A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY

CHATSWORTH, CANSNORDHOFF STREET

20151

High-Quality, Single-Story Office Building Totaling 73,595 SF 100% Leased to the County of Los Angeles through December 2025 � Strategically located in the San Fernando Valley

1 20151 NORDHOFF STREET

THE OFFERINGCBRE, Inc. is pleased to offer an exciting opportunity to acquire 20151 Nordhoff Street, a 100% leased high quality office building located in the desirable San Fernando Valley submarket of Los Angeles. Renovated with substantial improvements in 2006 and 2017, the 73,595 SF single story office building, with excellent identity on a main street, is situated on 3.63 acres of land and is leased to the County of Los Angeles, with a Moody’s credit rating of Aa3, through December 2025.

The building is located in the West San Fernando Valley in the city of Los Angeles (Chatsworth). Tenants are drawn to this location given multiple nearby retail amenities including the Northridge Plaza Shopping Center and Northridge Fashion Center. This location also benefits from the Northridge Metrolink Station, just 2 miles from the building, and Metro Bus Stops at the intersections of Nordhoff St. and Winnetka Ave. (northwest corner) and Nordhoff St. and Oso Ave (southeast corner).

The building also has convenient access to the CA-118, CA-101, and I-405 freeways and approximately 7 miles from the Van Nuys Airport, 18 miles from the Bob Hope (Burbank) Airport, and 27 miles from Los Angeles International Airport.

The property is priced at $19,500,000 or a 5.97% capitalization rate with annual 3% increases in the rent. This investment opportunity offers additional cash flow with the repayment by the County of Los Angeles of an approximate $900,000 allowance at 7% interest for 60 months.

Address 20151 Nordhoff St., Chatsworth, CA

Square Footage 73,595

Land Size 3.63 Acres

Tenant County of Los Angeles

Lease Expiration December 2025

Occupancy 100%

Year Built 1966 (Renovated 1980)

Total Price $19,500,000

Year 1 Cap Rate 5.97%

Year 1 NOI $1,163,747

All Cash IRR 6.99%

INVESTMENT THESIS20151 Nordhoff Street offers investors a rare opportunity to acquire a well-located office building which is 100% leased to the County of Los Angeles through December 2025. Long-term leased government facilities continue to be in very high demand.

COMANCHE AVE

NORDHOFF ST

2EXECUTIVE SUMMARY

PROPERTY HIGHLIGHTSHIGH-QUALITY OFFICE BUILDING

• The office building totals 73,595 square feet and consists of a mix of private and open-office format as well as a large lunch room. • The property is fully sprinklered and features a fenced, lit, and secure parking lot which is surrounded by a wrought iron fence.• Originally designed as an industrial/R&D building, it was converted to 100% office use for the County of Los Angeles as the surrounding market continues to see increased density

with many properties getting converted to higher and better uses.• The previous tenant’s lease expired in September 2006 (Health Net, Inc.), and the County of Los Angeles signed their lease in October 2006. The minimal downtime demonstrates

the demand for this location.

BELOW REPLACEMENT COST• High construction costs, coupled with a lack of available land have created barriers to entry for competitive developments. This provides an opportunity to purchase the project at a

price that is below replacement cost, with no forecasted new development.

ADDITIONAL CASH FLOW AT 7% RETURN• Landlord will fund an allowance of approximately $900,000 for additional improvements and FF&E will be paid back by the County of Los Angeles over (via promissory note) five (5)

years at 7% interest. This adds an additional $17,722 per month in cash flow.• The IRR on a 10 year run is 7.61% including the additional amortization.

INVESTMENT HIGHLIGHTS

CAPITAL IMPROVEMENTS• Recent improvements to the building include new paint, new parking

lot slurry and striping, and upgraded restrooms. Additionally, with the recently signed lease extension, the landlord will be investing over $2 million in additional tenant improvements.

• In 2006 when the County of Los Angeles occupied the building, the following improvements were made:

- New roof - New package HVAC units throughout - New restrooms - New kitchen and kitchenettes - New landscaping (and further replaced in 2016)• In 2017 with the renewal the following improvements are being made: - Exterior Paint

- Upgraded exterior security system- Remodeled restrooms in portion of building including entirely

new toilets, sinks, faucets, partitions, fixtures and flooring- Remodeled office in approximately 40% of building- Parking lot re-slurried

3 20151 NORDHOFF STREET

LOCATION HIGHLIGHTSSTRATEGIC SAN FERNANDO VALLEY LOCATION

• Located at the northwest corner of Nordhoff St. and Comanche Ave., the building is just 3 miles from the CA-118, 5 miles from the CA-101, and 6 miles from the I-405, which provide excellent access to Ventura and Los Angeles Counties as well as the Southern California Freeway network. The building also offers convenient access to the I-5 and I-210 freeways.

PROXIMITY TO NEW DEVELOPMENTS IN THE AREA• Located just a ½ mile away from the building (20000 Prairie St. Chatsworth) “24” will be a next generation live/work/play campus concept. The project broke ground in November

2016. Owned by MGA Entertainment (creator of the Bratz doll), it is being developed by UNCOMMON. • The site will feature over 255,000 SF of creative office space, dining and retail options and production studios. The project will also include approximately 660 luxury residences.

NEARBY NEIGHBORHOOD AMENITIES• Northridge Plaza Shopping Center and Northridge Fashion Center are both within close proximity of the building. Within these shopping centers, employees will benefit from Costco

Wholesale, Best Buy, Lowe’s, 24 Hour Fitness, and various restaurants. The property is also within a mile of Pacific Theatres.• Several airports are within a short drive- 7 miles from the Van Nuys Airport, 18 miles from the Bob Hope (Burbank) Airport, and 27 miles from Los Angeles International Airport. Cal State

Northridge is within 3 miles from the property and Pierce College is within 4 miles.• Northridge Station, a Metrolink station, is located approximately 2 miles west of the property. This Metrolink begins at LA Union station and travels all the way to East Ventura, offering

employees an economical and efficient way to commute to the property.

4EXECUTIVE SUMMARY

TENANCY HIGHLIGHTS100% LEASED TO HIGHLY COMMITTED TENANT

• The County of Los Angeles, and specifically, the Department of Children and Family Services (DCFS) was established in 1984 and is the largest child protective services agency in the nation.

• DCFS has been in the building since 2006. This location is critical as their business depends on being physically located within the community it serves, limiting relocation options. This bodes well for long-term tenancy.

• Executed in June 2016, the new lease extension allows for the space to also be used for outpatient mental services to children, youth and their families.

• The Department of Mental Health (DMH) occupies approximately one-third of the building, and the DCFS operates in the remaining two-thirds of the building. The DMH conducts counseling, group therapy and other psychological uses at the property.

• Long term government leased facilities are in high demand.

MARKET HIGHLIGHTSSTRONG DEMOGRAPHICS

• Located in the West San Fernando Valley, this is an extremely attractive location given its access to a large highly educated workforce and proximity to highly affluent neighborhoods, schools and retail amenities.

• With 2.2 million people within 15 miles and 8.5 million people within 35 miles, the property is located in a dense suburb of the Greater Los Angeles area.

• Within 15 miles of 20151 Nordhoff St., there are 1.0 million people employed at 90,801 businesses.

• Median household income within 15 miles of the property is $74,983 (average household income is $111,904), which is 27% higher than the national median household income of $59,034.

DYNAMIC OFFICE MARKET• The greater San Fernando Valley office market consists of 20.5 MSF of Class A

and B office space. • The San Fernando Valley reported 176,407 SF of positive net office absorption in

the first two quarters of 2017. As a result, the direct vacancy rate is 13.5%, which is significantly below the SFV pre-recession high office vacancy rate of 12.3% set at the end of second quarter.

• Due to its competitive price advantage over the neighboring West Los Angeles market and high quality of life, the San Fernando Valley continues to draw national and regional tenants, including corporate headquarter facilities for such companies as MiniMed, JD Power & Associates, Dole and Sunkist Growers.

5 20151 NORDHOFF STREET

SITE PLAN

COUNTY OF LOS ANGELESEXP. 12/2573,595 SF

NORDHOFF STREETNORDHOFF STREET

BAHAMA STREETBAHAMA STREETCOMANCHE AVENUECOMANCHE AVENUE

6EXECUTIVE SUMMARY

AERIAL

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FF ST

WINNETKA AVE

NORTHRIDGEFASHION CENTER

NORTHRIDGE METROLINK STATION

NORTHRIDGEPLAZA SHOPPING CENTER

COMANCHE AVE

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OSO AVE

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20151NORDHOFF STREET

7 20151 NORDHOFF STREET

LOCAL MAP

Wells Dr

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Corbin Ave Tampa Ave

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Ronald Reagan FwyRonald Reagan Fwy

Chatsworth St Chatsworth St

Devonshire St

Lassen St

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Roscoe Blvd Roscoe Blvd

Strathern St

Sherman Way

Chase St

Vanowen St

Oxnard StOxnard St

Vanowen St

Balboa BlvdBalboa Blvd

White Oak Ave

Lindley AveLindley Ave

Reseda Blvd

Wilbur Ave

Corbin Ave

Winnetka Ave

De Soto Ave

Topanga Canyon BlvdTopanga Canyon Blvd

De Soto Ave

Canoga AveShoup Ave

Fallbrook Ave

Woodlake Ave

Mason Ave

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Corbin Ave

Tampa Ave

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Wilbur Ave

Reseda Blvd

White Oak Ave

Balboa Blvd

Hayvenhurst Ave

Woodley Ave

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San Diego FwySan Diego Fwy

Haskell Ave

Golden State Fwy

Sepulveda Blvd

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Woodman Ave

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Kester Ave

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Victory BlvdTopham St

Ventura Fwy

Ventura FwyVentura FwyVentura Blvd

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Sherman WaySherman Way

Saticoy St Saticoy St Saticoy St

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Parthenia St Parthenia St

Roscoe Blvd

Nordhoff St Nordhoff St

Plummer St Plummer St

Ronald Reagan Fwy

Filmore

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Lassen St

Devonshire St

San Fernando Mission Blvd

Rinaldi St

Santa Susana PassState Historic Park

StoneyPoint Park

ChatsworthOaks Park

ChatsworthReservoir

San FernandoMission Catholic

Cemetery

Encino GolfCourse

WoodleyPark

Shepherd of theHills Church

The JapaneseGardenWarner

Center

PorterRanch Granada

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PanoramaCity

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20151NORDHOFF STREET

LA METRO BUS STOP

8EXECUTIVE SUMMARY

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Los PadresNational Forest

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Catalina IslandEssential

Fish HabitatConservation Area

Los Angeles

Helendale

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Burbank Airport

Ontario International Airport

John Wayne Airport

LAX Airport

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ChannelIslands ofCalifornia

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20151NORDHOFF STREET

20151NORDHOFF STREET

Darla LongoBarbara PerrierBrett Hartzell

Michael KendallRebecca Perlmutter Finkel

Eric CoxGina Christen

NATIONAL PARTNERS WEST

CHATSWORTH, CA

Capital Markets ExpertsDARLA LONGO Vice ChairmanLic. 00639911 +1 909 418 2105 darla.longo@cbre.com

BARBARA PERRIER Vice Chairman Lic. 00969169 +1 213 613 3033 barbara.perrier@cbre.com

REBECCA PERLMUTTER FINKEL, CFA Vice President Lic. 01838624+1 310 922 5237 rebecca.perlmutter@cbre.com

MICHAEL KENDALL Senior Vice President Lic. 01895979 +1 909 418 2034 michael.kendall@cbre.com

Local Market ExpertBENNETT ROBINSONExecutive Vice PresidentLic. 00984312+1 818 907 4608bennett.robinson@cbre.com

Debt & Structured FinanceVAL ACHTEMEIERExecutive Vice PresidentLic. 01868169+1 213 613 3109val.achtemeier@cbre.com

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

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