I N V E S T M E N T O F F E R I N G S P R I N G, 2 0 1 8 FULLY LEASED PREMIER RENOVATION IN SAN FRANCISCO S MISSION DISTRICT CBRE CAPITAL MARKETS INVESTMENT PROPERTIES
THE OFFERING CBRE, as exclusive advisor, is pleased to offer to qualified investors the opportunity to acquire a fee simple interest in 350 Treat Avenue (the Building or Property ), a truly unique 26,125 square foot fully renovated 100% leased building located in the heart of the Mission District, San Francisco s most vibrant neighborhood. The property is triple net (NNN) leased to a single tenant, Ouster, a leading provider of LiDAR technology for autonomous vehicles. 350 Treat has been recently renovated to the highest standards, including all new building systems and a brand-new tenant build-out, providing stable secure cash flow for years to come with minimal landlord responsibilities. PROPERTY ADDRESS 350 TREAT AVENUE Year Built / Renovated 1944 / 2017 & 2018 Total Rentable Area Overall Occupancy 100% Year One Yield 6+% Zoning Lease Term Remaining 26,125 square feet PDR-1-G Production Distribution & Repair - General +/- 4.75 years 100% LEASED STABLE AND SECURE CASH FLOW RARE SAN FRANCISCO SINGLE-TENANT TRIPLE NET LEASED ASSET PERFECTLY REPOSITIONED ASSET NEW HIGH-END RENOVATION IDEAL 1031 EXCHANGE PROPERTY OUTSTANDING MISSION DISTRICT LOCATION DELIVERED FREE AND CLEAR OF EXISTING DEBT OVER $5M IN RECENT IMPROVEMENTS 1 350 TREAT AVENUE I SAN FRANCISCO, CA
SKYLIGHTS THROUGHOUT PROVIDE EXCELLENT NATURAL LIGHT EXPOSED WOOD BEAMS EXTENSIVE NEW RENOVATION INTO PREMIER CREATIVE WORKSPACE 350 Treat Avenue has been thoroughly renovated over the past 2+ years, including brand new tenant interiors and upgraded building systems throughout. These extensive improvements will greatly minimize any additional capital expenditures and future re-leasing costs. BRAND NEW TENANT INTERIORS SOARING 25 BOW TRUSSED CEILING ALL NEW MEP SYSTEMS, UPGRADED ELECTRICAL INVESTMENT OFFERING I SPRING 2018 2
100% LEASED CENTRAL BUSINESS DISTRICT SOMA SHOWPLACE SQUARE NNN LEASE STRUCTURE 3% ANNUAL INCREASES, MINIMAL LANDLORD RESPONSIBILITIES BRAND NEW RENOVATION OVER $5,000,000 SPENT LAST THREE YEARS BY LANDLORD, EXCLUSIVE OF TENANT'S INVESTMENT INCREDIBLE YIELDS IN-PLACE RETURNS NORTH OF 6% QUALITY IMPROVEMENTS HIGHLY REUSABLE INTERIOR IMPROVEMENTS VERY MINIMAL FUTURE COSTS 3 350 TREAT AVENUE I SAN FRANCISCO, CA
MISSION BAY WALK SCORE: 98 WALKER'S PARADISE BIKE SCORE: 99 BIKER'S PARADISE TRANSIT SCORE: 90 RIDER'S PARADISE LEASED TO A LEADER IN THE AUTONOMOUS VEHICLE INDUSTRY THE MISSION HIGHLY REUSABLE INTERIOR IMPROVEMENTS MINIMAL FUTURE COSTS FUTURE DEVELOPMENT POTENTIAL SAN FRANCISCO S PREMIER SUBMARKET INVESTMENT OFFERING I SPRING 2018 4
5 350 TREAT AVENUE I SAN FRANCISCO, CA
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THE AUTONOMOUS VEHICLE INDUSTRY IS DYNAMIC & GROWING RAPIDLY Headquarters 350 Treat Ave, SF, CA Employees 40+, doubling in 2018 Recent Funding Premises www.ouster.io Leading producer of LiDAR technology, the eyes for autonomous vehicles $27M Series A Cox Enterprises 26,125 sq ft - full building Lease Term Remaining +/- 4.75 years MANUFACTURING TECHNOLOGY OUSTER COMMITTED TO THE MISSION Ouster s Mission District Urban Campus includes 350 Treat Avenue (26K sf) and adjacent 2741 16th Street (20K sf + 62-space surface parking lot) RECENT LIDAR MARKET NEWS AUTONOMOUS VEHICLE START-UP FUNDINGS 2741 16TH STREET 350 TREAT AVENUE October, 2017 - Cruise Automation (General Motors) acquires LiDAR maker Strobe October, 2017 Argi AI (Ford Motors) acquires Priceton Lightwave August, 2016 Ford and Baidu invest $150 million in Velodyne Over $2.8 Billion Raised Since 2015 Investors include Andresssen Horowitz, Draper Fisher, Y Combinator, SV Angel, Lux Capital Vast majority of funding remains in the Bay Area 7 350 TREAT AVENUE I SAN FRANCISCO, CA
MID-MARKET TENANTS MISSION/SHOWPLACE TENANTS PDR TENANTS PREMIUM PDR MARKET A new asset class has emerged in San Francisco, driven by technological advancements, venture capital funding and the high demand from premium PDR tenants seeking quality creative workspaces to recruit and retain employees 350 Treat Avenue has been renovated into bestin-class creative PDR space catering to the modern industrial workforce and advanced manufacturers autonomous cars, virtual reality, robotics, wearables, etc. CBRE s proprietary PDR database defines the Premium PDR Market as 35 buildings totaling nearly 3.5M square feet, with average annual asking rents between $45-$55 PSF Triple Net ($55 - $70 PSF IG) Premium PDR rents remain 15% - 20% below highend creative office rents, providing a significant savings for qualifying companies, helping to drive PDR demand San Francisco Premium PDR employment grew over 70% from 2010-2015, and is anticipated to grow another 30% from 2015-2020 Major Premium PDR tenants in the marketplace include Cruise (GM), Otto (Uber), Hampton Creek, Planet Labs and Invitae INVESTMENT OFFERING I SPRING 2018 8
8 MINUTE WALK TO BART VALENCIA STREET RESTAURANT ROW 9 3 5 0 T R E A T AV E N U E I S A N F R A N C I S C O, C A 8 MINUTE RIDE TO MISSION BAY / CHASE CENTER 7 MINUTE RIDE TO MID-MARKET Starbucks LESS THAN 1 MILE TO HIGHWAY 101 EASY ACCESS TO I-280
THE MISSION DISTRICT Hip, vibrant, abundant amenities and rich with culture Robust demand from tenants with executives living in the Mission who want to walk or bike to work Direct Access to Highway 101 and Interstate 280, the main connection to the Peninsula and Silicon Valley Insatiable Demand for Mission District Housing Outstanding Public Transportation Options Two BART stations, 10 Different Bus Lines The City s Best Weather and Food Scene INVESTMENT OFFERING I SPRING 2018 10
INVESTMENT CONTACTS Mark Geisreiter Executive Vice President +1 415 291 8429 mark.geisreiter@cbre.com Lic. 00889721 Josh Peterson First Vice President +1 415 291 1712 josh.peterson@cbre.com Lic. 01455490 DEBT & STRUCTURED FINANCE CONTACT Michael Walker Senior Vice President +1 415 772 0278 michael.l.walker@cbre.com Lic. 01843658 2018 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. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. PMStudio_2_2018 CBRE, INC Broker Lic. 00409987 101 California Street, 44th Floor San Francisco, California 94111 I N V E S T M E N T O F F E R I N G S P R I N G, 2 0 1 8 FULLY LEASED PREMIER RENOVATION IN SAN FRANCISCO S MISSION DISTRICT CBRE CAPITAL MARKETS INVESTMENT PROPERTIES