EXCLUSIVE INVESTMENT OPPORTUNITY · Corporate ID #01191898 A Member of the Lee & Associates Group of Companies 26050 Mureau Rd, Suite 101 . Calabasas, CA 91302 P: 818.223.4388 F:

Michael Tingus Marc Spellman Mark Leonard Principal Principal Principal BRE # 01013724 BRE # 01039995 BRE # 01031863

818.223.4380 818.223.4392 818.449.4414 [email protected] [email protected] [email protected]

EXCLUSIVE INVESTMENT OPPORTUNITY

WESTLAKE VILLAGE’S PREMIER OFFICE BUILDING

Lee & Associates® LA North/Ventura, Inc. Corporate ID #01191898

A Member of the Lee & Associates

Group of Companies

26050 Mureau Rd, Suite 101 Calabasas, CA 91302

P: 818.223.4388 F: 818.591.1450

www.lee-associates.com

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

TOWNSGATE OFFICE CENTER2475 Townsgate Road | Westlake Village CA 91361

TOWNSGATE OFFICE CENTER

2475 Townsgate Road | Westlake Village, CA 913661

The information provided herein is from sources we believe are reliable. While we do not doubt its accuracy, we have not verified it and make no representations, guarantees or warranties about it.

DISCLAIMER

This Offering Memorandum (the “Memorandum”) has been prepared by the management of the Owner and by Broker to provide a general overview of the Property solely to assist in the recipient in deciding whether to proceed with further analysis of the Property. This Memorandum may not be distributed, reproduced or used without the express written consent of the Company, for any purpose other than as a general overview of the Property or by any person or entity other than the person to whom this Memorandum has been delivered. While the information contained herein is believe to be accurate and reliable, neither the Company nor Broker makes any representation or warranty (express or implied) as to the accuracy or completeness of such information. Only those representations and warranties contained in a definitive purchase and sale agreement, if any, shall have any legal effect. In no event will the Company, its management or Broker make any representations or warranties regarding this Memorandum or the projections herein in any such definitive agreement. In furnishing this Memorandum, the Company reserves the right to amend and replace the Memorandum at any time and undertakes no obligation to provide the recipient with access to additional information. Nothing contained in this Memorandum is, or should be relied upon as, a promise or representation as to the future. The pro-forma and estimated financial information contained herein, if any, were prepared expressly for use herein and are based on certain assumptions and management’s analysis of information available at the time this Memorandum was prepared. No warranty is provided as to the accuracy and completeness of this information. This Memorandum does not, if hereafter supplemented, will not contain all of the information that may be required to evaluate the Property. Prospective purchasers are responsible for conducting their own investigation and analysis of the business, data and property described herein in making an investment decision regarding the Property.




TABLE OF CONTENTS

SECTION I

Investment Summary Income & Expense Summary Lease Summaries

SECTION II

Tenant Profiles

SECTION III

Location Highlights Area Description Demographics Report

SECTION IV

Local Market Dynamics

SECTION V

Property Photos Area Aerial Property Aerial Aerial Views Neighboring Building Aerial Parcel Map

SECTION VI

Westlake Village Lease Comparables Summary




INVESTMENT SUMMARY

Townsgate Office Center2475 Townsgate RoadWestlake Village

Total Gross Building Square Footage: Approximately 60,478 Rentable Square Feet Lot Size: Approximately 124,532 Square Feet Year Built: 2002 Occupancy: 100% Number of Tenants: Three (3) Price: $19,000,000.00 ($314 Per RSF) NOI: $1,033,860.00 CAP Rate: 5.44%

Competitive Positioning

Townsgate Office Center is a two-story multi-tenant office building located in the heart of Westlake Village adjacent to the US 101 Ventura Freeway with outstanding exposure and access to the Ventura Freeway. This 2002 constructed office building boasts 191 parking spaces of which 24 are spaces located in the building’s covered garage, equating to an approximate 3.27/1000 parking ratio.




INCOME & EXPENSE SUMMARY

January 1, 2015 - December 31, 2015

Gross Rental Annual Income $ 1,474,469.00

Annual Parking Income $ 8,400.00

Gross Annual Income $ 1,482,869.00

Expenses Annual

Real Estate Taxes $ 228,000.00*

Utilities $ 119,330.00

Repairs & Maintenance $ 82,524.00

Insurance $ 19,155.00

Total Expenses Annual $ 449,009.00

Net Operating Income $ 1,033,860.00

*Based upon a $19 million assessed value at 1.2% tax rate.




LEASE SUMMARY


Tenant: The Walking Company

Suites: Suite 200 & 220 (The entire 2nd floor)

Square Footage: Approximately 31,941 Rentable Square Feet

Lease Type: Full Service Gross with a 2015 Base Year

Lease Commencement Date: January 1, 2007, amended on October 23, 2007, September 10, 2012, May 2013 and June 13, 2014

Percentage of Building: Approximately 52.71%

Parking Spaces: 76 uncovered and 11 covered

Option to Renew: Two (2) Options to Renew. First for five (5) years and the 2nd for three (3) years or five (5) years at Tenant’s choice. See Addendum VI Paragraph 8 of the Lease Agreement for additional information.





Tenant: Yoga Works, Inc.

Suite: Suite 100


Lease Type: Modified Gross (Tenant responsible for utilities and janitorial)

Base Year: 2007

Lease Commencement Date: January 15, 2007

Percentage of Building: Approximately 27%

Parking Spaces: 52 uncovered and 6 covered (Covered parking spaces are $50.00 per space per month)

Option to Renew: Two (2) five (5) year Options to Renew

LEASE SUMMARY





Tenant: Gold Coast Partners Assignee List Giant

Suite: Suite 150


Lease Type: Full Service Gross

Lease Commencement Date: June 1, 2013

Percentage of Building: Approximately 30%

Parking Spaces: 45 uncovered and 8 covered (Covered parking spaces are $50.00 per space per month)

Option to Renew: One (1) three (3) year Option to Renew

LEASE SUMMARY




TENANT PROFILES

The Walking Company was created with a simple philosophy, “We search the world over so that our customers can walk the world

in comfort.” The Walking Company is the World’s leading retailer of comfort footwear and is one of the fastest growing retailers in the United States.

With over 63 different shoe brands including Asics, Clarks, New Balance, & UGG The Walking Company is redefining comfort footwear and is a store that provides a true comfort experience. With over 200 locations in 38 different states stretching from San Diego, California, to Portland, Maine, it is no surprise that the Walking Company is becoming one of the most recognized companies in the Footwear industry.

The Walking Company’s corporate office resides in Westlake Village and is occupied with approximately 100 employees on site. This site is where day-to-day operations are managed in addition to training and corporate decision-making. For more information on The Walking Company, you may visit, www.thewalkingcompany.com

Yogaworks was created with the vision that Yoga is for everyone. They have an

exceptional reputation in the Yoga community, with core values surrounding teamwork, leading by example, keeping it simple, and keeping it light. Yogaworks has a true passion for what they do and bring love and compassion to each class with respect for what each individual can accomplish through Yoga.

Yogaworks has a consistent theme in every class that they offer. They excel in teaching with each teacher having a minimum of 500 hours of YogaAlliance certification, and their senior teachers are recognized for teaching Yoga

for 20 years or more. With a wide variety of Yoga styles accompanied by tons of different people and experience levels, Yogaworks has the right course for anybody with an interest in Yoga. From beginner to expert, Yogaworks has a class just for you.

Yogaworks has found success with 29 locations in the United States including 23 locations in California and 6 locations in New York. For more information on Yogaworks including locations, classes, and a free week of Yoga, visit www.yogaworks.com

Gold Coast Partners is a Direct Marketing and Advertising company Located in Westlake Village, California. “GCP” was founded in 2005 by owners

of marketing firms, database companies and advertising agencies located all over the United States.

Gold Coast’s purpose is to combine top marketing companies as well as experienced marketing executives to create one Board of Directors and create a Power Team. The goal of this team is to use their expertise, products, and services to create a stronger voice and provide outstanding products to marketers. The products and services they provide include List Giant, Rank Giant, Email Giant, Ping Giant, and Power Pack. List Giant is more indicative of the operations taking place at the Westlake Village office with approximately 50 employees on site at their corporate office. List Giant is a user friendly, self-service list count and order system. Here you have 24/7 access and full control to build your prospect list. This provides the ability to subscribe to one or multiple databases to fit your direct marketing needs. For more information on Gold Coast partners and their products, visit www.gcpartners.net.




LOCATION HIGHLIGHTS

This property is desirably located in the very affluent community of Westlake Village just off of Lindero Canyon Road, with a traffic count of 47,040 daily. Townsgate Office Center is situated nearby many major retailers such as Costco, Staples, Albertsons, as well as The Shoppes at Westlake Village, a brand new neighborhood shopping center anchored by Target. It is directly adjacent to the Marriot Residence Inn and across the street from the Four Seasons Hotel Westlake Village. This location also provides for easy access to the 101 & 23 freeways.

• Easy freeway access

• Nearby major retail and hotels

• Affluent area (avg. household income $157,785)

• Strong local workforce, 114,640 employees within 10 minutes




AREA DESCRIPTION

Westlake Village is a planned community that straddles the Los Angeles and Ventura County line. The eastern portion is the incorporated city of Westlake Village, located on the western edge of Los Angeles County. The city, located in the region known as the Conejo Valley, encompasses half of the area surrounding Westlake Lake, and small neighborhoods primarily south of U.S. Route 101 and east of La Venta Drive. Westlake Village is known for its affluence and secluded character, and is considered one of the wealthiest communities in the Greater Los Angeles Area with an average household income of over $150,000 per year within 1 mile of the subject property.

The western portion of Westlake Village is a community, within the city limits of Thousand Oaks, in Ventura County. The properties and businesses in this portion can be addressed as “Westlake Village”, as the U.S. Post Office maps both 91361 and 91362 ZIP codes to this area. Westlake Village is home of Dole Headquarters; other major employers in the area include Amgen, Inc., and the Bioscience Division of Baxter Healthcare Corporation; the top two international leaders in the biotechnology field; General Dynamics Corporation, a leader in international high technology; Jafra Cosmetics, an international cosmetics company; WellPoint Health Networks, Inc., one of the nation’s largest publicly-traded managed care companies; General Motors Regional Office, and Verizon’s Regional Office.




DEMOGRAPHICS REPORT

1 Mile: 3 Miles: 5 Miles:

2014 Total Population 9,917 50,555 130,166

2014 Total Households 4,156 20,213 48,948

2019 Total Population 10,087 51,752 132,933

2019 Total Households 4,251 20,761 50,226

Population Density (per Sq. Mi.) 3,156.81 1,788.03 1,657.33

Establishments/Employees

Establishments 1,833 5,811 9,102

Employees 14,391 44,217 66,563

Household Income

Income $ 0 - 9,999 3.9% 4.1% 3.3%

Income $ 10,000 - $14,999 4.1% 3.4% 2.6%

Income $ 15,000 - $24,999 9.7% 6.1% 5.6%

Income $ 25,000 - $34,999 6.8% 5.6% 5.4%

Income $ 35,000 - $49,999 8.8% 8.7% 9.1%

Income $ 50,000 - $74,999 12.2% 13.5% 12.6%

Income $ 75,000 - $99,999 13.4% 12.9% 12.8%

Income $ 100,000 - $124,999 11.4% 11.3% 12.0%

Income $ 125,000 - $149,999 7.8% 7.8% 8.6%

Income $ 150,000 + 21.8% 26.8% 27.9%

Average Household Income $114,377 $133,882 $136,568

Median Household Income $83,194 $91,767 $97,120

Per Capita Income $48,070 $53,621 $51,458

Vehicles Available

0 Vehicles Available 4.2% 3.3% 2.5%

1 Vehicle Available 34.1% 29.9% 26.5%

2+ Vehicles Available 61.7% 66.7% 70.9%

Average Vehicles Per Household 1.95 2.04 2.13

Total Vehicles Available 8,108 41,322 104,181




LOCAL MARKET DYNAMICS

Situated on the western edge of Los Angeles Coun-ty in the foothills of the Santa Monica Mountains, Westlake Village, California is recognized as one of America’s most affluent suburban locations and fin-est areas to live, work, and raise a family. Westlake Village is home to one of the most af-fluent demograph-ics in Los Angeles County, with an average household income in excess of $150,000. Con-sistently ranked as one of the safest and most family-friendly cities in the nation, West-lake Village historically outperforms the Conejo Val-ley, San Fernando Valley and Ventura markets in both rents and occupancy.

There has been a significant migration of residents and tenants from both the San Fernando Valley and Los Angeles to Westlake Village in the past 15-20 years. The Westlake Village submarket is a

popular destination due to the high quality of lifestyle, first-choice housing options, coastal climate, competitive occupancy costs, desirable school

systems, and secure environment with low crime rates. Westlake Village also offers a multitude of desirable amenities including shopping, arts, sports, dining, and entertainment.

Westlake Village has approximately 8,300 residents, but only 6% of these residents work in Westlake Village. 31% of the residents work in Los Angeles and 15% are employed in Thousand Oaks. More than 25% of the population is between 35 and 54 years of age. 82% of the population is Non-Hispanic White and 13% is either Hispanic or Asian.

There are approxi-mately 850 com-mercial and light industrial busi-nesses in Westlake Village. The area is home to 8,960 jobs, up from 8,690 in 2010. Nearly 30% of these jobs are finance related and the next largest sectors are Professional (26%), Education (9%), Leisure (8%), and Retail (7%).

Many global and national tenants have located their national or regional headquarters in Westlake Village due to the area’s highly qualified labor pool, excellent amenity base, and abundance of executive and employee housing options.

Corporate neighbors in the submarket include General Dynamics, Baxter, intuit, Dole, J.D. Power, Guitar Center, Securitas, move.com, Blue Cross of California and iPayment.

The Westlake Village office market, the most desirable office submarket in the larger Conejo Valley region, includes 2.5 million square feet of Class A office space, and currently maintains an occupancy of 85%, the highest in the Conejo Valley (3Q14).




PROPERTY PHOTOS




PROPERTY PHOTOS




PROPERTY PHOTOS




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AERIAL VIEW NORTH

AERIAL VIEW SOUTH




AERIAL VIEW EAST

AERIAL VIEW WEST




NEIGHBORING BUILDINGS

LEGEND

Subject Property - Townsgate Office CenterS

1 Jafra International

2 Vantage Office Condos

3 Westlake Gardens - Arden

4 J.D. Power & Associates

5 Hyatt Westlake

6 Westlake Plazas I & II - TOPA

7 Westlake Plaza III - Kilroy

8 Westlake Park Place - Investco

9 100 & 200 North Westlake Boulevard - TOPA

10 Westlake Office Park - Dolphin Partners




PARCEL MAP




WESTLAKE VILLAGE LEASE COMPARABLES SUMMARY

Landlord Tenant Address City Size (SF)Term

(Months) TypeDate

Signed

MBM Powerone 5701 Lindero CanyonWestlake Village

33,000 60 MG Aug-14

Kennedy Wilson Pacific Comp 1 Baxter WayWestlake Village

53,214 36 FSG Jul-14

TopaManagement

Hogan Insurance 2801 Townsgate Rd.Westlake Village

5,535 64 FSG Jul-14

Arden Keller Williams Realty 30700 Russell Ranch Rd.Westlake Village

5,860 61 FSG Jun-14

IDS General Motors 30930 Russell Ranch Westlake Village

23,965 65 FSG May-14

IDS Prodovis (Unit of BofA) 30870 Russell Ranch RoadWestlake Village

75,000 120 MG Apr-14

Kennedy Wilson State Farm Insurance 1 Baxter WayWestlake Village

50,590 48 FSG Sep-09

Arden Call Source 5601 Lindero CanyonWestlake Village

25,527 72 FSG Mar-14

LBA Realty Swiss Re 112 Lakeview CanyonWestlake Village

20,327 69 FSG Mar-14

IDS Kythera Biopharmaceutical 30930 Russell Ranch Rd.Westlake Village

33,198 39 FSG Mar-14

Arden Future in Education, Inc. 30700 Russell Ranch Rd.Westlake Village

3,568 84 FSG Feb-14

GrenhillDevelopment

New Idea Software 4580 Thousand Oaks Blvd.Westlake Village

6,589 36 FSG Feb-14

LC3 Cal Lutheran 31416 Agoura Rd.Westlake Village

17,763 120 MG Jan-14

LC3 VS Media 31416 Agoura Rd.Westlake Village

9,882 60 MG Jan-14

Documents

EXCLUSIVE INVESTMENT OPPORTUNITY · Corporate ID #01191898 A Member of the Lee & Associates Group of Companies 26050 Mureau Rd, Suite 101 . Calabasas, CA 91302 P: 818.223.4388 F: