HOTEL DEVELOPMENT SITE BELLEVILLE, NEW JERSEY

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1 LOCATION Location: The Site is located at 11 Franklin Avenue, at the southwest corner of the intersection of Franklin Avenue (CR-645) and Mill Street. City: Belleville, NJ, approximately 13 miles west of Manhattan Access/Visibility: The Site is visible from Franklin Avenue (CR-645) adjacent to the east end of the Site, and it offers convenient access to Newark and surrounding thoroughfares leading to New York City Neighborhood: Residential and medical development surrounds the Site Master Planned Site Hotel Site

2 SITE BELLEVILLE New Jersey Clara Maass Medical Center Meadowlands Sports Complex (5 miles away) Newark Liberty International Airport (6 miles away) Manhattan (13 miles away)

3 PROPERTY DESCRIPTION Offering Listing Price: $5,000,000 for development rights to the leasehold interest in a master-planned site Site Size: 2.78± acres (121,131± SF) Hotel Description: 100 to 150-rooms, with a 50-seat restaurant and lobby,151 parking spaces FAR: No restrictions Floors: The redevelopment plan allows 4 stories with a provision to go to 7 with structured parking or mixed use building Parking: Requires one stall per room Remainder of the site 85,000± SF Medical Office Space 12,500± SF Pharmacy Condition of site at delivery Utility hookups Fully graded Several quick-service restaurants Fire House ZONING MAP Infrastructure to be provided

4 SITE LAYOUT

5 INVESTMENT HIGHLIGHTS PART OF MASTER-PLANNED SITE - The Hotel development site is part of a mixed use master-planned site. The master-planned site is will have 85,000 square feet of medical office space, a 12,000 square foot pharmacy, several quick-service restaurants and a fire house. UNENCUMBERED SITE - The Site is offered free of management and franchise encumbrances. As a result, a clean slate exists for investors to develop and manage the hotel product they deem to be the highest and best use for the site. A plethora of Marriott, Hilton and IHG brands are available. CENTRAL LOCATION WITH EXCELLENT MASS TRANSPORATION - Belleville, New Jersey is situated immediately northwest of the Newark, 13 miles from New York City and six miles from Newark Liberty International Airport. The Site is approximately one half mile north of the New Jersey Transit - Newark Light Rail Line s Silver Lake Station, which is located in Belleville at the intersection of Belmont Avenue and Franklin Street. During rush hour, this stop has less than ten minute headways between trains. The Site is also approximately one half mile north of the Branch Brook Park Station, located in Newark at the intersection of Franklin Avenue and Heller Parkway. Additionally, at the intersection of Franklin Avenue and Mill Street there is a New Jersey Transit bus stop, which is served by three different bus lines which allow for excellent access to the surrounding area CLARA MAASS MEDICAL CENTER- The Site would be the closest property to the Clara Maass Medical Center, a hospital of over 550 physicians, 1,600 total employees and 429 beds. The Hospital is one of the largest employers in Belleville and the driving force behind the proposed medical office space in the master plan. The Site s proximity to the hospital and lack of nationally branded hotels in the submarket will create a significant built in base of demand. HOTEL MARKET HIGHLIGHTS MARKET IMPROVEMENTS WITH NEW SUPPLY- The competitive market has seen significant increases to supply over the period of exceptional growth. Since 2009 available room nights for the market have increased by 42.8% or almost 200,000 room nights. The market has readily absorbed the new supply and continued to grow suggesting that the market is still undersupplied and the development of a nationally branded property would benefit from the excess demand. STRONG, REBOUNDING PERFORMANCE- Nearby comparable hotels have experienced a robust improvement since the economic downturn in A sample competitive set for the Property includes 13 properties totaling 1,952 rooms: Element Harrison Newark, Hampton Inn & Suites Newark Harrison Riverwalk, Residence Inn West Orange, Courtyard Lyndhurst Meadowlands, Fairfield Inn East Rutherford Meadowlands, Homewood Suites East Rutherford Meadowlands, Residence Inn Secaucus Meadowlands, Hilton Garden Inn Secaucus Meadowlands, Courtyard Secaucus Meadowlands, aloft Hotel Secaucus, Courtyard Newark Downtown, Hotel Indigo Newark Downtown and Hampton Inn Newark Airport. These properties have experienced an incredible 25% increase in RevPAR over that period totaling over $30. Additionally, total revenue earned at the properties increased by nearly $36M over the same period, a clear indication of the solid lodging fundamentals in the area. The table below illustrates historical RevPAR performance. RevPAR PERFORMANCE: $ $ $ $ $95.00 $90.00 $85.00 $80.00 Union County Comp Set

6 HISTORICAL COMPETATIVE SET PERFORMANCE Average Daily Rms Supply % Change Room Demand % Change Occupancy % Change ADR % Change RevPAR % Change , , % --- $ $ , % 334, % 74.5% 13.3% $ % $ % , % 346, % 77.2% 3.7% $ % $ % , % 352, % 77.2% -0.1% $ % $ % , % 383, % 77.6% 0.6% $ % $ % , % 414, % 78.5% 1.1% $ % $ % , % 493, % 77.0% -1.9% $ % $ % Average Annual Compund Change 5.2% 7.6% 2.3% 2.9% 5.3% ADR, RevPAR AND OCCUPANCY $ % DEMAND VS. SUPPLY (% CHANGE) 25.0% ADR / RexPAR $ $ $ $ $95.00 $85.00 $ ADR RevPAR Occupancy 75.0% 70.0% 65.0% 60.0% 55.0% Occupancy 20.0% 15.0% 10.0% 5.0% 0.0% Supply (Percent Change) Demand (Percent Change)

7 GENERAL AREA OVERVIEW Belleville is located in Essex County in northeast New Jersey. It is situated immediately northwest of the Newark, 10 miles from New York City and six miles from Newark Liberty International Airport. Belleville s proximity to Newark will allow the Hotel to benefit from the massive resurgence underway. In 2013, the city opened its first new office tower in 20 years: the new 340,000 sq. ft. North American headquarters of electronic giant Panasonic, relocating 800 employees from Secaucus. Prudential Life Insurance, which has been headquartered in Newark since 1929 is expanding its presence in Newark by building a new 20 story, 740,000 sq. ft. office building along with plans for a second tower leading to a consolidation of employees. From Panasonic and Audible to smaller startups, high-tech companies are being drawn to Newark due to its access to New York City, a major technology center, fiber-optic infrastructure and resources like the New Jersey Institute of Technology (NJIT) and the Rutgers Business School in Newark. Biotrial S.A., a French research corporation, decided to build its North American headquarters in Newark s burgeoning Science Park district, an emerging mixed-use technology park in Newark adjacent to the University of Medicine and Dentistry of New Jersey, NJIT and Rutgers. Biotrial s continues the trend of biotech and pharma companies migrating to Newark as a place that is bridging the gap between medical research and treatment. Fifteen of the world s 25 largest pharmaceutical companies have facilities in New Jersey. Newark s Prudential Center Arena, home to the New Jersey Devils, and major entertainment events, while Red Bull Arena, New York Red Bulls of Major League Soccer are nearby in Harrison. The Meadowlands Sports Complex is a sports and entertainment complex located in East Rutherford, approximately five miles from the development site. The complex currently consists of MetLife Stadium, Meadowlands Racetrack, American Dream Meadowlands and the Quest Diagnostics Training Center. MetLife Stadium is the home of the New York Giants and New York Jets of the NFL, and is the only facility home to two NFL franchises. The stadium opened in 2010, following the closing and demolition of their previous home, Giants Stadium. At a construction cost of approximately $1.6 billion, it is the most expensive stadium ever built and the largest stadium in the NFL in terms of permanent seating capacity. Newark Liberty International Airport was the first major airport in the metropolitan area, opening on October 1, The airport was built on 68 acres of marshland by the City of Newark and quickly became the world's busiest commercial airport. After the Port Authority took over the airport in 1948, the agency immediately began making major improvements, which continue today, with Newark Liberty on the forefront of the campaign for NextGen technology and so much more. Located partly in Newark and partly in Elizabeth, Newark is located only 14 miles from Manhattan, serving a critical role for the New York-New Jersey metropolitan area. In 2014, EWR serviced 35.6 million domestic and international passengers. Through October 2015 year-to-date passenger traffic is 4.9 percent higher. Continuing a trend established earlier this year, EWR's traffic growth was led by the domestic sector, which posted a 14.8 percent increase. Airlines expanded domestic capacity by 11.5 percent, with United's 15.7 percent seat capacity expansion and accounting for 92 percent of the domestic passenger gain. In contrast, international traffic was down 1.7 percent following two months of increased activity. International seat capacity fell 5.4 percent, led by cuts from United, Virgin Atlantic and British Airways. Conversely, Aer Lingus will initiate daily service from Dublin to EWR in September 2016.