multi tenant office investment opportunity · advisors, confertel, securitas security services, ......

INVESTMENT OPPORTUNITY

MULTI TENANT OFFICE INVESTMENT OPPORTUNITY

OFFERED AT: $5,671,000 | 5.75% CAP

2385CAMINO VIDA ROBLE

CARLSBAD, CA 92011

EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 2

Color Scheme

Fonts

GOTHAM/ BLACKGOTHAM/ MEDIUMGOTHAM/ LIGHT

CMYK C:0 / M:100 / Y:65 / K:47

RGB R:145 / G:0 / B:40

CMYK C:0 / M:0 / Y:0 / K65

RGB R:119 / G:120 / B:123

TABLE OF CONTENTS

4 Offering Summary 5 Investment Highlights 6 Rent Roll 7 Cash Flow Projection 8 Replacement Cost Summary

EXECUTIVE SUMMARY

10 Location Maps11 Site Description12 Floor Plans14 Carlsbad Market Overview20 Value Add Component21 Property Photos23 Aerials

PROPERTY INFORMATION

29 Carlsbad Overview30 San Diego County Overview31 Demographics

Confidentiality Agreement & Disclosures

AREA OVERVIEW

RYAN BARRPrincipal

[email protected]

CA Lic#01338994

RYAN BENNETTPrincipal

[email protected]

CA Lic#01826517

CAPITAL MARKETS CONTACTS


JEFF ABRAMSONPrincipal

[email protected]

CA Lic#00956805

GREG GERSHMANPrincipal

[email protected]

CA Lic#01909272

LOCAL MARKET EXPERTS

EXECUTIVE SUMMARY2385

CAMINO VIDA ROBLECARLSBAD, CA 92011



Lee & Associates is pleased to exclusively present to qualified investors, the rare opportunity to acquire an investment property located in the Camino Corporate Center business park in coastal Carlsbad. Carlsbad is located within the highly affluent North San Diego County submarket.

Built in 1986, the subject property consists of an approximately 28,084 square foot, two-story multi-tenant office building located within the master planned, 147,393 square foot Camino Corporate Center. The property is located near the signalized intersection of Camino Vida Roble and El Camino Real, which sees a combined traffic count of 39,000+ cars per day, providing excellent visibility and access to the property. El Camino Real is the main North/South thoroughfare and preferred route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, Cardiff, and Oceanside.

2385 Camino Vida Roble is 100% leased to a diverse mix of office-related tenants including Summit Capital, Vanguard Realty Advisors, ConferTel, Securitas Security Services, and Global Domains International. Tenants in the project are currently paying an average rent of $1.44 modified gross PSF, well below market rents in this submarket which are roughly $1.70 modified gross PSF. It is nearly impossible to find another office building containing the same floor plate, as well located, and at the current lease rates within the submarket. As a result, approximately 70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions, reflecting commitment to the project and offering a high likelihood of renewals.

Carlsbad is among the most attractive submarkets in San Diego. It is supported by an arterial freeway and a Coaster station, providing employers ease of access from San Diego and Orange County. In addition, the beach and countless outdoor amenities lift the demographic profile and attract tenants and residents alike. Carlsbad benefits from its position in North County along Interstate 5, making it easily accessible to residents in Orange County and the greater San Diego area. It also benefits from a reverse commute and high-end housing that can accommodate executives. The technology industry, ranging from sports technology to medical technology drive the economy in Carlsbad. Fortified by companies ranging from ViaSat to Fisher Scientific, the economic backbone along the coast is strong. The demographics also paint a picture of a submarket that is highly educated and well paid - nearly 60% of residents hold at least a bachelor’s degree and the median household income is almost $100,000.

-- OFFERING SUMMARY --

TENANT OVERVIEW

Securitas Security SvcRemington L&W HoldingsGrant IPMike ThomasJohn RoachLearning GenieRamesh EnterprisesSummit CapitalEA Outsource & Bus.Preferred Group PropsOPS ManagerConferTelAmy PetersVanguard Realty AdvisorsGlobal Domains Int’lAccent on Design

1,500 SF1,024 SF1,546 SF2,000 SF1,531 SF1,045 SF1,515 SF1,194 SF1,922 SF4,276 SF1,692 SF1,537 SF 900 SF2,736 SF2,969 SF 695 SF

INVESTMENT HIGHLIGHTSOffering Price: $5,671,000Net Operating Income: $326,073Cap Rate - Year 1: 5.75%Price/SF: $201

Offering Summary Rent RollInvestment Highlights Cash Flow Projection

PROPERTY OVERVIEWProperty Type: Multi-Tenant (16 Units)

Address: 2385 Camino Vida RobleCarlsbad, CA 92011

Occupancy: 100%

Property Size: Approx 28,084 sq ft

Land Size: 1.67 Acres

Ownership: Fee Simple

Year Built: 1986

Parking: 2.34/1,000 SF

APN: 213-050-37-00

Replacement Cost Summary



-- INVESTMENT HIGHLIGHTS --

DEMOGRAPHICS1 MILE 3 MILES 5 MILES

POPULATION 4,919 85,757 254,286HOUSEHOLDS 1,773 32,544 89,993

AVG HH INCOME $133,145 $109,990 $111,701

The subject property is a 100% leased multi-tenant office building, priced at well below replacement cost for this market (see page 8 of OM).

The Tenants within 2385 Camino Vida Roble are currently paying an average rent of $1.44 modified gross PSF. Market rent in this submarket is roughly $1.70 modified gross PSF. It is nearly impossible to find another office building containing the same floor plate, as well located, and at the current lease rates within the submarket.

70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions. This commitment to the project offers a high likelihood of renewals and speaks to the quality of the real estate.

The current rent roll provides a future investor with a unique opportunity to either focus on renewing the current tenants as they roll for a continued stable cash flow or to push rents to market rates to significantly grow the net operating income (see cash flow projection page 7).

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Over 250,000 people with an impressive average household income of $111,700 live within a five mile radius of the subject property.

The quality of life advantage provides Carlsbad based firms with the ability to recruit and retain local talent.

Carlsbad is widely recognized as the “Golf Capital of the World” and is home to some of the largest and most prestigious golf companies including Callaway, TaylorMade, Acushnet (Titleist) and Cobra Puma Golf.

Carlsbad benefits from a spectacular location in North San Diego County, with access to beaches, biking, hiking, amusement parks, and an unmatched sunny climate. The city sees between 3.5-4 million visitors per year who are drawn to the area for work, play, and relaxation

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Due to Carlsbad’s coastal location, business friendly environment, and superior quality of life, the city of Carlsbad houses the largest concentration of credit tenants in in North San Diego County.

The subject property is ideally situated adjacent to El Camino Real, the main North/South thoroughfare and preferred route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, Cardiff, and Oceanside.

Employers and a highly skilled labor force benefit from proximity to executive housing, affordable living options for employees, aesthetically pleasing park standards, and an abundance recreational options including world class resorts, golf courses, gyms, spas, hiking and biking trails, surfing and retail amenities.

Carlsbad is home to the corporate headquarters of many nationally recognized companies, such as Callaway Golf, ViaSat, Thermo Fisher Scientific, Genoptix, TaylorMade, Ionis Pharmaceuticals, and Rubio’s. These companies benefit from a well-educated work force, with 54% of its high school graduates achieving at least a Bachelor’s Degree

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CARLSBAD: HIGHLY DESIRABLE N. SAN DIEGO COUNTY COASTAL OFFICE MARKET • IRREPLACABLE LOCATION ADJACENT TO EL CAMINO REAL • PREFERRED MARKET FOR CORPORATE HQ’s

The property is strategically situated within proximity and direct access to Interstate 5, providing “reverse commute” access from San Diego and Orange County.

The subject property is located less than 1 mile from Palomar Airport, San Diego County’s largest single runway airport that houses an extensive corporate jet community.

The Carlsbad business community is made up of a wide range of business clusters that include action sports manufacturing, life sciences, clean technology, information and communications technology (ICT), hospitality and leisure. An abundance of new wave technology, multi-media, semiconductor, healthcare and biotech companies. There are as many as 30 industry-leading golf companies and 150 manufacturing plants also in Carlsbad.

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DIRECT ACCESS & PROXIMITY TO INSTERSTATE 5 • LESS THAN 1 MILE FROM McCLELLAN-PALOMAR AIRPORT • CARLSBAD OFFICE MARKET FEATURES DIVERSE RANGE OF CLUSTERED BUSINESSES

100% LEASED MULTI-TENANT OFFICE INVESTMENT • BELOW MARKET RENTS • OPPORTUNITY TO GROW NOI IN YEAR 2 • PRICED SIGNIFICANTLY BELOW REPLACEMENT COST • LONG-TERM TENANCY

CARLSBAD - AFFLUENT DEMOGRAPHICS ($111,000 AHI) • QUALITY OF LIFE ADVANTAGE • GOLF CAPTITAL OF THE WORLD • HEAVY TOURISM

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Offering Summary Rent RollInvestment Highlights Cash Flow Projection Replacement Cost Summary

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-- RENT ROLL --

Unit # Tenant NameLease Dates

Lease Term(Months)

Size (Sq. Ft.)Bldg Share

Rent/SF/YearAnnual Rent

Rent/SF/MoMonthly Rent

Increase Date New Rent/Yr Lease Type Renewal Options

100 Securitas Security Svc.Dec-2015 to Nov-2020 60 1,500

5.34%$18.60

$27,900$1.55

$2,325Dec-2018Dec-2019

$19.16$19.73 MG (2) 3-Year Options

101 Remington L&W HoldingsNov-2017 to Oct-2021 48 1,024

3.65%$18.00

$18,432$1.50

$1,536

Nov-2018Nov-2019Nov-2020

$18.54$19.09$19.67

MG (1) 1-Year Option

102 Grant IPJul-2017 to Sep-2019 27 1,546

5.50%$18.00

$27,828$1.50

$2,319 Jul-2018 $18.54 MG --

104 Mike ThomasJul-2007 to Mar-2022 178 2,000

7.12%$17.18

$34,373$1.43

$2,864

Mar-2019Mar-2020Mar-2021

$17.61$18.14$18.69

MG --

105 John RoachMay-2017 to Apr-2019 24 1,531

5.45%$17.53

$26,832$1.54

$2,236 -- -- MG --

107 Learning GenieMar-2016 to Apr-2019 36 1,045

3.72%$18.46

$19,290$1.49

$1,607 -- -- MG --

112 Ramesh EnterprisesFeb-2015 to Feb-2019 48 1,515

5.39%$17.30

$26,215$1.44

$2,184 -- -- MG (1) 1-Year Option

113 Summit CapitalDec-2006 to Aug-2020 165 1,194

4.25%$16.54

$19,752$1.38

$1,646Aug-2018Aug-2019

$17.04$17.55 MG

114 EA Outsource & Bus.Jan-2016 to Feb-2021 62 1,922

6.84%$18.60

$35,748$1.55

$2,979Feb-2019Feb-2020

$19.16$19.73 MG (1) 2-Year Option

200 Preferred Group Prop.Jul-2015 to Dec-2020 66 4,278

15.23%$19.09

$81,687$1.59

$6,807Dec-2018Dec-2019

$19.66$20.26 MG (1) 5-Year Option

201 OPS ManagerSep-2013 to Mar-2019 67 1,692

6.02%$18.46

$31,233$1.54

$2,602 -- -- MG (1) 3-Year Option

202 ConferTelJan-2002 to Jan-2022 241 1,537

5.47%$18.46

$28,372$1.54

$2,364

Feb-2019Feb-2020Feb-2021

$18.92$19.49$20.07

MG (1) 3-Year Option

203 Amy PetersJul-2016 to Jul-2020 25 900

3.20%$16.00

$14,400$1.33

$1,200Jul-2018Jul-2019

$16.48$16.97 MG --

205 Vanguard Realty SvcsAug-2012 to Jul-2019 84 2,736

9.74%$14.42

$39,456$1.20

$3,288 Jul-2018 $14.85 MG (3) 1-Year Options

210 Global Domains Int’lFeb-2012 to Feb-2019 85 2,969

10.57%$15.00

$44,535$1.25$3,711 -- -- MG (2) 3-Year Options

212 Accent on DesignJul-2010 to Mar-2019 97 695

2.47%$16.23$11,280

$1.35$940 -- -- MG (3) 1-Year Option

TOTALS $464,535.24 $38,711.27

Total Occupied SqFt 28,084 Total Available SqFt 0




-- CASH FLOW PROJECTION --


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8For the Years Ending Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026

POTENTIAL GROSS REVENUE

Base Rental Revenue $503,140 $554,071 $583,120 $608,824 $633,542 $652,549 $673,395 $693,335

Absorption & Turnover Vacancy (16,059) (7,498) (17,663) (8,472) (18,618) (8,692) (20,476)

Scheduled Base Rental Revenue 487,081 546,573 565,457 600,352 633,542 633,931 664,703 672,859

Expense Reimbursement Rev-enue 1,528 4,776 6,850 8,935 13,377 16,666 11,112 22,567

Total Potential Gross Revenue 488,609 551,349 572,307 609,287 646,919 650,597 675,815 695,426

General Vacancy (1,604) (12,062) (2,986) (13,150) (22,642) (4,805) (15,266) (4,581)

Effective Gross Revenue 487,005 539,287 569,321 596,137 624,277 645,792 660,549 690,845

OPERATING EXPENSES

Bldg Maintenance 29,988 30,888 31,814 32,769 33,752 34,764 35,807 36,881

Janitorial 15,384 15,846 16,321 16,811 17,315 17,834 18,369 18,920

Landscape 6,135 6,319 6,509 6,704 6,905 7,112 7,326 7,545

Insurance 5,588 5,756 5,928 6,106 6,289 6,478 6,672 6,873

Management @ 4% 19,480 21,571 22,773 23,845 24,971 25,832 26,422 27,634

Taxes @ 1.1% 65,218 66,523 67,853 69,210 70,594 72,006 73,446 88,231

Services Outside 900 927 955 983 1,013 1,043 1,075 1,107

Utilties 18,239 18,786 19,350 19,930 20,528 21,144 21,778 22,432

Total Operating Expenses 160,932 166,616 171,503 176,358 181,367 186,213 190,895 209,623

Net Operating Income 326,073 372,671 397,818 419,779 442,910 459,579 469,654 481,222



-- REPLACEMENT COST SUMMARY --


LAND SIZE 72,745 Square FeetBUILDING SIZE 28,084 Square Feet

LAND ACQUISITION COST @ $25.00 $1,818,625HARD COSTS @ $120.00 $3,370,080TENANT IMPROVEMENTS @ $55.00 $1,544,620

TOTAL HARD COSTS $6,733,325

A & E @ 2.0% $134,666INSURANCE $0.37 PSF $10,391PROPERTY TAXES 1.10% Hard Costs $74,066DEVELOPMENT FEES $8.50 PSF $238,714LEGAL 1% Hard Costs $33,700DEVELOPER’S PROFIT 10% Hard Costs $337,080LOAN FEE 1% Hard Costs $33,700CONTINGENCY 5% Hard Costs $168,504INTEREST ON LAND CARRY 3% Hard Costs $54,558INTEREST ON CONSTRUCTION 5% Hard Costs $168,504INTEREST ON LEASE UP 3% Hard Costs $101,102LEASING COMMISSION $4.00 PSF $112,336

TOTAL SOFT COSTS $1,467,321

TOTAL DEVELOPMENT COSTS $8,167,020 COST PER SQUARE FOOT $290

HARD COSTS

SOFT COSTS

* Summary provided as part of an investment package. Subject to disclaimer on Pg 28


PROPERTY INFORMATION2385




-- LOCATION MAPS --

Oceanside Vista

Encinitas

CARLSBAD

Poway

Escondido

SAN DIEGO

El Cajon

Chula Vista

La JollaSan Marcos

RanchoSanta Fe

VistaOceanside

CARLSBAD

Encinitas

El Camino Real

Palomar Airport Rd San Marcos Blvd

Escondido

La Costa

San Elijo Hills

Location Maps Floor Plans Property PhotosSite Description AerialsCarlsbad Market Overview Value Add Component



ADDRESS: 2385 Camino Vida RobleCarlsbad, CA 92011

STREET FRONTAGE: 248’ on Camino Vida Roble

SUBMARKET: Carlsbad

RENTABLE SQUARE FEET: 28,084 SF

CONSTRUCTION TYPE: Steel

ACCESS: Ingress/Egress from Camino Vida Roble

# OF FLOORS: 2 Floors - 1st: 14,042 SF 2nd: 14,042 SF

ROOF: Built-Up Roofing (BUR) with Cap Sheet Surface

HVAC: Split System HVAC

FIRE PROTECTION: Sprinklered

YEAR BUILT: 1986

ZONING: PM - Commercial & Light Industrial3-Story Height Limit

PARKING: 2.34/1000 SF (64 Surface Spaces)

APN: 213-050-37-00

-- SITE DESCRIPTION --




-- FLOOR PLANS --

FIRST FLOOR

RAMESHENTERPRISES

LEARNINGGENIE

EA OUTSOURCE & BUSINESS

JOHN ROACH

MIKE THOMAS GRANT IP REMINGTONL&W HOLDINGS

SECURITAS SECURITY SVCS

SUMMITCAPITAL




-- FLOOR PLANS --

SECOND FLOOR

VANGUARDREALTY SVCS

AMY PETERS

GLOBAL DOMAINS INT’L

CONFERTEL OPS MANAGER

ACCENT ONDESIGN

PREFERRED GROUP PROP




-- CARLSBAD MARKET OVERVIEW --

MARKET COMPARISON - 4TH QUARTER 2017

Carlsbad San Diego County

Number of Buildings: 330 5,540

Rentable Building Area (RBA): 7,105,170 SF 115,599,153

Asking Rent (Class A, B & C): $30.02 $32.18

Vacancy Rate:

Asking Rents:


• The San Diego Office market has experienced a decrease in availability over the past ten years--- 18.04% in 2008 down to 9.6% 2018 YTD. Low vacancy, coupled with minimal construction deliveries to the market has driven many San Diego submarkets to experience robust rents.

• The Average asking lease rate for office space in San Diego Increased $0.02 (+0.7%) in Q1. The rate is $0.10 (+3.8%) higher year-over-year and surpassed the all-time high reached in Q3 2017.

• The San Diego office market Q1 was the 15th consecutive quarter of positive occupancy.

• Employment growth is expected to rise 1.6 percent this year and office employment will rise even faster, up 2.4%.

SAN DIEGO OFFICE MARKET OVERVIEW

• There has been a record demand for >5,000sf office space in the Carlsbad submarket showing the strongest lease-up rates and fetching some of the highest rents and values.

• We continue to see strong Class B low-rise demand from tenants as pricing continues to rise for the Class A office product.

• Carlsbad office market continues to see the trend of tenants moving away from Class A office buildings to chase the more preferred Class B rents

• ViaSat, a strong market driver for Carlsbad, employees over 2,000 workers and continues to expand its footprint in Carlsbad, The Bressi Ranch location is planned for approximately 792,000 sf buildout, with 280,000 sf scheduled to be completed in 2018.

CARLSBAD OFFICE MARKET OVERVIEW



-- CARLSBAD OFFICE SALE COMPARABLES --


Building Size

Price

Cap Rate

Price/SF

Year Built

$500

$400

$300

$200

$100

$0

BUILDING ADDRESS

28,084 SF

$5,946,000

5.50%

$211.72

1986

SUBJECT PROPERTY

6,768 SF

$1,800,000

N/A

$265.96

2007

2794 Gateway Rd

49,080 SF

$10,452,000

N/A

$214.80

1986; Ren 1992

5050 Avenida Encinas

30,388 SF

$8,550,000

6.00%

$281.36

1982; Ren 2008

6120 Paseo Del Norte

5,740 SF

$1,615,000

N/A

$281.36

2007

2780 Gateway Rd

12,763 SF

$3,770,000

N/A

$295.39

1982

6405 El Camino Real

7,988 SF

$2,495,000

5.80%

$312.34

1985


10,904 SF

$3,340,000

5.16%

$306.31

1971

2910 Jefferson St

15,142 SF

$5,000,000

6.10%

$330.21

1975

1207 Carlsbad Village

8,585 SF

$2,965,000

5.25%

$345.37

1982


28,704 SF

$14,000,000

N/A

$487.74

1986

2282 Faraday Ave

AVERAGE $/SF: $312.08



-- CARLSBAD OFFICE AVAILABILITIES --


2382 & 2386 Faraday AveCarlsbad, CA

Comments: • 44% Leased• Flex Building - vacant units range from 1,400-

23,005 sq ft• Priced below replacement cost of $329/SF

5930 Priestly DrCarlsbad, CA

Comments: • 100% Leaased to Single Tenant• Lease rate below market rent• Architectrual Enhancements

List Price: $18,460,600

List Cap: N/ABldg Size: 99,787 SFPrice/SF: $185.00NOI: N/AYear Built: 1988

3172 Lionshead AveCarlsbad, CA

Comments: • 100% Leased to Single Tenant• High-end creative office buildout• In Contract at Full Ask Price

List Price: $3,055,000

List Cap: 4.50%Bldg Size: 8,336 SFPrice/SF: $366.48NOI: N/AYear Built: 2001

List Price: $4,705,000

List Cap: 6.25%Bldg Size: 12,176 SFPrice/SF: $386.42NOI: N/AYear Built: 2007

IN ESCROW



-- OFFICE LEASE COMPARABLES --

OFFICE LEASE COMPARABLES - CARLSBAD

Photo Address City Leased SF Lease Rate LeaseCommencement Lease Term Escalations Tenant

115 Melrose Dr, Ste 160 Carlsbad 17,778 $2.07 Plus E 2/1/2020 24 3% Good Source Solutions

2714 Loker Ave W, Ste 100 & 200 Carlsbad 14,414 $1.95 Plus E 1/1/2017 62 3% Vertiflex, Inc.

1935 Camino Vida Roble, Ste 100 & 140 Carlsbad 11,825 $2.00 Plus E 12/1/2019 12 0% Del Mar Recovery Solutions LLC

2141 Palomar Airport Rd, Ste 200 Carlsbad 11,801 $2.25 Plus E 6/1/2017 37 3% ColoreScience, Inc.

2330 Faraday Ave, Ste 100 Carlsbad 8,781 $1.66 NNN 2/1/2018 63 3% Chromacode

2111 Palomar Airport Rd, Ste 200 & 220 Carlsbad 7,345 $2.25 Plus E 4/1/2017 39 3% Hansen ICC, LLC

5050 Avenida Encinas, Ste 260 & 270 Carlsbad 7,067 $2.71 Plus E 4/1/2020 38 3% Michael Baker International Inc

2011 Palomar Airport Rd, Ste 305 Carlsbad 6,615 $1.80 Plus E 6/1/2017 36 3% Cerner Corporation





-- OFFICE LEASE COMPARABLES (cont’d) --



5900 La Place Ct, Ste 120 Carlsbad 5,023 $2.15 FSG 9/1/2016 65 3% Neuroscience Education Institute

2035 Corte Del Nogal, Ste 101 Carlsbad 3,158 $1.95 MG 5/1/2017 67 3% ESN Insurance Services Network

2710 Loker Ave W, Ste 360/370 Carlsbad 3,140 $2.00 MG 3/1/2017 60 3% Gamma 2, Inc

785 Grand Ave, Ste 102 Carlsbad 1,667 $2.25 MG 2/1/2018 48 3% Social Supply Co, LLC

3150 El Camino Real, Ste C Carlsbad 1,428 $2.00 Gross 8/1/2016 60 3% Donna Fleming, MA LMFT

785 Grand Ave, Ste 204 Carlsbad 1,304 $2.15 MG 7/15/2017 36 3% Qiwei Yuan &Yishuang Fang Bacaoco

785 Grand Ave, Ste 100 Carlsbad 1,300 $2.30 MG 5/1/2018 60 3% Dean Fauce Chiropractic

3150 El Camino Real, Ste F Carlsbad 1,226 $2.00 Gross 5/1/2017 60 0% Lisa Blake




-- OFFICE LEASE COMPARABLES (cont’d) --



3150 El Camino Real, Ste D Carlsbad 1,004 $2.00 Gross 11/1/2016 36 3% Linebarger Goggan Blair & Sampson




-- VALUE ADD COMPONENT --

Software : ARGUS Ver. 15.0.1.26 (Build: 15000‐B) 2385 Camino Vida Roble Date : 4/12/18 File : VID1 (modified by wge on 04‐05‐18) ‐ Time : 4:05 pm Property Type : Office/Industrial ‐ Ref# : AJF Portfolio : 28084 Carlsbad, CA 92011 Page : 1

Square Feet Expiring

0

2,000

4,000

6,000

8,000

10,000

Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026

SQUARE FEET EXPIRING OVER THE NEXT 8 YEARS

2,000

0

4,000

6,000

8,000

10,000

Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2023

UNDER MARKET RENTAL RATE

Market Rent: $1.70 PSF MG ($20.40)

Avg in Building: $1.44 PSF MG ($17.37)

Software : ARGUS Ver. 15.0.1.26 (Build: 15000‐B) 2385 Camino Vida Roble Date : 4/12/18 File : VID1 (modified by wge on 04‐05‐18) ‐ Time : 4:06 pm Property Type : Office/Industrial ‐ Ref# : AJF Portfolio : 28084 Carlsbad, CA 92011 Page : 1

Market vs. Effective Rent

Market

Effective

0

5

10

15

20

25

30

2019 2020 2021 2022 2023 2024 2025 2026

30

25

20

15

10

5

02019 2020 2021 2022 2023 2024 2025 2026

MARKET VS EFFECTIVE RENT

MARKET EFFECTIVE

OPPORTUNITY TO PUSH RENTS IN BUILDING



-- PROPERTY PHOTOS --




-- OVERHEAD VIEW --

El Cam

ino R

eal

Camino Vida Roble

Las

Palm

as D

r

Yarrow D

r

Jasp

er W

ay

Las Palmas Dr

2385

Camino Vida Roble




Pacific Ocean

McClellan-PalomarAirport

The Crossings at Carlsbad

CARLSBAD

Palomar Airport Rd

El Camino Real

Camino Vida Roble

College El Camino Real

El Camno Real

Aviara CommunityPark

Carlsbad Premium Outlet Stores

The Shoppes at Carlsbad

OCEANSIDE


El Camino North Shopping Ctr

Tri-City Crossroads Shopping Ctr

Mira Costa CollegeTechnology Center

Target OneTechnology

RA MedicalKEEN

Performance

NatelEngineering

Buffini & Co

Arc Zone MA Tile & Stone

Location SmartCJ Products United Pacifics

Electronics

ULI

TeledyneOceanscience

The Fields

BurgeonBeer Co.

Vineagogo

HulseOrthodonticsSalter Labs

Airgas

Speedminton

San Diego Hat

San DiegoPremier Training

Custopharm

DesignerProteinStrata SkinSciences

Form Factor

Electro SurfaceTechnologies

Luxtera

Nucci’s Produce

Chuao

IcetownCarlsbad

Carlsbad UnifiedSchool District

Respironics Firewire Surf

CatalinaRestaurant Grp

L&L PrintersSpectrumAssembly

EEDAR

K1 Speed

Qualigen Trans World Media

CVI Melles Griot

MafiosoClothing

Bitchin’Sauce

San Diego CountyAnimal Services

CarlsbadExecutive Plaza Newman

Replacement Windows

LOFT

Mercotec

CarlsbadSelf Storage

Carlsbad Manufacturing

CorpPower

SemiconductorsMilliporeSigna

VitecElectronics

Z Customization

PalomarCommons

Max Linear

Upper Deck

Alphatec Spine

AcutusISIS

PharmaceuticalsKendall Floral

Supply

Golf Academy of America San Diego

Carlsbad AirportSelf Storage

MagellanAviation

DD Studio

Dimension OneSpa Corp HQ

L3 Communications

GenMarkDiagnostics

GUNNAROptics

San DiegoSign Company

RockstarSan Diego

MTSSystems Corp

GraniteConstruction

Tri-City WellnessCenter

Spectrum

AspirationsPreSchool

Polara GolfDarton International

Carlsbad Crossfit

North CoastChurch

One Stop Toner& Inkjet

GTR Enterprises Amigo Custom Screen Prints

PeekPackaging

PacwestBancorp

San DiegoRegional Ctr

AssociationMgmt Grp

ScrooscoopFastener Co

Kart RacingTechonologyCustom Markng

Dermesse

Villa LomaApartments

PoinsettiaPlaza



-- LOOKING NORTHEAST --

• JIF PAK MANUFACTURING• ECOWATER SAN DIEGO• APPLIED MEMBRANES• HEAVILAND LANDSCAPE MGMT• SITEONE LANDSCAPE SUPPLY• TURF STAR• FINISH MASTER

• PELICAN REPLACEMENT WINDOWS• PREDATOR MOTORSPORTS• LAVA PROPANE• OCHS OIL• AZTEC BREWING COMPANY• CABO INTERNATIONAL

• STAPLES• STARBUCKS• PALOMAR TECHNOLOGIES• BANK OF AMERICA• GUNTHER GUNS• NORDSON ASYMTEK• FERGUSON• LA COSTA LIMO• OPTUM RX• GLANBIA NUTRITIONALS• PROSPOT INTERNATIONAL• SYNTERACT

• MCCAIN PRODUCTS• GLACIER WATER SERVICES• VISTA INDUSTRIAL PRODUCTS• GOURMET CULINARY• GREENLEE TEXTRON• SOLARCITY• DR. BRONNER’S MAGIC SOAP• VISTA’S ICEBOX

• APERIO• DDH ENTERPRISES• SOLATUBE HOME DAYLIGHT• AQUA LUNG AMERICA• WATKINS WELLNESS• BOOTHCRAFTERS• NAI• STONE BREWING DISTRIBUTION

• GATORZ• HOUSE OF CROSSFIT• BANK OF SOUTHERN

CALIF• VERISK 3E• AETHERCOMM

• PRANA• PALOMAR

REPROGRAPHICS• NEVELL GROUP• ACCESS MEDICAL INC• SYSTEM PAVERS

McClellan-PalomarAirport

SAN MARCOSVISTA

Palomar A

irport Rd

Palomar Airport Rd

El Camino Real

Camino Vida Roble


Carlsbad UnifiedSchool District


Carlsbad CrossfitSan Diego HatNucci’s Produce

Chuao

PalomarCommons

Vineagogo

HulseOrthodontics

Salter Labs


CustopharmDesignerProtein

Strata SkinSciences

Form Factor


LuxteraNorth Coast

Church

ULI


The Fields

Airgas

Speedminton

IcetownCarlsbad

Respironics

Firewire Surf


San Diego CountyAnimal Services

LOFT

CarlsbadSelf Storage

Carlsbad Manufacturing

Corp

PowerSemiconductors

MilliporeSigna Vitec

Electronics

BurgeonBeer Co.

CVI Melles Griot

Bitchin’Sauce

CarlsbadExecutive Plaza

NewmanReplacement

Windows

EEDAR

MafiosoClothing

L&L Printers

SpectrumAssembly

Mercotec

MA Tile & Stone

Max Linear

Upper DeckAlphatec

Spine

GenMarkDiagnostics

GraniteConstruction

Z Customization


Diagnostic Consulting Network

GTR Enterprises

Amigo Custom Screen Prints

PeekPackaging

San DiegoSign Company

San DiegoRegional Ctr

CarlsbadPolice DeptCarlsbad

Fire Dept Arrowhead Insurance

Bressi Ranch

StorQuestSelf Storage

House of Air• HOLIDAY INN• SAN DIEGUITO TROPHY• KELLER WILLIAMS• 1 SOURCE DATA• FRONTIER LOAN GROUP• BRESSI RANCH REALTY

• SALMEN INSURANCE• US WINDOW & DOOR• DICKINSON CAMERON

CONSTRUCTION• FIRST CITIZENS BANK• INMOTION, INC.



Alga Norte Community Park


Pacific Ridge Elementary School

Melrose Dr

Melrose Dr

Melrose Dr

Finishing Touch

MillworkCapella Flavors


El Camino Real



La Costa Golf Club& Resort

El Camino Real

Alga Rd

Melrose Dr-- LOOKING SOUTHEAST --

El Camino Real

Camino Vida Roble


Camino Vida RobleCarlsbad UnifiedSchool District


Carlsbad Crossfit

San Diego Hat

Nucci’s Produce

Chuao

Vineagogo

Luxtera

North CoastChurch

IcetownCarlsbad

Respironics

Firewire SurfCatalinaRestaurant Grp

BurgeonBeer Co.

L&L Printers

SpectrumAssembly

PowerSemiconductors

MilliporeSigna

VitecElectronics



Alga Norte Community Park


TraditionApartments

Pacific Ridge Elementary School

PoinsettiaElementary School

CassiaHeights

West Bluff PlazaShopping Center

Bitchin’Sauce

EEDAR

MafiosoClothingMercotec


Diagnostic Consulting Network

GTR Enterprises


PeekPackaging

LOFT

Z Customization

PC DesignsPatio & Rattan

Vinmetrica LOFTCapella Flavors

Finishing Touch Millwork

HulseOrthodontics Salter

Labs San DiegoPremier Training

Custopharm

DesignerProtein

Strata SkinSciences

ULI

Airgas

Form Factor



The Fields Speedminton


AssociationMgmt Grp

Arc Zone

RA Medical

Kart RacingTechonology

MA Tile & Stone

CustomMarkng

Dermesse

Alga Rd

Elan AlicanteApartments

El Fuerte St

CarilloElementary School

La Costa MeadowsElementary School



El Camino R

eal

Cassia Rd

Poinsettia Ln

-- LOOKING SOUTHWEST --Pacific Ocean

Batiquitos Lagoon

South Ponto State Beach


Kart RacingTechonology

CustomMarkng

Dermesse

TraditionApartments

CassiaHeights

HulseOrthodontics

Salter Labs


Custopharm

DesignerProtein

Strata SkinSciences

ULI

Airgas

Form Factor



The Fields

SpeedmintonScrooscoopFastener Co

AssociationMgmt Grp

Arc ZoneRA Medical

MA Tile & Stone

Finishing TouchMillwork


Carlsbad Crossfit

Nucci’s Produce

Chuao

Vineagogo

Luxtera

North CoastChurch

BurgeonBeer Co.

TraditionApartments

Bitchin’Sauce

EEDAR

MafiosoClothing


Diagnostic Consulting Network GTR Enterprises


PeekPackaging

San Diego Hat

IcetownCarlsbad Respironics

Firewire Surf


L&L Printers

SpectrumAssembly

SolutionReal Estate

Trans WorldMedia

CJ Products QualigenTarget OneTechnology

LocationSmart

Buffini & CoNatel Engineering

Inc. PuracypMachinetek

CorpVersum

ChelseaInvestment

CorpFashionphile

Aviara CommunityPark

PoinsettiaPlaza

Windsor atAviara

Aviara OaksMiddle School

North CoastCalvary Chapel

Aviara PkwyPark Hyatt Aviara Resort,

Golf Club & SpaFour Seasons

Residence Club at Aviara

Poinsettia VillageShopping Center

Harbor Pointe

Daybreak Community Church

RudvalisOrchids

South Carlsbad State Beach Campground


AREA OVERVIEW2385




Known as “The Village by the Sea,” the city of Carlsbad offers the charm of a European town with the conveniences of a large city. Carlsbad’s perfectly mild climate, combined with its location along the scenic North San Diego County

coast, make it an optimal place to live and work.

Carlsbad has become one of San Diego’s most thriving business communities with a robust industrial, research & development, office and retail market. Many new residential and commercial developments are underway to help support the major housing demand and the overwhelming demand from companies looking to move to or expand in the area. Carlsbad has a thriving action sports industry with over half of the action sports jobs in San Diego County currently located in Carlsbad. In addition, the city is home to innovative life science and high tech companies which include ViaSat (city’s largest employer), Thermo Fisher Scientific, TaylorMade, Ionis Pharmaceuticals and Genoptix.

Areas like the Carlsbad Research Center, Carlsbad Oaks Business Park and Carlsbad Raceway Business Park continue to be areas targeted by companies looking to move to the area.

Source: Carlsbad Chamber of Commerce

-- CARLSBAD --

Company/Organization NameViaSat, Inc.Thermo Fisher ScientificLEGOLAND CaliforniaCarlsbad Unified School DistrictOmni La Costa Resort & SpaTaylorMade-AdidasSGN NutritionGemological Institute of AmericaCity of CarlsbadOptumRX

TOP 10 EMPLOYERS - CARLSBAD

Carlsbad Overview San Diego County Overview Demographics

263 SUNNY DAYS PER YEAR

62 AVERAGE TEMPERATURE

11.85” AVERAGE YEARLY RAINFALL




-- SAN DIEGO COUNTY --

With breakthrough technology companies and research organizations, the largest military concentration in the world and a strong tourism industry, the San Diego region has one of the most diverse, dynamic economies in the country.

San Diego County is the second-most populous county in California and the fifth-most populous in the United States. Situated in Southern California, the San Diego area is known for its mediterranean climate, ethnic diversity, sprawling metropolis, and as a major hub for the country’s military industry. The culture of San Diego is influenced heavily by American and Mexican cultures due to its position as a border town, its large Hispanic population, and its history as part of Spanish America and Mexico.

The county’s largest continuous high-income urban area is a triangle from a first point on the northern edge of Carlsbad, a second point southeast of Escondido, and a third point on the southern edge of La Jolla. Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries.

Tourists are drawn to the region for everything from shopping to surfing as well as its mild climate. The area features many historical attractions, a thriving musical and theatrical scene, numerous notable special events, professional sports events, a varied cuisine, and a reputation as one of America’s premier centers of craft brewing, with over 100 craft/micro/nano breweries throughout the county that have been sweeping award ceremonies at national and international contests.

The San Diego visitor industry is the third largest industry in the county, and plays a huge role in the region’s economy, generating more than $704.6 million annually in state and local taxes and employing over 180,000 San Diegans - 13% of the jobs in the county. Approximately 34.3 million tourists visit San Diego every year, spending nearly $9.9 billion annually at San Diego businesses and produce $246 million in transient occupancy tax revenues.

The region is host to the second largest cruise ship industry in California which generates an estimated $2 million annually from purchases of food, fuel, supplies, and maintenance services. In 2008 the Port of San Diego hosted 252 ship calls and more than 800,000 passengers.

San Diego has a strong military presence with 16 naval and military installations of the U.S. Navy, U.S. Marine Corps, and the U.S. Coast Guard. It is the headquarters of the U.S. Navy’s Eleventh Naval District and is the Navy’s principal location for West Coast and Pacific Ocean operations. Naval Base San Diego, California is principal home to the Pacific Fleet (although the headquarters is located in Pearl Harbor). NAS North Island is located on the north side of Coronado, and is home to Headquarters for Naval Air Forces and Naval Air Force Pacific, the bulk of the Pacific Fleet’s helicopter squadrons, and part of the West Coast aircraft carrier fleet. The Naval Special Warfare Center is the primary training center for SEALs, and is also located on Coronado. The area contains five major naval bases and the U.S. Marines base Camp Pendleton. Marine Corps Base Camp Pendleton is the major West Coast base of the United States Marine Corps and serves as its prime amphibious training base. It is located on the Southern California coast, bordered by Oceanside to the south, San Clemente to the north, and Fallbrook to the east.

Education in San Diego is as innovative as many of its industries. The region has established public charter schools that have influenced primary and secondary education across the country. In addition, with its more than 80 universities – including the largest engineering school in the state – and world-class research institutions, San Diego is well-positioned to compete globally in attracting some of the most talented engineers, scientists and technology professionals in the world. The quality of life in the region, combined with strong technology-based industries, means only the best and brightest work and live here. Add to that a robust service sector with professionals in finance, marketing, sales, facilities management and other administrative positions, San Diego is a thriving, diverse economy.

Forbes rated San Diegoone of the “Coolest Cities”in 2014.



Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography page 1 of 1©2017, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.1332/-117.2401RS1

3172 Lionshead Ave1 mi radius 3 mi radius 5 mi radius

Carlsbad, CA 92010

POPU

LATI

ON

2017 Estimated Population 4,919 85,757 254,286

2022 Projected Population 5,137 89,729 265,811

2010 Census Population 4,677 77,163 229,942

2000 Census Population 1,885 57,764 178,616

Projected Annual Growth 2017 to 2022 0.9% 0.9% 0.9%

Historical Annual Growth 2000 to 2017 9.5% 2.9% 2.5%

2017 Median Age 37.9 40.1 37.9

HOUS

EHO

LDS

2017 Estimated Households 1,773 32,544 89,993

2022 Projected Households 1,856 34,147 94,352

2010 Census Households 1,700 29,613 82,256

2000 Census Households 772 23,318 65,059

Projected Annual Growth 2017 to 2022 0.9% 1.0% 1.0%

Historical Annual Growth 2000 to 2017 7.6% 2.3% 2.3%

RAC

E AN

DET

HNIC

ITY

2017 Estimated White 73.3% 70.3% 69.0%

2017 Estimated Black or African American 2.8% 2.9% 2.8%

2017 Estimated Asian or Pacific Islander 13.3% 9.5% 9.4%

2017 Estimated American Indian or Native Alaskan 0.3% 0.5% 0.6%

2017 Estimated Other Races 10.3% 16.9% 18.1%

2017 Estimated Hispanic 16.7% 26.1% 28.7%

INCO

ME 2017 Estimated Average Household Income $133,145 $109,990 $111,701

2017 Estimated Median Household Income $105,452 $85,259 $87,241

2017 Estimated Per Capita Income $48,001 $41,773 $39,606

EDUC

ATIO

N(A

GE

25+)

2017 Estimated Elementary (Grade Level 0 to 8) 2.1% 5.7% 6.4%

2017 Estimated Some High School (Grade Level 9 to 11) 1.4% 3.7% 4.7%

2017 Estimated High School Graduate 10.9% 16.0% 16.4%

2017 Estimated Some College 23.4% 20.8% 19.8%

2017 Estimated Associates Degree Only 8.2% 11.5% 11.6%

2017 Estimated Bachelors Degree Only 36.1% 27.1% 26.1%

2017 Estimated Graduate Degree 17.8% 15.2% 15.0%

BUSI

NESS 2017 Estimated Total Businesses 1,112 5,525 11,163

2017 Estimated Total Employees 18,964 73,274 130,054

2017 Estimated Employee Population per Business 17.1 13.3 11.7

2017 Estimated Residential Population per Business 4.4 15.5 22.8

EDU

CATI

ON

RACE

& E

THN

ICIT

YIN

COM

EH

OU

SEH

OLD

SPO

PULA

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1 Mile 3 Miles 5 Miles

BUSI

NES

S254,286 POPULATION - 5 MILES

90,000 HOUSEHOLDS - 5 MILES

$111,701 AVG HH INCOME - 5 MILES

96.40% HIGH SCHOOL GRADUATE17.8% GRADUATE DEGREE36.1% 4-YEAR COLLEGE31.6% 2-YEAR COLLEGE

EXCELLENT DEMOGRAPHICSNearly 255,000 people live within a five mile radius of the subject property.

DENSE RESIDENTIAL IN-FILL LOCATIONThere are almost 90,000 households within five miles of the subject property.

HIGH AVG HH INCOMEAt 25.1% of its population, Carlsbad is ranked #1 for the region with the largest proportion of median earnings of $100,000 or more.

STRONG WORK FORCECarlsbad has a well-educated work force, with 54% of its high school graduates achieving at least a Bachelor’s Degree.

HOME TO CORPORATE HEADQUARTERSCarlsbad is home to companies ViaSat (city’s largest employer), Callaway, Thermo Fisher Scientific, TaylorMade, Ionis Pharmaceuticals and Genoptix.

-- DEMOGRAPHICS--


Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

EXCLUSIVELY LISTED BY:

www.nnninvestmentgroup.com

BARR&BENNETTNETLEASEDINVESTMENTS

A Lee & Associates Team

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

RYAN BARRPrincipal

[email protected]

CA Lic#01338994

RYAN BENNETTPrincipal

[email protected]

CA Lic#01826517

CAPITAL MARKETS CONTACTSJEFF ABRAMSON

Principal760.929.7835

[email protected] Lic#00956805

GREG GERSHMANPrincipal

[email protected]

CA Lic#01909272

LOCAL MARKET EXPERTS

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