MILLICH DRIVE OFFERING MEMORANDUM WEST VALLEY JEWEL BOX OFFICE. Capital Markets Investment Properties

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1 5 9 5 MILLICH DRIVE C A M P B E L L C A OFFERING MEMORANDUM WEST VALLEY JEWEL BOX OFFICE Capital Markets Investment Properties

2 TO CUPERTINO 12 MINUTES GAS HASH HOUSE Tapsilog NEGEEN PERSIAN Bistro TO LOS GATOS 13 MINUTES TO DOWNTOWN CAMPBELL 8 MINUTES HAMILTON AVE Frozen Yogurt SAN TOMAS EXPWY TO DOWNTOWN SAN JOSE 12 MINUTES TO WILLOW GLEN 11 MINUTES 2

3 THE OFFERING Offered for sale by CBRE is a ±24,281 SF, fully rehabbed multi-tenant jewel box office building in the heart the West Valley. This represents the opportunity for a investor or owner-user to capture a piece of this high-demand market for self-use or investment. TO SANTA CLARA 13 MINUTES THE PROJECT ADDRESS 595 Millich Drive, Campbell, CA PARCEL # TYPE BUILDING SIZE LAND SIZE Office ±24,281 SF 1.07 acres MILLICH DRIVE C A M P B E L L C A # OF BUILDINGS 1 STORIES 2 YEAR BUILT 1978 YEAR RENOVATED 2018 # OF TENANTS 3 # OF SUITES 6 OCCUPANCY PERCENTAGE 77% PARKING 94 spaces, 3.87/1,000 3

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5 HIGHLIGHTS FULLY RENOVATED: The project is fully renovated, including new building systems, exterior finishes, ADA compliance, and all but one suite modernized. This offers a new owner a highly efficient and attractive asset with no imminent capital expenditures. LOCATION & IDENTITY: The project sits in the West Valley area of Silicon Valley where many companies choose to call home due to the abundant and convenient amenities, proximity to corporate decision makers, and the growing priority of commute efficiency. The site has excellent visibility from San Tomas Expressway which is a heavily traveled artery between the affluent areas to the west and the impacted 101 corridor to the east. MARKET POSITIONING: This project is well positioned to capitalize upon the large gap between the Class A and Class B market rental rates. Very little of the West Valley Office market has been modernized and what has been is almost exclusively Class A product. This building has Class A finishes and feel with the convenience of Class B occupancy. DIVERSITY OF RENT ROLL: Like the West Valley market, the rent roll in the project is diverse and includes auto-tech, insurance services, and theraputicmedical. This provides a future owner with sector diversification and a market full of tenants in a variety of industries. OCCUPANCY FLEXIBILITY: The seller has left vacant space available to an owner user which is currently over-subscribed with tenant demand. Additionally there is ±3,557 SF rolling in 2019 on the ground floor allowing a new owner to control up to ±9,227 SF (38%) of the building within 18 months of acquisition, or for an investor to push rents dramatically on this fully renovated product. 5

6 property The 595 MILLICH building is an approximately ±24,281 SF. multi-tenant office building on a ±1.07 acre parcel in Campbell. It has been fully renovated with Class A exterior, atrium, and common area finishes. The property has signage exposure to the heavily traveled San Tomas Expressway. PROJECT 595 Millich ADDRESS 595 Millich Drive Campbell, CA OWNERSHIP TYPE Fee Simple SUBMARKET West Valley, Campbell PARCEL NUMBER TYPE OF PROPERTY Office (100%) BUILDING SIZE ±24,281 SF LAND SIZE 1.07 acres # OF BUILDINGS 1 STORIES 2 # OF TENANTS 3 # OF SUITES 6 YEAR BUILT 1978 YEAR RENOVATED 2018 ELEVATOR New WALK SCORE Very Walkable (72) TRANSIT SCORE Some Transit (33) CONSTRUCTION WALLS ROOF CEILING HEIGHT 9 SPRINKLERS HVAC USE AND DEVELOPMENT CURRENT ZONING Wood Frame TPO 60 mil Energy Star white single-ply membrane Yes CURRENT FAR 0.51 GENERAL PLAN 15 new units totaling 60 tons Planned Development General Commercial 6

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8 property FULLY RENOVATED The exterior of the project has been fully renovated with Class A finishes, including but not limited to, new TPO Roof overlay, HVAC, smooth stucco with ledger stone & aluminium reveals, elevator, structural steel stairs, stainless steel railings, new restroom layouts & finishes, landscaping, water management system, freshly sealed parking lot, and more. HIGHLY EFFICIENT The building s efficiency is dramatically improved after the renovation thanks to new HVAC and LED lighting. Electrical utility costs have dropped 25%-35%, giving this building an economic advantage over the majority of the competition. SPACE CONTROL The seller has left vacant space available to an owner user which is currently over-subscribed with tenant demand. Additionally there is ±3,557 SF rolling in 2019 on the ground floor allowing a new owner to control up to ±9,227 SF (38%) of the building within 18 months of acquisition, or for an investor to push rents dramatically on this fully renovated product. RENOVATED INTERIORS 85.4 percent of the building has new interior finishes including new LED interior lighting with motion sensors, modernized kitchens, 9 finished ceilings, full height wood veneer doors with new clear aluminum door frames and sidelights. 8

9 property PROPERTY OVERVIEW OPEN ATRIUM LAYOUT This layout is found in a very small segment of Silicon Valley buildings because it reduces site density. However, it allows for exceptionally high levels of natural light on both the first and second floors since the light enters from two directions into a relatively shallow bay depth. ADA COMPLIANCE The property is now fully ADA compliant. Some of the work required to comply with the American Disabilities Act was the installation of the new elevator, enlarged and reconfigured restrooms and new handicapped parking stalls with reworked path of travel to and from the building entrances. This allows a new owner the opportunity to make future building modifications without the fear of triggering code compliance issues which have already been addressed by the current ownership. WALKABLE LOCATION The site has a walking score of 77 which indicates it is highly walkable. There are several dining and convenience options within a short walk across San Tomas Expwy, including a Starbucks, Safeway and Gas, Citibank, Gold s Gym and restaurants. IDENTITY / VISIBILITY The site/building benefits from visbility by traffic on San Thomas which is a heavily traveled artery between the Campbell/Los Gatos area and Santa Clara. The building can be seen from North and South bound traffic and the opportunity exists to place signage on the building to promote corporate identity. 9

10 NEW ROOF A new energy star rated, white, mechanically attached, 60mil TPO roof overlay membrane was recently installed with new flashing, counterflashing, and boots at each penetration. The new roof comes with a 15 year manufacturer s warranty and 5-year workmanship warranty. A new mansard roof and new fascia BIKE LOCKERS (installed after photo) PARKING LOT 10 The entire parking lot was slurry sealed after select areas of asphalt were removed and replaced. The lot has been re-striped to include ADA path of travel demarcations and handicapped stalls. Solar timed LED parking lot lights have been installed.

11 NEW HVAC All HVAC units on the roof have been replaced with new Bryant Highefficiency, energy saving, low NOx with vibration isolated compressors. There are a total of 14 package units including (3) 5 ton units; (9) 4 ton units; (2) 3 ton units. There is an additional 3 ton split system serving the second floor server room. The estimated efficiency gain for these new units is 25%-35%. NEW EXTERIOR FINISHES The majority of the exterior surfaces are new. This includes new tile on the walkways, smooth stucco with aluminum reveals, ledgerstone, and a steel awning over the front door. 11

12 RENOVATION New SECURITY SYSTEM A new security system has been installed at the common area entrances of the building. Access comes via key fob and/or key pad. Security cameras monitor ongoing activity on the premises. NEW ELEVATOR The building renovation includes a new Phoenix ADA compliant hydraulic elevator model #SLF with 3500 LB capacity. NEW STEEL WORK New steel and concrete staircases have been installed within the atrium area. The handrails of the staircases as well as the guardrails around the upper walkway are stainless steel and add greatly to the aesthetic of the areas. 12 NEW Landscaping All landscaping around the exterior of the building and in the atrium has been replaced with new drought tolerant landscaping. Additionally, there are timed and zoned sprinklers to optimize water usage and a beautiful water feature which adds to the peaceful look and feel of the atrium.

13 RENOVATION kitchens All kitchens and kitchenettes are modern with top of the line finishes including quartz countertops, Wilsonart laminate cabinetry, plank LVT with a vintage reclaimed oak visual. NEW INTERIOR FINISHES Over 85% of the interior space has been fully renovated including new doors, aluminum frames with sidelights, carpet, paint, kitchens, and motion sensing LED lighting. SECOND FLOOR The entire second floor is occupied by Arteris. Their space includes a full kitchen as well as a separate kitchenette, all new finishes, an en suite shower, and IT room with dedicated air. Reconfigured and Updated Restrooms The common area restrooms (upstairs and downstairs) were upgraded and reconfigured for ADA compliance. All new finishes were installed, including ceramic tile, partitions, lighting and fixtures. 13

14 TRANSPORTATION CALTRAIN TO PALO ALTO AND SAN FRANCISCO DIRIDON STATION 880 WEST SAN CARLOS 280 LAWRENCE EXPWY SARATOGA AVE WIlliams rd SAN TOMAS EXPWY HAMILTON AVE PAYNE AVE WINCHESTER AVE LIGHT RAIL BASCOM AVE BASCOM STATION SOUTHWEST EXPY FRUITDALE STATION RACE STATION MERIDIAN AVE 87 CALTRAIN almaden rd CAMPBELL AVE MILLICH DRIVE winchester STATION DOWNTOWN CAMPBELL STATION S. BASCOM AVE LEIGH AVE curtner AVE Quito Rd 85 WINCHESTER AVE hillsdale AVE 14

15 REGIONAL HIGHWAYS Campbell is located in the heart of Silicon Valley within the region s comprehensive freeway network, with easy access to Highways 17 and 880 and connections to Highways 85, 101, 280, and 680 SAN RAFAEL MILL VALLEY CONCORD RICHMOND WALNUT CREEK BERKELEY MACARTHUR PITTSBURG PUBLIC TRANSIT Campbell is served by three light rail stations on the Mountain View-Winchester line including Hamilton Station, Downtown Campbell Station, and the line s terminus at Winchester Station. The light rail connects at Diridon, Mountain View and Tamien stations to Caltrain which provides commuter services between Gilroy and San Francisco. EMBARCADERO SAN FRANCISCO DALY CITY DALY CITY OAKLAND W. OAKLAND COLISEUM SAN LEANDRO OAKLAND BAY FAIR HAYWARD DUBLIN AIR TRAVEL Three major airports are accessible from Campbell, including Mineta San Jose International Airport which is a 15 minute drive from 595 Millich Drive. The San Francisco and Oakland International Airports are 41 and 48 minutes away respectively from the Property. SAN BRUNO UNION CITY millbrae SAN MATEO FREMONT FREMONT REDWOOD CITY PALO ALTO MILPITAS MILPITAS MAP LEGEND EXISTING BART LINES CALTRAIN LIGHT RAIL FUTURE BART LINE EXISTING BART STOPS FUTURE BART LINES SUNNYVALE SANTA CLARA DIRIDON CUPERTINO CAMPBELL LOS GATOS MILLICH DRIVE BERRYESSA SAN JOSE ALUM ROCK 15

16 A BETTER 101 Downtown Mountain View From: Willow Glen Los Gatos Saratoga Almaden Valley Santa Clara Square From: Willow Glen Los Gatos Saratoga Almaden Valley The 101 corridor is the area of highest industry activity and greatest traffic congestions. People living in the West Valley gain massive commute efficiency by locating their businesses at 595 Millich Millich From: Willow Glen 9-22 Los Gatos Saratoga Almaden Valley MILLICH DRIVE C A M P B E L L C A

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18 NEARBY Campbell s Downtown district is a vibrant shopping and entertainment district featuring many historical landmarks and over 100 shops, services and restaurants. It has a pair of light rail stops which are on either side of downtown and provide access within 10 minutes to downtown San Jose. The Campbell Community Center is located across Winchester Boulevard from downtown Campbell. The center features a theatre, athletic fields, and leasable classrooms and office space. Another major attraction in Campbell is the Pruneyard Shopping Center, a sprawling open-air shopping center featuring 255,000 square feet of shops and restaurants and a movie theater, along with 360,000 square feet high rise office buildings. The center is currently undergoing a major renovation. Additionally, neighboring Los Gatos offers its own downtown district with countless restaurants, shops and entertainment amenities. WESTGATE MALL Nordstrom Rack Old Navy Game Stop Party City Walmart Mens Wearhouse Skechers J. Crew Target The Blue Door Veggie Grill Subway Gong Cha Buffalo Wild Wings EL PASEO AMC REI Ulta Lucky s The Melt Peet s Jamba Juice Red Robin Weight Watchers Massage Envy Pizza My Heart Tilly s European Wax Hallmark Chevron Gas Bank 18

19 NEARBY Kohl s CitiBank Shell Gas Payless Shoes Little Tree Intl. Montessori Home Consignment City Pizza Gold s Gym Starbucks Petsmart Safeway & Gas Hash House Tapsilog Bistro Negeen New Jersey s Cheese Steaks & Sports Bar MILLICH DRIVE Fry s Electronics Panera Bread Bed Bath & Beyond Staples Shell Gas Starbucks Mountain Mike s Pizza Mama Mia s T-Mobile Coming Soon: In-N-Out DOWNTOWN Aqui Stacks Psycho Donuts Campbell Brewing Co. El Guapos Starbucks Opa Blue Line PIzza Tigelleria Organic Boiler Maker Naschmark Orchard Valley Coffee Blue Sky PRUNEYARD Pacific Catch Rock Bottom Restaurant & Brewery City Orchard Kitchen Outback Steakhouse Trader Joe s Coffee Society 19

20 5 9 5 MILLICH DRIVE C A M P B E L L C A LISTING TEAM CONTACTS CHARLES STROUSS SENIOR VICE PRESIDENT Investment Properties Capital Markets charles.strouss@cbre.com LIC NICHOLAS A. WHITSTONE FIRST VICE PRESIDENT Investment Properties Capital Markets nick.whitstone@cbre.com LIC MARK CHRISTIERSON (MARKET LEASING EXPERT) SENIOR VICE PRESIDENT (O) (C) LIC CBRE, INC. 225 West Santa Clara Street, 12th Floor San Jose, CA 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. 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_August 2017