FRANCISCO EXECUTIVE SUMMARY ,

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker, California License Number 01385740 (“HFF”) THE OFFERING FRANCISCO HFF has been engaged as the Exclusive Advisor to extend to qualified investors the opportunity to acquire the fee-simple interest SAN FRANCISCO, CALIFORNIA in 55 FRANCISCO (the “Property”), a Class A office building located along the waterfront in San Francisco’s North Waterfront District. The Property consists of an eight-story office building encompassing approximately 145,172 rentable square feet and an adjacent four-level, 274-stall parking garage situated on 1.12 acres. INVESTMENT HIGHLIGHTS 55 FRANCISCO is located at the corner of Francisco and Montgomery in San Francisco’s North Waterfront District, just off The Exceptional Class A Creative Embarcadero which spans from Fisherman’s Wharf to China Basin. 55 FRANCISCO is served by several public transit services Office Opportunity including MUNI’s Market Street F trolley line, as well as ferry service to Marin, the East Bay, and Peninsula just 4 blocks away at Large, efficient side core floor plates Pier 41, and provides superior access to Marin County via the Embarcadero. with dramatic 15’ slab-to-slab appeals to modern tenants seeking creative/open work environments

Strong In-place Diversified Cash Flow 100% leased to a diverse tenant base featuring medical, technology, media, and legal users with no more than 34% of total RSF accounted for by a single industry

Rare Structured Parking Garage

Four level, 274-stall (1.9 per 1,000 RSF) parking garage provides substantial income with diverse demand drivers

Irreplaceable and Protected Views

Waterfront location coupled with superior height offers spectacular unobstructed views

Significant Mark-to-Market Upside In-place rents are 33% below market with 37% of the building expiring in the first three years

Amenity-Rich Location

Within short walking distance to San Francisco’s most popular tourist destinations including , Fisherman’s Wharf, and

Discount to Replacement Cost

Substantial discount to replacement cost, estimated to be approaching $800 PSF EXECUTIVE SUMMARY

THE OPPORTUNITY 55 FRANCISCO represents a rare opportunity for an investor to purchase an institutionally-owned and maintained, Class A office property in an irreplaceable location along San Francisco’s highly coveted waterfront on a fee-simple basis. The Property features large, efficient floor plates ideal for today’s creative users.

The Property’s diverse in-place cash flow, significant upside potential, and protected sweeping views of the make it one of the most desirable office buildings in San Francisco.

55 FRANCISCO represents an exceptional opportunity to acquire a leading, stabilized San Francisco asset in one of the strongest office markets in the country at well below replacement cost.

PROPERTY SUMMARY Address: 55 Francisco Street, San Francisco, CA 94133 Size: 145,172 Square Feet Year Built / Renovated: 1916 / 1969, 1999, 2013 % Occupancy: 100% Parking: 274 Garage Spaces (1.9 / 1,000 RSF) Stories: 8 Typical Floor Plate: 18,000 - 22,000 Square Feet Slab to Slab: 15 Feet

3 APPROXIMATELY Exceptional Class A Creative Office Opportunity 55 FRANCISCO is an institutionally 50% owned, steel-frame constructed OF THE NET office building meeting the needs of RENTABLE AREA today’s sophisticated San Francisco user. The Property’s attractive IS CREATIVE/ glass line and accessible balconies OPEN FINISHES provide irreplaceable and protected panoramic Bay views, from the iconic in the west to the Bay Bridge in the east. Building amenities include secured bike parking, men’s and women’s showers, and a common area conference room.

Creative / Open Plan: 55 FRANCISCO is well-positioned to be transformed into a destination for creative/open platform users with approximately 50% of the Property’s office square footage built-out with creative/open finishes and exposed ceilings, taking full advantage of the Property’s 15 foot slab-to-slab construction.

Highly Efficient Floor Plates: The Property’s side-core construction results in highly-efficient floor plates. The large 18,000 - 22,000 square foot floor plates can accommodate full floor and multi-tenant configurations attractive to traditional, medical, and creative users with half of the floors currently leased to full-floor tenants. Rare Structured Parking Garage The Property contains 274 stalls located in an adjacent four-level structured parking garage for an above-market parking ratio of 1.9 stalls per 1,000 square feet.

• The parking garage enjoys seven days a week of occupancy from tenants, businesses, tourism, and entertainment, providing a stable source of significant diversified income in one of the tightest parking markets in the United States.

• The nearby cruise terminal at Pier 27 provides robust demand from cruise ship parking, which is currently valeted at the Property.

• There exists the opportunity to substantially enhance net parking income through payroll reduction from full automation of the parking facility, renegotiation of the management fee structure, restriping for an additional 12 stalls, increased marketing, and pushing below market rates as the surrounding supply continues to diminish with the redevelopment of existing lots. View to the Northwest

View to the Southeast

In-Place vs. Market Rent Graph Significant Mark-to-Market Upside $90.00 $80.10 18.0% $75.50 The Property provides investors attractive yield with a staggered $80.00 $71.17 $73.31 16.0% $67.08 $69.10 $63.99 rollover schedule with no single year experiencing more than 17% $70.00 $60.70 $60.95 14.0% $73.85 $60.00 12.0% of RSF expiring. In-place rents are currently 33% below market $64.02 $66.53 $66.10 $50.00 $58.87 10.0% and approximately 37% of the rentable area is slated to expire $55.21 $40.00 $49.40 8.0% $45.64 in the first three years, allowing an investor the opportunity toRent PSF/Year $43.48 $30.00 6.0% capitalize on the robust San Francisco North Waterfront office $20.00 4.0% market experiencing sub-4% vacancy and increase cash flow $10.00 2.0% through marking existing leases to market. $0.00 0.0% Current 2017 2018 2019 2020 2021 2022 2023 2024 2025 % RSF Expiring Weighted Average In-Place Rent Weighted Average Market Rent

5 FRANCISCO SAN FRANCISCO, CALIFORNIA

Strong In-Place Diversified Cash Flow 55 FRANCISCO is 100% leased to a highly diversified mix of tenants with no single industry making up more than 34% of the Property’s square footage. The rent roll is comprised of users from the medical, technology, legal, and business services sectors. This diverse tenancy provides investors with an income stream that is insulated against sector and tenant specific economic declines and exemplifies the ability of 55 FRANCISCO to attract and meet the varying needs of a wide array of users.

Tenant Diversity at 55 Francisco

3% 3% Entertainment

5% Marketing 7% Industrial 34% Legal 13% Software E-Commerce Media 17% 18% Medical Unique Mix of Creative and Medical Tenants Large, well-funded technology and established medical practices are drawn to EXECUTIVE 55 FRANCISCO for its: SUMMARY • State-of-the-art creative/medical facilities Tenant The RealRealTenant San Francisco Fertility Centers • Sweeping bay views Industry E-CommerceIndustry Medical RSF 23,388RSF 23,285 • Proximity to well-educated workforce Ownership PrivateOwnership Private • Soaring ceilings and unique work environment Website www.therealreal.comWebsite www.pacificfertilitycenter.com • Convenient access to executive housing in Marin County • Founded in 2011; 315 employees • Main location at 55 FRANCISCO; on-site • Abundant parking • Headquartered at 55 FRANCISCO laboratory • Has expanded once prior to taking occupancy • Tenant since 1999; has expanded 5 times • State-of-the-art lab facility has repeatedly • Has raised $123 million in funding including $40 received coveted perfect score certification million in 2016; generated over $100 million in sales in 2014 • World-renowned fertility clinic offering infertility diagnosis and treatment • Leader in online authenticated luxury good consignment

Tenant Endpoint ClinicalTenant DG Fast Channel Industry SoftwareIndustry Media RSF 18,212RSF 9,003 Ownership PrivateOwnership Private Website www.endpointclinical.comWebsite www.extremereach.com

• Founded in 2009; 200 • Founded in 1992 employees • Acquired by Extreme • Headquartered at 55 Reach in 2013 for $485 FRANCISCO million; now operates as a subsidiary • Has renewed once and expanded twice • Provider of digital media services and television • Leader in the interactive response technology (IRT) advertising industry used for clinical trials in the life sciences industry

• Solutions have been implemented in over 40 countries and 30 languages

Tenant Isolation Network Inc.Tenant EandM Industry Media Industry Industrial RSF 8,433RSF 7,322 Ownership PrivateOwnership Private Website www.isolationnetwork.comWebsite www.eandm.com

• Founded in 2002 • Founded in 1955 • Headquartered at 55 • Tenant since 2004 FRANCISCO • Headquartered in Healdsburg in • Innovative media & technology services company Sonoma County providing global distribution and marketing services to independent labels and established artists • Provider of industrial automation software and hardware • Selected by Universal Music Group to digitally distribute all of their music in North America

7 FRANCISCO SAN FRANCISCO, CALIFORNIA

COLUMBUS AVE Vibrant North Waterfront District TRANSAMERICA Office Submarket PYRAMID Situated in San Francisco’s North Waterfront district along The Embarcadero, which runs from Fisherman’s Wharf to China Basin,55 FRANCISCO enjoys a high profile location in one of the city’s most desirable neighborhoods. Renowned for its breathtaking waterfront views and close proximity to San Francisco’s most popular tourist destinations including Fisherman’s Wharf, Pier 39, and Ghirardelli Square, the North Waterfront offers tenants unparalleled access to world-class shopping and dining

amenities in a beautiful setting. BROADWAY ST

The North Waterfront/Jackson Square submarket is experiencing surging momentum as a result of robust market fundamentals. With approximately 5.3 million square feet of office space, the North Waterfront/Jackson ST Square submarket is home to several world renowned firms such as Levi’s, Esurance, Williams Sonoma, Pottery Barn, and Intel who are attracted by the waterfront views and high-quality office space in close proximity to the Financial District, without the congestion associated with the Financial District.

• As of Q1 2016, vacancy rates for the overall North W

aterfront/Jackson Square submarket was reported at 4.1%, the lowest mark among all San Francisco submarkets. Class A buildings in the North Waterfront/ Jackson Square outperformed the greater San Francisco market, experiencing even tighter vacancy at just 3.8%. THE EMBARCADERO

• Average asking rates have benefited from the diminishing availability as Class A rental rates increased 8.7% year -over-year through Q1 2016 to $66.48 PSF. This represents the highest rate since 2000, and a 122% increase over the most recent trough in Q1 2010. MUNI LIGHT RAIL Despite this growth, rental rates remain at a 13.4% discount to the Financial District. PIER 39

FRANCISCO SAN FRANCISCO, CALIFORNIA

JAMES R. HERMAN CRUISE TERMINAL AT PIER 277

MUNI LIGHT RAIL

North Waterfront/Jackson Square: Asking Rate vs. Vacancy

Rents Vacancy 25% +122% -78% $70.00 since 2010 since 2010 $60.00 20% THE $50.00 15% $40.00

$30.00 Vacancy % Vacancy 10% $20.00 5% $10.00

0% $- Q1 2010 Q1 2010 Q2 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 Rental Rate Vacancy FRANCISCO SAN FRANCISCO, CALIFORNIA

Discount to Replacement Cost Demand by capital for Class A office buildings in gateway markets has pushed pricing for high-quality office buildings through replacement costs. 55 FRANCISCO provides investors the opportunity to acquire a Class A office building at a significant discount to replacement costs, estimated to be nearly $800 per square foot. EXECUTIVE SUMMARY Amenity-Rich Location Unparalleled amenities surrounding 55 FRANCISCO include The Bay Club (San Francisco’s premier sports club), the Exploratorium, and a collection of high end restaurants, such as Hillstone, Piperade, and Park Tavern. Additionally, the Property is conveniently located within walking distance to Pier 39, Fisherman’s Wharf, Ghirardelli Square, The Ferry Building, and an abundance of other shops and entertainment venues in the Jackson Square and North Beach neighborhoods.

PIER 39 Pier 41 Biscoff Coffee Corner Bubba Gump Shrimp Co Ferry Terminal Cup of Love Eagle Café Pier 39 Fog Harbor Fish House Wipeout Bar & Grill Crab House at Pier 39 Swiss Louis Pier Market Seafood Hard Rock Café Chowders Players Sports Bar and Grill & Café Johnny Rockets F Forbes Island Hana Zen Sushi & Yakitori Rainforest Café Subway IHOP The Crepe Café Luigi's Pizzeria JEFFERSON Beach Street Grill Hot Spud The Wharf Inn Hotel Zephyr 39 Butterfly Restaurant Sheraton Fisherman’s Wharf Hotel 8BX BEACH STREET Interstate Hotels & Resorts Sammy’s Aloha Holiday Inn Express 47 Alcatraz Landing Café Hollywood Café TH E EM B Best Western Plus 24-Hour Fitness Hillstone A STREET 8X R CA 47 D NORTH POINT BAY STREET E Hyatt Fisherman’s Wharf Accelerate Sports Performance RO FRANCISCO Miyabi Sushi 30 Freddie’s Sandwiches P-Fits SAN FRANCISCO, CALIFORNIA F Starbucks Café Francisco Tan’s Café Trader Joe’s Fior d’Italia Cruise Terminal at Pier 27 Albona Restaurant STREET FRANCISCO Café Capriccio Bay Club Pat’s Café RJ’s Market Fog City Pier 23 Café 39 39

Cable Car II Fornaio Curry Leaf 8BX Parlor 1255 Beacon STREET Coffee & Pantry Seaglass Restaurant LOMBARD Coit Tower Starbucks

La Trappa Café STREET STOCKTON Levi Plaza Café

8X Liguria Bakery Sushi on North Beach Exploratorium STREET Café Destiji GREENWICH Da Flora Park Tavern 30 Don Pisto’s Piperade Cable Car COLUMBUS AVENUE STREET FILBERT Tony’s Pizza Napoletana 45 Battery Street Coffee Roastery 41 F

8X

UNION STREET

EET TREET NSOME STREET NSOME ATTERY STREET ATTERY

STREET

R S

A B Y

11 FRANCISCO SAN FRANCISCO, CALIFORNIA

Investment Sales

MICHAEL LEGGETT GERRY ROHM Senior Managing Director Senior Managing Director T 415.276.6924 T 415.276.6935 [email protected] [email protected] CA Lic. #01056334 CA Lic. #01367742

DAVID DOKKO GARRETT CALBERT Associate Director Real Estate Analyst T 415.276.6926 T 415.276.6925 [email protected] [email protected] CA Lic. #01960806 CA Lic. #01995186

Debt Financing

PETER SMYSLOWSKI Managing Director T 415.276.6950 [email protected] CA Lic. #01301231

Market Leasing

BRUCE WILSON JOSH PETERSON Senior Vice President Vice President T 415.291.1717 T 415.291.1712 [email protected] [email protected] CA Lic. #00975682 CA Lic. #01455490 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide andg provider is a leadingleadin of provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together withe HFFS its affiliateaffiliat offer clients HFFS aoffer fully clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisoryoan services, sales and loanl commercial sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracympleteness or completenessco of such of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on ts. those The informationresul results. The information contained herein is subject to change.