hawthorneRETAIL PARTNERS

Urban District reDevelopment - Durham, North CarolinaContact Info: Ryan Preston | Director of Leasing | rpreston@hawthorneretailpartners.com | 704-333-1512

The convergence of art, culinary talent, wellness, fas h i o n and residential living, creating the most dynamic district in Durham.

30,000 sf High End Fitness Club

a collaboration of some of North Carolina's best

mural artists featuring numerous murals totaling over 20,000 SF of wall space.

South Square

Walls:

RESTAURANTS

QUICK FACTS

RETAIL

300,000+sf mixed-use redevelopment situated in a vertically integrated, main street setting

55,000+sfof Class A retail and restaurants

262 Luxury Apartments:• Class AA construction & amenities • Over 325 residents

1,000-3,500 sf

Shop Space:

1,200-3,500 sf

Restaurant and CAFÉ SPACE with EXCLUSIVE OUTDOOR SEATING

Retail Submarket• Shares a signalized intersection with a Super

Target regional shopping center consisting of Ross, Petco, Sam’s Club, and Office Depot. Reportedly one of the highest grossing Super Target in the Carolinas.

• Strategic positioning - location trades the entire Durham market; thus, an ideal location for a retailer and Restaurants seeking a Central Position in the market.

• Adjacent to over 1,000,000 SF of Retail.

• Over 1,700,000 SF of surrounding office space, including Blue Cross Blue Shield's north carolina headquarters with 3,200 employees 1/2 mile away.

Duke University• Located 5 minutes (3 stoplights) from South Square

(take University Dr. turn left on Academy Rd. for 2.0 miles)

• 2nd largest private employer in North Carolina with over 37,000 employees.

• Creates an estimated $5.8 billion annual economic impact on Durham

• Visitors to Duke spend over $450 million annually off campus

• Mean salary for Durham residents working at Duke is over $75,000

• 12,000 students - undergraduate tuition and fees: $66,739

Area/Neighborhood• South Square is surrounded by Durham’s most affluent

neighborhoods with home prices ranging from $500,000 to $3,000,000+ (Hope Valley, Forest Hills, Duke Forest, Garrett Farms).

• Close proximity to 5 Private Schools totaling over 3,000 students (Durham Academy, Carolina Friends School, Duke School, Trinity School, Cresset Christian Academy)

• 10 K-12 school campuses within immediate trade area of South Square (7,160 students)

• 3 mile Avg Household Income: $78,048

• 5 mile employees: 118,610

• 5 mile population: 176,330

• 5 mile daytime population: 214,270

CLASS A OFFICE

VIEW FROM HWY 15-501 (19,510 VPD)

UNIVERSITY DRIVE(18,563 VPD)

UNIVERSITY DRIVE

SHANNON RD(12,191 VPD) Top Performing

PROPOSEDLIGHT RAIL

STATION

HWY 15-50119,510 VPD

UNIVERSITY DRIVE18,563 VPD

SHANNON ROAD12,191 VPD

OFFICE

OFFICE

OWNED BY AFFILIATES OF HAWTHORNE

SOUTH SQUARE STATION LIGHT RAIL PLATFORM

SUBJECT PROPERTY

SITE PLAN

Top grossing Super Target in Carolinas

Shares signalized access

with 500,000 SF Super Target anchored center

Excellent Visibility: Project will be 50+ feet

tall so will have:

- Over 1,000 feet of visibility on

University Drive

- Over 400 feet of visibility on

Shannon Road

- visibility from 15-501

Over 4 Points of Ingress/Egress

- Two Points of Access

on Shannon Road

- Two Points of Access

from University Drive

1)

2)

3)

(12,191 VPD)

FUTURE DURHAM ORANGELIGHT RAIL STATION

WITH PARKING

UNIVERSITY DRIVE (18,563 VPD)

SITE PLAN

1)

2)

3)

FOUR - 16 Foot Pylon Signs- 2 along University Drive (18,563 vpd)- 1 on Auto Drive facing intersection

with Super Target center- 1 on Mayfaire

TWO - 6 Foot Monument Signs- 1 at Shannon Road Entrance- 1 at Mayfaire Road

Parking Ratio - over 4.75 per 1,000 SF

DUKE UNIVERSITY

02

05

85

15501

40

40

40

147

14703

04

01

06

07

091015501BYPASS14

11

85

08

13

54

DUKE FOREST

15

17

15501

BYPASS

16

TRADER JOE’S

HILLSBOROUGH

WHOLE FOODS

SOUTHERN SEASON

12

01

02

03

04

05

06

HOPE VALLEY FARMS HOMES FROM $190,000-$350,00007

WOODCROFT HOMES FROM THE $225,000+

HOPE VALLEY & HOPE VALLEY COUNTRY CLUB

HOMES FROM $225,000-$2.25M

THE VALLEY / VALLEY RUN / UNIVERSITY ESTATES

HOMES FROM $300,000-$985,000

NEW HOPE VALLEY HOMES FROM $475,000-$800,000

BEN CREEK, WOODBERRY FOR-EST, MARYDELL ESTATES

HOMES FROM $400,000 +

TUSCALOOSA, ROCKWOOD,

DUNBARTON HOMES FROM $225,000-$350,000

08

FOREST HILLS

HOMES FROM $250,000-$750,000

CROASDAILE & CROASDAILE FARMS HOMES FROM 250,000-$1.75.0M

09

DRIVE TIME TO

SOUTH SQUARE

3-5 MINS

3 MINS

3 MINS

4 MINS

3 MINS

7-9 MINS

5-7 MINS

7-8 MINS

5 MINS

AMERICAN VILLAGE HOMES FROM $300,000-$500,000

HILLANDALE & TRINITY PARK

HOMES FROM $215,000-$1.65M

DUKE FOREST

HOMES FROM $225,000-$885,00010

11

12

TREYBURN HOMES FROM $250,000-$2.0M13HOPE CREEK, GARRETT FARMS,

ASHWORTH ESTATES, CARRIAGE HILL

HOMES FROM $350,000-$600,00014

3 MINS

8 MINS

6 MINS

20 MINS

5 MINS

BRIGHTLEAF PARK &

ASHWORTH ESTATES

HOMES FROM $250,000-$325,000

DOVER RIDGE, ENO VALLEY, LATTA, OLD FARM, STEPHENS WOOD

HOMES FROM $200,000-$350,000

WILLOWHAVEN COUNTRY CLUB

HOMES FROM $200,000-$600,00015

16

17

9-11 MINS

10-12 MINS

8-10 MINS

SOUTH SQUARE

DRIVE TIME TO

SOUTH SQUARE

SURROUNDING NEIGHBORHOODS

SURROUNDED BY DURHAM'S MOST AFFLUENT NEIGHBORHOODS WITH HOME PRICES RANGING FROM $500,000-$3,000,000+ (HOPE VALLEY, FOREST HILLS, DUKE FOREST, GARRETT FARMS).

2.2

MIL

ES

CLASS B OFFICE

CLASS A OFFICE

CLASS A OFFICE

BLUE CROSS BLUE SHIELD (3,200 EMPLOYEES)OFFICE

OFFICE TOWER

HARRIS TEETER

(HIGHEST GROSSING IN CAROLINAS), SAM'S CLUB, ROSS PETCO

FRESH MARKET

SOUTH SQUARE

6

147

15501

BYPASS

5 4

182

7

3

1. Residence Halls

2. Law School, Business School,

School of Public Policy

3. Chapel, Library, Student Center

4. Duke Medical Center

5. Science & Engineering Buildings

6. Faculty Club

7. Washington Duke Inn & Golf Course

8. Cameron Indoor Stadium

1. DUKE UNIVERSITY • Located 2.2 miles from South Square via Academy Rd or 15-501 By Pass

> 3 stoplights

> 5 min. easy drive through Duke Forest

• Duke is the 2nd largest private employer in North Carolina with over 37,000 employees

• Duke is the largest private employer in the Triangle Region

• Creates an estimated $5.8 billion annual economic impact

• Mean salary for Durham residents working at Duke is over $72,000

• Undergraduate tuition and fees: $66,739

2. Blue Cross Blue Shield North Carolina Headquarters - 1/4 Mile - 3,200 Employees

3. Over 750,000 SF of office space within a 1 mile radius

Duke Campus Map

Over 40,000 Employees within 5 minutes of

DUKE EMPLOYMENT FACTS

• Duke (located 2.2 miles from South Square) is the 2nd largest private employer in North Carolina with

over 37,000 employees

• Duke is the largest private employer in the Triangle Region

• Duke creates an estimated $5.8 billion annual economic impact on Durham

• Mean salary for Durham residents working at Duke is over $72,000

DURHAM

$7,154

$14,198

$11,068

ORANGE WAKE

Source: NC Department of Revenue/NC Office of State Budget & Management

0

$3,000

$6,000

$9,000

$12,000

$15,000

$18,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

18.6%

23.1%

DURHAM BUNCOMBE FORSYTH GUILFORD WAKE PEER AVG NC

WHITE BLUE SERVICE

55.2%

22.8%

60.9%

24.6%

55.4%

32.7%

58.2% 59.1%55.5%

24.4%

20.0%22.3%

18.6%

12.2%

19.3%17.5%17.5%

16.4%

67.9%$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$02009

DURHAM COUNTY

TRIANGLE

STATE

Source: NC Employment Security Commission

Duke University & Medical Center . . . . . . . . . . 30,000+

IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,300

GlaxoSmithKline . . . . . . . . . . . . . . . . . . . . . . . 4,800

Durham Public Schools . . . . . . . . . . . . . . . . . . . 4,500

Nortel Networks . . . . . . . . . . . . . . . . . . . . . . . 2,600

RTI International . . . . . . . . . . . . . . . . . . . . . . . 2,000

City of Durham . . . . . . . . . . . . . . . . . . . . . . . . 1,979

US EPA Environmental . . . . . . . . . . . . . . . . . . . . 1,970

Durham County Government . . . . . . . . . . . . . . . 1,810

Blue Cross & Blue Shield of NC . . . . . . . . . . . . . . 1,800

Durham Regional Hospital . . . . . . . . . . . . . . . . . 1,800

TOP DURHAM EMPLOYERS

On Forbes List

of Where AmericansSpend the Most

˜ FORBES

US Cities

˜ THE ATLANTIC

with Most Leftover

After HousingINCOME TO SPEND

2010 PER CAPITA TAXABLE SALES

JOB MIX BY COUNTY (PEERS) AVERAGE WAGES PAID 2009

DURHAM {CITY OF MEDICINE USA} 1 IN 3 DURHAM WORKERS ARE EMPLOYED IN HEALTHCARE

DUKE MEDICAL CENTER

DURHAM EMPLOYMENT

CAROLINA FRIENDS SCHOOL (PRIVATE)

480 STUDENTS

CRESSET CHRISTIAN ACADEMY (PRIVATE)

343 STUDENTS

GITHENS MIDDLE SCHOOL (PUBLIC)

893 STUDENTS

JORDAN HIGH SCHOOL (PUBLIC)1,897 STUDENTS

DURHAM ACADEMY UPPER SCHOOL (PRIVATE)

1,135 STUDENTSDURHAM ACADEMY (PRIVATE)

1,135 STUDENTS

ROGERS-HERR MIDDLE (PUBLIC)

643 STUDENTS

HOPE VALLEY ELEMENTARY (PUBLIC)

705 STUDENTS

FOREST VIEW ELEMENTARY (PUBLIC)

618 STUDENTS

TRINITY SCHOOL (PRIVATE)

446 STUDENTS

SOUTH SQUARE

UNIVERSITY DRIVE

15-501 BY-PASS

OLD CHAPEL HILL ROAD

HOPE VALLEY ROAD

GARRETT ROAD

Jordan High School (Public)

1,897 Students

Durham Academy (Private)

1,135 Students

Githens Middle School (Public)

893 Students

Hope Valley Elementary (Public)

705 Students

Rogers-Herr Middle (Public)

643 Students

Forest View Elementary (Public)

618 Students

Carolina Friends School (Private)

480 Students

Trinity School (Private)

446 Students

Cresset Christian Academy

(Private)

343 Students

• Durham has over 28 Private Schools (Chapel Hill 5) including Durham Academy (1,135 students),

Trinity (446 students), Carolina Friends (480 students) - all within a 2 mile radius of South Square.

• Durham Public Schools is the 7th largest school district in the state with 33,000 students and 4,500 employees.

SCHOOLS WITHIN A 2.5 MILE RADIUS OF SOUTH SQUARE:

SCHOOL FACTS

DURHAM SCHOOLS

1

2

3

I-85 S TO 15-501 BYPASS (60 MPH) PROVIDES DIRECT CONNECTION TO SOUTH SQUARE FROM NORTHERN DURHAM

NORTH DURHAM ROADS CONNECTING TO I-85

I-85 N TO 15-501 BYPASS (60 MPH) PROVIDES DIRECT CONNECTIVITY TO SOUTH SQUARE FROM NORTHWEST DURHAM & HILLSBOROUGH

NORTHERN DURHAM TO SOUTH SQUARE

7

8

9

10

UNIVERSITY DRIVE: 4 LANE ROAD WITH TURNLANE THAT PROVIDES CONVENIENT ACCESSFROM FOREST HILLS, ROCKWOOD, TUSCALOOSA, DUNBARTON AND DOWNTOWN

SHANNON ROAD PROVIDES IMMEDIATE ACCESS FROM HOPE VALLEY’S MAIN ENTRANCE

UNIVERSITY DRIVE PROVIDES IMMEDIATE ACCESS TO SOUTH SQUARE FROM BLUE CROSS BLUE SHIELD (3,200 EMPLOYEES), OFFICE BUILDINGS AND SEVERAL THOUSAND APARTMENTS

MLK BLVD PROVIDES 4 LANE TRAVEL FROMSOUTHERN DURHAM (HOPE VALLEY, HOPEVALLEY FARMS)

SOUTHERN DURHAM TO SOUTH SQUARE

5

6

15-501 BYPASS (60 MPH) PROVIDES DIRECTCONNECTION FROM DUKE UNIVERSITY & DUKE MEDICAL CENTER TO SOUTH SQUARE (5-7 MINUTES)

DIRECT ACCESS FROM DUKE VIA ACADEMY ROAD (2.2 MILES)

DUKE TO SOUTH SQUARE

4 HWY 147 TO 15-501 BYPASS (60 MPH) PROVIDES DIRECT CONNECTION FROM CENTRAL DURHAM INTERCHANGES TO SOUTH SQUARE (4-6 MINUTES)

CENTRAL DURHAM TO SOUTH SQUARE

DUKE UNIVERSITY

85

15501

40

147

15501

BYPASS

85

15501

BYPASS

4

7

6

1

2

3

9

10

5

8

PROVIDES EXCELLENT CONNECTIVITY TO SOUTH SQUARE

• 15-501 Bypass provides highway connectivity (no stoplights) to South Square from

Northwest Durham, Northeast Durham, Central Durham and Duke.

• Area immediately surrounding South Square has excellent signalization, road infrastructure

(4 lane roads with turn lanes) and connectivity because the adjacent Super Target site was

originally developed as a regional mall.

SOUTH SQUARE

DURHAM'S ROAD INFRASTRUCTURE

Access from Neighborhoods: Forest Hills, Tuscaloosa, Lakewood,

Rockwood & Parkside and Downtown Durham

DUKE FORESTNEIGHBORHOOD

Direct Access from Duke and Duke Forest Neighborhood

(2.2 miles from SOUTH SQUARE)

THE FOREST AT DUKE: CLASS A RETIREMENT COMMUNITY

(400 RESIDENTS & 275 EMPLOYEES)

DURHAM ACADEMY

HOPE VALLEY ELEMENTARY SCHOOL

ROGERS-HERR MIDDLE SCHOOL

Turn to go to Duke(1.8 Miles)

OFFICE

OFFICE

OFFICE TOWER

CLASS A OFFICE

Access to 15-501 Bypass North from

University Drive

CLASS A OFFICE

CLASS A RETAIL

CLASS A APARTMENTS

LIBRARY

THE VALLEY NEIGHBORHOOD

Main Entrance to Hope Valley(1,000 Homes from $350k-$2.5m)

From Hope Valley Farms

OFFICE

15-501 BYPASS SOUTH: Direct access from Duke University & Medical, HWY 147 (Central Durham) and I-85 (North Durham)

To 15-501N BYPASS

4 Lane Road with turn lane

HWY 15-501 (6+ Lanes)

15-501 towards I-40 and Chapel Hill

Two options to SOUTH SQUARE from 15-501 Bypass South:1. Connects to 15-501 through Interchange Loop

2. Connects directly into University Drive at Signalized Intersection

MLK Blvd provides 4 Lane Travel from Southern Durham

(Hope Valley, Hope Valley Farms) to SOUTH SQUARE

University Drive 4 Lane Road with turn lane

OWNED BY AFFILIATES OFHAWTHORNE RETAIL

AND MEDICAL CENTER

BLUE CROSS BLUE SHIELDNC HEADQUARTERS(3,200 EMPLOYEES)

PROPOSED LIGHT RAIL STATION

ROAD CONNECTIVITY