Camden-New Jersey Center 1910-1920 Camden Ave San Jose

OFFERING MEMORANDUM CAMDEN - NEW JERSEY CENTER

1910-1920 CAMDEN AVENUE | SAN JOSE, CA 95124

™ LISTED BY

JORDAN GOMEZ EL WARNER ASSOCIATE EVP & NATIONAL DIRECTOR Direct +1 949 432 4503 Direct +1 949 873 0507 Mobile +1 951 264 5994 Mobile +1 858 752 3078 [email protected] [email protected] License No. 02008809 (CA) License No. 01890271 (CA) Camden-New Jersey Center

OFFERING MEMORANDUM CAMDEN-NEW JERSEY CENTER 1910-1920 Camden Avenue | San Jose, CA 95124

04 | EXECUTIVE OVERVIEW 06 | PROPERTY OVERVIEW 12 | FINANCIAL OVERVIEW 16 | AREA OVERVIEW

3 SECTION I EXECUTIVE OVERVIEW

4 Camden-New Jersey Center

OFFERING SUMMARY

Matthews Real Estate Investment Services is pleased to present the fee simple sale of Camden- Investment Summary New Jersey Center, a 19,184 SF neighborhood center, situated in one of the most affluent and Offering Price Best Offer highly sought after infill locations in the Silicon Valley. Offering an extremely rare development opportunity, Camden-New Jersey Center sits on a hard corner lot along a major Bay Area In-Place NOI $370,135 thoroughfare that sees a combined 68,000 vehicles per day and is home to some of the most successful mixed-use developments in the country. With virtually no sites available in the Year 1 NOI $436,148 immediate trade area for future development, there is an exceptionally high-barrier to entry which will provide an owner continued security through the property’s long-term growth and Current Occupancy 92.1% success as a commercial destination. By purchasing Camden-New Jersey Center, an investor Total Rentable Square Feet ±19,184 SF will acquire tremendous real estate fundamentals in the heart of Silicon Valley. Please reach out to the listing agent for additional information on this investment opportunity. Total Land Area ±1.6 Acres

INVESTMENT HIGHLIGHTS

» One of the most highly sought after hard corner lots in San Jose that sees a combined 68,000 vehicles per day » Extremely rare development opportunity zoned for pedestrian-oriented retail activity and mixed residential and commercial development » Located in a dense, affluent community with over 465,000 people within a 5-mile radius and over $161,539 average household income » Situated in a supply-constrained, in-fill trade area with virtually no sites available for future development creates an exceptionally high- barrier to entry, placing an upward pressure on occupancy and rental rates » Ample parking and ease of access from Camden Avenue and New Jersey Avenue which creates a meaningful amenity to customers throughout the day » Stable income stream with below market rents and near-term rollover which allows a new investor with significant upside » Delivered free and clear of financing permitting an investor to purchase for cash or obtain new financing at desired LTV and terms

5 SECTION II PROPERTY OVERVIEW

6 Camden-New Jersey Center

PHYSICAL DESCRIPTION

PROPERTY NAME Camden-New Jersey Center

ADDRESS 1910-1920 Camden Avenue PARCEL MAP LOCATION San Jose, CA 95124

PARCEL 419-12-050

TOTAL LAND AREA ±1.60 Acres (69,696 SF)

NET RENTABLE AREA ±19,184 SF

YEAR BUILT 1976

PARKING STALLS ±93 Surface Spaces (4.67 : 1,000 SF)

TOTAL TENANTS 11

CURRENT OCCUPANCY 92.1%

AVERAGE REMAINING TERM ±2.5 Years

TYPE OF OWNERSHIP Fee Simple

7 San Jose, California

SITE PLAN Suite Tenant SF 1910-1A Method 3 Fitness 648

C AMDEN AVE 1910-8 Focused Tax Solutions 312

1910-9 Vacant 260

1910-1 Miradoor 1,056 SECOND FLOOR 1910-10 Vacant 290

1910 1910 1910-5 -1 -2 1910-2 SuperCuts 1,100

1910-4 1910-6 1920 1910-3 Vivian Nail Bar 685

1910 1910 1910-7 1910-9 1910-4 Olga's Touch 615 -3 -1A 1910-8 1910-10

E 1910-7 Vacant 294

V A 1912 Kelly Moore Painting Co 5,546 Y E S R 1914 Supreme Hair Styling 1,000 E J 1 9 1 8 1 6 W 1 2 1916 Cigarettes N More 1,000 9 1 9 E 1 N 9 1 4 1 1918 Method 3 Fitness 3,083

1910-5 Vacant 678 General Insurance 1910-6 515 Brokers Occupied Vacant 1920 Hooka Castle 2,102

Totals 16 Suites 19,184 SF

8 Camden-New Jersey Center

9 San Jose, California

SURROUNDING AREA

Union Ave ±23,000 VPD

Cambrian Park Plaza Shopping Center Proposed Mixed-Use Redevelopment Project

Cambrian Park Neighborhood Among the 15% Highest Income Neighborhoods in America Camden Ave ±51,000 VPD

Subject Property

10 Camden-New Jersey Center

SURROUNDING AREA

Camden Ave ±51,000 VPD Leigh Ave ±17,000 VPD

Subject Property

11 SECTION III FINANCIAL OVERVIEW

12 12 Camden-New Jersey Center RENT ROLL

Contract Lease Lease Square % of Rent PSF Rent Suite Tenant Rental Rate Options Start End Feet NRA Increases Year Month Year Month

1910-1A Method 3 Fitness Aug-11 Aug-21 648 3.4% inlcuded in Suite 1918

1910-8 Focused Tax Solutions Jul-17 MTM 312 1.6% $9,600 $800 $30.77 $2.56

1910-9 Vacant 260 1.4% $7,800 $650 $30.00 $2.50

3% annual 1910-1 Miradoor Dec-16 Nov-19 1,056 5.5% $40,800 $3,400 $38.64 $3.22 1x2 years increases

1910-10 Vacant 290 1.5% $8,700 $725 $30.00 $2.50

1910-2 SuperCuts Mar-07 MTM 1,100 5.7% $46,974 $3,915 $42.70 $3.56

1910-3 Vivian Nail Bar Sep-10 Aug-20 685 3.6% $22,618 $1,885 $33.02 $2.75 1x5 years

1910-4 Olga's Touch Feb-11 MTM 615 3.2% $10,500 $875 $17.07 $1.42

1910-7 Vacant 294 1.5% $8,820 $735 $30.00 $2.50

3% annual 1912 Kelly Moore Painting Co Mar-12 Feb-22 5,546 28.9% $91,387 $7,616 $16.48 $1.37 2x5 years increases

1914 Supreme Hair Styling Oct-03 MTM 1,000 5.2% $36,000 $3,000 $36.00 $3.00

3% annual 1916 Cigarettes N More Jan-09 Dec-21 1,000 5.2% $29,700 $2,475 $29.70 $2.48 increases 3% annual 1918 Method 3 Fitness Aug-11 Aug-21 3,083 16.1% $94,492 $6,507 $25.33 $2.11 increases

1910-5 Vacant 678 3.5% $20,340 $1,695 $30.00 $2.50

1910-6 General Insurance Brokers Nov-17 Oct-18 515 2.7% $14,400 $1,200 $27.96 $2.33

3% annual 1920 Hooka Castle Jul-15 May-20 2,102 11.0% $72,336 $6,028 $34.41 $2.87 increases

Occupied Totals - In Place 17,662 92.1% $468,807 $39,067 $26.54 $2.21

Vacant Totals 1,522 7.9% $45,660 $3,805 $30.00 $2.50

Totals 19,184 100.0% $514,467 $42,872 $26.82 $2.23

13 San Jose, California SUMMARY TENANT PROFILE

Tenant Name Square Feet Lease Expiration In-Place Rent % of Revenue Tenant Type Credit

Method 3 Fitness 3,731 Aug-21 $94,492 20.2% Shops Local/Regional

Focused Tax Solutions 312 MTM $9,600 2.0% Shops Local/Regional

Miradoor 1,056 Nov-19 $40,800 8.7% Shops Local/Regional

SuperCuts 1,100 MTM $46,974 10.0% Shops Local/Regional

Vivian Nail Bar 685 Aug-20 $22,618 4.8% Shops Local/Regional

Olga's Touch 615 MTM $10,500 2.2% Shops Local/Regional

Kelly Moore Painting Co 5,546 Feb-22 $91,387 19.5% Shops Local/Regional

Supreme Hair Styling 1,000 MTM $36,000 7.7% Shops Local/Regional

Cigarettes N More 1,000 Dec-21 $29,700 6.3% Shops Local/Regional

General Insurance Brokers 515 Oct-18 $14,400 3.1% Shops Local/Regional

Hooka Castle 2,102 May-20 $72,336 15.4% PAD Local/Regional

Totals 17,662 SF $468,807 100.0%

OCCUPANCY RENT BREAKDOWN

Occupied Totals - In Place - 92% Vacant Totals - 8% Shops - 85% PAD - 15%

14 Camden-New Jersey Center LEASE EXPIRATION SCHEDULE

Year Year End Sqft % of NRA Cumulative % 1 2018 515 3% 3% 2 2019 1,056 6% 8% INCOME & EXPENSES 3 2020 2,787 15% 23%

4 2021 4,731 25% 47% Year 1 Stabilized 5 2022 5,546 29% 76% Total $/SF Total $/SF 6 2023 0 0% 76% Income 7 2024 0 0% 76% Rental Income $468,807 $24.44 $514,467 $26.82 8 2025 0 0% 76% Other Income $0 $0.00 $0 $0.00 9 2026 0 0% 76% Vacancy Factor $0 $0.00 ($20,579) ($1.07) 10 2027 0 0% 76% Reimbursement Revenue $74,980 $3.91 $115,912 $6.04

Month to Month 3,027 16% Effective Gross Income $543,787 $28.35 $609,800 $31.79

Occupied 14,635 76% Expenses Vacant 1,522 8% Real Estate Taxes $108,206 $5.64 $108,206 $5.64 Total 19,184 100% Insurance $9,543 $0.50 $9,543 $0.50 CAM $38,368 $2.00 $38,368 $2.00 TENANT EXPIRATIONS Tenant Expirations Management Fees $16,500 $0.86 $16,500 $0.86

6,000 5,546 100% EGI (%) 3.0% 2.7%

4,731 90% Administrative / Professional 5,000 $1,035 $0.05 $1,035 $0.05 80% eet Fees 70% e F 4,000 Total Operating Expense $173,652 $9.05 $173,652 $9.05 60% 2,787 3,000 50% Net Operating Income $370,135 $19.29 $436,148 $22.73 40% Operating Expense Ratio 31.9% 28.5% 2,000 30% 1,056 20% 1,000 515 Cumulative % of NRA Expiring Squar 000 0 0 10% 0 0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

YEAR

15 SECTION IV AREA OVERVIEW

16 Camden-New Jersey Center

SAN JOSE, CALIFORNIA San Jose is an economic, cultural, and political center of Silicon Valley and the largest city in Northern California. With an estimated 2018 population of 1,035,074, it is the third most populous city in California (after Los Angeles and San Diego) and the tenth most populous in the United States. San Jose is the largest city in both the San Francisco Bay Area and the San Jose-San Francisco-Oakland Combined Statistical Area, which contains 7.7 million and 8.7 million people respectively.

San Jose is a global city notable as a center of innovation, for its affluence, and high cost of living. San Jose’s location within the booming high tech industry, as a cultural, political, and economic center has earned the city the nickname “Capital of Silicon Valley”. San Jose is one of the wealthiest major cities in the United States and the world, and has the third highest GDP per capita in the world (after Zurich, Switzerland and Oslo, Norway), according to the Brookings Institution. The San Jose Metropolitan Area has the most millionaires and the most billionaires in the United States per capita. Major global tech companies including Cisco Systems, eBay, Hewlett Packard Enterprise, Cadence Design Systems, Adobe Systems, PayPal, Brocade, Samsung, Acer, and Western Digital maintain their headquarters in San Jose, in the center of Silicon Valley.

MAJOR EMPLOYERS

“CAPITAL OF SILICON VALLEY”

17 San Jose, California

18 Camden-New Jersey Center

DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2023 Projection 23,433 193,260 481,515

2018 Estimate 22,703 186,889 464,739

2010 Census 21,557 177,917 437,202

Growth 2018-2023 3.21% 3.41% 3.61%

Households 1-Mile 3-Mile 5-Mile

2023 Projection 8,509 74,370 182,250

2018 Estimate 8,021 70,019 171,249

2010 Census 7,745 67,689 163,521

Growth 2018-2023 6.08% 6.21% 6.42%

Income 1-Mile 3-Mile 5-Mile 2018 Average $164,321 $167,980 $161,539 Household Income

19 San Jose, California

ECONOMY San Jose holds the distinction of being a United States Foreign-Trade Zone. The City received its Foreign Trade Zone grant from the U.S. Federal Government in 1974, making it the 18th foreign-trade zone established in the United States. Under its grant, the City of San Jose is granted jurisdiction to oversee and administer foreign trade in Santa Clara County, Monterey County, San Benito County, Santa Cruz County, and in the southern parts of San Mateo County and Alameda County. #1 SAN JOSE LEADS San Jose lists many companies with 1,000 employees or more, including the headquarters of Adobe, Altera, Brocade NATIONAL RANKINGS Communications Systems, Cadence Design Systems, Cisco Systems, eBay, Lee’s Sandwiches, Lumileds, PayPal, Rosendin FOR EMPLOYEE Electric, Sanmina-SCI, and Xilinx, as well as major facilities for Becton Dickinson, Ericsson, Hewlett-Packard, Hitachi, IBM, SATISFACTION Kaiser Permanente, KLA Tencor, Lockheed Martin, Nippon Sheet Glass, Qualcomm, and AF Media Group. The North American headquarters of Samsung Semiconductor is located in San Jose.

San Jose companies benefit from proximity to the region’s top-ranked universities, including San Jose State University, Santa Clara University, Stanford University, and The University of California-Berkeley. San Jose State anchors Downtown with 30,000 students, providing a steady stream of new recruits and interns. #1 SAN JOSE METRO Silicon Valley AREA TOPS RANKINGS • Silicon Valley is in the southern part of the San Francisco Bay Area in Northern California in the United States. The region FOR ECONOMIC is home to many of the world’s largest technology companies including Apple, Cisco, Google, HP, Intel, and Oracle. The GROWTH AND JOB term originally referred to the region’s large number of silicon chip innovators and manufacturers, but eventually came to DEVELOPMENT refer to all the high-tech businesses in the area; it is now generally used as a metonym for the American high-tech sector. Despite the development of other high-tech economic centers throughout the United States and the world, Silicon Valley continues to be the leading hub for high-tech innovation and development at 387,000 high-tech jobs, of which Silicon Valley accounts for 225,300 high-tech jobs. • Since the early twentieth century, Silicon Valley has been home to a vibrant, growing electronics industry. The industry began through experimentation and innovation in the fields of radio, television, and military electronics. Stanford University, its affiliates, and graduates have played a major role in the development of this area. #1 SAN JOSE ON TOP RANKINGS IN • Area schools such as the University of California, Berkeley, University of California, Santa Cruz, San Jose State University, NATIONAL BUREAU OF San Francisco State University, California State University, East Bay, Santa Clara University, and Stanford University ECONOMIC RESEARCH pump thousands of engineering and computer science graduates into the local economy every year. FOR UPWARD MOBILITY

“THE TECH INDUSTRY HELPED THE BAY AREA ECONOMY GROW THREE TIMES FASTER THAN THE NATIONAL AVERAGE”

20 Camden-New Jersey Center

CULTURE Public art is an evolving attraction in the city. The city was one of the first to adopt a public art ordinance at 2% of capital improvement building project budgets, and the results of this commitment are beginning to affect the visual landscape of the city. There are a considerable number of public art projects throughout the downtown area, and a growing collection in the newer civic locations in neighborhoods including libraries, parks, and fire stations. Of particular note, the Mineta Airport expansion is incorporating a program of Art & Technology into its development.

The city is home to many performing arts companies, including Opera San Jose, Symphony Silicon Valley, Ballet San Jose Silicon Valley, sjDANCEco, Children’s Musical Theater of San Jose, the San Jose Youth Symphony, the San Jose Repertory Theatre, City Lights Theatre Company, The Tabard Theatre Company, San Jose Stage Company, and the now-defunct American Musical Theatre of San Jose which was replaced by Broadway San Jose in partnership with Team San Jose. San Jose also is home to the San Jose Museum of Art, one of the nation’s premiere Modern Art museums. The annual Cinequest Film Festival in downtown has grown to over 60,000 attendees per year, becoming an important festival for independent films. The San Francisco Asian American Film Festival is an annual event, which is hosted in San Francisco, Berkeley, and Downtown San Jose. Approximately 30 to 40 films are screened in San Jose each year at the Camera 12 Downtown Cinemas. The San Jose Jazz Festival is another of many great events hosted throughout the year.

The SAP Center at San Jose is one of the most active venues for events in the world. According to Billboard Magazine and Pollstar, the arena sold the most tickets to non- sporting events of any venue in the United States, and third in the world after the Manchester Evening News Arena in Manchester, England, and the Bell Centre in Montreal, Quebec, Canada. Including sporting events, the SAP Center averages 184 events a year, or roughly one event for every two days, which is significantly higher than the average for NHL arenas.

21E21 San Jose, California

CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs ofCamden-New Jersey Center located at 1910-1920 Camden Ave, San Jose, CA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive oßr contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

22 OFFERING MEMORANDUM CAMDEN-NEW JERSEY CENTER

1910-1920 Camden Avenue | San Jose, CA 95124

LISTED BY

JORDAN GOMEZ EL WARNER ASSOCIATE EVP & NATIONAL DIRECTOR Direct +1 949 432 4503 Direct +1 949 873 0507 Mobile +1 951 264 5994 Mobile +1 858 752 3078 [email protected] [email protected] License No. 02008809 (CA) License No. 01890271 (CA)

23