MUSEUM PARC INVESTMENT OFFERING FALL THIRD STREET SAN FRANCISCO, CALIFORNIA

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1 INVESTMENT OFFERING FALL 2018 MUSEUM PARC 330 THIRD STREET SAN FRANCISCO, CALIFORNIA FULLY LEASED OFFICE & RETAIL INVESTMENT OPPORTUNITY IN DOWNTOWN SAN FRANCISCO CBRE Capital Markets Investment Properties

2 THE OFFERING CBRE, as exclusive advisor, is pleased to present the rare opportunity to acquire a condominium interest in Museum Parc, an office and retail mixed-use center located at 330 Third Street, on the corner of 3rd and Folsom Street in the heart of downtown San Francisco (the Property or Building ). The 33,649 square foot Property, is fully-leased to six tenants, including the +/- 17,000 square foot Crunch Fitness anchor. The Property benefits from a core South of Market location, adjacent to the Financial District, surrounded by the City s newest developments and finest amenities. Thousands of nearby residential units and hotel rooms, in addition to over one million visitors to the adjacent convention center, provide excellent foot traffic for the project s retailers. This irreplaceable asset provides stable, secure income with fixed yearly rental increases and opportunity for future upside. 330 Third Street presents investors with a chance to acquire a historically successful asset in one of the strongest investment markets in the country. INVESTMENT SUMMARY OFFERING PRICE $24,000,000 IN-PLACE NOI $1,178,124 IN-PLACE CAP RATE 4.91% NOI (Year 3) $1,352,756 CAP RATE (Year 3) 5.64% PERCENTAGE LEASED 100% LEASABLE AREA 33,649 sf YEAR BUILT 1989

3 UNION SQUARE T CENTRAL SUBWAY MARKET STREET T MOSCONE CONVENTION CENTER CENTRAL SUBWAY MUSEUM PARC SALESFORCE TOWER & TRANSIT CENTER WALK SCORE 94 TRANSIT SCORE 100 BIKE SCORE 93

4 INVESTMENT HIGHLIGHTS RARE OPPORTUNITY TO ACQUIRE AN IRREPLACEABLE, DENSE URBAN INFILL PROPERTY AT AN ATTRACTIVE BELOW-MARKET BASIS IN THE CENTER OF SAN FRANCISCO COVETED CORE SAN FRANCISCO LOCATION Located at the corner of 3rd and Folsom Streets, Museum Parc is in one of the City s most central locations: Less than three blocks from Market Street, the City s public transportation spine and the Powell Street BART/MUNI Station Less than one block from the new Moscone Central Subway station, opening by The Central Subway will connect China Town and Union Square with South of Market and Mission Bay, greatly enhancing transit options for the immediate area Adjacent to the newly remodeled and expanded Moscone Convention Center, an 87-acre complex with over 700,000 sf of enclosed meeting spaces and more than one million convention attendees annually In the midst of many of San Francisco s newest commercial and residential developments and within the Central SOMA Plan area, the City s next large redevelopment zone destined to add millions of square feet of commercial space and thousands of new residential units FULLY-LEASED STABLE ASSET The Property is 100% leased, with most of the tenants having operated at the Property for many years. Over 75% of the current tenants have lease terms that go into 2023 or later, including 10+ years remaining on the Crunch Fitness lease. EXCELLENT NOI GROWTH AND NEAR-TERM UPSIDE All leases contain fixed annual rent increases, creating higher yields and a strong hedge against inflation. Leases representing 24% of the rentable area, including over 7,000 square feet of office space, expire in 2019 and are over 30% below market, providing for immediate markto-market upside.

5 UPSIDE THROUGH CONVERSION TO OFFICE SPACE The 16,954 sf second floor space, currently leased to Crunch Fitness, has excellent potential for conversion to creative office space, with high ceilings, exposed concrete and a large outdoor area. The inplace rent is approximately 50% of current market rents for office space. EXCELLENT VISIBILITY & ACCESS Museum Parc is located at the corner of 3rd and Folsom Streets, one of San Francisco s busiest intersections, with nearly 33,000 VPD on 3rd Street and over 17,000 VPD on Folsom Street. The Property is highly visible and greatly benefits from a large on-site 455-stall public parking garage (not a part of the offering). SUPPLY CONSTRAINED MARKET San Francisco remains one of the country s most supply constrained markets, with limited remaining development sites and a restrictive entitlement environment. NATION S STRONGEST REAL ESTATE MARKET The San Francisco Bay Area remains at the top of investor s wish-lists as a premier global gateway market, with continued robust demand from international capital. Market fundamentals continue to be among the strongest in the nation. ATTRACTIVE ASSUMABLE IN-PLACE DEBT The Museum Parc Retail condos are being offered with excellent, assumable in-place debt. The $12,375,000 CMBS loan features a below-market 4.14% interest rate and 6.5 years remaining on the term.

6 MUSEUM PARC 330 THIRD STREET SAN FRANCISCO, CALIFORNIA FULLY LEASED OFFICE & RETAIL INVESTMENT OPPORTUNITY IN DOWNTOWN SAN FRANCISCO INVESTMENT CONTACTS DEBT & STRUCTURED FINANCE CONTACT JOSH PETERSON First Vice President Lic DAVE TERZOLO Senior Vice President Lic ANDREW REEDER Vice President Lic MICHAEL WALKER Senior Vice President Lic CBRE, INC Broker Lic Mission Street, 46th Floor San Francisco, California CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors 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. 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_September2018