Temescal North Oakland Oakland, Ca Prime Development Opportunity

5426-5440 TELEGRAPH A VE TEMESCAL NORTH OAKLAND OAKLAND, CA PRIME DEVELOPMENT OPPORTUNITY

Offering Memorandum Presented By

STARBOARD TCN WORLDWIDE Investment Advisory Group 33 New Montgomery Street, Suite 1490 San Francisco, CA 94105 5426-5440 TELEGRAPH A VE DISCLAIMER OAKLAND, CA

This Offering Memorandum has been prepared to provide summary, unverified information to prospective buyers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Starboard TCN Worldwide has not made any investigation, and makes no warranty or representation, with respect to income or expenses for the subject property, future projected financial performance of property, size and square footage of property and improvements, presence or absence of contaminating substances, PCB's or asbestos, compliance with State and Federal regulations, condition of improvements thereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Starboard TCN Worldwide has not verified, and will not verify, any of the information contained herein, nor has Starboard TCN Worldwide conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. All potential buyers must take appropriate measures to verify all of the information set forth herein.

FOR MORE INFORMATION PLEASE CONTACT: SUSAN JORDAN PRISCILLA WILDER Broker Associate Associate Agent Phone 415-595-1554 Phone 510-367-5355 Fax 415-520-5943 Fax 415-956-2003 [email protected] [email protected] CA BRE License: 01408046 CA BRE#01903660

Starboard TCN Worldwide 33 New Montgomery Street, 1490 San Francisco, CA 94105 5426-5440 TELEGRAPH A VE TABLE OF CONTENTS OAKLAND, CA

AREA MAP 1

OFFERING SUMMARY 2 Tip Top Bike Shop INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 ASSESSOR’S MAP 5 FINANCIAL OVERVIEW 6-7 DOWNTOWN OAKLAND SOUTH AERIAL MAP 8 BERKELEY NORTH AERIAL MAP 9 TEMESCAL NEIGHBORHOOD 10 LOCAL TRANSPORTATION 11

Artisans & Merchant Center NEARBY MERCHANTS 12 TEMESCAL DEVELOPMENTS 13

SALES COMPARABLES & MARKET LISTINGS 14-15

DEMOGRAPHICS 16-21

PROPOSAL GUIDELINES & CONTACTS 22

Aunt Mary’s Café, 5426-5440 TELEGRAPH A VE AREA MAP OAKLAND, CA

SAUSALITO BELVEDERE

SAN FRANCISCO TIBURON

ANGEL ISLAND

YERBA BUENA ISLAND TREASURE ISLAND

80 880

OAKLAND 80 580

WEST OAKLAND EMERYVILLE DOWNTOWN OAKLAND ALAMEDA 880 980 BERKELEY 580 UPTOWN OAKLAND DOWNTOWN BERKELEY SUBJECT PROPERTY Shattuck Ave LAKE MERRITT TEMESCAL

ROCKRIDGE 880 UC BERKELEY College Ave

24 580

PIEDMONT

Starboard TCN Worldwide as exclusive Agent, is pleased to offer for sale 5426-5440 Telegraph Avenue. The property is comprised of three adjacent parcels for a total of 18,500 square feet (SF) located along Telegraph Avenue in North Oakland’s hip and vibrant Temescal Neighborhood and bordering nearby Rockridge Neighborhoods.

The property offers an exceptional opportunity for developers, owner/users or investors. The zoning is CC-2 (Commercial Community) and allows for a wide variety of commercial opportunities to serve local neighborhood needs, as well as other nearby communities.

Existing property improvements include a large parking lot, Farmer’s Market running through all three parcels; a two story four unit residential apartment building; and a commercial/restaurant building occupied by the owner’s business, Casper’s Hot Dogs.

Public Library

Bake Sale Betty’s

Convenient Location: Located on the corner of Demand for Market Rate Housing: Prospering Telegraph Avenue and 55th Street, in vibrant Temescal is in need of more housing. Rental rates Temescal and 2 miles from UC Berkeley and are increasing dramatically. Several new Downtown Oakland. development projects are already entitled and in the pipeline. These developments will continue to encourage future growth for the neighborhood.

Prime Redevelopment Site: Mixed-use developments with residential and office uses above retail businesses, are encouraged by Oakland Planning Department. Height limit, 60 feet (5 stories), street frontage 168 feet along Telegraph Ave and 110 feet along 55th St.

Temescal Alley

Nearby Amenities: Temescal is known for its diverse community, art galleries and phenomenal culinary scene. The site is walking distance to many shops, art galleries and numerous restaurants along Telegraph Avenue and nearby Rockridge.

55th St & Telegraph Ave Excellent Transportation: Easy access to Highway 24. Excellent public transportation along Telegraph Avenue and Shattuck Avenue via AC Transit lines 1, 1R, 18, 12, 800 AC Transit (Night). Walking distance to Rockridge and Macarthur BART stations.

Location 5426 – 5440 Telegraph Ave

Assessor Parcel Numbers/ 14-1225-24 (7,500 SF) Lot Area Square Feet (SF) 14-1225-25 (4,400 SF) 14-1225-01 (6,600 SF)

Total Lot Area +/- 18,500 SF

Zoning CC2 – Community Commercial

Height Limit 60 Ft (permitted) 5440 Stories 5 (permitted) 14-1225-01 Frontage 160 Feet along Telegraph Ave 110 along 55th St 5432 Building - Commercial Restaurant 5440 Telegraph Ave 14-1225-25 SF 1,235 Unit(s) 1 Stories 1 5426 Built 1965 14-1225-24 Building - Residential Quadruplex 5426 Telegraph Ave SF 3,352 Unit(s) 4 Stories 2 Built 1952

Price Best offer

Call for offers To be announced.

5428 – 5430 TELEGRAPH AVENUE

Unit Approx. Size (SF) Rent/Mo ($) Rent/Yr ($) Utilities Tenants Pay

5428 800 1,150 13,800 Gas, Electric, Water

5428 A 800 768 9,216 Gas, Electric

5430 800 1,425 17,100 Gas, Electric, Water

5430 A 800 1,295 15,450 Gas, Electric, Water

Subtotal 3,352 $ 4,638 $ 55,566

5428-5430 Telegraph Avenue 5440 TELEGRAPH AVENUE

Casper’s Hot Dogs 1,235 2,000 24,000 NNN (owner’s business)

Subtotal 1,235 $ 2,000 $ 24,000

Total Rent 4,587 $ 6,638 $ 79,566

5440 Telegraph Avenue

INCOME EXPENSES Rent Professional Fees 5428-5430 Telegraph Ave (Apartments) 55,558.62 Attorney 5,918.99 5440 Telegraph Ave (Casper’s Store) 24,000.00 Accounting 400.00 Interest Earned Repairs & Maintenance Agency Account 20.13 Gardening Landscaping 1,790.00 TOTAL INCOME $ 79,578.75 Repairs (Telegraph Ave Apartments) 1,189.37 Repairs (Telegraph Ave Store) 1,724.33 Property Taxes Telegraph Ave (Apartments) 6,102.24 Telegraph Ave (Store) 8,426.96 Licenses Business Tax 965.18 Rent Board Fee 120.00 Utilities PG&E 34.40 EBMUD (Water) 1,079.44 Waste Management 1,332.60 Miscellaneous Insurance 5,820.10 Property Management/Turnover 4,783.44 TOTAL EXPENSES $ 39,687.05

Oakland Technical High School NET OPERATING INCOME $ 39,891.70

Downtown Oakland

5526 – 5540 Telegraph

Downtown Berkeley UC Berkeley

5526–5540 Telegraph

Temescal is Oakland’s hottest neighborhood. It has come a long way from its days of being one of the world’s largest canneries. Today it is home to over 200 businesses as well as a wide range of residents; college students, seniors, artists and working professionals.

Locals have long enjoyed the great weather, vast culinary scene including many cafes, bakeries and restaurants featuring eclectic cuisine from Spain, Japan, Ethiopia, Korea, Burma, Italy and Mexico, to name a few. There is a strong sense of community here reflected in the very popular weekly Sunday Farmer’s Market, weekly summertime Temescal Street Cinema and annual Temescal Street Fair.

Local Merchants

Farmer’s Market

TemescalTemescal Alley Alley Loft Housing

Temescal is a bike-friendly neighborhood, has a walk score of 90 and two BART (Bay Area Rapid Transit) 51st St Highway Access stations, MacArthur and Rockridge, within walking distance. The new AC Transit Rapid Bus Line takes residents to UC Berkeley and Downtown Oakland in less than 10 minutes. Easy access to highways 24, 980, 580 and BART’s new service to Oakland International Airport provides fast convenient travel amenities. Ease of transportation is crucial as many residents living in the Bike Friendly neighborhood commute to other cities throughout the Bay Area.

Walk Score 90

MacArthur BART Station AC Transit Rapid Bus Lines

5426-5440 Telegraph

TEMESCAL

EMERYVILLE

As the burgeoning tech industry continues to expand in the Bay Area, demand for market rate housing in desired neighborhoods, such as Temescal, will continue to rise, thus translating into higher housing costs. Oakland rents have increased 12.1 percent over the last year, second only to Denver.

Major employers expanding and contributing to the local economy’s growth include, Kaiser Permanente, Alta Bates Summit Medical Center, UCSF Benioff Children’s Hospital, Southwest Airlines, FedEx, Wells Fargo, AT&T, Clorox, California College of the Arts, Pandora, UC Berkeley, Lawrence Berkeley National Lab, Pixar, Leap Frog, Novartis, Peet’s Coffee, Cliff Bar, to name a few.

Several mixed-use housing developments in Temescal are currently in the works. Together they comprise 391 residential units and 22,000 square feet of retail/commercial space.

SRM Development LLC plans to build a multi-family complex on the border of Temescal and Rockridge neighborhoods. Temescal Apartments, a 130-unit proposed project, will come with 8,000 square feet of retail space, including a rooftop courtyard, theater room, fitness facility, a bike repair and maintenance shop.

Nautilus Group plans to move forward on a proposed project at 5100 Telegraph Avenue that is entitled for 169 units. Other projects include 4700 Telegraph Avenue entitled for 48 units and 4801 Shattuck Avenue entitled for 44 units.

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guaranteed, however, and should be verified prior to consummating any transaction. 13 5426- 5440 TELEGRAPH AVE SALES COMPARABLES OAKLAND, CA 1431 Center Street, Oakland CA 94607 Property Type: Industrial Property Notes: Property Sub-type: Warehouse Sale Date: 10/16/2014 Sale Price: $1,577,500 Lot Size (SF): 7875 Lot $/SF: 200.32 Building Size (SF): 14,671 Building $/SF: $107.53 Year Built: 1941-42 APN: 005-0370-006-00 Zoning: RM-4/C (Mixed Housing Type Residential) 1741 Broadway, Oakland CA 94612 Property Type: Retail Property Notes: Property Sub-type: Retail (Other) Sale Date: 06/27/2014 Sale Price: $1,820,000 Lot Size (SF): 7556 Lot $/SF: 240.87 Building Size (SF): 16,730 Building $/SF: $108.79 Year Built: 1930 APN: 008-0640-006-00 Zoning: CBD-P (Central Business District) 632 14th Street, Oakland CA Property Type: Land Property Notes: Property Sub-type: Multi Family (Land) Sale Date: 02/25/2014 Sale Price: $1,750,000 Lot Size (SF): 6800 Lot $/SF: 257.35 APN: 003 0071-024-00 Zoning: CBD-X (Central Business District)

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guranteed, however, and should be verified prior to consummating any transaction. 14 4700 & 4770 Telegraph Avenue, Oakland CA 94609 Property Type: Multi-Family Property Notes: Property Sub-type: Garden/Low-Rise In Temescal neighborhood, 3 adjacent lots, Sale Date: 07/11/2013 entitled development site. Sale Price: $4,574,000 Total Lots Combined (SF): 19,359 Lots Combined $/SF: 236.27 APN: 013-1150-017-01 013-1150-019-02 013-1150-019-03 Zoning: CN-2 (Neighborhood Center Commercial)

MARKET LISTINGS 2538 Telegraph Avenue, Oakland CA 94612 Property Type: Land Property Notes: Property Sub-type: Multifamily (land) Entitled residential development. Sale Price: $6,000,000 CC-3 Community Commercial Lot Size: 21,342 Oakland's Korea Town Lot $/SF: 281.14 Year Built: 1952 APN: 009-0683-021-01

6610 San Pablo Avenue, Oakland CA 94608 Property Type: Retail Property Notes: Property Sub-type: Street Retail Sale Price: $2,500,000 Lot Size: 10,000 Lot $/SF: 250.00 Building Size: 9,000 Building $/SF: 277.78 Year Built: 1918 APN: 016-1454-016-01

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guranteed, however, and should be verified prior to consummating any transaction. 5426- 5440 TELEGRAPH AVE DEMOGRAPHICS OAKLAND, CA 1-mi. 3-mi. 5-mi. Population 2013 Male Population 18,354 130,259 227,166 2013 Female Population 20,660 137,736 239,650 % 2013 Male Population 47.04% 48.61% 48.66% % 2013 Female Population 52.96% 51.39% 51.34% 2013 Total Population: Adult 33,098 230,603 386,314 2013 Total Daytime Population 36,290 369,032 546,136 2013 Total Employees 16,621 223,822 290,055 2013 Total Population: Median Age 36 35 37 2013 Total Population: Adult Median Age 41 41 44 2013 Total population: Under 5 years 2,118 12,224 25,234 2013 Total population: 5 to 9 years 1,656 10,268 22,354 2013 Total population: 10 to 14 years 1,344 9,149 20,217 2013 Total population: 15 to 19 years 1,425 17,496 28,486 2013 Total population: 20 to 24 years 2,831 31,510 43,451 2013 Total population: 25 to 29 years 4,693 27,252 41,571 2013 Total population: 30 to 34 years 4,527 24,600 39,945 2013 Total population: 35 to 39 years 3,847 20,822 36,239 2013 Total population: 40 to 44 years 3,131 18,251 33,020 2013 Total population: 45 to 49 years 2,575 16,518 30,899 2013 Total population: 50 to 54 years 2,461 16,353 30,546 2013 Total population: 55 to 59 years 2,331 16,643 30,733 2013 Total population: 60 to 64 years 2,114 15,111 27,593 2013 Total population: 65 to 69 years 1,456 10,306 18,745 2013 Total population: 70 to 74 years 809 6,841 12,330 2013 Total population: 75 to 79 years 591 5,105 9,145 2013 Total population: 80 to 84 years 509 4,354 7,507 2013 Total population: 85 years and over 596 5,192 8,801 % 2013 Total population: Under 5 years 5.43% 4.56% 5.41% % 2013 Total population: 5 to 9 years 4.24% 3.83% 4.79% % 2013 Total population: 10 to 14 years 3.44% 3.41% 4.33% % 2013 Total population: 15 to 19 years 3.65% 6.53% 6.10%

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guranteed, however, and should be verified prior to consummating any transaction 5426- 5440 TELEGRAPH AVE DEMOGRAPHICS OAKLAND, CA 1-mi. 3-mi. 5-mi. % 2013 Total population: 20 to 24 years 7.26% 11.76% 9.31% % 2013 Total population: 25 to 29 years 12.03% 10.17% 8.91% % 2013 Total population: 30 to 34 years 11.60% 9.18% 8.56% % 2013 Total population: 35 to 39 years 9.86% 7.77% 7.76% % 2013 Total population: 40 to 44 years 8.03% 6.81% 7.07% % 2013 Total population: 45 to 49 years 6.60% 6.16% 6.62% % 2013 Total population: 50 to 54 years 6.31% 6.10% 6.54% % 2013 Total population: 55 to 59 years 5.97% 6.21% 6.58% % 2013 Total population: 60 to 64 years 5.42% 5.64% 5.91% % 2013 Total population: 65 to 69 years 3.73% 3.85% 4.02% % 2013 Total population: 70 to 74 years 2.07% 2.55% 2.64% % 2013 Total population: 75 to 79 years 1.51% 1.90% 1.96% % 2013 Total population: 80 to 84 years 1.30% 1.62% 1.61% % 2013 Total population: 85 years and over 1.53% 1.94% 1.89% 2013 White alone 21,267 132,818 222,237 2013 Black or African American alone 10,009 52,962 77,404 2013 American Indian and Alaska Native alone 229 1,295 2,873 2013 Asian alone 3,157 51,839 102,702 2013 Native Hawaiian and OPI alone 78 481 1,245 2013 Some Other Race alone 1,662 12,101 32,239 2013 Two or More Races alone 2,612 16,499 28,116 2013 Hispanic 4,217 28,615 68,910 2013 Not Hispanic 34,797 239,380 397,906 % 2013 White alone 54.51% 49.56% 47.61% % 2013 Black or African American alone 25.65% 19.76% 16.58% % 2013 American Indian and Alaska Native alone 0.59% 0.48% 0.62% % 2013 Asian alone 8.09% 19.34% 22.00% % 2013 Native Hawaiian and OPI alone 0.20% 0.18% 0.27% % 2013 Some Other Race alone 4.26% 4.52% 6.91% % 2013 Two or More Races alone 6.70% 6.16% 6.02% % 2013 Hispanic 10.81% 10.68% 14.76% % 2013 Not Hispanic 89.19% 89.32% 85.24%

Population Change Total: Employees (NAICS) n/a n/a n/a Total: Establishements (NAICS) n/a n/a n/a 2013 Total Population 39,014 267,995 466,816 2013 Households 17,531 118,315 192,319 Population Change 2010-2013 1,093 8,574 12,970 Household Change 2010-2013 -13 1,110 887 % Population Change 2010-2013 2.88% 3.31% 2.86% % Household Change 2010-2013 -0.07% 0.95% 0.46% Population Change 2000-2013 909 24,342 26,253 Household Change 2000-2013 -35 6,136 7,983 % Population Change 2000 to 2013 2.39% 9.99% 5.96% % Household Change 2000 to 2013 -0.20% 5.47% 4.33%

Income 2013 Household Income: Median $57,508 $54,985 $58,998 2013 Household Income: Average $79,558 $77,791 $82,071 2013 Per Capita Income $36,395 $36,609 $35,269 2013 Household income: Less than $10,000 1,021 10,779 14,656 2013 Household income: $10,000 to $14,999 1,178 8,862 12,871 2013 Household income: $15,000 to $19,999 697 6,005 10,185 2013 Household income: $20,000 to $24,999 725 5,820 9,412 2013 Household income: $25,000 to $29,999 920 4,715 7,797 2013 Household income: $30,000 to $34,999 826 4,790 7,626 2013 Household income: $35,000 to $39,999 571 4,821 7,514 2013 Household income: $40,000 to $44,999 842 4,225 6,703 2013 Household income: $45,000 to $49,999 893 4,991 7,259 2013 Household income: $50,000 to $59,999 1,455 8,322 13,487 2013 Household income: $60,000 to $74,999 1,617 10,238 16,398 2013 Household income: $75,000 to $99,999 1,986 12,819 20,923 2013 Household income: $100,000 to $124,999 1,339 8,492 15,711 2013 Household income: $125,000 to $149,999 932 5,825 10,245 2013 Household income: $150,000 to $199,999 1,058 6,788 12,702 2013 Household income: $200,000 or more 1,471 10,823 18,830 % 2013 Household income: Less than $10,000 5.82% 9.11% 7.62%

Retail Sales Volume 2013 Childrens/Infants clothing stores $4,711,909 $32,982,831 $53,115,722 2013 Jewelry stores $2,286,708 $19,130,836 $29,218,595 2013 Mens clothing stores $4,850,627 $35,407,691 $54,171,094 2013 Shoe stores $4,151,238 $31,349,252 $51,075,567 2013 Womens clothing stores $7,418,493 $55,668,402 $91,406,373 2013 Automobile dealers $57,447,684 $391,551,415 $651,137,451 2013 Automotive parts and accessories stores $15,358,147 $101,216,977 $160,446,847 2013 Other motor vehicle dealers $2,772,403 $21,089,905 $32,188,463 2013 Tire dealers $6,983,774 $45,922,346 $72,851,804 2013 Hardware stores $140,479 $878,878 $1,365,185 2013 Home centers $1,155,599 $7,801,450 $12,832,655 2013 Nursery and garden centers $1,367,874 $9,836,591 $16,336,051 2013 Outdoor power equipment stores $1,418,047 $13,132,656 $18,311,521 2013 Paint andwallpaper stores $88,333 $768,790 $1,323,870 2013 Appliance, television, and other electronics stores $9,150,732 $61,493,017 $98,789,165

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guranteed, however, and should be verified prior to consummating any transaction 5426- 5440 TELEGRAPH AVE DEMOGRAPHICS OAKLAND, CA 1-mi. 3-mi. 5-mi. 2013 Camera andphotographic supplies stores $853,865 $6,169,305 $10,557,393 2013 Computer andsoftware stores $22,276,423 $150,966,623 $246,564,960 2013 Beer, wine, and liquor stores $4,018,359 $26,748,635 $42,298,919 2013 Convenience stores $18,243,184 $120,904,703 $193,692,909 2013 Restaurant Expenditures $19,282,225 $127,624,979 $201,060,915 2013 Supermarkets and other grocery (except convenience) stores $62,174,353 $425,384,786 $691,059,486 2013 Furniture stores $7,404,563 $47,154,650 $71,808,182 2013 Home furnishings stores $14,888,538 $107,492,904 $173,049,757 2013 General merchandise stores $81,721,482 $575,705,216 $921,621,183 2013 Gasoline stations with convenience stores $53,697,123 $363,818,210 $588,359,887 2013 Other gasoline stations $37,384,579 $256,310,008 $416,521,541 2013 Department stores (excl leased depts) $79,434,774 $556,574,382 $892,402,589 2013 General merchandise stores $81,721,482 $575,705,216 $921,621,183 2013 Other health and personal care stores $5,798,353 $39,345,370 $63,981,583 2013 Pharmacies and drug stores $18,261,956 $121,283,194 $196,607,146 2013 Pet and pet supplies stores $5,037,936 $35,461,085 $56,317,803 2013 Book, periodical, and music stores $1,394,667 $9,623,839 $15,639,604 2013 Hobby, toy, and game stores $1,266,251 $10,185,554 $16,334,643 2013 Musical instrument and supplies stores $201,777 $2,848,017 $4,634,833 2013 Sewing, needlework, and piece goods stores $602,671 $3,890,768 $6,410,033 2013 Sporting goods stores $1,383,022 $10,877,277 $17,371,880

All proposals must be based on “AS IS AND WITH NO FAULTS” and “WHERE IS” condition. The Seller will only consider proposals submitted by invitation from the Seller or its exclusive agent, Starboard Commercial Brokerage, Inc. The Seller reserves the right to reject any or all proposals, or withdraw this offering at any time without notice. Seller reserves the right to choose and negotiate exclusively with any party at any time. The Seller also reserves the right to agree to any terms and conditions at Seller’s sole discretion.

Call for offers deadline will be announced.

All proposals shall be submitted with escrow to be opened with Fidelity National Title Company 50 California Street, #3550 San Francisco, CA 94111 Attn: Rita Lin, Vice President, Branch Manager Ph. 415-837-2312 E-Mail: [email protected]

Due diligence materials will be made available as we receive them. All inquiries and requests are to be directed and submitted to Susan Jordan or Priscilla Wilder of Starboard Commercial Brokerage, Inc., exclusive agents of the seller.

SUSAN JORDAN PRISCILLA WILDER Broker Associate Associate Agent Phone 415-595-1554 Phone 510-367-5355 Fax 415-520-5943 Fax 415-956-2003 [email protected] [email protected] CA BRE License: 01408046 CA BRE#01903660

Starboard TCN Worldwide 33 New Montgomery Street, 1490 San Francisco, CA 94105

The information has been secured by Starboard TCN Worldwide from sources believed to be reliable. It is not guaranteed, however, and should be verified prior to consummating any transaction. 22