OFFICE BUILDING INVESTMENT OPPORTUNITY PALO ALTO DOWNTOWN CALIFORNIA. Actual Site

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1 OFFICE BUILDING INVESTMENT OPPORTUNITY DOWNTOWN PALO ALTO CALIFORNIA Actual Site

2 EXCLUSIVELY MARKETED BY TOM POWER EXECUTIVE VICE PRESIDENT SRS REAL ESTATE PARTNERS 100 Pine Street, Suite 1550 San Francisco, CA DL: M: CA License No JON GOLDMAN PARTNER PREMIER PROPERTIES 539 Alma Street Palo Alto, CA DL: CA License No This Off ering Memorandum has been prepared by SRS Real Estate Partners and Premier Properties and has been approved for distribution by the owner. Although eff ort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this off ering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in eff ect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Off ering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. Actual Site

3 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW PARCEL INFO INTERIOR PHOTOS AERIALS PROPERTY POTENTIAL LOCATION MAP AREA OVERVIEW CITY OVERVIEW FINANCIALS BRAND OVERVIEW DEMOGRAPHICS RENT ROLL Actual Site

4 INVESTMENT SUMMARY SRS Real Estate Partners and Premier Properties are pleased to present the rare opportunity to acquire the fee simple interest in 203 Forest Avenue in Palo Alto, California. The current tenant, Science Exchange, has occupied the building since 2011, with a below-market lease set to expire December 31, The lease is triple net. In addition to the current leasable square footage, there is potential to construct a residential unit above the current offi ce space. The subject site is located at the corner of Forest Avenue and Emerson Street in Downtown Palo Alto, two blocks south of University Avenue. Dozens of restaurants and shops are within a short walk, and Whole Foods market is one block to the south. Downtown Palo Alto is home to many venture capital firms, as well as tech companies. OFFERING PRICING: NET OPERATING INCOME: TENANT: LEASE TYPE: POTENTIAL NOI*: *AT CURRENT MARKET RENT Unpriced $406,548, annually Science Exchange NNN $558,096, annually PROPERTY SPECIFICATIONS RENTABLE AREA: LAND AREA: 4,228 SF 5,000 SF PROPERTY ADDRESS: 203 Forest Avenue, Palo Alto, CA YEAR BUILT: 1958 PARCEL NUMBER: OWNERSHIP: 203 Forest Avenue LLC 4 / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES Actual Site

5 PROPERTY OVERVIEW TRAFFIC COUNTS University Avenue and High Street:...6,270 VPD High Street and University Avenue:...4,015 VPD CA Highway 82 (El Camino Real):...35,500 VPD IMPROVEMENTS There is approximately 4,228 SF of existing building area. PARCEL Parcel Number: Acres: Square Feet: 5,000 ZONING CDCP (GF): Commercial Downtown Community Subdistrict/Pedestrian Shopping Combining District PARKING Current tenant parks five cars in driveay and three cars in alley. Buyer to determine future parking configuration. YEAR BUILT 1958 PARCEL MAP 5 / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES Actual Site

6 INTERIOR PHOTOS 6 / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES Actual Site

7 6,270 CARS PER DAY 7,149 CARS PER DAY 203 FOREST AVENUE 1-MILE AVERAGE HOUSEHOLD INCOME - $206,963 3-MILE AVERAGE HOUSEHOLD INCOME - $175,653 5-MILE AVERAGE HOUSEHOLD INCOME - $158,935

8 1-MILE AVERAGE HOUSEHOLD INCOME - $206,963 3-MILE AVERAGE HOUSEHOLD INCOME - $175,653 5-MILE AVERAGE HOUSEHOLD INCOME - $158,935 19,140 CARS PER DAY 203 FOREST AVENUE 35,500 CARS PER DAY

9 PROPERTY POTENTIAL Current ownership has explored the possibility of adding a residential unit above the existing offi ce space. Although not approved, the City of Palo Alto is considering changes to its current mixed-use ordinance that would increase the likelyhood of redevelopment approval. 9 / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA INVESTMENT SUMMARY / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES

10 SAN FRANCISCO 2017 ESTIMATED POPULATION 1 Mile... 18,403 3 Mile...149,494 5 Mile...282, AVERAGE HOUSEHOLD INCOME 1 Mile...$206,963 3 Mile...$175,653 5 Mile...$158, ESTIMATED TOTAL EMPLOYEES 1 Mile... 35,257 3 Mile...196,153 5 Mile...338, FOREST AVENUE PALO ALTO N SAN JOSE

11 AREA OVERVIEW OF PALO ALTO, CALIFORNIA Located 35 miles south of San Francisco and 14 miles north of San Jose, Palo Alto is a community of approximately 66,649 residents. Part of the San Francisco Metropolitan Bay Area and the Silicon Valley, Palo Alto is located within Santa Clara County and borders San Mateo County. The City s boundaries extend from San Francisco Bay on the east to the Skyline Ridge of the coastal mountains on the west, with Menlo Park to the north and Mountain View to the south. The City encompasses an area of approximately 26 square miles, of which one-third is open space. Palo Alto is strategically located and easily accessible to major surface routes, including Interstate 280, Highway 101, Highway 84 - the Dumbarton Bridge and Highway 92 - the Hayward-San Mateo Bridge. Air transportation is easily accessible by bus, automobile or shuttle service to San Francisco, San Jose and Oakland international airports. Within the City, commuter rail transportation is conveniently located and the Palo Alto stop is one of the most used in the Caltrain system. Alternative transportation options include numerous bike paths throughout the City and an internal shuttle service is also available. The City of Palo Alto is more than 100 years old, and is named after a majestic 1000 (not 250) year old coastal redwood tree along San Francisquito Creek, where early Spanish explorers settled. The blend of business and residential areas anchored by a vibrant downtown defines Palo Alto s unique character. A charming mixture of old and new, Palo Alto s tree-lined streets and historic buildings reflect its California heritage. At the same time, Palo Alto is recognized worldwide as a leader in cuttingedge technological development. This exciting mix of tradition and innovation makes Palo Alto an extraordinary place in which to operate a business. Unique among California cities, Palo Alto is a fullservice municipality that owns and operates its gas, electric, water, sewer, refuse and storm drainage services at very competitive rates for its customers. As befits the City known as Birthplace of the Silicon Valley, the City has developed a 31-mile dark fiber ring for ultra-fast Internet access. Complementing its exciting and innovative business community, Palo Alto s residents are highly educated, politically aware and culturally sophisticated. An abundance of local pride and numerous neighborhood organizations contribute to Palo Alto s charming historic and upscale commercial and residential areas. Characteristic of Palo Alto is the care taken to protect open space and parkland. Palo Alto has a remarkable number of City-owned parks for its size (36 at last count) and nearly one-third of its 26 square miles is open space. Palo Alto s San Francisco Bay location and natural environment off er the opportunity to enjoy bird and aquatic life in a natural habitat. Proximity to Stanford University with its cultural and educational off erings add to the vibrance, innate charm and beauty of Palo Alto. Distinctive in every way, Palo Alto off ers its business community a diverse and exciting environment in which to work and live. 11 / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA AREA OVERVIEW / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES

12 AREA OVERVIEW (CONTINUED) DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 18, , , Projected Population 19, , , Census Population 16, , ,552 Projected Annual Growth 2017 to % 0.86% 0.96% Historical Annual Growth 2010 to % 0.91% 1.05% 2017 Estimated Households 8,477 52, , Projected Households 8,873 54, , Census Households 7,982 49,712 93,792 Projected Annual Growth 2017 to % 0.82% 0.92% Historical Annual Growth 2010 to % 0.79% 0.95% 2017 Estimated White 72.30% 55.80% 55.10% 2017 Estimated Black or African American 2.00% 5.40% 3.80% 2017 Estimated Asian or Pacific Islander 18.60% 21.80% 20.30% 2017 Estimated American Indian or Native Alaskan 0.20% 0.30% 0.40% 2017 Estimated Other Races 1.70% 11.30% 15.00% 2017 Estimated Hispanic 5.70% 21.90% 29.00% 2017 Estimated Average Household Income $206,963 $175,653 $158, Estimated Median Household Income $145,003 $112,373 $101, Estimated Per Capita Income $94,446 $63,234 $57, Estimated Total Businesses 1,914 6,566 12, Estimated Total Employees 28, , , / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA AREA OVERVIEW / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES

13 RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Science Exchange 4,228 Jan Dec Current - $33,879 $8.01 $406,548 $96.16 NNN None Jan $34,895 $8.25 $418,740 $99.04 NNN PROPERTY SPECIFICATIONS Year Built: Rentable Area:...4,228 SF Land Area:...5,000 SF Address: Forest Ave, Palo ALto, CA BRAND PROFILE SCIENCE EXCHANGE Founded in 2011, Science Exchange set out to democratize access to the world s scientific expertise, in order to move the research world forward at a faster pace. Their mission, then and now, is to enable breakthrough scientific discoveries by making it easy for researchers to access the world s leading scientific service providers and most innovative scientific technologies. To date, Science Exchange has helped tens of thousands of researchers from every scientific discipline imaginable, from Agrologists through to Zymologists, move their research, and by extension humanity, forward. Company Type:... Service Provider 2018 Employees: / 203 FOREST AVENUE / PALO ALTO, CALIFORNIA RENT ROLL / SRS REAL ESTATE PARTNERS / PREMIER PROPERTIES Actual Site

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