43455...capabilities and exceptional talent of emd millipore and sigma-aldrich to create a global...

43455B US I N ES S PA R K D R I V E

Single Tenant Net Leased Investment OpportunityTemecula, CA

OFFERING MEMORANDUM

2 COLLIERS INTERNATIONAL

THE OFFERING

OfferingSummary 4

OfferingHighlights 5

Property Details 6

Lease Details 7

Parcel Map 10

MARKET OVERVIEW

Temecula Industrial Market Overview 12

TENANT PROFILE

Millipore Sigma 17

PAUL LAFRENZSenior Vice PresidentLic. No. 00817354+1 858 677 5344paul.lafrenz@colliers.com

4350 La Jolla Village Dr., Ste. 500San Diego, CA 92122

Lic. No. 01908588+1 858 455 1515 MAINcolliers.com/sandiego

*Please do not disturb tenant.Theinformationcontainedherein,includinganproformaincomeandexpenseinformation(collectively,the“Information”)isbaseduponassumptionandprojectionsandhasbeencompiledormodeledfromsourcesweconsiderreliableandisbasedonthebestavailableinformationatthetimethebrochurewasissued.However,theInformationissubjecttochangeandisnotguaranteedastocompletenessoraccuracy.WhilewehavenoreasontobelievethattheInformationsetforthinthisbrochure,underwriting,cashflows,valuation,andotherfinancialinformation(oranyInformationthatissubsequentlyprovidedormadeavailabletoyou)containsanymaterialinaccuracies,norepresentationsorwarranties,expressorimplied,aremadewithrespecttotheaccuracyorcompletenessoftheInformation.IndependentestimatesofproformaincomeandexpensesshouldbedevelopedbeforeanydecisionismadeonwhethertoinvestintheProperty.Summariesofanydocumentsarenotintendedtobecomprehensiveorall-inclusive,butratheronlyoutlinesomeoftheprovisionscontainedthereinandarequalifiedintheirentiretybytheactualdocumenttowhichtheyrelate.YouunderstandthattheInformationisconfidentialandisfurnishedsolelyforthepurposeofyourreviewinconnectionwithapotentialinvestmentintheProperty.YoufurtherunderstandthattheInformationisnottobeusedforanypurposeormadeavailabletoanyotherpersonwithoutexpresswrittenconsentofColliersInternational.Thisofferingissubjecttopriorplacementandwithdrawal,cancellation,ormodificationwithoutnotice.ThispublicationisthecopyrightedpropertyofColliersInternationaland/oritslicensor(s).©2018.Allrightsreserved.

TABLE OF CONTENTS

4 COLLIERS INTERNATIONAL 5THE OFFERING

THE OFFERINGOFFERINGHIGHLIGHTS

> Price: $9,137,000

> CAP Rate: 5.5%

> Millipore Sigma, a Merck KGaA Darmstadt, Germany Company, a worldwide credit Tenant

>RecentleaseextensionthroughDecember31,2025

>LowTemeculaindustrial/flexvacancyof2.0%Colliers International,asexclusiveadvisortoSeller, ispleasedtopresenttheopportunitytoacquire43455 Business Park Drive, asingle tenantnet leased industrial/R&D investment located inTemecula,California.Thisapproximately44,317squarefootpropertyisleasedtoMilliporeSigma,aMerck&Companywhollyownedsubsidiary,onaleaseextensionthroughDecember31,2025.

6 COLLIERS INTERNATIONAL 7THE OFFERING

PROPERTYDETAILS

LEASEDETAILS

Occupancy: ThebuildingisleasedtoMilliporeSigmawithaleaseexpirationdateofDecember31,2025

Rent: $0.95/SF/monthNNN

Rent Increases: 3%peryearoverthepreviousyearsrent

Square Footage: Approximately44,317SF

Lease Term: Decemeber31,2025

NOI: $502,512Access/Visibility: AccesstothePropertyisprovidedviaBusinessParkDrive.

Land Area: ±2.45 acres or 106,722 SF

Parking: 118 spaces

Zoning: LI&SC

Occupancy: ThebuildingisleasedtoMilliporeSigma,aMerckKGaADarmstadtGermanyCompany

Address: 43455 Business Park Drive, Temecula, CA 92590

Location:

43455 Business Park Drive is located on the north side of BusinessPark Drive, one parcel northwest of Rancho California Road, and lessthan0.5miles from Interstate 15.Thebuildingsitsonthewestsideofthe Property with the asphalt paved parking lot on the east side. Theparking lot is triangular shaped and adjacent and west of Diaz Road.

Year Built: 1999

APN: 921-020-091-6

8 COLLIERS INTERNATIONAL 9THE OFFERING

RANCHO CAL IFORN IA ROAD

BUSINESS PARK DRIVE

DIAZ ROA

D

Temecula Town Center

Old Town Temecula

43455BUSINESSPARK DR

YNEZ ROAD

CONSTRUCTION COMPONENTS

> FoundationConcreteslabongrade

> FloorsCarpetinprivateofficeareas,carpetandresilienttileincommonareasandopenofficespace,vinylortileinrestroomsandkitchen,andconcreteinthewarehouse

> Stories Two

> Exterior Walls Concretetilt-up

> HVACPackagedHVACunitsontheroof

INTERIOR COMPONENTS

> CeilingsCombinationofhungacousticalceilingtilesandopentotheroof-deck

> Clear HeightTheclearheightisapproximately20-22feet

> RestroomsTherearetwosetsofrestroomsonthefirstfloorandonesetonthesecondfloor

> LightingFlourescentlightingfixturesintheofficeareasandceilinghungfixturesinthewarehousearea

> Interior PartitionsPainted,textureddrywall.Warehouseincludesexposeddrywall

> Loading Docks/Doors 2docks,1hasbeenfilledin.2gradedoors

11MARKET OVERVIEW10 COLLIERS INTERNATIONAL

© 2012-2017 Digital Map Products. All rights reserved. 1

185 feet

PARCELMAP

RANCHO CAL IFORN IA ROAD

BUSINESS PARK DRIVE

DIA

Z R

OA

D

MARKET OVERVIEW

ThecityofTemeculaislocatedinsouthwestRiversideCounty.Thecity’seconomyisdominatedbytourism,butthecityalsohasadiversified

economicbase.Thepropertyislocatedinthewesternportionofthecity.ItisconvenientlyaccessedwithcloseproximitytoI-15.Surrounding

land uses are largely industrial in nature.

12 COLLIERS INTERNATIONAL 13MARKET OVERVIEW

TEMECULAINDUSTRIAL

MARKET

Supply

Currently, there are three buildings under construction – HamannCompanies’ 53,259 SF Remington Distribution Center at 42006RemingtonAve,the29,386SFWestsideBusinessCentre’sBuilding1andthe26,566SFZevoIndustrialCenterBuilding2.Additionally,therearetwoproposedbuildingsthatareplannedforconstructionin2018 totaling 26,800 SF.

Absorption

CombinedIndustrial/R&DnetabsorptioninTemeculatotaledapositive112,114SFduringQ22018.Overthepastfiveandahalfyears(2013-Q22018),overallpositivenetabsorptionhasbeenverystrongwith896,878 SF.

SUMMARY OVERVIEW

AsofQ22018,theTemeculamarkethadatotalindustrialandflexinventoryof11,504,987SFwith230,613SFvacantindicatingacurrentvacancyrateof2.0%.143,689SFofnewconstructionwascompletedinQ22018.ThiswasaClassAindustrialspecbuildingcompletedat41753DendyParkway–MCABusinessCenterandsoldtoWesternPlastics,anowner/user.

Vacancy

Theoverallvacancyrateof2.0%inQ22018amountedtoa60basispoint(bps)decrease froma year ago (2.6%Q22017).Vacancyhas tended tofluctuatebetween2%and4%overthepastthreeyearsandwilllikelydosoin2018.

15TENANT PROFILE

JEFFERSON AVE

DIAZ ROAD

RANCHO CALIFORNIA ROAD

WINCHES

TER ROAD

YNEZ ROAD

MARGARITA ROAD

43455 BUSINESS PARK DR.

16 COLLIERS INTERNATIONAL 17TENANT PROFILE

TENANT PROFILEHISTORYAtMerckKGaA,Darmstadt,Germany,wethinkingenerations.Ourgoalistopassthecompanyontothenextgenerationbetterthanwefoundit.Thisisthemindsetthathasallowedustoexistforalmost350years.Thegrowthoftheorganizationfromafamily-runpharmacyin1668intotoday’smultibillion-dollarpharmaceuticalandchemicalcompanyistheresultof13generationsofscientists,pharmacistsandchemistsdedicatedtoadvancingdiscoveriesthatimprovethelivesofpeoplearoundtheworld.

Merck KGaA, Darmstadt, GermanyIn1668,FriedrichJacobMerckpurchasedtheEngelPharmacyinDarmstadt,Germany.

The transformation ofMerck KGaA, Darmstadt, Germany to a research-driven industrial companywasmarked in 1827when EmanuelMerck isolated andcharacterizedalkaloidsfordistributiontochemists.Asthecenturyprogressed,sodidthecompany.Newultrapureproductsweresold;thefirstbiotechnologyproductionprocesswasintroduced;andMerckKGaA,Darmstadt,Germanyenteredthemarket.

Today,MerckKGaA,Darmstadt,Germanyisaglobalpharmaceutical,chemicalandlifesciencecompanywithahistorythatbeganin1668andafutureshapedbyapproximately50,000employeesin66countries.

Sigma-AldrichSigmaandAldrichwerefoundedseparatelyin1935and1951,respectively,tosupplybiochemicalsandchemicalstoresearchscientistsintheU.S.Bothcompaniesstartedwiththeproductionanddistributionofasingleproprietarychemical:Adenosinetriphosphate(ATP)bySigmaand1-methyl-3-nitro-1-nitrosoguanidine(MNNG)byAldrich.Formanyyears,thetwocompaniesgrewindependently,SigmaservingprimarilybiochemistsandAldrichservingorganicchemists.

Whenchangingtrendsinchemicalresearchconfirmedthesynergytoberealizedfromtheircomplementaryproductofferings,AldrichChemicalCo.mergedwithSigmaInternational,Ltd.in1975,formingSigma-AldrichCorporation.Withthismarriageofbroadcapabilitiesandresources,annualdouble-digitsalesgrowthbecamethestandardinthe1980sand1990s,withsignificantexpansioninfacilities,acquisitionsandventuresintonewmarketsectors.

Millipore CorporationIn1954,amodestfiltrationcompanywithjustahandfulofemployees,openedforbusiness.Thecompanypioneeredtheuseofmembranetechnologyinhundredsofapplications.LaterchangingitsnametoMilliporeCorporationtoreflect itsgrowingrangeofproductsandexpandedcorecapabilities,thecompanywouldexpand-throughstrategicacquisitions,targetedcapitalinvestmentsandorganicgrowth-toaglobal,billion-dollarlifesciencecorporation.

EMD MilliporeIn2010,MilliporeCorporationwasacquiredbyMerckKGaA,Darmstadt,Germanyandbecamepartofthecompany’slifesciencetoolsdivision,operatinginNorthAmericausingtheumbrellabrand“EMD.”Witharangeofmorethan60,000productsonoffer,thisdivisioncapturedsignificantopportunitiesinhigh-growth,high-marginmarketsegmentssuchasbio-researchandbio-production.

MilliporeSigmaOnNovember18,2015,MerckKGaA,Darmstadt,Germany,announcedthecompletionofits$17billionacquisitionofSigma-Aldrich,creatingagloballeaderinthe$140billionindustrytohelpsolvethetoughestproblemsinlifescience.Thistransactionbringstogethertheworld-classproductsandservices,innovativecapabilitiesandexceptionaltalentofEMDMilliporeandSigma-Aldrichtocreateagloballeaderinthelifescienceindustry:MilliporeSigma.

What’s Next to Come…Inthecomingyears,MerckKGaA,Darmstadt,GermanywillbetransformingtheDarmstadtsiteintoacontemporaryglobalheadquarters,includingastate-of-the-artInnovationCentertopromoteinterdisciplinaryprojectworkamongemployees,aswellasanewbuildingthatwillhouseVisitorReceptionandaguestrestaurant.

Inaddition,thelifesciencebusinessofMerckKGaA,Darmstadt,Germanyisinvesting$115millioninanewlifesciencecampusintheBostonarea,oneofthemostimportantscienceandtechnologyhubsintheworld.Thenewcampuswillserveasapremierglobalcustomerdestination,housingastate-of-the-artexploratoryenvironmentwhereourscientistsandengineersworktogetherwithcustomerstohelpsolvetheirtoughestlifesciencechallenges.

43455B US I N ES S PA R K D R I V E

OFFERING MEMORANDUM

PAUL LAFRENZSenior Vice PresidentLic. No. 00817354+1 858 677 5344paul.lafrenz@colliers.com

4350 La Jolla Village Dr., Ste. 500San Diego, CA 92122

Lic. No. 01908588+1 858 455 1515 MAINcolliers.com/sandiego