Trio. The CENTRAL SAN DIEGO OFFICE PORTFOLIO A 166,000-SQUARE-FOOT VALUE-ADD INVESTMENT OPPORTUNITY SORRENTO GOVERNOR KEARNY CORNERSTONE OFFICE CENTER

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1 CAPITAL MARKETS INSTITUTIONAL PROPERTIES CORNERSTONE OFFICE CENTER The Trio CENTRAL SAN DIEGO OFFICE PORTFOLIO SORRENTO GOVERNOR P A R K KEARNY A 166,000-SQUARE-FOOT VALUE-ADD INVESTMENT OPPORTUNITY FOUR GOVERNOR PARK VIEWRIDGE BUSINESS PARK

2 THE OFFERING As Exclusive Advisor, CBRE is pleased to present qualified investors with the exceptional opportunity to acquire The Trio Central San Diego Office Portfolio ( The Trio, Portfolio or Properties ), consisting of three institutional-quality, multi-tenant office buildings totaling 166,464 square feet and currently 8% leased. EXECUTIVE SUMMARY The Trio is offered for sale without an asking price and no debt to assume. Investors are invited to bid on each asset individually and as a portfolio. The Trio is an outstanding value-add opportunity: +7% NOI is projected to increase +7% over the next five years +14% In-place rents are +14% below market 0% Tenant rollover in next three years +8.7% Tremendous Mark-To-Market cap rate upside EXECUTIVE SUMMARY 2

3 INVESTMENT HIGHLIGHTS Approximately $1.4 million in capital upgrades for all three projects under current ownership (HVAC equipment, roofs, elevator modernization, etc.) WELL BELOW REPLACEMENT COST Opportunity to acquire an established Portfolio at a significant discount to replacement cost estimated at $30/SF DIVERSIFIED TENANT ROSTER The Trio is 8% leased to a diversified tenant roster (tech/ software, healthcare, engineering, legal, etc.) REPOSITION OPPORTUNITY The Trio is well suited for repositioning by completing a thoughtful and systematic capital improvement program THREE DESIRABLE SUBMARKETS Three well-located institutional quality, office buildings in vibrant San Diego submarkets (Sorrento Mesa, Governor Park and Kearny Mesa) IDEAL FLOOR PLATES The floor plates in all three projects are perfectly suited to provide flexible options for the majority of the market s Class B tenants that range in size from 2,00 SF to,000 SF EXCELLENT UPSIDE NOI is projected to increase by approximately 7% over the next five years 10% NO LARGE TENANT ROLL EXPOSURE Largest tenant is +10% of portfolio CORNERSTONE OFFICE CENTER The Trio 3

4 PORTFOLIO PROFILE CORNERSTONE OFFICE CENTER FOUR GOVERNOR PARK VIEWRIDGE BUSINESS PARK PORTFOLIO TOTAL Address 6020 Cornerstone Court West Shoreham Place 4711, 471 & 4719 Viewridge Avenue Various Submarket Sorrento Mesa Governor Park Kearny Mesa SM, GP & KM Project Size: 43,210 0,41 72, ,464 # of Bldgs./# of Floors: One (1) / Three (3) Two (2) / Two (2) Three (3) / Two (2) Various Year Built: % Leased: 97% 83% 80% 8% Parking Ratio: 4.0:1,000 USF 3.7:1,000 USF 4.1:1,000 USF 4.0:1,000 USF Site Area: 1.8 acres 2.70 acres 3.70 acres 7.98 acres SIGNIFICANT TENANTS TENANT NAME SIZE (RSF) % OF PROJECT % OF PORTFOLIO LEASE EXPIRATION Cornerstone Office Center Motive Interactive 7, % 4.4% Apr--21 Rohm Semiconductor 4, % 2.7% Jun-20 Four Governor Park Bridge Hospice, % 3.2% Jul-21 Sacco-Cooke Unlimited 4,47 8.8% 2.7% Apr-19 Viewridge Business Park Yardi 16, % 10.0% Apr-19 Coastal Credit 10, % 6.% May-21 CORNERSTONE OFFICE CENTER FOUR GOVERNOR PARK VIEWRIDGE BUSINESS PARK EXECUTIVE SUMMARY 4

5 Oceanside 78 1 MARKET HIGHLIGHTS CLASS B DOMINANCE 78 Positive Class B Market Momentum: The San Diego County Class B segment has continued to outperform the overall office market and has recorded over 66% of all positive net absorption since 1Q17. Carlsbad San Marcos Escondido CUMULATIVE CLASS B RENT GROWTH & FORECAST Amid the extraordinary Class B rent growth over the past three years, CBRE Econometric Advisors projects favorable office rent growth for Central San Diego. Sorrento Mesa Governor Park Kearny Mesa 1Q1-4Q17: 26% 21% 8% Encinitas Rancho Santa Fe Rancho Bernardo Forecast: 9% 10% 12% Solana Beach INVENTORY DISTRIBUTION Each asset within The Trio is well positioned to capitalize on a strengthening market and cater to the majority of the market s Class B tenant base. Class A Class B Class C Del Mar Torrey Hills 6 1 Scripps Ranch SORRENTO MESA 37% 9% 4% GOVERNOR PARK 41% 2% 7% KEARNY MESA 2% 1% 22% La Jolla Torrey Pines UTC Governor Park 2 Sorrento Mesa 80 2 Pacific Beach 1 Kearny Mesa SORRENTO MESA GOVERNOR PARK KEARNY MESA Class A 2,022,604 SF 364,988 SF 2,016,299 SF Class B 2,939,19 SF 06,948 SF 4,228,974 SF Class C 06,796 SF 20,000 SF 2,010,767 SF Total RBA,468,9 SF 891,936 SF 8,26,040 SF 8 Point Loma Mission Valley 163 Downtown The Trio Coronado 80

6 A listing from CBRE Capital Markets Office West, led by: INVESTMENT ADVISORS DEBT & STRUCTURED FINANCE LOUAY ALSADEK Lic HUNTER ROWE Lic BILL CHILES Lic SCOTT PETERSON Lic The Trio LEASING MARKET EXPERTS SCOTT KINCAID Lic TONY RUSSELL Lic tony.russell@am.jll.com RICHARD GONOR Lic richard.gonor@am.jll.com CENTRAL SAN DIEGO OFFICE PORTFOLIO NICK BONNER Lic nick.bonner@cbre.com BRANDT RIEDMAN Lic brandt.riedman@am.jll.com SORRENTO GOVERNOR P A R K KEARNY CAPITAL MARKETS OFFICE WESTERN U.S. Denver Tim Richey Mike Winn Chad Flynn Los Angeles Todd Tydlaska Sean Sullivan Mike Longo Orange County Anthony Delorenzo Phoenix Barry Gabel Portland Trevor Kaforury Charles Safley San Diego Louay Alsadek Hunter Rowe San Francisco Russell Ingrum Tyler Meyerdirk Seth Mckinnon Seattle Tom Pehl Lou Senini Silicon Valley Joe Moriarty Scott Prosser Jack Depuy Debt & Structured Finance Brad Zampa Brady O Donnell Bruce Francis Mark McGovern Scott Peterson Michael L. Walker Val Achtemeier CAPITAL MARKETS INSTITUTIONAL PROPERTIES 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.