Marketplace & Food Hall

MARKETPLACE & FOOD HALL

Shop. Drink. Dine. Hang. Be HERE.

Holliday GP Corp. (“HFF”), California Bureau of Real Estate License #01385740. MARKETPLACE & FOOD HALL

THE OPPORTUNITY

As exclusive advisor, HFF is pleased to offer the rare opportunity to acquire TRADE Marketplace & Food Hall, a recently redeveloped retail center and curated market food hall experience in the heart of the Irvine Business Complex. Fueled by a daytime population of more than 260,000 people within a five minute drive and 60 Class A office buildings within a one-mile radius, this dynamic new project has emerged as one of the most exciting shopping and dining destinations in the Airport Area. Currently 96.6% leased (100% in the food hall component) with the only vacant space coming available in August 2019, TRADE offers an attractive mix of food & beverage, curated health & beauty services, and daily needs tenants, providing an experiential focused shopping center in a core Orange County location that rarely sees properties of this caliber change hands.

2 | | HFF PROPERTY SUMMARY PRICE: $31,000,000 CAP RATE: 5.0% “AS-IS” NOI: $1,549,000 ADDRESS: 2222 - 2272 Michelson Drive Irvine, CA 92612 PROPERTY SIZE: 32,560 SF OCCUPANCY: 96.6% # OF TENANTS: 30 SITE SIZE: 3.03 acres (131,987 SF) PARKING: 176 parking spaces (5.4 per 1,000 SF) YEAR BUILT: 1989 / Renovated 2017 TRAFFIC COUNT: 50,000 VPD FRONTAGE: 331’ A SELECTION OF OUR TENANTS

HIRONORI SEV LASER & AESTHETICS CRAFT RAMEN

(1,653 reviews) (102 reviews) “Once you taste their ramen, “My first impression of this place you’ll understand why they con- was, WOW!” sider it a craft!” “SEV IS THE BEST!”

KRISP KEMPT FRESH LIVING (83 reviews) (268 reviews) “A perfect 10/10” “My favorite and GO TO Acai Bowl destination.” “Gets my haircut perfect every time” “Delicious coffee drinks.”

TWO BIRDS OC WAXING

(403 reviews) (110 reviews) “A MUST HAVE!!!” “I love this place!” “Probably one of the best fried “I’d highly recommend chicken sandwiches I’ve ever had.” this place”

Source: Yelp Reviews HFF | | 3 INVESTMENT THESIS

TRADE Marketplace & Food Hall is a unique, food- anchored generational investment opportunity with stable cash flow and long-term value appreciation in an infill Orange County location. With a significant renovation recently completed, the Property provides an investment comparable to new construction with internet resistant retail tenants.

Shop. Drink. Dine. Hang. Be HERE.

4 | | HFF RECENTLY RENOVATED ASSET RENOVATION OVERVIEW:

The $7.2 million dollar renovation of the Property, which includes an PHYSICAL RENOVATION/REPOSITIONING: $5,250,000 extensive physical renovation, roof replacement, new landscaping and SIGNAGE PROGRAM & RENOVATION: $144,000 hardscaping, and upgrades to base building systems, provides comparable LANDSCAPING RENOVATION: $120,000 quality to new construction. ROOF REPLACEMENT: $98,000

LEASING COSTS (TI’S & LC’S): $1,170,000

OTHER CAPITALIZED EXPENSES: $340,000

TOTAL RENOVATION: $7,200,000

HFF | | 5 INVESTMENT HIGHLIGHTS

OUTSTANDING LOCATION At the center of the Class A Office Building Corridor of the greater Airport Area, TRADE Marketplace & Food Hall is the epicenter for dining and entertainment.

EXPERIENTIAL AND DAILY NEEDS TENANCY Offers a consumer experience that cannot be duplicated on the internet.

BUILT-IN DEMAND HIGH BARRIERS TO ENTRY The Irvine Business Complex draws the largest daytime Infill location and strict Irvine Business Complex (IBC) retail development population in Orange County and continues to rapidly increase standards severely limit future competitive retail projects. its residential density.

LACK OF COMPETITION WITHIN A 1-MILE RADIUS: Less than 2.4% of the real estate within a one-mile radius (±31MSF) is zoned for retail uses; given the strict zoning standards of the IBC, this asset commands a scarcity premium 60 CLASS A 6,217 OFFICE BUILDINGS due to the dearth of competitive retail projects in the immediate PLANNED trade area. OR EXISTING 17.9 MILLION SF MULTIFAMILY UNITS

PASSENGERS TRAVEL THROUGH JOHN WAYNE 10.5 MILLION AIRPORT ANNUALLY

6 | | HFF IMPRESSIVE DEMOGRAPHICS With nearly 160,000 people within a 3-mile radius and average household incomes exceeding $124,000, TRADE is ideally situated within this affluent market.

EXCEPTIONAL FOOD AND BEVERAGE CONCEPTS

Offering a breadth of artisan and chef inspired cuisine options, the project fulfills a niche that was previously missing from the market.

CAPTURING SALES FROM NEARBY OFFICE EMPLOYEES TRADE provides a much needed amenity to the surrounding office employee base and total daytime population of nearly 250,000 in a drastically under-served retail trade area.

WITHIN A 3-MILE RADIUS

TOTAL $2.9B BUSINESSES IN ANNUAL RETAIL SALES 17,569

AVG HH 249,741 INCOME TOTAL EMPLOYEES $124,068

HFF | | 7 DEMAND DRIVERS SKYPARK BUSINESS CENTER OFFICE TENANT DEMAND - Exceptional demand from the 80,000 SF surrounding Class A office tenants drawing from nearly 60,000 IRVINE COMPANY employees within a 1-mile radius TERRACE TOWER USC ORANGE COUNTY CENTER (0.1 MILES) - Provides classes for working professionals to pursue graduate degrees

ALLERGAN CORPORATE CAMPUS (0.1 MILES) - A 525,000 SF corporate campus within walking distance to TRADE 1900 MAIN ST. 172,250 SF EXECUTIVE PARK JOHN WAYNE AIRPORT (0.5 MILES) - 15 BUILDINGS 580,000 SF 10.5 million passengers annually (313,040 VPD)

CENTRAL PARK WEST (0.5 MILES) - JOHN WAYNE AIRPORT A 12 neighborhood complex with 1,380 urban style units +/- 10.5 MILLION PASSENGERS/YEAR PARK PLACE (0.5 MILES) - A 105 acre mixed-used complex with 2.5 million SF of office and 520 multi-family units

THE BOARDWALK (0.5 MILES) - 540,000 SF of creative office W A L space with an open air format K T 2211 I TUSTIN LEGACY RESIDENTIAL (2.2 MILES) - MICHELSON M 284,400 SF E

4,600 unit development KILROY REALTY : MACARTHUR BLVD. A P P FLIGHT AT TUSTIN LEGACY (2.2 MILES) - R 870,000 SF of modern creative office space 2151 O X

MICHELSON I 93,000 SF M UNIVERSITY OF CALIFORNIA AT IRVINE (3.0 MILES) - A 32,750 students 18552-18662 T MACARTHUR E L

121,144SF Y

CONCORDIA UNIVERSITY IRVINE (3.6 MILES) - 4,046 students 5

NIGHT/WEEKEND TRAFFIC - Over 15,000 multifamily units I N

either newly developed, under construction, or approved in the U

Irvine Business Complex (IBC) E S

8 | | HFF IRVINE CONCOURSE IRVINE BUSINESS COMPLEX EQUINOX PWC ORACLE TOWER (IBC) QUICK FACTS 272,887 SF EL TORITO GRILL JOHN HANCOCK MCCORMICK & SCHMICK’S 362,800-ACRE 57% OF IBC PLANNING BUSINESSES JAMBOREE AREA ARE OFFICE CENTER 1,600,000 SF IRVINE COMPANY MULTIFAMILY UNITS EITHER UNDER CONSTRUCTION OR 7,032 APPROVED LAKESHORE TOWERS I & II 649,294 SF GE REAL ESTATE ASTORIA @ 24 HOUR CENTRAL PARK FITNESS 240 MULTI-FAMILY UNITS (313,040 VPD)

18201 VON KARMAN IRVINE TOWERS 18301 VON 231,109 SF 1,123,961 SF KARMAN NEW YORK LIFE IRVINE COMPANY 225,729 SF CENTRAL PARK WEST 1,380 UNITS W A L 18401 VON K 2211 T KARMAN IM MICHELSON 114,724 SF 284,400 SF E

KILROY REALTY : A P VON KARMAN AVE. P R O

I M

MICHELSON DR. ALLERGAN A CORPORATE CAMPUS T 525,000 SF E MASSIVE DAYTIME

POPULATION WITH

M OVER 60,000 PEOPLE I

N LIMITED RETAIL AND U

T FOOD OPTIONS IN E

S THE IMMEDIATE AREA

HFF | | 9 10 | | HFF DEMOGRAPHICS

1-MILE 3-MILE 5-MILE 2019 Population 10,908 159,135 544,318 2010 to 2019 Pop. 56.3% 12.3% 6.9% Growth Households 6,257 58,037 173,894 Avg HH Income $129,021 $124,068 $123,992

ORANGE COUNTY QUICK FACTS 3,222,381 2.8% UNEMPLOYMENT POPULATION RATE

TOTAL RETAIL 36.6 SALES MEDIAN 190,000 $53.9 B AGE JOBS ADDED IN 2017

HFF | | 11 Investment Sales Advisors Debt Advisor Leasing Contact

BRYAN LEY JUSTIN KUNDRAK GLEB LVOVICH DANIEL TYNER TONY ENSBURY MATT STEWART ANNIKA COLOMBI MANAGING DIRECTOR DIRECTOR MANAGING DIRECTOR DIRECTOR ASSOCIATE DIRECTOR CBRE 310.407.2120 310.407.2145 949.798.4115 949.798.4125 310.407.2153 310.407.2140 949.725.8539 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] CA License #01458927 CA License #01994398 CA License #01496699 CA License #01959818 CA License #02061712 CA LICENSE #01956812

Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are 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 advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and 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 to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner hfflp.com 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 HFF LOS ANGELES 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 10250 CONSTELLATION AVE SUITE 1000 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. CENTURY CITY, 90067 The information contained herein is subject to change. 310.407.2100