TREENA ST - images2.loopnet.com...Proximity to Orange County 1 h 43 (88 mi) / Los Angeles approx. 2 h 35 min (127 mi) (Source: San Diego Regional EDC) connectivity #2 safest city in

C A P I T A L M A R K E TI N V E S T M E N T P R O P E R T I E SCONFIDENTIAL OFFERING MEMORANDUM

T R E E N A S T

LOCAL AMENITIES AND NEIGHBORS

LAKE MIRAMAR (Fishing, Jogging Trails, Hiking, Kyaking, etc...)

SCRIPPS RANCH

MIRAMAR AIRFORCE BASE

PACIFIC OCEAN

SORRENTO MESA

LA JOLLA

MIRAMAR

DEL MAR

STONECREEK DEVELOPMENT 5,500 Residential Units

1,000,000 SF Commercial

LOCAL AMENITIES AND NEIGHBORS

T R E E N A S T

15

CBRE BROKER LIC. 004009987 ©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.

Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. All marks displayed on this document are the property of their respective owners.

T R E E N A S T

INVESTMENT OVERVIEW

PROPERTY OVERVIEW

AREA OVERVIEW

MARKET OVERVIEW

TENANT OVERVIEWS

FINANCIAL OVERVIEW

REPLACEMENT COST

TABLE OF CONTENTS

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10

20

28

32

36

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CAPITAL MARKET EXPERTS

MATT POURCHOLic. 01705763+1 858 546 [email protected]

ANTHONY DELORENZOLic. 01706686+ 1 949 725 [email protected]

GARY STACHELic. 00773736+1 949 725 [email protected]

DOUG MACKLic. 01804065+1 949 725 [email protected]

DEBT & STRUCTURED FINANCE

SCOTT PETERSONLic. 01383970 + 1 858 546 [email protected]

INVESTMENT PROPERTIES - SO CAL

Anthony DeLorenzoGary Stache

Doug MackMichael Spiezia

Mark Shaffer

Orange County Los AngelesBill Maher Kevin Foley

LA South BayThomas Adelson

LA WestSammy Cemo

Inland EmpireMatt Pourcho

San Diego

T R E E N A S T

INVESTMENT OVERVIEW

The building can be made 50% leased or 100% vacant

OCCUPANCY

www.ipsocal.com/sdtsWEBSITE

40,946 SF / 0.94 Acres LAND SIZEPROPERTY ADDRESS

10721 Treena St. San Diego, CA 92131

$3,862,100 ($220/PSF)ASKING PRICE

17,555 SFPROJECT SIZE

INVESTMENT SUMMARY

INvESTMENT OvERvIEw71071 TREENA STREET

EXCEPTIONAL OWNER/USER OPPORTUNITY:

• Highly improved freestanding office building offering a

buyer two occupancy options.

1. Buyer to occupy the entire 17,555 SF building.

2. Buyer to occupy one of the two floors and the

seller will lease back one floor for five years with

a right to renew.

• The building has recently undergone substantial im-

provements making it a “best of class” building with-

in the submarket (new exterior paint, wood paneling,

HVAC repairs, fresh landscaping and signage).

• Showers, lockers and workout room are located on the

first floor.

• Extensive window line with excellent views on the sec-

ond floor.

HIGHLY ACCESSIBLE, AMENTITY RICH, GROWTH AREA

• Excellent Ingress/Egress: Immediately adjacent to Mira

Mesa Blvd with direct access to the I-15 Freeway pro-

viding access to all of Southern California.

• Amenity Rich Location: 100 yards away from a large

retail center offering numerous restaurants and shop-

ping options. The building is also across the freeway

from the 2nd largest retail center in the I-15 corridor

with over 800,000 SF of retail amenities. Within 3

miles of the site, there are 208 restaurants, 98 banks,

71 grocery stores and 13 hotels.

Located 1.5 miles from Lake Miramar, a popular

spot for bicycling, jogging, walking, rollerblad-

ing, picnicking, kayaking and fishing.

• Largest Growth Area in Central San Diego: The build-

ing sits between the three largest proposed mixed use

developments in the I-15 and Central San Diego.

• Stone Creek Development – 5,500 new res-

idential units, 1M SF of commercial space,

150 room hotel, parks and open space. It will

increase the population by 17% to 110,000

by 2030.

• The Watermark – Over 900,000 SF of retail,

office and hotel.

• New Mixed Use Shopping Center – Starbucks,

Jamba Juice and 170 Apartments.

• Scripps Ranch Tech Park - 55-acre business

park is fully entitled and master-planned

for corporate office and industrial tenants -

www.scrippsranchtechpark.com.

• Large tenants in the I-15 corridor, including Teradata,

Northrop Grumman and General Atomics are adding

jobs to further expand their footprint in the I-15 Cor-

ridor. The building is close proximity to San Diego’s

fastest growing companies and most recognizable

employers such as Google, Intel, Qualcomm, General

Atomics, Northrup Grumman, AT&T, Sony, Broadcom

and National University.

• Excellent demographics: Within a 5-mile radius, the

average annual household income is over $115,000.

SIGNIFICANTLY BELOW

THE ESTIMATED REPLACEMENTCOST OF $5,824,648 ($332/PSF)

INVESTMENT HIGHLIGHTS

8 INvESTMENT OvERvIEw10721 TREENA STREET

INvESTMENT OvERvIEw10721 TREENA STREET 9

PROPERTY OVERVIEW

PROPERTY ADDRESS10721 Treena Street, San Diego, CA. 92131

17,555 SFBUILDING SIZE

40,946 SF / 0.94 Acres LAND SIZE

319-190-14-00APN

1981YEAR BUILT

54 spacesPARKING

Concrete slab on grade. Wood frame.CONSTRUCTION TYPE

EXTERIOR FINISHES, DOORS & WINDOWSCommercial grade carpeting and travertine tile. Suspended ceiling tiles. Painted wood siding. Steel frame partitions with painted drywall.

Packaged Systems all units 1 year old or less, 10 split systems (8 units 1 year old or less, 1 unit 2yrs old, 1 unit 6 years old)

HVAC SYSTEM

IP-2-1ZONING

Built up roof cover. Woof frame support.ROOFING SYSTEM

Two (2)STORIES

DMP System with radio backup. Covers Fire & burglary.

ALARMS SYSTEM

One (1) passenger elevatorELEVATOR TYPE

Silent Knight 5700 fire alarmLIFE SAFETY/FIRE PROTECTION

BUILDING AND PARKING LOT LIGHTINGFluorescent and incandescent lighting.

PROPERTY DESCRIPTION

PROPERTy OvERvIEw10721 TREENA STREET 11

LOCAL AMENITIES AND NEIGHBORS

T R E E N A S T

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MIRA MESA BLvD. MIRA MESA BLvD.

SITE PLAN

PROPERTy OvERvIEw10721 TREENA STREET 13

14 PROPERTy OvERvIEw10721 TREENA STREET

PARCEL MAP

PROPERTy OvERvIEw10721 TREENA STREET 15

©1985-2018 Stevenson Systems, Inc. All Rights Reserved / www.stevensonsystems.com

10721 TREENA STREET, SAN DIEGO, CA. 92131

1ST FLOOR

FLOOR PLAN

16 PROPERTy OvERvIEw10721 TREENA STREET

©1985-2018 Stevenson Systems, Inc. All Rights Reserved / www.stevensonsystems.com

10721 TREENA STREET, SAN DIEGO, CA. 92131

2ND FLOOR

FLOOR PLAN

PROPERTy OvERvIEw10721 TREENA STREET 17 ProPerty overview

“Best place in America to launch a startup”

FORBES MAGAZINE

“Highest number of active duty military”

BEA.GOV

“Top Metro in U.S. for relocation”APA SURVEY

“Most diverse high-tech sector in the nation”

MILKEN INSTITUTE

“Average commute time among top 25 most populated metros

(24.9 minutes)”AMERICAN

COMMUNITY SURVEY

“Top U.S. Travel Destination for 2016”MONEY MAGAZINE

18 AreA overviewSUNroAD PLAZA

San Diego County’s nearly perfect year-round weather combined with a dynamic economy makes the region one of the most desirable places to live and work in the United States. San Diego’s quality of life and burgeoning economy attract residents, businesses and visitors from around the world.

Over the last two decades, the San Diego region has developed its own progressive identity as a premier tourist destination as well as a leader in defense development, biotechnology, sustainable energy, wireless and telecommunications technologies, and electronics manufacturing.

[1] FAST REPORT[2] U.S. BUREAU OF ECONOMIC ANALYSIS[3] UNITED STATES CENSUS BUREAU

HOUSEHOLDS

1,160,824[1]GROSS REGIONAL PRODUCT

$206.8 B[2] POPULATION

3.30 MILLION[3] AVERAGE HOME VALUE

$577,658[1]AVERAGE HH INCOME

$89,932[1]

AreA overviewSUNroAD PLAZA 19

More than 60% of people who migrate here hold a college degree

Over 63,000 professionals in science and engineering jobs

39.6% of degree holders have their first degree in a STEM field

22.3% of the population are Multi-Lingual English-Speaking.

23.4% growth in millennial degree holders from 2010 - 2014

(Source: San Diego Regional EDC)

talent

Two international airports serving San Diego County – San Diego International Airport and Tijuana Airport

The world’s first cross-border airport terminal connecting San Diego and Tijuana

The Port of San Diego, the fourth largest of California’s 11 ports, includes two maritime cargo terminals and two cruise ship terminals

Mean travel time to work is 25 minutes – The shortest of the 25 largest metros in the United States

Proximity to Orange County 1 h 43 (88 mi) / Los Angeles approx. 2 h 35 min (127 mi)

(Source: San Diego Regional EDC)

connectivity

#2 safest city in the U.S. out of cities with 500,000+ Population (Federal Bureau of Investigation)

Over 120 breweries - #2 best beer cities in America (Thrillist)

70 miles of Coastline – La Jolla Shores, Coronado and Carlsbad on Trip Advisor’s Top 25 Beaches List

Top attractions for both locals and tourists: The San Diego Zoo, San Diego Zoo Safari Park, SeaWorld San Diego, LEGOLAND California

High Quality education options include San Diego State University, University of San Diego and UC San Diego

Miles of running, hiking and biking trails as well as 90 golf courses in the county

(Source: San Diego Regional EDC)

quality of life

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aerospace/maritime/defense

Companies: 760 Employees: 34,500* Average earnings: $95K

*Not including DoD operations, which includes more than 140,000 military and DoD personnel

medical devices

Companies: 300 Employees: 11,700 Average earnings: $118k

biotech/pharmaceuticals

Companies: 560 Employees: 25,500 Average earnings: $165k

cleantech/energy

Companies: 770 Employees: 8,000 Average earnings: $94k

information/communications

Companies: 3,170 Employees: 66,900 Average earnings: $106k

tourism/conventions

Companies: 7,150 Employees: 166,200

healthcare

Companies: 26,500 Employees: 151,600 Average earnings: $48k

Thriving Innovation Ecosystem: one of America’s most diverse economies, from biotech and cleantech to cybersecurity, wireless and health.

21 AreA overviewSUNroAD PLAZA

#1 most patent intense region in the u.s. — #3 in the WorldSAN DIEGO ECONOMIC DEVELOPMENT CORPORATION

#2 solar city - IN 2015, ENVIRONMENT AMERICA RESEARCH & POLICY CENTER RANKED SAN DIEGO AS THE 2ND BEST SOLAR CITY IN THE NATION FOR INSTALLED SOLAR PV SYSTEMS

#3 clean tech city in americaCLEAN TECH LEADERSHIP

#3 life sciences hubBUSINESS FACILITIES MAGAZINE 2015

#5 city for fast-groWth companiesINC. MAGAZINE

#5 san diego ranks fifth among the top 25 u.s. startup hubsU.S. CHAMBER OF COMMERCE FOUNDATION

#1 metro for nih research dollars to research institutesNATIONAL INSTITUTES OF HEALTH

#4 in venture capital dollars per employeeNATIONAL VENTURE CAPITAL ASSOCIATION / U.S. BUREAU OF LABOR STATISTICS

The San Diego region has long been known as a military hub, as well as one of the top tourist destinations in the world. In recent decades, San Diego has developed its own identity as a world leader in innovation.

Innovation

The region’s six major universities and more than 80 research institutions receive $1.8 billion in annual federal and philanthropic funding to perform ground-breaking technological and medical research. (Source: San Diego Regional EDC)

Military

San Diego has the largest concentration of uniformed military personnel in the world. The defense industry represents one out of every four jobs in the region and includes leaders in unmanned vehicles, robotics, cyber security and shipbuilding. (source: San Diego Regional EDC)

Tourism

Each year, San Diego hosts nearly 34 million visitors who spend approximately $10 billion. This spending impacts more than 181,000 jobs and generates over $16 billion of economic impact. (Source: San Diego Tourism Authority)

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LOCATOR MAP

T R E E N A S T

T R E E N A S T

AREA OvERvIEw10721 TREENA STREET 25

TENANT OVERVIEW

TENANT OVERVIEW

AUSGAR TECHNOLOGIES, INC., is a growing cyber-security

and IT consulting company primarily serving the US Navy,

Army, US Marine Corp (USMC), Air Force, and many other

Government agencies.  The company was founded in 2003

and has over 130+ employees. This subject location is the US

headquarters while the company also has 4 other regional

offices in in San Diego, CA; Norfolk, VA; North Charleston,

SC; and Fairborn, OH. Ausgar is a Service-Disabled Veter-

an-Owned Small Business (SDVOSB) Corporation giving it a

competitive advantage as certain governmental contracts

must be signed with types of entities. This location is vital to

AUSGAR given the company’s large defense customer base

and San Diego continues to see increased naval/defense

spending i.e. the 55 current naval ship count is projected to

grow to 70 by 2020.

TENANT OvERvIEw2710721 TREENA STREET

wEBSITE: https://ausgar.com/

LAND SIZE 40,946 SQUARE FEETBUILDING SIZE 17,555 SQUARE FEETHARD COSTS

Land Acquisition Cost @ $30.00 $1,228,380

Hard Costs @ $115.00 $2,018,825

TI’s on Office (55%) $75.00 $1,316,625

TI’s on Medical (45%) $120.00 $4,563,830

TOTAL HARD COSTS $22,197,011 78%

SOFT COSTS

A & E @ 2.0% $91,277

Insurance $0.37 PSF 6,495

Property Taxes 1.03% Hard Costs 47,007

Development Fees $3.00 PSF of Bldg. Area 52,665

Legal 1% Hard Costs 45,638

Developer’s Profit 8% Hard Costs 365,106

Loan Fee 1% Hard Costs 45,638

Contingency 2% Hard Costs 91,277

Interest on Land Carry 3% Land Cost 36,851

Interest on Construction 5% Hard Costs 228,192

Interest on Lease Up 3% Hard Costs 136,915

Leasing Commission $6.48 PSF 113,756

TOTAL SOFT COSTS $1,260,818 22%

Total Development Costs $5,824,648 100%

Cost Per Square Foot $331.79

Economic Rent Calculation

Replacement Costs $331.79

Required Return 9.0% $29.86

Operating Expenses $8.50

Less Vacancy/Credit 5% $2.05

Economic Rent Required, PSF per year (NNN) $40.41

Economic Rent Required, PSF per month (NNN) $3.37

This page is part of a package and is subject to the CBRE disclaimer.

REPLACEMENT COST

28 REPLACEMENT COST10721 TREENA STREET

AFFILIATED BUSINESS DISCLOSURE

CBRE operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engag-ing in a broad range of commercial real estate businesses in-cluding, but not limited to, brokerage services, property and facilities management, valuation, investment fund manage-ment and development. At times different Affiliates may rep-resent 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 Prop-erty 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 offer-or 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 AGREEMENT

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.

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 all Prop-erty (the”Owner”), to be all-inclusive or to contain all or part of the information are provided for general reference purposes

only and are based on assumptions relating to the general economy, market conditions, competition and other factors being 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 pur-port to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are ex-pected 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 respectful directors, officers, Affili-ates or representatives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any 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 pur-chase 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 Memo-randum 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 detrimen-tal to the interest of the Owner or CBRE, Inc.

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

DISCLAIMER

© 2018 CBRE, Inc. The information containing in this docu-ment has been obtained for sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not ver-ified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, as-sumptions 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 care-ful, 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 consent 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.

REPLACEMENT COST10721 TREENA STREET 29

INVESTMENT PROPERTIES - SO CAL

Anthony DeLorenzoGary Stache

Doug MackMichael Spiezia

Mark Shaffer

Orange County Los AngelesBill Maher Kevin Foley

LA South BayThomas Adelson

LA WestSammy Cemo

Inland EmpireMatt Pourcho

San Diego

T R E E N A S T

CAPITAL MARKET EXPERTS

MATT POURCHOLic. 01705763+1 858 546 [email protected]

ANTHONY DELORENZOLic. 01706686+ 1 949 725 [email protected]

GARY STACHELic. 00773736+1 949 725 [email protected]

DOUG MACKLic. 01804065+1 949 725 [email protected]

DEBT & STRUCTURED FINANCE

SCOTT PETERSONLic. 01383970 + 1 858 546 [email protected]