ABSOLUTE NET LEASED INVESTMENT OPPORTUNITY 7770 CLAIREMONT MESA BOULEVARD, SAN DIEGO, CA 92111 NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 5328 Banks Street, Suite B | San Diego, CA 92110 | P 619.297.0055 | F 619.839.3763 | www.pharmapropertygroup.com 7770 CLAIREMONT MESA BOULEVARD SAN DIEGO, CA 92111 Investment Highlights STABLE INCOME The lease is guaranteed by the Union Bank of California which has roughly 400 locations, over 10,000 employees and assets over $100 Billion. ABSOLUTE NET LEASE There are approximately 4 years left on the 2nd amendment to the lease before the next option to renew begins in November of 2021. This is an absolute net lease with no landlord responsibilities whatsoever. OPTION AND RENT INCREASE There is an option to extend for 10 years 11/9/2021 at market rate which will then increase 4% per year. HIGH BRANCH DEPOSITS This branch benefits from high deposits of over ±$156,500 million. LIMITED COMPETITION One of only three brick & mortar banks in the corridor. All other major banks only rent ATM space. TRAFFIC COUNTS The subject property is located at the signalized Northwest corner of Clairemont Mesa Blvd and Convoy Street with an average of 29,259 cars per day as well as three major highways with over 120,000 Pricing Building cars per day each. DEMOGRAPHICS Asking Price: $6,950,000 (4.43% CAP) Building Square Footage: 6,240 Average household income in a one mile radius is $93,018, $87,802 in a three-mile radius and $92,023 Price Per SF: $1,113.78 Land Square Footage: 33,105 in a five-mile radius. Total one mile population count is 2,895 residents, 90,140 residents in a three-mile Monthly Income: $25,660.67 Rent/Square Foot: ± $4.11 radius and there are over 308,014 residents in a five- mile radius. Annual Income: $307,928.04 Year Built: 1975 NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 2 7770 CLAIREMONT MESA BOULEVARD SAN DIEGO, CA 92111 Tenant and Lease Overview Tenant: UNION BANK OF CALIFORNIA Company Type: Subsidiary NYSE:MTU MUFG Union Bank, N.A., is a full-service Parent Company: Landlord Income: bank with offices across the United 2016 Assets: $117 Billion UNION BANK CORPORATE GUARANTEE States. Union Bank provides a wide 2016 Equity: $16.3 Billion range of corporate, commercial and Credit Rating: retail banking and wealth management solutions to its customers. It also INVESTMENT GRADE, AAA (S&P) offers an extensive portfolio of value-added solutions for clients, including investment banking, personal and corporate trust, global custody, transaction Lease Type: banking, capital markets, and other services. MUFG Union Bank is a member of ABSOLUTE NET LEASE the Mitsubishi UFJ Financial Group (NYSE: MTU). The corporate headquarters No Landlord responsibilities whatsoever. for MUFG Americas Holdings Corporation, which is the financial holding company and MUFG Union Bank, is in New York City. The main banking office of MUFG Union Bank is in San Francisco, California. Lease Term: APPROX. 4 YEARS BEFORE THE REMAINING OPTION BEGINS Company Type: NYSE:MTU Next Option Begins: 2016 Net Income: $8.4 Billion NOVEMBER 10, 2021 Mitsubishi UFJ Financial Group, Inc. is a 2016 Assets: $2.6 Trillion Rent to be reset to market rate and no less than 90% of rent paid by Tenant bank holding company. The Company’s 2016 Equity: $137 Billion during the 10th year of second renewal. segments include Integrated Retail Banking Business Group, Integrated Credit Rating: A (S&P) High Branch Deposits: Corporate Banking Business Group, ± $156,500 MILLION Integrated Trust Assets Business Group, Integrated Global Business Group and Krungsri. The Company’s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and RENT SCHEDULE various fields of financial services. The Company’s subsidiaries include The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mitsubishi UFJ Trust and Banking TERM dates rent / sf/ mo monthly rent Corporation (MUTB), Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSHD), Current Year 11/10/2017 - 11/9/2018 $4.11 $25,660.67 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) and Mitsubishi Year 2 11/10/2018 - 11/9/2019 $4.25 $26,687.10 UFJ NICOS Co., Ltd. Its Retail Banking Business Group covers retail businesses, including commercial banking, trust banking and securities businesses, and Year 3 11/10/2019 - 11/9/2020 $4.45 $27,754.58 offers a range of banking products and services, including financial consulting Year 4 11/10/2020 - 11/9/2021 $4.63 $28,864.73 services, to retail customers in Japan. NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 3 7770 CLAIREMONT MESA BOULEVARD SAN DIEGO, CA 92111 ATM SUBJECT PROPERTY ATM ATM ATM ATM LIMITED COMPETITION One of only three brick & mortar banks in the corridor. All other major banks only rent ATM space. High barrier to entry due to available space in the market. NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 4 7770 CLAIREMONT MESA BOULEVARD Location Aerial SAN DIEGO, CA 92111 122,000 CPD 192,000 CPD NOTT'S FOREST SUBJECT FOOTBALL CLUB PROPERTY 146,000 CPD clairemont mesa blvd - 29,259 CPD MADISON HIGH SCHOOL san diego unified school district california department of transportation balboa AVENUE - 47,000 CPD montgomery-gibbs executive airport NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 5 Property Photos 7770 CLAIREMONT MESA BOULEVARD Location Overview and Demographics SAN DIEGO, CA 92111 downtown pacific ocean Kearny Mesa is the geographic center of the county of San Diego (4th san diego largest county by population in the country) and is accessible from multiple population centers through a variety of freeways. This convenient location has allowed Kearny Mesa to become one of San Diego’s largest employment centers and residential development markets in Southern California. San Diego is a worldwide tourist destination. Beaches, SeaWorld, San Diego Zoo, conventions and a thriving culture lure visitors from around the globe. Tourists pour billions of dollars into the local economy helping to fuel job growth, development, and tax revenue. The employment profile is diverse and includes one of the most tech-friendly environments in the country. SUBJECT PROPERTY Household incomes continue to grow above the rate of inflation and are marine corps now near $70,000. Government, education, health services, professional and air station business services continue to be among the top performing industries. miramar San Diego, is a major city in California and the seat of San Diego County. montgomery Adjacent to the Pacific Ocean in Southern California, San Diego is field airport approximately 120 miles south of Los Angeles and immediately adjacent to the border with Mexico. San Diego is the eighth-largest city in the United States and second-largest in California. San Diego is known for its mild year- round climate, natural deep-water harbor, extensive beaches, association with the US Navy, and recent emergence as a healthcare and biotechnology development center. San Diego is the economic center of the region as well as the San Diego–Tijuana metropolitan area. Total Population Average Household Inc Total Households Average Age San Diego's main economic engines are military and defense-related activities, tourism, international 5 Miles 5 Miles 1 Mile 1 Mile 1 1 Mile 1 Mile 5 Miles 5 Miles 3 Miles 3 Miles 3 Miles trade, and 3 Miles manufacturing. 37.10 1,228 37.80 39,60 2,895 117,472 33,891 90,140 $93,018 291,852 $87,802 $92,023 Disclaimer: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the informa- tion. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approxi- SUBJECT PROPERTY mate. By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 6 7770 CLAIREMONT MESA BOULEVARD Property Photos SAN DIEGO, CA 92111 NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 7 7770 CLAIREMONT MESA BOULEVARD SAN DIEGO, CA 92111 Site Plan convo street - 16,740 CPD clairemont mesa blvd - 29,259 CPD Property Specifications Parcel Number: 356-040-08 Rentable Area: 6,240 SQUARE FEET Land Area: 33,105 SQUARE FEET Parking Spaces: 46 Year Built: 1975 NICK PRICE | Senior Vice President | 619.534.1000 JASON PONGSRIKUL | Managing Principal | 619.297.0055 [email protected] | CA DRE Lic. 01773111 [email protected] | CA DRE Lic. 01918332 page 8 7770 CLAIREMONT MESA BOULEVARD About the Architect of 7770 Clairemont Mesa SAN DIEGO, CA 92111 The subject property was constructed by renowned modernist architect Russell Isley Forester, a native of La Jolla who studied under Laslo Mohly-Nagy at the Institute of Design in Chicago, Illinois.