Cort-Tower-343-E-Main-Brochure-SPREADS

R T E R W O C TO TA A L E E D ON, C H T OF OCKT L E W ET, ST E J THE IN STRE MA E 43 ICONIC + HISTORIC 10-STORY OFFICE BUILDING FOR SALE IN DOWNTOWN STOCKTON’S OPPORTUNITY ZONE T ER CORTOW MAHALA BURNS BROKER - LIC 01082668 MARK HEFNER Cort Tower PRINCIPAL BROKER & SHAREHOLDER LIC 00823945 2131 CAPITOL AVENUE, STE 100 SACRAMENTO, CA 95816 916.573.3300 TURTONCOM.COM SCOTT KINGSTON VICE PRESIDENT - LIC 01485640 916.573.3309 SCOT TKINGS TON@TURTONCOM.COM DAVID KHEDRY DIRECTOR - LIC 02063469 916.573.3303 DAVIDK HEDRY@TURTONCOM.COM 02 © 2021 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser No warranty, expressed or implied, is made by owner, TCRE or any other respective affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property No legal liability is assumed or to be applied in connection with the information or such other communication Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspections, to determine the condition of the Property and the existence of any potential hazardous material located at the site T ER CORTOW Section One: The Property THE OPPORTUNITY ±85,000 SF $95 10 PSF STORIES $8,100,000 PURCHASE PRICE ICONIC DOWNTOWN STOCKTON INVESTMENT IN AN OPPORTUNITY ZONE Cort Tower, located in a Federal Opportunity Zone, Situated on a busy corner in the heart of down- will achieve easily supported 2023 office rents of at 343 E Main Street in Downtown Stockton, is a town Stockton’s business district, with numerous $1.00 - $1.25 per rentable square foot per month, 10-story (plus a full lower level) mid-rise office walkable amenities including coffee, food, muse- modified gross, ultimately providing ownership building comprised of 10 floors of above ground ums and entertainment, Cort Tower’s high-visibil- with a stabilized annual yield of over 7.25% As- office space, and lower level storage/office space ity location makes it a well-known local landmark suming a 6.00% cap rate disposition in 2026, Originally built in 1915 by A.P Giannini as one Cort Tower is bordered by professional offices, the pro forma value of the property could exceed of the first Bank of America buildings, the prop- government buildings, and the acclaimed K-12 $10.1 million providing the strategic investor erty was expanded to its current size in 1922 Stockton Collegiate International Baccalaureate with a highly reliable income while garnering an Cort Tower is listed on the National Registry of School with over 1,800 college-bound students attractive 28.37% levered cash-on-cash return Historic Buildings Comprised of the many of the Minutes from the Crosstown Freeway, Cort Tow- over a 10 year hold original architectural features including marble er is easily accessible from I-5 and 99 Several At $95 per square foot, it is difficult to describe staircases, original windows, lobbies and histori- street-level parking lots and an 800-car parking just how rare of an opportunity to purchase an cal facades, the building ecompasses everything garage are within one block asset of this size, location and significance is It urban tenants hunger for: authentic, historic, and As lease-up occurs and the demand increases for would not be an overstatement to say an oppor- with the right vision re-purposed and re-imagined executive office spaces, over the next two years tunity like this may never present itself again in space in the middle of Stockton’s downtown core it is entirely reasonable to assume the Property Downtown Stockton 03 PROPERTY FEATURES T ER CORTOW Section One: Property Section One: TheThe Property - TWO (2) NEW HIGH SPEED ELEVATORS Address: 343 E Main St, Stockton, CA 95202 Building Size: ± 85,000 SF Lower Level: ± 7,500 SF 1st Floor: ± 7,500 SF Mezzanine: ± 2,000 SF 2nd Floor: ± 8,000 SF 3rd Floor: ± 7,500 SF 4th Floor: ± 7,500 SF 5th Floor: ± 7,500 SF 6th Floor: ± 7,500 SF 7th Floor: ± 7,500 SF 8th Floor: ± 7,500 SF 9th Floor: ± 7,500 SF 10th Floor: ± 7,500 SF SF Available: 11,623 SF SF Leased: 67,262 SF Percentage Leased: 85.3% APN: 149-160-080 Parcel Size: ± 11,736 SF Year Built: 1915 Stories: Ten (10) plus full lower level Elevators: Two (2) high speed Flood Zone: Zone X (FEMA Flood Map 06077C0460F) Electricity: Pacific Gas & Electric Water: CalWater Sewer/Storm Drain: City of Stockton Gas: Pacific Gas & Electric Zoning: CD (Commercial, Downtown) District The CD zoning district is applied to the downtown commercial area of the City The intent of the CD zoning district is to encourage a mixture of high intensity uses to create a lively, pedestrian-friendly environment, with high visual quality Appropriate uses include large scale commercial offices and office support uses, high-density residential development, tourist and lodging oriented uses, and governmental facilities The CD zoning district is consistent with the commercial land use designation of the General Plan - N E W S ILIC ONE ROOF - S M ART PHONE HVAC C ONTROL SYSTEM - F IR E SYSTEM UPGRADES 0056 Section Six: Leasing Timeline T ER CORTOW T ER CORTOW Section Two: The Location St Joseph’s Medical Courthouse Plaza Kabob & Gyro House Alfafa’s Pizza Ray’s Market Yasoo Yani Misaki Sushi Empresso Coffee Subway Trail Coffee City Hall University Plaza Stockton Arena County Administration Cort Tower Marina Weber Point Events Superior Court BUILDING LOCATION THE EPICENTER OF STOCKTON, CA! MIN TO INTERSTATE MINS TO INTERSTATE MINS TO STOCKTON ARENA MINS TO HIGHWAY 99 MINS TO STOCKTON GOLF AND COUNTRY CLUB 10 12 13 14 15 MINS TO UNIVERSITY OF THE PACIFIC MINS TO SHERWOOD HALL MINS TO STOCKTON METROPOLITAN AIRPORT MINS TO SAN JOAQUIN DELTA COLLEGE MINS TO LINCOLN CENTER 09 Mexican Food Birrieria Don Rafa’s Taco Shop Long John Silver’s Smart & Final La Victoria Delicatessen Neil’s BBQ Ban Vit Constitution Park T ER CORTOW Section Two: The Location NEARBY DEVELOPMENTS The Property also benefits from proximity to several nearby development projects which will serve tenants of 343 E Main Street for years to come Cal Main Loft Apartments Grand View Village Medici Artist Lofts CalWeber 40 block from Cort Tower blocks from Cort Tower blocks from Cort Tower block from Cort Tower CalWeber 40, a residential development at the The Housing Authority of the County of San Joaquin southeast corner of California Street and Weber and DFA Development, LLC have developed 242 Avenue provides 40 affordable units — 28 N Sutter into the Medici Artist Lofts This project apartments with two bedrooms and one bathroom, apartment redevelopments in Downtown Stockton holds a mix of 34 affordable and market-rate units, and 12 larger apartments with three bedrooms This project will feature 29 lofts for rent contributing to the influx of downtown residential and two baths Developed by Cal Weber Associates spaces A portion of the building’s units are reserved LP; DFA Development LLC; Riverside Charitable for artists, only Corporation, Inc.; and PNC Real Estate Address: 500 E Main Street This project, originally the Avon Theater which 64 affordable housing units coming to MIner Avenue opened in 1882, is one of the first market-rate in Downtown Stockton The Open Window Project 1-3 blocks from Cort Tower The Ruhl Building blocks from Cort Tower Tretheway Live/Work Lofts block from Cort Tower The Open Window Project (OWP) is a major, mixedThe Ruhl Building is a beautiful three-story, use development by Ten Space Its goal is to create 23,000 square foot historic building in the heart of a vibrant, walkable and livable urban core within Downtown Stockton Built in 1903, it still retains nearly 12 acres in the heart of Downtown Woven into many of its original details the existing urban fabric, it will include a mixture The ground floor has four nicely renovated of new construction and historic rehabilitation Upon commercial units, which are fully leased at $6,600/ full build out, it is estimated that OWP will consist of Developer Bear Paw Equity has converted the two mo over 1,000 residential units (lofts, townhomes, live/ upper floors of this historic building into 12 market- The two upper floors are planned for loft conversion work spaces) and 400,000 square feet of commercial rate Live/Work units, as a part of the exciting new Permits for ten 2-BR lofts and two Studios have been and retail spaces (offices, restaurants, breweries, wave of residential spaces coming to Downtown! The approved by the City and are ready to pick up art galleries) Tretheway Lofts were completed in February 2020! 11 MARRS T ER CORTOW Section Three: Stockton THE R E’S A RE ASON CO M ING HERE STOCKTON Founded in 1849 by Capt Charles Weber, Stock- San Francisco, and 45 miles south of Sacramento, trees, Stockton has been recognized by Sunset ton began as a tent settlement and supply center the capital of California Stockton has an airport Magazine as the “Best Tree City” in the western for the southern mines during the California Gold offering service to Phoenix, Los Angeles, and Las United States In 1999, 2004, 2015, 2017, and Rush Between Stockton’s incorporation in 1850, Vegas (on Allegiant Airlines) Visitors may also fly 2018, Stockton was designated an All-America and its emergence as a popular destination for into Sacramento, Oakland or San Francisco City by the National Civic League entertainment and recreation in 1900, citizens In the mid-2000’s Stockton underwent a tre- Stockton also has outstanding recreational op- altered the natural waterways running through the mendous economic expansion and continues to portunities Stockton is within close proximity city to alleviate devastating frequent floods They aggressively revitalize its downtown Projects in to world famous scenic attractions including the also coordinated interstate water and rail with lo- the downtown area along the waterfront include California Coast, San Francisco, Lake Tahoe and cal transportation systems to facilitate the city’s an indoor arena, baseball stadium and waterfront Yosemite National Park The community offers development hotel A 16-screen downtown City Centre Cinemas many local recreational opportunities such as pro- Downtown Stockton is filled with signature histor- was completed in December 2003 The Bob Hope fessional sports teams, an olympic size ice rink, ic architecture that will take you back to the times (Fox) California Theatre, listed on the National and the Delta, which provides thousands of miles when Stockton was known as “the brick city.” List of Historic Landmarks recently completed a of waterways for water skiing, sailing and other Many of the oldest civic and commercial buildings total renovation and hosts live performances reg- water activities There are also many opportuni- are still in use and feature the original ornate fa- ularly The arena hosts the Stockton Kings (NBA ties to enjoy music, theater, dance, literary events, cades and classic interiors G-League) basketball team, the Stockton Heat and other cultural and entertainment activities Stockton is the County seat for San Joaquin Coun- (AHL) Hockey team, as well as year-round family throughout the year The city also boasts the 95 ty The City of Stockton is one of California’s fast- and cultural events and concerts Adjacent to the year old Stockton Symphony, a nearly 70 year old est growing communities Stockton is currently Stockton Arena is the Stockton Ballpark, home of Stockton Civic Theatre, and the 90 year old Haggin the 13th largest city in California with a dynam- the Stockton Ports Single A Baseball Team (Oak- Museum ic, multi-ethnic and multi-cultural population of land A’s affiliate) The city is home to several well-known higher more than 310,000 It is situated along the San Stockton offers an excellent quality of life for its educational institutions including the University Joaquin Delta waterway which connects to the residents The City has a number of beautiful of the Pacific, California State University Stanis- San Francisco Bay and the Sacramento and San residential communities along waterways, with laus-Stockton, San Joaquin Delta Community Col- Joaquin Rivers Stockton is located 60 miles east single-family homes costing about one-third the lege, Humphreys University and School of Law, as of the San Francisco Bay Area, 83 miles east of price of homes in the Bay Area With over 100,000 well as a variety of private and vocational schools 13 EVERY ONE IS T ER CORTOW Section Three: Stockton STOCKTON OFFICE VACANCY: STOCKTON DATA BITES 15% Downtown Stockton is a district in the City of Stockton and its historic civic center Stockton is the 13th largest city in California, an inland port, and home to regional rail, water, and street transportation (downtownstockton.org/invest/ demographics) 13% NUMBER OF EMPLOYEES WITHIN VARYING RADIUS OF THE PROPERTY: crease from January-February 2017 to the same period in 2021 (https://www.google.com/amp/s/amp.usatoday.com/ amp/7439070002) Entertainment 62,065 11% 9% The market with the highest median price increase was the Stockton-Lodi, California, area at $460,000, a 51% in- ANNUAL CONSUMER SPENDING WITHIN A MILE RADIUS OF THE PROPERTY: Leisure & Hospitality Education & Health Services 2017 2019 2021 MILE 15 30 45 60 TRANSIT SCORE: Public Administration *Numbers in millions Other Services STOCKTON HOUSEHOLD INCOME WITHIN A MILE RADIUS: $100,000 - $125,000- 7% $75,000 - $100,000 - 10% $50,000 - $75,000 - 20% Under $50,000 - 49% 0.94% ANNUAL POPULATION GROWTH BIKE SCORE: 66 Household 5% *Based on Costar 2021 STOCKTON’S NOTABLE EMPLOYERS #1 San Joaquin County Human Services Sources: downtownstockton.org #2 City of Stockton #3 Stockton Police Department #4 San Joaquin County Superior Court #5 Stockton Fire Department #6 San Joaquin Media Group #7 San Joaquin Regional Transit District #8 San Joaquin District Attorney #9 El Concilio, Council for Spanish Speaking #10 Bank of Stockton #11 California State University, Stanislaus 15 95 Health & ed 27,077 2015 Over $150,000 - 9% $125,000 - $150,000 - 4% WALK SCORE: Professional & Business Services Trade Transportation & Utilities Transport 47,159 7% Eateries/alc LARGEST EMPLOYMENT INDUSTRIES WITHIN MILE RADIUS OF THE PROPERTY: 48 T ER CORTOW Section Four: Economics ECONOMICS 10 YEAR CASH FLOW: 2021 $704,331.95 2022 $784,625.79 2023 $874,073.13 2024 $973,717.47 2025 $1,012,666.17 2026 $1,053,172.82 2027 $1,095,299.73 2028 $1,139,111.72 2029 $1,184,676.19 2030 $1,232,063.23 2031 $1,281,345.76 OPERATING EXPENSE REIMBURSEMENT $167,607.14 $186,714.36 $207,999.80 $231,711.77 $240,980.24 $250,619.45 $260,644.23 $271,070.00 $281,912.80 $293,189.31 $304,916.89 TOTAL REVENUE $871,939.09 $971,340.15 $1,082,072.93 $1,205,429.24 $1,253,646.41 $1,303,792.27 $1,355,943.96 $1,410,181.72 $1,466,588.99 $1,525,252.55 $1,586,262.65 OPERATING EXPENSES $593,289.87 $608,122.12 $623,325.17 $638,908.30 $654,881.01 $671,253.03 $688,034.36 $705,235.22 $722,866.10 $740,937.75 $759,461.19 NET OPERATING INCOME $278,649.22 $363,218.03 $458,747.76 $566,520.94 $598,765.41 $632,539.24 $667,909.60 $704,946.50 $743,722.89 $784,314.80 $826,801.46 GROSS SCHEDULED RENT NOTES Lease-up in years 1-4 and rolling leases to market throughout hold 2.5% per annum increases NET OPERATING INCOME: $800 $600 $400 $200 $0 2021 2022 *based on thousands *These numbers are estimates and projections 17 2023 2024 2025 2026 2027 2028 2029 2030 2031 T ER CORTOW Section Four: Economics 2021 REVENUE: GROSS SCHEDULED RENT SUITE/UNIT SIZE LOWER LEVEL LL 3,700 SUITE/UNIT FLOOR 100 101 LEASE EXPIRATION MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT N/A $0.00 $0.00 $0.00 NOTES INDUSTRY SIZE LEASE EXPIRATION MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT Real Estate Office Non-profit Arts Organization 1,350 2,276 1/1/2026 10/31/2023 $0.74 $0.88 $1,000.00 $2,000.00 $12,000.00 $24,000.00 Public Charter School 20,650 8/31/2025 $0.85 $17,504.85 $210,058.20 FLOOR 301AB 305-308 309 310 Law Firm Non-Profit Law Firm Law Firm 971 1,220 340 339 MTM 10/30/2021 9/30/2021 5/31/2021 $0.89 $0.54 $0.76 $0.71 $865.00 $660.00 $259.16 $241.00 $10,380.00 $7,920.00 $3,109.92 $1,205.00 311-312 313-315 316 317-318 319-320 321 322 Law Firm Law Firm Law Firm Law Firm Law Firm General Office General Office 514 832 275 778 702 332 391 2/28/2022 8/31/2021 MTM 9/30/2021 4/30/2022 12/3/2021 6/30/2021 $0.73 $0.66 $0.73 $0.72 $0.90 $0.72 $0.74 $375.00 $550.44 $200.00 $559.95 $631.80 $238.00 $290.00 $4,500.00 $6,605.28 $2,400.00 $6,719.40 $7,581.60 $2,618.00 $1,740.00 324 325 326 General Office Legal Services Marketing 219 180 207 4/30/2022 MTM 10/31/2021 $1.00 $0.83 $0.72 $219.00 $150.10 $150.00 $2,628.00 $1,801.20 $1,800.00 FLOOR 400 Vacant 7,500 N/A $0.00 $0.00 $0.00 FLOOR 500 501 502 503-505 506 507+A 508 509 Law Firm General Office General Office Law Firm Insurance Company General Office Law Firm General Office 846 257 445 860 354 750 239 242 4/30/2022 7/31/2021 7/31/2021 6/30/2021 MTM 8/31/2021 10/31/2021 1/31/2022 $0.88 $0.92 $0.54 $0.81 $0.77 $0.84 $0.86 $1.00 $741.95 $237.00 $240.00 $697.30 $272.03 $632.00 $205.20 $242.00 $8,903.40 $2,844.00 $2,880.00 $8,367.60 $3,264.36 $7,584.00 $2,462.40 $2,904.00 FLOOR 2nd & Sutter *These numbers are estimates and projections 19 NOTES Portion of lower level leased to Stockton Collegiate school Vacating at end of term, annual total adjusted Vacating at end of term, annual total adjusted SUITE/UNIT 512 513 514 INDUSTRY Non-Profit/Educational General Office General Office SIZE 2,206 191 339 LEASE EXPIRATION 7/31/2022 11/30/2021 7/31/2021 MONTHLY BASE RENT PER SF $0.75 $1.02 $0.70 MONTHLY BASE RENT $1,650.00 $195.00 $238.45 ANNUAL BASE RENT $19,800.00 $2,340.00 $1,669.15 517 518 General Office General Office 196 173 4/30/2022 2/28/2022 $1.08 $1.00 $211.00 $173.00 $2,532.00 $2,076.00 FLOOR 600-601 602 603 604 605 606 607 608 609-612 613 614 615 616 Law Firm Law Firm Accounting General Office General Office General Office General Office Art Studio Vacant General Office General Office General Office General Office 675 334 278 366 226 370 252 994 2,882 189 209 172 208 4/30/2022 5/31/2022 7/31/2021 5/31/2021 4/30/2022 7/31/2021 7/31/2021 8/31/2021 N/A 4/30/2022 MTM MTM MTM $0.64 $0.87 $0.90 $0.77 $0.90 $0.90 $0.92 $0.55 $0.00 $1.00 $1.01 $0.96 $0.96 $430.00 $291.00 $250.00 $280.00 $204.30 $334.80 $231.00 $550.00 $0.00 $189.00 $211.00 $164.35 $199.50 $5,160.00 $3,492.00 $3,000.00 $3,360.00 $2,451.60 $4,017.60 $2,772.00 $6,600.00 $0.00 $2,268.00 $2,532.00 $1,972.20 $2,394.00 FLOOR 700 701-702 703-704 705 706 707 708 709-710 711 712 Law Firm Non-Profit Law Firm General Office Law Firm General Office General Office General Office General Office Law Firm 462 559 559 244 354 220 220 862 261 186 3/31/2022 9/30/2022 6/30/2021 3/31/2022 3/31/2022 MTM 7/31/2021 4/30/2022 3/31/2022 5/31/2021 $0.76 $0.80 $0.77 $0.74 $0.76 $0.80 $0.77 $0.84 $0.95 $0.81 $350.00 $447.30 $430.65 $180.50 $269.00 $175.00 $169.10 $724.50 $247.95 $150.00 $4,200.00 $5,367.60 $5,167.80 $2,166.00 $3,228.00 $2,100.00 $2,029.20 $8,694.00 $2,975.40 $750.00 714 715 716 718 719 720 721 Law Firm Non-profit General Office General Office General Office General Office Architect 687 1,709 370 204 169 195 239 2/28/2022 2/28/2023 3/31/2022 MTM 1/31/2022 8/31/2021 12/31/2021 $0.75 $0.93 $0.79 $0.78 $0.85 $1.00 $0.74 $514.90 $1,587.50 $293.00 $159.00 $143.65 $195.00 $178.00 $6,178.80 $19,050.00 $3,516.00 $1,908.00 $1,723.80 $2,340.00 $2,136.00 FLOOR 801 802-804 805 806 807 808 809 810 811+A 812-814 General Office Law Firm General Office Law Firm Legal Services General Office General Office Advertising Firm General Office Law Firm 247 779 311 274 223 246 334 316 365 802 1/31/2022 3/31/2022 12/31/2021 1/31/2022 4/30/2022 9/9/2021 8/31/2021 MTM 2/28/2022 4/30/2022 $0.87 $0.67 $0.75 $0.72 $0.72 $1.00 $0.82 $0.98 $1.00 $0.73 $215.00 $525.00 $231.80 $198.55 $160.55 $246.00 $273.00 $310.00 $365.00 $586.80 $2,580.00 $6,300.00 $2,781.60 $2,382.60 $1,926.60 $2,952.00 $3,276.00 $3,720.00 $4,380.00 $7,041.60 NOTES Vacating at end of term, annual total adjusted Vacating at end of term, annual total adjusted T ER CORTOW Section Four: Economics 2021 REVENUE CONT.: SUITE/UNIT 815 816 817-818 819 INDUSTRY Law Firm Marketing Vacant Law Firm SIZE 2,843 191 372 197 LEASE EXPIRATION 7/31/2021 5/31/2021 8/31/2021 3/31/2022 MONTHLY BASE RENT PER SF $0.70 $0.76 $0.00 $0.95 MONTHLY BASE RENT $1,989.30 $145.00 $0.00 $187.15 ANNUAL BASE RENT $23,871.60 $1,740.00 $0.00 $2,245.80 FLOOR 901+A 902+A 903 904 907 909-910 911 912 914-915 916 917-918 919+A 920-921 General Office Law Firm Law Firm Real Estate Lending General Office Art Studio Non-profit/Educational AT&T Equipment General Office Accounting General Office General Office General Office 489 594 330 281 240 1,062 692 202 414 282 652 686 858 6/30/2021 6/30/2021 3/31/2022 MTM 4/30/2022 1/31/2022 12/31/2021 3/31/2048 9/30/2021 5/31/2021 11/30/2021 11/30/2021 TBD $0.71 $0.83 $0.90 $1.40 $0.79 $0.64 $1.00 $1.14 $0.64 $0.00 $0.64 $0.60 $0.68 $345.00 $495.00 $297.00 $392.00 $190.00 $675.00 $692.00 $230.00 $266.00 $0.00 $414.20 $411.00 $580.00 $4,140.00 $5,940.00 $3,564.00 $4,704.00 $2,280.00 $8,100.00 $8,304.00 $2,760.00 $3,192.00 $0.00 $4,970.40 $4,932.00 $6,960.00 FLOOR 10 10A 10B-F 10th Floor 10G 10H General Office Law Firm Real Estate Co Vacant Vacant 379 2,154 2,500 251 132 5/31/2022 8/31/2023 12/31/2021 N/A N/A $1.25 $0.61 $1.80 $0.00 $0.00 $475.00 $1,308.50 $4,500.00 $0.00 $0.00 $5,700.00 $15,702.00 $54,000.00 $0.00 $0.00 ROOFTOP 1ROOF 2ROOF Sprint/Nextel Ayera Technologies N/A N/A 9/30/2023 4/30/2024 $492.82 $810.70 $5,913.84 $9,728.40 SUBTOTAL 84,227 NOTES OPERATING EXPENSE REIMBURSEMENT ITEM MONTHLY Improvements $3.69 Maintenance $121.13 Repairs $4.50 HVAC $172.49 Utilities $816.00 Electricity $11,225.13 Water & Sewer $180.13 Gas $1,084.92 Alarm $61.05 Supplies $125.86 Trash $172.14 Telephone $0.24 MONTHLY PER SF $0.000 $0.001 $0.000 $0.002 $0.010 $0.133 $0.002 $0.013 $0.001 $0.001 $0.002 $0.000 SUBTOTAL $13,967.26 $0.166 TOTAL REVENUE $871,939.095 ANNUAL $44.25 $1,453.50 $53.97 $2,069.89 $9,792.00 $134,701.52 $2,161.60 $13,019.04 $732.56 $1,510.27 $2,065.71 $2.84 ANNUAL PER SF $0.00 $0.02 $0.00 $0.02 $0.12 $1.60 $0.03 $0.15 $0.01 $0.02 $0.02 $0.00 $167,607.14 ITEM Maintenance Repairs Janitorial HVAC Elevator Inspection & Repair Insurance Property Taxes MONTHLY $941.63 $1,130.97 $4,000.00 $483.27 $774.05 MONTHLY PER SF $0.011 $0.013 $0.047 $0.006 $0.009 ANNUAL $11,299.61 $13,571.67 $48,000.00 $5,799.23 $9,288.56 ANNUAL PER SF $0.13 $0.16 $0.57 $0.07 $0.11 $1,922.06 $16,875.00 $0.023 $0.200 $23,064.75 $202,500.00 $0.27 $2.40 Electricity Electricity - Roof sites Gas Alarm Water & Sewer Telephone Garbage Supplies Signage $16,828.14 $314.55 $1,831.86 $1,911.25 $919.88 $561.92 $850.98 $73.74 $21.53 $0.200 $0.004 $0.022 $0.023 $0.011 $0.007 $0.010 $0.001 $0.000 $201,937.67 $3,774.64 $21,982.28 $22,934.99 $11,038.51 $6,743.03 $10,211.73 $884.89 $258.31 $2.40 $0.04 $0.26 $0.27 $0.13 $0.08 $0.12 $0.01 $0.00 SUBTOTAL $49,440.82 $0.587 $593,289.87 $7.04 ESTIMATED ACTUAL 2021 NET OPERATING INCOME 21 $1.99 2021 EXPENSES: $704,331.95 *These numbers are estimates and projections NOTE *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 *Grossed up 2020 actuals 2% for 2021 $278,649.22 NOTE *Pro forma property taxes based on $8,100,000 acquisition price, 2.5% pro forma tax rate 1.5% funds the central parking district and Downtown Stockton alliance The Central Parking District does not require buildings to provide parking to their tenants T ER CORTOW Section Four: Economics 2024 REVENUE: GROSS SCHEDULED RENT SUITE/UNIT SIZE LOWER LEVEL LL 3,700 SUITE/UNIT FLOOR 100 101 FLOOR 2nd & Sutter LEASE EXPIRATION MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT N/A $0.00 $0.00 $0.00 NOTES INDUSTRY SIZE LEASE EXPIRATION MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT Real Esate Office Non-profit Arts Organization 1,350 2,276 N/A 10/31/2023 $1.10 $1.10 $1,485.00 $2,503.60 $17,820.00 $30,043.20 Public Charter School 20,650 8/31/2025 $0.90 $18,585.00 $223,020.00 FLOOR 301AB 305-308 309 310 311-312 313-315 316 317-318 319-320 321 322 324 325 326 Law Firm Non-profit Law Firm Law Firm Law Firm Law Firm Law Firm Law Firm Law Firm General Office General Office General Office Legal Services Marketing 971 1,220 340 339 514 832 275 778 702 332 391 219 180 207 MTM N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1,068.10 $1,342.00 $374.00 $372.90 $565.40 $915.20 $302.50 $855.80 $772.20 $365.20 $430.10 $240.90 $198.00 $227.70 $12,817.20 $16,104.00 $4,488.00 $4,474.80 $6,784.80 $10,982.40 $3,630.00 $10,269.60 $9,266.40 $4,382.40 $5,161.20 $2,890.80 $2,376.00 $2,732.40 FLOOR 400 Vacant 7,500 N/A $1.10 $8,250.00 $99,000.00 FLOOR 500 501 502 503-505 506 507+A 508 509 512 513 514 517 518 Law Firm General Office General Office Law Firm Insurance Company General Office Law Firm General Office Non-profit/Educational General Office General Office General Office General Office 846 257 445 860 354 750 239 242 2,206 191 339 196 173 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 23 $930.60 $282.70 $489.50 $946.00 $389.40 $825.00 $262.90 $266.20 $2,426.60 $210.10 $372.90 $215.60 $190.30 $11,167.20 $3,392.40 $5,874.00 $11,352.00 $4,672.80 $9,900.00 $3,154.80 $3,194.40 $29,119.20 $2,521.20 $4,474.80 $2,587.20 $2,283.60 NOTES Portion of lower level leased to Stockton Collegiate Int’l School SUITE/UNIT FLOOR 600-601 602 603 604 605 606 607 608 609-612 613 614 615 616 INDUSTRY SIZE LEASE EXPIRATION MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT Law Firm Law Firm Accounting General Office General Office General Office General Office Art Studio Vacant General Office General Office General Office General Office 675 334 278 366 226 370 252 994 2,882 189 209 172 208 4/30/2022 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $0.64 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $430.00 $367.40 $305.80 $402.60 $248.60 $407.00 $277.20 $1,093.40 $3,170.20 $207.90 $229.90 $189.20 $228.80 $5,160.00 $4,408.80 $3,669.60 $4,831.20 $2,983.20 $4,884.00 $3,326.40 $13,120.80 $0.00 $2,494.80 $2,758.80 $2,270.40 $2,745.60 FLOOR 700 701-702 703-704 705 706 707 708 709-710 711 712 714 715 716 718 719 720 721 Law Firm Non-profit Law Firm General Office Law Firm General Office General Office General Office General Office Law Firm Law Firm Non-profit General Office General Office General Office General Office Architect 462 559 559 244 354 220 220 862 261 186 687 1,709 370 204 169 195 239 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $1.10 $508.20 $614.90 $614.90 $268.40 $389.40 $242.00 $242.00 $948.20 $287.10 $204.60 $755.70 $1,879.90 $407.00 $224.40 $185.90 $214.50 $262.90 $6,098.40 $7,378.80 $7,378.80 $3,220.80 $4,672.80 $2,904.00 $2,904.00 $11,378.40 $3,445.20 $2,455.20 $9,068.40 $22,558.80 $4,884.00 $2,692.80 $2,230.80 $2,574.00 $3,154.80 FLOOR 801 802-804 805 806 807 808 809 810 811+A 812-814 815 General Office Law Firm General Office Law Firm Legal Services General Office General Office Advertising Firm General Office Law Firm Law Firm 247 779 311 274 223 246 334 316 365 802 2,843 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $1.15 $284.05 $895.85 $357.65 $315.10 $256.45 $282.90 $384.10 $363.40 $419.75 $922.30 $3,269.45 $3,408.60 $10,750.20 $4,291.80 $3,781.20 $3,077.40 $3,394.80 $4,609.20 $4,360.80 $5,037.00 $11,067.60 $39,233.40 *These numbers are estimates and projections NOTES T ER CORTOW Section Four: Economics 2024 REVENUE CONT.: SUITE/UNIT 816 817-818 819 INDUSTRY Marketing N/A Law Firm SIZE 191 372 197 LEASE EXPIRATION N/A N/A N/A MONTHLY BASE RENT PER SF $1.15 $1.15 $1.15 MONTHLY BASE RENT $219.65 $427.80 $226.55 ANNUAL BASE RENT $2,635.80 $5,133.60 $2,718.60 FLOOR 901+A 902+A 903 904 907 909-910 911 912 914-915 916 917-918 919+A 920-921 General Office Law Firm Law Firm Real Estate Lending General Office Art Studio Non-profit/Educational AT&T Equipment General Office Accounting General Office General Office General Office 489 594 330 281 240 1,062 692 202 414 282 652 686 858 N/A N/A N/A N/A N/A N/A N/A 3/31/2048 N/A N/A N/A N/A N/A $0.00 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20 $586.80 $712.80 $396.00 $337.20 $288.00 $1,274.40 $830.40 $242.40 $496.80 $338.40 $782.40 $823.20 $1,029.60 $7,041.60 $8,553.60 $4,752.00 $4,046.40 $3,456.00 $15,292.80 $9,964.80 $2,908.80 $5,961.60 $4,060.80 $9,388.80 $9,878.40 $12,355.20 FLOOR 10 10A 10B-F 10th Floor 10G 10H General Office Law Firm Real Estate Co Vacant Vacant 379 2,154 2,500 251 132 N/A N/A N/A N/A N/A $1.25 $1.25 $1.80 $1.25 $1.25 $473.75 $2,692.50 $4,500.00 $313.75 $165.00 $5,685.00 $32,310.00 $54,000.00 $3,765.00 $1,980.00 ROOFTOP 1ROOF 2ROOF Sprint/Nextel Ayera Technologies N/A N/A 9/30/2023 4/30/2024 $492.82 $810.70 $5,913.84 $9,728.40 SUBTOTAL 84,227 NOTES OPERATING EXPENSE REIMBURSEMENT ITEM MONTHLY Improvements $3.84 Maintenance $126.02 Repairs $4.68 HVAC $179.46 Utilities $848.97 Electricity $11,678.62 Water & Sewer $187.41 Gas $1,128.75 Alarm $63.51 Supplies $130.94 Trash $179.10 Telephone $0.25 MONTHLY PER SF $0.000 $0.001 $0.000 $0.002 $0.010 $0.139 $0.002 $0.013 $0.001 $0.002 $0.002 $0.000 ANNUAL $46.04 $1,512.22 $56.15 $2,153.51 $10,187.60 $140,143.46 $2,248.93 $13,545.00 $762.16 $1,571.29 $2,149.17 $2.95 ANNUAL PER SF $0.00 $0.02 $0.00 $0.03 $0.12 $1.66 $0.03 $0.16 $0.01 $0.02 $0.03 $0.00 SUBTOTAL $14,531.54 $0.173 $174,378.47 $2.07 TOTAL REVENUE $1,204,261.913 NOTE 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2023 EXPENSES: $1,029,883.44 ITEM Maintenance Repairs Janitorial HVAC Elevator Inspection & Repair Insurance Property Taxes Electricity Electricity - Roof sites Gas Alarm Water & Sewer Telephone Garbage Supplies Signage MONTHLY $979.68 $1,176.66 $4,161.60 $502.79 $805.32 MONTHLY PER SF $0.012 $0.014 $0.049 $0.006 $0.010 ANNUAL $11,756.11 $14,119.97 $49,939.20 $6,033.52 $9,663.82 ANNUAL PER SF $0.14 $0.17 $0.59 $0.07 $0.11 NOTE 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 $1,999.71 $17,556.75 $17,508.00 $327.26 $1,905.86 $1,988.46 $957.04 $584.62 $885.36 $76.72 $22.40 $0.024 $0.208 $0.208 $0.004 $0.023 $0.024 $0.011 $0.007 $0.011 $0.001 $0.000 $23,996.57 $210,681.00 $210,095.95 $3,927.14 $22,870.36 $23,861.56 $11,484.47 $7,015.45 $10,624.28 $920.64 $268.75 $0.28 $2.50 $2.49 $0.05 $0.27 $0.28 $0.14 $0.08 $0.13 $0.01 $0.00 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 2.0% increase per annum from 2021 SUBTOTAL $51,438.23 $0.611 $617,258.78 $7.33 ESTIMATED ACTUAL 2023 NET OPERATING INCOME CAP RATE ON 2021 ACQUISITION PRICE *These numbers are estimates and projections 25 $587,003.13 7.25% T ER CORTOW Section Five: Floor Plans FLOOR PLANS 27 LOWER LEVEL ± 7,500 SF T ER CORTOW Section Five: Floor Plans 1ST FLOOR + MEZZANINE 2ND FLOOR ± 9,500 SF ± 8,000 SF 29 T ER CORTOW Section Five: Floor Plans 3RD FLOOR 4TH FLOOR ± 7,500 SF ± 7,500 SF 31 T ER CORTOW Section Five: Floor Plans 5TH FLOOR 6TH FLOOR ± 7,500 SF ± 7,500 SF 33 T ER CORTOW Section Five: Floor Plans 7TH FLOOR 8TH FLOOR ± 7,500 SF ± 7,500 SF 35 T ER CORTOW Section Five: Floor Plans 9TH FLOOR 10TH FLOOR ± 7,500 SF ± 7,500 SF Maintenance Management Conference Room MD Office Brodder Kitchen DC Office Admin Assist + Acct Office Suites E-F Closet D G GA Lobby 37 B A