1

Light Industrial Single Tenant – NNN Investment

Central Pennsylvania - Harrisburg Capital Region

2001 Fulling Mill Road Middletown, PA 17057

OFFERED BY: REALTY MANAGEMENT ASSOCIATES, LLC

Jamie Pascotti Todd A. Decker

2

Information Included:

Overview / Offering

Property Description

Projected Income Statement

Lease Abstract

Tax Parcel Information

Floor Plans

Pictures

News Article

3

Overview Realty Management Associates, LLC, of Mechanicsburg, PA has been contracted as the exclusive broker to market the 2001 Fulling Mill Road, Middletown, PA. The Fulling Mill Road property is located in Swatara Township, Middletown, PA, which is considered part of the Harrisburg Capital Region. The area is zoned Industrial Park – Limited. The property has frontage on heavily travelled Rt. 283 which is the main roadway between Harrisburg and Lancaster, PA. The Harrisburg International Airport is located two miles from this facility. Property Description The current owners purchased the 13.20 acres of land in 1988 at which time they constructed the building to the specifications of the current tenant. The original building consists of 30,000 sf and in 2008; an additional 34,906 sf was constructed to meet the expansion needs of the current tenant. The remaining vacant land of 8 + acres can also be developed. Sketch drawings are available to show several different building size options from 25,000 sf up to 100,000 sf. The property can be developed for a single use end user, flex space or sold off as land condos. Current Single Tenant The current tenant has occupied the building since it opened in 1988. As reflected in their website, www.actpower.com, they are an established contract to the Federal Government. In 2008, the facility was expanded by 34,960 to meet the expansion needs of the tenant. Price Offering: $6,900,000.00 CAP Rate: 7%

4

5

2001 Fulling Mill Road, Middletown

As of 8/4/2016

MONTHLY OPTION RENT

TENANT SQ. FT. RENT SEC. DEP. TERM TO RENEW ESCALATION OTHER

Advanced Conversion Technology 63,233 40,311.04$ 27,500.00$ 15 Two - 5 yr. Upon the 5th anniv incl renewal terms, the Pays utilities & taxes

2/2009 - 2/2024 options rent shall be adjusted up or down by the directly to providers

actual increase or decrease in the LL's

financing costs

63,233 40,311.04$

6

7

Information for Parcel 36-009-185-000-0000, Tax Year 2017

Generated 02/07/17 at 02:22:24

Property Information

Tax Year 2017

Property ID

36-009-185-000-0000

Township

LOWER SWATARA TWP

Property Use

C01 - OFFICE

Neighborhood

C3606 - Industrial park, Industrial ar

Site Address

2001 FULLING MILL RD

Owner Name and Address [Show Details]

FULLING MILL ROAD PROPERTIES

5006 E TRINDLE RD SUITE 203

MECHANICSBURG, PA 17055

Mailing Name and Address

FULLING MILL ROAD PROPERTIES

5006 E TRINDLE RD SUITE 203

MECHANICSBURG, PA 17055

Sales History

Year Document # Sale Type Sale Date Sold By Sold To Price

1999 0344900207 2 Tax Sale 07/07/1999 FULLING MILL

ROAD PROPERTIES

FULLING MILL ROAD

PROPERTIES $1

1987 0CONV08396 Source Cannot

be Determined 08/24/1987

FLYNN THOMAS &

FEINERMAN LEON J J $316,944

Market Land Valuation

Property Type Description Land Type Sq. Ft. Calc. Acres Deed Acres

COM -

Commercial Primary Site

A1C - Primary

Site 174,240 4.0000 13.20

COM -

Commercial Residual A3C - Residual 400,752 9.2000 13.20

Office Building (Structure 1 of 1)

Property Type Description Style Quality Living Area (sq.

ft.)

Year

Built Age

COM -

Commercial

Office

Building

Office

Building XX- 63,170 1988

Section 1

Office Building 100.00 Base Cost 30000.00

8

Market Land Valuation

Canopy, Roof/Slab 88.00 Concrete Block, Textured Face 30000.00

Heat Pump 30000.00 One Story Concrete Block 28310.00

One Story Concrete Block 4860.00 Wet Sprinklers 30000.00

Physical 20.00

Section 2

Office Building 100.00 Base Cost 28310.00

Concrete Block, Textured Face 28310.00 Heat Pump 28310.00

Wet Sprinklers 28310.00 Wet Sprinklers 4860.00

Physical & Functional 0.70

Section 3

Industrial Light Manufact 100.00 Base Cost 4860.00

Concrete Block, Textured Face 4860.00 Heat Pump 4860.00

Physical & Functional 1.00

All

Concrete block garage 688.00 Paving, asphalt, w/lighting 11000.00

Paving, asphalt, w/lighting 32000.00 Frame Shop 546.00

9

FLOOR PLAN MEASUREMENTS

ORIGINAL SECTION 1988

ADDED SECTION 2008

10

ORIGINAL SECTION

ADDED SECTION

11

PICTURES OF EXTERIOR

INTERIOR PICTURES NOT PERMITTED BY TENANT

12

13

14

15

16

January 13. 2012 3:00AM By Jason Scott, Staff Writer, CPBJ Defense contractor remains competitive as cuts loom ACT focused on upgrades, equipment maintenance and new markets With large-scale U.S. defense spending cuts looming, at least one Dauphin County military manufacturer remains optimistic it will continue to see growth.

Advanced Conversion Technology produces custom high- and low-voltage power supplies. Photo/Submitted A top official at Advanced Conversion Technology Inc., a Lower Swatara Township-based subcontractor and producer of custom power supplies, said the company continues to focus on developing better technology and seeking system update projects as well as other maintenance work. ACT, which recently celebrated its 30-year anniversary, is one of the largest power supply companies in the industry, with a staff of more than 100. It primarily produces power supply components for systems built by prime contractors such as Boeing. The company develops power supplies for most major military aircraft and ships. "We're concerned about the federal budget. It's going to undoubtedly cut back (new equipment purchases)," President Louis Reis said. "It's going to affect everybody." Last month, Congress authorized a $662 billion defense budget for fiscal-year 2012, which was $27 billion less than President Barack Obama's request and $43 billion less than the Pentagon was given last year. After a decade of war in the Middle East, U.S. officials have been facing the pressures of trimming the federal deficit. The administration is wrapping up specific cutback proposals for the 2013 budget, which Obama will submit to Congress next month. Substantially more is expected to be cut from the Department of Defense due to the Budget Control Act passed last summer. The Defense Department is slated to shed at least $487 billion in spending over the coming 10 years. An additional $500 billion in cuts also might be required starting in January 2013 because a congressional supercommittee last year failed to reach an agreement on a deficit-reduction plan. As a vertically integrated company that maintains control over all aspects of its custom products, ACT is unique, Reis said. Vertical integration is when a company expands into areas that are at different points of the same production path. "We have better control of how long it takes to do something," Reis said. Its in-house manufacturing abilities, which were expanded at the end of 2008 (see "ACT history," this page), make it a highly sought out company, he said. Military downsizing is always a challenge, Reis added. ACT, which blossomed out of a basement, making high-voltage products, has survived by not taking on tremendous amounts of debt, he said. Competitive pricing is important for defense contractors, Reis said. However, project awards are more about

17

who has the best chance of building the product to meet desired performance and who can build it in the shortest time frame, he said. "We're counting on a lot of that moving forward," he said. ACT also is exploring high-grade commercial avionics and medical applications and overseas opportunities to continue growing revenue, Reis said. "Congress is getting the message that the public doesn't want more taxes, and the big target is the military," Reis said about the anticipated cuts. A November report on defense spending cuts from the National Association of Manufacturers projected that more than 30,000 manufacturers would be affected. The brunt of those cuts would fall on small- and medium-sized firms, potentially causing the loss of more than 1 million jobs, the report said. Two-thirds to three-quarters of every dollar paid to prime contractors flows through to small subcontractors in the supply chain, according to the Defense Department. The one silver lining in all the cuts was the Obama administration's announcement last month that it had finalized a record $29.4 billion Boeing F-15 sale to Saudi Arabia. The administration said the deal would support more than 50,000 U.S. jobs. The sale of the F-15s is expected to result in additional power supply orders for ACT, Reis said. ACT history Advanced Conversion Technology was formed in 1981 by seven electrical engineers who formerly worked at Amp Inc., now known as TE Connectivity. The company produces custom high- and low-voltage power supplies, primarily for the military. ACT grew out of leased spaces in Elizabethtown and moved in 1988 to its current location at 2001 Fulling Mill Road in Lower Swatara Township, Dauphin County. In 2008, ACT doubled its floor space to more than 62,000 square feet to support its steady growth and strengthen its vertical integration strategy by allowing expansion of its metal working and fabrication capabilities, along with increased assembly, electrical and environmental test capabilities. After fast growth in the early years, the local defense manufacturer has maintained stable employment over the years. By 2005, the company employed 92. The workforce jumped to 106 in 2006, 108 in 2007, 109 in 2008 and 115 in 2009. Through attrition and some added automation to the testing and manufacturing processes, the company cut positions to 110 in 2010 and was operating at 105 near the end of 2011. Company leaders are considering the addition of another shift of workers in the machine shop to offset the main day crew, President Louis Reis said. ACT has averaged 5 to 6 percent annual revenue growth in its history, he said. The private company does not disclose its annual sales. "We expect we will continue to grow at a slow rate," he said. "It's a slow but consistent rate."