1403Main by Darvishian Group

Santa Ana- CA 1403 SOUTH MAIN STREET

OFFERING MEMORANDUM

FOR SALE - Two story office building $1,500,000 1 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CONFIDENTIALITY / DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Shaw Equity Inc. and Darvishian Investment Group and should not be made available to any other person or entity without the written consent of Darvishian Investment Group. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Shaw Equity Inc. and Darvishian Investment Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Shaw Equity Inc. and Darvishian Investment Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Darvishian Investment Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Darvishian Investment Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. NET-LEASED DISCLAIMER Shaw Equity Inc. and Darvishian Investment Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Shaw Equity Inc. and Darvishian Investment Group has not and will not verify any of this information, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters. Shaw Equity Inc. and Darvishian Investment Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Shaw Equity Inc. and Darvishian Investment Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/ her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Shaw Equity Inc. and Darvishian Investment Group Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

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The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

TABLE OF CONENTS

2 4 5 6 8 10 12 16 18 20 22

CONFIDENTIALITY AERIAL OVERVIEW SITE PLAN INVESTMENT OVERVIEW LOCATION OVERVIEW PRICING PROPERTY PICTURES PARCEL MAP FINANCING QUOTE DEMOGRAPHICS CONTACT PAGE

3 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Aerial OVERVIEW

DOWNTOWN SANTA ANA

MAIN STRE

1403 S. MAIN

4 4

Site plan

5 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

The Darvishian Investment Group is pleased to present for sale 1403 South Main Street in Santa Ana, CA. The subject property is a +/- 4,815 square foot two-story office building on 8,817 square feet of land. The office building contains two floors of office space that can either be used by one, two or multiple tenants. The office features high ceilings, a front lobby and reception area, multiple conference rooms, private offices and a courtyard internal staircase. The property is located on South Main street, very close to Downtown Santa Ana, immediately adjacent to the U.S. Postal service and conveniently near the 55 and 5 freeways.

■ ■ Located on busy South Main Street - Corner Location ■ ■ Two-story free standing office building ■ ■ Secure on-site gated parking lot ■ ■ Impressive courtyard design with staircase ■ ■ Mens and Womens’ rest rooms on both floors ■ ■ Security cameras installed around property

Currently, the SBA 504 owner/user loan rates are at historic low levels. With a 10% down payment, an owner user can borrow at a 3.45% [1] 25-year fixed rate, fixing your occupancy cost at a low payment for up to 25 years. At current interest rates, the monthly mortgage for this investment would be $6,954 per month. In addition, a new owner could lease a portion of the space out (up to 49%) and reduce the monthly mortgage cost.

■ ■ Easily divisible for additional income

FINANCIAL HIGHLIGHTS ■ ■ Building ownership allows fixed occupancy costs and tax incentives ■ ■ 10% down SBA-504 loan available ■ $26,582 in annual depreciation tax write-offs [2] ■ ■ $49,575 in Year 1 interest tax write-offs [2] ■ ■ $33,882 in Year 1 equity build up [2] ■ ■ Excellent hedge against inflation and rising costs ■

[1] Interest rates and loan terms are dependent on borrower and subject to market conditions, consult a loan professional for individual loan programs. [2] Depreciation assumes 70/30 building/land value, consult your tax professional for individual tax benefits.

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7 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

LOCATION overview

LOCATION highlights ■ Conveniently located near Downtown Santa Ana

DTSA - a huge hub of growth and

development

■ Immediately North of

an United States Postal Service location - allowing easy access for companies that use the postal service

■ Corner location - Excellent street frontage and visibility of the building ■

Close proximity to the Orange County superior court - Ronald Reagan federal courthouse

1403 South Main is located on the South East corner of Hobart Street and South Main street in the city of Santa Ana, CA. The property sits on a corner lot on an approximately +/- 8,712 square foot rectangular lot. The property is conveniently located near Downtown Santa Ana as well as South Coast Metro and Irvine, CA. Freeway accessibility is via the 55 or 5 freeways. The property is in close proximity to the Orange County Superior court, Ronald Reagan federal courthouse, a host of government municipalities, dozens of amenities including restaurants, business and personal services.

8 8

South Coast Metro

South t Stree Main

Hobart St.

9 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

LOCATION DETAILS Address

1403 South Main Street

City, State, Zip Code

Santa Ana, CA 92707

County

Orange

INVESTMENT Price

$1,500,000

Suggested Downpayment

$150,000 [10%]

PROPERTY DETAILS Property Type

Multi- tenant Office

Building Size

4,815 Approx SF

Lot Size

8,817 Approx SF

Zoning

CSM- Commercial South Main

Class

Parking

10 Parking Stalls

Year Built

1967

Walk Score

Very Walkable (81)

APN

014-032-39

Opportunity Zone

Yes

Sale Type

Fee Simple (Building and Land)

10 10

11 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

property pictures

Interior Staircase

Entry way into front door

12 12

Secure gated parking

13 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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15 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

PARCEL INFORMATION

16 16

115â&#x20AC;&#x2122;

128â&#x20AC;&#x2122;

17 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

PROPOSED SBA 504 LOAN STRUCTURE Mark Hogan VP, Senior Commercial Lender Direct: (714) 918-0998 Cell: (949) 632-0275

Prepared for: Pasha Darvishian Group USE OF PROCEEDS Land & Building

ESTIMATED MONTHLY PAYMENTS Square Footage Building Cost Per Square Foot

Building Improvements

#DIV/0!

$0 $0

Equipment Soft Costs (estimated): Appraisal Environmental Title Total Soft Costs Total Project Cost

$1,500,000

$3,239

Combined Monthly Payment BANK LOAN AMOUNT AND TERMS

Term (Years) Note Rate (Fixed) Regulatory Fees Effective Rate

50.0% 40.0% 10.0%

$750,000 $600,000 $150,000

Total Project Cost

100%

$1,500,000

$600,000 $9,000 $3,000 $1,500 $2,500 $2,476 $618,476 $524 $619,000

Debenture rounded up to nearest $1,000 Summary Debenture loan fees paid

$18,476

$750,000 3.80% * 25 $7,500

and bank. The information contained herein is for discussion purposes only and is not binding.

Source of funds Bank 1st TD Loan Net Debenture Proceeds Borrower

$7,115

* Bankâ&#x20AC;&#x2122;s interest rate and fee are negotiable between borrower

504 TERMS & ESTIMATED PAYMENTS

Bank Interim Loan CDC Processing Fee (1.5%) SBA guaranty fee (0.5%) Funding Fee (0.25%) Legal Closing Fees Underwriting Fee (0.40%) Subtotal Balance to Borrower Gross Debenture

SBA 2nd TD

FINANCE STRUCTURE

504 ESTIMATED FEES

$3,876

Bank Loan Amount Interest Rate (25 Yr Fixed) Years Bank Loan Fee 1.00%

$0 $0 $0 $0

Bank 1st TD

25 2.25% 1.046% 3.48%

Payment presented in the following schedule includes standard principal & interest amortization plus regulatory fees as described below Years Total Payment 1-5 $3,239 6-10 $3,154 11-15 $3,059 16-20 $2,952 20-25 $2,833 $3,047 Explanation of Note Rate and Regulatory Fees The Note Rate is not determined until funding of the Note. The Effective Rate shown here is based on current rates; your rate may be different. The Effective Rate is based in part on a calculation of the amount paid over the life of the loan. The calculation provided in this document is made with no representation or warranty that this is the amount to be paid under your loan. Please confirm all information and calculations. To ensure the 504 program is self funded Regulatory Fees are collected monthly and paid to CDC, SBA, and a Central Servicing Agent. Fees are adjusted every 5 years based on the outstanding balance of the Note.

Borrower: *Contact loan expert for actual quote. **Buyer to verify all loan options with a qualified loan broker. Rate andfor terms subject to change. Visit us online a lease vs. buy analysis, SBA rate history, online prequalification, and more: www.cdcloans.com

19 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

POPULATION

MEDIAN HH INCOME

POPULATION GROWTH

1403 S. MAIN

356,593

$53,396

3.86%

81 OUT OF 100

3 MILE RADIUS

Walking Score

20 20

SANTA ANA, CALIFORNIA 19

PS 22

13 14

PS 38 39

42 40

26 24

8 9

1 2

20 21

34 35

11 12 13 14

3rd St.

PL 4

Downtown Plaza

36 37

5 3

ECONOMY Santa Ana is part of a metropolitan area which includes Los Angeles and Long Beach. When it comes to gross metropolitan product of U.S. metro areas, Los Angeles-Long Beach-Santa Ana, CA is ranked number two in 2013 with a GMP of $792.2 billion. When gross domestic product (GDP) and gross metropolitan product (GMP) for country or metro area were compared, Los Angeles-Long BeachSanta Ana, CA ranked number 20 for their 2013 numbers. The ranking for Santa Ana was higher than both Saudi Arabia and Switzerland, which ranked 21 and 22 respectively. The estimated annual growth rate of United States metro area economies from 2013-2020 is 2.9 percent with $686.5 billion in 2013 and an estimated $838.2 billion in 2020.

PS 4th Street Market

4th St. 12

2nd St.

CORPORATE HEADQUARTERS Santa Ana is the corporate headquarters of several companies including Behr Paint, Core-logic, Corinthian Colleges, First American Corporation, Greenwood & Hall, Ingram Micro, The Orange County Register, Schools First Federal Credit Union, STEC, TTM Technologies, beverage company Kern’s, and Wahoo’s Fish Taco. It also houses major regional headquarters for the Xerox corporation, Ultimate Software, and T-Mobile. Nonprofits based in Santa Ana include Open Doors.

Bush St.

French St.

Sycamore

Main St.

Broadway

Birch St.

Spurgeon

5th St. 15

Ross St.

anta Ana is the county seat and second most populous city in Orange County, California. The United States Census Bureau estimated its 2011 population at 329,427, making Santa Ana the 57th most-populous city in the United States. Santa Ana is also the 4th highest density in the nation per square mile.

WHERE TO EAT IN DTSA

McFadden Public Market

18 19 20 21 22 23 24

1st St.

26 27 28 29 30 31 32 33

MAP LEGEND PL

Parking Lot

= Great stop for breakfast and lunch! = A dinner/late night stop!

Parking Structure

Pedestrian Parkway

Landmark

If you’re here for a quick trip, grab a meter. For longer trips, there are parking structures close by.

Parking meters are enforced Monday - Saturday from 8am - 10pm. Meters accept nickels, dimes, quarters, or you can pay with credit card. Clean & Safe phone number:

34 35 36 37 38 39 40 41

(714) 818-9538

42 43

Pho 88 • (714) 568-0338 Gypsy Den • www.gypsyden.com Congregation Ale House • congregationalehouse.com Lola Gaspar • lolagaspar.com Blackmarket Bakery • www.blackmarketbakery.com Chapter One: the modern local • www.chapteronetml.com El Indio Botanas y Cervezas • (714) 547-7868 Kebab Place • www.kebab-place.com Cafe Cultura • cafecitocultura.com The Good Beer Co. • www.thegoodbeerco.com/welcome Irenia • ireniarestaurant.com VLVT Lounge • www.velvetoc.com Crave • http://www.crave410.com/ Fleenors on 4th • (714) 316-5421 Mil Jugos • www.miljugos.com The Chicken Rice • www.thechickenrice.us La Rinconada • la-rinconada-restaurant.business.site Hector’s on Broadway • hectorsonbroadway.com Chevita’s Juice and Bagels • www.facebook.com/ChevitasJB Vacation Bar • vacationdtsa.com Hopper & Burr • hopperandburr.com Pizza Press • www.thepizzapress.com/location/santa-ana-ca McFadden Public Market • www.mcfaddenmarket.com Mix Mix • www.mixmixkitchenbar.com Mission Bar • www.missionbarsa.com Omakase by Gino • (657) 231-6008 El Rincon Mexicano • elrinconmexicanorestaurant.com Original Mike’s • www.originalmikes.com Las Casuelas • restaurante-las-cazuelas-mexican-restaurant.business.site Eat Chow • www.eatchow.com 4th Street Market • www.4thstreetmarket.com Playground • www.playgrounddtsa.com La Michoacana Express • (714) 760-4334 Kaizen Shabu Shabu • kaizenshabu.com El Mercado • www.mercadomodern.com La Santana Modern Cantina • (657) 231-6005 Cevicheria Nais • (657) 231-6005 Taquerias Guadalajaras • (714) 953-1191 Native Son Alehouse • www.nativesonale.com Wursthaus • wursthausdtsa.com Coﬀee Muse • www.mycoﬀeemuse.com Mr. Matcha • gomrmatcha.com Downtown Plaza

#DTSA

www.downtown-santaana.com DEMOGRAPHICS 1 MILE

3 MILE

5 MILE

62,959

356,593

707,347

POPULATION 2021

65,444

370,367

736,042

MEDIAN HOUSEHOLD INCOME

$39,344

$53,396

$60,351

3.95%

3.86%

4.06%

$384,296

$377,058

$451,360

4.20

4.00

3.60

POPULATION 2016

POPULATION GROWTH MEDIAN HOME VALUE AVG HOUSEHOLD SIZE

21 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Shaw Equity Inc. and Darvishian Investment Group has not verified, and will not verify, any of the information contained herein, nor has Shaw Equity Inc. and Darvishian Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

1403 SOUTH MAIN, SANTA ANA CA

Exclusively Presented By DARVISHIAN INVESTMENT GROUP CA BRE Lic No 01915377

www.darvishiangroup.com Orange County Office 600 Anton Boulevard, 11th Floor Costa Mesa, CA 92626 Pasha Darvishian Managing Partner BRE Lic No 01397162 Pasha@darvishiangroup.com +1 949 396 1075 Direct Jon Hauso Vice President Investments BRE Lic No 02003482 Jon@darvishiangroup.com +1 949 396 1028 Direct

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