The Offering. 425, 427, 429, 431 Chestnut Street, 510 Houston Street and 1201 Brown Street. Addresses. Total Available: 65,286 SF

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The Offering AJ Capital Partners is pleased to present for lease approximately 6,000 square feet of Class A office space at May Hosiery a historic campus of 6 irreplaceable buildings set on 4 acres

3 The Offering AJ Capital Partners is pleased to present for lease approximately 6,000 square feet of Class A office space at May Hosiery a historic campus of 6 irreplaceable buildings set on 4 acres in the rapidly expanding neighborhood of Wedgewood Houston. Dating back to 1909, May Hosiery is the adaptive re-use of the oldest sock mill in the South. The integration of innovative workspaces, chef-driven restaurants, lifestyle retail, outdoor public spaces and events offers a truly unique experience for users seeking culture and character. Addresses Site No. of Buildings Office Availability Total Interior Area Uses Lease Type 425, 427, 429, 431 Chestnut Street, 510 Houston Street and 1201 Brown Street 4.05 Acres 6 Buildings Total Available: 65,286 SF 431 Chestnut: 28,818 SF available divisible 14,409 SF on Level 1 14,409 SF on Level Brown: 36,468 SF available divisible 18,234 SF on Level 1 18,234 SF on Level 2 120,000 SF Office, Retail, Restaurant Office FSG; Retail - NNN Delivery June 2018 Office Parking Ratio 4/1,000 SF 3

4 65 GERMAN -TOWN THE NATIONS SYLVAN PARK SYLVAN HEIGHTS WEST END CHARLOTTE CORRIDOR VANDERBILT UNIVERSITY & MEDICAL CENTER MARATHON VILLAGE MIDTOWN BELMONT MUSIC ROW 12TH SOUTH DOWNTOWN GULCH EDGEHILL SOBRO ROLLING MILL HILL PIE DISTRICT 8TH AVE S WEHO MELROSE BERRY HILL 440 GREEN HILLS 65

5 Site Map PARKING PARKING B 510 PARKING 5

WE REINVENT SPACE & GIVE IT BACK MEANING AJ CAPITAL PARTNERS is a dynamic private equity investment and development organization with a portfolio of lifestyle hotel, luxury resort, and mixed-use

Its experienced team leverages their hospitality-centric approach to design, programming, and place-making to drive long-term value creation in timeless real estate.

8 WE REINVENT SPACE & GIVE IT BACK MEANING AJ CAPITAL PARTNERS is a dynamic private equity investment and development organization with a portfolio of lifestyle hotel, luxury resort, and mixed-use assets across North America. The company s core competency is the creation of distinctive, locally-inspired properties set in high growth and high culture environments with diverse demand generators. Its experienced team leverages their hospitality-centric approach to design, programming, and place-making to drive long-term value creation in timeless real estate. The company has specific expertise in the execution of major adaptive re-use projects with historical significance and ground-up development. This body of work includes: THE CHICAGO ATHLETIC ASSOCIATION; restoration of former private members club and architectural gem built in 1893 on Michigan Avenue. The property features 241 guest rooms, street-front retail, and a collection of destination dining, drinking, cafe and event spaces -- including the James Beard award-winning Cherry Circle Room and highly acclaimed penthouse restaurant Cindy s, with sweeping views of the city. The project was designed by Roman + Williams in partnership with HPA Architects, and won the Urban Land Institutes 2016 Historic Preservation Award. THOMPSON NASHVILLE; ground-up development of iconic lifestyle hotel, located in one of the city s most celebrated neighborhoods. The program includes a signature ground floor restaurant, boutique retail space, penthouse bar and patio with panoramic views, and 224 guest rooms and suites. The hotel was named to the Conde Nast Hot List and Traveler s Choice Awards in 2017, and received the ULI Nashville People s Choice Award. 8 SAN FRANCISCO ARMORY; transformation of 250,000 square foot historic military property built for the National Guard in 1912 into an innovation workplace. The property is located in The Mission, one of San Francisco s most vibrant and storied neighborhoods. The project is set to deliver in 2019 following a $60 million renovation.

SOHO HOUSE CHICAGO; redevelopment of belt factory building in the heart of the West Loop into a 120,000 square foot private members club with 40 guest rooms, spa, boxing gym, rooftop pool, members

WEWORK CHICAGO WEST LOOP; rehab of 90,000 square foot former meat packing facility into creative office space occupied and managed by industry leading WeWork.

9 SOHO HOUSE CHICAGO; redevelopment of belt factory building in the heart of the West Loop into a 120,000 square foot private members club with 40 guest rooms, spa, boxing gym, rooftop pool, members lounge, and screening room. The project won the Urban Land Institute Catalytic Redevelopment Award in WEWORK CHICAGO WEST LOOP; rehab of 90,000 square foot former meat packing facility into creative office space occupied and managed by industry leading WeWork. The property is anchored between Fulton Market and Randolph Street, two thoroughfares that continue to attract the world s top restaurateurs and businesses including the Chicago headquarters for neighboring Google. THE PONCHARTRAIN NEW ORLEANS; revival of historic hotel property built in 1825 in the Garden District of New Orleans, in celebration of its storied past. Notable former guests include Rita Hayworth, The Doors, and Tennessee Williams -- who stayed at the property while writing A Streetcar Named Desire. The hotel features a fine dining restaurant, cafe, tavern, and rooftop bar which all pay homage to the property s history. GRADUATE BERKELEY; conversion of 1928 Spanish Colonial property into 140-room hotel featuring Tartine Bakery and culinary program by Bill Chait. Graduate Hotels is a lifestyle brand platform created by AJ Capital Partners set in university-anchored locations. There are currently 10 operating assets in the portfolio with another 15 in development including Yale, Vanderbilt, University of Washington, and Ohio State -- making it the fastest growing hotel brand in the country. 9

Project Architect Dryden Architecture and Design Dryden Architecture and Design is an award-winning architecture and interior design studio based in Nashville, TN -- established in 2001.

10 Project Architect Dryden Architecture and Design Dryden Architecture and Design is an award-winning architecture and interior design studio based in Nashville, TN -- established in The firm is dedicated to making meaningful human places that mindfully engage local resources and operate simultaneously as habitat and create a lasting memory. They have completed a variety project types ranging from neighborhood master-plans, mixed-use developments, adaptive reuse projects, private residences, boutique retail, restaurants and corporate offices. The company s focus has been on projects that have significantly impacted neighborhoods and helped contribute to a healthy flora of the communities they work within at all levels. 10

12 The History From knickers to body stockings May Hosiery is located on Chestnut Street just east of Fort Negley. There are six buildings on the campus with approximately 120,000 square feet of interior space. The landmark buildings are widely known as the May Hosiery Mill, which employed generations of Nashville families and was the oldest sock mill in the South. The four acre property was acquired by Jacob May and his partners in May served as president and as chairman of the board until his death; his sons Mortimer and Dan operated the mill after that. The company was noted for the quality of its socks. The crew of Apollo 2, which landed on the moon in 1969, wore socks made by the May Hosiery under contract to NASA. German-born Jacob May, 18 years old, came to America in 1879 in steerage. He arrived in this country without speaking knowledge of the language and with only seven dollars in his pocket. He began peddling dry goods from a pack on his back. When he had earned enough he peddled the New England area by horse and wagon. He later married and settled in Laconia, New Hampshire, a hosiery mill town, where he opened a store. On buying trips for the store, he sold his suppliers hosiery from the mill town. An advertisement in a Boston newspaper brought Jacob May to Nashville. He and a friend successfully bid a Tennessee prison labor contract - 50 men at approximately 50 cents a day. May moved his family and several French-Canadian fixers (knitting machine repairmen) to Nashville and started the Rock City Hosiery Mills in the old Church Street penitentiary in By 1908 May and his partners opened for business on Chestnut Street. In the following years, May Mills counted as customers Marshall Field, Montgomery Ward, Spiegel, Woolworth, Kress, Boy and Girl Scouts, as well as Nashville wholesalers J.S. Reeves, Neely Harwell, W.S. Riddle, and Eskind & Greenspan. In the 1930 s May was one of the first licensees of Walt Disney, and the company was a prime contractor in mortar fuses during World War Two. During the years before the war, Jacob and Mortimer May made five trips into Hitler s Germany and managed to rescue more than 200 Jews before the flow of visas was cut off. Mortimer became connected with the network of underground movement in Europe and succeeded in saving some intellectual Jews, which the Nazis were eager to liquidate. After the war, Mortimer helped to establish a Jewish homeland in Israel. Today May Hosiery is being reimagined into a hub of innovation and commerce for a new generation, with a careful preservation of its history and legacy in mind. 12

14 431 Chestnut: Level 2 14,409 sq ft 14

16 431 Chestnut: Level 1 14,409 sq ft 16

17 431 Chestnut rendering

18 1201 Brown Street: Level 2 18,234 sq ft 18

19 1201 Brown rendering

20 1201 Brown Street: Level 1 18,234 sq ft 20

22 Wedgewood-Houston Neighborhood Wedgewood-Houston is a rapidly expanding submarket in Nashville s urban core, located 1.2 miles south of the Central Business District; with adjacency to 12 South, the Gulch, and SoBro. The district runs from 2nd to 8th Avenue between Wedgewood Avenue and Houston/Chestnut Streets. The area is diverse in both product and population, including historic homes and warehouses, as well as repurposed and new mixeduse developments. Approximately 1,000 new single family home and townhouse permits have been issued over the last 3 years, during which time the neighborhood has experienced significant absorption and rental rate growth. There have been approximately 2,700 new apartment units delivered from along 8th Avenue South up through SoBro. Historic manufacturing properties such as May Hosiery, many of which are experiencing a renaissance with exciting adaptive reuse projects, pay homage to the area s industrial roots. Wedgewood-Houston has attracted artists, musicians, and young professionals alike. Several major projects are in planning or development, establishing the area as one of the most actively expanding in the city with a dynamic combination of revived historic properties and new builds. The enclosed information provides further granular detail on the various activities in the area. 22

23 WEDGEWOOD-HOUSTON Ave S uth St Developments: A Six Merritt The Finery B Eighth Avenue Townhomes C Wedgewood Park Apartments D Pillow Street Cottages E Merritt Mansion Redevelopment F Herschel Greer Stadium G Outpost Nashville emont St Hawkins St Restaurants & Attractions: 1 Parson s - May Hosiery 2 Tin Dog Tavern 3 Clawson s Pub & Deli 4 Smokin Thighs 5 Gabby s Burgers & Fries 6 Corsair Distillery 7 Dozen Bakery 8 Zeitgeist Gallery 9 David Lusk Gallery 10 Refinery Nashville Coworking Space 11 Houston Station Hemingway Arcade 12 Seed Space 13 Vintage Millworks 14 Grimey s/the Basement/ Frothy Monkey 15 Griffin Technology 16 Simply Mac 17 Adventure Science Center 18 Fort Negley 19 Bastion 20 Falcon Flamingo d Ave Distances: minutes to Interstate minutes to Downtown minutes to Nashville International Airport Ave 15th Ave S 14th Ave S 11th Ave S Archer St Summit Ave South St 10th Ave S Hillside Ave Benton Ave Bradford Ave Waldkirch Ave Wedgewood Ave Glen Ave Knowles Ave 40 9th Ave S Edgehill Ave S Douglas Ave Hillview Heights Alloway St B E Argyle Ave Roycroft Pl Benton Ave 14 C 18 Bradford Ave Melpark Dr 17 Craighead St Bass St Chestnut St F Hagan St 7 9 Oak St 5 Grey St A 6 Wedgewood Ave Southgate Ave Stewart Pl Martin St Allison Pl Neal Terrace Carvell Ave Bransford Ave Vine Hill Rd Magnolia Rd 4 Martin St Craighead St 1st Ave S 3rd Ave S 1 G Houston St 20 E Merritt Ave 13 Moore Ave Pillow St Humphreys St Hamilton Ave 2nd Ave S 3rd Ave S 2 D Byrum Ave Charles E Da 1st Ave S N Hill St St Trimble St Nolensville Pike Craighead St Lewis St

24 Nashville An Introduction Declared It City by the New York Times in 2013, Nashville has since earned a stream of accolades that includes 2016 recognition from the Brookings Institute as a top 10 US city for job growth and prosperity. Nashville has been recognized among the nation s Top 25 Art Destinations by American Style magazine and as the #7 Best Place for Artists in the US by Business Week. Travel + Leisure reported that Nashville, known internationally as Music City, beat contenders like Australia and Cuba in the Magazine s 2015 poll of readers favorite vacation destinations. Nightly music of every genre is performed at venues as different as honkytonk Tootsies World Famous Orchid Lounge, indie-centric bar, 12th and Porter, and the elegant Schermerhorn Symphony Center. Critically acclaimed ABC musical drama Nashville is filmed locally and is broadcast to audiences worldwide. Taylor Swift was discovered at local Bluebird Cafe and historic RCA Studio B sits in midtown Nashville, but show business is not the city s only defining characteristic. Over the last decade, the area has experienced tremendous growth across the healthcare, tourism, publishing, and technology industries. High-profile businesses from across the country and the globe have moved to Nashville MSA, including Nissan, Oreck, Bridgestone, Warner Music, Warby Parker, The Consulate- General of Japan, and Lyft. Nashville is the capital of Tennessee and serves as transportation, business, and tourism hub for the region. Nashville s diverse economic market nestles in the state s geographic center, comprises 10 counties with a total population exceeding 1.7 million. The City supports many innovative and aggressive local programs to recruit workers to the region. The business environment is characterized by a favorable geographic location, quality workforce, lower taxes and growth opportunities enhanced by a diverse economy. Many of Nashville s most valuable workers come from the area s vast educational system, which includes 18 accredited four-year and postgraduate institutions. These schools deliver 17,000 graduates to the market each year, 60% of which choose to stay in the region after graduation. In the Nashville MSA, 44.9% of adults at least 25 years and older have one or more years of college education, and more than 45,000 people have graduate or professional degrees. Vanderbilt University ranked the #15 university in the nation by the US News & World Report. MBA Programs at Belmont and Lipscomb Universities were also named among the nation s best by Bloomberg. In addition to offering a cost of living below the national average and a climate that remains mild year-round, Nashville features dozens of municipal parks and golf courses. The city s rich landscape is spotted with natural attractions like Elm Hill Marina and Percy Priest Lake. 24

25 Market Overview Sizable and Growing Population With a population of 1.8 million in the Nashville MSA, Nashville is the largest MSA in a five-state area. Only the Austin, Raleigh and Denver MSAs grew faster than Nashville between 2010 and Diverse Mix of Industries Health care, corporate operations, advanced manufacturing, music and entertainment, and supply chain management are the leading industries that drive the Nashville economy. Some of the nation s most notable corporations are headquartered in Nashville, such as Nissan North America, Bridgestone Americas, Dollar General, Hospital Corporation of America and Gibson Guitar. Favorable Geographic Location 50% of the U.S. population (150 million people) lives within 650 miles of Nashville, with 40 million people within 300 miles. 75% of U.S. markets are within a two- hour flight. Skilled Workforce The area is home to more than 118,000 students, with 17,000 graduating each year and 10,000 of those graduates remaining in the Nashville area and providing a strong pipeline of educated talent. High Quality of Life The U.S. Chamber of Commerce s Enterprising States report named Tennessee a top state for low business taxes and regulations. Tennessee also has the second lowest state and local tax burden per capita, and no income tax on wages. 25

26 Market fundamentals Population Growth drives employment growth Between 2010 and 2016, population grew from 1.7 million to 1.9 million. Meanwhile, employment dropped 520 basis points. 1,900,000 1,850,000 1,800,000 1,750,000 1,700,000 1,650,000 1,600,000 1,550,000 MSA Population Job growth (12-month change) 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Unemployment rate % 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Employment Landscape Snapshot: Nashville s economy is diverse and safeguards it from some volatility. It is in the top 15% of highest employment rates MSAs in the U.S. Over the past 12 months, 10 out of its 10 industry super-sectors experienced healthy job growth was the highest employment year in the city s history. 2.9% Nashville unemployment 4.7% Tennessee unemployment 4.3% U.S. unemployment 3.5% Nashville 12-month job growth 1.9% Tennessee 12-month job growth 1.5% U.S. 12-month job growth 26

27 Employment by Industry National employment situation Q % 4% 4% 2% 19% Information Trade, Transportation & Utilities Mid-sized Southeastern markets overwhelmingly account for fastestgrowing metro areas (12-month % change) Professional & Business Services 9% Educational & Health Services 11% 16% Government Leisure & Hospitality Manufacturing Financial Activities 12% 16% Mining, Logging & Construction Other Services 27

Office Market Nashville s growth is fueled by a booming tourist economy and businessfriendly local government. Efforts to increase density in the urban core have been successful.

28 Office Market Nashville s growth is fueled by a booming tourist economy and businessfriendly local government. Efforts to increase density in the urban core have been successful. In fact, Downtown vacancy is the lowest it s been in 15 years, and vacancy rates are 110 basis points lower in the urban core compared to the suburbs. With many large corporations circling Nashville as a potential home for their corporate headquarters and countless startups and entrepreneurial companies taking a closer look at the city, the vibrancy of the urban submarkets will provide a dynamic, growth-centered environment. Snapshot Forecast YTD net absorption 537,401 s.f. Under construction (new) 1,526,088 s.f. Total Vacancy 8.2% Average asking rent (gross) $25.77 s.f. Concessions Rising Supply and demand (s.f.) 1,750, ,000 Net absorption Deliveries Y TD 2017 Total vacancy 9.0% 9.3% 8.2% 6.8% 6.2% Average asking rents ($/s.f.) $30.00 $20.00 $10.00 $0.00 Class A Class B

34 For more information, contact Bill Adair Vice President Ashley Albright Associate Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. TN_475297_12.17

Addresses. Site. Delivery June 2018

Addresses. Site. Delivery June 2018 AJ Capital Partners is pleased to present for lease approximately 60,000 square feet of Class A office space at May Hosiery a historic campus of 6 irreplaceable buildings set on 4 acres in the rapidly