E X E C U T I V E S U M M A R Y KEARNY Real Estate Company CAPITAL MARKETS INSTITUTIONAL PROPERTIES
INVESTMENT ACCESS/LOCATION CORE TENANCY Well-located institutional-quality office campus in the heart of a rapidly evolving and vibrant submarket that is in an urbanization renaissance. 5 minutes to Downtown San Diego and the International Airport 10 minutes to La Jolla and UTC 15 minutes to Del Mar and other coastal communities/executive housing 25 minutes to the US/Mexico border Superior public transportation access with two trolley stops within 0.25 miles and direct access to the five freeways: 8 163 805 5 15 92% occupancy with 55% of the project leased to investment-grade tenants with an average-weighted lease term remaining of 9.5 years Diversified tenant roster (education, government, engineering, tech, healthcare, legal, etc.) ± 6.0 million square feet of retail amenities in Mission Valley ± 7,000 hotel rooms
HIGHLIGHTS MISSION CENTER OFFICE PARK STRENGTHS Flexible and efficient floor plates with excellent window-line and bay depths that work extraordinarily well for Mission Valley s typical multi-tenant user base Since 3Q 2015, MCOP has had incredible momentum: o o Over 20% increase in lease rate Over 100,000 sq. ft. of tenants have either renewed or expanded The expansive 6.67-acre site sits in the heart of the city s Mission Valley Community Plan Update and may ultimately become one of the most sought after redevelopment sites in the valley.
As exclusive advisor, CBRE is pleased to present the opportunity to acquire Mission Center Office Park ( Mission Center, MCOP or the Property ), a three-building office campus totaling 183,692 square feet. Built in the mid- 1970s and recently revitalized with nearly $7 million in capital improvements, Mission Center is an exceptional core-plus investment opportunity located in the heart of Mission Valley, San Diego s most urbanized suburban submarket. Ideally positioned immediately off Interstate 8 with superior public transportation access, MCOP is located in the middle of one of the highest concentrations of retail amenities and multifamily units in the county. Project Summary Currently 92% leased to a diverse tenant roster with approximately eight years of weightedaverage lease term remaining, Mission Center Office Park provides the opportunity to capitalize secured near-term cash flow and the potential to greatly benefit from the continued urbanization of Mission Valley. Mission Center is offered for sale without an asking price and no debt to assume. Building Addresses Submarket Project Size No. of Bldgs. / Floors % Leased Rollover Year Built Site Area Parking Ratio Est. Replacement Cost Debt to Assume 5333 5353 Mission Center Road & 7947 Mission Center Court San Diego, CA 92108 Mission Valley 183,692 SF Two three-story / One two-story 92% 32% during first five years 1974-1975 (Renovated 2015-2017) 6.67 Acres 3.8:1,000 RSF / 4.4:1,000 USF $71.8 Million ($391/SF) None 4 MISSION CENTER Executive Summary
CAPITAL IMPROVEMENTS $7.0 M invested since Kearny Real Estate s acquisition in 2015 LONG-TERM STABILITY ~8 YEARS weighted average lease term remaining LOCATION WALKABLE AMENITIES Located in the HEART of San Diego County s most accessible and established mixed-use submarket Executive Summary MISSION CENTER 5
A listing from CBRE Capital Markets Office West, led by: INVESTMENT ADVISORS DEBT & STRUCTURED FINANCE LEASING EXPERTS LOUAY ALSADEK Lic. 01078492 +1 858 546 2600 louay.alsadek@cbre.com MARK MCGOVERN Lic. 00973219 +1 858 546 4662 mark.mcgovern@cbre.com RICHARD GONOR Lic. 01142178 1 858 410 1243 richard.gonor@am.jll.com HUNTER ROWE Lic. 01903236 +1 858 646 4764 hunter.rowe@cbre.com SCOTT PETERSON Lic. 01383970 +1 858 546 4607 scott.peterson@cbre.com TONY RUSSELL, SIOR Lic. 01275372 + 1 858 410 1213 tony.russell@am.jll.com CAPITAL MARKETS OFFICE WESTERN U.S. Denver Tim Richey Mike Winn Chad Flynn Los Angeles Todd Tydlaska Sean Sullivan Mike Longo Orange County Anthony Delorenzo Phoenix Barry Gabel Portland Trevor Kaforury Charles Safley San Diego Louay Alsadek Hunter Rowe San Francisco Russell Ingrum Tyler Meyerdirk Seth Mckinnon Seattle Tom Pehl Lou Senini Silicon Valley Joe Moriarty Scott Prosser Jack Depuy Debt & Structured Finance Brad Zampa Brady O Donnell Bruce Francis Mark McGovern Scott Peterson Michael L. Walker Val Achtemeier CAPITAL MARKETS INSTITUTIONAL PROPERTIES 2017 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. KEARNY Real Estate Company