The Fresno Bee, 1626 E St. ±219,864 Sf / 14.8 Prime Acres Near Downtown Fresno

The Fresno Bee, 1626 E St. ±219,864 sf / 14.8 prime acres near Downtown Fresno

Fresno Chandler Executive Airport N

180

High Speed Rail Right of Way

Downtown Fresno

Capital Markets | Investment Properties The Fresno Bee, 1626 E Street 2

INVESTMENT CONTACT LOCAL MARKET CONTACT EXECUTIVE SUMMARY...... 03

Randy Getz Tony Cortopassi Executive Vice President Director +1 916 446 8287 +1 559 433 3549 PROPERTY OVERVIEW...... 08 Lic. 00828903 Lic. 01413706 [email protected] [email protected]

AREA OVERVIEW...... 11

500 Capitol Mall 9 River Park Place East Suite 2400 Suite 101 Sacramento, CA 95814 Fresno, CA 93720 MARKET DATA...... 13 The Fresno Bee, 1626 E Street 3 EXECUTIVE SUMMARY

THE OFFERING N CBRE, Inc. is pleased to offer an Fresno Chandler Executive Airport opportunity to acquire fee simple interest in the 219,864 square foot multi-function building in Fresno, 180 California where for decades The 1626 E STREET McClatchy Company created and published the Fresno Bee newspaper. The property occupies ±14.8 prime acres on the western edge of Fresno’s CBD near Highway 99, one of two major freeways connecting northern High Speed Rail Right of Way and southern California. The California High Speed Rail right-of-way is across G Street from the property and the proposed Fresno HSR station is within easy walking distance. Downtown Fresno The asset is offered without a fixed asking price. Interested parties may gain access to the due diligence website after executing a standard Non-Disclosure Agreement. Expressions of interest should be submitted to Randy Getz whose contact information is included herein.

(continued on next page) The Fresno Bee, 1626 E Street 4

THE OFFERING (continued)

The McClatchy Company publishes 30 newspapers in 29 markets nationwide and has for some time been consolidating its operations to maximize efficiency and reduce operating costs. The Modesto Bee and The Fresno Bee are now produced at the Sacramento Bee printing plant. Fresno personnel occupy and use only ±15,000 square feet so the current facility is an asset that can be sold and the resources deployed elsewhere. Remaining employees will be relocated at COE or shortly thereafter.

The Fresno metro area, including Clovis, has a population in excess of 600,000 people. It is the economic and cultural hub of a region that ranks as one of the United States’ most important agricultural centers, responsible for producing more than half the nation’s fresh fruits and vegetables. The Fresno Bee, 1626 E Street 5

OFFERING SUMMARY INVESTMENT HIGHLIGHTS

• ±219,864 sq. ft. of office/industrial space PROPERTY TYPE Industrial and office • ±14.8 prime acres on the western edge of Fresno’s CBD

PROPERTY NAME Fresno Bee Building • ½ block from Highway 99

1626 E Street ADDRESS • Across G Street from the proposed Fresno bullet-train station Fresno, California 93786 • Ideal location for one or multiple government agencies to Gross: 295,227 ESTIMATED SQ. FT. construct new offices Rentable: 219,864 • Potential redevelopment as industrial, warehouse, food or CURRENT OCCUPANCY ±15,000 square foot agricultural processing/manufacturing

• Large development sites near downtown are seldom available YEAR BUILT In two phases - 1977 / 1991

SITE 14.8 acres; 644,688 sf

ZONING IL – light industrial

PARKING 577 spaces

None. Prospective bidders are encouraged to familiarize themselves with the property and due diligence materials prior to submitting OFFERING PRICE offers. Access to the property and due diligence will be available following execution of a routine Non-Disclosure Agreement. The Fresno Bee, 1626 E Street 6

1626 E STREET

Source: California High-Speed Rail Authority The Fresno Bee, 1626 E Street 7

AREA OVERVIEW

The City of Fresno is the county seat of Fresno County. It is the sixth-largest city in California, the second largest inland city in California after Sacramento, and the 34th-largest city in the United States. Fresno is in the center of California’s San Joaquin Valley, a region that produces FRESNO the majority of the country’s fresh produce. It is estimated that one out of three jobs in the Fresno area is related to agriculture, and more than 500 trucking and warehousing firms are located in the area due to agricultural production and the City’s strategic centralized location.

Fresno is approximately 220 miles northwest of Los Angeles, 170 miles southeast of Sacramento, and 185 miles southeast of San Francisco. This centralized locale makes it an excellent choice for manufacturing and distribution, due to its location within one day's drive of more than 40 million people. This is made possible by Fresno’s proximity to Highway 99 as well as Interstate N 5 which runs the length of the state and connects with multiple east/west routes. MAP NOT TO SCALE

Fresno Chandler Executive Airport

1626 E STREET

E ST

G ST High Speed Rail Right of Way

H ST

Downtown Fresno The Fresno Bee, 1626 E Street 8 PROPERTY OVERVIEW

The Fresno Bee property was built in two phases in 1977 and 1991 and totals just under 300,000 sf gross (±220,000 sf rentable) on ±14.8 acres. Purpose- built for the creation, production, and distribution of a daily newspaper, the improvements consist of office, warehouse, printing and loading/distribution facilities. The property is located on the edge of Fresno’s downtown in an area surrounded by industrial and flex-type properties. The U.S. Post Office is adjacent. The site is zoned IL for light industrial and manufacturing.

Because of the multiple functions historically carried out here, the property is not laid out like a typical office or industrial property. Some of the office space has been updated over the years but some has not. The warehouse areas used for storage of raw materials and finished production do not feature large, uniform clear heights like conventional warehouses. And the printing plant portions of the property are highly specialized. All printing equipment will be removed prior to delivery.

Bock & Clark Environmental completed a phase 1 environmental site assessment in January 2016 which will be included in the available due diligence materials. The Fresno Bee, 1626 E Street 9

PROPERTY SUMMARY1

NAME Commercial polyurethane [details Fresno Bee building ROOF pending] 1626 E Street ADDRESS Varies by location. Max. 18’ at north Fresno, California 93706-2006 CEILING HEIGHT loading area COUNTY Fresno LOADING FACILITIES 15 dock-height doors; 10 drive-in doors ASSESSED VALUE (2019/2020) $12,085,679 ELEVATORS Three freight; one passenger PARCEL NUMBER 465-084-30 HVAC [details pending] LAND AREA 14.8 acres (644,688 sf) FIRE Fire sprinklers throughout PARKING TOTAL / RATIO 577 / 2.6:1,000 sf rentable Security cameras and key card entry SECURITY system ZONING IL-light industrial

ELECTRICAL 12,000V/3-phase YEAR BUILT 1977/1991 Two 12,000-gallon USTs with Industrial/warehouse/mfg.: ±119,864 sf UNDERGROUND STORAGE SQUARE FOOTAGES BY TYPE dispensers for fuel are located at the (ESTIMATED) Office/administrative: ±100,000 sf TANKS northeast corner of the building.

FLOORS Three + basement A website containing documents and additional information about the CONSTRUCTION TYPE Concrete NON-DISCLOSURE AGREEMENT property has been set up. Please contact AND DUE DILIGENCE ACCESS us if you would like to receive a link FOUNDATION Concrete to the Non-Disclosure Agreement and access to the due diligence site. 1 Sources: On-site property manager; appraisal dated December 2018 The Fresno Bee, 1626 E Street 10

SITE DESCRIPTION

The site is irregularly shaped and enjoys excellent ingress and egress with two driveways each on both E Street and G Street. Frontage totals 1,031 feet along E Street and 710 feet on G Street. Approximately 577 parking spaces are provided in a G ST paved lot located primarily in the southeast portion of the site.

E ST

N ➤

The City is without question the economic hub of the region, Downtown Fresno with the unincorporated rural areas surrounding Fresno engaged in large-scale agricultural production. In fact, agriculture directly employs 20 percent of the workforce and provides more than $3.5 billion to the local economy. It is estimated that one in three jobs in the Fresno area is in some way related to agriculture, and more than 500 trucking and warehousing firms are located in the area due to agricultural production and the City’s strategic centralized location. Two railways operate Old Fresno Water Tower intermodal facilities in the county and UPS, FedEx, and DHL Fresno City Hall all operate out of Fresno-Yosemite International Airport.

A majority of America’s produce is grown here and Fresno is the number one agricultural county in the United States. More than 7,500 farmers grow 250 types of crops on 1 million acres of some of the world’s most productive farmland. Major crops include grapes, cotton, cattle, tomatoes, milk, plums, turkeys, oranges, peaches, and nectarines. Not surprisingly a large food processing industry has developed around all this farming activity; a large number of canning, curing, drying, and freezing plants are located in the area. (continued on next page) The Fresno Bee, 1626 E Street 12

AREA OVERVIEW (continued) FRESNO’S TOP EMPLOYERS Fresno is strategically centralized within the state, approximately 220 miles # OF # EMPLOYER EMPLOYEES northwest of Los Angeles, 170 miles southeast of Sacramento, and 185 miles southeast of San Francisco. Fresno is a perfect location for manufacturing and 1 Fresno Unified School District 11,500 distribution by virtue of being within one day’s drive of more than 40 million 2 County of Fresno 6,500 people. This is made possible by Fresno’s proximity to Highway 99 as well as 3 Community Medical Centers 5,836 Interstate 5 which runs the length of the state and connects with multiple east/ 4 City of Fresno 3,780 west routes. Manufacturing firms in the region produce farm machinery, metal 5 Clovis Unified School District 3,370 products, transportation equipment, stone, clay, and glass products, lumber and wood products, furniture and fixtures, and electrical equipment.2 6 Saint Agnes Medical Center 2,812 7 Kaiser Permanente 2,696 8 Ruiz Food Products 2,500 9 California State University 2,334 10 Pelco 2,150 11 Coalinga State Hospital 1,925 12 Clovis Community Medical Center 1,667 13 State Center Community College District 1,630 14 Alorica 1,300 FRESNO 15 Quinn Group Inc 1,178 16 Foster Farms 1,100 17 AT&T 1,000 18 Cargill Meat Solutions 999 19 Zacky Farms 975 20 Aetna 950 21 VA Central CA Health Care System 897 N 22 Fresno County Office of Education 759 MAP NOT TO SCALE Sources: fresnoedc.com; Fresno County; Business Journal

2 City-data.com The Fresno Bee, 1626 E Street 13 MARKET DATA

FRESNO INDUSTRIAL PROPERTIES

New construction: Average rent: Average 496,000 SF Inventory: $6.48 psf, cap rate: 84.8 million SF trending ↑ 6.4%, Vacancy rate: Average price: trending → 3.4%, $75 psf, trending → trending ↑ The Fresno Bee, 1626 E Street 14

SALE COMPARABLES: CENTRAL VALLEY INDUSTRIAL

1 2 3 4 5 6

1626 3400 705 4315 2624 2100 1325 E STREET FINCH RD. N. CARLTON AVE. E. CHILDS AVE. E. EDGAR AVE. Q STREET H STREET FRESNO MODESTO STOCKTON MERCED FRESNO SACRAMENTO MODESTO

DATE SOLD Subject 7/10/19 11/30/18 11/2/18 9/26/18 9/7/17 12/6/16

SALE TYPE Investment- TBD Investment Owner-user Owner-user Owner-user sale-leaseback Owner-user

PURCHASER Endsley Properties Kevin & May Xu Fagundes Dairy Candor-Ags, Inc. Shopoff Realty Stanislaus County TBD Modesto Hayward Merced Fresno Irvine Office of Education

Mfg./Warehouse/ Newspaper plant/ Newspaper plant/ PROPERTY TYPE Warehouse Warehouse Warehouse Warehouse offices former Office offices Modesto Bee

ZONING IL - light industrial M I-G I-H M-3 C-2-SP unknown

YEAR BUILT 1977/1991 1980 unreported 1991 1989 1952 1986

PCT. OFFICE 45% 25% 16% 3% 5% 45% 50%

PRICE TBD $11,000,000 $3,398,000 $8,750,000 $10,500,000 $44,750,000 $6,895,000

SIZE 219,864 241,831 62,224 168,150 233,840 409,720 154,000

PRICE/SF - $45.49 $54.61 $52.04 $44.90 $109.22 $44.77 The Fresno Bee, 1626 E Street 15

MAP: SALE COMPARABLES: CENTRAL VALLEY INDUSTRIAL

MAP PROPERTY

5 Subject - 1626 E St., Fresno

1 3400 Finch Rd., Modesto

2 705 N. Carlton Ave., Stockton

3 4315 E. Childs Ave., Merced

2 4 2624 E. Edgar Ave., Fresno

5 2100 Q St., Sacramento

6 1 6 1325 H St., Modesto

N MAP NOT TO SCALE 4 The Fresno Bee, 1626 E Street 16 AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

COPYRIGHT NOTICE © 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. 20122203-349536 The Fresno Bee, 1626 E Street

INVESTMENT CONTACT LOCAL MARKET CONTACT

Randy Getz Tony Cortopassi Executive Vice President Director +1 916 446 8287 500 Capitol Mall +1 559 433 3549 9 River Park Place East Lic. 00828903 Suite 2400 Lic. 01413706 Suite 101 [email protected] Sacramento, CA 95814 [email protected] Fresno, CA 93720