Price: $1,589,800 Investment Summary CAP Rate: Tenant: Building Size: Land Area: NOI: Lease Expiration: Lease Options: Lease Type: Increases:

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1 NRG Chilling Plant Price: $1,589,800 Investment Summary CAP Rate: Tenant: Building Size: Land Area: NOI: Lease Expiration: Lease Options: Lease Type: Increases: 4.0 This is a rare and unique opportunity to acquire a NRG Energy Inc. NYSE: NRG downtown Phoenix corporate ground lease. The ±5,250 square feet subject property provides chilled water for air con±28,105 square feet ditioning to Chase Field, US Airways Center and 30 $63,592* other buildings in downtown Phoenix. NRG (NYSE: August 2028 NRG) is a 10 Billion dollar market cap company spe3x5 Options cializing in alternative energy. The subject site has Ground Lease 2% annual increases applied every 5 years two chillers and an ice storage plant. The property serves as the beginning of the closed chilled distri*noi as of August 2015, Seller to credit buyer with rent difference at closing. Current NOI $54,855 bution network.

2 NRG Chilling Plant Investment Narrative Built in 2001 this plant provides cold air to Chase Field along with 31 other buildings in downtown Phoenix. The system produces and distributes chilled water around the clock to customer buildings including Chase Field, US Airways Center, Phoenix Convention Center, ASU, Maricopa County, Sheraton Hotels, several biomedical research facilities and high rise condominiums and office complexes. The system has 3 main plants and two back up plants conditioning more than 12 million square feet of building space via four miles of chilled water pipelines. The plant sits on approximately 28,105 square feet of land and has a long term ground lease in place. This is an opportunity to purchase a one of a kind asset with a tremendous amount of money put in to the building on the property.

3 NRG Chilling Plant Diagram of NRG Chilling Distribution Network NRG sends chilled water through underground pipes from their Chase Field plant (subject site) and convention center plant throughout the closed loop. The water returns back to the starting point where it is re-chilled and sent out again. This closed loop system is highly reliable and incrediby efficient. Ice is made and stored at both plants for the chilling process.

4 Aerial System Sketch

5 About NRG Energy Inc. NRG is at the forefront of changing how people think about and use energy. Whether as the largest solar power developer in the country or by giving customers the latest tools to better manage their energy use, NRG is a pioneer in developing smarter energy choices. Our diverse power generating facilities have a capacity of about 53,000 megawatts, capable of supporting almost 42 million homes. Our retail electricity providers Reliant and Energy Plus and thermal energy division serve nearly 3 million residential, business, commercial and industrial customers in 47 states. A Fortune 500 company (#244), NRG supports clean energy resources and technologies critical to our transition to a sustainable, low carbon society. We built the nation's first privately-funded electric vehicle charging infrastructure and continue to create new, clean energy solutions for our customers. In addition to our environmental efforts, we actively contribute to the local communities where NRG employees live and work. Since 2004, our Global Giving program has provided millions of dollars to organizations and charities that have a direct impact on the lives of the people in our communities, including food banks and those that foster self-sufficiency, improve housing and provide supplemental education to people in need. NRG has also organized special responses for victims of extreme catastrophe, such as the Haitian earthquake and the Japanese tsunami in Employee donations were tripled to maximize the contributions. NRG has won numerous awards for industry leadership and many of its nationwide econrg initiatives, which are targeted toward meeting the challenges of climate change, clean air and natural resources protection. - See more at:

6 NRG buys Northwind from APS June Princeton-based power generation company NRG Energy, Inc. (Ticker NRG), through its NRG Thermal LLC subsidiary completed the acquisition of Northwind Phoenix LLC from APS Energy Services Company Inc., a subsidiary of Pinnacle West Capital Corp. (PNW). The acquisition includes the Phoenix District Cooling business unit, the Tucson District Energy business unit, and the operations and maintenance of a Combined Heat and Power plant at Arizona State University in Tempe. The Phoenix district cooling business unit provides chilled water to commercial buildings in the Phoenix central business district including office complexes, municipal buildings, universities and sports facilities.

7 Photo inside Convention Center plant History of downtown Phoenix chilled system In 1999, Northwind Phoenix was selected by the Arizona Diamondbacks and the Maricopa County Stadium District to develop a downtown district cooling system and provide cooling to the home of Major League Baseball s Arizona Diamondbacks Bank One Ballpark, now called Chase Field. Since the district cooling system began operation in 2001, dozens of customers have been added and new service territories, established. NRG Thermal purchased Northwind Phoenix from APS Energy Services in NRG Energy Center Phoenix is a wholly owned subsidiary of NRG Thermal, an NRG Energy Inc. company. NRG Phoenix currently provides service to buildings in downtown Phoenix and two campuses of Arizona State University. Although it started solely as a district cooling provider, NRG Phoenix combined now operates seven district cooling, heating and combined heat and power plants and two backup plants.

8 Photo inside Convention Center plant Chilled System Specs Services provided: District cooling for air conditioning Buildings on system: 34 Total system capacity : 40,000 tons chilled water Area served: 3 square miles downtown Phoenix Building space served: 12 million square feet Distribution network: 4 miles of chilled-water piping Plants: Three plants NRG Energy Center Phoenix District Energy Plant, Convention Center Plant, Chase Field Plant housing a total of 14 chillers and two thermal ice storage tanks; two backup plants US Airways and Arizona Center, interruptible customers that have a total of six chillers

9 Convention Center Plant Photos

10 View to the North View to the West

11 View to the East

12 Demographic Summary NRG Chilling ReportPlant Corporate Ground A-2 Lease Zoned A+ Real Acreage Estate 514 E Buchanan 602 Street NW Buchanan St, Building Type: Land Total Available: 0 SF Class: - % Leased: 0% RBA: - Rent/SF/Yr: - Typical Floor: - Demographics Radius 1 Mile 3 Mile 5 Mile Population 2019 Projection 13,710 97, , Estimate 12,841 91, , Census 12,320 87, ,637 Growth % 6.93% 7.48% Growth % 4.36% 6.41% 2014 Population by Hispanic Origin 7,244 57, , Population By Race 12,841 91, ,076 White 9, % 74, % 269, % Black 1, % 8, % 35, % Am. Indian & Alaskan % 4, % 16, % Asian % 1, % 8, % Hawaiian & Pacific Island % % 1, % Other % 2, % 8, % Households 2019 Projection 4,375 33, , Estimate 4,082 31, , Census 3,894 29, ,607 Growth % 7.23% 7.92% Growth % -2.29% 0.58% Owner Occupied % 11, % 47, % Renter Occupied 3, % 19, % 66, % 2014 Households by HH Income 4,080 31, ,460 Income: <$25,000 2, % 16, % 48, % Income: $25,000 - $50, % 7, % 30, % Income: $50,000 - $75, % 3, % 16, % Income: $75,000 - $100, % 2, % 8, % Income: $100,000 - $125, % 1, % 4, % Income: $125,000 - $150, % % 2, % Income: $150,000 - $200, % % 1, % Income: $200, % % 1, % 2014 Avg Household Income $30,068 $40,123 $44, Med Household Income $14,756 $23,625 $30,700 This copyrighted report contains research licensed to /12/2014 Page 1