13.8% 1166 FORT STREET MALL Honolulu Hawaii. Priced to sell at $1,155,000! Capitalization Rate OFFICE BUILDING FOR SALE

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1 Priced to sell at $1,155,000! Capitalization Rate 13.8%

2 EXECUTIVE SUMMARY Standard Commercial LLC, as exclusive real estate advisor, is pleased to present the opportunity to acquire the long-term leasehold interest in 1166 Fort Street Mall (Property), an excellently located Class B office property comprising approximately 18,538 square feet of leasable area in Honolulu s Central Business District on the island of Oahu, Hawaii. Currently 100% leased by Hawaii Pacific University (HPU), 1166 Fort Street Mall is part of HPU s 7-building urban downtown campus environment, which spans the north and south boundaries of the CBD and is supported by a mixed-use facility at Aloha Tower Marketplace providing student housing, meeting rooms, and a variety of restaurants. Downtown Honolulu is the financial, commercial, and governmental center of Hawaii, and host to numerous businesses with a daytime workforce population of 80,000, a permanent and transient (hotel) residential community, restaurants, visitor attractions, and entertainment options. It represents a microcosm of the overall high-performance conditions of the Hawaii real estate investment market, with limited available inventory exacerbated by the following metrics: OFFERING DETAILS Asking Price $1,155,000 Tenure Rentable Area Land Area Occupancy Zoning Leasehold 37 years of remaining term with known rents throughout 18,538 square feet 6,524 square feet 100% leased to Hawaii Pacific University BMX-4 (Central Business Mixed Use) Year Built 1932; renovated 1981 TMK Construction Masonry (CMU) There is no more land available to build on in most Oahu submarkets close to urban Honolulu, pushing users/developers to the westernmost regions of the island for alternative opportunities. Construction costs are the 3rd highest in the U.S., having increased 50% in the past 6 years, making the development of new office properties in particular, cost prohibitive. Land prices have increased along with overall asset values, and this trend is expected to continue as product scarcity and demand increase. With the confluence of an investment market strengthened by a profusion of capital at continued low interest rates, among the highest construction costs in the U.S. impeding new office development, and a finite inventory of office investment property, 1166 Fort Street Mall positions an investor to realize a higher yield than can be achieved with other product types. The Property s long-term ground lease with 37 years of remaining term and known rents for the entire duration, further reinforces the investment parameters mark@

3 KAP OFFICE BUILDING FOR SALE LVD LILIHA AALA ST H1 NUUANU AVE AUWAIOLIMU ST S KING ST N HOTEL ST N VINEYARD BLVD S SCHOOL ST MERCHANT ST N PAUAHI ST RIVER ST MAUNAKEA ST NUUANU AVE S KUKUI ST PALI HWY 21B H1 LUSITANA ST PROSPECT ST N NIMITZ HWY BETHEL ST FORT STREET MALL HONOLULU HAWAII FORT ST ST BISHOP ALAKEA ST 21B RBOR QUEEN ST ALAKEA ST RICHARD ST S KING ST S BERETANIA ST STATE CAPITOL PUNCHBOWL ST H LAUHALA ST LISBON ST 22 PROSPECT ST 22 LUNALILO ST H1 ALA MOAN SOUTH ST HALEK WARD AVE PENSACOLA ST Honolulu Central Business District n Commercial Property n Residential Property n Government Building n Queen s Medical Center n Central Business District mark@

4 DOWNTOWN CAMPUS MAP Nuuanu Ave. S. Kukui St. S. Kukui St. Kukui Plaza HPU Athletics Fort St. MP FS S Beretania St. Cathedral of Our Lady Peace Bishop St. UB Pflueger Honda Hawaiian Telcom AlakeaSt. Smith St. Smith St. Nuuanu Ave. Nuuanu Ave. Bethel St. Mark s Garage Indigo Bethel St. Fort Street Mall Dreamers Cafe Subway Hotel St. Fisher Hawaii N. King St. S. King St. Aloha Pacific FCU Nimtz Hwy. McDonald s PL FH Fort Street Mall Union Mall AIA Honolulu Walker Park Hotel St. Long s LB Ross 24 Hour Fitness Bank of Hawaii Merchant St. Queen St. T-Mobile Jamba Juice Bishop Square Bishop St. Alexander & Baldwin Building Topa Financial Center AlakeaSt. S. King St. First Hawaiian Bank Long s AlakeaSt. Pacific Guardian Center Richards St. Ala Moana Blvd. Irwin Park Bishop St. Aloha Tower Dr. Aloha Tower Dr. ATM FH Old First Hawaiian Building 1132 Bishop Street FS Fort Street Building 1166 Fort Street KK Kukui Plaza 1255 Nu uanu Ave. LB Lower Bishop Building 1060 Bishop Street UB Upper Bishop Building Finance Factors Center 1164 Bishop Street MP Model Progress Building 1188 Fort Street PL Pioneer Plaza 900 Fort Street Mall ATM Aloha Tower Market Place 1 Aloha Tower Drive HPU Shuttle Stop City Bus Stop Parking

5 Comparable Property Sales PROPERTY TENURE ZONING RENTABLE LAND SALES PRICE PSF SALE YEAR PARKING SF SF PRICE BUILDING DATE BUILT 1166 Fort Street Mall Leasehold BMX-4 18,538 6,524 N/A N/A N/A 1932 None (Subject Property) 1136 Union Mall Fee Simple BMX-4 50,081 7,642 $5,200,000 $104 10/5/ None 55 Chaplain Lane Fee Simple BMX-4 37,581 14,675 $2,900,000 $77 9/20/ None 850 Richards Street Fee Simple BMX-4 22,068 4,401 $5,500,000 $249 1/12/ None 207 South King Street Fee Simple BMX-4 18,228 7,320 $3,150,000 $143 9/30/ None 202 Merchant Street Fee Simple BMX-4 4,638 2,320 $1,460,000 $315 6/7/ None 1188 Fort Street Mall Fee Simple BMX-4 58,760 11,531 $7,000,000 $119 5/31/ None AVERAGE 31,893 7,982 $4,201,667 $168 Comparable Properties For Lease PROPERTY RENTABLE SF OCCUPANCY GROSS RENT PARKING MONTHLY UNRESERVED PARKING RATE 1166 Fort Street Mall 18, % $2.12 None N/A (Subject Property) Remington College Building 41, % $2.25 None N/A 1111 Bishop Street Arcade Building 18, % $2.21 None N/A 212 Merchant Street Tissue Genesis Tower 72, % $ Stalls $ Richards Street The Eight Fifty Building 28, % $2.09 None N/A 850 Richards Street 126 Queen Street 15, % $2.30 None N/A Union Plaza 50, % $2.38 None N/A 1136 Union Mall AVERAGE 85.9% $2.37 OAHU OFFICE MARKET AVG ASKING FULL SVC GROSS RENTS $3.10 $3.05 $3.00 $2.95 $2.90 $2.85 $2.80 $2.75 $2.70 $2.65 $2.60 $3.05 $3.00 $2.89 $2.88 $2.89 $2.84 $2.80 $2.76 $2.74 $ $ OAHU OFFICE MARKET VACANCY VS. NET ABSORPTION 300, , , % 37,898 20% 15% 10% 5% 0% -100, ,000-5% -10% -15% -300, % Net Absorption (SF) Vacancy VACANCY/ABSORPTION (add 12.77%/37,89 mark@

6 PROPERTY DESCRIPTION 1166 Fort Street Mall is located in the Central Business District on a heavily trafficked pedestrian thoroughfare which spans the north and south boundaries of the CBD. The Property is steps away from a main bus line, surrounded by other office buildings, retail and restaurant establishments, and the historic Our Lady of Peace Cathedral. The Property is generally described as a 3-story 18,538 square foot office building situated on 6,524 square feet ( acres) of BMX-4 zoned land. CONSTRUCTION DETAIL FOUNDATION Concrete footings; slab on grade 2500 psi STRUCTURAL FRAMING Structural steel FLOORS Steel decking with 3 reinforced concrete slab ROOF Cap sheet with Hydrostop acrylic membrane coating EXTERIOR WALLS Reinforced CMU CEILING HEIGHTS Ground/Mezz: ; floors 2 & 3: approx MECHANICAL/ELECTRICAL: Elevator Otis Traction HVAC Trane air-cooled scroll chillers (1) 40T, (1) 25T Plumbing 2 domestic water line; 4 waste line Electrical 725 amp, 120/208 volt, 3-phase, 4-wire power distribution system Fire / Life Safety Thorn strobe & horn/pull station automated system; Fire-Lite alarm control panel; dry standpipe & portable fire extinguishers mark@

7 FLOOR ONE MEZZANINE LEVEL AIR HANDLER MAKE: MAGIC AIRE MODEL#: HWBO-4 MEZZANINE LEVEL (EPO) GRAD LAB SCIENCE LAB ROOM FS100 ROOM FS104 ROOM FS103 ROOM FS102 ROOM FS101 FLOOR TWO AIR HANDLER MODEL#: LSL-106 AIR HANDLER MODEL#: LSL-106 AIR HANDLER MODEL#: LSL-111 ROOM FS204-B MODEL#: SCB-081A WOMEN MODEL#: SCB-081A MEN MODEL#: SCB-161A ROOM FS205 FLOOR THREE VP ROOM ROOM FS204 COPY ROOM ROOM FS206 ROOM FS201 ROOM FS310 MODEL#: SCB-081A WOMEN MODEL#: SCB-081A MEN MODEL#: SCB-161A CLASSROOM FS304 FS203 Administration ROOM FS202 STUDY AREA ROOM FS308 ROOM FS305 ROOM FS302 CONFERENCE ROOM PRESIDENT S SECRETARY PRESIDENT S ROOM CLASSROOM FS307 CLASSROOM FS303 MODEL#: SCB-161A MODEL#: SCB-161A CLASSROOM FS306 CLASSROOM FS301 MAKE: MAGIC AIRE MODEL#: HBB12-6W mark@

8 TENANCY The building is 100% leased by Hawaii Pacific University under an absolute NNN lease which originated in 1995 and is scheduled to expire on June 30, Current monthly base rent is a market competitive $1.35/sf ($25,026.30), and monthly operating expenses for 2018 are estimated to be $.77/sf ($14,274.26), for a total of $39, per month plus Hawaii general excise tax. Base rent increases of approximately 3.6% per year are established through the remainder of the lease term, and there is a 5% per year cap on increases in controllable operating expenses (excluding property tax, utility, and insurance expenses). HPU has a right of termination after June 30, 2019, exercisable with 9 months advance written notice. GROUND LEASE The ground lease has 37 years of remaining term as of March 1, 2018 with known rents for the entire term, in the following per annum amounts: March 1, 2015 February 28, 2025 $146, March 1, 2025 February 28, 2035 $188, March 1, 2035 February 28, 2045 $235, March 1, 2045 February 28, 2055 $294, FINANCIAL HIGHLIGHTS The asking price of $1,155,000 represents a 13.8% capitalization rate on 2018 NOI of $159,477 (after ground lease rent). PROPERTY HIGHLIGHTS Excellent location in the heart of Honolulu s Central Business District, steps away from a major bus line and minutes away from a number of parking facilities On a busy north-south pedestrian mall with numerous intersecting cross streets, providing multiple paths of access to the Property Restaurants, retail, and core downtown businesses immediately adjacent to or in close walking proximity Corner profile allows deliveries, loading, and unloading via Chaplain Lane, perpendicular to Fort Street Mall Long-term ground lease with known rents throughout Solid concrete construction mark@

9 Parking Options Property Distance from 1166 Fort Street Parking Co. Monthly Cost/Stall Visitor Parking Rates BISHOP PLACE 0.0 miles/ 0 min walk ABM N/A $3.25/half-hour 1132 Bishop St ALII PLACE 0.2 miles/ 4 min walk ABM N/A $.75/half-hour 1099 Alakea St CENTURY SQUARE 0.1 miles/ 1 min walk Standard N/A $3.50/half-hour 1188 Bishop St CAPITOL PLACE 0.1 miles/ 2 min walk Diamond $ $.75/half-hour 1200 Queen Emma St KUKUI PLAZA 0.2 miles/ 3 min walk Propark $ $.35/hr up to 2 hrs 1255 Nuuanu Avenue $1.50/hr thereafter MARK S GARAGE 0.3 miles/ 6 min walk Propark $ None 22 S Pauahi St n Monthly Stalls Available For Rent n Municipal Parking Garage N HOTEL ST ST MERCHANT ST N PAUAHI ST BETHEL ST FORT ST 6 BISHOP FORT STREET MALL HONOLULU HAWAII 1 ALAKEA ST NUUANU A RICHARDS ST FORT ST S KUKUI ST 4 QUEEN EMMA S S BERETANIA ST STATE CAPITOL The information contained in this package has been provided by other sources. While Standard Commercial LLC (SC) deems this information to be correct and accurate, SC or any of its officers, employees, or representatives do not make any representation or warranties - expressed or implied - as to its accuracy or completeness. Any financial projections and information provided herein are for general reference and illustrative purposes only, and are based upon assumptions related to the general economy, market conditions, competing properties, tenancy, and other conditions beyond the control of the Property Owner or SC. Any information contained herein is subject to change without prior notice mark@

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