MEREDA’s 2016 ANNUAL REAL ESTATE  FORECAST CONFERENCE Bath/Brunswick/Topsham Market Assessment Don Spann RE/MAX Commercial 01/21/2016 Overview of Market Activity for  Bath/Brunswick/Topsham (Last few years)  • THANK YOU MEREDA!!! • • • • • 2013 saw a resurgence in the housing market in Bath/Brunswick/Topsham which grew  through 2015 with unprecedented activity throughout the holiday. Commercial lagged  behind a little, but with the resurgence at Brunswick Landing &  Topsham Commerce Park significant new and redevelopment efforts are now very  active. With Two Thirds of the States population within 35 miles, traffic counts at the Interstate  interchange exceeding Maine Mall Counts; as the Gateway to Downeast, the region is  not only growing, but flourishing. Growth in Manufacturing, Medical Office, Financial, Eldercare and selected Retail have  led the way. While regional empirical data is difficult to derive; with the help of  Bath/Brunswick/Topsham Municipal Staffs, Midcoast Regional Redevelopment  Authority (MRRA), Priority Real Estate Group, Sitelines, BDA and C‐Prime Valuation  Group, LLC the following presentation is a comprehensive assessment of the  Bath/Brunswick & Topsham market.  Don Spann RE/MAX Commercial 2 Bath Market Activity • Key projects approved or constructed in the last two years  in Bath: – – – – – – – – – – BIW Ultra‐hall II Expansion (Washington Street) Residence Inn (Route 1) CVS (Route 1) CVS Pharmacy (Court & Floral Streets) Bath Riverwalk Residences (Waterfront) Huse School Apartments (Andrews Road) Salt Pine Social Restaurant (Downtown) Midcoast Medical Group Bath Practice (Downtown) Plant Memorial Home Expansion (Washington Street) Raytheon Lease at (Vine and Front Street)/Investor Purchase Kennebec Landing Apartments (USN lease ‐ 30 apartments) Don Spann RE/MAX Commercial 3 Growth in Bath BATH. ME I .322! I I CVS/pharmacy CV5 STORE 00801 COURT STREET FLORAL STREET CVS Pharmacy A Better?Wayin Don Spann Commercial 4 GorTIrner'ciaI Flea! Estate Growth in Bath .M :l [Rh? l??l'f EST Vi EWS . BATH RIVERWALK RESIDENCES Residence Inn Bath Riverwalk A Better Way in Don Spann Commercial 5 Commercial Real Estate Brunswick Market Activity • Key projects approved or constructed “Outside the fence” in  Brunswick: – – – – – – – – Portland Pie (opening in January 2016) Weenies and Burgers (opening TBD) Hatch on Maine (filled the space vacated by UPS). UPS stayed on Maine Street (occupying space in the Camden Bank building, formerly  Bank of Maine). Big E (burrito shop) replaced Flipside on Maine Street. Bangor Savings Bank is constructing a new facility (Mason St) CEI's has a newly constructed home office on Federal Street. Cook’s Lobster House Restaurant was recently purchased (Harpswell) • Brunswick continues to experience very low vacancy rates 1st  floor Maine Street Don Spann RE/MAX Commercial 6 Growth in Brunswick CEI CENTRAL OFFICE A BettePWay in Don Spann Commercial 7 Cmmercial Real Estate Brunswick Market Activity Brunswick Landing • A significant amount of Brunswick’s Market Activity has been at  Brunswick Landing. • Real Estate Deals at Brunswick Landing  – – – – – – – – – Priority Real Estate Group’s 2013 purchase of lots & Buildings (34,500 SF) leased to Providence  Center Priority Real Estate Group completed 3,670 SF Sunray Veterinary Clinic on Admiral Fitch  Affordable Midcoast Housing now owns the former Navy Housing, the former Night Flight  Building and purchased and leased the Oxford Networks  building (52,500 SF). Rousseau Enterprises opening new senior living facility in the former Navy Hotel (115,000 SF) The ABS building and Building #639 sold to an Portland investor. (32,500 SF) The former Navy fitness center (22,885 SF) sold to Tom Wright  of TBW Inc. and  leased to The  Bath Area Family YMCA (Grand Opening 01/12/2015) Avita Housing/Priority Real Estate Group broke ground for a 60 bed memory care complex  (50,000 SF) & their builders Northbridge just acquired Sunnybrook Village Retirement  Community Priority Real Estate Group purchased Lots #11 & 12 for Professional Office Building(s) and Lot #5  for an Irving Service Station and C‐store. The Brunswick Naval Museum and Memorial Gardens acquired the former base chapel  (12/29/2015) Don Spann RE/MAX Commercial 8 A Better Way in Clomrner'cial Fleal Esteba- Brunswick Landing MRRA SCORECARD Mn 0! Propa1yTransaohons. 10(1115 Economic Impacts of Redevelopment Since NASB Closure in 2011 Entities doing business at Brunswick Lancing and TCP: 80 21 new companies to Maine: Health Care, Kestrel Avia- tion, Oxford Networks Data Center, American Bureau of Shipping, SaviLinx, FlightLevel Aviation, Tempus Jets, RollEase, Seachange Group, Village Green Ventures, Beltane Solar. Jamaport, Blue Dog Daycare, Coastal Landing, InSphero, Wireless Sensors, Crei- sen Aerospace, ST ARC Systems, Gri?n LLC, AEROTECH Surgical, Atayne, GHG Underground. Number of new iobs created: 800 contracts awarded: More than $50 million Private Sector Investment More than $200 million Total New Taxable Property in Brunswick?bpsham: $77,000,000 Total Property Taxes (2014-15): More than $2.5 million Property assets sold by MRRA to private developers for future redevelopment activity: 361 acres, 39 buildings Students enrolled at SMCC and University of Maine (answidt Landing campuses): soc-plus Air Operations at Brunswidt Executive Airport in 2015: 15, 000 Don Spann Commercial awn-n an? Brunswick Landing Square Footage: Who owns what? TarSEt indUStrial 59cm?; by percentage of occupied space Total nearly 1.2 million square feet occupied b1,- business entities at :m1_ Jul? ?9333 1.231!- Brunswitk Lending and Tupsham Commerce Park. 11% Aerospace 3% Bio 103? Composite: Alfi?s? Mlu'. 211% Edul?inll 9?51'5 IT 1m Runawaqu I MRRA I New] I SMCC I Ran null: Eula-prises. I AMH 'I'nwn anIunswicI I Priority Ernup I Wink-Id Torn Wright I Card Inn 2: Firihu-un I Aerospace Bintech I Camposites I IT I lie newahle Enernr I Education I Misc A BetbePWayin Don Spann Commercial 10 Commercial Real Estate Brunswick Landing Acreage: Land-owners Ownership Map own 01' Brunswick of toast Guard . Facu: who?: (lurch A Better Way in Gmr'cia! Fleal Estate QED EDD 3'00 Employment ,1 Job Creation as of November 2015 Prop-nod Jobs. +Ja n Created EDD 500 sun 10D Don Spann Commercial 11 Brunswick Landing Common Development Plan A Better? Way in Commercial Real Estate Don Spann Commercial 12 Brunswick Landing Sunray Veterinary Clinic Proposed Service Station & C‐Store Don Spann RE/MAX Commercial 13 Topsham Market Activity • Since July 1, 2014, Topsham’s Planning Board has been  quite active approving; – 2 Subdivisions, 6 Site Plans, 5 Site Plan Amendments • 2015 OPENINGS, GROUNDBREAKINGS, ETC.  – – – – – – – – – – 2015‐02 Lamey Wellahan (TFM) 2015‐03  Bureau of Motor Vehicles re‐opens on Main Street (Route 201) 2015‐03  Days Jewelers (TFM) 2015‐04  Wicked Joe CDBG‐EDP grant requirements certified as fully satisfied (Former  Commissary) (Topsham Commerce Park) 2015‐05  Smitty's Cinema (Village Candle) 2015‐06  River Landing ‐ full occupancy by 2015‐09 (Elm St.) 2015‐09  Firehouse Tumbling ‐ (Topsham Commerce Park) 2015‐11  Two TFM projects permitted (Catlin & Kelley/Larson) Near: Woody's & Panera Third project pending across from Smitty's parking lot (Kelley/Larson) 17,740 SF Medical Building ‐ 100 Park Drive (TFM area) Don Spann RE/MAX Commercial 14 Growth in Topsham .?Imfm' :?'muni A Better? Way in Cmn?erdal?ealEetate Mid Coast Medical Office Growth in Topsham River Landing A Better? Way in Commercial Real Estate Growth in Topsham  Panera Bread Tire Warehouse Firehouse Subs/Mattress WH Don Spann RE/MAX Commercial 17 Growth in Topsham  Lamey Wellehan Agren Appliance Flagship Store Five County FCU Don Spann RE/MAX Commercial 18 RECAP of 2015 by Community  Bath/Brunswick/Topsham – Industrial Forecast • Availability remains high especially when you include the Cooper Building in  Brunswick at 186,000 SF, Harbor Tech. (BIP) and Industrial Space at Brunswick  Landing • Warehouse lease rates however continue to remain in the $5.00 ‐ $6.00/SF  NNN range – Office Forecast • Availability remains high here as well. Brunswick Station, Brunswick Industrial  Park, Kennebec Landing, TFM Office Space, 121 Orion (PD), and Sweetser each  with at least 9,000 SF available. • Lease rates range from as low as $10.00/SF NNN to $24.50/SF NNN for the  higher end spaces. – Retail Forecast • While the Topsham Fair Mall area is currently flourishing, the stage is set for a  rent rate war between Merrymeeting Plaza, Cook’s Corners and the Plaza’s  beyond the main strip at Topsham Fair Mall due to the availability of a  significant amount of retail space. Cook’s Corner was put up for bid recently  (now under contract to Summit Realty Partners)and the Best Buy Plaza is  currently on the market for sale. • Very low vacancy rates at TFM proper. • Retail lease rates range from $10.00/SF to $35.00/SF NNN.  Don Spann RE/MAX Commercial 19 RECAP of 2015 by Community  Notable Market Dynamics – Medical • The market has yet to realize the impact of the MidCoast/Parkview Merger • Even so, there is a very active market for additional medical office space in the  region – Due in large part to the age demographics as well as Interstate Access  – Retail ‐ Topsham Fair Mall vs. Cook’s Corner • With roughly 750,000 square feet of retail space, one road in and one road out,  and it’s location adjacent to the interstate the Topsham Fair Mall complex has  flourished. • However, with significant vacancies at Merrymeeting Plaza and Cook’s Corner,  expectations are that at a minimum some larger (22,000 SF) retail businesses  will be attracted to the lower rates being floated. • Tim Horton’s closed 38 stores in New England; 11 of which are in Maine Don Spann RE/MAX Commercial 20 2016 Bold Forecast 1) When BIW wins the Coast Guard Contract All sectors especially office will  experience a dramatic favorable impact. (4th QTR 2016) 2) CAP rates will continue to decline, probably somewhere in the 7.5‐8.5 range;  but not to National or even Portland levels. 3) Brunswick Landing will continue to perform at higher levels of absorption than  the surrounding communities 4) New development/construction both residential as well as commercial will  grow dramatically as redevelopment opportunities decline. 5) The area will experience a significant retail rental rate battle between the  malls as the market attempts to reestablish equilibrium.    Don Spann RE/MAX Commercial 21