El Camino Real

San Carlos, CA RETAIL OWNER/USER 1336 DEVELOPMENT OPPORTUNITY El Camino Real

1336 El Camino Real

1 CAPITAL MARKETS | RETAIL INVESTMENT PROPERTIES OFFERING MEMORANDUM TABLE OF CONTENTS INVESTMENT01 OVERVIEW...... 3 Investment Summary Investment Highlights

LOCATION02 OVERVIEW...... 6 City Overview

AREA03 OVERVIEW...... 9 PROPERTY04 OVERVIEW...... 18 Property Description Parcel Map

INVESTMENT ADVISORS

JAMES KAYE JAY GOMEZ LINDSEY SNIDER RYAN KIRCHER Senior Vice President Senior Vice President Vice President Associate +1 408 453 7419 +1 408 453 7459 +1 408 467 7556 +1 408 453 7449 [email protected] [email protected] [email protected] [email protected] Lic. 01052330 Lic. 01364065 Lic. 01443387 Lic. 02063857 2 INVESTMENT01 OVERVIEW

OFFERING MEMORANDUM 3 INVESTMENT OVERVIEW

INVESTMENT SUMMARY

Offering Price $2,000,000

Occupancy Delivered vacant

Total Building Area +/- 1,923 SF

Total Land Area +/- 6,831 SF (0.16 acres)

Type Retail / Office

Ownership Fee simple

INVESTMENT HIGHLIGHTS

Transit oriented location just one mile from the San Carlos Convenient access to Interstate 101 via the Whipple Road exit Caltrain Station and one and a half miles from the Redwood City Caltrain Station Transitioning area with multiple redevelopment projects in the surrounding area High profilehistoric downtown San Carlos location on main thoroughfare Walking distance to Laurel Street, San Carlos' main downtown corridor Favorable Zoning: MU-SB: Mixed Use South Boulevard

The building is currently 50% leased to one tenant on a MTM basis, so the property can be delivered vacant upon sale

4 REDWOOD CITY CALTRAIN STATION

1.5 MILES REDWOOD CITY

SAN CARLOS

1336 El Camino Real

LAUREL ST EL CAMINO REAL CAMINO EL

SAN CARLOS CALTRAIN STATION

0.5 MILES OFFERING MEMORANDUM5 LOCATION02 OVERVIEW

6 LOCATION OVERVIEW

SAN CARLOS, CA San Carlos is a city in San Mateo County, California on the San Francisco Peninsula, about halfway between San Francisco and San Jose. It is a small residential suburb located between Belmont (north) and Redwood City (south).

24 SOUTH OF 32 SOUTHWEST OF 25 NORTH OF MILES SAN FRANCISCO MILES OAKLAND MILES SAN JOSE 1336 El Camino Real San Carlos, "The City of Good Living", aims for a "small town" feel. Its main downtown area is composed mostly of small shops and restaurants. San Carlos was the first city in California to open a charter school (San Carlos Charter Learning Center), and its schools rank consistently well in statewide lists.

PUBLIC TRANSPORTATION

Commuter Rail Drive Distance EL CAMINO REAL San Carlos Commuter Rail (Caltrain) 3 min 0.9 mi Redwood City Commuter Rail (Caltrain) 4 min 1.4 mi

Airport Drive Walk Distance Drive Distance San Francisco International Airport 18 min 13.3 mi San José International Airport 25 min 21.7 mi Oakland International Airport 36 min 28.8 mi

OFFERING MEMORANDUM 7 TOP EMPLOYERS According to the City's 2017 Comprehensive Annual REDWOOD CITY Financial Report, the top employers in the city are:

# of # Employer Employees

1 Palo Alto Medical Foundation 500 1336 2 Natera 405 El Camino Real

3 L-3 Communications 389

4 Pacific Gas and Electric 331

5 Recology 240

6 Novartis 230

EL CAMINO REAL 7 The Home Depot 221

8 Check Point 208

9 Kelly-Moore Paints 193

10 Delta Star 188

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8 AREA03 OVERVIEW

OFFERING MEMORANDUM 9 THE SAN FRANCISCO BAY AREA IS HOME TO MORE THAN SEVEN MILLION PEOPLE

SAN FRANCISCO BAY AREA OVERVIEW

The San Francisco Bay Area has the unique distinction of being the most The Bay Area serves as the financial center of the west coast, gateway to innovative place in the world, the byproduct of a highly-educated and the Pacific, and the world’s high-tech innovation capital. These intrinsic productive workforce, a deep venture capital pool, world class educational attributes have solidified the Bay Area’s position as one of the nation’s and research organizations, excellent transportation infrastructure, and primary economic engines, and will continue to deliver a competitive superb quality of life. advantage in the evolving global economy.

10 TALENTED, WELL-EDUCATED LABOR FORCE

CRITICAL MASS OF KNOWLEDGE WORKERS

#10 19.62% SAN JOSE of California’s Population Lives in the Bay Area - 7.15 Million People

San Jose is the 10th Largest City in The United States (Unchanged from 2010 Census)

WORLD-CLASS EDUCATIONAL AND RESEARCH ORGANIZATIONS

of the Bay Area generates of all U.S. Top ten graduate school programs in business, 15% patents, more than double the 60 medicine, science and engineering are located next largest region, New York in the Bay Area – more than any other region in the country: Boston 43, New York 29 The San Francisco Bay Area ranks first in tech job creation, adding nearly 90,000 more jobs in 2016 than graduates

OFFERING MEMORANDUM 11 INNOVATIVE, HIGHLY PRODUCTIVE ECONOMY

FORBES PLACES THE BAY AREA AND SILICON VALLEY ATOP THE ANNUAL ASSESSMENT OF THE ‘BEST CITIES FOR JOBS’ FOR THE THIRD YEAR IN A ROW.

TOP PERFORMING PRIME BLEND OF ELITE CORPORATIONS ECONOMIC OUTPUT AND WELL FUNDED START-UPS 18TH 19TH 20TH SAUDI ARABIA SF BAY AREA SWITZERLAND 40% OF ALL TECH INVESTMENTS 3RD 3RD in Total Number of Fortune Bay area companies attracted 40% of Bay Area GDP in 2015 was $837.5B, which 500 Companies with 33 after all technology investments made in the would Rank 18th in The World Between New York and Chicago U.S. in the first quarter of 2018 – the Bay Turkey and Netherlands Area region accounted for more than all other regions in the country combined

12 REGIONAL INTANGIBLES

DIRECT ACCESS TO EXCEPTIONAL PUBLIC TRANSPORTATION FOREIGN TALENT AND CAPITAL AND QUALITY OF LIFE

TH BART IS THE 5TH BUSIEST REGIONAL RAIL SYSTEM BY 41% 5 RIDERSHIP (behind New York, Washington DC, Chicago of Silicon Valley companies have BUSIEST and Boston), 2.6X the average daily ridership of Los reported their key founders Angeles. Combined with Caltrain and VTA Light Rail, were immigrants the Bay Area’s public transportation system is the best in the Western U.S.

SFO OFFERS NON-STOP FLIGHTS TO MORE 41 DIRECT FLIGHTS EVERY DAY FROM THE MAJOR ASIAN THAN 45 INTERNATIONAL CITIES ON 39 ECONOMIC CENTERS. FLIGHT TIMES FROM: INTERNATIONAL CARRIERS.

Tokyo 9 Per Day (9h 20m) The Bay Area’s largest airport connects Seoul 10 Per Day (10h 40m) non-stop with 79 cities in the U.S. on Taipei 10 Per Day (11h 20m) 13 domestic airlines Beijing 4 Per Day (11h 20m) Hong Kong 8 Per Day (12h 40m)

SAN FRANCISCO HAS BEEN VOTED THE #1 #1 BEST U.S. CITY TO VISIT BY CONDE NAST FOR 20 OF THE LAST 23 YEARS

OFFERING MEMORANDUM 13 SAN FRANCISCO BAY AREA ECONOMIC DRIVERS

WORLD CLASS RESEARCH INSTITUTIONS VENTURE CAPITAL FUNDING IN SILICON VALLEY The Bay Area is home to the nation’s largest concentration of basic and applied research facilities in the country with six leading research universities, five national laboratories The San Francisco Bay Area is home to the highest and numerous private and independent research labs and organizations. concentration of venture capital firms in the world. By providing capital and management expertise to burgeoning companies, venture capitalists facilitate LEADING RESEARCH UNIVERSITIES NATIONAL LABORATORIES ground-breaking innovation. Companies such as DD Stanford University DD Lawrence Berkeley Laboratory Apple, Google, Cisco, Intel and Oracle were all DD University of California - Berkeley DD Lawrence Livermore Laboratory funded by venture capitalists before they grew to be the multinational corporations they are now. DD University of California - San DD Ames Research Center Proximity to venture capitalists has proven to be a Francisco DD SLAC National Accelerator competitive advantage for Bay Area companies to DD Santa Clara University Laboratory obtain funding. The Bay Area remains the center DD San Jose State University DD Sandia National Laboratories of the venture capital world, receiving 40% of all venture capital invested in the U.S. during the first DD San Francisco State University (Livermore) quarter of 2018.

14 Food & Beverages BAY AREA Energy & Utilities TRANSPORTATION Electronics The Bay Area enjoys a superlative transportation Industrial infrastructure, providing a logistical base that Consumer Products & Services ensures its companies are among the most globally connected in the world. Computer Hardware & Services

Software (non internet/mobile) AIRPORTS Healthcare The Bay Area has three major international airports, the San Francisco International Airport (SFO), the Mobile & Telecommunications Oakland International Airport (OAK) and the Mineta Internet San Jose International Airport (SJC). Combined in

$0 $1 $2 $3 Billions 2016, the three airports carried over 75.9 million passengers. Serving 63 passenger airlines and 8 Q4 2015 Q3 2016 Q4 2016 cargo airlines, SFO is the second largest airport in California, the seventh busiest airport in the United States, and the twenty third largest airport in the world. VENTURE CAPITAL INVESTMENTS BY SECTOR Q2 2016 Venture capital funding has contributed to the Bay Area’s leading position in global innovation as it has played a crucial role in facilitating the repeated waves of major FREEWAYS new technologies. The high level of venture capitalist confidence can be attributed to The major freeways in the San Francisco Bay Area the vibrant M&A market and strong IPO environment. The technology convergence in are Interstates 80, 680, 280, 880, 5, 380, 580, 780, social, mobile, and cloud platforms is also creating more business opportunities for 980 and Highway 101. These freeways serve as the entrepreneurs based in Silicon Valley. connecting roads for many professionals traveling to and from San Francisco and the nine counties that the region encompasses.

Source: PwC/NVCA MoneyTree™ Report, Data: Thomson Reuters OFFERING MEMORANDUM 15 BAY AREA MASS TRANSIT

Sonoma Napa

Fairfield Petaluma 80

101 Vallejo 680

Novato San Pablo Bay 780

Pittsburg 4 Antioch 80 Concord San Rafael 4 RICHMOND Richmond

580 Walnut Creek Mill Valley Berkeley

101

MACARTHUR 13 680 Oakland EMBARCADERO WEST OAKLAND San Ramon

San Francisco 22nd St San Francisco COLISEUM 205

OAK San Leandro Bayshore 580 DALY CITY Dublin 580 BAY FAIR Daly City Pleasanton Livermore San Francisco Bay Hayward 280 South San Francisco 1 SAN BRUNO SFO AirTrain 92 84 Union City MILLBRAE Broadway 880 Burlingame San Mateo1336 BAY AREA RAPID TRANSIT (BART) Hayward ParkEl Camino Real 680 San Mateo Hillsdale 84 Fremont BART is the heavy-rail public transit and subway system that connects San 92 Belmont San Carlos Francisco with cities in the East Bay and suburbs in northern San Mateo FREMONT Redwood City 101 County. BART operates five lines on 112 miles (180 km) of track with 46 280 Atherton Palo Alto (Weekends Only) Menlo Park stations in four counties. With an average weekday ridership of 429,000 Palo Alto 35 Stanford Stadium Milipitas California Ave passengers and 126 million trips annually. San Antonio Rd 237

Downtown Mountain View 880 1 Sunnyvale SJC Lawrence AMTRAK 280 Sunnyvale Santa Clara San Jose College Park There are several Amtrak stations throughout the Bay Area. Major stations 84 San Jose 101 Cupertino Tamien in Martinez and Emeryville feature Coast Starlight and Zephyr service. The 17 Capitol Starlight also serves Oakland and San Jose. The Capitol Corridor connects 87 85 Blossom Hill Bay Area cities to Sacramento and Auburn, and features BART transfer Los Gatos stations at Richmond and the Oakland Coliseum. The San Joaquin line serves Sacramento and Oakland, with trains to Bakersfield.

9 101 MorganCALTRAIN Hill 1 MorganCaltrain Hill is a California commuter rail line on the San Francisco Peninsula and in the Silicon Valley. The northern terminus of the rail line is in San NSITE 1st St & Route 237 San Martin 17 Francisco, at 4th and King streets and its southern terminus is in Gilroy. Bay Area Transit (BART) Trains operate out of San Francisco and San Jose almost hourly on a TRANSER Terminal STATION Station daily152 basisGilroy every weekday, with more frequent service provided during Gilroy

Station CalTrain commute hours and for special events.

16 1 SFO AirTrain 101

© 2017 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. 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. All Rights Reserved. Sources: CBRE Mapping Services (877) 580-4674; ESRI, StreetPro. 1336 El Camino Real

17 PROPERTY04 OVERVIEW

OFFERING MEMORANDUM PROPERTY DESCRIPTION

PROPERTY DESCRIPTION

LOCATION # OF STORIES 1336 El Camino Real, San Carlos, CA 94070 The building consists of one (1) story.

SITE RESTROOMS The Property is located mid-block between Belmont Avenue The building has two (2) restrooms. and Howard Avenue on the El Camino.

ROOF TYPE/MATERIAL LAND AREA Built-up. The Property consists of one parcel (APN: 051-334-130)

totaling approximately 6,831 SF of land area or 0.16 acres. CONSTRUCTION Masonry construction with a concrete foundation and brick/ BUILDING AREA stone exterior walls. The subject property consists of one single-story retail/office

building totaling approximately 1,923 square feet. ZONING The Property is zoned MU-SB: Mixed Use South Boulevard. ACCESS This district is intended to facilitate the transformation of The property has one (1) access point off of El Camino Real. the southern portion of El Camino Real into a multi-modal, mixed use corridor. The physical form varies to reflect the urban character of the El Camino Real corridor and to PARKING transition to surrounding, lower-density districts. This district Six (6) free surface spaces plus additional street parking allows a mix of residential development of up to 50 units per available. net acre and retail and commercial uses, as well as hotels and other commercial uses oriented toward a regional TRAFFIC COUNTS market. El Camino Real & Whipple Ave. – 28,430 ADT El Camino Real & Morse Blvd. – 26,830 ADT Bayshore Fwy. & E Bayshore Rd. – 210,000 ADT

OFFERING MEMORANDUM 19 Tax Map 1336 El Camino Real, San Carlos, CA 94070

PARCEL MAP

1336 El Camino Real

Limitation of Liability for Informational Report IMPORTANT – READ CAREFULLY:THIS REPORT IS NOT AN INSURED PRODUCT OR SERVICE OR A REPRESENTATION OF THE CONDITION OF TITLE TO REAL PROPERTY. IT IS NOT AN ABSTRACT, LEGAL OPINION, OPINION OF TITLE, TITLE INSURANCE COMMITMENT OR PRELIMINARY REPORT, OR ANY FORM OF TITLE INSURANCE OR GUARANTY. THIS REPORT IS ISSUED EXCLUSIVELY FOR THE BENEFIT OF THE APPLICANT THEREFOR, AND MAY NOT BE USED OR RELIED UPON BY ANY OTHER PERSON. THIS REPORT MAY NOT BE REPRODUCED IN ANY MANNER WITHOUT FIRST AMERICANʼS PRIOR WRITTEN CONSENT. FIRST AMERICAN DOES NOT REPRESENT OR WARRANT THAT THE INFORMATION HEREIN IS COMPLETE OR FREE FROM ERROR, AND THE INFORMATION HEREIN IS PROVIDED WITHOUT ANY WARRANTIES OF ANY KIND, AS-IS, AND WITH ALL FAULTS. AS A MATERIAL PART OF THE CONSIDERATION GIVEN IN EXCHANGE FOR THE ISSUANCE OF THIS REPORT, RECIPIENT AGREES THAT FIRST AMERICANʼS SOLE LIABILITY FOR ANY LOSS OR DAMAGE CAUSED BY AN ERROR OR OMISSION DUE TO INACCURATE INFORMATION OR NEGLIGENCE IN PREPARING THIS REPORT SHALL BE LIMITED TO THE FEE CHARGED FOR THE REPORT. RECIPIENT ACCEPTS THIS REPORT WITH THIS LIMITATION AND AGREES THAT FIRST AMERICAN WOULD NOT HAVE ISSUED THIS REPORT BUT FOR THE LIMITATION OF LIABILITY DESCRIBED ABOVE. FIRST AMERICAN MAKES NO REPRESENTATION OR WARRANTY AS TO THE LEGALITY OR PROPRIETY OF RECIPIENTʼS USE OF THE INFORMATION HEREIN.

Tax Map 1336 El Camino Real, San Carlos, CA 94070 3/5/2019 Page 1 (of 1)

1 MILE 3 MILES 5 MILES PLACE OF WORK 2018 Businesses 1,802 6,962 12,140 5 MILES 2018 Employees 19,022 90,754 178,865

POPULATION 2018 Population - Current Year Estimate 19,243 138,783 266,870 2023 Population - Five Year Projection 19,953 143,458 276,474 2010 Population - Census 17,835 129,781 248,791 2010-2018 Annual Population Growth Rate 0.93% 0.82% 0.85% 3 MILES 2018-2023 Annual Population Growth Rate 0.73% 0.66% 0.71%

AGE 2018 Median Age 41.30 39.60 40.60

HOUSEHOLDS 2018 Households - Current Year Estimate 7,950 51,876 101,156 1 MILE 2023 Households - Five Year Projection 8,216 53,615 104,813 2010 Households - Census 7,437 48,478 94,527 2010-2018 Annual Household Growth Rate 0.81% 0.82% 0.82% 1336 2018-2023 Annual Household Growth Rate 0.66% 0.66% 0.71% El Camino Real 2018 Average Household Size 2.40 2.63 2.60

HOUSEHOLD INCOME 2018 Households 7,950 51,876 101,156 2018 Average Household Income $159,576 $146,543 $158,206 2023 Average Household Income $186,418 $169,729 $182,411 2018 Median Household Income $108,135 $99,837 $111,281 2023 Median Household Income $131,674 $114,618 $128,255 2018 Per Capita Income $65,375 $55,426 $60,563 2023 Per Capita Income $76,063 $64,077 $69,729

HOUSING VALUE 2018 Owner Occupied Housing Units 4,347 28,374 58,440 2018 Median Value of Owner Occ. Housing Units $1,147,516 $1,053,309 $1,071,457 2018 Average Value of Owner Occ. Housing Units $1,246,692 $1,144,242 $1,179,705

DAYTIME POPULATION 2018 Daytime Population 27,309 159,673 310,985 Daytime Workers 18,902 97,120 188,432 Daytime Residents 8,407 62,553 122,553

OFFERING MEMORANDUM 21 1336 El Camino Real

EL CAMINO REAL

LAUREL ST

22 AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

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

DISCLAIMER This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves 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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

INVESTMENT ADVISORS

CAPITAL MARKETS | RETAIL INVESTMENT PROPERTIES OFFERING MEMORANDUM

© 2019 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. PMStudio_April2019.