December 23, 2014 Environmental & PHASE I Engineering Due Diligence ENVIRONMENTAL SITE ASSESSMENT Property Identification: 2556 Telegraph Avenue Site Investigation & Berkeley, Alameda County, California 94704 Remediation AEI Project No. 337284 Energy Performance & Benchmarking Prepared for: East West Bank 555 Montgomery Street, 10th Floor San Francisco, California 94111 Industrial Hygiene Prepared by: AEI Consultants 2500 Camino Diablo Construction Walnut Creek, California 94597 Consulting (925) 746-6000 Construction, Site Stabilization & Stormwater Services Zoning Analysis Reports & ALTA Surveys PROJECT SUMMARY 2556 Telegraph Avenue, Berkeley, Alameda County, California No Other Further Environmental Recommended Report Section Action REC CREC HREC Considerations Action Site Location and 2.1 ☒ ☐ ☐ ☐ ☐ Description Site and Vicinity 2.2 ☒ ☐ ☐ ☐ ☐ Characteristics Historical 3.1 ☒ ☐ ☐ ☐ ☒ Summary Regulatory 4.0 Agency Records ☒ ☐ ☐ ☐ ☐ Review Regulatory 5.0 Database ☒ ☒ ☐ ☐ ☐ Records Review 5.2 Vapor Migration ☒ ☐ ☐ ☐ ☐ Previous Reports and Other 6.3 ☒ ☐ ☐ ☐ ☐ Provided Documentation Site 7.0 ☒ ☐ ☐ ☐ ☐ Reconnaissance Adjacent Site 7.2 ☒ ☐ ☐ ☐ ☐ Reconnaissance Asbestos- Operations and 8.1 Containing ☐ ☐ ☐ ☐ ☒ Maintenance Materials (O&M Plan) 8.2 Lead-Based Paint ☒ ☐ ☐ ☐ ☐ 8.3 Radon ☒ ☐ ☐ ☐ ☐ Lead in Drinking 8.4 ☒ ☐ ☐ ☐ ☐ Water 8.5 Mold ☒ ☐ ☐ ☐ ☐ Project No. 337284 December 23, 2014 Page i LIST OF COMMONLY USED ACRONYMS AST Aboveground Storage Tank AUL Activity and Use Limitation APCD Air Pollution Control District AHERA Asbestos Hazard Emergency Response Act AQMD Air Quality Management District ACM Asbestos-Containing Material APN Assessor’s Parcel Number ASTM American Society for Testing and Materials bgs Below Ground Surface BTEX Benzene, Toluene, Ethylbenzene and Xylenes COC Contaminant of Concern CERCLA Comprehensive Environmental Response Compensation and Liability Act CERCLIS Comprehensive Environmental Response Compensation and Liability Information System CREC Controlled Recognized Environmental Condition EPA Environmental Protection Agency ESA Environmental Site Assessment HAZNET Facility and Manifest Data GPR Ground-Penetrating Radar HWS Hazardous Waste Site HVAC Heating, Ventilation and Air Conditioning HREC Historical Recognized Environmental Condition LLP Landowner Liability Protection LQG Large Quantity Generator LBP Lead-Based Paint LCP Lead Containing Paint LUST Leaking Underground Storage Tank MSDS Material Safety Data Sheet MCL Maximum Contaminant Level MTBE Methyl Tertiary Butyl Ether µg/L Micrograms per Liter mg/kg Milligrams per Kilogram mg/L Milligrams per Liter NESHAP National Emission Standards for Hazardous Air Pollutants NPL National Priorities List NFA No Further Action ND None Detected NOV Notice of Violation NTC Notice to Comply O&M Operations and Maintenance OSHA Occupational Safety and Health Administration ppb Parts per Billion ppm Parts per Million PCE Perchloroethylene, Tetrachloroethylene, Tetrachloroethene, PERC PTO Permit to Operate pCi/L PicoCuries per Liter PCB Polychlorinated Biphenyl REC Recognized Environmental Condition RCRA Resource Conservation and Recovery Act RP Responsible Party SVOC Semi-Volatile Organic Compound SQG Small Quantity Generator SLIC Spills, Leaks, Investigation, and Cleanup TPH Total Petroleum Hydrocarbons TPHd Total Petroleum Hydrocarbons (diesel range) TPHg Total Petroleum Hydrocarbons (gasoline range) TPHo Total Petroleum Hydrocarbons (oil range) TRPH Total Recoverable Petroleum Hydrocarbons TCE Trichloroethylene, Trichloroethene UST Underground Storage Tank USDA United States Department of Agriculture USGS United States Geological Survey VOC Volatile Organic Compound Project No. 337284 December 23, 2014 Page ii EXECUTIVE SUMMARY AEI Consultants (AEI) was retained by East West Bank to conduct a Phase I ESA in conformance with our proposal and the scope and limitations of ASTM Standard Practice E1527- 13 and the EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312) for the property referenced in the table below. Any exceptions to, or deletions from, this practice are described in Sections 1.4, 1.5 and 1.6 of this report. PROPERTY DESCRIPTION PROPERTY INFORMATION Street Address 2556 Telegraph Avenue City Berkeley State California Location Est side of Telegraph Avenue, South Side of Blake Street, and east side of Chilton Alley Vicinity Characteristics Commercial and Residential Approximate Site Acreage/Source 0.22 acre/On-line mapping systems Property Type Commercial Subject Property Uses Restaurants, offices, stores, and a salon Assessor Parcel Numbers 55-1837-01 SITE AND BUILDING INFORMATION Number of Buildings One Year of Construction 1945 Number of Floors/Stories One story with a mezzanine Basement or Subgrade Areas None identified Number of Units Seventeen Building Area (SF)/Source Approximately 15,000 square feet/On-line mapping systems One single story commercial building with a mezzanine and Building Description no sub-grade areas identified Building Occupants Please see table below Additional Improvements None Current On-site Operations Typical restaurant, beauty salon, and retail activities Current Use of Hazardous None identified Substances UTILITY PROVIDER INFORMATION Natural Gas Provider Pacific Gas and Electric (PG&E) Electricity Provider PG&E Potable Water Provider or Source East May Municipal Utilities District (EBMUD) Sewage Disposal Provider or EBMUD Treatment System REGULATORY INFORMATION Regulatory Database Listings None identified Institutional Controls None identified Engineering Controls None identified Environmental Liens None identified Refer to Figure 1: Topographic Map, Figure 2: Site Map and Appendix A: Property Photographs for site location and description. Project No. 337284 December 23, 2014 Page iii The subject property is currently occupied by: Unit Number Tenant/Use #1 Fortune Teller #2 Eid’s Electronics #3 Koryo BBQ #4 Berkeley Hair #5 Norikonoko #6 Vacant #7 Vapor Den #8 Fin Fine #9-10 Fondu Fred #11-13 Blue Note Music #14-16 Arriba Peru Restaurant #17 Vapor Den Office Based on historical resources and information provided in a Historical Resources Evaluation report provided by Mr. Cody Fornari, the subject property was identified as part of the Rancho San Antonio owned by the Peraltas in 1820. In 1842, a portion of land, including the subject property was purchased by James Leonard. In 1875, the subject property and a portion of the adjacent properties to the west were purchased by Dr. Jose Maria Montealegre Fernandez, a former president of Costa Rica, who built a residence on the southwestern side of the subject property. In 1909, the residence was relocated to another site in Berkeley, and the subject property remained vacant until 1921, when Clarence J. Felt and J.L Millett constructed an automobile garage on the subject property called University Garage. In 1935, the business was sold to Harry T Doten, who purchased the property in 1944. In 1945, he constructed the existing subject property building for his Pontiac showroom and garage. The dealership operated on-site until 1971. The existing subject property building was renovated in 1971 and 1972 for small office, retail, and restaurant spaces which still exist today. The following historical addresses were associated with the subject property: 2428-2458 Blake Street and 2554-2564 Telegraph Avenue. These addresses were also researched as part of this assessment. The immediately surrounding properties consist of the following: Direction Tenant/Use (Address) Regulatory from Site Database Listing(s) Northwest Blake Street, followed by: None identified Apartments (2425-2431 Blake Street) North Blake Street, followed by: None identified Telegraph Market and the Glenn Building Apartments (2550 Telegraph Avenue) Northeast Telegraph Avenue, followed by: None identified The Center For Independent Living and the United Nations Association (2539 Telegraph Avenue) Project No. 337284 December 23, 2014 Page iv Direction Tenant/Use (Address) Regulatory from Site Database Listing(s) East Telegraph Avenue, followed by: None identified Buffalo Exchange, Vacant commercial spaces, and Pasta Bene Restaurant (2587 Telegraph Avenue) South Smoke and Gifts and Kiraku Restaurant (2566 Telegraph Avenue) None identified West Chilton Way, followed by: None identified Residences (2418 Blake Street and 2529-2533 Chilton Way) Please refer to Section 5.1 for discussion of adjacent sites listed in the regulatory database as noted above. Based upon topographic map interpretation, the direction of groundwater flow beneath the subject property is inferred to be to the southwest. Based on groundwater monitoring data for a nearby site at 2531 Telegraph Avenue (located approximately 150 feet northeast of the subject property) obtained from GeoTracker, groundwater is presumed to be present at an estimated depth of 5-10 feet below ground surface (bgs). FINDINGS Recognized Environmental Condition (REC) is defined by the ASTM Standard Practice E1527-13 as the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: (1) due to release to the environment; (2) under conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment. AEI’s assessment has revealed the following RECs associated with the subject property or nearby properties: A nearby site located approximately 150 feet northeast of the subject property, identified as 2531 Telegraph Avenue, was identified