CLAUSEN BUILDING | SANTA ANA, CA

OFFERING MEMORANDUM

Clausen Building 410 W 4th St, Santa Ana, CA

1 Activity ID: Z0100324 CLAUSEN BUILDING | SANTA ANA, CA

Exclusively Listed Joseph Lising First Vice President Investments Newport Beach Office Confidentiality & Disclaimer (949) 419-3227 Direct The information contained in the following offering memorandum (949) 419-3210 Fax is proprietary and strictly confidential. It is intended to be reviewed [email protected] only by the party receiving it from Marcus & Millichap and it should CA License: 01248258 not be made available to any other person or entity without the Mitchell Neff written consent of Marcus & Millichap. By taking possession of and Team Manager reviewing the information contained herein the recipient agrees to Newport Beach Office hold and treat all such information in the strictest confidence. The (949) 419-3296 Direct recipient further agrees that recipient will not photocopy or duplicate (949) 419-3210 Fax any part of the offering memorandum. If you have no interest in the [email protected] subject property now, please return this offering memorandum to CA License: 01938395 Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to Richard Salinas prospective purchasers, and to establish only a preliminary level of Team Marketing, Support interest in the subject property. The information contained herein is Newport Beach Office not a substitute for a thorough due diligence investigation. Marcus & (949) 419-3236 Direct Millichap has not made any investigation, and makes no warranty or (949) 419-3210 Fax representation with respect to the income or expenses for the subject Richard [email protected] property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

2 Activity ID: Z0100324 Clausen Building A Unique Opportunity to Own and Operate in , with Additional Income Marcus & Millichap has been selected to exclusively market for sale The Clausen Building, a rare, mixed-use freestanding two-story building located at 410 W 4th St, in Downtown Santa Ana, CA. The property is directly across 4th Street from the Ronald Reagan Federal Building and Courthouse, a hub for the local and national political workforce. The long-term tenant, Crave, allows for additional income to the owner until the year 2023. The basement and upstairs office space allows for an additional 5,750 SF of owner/user potential. A recent concept that has become popular to many downtown owners and businesses is creative work/live office space. creating to update their assets to today’s standards enovations into a creative of¬fice space – a concept that many downtown owners and busi¬nesses are creating to update their assets to today’s standard. CLAUSEN BUILDING | SANTA ANA, CA

Investment Summary

Financial Analysis Premiere Real Estate Fundamentals List Price $2,900,000 The recently approved “light rail line”, the O.C. GLA ±9,400 ~ Streetcar, will have a passenger station directly across from the subject property. Lot Size ± 0.56 AC (4,554 SF) The long-term tenant, Crave Restaurant, allows for Price Per Foot $308.51 ~ an additional monthly income of $12,339 to the owner Property Details Development or Owner/User Potential 410 W 4th St Property Address Santa Ana, CA 92701 Seize the opportunity and transform the upstairs vacant space to a creative work/live office Assessor’s Parcel Number 398-593-04 ~ environment; a new, popular, style within the urbanized downtown areas. Zoning CG, Specific Development Year Built 1918 Submarket Downtown Highlights Stories Two, plus Basement High Density: The immediate three-mile radius ~ boasts approximately 160,180 local residents Household Income: Households within a three-mile ~ radius of the property have an average income of approximately $103,219.

4 Activity ID: Z0100324

CLAUSEN BUILDING | SANTA ANA, CA

Additional Income

Crave Restaurant Clausen Sign Interior Access to 410 & 412

% OF LEASE LEASE MONTHLY ANNUAL LEASE ANNUAL SUITE TENANT GLA Increases Increases To Options GLA COMMENCE EXPIRE RENT RENT TYPE NNN

Crave $12,339.60 $148,075.20 Mod $13,230 E 410 3,640 39% 1/1/2018 12/31/2022 1/1/2019 4% Annual None Restaurant $3.39 PSF $40.68 PSF Gross $1,995 W

Upstairs Vacant 3,000 32%

Basement Vacant 2,760 29%

Total Available 5,760 SF 61% Total $12,339.60 $148,075.20 Monthly NNN $ Total Occupied 3,640 SF 39% Average $4.94 $59.23 Annual $15,225 $

410 W 4th St Ground Floor 3,640 SF Second Floor 3,000 SF Basement 2,760 SF Total 9,400 SF

6 Activity ID: Z0100324

CLAUSEN BUILDING | SANTA ANA, CA

City Overview

Aerial View Downtown Santa Ana

Santa Ana Regional Transportation Center 1000 E Santa Ana Blvd, Santa Ana, CA 92701

Santa Ana, CA Santa Ana is the county seat and second most populous city in Orange County, California. The United States Census Bureau estimated its 2011 population at 329,427, making Santa Ana the 57th most-populous city in the United States. Santa Ana is located in , adjacent to the Santa Ana River, about 10 miles (16 km) away from the California coast. Founded in 1869, the city is part of the Area, the second largest metropolitan area in the United States with almost 18 million residents in 2010. Santa Ana is a very densely populated city, ranking fourth nationally in that regard among cities of over 300,000 residents (trailing only New York City, San Francisco, and Boston). In 2011 Orange County, CA Forbes ranked Santa Ana the fourth-safest city of over 250,000 residents in the United Orange County is a county in the U.S. state of California. As of the 2010 census, the population States. Santa Ana lends its name to the Santa Ana Freeway (I-5), which runs through the was 3,010,232 making it the third-most populous county in California, the sixth-most populous city. It also shares its name with the nearby Santa Ana Mountains, and the Santa Ana in the United States, and more populous than twenty-one U.S. states. It is the second most winds, which have historically fueled seasonal wildfires throughout Southern California. densely populated county in the state, behind San Francisco County to the far north.

The county’s four largest cities by population, Anaheim, Santa Ana (county seat), Irvine, and Huntington Beach, each have a population exceeding 200,000. Several of Orange County’s cities are on the Pacific Ocean western coast, including Huntington Beach, Newport Beach, Laguna Beach, Dana Point, and San Clemente. The northern and central portions of the county are heavily urbanized and fairly dense, despite the prevalence of the single-family home as a dominant land use. The southern portion of the county is more suburban, with less density and limited urbanization. There are several “edge city”-style developments such as Irvine Business Center, Newport Center, and .

The county is known for tourism with attractions like Disneyland, Knott’s Berry Farm, and several popular beaches along its more than 40 miles (64 km) of coastline. It is also known for its political conservatism—a 2005 academic study listed three Orange County cities as among America’s 25 most conservative, making it one of two counties in the United States containing more than one such city. (Maricopa County, Arizona also had three cities on the list.) Orange County is part of the “Tech Coast”.

www. wikipedia.org/wiki/Orange_County,_California

9 Activity ID: Z0100324 CLAUSEN BUILDING | SANTA ANA, CA

Market Overview Projects to Re-Urbanize Santa Ana

OC Streetcar 3rd & Development

The OC Streetcar is a proposed light rail line in Orange County, The property, located on the north side of 3rd Street between California in the United States, running through the cities of Santa Ana Broadway and Main Street represents the largest developable parcel and Garden Grove. The electric-powered streetcar will be operated in the downtown with the greatest opportunity for development. by the Orange County Transportation Authority (OCTA), and will The property is located within the Transit Zoning Code, specifically serve at least twelve stops along its 4.15-mile (6.68 km) route. With within the Downtown sub zone. This zone is applied to the historical the exception of a short loop in downtown Santa Ana, the line will shopping district of Santa Ana, a vital pedestrian oriented area that be double-tracked for its entire length. Most of the route follows the is defined by multi-story urban building types accommodating a original path of the Pacific Electric Railway “Red Cars” that served mixture of retail, office, light service, and residential uses. The Transit Santa Ana in the early 20th century, before being abandoned in 1950. Zoning Code is a form-based code meaning that the development The streetcar is expected to open to the public by 2021. The streetcar standards vary based on the building type proposed. The General will provide a link from Southern California’s regional commuter Plan land use designation for the property is District Center. rail and bus systems to downtown Santa Ana, one of Orange County’s largest centers for employment, arts, and entertainment, http://www.ci.santa-ana.ca.us/ as well as nearby residential neighborhoods, parks, and trails. pba/3rdandBroadwayProject/3rdandBroadwayDevelopmentProject. asp www.wikipedia.org/wiki/OC_Streetcar Surrounding Local Attractions

Downtown Santa Ana Disneyland Angels Stadium The Downtown’s recent revitalization The Santa Ana Zoo at Prentice Park Disneyland is a beloved Southern Angels Stadium is a modern-style process has brought new restaurants, in Santa Ana, California is a 20-acre California destination where ballpark located in Anaheim, bars and unique designers, but (8.1 ha) zoo which hosts more than generations of families have made their California. Since its opening in 1966, it there are also bakeries, bridal shops 270,000 people annually. The zoo Disney dreams come true. Walt Disney’s has served as the home ballpark of the and clothing stores that have been opened in 1952 and is owned and original Disneyland theme park, Los Angeles Angels of Major League a part of the makeup of this city, operated by the City of Santa Ana. which first opened on July 17, 1955, Baseball (MLB), and was also the home with owners who are long time City The city has agreed to keep at least is now divided into 8 extravagantly stadium to the Los Angeles Rams of residents. Downtown Santa Ana 50 monkeys at all times, and now has themed lands: Main Street, U.S.A., the National Football League (NFL) maintains its sense of history and over a dozen species from around Tomorrowland, Fantasyland, Mickey’s from 1980 to 1994. It is the fourth-oldest culture through a number of different the world. The focus of the Santa Ana Toontown, Frontierland, Critter active Major League Baseball stadium, landmarks and businesses. Zoo is recreation, education, and Country, New Orleans Square and behind Fenway Park, Wrigley Field, and www.ocexplore.org/dtsa/ conservation. Adventureland. It is operated year- Dodger Stadium. It hosted the 1967, www.wikipedia.org/wiki/Santa_Ana_ round, 365 days each year.. 1989, and 2010 Major League Baseball Zoo www.wikipedia.org/wiki/Disneyland All-Star Games. www.wikipedia.org/wiki/Angel_Stadium

10 Activity ID: Z0100324 CLAUSEN BUILDING | SANTA ANA, CA

Market Demographics

Population 1 Miles 3 Miles 5 Miles Santa Ana General Information 2022 Population 20,587 160,632 419,739 Incorporated June 1, 1886 2017 Population 20,668 160,180 416,835 Form of Government Six-member Council 2010 Population 20,035 155,076 402,315 City Area-Square Miles 27.3 2000 Population 19,527 149,639 388,902 Huntington Park Registered Voters 99,246 Average Household Income $54,521 Households 1 Miles 3 Miles 5 Miles City Flower Hibiscus 2022 Households 7,114 52,102 133,757 Summer Average Temperature 82.0° F 2017 Households 7,054 51,306 131,181 Winter Average Temperature 69.7° F 2010 Households 6,763 49,335 125,763 Annual Rainfall 12.85” 2000 Households 6,859 48,958 123,380 Elevation 134’ Households by Income 1 Miles 3 Miles 5 Miles Latitude 33°74’N $150,000 or More 14.12% 16.65% 15.87% Longitude 117°88'W $100,000 - $149,000 22.38% 19.25% 18.13% Population (2018 Census) 338,247 $75,000 - $99,999 15.15% 14.56% 14.92% $50,000 - $74,999 18.23% 17.63% 17.72% $35,000 - $49,999 9.93% 11.09% 11.37% Under $35,000 20.21% 20.84% 22.00% 131,181± Average Household Income $99,209 $103,219 $99,508 Households within a 5-mile Radius Median Household Income $77,563 $75,701 $73,343

11 Activity ID: Z0100324 CLAUSEN BUILDING | SANTA ANA, CA

Market Demographics

Population Race and Ethnicity In 2017, the population in your selected geography is 65,940. The population The current year racial makeup of your selected area is as follows: has changed by -4.01% since 2000. It is estimated that the population 48.83% White, 1.43% Black, 0.10% Native American and 3.51% Asian/ in your area will be 65,549.00 five years from now, which represents Pacific Islander. Compare these to US averages which are: 70.42% a change of -0.59% from the current year. The current population is White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific 51.96% male and 48.04% female. The median age of the population in Islander. People of Hispanic origin are counted independently of race. your area is 27.45, compare this to the US average which is 37.83. The People of Hispanic origin make up 90.72% of the current year population population density in your area is 20,987.62 people per square mile. in your selected area. Compare this to the US average of 17.88%.

Households Employment There are currently 14,300 households in your selected geography. In 2017, there are 29,138 employees in your selected area, this is also known as The number of households has changed by 5.97% since 2000. It is the daytime population. The 2000 Census revealed that 23.29% of employees estimated that the number of households in your area will be 14,442 are employed in white-collar occupations in this geography, and 76.91% five years from now, which represents a change of 0.99% fromthe are employed in blue-collar occupations. In 2017, unemployment in this current year. The average household size in your area is 4.25 persons. area is 6.88%. In 2000, the average time traveled to work was 29.00 minutes.

Household Income In 2017, the median household income for your selected geography is $40,342, compare this to the US average which is currently $56,286. The median household income for your area has changed by 24.88% since 2000. It is 697,647 ± estimated that the median household income in your area will be $43,061 five years from now, which represents a change of 6.74% from the current year. The current year per capita income in your area is $12,130, compare this to Population within a 5-mile Radius the US average, which is $30,982. The current year average household income in your area is $54,913, compare this to the US average which is $81,217.

12 Activity ID: Z0100324 Offering Memorandum