02 HOWARD AVENUE, AND 360 AND 390 BAYPORT AVENUE SAN CARLOS DOWNTOWN SAN CARLOS INVESTMENT OPPORTUNITY EXECUTIVE SUMMARY
THE OFFERING Cushman & Wakefield, as exclusive advisor, is pleased to present the exciting opportunity to acquire the fee simple interest in the San Carlos Technology Park, located at 02 Howard Avenue, and 360 and 390 Bayport Avenue, (the Property ). The 45,800 square foot R&D/Flex project comprised of three buildings is situated on 2.7 acres. The Property is fully leased at significantly below market rate rents. Situated in the GCI: General Commercial/Industrial zoning district, the area is intended to accommodate all office, R&D, industrial, and retail uses. This district provides a maximum 2.0 FAR (89,398 sq. ft.) offering flexibility of non-residential uses. Located within a mile of the San Carlos Caltrain station, the Property is also a short walk to Laurel Street s retail amenities. Several large developments within close proximity of the Property have recently been approved, including a 560,000 square foot office/life science project and two hotels. Developers are seeking entitlements for additional office/life science projects in the area as well. Asking Price: $22,500,000 Cap Rate: 5.45% SAN CARLOS TECHNOLOGY PARK 02 Howard Avenue, and 360 and 390 Bayport Avenue Cushman & Wakefield Copyright 205. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
02 Howard Avenue, and 360 and 390 Bayport Avenue INVESTMENT HIGHLIGHTS Strong immediate cash flow from NNN leases with scheduled rental escalations 00% leased with staggered roll Future upside through bringing in-place leases to market, adaptive re-use, or redevelopment 2.0 maximum FAR (89,398 sq. ft.) ±75,000 square feet of R&D/flex tenancy to be displaced by a new office development less than a half mile away Extraordinary 2.7% vacancy rate in San Carlos Increasing rental rates due to demand outpacing supply A short walk to abundant retail amenities throughout Downtown San Carlos Located within a mile of the San Carlos Caltrain Station Direct access to US Highway 0 Cushman & Wakefield Copyright 205. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
Howard Avenue SAN CARLOS TECHNOLOGY PARK 02 Howard Avenue, and 360 and 390 Bayport Avenue 390 BAYPORT AVE 5,800 SF 360 BAYPORT AVE 20,000 SF 02 HOWARD AVE 20,000 SF Bayport Avenue PROPERTY OVERVIEW 02 Howard Avenue 360 Bayport Avenue 390 Bayport Avenue 45,800 Square Feet 2.7 Acres Land Area Redevelopment 2.0 FAR 89,398 SF 00% Occupancy 79 Parking Spaces.72 per,000 SF 3 Minute Drive Laurel Street Amenities
02 Howard Avenue, and 360 and 390 Bayport Avenue
02 Howard Avenue, and 360 and 390 Bayport Avenue New Palo Alto Medical Foundation Development Marriot Residence Inn Under Construction New Honda Auto Dealership Under Construction Approved 560,000 SF Office/Life Science Development 0 Future Office/Life Science Campus Approved Hilton Hotel El Camino Real DOWNTOWN SAN CARLOS Howard Avenue SAN CARLOS TECH PARK
02 Howard Avenue, and 360 and 390 Bayport Avenue HEALTHY R&D MARKET FUNDAMENTALS Market Tracker Overall Vacancy Arrows = 2-Month Forecast 3.4% Net Absorption -97K Under Construction.6 M Asking Rent $3.60 NNN San Mateo County R&D/Flex Highlights The San Mateo County R&D market closed Q2 207 at 3.4% vacancy, 00 basis points below its peak of 4.4% during the great recession. In addition to low availability, much of the product base is growing older and functionally obsolete. Many older buildings are being removed from the market as development goes toward lab, office, and residential uses. Over the last two years, 85% of all rentable space in newly constructed buildings was pre-leased. With supply not able to meet demand, prices continue to rise higher and higher. R&D asking rates average $3.60 NNN, and 30% increase from this time last year. Life science users are flocking to the Peninsula, taking any R&D space they can find. San Carlos Vacancy & Average Asking Rate Trend 4% $4.00 2% 2.8% 2.4% $3.50 0% $3.00 8% 7.9% $2.50 6% 4% 2% 4.% 3.0% 3.4% 3.7% 2.3%.0%.6% 6.2% 5.% 2.7% $2.00 $.50 $.00 $0.50 0% Q2-4 Q3-4 Q4-4 Q-5 Q2-5 Q3-5 Q4-5 Q-6 Q2-6 Q3-6 Q4-6 Q-7 Q2-7 $0.00 Vacancy Avg. Asking Rate NNN *Rental rates reflect asking $psf/month converted to Triple Net
02 Howard Avenue, and 360 and 390 Bayport Avenue LOCAL MAPS 0 San Francisco 280 0 Brisbane 380 Millbrae 280 80 San Mateo Belmont SAN CARLOS TECH PARK 24 24 24 Oakland 92 92 92 0 880 San Carlos Menlo Park 580 Palo Alto Mountain View 280 680 Hayward Newark Cupertino Sunnyvale Fremont 0 85 85 San Ramon 880 237 Santa Clara 880 Dublin 580 Livermore Pleasanton 680 680 Campbell Los Gatos Milpitas San Jose 0 82 San Carlos Ave Holly St El Camino Real Laurel St DOWNTOWN SAN CARLOS 0 Bayport Ave Industrial Rd Brittan Ave Howard Ave SAN CARLOS TECH PARK 82 7 7
02 Howard Avenue, and 360 and 390 Bayport Avenue INVESTMENT ADVISORS Tucker Beim Managing Director + 650 320 0206 tucker.beim@cushwake.com Lic #0326 Tim Howarth Senior Director + 650 320 0220 tim.howarth@cushwake.com Lic #0086863 MARKET ADVISORS John McLellan, Colliers Vice President + 650 486 2223 john.mclellan@colliers.com Lic #0869489 Derik Benson Managing Director + 408 436 3670 derik.benson@cushwake.com Lic #082654 950 University Avenue, Suite 220 E. Palo Alto, CA 94303 main + 650 852 200 fax + 650 856 098 cushmanwakefield.com