2060 Detwiler Road
Towamencin Township
Harleysville, PA

MARKET FUNDAMENTALS

The property is situated in very close proximity to the Lansdale Interchange of the Pennsylvania Turnpike. The immediately surrounding areas have seen dramatic growth in residential, retail and office construction. The office submarket near the Turnpike Interchange has seen substantial growth in the past two years and major highway widening projects are nearing completion which will enhance the desirability of the property´s location.

AREA REDEVELOPMENT

Towamencin Township amended its Comprehensive Plan, incorporating an extensive policy for the development and re-development of Kulpsville Town Center, including more than 250 acres centered at the crossroads of Bustard Road and Sumneytown Pike, less than one mile south of the subject. This plan, which has been further amended with extensive input from land planners, traffic consultants and the local population, includes office, retail, hotel, recreation, and residential uses as well as provisions for revising traffic patterns and special parking alternatives. Township Supervisors implemented this plan by adding the Town Center Overlay District to its zoning code.

Elements of the plan focus on improvements to the local infrastructure, with careful attention to traffic management. Sumneytown Pike has already undergone a significant widening. Several new roads as well as other road widening are nearing completion and will manage Turnpike traffic in the center of Kulpsville. The first of these, Towamencin Avenue, opened for public use in December 2001. The Township has also completed the construction of a 2000-vehicle parking garage/transportation center directly accessible from the Turnpike, which will include a multi-bay regional bus terminal. This transportation facility is located less than two miles from the subject property. The Pennsylvania Turnpike Commission has completed a $12 million improvement at the Interchange, increasing the number of tollbooths from five to ten. The Turnpike Commission will also construct tow additional access ramps as the Town Center infrastructure development progresses.

The property is located in Montgomery County, comprised of 482 square miles (four times the size of Philadelphia County), in Southeastern Pennsylvania, adjacent to Philadelphia County´s northwest perimeter. The population of the County has consistently outgrown the national average since 1940; and in addition is the third most populous county in the Commonwealth, behind Philadelphia and Allegheny (Pittsburgh) Counties. It is also the wealthiest county in the state. As a result, Montgomery County is one of only a handful of counties in the entire United States that have a AAA bond rating. The most recent census data shows that the population of Montgomery County increased 10.6% between 1990 and 2000 with Towamencin Township increasing 24% during this period, primarily as a result of improved accessibility and a greater influx of jobs into the area. The neighboring townships of Lower Salford, Franconia and Hatfield increased 20.1%, 59.5% and 8.8%, respectively. The four townships have a total population of 58,725 people.

The population within a five-mile radius of the site (115,253 according to 2001 projections, increasing to 123,568 by 2005) is a well-educated, financially stable group that has shown significant growth in the last three decades. As the community has changed in nature from rural to suburban with the improvement of regional infrastructure, the population has increased 34% since 1980. Positive growth is projected to continue.

MARKET SUMMARY

The fast growing office and industrial corridor bordering the Pennsylvania Turnpike and Route 202 has been the focus of ongoing employment growth. Several of Montgomery County´s largest employers, including Merck & Company, Inc., Hatfield Quality Meats, Visteon Automotive (the former Ford Electronics), MOPAC (recently purchased by Smithfield Foods), Harleysville Insurance, and the North Penn School District currently employ approximately 19,000 people within a 10 minute drive of the site. Merck Pharmaceuticals, located 2.2 miles southeast of the property on Sumneytown Pike, has grown from 4,000 employees in the mid-1990s to more than 12,000 individuals today, with further growth anticipated on its 5.5+ million square foot campus. In addition to Merck, Teva Pharmaceuticals, one of the largest manufacturers of generic drugs, is located in the immediate area.

The combined factors of a growing well-educated population, above average per capita income, high employment levels, good housing, and excellent school systems as well as a significant employment base within a few miles of the property, indicate that 2060 Detwiler Road is ideally situated within the competitive office market.