SUMMIT RIDGEB U S I N E S S P A R K6759, 6769 & 6779 MESA RIDGE ROAD | SAN DIEGO, CA

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp.,a real estate broker licensed with the California Department of Real Estate, License Number 01385740 (“HFF”) | |

INVESTMENT SALE TEAMNICK FRASCO SEAN FULPDirector Executive Managing Directornfrasco@hfflp.com sfulp@ngkf.com858-812-2354 310-407-6596CA Lic. #01819400 CA Lic. #01389064

TAYLOR BERGTHOLD KARA MATHIS, CFAReal Estate Analyst Associatetbergthold@hfflp.com kmathis@hfflp.com858-812-2356 858-242-6220CA Lic. #02014647 CA Lic. #01924947

DEBT CONTACT

ZACK HOLDERMANDirectorzholderman@hfflp.com858-812-2350CA Lic. #01434957

LOCAL MARKET LEASING ADVISORSBRIAN MULVANEY JOSH WESTSenior Vice President Senior Associatebmulvaney@voitco.com jwest@voitco.com858-458-3372 858-458-3358CA Lic. #00938944 CA Lic. #01923375

CONTACTSTHE OFFERING PROCESS An online auction event will be conducted on RealINSIGHT Marketplace in accordance with the AUCTION TERMS AND CONDITIONS.

DUE DILIGENCE Due diligence materials are available to qualified prospective bidders via an electronic data room hosted by RealINSIGHT Marketplace. Prospective bidders will be required to electronically execute a confidentiality agreement prior to being allowed access to the materials. All due diligence must be conducted prior to signing the purchase and sale agreement. You may contact the sales advisors with any due diligence questions.

BUYER QUALIFICATION Prospective bidders will be required to register with RealINSIGHT Marketplace to bid. Each bidder will be required to provide current contact information, submit proof of funds up to the full amount they plan to bid, and agree to the Auction Terms and Conditions.

In order to participate in an auction, the Seller requires bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid for those assets they wish to bid on. Such liquidity must be in the form of cash, or cash equivalents, and must be available immediately without restriction.

Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable only if it is already closed and in place, has undrawn capacity, and may be funded immediately without bank approval. Loan pre-approval letters, term sheets, and the like, where the loan would be collateralized by the property up for auction and funded at escrow closing, are NOT acceptable. Capital call agreements, investor equity commitments, and the like, are evaluated on a case-by-case basis. The acceptance of any proof of funds documents are made at the sole and absolute discretion of RealINSIGHT Marketplace. For further information, please visit the BIDDER REGISTRATION FAQ.

AUCTION DATE The Auction end date is set for Thursday, June 1, 2017.

RESERVE AUCTION This will be a reserve auction and the Property will have a reserve price (“Reserve Price”). The starting bid is not the Reserve Price. The seller can accept or reject any bid. All bidders agree to execute the non-negotiable purchase and sale agreement, which will be posted to the electronic data room prior to bidding commencement, should they be awarded the deal. For further information about how to bid, please visit the Bidding at Auction page.

CLOSINGFollowing the auction, the winning bidder will be contacted by phone and email to go over specifics of the sale, including the execution of the purchase agreement and all documentation involved in the purchase. The winning bidder must be available by telephone within two hours of the sale. More information can be found on the RealINSIGHT Marketplace website.

BUYER RESPONSIBILITIES UPON CLOSING

AUCTION START DATE Tuesday, May 30, 2017

AUCTION END DATE Thursday, June 1, 2017

TOUR DATES Thursday, May 18th & Tuesday, May 23rd

SALES PROCESS

PROPERTY OVERVIEW ADDRESS: 6759, 6769, & 6779 Mesa Ridge Road | San Diego, CA 92121

NET RENTABLE AREA: 133,841 Square Feet

NUMBER OF BUILDINGS: 3

YEAR BUILT: 2000

% LEASED: 100% (As of June 1, 2017)

PARKING: 432 Spaces (3.2 per 1,000 SF)

TOTAL LAND: 11.12 Acres

PARCEL NUMBER: APN's 341-041-36, 37

ZONING: IL-2-1 (Light Industrial)

RealINSIGHT Marketplace, HFF, L.P. and Newmark Grubb Knight Frank, as exclusive advisors, is pleased to present to qualified investors the opportunity to purchase the 100% fee simple interest in Summit Ridge Business Park. Built in 2000, the Property consists of three extremely well designed and constructed, institutional quality Flex/R&D buildings totaling ±133,841 square feet. Currently 100% leased to an exceptionally-strong tenant roster consisting of 67% Investment-grade credit or publicly-traded companies, the Property offers a desirable combination of durable in-place cash flow from established, long term tenancy in addition to significant upside potential with rents from near-term roll approximately 20% below market.

Ideally located in San Diego’s premier Sorrento Mesa submarket, Summit Ridge Business Park perfectly serves the demand of companies seeking to operate in a vibrant, innovation-centric location. In addition to being a technological hub, Sorrento Mesa attracts tenants with its superior access to both the 5 and 805 freeways. Consistently demonstrating strong submarket fundamentals, Sorrento Mesa has been one of San Diego’s best performing High-Finish/Flex/R&D submarkets, averaging ±90% occupancy over the past 10 years.

TENANCY SUMMARY INDUSTRY BUILDING / SUITE RSF % OF NRA ORIGNAL START DATE EXPIRES WALT CURRENT RENT % BELOW MARKET

Inovio Pharmaceuticals Medical 6769/100-200 51,020 38.1% Jun-17 May-27 10.0 $1.40 7.14%

Nexus DX Technology 6759/100-250 39,010 29.1% Sep-09 Dec-19 2.6 $1.15 21.74%

Acea Biosciences BioTech 6779/100-103 23,141 17.3% Sep-07 May-18 1.0 $1.24 20.97%

General Atomics* Defense 6779-150 20,670 15.4% May-13 May-18 1.0 $1.20 16.67%*Subleased to Trango Systems, Inc.

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INVESTMENT HIGHLIGHTSHIGH QUALITY ASSETConstructed in 2000, Summit Ridge Business Park was perfectly designed for the high-tech tenant

demand of the Sorrento Mesa submarket and has since been meticulously maintained to the highest

institutional standards. Featuring high-image exterior architecture, unobstructed canyon views,

extensive window line, abundant 22’ clear heights, ample 3.2:1,000 parking and grade-level loading

access, Summit Ridge was built with the discerning, high-end Sorrento Mesa tenant in mind. Moreover,

the multi-building, multi-tenant design allows for a multitude of options with which to meet various

tenant size and type requirements.

67% INVESTMENT-GRADE CREDIT OR PUBLICLY-TRADED TENANCY

HIGH-IMAGE EXTERIOR ARCHITECTURE APPEALS TO SORRENTO MESA’S HIGH-TECH TENANCY

UNOBSTRUCTED, EXPANSIVE CANYON VIEWS OFFER A SUPERIOR WORKPLACE ENVIRONMENT

EXTENSIVE GLASS LINE MAXIMIZES INTERIOR NATURAL LIGHT

22’ CLEAR HEIGHTS ALLOW FOR BEST IN CLASS, PROGRESSIVE OFFICE AND R&D WORKSPACES, AS WELL AS HIGHLY-FUNCTIONAL SECOND FLOOR SPACE

AMPLE, 3.2:1,000 PARKING ENABLES AN OWNER TO MEET OFFICE, FLEX/R&D AND LIFE SCIENCE REQUIREMENTS

MULTI-BUILDING, MULTI-TENANT DESIGN PROVIDES MAXIMUM RE-TENANTING FLEXIBILITY

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f Market Cap of ~$540 Million f DNA vaccine firm focused on cancers and infectious

diseases, founded in 1979

f Wholly owned subsidiary of Samsung Electronics (Moody’s: A1 credit)

f Headquartered in San Diego f Founded in 2009 focusing on innovative medical

equipment

f Develops cell analysis instruments for life science research and clinical diagnostics

f Founded in 2002 in San Diego

f Developer of the Predator Drone, one of the most widely used drones by the U.S. military

f Subleases space to Trango Systems, Inc f Occupies over 3 Million SF within San Diego

STRONG IN-PLACE CASH FLOW WITH SIGNIFICANT UPSIDE OPPORTUNITYSummit Ridge offers the ideal combination of durable, long-term income with exceptional near-term upside opportunity. Approximately 38% of the NRA is leased for 10 years to an exceptionally strong, publicly traded biotech firm, while the remaining 62% of the NRA expires on a near term basis at rents that are ~20% below market, offering exceptional mark to market opportunity. Of the tenants expiring in the near term, the majority have been located at the Project for over 7 years, having expanded or renewed on past occasions displaying their commitment to the Property.

f Inovio, a publicly-traded pharmaceutical company with a market cap of ~$540 million, recently signed a 10-year lease for 38% of the NRA, providing a durable, long-term income stream

f Nexus DX, ACEA Biosciences, and General Atomics (62% of NRA) all have leases scheduled to expire within the first 24 months of the hold period

f Demonstrating long term and committed tenancy, Nexus and ACEA have both occupied space within Summit Ridge for over 7 years, each renewing and expanding on multiple occasions

f Significant upside via renewal mark to market opportunity

IN-PLACE RENT (UPON EXPIRATION) VS. MARKET RENT (NNN)

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UNPARALLELED LOCATION Sorrento Mesa has long been regarded as one of San Diego’s most desirable submarkets due to its concentration of high-growth industries such as technology, telecom, and life science. As an innovative hub, Sorrento Mesa attracts

prominent corporate users including Qualcomm, Google, Alere Inc., Sony, TD Ameritrade, Sharp Healthcare, Dexcom, FedEx, and many others. For these reasons, Sorrento Mesa is highly sought after by institutional owners such as

Manulife/John Hancock, Kilroy Realty, Starwood Capital Group, Prudential, Invesco, Cornerstone, Goldman Sachs, RREEF/Deutsche Bank and LaSalle, among others. Summit Ridge Business Park lies within the eastern portion of

Sorrento Mesa, in close proximity to all amenities in Sorrento as well as over 2.5 Million square feet of nearby Miramar retail centers.

INSTITUTIONAL OWNERS Prudential Starwood Capital Kilroy Realty Corporation Manulife/John Hancock Goldman Sachs Cornerstone LaSalle Investment Management Clarion Partners RREEF/Deutsche Bank Invesco

Qualcomm Owned or Leased

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DYNAMIC LOCATION WITH HISTORICALLY SOUND FUNDAMENTALS

POISED FOR CONTINUED RENT GROWTHThe Sorrento Mesa flex/R&D submarket has averaged only a 10% direct vacancy rate over the past 10 years. Currently at a 90%

direct occupancy, the high finish submarket has no additional supply in the near term horizon, supporting a case for future rental rate

growth. The submarket has experienced tremendous rent growth in recent years, growing 20% since Q3 2014 to a current $1.79 NNN

asking rent.

SORRENTO MESA FLEX/R&DDIRECT OCCUPANCY & ASKING LEASE RATE (NNN)

100%

90%

80%

70%

60%

50%

$1.90

$1.75

$1.60

$1.45

$1.30

$1.15

$1.00

2007

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Occupancy Rental Rate (NNN)

Askin

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AVERAGED A 10.8%VACANCY RATE SINCE 2007

2015

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ATTRACTIVE BASIS, SIGNIFICANTLY BELOW REPLACEMENT COST

Summit Ridge Business Park provides the opportunity to acquire an institutional-quality asset at a significant discount to replacement cost, estimated to be greater than $275 per square foot.

1 - SORRENTO PINES

ADDRESS 4106-4122 Sorrento Valley RoadSUBMARKET Sorrento ValleyTYPE Flex/R&DSALE DATE May 2016PRICE $26,050,000 ($227 PSF)OCCUPANCY 100%

2 - SORRENTO VALLEY BUSINESS PARK

ADDRESS 5555-5627 Oberlin DriveSUBMARKET Sorrento MesaTYPE Flex/R&D/Life ScienceSALE DATE June 2015PRICE $23,500,000 ($224 PSF)OCCUPANCY 100%

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©2017 Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.