7200 Redwood_Capital Markets_OM_v01

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

EXECUTIVE SUMMARY

DISCLAIMER

Newmark has been engaged as the exclusive sales representative for the sale of 7200 Redwood Blvd in Novato, CA (the ”Property”) by Graham Street Realty Real Estate Investments (the “Seller”).

The Property is being offered for sale in an “as-is, where-is” condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a “Registered Potential Investor” or as a “Buyer’s Agent” for an identified “Registered Potential Investor”. The use of this Offering Memorandum, and the information provided herein, is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by the Agent prior to delivery of this Offering Memorandum.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to Agent.

The Seller will be responsible for any commission due to the Agent in connection with a sale of the Property. However, any broker engaged by Purchaser (“Buyer’s Broker”) shall seek its commission only from the Purchaser. Under no circumstances will the Agent or the Seller be liable for same and recipient will indemnify and hold the Agent and the Seller harmless from any claims by any brokers having dealt with recipient other than the Agent. Any Buyer’s Broker must provide a registration signed by the recipient acknowledging said Buyer’s Broker’s authority to act on the recipient’s behalf.

THE OPPORTUNITY

Newmark, as the exclusive advisor, is please to extend to qualified investors and owner-users the opportunity to acquire the 100% feesimple interest in 7200 Redwood Boulevard, Novato (the “Property”), a value add suburban office building located among the affluent communities of Marin County, California.

As one of the few Class A office assets within the Downtown Novato area, with no planned new office development, the Property has maintained high long-term historic occupancy and recent positive absorption. 7200 Redwood is currently 80.7% leased with a 3 year weighted average lease term. The Property serves a diverse mix of professional office users and is anchored by Kaiser Permanente.

PROPERTY SUMMARY

Address 7200 Redwood Blvd , Novato, CA 94954

BOMA NRA 52,019 SF

NRA (As-Leased) 49,250 SF

EXECUTIVE SUMMARY

PRICING SUMMARY

Credit

Highly functional improvements with vacant spaces in spec condition

Proven track record of long-term tenancy –57% of NRA has a 20-year average occupancy

Marin County has some of the highest barriers to entry in the United States

Marin County boasts some of the strongest demographics in California with a large executive population

Downtown Novato has experienced significant new mixed-use residential and retail development, making Novato an appealing destination for the new hub & spoke work trend

7200 Redwood presents an investor or owner-user with the opportunity to acquire a credit rated anchored and well occupied suburban office building within affluent Marin County at a compelling return and basis.

tenant, Kaiser Permanente (Fitch Credit Rating: AA-), anchoring over 34% of the building

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS

STICKY TENANTS - LONG TENURE

57% OF THE NRA HAS BEEN IN OCCUPANCY ON AVERAGE OVER 20 YEARS

KAISER PERMANENTE

• 27 years at the property

• Types of Services: Healthcare

• 39 Hospitals nationwide

• 34% of NRA

OBERKAMPER & ASSOCIATE CIVIL ENGINEER

• 15 years at the property

• Type of Services: Civil Engineering and Land Surveys

• 12% of NRA

GHIRARDO CPA

• 25 years at the property

• Type of Services: Tax and Wealth Planning, Auditing, Accounting, Business and Real Estate Consulting

• 11% of NRA

INVESTMENT HIGHLIGHTS

% OF BUILDING BY TENANT TYPE

80.7% TECH EXPOSURE 0% % OF TENANTS VACATING SINCE COVID-19: 0%

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

AMENITIES

PRIME A+ LOCATION - UNRIVALED CONVENIENCE, AMENITIES, AND ACCESSIBILITY

Located in the heart of Novato, 7200 Redwood sits over 2.39 acres of land and is surrounded by rolling hills and an abundance of natural beauty. The Novato Fair Shopping Center, Whole Foods Market, and Downtown Novato Center provide convenient access to a range of retail stores and dining options, while the area’s proximity to major highways and transportation hubs make it easily accessible.

WALKING DISTANCE TO DOWNTOWN RETAIL AMENITIES.

Across from the Novato Fair Shopping Center and walkable to Downtown Novato’s many amenities and services.

DRIVE TIMES

Petaluma: 15 Min

San Rafael: 16 Min

Vallejo: 30 Min

SMART TIMES

Petaluma: 26 Min

San Rafael: 30 Min

San Francisco 45 Min

Berkeley: 35 Min

To Petaluma

To San Rafael

Downtown Center

DE LONGAVENUE

Smart Station

DOWNTOWN

Novato Fair Shopping Center

Vintage Oaks Shopping Center

REDWOOD BOULEVARD

INVESTMENT HIGHLIGHTS

NOVATO OVERVIEW

Novato is a city in Marin County, California, approximately 29 miles north of San Francisco. Novato has a rural atmosphere making it a popular destination for outdoor recreation, with miles of hiking and biking trails, as well as several parks and beaches. Novato is a relatively affluent city with a high median household income and a well-educated population, a 90.6% high school graduation rate, and a 56.4% bachelor’s degree attainment rate of 56.4%. The city is considered one of the safest in the Bay Area.

The city is also home to a number of recognizable wineries, breweries, and restaurants. The major tenants are technological companies, healthcare providers, and educational institutions, with Kaiser Permanente, the Marin County Department of Health and Human Services, and the Novato Unified School District acting as the major employers.

HIGHLIGHTS

• Large biotechnology, healthcare, and green technology hub due to immediate access to highly educated workforce.

• Excellent access and transportation infrastructure.

• Steady demand generators from a highly diversified corporate base.

POPULATION

53,214 MEDIAN AGE 48.6

MEDIAN INCOME $107,975 GROWTH FROM PREVIOUS YEAR. 6.2%

MEDIAN HOME VALUE $965,000 WHITE COLLAR WORKERS 87.41%

• Severe barriers to entry due to limited inventory.

PROPERTY OVERVIEW

PROPERTY DESCRIPTION

Address 7200 Redwood Blvd Novato, CA 94945

APN 153-091-10

BOMA NRA 52,019 SF

NRA (As-Leased) 49,250 SF

Lot Size

2.39 AC (104,108 SF)

Occupancy 80.7%

IMPROVEMENT OVERVIEW

Stories

4

Construction Type

Parking Ratio

2.82/1,000 SF Year Built 1991 Zoning O; or PD:D

BOMA MEASUREMENT & “AS-LEASED” NRA

7200 Redwood measurements reflect BOMA 2017 Office Standards. The 2017 BOMA Office Net Rentable Area is 52,019 square feet. Current ownership has elected to lease the property at market load factor. The calculated NRA area 49,250 square feet.

Cast-in-place reinforced concrete walls, columns, and beams for the first and second floor levels. Levels three and four are load-bearing, wood-framed, exterior and interior walls of dimensional wood studs and plywood sheathing. Floor and roof structures consist of lightweight concrete on plywood sheathing.

Foundation Cast-in-place, reinforced, concrete, foundations and footings supporting the load-bearing, exterior and interior, walls and/or columns.

Roof Build-up roof with mineral cap sheet

Power 1,600 AMP, three phase, four wire, 277/480 Volts

Plumbing Copper and cast-iron waste lines

Elevator Two 2,000-pound capacity hydraulic elevators

Life Safety & Fire Protection Full coverage wet pipe sprinkler system

HVAC Four roof-mounted package units – 2 Carrier 10 Ton, 2 Carrier 25 Ton. One roof-mounted Laars 715,000 BTUh gas-fired boiler.

Electrical Service  PG&E

Gas  PG&E

Water & Sewer North Marin Water District

7200 REDWOOD BOULEVARD NOVATO CA HAYDENAVE HAYDEN

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

FLOOR PLANS

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

FLOOR PLANS

THIRD LEVEL

FOURTH FLOOR

MARKET OVERVIEW

NOVATO MARKET OVERVIEW

The Marin County office market remained stable in the first quarter of 2023, experiencing many renewals and extensions, with a Novato recording 3,115 SF in absorption. The Novato market is in a prime position for upside potential and positive market trends.

The Novato market is making a strong recovery following the impact of the COVID-19 pandemic. Vacancy rates have dropped 500 bps or 16.7% since the pandemic’s peak in Q3-2021.

MARKET OVERVIEW

NOVATO OVERALL ABSORPTION (SF)

NOVATO OVERALL FS RATES

Novato FS Rates

Over the previous six quarters (Q4-2021 to Q1-2023), the Novato office market recorded 80,465 net positive absorption. Marking a rapid turnaround from the previous six quarters, which registered (206,461) SF of negative absorption.

Novato’s asking rates stabilized and have slightly increased to $2.54 FSG for Q1-2023. In fact, Novato’s average asking rates remain higher than Pre-Covid asking rates in 2018, which recorded an average asking rate of $2.52 FSG.

PRE-COVID TO TODAY

RECENT LEASE COMPS

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW

4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

COMPETITIVE SET

MARKET OVERVIEW

FINANCIAL OVERVIEW

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

MARKET LEASING ASSUMPTIONS

General Vacancy: 10% (Percentage of Potential Gross Revenue) General Vacancy Loss Factor attributes losses to porojected lease-up, roll over, and downtime. All tenants are subject to this loss factor.

Capital Reserves $0.20 PSF Per Year (2023)

Capital Expenses: $1,921,925 in Building Improvements

CASH FLOW NOTES

OPERATING REVENUE

1. Rental Revenue

Rental Revenue is derived from the existing leases and the market assumptions detailed previously.

2. Building Measurements:

7200 Redwood measurements reflect BOMA 2017 Office Standards. ASBUILT Services conducted the most recent measurements in September 2017. This report’s calculated 2017 BOMA Office Net Rentable Area is 52,019 square feet. Current ownership has elected to lease the property at a market load factor. The calculated NRA used in the following analysis is 49,250 square feet.

3. Expense Reimbursements:

Current office tenants at 7200 Redwood have Full Service Gross (FSG) leases, and they are structured so that tenants pay their pro-rata share of increases in operating expenses and real estate taxes over their respective base year amounts. All expense reimbursements are grossed-up to 95% occupancy with the exception of suite 300 which is grossed-up to 100%.

4. Storage Revenue:

Storage revenue is generated from storage space in the basement.

OPERATING EXPENSES

The projected operating expenses in Year 1 of the analysis are based on the current owner’s 2022 YE P&L to estimate the operating expense budget 2023. Operating Expenses are assumed to increase by 3.0% while Real Estate Taxes are assumed to increase by 2.0% annually. Operating expenses are assumed to be 100.0% fixed unless noted otherwise below.

1. Utilities

Utilities include electricity, trash removal, telephone, and water costs to service the property. The utilities are based on ownership’s 2023 expense budget and are 50% fixed throughout the analysis.

2. Repairs and Maintenance

Repairs and Maintenance expenses include Building R&M, Building Roof R&M, Building R&M, Building Key/ Lock/Signage, Building Seasonal Decorate, Building Painting Contract, Lighting, and Engineering.

3. Cleaning

Cleaning expenses include janitorial contracts and supplies for cleaning the premises. Cleaning expenses are assumed to be 50% fixed throughout the analysis.

4. Insurance

Assumed insurance expenses include the cost of general and property insurance premiums. Insurance expenses are assumed at a market rate of $0.40 per rentable square foot.

5. Landscape / Grounds

Landscaping expenses include all costs associated with the contracts of maintenance and upkeep of the landscaped improvements and parking lot sweep.

6. Security Fire Alarm Contract

The security and life safety expenses includes all costs related to the contracted fire alarm and security service to the building.

7. Elevator Maintenance

Elevator maintenance expenses includes costs related to the contracted services and repairs of the two (2) passenger elevators.

8. HVAC Maintenance

The heating ventilation and air conditioning maintenance expense includes the costs of contracted maintenance services, repairs, supplies, and other expenses associated to the HVAC unit and its controls.

9. Plumbing Maintenance

Plumbing maintenance expenses includes the costs of contracted maintenance services, repairs, supplies, and other expenses associated to the water supply, drainage systems, and fixtures in the building.

10. Real Estate Taxes

Real Estate Taxes are based on the 2022-2023 tax bill for Marin County parcel numbers 153-091-10 and frown two (2%) percent for Ad Valorem Taxes. The 2022-2023 tax bill includes a millage rate of .71736%. Investors should make their own assumptions as to the effect of sale on the assessed value and adjust accordingly.

11. Electrical Maintenance

Electrical maintenance includes the cost associated with the installation, repair, and maintenance of the electrical systems, equipment, and fixtures in the building.

12. Property Management

Management Fee is assumed to be 4.0% of the effective gross revenue.

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

VACANT SPACE LEASING ASSUMPTION

LEASE EXPERATION SCHEDULE

CASH FLOW PROJECTIONS

2

RENT ROLL

3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

Notes: Landlord has the right to have Landlord’s architect calculate and certify in writing to the are of the Premises in rentable square feet for Option to Extend: Tenant’s option to extend the term of the Lease are set forth in Section 4 of the Fifth Amendment; Tenant’s Notice to Landlord

Note: BY net total increase shall not exceed five (5%) above the previous year's expense. Operating expenses should not include: management Modification to Lease: Lessee at its cost and at any reasonable time upon prior notice to Lessor given not later than ninety (90) days after receipt

Option: Landlord and Tenant agree and acknowledge that upon execution of this Amendment, any options that may exist to extend the lease

Landlord and Tenant agree and acknowledge that upon execution of this Amendment, any options that may exist to extend the lease

Note: It is assumed that Vacant suite 312 leases up on February 1, 2024.

Note: It is assumed that Vacant suite 320 leases up on July 1, 2024.

Note: Lessee has the option to extend the term for two (2) additional period(s) of one (1) year. Tenant also leases 90 SF of storage at $140.63

RENT ROLL

for purposes of determining the monthly Base Rent for that extension period and the term of the Lease thereafter. Landlord on or before the date that is six (6) months prior to the expiration date, but, no event prior to nine (9) months prior to the expiration date of the current term at 95% FMV.

management fees in excess of 3% of gross rentals. receipt of Lessor's statement of Operating

lease are hereby terminated.

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

RENT ROLL

Note: It is assumed that Vacant suite 320 leases up on December 1, 2024.

Note: Tenant leases additional storage space, free of charge.

Note: It is assumed that Storage space (1N) leases up on July 1, 2024. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (1N) leases up on July 1, 2024. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (2N) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage(3N) leases up on July 1, 2024.

RENT ROLL

1

SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

RENT ROLL

Note: It is assumed that Storage space (4N) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (5N) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (6N) leases up on January 1, 2025. The storage sapace assumes no base year calculations.

Note: The financial model assumes that Storage space (7N) holds a 1 year term from the lease analysis start date. The tenant’s actual lease

Note: It is assumed that the Vacant storage space, Storage (8N), leases up on July 1, 2025. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (9N) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (10N) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (1S) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (4S) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (5S) leases up on January 1, 2026. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (6S) does not collect storage rent. The storage sapace assumes no base year calculations.

RENT ROLL

lease is Month-to-Month. The storage sapace assumes no base year calculations.

calculations.

1 EXECUTIVE SUMMARY 2 INVESTMENT HIGHLIGHTS 3 PROPERTY OVERVIEW 4 MARKET OVERVIEW 5 FINANCIAL OVERVIEW

RENT ROLL

Note: It is assumed that Storage space (9S) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (9S) does not collect storage rent. The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (9N) does not collect storage rent. The storage sapace assumes no base year calculations.

Notes: The storage sapace assumes no base year calculations.

Note: It is assumed that Storage space (9S) does not collect storage rent. The storage sapace assumes no base year calculations.

RENT ROLL