For Sale Santa Clara Retail Center 2782 Homestead Rd - Santa Clara, CA OUTPARCEL to MARIPOSA GARDENS SHOPPING CENTER ANCHORED by SAFEWAY, CVS PHARMACY and ROSS STORES

For Sale Santa Clara Retail Center 2782 Homestead Rd - Santa Clara, CA OUTPARCEL TO MARIPOSA GARDENS SHOPPING CENTER ANCHORED BY SAFEWAY, CVS PHARMACY AND ROSS STORES

For More Information, Contact:

Bruce Frazer Senior Vice President [email protected] 408.216.2315 SRS Real Estate Partners | 901 Campisi Way, Suite 245 | Campbell, CA 95008 CA Lic: 0576968 EXCLUSIVELY MARKETED BY

BRUCE FRAZER | SENIOR VICE PRESIDENT SRS REAL ESTATE PARTNERS 901 Campisi Way, Suite 245 | Campbell, CA 95008 DL: 408.216.2315 | M: 408.553.6135 [email protected] | CA License No. 00576968

This Offering Memorandum has been prepared by SRS Real Estate Partners and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

Actual Site 4 7 11 20

INVESTMENT SUMMARY PROPERTY OVERVIEW AREA OVERVIEW FINANCIALS INVESTMENT HIGHLIGHTS PARCEL INFO PICTURES RENT ROLL TENANT PROFILE AERIALS CITY OVERVIEW LOCATION MAP DEMOGRAPHICS

Actual Site INVESTMENT HIGHLIGHTS

SIGNALIZED, HARD CORNER INTERSECTION STRONG HISTORICAL OCCUPANCY • The center is located on the signalized corner of Homestead Road and Kiely Boulevard. • This is the first time the property has been available for sale. • Traffic Counts: Approximately 30,000 cars per day on Kiely Boulevard • Rare strip center with long term tenants. • Dense residential area surrounding the subject property, including numberous multi- family developments within walking distance. • Adjacent to Mariposa Gardens Shopping Center which includes: Safeway, Ross, CVS Pharmacy, Taco Bell, Wells Fargo and US Bank. PROPERTY • Long term tenancies since the project was completed in 2003. There have been no • The immediate area features a highly education population, and provides the center vacancies. with a steady, affluent customer base. • Small retail spaces which increase the number of tenants that will have interest in the • Located a quarter mile east to Kaiser Permanente Medical Center and a short drive to space should a vacancy occur. numerous major employers. • A drive-thru kiosk on the corner of Homestead Road and Kiely Boulevard. • Centrally located in Santa Clara County. • Few small quality retail properties become available in Santa Clara County. • Rare opportunity to have a drive-thru situated on the property. The Caffino operator owns the building but may not remove it at the expiration of the lease without Landlord’s consent.

EXCELLENT DEMOGRAPHICS • The one mile trade area is supported by a dense population of 31,676 with an affluent average household income of $134,940. • The two mile trade area is supported by a dense population of 128,788 with an affluent average household income of $123,357. • Within one mile there are 5,583 employees and within two miles, there are 43,606 employees.

4 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS

Actual Site INVESTMENT SUMMARY OFFERING SRS Real Estate Partners NW, is pleased to present the rare opportunity to acquire this retail center occupied by four excellent tenants with long term occupancy. The center is on the immediate corner of Homestead Road and Kiely Boulevard, in front of Mariposa Gardens Shopping Center which is anchored PRICING: $4,583,102 by Safeway, Ross and CVS Pharmacy. The asset has excellet visibility and access on a corner site. The one mile trade area is supported by a dense population exceeding 31,000 with an affluent average household NET OPERATING INCOME: $199,364.96 income of approximately $135,000. Within two miles of the property there are 35,639 employees. CAP RATE: 4.35%

TENANTS: Caffino, Popeyes, The UPS Store, GameStop

PROPERTY SPECIFICATIONS

RENTABLE AREA: 4,200 SF (Not including Caffino)

LAND AREA: 18,168 SF

PROPERTY ADDRESS: 2786 Homestead Road, Santa Clara, CA 95051

YEAR BUILT: 2003

PARCEL NUMBER: 294-18-037 OWNERSHIP: Fee Simple (Land and building excluding Caffino kiosk)

5 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS

Actual Site PROPERTY SPECIFICATIONS

Year Built:...... 2003 Rentable Area:...... 4,200 SF Land Area:...... 18,168 SF Address:...... 2782 Homestead Road, Santa Clara, California 95051 BRAND PROFILE THE UPS STORE

This store has been in the shopping center since it was developed (previously Mailboxes Etc.). The UPS Store network is Industry:...... Retail and Franchising the world’s largest franchisor of retail shopping, postal, printing and business service centers. Today, there are more than Services: ...... Packaging, Labeling, Shipping, 5,000 independently owned The UPS Store locations in the U.S., Puerto Rico, and Canada. The UPS Store, Inc., franchisor Postal, Printing and Business Services of The UPS Store brand, is a wholly owned subsidary of United Parcel Service. POPEYES LOUISIANA CHICKEN

Popeyes has been in the shopping center since it was developed. Popeyes is an American multi-national chain of fried Industry:...... Restaurants/Fast Food chicken, fast food restaurants founded in 1972 in New Orleans, Louisiana. Since 2008, its full brand name is Popeyes Products: ...... Fried Chicken, Cajun Cuisine, Louisiana Kitchen, Inc., and it was fromerly named Popeyes Chicken & Biscuits. It is currently a subsidiary of Toronto- Seafood, Vegetables and Biscuits based, Restaurants Brands International. According to a company press release dated June 29, 2007, Popeyes is the second-largest, “quick-serve chicken restaurant group, measured by number of units,” after KFC. More than 2,600 Popeyes restaurants are in more than 40 states and the District of Columbia, Puerto Rico, and 30 countries worldwide. GAMESTOP

This store has been in the shopping center since it was developed. GameStop Corp. is an American video game, consumer Industry:...... Retail electronics, and wireless service retailer. The company is headquartered in Grapevine, Texas and operates 7,267 retail Products: ...... Video Games, Consoles, stores throughout the United States, Canada, Australia, New Zealand, and Europe. The company’s retail stores primarily and Accessories operate under the GameStop, EB Games, ThinkGeek and Micromania brands. CAFFINO

Caffino, Inc. operates a chain of coffee bars and expresso shops. The company was founded in 1993 and is based in Industry:...Fast-Food & Quick-Service Restaurants Concord, California, with locations in California nd South Carolina. The drive-thru has been in the shopping center since Products: ...... Coffee and Tea it was developed. Caffino locations are independtly owned and operated and the current tenant purchased the business within the last three years and owns the building.d

6 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA RENT ROLL / SRS REAL ESTATE PARTNERS

Actual Site PARCEL MAP

7 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA RENT ROLL / SRS REAL ESTATE PARTNERS

Actual Site 1-MILE AVERAGE HOUSEHOLD INCOME - $134,940 3-MILE AVERAGE HOUSEHOLD INCOME - $130,430 5-MILE AVERAGE HOUSEHOLD INCOME - $137,533 1-MILE AVERAGE HOUSEHOLD INCOME - $134,940 3-MILE AVERAGE HOUSEHOLD INCOME - $130,430 5-MILE AVERAGE HOUSEHOLD INCOME - $137,533

2782 Homestead Rd 2018 ESTIMATED SAN FRANCISCO POPULATION 1 Mile...... 31,676 3 Mile...... 242,232 5 Mile...... 605,165 2018 AVERAGE HOUSEHOLD INCOME 1 Mile...... $134,940 3 Mile...... $130,430 5 Mile...... $137,533 2018 ESTIMATED TOTAL EMPLOYEES 1 Mile...... 21,298 3 Mile...... 253,571 5 Mile...... 785,551

2782 HOMESTEAD ROAD

SUNNYVALE SAN JOSE

AREA OVERVIEW OF SANTA CLARA, CALIFORNIA Santa Clara is a city located in Santa Clara County, California. The City of Santa Clara has a population of 130,046 as of January 1, 2018. Home of the new Levi’s Stadium where the NFL San Francisco 49ers play, Santa Clara has earned recognition on the Top 100 Best Places to Live list for three straight years. Nicknamed The Mission City for its historical roots in California history, the community has excellent healthcare and educational systems along with technology firms and Santa Clara University. An average of 300 days of sunshine allows residents to enjoy many city parks and recreation facilities. Located at the heart of Silicon Valley about 45 miles south of San Francisco, the City of Santa Clara truly is “The Center of What’s Possible.” Incorporated in 1852, Santa Clara covers an area of 19.3 square miles and home to an extraordinary array of high-tech companies, including Applied Materials, Hewlett-Packard, Intel, Nvidia, Oracle, and Ericsson. The City of Santa Clara is also home to Santa Clara University, and California’s Great America Theme Park. Santa Clara Unified School District serves over 15,500 TK-12 students, in addition to students in Preschool through Adult School. Neighborhoods in the Cities of Santa Clara, Sunnyvale, San Jose, and Cupertino comprise the District’s 56 square-mile area. Santa Clara Unified prides itself on having teachers, classified employees and administrators who are dedicated, experienced professionals who care about each student’s well-being and academic preparation. The City has developed municipal park facilities in order to provide its residents with a variety of recreation programs and services. Facilities include the Santa Clara Golf and Tennis Club, Community Recreation Center, Senior Center, Youth Activity Center, International Swim Center, Reed Street Dog Park, and Skate Park. Ulistac Natural Area, a 40 acre open space park on the former Fairway Glen golf course, opened in 2001. Counting the Golf and Tennis Club’s 155 acres, Santa Clara’s 38 parks, playgrounds and open space now totals nearly 450 acres. For commercial passenger air travel, Santa Clara is served by three nearby international airports: Norman Y. Mineta San Jose International Airport (SJC), 4.7 miles from downtown Santa Clara by car. It is also accessible by Caltrain, VTA light rail, and VTA bus. Caltrain and light rail stations require a transfer to a free shuttle bus to get to the airport terminal, San Francisco International Airport (SFO), 33.5 miles by car. SFO is transit accessible from Santa Clara via Caltrain and Bay Area Rapid Transit (BART), Metropolitan Oakland International Airport (OAK), 37.33 miles by car. Access to Oakland airport by public transit is possible via multiple transfers.

18 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA AREA OVERVIEW / SRS REAL ESTATE PARTNERS AREA OVERVIEW (CONTINUED)

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2018 Estimated Population 31,676 242,232 605,165 2023 Projected Population 33,617 254,897 640,278 2010 Census Population 27,893 221,691 546,539 Projected Annual Growth 2018 to 2023 1.20% 1.02% 1.13% Historical Annual Growth 2010 to 2018 1.55% 1.08% 1.24%

2018 Estimated Households 12,061 88,743 225,754 2023 Projected Households 12,719 92,726 237,776 2010 Census Households 10,762 82,693 206,391 Projected Annual Growth 2018 to 2023 1.07% 0.88% 1.04% Historical Annual Growth 2010 to 2018 1.39% 0.86% 1.09%

2018 Estimated White 45.9% 41.5% 41.8% 2018 Estimated Black or African American 2.40% 2.70% 2.60% 2018 Estimated Asian or Pacific Islander 39.30% 41.60% 40.90% 2018 Estimated American Indian or Native Alaskan 0.40% 0.50% 0.50% 2018 Estimated Other Races 6.40% 8.40% 9.00% 2018 Estimated Hispanic 17.10% 19.40% 20.10%

2018 Estimated Average Household Income $134,940 $130,430 $137,533 2018 Estimated Median Household Income $104,673 $99,507 $102,672 2018 Estimated Per Capita Income $51,653 $48,357 $51,737

2018 Estimated Total Businesses 647 9,649 29,732 2018 Estimated Total Employees 5,583 133,869 493,517

19 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA AREA OVERVIEW / SRS REAL ESTATE PARTNERS RENT ROLL

TENANT SIZE PRO MONTHLY ANNUAL RENT LEASE LEASE OPTIONS SECURITY SF RATA RENT RENT PER SF START END DEPOSIT Caffino See Below Land 33% $2,300.00 $27,600.00 3/18/2016 3/31/2024 None $5,000.00

Rental Details: April 1, 2018 to March 31, 2019 $2,300.00 April 1, 2019 to March 31, 2020 $2,350.00 April 1, 2020 to March 31, 2021 $2,350.00 April 1, 2021 to March 31, 2022 $2,400.00 April 1, 2022 to March 31, 2026 Cost of living increase not to increase more than 2% per year

Popeyes Chicken 1,700 Land 27% $7,110.08 $85,320.96 $4.18 12/15/2003 12/14/2023 None $4,675.00 (Chicken Choice, Inc.) Bld 40.5%

GameStop, Inc. 1,500 Land 23.8% $4,562.50 $54,750.00 $3.04 10/10/2003 1/31/2022 1-2 Year $0.00 Bld 35.7% Option Rent: $4,745.00 The UPS Store 1,000 Land 15.86% $3,335.00 $40,020.00 $3.34 10/15/2003 10/10/2023 None $5,700.00 (Formerly Mailboxes, Etc.) Bld 23.8%

Oct 11, 2018 to Oct 10, 2023 - $3,335.00 First Right to Lease GameStop unit

Total Square Feet: 4,200 (Excluding Caffino)

Total Annual Rent: $208,290.00 Admin Fee: $4,112.00 New Total: $212,402.00 Less Mgt Fee (4%): $13,037.04

Price: $4,583,102 Net Operating Income: $199,364.96 Cap Rate: 4.35%

20 / 2782 HOMESTEAD ROAD / SANTA CLARA, CALIFORNIA AREA OVERVIEW / SRS REAL ESTATE PARTNERS For More Information, Contact:

Bruce Frazer Senior Vice President [email protected] 408.216.2315 CA Lic: 0576968