32325 S. Coast HighwayLaguna Beach, California

Investment OpportunityMulti-Tenant Office Building

Prime South Laguna Beach LocationInvestment Sale Contacts:Mike Salmon Grant M. FreemanPartner PrincipalMadison Street Partners, Inc. Freeman Realty Company, Inc.Phone: (949) 468-2245 Phone: (949) 721-6627Mobile: (949) 689-8546 Mobile: (949) 230-4477mike@mspcre.com grant@freemanrealtyco.comCA DRE License No. 01509040 CA DRE License No. 01321446

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32325 S. COAST HIGHWAYEXECUTIVE SUMMARY

Madison Street Partners and Freeman Realty Company have been engaged as the exclusive investment saleadvisors to sell the fee interest in 32325 S. Coast Highway, a two-story, 3,350 rentable square foot (“RSF”)office building in Laguna Beach, California (the “Property”). The Property and investment opportunity offerthe following features:

• Rare Investment Opportunity – Unique opportunity to buy a well-located office building in the southernend of Laguna Beach (adjacent to the Three Arch Bay community) in close proximity to restaurants andbusiness services in Laguna Beach, Laguna Niguel and Dana Point. Buyer will have the ability to increaserents, with five of the seven existing leases being month-to-month or expiring in 2020, and one existinglease expiring in April 2021 (Seller has owned the Property for over 30 years, with existing rents wellbelow market).

• Pride of Ownership – Well maintained Property by long-term ownership that has self-managed for over30 years.

• Favorable Tenant Profile – Strong local tenant mix of professional firms, with the existing tenants livingwithin a short distance to the Property.

Property and Investment Highlights:• Year Built: 1962• Number of Floors: 2• Property RSF: Approximately 3,350• Number of Suites: 8• Land Area: Approximately 5,043 square feet, or 0.116 acres• Parking Spaces: 8 surface spaces behind the building, plus open parking in front of

the Property along S. Coast Highway• APN: 056-213-21• Zoning: Local Business – Professional Zone

• Percentage Leased: 90% (one available suite)• Sales Price: $2,480,000• Sales Price per RSF: $740

Disclaimer: Although information has been obtained from sources deemed reliable, Madison Street Partners, Freeman RealtyCompany, and their affiliates and other representatives make no guarantees as to the accuracy of the information containedherein, and is providing this property information and financial projections without expressed or implied warranties of anykind. Prospective investors should request all available property information and independently evaluate the potential risksand rewards of making such a commercial real estate investment.

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32325 S. COAST HIGHWAYLOCATION MAP AND AERIAL VIEW

Laguna Beach

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32325 S. COAST HIGHWAY

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32325 S. COAST HIGHWAYSALE COMPARABLES

Date Purchase Price Cap. Rate PriceProperty City Purchased RSF Year Built ($ millions) (if available) per RSF Notes(1) 32325 S. Coast Highway Laguna Beach TBD 3,350 1962 $2,480,000 $740

Laguna Beach

(2a) 355 3rd Street Laguna Beach Jul-19 1,920 1971 $1,920,000 $1,000 Purchased by nearby Laguna BeachPresbyterian Church - to demolishbuilding for additional church parking

(2b) 395 2nd Street Laguna Beach Jan-19 1,607 TBD $1,450,000 $902 Downtown; Mermaid and 2nd StreetMixed use - residential and office

(3) 469 Mermaid Street Laguna Beach Dec-18 1,822 1929 $1,850,000 $1,015 Downtown; Mermaid near 3rd StreetMixed use - residential and office

(4) 921-933 S. Coast Highway Laguna Beach Aug-18 5,396 1965 $5,825,000 2.15% $1,080 South of Downtown; near Thalia

(5) 407 Mermaid Street Laguna Beach Jan-18 1,972 1926 $3,750,000 $1,902 Downtown; Mermaid near 2nd Street

(6) 1275-1295 Glenneyre Street Laguna Beach Nov-17 1,491 1956 $1,500,000 $1,006 Sale-leaseback; South of Downtownnear Cress

(7) 385 2nd Street Laguna Beach May-17 2,869 1973 $3,200,000 $1,115 Downtown; 2nd near Mermaid

(8) 496 N. Coast Highway Laguna Beach May-17 3,783 1926 $3,465,000 $916 North Laguna; near Heisler Park

LB Averages: 2.15% $1,117Other Coastal Office Buildings(9) 34112 Violet Lantern St. Dana Point Sep-17 3,036 1975 $2,400,000 $791 Sale-leaseback

(10) 2535-2537 W. Coast Highway Newport Beach Jan-19 6,410 1969 $8,650,544 $1,350

(11) 2523-2525 W. Coast Highway Newport Beach Jan-19 1,936 1945 $3,349,456 $1,730

(12) 1950 W. Coast Highway Newport Beach Sep-18 2,250 1960 $2,425,000 $1,078

(13) 500 E. Balboa Blvd. Newport Beach Mar-17 1,088 1935 $1,500,000 $1,379

Other Averages: $1,265

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32325 S. COAST HIGHWAYSALE COMPARABLE MAP

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32325 S. COAST HIGHWAYRENTAL RATE COMPARABLES

MonthlyTotal Available Market

Property City / Area Bldg. RSF RSF Year Built Rent / RSF Notes(1) 32325 S. Coast Highway South 3,350 345 1962 $3.50 Mod. Gross Entrance to Three Arch Bay;

Laguna Beach ocean side of Coast Highwaywith ocean views

Asking Rent(2) 32322-32326 S. Coast Highway South 8,000 1,070 1973 $2.95 FSG, as is, Across the street from the subject

Laguna Beach or $4.50 FSG with (inland side of Coast Highway)full modern build-out

(3) 31624 S. Coast Highway South 12,023 2,580 1986 $2.50 NNN Inland side of Coast HighwayLaguna Beach

(3) 31716 S. Coast Highway South 2,506 928 1940 $3.15 Mod. Gross Inland side of Coast HighwayLaguna Beach

(4) 32392 S. Coast Highway South 13,954 775 1988 $3.00 Mod. Gross Inland side of PCHLaguna Beach

(5) 33971 Selva Road Dana Point 18,995 2,294 1985 $3.25 NNN Comparable location; ocean side ofPCH near Strands Beach

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32325 S. COAST HIGHWAYRENTAL RATE COMPARABLE MAP

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