Shawn Johnson, Managing Partner / SIORDave Peterson, Partner

1355 N. Dutton Ave • Santa Rosa, CA 95401(707) 528-1400 • Fax (707) 524-1423

CA License #: 00835502 • SJohnson@keegancoppin.comCA License #: 01280039 • DPeterson@keegancoppin.com

KEEGAN & COPPIN COMPANY, INC.ONCOR INTERNATIONAL

Commercial Real Estate Services

520Mendocino Avenue

Santa Rosa, CA

FOR SALE

Downtown Santa Rosa Fully Leased Office Investment

• SALE PRICE: $9,500,000 • APN 009-024-048

• 47,110± Building Square Feet

• 6.26% Cap Rate

• 100% Leased to 3 tenants

• $1,032,270 Gross Income (2018*)

• $594,757 Net Operating Income (2018*)

• Area: 0.169 Acres

• Built in 1983

• Recently remodeled in 2014

• 3 Stories - elevator served

Downtown Santa Rosa Fully Leased Office Investment

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

520Mendocino Avenue

Santa Rosa, CA

HIGHLIGHTS

Keegan & Coppin Co., Inc is pleased to present this opportunity to acquire the fee simple interest in 520 Mendocino Avenue, a three-story multi-tenant office building. The building is approximately 47,110 sq. ft. on approximately 0.169 acre parcel. This proper-ty has been owned by the current partnership since 2002 and has been very well maintained showcasing a “Pride of Ownership”. The quality of construc-tion, design elements inside and out, and profession-al management and maintenance should all be taken into account when considering this rare Downtown Santa Rosa office investment opportunity. This prop-erty is locatd in the Sonoma County Downtown mar-ketplace.

This building is elevator served, with multiple pri-vate offices along glass line, some with private balco-nies. Newly remodeled, clean, modern building, with

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

520Mendocino Avenue

Santa Rosa, CA

EXCEPTIONALOPPORTUNITY

Downtown Santa Rosa Fully Leased Office Investment

abundant glass line, private offices, reception area, conference room. Parking is abundant and available at the 7th Street Garage, located di-rectly across the street from 520 Mendocino Avenue Building. Building has a condominium map in place. This could allow an owner/user or investor the ability to sell individual units or floors to owner/users or investors for substantial profit in the future. Typical office condominiumprices range from $240 to $300 per square foot. 520 Mendocino Avenue is located at the signalized intersection of Mendocino Avenue and Seventh Street in Santa Rosa California. Prime downtown location, easy walking to banks, restaurants, shops, entertainment, etc. Exit 101 at Downtown College Avenue exit. Public trans-portation also available.

520Mendocino Avenue

Santa Rosa, CA

FINANCIALSUMMARY

Downtown Santa Rosa Fully Leased Office Investment

Price: $9,500,000

Price Per S.F.: $201.65 psf

S.F. Area: 47,110± SF

Property Type: Office Building

Lot Size: 0.169± ac (7,380± sf)

NOI (Annual): $594,757

CAP Rate: 6.26%

Occupancy: 100%

Annual Scheduled Income: $1,032,270

Less Annual Expenses (2017 Budget)Janitorial $49,300

Janitorial Service (Day Porter) $11,800

Janitorial Supplies $9,000

Interior Landscape $2,060

Fire Life Saftey (Contract) $1,600

Fire Life Saftey (Repairs) $1,300

Security Patrol $4,200

Plumbing Maint. & Repairs $3,600

Property Management $51,614

Electrical Maint. & Repairs $2,400

Maintence Repair (Other) $4,800

HVAC Contract $9,000

HVAC Repairs $14,400

Elevator Contract & Repairs $2,700

Pest Control $900

Keys & Locks $900

PG&E (Gas & Electric) $121,350

Garbage & Recycling $6,000

Telephone $1,440

Water & Sewer $12,000

Property Tax $111,150

Insurance P&L $12,000

Accounting Fees $4,000

Total Annual Expenses (Budgeted): ($437,514)

Annual Net Operating Income: $594,757Income based on 2018. Expenses based on 2017 budget.

Based on $9.5m sale price

520Mendocino Avenue

Santa Rosa, CA

TENANTSUMMARY

Downtown Santa Rosa Fully Leased Office Investment

Suite TenantRentable Sq. Ft.

Lease Term Next Scheduled Increase Date

Option No. x TermStart End

100, 200, 301, 303, 310 County of Sonoma 42,366± 6-1998 10-2020 11-2017 (3) 3 year

330 & 380 Reservation Key 4,158± 4-2013 5-2020 6-2018 N/AEquipment Room & Roof Sprint (Cell Tower) 586± 4-1996 10-2021 11-2021 (5) 5 year

Auto renewes

Occupancy: 100% leased Total Rentable Square Feet: 47,110 ± Total Monthly Rent: $86,022.50 ± Annual Scheduled Rent: $1,032,270 ±

All income numbers based on 2018 actual & expense numbers based on 2017 budget.Additional rent roll details are available upon request by executing a Confidentially Agreement.

County of SonomaEconomic AssistanceHuman Services Department

Low-income, other individuals and families with children can apply for money for food (CalFresh), health care (Medi-Cal, CMSP, Covered Califor-nia), General Assistance (financial aid) and other supportive services. Also eligible for benefits are disabled or unemployed persons, and children in foster homes and former foster youth.

Reservation Key

Reservation Key was started in early 2010 in order to provide a simple, yet powerful and economical, way to display availablity online and manage reser-vations. We were tired of seeing so many software solutions that were difficult to use, overly compli-cated, too expensive, and did not do what we need-ed. It was time to set the bar a little higher. Our goal is to provide quality software that does exactly what our users need and want.

Sprint

Sprint Corporation, commonly re-ferred to as Sprint, is an American tele-communications holding company that provides wireless services and is an in-ternet service provider.

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

Located in the east side of Mendocino Avenue in Santa Rosa’s Downtown area. The high identity location provides tremendous street exposure for both directions on Mendocino Avenue. It is within walking distance to many popular restaurants, bars, shops, governmental services and the Empire Building hotel (coming soon) that sits on the newly completed Courthouse Square.

Santa Rosa is conveniently located approximately 55 miles north of San Francisco.

DISTANCE TO…DRIVING DISTANCE AIRPORT 15 minsDOWNTOWN SANTA ROSA 0 minsPETALUMA 23 minsNAPA 1 hrSAN FRANCISCO 1 hr

520Mendocino Avenue

Santa Rosa, CA

LOCATION

Downtown Santa Rosa Fully Leased Office Investment

DISTANCE TO…DRIVING DISTANCE AIRPORT 15 minsDOWNTOWN SANTA ROSA 0 minsPETALUMA 23 minsNAPA 1 hrSAN FRANCISCO 1 hrBY AIR LOS ANGELES 1 1/2 hrsPHOENIX 2 hrsPORTLAND 2 hrsSAN DIEGO 1 3/4 hrsSEATTLE 2 hrs

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

520Mendocino Avenue

Santa Rosa, CA

ECONOMICS

Downtown Santa Rosa Fully Leased Office Investment

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

MARKET OVERVIEWSanta Rosa is the sixth largest city in the San Francisco Bay Area. The City serves as a business and service hub for Cali-fornia’s North Bay Region and serves as the Sonoma County Seat.

Sonoma County is located north of the San Francisco Bay. The county’s real estate development and business infra-structure is primarily located along Highway 101, which serves as the main arterial connection to Napa, Sacramen-to, San Francisco. Sonoma County is 35 miles north of San Francisco, which serves as a main attraction to the area. The North Bay is expected to have 17,000 jobs in the area by 2040 (there were 5,000 jobs located there in 2012).

EMPLOYMENT The Santa Rosa MSA recently surpassed pre-recession employ-ment levels of 195,800 jobs after adding 5,800 jobs in 2015, or 3.0% growth to 199,800 nonfarm jobs.

The Santa Rosa jobless rate remained below the state average through the recession of 2008 and in 2016, Sonoma County reached its lowest unemployment rate since 2007, it continued to drop to 3.5% in July 2017, 1.4 percentage points below the state average.

Approximately 5,600 additional jobs have been added to San-ta Rosa’s employment base over the past year to a current total of 202,600 jobs.

520Mendocino Avenue

Santa Rosa, CA

COMPARABLES

Downtown Santa Rosa Fully Leased Office Investment

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

# ADDRESS SIZE SALE PRICE / PSF SALE DATES

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ct

520 Mendocino Ave, Santa Rosa 47,110 SF $9,500,000 / $202 PSF TBD

1 3536 Mendocino Ave, Santa Rosa 40,583 SF $11,245,000 / $277.09 psf 06/08/2017

2 1425 N. McDowell Blvd, Petaluma 38,410 SF $8,000,000 / $208 psf 05/17/2017

3 90 S. E Street, Santa Rosa 36,594 SF $10,000,000 / $273.27 psf 10/03/2016

4 420 Aviation Blvd, Santa Rosa 31,285 SF $6,350,000 / $202.97 psf 07/16/2015

# ADDRESS SIZE LIST PRICE / PSF TENANCY

1 3725 Westwind Blvd, Santa Rosa 67,015 SF $17,000,000 / $253.67 psfMultiple

96% leased

2 2544 Cleveland Ave, Santa Rosa 14,366 SF $3,400,000 / $236.67 psfMultiple

34% leased

SALE COMPARABLES

CURRENTLY ON THE MARKET

520Mendocino Avenue

Santa Rosa, CA

COMPARABLES

Downtown Santa Rosa Fully Leased Office Investment

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017.

# ADDRESS SIZE LEASE RATE & TYPE TENANT YEAR

1 3725 Westwind Blvd, Santa Rosa 32,347 SF $1.90 Gross County of Sonoma 2017

2 3562 Roun Barn Circle, Santa Rosa 11,956 SF $2.20 Full Service Keller Williams 2016

3 3843 Brickway Blvd, Santa Roa 13,345 SF $1.90 Full Service Kendall Jackson 2016

4 2235 Mercury Way, Santa Rosa 34, 558 SF $2.10 Full Service Kaiser Permanente 2016

5 451 Aviation Blvd, Santa Rosa 19,793 SF $2.05 Full Service Reach Air Medical Services 2016

6 133 Aviation Blvd, Santa Rosa 10,889 SF $1.48 NNN Regal III, LLC 2016

LEASE COMPARABLES

Shawn Johnson, Managing Partner / SIORDave Peterson, Partner

1355 N. Dutton Ave • Santa Rosa, CA 95401(707) 528-1400 • Fax (707) 524-1423

CA License #: 00835502 • SJohnson@keegancoppin.comCA License #: 01280039 • DPeterson@keegancoppin.com

KEEGAN & COPPIN COMPANY, INC.ONCOR INTERNATIONAL

Commercial Real Estate Services

520Mendocino Avenue

Santa Rosa, CA

CONTACT

Downtown Santa Rosa Fully Leased Office Investment

DisclaimerThis property is being offered on an as-is basis. While the Broker(s) believes the information in this brochure to be accurate, no warranty or representation is made as to its accuracy or completeness. Interested parties should conduct independent investigations and reach conclusions without reliance on materials contained in this brochure.

This property owner requests that you do not disturb the Tenants, as the property will only be shown in coordination with the Listing Agents.

The material contained in this brochure is confidential and is provided solely for the purpose of considering the purchase of the property described herein. Offers should be presented to the agent(s) for the property owner, Shawn Johnson & Dave Peterson of Keegan & Coppin Company, Inc. Prospective buyers are encouraged to provide buyer’s background, source of funds and any other information that would indicate their ability to complete the transaction smoothly.

Shawn Johnson,Managing Partner / SIOR

Dave Peterson,Partner