For Sale. Ideal Turn-Key Investment Opportunity 80 Garden Court, Monterey. 34,306 R.S.F. Building acre parcel. 146 Parking Spaces

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1 For Sale Offered at: $ 7,400,000 ($215 PRSF) Ideal Turn-Key Investment Opportunity 80 Garden Court, Monterey 34,306 R.S.F. Building 1.86 acre parcel 146 Parking Spaces Kent P. Tarman, Broker # Kent@TarmanProperties.com J. H. Tarman Co. Realtors 1714 Frankin St Ste 100 Oakland CA Tel: Fax: The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be

2 Offering Summary Executive Summary: Vacancy: Occupied: 4,919 sf 3 of 19 spaces vacant (with forthcoming LOIs) 29,387 sf 16 of 19 spaces occ d The offering includes an office building totaling 34,306 (rentable) square feet on 1.86 acres. This building is located off Garden Road, a popular thoroughfare with office and industrial tenants. It is within close proximity to Monterey Airport and a short drive to downtown Monterey. The investment property presents an excellent opportunity for repositioning, as it is a turn-key professionally managed investment and/or 1031-Upleg Exchange. This property is being sold below replacement cost., with the entire bldg. being approximately 45,240 sq. feet. Property Information: Address: 80 Garden Court Monterey, CA Parking: Lot Size: Year Built: 1983 Zoning: IR-130 Assessor s Parcel No: Spaces; includes 14 covered spaces. 33 Spaces may be effected if Monterey-Salinas Hwy is ever expanded Acres Property Type: Two + story office building With a three-story elevator Total Building Size: Roof: 34,306 Rentable Sq. Ft. 45,240 Sq Ft Entire Bldg ± 10 months old Sale Price: 2018 Pro-Forma Net Income: $7,400,000-$215 sq ft rentable $164 sq ft building $443,436. Fire Protection: Phone: Entire building is sprinklered and alarmed 4 Conduit Cap Rate: 5.99% (with new property taxes) Fiber Optics: Cable: 4 Conduit 2 Conduit The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

3 Additional Information: The building benefits from a diverse mix of long-term leased professional tenants, ranging from Medical, Health Care, & Legal, etc. There are common area restrooms on each floor, in addition: two shower rooms on first floor. The construction takes advantage of large windows and natural light, creating an attractive work environment. Significant Capital Improvements (all interiors/exteriors) and customized Tenant Improvements - completed the last 18 mos. List of Capital Expenditures of last 18 Months: - New TPO Roof by Legacy Roofing - Architecturally Approved/Permitted ADA Ramp - Additional Five ADA Parking Spots (Front Left) - New HVAC Systems Throughout - All New L.E.D. Lighting Installed Throughout - Existing Bathroom System Upgrades Throughout - Interior & Exterior Custom Professionally Painted - All Foyers: Custom SINTER-Clad Slab Stone Floors - All Baths: Custom SINTER-Clad Slab Stone Floors - All Interior Solid Core Doors with New Finishes & Custom Door Hardware Throughout - Custom Carpeting Installed Throughout - Custom Common Lighting Fixtures & Entry Directory - Current Licensed Solar Bid Proposal on File The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

4 Financial Summary 80 Garden Court - Monterey, CA Financial Summary Rentable Sq/Ft 34,306 Total Building Sq/Ft 45,240 34,306/45,240 Per Sq/Ft Price $7,400,000 $215/$164 Net Operating Income Summary Scheduled Rent (29,387 sf) 85.66% $622, $18.14 Current Vacancy (4,919 sf) 14.34% $106, $ 3.10 $1.80 per sq/ft per month Effective Gross Income 100% $728,630 $21.24 Vacancy Allowance 3% ($22,230) ($0.65) This is a projection Projected Annual Income $706,400 $20.59 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

5 Less: Operating Expenses Janitorial $24,000 $0.70 Assumes $2K per month Repairs & Maintenance $12,000 $0.35 Assumes $1K per month Other Expenses $9,000 $0.26 Assumes $500 per month Landscaping $4,800 $0.14 Assumes $400 per month Utilities $105,000 $3.06 Electricity, water, sewer, disposal Management Fees 3.5% $24,724 $0.72 Currently paying 4% Insurance $5,000 $0.15 Current & Estimated Property Taxes $78,440 $ % tax rate based on $7,400,000. Total Operating Expenses $262,964 $7.67 Leveraged Return Calculations Proposed New Loan 75% $5,550,000 $ Interest Rate 4.2% Payment (Principal & Interest) $325,685 Equity Requirement $1,850,000 $53.92 Debt Coverage Ratio 1.47 Debt Constant 5.87% Net Operating Income $443,436 Less: Total Ann. Debt Serv. ($325,685) Pre-Tax Cash Flow $117,751 Pre-Tax Leveraged Cash on Cash Return 6.37% The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

6 May 1, 2018 Rental Roll: As of Date: Unit Name Deposit Lease Type Base Rent Utilities Total Monthly Rent Square Ft. Percentage Rent per sq ft CAM sq ft Move In Lease Expiration 100 (health) $8, gross $2, $2, , % $1.65 6/1/1995 MTM server Vacant 1, % 101 Vacant (health) % 102 (health) $15, gross $5, $1, $6, , % $ (health) $3, gross $3,703 2, % $1.75 5/1/2018 4/30/2023 $3, torage (health) $ gross $ % $1.75 5/1/2018 4/30/2023 $ (health) $7, gross $9, $9, , % $1.93 7/4/ /30/ $2, gross $2, , % $1.80 5/1/ /30/2023 $2, $1, gross $1, $1, , % 10/1/2017 9/30/ Vacant 2, % 201 (health) $3, gross $3, $3, , % $ /1/ /31/ $0.00 $2, $2, , % $1.85 1/1/ /31/ $1, gross $1, $1, % $ /1/ /30/ $1, gross $1, $1, % $ /2/ /31/ $4, gross $2, $2, , % $1.70 1/1/ /31/ (Software Dvlpment) $3, gross $3, $3, , % $2.00 1/11/2017 3/31/ $2, gross $1, $1, % $1.80 5/23/2001 6/30/ (health) $5, gross $2, $2, , % $1.70 1/1/ /31/ $4, gross $5, $5, , % $1.57 8/15/2012 8/31/2019 $0.00 $68, $50, $1, $51, , % The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

7 Area Overview/ Market Overview: Monterey Peninsula The subject property is located in the city of Monterey, county of Monterey, in the state of California. The city of Monterey is located approximately 100 miles south of San Francisco and approximately 75 miles south of the San Jose/Silicon Valley areas. It is a seaside community which, when combined with neighboring cities of Del Rey Oaks, Seaside, Marina, and Carmel, is one of the largest metropolitan areas between San Francisco and Santa Barbara. Access to the area is by means of State Highways 156, 68 and 1, which connect the Monterey Peninsula to the north and south and to the Salinas Valley. The primary route between the Monterey Peninsula and Salinas is Highway 68, which runs parallel and in close proximity to the subject property. Monterey is a city of natural beauty with a rich cultural heritage. It is the oldest city in the state, founded in 1770, and was the state capital for a time. The first California Constitution was signed there in 1849, and the city was incorporated in Today, Monterey is a thriving community of 29,700 (plus 2,500 in unincorporated areas). Services, Monterey Bay Aquarium, Naval Postgraduate School, and Defense Language Institute. In Monterey and Del Rey Oaks combined, personal and professional services account for 51% of all employment. Wholesale and retail trades account for 23%; manufacturing 12%; public administration 7%; and transportation, communications, and utilities 4%. Monterey has a median income that is much higher than most of the state or the nation. The Regional Economy Monterey is located at the center of a Monterey Bay regional economy, which is poised for growth. The closure of Fort Ord has provided the infrastructure and land resources to accommodate sustained economic growth. Monterey's touristbased economy remains strong and healthy. The Monterey Bay economy of the future will be based on educational and research activities with special emphasis on marine biology and the environmental sciences. The establishment of the California State University at Monterey Bay is already making an important impact on the regional economy. The development of a new "Think and Do" center by the University of California at Fort Ord is also creating new opportunities for economic growth through partnerships with companies wishing to locate in a research-based environment. The major employers in Monterey include the City of Monterey, Community Hospital of the Monterey Peninsula, Monterey Peninsula College, CTB-McGraw Hill, Inc., Monterey Institute of International Studies, Kelly Temporary Monterey has recently been recognized as the "Language Capital of the World". Key components of Monterey's language skilled labor force include The Monterey Institute of International Studies and the Defense Language Institute. The Monterey Institute of International Studies not only provides The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

8 language training, but a wide variety of graduate level courses in international trade. A T & T's Language Translation Services are also based at Ryan Ranch in Monterey. Monterey is thus the ideal location for companies seeking to enter or expand into the global marketplace. Other institutions involved in promoting. Monterey as the Language Capital of the World include California State University at Monterey Bay, Monterey Peninsula College, CTB McGraw Hill, and the Naval Post Graduate School. Commercial Retail Opportunities Numerous opportunities for retail businesses exist in one of several commercial business districts in Monterey. Cannery Row remains a major tourist attraction and an area of opportunity for new small businesses. While the Monterey Bay Aquarium is the prime attraction, numerous restaurants, art galleries, gift stores, and a new Antiques Mall have created a wide variety of shopping opportunities. Numerous activities and special events tied to the historic Cannery Row Area and the legacy of John Steinbeck will continue to attract visitors to Cannery Row for many years to come. Del Monte Center is Monterey's traditional regional shopping center with more than 90 businesses offering a wide variety of goods and services. Recent additions to the Center include Boadies American Grill, Borders Express, Hot Topic, Pac Sun and a new Century Cinemas featuring 10 screens. Del Monte Center has recently been taken over by new owners who are anxious to work with local business owners. The new owners are also in the process of upgrading and expanding the Center. Downtown Monterey has experienced an economic renaissance, which has fostered the growth and expansion of many new businesses. The Old Monterey Market Place is one of the largest in the United States, attracting thousands of tourists and residents alike to Downtown Monterey every Tuesday afternoon. Monterey is a California Main Street City with an active business association to market and promote Downtown Monterey. Numerous activities and events are held in the Downtown on an ongoing basis. Old Monterey's historic buildings are an emerging attraction, and a delight to those who wish to learn more about Monterey's historic past. Heritage Harbor on Monterey's Downtown Waterfront provides some unique opportunities for professional or service-based businesses seeking relatively low-cost space in a prime location. Heald College has established its Monterey Campus at Heritage Harbor. Also, Fresh Cream, one of Monterey's best restaurants is located at Heritage Harbor. New Monterey is an emerging commercial area experiencing solid economic growth with an eclectic mix of new businesses. New Monterey includes Lighthouse Avenue and is located 3 blocks up the hill from Cannery Row. In 1995, New Monterey businesses established a business improvement district to more effectively market and promote New Monterey. Lighthouse Avenue serves as the primary Transportation link to Pacific Grove. New Monterey serves a healthy economic mix of both residents and tourists. North Fremont in Monterey is located east of Highway 1, adjacent to the Monterey Fairgrounds. North Fremont is a high traffic area, and an excellent location for service or retail businesses, which depend on high traffic and excellent access to the regional market. North Fremont serves a large number of tourists who attend a wide variety of activities and events at the Monterey Fairgrounds. The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

9 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider reliable. Please be advised, J. H. Tarman Co Realtors - (aka TarmanProperties) does not represent that it is accurate or complete and it should not be relied upon as such. All information contained herein is subject to change without notice.

10 80 Garden Ct: Site Plan & 146 Car Parking The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

11 Assessor s Parcel # The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

12 Satellite Map of Location Garden Road Monterey-Salinas Highway The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

13 Property Location The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

14 Additional Property Photos The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

15 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

16 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

17 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

18 The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider

19 Disclaimer The information contained herein has either been given to J. H. Tarman Co. (aka TarmanProperties) by the owner of the herein described real property or obtained from sources we consider reliable; however, we do not represent that it is accurate or complete, and it should not be relied upon as such. You should consult with your legal counsel with respect to the legal issues regarding this property, and with your tax advisor with respect to the tax issues and assumptions regarding this property as used herein or otherwise. The value of this property is dependent on numerous factors including, but not limited to, present and future rent, expenses, governmental regulations, and general economic conditions. The vacancy factor and expenses used herein are arbitrary and are not necessarily related to actual or future vacancies or expenses and may change without notice. All prospective buyers should carefully verify and evaluate information contained herein including, but not limited to, zoning, allowed uses, environmental restrictions, acreage, required permits, and/or approvals from governmental agencies, and the condition of the property and any buildings or structures located on the property. All the information contained herein, including any quoted pricing, is subject to change without notice. The information contained herein has either been given to us by the owner of the herein described real property or obtained from sources we consider