7-eleven CORE SAN JOSE LOCATION

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1 7-eleven CORE SAN JOSE LOCATION [ REPRESENTATIVE PHOTO ] Brand new 15-year lease S&P credit rating of AA Stevens Creek Blvd, San Jose, CA

2 Investment highlights RARE 15 YEAR LEASE TO 7-ELEVEN CORPORATE AT ONE OF THE MOST HIGHLY TRAVELED INTERSECTIONS IN SAN JOSE BASCOM RD. & STEVENS CREEK BLVD. TRAFFIC COUNTS EXCEED 63K PER DAY AT THIS INTERSECTION AND INCOMES ARE OVER $105K IN A 1-MILE PRICE: $3,520,000 CAP: 3.75% RENTABLE SF...2,500 SF COMPLETION DATE...March 2018 LOT SIZE... 15,000 SF 7-Eleven is the world s #1 convenience store with sales of $89 billion in The subject property is at an exceptional location due to high traffic counts and the area s demographics, as such the tenant has signed a 15- year lease as opposed to their typical 10-year lease. This intersection feeds all traffic from this trade area into both the 280 & 880 freeways further demonstrating the core dynamics of this location. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Listing Team Contact Info John Andreini jandreini@capitalpacific.com (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. [ Project rendering ] 7-ELEVEN 2

3 Core characteristics The subject property is located in the heart of Silicon Valley, one of the wealthiest and fastest-growing areas in the United States. San Jose has a population of over 1,000,000 residents. This location is flanked by two of the three most traveled freeways in the Bay Area, and Santana Row, only 0.2 miles away, which is one of the most prominent shopping centers in the Bay Area. LEASE HIGHLIGHTS 15-year corporate lease There are four (4) five (5) year options with 10% increases every five (5) years Landlord responsible for roof & structure Tenant responsible for interior non-structural portions, utilities, maintenance of parking lot, and HVAC Corporate lease S&P Credit of AA- Tenant has license for beer & wine, which is a major driver of sales and difficult to obtain 623,000+ Residents with average incomes exceeding $115K within a 5-mile radius LOCATION HIGHLIGHTS Located at the corner of Stevens Creek Blvd and Bascom Avenue. The property has outstanding exposure and entry in from both roads. The property boasts a combined traffic count of nearly 63,000 vehicles per day. The subject property is located in between Interstate 880 and Interstate 280 providing excellent access from two major California highways. Located 1/4 mile from Santana Row & Westfield Valley Fair - one of the most productive shopping centers in the Unites States, with annual specialty retail sales of $1,200 per square foot. 22 Million shoppers visited the center in Situated in a highly dense residential market: over 256,000 people in a 3-mile radius and over 623,000 people within a 5-mile radius. The average household income exceeds $107,000 in a 3- mile radius. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ Project rendering ] 7-ELEVEN 3

4 Aerial BENEFITTING FROM TRAFFIC COUNTS IN EXCESS OF 63,000 VPD 155,000 DAILY Westfield Valley Fair Winchester Shopping Center St. Martin of Tours School SUBJECT PROPERTY 28,000 DAILY Stevens Creek Boulevard 880 HOUSING (623,259 RESIDENTS WITHIN 5 MILES) N Bascom Avenue Winchester Boulevard Santana Row 35,000 DAILY Stevens Creek Boulevard SAN FRANCISCO ELEVEN 4 206,000 DAILY

5 Income & expense PRICE $3,520,000 Capitalization Rate: 3.75% Total Rentable Area (SF): 2,500 Lot Size (SF): 15,000 STABILIZED INCOME Per Square Foot Scheduled Rent $132,000 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $132,000 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ Surrounding area retail ] 7-ELEVEN 5

6 Rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent 7-Eleven 2, $132,000 $11,000 $132, $12,100 $145, $13,310 $159,720 Option $14,641 $175,692 Option $16,105 $193,261 Option $17, $212,587 Option $19, $233,846 Totals: 2,500 $132,000 $11,000 $132,000 *STORE OPENING PROJECTED FOR APRIL 2018 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ Surrounding area retail ] 7-ELEVEN 6 [ REPRESENTATIVE PHOTO ]

7 Site plan 28,000 DAILY Stevens Creek Boulevard SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: INGRESS/EGRESS: 2,500 SF 7-ELEVEN HAS 6 DEDICATED PARKING SPACES PLUS CROSS- ACCESS PARKING WITH THE REST OF THE CENTER. THE 7-ELEVEN AND STRIP CENTER ARE ON SEPARATE PARCELS. THE BUILDINGS HAVE AN AIR GAP BETWEEN THEM. ADJACENT STRIP CENTER AVAILABLE SEPARATELY CONTACT AGENT FOR DETAILS NOT A PART Chacos 2,000 SF NOT A PART Simple Viet 1,800 SF NOT A PART NOT A PART Nick the Greek 2,000 SF 35,000 DAILY S Bascom Avenue This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. 7-ELEVEN 7

8 Tenant overview [ REPRESENTATIVE Photos ] ABOUT 7-ELEVEN 7 Eleven, Inc. is the premier name and largest chain in the convenience retail industry. Based in Irving, Texas, 7 Eleven operates, franchises or licenses more than 63,000 stores in 18 countries, including 10,900 in North America. Known for its iconic brands such as Slurpee, Big Bite and Big Gulp, 7 Eleven has expanded into high-quality salads, side dishes, cut fruit and protein boxes, as well as pizza, chicken wings, cheeseburgers and hot chicken sandwiches. 7 Eleven offers customers industry-leading private brand products under the 7-Select brand including healthy options, decadent treats and everyday favorites, at an outstanding value. Customers also count on 7 Eleven for payment services, self-service lockers and other convenient services. $89 Billion in 2016 revenues S&P Rated AA- Credit 7-ELEVEN 8 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

9 Demographics & map 7-ELEVEN LOCATION 28,000 DAILY POPULATION 1-Mile 3-Mile 5-Mile , , , , , , , , , HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $105,918 $107,048 $115,457 Median $69,167 $76,555 $83,691 REGIONAL MAP TOP EMPLOYERS IN SAN JOSE, CA County of Santa Clara Cisco Systems City of San Jose San Jose State University ebay SAN FRANCISCO 55 MILES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SAN JOSE 7-ELEVEN 9

10 San Jose, CA San Jose is third largest city in California and the 10th largest city in the United States with over one million residents. San Jose is Silicon Valley s urban core, with a vibrant blend of young professionals, high-rise housing, nightlife, sports and businesses. Companies such as Adobe, Apigee, Ernst & Young, Pinger, PwC, Oracle, Xactly, along with 150+ tech firms are thriving in downtown San Jose. San Jose companies benefit from proximity to the region s top-ranked universities, including San Jose State University, Santa Clara University, Stanford University, and University of California-Berkeley. San Jose State anchors Downtown with 30,000 students, providing a steady stream of new recruits and interns. As the largest city in the Bay Area, a growing concentration of young professionals, expert technologists and experienced managers call San Jose home. More than 37% of San Jose residents have a bachelor s degree or higher. In fact, the Today Show recently named San Jose as the Smartest City in America. San Jose offers ample housing options for all lifestyles and income-levels, from more than 2,000 new high-rise apartments downtown, to single-family homes in diverse neighborhoods near parks, schools and area amenities. San Jose offers easy access to transportation with numerous Caltrain connections, VTA Light Rail, ACE/ Amtrack, commuter rail, bikeways, freeways and future BART stations (Milpitas and Berryessa 2018). Diridon Station is the place where all public transportation services converge including VTA Light Rail, Caltrain, ACE/Amtrak, commuter rail, and Bus Rapid Transit. Zipcar, a robust Bike Share program, the free DASH shuttle to Caltrain, access to major freeways and validated parking make getting around downtown easy. The Mineta San Jose International Airport offers 220+ flights daily. [ Westfield valley fair ] LOCAL DEVELOPMENTS: Adobe Announces Major Expansion of Downtown San Jose HQ: July Adobe announced plans to expand its Downtown San José three-tower, high-rise headquarters by developing a fourth tower. While plans are still in development, the new building will have capacity for approximately 3,000 employees. The current high-rise campus supports 2,500 employees. Westfield Valley Fair: The $1.1 billion renovation will feature a new 150,000 square foot, three-level flagship Bloomingdale s, a 60,000 square foot ICON cinema and a unique line-up of international luxury retailers and iconic global brands. There will be 360+ retailers post completion and 2.1 million square feet. Estimated project completion This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7-ELEVEN 10

11 [ REPRESENTATIVE PHOTO ] John Andreini jandreini@capitalpacific.com (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. CHRIS KOSTANECKI CHRIS PETERS DAVE LUCAS ZANDY SMITH AARON SUSMAN ZEB RIPPLE RICK SANNER JOE CACCAMO JACK NAVARRA [ Copyright 2017 Capital Pacific ]