KIPP GSTETTENBAUER, CCIMSenior Vice President | Lic #01405420 858.458.3345 | kipp@voitco.com

RYAN KING, CCIMSenior Vice President | Lic #01885401 858.458.3322 | rking@voitco.com

100% ABSOLUTE NNN LEASED MEDICAL INVESTMENT OPPORTUNITY

880 THIRD AVENUE, CHULA VISTA, CA 91911 • ±23,780 SF NNN LEASED MEDICAL BUILDING FOR SALE

INVESTMENT SUMMARY

EXECUTIVE SUMMARY

ADDRESS 880 Third Avenue, Chula Vista, CA 91911

TENANT San Ysidro Health

OFFERING PRICE $22,321,493.30

TOTAL BUILDING SIZE ±23,780 SF

TOTAL LAND SIZE ±87,120 SF (2.0 AC)

CURRENT NET OPERATING INCOME $1,004,467.20

CAP RATE 4.50%

YEAR 10 CAP RATE 5.57%

VRES PCG is pleased to present a rare opportunity to acquire a STNL medical investment located in a dense urban

infill location in San Diego, CA. Located in Chula Vista on the prominent thoroughfare of 3rd Avenue, the property

is home to a brand new lease with San Ysidro Health (SYH). SYH has 19 medical locations in San Diego and is a

prominent medical organization in the community with two new clinics in East County and North County to open in

2020. The Tenant has contributed several million dollars of their own capital to build out the property. SYH is heavily

invested in the property and the building is brand new and fully outfitted for a full medical clinic within South Bay.

The lease is structured at a market lease rate with rare 3% annual increases and a fifteen (15) year initial term.

PRIME RETAIL/MEDICAL LOCATION:

» Exceptional Medical Location in the Heart of Chula Vista, the 2nd largest City in San Diego County.

» Located on 3rd Ave a Major Thoroughfare, Adjacent to the I-5 Freeway, Chula Vista HS, and the San Diego Harbor.

» With a Population of 433,719 this Chula Vista Location is Highly Visible and a High Traffic Location.

INVESTMENT HIGHLIGHTS

Brand New 15-Year Corporate Lease with San Ysidro Health (SYH)

Prominently Located on 3rd Ave in Chula Vista with Excellent Parking & Identity

Rare Absolute NNN Lease + 3% Annual Escalations Throughout All Lease Term (Including Options)

Brand New Medical Build Out with Strong Credit Tenancy

Located in the Rancho Bernardo Suburb of San Diego (Top 90th Percentile of HH Income in the County).

Located in the Rancho Bernardo Suburb of San Diego (Top 90th Percentile of HH Income in the County).

STRONG MEDICAL TENANCY:

» San Ysidro Health has 34 Patient Locations with 1,200 Total Employees.

» The Organization was Established in 1969, over 50 Years Ago.

» Strong Balance Sheet & Corporate Signature.

» Absolute NNN Lease with Minimal Landlord  Responsibilities  Making this Ideal for Out of State Investors or Those Looking for a Passive Income Stream.

15-YEAR ABSOLUTE NNN LEASE & 3% ANNUAL INCREASES:

» Rare Absolute Net Lease with No Landlord Responsibilities.

» 3% Bumps Throughout the Lease & Options!

RENTAL INCREASES ANNUALLYLEASE MONTHS MONTHLY RENT/SF ANNUAL RENT

07/01/2019 - 6/30/2020 $3.33/SF $950,248.80

07/01/2020 - 6/30/2021 $3.42/SF $975,931.20

07/01/2021 - 6/30/2022 $3.52/SF $1,004,467.20

07/01/2022- 6/30/2023 $3.62/SF $1,033,003.20

07/01/2023 - 6/30/2024 $3.72/SF $1,061,539.20

07/01/2024 - 6/30/2025 $3.83/SF $1,092,928.80

07/01/2025 - 6/30/2026 $3.76/SF $1,072,953.60

07/01/2026 - 6/30/2027 $3.87/SF $1,104,343.20

07/01/2027 - 6/30/2028 $3.99/SF $1,138,586.40

07/01/2028 - 6/30/2029 $4.11/SF $1,172,829.60

07/01/2029 - 6/30/2030 $4.23/SF $1,207,072.80

07/01/2030 - 6/30/2031 $4.36/SF $1,244,169.60

07/01/2031 - 6/30/2032 $4.49/SF $1,281,266.40

07/01/2032 - 6/30/2033 $4.63/SF $1,321,216.80

07/01/2033 - 6/30/2034 $4.76/SF $1,358,313.60

LEASE ABSTRACTSUITE A-1 & A-2

COMMENCEMENT DATE July 7, 2019

EXPIRATION DATE 06/30/2034

BUILDING SF 23,780 SF

MONTHLY BASE RENT $3.52 PSF + NNN

YEARLY BASE RENT $1,004,467.20

BASE RENT INCREASES 3% annually

LEASE TERM REMAINING Thirteen (13) years

OPTION TO EXTEND Two (2) Five (5) Year Terms with fixed 3% Annual Increases

OPTION 1LEASE MONTHS MONTHLY RENT/SF ANNUAL RENT

07/01/2034 - 6/30/2035 $4.90/SF $1,398,264.00

07/01/2035 - 6/30/2036 $5.05/SF $1,441,068.00

07/01/2036 - 6/30/2037 $5.20/SF $1,483,872.00

07/01/2037 - 6/30/2038 $5.36/SF $1,529,529.60

07/01/2038 - 6/30/2039 $5.52/SF $1,575,187.20

OPTION 2LEASE MONTHS MONTHLY RENT/SF ANNUAL RENT

07/01/2039 - 6/30/2040 $5.68/SF $1,620,844.80

07/01/2040 - 6/30/2041 $5.85/SF $1,669,356.00

07/01/2041 - 6/30/2042 $6.03/SF $1,720,720.80

07/01/2042 - 6/30/2043 $6.21/SF $1,772,085.60

07/01/2043 - 6/30/2044 $6.40/SF $1,826,304.00

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YEAR 10 CAP RATE: 5.57%

S I T E P L A N

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(619) 296-4595

MEDICAL ARCHITECTURE & CONSULTINGRAYMOND FOX & ASSOCIATES

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S P A C E 23,780 SF

PROJECT OVERVIEW

880 THIRD AVENUECHULA VISTA, CA 91911LOCATION

±23,780 SQUARE FEETBUILDING SIZE

87,120 SF (2 ACRES)LOT SIZE

100% OCCUPIEDOCCUPIED

5.34/1,000 SFPARKING RATIO

573-450-33APN

1970 (FULLY RENOVATED 2019)YEAR BUILT

266’ ON THIRD AVENUESTREET FRONTAGE

San Ysidro Health (formerly San Ysidro Health Center) is a non-profit organization committed to providing high quality, compassionate, accessible and affordable health care services for the entire family.

The mission of San Ysidro Health is to improve the health and well-being of the communities we serve with access for all. Originally established along the border in 1969, the organization was founded by seven women in search of medical services for their children. 50 years later, San Ysidro Health now provides innovative services to nearly 97,000 lives in our care through a vast and integrated network of 34 program sites across San Diego County including: medical and dental clinics, behavioral health centers, HIV centers, WIC nutrition centers, mobile medical units, school-based health centers, chiropractic services, pediatric developmental clinic, teen clinic, senior health center and Program for All Inclusive Care for the Elderly (PACE).

Our organization’s new name and brand identity pay homage to its humble beginnings in the community where it was established 50 years ago. This community was named in honor of San Isidro Labrador, the patron saint of farmers, day laborers, and rural communities—the working poor. San Isidro spent his life as a hired hand and always shared what little he had, even his meals, with people in need. These values of compassion and care for others still ring true in the organization’s mission to improve the health and well-being of all in the communities we serve, especially the most vulnerable across San Diego County. With this rebranding the goal is to make the organization’s innovative healthcare services more identifiable, convenient and accessible for the thousands of families that are served. It is our honor and privilege to emulate these values daily.

In addition to providing medical, dental and behavioral health services San Ysidro Health’s Specialty services include:

» Dental care services for children who are medically compromised, have special needs and/or are behaviorally challenged.– Children’s Dental Clinic

» Adult special needs dental services – King-Chavez Health Center » Urgent care services – San Ysidro Health Chula Vista » San Ysidro Health’s retail clinic – Mi Clinica at Northgate Gonzalez Market » San Ysidro Health is a Federally Qualified Health Center and a Federal Tort Claims

Act Deemed facility. The Federal government acts as the primary insurer. FTCA deeming enables us to invest more to increase health care services and fund quality improvement activities.

This health center receives HHS funding and has Federal Public Health Service (PHS) deemed status with respect to certain health or health-related claims, including medical malpractice claims, for itself and its covered individuals.

TENANT OVERVIEW

SAN YSIDRO HEALTH CARE

WWW.SYHC.ORG

THIRTY-FOUR Total Patient Locations

1,200 Total Employees

97,000 Total Patients

NINETEEN Medical Locations

EIGHT Dental Locations

SIX Behavioral Health Locations

SIX Support Locations

FIVE WIC Locations

THIRD AVENUE

L STREET

AVERAGE $/SF: $820/SF AVERAGE CAP RATE: 5.12%

721 W. 1ST STREETTUSTIN, CA 92780

1525 LONG BEACH BLVDLONG BEACH, CA 90813

769 MEDICAL CENTER COURTCHULA VISTA, CA 91911

3901 S. WESTERN AVENUELOS ANGELES, CA 90062

Tenant DaVita Kidney Care Tenant Fresenius Tenant Sharp Tenant DaVita Kidney Care

Building SF 11,499 SF Building SF 8,600 SF Building SF 45,000 SF Building SF 9,988 SF

Land Area 54,014 SF Land Area 25,265 SF Land Area 435,600 SF Land Area 30,056 SF

Sale Price $8,400,00 Sale Price $7,995,000 Sale Price $27,500,000 Sale Price $7,050,000

Price/SF $730.50 Price/SF $929.65 Price/SF $611.11 Price/SF $705.85

Sale Date 06/22/2020 Sale Date 02/18/2021 Sale Date 06/29/2018 Sale Date 06/11/2019

Cap Rate 5.19% Cap Rate 5.35% Cap Rate 4.75% Cap Rate 5.50%

1341 W. LA PALMA AVENUEANAHEIM, CA 92081

1090 ATLANTIC AVENUELONG BEACH, CA 90813

825 E. BROADWAYSAN GABRIEL, CA 91776

1300 RANCHO DEL ORO ROADOCEANSIDE, CA 92054

Tenant DaVita Kidney Care Tenant DaVita Kidney Care Tenant DaVita Kidney Care Tenant VA

Building SF 14,800 SF Building SF 9,200 SF Building SF 11,450 SF Building SF 90,000 SF

Land Area 36,155 SF Land Area 23,509 SF Land Area 34,412 SF Land Area 23,509 SF

Sale Price $11,450,000 Sale Price $8,421,580 Sale Price $11,200,000 Sale Price $8,421,580

Price/SF $773.65 Price/SF $915.39 Price/SF $978.17 Price/SF $915.39

Sale Date 04/14/2016 Sale Date 04/08/2019 Sale Date 12/10/2018 Sale Date 04/08/2019

Cap Rate 4.91% Cap Rate 5.00% Cap Rate 5.25% Cap Rate 5.00%

U N I T E D S T A T E S O F A M E R I C A

M E X I C O

U N I T E D S T A T E S O F A M E R I C A

M E X I C O

Del Mar

805

15

163

52

8

94

125

5

15

78

805

5

56

76

76

76

8

125

125

54

5

LemonGrove

La Mesa

El Cajon

BostoniaGranite

Hills Crest

HarbisonCanyon

North IslandNaval Air Station

SpringValley

RanchoSan Diego

Casa de Oro/ Mt Helix

WinterGardens

EucalyptusHills

Santee

Miramar

Mira Mesa

TorreyPines Miramar

Marine CorpsAir Station

Jamul

DescansoAlpine

SolanaBeach

RanchoSanta Fe

Encinitas

Poway

Ramona

Vista

San MarcosEscondido

Carlsbad

Oceanside

CampPendleton

Bonsall

Rainbow

Fallbrook

ImperialBeach

ScrippsRanch

KearnyMesa

SorrentoMesa

SorrentoValley

BorregoSprings

MountLaguna

Potrero

Boulevard

Jacumba

Julian

San DiegoCountryEstates

Campo

LaPresa

Eastlake

Bonita

OceanBeach

CentralSan Diego

PtLoma

Chula Vista

San YsidroOtay Mesa

PineValley

San DiegoInternational

Airport

College /City Heights

Highly Visible, High Traffic Location

THIRD AVENUE @ K STREET

19,614 CPD

THIRD AVENUE @ L STREET

21,176 CPD

THIRD AVENUE

HEADQUARTERS & ADMINISTRATION

HEALTH, WELLNESS & SPORTS

TOURISM, TRAVEL & OVERNIGHT LODGING

EDUCATION & INNOVATION CENTERS

ADVANCED MANUFACTURING & CLEAN TECH

INFORMATION, COMMUNICATION & TECHNOLOGY

C H U L A V I S T A K E Y I N D U S T R I E S

The City of Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second-largest City in San Diego County with a population of 433,719. Chula Vista boasts more than 52 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks, and miles of trails. Chula Vista is a leader in conservation and renewable energy, has outstanding public schools, and has been named one of the top safest cities in the country.

Chula Vista has made exceptional advances in preparing the City for business expansion and attraction, collaborating with Baja California officials, and creating an environment for economic growth and prosperity. The City has established economic development initiatives that have created quality infrastructure, a strong consumer base and a well-educated and experienced workforce. Civic leaders are not stopping there; amassing a large volume of commercial/industrial development lands, pursuing a progressive business and employment investment policy, and completing acquisition of the 375-acre University Park and Innovation District site that will create even greater opportunities for your business in the future. The 535-acre Chula Vista Bayfront project will transform the area into a thriving residential and world-class waterfront resort destination. The Plan will establish thousands of new jobs, create new public parks, protect natural coastal resources, provide conference and visitor-serving amenities and build an important asset for the entire San Diego region.

Shopping, dining, and entertainment abound with two major malls and a historic downtown district. With more than 100 of the country’s top specialty stores, Chula Vista Center in the downtown area boasts major retailers, dining, movie theaters, and more than 100 fine specialty shops. And, Third Avenue Village, billed as the cultural center of the city, features historic buildings, unique shops, a weekly farmers market, landmark restaurants, and seasonal outdoor music concerts.

433,719 Population

$60,257 Median Household Income

$421,417 Median Home Value

128,109 Total Households

10,541 Total Businesses

101,460 Total Employees

56% White Collar Jobs

21% Bachelor/Grad Degree

21,176 CPD Third Avenue + L Street

19,614 CPD L Street + Fourth Avenue

26,719 CPD Third Avenue + Moss Street

15,074 CPD Fourth Avenue + Westby Street

More than 60 well-maintained parks and sports fields are available for outdoor sports, recreation activities, and picnics. Tour the Chula Vista Elite Athlete Training Center and see America’s best athletes. Enjoy 32 acres of water wonder with rides, slides, exotic marine animals, and plenty of family fun at Aquatica, SeaWorld’s Waterpark. Or, hit the green on one of four challenging yet playable golf courses. From rock and roll to rap to reggae - world-class entertainers perform at the North Island Credit Union Amphitheatre, San Diego County’s premiere outdoor music venue.

Many well established neighborhoods, contemporary communities, start-up firms, corporations, nationally recognized entertainment venues, the nation’s only warm weather athlete training center, an award winning nature center and a historic downtown all contribute to Chula Vista’s attraction for both families and businesses.

LOAN AMOUNT $12,150,000

MAX LTV 65%

MIN DEBT COVERAGE RATIO 1.35x

INTEREST RATE 3.625%

LOAN TERM 10 Years

AMORTIZATION 30 Years

LENDER FEE 1%

PREPAYMENT PENALTY No Penalty

*Please note these quotes are subject to change upon further analysis of property and borrower.

DEBT SUMMARY

PASHA JOHNSON PACIFIC SOUTHWEST REALTY SERVICES858.522.1433 | pjohnson@psrs.com

FINANCING PROVIDED BY:

4180 La Jolla Village Drive, Suite 100, La Jolla, CA 92037 | 858.453.0505 | 858.408.3976 F | www.voitco.comLicensed as Real Estate Brokers by the DRE. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it. ©2019 Voit Real Estate Services, Inc. All Rights Reserved.

KIPP GSTETTENBAUER, CCIMSenior Vice President | Lic #01405420 858.458.3345 | kipp@voitco.com

RYAN KING, CCIMSenior Vice President | Lic #01885401 858.458.3322 | rking@voitco.com

C H U L A V I S T A

Broadway Plaza

Genesis Square Center

5

805

San DiegoCountry Club

San DiegoCountry Club

Chula VistaHigh SchoolChula VistaHigh School

HilltopHigh School

HilltopHigh School

Scripps MercyHospital

Scripps MercyHospital

SITE