OFFERING MEMORANDUM

Willow Glen Neighborhood Portfolio 1588 MERIDIAN AVE | 1591 HAMILTON AVE SAN JOSE, CA NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Activity ID: XXXXXX

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

TABLE OF CONTENTS

INVESTMENT OVERVIEW 01 SECTION 1 Offering Summary • Property Description • Offering Highlights Rent Roll • Regional Map • Aerial Map Property Photos • Parcel Map • Sales Comparables

MARKET OVERVIEW 02 SECTION 2 Market Analysis • Demographic Analysis section 1 Investment Overview

offering summary

property description

offering highlights

rent roll

property maps & photos

sales comparables Commercial / Residential Opportunity

1588 Meridian Avenue 1591 Hamilton Avenue

Marcus & Millichap is pleased to announce this exciting opportunity to purchase a fully occupied center located at 1582-1596 Meridian Avenue in San Jose. 1582 Meridian Avenue is being offered with the adjacent single-family home positioned directly to the East. The homes address is 1591 Hamilton Avenue. The commercial parcel (APN# 429-47-017) consists of 18,480 sq. ft. on the corner of Meridian and Hamilton Ave. The residential parcel (APN# 429-47-016) consists of 8,990 sq. ft. with a single family home (two- bedroom|one-bath) of approximately 735 sq. ft. on it. Together the commercial and residential buildings total 8,873 sq. ft. The property has ample parking with 11 spaces in the front and 20 parking spaces in the rear. The retail portion includes seven commercial tenants with a strong historic occupancy rate. All tenants are currently paying below market rents allowing a new owner plenty of rental upside into the future.

INVESTMENT HIGHLIGHTS

High daily vehicle counts Below Market Rents

Phenomenal Corner location Long term well established local tenant mix

Adjacent to Walgreens and Shell Station Grocery (Safeway) and drug (Walgreens & Rite Aid) anchored intersection Historically low vacancy rate

6 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 7 34,302 VPD

22,919 VPD

31,212 VPD

19,738 VPD

8 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 9 10 INVESTMENT OVERVIEW INVESTMENT OVERVIEW 11 OFFERING HIGHLIGHTS //

1588 MERIDIAN AVENUE SAN JOSE, CA 95125

OFFERING PRICE UNPRICED

PROPERTY DESCRIPTION

*Building Square Feet 8,138 Lot Size 18,480 SF / 0.42 Acres Type of Ownership Fee Simple Units 7 Suites Occupancy 100% Sprinklers No Zoning CP

*Building manager provided above sq. ft. which differs from County Recorder’s Office that has the total sq. ft. at 8,138. Buyer to conduct their own investigation to determine the correct sq. ft.

12 EXECUTIVEINVESTMENT SUMMARYOVERVIEW RENT ROLL // MERIDIAN CENTER

Rentable Lease Lease % of Lease Base Monthly NNN Total INC Increased Security Renewal Unit Tenant Square CAM Starts Ends Building Term Rent Per Sq Ft Sq Ft Payment Date Amount Deposit Options Feet

Bullseye One 3 1584 01/01/19 12/31/20 1,330 16.17% 24 $ 2,424.62 $ 1.82 $ 666.42 $ 0.50 $ 3,091.04 N/A N/A $ 3,000.00 Bishop Available upon execution of the confidentiality agreement year term

Meridian 1586 05/01/18 04/30/23 1,095 13.31% 60 $ 2,393.09 $ 2.19 $ 548.51 $ 0.50 $ 2,941.60 05/01/21 $ 2,464.89 $ 1,500.00 None Computer Services Available upon execution of the confidentiality agreement

1588 Dynamic Salon 4/1/2019 03/31/24 1,100 13.37% 60 $ 1,652.11 Available$ 1.50 upon$ 550.98 execution$ 0.50 of the$ 2,203.09 confidentiality05/01/21 $agreement 1,701.68 $ 2,278.51

One 3 1590 Bay Drycleaners 05/01/18 04/30/21 1,046 12.72% 36 $ 2,285.98 $ 2.19 $ 524.20 $ 0.50 $ 2,810.18 N/A N/A $ 2,200.00 Available upon execution of the confidentiality agreement year term

One 3 1592 Manley’s Donuts 05/01/18 04/30/23 1,050 12.77% 60 $ 2,060.81 $ 1.96 $ 526.26 $ 0.50 $ 2,587.07 05/01/21 $ 2,122.64 $ 2,520.00 Available upon execution of the confidentiality agreement year term

1594 Taqueria El Dorado 06/01/19 05/31/24 1,110 13.50% 60 $ 2,363.47Available$ 2.13 upon$ 556.34 execution$ 0.50 of the$ 2,919.81 confidentiality06/01/21 $agreement 2,434.38 $ 2,050.00 None

Willow One 5 1596 04/01/20 03/31/23 1,494 18.16% 60 $ 3,468.75 $ 2.32 $ 748.38 $ 0.50 $ 4,217.13 05/01/21 $ 3 ,572.81 $ 2,988.00 Glen Shoe Repair Available upon execution of the confidentiality agreement year term

TOTAL 8,225 100.00% $ 16,648.83 $ 2.02 $ 4,121.09 $ 0.50 $ 20,769.92 $ 16,536.51

INVESTMENT OVERVIEW 13 OFFERING HIGHLIGHTS //

1591 HAMILTON AVENUE SAN JOSE, CA 95125

OFFERING PRICE UNPRICED

PROPERTY DESCRIPTION

Building Square Feet 735 Bedrooms 2 Bathrooms 1 Lot Size 8,990 SF / 0.2 Acres Type of Ownership Fee Simple Tenancy To be Delivered Vacant Zoning R-1-8

14 EXECUTIVEINVESTMENT SUMMARYOVERVIEW INVESTMENT OVERVIEW 15 16 EXECUTIVEINVESTMENT SUMMARYOVERVIEW 1588 MERIDIAN AVENUE

INVESTMENT OVERVIEW 17 SPECIAL COVID-19 NOTICE

CONFIDENTIALITY & DISCLAIMER All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.) section 2 Market Overview

location overview

market research

demographics SAN JOSE

POPULATION 1.3 MILLION

20 MARKET OVERVIEW propertyname

MARKET OVERVIEW SAN JOSE OVERVIEW

Known to the world as , the San Jose metro is located at the southern end of the San Francisco Bay and encompasses Santa Clara and San Benito counties.A large portion of the area’s 1,315 square miles is unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the region’s residents reside in the city of San Jose. It is the metro’s largest city with more than 1 million residents, followed by Sunnyvale and Santa Clara. Venture capital funds received in the 1990s helped to turn the area into the world’s most prominent technology hub, a distinction that remains today.

METRO HIGHLI GHTS

PREMIER HIGH-TECH CENTER Silicon Valley’s dense concentration of high-tech jobs is world renowned, attracting a variety of large employers and startups.

HIGH INCOMES Well-paying jobs in the tech sector contribute to a median annual household income level that is almost double the U.S. median.

HIGHLY EDUCATED WORKFORCE Nearly half of all residents age 25 and older have obtained at least a bachelor’s degree, well above the U.S. average.

1 MARKET OVERVIEW 21 propertyname

MARKET OVERVIEW

ECONOMY ▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro as one of the 30 largest job markets in the nation. ▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco Systems, Apple Inc., eBay and Alphabet. ▪ The area’s many institutions of higher learning, including Stanford, San Jose State and , support these companies by graduating thousands of engineering and computer science students each year.

MAJOR AREA EMPLOYERS

Cisco Systems County of Santa Clara Adobe Systems Inc. Hew lett-Packard Co. City of San Jose Intel Corp. eBay U.S. Veterans Medical Center San Jose State University

Apple * Forecast

SHARE OF 2019 TOTAL EMPLOYMENT

16% 21% 9% 9% 3% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

12% 4% + 15% 9% 2% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

2 22 MARKET OVERVIEW propertyname

MARKET OVERVIEW

DEMOGRAPHICS

▪ The metro is expected to add approximately 107,300 people through 2024 and during this time more than 41,000 households will be formed. SPORTS ▪ High home prices contribute to a homeownership rate of 56 percent, which is below the national rate of 57 percent. ▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including 22 percent who have also obtained a graduate or professional degree.

2019 Population by Age

6% 19% 6% 30% 26% 13% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2019 2019 2019 2019 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 2M 694K 37.1 $121,300 Growth Growth U.S. Median: U.S. Median: 2019-2024*: 2019-2024*: 5.4% 5.9% 38.1 $60,800

QUALITY OF LIFE Th e San Jose metro has an enviable combination of major universities that produce a highly educated workforce, cutting-edge firms and exceptional affluence. Residents can visit a plethora of museums, including the and the Tech Museum ARTS & ENTERTAINMENT of Innovation. Santa Clara County is home to performing arts companies and hosts the San Jose Jazz Fes t ival. The San Francisco 49ers play their home games at Levi’s and the hockey team plays at the SAP Center. Other sports venues include and . The metro is minutes away from San Francisco and some of the world’s finest wine-producing regions, notably the Napa, Sonoma and Alexander valleys.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

3 MARKET OVERVIEW 23 EXCLUSIVELY LISTED BY

John Carr San Franciso Office Direct: (415) 625-2119 // Cell: (415) 944-7125 [email protected] License: CA 01861613

Jeffrey Ida First Vice President, San Franciso Office Direct: (415) 625-2196 // Cell: (415) 828-7679 [email protected] License: CA 01826381

Brendan Gallagher San Franciso Office Direct: (415) 625-2110 // Cell: (760) 846-1736 [email protected] License: CA 02047890

Cole Ferrari San Franciso Office Direct: (415) 625-2198 // Cell: (626) 824-2564 [email protected] License: CA 02093715

Aidan Brorsen San Franciso Office Direct: (415) 625-2169 // Cell: (510) 944-6233 [email protected] License: CA 02101818

THE IDA GROUP