East Village Development Opportunity

Kevin Nolen, LEED AP +1 858 546 5487 [email protected] CA Lic. # 01840398

Tim Winslow +1 858 546 5436 [email protected] CA Lic. # 00891667

Jason Kimmel + 1 858 546 5414 [email protected] CA Lic. # 01328121 Disclaimer

Cushman & Wakefield has been retained as the owner’s exclusive advisor and broker Additional information and an opportunity to inspect the Property will be made regarding the sale of 1425-1433 Market Street, San Diego, CA 92101 (the “Property”). available upon written request to interested and qualified prospective investors. This Offering Memorandum has been prepared by Cushman & Wakefield for use by Owner and Cushman & Wakefield each expressly reserve the right, at their sole a limited number of parties and does not purport to provide a necessarily accurate discretion, to reject any and all expressions of interest or offers regarding the summary of the Property or any of the documents related thereto, nor does it purport to Property and/or terminate discussions with any entity at any time with or without be all-inclusive or to contain all of the information which prospective investors may need notice. Owner shall have no legal commitment or obligation to any entity reviewing or desire. All projections have been developed by Cushman & Wakefield, the Owner, and this Offering Memorandum or making an offer to purchase the Property unless and designated sources and are based upon assumptions relating to the general economy, until a written agreement for the purchase of the Property has been fully executed, competition, and other factors beyond the control of the Owner and, therefore, are delivered, and approved by Owner and its legal counsel, and any conditions subject to variation. No representation is made by Cushman & Wakefield or Owner to Owner’s obligations thereunder have been satisfied or waived. Cushman & as to the accuracy or completeness of the information contained herein, and nothing Wakefield is not authorized to make any representations or agreements on behalf contained herein is, or shall be relied on as, a promise or representation as to the future of Owner. performance of the Property. Although the information contained herein is believed to This Offering Memorandum and the contents, except such information which is be correct, Owner and its employees disclaim any responsibility for inaccuracies and a matter of public record or is provided in sources available to the public (such expect prospective purchasers to exercise independent due diligence in verifying all contents as so limited herein are called the “Contents”), are of a confidential such information. Further, Cushman & Wakefield, Owner, and its employees disclaim nature. By accepting the package, you agree (i) to hold and treat it in the strictest any and all liability for representations and warranties, expressed and implied, confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package contained in, or for omission from, this Offering Memorandum or any other written or any of the contents to any other entity (except to outside advisors retained by or oral communication transmitted or made available to the recipient. This Offering you, if necessary, for your determination of whether or not to make a proposal and Memorandum does not constitute a representation that there has been no change in from whom you have obtained an agreement of confidentiality) without the prior the business or affairs of the Property or the Owner since the date of preparation of the written authorization of Owner or Cushman & Wakefield, (iv) not use the package package. Analysis and verification of the information contained in this package is solely or any of the contents in any fashion or manner detrimental to the interest of Owner the responsibility of the prospective purchaser. or Cushman & Wakefield, and (v) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner.

4747 Executive Drive, 9th Floor San Diego, California 92121 T +1 858 546 5400 F +1 858 630 6320 www.cushwake.com Table of Contents

01 EXECUTIVE SUMMARY

03 INVESTMENT HIGHLIGHTS

05 OFFERING SUMMARY

09 AREA HIGHLIGHTS

11 SITE PLANS/FLOOR PLANS

13 ZONING INFORMATION

15 LAND SALE COMPS

MULTI-FAMILY 19 MARKET OVERVIEW

23 DEMOGRAPHICS 01 1425-1433 Market Street POINT LOMA

CORONADO

HORTON CONVENTION CENTER PLAZA MALL PETCO PARK GASLAMP DISTRICT

SAN DIEGO PUBLIC LIBRARY

PROPOSED CHARGERS STADIUM

N 1425-1433 Market Street 02

HORTON PLAZA MALL SAN DIEGO CIVIC THEATER Executive Summary

EXCELLENCE IN LOCATION

The Bahia View development site is an opportunity to develop an institutional quality Class A+ project in downtown San Diego’s most up and coming neighborhood, the East Village.

The approximately 15,000 SF site enjoys proximity to some of the newest, trendy restaurants, bars, and urban developments in the East Village. The site has easy access to the freeway is within walking distance to Petco Park, and is ideal for any trolley rider. East Village is the wave of opportunity in San Diego! 03 1425-1433 Market Street 1425-1433 Market Street 04

Investment Highlights

● View corridors to the north, south, and west, highly unusual for a mid-block parcel

● 22 stories - 95 residential condos (fully approved by Civic San Diego)

● Directly across from Albertsons supermarket

● Fault Line Park within a half a block

● Within walking distance to Gaslamp District and Petco Park 05 1425-1433 Market Street 1425-1433 Market Street 06

Offering Summary

Asking Price: Submit

Location: 1425-1433 Market Street, San Diego, CA 92101

Land Area: 15,000 SF

APN: 535-153-11 and 14

Property Type: Mixed-Use

Zoning: CCPD-NC – page 22

FAR: Minimum – 3.5, Maximum – 6.0 (+4.0 through Bonus Payment)

Height Limit: 400 ft 07 1425-1433 Market Street

SAN DIEGO ZOO SOUTH PARK BALBOA PARK

GOLDEN HILL SAN DIEGO CITY COLLEGE

MAKERS QUARTER SMART FARM COMMUNITY GARDEN EAST VILLAGE GREEN PARK I.D.E.A. DISTRICT

ALBERTSONS

MARKET STREET 13th STREET 13th

14th STREET 15th STREET

N SAN MARCOS

CARLSBAD S BLVD ESCONDIDO RD SAN MARCO ALO RT P MAR AIRPO

L R A

E E

F R A

O T

N N

I A

S M

A O

C H C

L N

E A LEUCADIA R

E ENCINI L CAM TAS BLV IN D O D ENCINITAS E EL N V OR A TE WAY R H IG P E H S O T IO RANCHO

S D M

E L E E H D

BERNARDO R

C R N D

MA A

R O

E T R N D E C O SOLANA BEACH RD E A L N 1425-1433 Market Street 08 L BER VA E LA VIA D POWAY

C RD A DEL MAR S R HT M HEIG E MAR L POWAY RD DEL M OU NTAIN RD

B L SCRIPP A S POWAY PARKWAY C

N K T O LVD M SCRIPPS RANCH

R B O R Y LE U E L Y VA N

O T GOLDEN HILL P T

EN A

I R R I N SO SORRENTO N TORREY PINES E D R R S MESA O D D R ERA D POM MIRAMAR

D MIRAMAR R UTC

GOVERNOR KEARNY SANTEE AR LA JOLLA DA PARK TH MESA

L . E

A N

J E O S L S PACIFIC L E A E B L V VE D OCEAN D A A R BO RGE BAL GO N VE IO ET A S GARN IS M PACIFIC BEACH MAIN ST

D MISSION BEACH IARS R FR EL CAJON MISSION VALLEY VD EL CAJON BL

S OCEAN BEACH N A R C SE O R LEMON GROVE D LV DOWNTOWN B ACHA MARKET JAM

NATIONAL CITY POINT LOMA

CORONADO SAN DIE

B G R CHULA 09 1425-1433 Market Street

Albertsons Fault Line Park

Quartyard

Makers Quarter

MAKERS QUARTER BLOCK C VIEW FROM BLOCK A

B NIM berkebile nelson immenschuh mcdowell architects | 949 West Hawthorn S treet Unit 11 San Diego CA 92101 816 783 1500 f 816 783 1501 bnim.com BNIM Project No. 15019.00 | 07.31.2015

what to do

● Quartyard - Vast outdoor container park with beer, coffee & food trucks, plus live bands, events & a dog park.

● Makers Quarter - a community of Entrepreneurs, Artists, and Makers, located in San Diego’s East Village

● Directly across from Albertsons supermarket

● Fault Line Park on the intersection of 14th Street and Island Avenue is the first public park to open in the neighborhood since 2004

MAKERS QUARTER BLOCK C VIEW FROM BLOCK A

B NIM berkebile nelson immenschuh mcdowell architects | 949 West Hawthorn S treet Unit 11 San Diego CA 92101 816 783 1500 f 816 783 1501 bnim.com BNIM Project No. 15019.00 | 07.31.2015

Area Highlights

SAN DIEGO GASLAMP DISTRICT GROCERY STORE INTERNATIONAL AIRPORT 10 MINUTE WALK 1 MINUTE WALK 9 MINUTE DRIVE (ALBERTSONS)

TROLLEY STATION CORONADO BEACH HORTON PLAZA MALL 9 MINUTE WALK 9 MINUTE DRIVE 5 MINUTE DRIVE

BALBOA PARK SAN DIEGO ZOO SEAPORT VILLAGE 5 MINUTE DRIVE 7 MINUTE DRIVE 10 MINUTE DRIVE 13 1425-1433 Market Street Site Plans

VICINITY ELEVATIONS

SITE PLAN SITE ANALYSIS

HISTORICAL BUILDING ON SITE TO BE DISASSEMBLED AND REMOVED. SITE TO BE EXCAVATED, AND HISTORICAL BUILDING BROUGHT BACK ONTO SITE AND REASSEMBLED. DETAILS AVAILABLE UPON RETURN OF A SIGNED CONFIDENTIALITY AGREEMENT. 1425-1433 Market Street 14 Floor Plans

FLOOR PLAN LEVEL 03 FLOOR PLAN LEVEL 02 San Diego Municipal Code Chapter 15: Planned Districts (5-2016)

15 1425-1433 Market Street

Ch. Art. Div. 15 6 3 102 1425-1433 Market Street 16

Click here for CCPD-NC Zoning

Zoning Information

Neighborhood Mixed-Use Center (NC). This district ensures development of distinctive centers around plazas, parks, and main streets that provide a focus to the neighborhoods by supporting a mix of residential and non-residential developments that contain active commercial uses on the ground floor.

A broad array of compatible uses, including retail, eating and drinking establishments, residential, office, educational, indoor recreation, and cultural uses are permitted. Building volume restrictions apply to allow sunlight to reach streets and public spaces, and design standards seek to establish pedestrian-oriented development. Within the NC District, a minimum of 40 percent of the ground-floor frontage facing onto a public street or public open space (except for Outfield Park) shall contain active commercial uses. Alternative Interim Uses may be permitted pursuant to Section 156.0315(e). 17 1425-1433 Market Street Land Sale Comps Map Comparables data available with signed confidentiality agreement

8 6 9 12 10 3

5 15 7 4 1 SAN DIEGO 1425-1433 Market Street 18 INTERNATIONAL AIRPORT

USS MIDWAY LITTLE ITALY MUSEUM

WESTFIELD HORTON PLAZA

GASLAMP QUARTER

ISLAND AVENUE

J STREET MARKET STREET

15th STREET 19 1425-1433 Market Street

Asking Rent vs Vacancy

Multi-Family $1,700 6% $1,600 5%

$1,500 Market Overview 4% $1,400 3% ECONOMY $1,300

2% The San Diego employment market continued to show signs of $1,200 improvement, adding 39,100 jobs (+2.9%) year-over-year through $1,100 1%

February. Of the 39,100 jobs added, 8,900 (or 23%) were office 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

jobs consisting of two sectors: business & professional services Asking Rent Vacancy Mar-2016 and financial activities. During the same time period, the unemployment rate decreased 80 basis points (bps), dropping Net Absorption to 4.7%. The current rate is 130 basis points below the 26-year 4,000 average of 6%. All employment sectors are expected to grow

over the next two years at a combined rate of 2.5% in 2016 and 3,000 2.3% in 2017. Office employment is forecasted to grow 4.2% in

2016 and 3.4% in 2017, positively affecting demand for office 2,000 space. San Diego’s economy grew 3.6% in 2015 - above the 10-year average growth rate of 1.3% - and is forecasted to grow 1,000 4.4% in 2016 and 3.7% in 2017, according to Moody’s Analytics economy.com forecast. 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Mar-2016 SAN DIEGO MULTI-FAMILY Economic Indicators Market Indicators

12-Month 12-Month 1-Yr. ago Current 1-Yr. ago Current Forecast Forecast Vacancy San Diego Employment 1.47M 1.50M 1.47M 1.50M - As of March 2016 – as of March 2016 Asking Rent 5.4% 4.7% San Diego 5.4% 4.7% Unemployment Units Surveyed 5.4% 5.0% U.S. Unemployment 5.4% 5.0% Net Absorption 1,072 1,401 – as of April 2016 1425-1433 Market Street 20

MARKET OVERVIEW

As of the close of Q1 2016, office vacancy (including sublease) which was the fourth consecutive year of positive Class B net in the San Diego marketplace stood at 15.6%. Vacancy is down absorption. Class B struggled for six years – long before and by 30 bps from the 15.9% rate posted a year ago and reflects a after the last recession - returning 2.2 MSF combined between substantial decline (610 bps) from the peak post-recession vacancy 2006 and 2011. Since 2012, tenants have backfilled close to level of 21.7% reported in Q3 2009. Compared to Q4 2015, total 1.4 MSF of Class B space, recovering slightly more than a vacancy remained unchanged at 15.6% as 81,100 square feet (SF) half of space returned to the market during the last recession. of occupancy growth was offset by 448,000 SF of new deliveries. Google constituted the largest Q1 move-in, occupying 55,000 Tenant demand has, until recently, been predominately focused SF at Verge in Sorrento Mesa. In Scripps, MedImpact and on Class A space. Class A leasing has been positive for the Verance occupied a combined 47,500 SF. Among other notable last 24 quarters during which tenants absorbed a total of move-ins, CPC Strategies and a number of smaller tenants 5.5 million square feet (MSF), an average of 228,000 SF per contributed to 33,000 SF of absorption at 707 Broadway in quarter. In 2015, tenants absorbed close to one MSF of Class Downtown and PatientSafe Solutions moved into 26,000 SF at A space countywide, above the 10-year annual average of the Ventana in Carlsbad. A number of large leases were signed 730,000 SF. Though Q1’s Class A performance was the weakest in previous quarters that will further boost absorption in quarterly performance over the last six years, we continue to future quarters as these tenants begin occupying the space. see increased touring and deal flow from Class A projects. In Rancho Bernardo, ICW Insurance will occupy 71,000 Tenants absorbed 32,000 SF of Class A space combined in SF of Class A space at 15025 Innovation Dr. In Eastgate North County submarkets and 32,000 SF in Central County and UTC, Ignyta will move into 95,000 SF at Axiom and submarkets but returned 72,000 SF of Class A to South County Jones Day will occupy 60,000 SF at One La Jolla Centre. submarkets – mostly to the Downtown submarket. Since peaking at 23.0% seven years ago (Q2 2009), Class A vacancy including In Governor Park, UCSD will move into 74,000 SF this summer. sublease has fallen 650 bps to 16.5%. As Class A availability in SDG&E leased 92,000 SF in Kearny Mesa at 8680 Balboa Ave. key submarkets has become more constricted and asking rents that they will occupy in spring of this year. Also in spring, the have climbed, Class B leasing has picked up. Center for Creative Leadership will move into 31,000 SF in Torrey Pines. Class B occupancy growth for Q1 was 66,000 SF, in line with the quarterly average of 68,000 SF over the last three years. One year ago Class B vacancy including sublease stood at 17.9%. It now stands at its lowest level in eight years (since Q4 2007) at 15.1%. Tenants absorbed 483,000 SF of Class B space in 2015 21 1425-1433 Market Street

Multi-Family Market Overview

ECONOMY The San Diego County economy had of one its best quarters on record, the San Diego Union-Tribune reported April 29th. The Union-Tribune cited a report released the day before by the University of San Diego: “The University’s index of leading economic indicators uses six aspects of the economy to mea- sure San Diego County’s strength. For a record thirdconsec- utive month, all of those factors were positive, including local stock prices, consumer confidence, and help wanted adver- tising. The index now sits at 137.7, up 1.3% from February and highest since May 2007.” “‘The outlook for the local economy is really solid right now,’” said Alan Gin, the USD economist who authors the monthly report. “‘I think we just have continued growth through end of year into early 2016 at the minimum.’” Gin said in particular the labor market is shining, with first quarter initial claims for unemployment down 30.0% over the year and job ads increasing 18.0%. The San Diego region’s unemployment rate is currently a seasonally adjusted 5.1%, down two percentage points in the last year, Gin states, and he sees that falling more in the coming months. 1425-1433 Market Street 22

OCCUPANCY Average Vacancy Trends

San Diego’s first quarter 2016 vacancy rate was 2.9%, ac- 9% cording to Reis, down 10 basis points from the prior quarter 8% and up 40 from 12 months earlier. From late 2012 to late 2015, 7% vacancy here was below the 3.0% mark. In 2011, the rate was 6% 3.1%, barely over that mark. With a rate below 5.0% being 5% considered essentially full, this market has not flirted with 4% 3% that level since 2009, when vacancy was 4.9%. For 2015, a 2% brief rise to 3.0% in the fourth quarter nudged the rate up- 1% ward to its recent “high.” Vacancy averaged 4.2% from 2006 0% to 2010 and 5.0% from 2011 to 2015. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Reis reports the Class A vacancy rate at 5.7%, down 20 ba- San Dieg o W estern US US Source: Reis, Inc. sis points over the quarter and down 70 year-over-year. The Class B/C rate is reported at 0.9%, down 10 basis points over the quarter and unchanged year-overyear. Once again, San Diego has a market class with a vacancy rate near zero. There is little here in the way of conversions, the switching of units from condominium to apartment. Reis reports the current rate is the eighth-lowest in the nation and the third-lowest in the West. According to a study prepared by Beacon Economics for the Lusk/Casden Real Estate 2016 Multifamily Forecast report, vacancy finished 2015 at 4.9%. “Pressures on the rental market in San Diego County include the region’s lowest unemployment rate since 2007 and strong population growth, which offset increased construction…nearly 6,300 units were authorized by building permits last year, but the vacancy rate is expected to be 4.8%, similar to what it is now,” wrote SD Metro magazine. Reis expects vacancy to finish 2016 at 2.9%, then rise to 3.2% by 2020. 23 1425-1433 Market Street Demographic and Income Profile

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 1 mile radius Latitude: 32.71151 Longitude: -117.15148

Summary Census 2010 2016 2021 Population 40,775 45,856 49,795 Demographics Households 19,087 21,885 24,096 Families 5,745 6,361 6,912 Average Household Size 1.81 1.80 1.80 Owner Occupied Housing Units 4,209 4,335 4,665 Renter Occupied Housing Units 14,878 17,550 19,431 Median Age 34.6 35.3 35.6 Trends: 2016 - 2021 Annual Rate Area State National Population 1.66% 0.87% 0.84% Households 1.94% 0.79% 0.79% Families 1.68% 0.79% 0.72% 1 MILE RADIUS Owner HHs 1.48% 0.69% 0.73% Median Household Income 0.90% 2.73% 1.86% 2016 2021 Population Households by Income Number Percent Number Percent <$15,000 5,354 24.5% 6,060 25.1% $15,000 - $24,999 2,595 11.9% 2,507 10.4% $25,000 - $34,999 2,001 9.1% 2,073 8.6% $35,000 - $49,999 2,471 11.3% 2,669 11.1% $50,000 - $74,999 2,131 9.7% 1,833 7.6% $75,000 - $99,999 2,023 9.2% 2,261 9.4% 45,856 $100,000 - $149,999 2,710 12.4% 3,410 14.2% $150,000 - $199,999 1,245 5.7% 1,596 6.6% $200,000+ 1,355 6.2% 1,687 7.0%

Median Household Income $39,998 $41,832 Median Age Average Household Income $72,073 $78,859 Per Capita Income $37,560 $41,003 Census 2010 2016 2021 Population by Age Number Percent Number Percent Number Percent 0 - 4 1,645 4.0% 1,781 3.9% 1,967 4.0% 5 - 9 1,290 3.2% 1,446 3.2% 1,487 3.0% 10 - 14 1,272 3.1% 1,285 2.8% 1,314 2.6% 35.3 15 - 19 1,694 4.2% 1,678 3.7% 1,591 3.2% 20 - 24 3,992 9.8% 4,437 9.7% 4,344 8.7% 25 - 34 10,908 26.8% 12,077 26.3% 13,586 27.3% 35 - 44 6,649 16.3% 7,492 16.3% 8,368 16.8% 45 - 54 5,589 13.7% 5,782 12.6% 5,795 11.6% Median Household Income 55 - 64 4,141 10.2% 4,938 10.8% 5,281 10.6% 65 - 74 2,076 5.1% 3,052 6.7% 3,765 7.6% 75 - 84 1,175 2.9% 1,437 3.1% 1,773 3.6% 85+ 345 0.8% 451 1.0% 523 1.1% Census 2010 2016 2021 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 24,557 60.2% 26,806 58.5% 28,463 57.2% $39,998 Black Alone 3,764 9.2% 4,403 9.6% 4,817 9.7% American Indian Alone 407 1.0% 444 1.0% 471 0.9% Asian Alone 2,273 5.6% 2,916 6.4% 3,490 7.0% Pacific Islander Alone 116 0.3% 141 0.3% 162 0.3% Some Other Race Alone 7,728 19.0% 8,733 19.0% 9,590 19.3% Two or More Races 1,931 4.7% 2,412 5.3% 2,803 5.6%

Hispanic Origin (Any Race) 16,256 39.9% 18,569 40.5% 20,784 41.7% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 1 mile radius Latitude: 32.71151 Longitude: -117.15148

Trends 2016-2021

2.5

1.5

1 Area 0.5 State Annual Rate (in percent) Rate Annual USA 0 Population Households Families Owner HHs Median HH Income

Population by Age

Percent 10

2016 5 2021

0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2016 Household Income 2016 Population by Race

$15K - $24K 55 11.9% <$15K 50 $25K - $34K 24.5% 45 9.1% 40 35 30

$35K - $49K Percent 25 11.3% $200K+ 20 6.2% 15 $150K - $199K $50K - $74K 5.7% 10 9.7% 5 $100K - $149K $75K - $99K 12.4% 9.2% White Black Am. Ind. Asian Pacific Other Two+

2016 Percent Hispanic Origin: 40.5%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 3 mile radius Latitude: 32.71151 Longitude: -117.15148

Summary Census 2010 2016 2021 Population 188,030 200,135 211,383 Demographics Households 76,582 81,518 86,640 Families 31,413 32,925 34,726 Average Household Size 2.17 2.18 2.18 Owner Occupied Housing Units 23,651 23,365 24,298 Renter Occupied Housing Units 52,931 58,153 62,343 Median Age 33.3 34.1 34.7 Trends: 2016 - 2021 Annual Rate Area State National Population 1.10% 0.87% 0.84% Households 1.23% 0.79% 0.79% Families 1.07% 0.79% 0.72% 3 MILE RADIUS Owner HHs 0.79% 0.69% 0.73% Median Household Income 1.15% 2.73% 1.86% 2016 2021 Population Households by Income Number Percent Number Percent <$15,000 13,510 16.6% 14,959 17.3% $15,000 - $24,999 8,667 10.6% 8,382 9.7% $25,000 - $34,999 7,590 9.3% 7,551 8.7% $35,000 - $49,999 10,095 12.4% 10,104 11.7% $50,000 - $74,999 11,827 14.5% 10,197 11.8% $75,000 - $99,999 9,424 11.6% 10,499 12.1% 200,135 $100,000 - $149,999 10,192 12.5% 12,514 14.4% $150,000 - $199,999 4,759 5.8% 5,866 6.8% $200,000+ 5,455 6.7% 6,569 7.6%

Median Household Income $51,340 $54,372 Median Age Average Household Income $78,845 $86,149 Per Capita Income $35,185 $38,202 Census 2010 2016 2021 Population by Age Number Percent Number Percent Number Percent 0 - 4 9,751 5.2% 9,985 5.0% 10,579 5.0% 5 - 9 8,225 4.4% 8,880 4.4% 8,900 4.2% 10 - 14 8,295 4.4% 8,248 4.1% 8,503 4.0% 34.1 15 - 19 9,993 5.3% 9,822 4.9% 9,393 4.4% 20 - 24 21,157 11.3% 22,368 11.2% 22,013 10.4% 25 - 34 43,216 23.0% 44,653 22.3% 47,730 22.6% 35 - 44 28,761 15.3% 30,443 15.2% 32,815 15.5% 45 - 54 23,227 12.4% 23,859 11.9% 24,058 11.4% Median Household Income 55 - 64 17,561 9.3% 20,078 10.0% 21,443 10.1% 65 - 74 9,291 4.9% 12,529 6.3% 15,284 7.2% 75 - 84 5,934 3.2% 6,380 3.2% 7,550 3.6% 85+ 2,619 1.4% 2,890 1.4% 3,117 1.5% Census 2010 2016 2021 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 116,848 62.1% 121,110 60.5% 125,569 59.4% $51,340 Black Alone 15,095 8.0% 16,186 8.1% 16,884 8.0% American Indian Alone 1,596 0.8% 1,639 0.8% 1,696 0.8% Asian Alone 9,066 4.8% 10,771 5.4% 12,393 5.9% Pacific Islander Alone 600 0.3% 657 0.3% 700 0.3% Some Other Race Alone 36,394 19.4% 39,986 20.0% 43,177 20.4% Two or More Races 8,432 4.5% 9,787 4.9% 10,964 5.2%

Hispanic Origin (Any Race) 74,638 39.7% 82,580 41.3% 90,709 42.9% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 3 mile radius Latitude: 32.71151 Longitude: -117.15148

Trends 2016-2021

2.5

1.5

1 Area 0.5 State Annual Rate (in percent) Rate Annual USA 0 Population Households Families Owner HHs Median HH Income

Population by Age 22 20 18 16 14 12 10 Percent 8 6 2016 4 2021 2 0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2016 Household Income 2016 Population by Race 60 $15K - $24K $25K - $34K 10.6% 55 9.3% 50 <$15K $35K - $49K 45 16.6% 12.4% 40 35 30

Percent 25 $200K+ 20 6.7% $50K - $74K 14.5% 15 $150K - $199K 5.8% 10 5 $75K - $99K $100K - $149K 11.6% 12.5% 0 White Black Am. Ind. Asian Pacific Other Two+

2016 Percent Hispanic Origin: 41.3%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 5 mile radius Latitude: 32.71151 Longitude: -117.15148

Summary Census 2010 2016 2021 Population 470,523 496,110 521,522 Demographics Households 173,142 181,443 191,037 Families 88,842 92,282 96,706 Average Household Size 2.51 2.53 2.53 Owner Occupied Housing Units 55,764 55,155 57,318 Renter Occupied Housing Units 117,378 126,287 133,719 Median Age 32.1 32.8 33.5 Trends: 2016 - 2021 Annual Rate Area State National Population 1.00% 0.87% 0.84% Households 1.04% 0.79% 0.79% Families 0.94% 0.79% 0.72% 5 MILE RADIUS Owner HHs 0.77% 0.69% 0.73% Median Household Income 0.65% 2.73% 1.86% 2016 2021 Population Households by Income Number Percent Number Percent <$15,000 29,683 16.4% 33,344 17.5% $15,000 - $24,999 21,131 11.6% 20,239 10.6% $25,000 - $34,999 18,923 10.4% 18,429 9.6% $35,000 - $49,999 25,738 14.2% 26,197 13.7% $50,000 - $74,999 28,810 15.9% 24,938 13.1% $75,000 - $99,999 19,646 10.8% 22,225 11.6% 496,110 $100,000 - $149,999 20,050 11.1% 24,445 12.8% $150,000 - $199,999 8,311 4.6% 10,312 5.4% $200,000+ 9,141 5.0% 10,901 5.7%

Median Household Income $46,463 $47,989 Median Age Average Household Income $70,415 $76,456 Per Capita Income $27,806 $29,959 Census 2010 2016 2021 Population by Age Number Percent Number Percent Number Percent 0 - 4 30,165 6.4% 30,575 6.2% 32,405 6.2% 5 - 9 26,509 5.6% 27,778 5.6% 27,727 5.3% 10 - 14 26,381 5.6% 26,313 5.3% 26,515 5.1% 32.8 15 - 19 33,092 7.0% 32,036 6.5% 30,697 5.9% 20 - 24 50,388 10.7% 53,217 10.7% 52,654 10.1% 25 - 34 93,641 19.9% 98,844 19.9% 106,007 20.3% 35 - 44 68,335 14.5% 70,144 14.1% 75,273 14.4% 45 - 54 56,979 12.1% 57,409 11.6% 57,855 11.1% Median Household Income 55 - 64 42,357 9.0% 48,280 9.7% 51,643 9.9% 65 - 74 22,184 4.7% 29,632 6.0% 35,911 6.9% 75 - 84 14,319 3.0% 15,122 3.0% 17,576 3.4% 85+ 6,173 1.3% 6,761 1.4% 7,260 1.4% Census 2010 2016 2021 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 249,602 53.0% 256,993 51.8% 265,734 51.0% $46,463 Black Alone 47,333 10.1% 48,812 9.8% 49,792 9.5% American Indian Alone 3,928 0.8% 3,984 0.8% 4,092 0.8% Asian Alone 46,484 9.9% 51,331 10.3% 56,366 10.8% Pacific Islander Alone 2,313 0.5% 2,428 0.5% 2,516 0.5% Some Other Race Alone 98,617 21.0% 107,488 21.7% 115,476 22.1% Two or More Races 22,246 4.7% 25,074 5.1% 27,546 5.3%

Hispanic Origin (Any Race) 201,086 42.7% 219,689 44.3% 239,106 45.8% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

1425 Market St, San Diego, California, 92101 Prepared by Esri Ring: 5 mile radius Latitude: 32.71151 Longitude: -117.15148

Trends 2016-2021

2.5

1.5

1 Area 0.5 State Annual Rate (in percent) Rate Annual USA 0 Population Households Families Owner HHs Median HH Income

Population by Age 20 18 16 14 12 10

Percent 8 6 4 2016 2021 2 0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2016 Household Income 2016 Population by Race

$15K - $24K 50 $25K - $34K 11.6% 10.4% 45

<$15K 40 16.4% $35K - $49K 35 14.2% 30 25 Percent $200K+ 20 5.0% 15 $150K - $199K 4.6% $50K - $74K 10 15.9% $100K - $149K 5 11.1% $75K - $99K 0 10.8% White Black Am. Ind. Asian Pacific Other Two+

2016 Percent Hispanic Origin: 44.3%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 17, 2016

©2016 Esri Page 6 of 6 Kevin Nolen, LEED AP Tim Winslow Jason Kimmel +1 858 546 5487 +1 858 546 5436 + 1 858 546 5414 [email protected] [email protected] [email protected] CA Lic. # 01840398 CA Lic. # 00891667 CA Lic. # 01328121

CONFIDENTIALITY AGREEMENT, BUYER REGISTRATION 1425 Market Street San Diego, CA 92101

The undersigned has been advised that Cushman & Wakefield has been retained on an exclusive basis by the Owner and/or its affiliates (the Owner) with respect to the offering for sale located at and described as APN: 535-153-11, 535-153-14 (the "Property"). The Owner has indicated that all inquiries and communications with respect to the contemplated sale of such Property be directed to Cushman & Wakefield. The Owner shall pay all fees due Cushman & Wakefield in connection with the sale of the Property. The undersigned acknowledges that any other fees due to brokers for the undersigned’s representation will not be the responsibility of the Owner or Cushman & Wakefield. The undersigned also hereby acknowledges that it is a principal or an investment advisor in connection with the possible acquisition of the Property.

On behalf of the Owner, Cushman & Wakefield may make such Confidential Information/Evaluation Material available to the undersigned upon execution of this Confidentiality Agreement. The Confidential Information/Evaluation Material is intended solely for your use in considering whether to pursue negotiations to acquire the Property. This is not an agreement to sell the Property nor an offer of sale. No agreement binding upon the Owner of the Property, or any of its associated or affiliated companies, shall be deemed to exist, at law or equity, until the Owner of the Property enters into a formal binding agreement of sale.

The Confidential Information/Evaluation Material does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information that a prospective investor may need or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of Cushman & Wakefield; and therefore, are subject to material variation. This Confidential Information/Evaluation Material does not constitute an indication that there has been no change in the business or affairs of the Property or Cushman & Wakefield since the date of preparation of this Confidential Information/Evaluation Material. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Cushman & Wakefield nor any of its respective officers, agents or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of this Confidential Information/Evaluation Material or any of its contents, and no legal commitment or obligation shall arise by reason of the Confidential Information/Evaluation Material or its contents. Analysis and verification of the Confidential Information/Evaluation Material is solely the responsibility of the prospective buyer.

The Confidential Information/Evaluation Material contains brief, selected information pertaining to the business and affairs of the Owner, and has been prepared by Cushman & Wakefield, primarily from information supplied by the Owner or the Owner's agent. It does not purport to be all-inclusive or to contain all the information that a prospective purchaser may desire. Neither Cushman & Wakefield, nor the Owner make any representation or warranty, expressed or implied, as to the accuracy or completeness of the Confidential Information/Evaluation Material and no legal liability is assumed or to be implied with respect thereto.

By executing this agreement, the undersigned agrees that it will hold and treat the Confidential Information/Evaluation Material in the strictest confidence, that it will not photocopy or duplicate it, that it will not disclose the Confidential Information/Evaluation Material or any of its contents to any other entity (except for outside advisors retained by it if necessary, in its opinion, to assist in its determination of whether or not to make a proposal, provided that such persons agree to be bound by the terms of this confidentiality agreement) without prior written authorization of Cushman & Wakefield, and that it will not use the Confidential Information/Evaluation Material or any of its contents in any fashion or manner detrimental to the interest of Cushman & Wakefield. If the undersigned does not wish to pursue acquisition negotiations it hereby agrees to return the Confidential Information/Evaluation Material to Cushman & Wakefield.

Broker Buyer Only Signature Signature

Name (Print) Name (Print)

Company: Title:

Address

Title: Phone:

Facsimile:

Date: E-Mail Address

DUE DILIGENCE REQUEST If you would like to receive additional due diligence for the Property, please complete the above and return via facsimile to us at (858) 630-6320 Attn: Kevin Nolen or email to [email protected]