NOVARTIS PHARMACEUTICAL PRODUCTION CAMPUS · laboratories, inspection areas and packaging lines. The layout of the Complex facilitates the transfer of packaged products to the warehouse/shipping

NOVARTIS PHARMACEUTICAL PRODUCTION CAMPUSS U F F E R N , N E W Y O R K

Table of contentExecutive Summary 4

Property Description 10

Location & Demographics 32

P H A R M A C E U T I C A L P R O D U C T I O N C A M P U S , S U F F E R N , N Y

Novartis Pharmaceuticals CorporationS U F F E R N , N Y


EXECUTIVE SUMMARY 5


6

The Property contains three interconnected buildings including a 55,000 SF office/head building which features a 7,000 SF full-service cafeteria, multiple conference/meeting rooms, and analytical laboratories. The 425,000 SF production/manufacturing building is designed as a multi-product, high volume manufacturing operation with flexible and efficient product flow; the production building contains specialized areas including granulation suites, blending rooms, encapsulation suites, analytical laboratories, inspection areas and packaging lines. The layout of the Complex facilitates the transfer of packaged products to the warehouse/shipping area; the 74,000 SF receiving and warehouse building features 90’ ceiling heights and a fully automated racking system with over 11,500 pallet positions. The Property is fully approved for pharmaceutical production; the Company has also met the rigorous federal requirements for on-site controlled substance handling and vault storage.

The 162-acre site contains a dedicated electrical substation and a 24,000 SF energy center which features redundant systems including excess boiler capacity (4 gas/oil boilers), and redundant chillers (4 chillers). The

Campus security system includes a manned guard/gate house, as well as camera monitoring throughout the buildings. The site’s excess land provides a buyer with additional development potential.

The Property is located adjacent to Interstate 287/87 (the New York State Thruway), within minutes of Route 59 and Route 17, and approximately 10 miles west of the Tappan Zee Bridge. Centrally located within the tri-state region, the Property is situated 30 miles from New York City, is within 15 miles of numerous Northern New Jersey corporate campuses, 20 miles from downtown White Plains, NY and 30 miles from Fairfield County, CT.

The Campus is located in Rockland County, NY, which is home to Avon’s Global Research & Development Center and is part of a regional biopharma cluster that includes Teva, Bayer, Pfizer, Acorda Therapeutics, Par, and Regeneron. The region has attracted national and international pharmaceutical and biotech companies, as well as Fortune 500 corporations, that are drawn by the area’s deep and skilled labor pool, diverse housing base, extensive highway network, and proximity to New York City.


EXECUTIVE SUMMARY 7

Address:25 Old Mill RoadSuffern, NY 10901

Year Built:55,000 SF in 1964;Expanded and modified in 1964, 1970, 1990 and 1995

Property SF:

BUILDING SQUARE FOOTAGEHead/Office Production/Manufacturing Receiving/Warehouse Energy Center Support Buildings

55,000425,000

74,00024,000

7,000

TOTAL 585,000

Number of Stories:

1 to 4 stories (varies by building)

Occupancy: To be sold vacant

Lot Size: 162 acres

Parking: 667 surface spaces

Zoning:Planned Light Industrial (125.5 acres) and Planned Industrial (36.5 acres)

8


INVESTMENT HIGHLIGHTS

Rare Pharmaceutical Manufacturing Facility

§ Unique in the Region: The Property represents a one of a kind facility in the region; there are currently no operational, equipped, high-capacity pharmaceutical production facilities available in the tri-state region. The cost to construct a high capacity, 585,000 SF pharmaceutical production campus similar to the Novartis Campus would likely exceed $400 million.

§ Flexibility: The production building contains 13 packaging lines plus a containment area; there is also space to add packaging lines (Novartis previously removed two lines from the building). A user also has the flexibility to convert the lines from dry dosage to liquid or ointment packaging; the cost to modify the existing lines would be significantly lower than the cost to construct new production lines.

§ Configured for Controlled Substances: The controlled substance vault in the production building, as well as the separate containment area for controlled substances in the warehouse building,

allow a user the potential to package and/or store controlled pharmaceuticals.

§ FDA Approved Operating Plant: The Property’s current status as a federally approved operating pharmaceutical plant would enable a like-kind user to reduce the time required to acquire approvals. The reduced time and paperwork would provide significant cost savings.

Strategic Location

Rockland County is at the crossroads of the major business centers in the region including Westchester County, New York; Northern New Jersey; and Fairfield County Connecticut. The principal roadways and interstate highways that traverse the region; I-287, I-87, Palisades Interstate Parkway, Route 202 and Route 17; provide connections to the Tappan Zee Bridge, New York City, as well as major cities throughout the northeast corridor. Key tri-state airports, including Newark Liberty International Airport, Westchester County Airport and LaGuardia, are within 40 miles of the Campus (Kennedy Airport is less than 50 miles from the Property).

EXECUTIVE SUMMARY 9

WELL MAINTAINED FACILITYThe Property benefits from a high level of care and maintenance, and a robust infrastructure which currently supports the demanding requirements of the pharmaceutical production. The Plant’s redundant systems provide operational continuity and a high level of capacity including 200,000 lbs per hour of steam, and 3,900 tons of cooling capacity.

REDEVELOPMENT POTENTIALThe buildings and improvements encompass 50 acres of the 162 acre site; the excess land could be utilized for an expansion of the Campus or to introduce alternate uses. The Property is situated in New York State which is known for its business friendly environment, offering businesses a wide range of incentive programs to assist national and international companies via Empire State Development and NYSEG. (NYSEG offers incentives in the form of energy rate discounts.) Assistance is also available from the Hudson Valley Economic Development Corporation which works

with local Industrial Development Agencies and the Empire Development Corporation. The state’s pro business environment and financial assistance programs, the Property’s central location in the region, and the area’s extensive highway network presents a developer with a favorable opportunity to pursue either a biotech/life science expansion or alternative redevelopment of the site.

8080

287

684

684

287

287

87

87

87

95

287

287

202

202

1

9

9

9

9W

202

4

17

208

17

22

100

15

9A

9A

59

22

120

23

RamapoNew City

Thiells

Pomona

WestNyackNanuet

Pearl River

Park RidgeOrangeburg

Tappan ZeeBridge

Airmont

SpringValley

Viola

Oakland

Mahwah

Wyckoff

Ridgewood

Westwood

Northvale

UpperSaddle River

HackensackEnglewood

Dumont

Oradell

ParamusFairLawn

Claster

Haledon

Paterson

Totowa

Wayne

Pequannock

EdenwaldRiverdale

NewRochelle

Mamaroneck

Harrison

Thornwood

Millwood

Westchester

Chappaqua

Mt KiscoCroton-On-Hudson

Ossining

Tarrytown

Greenville

Irvington

Dobbs FerryScarsdale

Mt Vernon

WHITE PLAINS

YONKERS

Dater MountainNature Park


Ramapo ValleyReservation


NEW YORK


10

PROPERTY DESCRIPTIONThe Property was constructed in 1964, and was originally owned and occupied by Giegy Chemical Corporation; the company merged with Ciba in 1970 to form Ciba-Geigy. The Campus was transferred to Novartis in 1997 via the Ciba-Geigy and Sandoz merger. Over the years the Plant has been utilized to produce and/or package a range of dry solid dosage pharmaceutical products. The Campus has been renovated and expanded several times (in 1970 and in the early and mid 1990’s). The personnel headcount at full capacity was 525 employees.


PROPERTY DESCRIPTION 11

Head Building

Production BUilding

Energy Center

Terminal Building & AS/RS

P H A R M A C E U T I C A L P R O D U C T I O N C A M P U S , S U F F E R N , N YP H A R M A C E U T I C A L P R O D U C T I O N C A M P U S , S U F F E R N , N Y

PHYSICAL AND CONSTRUCTION FEATURES

Gross Area:

585,000 square feetTotal square footage includes 7,000 SF of support buildings.

BuildingYEAR BUILT/

RENO SF SF STORIES USE

Head Building 1964 55,000 2 Office/Amenities/Lab

Production Building 1964/1995 425,000 4 Manufacturing/ Packaging

Receiving/ Warehouse 1990 74,000 1* Storage/Sampling

Energy Center 1970 24,000 1 Utility management/delivery

Support Buildings various 7,000 1 Gate house, pump

house, shed

Total 585,000

*The receiving area (32,000 SF) is one-story. Warehouse ceiling height of 90’.

12



Lab Features: § Localized specialty gas manifolds

§ Vacuum to every lab

§ Instrument grade compressed air (hookups outside every lab)

§ USP purified water

Production Area:

Suite/Room # of Rooms

Granulation(1) 5

Milling 4

Blending 4

Tablet compression/encapsulation 14

Capsule Inspection 2

Note: Suites are three-stories.(1) Compactors: 2 rooms

The Production building also includes coating and branding areas, weighing and dispensing areas, and men’s and women’s employee locker rooms.

Foundation: Concrete

Framing: Steel

Column Spacing: Varies

Building Exterior: Brick, metal panels and glass

Roof: Ballasted membrane, built-up membrane

Ceiling Heights: PRODUCTION AREAS:

§ 1st floor: 14’ slab to slab

§ 2nd Floor: 16’ slab to slab

§ 3rd Floor: 17’ slab to slab

Offices & labs 9’ finished

High-rise Warehouse: 90’

Loading Areas: Nine loading docks

Analytical Labs: BUILDING # of Labs SF

Head Building 1 11,990

Production Building* 3 13,970

*2nd floor labs: 4,690 SF and 4,590 SF; 3rd floor lab: 4,690 SF


Packaging Lines:

Space for a total of 13 packaging lines is available, which also includes a containment room. Additional space in the production building can support two additional lines.

The packaging floor also includes a containment room. Additional space in the production building can support two additional lines; Novartis has removed two packaging lines.

Vault: A racked, 2,720 SF caged vault with 19’ ceiling heights. The vault has been FDA/DEA approved for category 2 controlled substances (approvals are associated with Novartis for their use; a new owner would be required to apply for approvals).

Receiving/Warehouse:

The receiving and warehouse building is 74,000 SF. The receiving area contains sam-pling booths, control rooms, workshops, and 9 loading docks. The warehouse is air conditioned and contains a fully automated storage and retrieval racking system with over 11,500 pallet positions. The warehouse has a separate conveyor and caged area (for containment of controlled substances) that is approved for levels 3 – 5 substances. The warehouse area has a ceiling height of 90’.

Life/Safety: Wet and dry sprinklers; dry sprinklers are located in the high-rise warehouse.

Dry chemical system in the data center.

Lab safety: Eye wash stations, emergency showers, fire extinguishers

Security: Attended guard/gatehouse. Security personnel are stationed at the lobby desk. Camera monitors and card readers throughout the Campus.

Amenities/ Features:

Full service cafeteria, conference rooms, locker rooms, work-out room

14



Air Compressors:

3,000 cfm of compressed air supplied by 2 rotary screw Kobelco compressors (Year 2003) with desiccant driers; Each compressor is 250 HP, 1,100 CFM, 150 psig.

Water: Supplier: Village of Suffern Water DepartmentQuantity: no current limit on water usage, current

cost is ~$4.60/ 1,000 gallons

Sewer: Treatment: Village of Suffern DPW Flow: total volume limited to 222,000 GPD, 250 GPM instantaneous flow.“Industrial” wastewater limited to 150,000 GPD

Natural Gas: Supplier: Orange and Rockland6-inch main from Hemion Road to Energy Center 2-inch main from Old Mill Road to Head Building

Telecommunications: Suppliers: NYnex, Verizon, Zayo Group (dark fiber)

Service: copper and fiber is distributed throughout the campus

SYSTEMS

Electrical The Campus has a single electric feed with the option of installing a second feed from a separate substation.

§ Supplier: Orange and Rock-land Electric Company

§ Service: single 13.5 kv amp service; pole mounted entering at OldMill Road to freestanding15kv switchgear building

§ Main tie: 15kv vacuum switchgear with provisions for future second feed.

§ Underground 15kv distribu-tion feeds 8 unit substations: 2 @ 750kva (Terminal/Ware-house Building) 1 @ 1,500 kva (Energy Center) 1 @ 2,500 kva (Energy Center) 3 @ 2,500 kva (Production Building)

Three diesel generators (life and safety): 250kw, 35kw, 680kw

Boilers: § 4–125 psig steam boilers

§ Boilers burn oil and gas

§ 200,000 pounds per hour capacity

§ 1 boiler: 1997; 2 boilers: 1997; 1 boiler: 2009

§ 50,000 gallon on-site oil storage (above ground)

Chillers: Total cooling capacity of 3,900 tons.

§ 2 steam absorption chillers @ 1270 tons each (1997)

§ 2 electric centrifugal chillers @ 700 tons each (2004)

§ 4 cooling tower cells (2-1997; 2-2004)

16

MANUFACTURING EQUIPMENT OVERVIEW

DRY GRANULATORS (2)

FITZPATRICKROLLER

COMPACTOR

GRANULATORS HIGH SHEAR MIXERS

(2)COLLETTE

(2)GLATT POWERX LOW

SHEAR MIXER (1)

READCO

FLUID BED DRYERS (7)

GLATT

DRYING(4)

GRUENBERG

MILLS(4)

FITZMILL(5)

FREWITT

TABLET PRESSES (5)

FETTE/MANESTY

ENCAPULATION(3)MG

COATERS(4)

THOMAS ACCELA COTA SUGAR COATING PANS

(8)PELLIGRINI

16



Acres: 162 acres (in three tax lots)

Access: Interstate 287 via Montebello RoadService road access via Hemion Road

Parking: 667 surface parking spaces

Zoning: Village of Suffern: Planned Light IndustrialVillage of Montebello: Planned Industry – Campus with conservation overlay

Flood Zone: The majority of the site is located in Zone X. Zone X is an area that is deter-mined to be outside the 0.2% annual chance floodplain. A portion of the site (in the western area of the property) is in Zone X Other Flood Areas and also Zone AE. Zone X Other Flood Areas are areas of 0.2% annual chance flood; areas of 1% annual chance flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levee from 1% annual chance flood. Zone AE is a special flood hazard area that is subject to inundation by the 1% annual chance flood.

Easements: Access and utility easements

SITE INFORMATION

The 162 acre site spans two municipalities; the Village

of Suffern (125.5 acres) and the Village of Montebello

(36.5 acres) in Rockland County, New York.

18



Address 25 Old Mill Road Route 59 19 Hemion Road

Village Suffern Suffern Montebello

Parcel ID 55.22-1-1 55.37-1-31 55.06-1-1

Acres 124.73 0.65 36.58

Assessed Value

Land $ 2,370,000 $2,000 $777,800

Improvements $ 3,630,000 $0 $ 30,000

Total $6,000,000 $2,000 $807,800

Assessment Ratio 13.57%

287

87

dao

R lli

M dl

O

Hemion Road

CO

NRA

IL RAIL LIN

E

59

REAL ESTATEThe Campus is comprised of three tax lots that are located in the Town of Ramapo, in the Villages of Suffern and Montebello.


VILLAGE OF SUFFERN

Zone Planned Light Industrial (PLI)

Permitted Uses Professional and business offices; research and development laboratories; wholesaling and warehousing distribution; assembling or finished or finishing of products; production, fabrication, processing, converting, altering, assembling, packaging, testing and other handling of products

Minimum Lot Size 40,000 square feet

Minimum Lot Width 100’

Front Each Side

Rear

35’40’40’

Minimum Lot Coverage

80%

Maximum Height 40’

Maximum Stories 3

ParkingBusines

R&D Laboratories

Warehouse Assembly FacilityProduction Facility

1 space per 300 SF of Gross Floor Area

2.5 spaces per 1,000 SF of GFA; 1 loading space per 10,000 SF of GFA

3.3 spaces per 1,000 SF of sales/office area plus 1 space per every 3 employees, plus 1 space for every commercial vehicle;1 loading space for the first 1,500 SF of GFA and 1 space for each additional 10,000 SF of GFA

VILLAGE OF MONTEBELLO

Zone Planned Industry – Campus (PI-C) with conservation overlay

Permitted Uses Office/ Professional

Labs/R&D/ Corporate Parks*

Medical/Health Services*

Minimum Lot Size 60,000 square feet

60,000 square feet

60,000 square feet

Minimum Lot Width 200’ 200’ 200’

Minimum Yard Set-back

80%

Front Each Side

Rear

75’75’75’

75’75’75’

75’50’50’

Minimum Lot Coverage

65% 65% 60%

FAR 0.40 0.40 0.30

Maximum Height 35’ 35’ 45’

Parking 1 space per 200 SF of office space

1 space for every 2 employees; not less than 10

1 space for every 250 SF plus 1 space per suite

ZONING

20



Village of Motebello

Village of Suffern

He

mio

n R

Oa

d

Old Mill Road


22


Village of Motebello

Village of Suffern

He

mio

n R

Oa

d

Old Mill Road


EXECUTIVE SUMMARY 23PROPERTY DESCRIPTION 23


FLOOR PLAN

Overall Floor Plan

Head Building ProductionBUilding

Terminal Building and AS/RS

Energy Center


24


Head Building

First Floor

Second Floor

Head Building

Cafeteria and kitchen 7,000 SF

Laboratories 11,000 SFOffices 23,000 SFMEP support 10,000 SFShell space 4,000 SF



Production Building

First Floor

Production Building(Approximate Areas)Packaging 80,000 SFGranulation, blending, compressing 85,000 SF

Offices, laboratories 150,000 SFMEP support 110,000 SF

Legend

G Granulation SuiteM Milling RoomB Blending SuiteC Tableting/EncapsulationCI Capsule inspection


Production Building

Second Floor

26




ThirdFloor

Production Building


28


Fourthfloor

Production Building



First floor

Terminal building and AS/RS


First floor

Energy Center

30




BoundarySurvey

3221Executive Summary

287

287

287

87

8787

287

287

202

202

202

202

59

59

59

17

17

17

17

306

45

45

Col

lege

RddR kcoR koopS

Mile Rd

Campbell Ave

Crag

mer

e Rd

S Airm

ont R

d

Church Rd

Smith Hill Rd

Chrictmas Hill Rd

S M

onse

y Rd

Sadd

le Rive

r Rd

HIghview Rd

Viola Rd

Viola Rd

Montebello Rd

Lafayette Ave

CONRAIL RAIL LINE

NEW JERSEY

NEW YORK

Old Mill Rd

Che

stnu

t St

Hem

ion

Rd

Grandview Ave

Ewing Ave

Maple Ave

evA elpaM

W

Rem

senA

ve

ROCKLANDCOMMUNITY COLLEGE

CROWN PLAZASUFFERN

SPOOK ROCKGOLF COURSE

GOOD SAMARITANHOSPITAL

SUFFERN

LOCATION & DEMOGRAPHICSThe Property is situated in the Village of Suffern, in the Town of Ramapo, in Rockland County, New York. Rockland County is located in the southern portion of New York State directly northwest of New York City and bordered by the Hudson River to the east, Orange County to the northwest, and New Jersey to the south. Rockland County is part of the greater New York metropolitan area, which includes New York City’s boroughs and Long Island, New Jersey and Connecticut.

The 23-county New York City metropolitan region has a population in excess of 20 million, making it the most densely populated metropolitan area in the nation. Rockland County consists of six “towns”, including Orangetown, Clarkstown, Ramapo, Haverstraw, and Stony Point, which contain smaller “villages” – such as Suffern - with a total County population of approximately 321,000 people.

Rockland County‘s proximity to New York City (30 miles), and central location with convenient access to Westchester, New Jersey and Connecticut, has played an important role in its appeal and growth. Businesses are also attracted by the area’s deep and educated labor pool.

21Executive Summary

287

287

287

87

8787

287

287

202

202

202

202

59

59

59

17

17

17

17

306

45

45

Col

lege

RddR kcoR koopS

Mile Rd

Campbell Ave

Crag

mer

e Rd

S Airm

ont R

dC

hurch Rd

Smith Hill Rd

Chrictmas Hill Rd

S M

onse

y Rd

Sadd

le Rive

r Rd

HIghview Rd

Viola Rd

Viola Rd

Montebello Rd

Lafayette Ave

CONRAIL RAIL LINE

NEW JERSEY

NEW YORK

Old Mill Rd

Che

stnu

t St

Hem

ion

Rd

Grandview Ave

Ewing Ave

Maple Ave

evA elpaM

W

Rem

senA

ve

ROCKLANDCOMMUNITY COLLEGE

CROWN PLAZASUFFERN

SPOOK ROCKGOLF COURSE

GOOD SAMARITANHOSPITAL

SUFFERN

LOCATION & DEMOGRAPHICS 33

34


The Property is located in close proximity to major highways that provide access to New York City, Westchester and Northern New Jersey.

MAJOR HIGHWAYS

7 miles from Novartis

Suffern Rockland

Population Per Square Mile 1,625 5,170 1,614

Median Household Income $83,704 $82,449 $70,694Income of $100,000+ 42% 40% 33%White Collar Professional 61% 68% 73%Bachelor Degree or Higher 43% 47% 51%Advanced Degree* 41% 38% 36%*Percent of those with college degrees.

Interstate 287/87 (New York State Thruway): The New York State Thruway traverses the State providing access and connections to cities such as New York City, Albany, Syracuse and Rochester. The highway travels east-west in Rockland County, entering from Westchester County via the Tappan Zee Bridge. In Rockland County the highway provides access to White Plains, New York, New York City, Northern New Jersey (via the Garden State Parkway), and points throughout New York State. The Property is located one mile from I-287 (Exit 14B).

NY State Route 59: Route 59 is an east-west state highway in Rockland County; the roadway runs parallel to the New York State Thruway. Route 59 provides access to Route 17, U.S. 202, the Palisades Parkway and U.S. 9W. The Property is located approximately one mile from Route 59.

NY State Route 17: Route 17 is the longest state highway in New York (397 miles). The highway travels through the southern tier and downstate regions of New York. At the New Jersey state line the road connects with NJ’s Route 17, providing access to the northern New Jersey office parks. The Property is located less than 2 miles from Route 17.

Palisades Interstate Parkway: The Palisades Interstate Parkway traverses New York and New Jersey. At its southern most point the roadway begins at the George Washington Bridge in Fort Lee, New Jersey. In Fort Lee the highway also connects with I-95, U.S. Routes 1&9, 46 and 4. The Palisades Interstate Parkway serves as a commuter roadway for traffic traveling from Rockland and Orange County to New York City. The Property is located 8 miles west of the Palisades Interstate Parkway.

DEMOGRAPHICS



MASS TRANSITTrain service is available from the Suffern Transit Station at Ramapo Avenue and Chestnut Street (2 miles south of the Property). NJ Transit provides connections to New York City from Hoboken and Secaucus Junction, via the Main/Bergen-Port Jervis Line. Bus service to New York City is available via the Short Line Bus; the bus stop is located two miles west of the Property on Orange Avenue. Key tri-state airports, including Newark Liberty International Airport, Westchester County Airport and LaGuardia, are within 40 miles of the Campus.

AREA AMENITIES

RETAIL

Rockland County is home to numerous retail centers ranging from 2 million square foot super regional malls to community retail centers and stand alone retail facilities. A 160,000 SF Walmart anchored center is located 2 miles east of the Property.

NOTABLE ROCKLAND COUNTY MALLS

Palisades Center: Featuring 2.3 million square feet, Palisades Center is one of the region’s largest retail centers. The Mall is anchored by BJ’s Wholesale Club, Home Depot, JC Penney, Target, Lord & Taylor and Macy’s, as well as a AMC/Loews Multiplex movie theater. The Center is located in West Nyack approximately 10 miles east of the Property.

The Shops at Nanuet: The Shops at Nanuet is a 750,000 SF open air center that was constructed in 2013. The Center is anchored by Fairway Market, Sears, and Macy’s. The Mall is located 8 miles east of the Property.

Spring Valley Marketplace: The Spring Valley Marketplace is a 206,000 SF power center. The Mall is anchored by Target and Bed, Bed & Beyond. The Center is located 7 miles east of the Property.

36


LODGING

Several national lodging chains have hotels in Rockland County. The following quality lodging facilities are located within 15 miles of the Property:

§ Crowne Plaza Suffern: This 230-room luxury hotel was awarded the 2013 Torchbearer Award by Intercontinental Hotels Group, which is its highest award for quality and service. Hotel amenities include a restaurant, lounge, fitness center and 25,000 SF of meeting space. The Crowne Plaza is located less than 2 miles northeast of the Property.

§ Hilton Garden Inn Nanuet: The 88-room hotel is located on Route 59 approximately 7 miles from the Property. The hotel features a restaurant and lounge, a fitness room and an indoor pool.

§ Hilton Pearl River: This 445-room hotel has been recognized by Hilton every year over the past three years for Best Overall Service of all Hiltons in the Tristate area. Hotel amenities include a restaurant, tavern, a fitness room, indoor and outdoor pools, and 22,000 SF of event space. Located adjacent to Blue Hill Golf Course the hotel is approximately 15

miles from the Property.

RECREATION

Rockland County offers seven golf courses including

The Broadacres Golf Club in Orangeburg, and The

Spook Rock Golf Course in Suffern, and the Manhattan

Woods Golf Club which is a Gary Player signature

course located in Pearl River. The County’s 3,100

acre park system provides recreation areas, hiking

trails, and fishing. The County, located adjacent to

the Hudson River, offers boating opportunities (boat

launches are located in Haverstraw and Piermont).



INDUSTRIAL, R&D AND PHARMACEUTICAL SUBMARKET

Rockland County consists of five towns and nineteen villages. The majority of the area’s industrial facilities are clustered along or near major roadways in the southern section of the county, primarily in the Villages of Nyack, Spring Valley, Orangeburg, Suffern, and Chestnut Ridge. These companies are attracted by the convenient highway access, plentiful labor, and proximity to New York City. Principal highways in the county include I-87/287 (the NY State Thruway), which runs east-west from the Tappan Zee Bridge to Orange County, and Route 303 which is a north-south roadway that originates at the NJ/NY border and traverses Rockland County with connections to the NY State Thruway and the Palisades Interstate Parkway. A small group of industrial buildings is located to the north along Route 9W in Haverstraw. Route 9W is a north-south roadway that originates in Fort Lee, New Jersey (near the George Washington Bridge), and travels north through New York State, terminating in Albany.

The county’s industrial inventory of 6,148,986 SF is contained in 69 buildings including warehouse, industrial and manufacturing facilities. The submarket has historically experienced vacancy rates in the single digits; the current vacancy rate is 7.8%. The year-to-date leasing activity has been favorable; the1st quarter of 2014 leasing activity of 113,600 SF is equivalent to the leasing volume for the entire 2013 calendar year.

Asking rents for industrial facilities range from $5.00 - $14.00 PSF net; the rents vary based on the facility’s use and the amount of office space. Special R&D/manufacturing campuses are traditionally owner occupied; rental information for these facilities is limited. The Novartis facility includes laboratory, manufacturing, office and warehouse space; rents for a multi-use facility may be charged using a blended rent (based on each space’s use and square footage). The blended net rent for a large pharmaceutical production facility (comparable to 25 Old Mill Road) is anticipated to command net rents in the $15.00 to $20.00 PSF range (with equipment).

ACTIVITY/HIGHLIGHTS

§ Leases: Notable lease transactions over the past twelve months include Nice-Pak’s 5-year renewal (110,000 SF) at 125 S. Greenbush Road in Orangeburg and Fiske’s 24,000 SF lease at 50 Ramland Road in Orangeburg.

§ Sales: There have been few industrial property trades in the county. One notable transaction was the sale in 2012 of 30 Dunnigan Drive in Suffern to Raymour & Flanagan. The 893,000 SF former warehouse facility sold for $40 million; the sale included a 16 acre land parcel on Hemion Road. Raymour & Flanagan is investing $6 million to convert the building to a super regional distribution center.

§ Expansions: Businesses with a presence in the county that have planned expansions and/or upgrades include Vitane Pharmaceuticals (Congers) and Cambridge Security Seals (Pomona).

38


The county is also home to Avon Products, which owns and occupies a 225,000 SF global research and development facility in Suffern. Avon employs 350 scientists and technicians at the center.

As a testimony to the area’s desirability and pro business environment, Bloomberg L.P. has committed to a 131,000 SF build-to-suit data center in Orangeburg. The developer, Russo Development, is known for its expertise in building and managing data centers. The building, 155 Corporate Drive, is nearing completion and is anticipated to open in mid-2014.

PHARMA CLUSTER

The Campus sits in the middle of the New York/New Jersey biotech market, one of the top five biotech markets in America. These five markets by market capitalization (New England, San Francisco Bay Area, Los Angeles/Orange County, New Jersey, and San Diego) account for 182 of the 316 public biotech companies in the United States. The 182 public companies represent 86% of the total market capitalization of the industry in the United States. New York and New Jersey combined account for roughly 16% of the national market capitalization.

The New York metropolitan region is a center for dedicated pharmaceutical companies. The top three pharmaceutical companies in the world by sales, Pfizer, Novartis and Merck, all have global or national headquarters in New Jersey or New York, as do other top performing companies such as Johnson & Johnson and Sanofi-Aventis. The success of Regeneron, in Tarrytown, NY, illustrates the viability of the region in engendering a positive growth environment for pharmaceuticals. The Diabetes Care division of Bayer is also headquartered in Tarrytown, NY. In addition to large industry players such as Bayer and Pfizer, smaller pharmaceutical companies such as Warren Pharmaceuticals, Eisai, Medco Pharmaceuticals, Acorda Therapeutics, Progenics Pharmaceuticals, and Taro Pharmaceuticals have regional or main offices in

the area.

Rockland County is home to seventeen life sciences/bio-tech firms that occupy R&D, lab, office/flex, and manufacturing space in facilities that are located 25 miles northwest of the George Washington Bridge. In addition to Novartis, pharmaceutical companies with a presence in the county include:

§ Aptargroup Pharmaceuticals (Congers)§ Chartwell Pharmaceuticals (Congers)§ Par Pharmaceutical (Spring Valley)§ Pfizer (Pearl River)§ Teva Pharmaceuticals (Pomona)§ Vitane Pharmaceuticals (Congers)

The largest pharmaceutical campus in the county is Pfizer’s 535 acre, 2.8 million SF campus in Pearl River. The complex includes laboratory, manufacturing, office space and support buildings. Currently a portion of the campus is under contract for sale; these buildings will be sold as a sale-leaseback transaction.

The Novartis Suffern Facility is a unique offering of a high capacity pharmaceutical plant in the New York-New Jersey region. The Property is well suited for fast growing generic pharmaceutical companies, particularly foreign pharmaceutical firms (like-kind users), due to the significant cost savings attributable to the reduced time and paperwork needed to acquire approvals.


INCENTIVESRockland County and New York State offer numerous programs to attract businesses to the area, increase

business investment and to grow employment.

THE ROCKLAND IDA

The Rockland IDA provides financial incentives in the form of tax exemptions or abatements. The incentive programs include:

Sales and Use Tax Exemption: The IDA can provide exemption from the State and County sales tax of 8.375% on all furniture, fixtures, equipment and construction materials directly related to an IDA-approved project. The sales tax exemption sets the total dollar amount of purchases that will be sales tax exempt and establishes the time period for project construction/renovation.

Mortgage Recording Tax Exemption: The IDA can provide exemption from the State’s mortgage recording tax of 1.3% that would be applicable on financing of an IDA-approved project.

Real Property Tax Abatement: The IDA can provide businesses with the ability to negotiate a Payment In Lieu Of Taxes (PILOT) agreement with the affected local taxing entities (village, town, school district). Typically, PILOT agreements establish the amount or percentages paid on set assessment values by the property owner. The IDA serves to facilitate the PILOT structure and approval process; the financial benefit or incentive is subject to the formal approval of the taxing entities.

Tax Exempt Bond Financing: The IDA may provide tax exemption on bond financing for eligible projects. (The IDA does not provide direct financing, but serves as the vehicle to enable the bonding to be tax exempt.) Typically, projects that fall under this program involve

manufacturers or housing projects that meet specific

eligibility criteria.


40


THE ROCKLAND ECONOMIC DEVELOPMENT CORPORATION (“REDC”)

In addition to the incentives offered by the Rockland IDA, the Rockland Economic Development Corporation (“REDC”) assists businesses by coordinating the operations of economic development programs and services in Rockland County.

EMPIRE STATE DEVELOPMENT (“ESD”)

Empire State Development (“ESD”) is New York State’s key economic development agency. ESD provides a variety of grant loan and tax credit programs. The State’s premier economic development program is the Excelsior Jobs Tax Credit program, which is a refundable tax incentive program. To be eligible, projects need to demonstrate the potential to stimulate private job creation and retention, sustainable development and economic development in the community.

ORANGE & ROCKLAND UTILITIES, INC. (O&R)

Rockland Utilities offer an Economic Development Incentive Rate (EDR); this program provides a 20% discount off normal delivery rates for new or expanding businesses (adding at least 100kW demand to the electric system). Companies should be involved in manufacturing, IT, distribution or allied business services to qualify. O&R also offers up to 70% off installation of energy efficient lighting and equipment. The Utilities also offer up to 50% savings on their customized efficiency programs.


42

FROM NEW YORK CITY§ Take the George Washington Bridge

§ Merge onto the Palisades Interstate Parkway

§ Travel 19 miles then take Exit 9W to I-287 West/I-87 North

§ Travel approximately 7 miles then take Exit 14B to Airmont Road

§ Turn left onto Montebello Road

§ Turn left onto Hemion Road

§ Turn right onto Old Mill Road; stop at the guardhouse

FROM WESTCHESTER§ Take I-287 West to the Tappan Zee Bridge

§ Continue on I-287 West for 10 miles

§ Take the Airmont Road Exit 14B

§ Follow the directions above

280

80

95

80

280

78

78

278

295

9595

287

684

684

287

287

87

87

87

678

95

495

678

287

287

9

1

22

46

202

202

1

1

1

9

9

9

9

9W

202

46

9

4

17

208

17

22

100

15

25A

25A

9A

9A

9A

5922

120

23

213

495

25

17A

RamapoNew City

�iells

TomkinsCove

Pomona

WestNyackNanuet

Pearl River

Park RidgeOrangeburg

Tappan ZeeBridge

Airmont

SpringValley

Viola

Oakland

Mahwah

Wycko�

RidgewoodWestwood

Northvale

UpperSaddle River

HackensackEnglewood

Dumont

Oradell

ParamusFairLawn

Claster

Haledon

PatersonTotowa

Wayne

Pequannock

Livingston

ShortHills

WestOrange

Lyndhurst

Secaucus

Montclair

Little FallsCli�on Passaic

Hoboken

NorthBergen

FortLeeWest

Caldwell

NorthCaldwell

Belleville

Kearny

Cranford

SouthOrange

Irvington

Elizabeth Bayonne

Williamsburg Ridgewood

Ozone Park

Bushwick

Elmhurst

AstoriaMidtown

Harlem

EdenwaldRiverdale

NewRochelle

Mamaroneck

Harrison

�ornwood

MillwoodWestchester

Chappaqua

Mt Kisco

BedfordHills

Katonah

Croton-On-Hudson

Ossining

Tarrytown

Greenville

Irvington

Dobbs FerryScarsdale

Mt Vernon

WhitestoneGreat Neck

Bayside

PortWashington

North NewHyde Park

QueensVillage

Jamaica

Forest Hills

Flushing

BROOKLYN

MANHATTAN

BRONX

QUEENS

WHITE PLAINS

UNIONCITYEAST

ORANGE

NEWARKJERSEY

CITY

YONKERS





Newark LibertyInternationalAirport

LaGuardiaAirport

NEW YORK

NOVARTIS PHARMACEUTICAL PRODUCTION CAMPUSSUFFERN, NEW YORKThis Offering Memorandum was prepared by Newmark Grubb Knight Frank and has been reviewed by Owner. It contains select information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information, which a prospective purchaser may desire. All production and packaging equipment subject to availability. 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. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Offering Memorandum, certain documents and other material 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 Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Newmark Grubb Knight Frank or Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

Owner and Newmark Grubb Knight Frank expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Project and/or to terminate discussion with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this.

Offering or making an offer to purchase the Project will not be considered accepted unless a written

agreement for the purchase of the Project has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived. Newmark Grubb Knight Frank is not authorized to make any representations or agreements on behalf of Owner.

The Property is privately offered and, by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Newmark Grubb Knight Frank immediately upon request of Newmark Grubb Knight Frank or the Special Receiver and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Newmark Grubb Knight Frank and Owner.

The terms and conditions set forth above apply to this Offering Memorandum in its entirety.


Documents

NOVARTIS PHARMACEUTICAL PRODUCTION CAMPUS · laboratories, inspection areas and packaging lines. The layout of the Complex facilitates the transfer of packaged products to the warehouse/shipping