Core La Jolla Investment Opportunity Offering

CORE LA JOLLA INVESTMENT OPPORTUNITY

OFFERING MEMORANDUM EXCLUSIVELY LA JOLLA OFFERED BY: The Jewel of Southern California

MIKE SLATTERY 858.546.5437 [email protected] CA License 00761146

JASON KIMMEL 858.546.5414 [email protected] CA License 01328121

TIM WINSLOW 858.546.5436 [email protected] CA License 00891667

KEVIN NOLEN 858.546.5487 [email protected] CA License 01840398

4747 Executive Drive, 9th Floor San Diego, CA 92121 T 858.546.5400 F 858.630.6320 www.cushmanwakefield.com Offering Statement/Disclaimer

Cushman & Wakefield (hereinafter “CW”) has its employees disclaim any and all liability for thereunder have been satisfied or waived. CW is been retained as exclusive advisor by Prospect representations and warranties, expressed and not authorized to make any representations or Street Associates, a California limited partnership implied, contained in, or for omission from, this agreements on behalf of Owner. (the “Owner”) for the sale of 850 Prospect Street Investment Offering or any other written or oral (the “Property”), located in La Jolla, CA 92037. communication transmitted or made available to This Offering and the contents, except such the recipient. This Offering does not constitute information which is a matter of public record This Offering has been prepared by CW a representation that there has been no change or is provided in sources available to the public for use by a limited number of parties and in the business or affairs of the Property since (such contents as so limited herein are called does not purport to provide a necessarily the date of preparation of the package. Analysis the “Contents”), are of a confidential nature. By complete summary of the Property or any of and verification of the information contained in accepting the package, you agree (i) to hold the documents related thereto, nor does it this package is solely the responsibility of the and treat it in the strictest confidence, (ii) not 7598 GIRARD AVENUE purport to be all-inclusive or to contain all of prospective purchaser. to photocopy or duplicate it, (iii) not to disclose the information which prospective investors the package or any of the contents to any other may need or desire. All projections have been Additional information and an opportunity to entity (except to outside advisors retained developed by CW, and designated sources inspect the Property will be made available by you, if necessary, for your determination and are based upon assumptions relating to upon written request to interested and qualified of whether or not to make a proposal and the general economy, competition, and other prospective investors. from whom you have obtained an agreement factors beyond the control of the Owner and of confidentiality) without the prior written CW, therefore, are subject to variation. No Owner and CW each expressly reserve the right, authorization of Owner or CW, (iv) not use the representation is made by CW or Owner as to at their sole discretion, to reject any and all package or any of the contents in any fashion or the accuracy or completeness of the information expressions of interest or offers regarding the manner detrimental to the interest of Owner or contained herein, and nothing contained Property and/or terminate discussions with any CW, and (v) to return it to CW immediately upon herein is, or shall be relied on as, a promise or entity at any time with or without notice. Owner request of CW or Owner. representation as to the future performance of shall have no legal commitment or obligation the Property. Although the information contained to any entity reviewing this Offering or making If you have no further interest in the Property, herein is believed to be correct, CW or Owner an offer to purchase the Property unless and please return this Investment Offering forthwith. and its employees disclaim any responsibility for until a written agreement for the purchase of inaccuracies and expect prospective purchasers the Property has been fully executed, delivered, to exercise independent due diligence in verifying and approved by Owner and its legal counsel, all such information. Further, CW, Owner, and and any conditions to Owner’s obligations

4 EXECUTIVE This is one of the last remaining opportunities to purchase a freestanding surface parking lot in SUMMARY the heart of La Jolla with mixed use zoning and VENUE neighbors such as Vons, The Lot, The Conrad, 24 FAY A Hour Fitness, and many others. The property has a walkability score of 98. 7598 GIRARD AVENUE THE PROPERTY E IRAR Cushman and Wakefield, as exclusive agent for the Seller, is pleased to present to qualified investors MARKET OVERVIEW and developers a very rare opportunity to acquire a The La Jolla Village market is made up of nearly parcel in the heart of La Jolla located at one of the 8,500 acres, with 22,000 homes and over 47,000 most visible intersections in all of San Diego (Torrey residents. This upscale community consists of Pines Road and Girard Avenue). Girard avenue is seven miles of prime coastline that boasts some the one of the most iconic retail streets in all of San of the most expensive real estate in Southern Diego and connects the core of La Jolla from Genter California. The average household income in La to Prospect Street. The property is approximately Jolla is estimated to be $144,214. The commercial VENUE 12,245 SF with 25 surface parking spaces. Various real estate market in La Jolla Village emulates this plans have been considered including developing wealth, commanding some of the highest rents in GIRARD A 16 units (two of which would be affordable) (with Southern California. La Jolla is a very strong market approximately 5,400 SF of retail space and 17 tuck that caters to a unique clientele of both foreign under parking spaces). The property is located in and domestic businesses, residents and investors. the La Jolla PDO Zone 1 which allows a 1.7 FAR Downtown La Jolla, specifically Prospect Street and for mixed use developments that include retail and Girard Avenue corridors, consistently generate the TORREY PINES R residential. highest levels of retail and office activity in the Village of La Jolla. As a preferred location for office and With the pent up demand of residential housing in retail tenants seeking San Diego’s premier business core locations we believe these units would lease O address, demand for space in the Village of La Jolla AD in the range of 2,250 PSF for 600 SF units. We has increased tremendously over the past 10 years. also believe that retail in this specific location with Downtown La Jolla is home to major restaurants visibility of 29,731 cars from Torrey Pines Rd and and hotels, high-end boutiques, galleries, law firms, Girard Ave. per day would attract the highest quality securities firms, insurance firms, accounting firms of tenants. The property has a short term lease with and real estate offices. Vons (the adjacent neighbor) for excess parking at TORREY PINES RO $4,120 per month. Vons has the desire to continue AD this lease.

6 7598 GIRARD AVENUE, LA JOLLA, CA / 7 OFFERING SUMMARY ASKING PRICE: ZONING: E$3,200,000 IRAR LJPD-1A which allows 29 residential units per the acre (1.7 FAR for projects consisting of retail and residential) PROPERTY OFFERING: Fee simple interest in 12,245 SF of land with 25 surface parking spaces HEIGHT LIMIT: 30 feet TENANT: Vons parking (short term lease) F.A.R.: 1.7 – Retail / residential mixed use (12,245 SF x 1.7 = 20,733 SF) ADDRESS: 1.3 – Office / residential mixed use (12,245 SF x 1.3 = 15,981 SF) 7598 Girard Avenue, La Jolla, CA 92037 CURRENT PARKING SPACES: LAND SIZE: 25 surface spaces PEARL STREET ±12,245 SF LEASE TYPE: POTENTIAL PROJECT SIZE: Full service gross (MTM) ±20,811 SF F EADS A A LEASE TERM: Y A ASSESSOR’S PARCEL NUMBER: $4,120 per month through August 31, 2019 GIRARD AVENUE HERSCHEL A VENUE 350-462-11 VENUE

7598 GIRARD AVENUE

Note: Property is being sold on the “as-is, where-is” condition of the Property. Qualified prospective investors will have the opportunity to inspect the Property. Each prospective investor is to rely solely upon its own independent investigation, evaluation, and judgment as to the condition of the Property. The Owner reserves the right to sell or withdraw the Property at any time without prior notice.

VENUE

8 PROPERTY HIGHLIGHTS

VERY RARE INVESTMENT OPPORTUNITY IN LA JOLLA This is a very rare opportunity to invest in a core asset in one of the SIGNIFICANT BARRIERS TO ENTRY more affluent neighborhoods in the country. The La Jolla Village commercial real estate market has significant barriers to entry due to the limited sites available for future

DEVELOPMENT POTENTIAL development and there are currently no new speculative projects The property allows a developer the ability to construct a 20,816 SF under construction. Due to the scarcity of commercially zoned residential / retail project consisting of 16 units (two of which would land for development, its coastal orientation, and current zoning be affordable) and ground floor retail. guidelines, these barriers to entry are heightened in La Jolla Village. With a lack of available land allocated for future mixeduse

SHORT TERM LEASE development, and increasing demand by smaller professional office There is a short term lease with the neighboring property owner users, retailers, and residents, it is very likely that prime, well located Vons (Albertsons) properties will continue to remain in high demand.

7598 GIRARD AVENUE YEAR-ROUND MILD CLIMATE/AFFLUENT POPULATION/DESTINATION RESORT STRATEGIC LA JOLLA VILLAGE LOCATION LOCATION The Property’s location offers easy access to residents and visitors La Jolla is a beautiful seaside resort, bordered by Pacific Beach and alike, near the high traffic intersection of Torrey Pines Road and VENUE Torrey Pines State Reserve. A recent Coldwell Banker study named Girard Avenue in the heart of downtown La Jolla’s retail area. La Jolla as one of the most affluent communities in the United States, Both Prospect Street and Girard Avenue are major tourist and GIRARD A ranked above Greenwich Village and Beverly Hills. It has a down-to- visitor serving streets serving residents, visitors and business earth feel due to the beautiful natural scenery. In addition to fine professionals. Typical businesses include restaurants and outdoor restaurants, gorgeous beaches, hotels and art galleries, La Jolla is cafes, upscale boutiques, jewelers, art galleries, financial services home to renowned educational and research institutions including and brokerage houses, day spas and salons, and a wide variety of the University of California San Diego and Scripps Research Institute. upscale specialty La Jolla is also home to the beautiful Torrey Pines Golf Course, made retailers and services. In addition, there are numerous luxury residential condominium projects, single family homes and upscale TORREY PINES R famous by the PGA tour Farmers Insurance Invitational held here in the winter. La Jolla Cove, Black’s Beach, Downtown La Jolla, La apartment projects located within close walking distance to the OAD Valencia Hotel and Children’s Beach are just a few additional La Jolla Property, which continue to provide a valuable source of affluent resort and tourist attractions. customers.

11 11/3/2015 Google Maps

Google Maps

CO ELLEN AS BROWNING 3 T 1 2 B SCRIPPS PARK 3 L 5 V AREA

4 D VD 1 BL MANCHESTER La Jolla Village Amenities T 1 T FINANCIAL INFORMATION AS BLDG. LA JOLLA CT S CO E 1 COVE PLAZA P PR S IV O OSPEC R P ANHOE A WALL ST T ST RESTAURANTS GALLERIES / ARTS RETAIL N BLDG. JE NER 2 18 7 ST 1 1 George’s at the Cove 1 San Diego Museum of 1 Brooks Brothers 3 E IRAR GRANDE 2 Contemporary art WALL ST 2 Donovan’s Steak House Chico’s/White House|Black Market COLONIAL HOTEL VE 2 S. GIRARD A 1 LANDMARK 8 19 2 The Athenaeum Music & Arts BANK BLDG 3 Eddie V’s Prime Seafood 3 Tommy Bahama VD PROSPECT 2 Library PLAZA 3 4 4 Crab Catcher Restaurant 3 The Conrad / La Jolla Cinema 4 Gap, Banana Republic T BL 8 5 6 Society / La Jolla Performing Arts AS VE 5 Duke’s La Jolla 5 LuluLemon Athletica 4 2 Center (Under Construction) CO 7 6 The Cottage Restaurant 6 Talbots 3 Whisk N’ Ladle 9 7 7 Reebok VERAD5O ST THE CROSBY ORREY PINES RD BANKS SIL F 5 4 T La Plaza La Jolla 1 A CENTER 8 8 Ralph Lauren/Polo Y A 1 Morgan Stanley 6 -Catania Coastal Cuisine 9 La Jolla Galleria VE Union Bank 8 -Let Petite Bistrot 2 6 10 Sur La Table LA JOLLA 3 Chase Bank 7 11 DESIGN 20 11 24hr Fitness LA JOLLA CENTER 4 US Bank KLINE ST 9 COFFEE SHOPS COMMUNITY 10 12 Vons 3 5 Charles Schwab T PARK 1 Starbucks FAY 17 13 Ferarri 6 Smith Barney VILLAGE 2 Harry’s Coffee Shop ECT S PLAZA 14 CVS Pharmacy 12 8 2 7 Bank of America 3 Richard Walker Pancake House OSP 15 BevMo F 8 Wells Fargo Bank PR 2 A 7598 GIRARD AVENUE THE Y A Maserati GIRARD A 16 BISHOP’S EADS A VE 13 BREWERIES THE LOT / Luxury Cinemas SCHOOL 14 HOTELS 17 15 16 1 Karl Strauss Brewery La Valencia Hotel 18 Kate Spade VE 1 2 La Jolla Brewery VE Yogasmoga 2 Grande Colonial Hotel 19 Pharmaca 3 La Jolla Cove Hotel & Suites 20 PEARL ST 4 Best Western Inn By The Sea

5 Empress Hotel 12 N 13

https://www.google.com/maps/@32.8427613,117.2692184,1782m/data=!3m1!1e3?hl=en 1/1 The La Jolla Village market is made up of nearly 8,500 acres, with 22,000 homes and over 47,000 EDUCATION Market MARKET residents. This upscale community consists of seven miles of prime coastline that boasts some University of California of San Diego is the most Overview OVERVIEW of the most expensive real estate in Southern notable center for education in La Jolla. Located California. The average household income in La on the North end, you can also find the Scripps Jolla is estimated to be $144,214. The commercial Institution of Oceanography and the headquarters real estate market in La Jolla Village emulates this for National University. There are also several wealth, commanding some of the highest rents in research institutions located near UCSD and the Southern California. La Jolla is a very strong market Torrey Pines Science Park such as the Scripps that caters to a unique clientele of both foreign and Research Institute, the Burnham Institute (formerly domestic businesses, residents and investors. called the La Jolla Cancer Research Foundation) and the Salk Institute.

Downtown La Jolla, specifically Prospect Street RETAIL MARKET La Jolla’s preparatory schools are: La Jolla Country ATTRACTIONS & ACTIVITIES and Girard Avenue corridors, consistently generate Day School, The Bishop’s School and the Preuss the highest levels of retail and office activity in the The present retail market in La Jolla is comprised of School UCSD. La Jolla High School is part of the La Jolla is the home to the beautiful Torrey Pines Village of La Jolla. As a preferred location for office 1,971,801 RSF of projects (all 5,000 SF and larger). San Diego City School district and is home to Golf Course, made famous by the PGA tour Farmers and retail tenants seeking San Diego’s premier Driven by the demand that has come from retailers several famous alumni, including Raquel Welch and Insurance Invitational held here in the winter. Just business address, demand for space in the Village of national and international stature, La Jolla retail Gregory Peck. down the steps from the golf course is the more of La Jolla has increased tremendously over the market continues to boom. Retail lease rates infamous nude beach, Black’s Beach. Walking past 10 years. Downtown La Jolla is home to major currently on Girard Ave and Prospect Street range along the beach, especially at sunset, is popular restaurants and hotels, high-end boutiques, law from $4.50 to $7.50 per square foot triple net. recreation. Those ambling along may be able to get firms, securities firms, insurance firms, accounting Retail vacancy in Zone 1 has historically averaged a glimpse of the “green flash”. firms and real estate offices. less than 3% for prime street level locations.

Downtown La Jolla is another tourist attraction. OFFICE MARKET Downtown is made up of gourmet delis and markets, boutique hotels, and numerous world- The La Jolla office market continues to outperform class boutiques and restaurants. Notable for its San Diego County. La Jolla office vacancy continues architectural and historical presence is the La to be far below the County average, with a current Valencia Hotel. inventory of 1,081,891 rentable square feet (RSF). La Jolla is unique in that most office space is There’s also the Children’s Beach, a quaint man- combined with retail, creating mixed use projects, made cove near downtown which has unfortunately catering to the community as a whole. However, been taken over by harbor seals. The seals are current zoning requirements limit new office projects protected animals under federal law, so removing to 5,000 square feet, curtailing the future of La Jolla them has become a difficult and controversial issue. office development and putting larger office spaces in high demand. 14 AREA 0.00 - 1.00 0.00 - 3.00 MILES 0.00 - 5.00 MILES DESCRIPTION MILES % % % RADIUS 2 RADIUS 3 Demographics DESCRIPTION RADIUS 1 Population

2017 Projection 7,105 54,646 166,357 0.00 - 1.00 MILES 0.00 - 3.00 MILES 0.00 - 5.00 MILES DESCRIPTION % % % 2012 Estimate 6,863 52,617 160,344 RADIUS 1 RADIUS 2 RADIUS 3 2010 Census 6,831 52,094 158,903 2012 Est. Households by Household Income 5,342 24,327 72,438

Households Income 200,000+ 1,174 22.0 4,223 17.4 6,560 9.1 Income $150,000-$199,999 768 14.4 3,247 13.3 6,557 9.1 2017 Projection 3,663 21,621 72,402 Income $100,000-$149,999 841 15.7 4,483 18.4 12,417 17.1 2012 Estimate 3,546 20,796 69,895 Income $75,000-$99,999 555 10.4 2,719 11.2 8,997 12.4 2010 Census 3,522 20,562 69,225 Income $50,000 - $74,999 689 12.9 3,471 14.3 12,678 17.5 Income <$49,999 1,315 24.7 6,184 25.4 25,229 34.8

Growth 2000-2010 -0.50% 0.18% 0.36% 2017 Proj. Households by Household Income 5,519 25,266 75,065 Income 200,000+ 1,336 24.2 4,779 18.9 7,501 10.0 2012 Avg. Household Size 1.85 2.13 2.15 Income $150,000-$199,999 919 16.7 3,882 15.4 8,020 10.7 Income $100,000-$149,999 910 16.5 4,949 19.6 14,188 18.9 2012 Occupied Housing Units Income $75,000-$99,999 703 12.7 3,474 13.7 11,894 15.8 Owner Occupied 1,716 11,819 28,399 Income $50,000 - $74,999 624 11.3 3,208 12.7 12,213 16.3

Renter Occupied 1,830 8,977 41,496 Income <$49,999 1,027 18.6 4,974 19.8 21,249 28.3

2012 Est. Population by Single Classification Race 2012 Est. Average Household Income $133,370 $123,019 $95,184 White Alone 9,477 90.4 44,646 85.1 121,969 73.3 2017 Proj. Average Household Income $161,389 $145,670 $110,459

Black or African American Alone 70 0.7 417 0.8 2,373 1.4 Source: US Bureau and Census; made with ESRI Business Analyst

American Indian and Alaska Native 15 0.1 112 0.2 542 0.3 Alone POPULATION BY EDUCATION POPULATION BY EMPLOYMENT Asian Alone 450 4.3 4,267 8.1 26,334 15.8 The educational attainment of the population aged 25 years or The occupational distribution of the employed population is:

Native Hawaiian and Other Pacific older in the area was distributed as follows: • 80.1% in white collar jobs (compared to 61.6% of the US employment) 10 0.1 74 0.1 334 0.2 Islander Alone • 27.5% had earned a Master’s/Professional/Doctorate Degree • 12.6% in service jobs (compared to 17.3% of the US employment) (10.4% in the US) • 7.3% in blue collar jobs (compared to 21.1% of the US employment) Some Other Race Alone 169 1.6 1,016 1.9 7,590 4.6 • 33.2% had a Bachelor’s degree (17.7% in the US) Two or More Races 297 2.8 1,929 3.7 7,287 4.4 • 6.4% had completed an Associate degree (7.7% in the US) Hispanic Origin (Any Race) 880 8.4 4,878 9.3 21,502 12.9 • 11.5% were high school graduates only (29.6% in the US)

Source: US Bureau and Census; made with ESRI Business Analyst • 4.4% had not earned a high school diploma (14.8% in the US) 16 17 ZONING LA JOLLA PLANNED DISTRICT ORDINANCE PROSPECT ST DESCRIPTION The La Jolla submarket has a distinguishable reputation in San Diego County. In order to preserve its unique characteristics, the city of IVANHOE AVE San Diego Planning and Zoning Department has developed district Zone 1 Zone 2 zones within the village of La Jolla that have strict regulations on its commercial and residential areas. These zones play an integral part in the design and existence of the La Jolla economy as stated in the San Diego Municipal Code:

“These regulations are intended to improve traffic circulation and access to recreation, HERSCHEL AVE visitor-serving retail, cultural and residential uses through specific restrictions on office development and the provision of off-street parking standards. The office restrictions

Zone 3 and parking standards are consistent with the need to maintain the pedestrian scale of the commercial areas, reduce peak hour traffic congestion, and assure that office uses do not come dominate such areas nor adversely affect the retail continuity of the

GIRARD AVE major commercial streets. Additionally, these regulations are intended to ensure that TORREY PINES RD new residential development and redevelopment is compatible with the traditional scale and character of the multi-family area and complementary to the Cultural Zone.”

FAY AVE Before one moves their business or invests in La Jolla, they must EADS AVE understand the dynamics of the La Jolla office and retail markets and the La Jolla Planned District Ordinance. ZONE 1: DRAPER AVE The following is a partial summary of the La Jolla Planned District GIRARD AVENUE & PROSPECT STREET Ordinance which is detailed in Chapter 10 of the San Diego Municipal Code. For a complete copy of the La Jolla Planned District Ordinance, This is the core area of La Jolla. It includes primary please visit: retail and visitor oriented commercial area. This area http://clerkdoc.sannet.gov/legtrain/mc/MuniCodeChapter10/ is characterized by high levels of pedestrian activity. CH10Art03Division12 Standards for this zone are designed to maintain that pedestrian scale and continuity, and preserve and enhance the retail development pattern of department LA JOLLA BLVD PEARL ST stores, and small retail shops and restaurants. Zone 4 * Residential development shall be limited to 29 dwelling units per acre

18 19 ZONING DESCRIPTION

PROPERTY DEVELOPMENT REGULATIONS GROUND FLOOR AND STREET FRONTAGE REQUIRE- MAXIMUM BASE DENSITY: The following regulations are applicable to all Planned District Zones and development permits. MENTS: The maximum development density shall be as follows: All open spaces, streets, sidewalks, street furniture, street signs, etc. MAXIMUM BASE FLOOR AREA RATIO (FAR) MAXIMUM OFFICE FAR OR AREA PERMITTED are to conform to the intent of the Planned Districts to maintain the ZONE PERMITTED PER LOT WITHIN MAXIMUM BASE FAR MINIMUM LOT AREA AND DIMENSIONS MAXIMUM HEIGHT ON PROPERTIES • In all zones, the minimum lot area size shall be The maximum height of any point on any structure scale and character of the community. This includes all aesthetics of 1 1.3 0.5 or 5,000 gross SF, whichever is less properties. Some examples of the regulations are as follows: 2,500 square feet, with a minimum frontage of has to be 30 feet. In addition to the height limit, 1.3 1.0 or 5,000 gross SF, whichever is less 2 25 feet and a minimum lot depth of at least 100 the following areas within the planned district are • Not more than 40% of any exterior building elevation above the first 3 1.3 0.7r 5,000 gross SF, whichever is less feet. limited to structures containing a maximum of two Lot Splits: Where any lot legally existing as of stories: story shall consist of glass of any other material that resembles glass. 4 1.0 0.5 5,000 gross SF, whichever is less • Surface materials that are not in keeping with the existing character October 1, 1984, is subsequently divided into • 5 1.5 Not applicable of the community are prohibited. two or more lots, the maximum total combined • All portions of Zone 2 6 No Restriction Not applicable area of office use on all lots resulting from the • All portions of Zone 4 RETAIL division shall not exceed the square footage • Those portions of Zone 1 are generally bounded limitation listed for the zone in which the lots are by Herschel Avenue to the east, the alley parallel MINIMUM PERCENTAGE (%) OF MINIMUM PERCENTAGE (%) OF located prior to subdivision. to the west of Girard Avenue to the west, Pear ZONE GROSS GROUND FLOOR AREA STRUCTURE’S STREET FRONTAGE LENGTH MAXIMUM BONUS DENSITY: A residential/retail mixed use project (with no office uses), shall contain Street to the south and Prospect Street to the 1 50% 75% a minimum of 16 percent to a maximum of 50 percent of the total gross The parking requirements of this Division shall north. No minimum required No minimum required 2 floor area in retail use, and the remainder of the total gross floor area in apply. No parking exceptions shall be provided for • All portions of Zone 3 south of Silverado Street. 3 50% 50% residential use, the maximum building floor area ratio shall be: newly created lots smaller than 6,000 square feet. • The small portion of Zone 5 and Coast Boulevard, generally west of the intersection of 4 50% 50% La Jolla Boulevard and Coast Boulevard South. MAXIMUM FLOOR AREA RATIO OFFICE ZONE (INCLUDING BONUS) The unique zoning and development regulations 1 1.7 MAXIMUM GROUND FLOOR AREA MAXIMUM STREET FRONTAGE LENGTH created for La Jolla bring distinctive opportunities 1.7 ZONE RESTRICTIONS RESTRICTIONS 2 and challenges for investors and tenants. A clear 1 25% 25% 3 1.7 understanding of the complexities of real estate in La Jolla is critical for real estate professionals 2 No ground floor restriction No ground floor restriction 4 1.3 practicing in La Jolla. 3 50% 50% 5 Not permitted 4 50% 50% 6 Not permitted

20 COMPARABLE TRANSACTIONS

Office Sale Comparable Transactions Retail Sale Comparable Transactions

7300 Girard Ave. 7835 Ivanhoe Ave. 930 Prospect St. 1020 Prospect St. 1295 Prospect St. 7600 Fay Ave. 7601 Draper Ave. 7650 Girard Ave.

LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037

SALE DATE: 1/19/2016 SALE DATE: 10/30/2012 SALE DATE: 11/22/2013 SALE DATE: 4/24/2015 SALE DATE: 9/19/2013 SALE DATE: 5/30/2014 SALE DATE: 7/22/2014 SALE DATE: 10/1/2015

SALE PRICE: $6,740,000 SALE PRICE: $2,100,000 SALE PRICE: $6,200,000 SALE PRICE: $27,900,000 SALE PRICE: $5,800,000 SALE PRICE: $9,825,000 SALE PRICE: $3,000,000 SALE PRICE: $13,690,000 LAND AREA: 18,802 SF LAND AREA: 7,000 SF LAND AREA: 3,999 SF LAND AREA: 23,522 SF LAND AREA: 5,201 SF LAND AREA: 31,799 SF LAND AREA: 9,052 SF LAND AREA: 7,000 SF LAND PRICE/SF: $358.47 LAND PRICE/SF: $300.00 LAND PRICE/SF: $1,550.46 LAND PRICE/SF: $1,186.10 LAND PRICE/SF: $1,115.16 LAND PRICE/SF: $308.97 LAND PRICE/SF: $331.43 LAND PRICE/SF: $1,955.69 BUILDING SIZE: 14,620 SF BUILDING SIZE: 3,080 SF BUILDING SIZE: 5,623 SF BUILDING SIZE: 44,744 SF BUILDING SIZE: 10,103 SF BUILDING SIZE: 13,107 SF BUILDING SIZE: 2,263 SF BUILDING SIZE: 17,500 SF BUILDING $/SF: $462.54 BUILDING $/SF: $681.82 BUILDING $/SF: $1,102.61 BUILDING $/SF: $623.55 BUILDING $/SF: $574.09 BUILDING $/SF: $749.60 BUILDING $/SF: $1,325.67 BUILDING $/SF: $782.29

22 COMPARABLE TRANSACTIONS Retail Sale Comparable Transactions

7824 Girard Ave. 7833-7851 Girard Ave. 7848-7852 Girard Ave.

LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037

SALE DATE: 1/12/2016 SALE DATE: 1/15/2015 SALE DATE: 1/8/2014

SALE PRICE: $8,896,000 SALE PRICE: $26,500,000 SALE PRICE: $6,575,000 LAND AREA: 7,013 SF LAND AREA: 32,204 SF LAND AREA: 7,000 SF LAND PRICE/SF: $1,268.47 LAND PRICE/SF: $822.88 LAND PRICE/SF: $939.27 BUILDING SIZE: 12,310 SF BUILDING SIZE: 36,745 SF BUILDING SIZE: 3,600 SF BUILDING $/SF: $722.66 BUILDING $/SF: $721.19 BUILDING $/SF: $1,826.39

24 25 10 COMPARABLE Map of Condominium Sale Comparable Transactions TRANSACTIONS

E IRAR 13 6 7 Land Sale Comparable Transactions

17 20 8 16 12 14 5 18 7598 GIRARD AVENUE 21 11 6767 Neptune Pl. 720 Silver St. 6722 Vista Del Mar 9 1 LA JOLLA, CA 92037 LA JOLLA, CA 92037 LA JOLLA, CA 92037 19 SALE DATE: 11/5/2013 SALE DATE: 7/22/2014 SALE DATE: 3/8/2013

SALE PRICE: $17,600,000 SALE PRICE: $6,800,000 SALE PRICE: $6,000,000 LAND AREA: 24,394 SF LAND AREA: 23,807 SF LAND AREA: 7,427 SF LAND PRICE/SF: $721.49 LAND PRICE/SF: $294.54 LAND PRICE/SF: $807.87 # OF UNITS: 20 # OF UNITS: N/A # OF UNITS: 7 2 PRICE/UNIT: $880,000 PRICE/UNIT: N/A PRICE/UNIT: $857,143 15 4 3

26 MIKE SLATTERY 858.546.5437 [email protected] CA License 00761146

JASON KIMMEL 858.546.5414 [email protected] CA License 01328121

TIM WINSLOW 858.546.5436 [email protected] CA License 00891667

KEVIN NOLEN 858.546.5487 [email protected] CA License 01840398

4747 Executive Drive, 9th Floor San Diego, CA 92121 T 858.546.5400 F 858.630.6320 www.cushmanwakefield.com