611 W Civic Center, Santa Ana, CA 92701Creative Owner-User Building Across from the O.C. Courthouse

Property Video at EconomosDeWolf.com

FOR SALE

The information contained in this document is proprietary to Economos DeWolf, Inc. and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Economos DeWolf, Inc. and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.

TABLE OF CONTENTS

W CIVIC CENTER DRIVE611

Steve EconomosCo-FounderDirect 949-576-2750Mobile 949-466-4882steve@economosdewolf.comLicense #01159994

Geoff DeWolfCo-Founder

Direct 949-576-2751Mobile 949-500-6654

geoff@economosdewolf.comLicense #01319312

Exclusive investment advisors

Economos DeWolf25 Pacifica, #5321, Irvine, CA 92618economosdewolf.com

Images. Here you’ll find attractive building photographs and the functional interior floor plans. Pages 8-13

Property. This section opens with the property’s compelling highlights and is followed by the property summary and several aerials showcasing its location and nearby amenities. Pages 3-7

Market. This section opens with three key sale comps followed by a custom market report for the surrounding area. Pages 18-20

Financials. Providing solid support to purchase and occupy this property, the financials consist of a description of the owner-user opportunity, a purchase-vs-lease analysis, loan illustration, and the tax benefits of depreciation. Pages 14-17

HIGHLIGHTS

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611 W Civic Center is a four-story, creative-style, elevator-served office building located in the heart of downtown Santa Ana. It is directly across the street from Orange County Municipal Courts and within walking distance to some of the best restaurants in the county.

This is an incredible opportunity to own and occupy a newly renovated office building with direct elevator access to the penthouse, private covered parking, an on-sight coffee house, and a unique rooftop deck:

The building is partially occupied with most tenants on month-to-month terms, with the exception of the 3rd floor tenant who expires September 30, 2018 (and has no option to renew). In less than a year from closing escrow, a new buyer can either occupy the entire building or can occupy a portion and retain some tenants to provide income.

Included in the purchase price is an additional parking lot, just a short walk from the building. Parking in Downtown Santa Ana is scarce, but this offering includes a total of 46 stalls (ratio of ±3.22 spaces per 1,000 square feet).

SUMMARY

Sale price $3,135,000 (±$219 per square foot)

Size ±14,306 square feet

Address 611 W Civic Center DriveSanta Ana, California 92701

Propertydescription

Built in 1963 and renovated in 2016, this highly-creative, elevator-served, four-story office building is ideally suited for an owner-user.

Location This building is directly across the street from the O.C. Municipal Courts, and is just a couple minutes from Downtown Santa Ana with numerous newly-renovated restaurants and amenities.

The building enjoys convenient access to I-5, I-22, and I-57 Freeways.

Roof & HVAC A new coating was put on the roof in 2017 and the HVAC is 11-12 years old and in good working order.

Fiber & Connectivity

Fiber optic is not only run to the building, but instead of copper fiber is throughout the building for extremely fast internet speeds. Free WIFI is currently being provided on the 1st and 2nd floors.

Parking 46 parking stalls in total, including covered stalls and extra stalls in a separate lot (±3.22:1 ratio)

611 W CIVIC CENTER DRIVEProp

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AERIAL MAP

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VILLA PARK

TUSTIN

ANAHEIM

GARDEN GROVE

W Civic Center Dr.

W 17th St

W 1st St

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W Washington Ave

611 WCivic

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611 W Civic Center DriveMiles to Interstate 5 Freeway 1.2

Miles to Interstate 22 Freeway 2.5

Miles to Interstate 55 Freeway 2.7

Miles to Interstate 57 Freeway 3.0

Miles to John Wayne Airport 5.9

LOCAL MAP

VILLA PARK

TUSTIN

ANAHEIM

GARDEN GROVE

US District Courthouse

Orange County Municipal Courts

Santa AnaCivic Center

Orange County Public Law Library

Orange County Superior Court

Old Courthouse Museum

US Citizenship & Immigration Svs

Santa Ana City Counsel

Orange County District Attorney

611 W Civic Center Drive

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Additional Parking

AMENITIES

17th St.

Civic Center Dr.

1st St.

4th St.

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611 W Civic Center Drive

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1. Lola Gaspar2. Crave3. The North Left4. The Barrel Room5. Gypsy Den6. Eqeko7. The Copper Door8. Chapter One:

The Modern Local9. Black Box10.Playground11.4th Street Market12.Wursthaus13.Native Son Alehouse

1011 12

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PHOTOGRAPHSImag

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FLOORPLANSFIRST FLOOR Im

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FLOORPLANSSECOND FLOOR Im

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FLOORPLANSFOURTH FLOOR Im

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In the analysis on the following page, we assume that a user elects to pick the 25-year, fully-amortized SBA 7a loan option with a 10% down payment and financed loan fees.

As the percentage of principal accumulation increases year-over-year, it becomes increasingly favorable to purchase instead of lease. Following are charts depicting the principal payments paid over 25 years, ending in a loan balance of zero when the building is owned free-and-clear:

OWNER-USEROPPORTUNITYFi

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PURCHASE VS. LEASE ANALYSIS

Situation: An owner-user purchases and occupies 611 W Civic Center for $219/sf with an initial investment of $22/sf (10% down payment).

Estimated Monthly CostsTypical Operating Expenses: $0.70/SFMortgage Payment: $2.25/SF

Amount of Principal in Mortgage Payment: ($0.35/SF)

Ownership Cost in Year 1: $1.52/sf

Compare to Estimated Starting Lease Rate: $2.25/sf

The advantage of owning over leasing increases every year. Assuming lease rates increase by 3% annually and operating expenses increase by 2.5% annually, below is a ten-year comparative analysis of purchasing vs. leasing (per square foot):

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Lease Own Annual Savings

Cumulative Savings

Year 1 $2.25 $1.52 $8.79 $8.79

Year 2 $2.32 $1.51 $9.71 $18.50

Year 3 $2.39 $1.50 $10.66 $29.16 Return of Initial Investment

Year 4 $2.46 $1.49 $11.62 $40.77

Year 5 $2.53 $1.48 $12.60 $53.38

Year 6 $2.61 $1.47 $13.61 $66.98

Year 7 $2.69 $1.47 $14.63 $81.61

Year 8 $2.77 $1.46 $15.68 $97.29

Year 9 $2.85 $1.45 $16.75 $114.04

Year 10 $2.94 $1.45 $17.84 $131.88 Own vs. Lease Savings After 10 Years

LOAN ILLUSTRATIONFi

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Assume a business owner or trust personally purchases 611 W Civic Center and leases it to his/her business at a market rate (this is allowable under the SBA program). Cash flow and taxable income of the business are not affected. However, this owner’s personal financial situation would benefit from depreciation of the building. In terms of this scenario, depreciation is the spreading of cost over the useful life of an asset.

The Internal Revenue Service allows for a tax deduction of commercial property improvements depreciation based on a 39‐year life. Simply stated, a portion of the cost of the building (excluding land) reduces taxable income, and thus tax liability, for a period of up to 39 years.

In this scenario, let us assume the following facts:

Purchase Price: $3,315,000Building Size: 14,306 Square Feet ($219/sf)Percentage of Building to Land: 45% / 55%Owner’s personal income tax bracket: 33%

The amount subject to depreciation, in this example, is 45% of $3,135,000, or $1,410,750. Spread over the IRS’ mandated 39 years, the deduction per year is approximately $36,000. At a tax rate of 33%, the tax savings due to depreciation is $12,000 per year of ownership.

If you are considering this on a monthly per‐square‐foot basis consistent with the example on the previous page, this tax savings equates to an additional ownership benefit of $0.07/sf per month.

As time progresses, the cost basis of the building is being reduced by depreciation accumulated since purchase. Should the owner decide to sell, the depreciation is recaptured and taxed, but it is at a standard 25% as opposed to the 33% ordinary income rate used when the deduction was realized. This yields an overall tax benefit during the building ownership period, especially if the building is kept and passed down to future generations.

It is important to note that this example may differ from your situation. Please consult with your tax advisor.

TAX BENEFITSOF DEPRECIATIONDEPRECIATION IS NOT INCLUDED IN THE COST OF OCCUPANCY SHOWN EARLIER; THIS IS AN ADDITIONAL POSSIBLE BENEFIT

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SALECOMPS

Property Sale Date Size Price

P.S.F. Market Insight

101 W 4th StreetSanta Ana

Mar 2017

18,894 SF

$4,200,000$222

This 1900 office building is larger, has not been

renovated since 1988, and is lacking parking. It’s about a half mile away from 611 W Civic Center. Priced at just $219/sf, 611 W Civic Center

is a solid value.

1616 E 4th StreetSanta Ana

May 2017

8,737 SF

$1,900,000$217

Owner-user sale in Santa Ana. Though smaller, 611 W

Civic Center is in better condition balancing out the

value. This sale is very comparable to the 611 W Civic Center opportunity.

615 W Civic CenterSanta Ana

Aug 2017

22,376 SF

$3,380,000$151

This building is next door to 611 W Civic Center. It is much bigger, has a lower

parking ratio, and the quality is significantly inferior. It has not been renovated since 1991. 611 W Civic

Center is worth significantly more.

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OFFICE REPORTSOURCE: COSTAR 2017

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OFFICE REPORTSOURCE: COSTAR 2017

Mar

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Steve EconomosCo-founderDirect 949-576-2750Mobile 949-466-4882steve@economosdewolf.comLicense #01159994

Geoff DeWolfCo-founderDirect 949-576-2751Mobile 949-500-6654geoff@economosdewolf.comLicense #01319312

Exclusive investment advisors

Economos DeWolf, Inc.25 Pacifica, #5321, Irvine, CA 92618License 02040292economosdewolf.com