UNDERSTANDING THE RETAIL VOID 'S

I-880 CORRIDOR - DEMOGRAPHICS & FACTS FREMONT,

Prepared for:

Summer, 2011 your appstore. free barcode app from Please download your

INTRODUCTION

We have prepared the following information for to show you the The Great Retail Void along the I-880 corridor in San Francisco's East Bay Area. With 14 locations through- out the Bay Area, APPLE'S closest locations to The Block in Fremont and the I-880 corridor are:

• Stoneridge Mall, Pleasanton - 18 miles away • Downtown Walnut Creek - 34 miles away • , Palo Alto – 19 miles away • Bay Street, Emeryville - 32 miles away

FREMONT’S SHOPPING PROFILE As you’ll see from the demographic and marketing study prepared by CLARITAS, the buying patterns of Fremont residents refl ect a high-end infl uence - “urban type” shopper seeking lifestyle retail and pedestrian-oriented shopping centers. Fremont shoppers are likely to be very comfortable in frequent upgrades to their electronics or other consumer items and like to purchase quality and luxury products.

WHAT FREMONT SHOPPERS BUY? Shoppers seek stylish, high quality and fashionable goods. They also seek dining options such as California Pizza Kitchen, Cheesecake Factory and trendy, fast casual dining experiences.

WHAT FREMONT NEEDS? The psychographic patterns prepared by CLARITAS demonstrate that the Fremont trade area provides an opportunity for retailers to address an unmet need – THE GREAT RETAIL VOID!

• Apple • Men’s Business Suits • Fashion apparel - J Crew, Banana Republic, Gap, Ann Taylor • Department stores – or Bloomingdales • Sporting goods- skiing, snowboarding, tennis, golf • Watches, both luxury and sporty • Travel Accessories BAY AREA MAP - MAJOR RETAIL

PETALUMA NAPA FAIRFIELD DEMOGRAPHICS AND DRIVE TIMES: VALLEJOVALLEJO Demographics 3-Mile 5-Mile 7-Mile BENICIA Population 81,594 199,669 336,976 Avg. HH Income $115,274 $111,970 $111,425 MARTINEZ FAIRFAX CONCORD ANTIOCH Daytime Population 100,947 206,590 364,418 SUN VALLEY MALL, BRENTWOOD CONCORD Drive Times 10 Min. 15 Min. 30 Min. LAFAYETTE BROADWAY PLAZA, Population 182,036 432,848 2,895,805 BERKELEYBEEERRKELEYK WALNUT CREEK SAUSALITO EMERYVILLEEMERYVILLE Avg. HH Income $109,374 $108,166 $105,682

SAN FRANCISCO CENTRE, BAY STREET, EMERYVILLE Daytime Population 192,239 522,679 2,942,632 SAN FRANCISCO OAKLANDOAKLAND *2010 Demographics - Map Info SAN RAMON SANSAN STONERIDGE MALL, PLEASANTON FRANCISCOFRANCISCO DUBLIN LIVERMORE

HAYWARD

BURLINGAME UNION CITY NEWPARK MALL, NEWARK HILLSDALE SHOPPING CENTER, FREMONTFREMONT SAN MATEO CITY OF SAN MATEO

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THE BLOCK YOU ARE HERE

O Prepared For:

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Half 5 Mi. 7 Mi. 10 Mi. STANFORD SHOPPING CENTER PACIFIC Moon Bay PALO ALTO GREAT MALL MILPITAS 6 5 Mountain OCEAN MILPITAS WOODSIDE PALO ALTO View

1 1301 Burlingame Ave. Burlingame 94010 LOS ALTOS Santa Clara 2 1516 Redwood Hwy. Corte Madera 94925 SANTANA ROW/VALLEY FAIR 3 5656 94608 SAN JOSE/ SANTA CLARA 4 23 N. Santa Cruz Ave. Los Gatos 95030 5 451 University Ave. Palo Alto 94301 13 SAN 6 183 Stanford Shopping Ctr. Palo Alto 95304 CUPERTINO JOSE 7 One Stoneridge Mall Pleasanton 94588 8 2125 Chestnut Street San Francisco 94123 CAMPBELL OAKRIDGE MALL 9 One Stockton Street San Francisco 95108 SARATOGA SAN JOSE 10 3251 20th Ave. San Francisco 94132 11 11 925 Blossom Hill Road San Jose 95123 LOS GATOS 12 340 Hillsdale Shopping Ctr. San Mateo 94403 4 13 2855 Stevens Creek Blvd. Santa Clara 95050 14 1129 S. Main Street Walnut Creek 94596

Distances to Major Shopping Centers Regional Retail Distance/Miles Drive Time/Mins. Bay Street, Emeryville 32.10 36 Broadway Plaza, Walnut Creek 33.75 37 Great Mall, Milpitas 9.25 15 Hillsdale Shopping Center, San Mateo 28.3 33 NewPark Mall, Newark 2.43 5 Oakridge Mall, San Jose 25.9 28 San Francisco Center, San Francisco 38.22 46 Santana Row/ValleyFair San Jose/Santa Clara 15.39 18 Stanford Shopping Center, Palo Alto 19.19 30 Stoneridge Mall, Pleasanton 17.88 21 I 11-1262 (08-2409) • 8/11 WHY YOU SHOULD BE AT THE BLOCK

WHAT'S ALREADY HERE: SITE RESUME/TIMING: RETAILERS – ANCHORS: • 865,000 Square Feet of Retail - • 26.95 Acres • Target 98% Leased • ±320,000 Square Feet • Century Theaters • Nordstrom Rack • Parking: 1,646 Stalls (Cinemark - 16 screens) • Old Navy • Target: Opening March 2012 • PF Chang's • Century Theaters: Opening April 2012 FEATURES: • DSW • Shops Delivery: Q4 2012 • Creative way-finding & signage • Babies R Us/ Toys R Us • Shop Openings: Q4 2012/ Q1 2013 extending from Auto Mall Parkway • Claim Jumper along Blvd. to the projects new heart, THE BLOCK SITE DESCRIPTION/ • Festive, pedestrian-friendly common LOCATION: FREMONT, CA MASTER PLAN: areas for customer gatherings • Served by Interstates • I-880 at Auto Mall Parkway • Exceptional architectural features I-880 and I-680, Highway 84 • City of Fremont, CA and design (Dumbarton Bridge), and County of Alameda numerous arterials including Auto • Interactive sculptures throughout • Fourth Largest City in the Bay Area Mall Parkway/Durham Road, THE BLOCK designed by world- Cushing Parkway, Boscell Road, renowned sculptor, Aris Demetrios OPPORTUNITIES: and Christy Street • Entertainment and activity focus, • 8.3 million square foot with 16-screen “state-of-the-art” • Fashion, Junior Apparel and masterplan on 400 acres Century Theaters projecting to bring Lifestyle Retailers over 1 million movie-goers annually • The combination of Pacific • Junior Anchors to THE BLOCK Commons and THE BLOCK • Pads will bring over 1.1 million square • Specialty Restaurant Concepts feet of national and regional- serving retail to the project The Plaza

THE VISION • The new entertainment and fashion Theater Plaza district serving the I-880 corridor • The premier place for shopping, dining and gathering • Planned and designed to capture the senses and captivate shoppers, diners and movie-goers • Energized signage along Pacific Commons Blvd. and key Gateway corners to attract customers to the heart of the project, THE BLOCK

Entertainment Court

To view a video of the Block, scan this barcode icon with any smart phone.

or see THE BLOCK on

http://www.youtube.com/user/CCNKF Claim Jumper

Theater Plaza

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Auto Mall Pkwy

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Buncheche DriveD THE DEMOGRAPHIC STORY

A breakdown of the demographics – Fremont, California

TRADE AREA/POPULATION

• 4th largest city in the Area • 2nd largest city in the • 15th largest City in State of California • Population: 214,000 • Daytime Population: 241,000 • Secondary Trade Area – 397,000 - includes the surrounding cities of Newark, Union City and Milpitas, which are within a 10-15 minute drive time

POPULATION MAKE-UP Like all Bay Area communities, Fremont is ethnically diverse: 33% White | 50% Asain | 14% Hispanic | 4% Black | 3% Other • Over half of Fremont’s population was actually born in the U.S. • 91% of Fremont’s population has been in the U.S. for 7 or more years

EDUCATION Fremont has a highly educated population with 49% having Bachelors, Graduate, or Professional degrees.

RESIDENTIAL

• There are 71,000 households • 32,000 households have 1 or more children under the age of 18 • Average household size – 3 • Average house sale price of over $650,000 THE DEMOGRAPHIC STORY

INCOME Fremont has an estimated annual spending potential of $2.7 Billion! • Average Household Income is over $123,000 • While residential real estate has suffered across the nation, home values in Fremont have remained quite strong with an average home sale price of over $650,000

LARGEST EMPLOYERS AND SALES TAX GENERATORS Fremont enjoys a vibrant and well-diversifi ed, globally connected economy • Over 1200 high-tech, clean & green tech and life sciences fi rms • Fremont Businesses were the recipients of nearly 50% of all East Bay venture capital investment in 2009 and nearly 20% in 2010 • Fremont is home to innovation with a thriving “Clean and Green Tech” cluster, including industry giants such as Tesla, Solyndra, Solaria and Deeya Energy • Fremont is considered a high tech R&D and manufacturing capital of the Bay Area with manufacturing making up 25% of all employment in the City and contains 64% of all R&D building inventory in the East Bay • A signifi cant reason technology and other innovative companies locate in Fremont is the highly educated population and skilled workforce – over 50% of Fremont’s population has a Bachelor’s or post-graduate degree • Some of the City’s largest employers and sales tax producers are listed below:

• Autowest Honda • Magnussen Lexus • BMW of Fremont • Offi ce Depot • Boston Scientifi c • Safeway • Costco • Seagate • Fletcher Jones Mercedes • Silicon Graphic International • Fletcher Jones Porsche • Solyndra • Fremont Unifi ed School District • Sysco Food Services • Fry’s Electronics • Target • Home Depot • Washington Hospital • Lam Research • Western Digital • Lowe’s THE DEMOGRAPHIC STORY

PSYCHOGRAPHICS - Prepared by Claritas

DEFINITION The use of demographics to study and measure attitudes, values, lifestyles, and opinions for marketing purposes.

Claritas, a San Diego marketing and demographics fi rm, has been tracking household behavior, including lifestyle and buying habits for 30 years. In addition to the basic demographics such as age and income, the data tells us where people buy clothes, dine, shop and entertain themselves. This data comes from the US census, car warranties, grocery store reward programs, and magazine subscriptions. This data has long been used by retailers in determining where their ideal consumers are located. We are now looking at this data to help us determine which retailers may be ideal for Fremont.

• Fremont’s approximately 71,000 homes were divided into five major categories. Please note that the top two categories, Young Digerati and Money and Brains combined equal nearly 60% of all households. • Please note that of these categories, the top three are categorized as an “Urban Uptown” social group. The other two are considered “Elite Suburbs”.

FREMONT PSYCHOGRAPHICS

Blue Blood Estates 7%

Movers & Shakers 6%

Young Digerati 31% Bohemian Mix 9%

Other Categories 19%

Money & Brains 28% THE DEMOGRAPHIC STORY

YOUNG DEGERATI – MONEY AND BRAINS – BOHEMIAN MIX – IN MORE DEPTH IN MORE DEPTH IN MORE DEPTH

• Fremont’s largest category with • Second largest category with • Third largest group with 6,300 over 21,000 homes and 31% of the nearly 20,000 homes and 28% of home and approximately 9% of population the population the population • These tech-savvy singles and • Affluent Empty Nesters, with a mix • Younger than 55 couples live in fashionable neigh- of family types • Mix of family types borhoods on the urban fringe • Age ranges from 45-64 • College grad • Age ranges from 25-44, lifestage • 87% of this category own homes • Early adopters who are quick to known as “Young Achievers” • High income category check out the latest movie, night- • Graduate plus education • Shops at Bloomingdales, club, laptop and microbrew • High Income Category , Saks, Neiman • Shops at Bloomingdales (#1), • These residents shop at Banana Marcus, the Gap, Costco Macy’s, The Gap, J Crew, Republic, JCrew, Blooming- • New European luxury cars, includ- and Banana Republic dales and Nordstrom ing Mercedes, Acura, Infiniti and • Buys Puma shoes • Drive BMW, Mercedes, European Lexus • Drives a Mini Cooper luxury vehicles • Buy men’s suits at least once a • Owns a Mac Computer • Reads NY Times, The New Yorker, year • Eats at AuBon Pain, California Wired, Travel & Leisure • Owns a Mac Computer Pizza Kitchen and Chipotle • Owns a Mac Computer • Reads the NY Times, Food and • Dines at Au Bon Pain, Cheesecake Wine, Fortune,and Travel and Factory, Calif. Pizza Kitchen Leisure • Foreign Travel annually • Foreign Travel SUMMARY

We’ve given you compelling facts about the retail potential of the I-880 corridor and specifi cally Fremont. With an estimated annual spending potential of $2.7 BILLION DOLLARS, Fremont is ready and willing to enjoy the opportunity to shop and spend locally. The combination of Pacifi c Commons and THE BLOCK will bring over 1.1 million square feet of national and regional-serving retail to the project.

TAKE THIS OPPORTUNITY TO FILL THE GREAT RETAIL VOID

AND JOIN THE EXCITEMENT!

To view a video of the Block, scan this barcode icon with any smart phone.

or see THE BLOCK on

http://www.youtube.com/user/CCNKF

08-2409.08/11 A PLACE TO: Gather Enjoy Celebrate Follow us on:

http://on.fb.me/kKYkDB

http://twitter.com/#!/TheBlockCCNKF

For further information, please contact:

SANDY BERRY [email protected] 408.982.8474 Lic. #00880014

DANIELLE BROMSTEAD [email protected] 925.974.0235 Lic. #01339574

LINDY SPIEKER [email protected] 408.982.8426 Lic. #01489149

SANTA CLARA 2804 Mission College Blvd., Suite 120 Santa Clara, CA 95054 Tel: 408.727.9600 Fax: 408.987.4156

WALNUT CREEK 1333 N. California Blvd., Suite 343 Walnut Creek, CA 94596 Tel: 925.974.0100

08-2409•08/11