4C C ST. SQUARE

LOFTS 428

MIXED-USE WITH NATIONAL CREDIT TENANT RESIDENTIAL VALUE ADD OPPORTUNITY

BILL SHRADER JOE BRADY DAVID MAXWELL UPT +1 858 677 5324 +1 858 677 5359 +1 858 677 5343 [email protected] [email protected] [email protected] est. 1989 4C SQUARE 428 C STREET 03

THE INVESTMENT

4C Square Lofts is a mixed-use building located in the Core Neighborhood of downtown San Diego. The Highlights property boasts a long term credit tenant and 28 loft style residential apartments with value-add potential. With its prime location in one of the most recognizable destinations in Southern and just steps away from the trolley that is expanding to UCSD and the UTC mall, Four C Square is well positioned for future success. Steps from trolley, which is expanding to UCSD, UTC mall, and over 6M SF of office space The heartbeat of every city lives in its downtown, and San Diego is no exception. Located only minutes from the airport, San Diego’s thriving urban center offers an abundance of options for accommodations, activities, dining and With its historic component and the attractive location, the building has tremendous upside cultural attractions, all easily accessible by foot, bike, car or public transportation. potential in the 28 loft style residential units

Adjacent to California Theatre redevelopment NEW FACADE - C ST

Ross Dress for Less has been at this location for 13 years and recently extended their lease for another 10 years

Highly desirable trade area and rare opportunity to acquire retail project of this size

Synergy with Gaslamp Quarter, Horton Plaza redevelopment, and booming East Village

NEW FACADE - 4TH AVE Redesigned building exterior

Value Long Term Limited Synergy with Long Term Creation Credit Tenant Supply Gaslamp Quarter Covered Land + Booming Play Downtown SD 4C SQUARE 428 C STREET 05

THE OFFERING

PRICE $18,995,000 LOCATION 428 C Street, San Diego, CA 92101 Area Developments | Proposed & Under Construction PROPERTY TYPE Mixed-Use Retail & Residential

PARCEL 533-533-04 ASH STREET 1 6th & A

Ross: 10 yr lease | 27,500 SF Residential Lofts RETAIL Ogawashi: 10 yr lease | 2,635 SF 1 2 RESIDENTIAL UNITS 28 loft style 28 A STREET

YEAR BUILT 1931 2 7th & A 4 STORIES 4 3 1ST AVE 2ND AVE 3RD AVE 4TH AVE 5TH AVE 6TH AVE 7TH AVE 8TH AVE 9TH AVE

PROPERTY INTEREST Fee Simple B STREET

C C ST. 3 450 B ZONING/DEVELOPMENT Building Area 8 SQUARE 428 C STREET - TROLLEY LINE Hotel, short-term rentals, live/work, office, 7 ALLOWED USES residential 54,845 SF 5 BASE MIN & MAX FAR 6.0 - 10.0 4 The Rey Phase II MAX FAR THROUGH BONUS +5.0 PAYMENT 6

BONUS FAR FOR SPECIFIC ENITIES 4.0 AND/OR PARKS TDR 705 6th Ave - PAGE 18 San Diego Municipal Code Chapter 15: Planned Districts (6-2017) F STREET MAX FAR (WITH ALL INCENTIVES/ 14.0 Retail Area 702 Broadway ZONINGBONUSES/TDR) 9 5

705 6th Ave - PAGE 18 San Diego Municipal Code Chapter 15: Planned Districts (6-2017) INFORMATIONSan Diego Municipal Code Chapter 15: Planned Districts Base(6-2017) Minimum & Maximum F.A.R. Maximum F.A.R. Through Bonus Payment 30,135 SF ZONING 8 California Theatre 9 Horton Plaza

INFORMATIONSan Diego Municipal Code Chapter 15: Planned Districts (6-2017) 02 6 625 Broadway

02 C ST. C ST. C C SQUARE 428 SQUARE 428

Land Area 7 5th & C 16,117 SF

Ch. Art. Div. Ch. Art. Div. 15 6 3 107 15 6 3 107 Ch. Art. Div. Ch. Art. Div. 15 6 3 108 15 6 3 108 4C SQUARE 428 C STREET 07

TENANT OVERVIEW

Financials & Rent Roll Overview Terms

MONTHLY RENT ANNUAL PRO-FORMA PRO-FORMA PRO-FORMA Ross Stores, Inc. is an S&P 500, Fortune SPACE SF % TYPE Renewed 10 year term PSF RENT YR 5 PSF ANNUAL YR 5 ANNUAL YR 10 500 and Nasdaq 100 (ROST) company Expires 01/31/29 headquartered in Dublin, California, Ogawashi - 4-5 year options 2,635 5% Gross $2.62 $82,844 $3.25 $102,765 $113,042 with fiscal 2017 revenues of $14.1 B. 1100 Fifth Ave The Company operates Ross Dress Annual Bumps: NN - Tenant for Less® (“Ross”), the largest off-price Ross - 428 C Year 5: 5% pays 50% of apparel and home fashion chain in the St. 1st floor 27,500 50% $1.77 $584,375 $1.85 $610,500 $721,875 ROSS Year 10: 18% Taxes and United States with 1,483 locations in and Basement Year 15: 7.6% Insurance 38 states, the District of Columbia and Year 20: 7% Residential - Guam as of November 3, 2018. Credit 24,710 45% Gross $1.87 $554,492 $2.30 $681,996 $750,196 Year 25: 6.6% 2nd/3rd Floor Rating: A-/Stable.

54,845 100% $1.86 $1,221,712 $1,349,215 $1,395,261 $1,585,112

3% Residential $16,635 $20,460 $20,460 $22,506 Vacancy

Gross Income $1,205,077 $1,328,756 $1,374,801 $1,562,606 Overview Terms

2018 Expenses ($224,153) ($224,153) ($246,568) ($271,225) 2% Op Ex growth YOY Opened in fall 2012, Ogawashi anchors Less: Property *half of total property itself as the latest dining establishment ($106,372) ($106,372) ($106,372) ($106,372) in the Gaslamp Quarter. Anchored by Taxes* taxes craft beers, both local, Japanese, and Expires 09/30/21 other international offerings, it proves NOI: $891,187 $1,018,690 $1,042,321 $1,207,515 1-5 year option @ FMV to be one of the more unique beer lists Annual Bumps: $200/yr that matches well with sushi. Hand- crafted cocktails and an impressive Pricing In Place Yr 2 with Resi Bumps Yr 5 Yr 10 OGAWASHI sake list make this an immediate hot $18,995,000 4.69% 5.36% 5.49% 6.36% spot for creative libations.

Overview Terms Assumable Existing Loan

LOAN CURRENT I/O FIXED RATE INTEREST LOAN CURRENT LOAN MATURITY EXT LENDER MONTHLY EXPIRATION EXPIRATION RATE AMOUNT BALANCE SERVICER 28 loft style residential units with DATE PAYMENT unbelievable ceiling heights and large Potential to upgrade Nationwide windows. Each unit has A/C, a kitchen, apartments, live/work, or short 10/05/24 N/A 11/05/2019 Loan Maturity 4.38% $5,000,000 $5,000,000 Life Insurance NorthMarq $18,250.00 full bath, and some have hardwood term rentals. Company flooring. Washer and dryers are provided on each floor. Assumption Fee 1% Assumption - Not to exceed RESIDENTIAL

Until 10/05/19 5% Prepay Assumptions made are for illustrative purposes. Buyer to verify any and all information provided. 4C SQUARE 428 C STREET 09

SALES COMPARABLES

1 2 3 6 ASH ST

801-823 5th Avenue Yuma Building 5th & C Sale Date: 11/30/18 Sale Date: 05/31/18 Sale Date: 01/29/18 Bldg SF: 25,000 SF Bldg SF: 6,950 SF Bldg SF: 20,000 SF Sale Price: $13,150,000 Sale Price: $5,160,000 Sale Price: $4,252,500 C ST. Price Per SF: $526 Price Per SF: $742 Price Per SF: $213 C SQUARE 428 Year Built: - Year Built: 1869 Year Built: 3 Property Type: Mixed-Use Property Type: Mixed-Use Property Type: Mixed-Use 9 BROADWAY

4 5 6 FRONT ST FRONT AVE FOURTH FIFTH AVE 7 5 HORTON PLAZA 1 4

William Penn Hotel The Haven The Billboard Lofts Sale Date: 12/01/17 Sale Date: 10/25/17 Sale Date: 02/23/17 Bldg SF: 31,011 SF Bldg SF: 4,692 SF Bldg SF: 17,061 SF 2 Sale Price: $10,540,000 Sale Price: $2,500,000 Sale Price: $8,575,000 MARKET ST Price Per SF: $339 Price Per SF: $533 Price Per SF: $503 Year Built: 1914 Year Built: 1923 Year Built: 2003 8 Property Type: Hotel Property Type: Multi-Family Property Type: Multi-Family

7 8 9

PETCO PARK

Louis Bank of Commerce Marin Building Marston Building Sale Date: 10/17/16 Sale Date: 03/07/16 Sale Date: Pending Bldg SF: 23,600 SF Bldg SF: 10,732 SF Bldg SF: 49,549 SF AVERAGE PRICE PSF | $410 Sale Price: $7,100,000 Sale Price: $4,500,000 List Price: $7.75M - $9.38M Price Per SF: $301 Price Per SF: $419 Price Per SF: $157 - $190 Year Built: 1999 Year Built: 1908 Year Built: 1896 Property Type: Mixed-Use Property Type: Mixed-Use Property Type: Mixed-Use 4C SQUARE 428 C STREET 011

APARTMENT RENTAL COMPARABLES

1 2 3

8 Broadway Lofts - No Parking Horton 4th Ave Apartments - No Parking Pioneer Warehouse Lofts - No Parking 9 5 Address: 1007 Fifth Avenue Address: 808 Fourth Avenue Address: 311 Fourth Avenue ASH ST Units: 84 Units: 99 Units: 85 Occupancy: 97.62% Occupancy: 100% Occupancy: 94.12% 6 Avg Unit Size: 815 SF Avg Unit Size: 689 SF Avg Unit Size: 1,037 SF TENTH AVE

Building SF: 75,436 SF Building SF: 51,317 SF Building SF: 110,986 SF UNION ST AVE FOURTH Avg Rent/PSF: $1,879/$2.31 Avg Rent/PSF: $1,416/$2.06 Avg Rent/PSF: $2,419/$2.33

C C ST. SQUARE 428 5 6 4 1 BROADWAY

HORTON PLAZA 2 Old City Hall - No Parking The Heritage - No Parking AVA Cortez Hill - Parking Address: 664 Fifth Avenue Address: 1471 8th Avenue Address: 1399 Ninth Avenue Units: 12 Units: 230 Units: 292 4 7 Occupancy: 100% Occupancy: 96.09% Occupancy: 92.81% MARKET Avg Unit Size: 1,090 SF Avg Unit Size: 924 SF Avg Unit Size: 779 SF Building SF: 13,083 SF Building SF: 213,058 SF Building SF: 238,315 SF Avg Rent/PSF: $1,700/$1.56 Avg Rent/PSF: $2,408/$2.61 Avg Rent/PSF: $2,065/$2.65

7 8 9 3

PETCO PARK

The Lofts at 655 Sixth - Parking Current - Parking Allegro Towers - Parking Address: 655 Sixth Avenue Address: 1551 Union Street Address: 1455 Kettner Blvd AVERAGE MONTHLY RENTAL PRICE | $2,160 Units: 106 Units: 144 Units: 201 Occupancy: 91.51% Occupancy: 93.75% Occupancy: 94.03% AVERAGE MONTHLY PRICE PSF | $2.41 Avg Unit Size: 651 SF Avg Unit Size: 1,103 SF Avg Unit Size: 968 SF Building SF: 99,528 SF Building SF: 180,125 SF Building SF: 183,158 SF Avg Rent/PSF: $2,100/$3.23 Avg Rent/PSF: $3,249/$2.95 Avg Rent/PSF: $2,833/2.93 4C SQUARE 428 C STREET 013

IN THE PATH OF DEVELOPMENT

C C ST. SQUARE 428

4TH & J

MANCHESTER PACIFIC GATEWAY

K1

7TH & MARKET 625 BROADWAY 820 BROADWAY

CA THEATRE

BROADWAY BLOCK

CARTE HOTEL

THE F11

EZABELLE 450 B ST

SPIRE PARK & MARKET

11TH & BROADWAY 6TH & A

7TH & A THE REY

PACIFIC HEIGHTS 4C SQUARE 428 C STREET 015

TROLLEY EXTENSION THE LOCATION

The Mid-Coast Trolley will extend Blue Downtown San Diego Line Trolley service from Santa Fe Depot 31,000 Redefine TERMINUS in Downtown San Diego to the University (WESTFIELD UTC) Residential Units City community, serving major activity The heartbeat of every city lives in its downtown, and San Diego is no your centers such as Old Town, UC San Diego, exception. Located only minutes from the airport, San Diego’s thriving and Westfield UTC. Service is anticipated to urban center offers an abundance of options for accommodations, activities, commute. UNIVERSITY CITY begin in 2021. dining and cultural attractions, all easily accessible by foot, bike, car or public The Mid-Coast Trolley will expand transportation. transportation capacity in the corridor to accommodate existing and future travel Where modern architecture and Victorian-Age buildings stand side-by-side, demand, particularly for peak-period you’ll discover eclectic galleries, chic boutiques, trendy nightclubs, rooftop commute trips. The project will provide bars, gastropubs, craft beer hangouts and fine dining restaurants lining the an effective alternative to congested freeways and roadways for travelers and streets. will result in fewer vehicle miles being CLAIREMONT MESA traveled. 10,265,767 Total Office SF The population along the corridor is predicted to increase 19 percent by the year 2030, while employment is predicted to increase 12 percent. PACIFIC BEACH

LINDA VISTA

16,208 MISSION BEACH Hotel Rooms

OLD TOWN

MISSION VALLEY OLD TOWN TRANSIT CENTER

MIDWAY PACIFIC HWY CORRIDOR UPTOWN OCEAN BEACH 862,408 Projected Convention Center Attendees SANTA FE DOWNTOWN DEPOT

POINT LOMA CORONADO C C ST. SQUARE 428 4C C ST. SQUARE

LOFTS 428

MIXED-USE WITH NATIONAL CREDIT TENANT RESIDENTIAL VALUE ADD OPPORTUNITY

BILL SHRADER JOE BRADY DAVID MAXWELL +1 858 677 5324 +1 858 677 5359 +1 858 677 5343 UPT [email protected] [email protected] [email protected] SAN DIEGO Lic. No. 01033317 Lic. No. 01908072 Lic. No. 01465828 est. 1989