DEMOGRAPHIC & INCOME

Population 76,736 99,802 173,940 Households 31,135

26 Demographic Summary SECTION III DEMOGRAPHIC & INCOME PROFILE SUMMARY 3 Miles 5 Miles 10 Miles Population 76,736 99, ,940 Households 31,135 40,776 72,216 Median Household Income $36,191 $40,559 $46, mile radius 11.7% Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020

27 PREPARED BY: MAUREEN WILSON, CCIM, SIOR President Binghamton Real Estate Broker O (607) x323 M (607) Court Street; Suite 300 Binghamton, NY Mwilson@pyramidbrokerage.com LEO F. JONES Director of Sales Associate Real Estate Broker O (607) x317 M (607) Court Street; Suite 300 Binghamton, NY Ljones@pyramidbrokerage.com

28 ADDENDUM NY Economic Incentives Start-Up NY Excelsior 76 West Clean Energy Competition Southern Tier REDC & URI Uniform Tax Exemption Policy (PILOT Program)

29 NY Economic Incentive Programs ADDENDUM Start-Up NY Program Start-Up New York is a new program that creates tax-free zones for businesses on college campuses. Tax-free space can be located on: Vacant space in campus buildings Vacant land owned by the college 200,000 square feet of vacant land or building space within one mile of the campus Business incubator with affiliation with a SUNY campus Eligible businesses must be: A new company in New York State Be a company from out-of-state that is relocating to New York State; or Be an expansion of a company that already has employees in New York State. Expanding businesses applying for START-UP NY will have to demonstrate that they are creating new jobs and not moving existing jobs from elsewhere in the State. A business must align with or support a school s academic mission In downstate, business must be R&D or a start-up business Businesses NOT eligible include: Retail and wholesale businesses Restaurants Real estate brokers Law firms Medical or dental practices Real estate management companies Hospitality; finance and financial services Tax benefits for eligible businesses include: No income tax for employees located in tax-free zone for 1st five years. For next five years, tax-exempt up to $250,000 for single payer. No business or corporate state income tax. No local real property taxes. No sales tax. (Paid and then reimbursed) No property tax. (Unless on private college campus then an IDA could abate) No franchise fees. Source:

30 NY Economic Incentive Programs ADDENDUM Excelsior Program The Excelsior Program was created to replace the Empire Zones program, which expired on June 30, The program was specifically designed to encourage the expansion in and location to New York of businesses in growth industries such as clean tech, broadband, information systems, renewable energy, and biotechnology. The program essentially contains four components: The Excelsior Jobs Tax Credit; 6.85 % x the salary or wage of each net new employee The Excelsior Investment Tax Credit; 2 percent refundable for eligible investment The Excelsior Research and Development Tax Credit; 50 percent of businesses federal R & D credit and capped at 3 percent of total eligible R&D investment in NYS. The Excelsior Real Property Tax Credit; The RPTC is a 10 year credit that is based on the improved value of real property due to the project. Value of credit is: 1st year > 50 percent; 2nd year > 45 percent; 3rd year > 40 percent; 4th year > 35 percent; 5th year > 30 percent; etc. Utilities may offer a discounted Excelsior Jobs Program rate. 76 WEST Clean Energy Competition 76West is an unparalleled competition focused on growing entrepreneurs in the region and attracting resources from the U.S. and around the world to build clean energy businesses and jobs in New York State s Southern Tier Region. NYSERDA sponsors the competition, which offers $10 million in prize money, including a $1 million top prize. 76West is designed to further develop the regional community of clean energy technology innovators, industry experts, educators, and investors, as well as help startups get early users for their technologies. Winning clean energy startups that are located outside of New York State must relocate to the Southern Tier Region. Winners from other parts of New York State will not be required to relocate to the Southern Tier if they can demonstrate how their company will have a positive economic impact on the Southern Tier Region. Sources: ;

31 NY Economic Incentive Programs ADDENDUM The Southern Tier Regional Economic Development: URI Plan The Regional Economic Development Council initiative is a key component of Governor Andrew M. Cuomo s transformative approach to economic development. In 2011, Governor Cuomo established 10 Regional Councils to develop long-term strategic plans to strengthen and grow their regional economies. The Councils are public-private partnerships made up of local experts and stakeholders from business, academia, local government, and non-governmental organizations. The Regional Councils have redefined the way New York invests in jobs and economic growth by putting in place a community-based, bottom up approach and establishing a competitive process for State resources. After four rounds of the REDC process, nearly $3 billion has been awarded to more than 3,100 projects consistent with each region s Strategic Plan and are projected to result in the creation or retention of more than 150,000 jobs. In 2015, Governor Andrew M. Cuomo announced the Upstate Revitalization Initiative, a competition backed by a $1.5 billion commitment to revitalize areas of Upstate New York in need of investments to jumpstart economic activity. Seven of the state s 10 economic development regions competed for $1.5 billion, of which three regions were awarded $500 million each, to be allocated over five years. The Southern Tier was one of three regions to win the URI competition. The plan allocates state dollars to projects leveraged by private sector investment. This influx of critical state resources is geared towards strengthening the economy and establishing sustainable economic growth. The Southern Tier s URI proposal identified the region s strengths and strategized ways for the region to create well-paying, permanent private sector jobs and lure significant private sector investment. The following four initiatives were proposed by the STREDC to serve as the framework for the region s URI plan: Promoting the Southern Tier s Innovative Culture Initiative Southern Tier Food and Agriculture Initiative Advanced Industries: Nexus for Transportation Products, Components and System Controls Greater Binghamton Innovation Ecosystem Initiative Sources: ;

32 Broome County IDA ADDENDUM UNIFORM TAX EXEMPTION POLICY (PILOT Program) The following Uniform Tax Exemption Policy will apply to all installment sales and lease agreements in which the Broome County Industrial Development Agency (BCIDA) holds nominal title to real and personal property on behalf of its clients. Industrial projects consisting of the purchase of an existing facility will have taxes frozen at the level in place at the time of purchase for five years. In years 6-10, any tax increase over the frozen level will be abated by 50% and in years 11-15, 25%. The Broome County Industrial Development Agency reserves the right to deviate from this policy if it is determined that the project will provide a major economic or employment impact to the County. This exception will require the written approval of the Chief Elected Official of the municipality in which the project is located. Sources: ;

USDA FROZEN FOOD PRODUCTION PLANT 136,491 SQUARE FEET 200 Michael Angelo Way, Austin, Texas

USDA FROZEN FOOD PRODUCTION PLANT 136,491 SQUARE FEET 200 Michael Angelo Way, Austin, Texas 136,491 SQUARE FEET BUILDING SUMMARY Total Building: Current Use: USDA Frozen Food Production Future Uses: Frozen, Refrigerated, Assembly, Bakery, Home Delivery, etc. Production Frozen & Refrigerated Storage