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Board of Trustees February 22, 2018 Presented By

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Board of Trustees February 22, 2018 Presented By Board of Trustees February 22, 2018 Presented By: Luis Fonseca Chief Operating Officer Agenda • BACKGROUND • ASSESSMENT • TERMS • FINANCIALS • REQUEST 2 Background • In preparations for the EHR implementation project, AHS identified the need to house a projected 120- 130 staff inclusive of third party vendors • In July 2017, AHS staff toured several locations in Alameda County that could accommodate the total project space needs • AHS leadership determined that Creekside Plaza provided the best combination of price, location, and move-in readiness to house the EHR project team 3 AssessmentMarket – Comps Rent Location Study Map 4 AssessmentMarket – Comps Rent Matrix Study 5 Creekside Plaza Terms • 24,015 sq. ft. / 5 year term • Lease: Full Service Gross, Net of Utilities • Cost per Square Foot: $3.50 with a 3% yearly escalator • Landlord Concessions: – Rent Abatement: 2 months free – Tenant Improvement: $13/sq.ft. for a total of $312,000. Unused funds may be applied towards rent – Furniture: $25,000 to be applied towards furniture acquisition 6 Creekside Plaza Terms - continued • Renovation: No material improvements or construction required prior to move in • Furniture: AHS may purchase existing furniture, valued at $800k, from current tenant for $100k. Landlord has committed $25k and AHS may use Tenant Improvement funds for remaining amount • IT Infrastructure: Existing wiring meets a majority of AHS’s connectivity needs. Additional wiring, badge access install and security camera install may be paid for using Tenant Improvement funds • Parking: 108 parking stalls available at no cost 7 Creekside Plaza Financials BASE RENT: During the initial Term, calculated at $3.50 per rentable square foot per month, with 3% annual increases. Year Cost/Sq. Ft. Rent Year 1 $3.50 $840,525.00 Year 2 $3.61 $1,038,888.96 Year 3 $3.71 $1,070,055.60 Year 4 $3.82 $1,102,157.28 Year 5 $3.94 $1,135,221.96 TOTAL $5,186,848.80 8 Request AHS leadership requests Board approval to enter into a 5 year lease for Creekside Plaza, centrally located in San Leandro, to house the Electronic Health Record (“EHR”) headquarters. 9 Questions? 555 12th Street, Suite 1400 Oakland, CA 94607 tel: +1 510 465 8000 fax: +1 510 465 1350 cushmanwakefield.com Preliminary Market Tour Emeryville, Oakland, San Leandro, Hayward PREPARED FOR: PREPARED BY: Ryan Hattersley Executive Managing Director +1 510 891 5802 [email protected] LIC #01354553 Eugene McGrane Managing Director +1925 951 5023 [email protected] LIC #01774236 July 14, 2017 DateDate TABLE OF CONTENTS I. Property Map II. Property Matrix III. 1900 Powell Street, Emeryville, CA IV. 555 12th Street, Oakland, CA V. 675 Hegenberger Road, Oakland, CA VI. 1100 San Leandro, Bldg. A, San Leandro CA VII. 26460 Corporate Ave., Hawyard, CA PRELIMINARY MARKET TOUR EMERYVILLE, OAKLAND, SAN LEANDRO, HAYWARD 675 Hegenberger 32,224 SF Avail Now Creekside Plaza 73,794 SF Avail Q2’18 1900 Powell St. 58,847 SF 26460 Corporate Ave. 42,027 SF Avail Now Avail Now 555 12th St 47,778 SF Avail Now Property Matrix Size Address Avail Rent Term Parking (RSF) 1900 Powell St., ±58,847 Now $49/FS Negotiable 3/1,000 Emeryville, CA Thru 555 12th St., ±47,778 Now $49/FS Nov. 30, 0.98/1,000 Oakland, CA 2020 675 Hegenberger Rd., ±32,224 Now $21/FS Negotiable 2.50/1,000 Oakland, CA Creekside Plaza ±73,794 Q2’18 $45/NOE Negotiable 3/1,000 San Leando, CA 26460 Corporate Ave., ±42,027 Now $18/NNN Negotiable 4/1,000 Hayward, CA ELEVATE above the competition The Towers - The East Bay’s Most Iconic Office Development. Featuring more than 800,000 square feet of office and retail space in three Class A high rises, The Towers is located on Emeryville’s prestigious waterfront. Rising above the water’s edge, The Towers provide tenants dramatic, unobstructed views of the San Francisco skyline, Bay Bridge, Golden Gate Bridge, Treasure Island, Mount Tamalpais and the Berkeley and Oakland Hills. Ryan Hattersley Daniel Bisabri Elisa Konik Zach Siegel Executive Managing Director Executive Director Managing Director Executive Director T +1 510 891 5802 T +1 510 891 5801 T +1 510 891 5851 T +1 415 773 3596 [email protected] [email protected] [email protected] [email protected] Lic. #01354553 Lic. #01754122 Lic. #01971977 Lic. #01129196 On-Site Amenities • State of the Art Tenant Lounge • Fitness Center/Gym • Recently Renovated Conference Center • Outdoor Employee Lounge Areas • Bocce Ball Court • Free Express BART Shuttle • 3:1,000 Secure Parking • 24/7 Security • Excellent Food and Retail Amenities • Immediate Access to the Bay Trail • Bike Storage, Locker Rooms and Showers • Car Wash Service • Electric Vehicle Charging Stations Ryan Hattersley Daniel Bisabri Elisa Konik Zach Siegel Executive Managing Director Executive Director Managing Director Executive Director T +1 510 891 5802 T +1 510 891 5801 T +1 510 891 5851 T +1 415 773 3596 [email protected] [email protected] [email protected] [email protected] Lic. #01354553 Lic. #01754122 Lic. #01971977 Lic. #01129196 State of the Art Tenant Lounge The project boasts a modern tenant lounge with high-end finishes and a full time concierge staff. The lounge, in addition to the adjacent outdoor patio/event space, hosts several tenant appreciation events throughout the year fostering a unique Towers tenant community. Prior tenant events include Cinco de Mayo banquet, Spring into Summer BBQ, Novemberfest party, Presidential Debate Watch Parties, Easter Egg Hunt and Valentine’s Day Candy Bar, to name a few. Ryan Hattersley Daniel Bisabri Elisa Konik Zach Siegel Executive Managing Director Executive Director Managing Director Executive Director T +1 510 891 5802 T +1 510 891 5801 T +1 510 891 5851 T +1 415 773 3596 [email protected] [email protected] [email protected] [email protected] Lic. #01354553 Lic. #01754122 Lic. #01971977 Lic. #01129196 N TOWER 2 2200 POWELL STREET TOWER 1 1900 POWELL STREET TOWER 3 2000 POWELL STREET SIGNAGE VEHICLE CIRCULATION TOWERTOWER 1 - 19001 | 1900POWELL STREETPOWELL STREET TOWERTOWER 2 - 22002 | POWELL2200 STREET POWELL STREET TOWERTOWER 3 - 20003 | POWELL2000 STREET POWELL STREET BUSBUS DEPOTDEPOT - EMERY | GOEMERY ROUND GO ROUND GYMGYM - CLUB ONE Ryan Hattersley Daniel Bisabri Elisa Konik Zach Siegel Executive Managing Director Executive Director Managing Director Executive Director T +1 510 891 5802 T +1 510 891 5801 T +1 510 891 5851 T +1 415 773 3596 [email protected] [email protected] [email protected] [email protected] Lic. #01354553 Lic. #01754122 Lic. #01971977 Lic. #01129196 Current Availabilities CLICK ON SUITE # TO ACCESS FLOOR PLAN TOWER FLOOR SUITE SF AVAILABLE 3 5 530 1,202 Now 2 1 105 1,305 Now 2 3 350 1,421 12/6/2017 2 10 1080 1,497 Now 2 10 1025 1,748 Now 1 4 460 1,878 Now 2 10 1070 1,894 Now 2 7 740 2,142 Now 2 10 1085 2,367 Now 1 1 120 2,501 Now 1 8 820 2,612 Now 3 14 1425 4,844 Now 2 10 1025+1070+1080 5,139 Now 1 1 140+150 6,683 Now 3 3 310 12,040 10/1/2017 1 4 400+420+440 12,556 Now 1 3 300 19,004 Now 77,660 (Divisible 1 9-12 900+1000+1100+1200+PH Now to 18,183) Ryan Hattersley Daniel Bisabri Elisa Konik Zach Siegel Executive Managing Director Executive Director Managing Director Executive Director T +1 510 891 5802 T +1 510 891 5801 T +1 510 891 5851 T +1 415 773 3596 [email protected] [email protected] [email protected] [email protected] Lic. #01354553 Lic. #01754122 Lic. #01971977 Lic. #01129196 SACRAMENTO ST 23 4 18 580 SAN PABLO AVE HEINZ AVE 35 ASHBY AVE Foodie Map YELP 7 RESTAURANT NAME ADDRESS OAKLAND RATING 1 WALLY’S CAFÉ 3900 SAN PABLO AVE 4.5 2 HONOR KITCHEN 1411 POWELL STREET 4 3 TOWNHOUSE BAR & GRILL 5862 DOYLE STREET 4 4 900 GRAYSON 900 GRAYSON STREET 4 22 34 ALCATRAZ AVE SHATTUCK AVE 28 5 HOT ITALIAN 5959 SHELLMOUND ST. 4 TELEGRAPH AVE 6 JASMINE BLOSSOM 6520 HOLLIS STREET 4 6 25 MARTIN LUTHER KING JR WAY San Francisco Bay 7 SPOON KOREN 933 ASHBY AVENUE 4 DOYLE ST 8 TRADER VIC’S 9 ANCHOR DRIVE 3.5 9 ROBA’S PIZZA 2320 POWELL STREET 4 80 10 PUBLIC MARKET 5959 SHELLMOUND ST. 3.5 33 11 THE BUREAU 510 5800 HOLLIS STREET 3.5 12 DOYLE STREET CAFÉ 5515 DOYLE STREET 4 30 STANFORD AVE 13 13 ROYA’S GARLIC GARDEN 6363 CHRISTIE AVENUE 4 5 10 14 CAFFE DUETTO 5646 BAY STREET 4 3 15 RUDY’S CAN’T FAIL CAFÉ 4081 HOLLIS STREET 4 17 24 EMERYVILLE 16 SPECIALTY’S 1900 POWELL 3 11 17MARKET ST CHEVYS 1890 POWELL 3 ADELINE ST 16 2 18 EMILIA’S PIZZERIA 2995 SHATTUCK AVE 4.5 8 12 31 19 ARIZMENDI BAKERY 4301 SAN PABLO AVE 4.5 51ST ST POWELL ST 9 20 SHANGRI-LA VEGAN 400124 LINDEN STREET 4 21 HODO SOY BEANERY 2923 ADELINE STREET 4 HOLLIS ST 22 ROTTEN CITY PIZZA 6613 HOLLIS STREET 4 14 23 NINA’S CAFÉ 2703 7TH STREET 4 24 PAMIR AFGHAN 5959 SHELLMOUND ST. 4 29 25 ACTUAL CAFÉ 6334 SAN PABLO AVE 4 19 26 BROWN SUGAR KITCHEN 2534 MANDELA PKWY 4 27 LOS CANTAROS TAQUERIA 4115 SAN PABLO AVE 4 27 28 FARLEY’S ON 65TH 1195 65TH STREET 4 40TH ST 15 20 29 BUCKHORN GRILL 5614 BAY STREET 3.5 1 32 30 MEDITERRANEAO PIZZA 5959 SHELLMOUND ST.
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