Multi-Tenant Commercial Building 5900 Butler Lane Scotts Valley, CA Price: $4,000,000 In Place Cap Rate: 7.43% Proforma Cap Rate: 8.

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1 AVAILABLE FOR SALE Multi-Tenant Commercial Building 5900 Butler Lane Scotts Valley, CA Price: $4,000,000 In Place Cap Rate: 7.43% Proforma Cap Rate: 8.78% This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Ow Properties/Ow Commercial has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Ow Properties/Ow Commercial has not verified, and will not verify, any of the information contained herein, nor has Ow Properties/Ow Commercial conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. William Ow (831) williamgeorgeow@gmail.com

2 INVESTMENT SUMMARY Ow Properties/Ow Commercial is pleased to present an exclusively listed multi tenant R&D building in Scotts Valley, CA. The property has a diverse mix of seasoned tenants with varying lease terms; the asset offers investors the rare opportunity to acquire a quality, stabilized asset in Santa Cruz County with an attractive existing cap rate and even greater upside potential through the lease-up of the one semi-occupied suite in the building. INVESTMENT HIGHLIGHTS Santa Cruz County Investment Opportunity - Rare opportunity for investors to acquire an attractive, multi-tenant investment property in Santa Cruz County with an attractive in-place return. New Roof - New Metacrylics roof (9/2017) with a 20 year NDL material and labor warranty. Upside Potential The investment provides investors with significant upside potential through the lease-up of the one vacant space in the building. Remaining Lease Term - The leases in place offer investors a stable, seasoned, in-place Income stream. Rent Increases - Most leases are structured with annual rent increases that offer an excellent hedge against inflation. Attractive Cap Rate The property is listed at a 7.43% cap rate with the ability to increase the cap rate to nearly 9% by leasing the one vacant space in the building. Priced Well Below Replacement Cost - At only $113/sf Convenient Access The property is easily accessible to Highway 17 and within close proximity to Scotts Valley Drive. Amenities - The property is within walking distance from numerous retail amenities along Scotts Valley Drive and nearby shopping centers. Demographics Scotts Valley is an affluent community that boasts an estimated median household income of $101,837 and an estimated population of 11,858. William Ow (831) williamgeorgeow@gmail.com

3 PROPERTY SUMMARY Purchase Price: $4,000,000 In Place Cap Rate: Proforma Cap Rate: 7.43% 8.78% Price Per Square Foot: $113 Building Square Footage 35,321 Year Built: 1988 Lot Size: Parking: 2.33 Acres 80 spaces APN: Type of Ownership: Fee Simple

4 IN PLACE AND PROFORMA INCOME AND EXPENSE SUMMARY In Place Rent Roll and Estimated Expenses Based on Historical Operating History Proforma Rent Roll Assuming Lease-up of Former Satellite Space at $1.30/sf/mo

5 PRIMARY TENANT INFORMATION SMP Technology Inc., a privately held corporation, designs and manufactures interconnection devices, power supplies and cable assemblies through partnership agreements with other OEMs. SMP also offers frequency control, and thermal management products. Headquartered in Scotts Valley, CA, SMP has been providing cost-effective solutions to standard and custom requirements to the computer, military and telecommunications markets since SMP s mission is to enhance its customers competitive position and time to market by providing solutions to their electronic packaging needs easily, quickly and economically. Founded in 2000, Areias delivers complete end-to-end design/engineering, manufacturing and prototyping solutions to technology companies around the world. Areias Systems is a contract manufacturer with a mission of providing its customers with unsurpassed service and quality. Areias main talent is to design and build complex control panels while also offering programing of automation and controls. Areias is certified as a UL508a Panel shop, organized as an ISO 9001 company, part of the Control Systems Integrators Association (CSiA), and a listed System Integrator for Phoenix Contacts. Exceedio is a full service IT provider that has been helping businesses bridge the technology gap by cost-efficiently taking on IT services and support for the past 14 years. Exceedio is a leader in IT infrastructure and remote application services. Exceedio offers its clients the highest level of IT asset management and support. Exceedio s core partners, Cisco, Dell, Microsoft, and Citrix, have enabled Exceedio to offer the latest cloud based technologies which increase productivity and reduce the total cost of IT management. William Ow (831) williamgeorgeow@gmail.com

6 Property Photos

7 Floor Plans

8 Site Map

9 Aerial Photo 5900 Butler Lane is well located within walking distance from numerous amenities and within very close proximity to Highway 17.

10 Map 5900 Butler Lane enjoys an excellent location in Scotts Valley, California. Scotts Valley is a mere 25 miles away from San Jose and it benefits from positive economic growth within Santa Cruz County as well as the explosive growth of the Silicon Valley.

11 Area Profile Scotts Valley is a thriving community that enjoys a booming high tech industry, excellent schools, and lovely residential neighborhoods. Scotts Valley offers residents a family friendly environment that is a great place to live and work. Scotts Valley is unrivaled in its ability to balance industry and community, education and experience, and improvement and beauty; it provides an optimal environment for residents to thrive in their work and in their lives. Scotts Valley is situated in northern Santa Cruz County, just a short distance from Monterey Bay and nestled in the redwoods of the upland slope of the Santa Cruz Mountains. It is approximately six miles north of Santa Cruz, 25 miles southwest of San Jose, and 68 miles south of San Francisco. Scotts Valley had an estimated population of 11,858 in 2014 and boasted an estimated median household income of $101,837. Santa Cruz County is known for its natural outdoor beauty, well educated and diverse population, vibrant arts and sports scene, academic institutions, and interconnected network of tourism, education, agriculture, research, and technology. Scotts Valley, Capitola, Santa Cruz, Watsonville, and unincorporated land make up Santa Cruz County. Santa Cruz County benefits from a temperate coastal climate and easy access to multiple major airports: San Jose International (30 miles), San Francisco International (62 miles), Oakland International (60 miles), Monterey Peninsula Airport (43 miles), and Watsonville Municipal Airport (14 miles). Santa Cruz County had an estimated population of 271,804 in 2014 and its median household income was estimated to be $66,519.