575Cottonwood Executive Summary -...

EXECUTIVE SUMMARY

SILICON VALLEY NET LEASED SALE/LEASEBACK INVESTMENT OPPORTUNITY

COTTONWOODMILPITAS, CALIFORNIA575

THE OFFERING

Cushman & Wakefi eld, as exclusive advisor, is pleased to present the exceptional opportunity to acquire a 100% triple net leased offi ce/R&D building located at 575 Cottonwood Drive in Milpitas, California. The ±47,850 square foot building will be leased back by its current owner, Zollner Elektronik AG, on a 10-year NNN lease. The building is conveniently located with immediate access to freeways and proximity to public transportation, amenities, residential communities and surrounding business centers. The fee simple interest in 575 Cottonwood Drive is being off ered for sale without an asking price and on an all-cash basis.

PROPERTY SUMMARY

Address: 575 Cottonwood Drive, Milpitas, California

Product Type: Offi ce/R&D

Building Size: ±47,850 SF

Occupancy: 100%

Site area: ±3.26 acres (±142,005 SF)

Parking Ratio: 3.8 per 1,000



NNN Sale-Leaseback

• New lease to run 10 years• Market rate options to extend• NNN lease structure limits the exposure of the landlord to upward

movement in operating expenses.

Excellent Parent Company Credit

• Zollner Elektronik AG is headquartered in Zandt Germany and has been in business since 1965.

• Zollner consistently ranks in the top 15 global companies in the Electronic Manufacturing Services area.

• Zollner is a global leader in product R&D and engineering from concept to production, including prototyping, testing, quality control, supply chain management, material management, after sales service, repair and refurbishment.

• Currently the company has nearly 9,000 employees spread throughout 18 facilities across the globe.

• Zollner’s FY2015 performance consisted of Total Revenue of $1.3 Billion and Net Income of $70 Million (www.zolliner-electronics.com).

Signifi cant Investment into the Property

• After Zollner acquired 575 Cottonwood in 2011, they invested millions of dollars upgrading the facility.

• Improvements include a complete interior renovation of the offi ce area and manufacturing fl oor. New interiors and state of the art equipment give Zollner an undeniable advantage over the competition. Customers that need one-stop solutions rely on Zollner’s expertise.

• The capital spent resulted in a state of the art Electronic Manufacturing Services facility tailored to meet the needs of Zollner’s clients.

Prestigious & Desirable Location in the Heart of Milpitas

• Situated on the border of North San Jose and Milpitas in Silicon Valley’s Golden Triangle.

• Neighbors include Cisco, Micron, Linear Technology and Abbott Labs, to name just a few.

• Excellent street frontage and unique architecture make it a landmark property in the industrial park

Access to Transportation and Amenities

• Short walk to Milpitas Light Rail Station• Immediate access to I-880 and close proximity to I-680, SR-237,

and HWY 101.• New Milpitas BART Station under construction is 2.1 miles from the

property. Mineta San Jose International Airport is 5.7 miles west of the facility.


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For more information, please contact:

Jim KovaleskiManaging Director+1 408 436 [email protected]. #00846878

Craig KovaleskiSenior Vice President+1 408 436 [email protected]. #01303011

Thriving Offi ce/R&D Market Fundamentals

• Surging Bay Area technology sector• Silicon Valley R&D vacancy now stands at 9.3%, down from 9.88%

just one year ago.• The current average asking rent for R&D space in Silicon Valley is

$1.98 per square foot NNN.• Average asking rent for R&D in Milpitas is $1.60 per square foot

NNN.• Silicon Valley average asking rents have increased 16% in the past

12 months.• Recent leasing activity and residential conversion in Milpitas have

vacancy at 13.3%.• Investor demand for Silicon Valley R&D (and offi ce) product

remains strong, particularly for well-located, modern buildings with long-term tenancy from tech users in place.

CONFIDENTIALITY AGREEMENT

Cushman & Wakefi eld U.S., Inc., a Missouri corporation (“Cushman & Wakefi eld”) has been retained on an exclusive basis by Zollner Elektronik AG (the “Client”) to act as fi nancial advisor in connection with the solicitation of off ers for the sale of the property known as 575 Cottonwood Drive, Milpitas, California (the “Property”). All fees due to Cush-man & Wakefi eld in connection with the proposed transaction shall be paid by the Client.

Cushman & Wakefi eld has available for review certain information concerning the Property which includes, without limitation, fi nancial data and analyses as well as other materials pertaining to the Property (collectively “Informational Materials”). Th e undersigned potential purchaser and such potential purchaser’s broker (together referred to herein as “Potential Purchaser”) understands that all information provided by the Client or Cushman & Wakefi eld regarding the purchase of the Property, including, but not limited to, any marketing materials (along with any photographs, maps and artwork contained therein) shall be considered part of the “Informational Materials’ and shall be treated in accordance with the provisions hereof. Informational Materials will not include information or documents that (a) Potential Purchaser can demonstrate with documentary evidence that it was known by Potential Purchaser prior to the disclosure thereof by Client or Cushman & Wakefi eld; (b) came into the possession of Potential Purchaser from a third party which is not under any obligation to maintain the confi dentiality of such information; (c) has become part of the public domain through no act or fault of Potential Purchaser in violation hereof; or (d) Potential Purchaser can demonstrate with documentary evidence that it was independently developed by or for Potential Purchaser without the use of the Informational Materials.

Client will not permit the disclosure of any Informational Materials to a Potential Purchaser unless and until Potential Purchaser has executed this agreement. Upon Cushman & Wakefi eld’s receipt of this executed agreement, the Informa-tional Materials will be provided for the Potential Purchaser’s consideration in connection with the possible purchase of the Property, subject to the following conditions:

1. All Informational Materials pertaining to the Property that are furnished to the Potential Purchaser shall be held in the strictest confi dence and shall be used solely for the purpose of Potential Purchaser’s consideration of a purchase of the Property and shall not be copied or reproduced except as necessary for the consideration of the purchase of the Property. Within three (3) days of Client’s or Cushman & Wakefi eld’s request, Potential Purchaser shall either (a) return all Informational Materials and copies thereof (including any notes made from such Informational Materials) to Cushman & Wakefi eld, or (b) destroy all Informational Materials and copies thereof (including any notes made from such Informational Materials) and provide Cushman & Wakefi eld with written certifi cation of such destruction.

2. Th e Informational Materials may be disclosed to the Potential Purchaser’s partners, employees, legal counsel and institutional lenders (“Related Parties”) only on a “need-to-know” basis for the purpose of evaluating the potential purchase of the Property; provided, however, that Potential Purchaser shall inform such Related Parties of the confi dential nature of the Informational Materials and shall be responsible for a breach of this agreement caused by such Related Parties.

3. Potential Purchaser understands that (a) this agreement is made for the benefi t of Client and Cushman & Wake-fi eld and that either party may enforce its provisions, and (b) all inquiries and communications with respect to the contemplated purchase of the Property must be directed only to Cushman & Wakefi eld.

4. Potential Purchaser shall not (a) disclose the fact that discussions or negotiations are taking place concerning the possible acquisition of the Property or any of the terms thereof, or (b) contact any tenants of the Property with respect to the subject matter hereof without the written consent of Client or Cushman & Wakefi eld.

5. Th e Informational Materials do not purport to be all-inclusive or to contain all information that a prospective

purchaser may desire. Th e Potential Purchaser understands and acknowledges that neither Client nor Cushman & Wakefi eld, nor any of their employees or agents, make any representations or warranties as to the accuracy or completeness of the Informational Materials and that the information has not been independently verifi ed by Client or Cushman & Wakefi eld. Th e Informational Materials are not guaranteed as to completeness or accuracy nor are they intended as a substitute for independent due diligence and analysis by the Potential Purchaser. Po-tential Purchaser acknowledges that neither Client nor Cushman & Wakefi eld has any responsibility to update the Informational Materials.

6. Potential Purchaser acknowledges it is acting as a Principal or an Investment Advisor with respect to the proposed purchase of the Property, and not as a broker, and will not look to Client or Cushman & Wakefi eld for any fees or commissions other than those described in a separate commission agreement.

7. Th e Potential Purchaser hereby indemnifi es and holds harmless Client and Cushman & Wakefi eld and their respective affi liates, shareholders, directors, offi cers, employees, agents and successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any breach of any of the terms of this agreement or arising from any broker, agent or fi nder reclaiming by or through Potential Purchaser.

8. Th e Potential Purchaser acknowledges that the Transaction is being off ered subject to withdrawal from the mar-ket, change in off ering price, prior sale or rejection of any off er because of the terms thereof, lack of satisfactory credit references of any prospective purchaser, or for any other reason whatsoever, without notice. Th e Potential Purchaser acknowledges that the Transaction is being off ered without regard to race, creed, sex, religion, or national origin.

9. In any action to enforce the terms of this agreement, the non-prevailing party shall be responsible for payment of the prevailing party’s reasonable attorneys’ fees and expenses incurred in any such action. Upon execution of this agreement, this will become a binding agreement and will be construed in accordance with California law, without regard to confl ict of law principles. Th is agreement terminates one (1) year from the date hereof.

7. Th e Potential Purchaser hereby indemnifi es and holds harmless Client and Cushman & Wakefi eld a POTENTIAL PURCHASER:

Accepted and Agreed To Th is Day of , 2016

Company: Address:

By: City, State, Zip:

Name: Phone:

Title: Email:Name: Phone:

POTENTIAL PURCHASER’S BROKER:

Accepted and Agreed To Th is Day of , 2016

Company: Address:

By: City, State, Zip:

Name: Phone:

Title: Email:Name: Phone:

Please fax signed agreement to Jim Kovaleski/Craig Kovaleski at (408) 615-3444 or send via email to:

Jim [email protected]. 00846878

Craig [email protected]. 01303011

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