10 Santa Rosa Avenue Santa Rosa ∙ Sonoma County ∙ California

Paul SchwartzSenior Associate, Commercial DivisionTerra Firma Global Partners CalBRE #01111744 Cell- 707-479-1841Office- 800-681-1361 (x19)SchwartzBroker@gmail.com

For SaleTriple Net leased InvestmentBank of america Building$10,355,000 — 6% Cap Rate

TaBle oF CoNTeNTS

1. Investment offering

2. Santa rosa/Sonoma County

3. Courthouse Square reunification Plan

4. Parcel map

5. lease and Property Highlights

6. Surrounding area Photos

7. exterior Photos

8. Nearby area Photos

9. Interior Photos

10. area /District Maps

11. agent Profile

12. Terra Firma Company Profile

13. Zoning District Standards

14. Map of Downtown Santa rosa Business District

Santa rosa— Heart of the Sonoma County Wine Industry

INveSTMeNT oFFerINGThis is a rare North Bay offering of a AAA grade absolute triple net leased investment with Bank of America/Merrill Lynch in the San Francisco Bay Area.

The Bank of America building is a prominent 31,539 ± square foot two-story structure located in the heart of the thriving Santa Rosa Central Business District, Sonoma County, California. The bank building includes an ATM on the Third Street side of the building, and extensive parking surrounding the building.

Bank of America has occupied the facility since it was constructed in 1968. The tenant is responsible for all maintenance and repairs including roof, structure, walls, building systems, and interior maintenance.

The Bank of America building is at the major signalized intersection of Third Street and Santa Rosa Avenue in the center of the business and financial district, overlooking beautiful Courthouse Square. The property is two blocks east of Highway 101, the major North/South corridor from San Francisco and the Golden Gate Bridge.

The building is zoned CD-10 (Downtown Commercial) with a ten story height limit, providing an immediate net income of approximately $621,000 per year, as well as the potential for future development into a 10 story structure. The zoning allows office, financial, retail, hotel, apartment or a combination of commercial and residential uses in a mid-rise structure.

The current Bank of America lease extends through August 31, 2018. The lease includes an annual Consumer

Price Index increase September 1 of each year.

SaNTa roSa/SoNoMa CoUNTYThe beautiful mid-sized city of Santa Rosa has a population of approximately 171,000 and is the government, financial, medical, and retail center of Sonoma County. Santa Rosa is located 47 miles north of the Golden Gate Bridge in the world class Sonoma County Wine Country.

Sonoma County has a population of approximately 500,000 and is known for it’s incredible natural beauty, technology base and bioscience firms, diverse landscape, world-class foods and beverages including approximately 250 wineries and 25 craft beer breweries, 16 American Viticultural Areas (AVA’s) nestled between the Mayacamas Mountains and the gorgeous Pacific Coast/Bodega Bay to the Russian River and Sonoma Valley.

Employment and innovation leaders include Medtronic, Keysight (formerly Agilent), JDS Uniphase, Tri Vascular Medical Devices, American Ag Credit, Kaiser Hospital, St. Joseph Health, and Sutter Health.

Sonoma County educational institutions include Sonoma State University, Empire College, Santa Rosa Junior College and a branch of San Francisco State University.

A Mediterranean climate with exceptional air quality and four distinct seasons, the weather in Sonoma County is ideal. Sonoma County is bordered to the south by Marin County, to the east by Napa County and to the north by Mendocino County. There is immediate access to San Francisco and the entire Bay Area, and is a commercial hub of the North Bay. Santa Rosa is the largest medical, retail and economic center between San Francisco and Portland, Oregon.

Sonoma County is the home to a burgeoning craft beer industry led by world- renowned breweries including Lagunitas Brewing Co. Russian River Brewing Co. and Bear Republic Brewing Co. The annual release in Downtown Santa Rosa of Russian River Brewing Company’s Pliny the Younger draws thousands of beer aficionado’s from around the world for two weeks in February and is ranked among the world’s top craft beers. The economic impact of the craft brewing industry in Sonoma County is estimated to be over $125,000,000.

During the last 30 years, the popularity and significance of Sonoma County wines have given rise to a variety of cultural amenities, attractions and experiences including wine tasting, winemaker dinners, vineyard cycling and competitive cycling events, the Green Music Center, Wells Fargo Center for the Arts, and the recent boom in craft breweries tours.

Sonoma County was also the home of Peanuts cartoonist Charles Schulz, and the Sonoma County Airport is named after Mr. Schulz. Air service to the Sonoma County Airport includes Horizon Air Flights daily to Seattle, Portland, Los Angeles and San Diego, with additional flights commencing soon to another Western U.S. hub.

links:Santa rosa Chamber of Commerce — www.santarosachamber.com/santa-rosa/community-links/Sonoma County economic Development Board — http://edb.sonoma-county.org/documents/city_reports/Santarosa.pdfCity of Santa rosa— www.ci.santa-rosa.ca.us/doclib/Documents/Downtwon_SaP_Final.pdfPress Democrat Newspaper— www.PressDemocrat.comNorth Bay Business Journal—www.NBBJ.com

IMAGINE A place people come to enjoy rich cultural offerings, along with food, wine and open space

CoUrTHoUSe SqUare reUNIFICaTIoN PlaN

IMAGINE A place with exciting things to do and see

IMAGINE Santa Rosa alive with people who want to live and work downtown

The new heart….

Opportunities and possibilities

Courthouse SquareReunificationUltimate Project

Asawa panel

LEGENDPavillion

Flowering Trees

Street Trees

Preserved Trees

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Courthouse SquareReunificationUltimate Project

Asawa panel

LEGENDPavillion

Flowering Trees

Street Trees

Preserved Trees

Asawa panel

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Courthouse SquareReunificationUltimate Project

Asawa panel

LEGENDPavillion

Flowering Trees

Street Trees

Preserved Trees

Asawa panel

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The Reunification of Courthouse Square is an exciting project of the City of Santa Rosa that will bring even greater vitality and beauty to the heart of Santa Rosa. The renovation of the Square will enhance public, business and investment activity in the Downtown core, creating a more dynamic environment and increased market value for property owners throughout the area.

Click here to read more exciting details about the Courthouse Square reunification Plan.

ParCel MaP leaSe aND ProPerTY HIGHlIGHTS

CorPoraTe leaSe— BaNk oF aMerICa

Current Monthly Income Thru aug. 2015: $50,268 ($1.59 / Sq. Ft)

Projected Income With annual CPI Sept. 1, 2015: $51,775 ($1.64 / Sq. Ft.)

Projected annual Gross Income as of 9/1/2015: $621,300 ($19.70 / Sq. Ft.)

offering Price on 9/1/2015 Projected Income: $10,355,000

Capitalization rate effective 9/1/2015: 6%

Gross Square Feet- Two Stories: 31,539

Price Per Square Foot: $328.32

lot Size- .72 acre: 31,363 SF

assessor’s Parcel Number: 009-071-020

Year Built: 1968

Zoning- Downtown Commercial (10 story maximum): CD-10

exTerIor PHoToS

NearBY area PHoToS INTerIor PHoToS

area MaPS

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Morgan St.

Davis St.

Wilson St.

7th St.

6th St.

5th St.

4th St.

3rd St.100

5th St.300

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Ross St.

7th St.

Ross St.

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4th St.

3rd St.

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Sonoma Ave.

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8th St.West EndHistoric

Neighborhood

St. RosaHistoric Neighborhood

Cherry StreetHistoric Neighborhood

Burbank GardensHistoric Neighborhood

9th St.9th St.

Donahue St.

Ad

ams St.

Mend

ocino Ave.

Riley St.

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Orchard

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Beaver St.

Santa Rosa Ave.

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B St.B St.

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SantaRosaPlaza

CityHall

Julliard Park

Olive Park

StateBuilding

6th Street Playhouse

ChopsTeenCenter

CaliforniaWelcomeCenter

HotelLa Rose

CityHallAnnex

Chamber ofCommerce

RoxyStadium14Theater

Roxy onthe SquareTheater

HyattVineyard

Creek

Hotel andConference Center

Courtyard byMarriott

PublicLibrary

Sonoma CountyMuseum

Federal Building

Burbank Homeand Gardens

Post Office

Courthouse Square

Downtown Santa rosa District Map

Click here for a detailed, printable downtown Santa rosa Map

Click here for a detailed downtown Santa rosa retail & entertainment Guide

Parking District Map

Downtown Core aerial Map

Third Street

Mendocino Ave Santa Rosa Ave

Downtown Santa rosa Profile

aGeNT ProFIlePaul Schwartz, Senior Sales associate at Terra Firma Global Partners

Paul Schwartz joined Terra Firma Global Partners Sonoma County Offices in 2012. Paul joins us after a long history with the top commercial brokerages in the North Bay. His desire to align himself with a locally owned firm that focuses on the success of their clients and associates, and a strong reputation of integrity in the marketplace, led him to Terra Firma Global Partners. Together, we have found synergies that translate well from both the residential to commercial aspects of the industry to better support our clients. We are excited about what Paul brings to the table.

Paul Schwartz is an investment and leasing agent in Santa Rosa, California where he has been a perennial top producer in Sonoma County commercial real estate, specializing in the sale and leasing of office, retail and industrial income properties. Paul’s extensive market knowledge and technical skills in the commercial real estate arena, positive business relationships and commitment to working with clients from start to finish have distinguished Paul in his profession.

Paul has more than 25 years of commercial real estate experience in the Sonoma County and North Bay market, working with property owners, buyers and tenants in the sale and leasing of properties both locally and out of state. Prior to becoming a commercial real estate agent, Paul served for 3 years as the Marketing and Leasing Manager for Simons & Brecht Commercial Developers in Santa Rosa. Paul’s background in community economic development, organizational management, marketing, and public policy analysis are invaluable in assisting his commercial real estate clients.

Upon moving to Santa Rosa in 1981, Paul served as the Assistant Executive Director of the Santa Rosa Chamber of Commerce for five years and was honored as the top Chamber of Commerce Staff Member in the State of California in 1982. Paul is very active in local volunteer efforts in Sonoma County.

“Paul is skilled, knowledgeable and principled and he is at the top of my “go-to list” of commercial real estate

professionals.”

—Jeremy olsan, Partner Perry Johnson anderson Miller & Moskowitz, llP

Cassidy Turley BT Commercial Real Estate

Colliers International Real Estate

Orion Partners Ltd. Commercial Real Estate

Marketing and Leasing Manager, Simons &Brecht Architects and Developers

Executive Director, Carlsbad, CA Chamber of Commerce

Asst. Executive Director, Santa Rosa Chamber of Commerce and Founding Director, Leadership Santa Rosa - 1984

Background and experience

CoMPaNY ProFIleTerra Firma Global Partners, a real estate Company for life

Terra Firma is built on personal and business relationships that maintain the highest level of trust and integrity. Our company vision, which drives every decision we make, is to provide our clients with a very personal experience that keeps them a client for life, and gives them the trust and confidence to refer friends and family to Terra Firma for all their real estate needs.

At Terra Firma Global Partners, we are community leaders. Clients recognize us for the creative sophistication of our real estate advice as well as for the discipline and accuracy of our service delivery. We are respected as a leading provider of commercial real estate services as well as for our community engagement. Our thorough understanding of local business practices and decision-makers, combined with our customer focus and service commitment, give our clients a distinct edge in commercial real estate. We aspire to be the best, not the biggest. Our focus is on growing with our clients to serve their ever-evolving needs. We support not just our clients’ real estate, but their overall business performance.

In April of 2010, despite outside skepticism and one of the darkest troughs in real estate history, Terra Firma Global Partners was launched by Bill Facendini and Heidi Rickerd-Rizzo as a boutique real estate company servicing Marin, Sonoma and Napa Counties. After long and successful careers respectively in the North Bay, as both leaders of major brokerage houses, corporations and independent companies, they believed the traditional real estate model was broken and that much of the industry was more focused on generating ancillary fees and related services to stay alive rather than focusing on the client. The business had become more about quantity of associates rather than quality, and about production rather than service. Their vision is to have small, local footprints in key communities throughout the North Bay that reflect the individual community they serve. Offices focus on being “green” and taking full advantage of technology to create a seamless and contemporary vibe in each location so that the associates can cross over all market areas effectively to meet their client’s needs.

sonoma\napa\marinsanta rosa\sonoma\sebastopol\petaluma\glen ellen\napa\st.helena\san rafael

All information was supplied by a variety of sources. Terra Firma Global Partners has not verified or investigated the accuracy of the information. Buyers should investigate these issues to their own satisfaction. An Equal Opportunity Company, Equal Housing Opportunity. Terra Firma Global Partners is Independently Owned and Operated.

ZoNING DISTrICT STaNDarDS

The standards of this Section are intended to support a mixed use and pedestrian oriented downtown. See also the General Plan and Section 2 (Core Area) of the City’s Design Guidelines.

a. Design standards for street frontages and building façades. Each new non-residential structure, and all alterations to existing structures involving any change in the façade at the street frontage, shall comply with the following standards, to maintain and enhance the pedestrian oriented character of the downtown. The review authority may approve minor variations to these standards as deemed appropriate, provided that the review authority also first finds that the minor variation will still produce a new or altered building that complies with the intent of this Section and all applicable requirements of this Zoning Code. Proposed structures shall also comply with the City’s Design Guidelines.

1. limitation on the location of allowable land uses. Each land use shall be located as follows.a. Ground floor pedestrian-oriented uses required. The ground floor of each non-residential structure shall be limited to pedestrian-oriented uses. These include walk-in uses such as restaurants, retail stores, health/fitness facilities, personal services, social service organizations, and other similar uses. The review authority may modify this requirement when existing structures are reused for different tenants or uses, or when this requirement is determined by the review authority to be infeasible because of excessive storefront vacancies.b. Ground floor banks and financial services, and business/service offices are permitted if the review authority first determines that the use will not impair the pedestrian character of the street, provided that:

01. Bank and financial services or business service offices do not constitute more than 25 percent of the block façade frontage;02. The remainder of the block is characterized primarily by retail and/or restaurant uses; and03. The façade design of the structure that accommodates the bank or business service office contributes to the visual interest of the street and conspicuously expresses the nature of the use.

2. Building placement. A non-residential building façade parallel to the street shall be located at the back of the public sidewalk, except that:

a. The façade length may be set back a maximum of 1/3 of the parcel depth to a maximum of 50 feet from the street property line, whichever is less, along 50 percent of the façade length; and/orb. A setback of 10 feet from the street property line may be allowed along additional 50 percent of the façade length to provide a wider sidewalk, or to accommodate building arcades, plazas, landscape, public art, water fountains, benches, outdoor dining, and other pedestrian amenities.

3. architectural treatment. Building design shall comply with the following requirements.a. Façade articulation.

01. To encourage visual continuity and pedestrian activity, at least 60 percent of the total street frontage ground floor length of any new or reconstructed building shall be differentiated architecturally by recessed windows and entries, display windows, offset surfaces, differentiated piers and columns, offset planes, textured materials, awnings, and compatible landscaping or other details, or other displays which are of interest to pedestrians.02. Where a substantial length of windowless wall is determined by the review authority to be

20-23.060 CD Zoning District Standards

unavoidable, eye-level displays, contrasts in wall treatment, offset wall lines, other decorative features, outdoor seating, or landscaping shall be used to enhance visual interest and pedestrian orientation.

b. Parapets. Any parapet extension of a storefront on a street-fronting façade shall be incorporated and integrated into the design of the entire building on all façades and frontages, and shall not be limited to street front façades.c. Windows. Clear, untinted glass shall be used at and near the street level to allow maximum visibility of building interiors from the sidewalk. Tinted or mirrored glass is not allowed at the pedestrian level.d. Railings and decorative grilles. Any decorative railing or grille work that is placed in front of or behind street level windows, shall be at least 75 percent open to perpendicular view and no more than six feet in height above grade. No security gate or grille shall be installed on the exterior of any structure.e. Upper story design features. A minimum of 50 percent of the building frontage width above the first story shall be differentiated by recessed windows, balconies, offset planes, or other architectural details that provide dimensional relief.

4. Pedestrian access. The primary entrance of each ground floor use shall be recessed a minimum of three feet when accessed from the public right-of-way. Walk-up facilities and entries shall be recessed and provide adequate queuing space to avoid interruption of pedestrian flow.5. Driveways. Driveways shall be designed and located to adequately serve parking facilities without unnecessarily interrupting the pedestrian sidewalk.

B. Height limit within the downtown. The maximum height limit is based on the applicable commercial downtown zoning districts, either CD-5, CD-7, or CD-10 and Table 2-8 (Section 20-23.040).

1. location criteria. A building constructed to the stated height limits per the CD-5, CD-7 and CD-10 zoning districts shall be subject to Design Review approval and should be considered by the City only on sites where:

a. There is convenient access to major community facilities (i.e., shopping, commercial, parking, open space, arterial streets, public transit, etc.);b. The proposal is compatible both functionally and aesthetically with the goals and policies of the General Plan;c. The proposed structure will not block any major corridor, vista, or view, as defined by the General Plan;d. The surrounding street patterns and circulation will enable the project to operate effectively.

2. Design standards. Design Review approval is required to determine that the proposed structure will comply with all of the following standards, in addition to those in Section 20-23.060 (CD Zoning District Standards).

a. The proposed structure shall be compatible with the design and function of the surrounding structures;b. The structure shall not be placed so as to overwhelm existing structures. New structures shall be scaled to create transitional elements in relation to existing structures;c. Proposed utility equipment, i.e., meters, valves, transformers, splice boxes and other similar equipment shall be:

01. Placed underground in vaults; or02. Located within areas inside buildings designated for mechanical equipment and which is accessible for inspection and testing by City personnel, unless an alternative is specifically authorized by both Design Review Board and the Director of Utilities.

d. Open space areas may be incorporated into any proposal. Outdoor plazas, entry gardens, courtyards, and landscape areas should be clearly defined. These areas should be designed so that they:

01. May serve useful public or social purposes, with varied seating spaces, features of special interest including public art or fountains, and oriented to central areas and the primary walking corridors, including building entry areas and the adjoining sidewalk;02. Are located either at street level, or no more than five feet below the street level, occupy the majority of the perimeter adjacent to the street and sidewalk, and are accessible from the sidewalk.

3. application requirements. Applications for Design Review approval shall include the following in addition to the information and materials required by Chapter 20-50 (Permit Application Filing & Processing):

a. A mid-view and close-up visual analysis of the impact of the project. The mid-view shall focus on views and vistas. The close-up shall focus on the proposed structures relationship to surrounding development. Any combination of computer-generated or perspective images will be acceptable;b. A solar and shade analysis of the proposed structure and its impact upon surrounding structures and areas;c. A traffic and parking analysis, including public transit availability and capacity;d. A site improvement plan, including but not limited to utility locations, paving, grade changes, furnishings and lighting within the pedestrian space;e. A fire protection plan.

C. Sites where mixed use development is required. Development or redevelopment of each parcel within the CD zoning district identified in Figure 2-1 (see below) shall be with a mixed use project that includes both residential and commercial uses, in compliance with Section 20-42.090 (Mixed Use Projects). Single use buildings such as public facilities and retail activities which serve a regional clientele may be allowed by exception of the Planning Commission.

For More Zoning Information See City of Santa rosa Website:http://www.ci.santa-rosa.ca.us/doclib/Documents/Downtwon_SaP_Final.pdf

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Financial Institutions local Businesses Government Buildings1— Umpqua Bank 1— Russian River Brewing Co. 1— Sonoma County Library

2— Exchange Bank 2— Barnes & Noble/Starbucks 2— State Building

3— Citibank 3— Peet’s Coffee/Kinkos-FedEx 3— U.S. Post Office

4— Wells Fargo Bank 4— Third Street Cinema 4— U.S. Federal Building

5— Luther Burbank Savings 5— Museum on the Square 5— Santa Rosa City Hall

6— Tri-Counties Bank 6— AT&T 6— City Hall Annex

7— First Community Bank 7— Roxy Movie Theater Public Parking8— Westamerica Bank 8— Santa Rosa Plaza Regional Mall 1— City Parking Lot

9— Bank of Marin 2— Parking Garage

10—Bank of America 3— City Parking Lot

11— U.S. Bank 4— Parking Garage

12— 1st Republic Bank 5— Parking Garage

Map of Santa rosa Downtown Business District

2nd St

E St

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Transit Mall

Santa Rosa Plaza Regional Mall

sonoma \napa \ marin

TerraFirmaGlobalPar tners.com

Santa Rosa Office ∙ 802 Fourth Street ∙ Santa Rosa, CA 95404