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DOWNTOWN PALO ALTO

HAMILTON WEBSTER PORTFOLIO

OFFERING MEMORANDUMAN INFILL REDEVELOPMENT OPPORTUNITY

HAMILTON AVENUE

WEBSTER STREET

Interest Offered:100 percent fee-simple interest in three parcels totaling approximately 0.52 acres. Terms of the Sale:Property is being offered free and clear of debt. Offer Deadline:TBD Property Tours:All property tours must be coordinated through the listing team.Please do not contact the on-site tenants or management staff. Due Diligence and Closing:It is the buyer’s responsibility to independently confirm all of the information contained herein.Any projections, assumptions or estimates used herein are for example purposes only.All costs and expenses incurred by the buyer will be the sole responsibility of the buyer.

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CBRE, Inc., as exclusive advisor, is pleased to present the rare opportunity to acquire the fee simple interest in the Hamilton Webster Portfolio (the “Project” or the “Site”), a unique 0.52 acres infill development in the heart of Palo Alto, CA. The Project will be delivered vacant offering an opportunity for an investor or a developer to purchase a well-located opportunistic site in the highest sought after submarket in the epicenter of Silicon Valley. This offering is being made un-priced, on an “as-is, where-is” basis.

INVESTMENT HIGHLIGHTS

Prime Infill Redevelopment Opportunity The Property’s three parcels provide up-zoning designations that allow development of increased densities for both Multifamily & Office. Palo Alto is one of the most supply constrained markets in the Silicon Valley and San Francisco Bay Area. The limited supply has caused lease rates to increase & cap rates to compress dramatically, thereby providing investors with exceptional opportunities to place capital.

Palo Alto Growth PatternIn March of 2017, the Palo Alto City Council approved a preferred growth pattern scenario that envisions adding 3,545 to 4,420 housing units and 9,850 to 11,500 job between now and 2030. Those numbers represent a growth rate of 12-15% in housing and 10-12% in jobs. This scenario will anchor the City of Palo Alto’s new Comprehensive Plan.

Premier Office Market FundamentalsThe Downtown Palo Alto Class A office submarket represents one of the San Francisco Bay Area’s prime commercial real estate locations with an overall vacancy rate at 3.8% and an asking rental rate of $9.69 FSG per month. Comparatively, the overall Silicon Valley market has a vacancy rate of 7.6% and an asking rental rate of $4.73 FSG per month.

Proximity to TransportationOutstanding location within 0.7 mile proximity to Caltrain Palo Alto Station, which is a “Baby Bullet” stop providing the fastest public transportation access to San Francisco within approximately 40 minutes and to San Jose within approximately 25 minutes. In addition, the Property is conveniently located off Highway 101 and offers direct access to El Camino Real via University Avenue.

THE OFFERING

ADDRESS 542 WEBSTER 571 HAMILTON 565 HAMILTON TOTALS

APN 120-03-060 120-03-061 120-03-062

Square Footage 1,696 4,616 1,500 7,812

Land Area 0.11 0.23 0.17 0.52

Land SF 5,000 10,000 7,450 22,450

Units 4 4 1 9

Stories 1 2 1

Year Built 1924 1923 1904

Zoning RM-40 RM-40 CD-C (P)

SITE OVERVIEW

571Hamilton Ave

565Hamilton Ave

542Webster St

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PALO ALTO LAND USE MAP

Regional/Community Commercial: Larger shopping centers and districts that have wider variety goods and services than the neighborhood shoppingareas. They rely on larger trade areas and include such uses as department stores, bookstores, furniture stores, toy stores, apparel shops, restaurants, theaters, and non-retail services such as offices and banks. Examples include Stanford Shopping Center, Town and Country Village, and University Avenue/Downtown. Non-residential floor area ratios range from 0.35 to 2.

Multiple Family Residential: The permitted number of housing units will vary by area, depending on existing land use, proximity to major streets and public transit, distance to shopping, and environmental problems. Net densities will range from 8 to 40 units and 8 to 90 persons per acre. Density should be on the lower end of the scale next to single family residential areas. Densities higher than what is permitted by zoning may be allowed where measurable community benefits will be derived, services and facilities are available, and the net effect will be compatible with the overall Comprehensive Plan.

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Todd HusakManaging Director+1 650 494 5182todd.husak@cbre.comLic. #01785130

INVESTMENT CONTACTS

Scott J. Prosser, SIORExecutive Vice President+1 408 453 7454scott.prosser@cbre.comLic. #01104754

Jefrey HendersonExecutive Vice President+1 408 453 7461jefrey.henderson@cbre.comLic. #01483399

Joe KellySenior Vice President+1 650 494 5174joe.kelly@cbre.comLic. #01420963

DEBT & EQUITY FINANCING CONTACTS

OFFICE

Brad ZampaExecutive Vice President+1 415 772 0225brad.zampa@cbre.comLic. #01174366

MULTIFAMILY

Andrew BehrensVice Chariman+1 415 772 0211andrew.behrens@cbre.comLic. #01215934

MULTIFAMILY

Jesse WeberExecutive Vice President+1 415 772 0235jesse.weber@cbre.comLic. #01820711

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENTCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written content of the owner is prohibited. 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. PMC0003573.