8560 Sunset West Hollywood, CA 90069 OFFERING MEMORANDUM Exclusive Advisors: Richard J. Plummer David C. Hasbrouck Andrew T. Harper (213) 955-6418 (213) 955-6410 (213) 955-6464 Local Leasing Experts: Anthony C. Gatti Andrew R. McDonald (213) 955-6436 (310) 595-2219 Cushman & Wakefield of California, Inc. 601 South Figueroa Street, 47th Floor Los Angeles, California 90017 Tel: 213.955.5100 Fax: 213.955.5124 CUSHMAN & WAKEFIELD CONFIDENTIALITY & DISCLAIMER Statement of Confidentiality & Disclaimer This Offering Memorandum is confidential and is furnished to prospective purchasers of the Property described herein subject to the terms of the Confidentiality Agreement previously provided to and executed by such prospective purchasers. This Memorandum is intended solely to assist prospective purchasers in their evaluation of the Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of the Owner of the Property. This Memorandum was prepared on the basis of information available to the Owner and to Cushman & Wakefield of California, Inc., the Owner’s exclusive agent in connection with the sale of the Property. It contains pertinent information about the Property and the surrounding area but it does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow and other financial information contained herein are for reference only. Although the information contained in this Memorandum is believed to be accurate and reliable, neither the Seller nor its agent guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an “as is” basis, prospective purchasers should make their own independent assessments, investigations, and projections regarding the Property. Although additional material, which may include engineering, environmental, or other reports, may be provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering and environmental experts, counsel, accountants, and other advisors. The Owner expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time, with or without notice. The Owner shall have no legal commitment or obligation to any prospective purchaser unless and until a written Purchase and Sale Agreement has been fully executed and delivered and any and all conditions to the Owner’s obligations thereunder have been fully satisfied or waived. The Owner is responsible for any commission due its agent in connection with a sale of the Property. The Owner shall not be responsible for any commission claimed by any other agent or broker in connection with a sale of the Property. No other party, including the Owner’s agent, is authorized to make any representation agreement on behalf of the Owner. This Memorandum remains the Property of the Owner and its agent and may be used only by parties approved by the Owner and its agent. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as provided herein and as permitted by the express terms of the Confidentiality Agreement. CUSHMAN & WAKEFIELD TABLE OF CONTENTS Executive Summary The Offering . .1 Property Highlights . .1 Investment Highlights . .2 Financial Information . .2 Guidelines for Prospective Purchasers . .3 Area Description Westside Map . .4 West Los Angeles Overview . .5 Sunset Millennium Project . .14 Property Description Property Overview . .17 Improvements Description . .18 Site Description . .20 Typical Floor Plans . .21 Market Analysis Westside Los Angeles Market Overview . .23 West Hollywood Submarket Overview . .27 Sunset Millennium Competitive Subset . .29 8560 Sunset Competitive Leasing Niche . .29 Financial Analysis Investment Highlights . .33 10-Year Cash Flow Analysis . .34 Cash Flow Assumptions . .35 Tenant Information Selected Tenant Overviews . .37 Rent Roll . .39 Building Stacking Plan . .40 CUSHMAN & WAKEFIELD EXECUTIVE SUMMARY THE OFFERING Cushman & Wakefield of California, Inc. ("C&W"), as exclusive advisor and agent of the Owner, is pleased to offer for sale 8560 Sunset, West Hollywood, California (the "Property"). 8560 Sunset is a ten-story modern office building with an outstanding location in the heart of the Sunset Strip and is considered the best office building in the West Hollywood submarket. The Property contains 70,639 rentable square feet with parking for 173 vehicles in a convenient, two-level subterranean parking garage attached to the building and in an adjacent 962-stall parking garage. 8560 Sunset lies within the three-block Sunset Millennium Project. This high-end, urban residential, retail and office mixed-use development is anchored to the west of the building by 100,000 square feet of new retail, restaurants, and Equinox, an upscale fitness center. The east end of Sunset Millennium will include two luxury hotels totaling 300 rooms. PROPERTY HIGHLIGHTS Situated high atop Sunset Boulevard, 8560 Sunset provides spectacular views of West Los Angeles from virtually every floor. The Property recently underwent a comprehensive capital renovation program creating a virtually new building. The $10 million renovation consisted of new skin, mechanical systems, common areas, and a fire/life safety system. Unique, irreplaceable real estate in the greater West Los Angeles office market. Excellent location offering tenants access to some of the best retail, dining, entertainment and high- end housing in Southern California. With a strategic West Hollywood location along the Sunset Strip, 8560 Sunset is located at the heart of the entertainment and media industries. 8560 Sunset is adjacent to high-end executive housing in the Hollywood Hills, Beverly Hills, Bel Air and other elite west side communities. CUSHMAN & WAKEFIELD 1 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS The Property is 100% leased to six tenants. Limited lease expiration exposure allowing for substantial leverage. 8560 Sunset is situated in the highly desirable West Hollywood/Beverly Hills office market, an office market with major barriers for future development. Due to recent capital upgrades, relatively new tenant improvements, and the institutional quality of ownership, low capital expenditures will be required in the near-term. FINANCIAL INFORMATION Effective Gross Income . .$2,791,300 ($39.51 psf) Total Expenses . .$904,200 ($12.80 psf) Net Operating Income . .$1,887,100 ($26.71 psf) 2 CUSHMAN & WAKEFIELD EXECUTIVE SUMMARY GUIDELINES FOR PROSPECTIVE PURCHASERS The Property is being offered without an asking price. Bids Bids should be submitted to Cushman & Wakefield of California, Inc. in a non-binding Letter of Intent format. Terms of the Sale The purchase price shall be payable "All Cash" to Seller at the close of escrow. Other terms and conditions shall be in accordance with Seller's Purchase and Sale Agreement (The PSA) which shall include, among other things, an "As Is" sale. Seller will not pay any other commission or other consideration to any broker or intermediary other than its agent, Cushman & Wakefield, Inc. The Seller reserves the right to negotiate with any party on an exclusive basis at any time. The Seller also reserves the unrestricted right to reject any or all proposals. CUSHMAN & WAKEFIELD 3 8560 Sunset AREA DESCRIPTION WEST LOS ANGELES OVERVIEW 8560 Sunset is located in the highly desirable West Los Angeles area of Los Angeles County, internationally recognized as a premier business and living environment. The area known as "West Los Angeles" is generally bounded by the scenic Santa Monica Mountains to the north, Westchester and the beach city of Playa del Rey to the south, the Pacific Ocean to the west and La Cienega Boulevard to the east. West Los Angles is comprised of several of Southern California's most coveted, distinct communities and cities: Santa Monica, Marina del Rey, Culver City, Brentwood, Westwood, Century City, Beverly Hills, Westchester, Playa del Rey and West Hollywood. West Los Angeles offers the perfect blend of living and business quality of life that is evidenced by the cadre of prominent employers who make it home - technology, entertainment, media, law, accounting, and advertising firms, as well as finance, insurance, and real estate services companies. Many of these firms (particularly those in the entertainment, technology and high-end service industries) face increased competition in attracting skilled personnel and have found that a West Los Angeles location is a prerequisite of hiring and retaining qualified help. In addition, many of these firms are in high-margin industries, relatively insensitive to rental costs, but highly sensitive to location. The region's prestigious location benefits materially from the existing critical mass of similar firms and support services in the area, access to a highly educated labor force and ease of access to executive and employee housing. Upscale residential communities in the area include Beverly Hills, Bel Air, Pacific Palisades, Brentwood, Malibu and Santa Monica. City of West Hollywood The City of West Hollywood has come to define Los Angeles culture. Situated along the base of the Santa Monica Mountains to the north, the redeveloping Hollywood to the east and Beverly Hills on the west, West Hollywood is the West Coast's premier destination of music, interior design, art