1630 I STREET Sacramento, CA

DEVELOPMENT OPPORTUNITY 1630 I STREET Sacramento, CA

EXCLUSIVE LISTING AGENTS:

MIKE RILEY, Senior Managing Director KELLY RIVETT, Senior Managing Director 916 569 2329 916 569 2385 [email protected] [email protected] CA RE License #00955165 CA RE License #01249433

Although all information furnished regarding property for sale, rental, or fi nancing is from sources deemed reliable, such information has not been verifi ed and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or fi nancing, or withdrawal without notice and to any special conditions imposed by our principal. 16-1660•04/17 1630 I STREET

TERMS OF OFFERING

On behalf of the Owner of the property referenced herein (“Property”) present this Confi dential Offering Memorandum (“Memorandum”) to assist the recipient(s) (“You” or “Your”) in evaluating the Property and it is intended for Your use only. This Memorandum contains brief, selected information pertaining to the Property and should not be considered all-inclusive or permanent. The information in this Memorandum has been obtained from sources believed to be reliable, but has not been verifi ed and is not guaranteed. You should independently verify each item of information and have the same reviewed by Your tax advisor and/or legal counsel. Assumptions, projections, estimates and/or opinions are provided as examples only and all information is subject to changes, errors, omissions and/or withdrawal without notice. Broker and Owner assume no responsibility for and make no warranty as to the accuracy or completeness of any information in this Memorandum. Broker and Owner expressly disclaim any implied or expressed warranties of merchantability, fi tness for a particular purpose or non-infringement of intellectual property relating to this Memorandum. In no event shall Broker or Owner be liable for any damages resulting from the reliance on or use of any information in this Memorandum, including but not limited to direct, special, indirect, consequential or incidental damages. By accepting receipt of this Memorandum, You agree to the following: (a) This Memorandum is of a highly confi dential nature, will be held in the strictest confi dence and shall be returned to Broker upon request; (b) You shall not contact any property manager, employee or tenant of the Property regarding the Property or this Memorandum, without prior approval of Broker or Owner; and (c) You understand and agree that Broker represents Owner and not You. Neither Broker nor Owner shall have any obligation to pay any commission, fi nder’s fee, or any other compensation to any broker or other person. By accepting receipt of this Memorandum, you agree to defend, indemnify and hold harmless Broker and Owner (including all of their agents, employees, subsidiaries, affi liated entities, successors and assigns) from and against any and all claims, disputes, litigation, demands, damages, liabilities, losses, judgments, expenses, fi nes, contributions, charges, injuries and/or costs and expenses, including reasonable attorneys’ fees, arising or resulting from acts by You.

Legal documents and reports summarized in this brochure are not intended to be comprehensive statements of the terms and contents of such documents and reports. Although Broker and Owner believe the information to be accurate, no warranty or representation is made as to its accuracy or completeness. Interested parties should conduct independent investigations and reach conclusions without reliance on materials contained herein.

The Property shall be sold AS-IS, WHERE-IS, WITH ALL FAULTS, and Seller makes no warranties, representations, certiﬁ cations nor “to the best of my knowledge” type statements to the status of the Property, the improvements thereon, potential use, economic feasibility, environmental matters, the availability of development rights or permits or any other matters. Seller will not incur any obligations that extend beyond the Closing.

OFFERING PROCESS Offers should be delivered to the ofﬁ ce of the Exclusive Listing Broker, Newmark Cornish & To facilitate analysis of offers, prospective buyers are encouraged to provide information Carey, by fax at (916) 920-0854, or by contacting: relative to: funding sources, experience in owning and operating similar properties, familiarity with the market and any other information which is likely to favorably reﬂ ect MICHAEL RILEY, Senior Managing Director KELLY RIVETT, Senior Managing Director on the offerer’s ability to close this proposed transaction in a timely manner. 916 569 2329 916 569 2385 [email protected] [email protected] CA RE License #00955165 CA RE License #01249433 1630 I STREET TABLE OF CONTENTS

EXECUTIVE SUMMARY

REGIONAL OVERVIEW

SACRAMENTO ON THE RISE

RECENT ARTICLES 1630 I STREET

SITE PLAN

EXECUTIVE SUMMARY 1630 I STREET

EXECUTIVE SUMMARY

Newmark Cornish & Carey is pleased to present for sale an infi ll development opportunity located within the “theater” district of Sacramento, CA. This opportunity allows an investor/developer to acquire three (3) existing structures totaling 32,000 SF on .73 acres. Currently, the Property generates income through monthly paid parking and offi ce tenant lease.

Current ownership has explored multi-family development with ground fl oor retail, but the site is also ideally located for offi ce or retail development. With demand outpacing supply for apartments, and offi ce and retail vacancy rates at single digits, this infi ll site makes long-term investment sense to any and all investors. 1630 I STREET

OFFERING SUMMARY PARCEL MAP Offering Price: Unpriced I STREET Address: 1630 I Street Sacramento, CA 95814 Property Type: Offi ce/Parking Lot (current) Building SF: Three (3) structures = 32,000 SF 1. 4,000 SF Retail/Offi ce (leased) 2. 8,000 SF Metal Warehouse (paid parking) 3. 20,000 SF Concrete Tilt-Up (paid parking) Parcel 006-0064-013 Information: Parcel Size: 32,000 SF / ±.73 Acres PROPOSED MULTI-FAMILY DEVELOPMENT Frontages: 200’ on I Street 160’ on 17th Street Zoning: C-2-NC 1630 I STREET

INVESTMENT HIGHLIGHTS • Development site (potential offi ce/retail or multi-family) • Existing income in place (monthly parking/offi ce tenant) • Located in the “theater” district • Midtown, Class A offi ce occupancy rate is 92%± • Downtown/Midtown apartment’s occupancy rate is 98%± • Sacramento year-over-year income growth is 12%± • Tremendous investment potential in a high demand market • Walking distance to top-rated restaurants, coffee shops, museums, employment, parks, public transportation, and entertainment venues. 1630 I STREET

SITE PLAN

REGIONAL OVERVIEW 1630 I STREET 1630 I STREET

REGIONAL OVERVIEW

SACRAMENTO HIGHLIGHTS BUSINESS CLIMATE AND WORKFORCE

The Sacramento region is comprised of 100 square miles and is located 75 With a unique and increasingly healthy mix of economic opportunities for miles northeast of San Francisco and 90 miles southwest of Lake Tahoe. companies and job seekers alike, the Sacramento Region has experienced With roughly 2.2 million residents, Sacramento serves as the capitol city of strong population and steady job growth over the last few decades and is California, the sixth largest economy in the world. Sacramento is undergoing expected to outpace the national average by more than double over the a renaissance where rich history, a diversifi ed business climate, agriculture next ten years. This growth is credit to the diversifi cation and strength affl uence, and quality of life has drawn national attention. of the region’s economic base—with a shift from primarily government employment to include private sector employment that now represents Government Employed 25% dynamic and expanding industries including high technology, life sciences, Current Unemployment Rate 5.5% agriculture, hospitality, education, healthcare, and clean energy technology. In fact, the renewable energy and clean energy technology industries have Sacramento has experienced a population growth of 21% since year 2000 been investing in the Sacramento Region at levels never seen before and an increasing number of national and international fi rms are choosing the Population Growth Between 5% 2010-2015 Sacramento Region as their base of operations for the United States.

In addition to the Sacramento Region’s strengths for traditional businesses, including lower costs, a positive business climate, and high quality of life, the region is seeing a new wave of technology companies moving to the area to take advantage of an entirely new set of competitive advantages. These advantages include strong educational and research institutions, location of the state capital, proximity to the San Francisco Bay Area, an emerging venture capital network, premier sites and facilities, and a qualiﬁ ed technical workforce. 1630 I STREET

REGIONAL OVERVIEW

SACRAMENTO REGION EMPLOYMENT BY INDUSTRY

1.5% 1.5% 1% 3% 4%

Government- State and Federal 5% 25% Transportation, Trade and Utilities

Health and Education Services 5% Professional and Business Services

Hospitality and Leisure

Financial Activities

10% Construction

Manufacturing LARGEST SACRAMENTO REGION EMPLOYERS PRIVATE SECTOR Other Services 16% Information Services Company Employees

13% Agriculture UC Davis Health Systems 9,900 Sutter Health 7,300 Mining and Logging Kaiser Permanente 6,900 15% Intel Corporation 6,000 AT&T 4,700 Raley’s Inc. 3,200 Hewlett Packard 3,200 Apple Inc. 2,500 Wells Fargo 2,500 VSP Global 2,300 Health Net of California 2,300 1630 I STREET

REGIONAL OVERVIEW

TRANSPORTATION AND ACCESS

The Sacramento region is a transportation hub and offers an array access to many destinations. • Major Highways - Interstate 5, Highway 99, Highway 80 • Freight/Passenger Trains - Amtrak and Regional Transit Light Rail • Bus Lines - Regional Transit and Greyhound • Sacramento International Airport • Deep-Water Shipping Port • Bicycling (Ranked 5th in the United States for Bike Friendly Cities)

COLLEGES AND UNIVERSITIES PROFESSIONAL SPORTS TEAMS

• California State University Sacramento (CSUS) - 30,284 Students • Sacramento Kings (NBA) • University of California – Davis (UCD) - 32,000 Students • Sacramento River Cats • Sacramento City College - 24,000 Students (Minor League Baseball - SF Giants Afﬁ liation) • American River College - 32,000 Students • Sacramento Republic • Sierra College - 20,000 Students (Professional Soccer Team- United Soccer League) • Sacramento Express (Professional Rugby)

SACRAMENTO ATTRACTIONS

• Sacramento State Capitol • California Railroad Museum • Sacramento Community Theater • Sutter’s Fort • Crocker Art Museum • Cal Expo • Sacramento Convention Center • Old City Cemetery • Many other galleries, breweries, museums, and theaters not mentioned • American River Parkway • Old Sacramento

• Golden 1 Entertainment Center • Wells Fargo Pavilion • Sacramento Zoo 1630 I STREET

SITE PLAN

SACRAMENTO ON THE RISE 1630 I STREET

SACRAMENTO ON THE RISE

1. GOLDEN 1 CENTER 2. 700 BLOCK OF K STREET 3. RAILYARDS 4. METRO CROSSING 14 5. WAREHOUSE ARTIST LOFTS (WAL) 6. 800 BLOCK OF K 7. M.A.Y BUILDING 3 13 8. 19J (MOHANNAS) 4 9. YAMANEE 10. 21ST AND U STREET 242028 12 12627 11. SUTTER PARK 2 6 21 7 12. MCKINLEY VILLAGE 25 8 13. SOCCER STADIUM 9 14. POWERHOUSE SCIENCE CENTER 11 15. STOCKTON AND T 5 23 1918 17 16. THE MILL AT BROADWAY 17. THE ICE BLOCKS 22 10 18. SUTTER MEDICAL CENTER SACRAMENTO 16 19. B STREET THEATRE 15 20. VANIR TOWER 21. HYATT CENTRIC 22. SACRAMENTO NATURAL FOODS CO-OP 23. MIDTOWN QUARTERS 24. D.O. MILLS BANK BUILDING 25. SACRAMENTO COMMONS 26. KIMPTON PLAZA TOWER (THE SAWYER) 27. DOWNTOWN COMMONS 28. KAISER PERMANENTE DOWNTOWN CLINIC 1630 I STREET

SACRAMENTO ON THE RISE

CURRENT PROJECTS AND PROJECTS TO WATCH

GOLDEN 1 CENTER RAILYARDS The Golden 1 Center is a $477 million project by the Sacramento Basketball Located just north of Downtown and south of the River District, the Union Pacifi c Holdings, LLC and City of Sacramento to develop the former Sacramento Railyards that once served as the western terminus of the 1860s Transcontinental Downtown Plaza into a multi-use indoor venue for entertainment and sporting Railroad, will soon be transformed into a dynamic, urban mixed-use hub for events in four city blocks within Downtown Sacramento. The Golden 1 Center residents, workers, and visitors. is expected to host 150 days of events and will seat 17,500. The development project will add up to 1.5 million square feet of additional development, branded The 244-acre development would include 1 million sq. ft. of retail, 5 million sq. DOCO, that will include 475,000 square feet of offi ce, 350,000 square feet of ft. of offi ce, housing, theaters, parks, hotels, museums, a Kaiser Permanente retail, a 250-room Kimpton hotel, and 44 residential units. hospital, and a proposed Major League Soccer stadium.

The Railyards specifi c plan envisions high-rise housing with 6,000 residential units. Most of the railyard would be designated as a central business district, 700 BLOCK OF K STREET with residential, retail, and offi ce space. The area surrounds the central shops D&S Development and CFY Development proposed a $55.4 million mixed-use buildings and includes east of 7th Street, where the proposed stadium would be. project that will rehabilitate the 700 block of K Street. The project will consist of 12-15 retail spaces, predominantly including an all star lineup of predominantly In the northwest corner of the property, the designation of a hospital district local restaurants, retail, and nightlife. Proposed above the retail are 137 mixed- would be for a planned Kaiser Permanente medical center. At the far eastern income apartments of varying sizes and rent levels, ranging from affordable end of 10th Street, the designation would be commercial with mostly smaller studios to penthouses. There is a signifi cant amount of project amenities businesses, such as repair shops and warehousing. including a must see community room on the upper level of the historic “WT Infrastructure is currently under construction. Grant” building, fi tness room, underground parking, residential storage closets, and more.

Source: Sacramento Business Journal and Downtown Sacramento Partnership 1630 I STREET

SACRAMENTO ON THE RISE

21ST AND U STREET SOCCER STADIUM Submitted by architect Michael Martin, this project calls for a 5 story mixed-use Built primarily for a Major League Soccer team, the railyard stadium also could complex with 15 residential units, 5,300 sq of offi ce space, and 925 sq feet of be used for concerts and other events. With about 450,000 square feet, the retail space. The 21,426 sq ft. project will include a rooftop patio, a cafe, and stadium would accommodate up to 25,000 people. parking behind the cafe on the fi rst fl oor.

POWERHOUSE SCIENCE CENTER SUTTER PARK Educational science center with interactive exhibits, planetarium, science labs The approved plan for the new Sutter Park Neighborhood includes 100 to 125 and classrooms. The fi rst phase involves new construction, while the second homes designed in iconic East Sacramento fashion. This includes a mixture involves revamping a former Pacifi c Gas and Electric power station. of classic architectural styles, from traditional park homes and cottages to mixed-use housing. Secondary units over garages also provide opportunities for fl exible, multigenerational living. STOCKTON AND T Plans call for a vacant 120,000-foot offi ce building to be replaced with a largely residential mixed- used project. In addition to 21 single-family homes, the MCKINLEY VILLAGE project would have a fi ve-story building with 214 apartments built over 5,000 McKinley Village by The New Home Company connects you to everything that square feet of fi rst-fl oor retail. matters in your life. Located at the apex of classic and progressive in East Sacramento, McKinley Village is a community of 336 single-family residences that is seamlessly integrated into the fabric of the surrounding neighborhoods THE MILL AT BROADWAY with paths extending in every direction. Mid-town’s thriving cultural scene is just A residential project with 800 homes ranging from 500 square feet to 1,500 a short bike ride away. square feet. It will include a four-acre park and 11,000-square-foot community McKinley Village was designed with social interaction in mind as well as the center. Park’s myriad of outdoor activities is within easy walking distance. demands of a new generation of homebuyers. The community will feature a 4,000 square foot Recreation Center, residences pre-wired for solar and building standards refl ecting the best environmental practices of the day. And McKinley 1630 I STREET

SACRAMENTO ON THE RISE

THE ICE BLOCKS VANIR TOWER This project is transforming three parcels on R Street into residential, retail, A 26-story or taller offi ce tower kitty-corner to the 16-story mixed use/hotel being offi ce and restaurant space. built by the Sacramento Kings and JMA Ventures. In addition to offi ce, it would have ground-fl oor retail and six fl oors of parking. Tenants would include Vanir, the regional One parcel, the former Crystal Ice plant, was destroyed by a massive fi re in headquarters for a major West Coast bank and restaurants. late November. New plans for the site, now dubbed Ice Rally Cap, call for two buildings of more than 174,000 square feet. There would be 85,000 to 100,000 square feet of offi ce space, 14,000 to 47,00 square feet of retail and up to 17,000 square feet of restaurant space. HYATT CENTRIC An 11-story Hyatt Centric hotel with 159 rooms would replace the Jade Apartments The second parcel, Block 2, will have 145 apartments. The last block, called and the Marshall Hotel, which would be gutted but its facade would be left intact. The Orchard, will feature a preserved façade and a cluster of offi ces and retail.

SACRAMENTO NATURAL FOODS CO-OP SUTTER MEDICAL CENTER SACRAMENTO New store will have 26,000 square feet on the ground level and a 16,000 square-foot Construction of the 10-story, 400,000-square foot Anderson Lucchetti Women’s mezzanine level with ofﬁ ce space for the co-op. and Children’s Center, plus renovation of Sutter General Hospital, now known as the Ose Adams Medical Pavilion.

MIDTOWN QUARTERS Multiphase project of mostly new residential units, including 32 for-sale townhomes B STREET THEATRE and more than 200 apartments. The 45,000-square- foot complex will have two theaters, one with 250 seats and the other with 365 seats. The larger venue will replace the theater’s current D.O. MILLS BANK BUILDING location at 27th and B streets. The bottom three fl oors of this six-story historic bank building would be converted to a public market and dining hall. The top three fl oors would remain offi ce space. 1630 I STREET

SACRAMENTO ON THE RISE

SACRAMENTO COMMONS DOWNTOWN COMMONS Multi-phase project would include two seven-story buildings, each with 206 This urban retail center is the redevelopment of the former Downtown Plaza. apartment units, 4,000 square feet of neighborhood retail and three ﬂ oors of One component, Plaza West, will include the existing Macy’s, a remodeled parking. As part of the project, 84 existing apartments dating to the 1960s will Century movie theater and 28,000 square feet of new retail space. The other be demolished. component, Plaza East, will include the existing 24 Hour Fitness and 12,270 square feet of retail.

KIMPTON PLAZA TOWER (THE SAWYER) A 16-story mixed-use tower across the plaza from Golden 1 Center. It will KAISER PERMANENTE DOWNTOWN CLINIC include a Kimpton-branded hotel, 35,000 square feet of offi ce, 45,000 square Kaiser purchased a mostly vacant six-story offi ce building in late 2014 and feet of retail on the fi rst three fl oors and 69 high-end condominiums on the top. is remodeling it into an outpatient medical clinic. It plans to add about 4,300 square feet to the 392,270 square-foot building. Project will include a four-story parking garage and a bike-share station. 1630 I STREET

SITE PLAN