OFFERING MEMORANDUM

Medical Office - Downtown San Jose 560 E. St John Street, San Jose, CA 95112 EXCLUSIVELY LISTED BY

Carlos Azucena Joshua Johnson First Vice President Investments Vice President Investments Tel: (408) 391-1746 Tel: (650) 391-1784 Fax: (408) 391-1710 Fax: (650) 391-1710 [email protected] [email protected] License: CA 01738155 License: CA 01930127 NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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560 E. St John Street San Jose, CA 95112

ACTIVITY ID ZAB0010210 560 E. ST JOHN STREET

EXECUTIVE SUMMARY

LISTING SUMMARY Price $1,050,000 Gross Leasable Area 1,240 SF Property Type Medical Office Year Built 1912 Lot Size 4,600 SF Type of Ownership Fee Simple Assessor’s Parcel Number 467-16-019 Zoning Designation CO, Commercial Office General Plan Land Use Residential Neighborhood Urban Village Land Use Residential Neighborhood

BUILDING SUMMARY Number of Floors One Plus Partial Basement Exam Rooms Two Private Offices Three Restrooms Two Records Storage One Room Plus Basement Parking Spaces Six Parking Ratio 4.83 Per 1,000 SF

4 560 E. ST JOHN STREET

INVESTMENT OVERVIEW

Marcus & Millichap is pleased to exclusively market for sale 560 E. St John Street, a single-tenant medical office building located in downtown San Jose. The building measures approximately 1,240 gross square feet (per owner) and is situated on a 4,600 square foot site on St. John Street between 12th Street and 13th Street. Currently, the property is configured with a reception area, three private offices, two exam rooms, a lab, break room, medical records storage area, and two restrooms. The building also has a basement (not included in the GBA) that is used for records storage. There are six on-site parking spaces at the rear of the site and a handicap-accessible ramp. The owner recently painted the building and has installed a new water heater, furnace, and air conditioning unit during the past few years.

560 East St. John Street is located near a clustering of medical and dental facilities in downtown San Jose. It is less than one-half mile from the Valley Health Center Downtown outpatient clinic operated by Medical Center and the non-profit Gardner Downtown Health Center. The property benefits from its proximity to US Highway 101, Interstate 280, and State Highway 87. In addition to being easily accessible from these highways, the building is one block from Santa Clara Street and is near bus stops for Santa Clara VTA service.

Downtown San Jose is currently undergoing a major development boom and the property is well-positioned for a tenant or owner-occupant to take advantage of the growing population nearby. More than 13,650 residential units have either been recently completed or are in the planning stages in the downtown area. Approximately 6.6 million square feet of new office space has been proposed in projects by Jay Paul, TMG Partners, Acquity Realty, and The Sobrato Organization. Additionally, Google recently submitted plans to develop a major transit village on the west side of downtown San Jose. The proposal includes up to 7.3 million square feet of office space, 5,900 residential units, 500,000 square feet of retail space, 300 hotel rooms, 800 limited-term corporate residences, and a 100,000 square foot event center. Finally, the property is only one-half mile from San Jose State University, which has an undergraduate enrollment of more than 27,000 students.

PROPERTY HIGHLIGHTS

▪ Single-Tenant Medical Office Building Ideal for Owner-Occupant ▪ Excellent Location in Downtown San Jose; Blocks from San Jose State University ▪ Six On-Site Parking Spaces ▪ Building Has Been Well Maintained by Seller and is in Good Condition ▪ Easy Access from US Highway 101, Interstate 280, and State Highway 87 ▪ Near Two Major Outpatient Clinics and Several Medical/Dental Properties ▪ Located in the East Santa Clara Street Urban Village Plan Area ▪ Major Development Projects in Downtown San Jose Will Increase the Residential Population and Daytime Employee Count

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LOCAL MAP

560 E. ST JOHN ST

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AERIAL

City Hall

San Jose State University

Downtown San Jose

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BUILDING LAYOUT

Drawing Not to Scale

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PROPERTY PHOTOS

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RESIDENTIAL DEVELOPMENT MAP

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RESIDENTIAL DEVELOPMENT PROJECTS

Project Name Location Units Status Project Name Location Units Status Roosevelt Park Apartments 21 N. 21st Stret 80 Approved Museum Place Residential 180 Park Avenue 306 Approved Marquis 817 N. 10th Street 166 Completed - 2015 The Graduate 300 S. Second Street 260 Under Construction Hanover Cannery Park 415 E. Taylor Street 403 Completed - 2018 Gateway Tower 455 S. First Street 300 Approved Mio Japantown 688 N. Seventh Street 103 Completed - 2015 Sparq Apartments 598 S. First Street 105 Completed - 2020 Japantown Senior Apartments* 685 N. Sixth Street 75 Completed - 2015 The Pierce 60 Pierce Avenue 232 Completed - 2016 Japantown Corporation Yard 620 N. Sixth Street 520 Approved Aura 180 Balbach Street 101 Completed - 2019 Seventh & Empire 535 N. Seventh Street 97 Approved Delmas Multi-Family 363 Delmas Avenue 120 Under Construction Sparta 525 E. Santa Clara Street 86 Under Construction Park Delmas 201 Delmas Avenue 123 Approved Sixth Street Multi-Family 73 N. Sixth Street 197 Approved Diridon Station Residential 402 W. Santa Clara Street 325 Approved 27 North 27 N. Sixth Street 119 Completed - 2016 Montgomery 7 565 Lorraine Street 54 Approved MIRO 167 E. Santa Clara Street 630 Under Construction Vespaio at Diridon 138 Stockton Avenue 164 Under Construction Donner Lofts* 158 E. Saint John Street 101 Completed - 2016 715 West Julian 715 W. Julian Street 249 Under Construction Villas on the Park 278 N. Second Street 84 Completed - 2020 Modera The Alameda 787 The Alameda 168 Completed - 2018 Park View Towers 254 N. First Street 220 Approved Avalon Morrison Park 899 Morrison Park Drive 250 Completed - 2014 The James Apartments 98 N. First Street 195 Completed - 2019 Laurel Grove Apartments 777 Park Avenue 182 Under Construction StarCity 199 Bassett Street 800 Approved West San Carlos Urban Village 270 Sunol Street 149 Approved North San Pedro Studios* 201 Bassett Street 135 Under Construction McEvoy Affordable Housing 699 W. San Carlos Street 365 Approved 195 W. Julian Street 381 Under Construction 750 West San Carlos 750 W. San Carlos Street 56 Approved San Pedro Tower 3 201 W. Julian Street 313 Under Construction 808 West 808 W. San Carlos Street 315 Completed - 2018 Centerra 77 N. Almaden Boulevard 347 Completed - 2015 Silver - Block A 860 W. San Carlos Street 263 Approved Silvery Towers 188 W. Saint James Street 643 Under Construction Silver - Block C 365 Sunol Street 268 Under Construction Modera by Millcreek 45 N. San Pedro Street 201 Under Construction Silver - Block B 345 Sunol Street 269 Under Construction One South Market 1 S. Market Street 312 Completed - 2015 425 Auzerais* 425 Auzerais Avenue 130 Approved Firestone 477 S. Market Street 130 Approved The Standard 515 Lincoln Avenue 190 Completed - 2017 27 West 27 S. First Street 374 Approved Mosaic 500 Race Street 388 Completed - 2012 Garden Gate Tower 600 S. First Street 285 Approved Meridian at Midtown 1432 W. San Carlos Street 218 Completed - 2015 Post & San Pedro 171 Post Street 228 Approved Buena Vista Midtown* 1535 W. San Carlos Street 95 Completed - 2015 Greyhound Station Residential 70 S. Almaden Avenue 781 Approved

* Affordable Housing Property

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REGIONAL OVERVIEW

Known to the world as , the San Jose metro is located at the southern end of the San Francisco Bay and encompasses Santa Clara and San Benito Counites. A large portion of the area’s 1,315 square miles is unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the region’s residents reside in the City of San Jose. It is the metro’s largest city, with more than 1 million residents, followed by Sunnyvale and Santa Clara. Venture capital funds received in the 1990s helped to turn the area into the world’s most prominent technology hub, a distinction that remains today.

The San Jose employment base contains more than 1.1 million workers, ranking the metro as one of the 30 largest job markets in the nation. There are 18 Fortune 500 companies headquartered in the San Jose metro, including Cisco Systems, Intel, Apple, eBay and Alphabet. The area’s many institutions of higher learning, including Stanford, San Jose State, and , support these companies by graduating thousands of engineering and computer science students each year.

The metro is expected to add approximately 107,300 people through 2024 and during the time more than 41,000 households will be formed. High home prices contribute to a home ownership rate below the national rate of 57 percent. Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including 22 percent who have also obtained a graduate or professional degree.

The San Jose metro has an enviable combination of major universities that produce a highly-educated workforce, cutting-edge firms and exceptional affluence. Residents can visit a variety of museums, including the and the Tech Museum of Innovation. Santa Clara County is home to performing arts companies and hosts the San Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s in Santa Clara and the hockey team plays at the SAP center in San Jose. Other sports venues include and . The metro is close to San Francisco and some of the world’s finest wine-producing regions, notably the Napa, Sonoma, and Alexander valleys.

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AREA DEMOGRAPHICS

POPULATION 1 Miles 3 Miles 5 Miles POPULATION PROFILE 1 Miles 3 Miles 5 Miles ▪ 2023 Projection ▪ Population By Age Total Population 49,878 291,052 677,541 2018 Estimate Total Population 48,420 283,401 663,924 ▪ 2018 Estimate Under 20 21.42% 24.90% 24.75% Total Population 48,420 283,401 663,924 20 to 34 Years 37.52% 28.75% 26.00% ▪ 2010 Census 35 to 39 Years 7.27% 7.99% 7.74% Total Population 44,175 257,439 610,273 40 to 49 Years 11.90% 13.34% 13.61% ▪ 2000 Census 50 to 64 Years 13.69% 15.63% 16.94% Total Population 43,759 250,967 589,936 Age 65+ 8.20% 9.40% 10.97% ▪ Current Daytime Population Median Age 30.40 33.01 34.56 2018 Estimate 84,691 330,814 734,852 ▪ Population 25+ by Education HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2018 Estimate Population Age 31,280 188,585 449,319 ▪ 2023 Projection 25+ Total Households 18,041 93,259 218,834 Elementary (0-8) 12.08% 11.96% 9.18% ▪ 2018 Estimate Some High School (9-11) 9.95% 10.71% 8.88% Total Households 17,069 88,217 209,700 High School Graduate (12) 17.87% 20.53% 20.24% Average (Mean) Household Size 2.54 3.04 3.02 Some College (13-15) 14.86% 16.06% 17.44% ▪ 2010 Census Associate Degree Only 6.40% 6.52% 6.97% Total Households 15,150 78,918 189,918 Bachelors Degree Only 21.43% 19.43% 21.67% ▪ 2000 Census Graduate Degree 14.15% 10.24% 11.83% Total Households 13,706 70,428 175,345 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2018 Estimate $200,000 or More 10.79% 10.76% 13.28% $150,000 - $199,999 8.63% 9.90% 11.55% $100,000 - $149,000 15.59% 17.23% 19.44% $75,000 - $99,999 9.93% 11.18% 11.01% $50,000 - $74,999 12.27% 14.15% 13.60% $35,000 - $49,999 10.66% 10.16% 9.33% $25,000 - $34,999 7.43% 7.20% 6.48% $15,000 - $24,999 10.01% 8.63% 6.96% Under $15,000 10.33% 8.93% 8.38% Average Household Income $106,977 $108,881 $122,984 Median Household Income $63,535 $73,194 $86,687 Per Capita Income $39,420 $34,513 $39,251

Source: © 2019 Experian

15 www.MarcusMillichap.com

EXCLUSIVELY LISTED BY

Carlos Azucena First Vice President Investments Tel: (408) 391-1746 Fax: (408) 391-1710 [email protected] License: CA 01738155

Joshua Johnson Vice President Investments Tel: (650) 391-1784 Fax: (650) 391-1710 [email protected] License: CA 01930127