2030 E. 4th Street Santa Ana, CA office center E 4th St Santa... · 5 The Boeing Company 6,890 6 Wal-Mart Stores Inc. 6,000 7 Memorial Care Health System 5,650 8 Bank of America Corp

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CAPITAL MARKETS INVESTMENT PROPERTIES - SOCAL

2030 E. 4th Street Santa Ana, CA

O F F E R I N G M E M O R A N D U M

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GARY STACHELic. 00773736+1 949 725 [email protected]

ANTHONY DELORENZOLic. 01706686 +1 949 725 [email protected]

DOUG MACKLic. 01804065+1 949 725 8571 [email protected]

LOCAL LEASING

JUSTIN HILLLic. 01424426+1 714 371 [email protected]

INVESTMENT PROPERTIES - SOCAL

LOS ANGELES

MARK SHAFFERLic. 01253743+1 213 613 3758 [email protected]

SAN DIEGO

MATT POURCHOLic. 01705763+1 858 546 [email protected]

FINANCING EXPERT

SHAUN MOOTHARTLic. 01773201+1 949 509 [email protected]

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Table o f Co ntents Investment Overview • Investment Summary

• Investment Highlights

Property Overview • Parcel Map

• Site plan

Area Overview • City Overview

• County Overview

Financials • Executive Summary

• Assumptions

• Cash Flow

• Rent Roll

• Replacement Costs

2015 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

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I nvestm ent OVERVI EW

P R I C E D AT

$5,000,000 ($126 PSF)

SIGNIFICANTLY BELOW REPLACEMENT COST OF

$9,945,000 ($251 PSF)

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LOW RISK STABLE CASH FLOW OFFICE INVESTMENT WITH UPSIDE• Historically high occupancy with many tenants who have been in occupancy for

over 20 years

• Low submarket vacancy and serene office environment with abundant water

features - resulting in strong tenant demand and retention as leases roll

• In place rents are currently 10% below market and 24% below peak rents

• Limited risk of major vacancy since there are 68 units that range from 354 SF to

2,118 SF with the largest unit representing only 5.35% of the total area.

• Due to the strong “entrepreneurial spirit” of Orange County there is strong

demand for small office alternatives for new / growing business which is perfectly

suited for this building

• Class B space in the Park Center Submarket is outperforming the Class A Space.

There is 2.56M square feet of Class B office space in Park Center with one of the

lowest vacancies in Orange County of 7.70%.

• Orange County is one of the mostly highly sought after investment markets in the

Country with 30% projected rental increases over the next 6 years.

Offering Price $5,000,000 ($126 PSF)

Total Building Area +/- 39,553 RSF

Year 3 Cap Rate 7.83%

Year 3 Leveraged Cash Return 14.04%

5 Year Leveraged IRR: 19.46%

Total Land Area +/- 1.83 Acres (79,715 SF)

Occupancy 86.57%

Website www.ipsocal.com/aspenofficecenter

I nvestm ent H i gh li ghts

I nv estm ent Su m mary

• Minimal tenant improvement costs on rollover due to smaller sized tenants

• No one major landlord that controls the market to compete with

PREMIER CENTRAL ORANGE COUNTY LOCATION• Ideally located at the crux of the Santa Ana (5), Costa Mesa (55) and Garden Grove

(22) freeways with easy access to all of Orange County.

• Minutes away from executive housing and a plethora of retail amenities such as Downtown

Santa Ana’s Revival District, Westfield Main Place Mall, Historic Old Town Orange,

Disneyland, Angel’s Stadium, Honda Center, John Wayne Airport and South Coast Plaza.

• Extremely land supply constrained market with no new development of competing

product due to residential zoning overlays that have been put into place by the city

• Exceptional office amenities; located within 2 miles of 4 grocery stores, 22

restaurants, 14 banks, 6 health clubs, 9 hotels and 7 shopping centers.

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I n v estm ent Su m maryPro p erty Overvi e w

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Address: 2030 East 4th Street, Santa Ana, CA 92705

APN: 400-082-02

Gross Building Size: +/- 39,553 RSF

Land Size: +/- 1.83 Acres (79,715 SF)

Year Built: 1974

# of Buildings: 7 Detached Buildings

HVAC: 1st Floor: Split System Heat Pumps 2nd Floor: Packaged Heat Pumps

Stories: Two (2)

Parking: +/- 99 Stalls

Roof: Built up membrane with a center flat roof section for equipment with perimeter sloping mansard style roofs with Spanish style terracotta tiles

Construction Type: Concrete slab-on-grade with wood frame construction

Elevator Served: No

Fire Protection: Fire extinguishers on building exteriors with fire hydrants provided at the public streets (no automatic fire sprinkler system)

Zoning: P - Professional

Pro perty d escri pti o n

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PARC EL MAP

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E 4TH STREET

PARKCEN

TER D

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E 1ST STREET

CABRILLO PA

RK DR

THE OUTLETS @ ORANGE

DISNEYLAND

OC REGISTER

ANAHEIM

CONVENTION CENTER

SANTA ANA

ANGEL STADIUM

ARCTIC HONDA CENTER

CHILDRENS HOSPTIAL ORANGE COUNTY

ST JOSEPHS HOSPTIALWESTFIELD

MAIN PLACE MALL

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Area Overvi ew

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Located in Southern California on the Santa Ana River, Santa Ana is the second most populous city in Orange County with over 335,000 people and is the 57th most populous city in the United States. Santa Ana is part of the Los Angeles–Long Beach–Santa Ana metropolitan area which, according to the U.S. Census Bureau, is the second largest metropolitan area in the United States, with almost 18 million people.

Santa Ana is a residential area bordered by two highways, the I-5 to the northeast and the I-405 to the southwest. The Costa Mesa Freeway (55 Freeway) and Garden Grove Freeway (22 Freeway) travel along its edges. The south end of the city is the South Coast Metro area that is home to South Coast Plaza which is a major shopping center, is the primary destination of this area, and also contains several high-rise office and apartment buildings. John Wayne Airport on the southern side of Santa Ana serves as the main gateway to the Anaheim area with service to most parts of the US. Amtrak, the national passenger rail system, provides service to Santa Ana. It also operates its Pacific Surfliner between San Diego to the south and either Los Angeles or Paso Robles to the north. Santa Ana is also served by Metrolink’s Orange County Line, and Inland Empire-Orange County Line. Public transit bus service is available via the Orange County Transportation Authority (OCTA).

Santa Ana, the seat of California’s Orange County, is the center of an area known as the “Golden Corridor.” Surrounded by the rich farmland of the Santa Ana Valley, the city is part of a megalopolis that includes several incorporated cities; among them are Anaheim, Buena Park, and Fullerton. It is close to both the Los Angeles metropolitan area to the northwest and the San Diego metropolitan area to the southeast along the Pacific Coast. Founded as a farming town, the city is now the financial and governmental center for Orange County. Santa Ana has an area of 16 square miles that benefit from an Enterprise Zone designation which offers a variety of benefits including a hiring credit, sales and tax credit, business expense deduction and a net interest deduction. These benefits are available to all businesses currently in the Enterprise Zone as well as any new businesses relocating or expanding into Santa Ana.

Tourism is a major industry in Santa Ana and Orange County. Within a radius of 10 miles of the city are several of California’s most popular tourist attractions, such as Disneyland, Knott’s Berry Farm, and Southern California beaches. Other area attractions include: the Discovery Science Center learning complex, the Santa Ana Zoo at Prentice Park and Westfield MainPlace Mall, an indoor tri-level, 1.1 million sq. ft. shopping center. Santa Ana is also home to the famous guitar manufacturer, Rickenbacker International Corporation.

SANTA ANA OVERVI EW

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Demographics: Santa Ana California

2015 Estimated Population 335,911 38,822,536

2020 Projected Population 348,771 40,505,730

2010 Census Population 324,618 37,253,956

Growth 2010-2015 3.48% 4.21%

Growth 2015-2020 3.83% 4.34%

2015 Estimated Average Age 32.82 37.55

2015 Estimated Households 76,635 13,097,549

2020 Projected Households 80,149 13,678,939

2010 Census Households 73,265 12,577,498

Growth 2010-2015 4.60% 4.13%

Growth 2015-2020 4.58% 4.44%

2015 Est. Average Housing Value $421,512 $528,895

2015 Estimated Households 76,635 13,097,549

2015 Est. Average Household Income $67,722 $84,669

2020 Prj. Average Household Income $69,318 $88,525

Rank Employer Name # Employees

1 County of Orange 15,390

2 Ingram Micro 4,000

3 Rancho Santiago Community College District 2,300

4 United States Postal Service 2,000

5 Tenet Healthcare 1,500

6 Freedom Communications 900

7 First American 900

8 California Department of Mental Health 800

9 United Building Services 800

Santa Ana Top Employers

Top Retail Attractions• Westfield MainPlace Mall an indoor tri-level, 1.1 million sq. ft.

shopping center

• Santora Building a historic commercial building that now houses art galleries, retail stores, and restaurants

• Bowers Museum includes more than 100,000 objects focusing on areas such as African, South Pacific, Asian, Native American, Pre-Columbian art, and California plein-air painting.

Top Tourist Attractions

• Santa Ana Zoo

• Yost Theatre

• Discovery Science Place

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Downtown Santa Ana

In the last year, Downtown Santa Ana has started to undergo changes along 4th Street including a $5 million renovation bringing a few new restaurants and retailers to the neighborhood. While still maintaining its downtown atmosphere, the 4th Street area of Downtown Santa Ana is expected to continue to promote new growth. According to the Orange County Business Journal, “Downtown received a nod earlier this month from OC Weekly, which dubbed it Orange County’s best downtown for what the area is today: a ‘perfect’ mix of both the old and the new.”

The Historical Downtown can be thought of as being characterized by a northern institutional section and a southern retail section. The institutional area contains the new and old Santa Ana City Hall buildings as well as the Old Orange County Courthouse and the Ronald Reagan Federal Building and United States Courthouse. The retail section has two distinct business districts namely the newly formed Artist’s Village and the older Fiesta Marketplace.

Artist’s Village

Home to various artists and institutions namely the Historical Santora building, the Cal State Fullerton Grand Central Art Center and the Orange County Center for Contemporary Art. Santa Ana Artists Village expands to 8 blocks of creative effort that comes alive monthly during the Art Walk. Neighborhoods USA named Santa Ana’s Floral Park as the top neighborhood in 2014.

Westfield MainPlace Mall

Westfield MainPlace, formerly known as MainPlace Santa Ana and sometimes colloquially as MainPlace Mall, is an indoor tri-level, 1,100,000 sq. ft. shopping center located in the heart of Orange County on the far north side of Santa Ana, California. The regional mall comprises 190 stores, 15 fast food shops, and five restaurants with Nordstrom, Macy’s, Macy’s Men Store and JCPenney as current anchors.

East End Promenade

Formerly known as the Fiesta Marketplace, a haven for upcoming restaurants, retailers, and entertainment venues, including Bespoke Cut & Sew, The Frida Cinema (a new independent film theatre), Native Son Alehouse, La Reyna de Michoacán, Yojie Japanese Fondue and the popular nightclub, Yost Theatre. July 2014 marked the first annual “East End Block Party” where locals and travelers come together to celebrate the newly renovated “East End” urban center.

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Rank Employer # of Employees

1 Walt Disney Co. 27,000

2 University of California, Irvine 22,385

3 St. Joseph Health 12,227

4 Kaiser Permanente 7,000

5 The Boeing Company 6,890

6 Wal-Mart Stores Inc. 6,000

7 Memorial Care Health System 5,650

8 Bank of America Corp. 5,500

9 Target Corp. 5,400

10 California State University, Fullerton 5,147

Situated between Los Angeles and San Diego, in the heart of sunny Southern California is Orange County. Once an agricultural empire for citrus growing, Orange County now boasts a thriving economy, a sophisticated arts scene, and a community of high-powered movers and shakers. Occupying the sloping plains of the Santa Ana Range’s foothills to the Pacific Ocean, the area is blessed with brilliant weather, a low unemployment rate, and a rapidly growing job market. Thriving on immigrant dynamism coupled with a long-running technological explosion, this conglomeration of 34 cities has become an international “world trade center.” A third of the firms in Orange County deal internationally, and nearly half of the population is ethnically diverse. If Orange County were a country it would rank in the top 30 economies worldwide.

Orange County Demographic Highlights• Education

• High school graduates: 81%

• College graduates: 36%

• Median household income: $75,422

• Median home value: $519,600

• Median rent: $1,611 The crime rate in Orange County is far below the national average, with few violent crimes occurring each year. Although a little over three million people live in Orange County, the residents are spread out among more than 30 cities. Part of the low crime rate results from poverty rates that are significantly lower than the national average. There are fewer children living in poverty in Orange County than most other California communities.

This 798-square-mile landscape hosts dozens of urban pods and post-industrial communities that include restaurants, businesses, galleries and anything and everything a person might need. People average less than a half-hour drive to work, and dozens of quality hospitals, universities and entertainment centers are equally close by. Irvine is the largest of these pods and is home to the University of California Irvine campus, a multicultural populace, and its own John Wayne Airport, while Fullerton boasts Cal State Fullerton. Surfers make Huntington Beach their home, and Newport Beach attracts affluent individuals seeking elegant dining and the arts.

O r an ge Cou nty OVE RVI EW2015 Estimated Population 3,160,437

2020 Projected Population 3,314,198

2010 Census Population 3,010,232


Growth 2010-2015 4.99%

Growth 2015-2020 4.87%

2015 Estimated Median Age 37.20

2015 Estimated Average Age 38.09

2015 Estimated Households 1,042,220

2020 Projected Households 1,095,344

2010 Census Households 992,781


Growth 2010-2015 4.98%

Growth 2015-2020 5.10%

Orange County Population

Orange County Top Employers

EducationHigh school graduates

81%College graduates

36%

Household Income

$75,422Home value

$519,600

Median Rent

$1,611

Orange County Demographic Highlights

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Rank Employer # of Employees

1 Walt Disney Co. 27,000

2 University of California, Irvine 22,385

3 St. Joseph Health 12,227

4 Kaiser Permanente 7,000

5 The Boeing Company 6,890

6 Wal-Mart Stores Inc. 6,000

7 Memorial Care Health System 5,650

8 Bank of America Corp. 5,500

9 Target Corp. 5,400

10 California State University, Fullerton 5,147

2015 Estimated Population 3,160,437

2020 Projected Population 3,314,198



Growth 2010-2015 4.99%

Growth 2015-2020 4.87%

2015 Estimated Median Age 37.20

2015 Estimated Average Age 38.09

2015 Estimated Households 1,042,220

2020 Projected Households 1,095,344



Growth 2010-2015 4.98%

Growth 2015-2020 5.10%

Orange County Population

Orange County Top Employers

PACIFIC OCEANJOHN WAYNE AIRPORT

IRVINE COSTA MESA

OCPAC

FASHION ISLAND

NEWPORT BEACH

THE DISTRICT

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SANTA ANA

SANTA ANA AUTO ZONE

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TransportationOrange County benefits from its up-to-date communications network as well as its modern transportation. Strong infrastructure contributes to Orange County’s successful and positive business climate. Orange County is served by a large freeway network with more than 15 major interstates and state routes, which provide access to the four neighboring counties of Los Angeles, San Diego, Riverside and San Bernardino. Centrally located in Southern California, Orange County has easy access to the ports of Los Angeles and Long Beach, the two largest container ports in the world.

The addition of new toll roads in South County and improvements to the existing freeway system in Central County will continue to fuel the growth well into the 21st century. Orange County is home to one major commercial airport, John Wayne, originally known as the Orange County Airport. John Wayne Airport handles over 9 million passengers annually through 14 different airlines.

EconomyConsistently ranked in Forbes Magazine’s top 50 economically thriving metro areas, Orange County enjoys low business costs, a highly qualified workforce and one of the lowest unemployment rates in the country. Because of the more affluent

population and an economic mix that is slanted toward high-paid biotechnology and professional service jobs, incomes also rise faster than in neighboring counties.

Everything from the computer software sector to the communications sector has flourished in recent years. One-fifth of the workforce is now made up of high-paying technical jobs and professional jobs. Major employers in Orange County include Hughes Aircraft, Weber Aircraft, Hewlett Packard and IBM. Orange County hosts 17 colleges and universities and one of the best educated work forces in the world, allowing the region to attract and retain some of the world’s leading companies. Other rapidly growing sectors are construction, professional and business services, and leisure and hospitality. Tourism accounts for nearly 10% of the county’s workforce, with places such as Disneyland and the giant, postmodern, fantasy shopping Fashion Island Mall attracting countless visitors. The finance, insurance and real estate sectors are also experiencing growth, despite a corresponding decline in the rest of California. Small businesses flourish in the area’s entrepreneurial climate. With job rates projected to grow significantly each year, Orange County residents have a lot to look forward to. Orange County is roughly 1% of the nation’s population, but it has 3% of Fortune 500 companies. Places Rated Almanac puts Orange County in the top ten cites in the nation for job growth and retention.

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EducationThe education opportunities in Orange County are excellent and varied; the area is home to two major universities. The University of California, Irvine (UCI) is the fastest growing campus in the University of California (UC) system. This prestigious four-year college is a public research university located in Irvine, California and is one of the 10 general campuses in the UC system. UCI’s Orange County campus is the fifth-largest in the UC system, with over 29,000 students, 1,100 faculty members and 9,000 staff. Times Higher Education in 2013 ranked UC Irvine 1st among all US universities and 5th among the top 100 global universities under 50 years old. The university also administers the UC Irvine Medical Center, a large teaching hospital, the UC Irvine Health Sciences system in the City of Orange, the University of California, Irvine, Arboretum, and a portion of the University of California Natural Reserve System. UCI, has grown in fame in recent years; in the mid-1990s two faculty members won the Nobel Prize. It was the first time in history that a public university won two Nobel Prizes in the same year.

There are a host of other smaller, private or religiously affiliated colleges in Orange County. Chapman University is the largest private university in Orange County and enrolls more than 7,155 students. Cypress College, Golden West College, Saddleback College and California State University Fullerton are also major educational centers in the county. CSUF is the largest California State University campus by enrollment and the second largest campus of any university in California trailing only UCLA. Cal-State Fullerton offers its 36,000+ students, undergraduate and graduate programs within eight colleges. Enrollment at Cal-State Fullerton has grown on average 6% per year over the past 10 years. The school receives consistent accolades, including the 2014 Princeton Review’s description of the Mihaylo College of Business and Economics as one of the “Best Business Schools in the nation”.

TourismMore than 43 million tourists visit Orange County annually, spending approximately $8.7 billion and supporting nearly 160,000 local tourism industry jobs. With over a quarter of Orange County’s landscape designated as open space, including the 124,000-acre Cleveland National Forest, the area is a haven for bikers, hikers and other outdoor enthusiasts.

Orange County’s 42-mile coastline offers all types of seafaring activities including some world class boating, snorkeling, scuba diving and fishing. There are several marinas lining the coast that offer boat cruises, fishing trips and charter services. Visitors can explore areas such as the “Big Corona”, where mild waves beckon young swimmers, or the numerous, rugged coves north of Laguna Beach, where snorkelers and scuba divers can view a plethora of underwater life.

Orange County is also renowned for its numerous popular shopping destinations including: the upscale outdoor Fashion Island Mall in Newport Beach, the Brea Mall, The Outlets at Orange, Irvine Spectrum Center, Downtown Disney, Bella Terra, and the luxury shopping center, South Coast Plaza in Costa Mesa. South Coast Plaza is visited by approximately 24 million visitors annually and generates annual sales of $1.5 billion, making it the highest grossing center in the United States. Besides providing an extravagant shopping experience with over 250 stores, South Coast Plaza offers many services to guests such as foreign language assistance, shuttle services and money exchange.

Top Retail Attractions• South Coast Plaza—The largest mall on the West Coast and a chic, luxury shopping experience

• Fashion Island—An upscale, open-air lifestyle center in Newport Beach

• Bella Terra—Outdoor mall in Huntington Beach with eclectic shops and restaurants

• Irvine Spectrum—A shopping, dining and entertainment destination in Irvine

• The Market Place—Premier shopping mall in the dynamic city of Tustin

• The District at Tustin Legacy—1 million-square-foot lifestyle center with movie theater

Top Tourist Attractions• Newport Beach & Harbor

• Golf courses

• Orange County’s Performing Arts Center (OCPAC)

• Honda Center

• Angel’s Stadium

• Laguna Art Museum – Laguna Beach

• Disneyland Park & Disney’s California Adventure Park – Anaheim

• Knott’s Berry Farm – Buena Park

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Local Map

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Reg i o nal Map

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fi na n cials

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6/24/2015 5:09 PM (WJC)1CBRE Financial Consulting Group

Aspen Office Center5-Year Hold Period

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

Property Type Office Size of Improvements 39,553 SFProperty Address 2030 E 4th Street Currently Vacant as of 7/1/15 5,313 SF

Santa Ana, CA Current Occupancy as of 7/1/15 86.57%

ACQUISITION AND RESIDUAL SUMMARY LEVERAGE SUMMARY

MARKET LOANPurchase Price as of September 1, 2015 $126 PSF $5,000,000 Initial Loan Funding (as of Sep-15) $3,250,000

'Costs to Stabilize' Loan-To-Total Investment/Value 64.41%Tenant Improvements 32,464 Loan-To-Price 65.00%Leasing Commissions 13,227 Funding Date Sep-15

Total Costs to Stabilize $45,691 Maturity Date Aug-20Total Investment $128 PSF $5,045,691 [2] Loan Term 5.0 Years

Amortization Period 30 YearsInitial Interest Only Period (If Any) 36 MonthsInterest Rate 4.25%

Year 1 Year 2 Year 3 Origination Fee on Initial Loan Funding 1.00%Physical Occupancy 85.76% 93.24% 98.04% Exit Fee on Balance at Maturity 0.00%Capitalization Rate 5.13% 7.02% 7.83% Loan Constant 5.90%Cash Return 2.94% 5.24% 7.21% Debt Service Coverage Ratio (NOI) 1.35xLeveraged Cash Return 0.57% 6.90% 12.34% Debt Service Coverage Ratio (CF) 0.77x

Purchase Price as of September 1, 2015 $5,000,000Net Residual Value as of August 31, 2020 $6,583,000 Total Initial Loan Principal (3,250,000)Net Residual Per Square Foot $166 Total Initial Loan Fees 32,500Residual Capitalization Rate 7.00% Holdbacks and Escrows 0Residual Cost of Sale 4.00% Initial Equity $1,782,500

ALL CASH IRR 10.77% LEVERAGED IRR 19.46%

EQUITY REQUIRED $5,045,691 EQUITY REQUIRED $1,828,191PROFIT $3,047,975 PROFIT $2,329,342ALL CASH EQUITY MULTIPLE 1.60x LEVERAGED EQUITY MULTIPLE 2.27x

[1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain.[2]

[3] Costs to stabilize assume and include tenant improvements and leasing commissions for the vacant suites.

All Capitalization Rates, Equity Multiples and Cash-on-Cash returns are based on Total Investment or initial equity including costs to stabilize. Internal rate of return and in-place returns are based on Purchase Price or initial equity.

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. THIS IS AN

OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation.

execu tive su m mary

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This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group

6/24/2015 5:09 PM (WJC)2


SUMMARY OF FINANCIAL ASSUMPTIONS

GLOBAL VACANT SPACE LEASING SECOND GENERATION LEASING

1st Floor 2nd FloorAnalysis Period Occupancy and Absorption Retention Ratio 70% 70%

Commencement Date September 1, 2015 Projected Vacant at 9/1/15 5,313 SFEnd Date August 31, 2020 Currently Vacant as of 7/1/15 5,313 SF Financial TermsTerm 5 Years Percentage Vacant at 7/1/15 13.43% 2015 Monthly Market Rent $1.65 PSF $1.55 PSF

Absorption Period 18 Month(s) Rent Adjustment 3.00% Annually 3.00% AnnuallyArea Measures Absorption Period Start Date September 1, 2015 Lease Term 3 Years 3 Years

Building Square Feet (NRSF) 39,553 SF First Absorption Occurs On November 1, 2015 Expense Reimbursement Type Fixed CAM Fixed CAM [4]Last Absorption Occurs On March 1, 2017

Growth Rates Tenanting CostsConsumer Price Index (CPI) 3.00% Financial Terms 1st Floor 2nd Floor Rent AbatementsOther Income Growth Rate 3.00% 2015 Monthly Market Rent $1.65 PSF $1.55 PSF New 0 Month(s) 0 Month(s)Operating Expenses 3.00% Rent Adjustment 3.00% Annually 3.00% Annually Renewal 0 Month(s) 0 Month(s)

Year One Actual $9.06 PSF/Yr Lease Term 3 Years 3 Years Weighted Average 0.00 Month(s) 0.00 Month(s)Year One Pro-Forma at 100% Occupancy $9.12 PSF/Yr Expense Reimbursement Type Fixed CAM Fixed CAM [4]

Real Estate Taxes 2.00% Rent Abatements 0 Month(s) 0 Month(s) Tenant Improvements ($/NRSF)Market Rent Growth [1] W/A Market Rent In-Place Rent [2] Peak Rent Tenant Improvements ($/NRSF) $5.00 - $7.50 PSF $5.00 - $7.50 PSF New $5.00 PSF $5.00 PSF

CY 2016 - 7.40% FY 2016 - - $1.66 PSF - $1.47 PSF - $1.80 PSF Commissions 4.00% 4.00% Renewal $2.50 PSF $2.50 PSFCY 2017 - 6.40% FY 2017 - - $1.78 PSF - $1.63 PSF - $1.80 PSF Weighted Average $3.25 PSF $3.25 PSFCY 2018 - 5.40% FY 2018 - - $1.88 PSF - $1.74 PSF - $1.80 PSF EXPENSESCY 2019 - 4.10% FY 2019 - - $1.96 PSF - $1.83 PSF - $1.80 PSF CommissionsCY 2020 - 3.00% FY 2020 - - $2.03 PSF - $1.95 PSF - $1.80 PSF Operating Expense Source 2015 Reforecast [5] New 4.00% 4.00%CY 2021 - 3.00% FY 2021 - - $2.09 PSF - $2.05 PSF - $1.80 PSF Renewal 2.00% 2.00%

Management Fee (% of EGR) 3.00% Weighted Average 2.60% 2.60%General Vacancy Loss 8.00% [3]

Real Estate Taxes Reassessed Yes [6] DowntimeCapital Reserves (CY 2015 Value) $0.15 PSF Millage Rate 1.073050% New 6 Month(s) 6 Month(s)

Special Assessments $4,941 Weighted Average 2 Month(s) 2 Month(s)

Notes:Market rent growth is calculated on a calendar-year basis. All in-place and market rental rates above are stated on a fiscal-year basis.[1] Market rent growth through CY 2019 is based on the CBRE Econometric Advisors Office Outlook for the Park Center submarket as of Q1 2015.[2] In-place rent equal to Scheduled Base Rent including Fixed/CPI Increases divided by the weighted-average physical occupancy during each fiscal year.[3] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime.

All tenants are subject to this loss factor.[4] Fixed reimbursements are $0.00 /sf/mo Lease Year 1, $0.03 /sf/mo Lease Year 2 and $0.08 /sf/mo Lease Year 3.[5] Expenses are based on actuals through April and Budgeted thereafter. Analysis excludes owner-specific expenses[6] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.073050% plus special assessments of $4,941.

FI na n cial Assu m pti o n su m mary

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6/24/2015 5:09 PM (WJC)3


CASH FLOW PROJECTIONS

Fiscal Year Ending - August 31 2016 2017 2018 2019 2020 2021

Physical Occupancy 85.76% 93.24% 98.04% 92.64% 92.80% 98.04%

Overall Economic Occupancy [1] 83.67% 90.76% 91.24% 90.65% 90.40% 91.55%

Weighted Average Market Rent $1.66 $1.78 $1.88 $1.96 $2.03 $2.09

Weighted Average In Place Rent [2] $1.47 $1.63 $1.74 $1.83 $1.95 $2.05

Total Operating Expenses PSF Per Year $9.06 $9.38 $9.67 $9.96 $10.25 $10.90

[3]FY 2016

REVENUES $/SF/YRScheduled Base Rent

Gross Potential Rent $18.18 $719,259 $789,596 $834,915 $885,312 $944,246 $979,614Absorption & Turnover Vacancy (2.83) (112,030) (56,560) (17,258) (70,012) (69,602) (19,390)Base Rent Abatements (0.18) (7,040) (9,780) (6,429) (12,053) (15,044) (4,475)

Total Scheduled Base Rent 15.17 600,189 723,256 811,228 803,247 859,600 955,749

Expense Reimbursements 0.43 16,827 8,342 16,364 21,912 10,509 15,076

TOTAL GROSS REVENUE 15.60 617,016 731,598 827,592 825,159 870,109 970,825General Vacancy Loss 0.00 0 (6,493) (50,330) (1,602) (5,575) (59,827)

EFFECTIVE GROSS REVENUE 15.60 617,016 725,105 777,262 823,557 864,534 910,998

OPERATING EXPENSESSecurity (0.13) (4,994) (5,144) (5,298) (5,457) (5,621) (5,789)Cleaning (1.24) (49,054) (50,526) (52,041) (53,604) (55,210) (56,867)HVAC (0.47) (18,491) (19,045) (19,616) (20,205) (20,811) (21,435)Repairs & Maintenance (0.79) (31,096) (32,028) (32,991) (33,977) (34,998) (36,050)Utilities (3.30) (130,475) (134,390) (138,422) (142,574) (146,852) (151,257)Parking Lot (0.17) (6,842) (7,047) (7,259) (7,477) (7,701) (7,932)Landscaping (0.55) (21,933) (22,591) (23,269) (23,967) (24,686) (25,426)Management Fee (0.47) (18,510) (21,753) (23,318) (24,707) (25,936) (27,330)Insurance (0.44) (17,582) (18,109) (18,652) (19,212) (19,788) (20,382)Property Taxes (1.50) (59,309) (60,396) (61,505) (62,637) (63,791) (78,518)

TOTAL OPERATING EXPENSES (9.06) (358,286) (371,029) (382,371) (393,817) (405,394) (430,986)

NET OPERATING INCOME 6.54 258,730 354,076 394,891 429,740 459,140 480,012

CAPITAL COSTSTenant Improvements (1.81) (71,591) (55,781) (16,510) (56,728) (65,887) (15,219)Leasing Commissions (0.82) (32,578) (27,835) (8,299) (29,784) (34,502) (7,876)Capital Reserves (0.15) (6,052) (6,233) (6,420) (6,613) (6,811) (7,015)

TOTAL CAPITAL COSTS (2.79) (110,221) (89,849) (31,229) (93,125) (107,200) (30,110)

OPERATING CASH FLOW $3.75 $148,509 $264,227 $363,662 $336,615 $351,940 $449,902

ACQUISITION & RESIDUAL SALEPurchase Price ($5,000,000) 0 0 0 0 0 All CashNet Residual Value [4] 0 0 0 0 0 6,583,022 IRR

CASH FLOW BEFORE DEBT ($5,000,000) $148,509 $264,227 $363,662 $336,615 $6,934,962 10.77%MARKET LOAN [5]

Loan Funding / Payoff 3,250,000 0 0 0 0 (3,138,044)Loan Fees (32,500) 0 0 0 0 0 LeveragedAnnual Debt Service 0 (138,125) (138,125) (138,125) (191,857) (191,857) IRR

CASH FLOW AFTER DEBT ($1,782,500) $10,384 $126,102 $225,537 $144,758 $3,605,061 19.46%0

UNLEVERAGED Basis (Purchase Price + All Capital Costs) $5,110,221 $5,200,070 $5,231,299 $5,324,424 $5,431,624

NOI Yield (NOI/UNLEVERAGED Basis) 5.06% 6.81% 7.55% 8.07% 8.45%

NOI Return (NOI/Total Investment) 5.13% 7.02% 7.83% 8.52% 9.10%

UNLEVERAGED Cash Return (Operating CF/Total Investment) 2.94% 5.24% 7.21% 6.67% 6.98%

LEVERAGED Basis (Initial/Future Equity + Principal Paydown) $1,892,721 $1,982,570 $2,013,799 $2,161,715 $2,326,080

LEVERAGED Cash-on-Cash (LEVERAGED NOI/LEVERAGED Basis) 6.37% 10.89% 12.75% 13.54% 13.95%

LEVERAGED Cash Return (CFAD/Initial Equity + Costs to Stabilize) 0.57% 6.90% 12.34% 7.92% 8.76%

Debt Service Coverage Ratio (NOI) 1.87x 2.56x 2.86x 2.24x 2.39xDebt Service Coverage Ratio (CF) 1.08x 1.91x 2.63x 1.75x 1.83x

Rolling - All Cash IRR 0.09% 8.08% 10.41% 10.90% 10.77%Rolling - Leveraged IRR N/M 13.68% 19.40% 20.17% 19.46%

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical [3] Based on 39,553 square feet.[4] Net Residual Value is calculated by dividing Year 6 NOI by the Residual Cap Rate of 7.00% and applying a 4.00% Cost of Sale.[5] Market Debt based on 65% Loan-to-Value, 4.25% Interest Rate, 30-Year Amortization, and 1.00% Loan Fee.[6] All Capitalization Rates, Equity Multiples and Cash-on-Cash returns are based on Total Investment or initial equity including costs to stabilize. Internal rate of return and in-place returns are based on Purchase Pric

cas h f low p roj ect i o n

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Pro Forma 100% at Market RentsIn-Place NOI [1] Year 3 With In-Place NOI Pro Forma NOI

Sep-2015, Annualized $ PSF Pro Forma $ PSF Sep-15 to Aug-16 $ PSF Sep-15 to Aug-16 $ PSF

Size of Improvements 39,553 SF 39,553 SF 39,553 SF 39,553 SF

REVENUESScheduled Base Rent

Gross Potential Rent $687,756 $17.39 $834,915 $21.11 $691,593 $17.49 $752,319 $19.02Absorption & Turnover Vacancy (99,660) (2.52) (17,258) (0.44) 0 0.00 0 0.00Base Rent Abatements 0 0.00 (6,429) (0.16) 0 0.00 0 0.00

Total Scheduled Base Rent 588,096 14.87 811,228 20.51 691,593 17.49 752,319 19.02

Expense Reimbursements 23,124 0.58 16,364 0.41 23,813 0.60 0 0.00

TOTAL GROSS REVENUE 611,220 [1] 15.45 827,592 20.92 715,406 [2] 18.09 752,319 [3] 19.02General Vacancy Loss 0 0.00 (50,330) (1.27) (57,232) (1.45) (60,186) (1.52)

EFFECTIVE GROSS REVENUE 611,220 15.45 777,262 19.65 658,174 16.64 692,133 17.50

OPERATING EXPENSESSecurity (4,896) (0.12) (5,298) (0.13) (4,994) (0.13) (4,994) (0.13)Cleaning (48,096) (1.22) (52,041) (1.32) (49,054) (1.24) (49,054) (1.24)HVAC (18,132) (0.46) (19,616) (0.50) (18,491) (0.47) (18,491) (0.47)Repairs & Maintenance (30,480) (0.77) (32,991) (0.83) (31,096) (0.79) (31,096) (0.79)Utilities (127,920) (3.23) (138,422) (3.50) (130,475) (3.30) (130,475) (3.30)Parking Lot (6,708) (0.17) (7,259) (0.18) (6,842) (0.17) (6,842) (0.17)Landscaping (21,504) (0.54) (23,269) (0.59) (21,933) (0.55) (21,933) (0.55)Management Fee (18,336) (0.46) (23,318) (0.59) (19,745) (0.50) (20,764) (0.52)Insurance (17,232) (0.44) (18,652) (0.47) (17,582) (0.44) (17,582) (0.44)Property Taxes (58,596) (1.48) (61,505) (1.56) (59,309) (1.50) (59,309) (1.50)

TOTAL OPERATING EXPENSES (351,900) [4] (8.90) (382,371) [4] (9.67) (359,521) [4] (9.09) (360,540) [4] (9.12)

NET OPERATING INCOME $259,320 $6.56 $394,891 $9.98 $298,653 $7.55 $331,593 $8.38

Annual Debt Service ($138,125) ($138,125) ($138,125) ($138,125)

STABILIZED CASH FLOW AFTER DEBT [5] $121,195 $256,766 $160,528 $193,468

Capitalization Rate 5.14% 7.83% 5.92% 6.57%

TOTAL INVESTMENT $5,045,691 $127.57 $5,045,691 $127.57 $5,045,691 $127.57 $5,045,691 $127.57

TOTAL COSTS TO STABILIZE $45,691 $45,691 $45,691 $45,691

PURCHASE PRICE AS OF SEPTEMBER 1, 2015 $5,000,000 $126.41 $5,000,000 $126.41 $5,000,000 $126.41 $5,000,000 $126.41

Capitalization Rate on Purchase Price 5.19% 7.90% 5.97% 6.63%

RESULTING EQUITY $1,782,500 $1,828,191 $1,828,191 $1,828,191

Stabilized Leveraged Cash-on-Cash Return [5] 6.80% 14.04% 8.78% 10.58%

In-Place Occupancy (At Start of Analysis With No Vacant Lease-Up) 86.57% - - -

Pro-Forma Occupancy - 98.04% 100.00% 100.00%

Notes:

[2] Pro Forma with In-Place Net Operating Income assumes all in-place tenants are paying contractual rent and recoveries and all vacant suites are paying market rents and recoveries.Pro Forma with In-Place Net Operating Income does not include downtime due to near-term expirations but does include future rent increases for existing tenants.[3] 100% at Market Rents Pro Forma Net Operating Income assumes all in-place tenants and vacant suites are paying market rents and recoveries.[4] Property Taxes are reassessed based on the purchase price.[5] Stabilized Leveraged Cash-on-Cash returns are based on respective NOI before any below the line costs (capital expenditures, leasing commissions, tenant improvements, etc.) less debt service divided by Equity including, if applicable, any Costs to Stabilize.

In-Place NOI does not include vacant lease-up revenue, downtime due to near-term expirations, or future rent increases for existing tenants.[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements as of September 2015, Annualized (with no General Vacancy Loss).

IN-PLACE NOI SUMMARY vs. PRO-FORMA NOI SUMMARY

I n - p lace N o i vs. pro- fo rma n o i Su m mary

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Rent Roll as of 9/1/2015

Market

Square % of Lease Term Rental Rates Recovery Rent Abatements Tenant Leasing Assumption /

Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Month # % Abated Improvements Commissions Market Rent Comments/Options

C-131 Cordell Ball & Cory Brosch 708 1.79% May-2015 Apr-2016 Current $1,062 $1.50 $12,744 $18.00 - - - - Market $1.65 MG (1st Floor)

A-219 Sammy Urias 354 0.90% May-2015 May-2016 Current $548 $1.55 $6,576 $18.58 - - - - Market $1.55 MG (2nd Floor)

E-203 Joshua Elgan 354 0.90% Sep-2011 May-2016 Current $548 $1.55 $6,576 $18.58 - - - - Market $1.55 MG (2nd Floor)

D-208 Harmon-Global Alliance 354 0.90% Jun-2015 May-2016 Current $548 $1.55 $6,576 $18.58 - - - - Market $1.55 MG (2nd Floor)

G-149 Dr. Rosa Linda Rodas 354 0.90% Jun-2015 Nov-2015 Current $548 $1.55 $6,576 $18.58 - - - - Market $1.65 MG (1st Floor)

F-240 Ana Rivas 354 0.90% Jun-2014 Aug-2016 Current $443 $1.25 $5,310 $15.00 - - - - MarketMTM

F-138 Phillip Shinen 708 1.79% May-2009 Aug-2016 Current $956 $1.35 $11,470 $16.20 - - - - MarketMTM

E-106 Farzad Kashefi 354 0.90% Jun-2003 Aug-2016 Current $496 $1.40 $5,947 $16.80 - - - - MarketMTM

A-121 Robert Taft, Jr. 354 0.90% Jul-2014 Aug-2016 Current $513 $1.45 $6,160 $17.40 - - - - MarketMTM

E-205 Pamela Tsao 354 0.90% Jul-2014 Aug-2016 Current $478 $1.35 $5,735 $16.20 - - - - MarketMTM

E-105 Robert Foy 354 0.90% Jul-2006 Aug-2016 Current $584 $1.65 $7,013 $19.81 - - - - MarketMTM

F-140 Agnes Dickson & Laurie Brodesk 708 1.79% Aug-2007 Aug-2016 Current $1,168 $1.65 $14,018 $19.80 - - - - MarketMTM

A-122 Robert Patterson 708 1.79% Aug-2004 Aug-2016 Current $1,062 $1.50 $12,744 $18.00 - - - - MarketMTM

F-244 Richard J. Valenstein 960 2.43% Mar-2005 Aug-2016 Current $1,344 $1.40 $16,128 $16.80 - - - - MarketMTM

D-119 Elena Torres 354 0.90% Aug-2014 Aug-2016 Current $513 $1.45 $6,158 $17.39 - - - - MarketMTM

E-202 Mokhtar A. Shawky 354 0.90% Aug-2009 Aug-2016 Current $478 $1.35 $5,735 $16.20 - - - - MarketMTM

E-201 Regina Lindner 354 0.90% Oct-2010 Sep-2015 Current $474 $1.34 $5,688 $16.07 - - - - Market $1.55 MG (2nd Floor)

G-254 Arturo Rosiles 708 1.79% Mar-2010 Sep-2015 Current $956 $1.35 $11,470 $16.20 - - - - Market $1.55 MG (2nd Floor)

G-156 NexTech 708 1.79% Nov-2012 Oct-2015 Current $920 $1.30 $11,045 $15.60 - - - - Market $1.65 MG (1st Floor)

F-246 Romel Fernandez 354 0.90% Nov-2008 Oct-2015 Current $566 $1.60 $6,797 $19.20 - - - - Market $1.55 MG (2nd Floor)

Fixed Reimbursements



None


None Lease expired 5/15. Analysis assumes tenant remains in-place throughout first year of analysis at same terms.

$1.55 MG (2nd Floor)


Fixed Reimbursements Lease expired 6/15. Analysis assumes tenant remains in-place throughout first year of analysis at same terms.

$1.65 MG (1st Floor)




Lease expired 6/15. Analysis assumes tenant remains in-place throughout first year of analysis at same terms.

$1.65 MG (1st Floor)None













Lease expired 7/15. Analysis assumes tenant remains in-place throughout first year of analysis at same terms.





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Market



C-232 GS Healthcare Management 354 0.90% May-2013 Oct-2015 Current $531 $1.50 $6,372 $18.00 - - - - Market $1.55 MG (2nd Floor)

F-143 Pacific Coast Refrigeration & 354 0.90% Nov-2009 Oct-2015 Current $531 $1.50 $6,372 $18.00 - - - - Market $1.65 MG (1st Floor)

D-110 Chris Schneer -OC Homes 354 0.90% Mar-2007 Oct-2015 Current $548 $1.55 $6,576 $18.58 - - - - Market $1.65 MG (1st Floor)

E-104 Juan Yue 354 0.90% Dec-2012 Nov-2015 Current $513 $1.45 $6,156 $17.39 - - - - Market $1.65 MG (1st Floor)

F-243 Octavio Corona 880 2.22% Jan-2011 Dec-2015 Current $1,188 $1.35 $14,256 $16.20 - - - - Market $1.55 MG (2nd Floor)

E-107 Beatriz Adriana Huerta 354 0.90% Jan-2012 Jan-2016 Current $497 $1.40 $5,964 $16.85 - - - - Market $1.65 MG (1st Floor)

F-148 Anna M. Devito 354 0.90% Feb-2014 Jan-2016 Current $492 $1.39 $5,907 $16.69 - - - - Market $1.65 MG (1st Floor)

B-130 Kenneth A. Levine 708 1.79% Feb-2015 Jan-2016 Current $1,062 $1.50 $12,744 $18.00 - - - - Market $1.65 MG (1st Floor)

C-231 James Marshall Pugh Phd 354 0.90% Mar-2006 Feb-2016 Current $566 $1.60 $6,797 $19.20 - - - - Market $1.55 MG (2nd Floor)

E-101-10 Arnold and Teresa Rivas-Barrio 708 1.79% Mar-2006 Feb-2016 Current $1,097 $1.55 $13,164 $18.59 - - - - Market $1.65 MG (1st Floor)

B-128 Melvin E. Jones 708 1.79% Mar-2015 Feb-2016 Current $1,062 $1.50 $12,744 $18.00 - - - - Market $1.65 MG (1st Floor)

E-103 Young Jae Park - Young's Tradi 354 0.90% Mar-2006 Feb-2016 Current $529 $1.49 $6,344 $17.92 - - - - Market $1.65 MG (1st Floor)

C-134 Thomas Cavalli 484 1.22% Apr-2007 Mar-2016 Current $799 $1.65 $9,583 $19.80 - - - - Market $1.65 MG (1st Floor)

D-210 Stephen Meade 354 0.90% Apr-2014 Mar-2016 Current $456 $1.29 $5,469 $15.45 - - - - Market $1.55 MG (2nd Floor)

G-158 Jane Roschmann & Sharon Dickso 1,062 2.69% Apr-2008 Mar-2016 Current $1,650 $1.55 $19,800 $18.64 - - - - Market $1.65 MG (1st Floor)

A-120 William R. Kennon 708 1.79% Mar-2015 Mar-2016 Current $1,062 $1.50 $12,744 $18.00 - - - - Market $1.65 MG (1st Floor)

D-209 Jeanette Saucedo & Armida Bust 354 0.90% Jan-2010 Mar-2016 Current $496 $1.40 $5,947 $16.80 - - - - MarketMTM

B-129 Rose, Klien & Marias, LLP 354 0.90% May-2011 Apr-2016 Current $531 $1.50 $6,372 $18.00 - - - - MarketMTM

D-118 Israel D. Vela 531 1.34% Jul-2005 Jun-2016 Current $830 $1.56 $9,954 $18.75 - - - - Market $1.65 MG (1st Floor)

F-247 Douglas P. Minery 354 0.90% Jun-2012 Jun-2016 Current $502 $1.42 $6,022 $17.01 - - - - Market $1.55 MG (2nd Floor)

A-124 Frances Racobs 708 1.79% Aug-2008 Jul-2016 Current $1,027 $1.45 $12,319 $17.40 - - - - Market $1.65 MG (1st Floor)

D-111 Victoria Wallace Schlicht 354 0.90% Sep-2012 Aug-2016 Current $515 $1.45 $6,180 $17.46 - - - - Market $1.65 MG (1st Floor)

F-147 Tracey Clark LMFT 354 0.90% Oct-2013 Sep-2016 Current $513 $1.45 $6,160 $17.40 - - - - Market Oct-2015 $531 $1.50 $6,372 $18.00 $1.65 MG (1st Floor)

E-206 AWS Consultants 708 1.79% Apr-2004 Oct-2016 Current $1,007 $1.42 $12,084 $17.07 - - - - Market Nov-2015 $1,038 $1.47 $12,454 $17.59 $1.55 MG (2nd Floor)

D-116 California Forensic Phlebotomy 531 1.34% Feb-2009 Dec-2016 Current $663 $1.25 $7,956 $14.98 - - - - Market Jan-2016 $716 $1.35 $8,592 $16.18 $1.65 MG (1st Floor)

E-204 Jeffrey Wong 354 0.90% Feb-2014 Jan-2017 Current $477 $1.35 $5,724 $16.17 - - - - Market Feb-2016 $495 $1.40 $5,940 $16.78

None



None

None

None



None

None





None







None

None

None



None

None $1.55 MG (2nd Floor)

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Market



C-132 Guardian Angel Home Care 708 1.79% Oct-2009 Feb-2017 Current $1,097 $1.55 $13,164 $18.59 - - - - Market Mar-2016 $1,130 $1.60 $13,558 $19.15

A-221 Douglas S. Vaziri 1,425 3.60% Mar-2015 Feb-2017 Current $1,924 $1.35 $23,085 $16.20 - - - - Market Mar-2016 $1,995 $1.40 $23,940 $16.80

F-145 Abilio A. Hernandez MD 354 0.90% Mar-2015 Mar-2017 Current $531 $1.50 $6,372 $18.00 - - - - Market Mar-2016 $549 $1.55 $6,584 $18.60

D-213 Lisa B. Schooler 354 0.90% Feb-2006 Mar-2017 Current $550 $1.55 $6,600 $18.64 - - - - Market Apr-2016 $568 $1.60 $6,815 $19.25

D-108 Prominence Staffing 708 1.79% Nov-2014 Mar-2017 Current $1,027 $1.45 $12,319 $17.40 - - - - Market Apr-2016 $1,057 $1.49 $12,687 $17.92

D-215 Marc David McBride 354 0.90% Apr-2015 Mar-2017 Current $478 $1.35 $5,735 $16.20 - - - - Market Apr-2016 $496 $1.40 $5,947 $16.80

F-146 Christopher Meyers 708 1.79% Apr-2015 Apr-2017 Current $1,062 $1.50 $12,744 $18.00 - - - - Market May-2016 $1,097 $1.55 $13,169 $18.60

A-218 Christy Thomasson-Pillars 708 1.79% May-2015 Apr-2017 Current $956 $1.35 $11,470 $16.20 - - - - Market May-2016 $985 $1.39 $11,817 $16.69

C-136 Siu-Hang Simon Chan 823 2.08% Nov-2003 Oct-2017 Current $1,111 $1.35 $13,333 $16.20 - - - - Market Nov-2015 $1,152 $1.40 $13,826 $16.80 Nov-2016 $1,193 $1.45 $14,320 $17.40

D-211 Ricardo DeLaTorre & Agustin De 354 0.90% Nov-2014 Oct-2017 Current $478 $1.35 $5,735 $16.20 - - - - Market Nov-2015 $492 $1.39 $5,905 $16.68 Nov-2016 $502 $1.42 $6,025 $17.02

G-248 Gerardo Soria 662 1.67% Nov-2006 Nov-2017 Current $1,225 $1.85 $14,696 $22.20 - - - - Market Dec-2015 $1,258 $1.90 $15,094 $22.80 Dec-2016 $1,291 $1.95 $15,491 $23.40

D-216 Institute for Middle East Unde 708 1.79% Apr-2009 Mar-2018 Current $955 $1.35 $11,460 $16.19 - - - - Market Apr-2016 $991 $1.40 $11,894 $16.80 Apr-2017 $1,027 $1.45 $12,326 $17.41

B-225-30 Lisa N. Nguyen 2,102 5.31% Jul-2010 Apr-2018 Current $2,838 $1.35 $34,052 $16.20 - - - - Market May-2016 $2,852 $1.36 $34,221 $16.28 May-2017 $3,069 $1.46 $36,827 $17.52

G-152 Marilyn Smith 354 0.90% Oct-2013 Sep-2018 Current $492 $1.39 $5,905 $16.68 - - - - Market Oct-2015 $506 $1.43 $6,075 $17.16 Oct-2016 $520 $1.47 $6,245 $17.64 Oct-2017 $535 $1.51 $6,414 $18.12

D-212 Martha E. Curtis 354 0.90% Nov-2013 Oct-2018 Current $457 $1.29 $5,480 $15.48 - - - - Market Nov-2015 $471 $1.33 $5,650 $15.96 Nov-2016 $485 $1.37 $5,820 $16.44 Nov-2017 $499 $1.41 $5,990 $16.92

B-125 Roxana Benavidez 354 0.90% Jan-2013 Feb-2020 Current $478 $1.35 $5,735 $16.20 - - - - Market Mar-2016 $496 $1.40 $5,947 $16.80 Mar-2017 $513 $1.45 $6,160 $17.40 Mar-2018 $531 $1.50 $6,372 $18.00 Mar-2019 $549 $1.55 $6,584 $18.60

G-150B Janitor's Closet 354 0.90% Sep-2015 Aug-2040 Current $0 $0.00 $0 $0.00 - - - - Market

F-245 VACANT (F-245) 708 1.79% Nov-2015 Oct-2018 Nov-2015 $1,097 $1.55 $13,169 $18.60 - - $7.50 $2.30 Market Nov-2016 $1,130 $1.60 $13,565 $19.16 $5,310 $1,628 Nov-2017 $1,164 $1.64 $13,969 $19.73 4.00%

C-238 VACANT (C-238) 2,118 5.35% Feb-2016 Jan-2019 Feb-2016 $3,526 $1.66 $42,310 $19.98 - - $5.15 $2.47 Market Feb-2017 $3,632 $1.72 $43,588 $20.58 $10,908 $5,231 Feb-2018 $3,740 $1.77 $44,880 $21.19 4.00%

D-115 VACANT (D-115) 708 1.79% May-2016 Apr-2019 May-2016 $1,255 $1.77 $15,056 $21.27 - - $7.50 $2.63 Market May-2017 $1,292 $1.83 $15,505 $21.90 $5,310 $1,861 May-2018 $1,331 $1.88 $15,972 $22.56 4.00%

G-255 VACANT (G-255) 708 1.79% Aug-2016 Jul-2019 Aug-2016 $1,179 $1.66 $14,143 $19.98 - - $7.50 $2.47 Market Aug-2017 $1,214 $1.72 $14,571 $20.58 $5,310 $1,749 Aug-2018 $1,250 $1.77 $15,003 $21.19 4.00%

Fixed Reimbursements $1.65 MG (1st Floor)

None $1.65 MG (1st Floor)



Fixed Reimbursements $1.55 MG (2nd Floor)











None Analysis assumes suite is non-revenue generating for duration of analysis. $0.00 NON-LEASABLE






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Market



D-214 VACANT (D-214) 354 0.90% Nov-2016 Oct-2019 Nov-2016 $589 $1.66 $7,072 $19.98 - - $5.15 $2.47 Market Nov-2017 $607 $1.72 $7,285 $20.58 $1,823 $874 Nov-2018 $625 $1.77 $7,501 $21.19 4.00%

G-249 VACANT (G-249) 717 1.81% Mar-2017 Feb-2020 Mar-2017 $1,270 $1.77 $15,240 $21.25 - - $5.30 $2.63 Market Mar-2018 $1,308 $1.82 $15,695 $21.89 $3,803 $1,884 Mar-2019 $1,347 $1.88 $16,168 $22.55 4.00%

TOTALS / AVERAGES 39,553 $49,005 $1.43 $588,059 $17.17

OCCUPIED SqFt 34,240 86.6%VACANT SqFt 5,313 13.4%

TOTAL SqFt 39,553 100.0%



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LAND SIZE 79,715 SQUARE FEET

BUILDING SIZE 39,553 SQUARE FEET

HARD COSTS

Land Acquisition Cost @ $25.00 $1,992,870

Hard Costs @ $85.00 $3,362,005

Tenant Improvements @ $50.00 $1,977,650

TOTAL HARD COSTS $7,332,525 74%

SOFT COSTS

A & E @ 2.0% $146,651

Insurance $0.37 PSF $14,635

Property Taxes 1.10% Hard Costs $80,658

Development Fees $8.50 PSF of Bldg. Area $336,201

Legal 1% Hard Costs $73,325

Developer’s Profit 10% Hard Costs $733,253

Loan Fee 1% Hard Costs $73,325

Contingency 5% Hard Costs $366,626

Interest on Land Carry 3% Hard Costs $59,786

Interest on Construction 5% Hard Costs $366,626

Interest on Lease Up 3% Hard Costs $219,967

Leasing Commission $3.56 PSF $140,967

TOTAL SOFT COSTS $2,612,028 26%

Total Development Costs $9,944,553 100%

Cost Per Square Foot $251.42

ECONOMIC RENT CALCULATION

Replacement Costs $251.42

Required Return 10.0% $25.14

Operating Expenses $0 $-

Less Vacancy/Credit 5% $1.26

Economic Rent Required, PSF per year (NNN) $26.40

Economic Rent Required, PSF per month (NNN) $2.20

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AFFILIATED BUSINESS DISCLOSURE

CBRE operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage ser-vices, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the property or the owner of all Property (the”Owner”), to be all-inclusive or to contain all or part of the information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors being the control of the Owner and CBRE,Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respectful directors, officers, Affiliates or representa-tives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agree-ment(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER

2015 CBRE, Inc. The information containing in this document has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property, The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, indepen-dent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the Property of their respective owners.

2030 E. 4th Street Santa Ana, CA

CAPITAL MARKETS INVESTMENT PROPERTIES - SOCAL

GARY STACHELic. 00773736+1 949 725 [email protected]

ANTHONY DELORENZOLic. 01706686 +1 949 725 [email protected]

DOUG MACKLic. 01804065+1 949 725 8571 [email protected]

LOCAL LEASING

JUSTIN HILLLic. 01424426+1 714 371 [email protected]

INVESTMENT PROPERTIES - SOCAL

LOS ANGELES

MARK SHAFFERLic. 01253743+1 213 613 3758 [email protected]

SAN DIEGO

MATT POURCHOLic. 01705763+1 858 546 [email protected]

FINANCING EXPERT

SHAUN MOOTHARTLic. 01773201+1 949 509 [email protected]

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