Ohio River Corridor Real Estate Opportunities Bryce Custer

Ohio River Corridor Real Estate Opportunities Bryce Custer, SIOR, CCIM Petrochemical, Plastics and Energy Services

Welcome and Thank You!

How to extend the range of an electric vehicle!!

Take Away: Networking Connecting the dots One Region (working together) The future is right here, right now!

Headwinds: “Peduto calls for a stop to further petrochemical industry” “Health big price to pay for growth” – Letter to Editor in response to this conference

Brief History:

This area is rich with history and infrastructure. Repurposing closed and obsolete facilities to prepare the area For new economies and JOBS! Wheeling-Pittsburgh Steel – Steubenville Ohio Wheeling-Pittsburgh Steel – Beech Bottom, Benwood, Martins Ferry. Yorksville Ormet Primary Aluminum Corp. – Hannibal, Ohio Horsehead Zinc Smelter (Koppers Petrochemical plant) – Monaca, PA First Energy R. E. Burger coal plant – Dilles Bottom, Ohio Toronto Power Plant – Toronto, OH (cleared and ready for development) Muskingum River Power Plant – Beverly, Ohio (cleared and ready for construction) Closing or scheduled for closing (some may get reprieve): W. H. Sammis Power Plant (on Ohio River) Conesville Power Plant

Real Estate always has been And always will be about: Location!

Todays Reality: EMPLOYEES!

Vital to success: INFRASTRUCTURE!

R. E. Burger Coal Plant - 2009 Dilles Bottom, OH Site following remediation Moundsville, WV

FIC Services is one of the premier industrial demolition and dismantling contractors in the United States. With corporate headquarters in Buffalo, New York and a regional office in Houston, Texas, Wheeling-Pittsburgh Steel – Mingo Junction, Ohio – Frontier Corp to JSW Weirton Steel Mill – Weirton, West Virginia (1, 100+ acres of multi-use land) Once largest employer and biggest tax payer in the state (12, 000+ people working at the Mill AEP Kammer facility – Moundsville, WV AEP Philip Sporn Power Plant – New Haven, West Virginia

Moundsville West Virginia ~40+ acres Barge Rail Intermodal Industrial Manufacturing Across from PTTGC

The Intersection of Real Estate and Oil & Gas… and the Region’s Unique Position

Route 2 / I 68 Authority (West Virginia) Extending I 68 near Morgantown west to WV Route 2 (to Dayton, OH) US 30 Extension Extending US 30 from Canton, OH to Ohio River to Pittsburgh, PA Infrastructure is the lifeblood of this region!

Weirton Steel Mill –Weirton, WV 1, 100+ acres Barge Rail Intermodal Industrial Manufacturing Multi-Family

Weirton Reuse Plan • Industrial • Residential • Green Space Walking Trails Biking Trails Access to Browns Island

Region’s Competitive Advantages • Access to ample supplies of locally produced ethane • Close proximity to over 2/3 of the US polyethylene consumption • Close proximity to high demand North American end use markets • Lower cost of freight • Lower cost of feedstock (32% lower for ethane, 23% lower for polyethylene) • Existing and planned infrastructure investments • Skilled workforce and specialized talent • Well established plastics manufacturing industry • Better insulated from natural disasters

Horsehead Zinc Smelter & Koppers Petrochemical Monaca, PA Releases of zinc can significantly affect local aquatic environments – accumulating in aquatic organisms (but not plants) and poisoning species that then eat them.

Shell Polymers Monaca, PA $6 to $8 billion investment 6, 000 + construction jobs 600+ jobs upon completion Countless supporting business and jobs Redefines area as petrochemical and plastics hub

Economic Engine

Impacts to the Real Estate Market • Warehousing and distribution • Each cracker = demand for 200 to 300 warehouse facilities each • Storage / Transport of PE pellets and other materials • Gas processing facilities • Additional $7. 3 B to $10. 0 B investments in region • NGL fractionators, NGL pipelines, NGL storage facilities • Oilfield equipment manufacturers • Increased production of supplies for upstream, midstream, downstream segments “The price of oil and gas directly affects the manufacturing sector of industrial real estate more than any other sector” – Travis Land, NAI Partners – Houston, TX

Site Pursuits • Warehouse / Distribution Facilities • Ease of access to interstate system, rail and possibly barge • Supportive zoning • Limited infrastructure improvements: topography, roadway, utilities, drainage • Access to workforce • Financial incentives

Population: 0 -5, 000 – 15, 000 – 25, 000 – 45, 000+

Monaca, PA Dilles Bottom, OH Parkersburg, WV

Land for currently For Sale along Ohio River: 1. Huntington, WV 28 ac 2. Belmont, WV 3. Mingo Junction, WV 4. Ironton, OH 5. New Cumberland, WV 6. Washington, WV 374 ac 7. Coraopolis, PA 23. 2 ac 8. Newell, WV 9. Huntington, WV 20. 60 10. Moundsville, WV 402 ac 11. Saint Marys, WV 5. 26 12. Huntington, WV 9 ac 13. Industry, PA 15. Lesage, WV $85, 714/ac 32. 35 ac $30, 000/ac 13 ac $138, 461/ac 40 ac $30, 000/ac 40 ac $17, 571/ac $80, 213/ac Braskem Site $104, 448/ac 7. 8 ac $179, 487/ac $150, 485/ac $29, 601/ac $200, 000/ac $88, 888/ac 59. 46 ac $20, 181/ac 55 ac $60, 000/ac Average price per acre: ~$90, 000/acre Priority of request: Barge (solids and liquids) with Rail Barge (solids and Liquids) Rail

Bryce Custer, SIOR, CCIM Petrochemical & Energy Services P 330 418 9287 bryce@NAIORC. com twitter@Ohio. River. CRE www. Ohio. River. Corridor. com