mission valley | , CA

Holliday Fenoglio Fowler, L.P., acting by and through Holliday L.P., Holliday Fenoglio Fowler, GP Corp., a real estate broker licensed with the Department of Real Estate, License Number 01385740 potential located in San Diego’s most “urbanized” suburban submarket most “urbanized” in San Diego’s potential located A walkable, amenity-oriented, mixed-use asset with exciting value enhancement value mixed-use asset with exciting amenity-oriented, A walkable, opportunity HFF, as exclusive advisor, is pleased to present the opportunity to acquire Plaza 2020 (the “Property”), an institutional-quality 10-story office tower totaling 105,796 SF located in the heart of Mission Valley within the city of San Diego, California. Ideally located immediately off Interstate 8 and within short walking distance of the Rio Vista Trolley Station, Plaza 2020 benefits from unparalleled access and visibility. Moreover, the Property offers arguably the best walkability in the submarket with convenient access to over 2.5 million SF of retail amenities and nearly 2,000 multifamily units within a 0.5 mile radius.

Mission Valley, which still offers a relative rental rate value to neighboring submarkets, is poised for explosive office demand growth driven by a surge of residential and retail development. Currently 98% leased with 87% rolling in the next 5 years and in-place rents that are more than 13% below- market, Plaza 2020 provides the opportunity to capitalize on significant upside potential in the near term.

/ pg 2 by the numbers

net rentable 105,796 area

98% leased

ten no. of floors

parking 481 spaces*

4.5/1000 parking ratio*

3.16 AC land area

avg. floor ±10k SF plate

*Available spaces per a Reciprocal Parking Agreement pg 3 / In-Place Income with Future Value Add Potential

With average in-place rents 13.2% below market, investors will have the gross rents (upon expiration) vs market rent opportunity to capitalize on significant $4.50 50.0% upside potential in the near term as 87% $3.97 45.0% $4.00 40.0% $3.78 of the NRA expires over the next five $3.47 $3.59 35.0% $3.50 $3.49 $3.29 years. An investor may capture significant $3.28 30.0% $3.05 29.3% value creation through modernization $3.00 $2.98 $3.07 25.0% $2.89 $2.75

20.0% ExpiringRSF and enhancement of the common areas $2.63

Rent (PSF/Mos.) Rent $2.50 $2.39 15.0% to further differentiate Plaza 2020 from 15.8% 10.0% competing buildings, increase tenant $2.00 11.5% 10.4% 20.4% 10.6% 5.0% retention probability, and justify higher $1.50 0.0% 0.0% rental rates upon expiration.

% RSF Expiring Weighted Average In-Place Rent Weighted Average Market Rent

/ pg 4 Upside Through enhancement of the Common Areas, Retail Repositioning and Asset Rebranding Potential enhancement opportunities include: ENHANCEMENT of the Common Areas: Already a strong contender within the class A competitive set in Mission Valley, Plaza 2020 offers an investor the ability to further solidify the asset as one of the most desirable in the submarket through a light enhancement of the common areas. With a minimal capital investment, an owner can improve the experience offered by the asset to increase rents and tenant retention.

A collaborative outdoor work environment with Retail Repositioning: Plaza 2020 wifi access in the exterior common areas presents a unique opportunity to enhance value by repositioning the ground floor retail spaces and improving the tenancy. By promoting retail uses that are more synergistic with the office space, an investor can create a more modern work environment that will attract the best tenants in the submarket. Potential updated retail tenancy could include a café, spin studio, yoga studio, gelato shop, juice bar, or a wellness spa to name a few.

Asset Rebranding: Taking advantage of Aesthetic updates to the entry, Plaza 2020’s high visibility to both Interstate 8 (424k lobby and restrooms cars per day) and Camino del Rio North (20,570 cars per day), a new identity for the Property could potentially be established through the addition of new building top signage, prominent monument signage and/or main entry signage. Attractive Basis Below Replacement Cost

The Property provides investors the opportunity to acquire an institutional quality asset in an irreplaceable Activate 1st floor rooftops as gardens for location significantly below replacement cost, which aesthetic appeal or usable terraces * is estimated to be ±$450 PSF.

*Neither Seller nor HFF make any representations as to the feasibility of such improvements. Prospective purchasers are expected to rely solely on their own investigations. pg 5 / coronado island 12 minute drive San Diego international airport 10 minute drive downtown 10 minute drive

trolley line connecting to downtown

existing RESIDENTIAL existing retail 1. Presidio View, 350 apts 14. Fashion Valley, 1.8M SF San Diego Union Tribune Campus Redevelopment 2. Avalon Fashion Valley, 161 apts Super Regional Mall 3. River Scene, 108 condos 15. Hazard Center, 130K SF 4835 glasoe lane 4. Rio Del Oro, 50 condos Retail Center 5. RiverFront, 229 condos 16. 200K SF Retail Center 6. Mission Gate, 98 condos 17. , 7. Park Villas South, 250 condos 1.7M SF Super Regional 8. Park Villas North, 296 condos Mall 9. The Lido, 220 apts 18. Park Valley Center, 180K SF Community Center 10. Missions at Rio Vista, 464 condos 19. 18K SF Strip Center 11. Mission Walk, 56 condos 20. 21K SF Strip Center 12. Promenade at Rio Vista, 970 apts 13. River Colony, 300 condos

notable mission valley developments

UNDER CONSTRUCTION Mission Valley Suites Hotel, 236 keys Millennium Mission Valley, mixed-use SDUT Campus Redevelopment, office Civita Development, mixed-use Urbanization of Mission Valley PLANNED Riverwalk Redevelopment, mixed-use New residential construction is reaching a Hazard Center Project, mixed-use historic high in the Mission Valley submarket. Town & Country Resort & Convention Ctr, mixed-use There are over 7,700 units existing in Mission Valley, 762 units have been completed since 2015 and currently over 2,500 units are under PROPOSED construction, planned or proposed within a 895 Hotel Circle South, parking garage 3-mile radius of the Property. The increasing 4835 Glasoe Lane, retail & office residential density will support additional Qualcomm Stadium Redevelopment, mixed-use office demand, thus driving higher occupancy and bolstered rent growth. / pg 6 mission valley suites hotel riverwalk Redevelopment 895 Hotel Circle South friars road 1 town & country resort / convention center Redevelopment 14 2 existing retail 3 4 5 15 16 6 hazard center project

8 7 Camino Del rio south millennium mission valley Camino De la reina 18

17 Camino Del rio north 10 san diego river 9

11 Camino Del Este 19

Camino De la reina 20 13 12

civita development

qualcomm way qualcomm stadiuM redevelopment trolley line connecting to SDSU & east county pg 7 / 233,296 full time population MISSION VALLEY snapshot 164,185 day time population

3 mile radius 7.5% population growth since 2010

population is expected to grow by 5% over the next 5 years!

10.7K RESIDENTIAL HAZARD CENTER UNITS

trolley line connecting to Old town & downtown Park Villas North, 296 Condos 15 Min Walk

6M SF RETAIL Park Villas South, 250 Condos 13 Min Walk

Food Court - 28 HOME restaurant options 7K HOTEL ROOMS WESTFIELD MISSION VALLEY 1.2M SF with 131 stores and services.

200 RESTAURANTS

Camino Del rio north 424,000 CARS PER DAY Camino Del rio SOUTH 12 trolley stops drive times Downtown 10 min commute North Beach Cities 21 min commute Carmel Valley 16 min commute Rancho Santa Fe 26 min commute 15 Corridor 20 min commute East County 13 min commute

/ pg 8 Mission Valley’s Most Walkable, Amenity-Oriented Location

Plaza 2020 benefits from a strong array of local amenities including walkable access to 2.5 million SF of retail and service amenities, nearly 2,000 residential units, as well as convenient access to roughly 6 million SF of retail centers within the overall Mission Valley submarket including centers such as the Westfield Mission Valley (adjacent to the Property), , Friars Mission Center, Rio Vista Shopping Center and Fenton Marketplace.

Aquatera, 254 Apts 31 Min Walk Frame & Focus, 60 Condos

Circa37, 306 Apts Lucent I, 30 Apts West Park, 612 Apts 30 Min Walk 27 Min Walk

Versa at Civita, 150 Apts CIVITA MASTER PLANNED COMMUNITY 14 Min Walk 230 acres which will be comprised of 4,500 residential units, civic uses, parks, 400,000 SF retail and 420,000 SF office. Additional land uses provide option for a school. Missions at Rio Vista, 464 Condos 11 Min Walk

The Lido, 220 Apts Mission Walk, 56 Condos 9 Min Walk 9 Min Walk

san diego river

Camino Del Este The Promenade, 970 Apts 11 Min Walk River Colony, 300 Condos 3 Min Walk

trolley line connecting to SDSU & east county

Camino De la reina qualcomm way 424,000 CARS PER DAY

pg 9 / CONTACTS investment sale team

Nick Frasco Nick Psyllos Director Senior Managing Director 858.812.2354 858.812.2352 [email protected] [email protected] CA License #01819400 CA License #00788060

Ryan Gallagher Kara Mathis, CFA Senior Managing Director Associate 949.798.4100 858.242.6220 [email protected] [email protected] CA License #01269918 CA License #01924947

Taylor Bergthold Real Estate Analyst 858.812.2356 [email protected] CA License #02014647 capital markets team

Patrick Burger Tim Wright Director Senior Managing Director 858.812.2347 858.812.2341 [email protected] [email protected] CA License #01820848 CA License #00947194 leasing team

Richard Gonor Tony Russell Executive Vice President Managing Director 858.410.1243 858.410.1213 [email protected] [email protected] CA License #01142178 CA License #01275372

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property 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.