SVN The Kase Group

SVN The Kase Group

Jacob Abusharkh

Managing Director415.269.2474

[email protected]#01385529

www.TheKaseGroup.com

Home Depot Net Leased Offering | Santa Clara, CA (Bay Area)

$26,500,000 | 5.50% CAP

Offering Highlights

Extremely Rare Bay Area/Silicon Valley Big Box Opportunity

Tenant has Expressed Interest in Long Term Lease Extension - Call for Details

Under Market Rent - Tenant Only Pays $1.25/sf/month

Corporate Lease - S&P Rated A Investment Grade Credit - NYSE: HD

Irreplaceable Real Estate - Highly Desirable Location

Located Near the New Levi’s Stadium, Home to the San Francisco 49ers

Asset is in Close Proximity to the San Jose International Airport

High Barriers to Entry - Difficult for Tenant to Relocate

Largest Home Improvement Retailer in the United States

Actual Site Photo

Home Depot Net Leased Offering


All Sperry Van Ness® Offices Independently Owned & OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.



SVN The Kase Group

The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photo-copied or disclosed to any third party without the written consent of Sperry Van Ness or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is the Sper-ry Van Ness Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Of-fering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Bro-chure must be returned to Sperry Van Ness.

Neither the Sperry Van Ness Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and noth-ing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by Sperry Van Ness with respect to the projected future perfor-mance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the Sperry Van Ness Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those repre-sentations and warranties that may be made to it in any final,

fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the Sperry Van Ness Advisor, nor any of their officers, employees, representatives, independent contractors or af-filiates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expres-sions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms ac-ceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowl-edged the foregoing and agreed to release the Owner and the Sperry Van Ness Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

Disclaimer | Confidentiality

Home Depot Net Leased OfferingSVN The Kase Group



CONTENTS

PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Tenant Summary

FINANCIAL OVERVIEW

Financial Summary

LOCATION OVERVIEW

Location Maps

Aerial Photo

Property Photos

DEMOGRAPHICS

Demographics Report

Demographics Map




PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Tenant Summary

Extremely Rare Bay Area/Silicon Valley Big Box Opportunity

Tenant has Expressed Interest in Long Term Lease Extension - Call for Details

Under Market Rent - Tenant Only Pays $1.25/sf/month

Corporate Lease - S&P Rated A Investment Grade Credit - NYSE: HD

Irreplaceable Real Estate - Highly Desirable Location

Located Near the New Levi’s Stadium, Home to the San Francisco 49ers

Asset is in Close Proximity to the San Jose International Airport

High Barriers to Entry - Difficult for Tenant to Relocate

Largest Home Improvement Retailer in the United States

Offering Highlights




Investment OverviewSale Price: $26,500,000

CAP Rate: 5.50%

Net Operating Income: $1,457,808

Building Size: 95,700 SF

Lot Size: 6.93 Acres

Year Built: 1995

Market: Bay Area

PropertyThis is an extremely rare Bay Area opportunity unlike anything else available in the market. The offering is the 100% fee simple interest in a modified NNN leased Home Depot. There are three remaining 5 year options to renew. There and scheduled 10% increases every 5 years at each renewal option. The asset is located in Santa Clara, not far from the new Levi’ s Stadium, home to the San Francisco 49ers. It is also very close to the San Jose Airport and Santa Clara University. Home Depot has expressed the desire to extend their lease long term. Please call for details.

LocationSanta Clara is a city in Santa Clara County, California, named after the Spanish mission that was established there in 1777. The city’s population was 116,468 at the 2010 United States Census, making it the ninth-most populous city in the San Francisco Bay Area. Located 45 miles southeast of San Francisco, the city was founded in 1777 and incorporated in 1852. The city is the site of the eighth of 21 California missions, Mission Santa Clara de Asís, and was named after the mission. The Mission and Mission Gardens are located on the grounds of Santa Clara University.

2435 Lafayette Street | Santa Clara, CA

Executive Summary




Tenant OverviewThe Home Depot is an American retailer of home improvement and construction products and services.

It operates many big-box format stores across the United States (including all 50 U.S. states, the District of Columbia, Puerto Rico, the United States Virgin Islands and Guam), all ten provinces of Canada, as well as Mexico. The company is headquartered at the Atlanta Store Support Center in Cobb County, Georgia, in Greater Atlanta.

In terms of overall revenue reported to the U.S. Securities and Exchange Commission, the company is the largest home improvement retailer in the United States, ahead of rival Lowe’s. The store operates out of large warehouse-style buildings averaging 105,000 square feet with megastores operating in larger facilities (the company’s largest store, located in Union, New Jersey is 225,000 square feet).

The Home Depot was founded in 1978 by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah. The Home Depot’s proposition was to build home-improvement superstores, larger than any of their competitors’ facilities. Investment banker Ken Langone helped Marcus and Blank to secure the necessary capital.

In 1979, the first two stores, built in spaces leased from J. C. Penney that were originally Treasure Island “hypermarket” (discount department and grocery) stores, opened in metro Atlanta (in Doraville and Decatur both near I-285) on June 21. Two more opened not long after, and all four shared the space under the “squiggly” zig-zag roof with Zayre on its right side. It became a publicly traded company on April 19, 1984.

Corporate InformationOwnership: Public

Traded As: NYSE: HD

Headquarters: Atlanta, GA

Founded: 1978

Revenue: $78+ Billion (2014)

Website: www.HomeDepot.com

Tenant HighlightsLargest Home Improvement Retailers in the U.S.

Over 2,248 Locations Nationwide

Approximately $78 Billion in Revenue (2014)

Tenant Summary







FINANCIAL OVERVIEW

Financial Summary

2435 Lafayette Street | Santa Clara, CA $26,500,000 | 5.50% CAP

CAP Rate: 5.50%

Building SF: 95,700

Lot Size: 6.93 Acres

Year Built: 1995

Type of Ownership: Fee Simple

Tenant Name GLA Lease Begin Lease End Annual Rent Increases Options

Home Depot 95,700 SF 5/1/2015 4/20/2020 $1,457,808 Rent Increases Tenant has

10% every 5 four 5

years at year options

each option to renew

Operating Summary 2015 Option 2 Option 3 Option 4

Net Operating Income $1,457,808 $1,603,588 $1,763,946 $1,940,340

CAP Rate 5.50% 6.05% 6.66% 7.32%

Financial Summary







LOCATION OVERVIEW

Location Maps

Aerial Photo

Property Photos

2. LOCATION OVERVIEW

HOME DEPOT NNN LEASED OFFERING Location Maps

All Sperry Van Ness® Offices Independently Owned & Operated.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

www.TheKaseGroup.com9

Location Maps




Aerial Photo




Property Photos







DEMOGRAPHICS

Demographics Analysis

Demographics Map

Total Population

Total Number of Households

Total Number of Persons per Household

Average House Value

Average Household Income

Median Age

Median Age - Male

Median Age - Female

Total Population - White

Total Percent - White

Total Population - Black

Total Percent - Black

Total Population - Asian

Total Percent - Asian

Total Population - Hawaiian

Total Percent - Hawaiian

Total Population - Indian

Total Percent - Indian

Total Population - Other

Total Percent - Other

Total Population - Hispanic

Total Percent - Hispanic

73 881 3,7650.9% 0.7% 0.8%

1,321 12,940 56,18916.1% 9.7% 12.6%

2435 Lafayette Street | Santa Clara, CA 95050 For Sale | $29,156,160

* Demographic information provided by BuildOut, Inc.

2,946 51,185 170,745

2.8 2.6 2.6

$531,644 $642,506 $614,152

$70,907 $100,097 $95,111

30.8 34.7 34.729.4 34.4 34.2

32.9 35.1 35.4

2,317 44,333 148,56828.2% 33.2% 33.3%

241 3,671 13,9942.9% 2.7% 3.1%

47 644 2,7290.6% 0.5% 0.6%

3,857 64,849 203,53246.9% 48.5% 45.6%

8,221 133,633 446,797

2,606 28,139 113,59731.7% 21.1% 25.4%

1 Mile 3 Miles 5 Miles

4. DEMOGRAPHICS

HOME DEPOT NNN LEASED OFFERING Demographics Report




Demographics Analysis




4. DEMOGRAPHICS

HOME DEPOT NNN LEASED OFFERING Demographics Map




* Demographic information provided by BuildOut, LLC

2435 Lafayette Street | Santa Clara, CA 95050 Radius Map

1 Mile 3 Miles 5 Miles

Total Population 8,221 133,633 446,797

Total Number of Households 2,946 51,185 170,745

Average Household Income $70,907 $100,097 $95,111

Median Age 30.8 34.7 34.7

Demographics Map





All Sperry Van Ness® Offices Independently Owned & Operated© 2013 All rights reserved

PRESENTED BY

Jacob AbusharkhManaging Director

[email protected] BRE#01385529

SVN The Kase Group

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SVN The Kase Group