PERFECT INVESTOR OR OWNER-USER OPPORTUNITY

OFFERING MEMORANDUM

RARE MEDICAL CENTRIC OFFICE BUILDING C0‑ANCHORED BY HIGH

CREDIT GOVERNMENT TENANT

PERFECT INVESTOR OR OWNER-USER OPPORTUNITY

JOHNNY CHOILic. +1 213 613 3344

[email protected]

MATT AGUILARLic. 02112401

+1 213 613 [email protected]

INVESTMENTHIGHLIGHTS07

EXECUTIVE SUMMARY04

FINANCIAL ANALYSIS25

AREADEMOGRAPHICS29

CONTENTS

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to thegeneral economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

Copyright Notice

© 2021 CBRE, Inc. All Rights Reserved.

PROPERTY DESCRIPTION10 Building Photos, Floor Plans

MARKET OVERVIEW16 Glendale Market, Medical Office Market,

Development, Local Amenities

Sale Comps

5

EXECUTIVE SUMMARY

04Offering

CBRE is pleased to exclusively offer for sale the 100% fee simple opportunity to

acquire 710 S. Central Avenue, (the “Property”), a highly improved professional value-

add, four-story office building located in Glendale, California. Totaling 36,437 square

foot, modern structure is situated over ground and subterranean levels of parking with a

dedicated count of 105 spaces. Built in 1991, the Property is well maintained and in stellar

condition with tenant and capital improvements totaling over $4M since 2016. The California

State’s Board of Barber and Cosmetology, a government entity, occupies the entire 4th floor, which

is approximately a third (+33.68%) of the leasable area, providing durable credit and income with a

lease out to 2029. California Cardiac Institute (CCI), the Seller, could either lease back or vacate their

portion (+24.7%) upon close of escrow; the remaining medical spaces have short term expirations

affording an owner-user or investor with multiple options.

One of the more significant attractions of the Property is its proximity to local destinations

like the iconic Americana and Glendale Galleria located 5-blocks to the North. Glendale

Memorial Hospital, with a licensed bed count of 334, is a 4- minute drive South. The

entire City of Glendale has been experiencing a tremendous amount of investment

with corporate migrations from Legal Zoom, Dream Works, Whole Foods, Canon,

Children’s Hospital of LA, and Cisco. This timely opportunity allows for an incoming

investor / owner-user the multiple optionality to acquire a well-positioned,

government anchored asset in one of the densest and burgeoning cities of

Southern California.

710 S. CENTRAL AVE, Glendale, CA6

DOWNTOWN GLENDALEDOWNTOWN GLENDALE

Colorado StColorado St

Central Ave

Central Ave

GLENDALE FASHION CENTER

SUBJECT PROPERTY

INVESTMENT HIGHLIGHTS

07

9

DOWNTOWN LOS ANGELESDOWNTOWN LOS ANGELES

SUBJECT PROPERTY

Cent

ral A

veCe

ntra

l Ave

Property

Overview

• Rare owner-user medical office opportunity with ample parking near Downtown Glendale –

Subject property was built in 1991 and offers ±105 spaces for parking on 2 levels of the building.

Parking is limited in the area and provides the potential for additional revenue.

• Solid credit co-anchor tenancy – the Department of Consumer Affairs Board of Barbering and

Cosmetology is the largest tenant in the building, occupying approximately 12,271 square feet and has

a lease expiring in 2029. This provides a great opportunity to acquire an asset with a government backed

lease.

• High traffic corridor in an amenity rich Downtown Glendale – Property is located within the dense Glendale

submarket, with over 27,000 cars per day reported on South Central Avenue and West Maple Street.

Additionally, the area is extremely walkable with attractions like Glendale Galleria, The Americana on

Brand, Porto’s Bakery and Café and various other restaurants along Colorado Street.

• Outstanding transit location – Glendale has impeccable foot traffic and transit services including

its own bus services, the Beeline, with 13 routes connecting customers to Jet Propulsion

Laboratory (JPL), the City of Burbank, and the Metrolink Stations in both Burbank and

Glendale. Strategically positioned, the property provides easy access to the I-5, SR-2,

SR-134, and the 210 freeways.

• Exceptional Glendale demographics – Subject property is located walking distance

from the heart of Downtown Glendale and features a city population of 246,000

and household incomes exceeding $98,000 within a 3-mile radius.

8 710 S. CENTRAL AVE, Glendale, CA

11

PROPERTY DESCRIPTION

10 Site

Description

Physical

Description

Address: 710 S. Central Avenue

City, State: Glendale, California

Year Built: 1991

Gross SF: 40,461

GLA: 36,437

Land SF: 22,651

Occupancy: 100%

Stories: 4

Current Use: Medical / Government

Construction: Reinforced Concrete & Steel

Roof Type: Flat Built-up Composition

Foundation: Concrete

Zoning: GLC3*

Floor-to-Area Ratio: 1.79

Parking: 105 Spaces

APN: 5641-013-004

Tenancy: Multi

Highway Access: 2, 5, 134 & 210

Ceiling Height: 11.5’

Fire Protection: Sprinklers

Elevators: (2) Passenger Elevators

Typical Floor SF: 10,115

Cross Street: Maple Street

710 S. CENTRAL AVE, Glendale, CA12 13

Local

Amenities


EXIT

EXIT

Floor

PlansFirst Floor

Second Floor

EXIT

Third Floor

Fourth Floor

1st floor lobby, office and parking VIRTUAL TOUR

3rd floor VIRTUAL TOUR

2nd floor VIRTUAL TOUR

17

MARKET OVERVIEW

16Glendale

MarketLocated minutes away from downtown Los Angeles, Pasadena, Burbank, Hollywood, and

Universal City, Glendale is the fourth largest city in Los Angeles County and is surrounded by

Southern California’s leading commercial districts.

As one of its core functions, Glendale provides well-maintained streets and a variety of transportation

services. The City’s historic success at attracting employers is partially attributed to the result of its

location at the center of four major freeways including the I-5 Golden State Freeway, SR-2 Glendale

Freeway, ST-134 Ventura Freeway, and the 210 Foothill Freeway; all provide easy access for residents, workers,

and customers from around the region. Glendale also offers its own bus services, the Beeline, with 13 routes

connecting customers to Jet Propulsion Laboratory (JPL), the City of Burbank, and the Metrolink Stations in both

Burbank and Glendale.

The Bob Hope Airport in Burbank serves the Los Angeles area including Glendale, Pasadena and the San Fernando

Valley. It is the only airport in the greater Los Angeles area with a direct rail connection to downtown Los Angeles.

The City of Glendale is located about 30 minutes from Los Angeles International Airport (LAX) which is a

commerce leader and designated as a world-class airport for its convenient location, modern facilities, and

superior sea/air/land connections.

Businesses and residents alike have taken advantage of Glendale’s central location, reputation for

safety, excellent business environment, outstanding schools, state-of-the-art healthcare facilities, and

growing restaurant and entertainment options. Glendale is also one of Southern California’s leading

office markets featuring a wide range of properties and amenities. The City has over six million

square feet of office space and is home to such recognized firms as Walt Disney Imagineering,

ServiceTitan, IHOP / Applebees, DreamWorks, LegalZoom, and Public Storage.

Glendale prides itself on the quality of services it provides to the community. It is a full-

service City, which includes a water and electrical department. The City operates its

own power plant capable of serving the electrical needs of the entire city, although

the majority of power is currently imported from other areas for cost savings.

Water comes primarily from the Metropolitan Water District, along with a small

portion from local wells.


Medical

Office MarketInvestment Appeal

Medical office provides recession resistant qualities that

appeal to investors and developers alike due to demand

in all phases of the economic cycle. The average medical

occupier tends to occupy their location for a long period of

time, typically 5 years on average based on CBRE leasing data,

and their localized patient base and highly improved space

makes it inconvenient to relocate without significant planning

and effort. Patient activity at MOB locations has picked up as

local practitioners attempt to catch up from the brief period

of time they closed their doors. As a result, many physicians

and medical occupiers are seeking to upgrade either existing

space or pursue a higher quality location to better serve their

clients and grow their business.

Distance to Major Hospitals

Dignity Health – Glendale Memorial 0.9 miles Adventist Health Glendale 2.4 milesChildren’s Hospital Los Angeles 3.9 milesHollywood Presbyterian Medical Center 4.2 milesLAC + USC Medical Center 7.6 miles

DevelopmentMOB development has accelerated through the end of 2020 with several

new projects being proposed throughout the close of the year.


• Tri-Cities market remains one of the hardest hit markets by sublease availability and total vacancy in Greater Los Angeles (GLA), led by multiple large block availabilities in Pasadena.

• Tenants are beginning to execute on newly revamped real estate plans that were previously put on hold in favor or short term renewals.

• Increased interest from the Life Science and Biotech industries paired with existing pent up demand from local business service firms and incumbent entertainment occupiers is fueling activity across the Tri-Cities region.

INCREASED TENANT ACTIVITY BOLSTERS LEASE RATES IN TRI-CITIES

SUBMARKET WRAP UPTRI-CITIES | Q1 2021

Inventory

26,781,038 SF Lease Rate$3.37 FSG

Direct Vacancy14.1%

Net Absorption-57,799 SF

SUBMARKET WRAP UP

ASKING RATE VS. DIRECT VACANCY• Direct Vacancy

decreased slightly from last quarters 14.2% to 14.1% to close out Q1 2021.

• Lease rates saw their first increase since Covid began as a result of increased tenant demand and higher quality space being placed on the market for lease.

$3.30

$3.36

$3.39

$3.37

$3.33

$3.29

$3.37

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

$3.24

$3.26

$3.28

$3.30

$3.32

$3.34

$3.36

$3.38

$3.40

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Dire

ct V

acan

cy (%

)

Aski

ng R

ate

(FSG

)

Tri-Cities Office Market Overview Q1 2021 2

DIRECT VACANCY BY DISTRICT

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Arcadia/Monrovia

Burbank

Glendale

North Hollywood

Pasadena

Studio City

Universal City

Direct Vacancy (%)

TOP LEASE TRANSACTIONS

TOP SALE TRANSACTIONS

Confidential Entertainment Tenant 2300 W Empire Ave| Burbank

51,365 SF | Expansion

Open Text 1055 E Colorado Blvd |Pasadena

40,000 SF | Renewal/Contraction

Azusa Pacific University604 E Huntington Dr | Arcadia/Monrovia

32,750 SF | Renewal

HealthNet of CA 101 N Brand Blvd |Glendale

24,410 SF |Renewal

Cardinia Real Estate Inc. 2 N Lake Ave | Pasadena

20,481 SF | Renewal

Media Center North BUYER: The Wonderful Company

SELLER: Goldstein Planting InvestmentsPRICE: $42.2M| $/SF: $448.62

1100 El Centro Street BUYER: South Pasadena Unified School District

SELLER: Samuel J & Sharon S Muir TrustPRICE: $10.75M | $/SF: $522.05

350 W Arden Avenue BUYER: Anush Mnatsakanyan

SELLER: Glauber/Berenson AttorneysPRICE: $6.25M | $/SF: $390.63

Fairmont Plaza BUYER: Dr. Christopher Lau, MD

SELLER: Joyce GainesPRICE: $5.2M | $/SF: $311.09

3100 New York Drive BUYER: Alvarez & Marsal Holdings, LLC

SELLER: Graymark CapitalPRICE: $33M | $/SF: $201.10

9.6%

5.1%

30.6%

18.4%

9.4%

5.3%

CBRE Glendale Office

17.0%



966,000 1,017,000819,500

991,5001,176,000

1,026,000887,000

1,124,000

0

500,000

1,000,000

1,500,000

Q 2 2 0 1 9 Q 3 2 0 1 9 Q 4 2 0 1 9 Q 1 2 0 2 0 Q 2 2 0 2 0 Q 3 2 0 2 0 Q 4 2 0 2 0 Q 1 2 0 2 1

SQ F

T

TRI-CITIES TENANT DEMAND BY SQFT

BLDG COUNT

INVENTORY(SQ. FT.)

TOTAL AVAILABILITY

NET ABSORPTION

(SQ. FT.)

ASKING RATE (FSG)

LARGE BLOCKS

(50K+ SF)DRIVING INDUSTRIES

Arcadia/Monrovia 21 1,461,170 18.6% 6,350 $2.76 0Architect/Engineers Health Care, Technology

Burbank 53 7,072,181 8.2% (32,413) $3.84 0Media-Entertainment, Financial Services, Technology

Glendale 49 6,666,559 21.1% (29,403) $3.25 1 Insurance Financial Services/Business Services, Legal

North Hollywood 12 1,320,866 36.2% (6,262) $3.49 2Media-Entertainment Creative Industries, Health Care

Pasadena 72 8,781,197 28.4% 17,393 $3.35 10Financial Services, Technology, Business Services

Studio City 6 316,085 11.2% (1,460) $3.61 0Media-Entertainment, Technology Business Services

Universal City 5 1,162,980 15.5% (12,004) $3.32 0Media-Entertainment, Business Services, Creative Industries

TOTAL 218 26,781,038 20.3% -57,799 $3.37 13

TRI-CITIES

ARCADIA/MONROVIAARCADIA/MONROVIA

PASADENAPASADENAGLENDALEGLENDALE

BURBANKBURBANK

STUDIO CITYSTUDIO CITY UNIVERSAL CITY

UNIVERSAL CITY

NORTH HOLLYWOODNORTH HOLLYWOOD

El Monte West Covina

Downtown

AzusaArcadia

Rosemead

Alhambra

Altadena

La PuenteMontebello

Temple City

Culver City

Baldwin Park

Monterey Park

Beverly Hills

Pacoima

Van Nuys

Sierra Madre

La Crescenta

Sherman Oaks

South Pasadena

Valley Village

Hollywood

La Canada Flintridge

MOS#372387

TRI-CITIES TENANT DEMAND

As higher quality space has hit the market in the form of newly vacated locations in existing class A locations and in new supply from locations such as NoHo West and the upcoming 10 West projects near completion, tenants have a bevy of choices when surveying the market for high quality space. Landlords conversely feel confident that as the pandemic nears its conclusion that occupancy will return to near pre-pandemic levels and thus have either increased asking rates or at the very least, held their rates steady.

SQ. F

T.

Tenant demand has rebounded in Q1 of this year, driven by occupier optimism. New occupiers have begun to tour the market led by Life Science, Biotech, and Healthcare firms looking to expand into the Tri-Cities. In parallel, local business services firms and long standing entertainment occupiers are looking to solidify their footprint and engage newly revised real estate strategies.


1

2

3

4

5

BUILDING NAME ADDRESS DELIVERY DATE RBA (SF) DEVELOPER LEASING STATUS

1 SFR 6265 San Fernando Road 6/1/21 100,000 Westbrook Partners CBRE Under Construction

2 10 West 100 W Walnut Ave 6/1/21 220,000 Morgan Stanley/Lincoln Property Group CBRE Under Construction

3 Avion 3001 N Hollywood Way 3/1/21 142,250 Overton Moore Properties CBRE Under Construction

4 Burbank Studios 3000 W Alameda 1/1/23 800,000 Worthe Real Estate Group Worthe Real Estate Group Under Construction

5 4561 Colorado Blvd North & South 4561 Colorado Blvd 12/1/21 188,661 Westbrook Partners CBRE Under Construction

FUTURE TRI-CITIES SUPPLY

Burbank Studios 3000 W ALAMEDA AVE.

10 West100 W WALNUT AVE.

Available

Partially leased

Fully leased

TBD

AVION BURBANK 3001 N HOLLYWOOD WAY

55%% Pre-Leased

1,450,911 SF Under Construction

0 SFCompleted Construction

SFR6265 SAN FERNANDO ROAD

SFR4561 NORTH & SOUTH BUILDINGS

4561 COLORADO BLVD.

Q1 2021 5


Regional

Map

FINANCIAL ANALYSIS

25


Executive

SummarySummary of

Financial Assumptions

771100 SS.. CCeennttrraall AAvveennuuee11-Year Hold Period - OM Run

EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

PPRROOPPEERRTTYY DDEESSCCRRIIPPTTIIOONN

Property Type Office Size of Improvements 36,437 SFProperty Owner Currently Vacant as of 10/1/21 9,334 SFProperty Address 710 S. Central Avenue Current Occupancy as of 10/1/21 74.38%

Los Angeles, CA Projected Occupancy as of 11/1/21 74.38%

AACCQQUUIISSIITTIIOONN AANNDD RREESSIIDDUUAALL SSUUMMMMAARRYY LLEEVVEERRAAGGEE SSUUMMMMAARRYY [1]

MARKET LOANPPuurrcchhaassee PPrriiccee aass ooff NNoovveemmbbeerr 11,, 22002211 $$441122 PPSSFF $$1155,,000000,,000000 Initial Loan Funding (as of Nov-21) $10,500,000

Loan-To-Value Ratio (Initial Funding) 70.00%

Year 3 Year 4 Year 5 Funding Date Nov-21Capitalization Rate 5.93% 6.17% 6.42% Maturity Date Oct-32Unleveraged Cash Return 5.87% 6.11% 6.36% Remaining Loan Term During Analysis 11.0 YearsLeveraged Cash Return 6.21% 7.01% 7.84% Amortization Period 30 YearsReturn on Cost 5.69% 5.92% 6.16% Initial Interest Only Period (If Any) -

Interest Rate 4.00%In-Place Capitalization Rate 3.27% 74.38% Occupancy Origination Fee on Total Loan Funding 0.00%Mark-to-Market Cap Rate 5.78% 95.00% Occupancy

Exit Fee on Balance at Maturity 0.00%3-Year 4-Year 5-Year Loan Constant 5.73%

Average Capitalization Rate 5.08% 5.35% 5.57% Initial Debt Yield 4.67%Average Cash Return 3.72% 4.32% 4.72% Debt Service Coverage Ratio (NOI) 0.82xAverage Leveraged Cash Return -0.98% 1.02% 2.38% Debt Service Coverage Ratio (CF) 0.15x

Gross Residual Value as of October 31, 2032 $629 PSF $22,919,000 Purchase Price as of November 1, 2021 $15,000,000Net Residual Value as of October 31, 2032 $610 PSF $22,232,000 Total Initial Loan Principal (10,500,000)

Net Residual Value Adjusted For Inflation $441 PSF $16,060,870 Total Initial Loan Fees 0Residual Capitalization Rate 5.50% Holdbacks and Escrows 0Residual Cost of Sale 3.00% Initial Equity $4,500,000

NOI Compound Annual Growth Rate (CAGR) 5.61%

AALLLL CCAASSHH IIRRRR 77..4499%% LLEEVVEERRAAGGEEDD IIRRRR 1111..8888%%AALLLL CCAASSHH EEQQUUIITTYY MMUULLTTIIPPLLEE 11..5588xx LLEEVVEERRAAGGEEDD EEQQUUIITTYY MMUULLTTIIPPLLEE 11..5500xx

[1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain.

CCaasshh FFllooww PPrroojjeeccttiioonnss BBaasseedd oonn AArrgguuss EEnntteerrpprriissee VVeerrssiioonn 1122..11..11

© 2021 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. This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform

Standards of Professional Appraisal Practice of The Appraisal Foundation.

9/24/2021 9:43 AM 2CBRE Financial Consulting Group

771100 SS.. CCeennttrraall AAvveennuuee11-Year Hold Period - OM Run

SSUUMMMMAARRYY OOFF FFIINNAANNCCIIAALL AASSSSUUMMPPTTIIOONNSS

GGLLOOBBAALL VVAACCAANNTT SSPPAACCEE LLEEAASSIINNGG SSEECCOONNDD GGEENNEERRAATTIIOONN LLEEAASSIINNGG

1144,,666655 SSFF 2211,,777722 SSFF$$33..5500 FFSSGG MMEEDD $$33..5500 FFSSGG

AAnnaallyyssiiss PPeerriioodd OOccccuuppaannccyy aanndd AAbbssoorrppttiioonn RReetteennttiioonn RRaattiioo 75% 75%Commencement Date November 1, 2021 Projected Vacant at 11/1/21 9,334 SF

End Date October 31, 2032 Currently Vacant as of 10/1/21 9,334 SF FFiinnaanncciiaall TTeerrmmssTerm 11 Years Percentage Vacant at 10/1/21 25.62% 2021 Monthly Market Rent $3.50 PSF $3.50 PSF

Absorption Period 9 Month(s) Rent Adjustment 3.00% Annually 3.00% AnnuallyAArreeaa MMeeaassuurreess ((NNRRSSFF)) Absorption Period Start Date November 1, 2021 Lease Term 5 Years 5 Years

Rentable Square Feet 36,437 SF First Absorption Occurs On December 1, 2021 Expense Reimbursement Type FSG FSGLast Absorption Occurs On August 1, 2022

TTeennaannttiinngg CCoossttssGGrroowwtthh RRaatteess FFiinnaanncciiaall TTeerrmmss && TTeennaannttiinngg CCoossttss $$33..5500 FFSSGG MMEEDD $$33..5500 FFSSGG Free Rent

Consumer Price Index (CPI) 3.00% 2021 Monthly Market Rent $3.50 PSF $3.50 PSF New 5.0 Month(s) 5.0 Month(s)Other Income Growth Rate 3.00% Rent Adjustment 3.00% Annually 3.00% Annually Renewal 2.0 Month(s) 2.0 Month(s)Operating Expenses 3.00% Lease Term 5 Years 5 Years Weighted Average 2.75 Month(s) 2.75 Month(s)Real Estate Taxes 2.00% Expense Reimbursement Type FSG FSGMarket Rent Growth Rent Abatements 5.0 Month(s) 5.0 Month(s) Tenant Improvements ($/NRSF)

CY 2022 - 3.00% - $3.61 PSF Tenant Improvements ($/NRSF) $40.00 PSF $20.00 PSF New $40.00 PSF $20.00 PSFCY 2023 - 3.00% - $3.71 PSF Commissions 6.00% 6.00% Renewal $15.00 PSF $15.00 PSFCY 2024 - 3.00% - $3.82 PSF Weighted Average $21.25 PSF $16.25 PSFCY 2025 - 3.00% - $3.94 PSF EEXXPPEENNSSEESSCY 2026 - 3.00% - $4.06 PSF Leasing CommissionsCY 2027 - 3.00% - $4.18 PSF OOppeerraattiinngg EExxppeennssee SSoouurrccee CY 2021 Estimates [2] New 6.00% 6.00%CY 2028 - 3.00% - $4.30 PSF Renewal 3.00% 3.00%CY 2029 - 3.00% - $4.43 PSF MMaannaaggeemmeenntt FFeeee ((%% ooff EEGGRR)) 3.00% Weighted Average 3.75% 3.75%CY 2030 - 3.00% - $4.57 PSF

CY 2031+ - 3.00% - $4.70 PSF RReeaall EEssttaattee TTaaxxeess RReeaasssseesssseedd Yes [3] DowntimeMillage Rate 1.083575% New 6 Month(s) 6 Month(s)

GGeenneerraall VVaaccaannccyy LLoossss 5.00% [1] Special Assessments $95,595 Weighted Average 2 Month(s) 2 Month(s)

CCaappiittaall RReesseerrvveess ((CCYY 22002211 VVaalluuee)) $0.20 PSF

NNootteess::All market rates are stated on calendar-year basis.[1] General Vacancy Loss factor includes losses attributable to projected lease-up or rollover downtime.

The following tenants are excluded from this loss factor for the lease terms modeled: CCI, State of CA.[2] Provided by Ownership for CY 2021 estimated expenses. It is up to the potential investor to conduct their own due diligence and underwrite reasonable expenses for this type of asset.[3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.083575% plus special assessments of $95,595.

**The information contained throughout this analysis has been obtained from sources believed to be reliable. It is up to the particular investor to conduct their own due diligence and confirm the information presented.

9/24/2021 9:43 AM 3

This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group


Sale

Comps - 2021

ADDRESS 516 Burchett 750 Fairmont Avenue 350 W. Arden Avenue 320 E. Harvard Street

CITY Glendale Glendale Glendale Glendale

DATE May 18, 2021 March 29, 2021 March 3, 2021 Febraury 25, 2021

SALE PRICE $9,000,000 $5,210,000 $6,250,000 $4,500,000

$/SF $399.89 $311.09 $390.63 $513.58

BUILDING SF 22,506 16,763 16,000 8.762

LAND SF 44,431 31,585 16,553 10,454

PARKING 40 spaces 45 spaces 48 spaces 25 spaces


AREA DEMOGRAPHICS

29


3-Mile Summary

Synopsis

CITY LIGHTS

MIDDLE GROUND

PRINCIPAL URBAN CENTER

21.8% HOUSEHOLDS IN STUDY AREA

Lifestyles OF THIRTYSOMETHINGS

Young, mobile, diverse

IN METROS OF

2.5 + MILLION

PEOPLE.

We’re singles and married couples with and without children who own or rent single-family

homes, townhouses, or mid- or high-rise apartments. We live in densely populated, racially and

ethnically rich neighborhoods. We are passionate about social welfare and equal opportunity

for all. We earn good incomes from working hard in professional and service occupations. To

provide for a stable financial future and possible home ownership, we budget well, and will

commute longer distances to support our urban lifestyle. Price-savvy, we shop for bargains at

warehouse clubs, Walmart, or Target; we’ll also pay for favorite brands if we believe the quality

merits. High-speed Internet access is available at home for basic browsing and some shopping.

Texting is cumbersome; we’d rather call to chat since we’re not enamored with social media.

Business: ±13,147

Employees: ±110,337

Population: ±246,138

Median Age: 40.70

Bachelor’s Degree: 28.3%

Graduate Degree: 15.0%

Average HH Income: $98,113

Daytime Residents: ±133,942

White Collar Workers: ±79,665


PERFECT INVESTOR OR OWNER-USER OPPORTUNITY

JOHNNY CHOILic. +1 213 613 3344

[email protected]

MATT AGUILARLic. 02112401

+1 213 613 [email protected]

© 2021 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

PERFECT INVESTOR OR OWNER-USER OPPORTUNITY

Documents

Transcript of PERFECT INVESTOR OR OWNER-USER OPPORTUNITY