CAMINO WEST CORPORATE PARK. AN EXCELLENT Value-Add Investment Opportunity IN CARLSBAD, CA CAPITAL MARKETS INSTITUTIONAL PROPERTIES

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1 CAMINO WEST CORPORATE PARK AN EXCELLENT Value-Add Investment Opportunity IN CARLSBAD, CA CAPITAL MARKETS INSTITUTIONAL PROPERTIES

2 THE OFFERING As Exclusive Advisor, CBRE is pleased to present qualified investors with the exceptional opportunity to acquire Camino West Corporate Park ( Camino West, CMW or the Property ), consisting of a two-story multi-tenant office building totaling 54,830 square feet. ### ADDRESS 2035 CORTE DEL NOGAL CARLSBAD, CALIFORNIA SIZE (per leases/per BOMA 2017) 54,326 SF / 54,830 SF % LOAD FACTOR 14.06% % # BLDGS/# FLOORS 1 / 2 YEAR BUILT/ RENOVATED 1991/2016 LEASED 72.0% LAND AREA PARKING RATIO (PER BOMA 2017) 4.42 Acres 4.6:1,000 usf $$$ ASKING PRICE YEAR-1 CAP RATE YEAR-2 CAP RATE MARK-TO-MARKET $10,250,000 ($189/SF) 5.3% 7.5% 8.8% $2.6 MILLION IN RECENT CAPITAL AND tenant improvements renovated lobby & common corridors landscaping new outdoor loungestyle patios/courtyards new restrooms and showers CAMINO WEST CORPORATE PARK 2

3 EXCELLENT VALUE-ADD OPPORTUNITY 72% leased with below market in-place rents NOI is projected to increase over 70% by 2021 Three vacant suites totaling 15,200 SF range from 1,900 SF to 10,500 SF Staggered lease expiration schedule with 20% rollover within the first three years 3.0% annual rental increase provide consistent NOI growth EXCELLENT MARKET FUNDAMENTALS SUPPORTING UPSIDE As the leading North San Diego office submarket, Carlsbad has accounted for 70% of North County s absorption since 2017 Solid market fundamentals continue to drive positive absorption throughout the county 9.8M SF of cumulative net absorption since 4Q09 or 12.6% of inventory San Diego s strong year-over-year office job growth of 4.2% or 13,400 jobs has contributed to the sustained market recovery 4.2% is the highest office job growth rate since 1Q13 EXISTING OPPORTUNITY/LEASING UPSIDE The existing vacant suites range from approximately 1,900 SF to 10,500 SF providing exceptional flexibility to target the most active and robust tenant segment in Carlsbad. OPPORTUNITY TO ACQUIRE BELOW REPLACEMENT COST Camino West is expected to sell at a significant discount to replacement cost estimated at $17.8 million or $325/ SF. With the diminishing supply of available land, coupled with numerous cost constrains, market rents would need to increase by 35-40% to reach acceptable replacement rents. UNIQUE ATTRIBUTES OF CAMINO WEST CORPORATE PARK Above market parking 4.6:1,000 USF On-site deli / showers and lockers Below market load factor ~14% State-of-the-art HVAC energy management systems Approx. 15,000 SF of existing vacancy providing immediate Energy Star rating of 95 leasing opportunity Ideal location within Carlsbad between Interstate 5/El Camino Real Ideal floor plates and bay depth provides flexible leasing options for Exceptional access to Interstate 5, Highway 78 small and mid-size tenants 3

4 Ideal for companies seeking a vibrant, amenity-rich location near freeways and executive HOUSING CAMINO WEST CORPORATE PARK 5 ENCINITAS SOLANA BEACH DEL MAR HEIGHTS OCEANSIDE PALOMAR AIRPORT ROAD EL CAMINO REAL CAMINO WEST CORPORATE PARK 4

5 Cost-effective alternative to neighboring submarkets such as Del Mar Heights, Encinitas, Solana Beach, and UTC CARLSBAD MARKET DRIVERS CARLSBAD AMENITIES Over 2.3 million square feet of retail ACTION SPORTS MANUFACTURING 17+ establishments 2,000+ employees 700+ patents since RESTAURANTS LIFE SCIENCE 190+ establishments 7,300+ employees 600+ patents since BANK LOCATIONS INFOCOMM TECHNOLOGY 240+ establishments 10,00+ employees 260+ patents since HOTELS 5

6 CAMINO WEST CORPORATE PARK INVESTMENT ADVISORS LOUAY ALSADEK Lic LEASING EXPERTS LARRY CAMBRA Lic FINANCING CONTACTS MARK MCGOVERN Lic HUNTER ROWE Lic ROGER CARLSON Lic SCOTT PETERSON Lic CAPITAL MARKETS OFFICE WESTERN U.S. BAY AREA Russell Ingrum Joe Moriarty Scott Prosser Mike Taquino Kyle Kovac Jack DePuy SEATTLE Tom Pehl PHOENIX Barry Gabel PORTLAND Trevor Kafoury Charles Safley SAN DIEGO Louay Alsadek Hunter Rowe DENVER Tim Richey Mike Winn Chad Flynn Jenny Knowlton LOS ANGELES Todd Tydlaska Sean Sullivan Mike Longo DEBT & STRUCTURED FINANCE Brad Zampa Michael L. Walker Brady O Donnell Bruce Francis Mark McGovern Val Achtemeier Nick Santangelo ORANGE COUNTY Anthony DeLorenzo CAPITAL MARKETS INSTITUTIONAL PROPERTIES