HAMILTON PLAZA PRUNEYARD SHOPPING CENTER

The Pruneyard Downtown Creekside @ 17 Offices Offices Campbell

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SOLAR ROW AT WINCHESTER Pa yne Av e ( 12,751 AAD Franciscan T) Gardens INVESTMENT GRADE TENANT IN SILICON VALLEY

OFFERING MEMORANDUM

7-Eleven San Jose, CA | San Francisco Bay Area

www.preservewestcapital.com TABLE OF CONTENTS

PROPERTY HIGHLIGHTS 1 AERIALS 5

PROPERTY OVERVIEW 2 ABOUT THE AREA 6

ABOUT THE TENANT 3 DEMOGRAPHICS 8

SITE PLAN 4

Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property Putnam Daily described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed Partner financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and [email protected] make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, CA RE License #01750064 terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Lindsey Snider of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Vice President without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.906.2887 information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation [email protected] and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01443387 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Michael Maffia Managing Partner Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers 415.373.4060 a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a [email protected] purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with CA RE License #01340853 respect thereto.

Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.

www.preservewestcapital.com PROPERTY HIGHLIGHTS

WESTFIELD VALLEY FAIR SANTANA ROW Property Highlights

• New 12-Year Corporate Net Lease to 7-Eleven with with Scheduled Rental Escalations

entury Plaa - Investment Grade Tenant Rated AA- by S&P and Baa1 by Moody’s Offices - Tenant Extended Term Early, Demonstrating Long-Term Commitment to Site ynhaven Apartments - 30+ Year Operating History at this Location - Minimal Landlord Responsibilities • Pandemic-Resistant Tenant Offering Essential Goods & Services inchester - 7-Eleven Has Expanded Workforce Despite Pandemic in Response to Strong Plaa Demand for Mobile Orders and Delivery in - Tenant has Remained Open for Business Throughout the Pandemic

c • Strong Intrinsic Value in Infill Bay Area Market Where Demand for Real Estate Far hest Exceeds Supply

er - Average Household Income of $164,551 within 5 Mile Radius o - Median Home Value of $1.2 Million within 5 Miles of Site u l - Daytime Population of 1.9 million within 15 mile Radius SOLAR ROW AT WINCHESTER evard - Student Population of 63,479 within 5 Miles of Site Franciscan ardens 2,02 • Excellent Access and Visibility At Intersection of Payne Avenue and Winchester Boulevard Retail Corridor (36,780 AADT) - Less than 1 Mile from CA-17 Arterial (184,800 AADT) A • Prominent Retail Location Neighboring Numerous Major Retail Centers A - Nearby Anchor Tenants Include Safeway, Whole Foods, Trader Joe’s, Target, Walgreens, CVS, Rite Aid & More - Less than 2 Miles from Santana Row – 1.7 Million Square Foot Mixed-Use Center with Tenants Including Tesla, Crate & Barrell, Gucci, Kate Spade, Free People, Anthropologie, and more • Google is Planning to Develop an Urban Village in Downtown San Jose to Base 25,000 Workers in 7.3 Million SF of Offices, Build 4,000 Homes as well as Shops, Restaurants, a Hotel, and Cultural and Entertainment Hubs Franciscan • San Jose isardens Largest City in Northern California & Among Wealthiest Cities in the World Payne Ave 12,751 AA - 3rd-Highest Per Capita GDP in the World - Major Companies Headquartered in San Jose include Cisco, eBay, Adobe, WEST PARK PLAZA Paypal, Broadcom, Acer, Samsung, Acer, Hewlett Packard, and Zoom - Site Neighbors Offices of eBay, Netflix, Roku & More • Approximately 7 Miles from Downtown San Jose and 50 Miles from San Francisco

PRESERVE WEST CAPITAL | 1 PROPERTY OVERVIEW

PRICE $2,987,000 3.85% CAP Rate

Location Annual Rent

The property is located at 3111 Payne Avenue in San Jose, California. Years Annual Rent Return Lot Size 1-7 Feb 2020-Sept 2027 $115,000 3.85%

Approximately 0.52 acres or 22,651 square feet. 8-12 Oct 2027-Sept 2032 $123,625 4.14% Improvements 13-17 Oct 2032-Sept 2037 (Option 1) $132,897 4.45% A 2,620 square foot retail building for 7-Eleven. 18-22 Oct 2037-Sept 2042 (Option 2) $142,864 4.78% Parking 23-27 Oct 2042-Sept 2047 (Option 3) $153,579 5.14% There is ample parking available on site. Right of First Refusal Lease Tenant shall have the right of first refusal to purchase the property on the same Leased to 7-Eleven, Inc. for 25 years and recently extended for an additional 7 years terms and conditions as any bona fide third party offer received by the landlord by and 6 months through September 30, 2032, for a total of approximately 12 years providing written notice to the landlord within thirty (30) days of receiving written firm term remaining, at a current annual rent of $115,000. There are three (3) five- notice of such an offer. year options to renew the lease. Rent is to increase by 7.5% in October 2027 and at the start of each option period. The lease is net with tenant responsible for all taxes, insurance, and maintenance, excluding roof and structure. Financing This property will be delivered free and clear of permanent financing.

PRESERVE WEST CAPITAL | 2 ABOUT THE TENANT

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7-Eleven is the world’s largest international chain of convenience stores and operates, franchises, and licenses more than 60,000 stores in more than 18 countries. The stores sell AA food, beverages, and other daily necessities. ,751 Some locations additionally sell gasoline. 12 Ave 7-Eleven’s proprietary brands and products ne Pay include the Slurpee®, a sugary blended ice beverage, Big Gulp®, 7-Eleven Select, Big Bite®, and more. The company focuses on meeting the needs of its customers with innovative products, new technology, and more. 7-Eleven is privately owned and is a wholly- owned subsidiary of Seven-Eleven Japan Co, Ltd, based in Tokyo, Japan. The company is rated AA- by S&P and Baa1 by Moody’s.

PRESERVE WEST CAPITAL | 3 SITE PLAN

2620 SF

PAYNE AVENUE

PRESERVE WEST CAPITAL | 4 AERIAL SOUTH VIEW

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SOLAR ROW AT WINCHESTER ABOUT THE AREA

General Overview San Jose (population 1,026,658) is the largest city in Northern California, third most populous city in the state, and the seat of Santa Clara County. The city is a major hub for technological innovation and has been dubbed the “capital of Silicon Valley.” The city is part of the San Jose-Sunnyvale- Santa Clara metropolitan statistical area, which has a population of 1.8 million, and the San Jose-San Francisco-Oakland Combined Statistical Area, the second largest combined statistical area in California and the fifth largest in the U.S., and has a gross domestic product of $820.9 billion. Santa Clara County is the wealthiest county on the West Coast and one of the wealthiest counties in the United States. Strong high-tech employment and a high concentration of major companies and industries have resulted in a high concentration of wealth and significant population and economic growth in San Jose and the surrounding region. The technology industry draws many highly qualified international workers to the region, with net foreign migration of more than 22,200 annually. Though the region represents only 1.19% of California’s land area and 7.8% of the population, it represents 15.3% of GDP, 50% of initial public offerings, 54.5% of patent registrations, and 71.5% of venture capital activity in the state. Major companies operating or headquartered in San Jose include Cisco Systems, eBay, Adobe, Paypal, Broadcom, Samsung, Hewlett Packard, Acer, and Zoom. The region is home to numerous colleges and universities, including the University of California Berkeley, University of California Santa Cruz, Stanford University, Santa Clara University, San Jose State University, SITE San Francisco State University, and more. The area boasts above-average levels of academic attainment, particularly due to the high concentration of technology-related jobs in the area. The area is also home to numerous federal research facilities including the NASA Ames Research Center, located within the larger Moffett Federal Airfield, Lawrence Livermore National Laboratory, and the Stanford Linear Accelerator center. ABOUT THE AREA

San Francisco Major San Francisco Bay

Stanord Palo Alto Mountain Area Companies View Sunnyvale The San Francisco Bay Area region is best known as a hotbed of high- tech innovation, and is home to a plethora of major companies. Fortune upertino Santa 1000 companies headquartered in the region include Adobe, Alphabet lara Saratoga Inc., the parent company of Google, Apple, Facebook, Hewlett-Packard, Intel, Cisco, eBay, Applied Materials, Netflix, Oracle, NVIDIA, Tesla, ampbell Symantec, Visa, Electronic Arts, Salesforce, Advanced Micro Devices, Agilent Technologies, Intuit, Juniper Networks, KLA Tencor, Lam Research, LSI Logic, Marvell Semiconductors, National Semiconductor, NetApp, VMware, Western Digital Corporation, Xilinx, Yahoo, and more. Other notable companies with significant presence in the region include Amazon.com, Microsoft, LinkedIn, Twitter, Uber, Yelp, Youtube, Asus, San ose Atari, Broadcom, Dell, E*Trade, Fujitsu, IBM, Hitachi, Infosys, Nokia, Panasonic, Paypal, GoPro, Genentech, Charles Schwab Corporation, Gilead Sciences, Groupon, Pixar, Samsung, Siemens, SolarCity, TiVo, Qualcomm, SAP, Sony, Sun Microsystems, Square, Mozilla, McAfee, Logitech, SurveyMonkey, and Zynga. The region benefits from extensive presence of venture capital firms and investors, further fueling the growth and concentration of high-tech startups. ABOUT THE AREA Site Information The subject property is prominently located on Payne Avenue (12,751 AADT) adjacent to its signalized intersection with the Winchester Boulevard retail corridor (24,029 AADT), less than a mile from the San Tomas Expressway (44,513 AADT) and CA-17 (184,800 AADT) arterials. The site benefits from dense, affluent infill demographics with a total daytime population of 1,937,368 within a fifteen mile radius and total daytime population of 614,479 within 5 miles of the site. Average household income within 5 miles of the property is $164,551, with nearly 60% of households earning more than $100,000 annually. Median home value within a 5 mile radius exceeds $1.2 million. The property benefits from an irreplaceable infill location in close proximity to shopping centers, major retail tenants, employers, and schools. Shopping centers in the surrounding area include The Pruneyard, anchored by Trader Joe’s, Marshall’s, & Sports Basement; Hamilton Shopping Center, featuring Whole Foods & Ross; Campbell Plaza, anchored by Safeway & Dollar Tree; West Park Plaza, anchored by Rite Aid; Isabella Plaza, anchored by Walgreens & O’Reilly Auto Parts; Camden Park, anchored by Lucky & CVS; Cambrian Park Plaza, anchored by Dollar Tree and BevMo; Hillsdale Center, anchored by Target, Home Depot, and TJ Maxx/Homegoods; Kirkwood Plaza, anchored by Nob Hill Foods & Walgreens; San Tomas Plaza, featuring Dollar Tree and AutoZone; El Paseo de Saratoga, with tenants including Lucky, REI, Petco, SITE ULTA, and AMC Theaters; Westgate Center, anchored by Target & Nordstrom Rack; Westgate West, featuring Trader Joe’s, CVS, Sprouts Farmer’s Market, BevMo!, and Orchard Supply Hardware. Cambrian Park Plaza is slated for redevelopment as a mixed-use project featuring 58,000 square feet of retail space, 378 homes, 229 hotel rooms, and an assisted living facility. Other major retail tenants in the surrounding area include Lunardi’s Markets, Smart & Final Extra, Safeway, Walmart Neighborhood Market, Pet Food Express, Home Depot, Big Lots, and more. The site is additionally located less than two miles from Westfield Valley Fair Mall and Santana Row, an upscale 1.7+ million square foot mixed-use shopping center with retail tenants including Tesla, Best Buy, Crate & Barrell, The Container Store, Gucci, Kate Spade, CineArts Theater, Amazon Books, H&M, Free People, Anthropologie, and more, more than 830 residential units, and 376,000+ square feet of office space. The center recently added an additional 1.7 million square feet of office space, 61,500 square feet of retail, and 258 residential units, and draws more than 12 million visitors per year. In addition, the property neighbors the offices of eBay, Netflix, Roku, the FBI, Xilinx, and more. The property also neighbors Castlemont Elementary School, Monroe Middle School, Rosemary Elementary School, and Del Mar High School, drawing additional traffic from students, parents, and teachers to the site. The property is located approximately 3 miles from San Jose City College, with 9,270 students enrolled; 4 miles from Santa Clara University, with 8,669 students; 5 miles from West Valley College, with a student body of 9,804; and 5 miles from San Jose State University, with approximately 35,736 students enrolled. DEMOGRAPHICS

3111 Payne Ave | San Jose, CA 95117

Major Employers # of in San Jose Employees

County of Santa Clara 18,570

TOTAL POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME Cisco Systems 9,500

593,690 $1,272,004 $164,551 City of San Jose 7,728

San Jose State University 3,600

3,400 Population Summary 1 Mile 1 3 Miles 5 Miles eBay

2010 Total Population 32,926 233,647 559,332 Paypal, Inc. 3,300 2020 Total Population 33,281 244,702 593,690 2025 Total Population 34,872 250,144 613,221 Adobe Systems, Inc. 2,900 2020-2025 Annual Rate 0.94% 0.44% 0.65% Kaiser Permanente 2,585 Average Household Income

2020 $143,719 $156,836 $164,551 Target Stores 2,400 2025 $164,861 $176,361 $182,980 Good Samaritan Health System 2,240 Average Home Value

2020 $1,120,861 $1,221,442 $1,272,004 2025 $1,156,541 $1,243,413 $1,288,939

PRESERVE WEST CAPITAL | 9 Putnam Daily Lindsey Snider Michael Maffia Partner Vice President Managing Partner 415.445.5107 415.906.2887 415.373.4060 [email protected] [email protected] [email protected] CA RE License #01750064 CA RE License #01443387 CA RE License #01340853