OFFERING MEMORANDUM 5685-5699 LA JOLLA BLVD & 407 BIRD ROCK AVE LA JOLLA, CALIFORNIA 12 SPACIOUS RESIDENTIAL UNITS & 7 STREET FRONT RETAIL SHOPS INCLUDES RECORDED FINAL MAP FOR CONDOMINIUM CONVERSION
EXCLUSIVE MARKETING ADVISORS PHILIP BUCKLEY Vice President Lic. 01209801 +1 858 646 4706 philip.buckley@cbre.com J. KEVIN MULHERN Senior Vice President Lic. 00804871 +1 858 646 4723 kevin.mulhern@cbre.com RACHEL PARSONS Senior Associate Lic. 01335449 +1 858 646 4787 rachel.parsons@cbre.com WWW.LAJOLLASEAVIEW-CBRE.COM
TABLE OF CONTENTS 1EXECUTIVE SUMMARY Page 4 2PROPERTY DESCRIPTION Page 8 3FINANCIAL ANALYSIS Page 16 4MARKET OVERVIEW Page 20
1 EXECUTIVE SUMMARY
Bird Rock Ave Chelsea Ave Forward St La Jolla Blvd La Jolla Hermosa Ave OFFERING OVERVIEW CBRE is pleased to offer for sale 100% fee interest in La Jolla Seaview, an exceptional investment opportunity comprised of 12 spacious residential units with ocean views, and 7 prime street front retail units, located in the heart of the Bird Rock neighborhood of La Jolla, one of Southern California s premier coastal communities. Built in 1986, and ideally situated on an 11,300 SF corner lot, La Jolla Seaview consistently operates at full occupancy and enjoys secured access, including 30 subterranean gated parking spaces and 5 street level spaces. There are immediate opportunities to increase returns through interior renovation, short term rentals, and a recorded Final Map for Condominium Conversion. Located on the main artery running through the Bird Rock community of La Jolla, and connecting Pacific Beach to the La Jolla Village, La Jolla Boulevard services approximately 22,000 vehicles per day. In 2008 the city added 5 pedestrian friendly street roundabouts to slow traffic creating the ideal live-walk environment. As a result, La Jolla Boulevard is now safer, quieter, healthier, and wealthier. Noise levels were reduced 77 percent, and retailers have reported a 35% increase in sales. This stretch of residential living and retail shops is now considered one of the best live-walk corridors in Southern California. 6 LA JOLLA SEAVIEW
INVESTMENT HIGHLIGHTS Premier La Jolla Investment Property Ideally Located in the Heart of the Bird Rock Community Steps to some of the County s Best Beaches, Restaurants, Shopping, and Entertainment Fully Occupied Residential Units Featuring Ocean Views, Ideal for High End Renovation Fully Occupied Street Front Retail Shops with Long-Term High Quality Tenants Recorded Final Condominium Map for Future Sale Large Modern Open Concept Floor Plans Abundant Secured Access Parking Immediate Rental Upside and Renovation Potential Engineering Plans to Extend Unit Balconies Prime Corner Lot Featuring 1986 Construction Excellent Short Term or Vacation Rental Potential INVESTMENT SUMMARY PRICE: $10,900,000 ADDRESS: 5685-5699 La Jolla Blvd & 407 Bird Rock Ave La Jolla, CA 92037 NUMBER OF UNITS: 12 (Residential - 9,638 SF); 7 (Retail - 6,737 SF) OCCUPANCY: 100% YEAR BUILT: 1986 PARCEL NUMBER (SIZE): 357-432-36 (±0.30 Acres) SQUARE FOOTAGE: ±11,300 (Land Area); ±16,375 (Building Area) PARKING: 35 Total Spaces: 30 Secured Subterranean Spaces; 5 Surface Spaces *Property Includes Recorded Final Map for Condominium Conversion Executive Summary 7
2 PROPERTY DESCRIPTION
RESIDENTIAL UNIT MIX UNIT AVG SF LEASE COMM DATE LEASE EXPIRATION CURRENT RENT CBRE MARKET RENT RENOVATION W/D OCEAN VIEW PARKING 2a 1BR + 1BA 660 9/1/2016 8/31/2017 $1,755 $1,895 - - Ocean Views Single 2b 1BR + 1BA 650 10/1/2013 9/15/2017 $1,711 $1,895 - - Ocean Views Single 2c 2BR + 2BA 950 6/20/2016 8/15/2017 $2,364 $2,550 Hardwood Flrs - Ocean Views Tandem 2d 2BR + 2BA 965 8/28/2015 8/15/2017 $2,232 $2,550 - Full-Size Largest 2BR, Ocean Views Tandem 2e 2BR + 2BA 824 6/23/2014 6/30/2018 $2,188 $2,450 - - Ocean Views Tandem 2f 2BR + 2BA 770 9/10/2015 8/14/2017 $2,389 $2,450 - - Smallest 2BR, Large Deck, Ocean Views Tandem 3a 1BR + 1BA 660 12/1/2016 7/15/2018 $2,225 $2,350 Renovated Full-Size Ocean Views 3b 1BR + 1BA 650 9/1/2015 7/31/2018 $1,780 $1,995 - - Ocean Views 3c 2BR + 2BA 950 2/19/2016 7/31/2018 $2,478 $2,750 - - Great Ocean Views Side by Side 3d 2BR + 2BA 965 4/28/2017 4/30/2018 $3,170 $3,200 Renovated Full-Size Largest 2BR, Great Ocean Views Side by Side 3e 2BR + 2BA 960 4/23/2017 4/30/2018 $3,095 $3,150 Renovated Full-Size Great Ocean Views Side by Side 3f 2BR + 2BA 770 1/4/2016 6/15/2017 $2,795 $2,850 Renovated - Smallest 2BR, Great Ocean Views Tandem TOTALS: 9,774 $28,182 $30,085 TOTALS ANNUAL: $338,184 $361,020 *Current Rents include renewals in process *Rent roll date: June 27, 2017 10 LA JOLLA SEAVIEW
RETAIL UNIT MIX UNIT TENANT AVG SF COMM DATE LEASE EXPIRATION MONTHLY RENT ANNUAL RENT SECURITY DEPOSIT BOE CHARGE STORAGE RENT TOTAL MONTHLY 5685 Carrell Bolton's Needlepoint 1,372 10/1/2006 9/30/2017 $2,579 $30,948 $2,127 $783.39 - $3,362.39 5687 Bird Rock Fine Wines LLC 976 10/3/2011 9/30/2018 $2,191 $26,289 $2,050 $643.28 $30 $2,864.03 5689 Birdrock Pilates 1,296 1/1/2009 1/31/2019 $3,110 $37,320 $2,673 $853.84 - $3,963.84 5691 Fantasy Nails 845 3/1/2002 11/6/2021 $2,028 $24,336 $1,250 $556.76 - $2,584.76 5693 The Pace Company 565 7/15/1998 7/14/2021 $2,050 $24,600 $3,000 $372.07 $30 $2,452.07 5695 Edward Jones Co LP 797 1/1/2008 12/31/2022 $2,080 $24,230 $45 $453.39 - $2,472.52 5699 Universal Travel 886 6/1/2012 11/30/2018 $1,889 $22,671 $1,796 $583.81 - $2,473.06 Storage for Unit 3 - - - $35 - - - $35 $35.00 TOTALS: 6,737 $15,962 $4,247 $20,208 TOTALS ANNUAL: $191,544 $50,958 $242,496 Current monthly rent for Edward Jones & Co. (#5695) is $2,019 with scheduled rent increase of $2,080 to begin 1/1/2018. Universal Travel (#5699) is in the process of renewing with a modest increase to current rent. *Rent roll date: June 27, 2017 Property Description 11
RESIDENTIAL SITE PLAN SECOND & THIRD FLOORS 1 Bedrooms 4 Units 2 Bedrooms 8 Units 12 LA JOLLA SEAVIEW
FLOOR PLANS 1 BEDROOM + 1 BATH 1 BEDROOM + 1 BATH 2 BEDROOM + 2 BATH 2 BEDROOM + 2 BATH Property Description 13
FLOOR PLANS 2 BEDROOM + 2 BATH 2 BEDROOM + 2 BATH 14 LA JOLLA SEAVIEW
Property Description 15
3 FINANCIAL ANALYSIS
PROPERTY FINANCIAL ANALYSIS INVESTMENT SUMMARY Price $10,900,000 Number of Units 12 Residential & 7 Retail Price Per Unit $573,684 Price Per SF $665 Current Cap Rate 3.63% Market Cap Rate 3.83% Year Built 1986 Lot Size 11,300 Building Size 16,375 SCHEDULED INCOME - APARTMENTS UNIT NUMBER BD/BA SF CURRENT RENTS [1] ANNUALIZED MARKET RENT ANNUALIZED 2a 1+1 660 $1,755 $21,060 $1,895 $22,740 2b 1+1 650 $1,711 $20,532 $1,895 $22,740 2c 2+2 950 $2,364 $28,368 $2,550 $30,600 2d 2+2 965 $2,232 $26,784 $2,550 $30,600 2e 2+2 824 $2,188 $26,256 $2,450 $29,400 2f 2+2 770 $2,389 $28,668 $2,450 $29,400 3a 1+1 660 $2,225 $26,700 $2,350 $28,200 3b 1+1 650 $1,780 $21,360 $1,995 $23,940 3c 2+2 950 $2,478 $29,736 $2,750 $33,000 3d 2+2 965 $3,170 $38,040 $3,200 $38,400 3e 2+2 960 $3,095 $37,140 $3,150 $37,800 3f 2+2 770 $2,795 $33,540 $2,850 $34,200 TOTAL RENT 9638 $28,182 $338,184 $30,085 $361,020 OTHER INCOME $215 $2,580 $270 $3,240 GROSS SCHEDULED INCOME $340,764 $364,260 [1] Current Rents include renewals in process 18 LA JOLLA SEAVIEW
SCHEDULED INCOME - RETAIL UNIT NUMBER / TENANT SF CURRENT RENTS ANNUALIZED INCOME ANNUALIZED INCOME 5685 / C B S Needlepoint 1,372 $2,579 $30,948 $30,948 5687 / Bird Rock Fine Wine 976 $2,191 $26,292 $26,292 5689 / White Light Pilates 1,296 $3,110 $37,320 $37,320 5691 / Fantasy Nails 845 $2,028 $24,336 $24,336 5693 / The Pace Company 565 $2,050 $24,600 $24,600 5695 / Edward Jones & Co [2] 797 $2,080 $24,960 $24,960 5699 / Universal Travel [3] 886 $1,889 $22,668 $22,668 GROSS SCHEDULED INCOME 6,737 $15,927 $191,124 $191,124 FINANCIAL SUMMARY ACTUAL MARKET Gross Scheduled Income $531,888 $555,384 Vacancy 3% ($15,957) 3% ($16,662) Estimated CAM Reimbursement $97,000 $97,000 Effective Gross Income $612,931 $635,722 Operating Expenses Repairs & Maintenance $40,000 $40,000 Utilities $17,000 $17,000 Property Management @ 4% $20,637 $21,549 Property Insurance $10,000 $10,000 Property Taxes $129,421 $129,421 Total Operating Expenses ($217,058) ($217,970) Operating Expenses as % of EGI 42.1% 40.5% NET OPERATING INCOME $395,873 $417,753 [2] Edward Jones & Co. (#5695) rent will be effective 1/1/2018. [3] Universal Travel (#5699) is in process of renewing with a modest increase to current rent. Financial Analysis 19
4 MARKET OVERVIEW
Retail Along La Jolla Blvd La Jolla Children s Pool LA JOLLA SUBMARKET OVERIVEW La Jolla is located in a portion of the city of San Diego and is well known for its Riviera lifestyle, including sheltered beaches and coves, streets lined with high-end boutiques, resort hotels, fine dining options, quaint shops, posh office buildings and expensive homes. It is considered to be one of the most prestigious residential addresses in San Diego County. La Jolla Boulevard is the main artery running through the Bird Rock community of La Jolla, and connecting Pacific Beach to the La Jolla Village, and services approximately 22,000 vehicles per day. In 2008 the city added 5 new street roundabouts to slow traffic for a pedestrian friendly walking environment. As a result, La Jolla Boulevard is now safer, quieter, healthier, and wealthier. Noise levels were reduced 77 percent, and retailers have reported a 35% increase in sales. This stretch of residential living and retail shops is now considered one of the best live-walk corridors in San Diego County. LA JOLLA DEMOGRAPHICS (92037) POPULATION DEMOGRAPHICS Total Population 41,389 Male Population 20,376 Female Population 21,013 2010-2016 Population Growth Rate 0.89% 2016-2021 Population Growth Rate 1.09% Median Age 44.3 Female Population 50.8% Male Population 49.2% 22 LA JOLLA SEAVIEW
La Jolla Shores Park Aerial View of Bird Rock Area NUMBER OF HOUSEHOLDS Total Households 18,357 2010-2016 Household Growth Rate 0.64% 2016-2021 Househould Growth Rate 0.97% Average Household Size 2.19 Average Household Income $150,173 OCCUPATIONAL EMPLOYMENT & EDUCATION STATISTICS White Collar 17,157 (84.7%) Blue Collar 3,094 (15.3%) Some College 3,881 Associate s Degree 1,196 Bachelor s Degree 10,923 Graduate or Professional Degree 13,265 Some College 12.4% Associate s Degree HH Income $100K+ 49.6% HH Income <$100K 50.4% Graduate Degree 42.2% 3.8% Bachelor s Degree 34.8% Market Overview 23
DOWNTOWN CORONADO MISSION BAY PACIFIC BEACH La Jolla Blvd 24 LA JOLLA SEAVIEW
Duke s La Jolla Mount Soledad Veterans Memorial La Jolla Cove Beach Girard Plaza in Downtown La Jolla Market Overview 25
La Jolla Tide Pools Prospect Street in Downtown La Jolla La Jolla Country Club 26 LA JOLLA SEAVIEW
UTC LA JOLLA Market Overview 27
SAN DIEGO COUNTY MARKET OVERVIEW ENVIABLE LIFESTYLE San Diego County is considered one of the nation s most desirable areas to live, work and play. With its near perfect weather, lively downtown, high-income employment, 70 miles of pristine beaches, eclectic neighborhoods, numerous golf courses and endless hiking/biking trails, the county offers its 3.33 million residents a truly enviable lifestyle. ABUNDANT ENTERTAINMENT VENUES Visitors and residents alike appreciate world famous attractions like the San Diego Zoo, with its collection of over 4,000 animals, 800 different species; Sea World, with its numerous aquatic shows; and the Safari Park, offering the chance to see a multitude of wild animals in natural settings. Not to be forgotten is the world renowned Scripps Aquarium. Balboa Park is a must see with a long list of museums and attractions including the Reuben H. Fleet Science Center, San Diego Natural History Museum, San Diego Museum of Man, Museum of Photographic Arts, San Diego Air & Space Museum, San Diego Automotive Museum, San Diego Hall of Champions, the San Diego Model Railroad Museum and the prestigious Old Globe theater. San Diego is a sports lover s paradise, home to the San Diego Chargers, the San Diego Padres as well as numerous college teams. Adding to their enjoyment are various professionally sanctioned golf and tennis tournaments held throughout the year. $200 BILLION GROSS REGIONAL PRODUCT San Diego County reached a Gross Regional Product of $206.8 Billion in 2015. San Diego County maintains an employment base of over 1.44 million and current unemployment rate of 4.2% as compared to 5.0% for the State of California (December 2016). DIVERSE ECONOMIC SECTORS San Diego County is fortunate to have a diverse economy. The three largest sectors are defense, manufacturing, and tourism. Strong components of the local economy are education, the military and biotech/life sciences. 28 LA JOLLA SEAVIEW
The county s military presence has attracted numerous major national defense contractors that are now headquartered in San Diego County including: General Atomics, NASSCO, SAIC, General Dynamics, and BAE Systems. It is also home to the largest Naval fleet in the world and has the largest concentration of military facilities in the world with military bases such as Marine Corps Camp Pendleton, Marine Corps Air Station Miramar and Naval Base Coronado. All told, the impact of the defense/military on the San Diego County economy exceeds $45 billion dollars annually and 328,000 jobs.* (*San Diego Military Advisory Council) MAJOR EMPLOYERS The majority of San Diego County s manufacturing consists of ship construction (the Port of San Diego has the only major submarine and shipbuilding yards on the West Coast), machinery manufacturing and computer and electronic production. San Diego County has the highest concentration of wireless employment in the US, with over 850 communications firms. Qualcomm Incorporated, which was founded and is headquartered in San Diego, is the largest technology employer in San Diego County with over 13,500 employees. It is estimated that technology jobs make up 12% of the private sector jobs in the county. San Diego County s tourism industry is one of the largest in the world; reportedly hosting 34.3 million visitors annually, with estimated spending of $9.9 billion, which translates into an economic impact of over $16.4 billion new dollars generated for the economy. Tourism is a source of employment for approximately 180,900 county residents. The Biotech and Life Sciences industry consists of a wide variety of companies involved in research as well as manufacturing. The presence of University of California, San Diego and other research institutions makes San Diego County one of the top research clusters in the world. San Diego County is home to more than 500 biotechnology/medical companies, including name brands such as Pfizer, Genentech, Amylin, Johnson & Johnson, making it the 3rd largest global biotech cluster in the US. It is estimated there are over 36,000 people employed in this highly paid industry. It is the combination of established industries like the military, enduring industries like tourism, with emerging fields like biotech which make San Diego County one of the most highly sought-after real estate investment opportunities in the nation. SAN DIEGO COUNTY MAJOR EMPLOYERS LIST COMPANY EMPLOYEES TYPE US Department of Defense 118,127 Government / Military UC San Diego 30,671 Education Sharp Healthcare 17,809 Health Care Scripps Health 14,863 Health Care / Hospital Qualcomm Inc 12,186 Tech / Communications City of San Diego 11,347 Government Kaiser Permanente 8,406 Health Care UC San Diego Health System 7,438 Health Care San Diego Community College District 5,902 Education General Atomics 5,480 Defense Rady Children s Hospital - San Diego 5,129 Health Care / Hospital YMCA of San Diego County 5,102 Education San Diego State University 5,037 Education Sempra Energy 5,025 Energy Palomar Health 4,467 Health Care Source: San Diego Business Journal Book of Lists 2017 Market Overview 29
COMPELLING CHARACTERISTICS OF SAN DIEGO COUNTY S MULTIFAMILY MARKET PREMIER RENTAL MARKET San Diego County is widely recognized as one of Southern California s premier residential and commercial markets. Its close proximity to other significant metropolitan markets in Southern California and excellent quality of life attract leading employers and a highly skilled labor pool. San Diego County residents are among the most affluent and best educated in the nation and the corporate base includes the headquarters of two Fortune 500 companies. Strong demographics, a diverse economy, superb educational institutions and desirable amenity base create exceptional long-term multifamily fundamentals in San Diego County. STRONG MULTIFAMILY FUNDAMENTALS The prestigious communities that make up San Diego County s multifamily market are among the most desirable in the country and demonstrate consistently strong rental demand. With moderate construction activity projected during the next three years, San Diego County occupancy levels are expected to remain in excess of 95 percent. With an average rate of $1,943 in the third quarter of 2016, San Diego County rates are 12th in the nation for highest apartment rents. With population, personal income and employment growth as the primary economic drivers of apartment demand, San Diego County is healthy on all fronts and ideally positioned for long-term rental growth. CONSISTENT, LONG-TERM RENT GROWTH San Diego County historically has been and remains consistent in rental growth, with 5.5% annual growth in 2016. Since 2011, annual average apartment rent increases in the county have been 2.9% percent. Rents are forecasted to increase an additional 3.4% annually over the next 3 years. INCREASING JOB CREATION DRIVING APARTMENT DEMAND San Diego County gained 28,900 payroll jobs over the past 12 months to its existing base of over 1.44 million workers. CBRE Econometric Advisors forecast net employment growth of 2.0%, or ±40,000 jobs in San Diego County over the next 12 months, based on the region s strong sectors in bioscience and medical research, health services as well as its diverse professional sectors. A rule of thumb for apartment construction when forecasting demand is that for every five jobs created, one new apartment is required. The formula equates to number of new jobs Household size x Percentage of Apartment Residents = New Apartment Demand. 30 LA JOLLA SEAVIEW View of Downtown San Diego Torrey Pines Golf Course
POPULATION GROWTH 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 F 2018 F Growth 26,000 39,000 43,200 38,300 38,800 36,900 40,500 31,300 27,500 29,400 30,300 % Change 0.9% 1.3% 1.4% 1.2% 1.2% 1.2% 1.3% 1.0% 0.8% 0.9% 0.9% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% OCCUPANCY TRENDS 96.5% 96.0% 95.5% 95.0% 94.5% 94.0% 93.5% 93.0% 92.5% 92.0% 91.5% Occupancy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F Occupancy 96.0% 95.8% 95.4% 94.6% 95.1% 95.6% 95.3% 94.9% 95.3% 93.1% 96.1% 95.7% Source: Moody s (April 2017) Source: Axiometrics MULTIFAMILY RENTAL GROWTH EMPLOYMENT GROWTH $2,000 8% 6% $1,500 4% 30,000 8.0% $1,000 2% 0% 20,000 6.0% $500-2% 10,000 4.0% -4% 0 2.0% $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F Avg. Rent $1,435 $1,492 $1,518 $1,447 $1,470 $1,512 $1,563 $1,615 $1,681 $1,768 $1,872 $1,924 % Change 6.7% 4.0% 1.7% -4.7% 1.6% 2.9% 3.4% 3.6% 4.1% 6.9% 5.8% 2.8% -6% -10,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 F New Jobs -6,200-4,400 10,200 32,700 33,600 28,700 39,800 36,200 24,700 Unemp Rate 9.5% 10.3% 9.8% 8.7% 7.4% 6.2% 5.4% 5.2% 4.6% 0.0% Source: Axiometrics Source: Moody s (April 2017) 's (April 2017) Market Overview 31
COMPELLING CHARACTERISTICS OF SAN DIEGO COUNTY S MULTIFAMILY MARKET SAN DIEGO FOR-SALE HOUSING MARKET The year to date 2017 average price of a single family home in San Diego County is $741,272, with attached homes averaging $432,266. With only 24% affordability, increased down payments and more stringent underwriting/credit criteria, home ownership is increasingly out of reach for most of San Diego s residents. SAN DIEGO COUNTY BY THE NUMBERS 2016 Estimated Population 3,311,903 2021 Projected Population 3,494,839 2016-2021 Population Growth 5.5% 2016 Estimated Households 1,160,824 2021 Projected Households 1,226,696 2016-2021 Household Growth 5.7% 2016 Estimated Average Household Income $89,932 Owner Occupied 51% Renter Occupied 43% 2016 Average Single Family Home Price $734,387 2016 Average Attached Home Price $447,372 Source: FastReport 2017; MLS SAN DIEGO COUNTY INVESTMENT MARKET San Diego County s sound fundamentals, lack of available new development sites, and the current favorable debt environment have resulted in an increased demand to acquire irreplaceable apartment home communities. The lack of conventional multifamily product available for sale has led to an increasingly competitive environment, driving asset values upward. San Diego rents grew 4.7% from 4Q16 to 1Q17, bringing the current average to $1,895 or $2.08 per square foot. Occupancy in San Diego County is currently 95.8%. SAN DIEGO COUNTY RENTAL TRENDS Average Market Rent $1,895 / $2.08 Studio / 1 Bedroom $1,682 / $2.41 2 Bedroom $2,005 / $1.98 3 Bedroom $2,487 / $1.92 Average Occupancy 95.8% Number of Units (5+ Units) 292,647 Source: CBRE Econometric Advisors 1Q17 SAN DIEGO COUNTY AVERAGE SINGLE FAMILY HOME PRICES $850,000 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017ytd Sales Price $724,44 $737,64 $529,24 $453,13 $497,36 $482,63 $504,42 $594,08 $644,45 $674,87 $734,38 $741,27 % Change 3% 1.8% -28.3% -14.4% 9.8% -3.0% 4.5% 17.8% 8.5% 4.7% 8.8% 0.9% 30% 20% 10% 0% -10-20 -30-40 Source: MLS 32 LA JOLLA SEAVIEW La Jolla
View of Downtown San Diego Sea World San Diego Petco Park San Diego Zoo Market Overview 33
AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENT CBRE, 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. This 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. 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. 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. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc. 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. 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 34 LA JOLLA SEAVIEW
12 SPACIOUS RESIDENTIAL UNITS & 7 STREET FRONT RETAIL SHOPS INCLUDES RECORDED FINAL MAP FOR CONDOMINIUM CONVERSION EXCLUSIVE MARKETING ADVISORS PHILIP BUCKLEY Vice President Lic. 01209801 +1 858 646 4706 philip.buckley@cbre.com J. KEVIN MULHERN Senior Vice President Lic. 00804871 +1 858 646 4723 kevin.mulhern@cbre.com RACHEL PARSONS Senior Associate Lic. 01335449 +1 858 646 4787 rachel.parsons@cbre.com CBRE 2017 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. 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.