Irvine, California

EXECUTIVE SUMMARY | JUNE 2018

Irvine, California

OFFICE INVESTMENT OPPORTUNITY WITH UPSIDE IN THE IRVINE SPECTRUM

THE OFFERING

NKF Capital Markets ("NKF"), as exclusive advisor, is pleased to present the exceptional investment opportunity to acquire the fee simple ownership in Laguna Canyon Plaza (the Property), an irreplaceable institutional-quality office building within the Irvine Spectrum.

Laguna Canyon Plaza is an exceptional, 51,512 square foot, fee-simple steel-frame trophy high quality office building with rare exterior balconies and subterranean parking located directly within the Irvine Spectrum. The Property is currently 88% leased to an array of local and regional tenants with significantly below market in-place rents offering an investor a strong, secure and growing income stream with upside.

The Irvine Spectrum, with its abundance of lifestyle amenities and the "urban" gentrification of new housing options has transformed the immediate area into one of Southern California's most dynamic live-work-play environments with intrinsic qualities to fuel its growth and momentum well into the foreseeable future.

This investment opportunity is being offered unpriced on an "as-is, where-is" basis for the fee simple interest in the building, surface parking areas and land thereunder.

OFFERING SUMMARY

Interest Offered Fee Simple

Offering Price

Submit Offer

Terms

All Cash Preferred

PROPERTY SUMMARY

16485 Laguna Canyon Road, Irvine, CA 92618

51,512

RSF

?3 ACRES

Site Area

1991

Year Built

88%

Percentage Leased

?196

Total Parking Stalls

?3.8 / 1,000 RSF

Parking Ratio

FINANCIAL SUMMARY

In-Place NOI Average In-Place Rent Market Rent Average In-Place Rent Below Market 2018-2020 Lease Expirations

? $615,000 $2.17/SF FSG $3.00/SF FSG 28% 71%

RARE INSTITUTIONAL QUALITY, MULTI-TENANT OFFICE BUILDING WITHIN THE

IRVINE SPECTRUM

INVESTMENT HIGHLIGHTS

RARE INSTITUTIONAL QUALITY, MULTI-TENANT OFFICE BUILDING WITHIN THE IRVINE SPECTRUM

Laguna Canyon Plaza is a three-story, 51,512 rentable square foot office building that is currently 88% leased to a roster of notable regional and local tenants. The Property offers contemporary interior finishes, abundant window lines, freeway frontage and visibility, as well as rare exterior balconies and subterranean parking with direct elevator access to all floors. Tremendous upside can be achieved by rolling current tenants to market rates (mark-to-market play) as they expire, as well as increasing parking revenue from reserved subterranean parking stalls. Office buildings of this quality rarely come to market in the Irvine Spectrum.

EXCEPTIONAL MARK-TO-MARKET OPPORTUNITY WITH UPSIDE

Laguna Canyon Plaza provides and investor with the best mark-to-market opportunity in all of South Orange County, as in-place rents are approximately 28% below market with 71% rollover over the next two years. An investor can increase cash flow by rolling current tenants to market rates, as the average in-place rent is $2.17/SF FSG and the market rent is $3.00/SF FSG. Further upside can be achieved by increasing the reserved subterranean parking charges to $65+ per parking stall.

EXCELLENT INTRINSIC VALUE

The Property is valued well below the estimated replacement cost of $550 per square foot and at a discount to peak market sale comparables.

HIGHLY SOUGHT-AFTER IRVINE SPECTRUM LOCATION WITH TREMENDOUS ACCESS TO

RETAIL, ENTERTAINMENT & HOUSING

Laguna Canyon Plaza's location provides convenient access to numerous amenities, businesses, residential and recreational opportunities throughout the region. The Property is located less than two miles from the Irvine Spectrum Retail Center, which boasts more than 184 stores, 14 restaurants and a movie theater. Numerous new housing developments have been completed recently, or are underway nearby, including Quail Hill, Laguna Altura and Los Olivos, offering a wealth of new housing options.

ROBUST OFFICE MARKET FUNDAMENTALS

Fueled by increased tenant demand and limited new office construction, the South Orange County office submarket has posted multiple years of positive net absorption and multiple quarters of positive rent growth. Currently, the office submarket vacancy rate stands at 9.8%, one of the lowest vacancy rates in the entire county. The average asking office lease rate in South Orange County is currently $2.95/SF FSG (all property classes). Pent up tenant demand and low vacancy will feed upward pressure on both rental rates and value appreciation.

UNENCUMBERED BY EXISTING DEBT

Laguna Canyon Plaza is being offered free and clear of existing debt, allowing a potential investor to take advantage of today's historically low interest rate environment and aggressive debt markets to boost attractive leveraged returns.

Alton Parkway Pasteur

ORANGE COUNTY GREAT PARK

FOOTHILL RANCH

5

IRVINE Jenner

MISSION VIEJO

133

COMMERCIAL DEVELOPMENT

Laguna Canyon Road

405

MAJOR TENANTS Tenant IEC Corporation Helix Environmental Masler & Associates American Financial Network Comcash

Leased Square Feet 25,904 4,309 2,976 2,675 2,363

Percentage of Property 50% 8% 6% 5% 5%

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