FOR SALE2 7 8 7 & 2 8 0 1BRISTOL STREET

2787 & 2801BRISTOL ST

INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

TENANT OVERVIEW

VALUATION SUMMARY

SECTION

1

2

3

4

SECTION #

INVESTMENT HIGHLIGHTS1

INVESTMENT HIGHLIGHTS

Executive Summary

2787 & 2801 Bristol Street (the “Properties”) represents a one of a kind opportunity to acquire the fee simple interest in a “Best of Class,” two (2) building commercial

office project. The high image buildings total 26,833 square feet and are within 10 minutes to Orange County beaches, and nestled in the heart of the John Wayne

Airport area. The Properties also boast quick accessibility to world renowned shopping and restaurants of South Coast Plaza and Fashion Island.

Investment Highlights

- Nationally recognized behavioral health and substance abuse operator

- Dedicated private lot with above standard surface and covered parking

- Strategically located with immediate access to the 55, 405 and 73 freeways

2787 & 2801 BRISTOL ST / INVESTMENT HIGHLIGHTS

- Current NOI $849,827

- 9 Years of remaining lease term

PROPERTY OVERVIEW2

PROPERTY OVERVIEW

2787 & 2801 BRISTOL ST / PROPERTY OVERVIEW

Address:

APN:

Building Size:

Land Size:

Sale Price:

Parking:

Frontage:

2787 & 2801 Bristol StreetCosta Mesa, California92626

418-181-10 / 418-181-12

+/- 26,833 SF (Rentable)2787 Bristol: +/- 11,315 SF2801 Bristol: +/- 15,518 SF

+/- 69,696 SF (1.60 Acres)2787 Bristol: +/- 33,977 SF (0.78 Acres)2801 Bristol: +/- 35,719 SF (0.82 Acres)

$14,163,799 (+/- $528 per square foot)

113 total parking stalls2787 Bristol: 55 total parking stalls2801 Bristol: 58 total parking stalls

210’ along Bristol Street

Two-story, two-building office campus on its own parcel

located just minutes from South Coast Plaza and other

numerous amenities.

Description:

UNIVERSITY OF CALIFORNIA, IRVINE

THE PACIFIC CLUB

SANTA ANA COUNTRY CLUB

JOHN WAYNE AIRPORT

THE CAMP

THE LAB

2787 & 2801BRISTOL ST

METRO POINT AT SOUTH COAST SOUTH COAST PLAZASEGERSTROM CENTER FOR THE ARTS

CENTER CLUB

THE CAMP

THE LAB

2787 & 2801BRISTOL ST

TENANT SUMMARY3

TENANT SUMMARY

2787 & 2801 BRISTOL ST / TENANT SUMMARY

Industry:

Square Footage:

% of Project:

Current Contract Rate:

Lease Expiration:

Tenant Website:

Headquarters:

Year Founded:

Behavioral Health (Men)

26,833

100%

$3.00/sf NNN

12/31/30 | 2/28/31

www.windwardway.com

Costa Mesa, CA

2008

Industry:

Square Footage:

% of Project:

Current Contract Rate:

Lease Expiration:

Tenant Website:

Headquarters:

Year Founded:

Behavioral Health (Women)

26,833

100%

$3.00/sf NNN

12/31/30 | 2/28/31

www.casacaprirecovery.com

Costa Mesa, CA

2012

Windward Way started 10 years ago as a men’s only

treatment facility. Today, it has grown into a large

operation with an even larger reputation. Windward

Way is one of the most reputable treatment facilities

for men 18-45 in the nation. Its duel accreditation

speaks to the fact that it is not just clients who think

so highly of its work, but also peers and

professionals in the treatment business. Windward

Way’s end goal is to create a seamless transition

from treatment and mental health issues into

long-term recovery.

Casa Capri was founded in 2012 as a women’s only

treatement facility. This women’s only program was

founded with the philosophy of delivering the very best

therapeutic tools, life skills, programming, exciting

activities and supportive community environment. Casa

Capri has quickly become one of the leading treatment

centers for women in Orange County. It’s personalized

addiction treatment programs, safe nurturing and

structured environment gives young women the very best

chance at long term recovery.

VALUATION SUMMARY4

MARKET OVERVIEW

2787 & 2801 BRISTOL ST / VALUATION SUMMARY

4220 Von Karman Ave14201 Franklin Ave

2787 Bristol St 2801 Bristol St

SUBJECT PROPERTIES

3822 Campus Dr 20377 Acacia St

Property Address Building SF Year Built Sale Price Sale PSF Cap Rate Sale Date

2787 Bristol St Costa Mesa, CA

2801 Bristol St Costa Mesa, CA

14201 Franklin Ave Tustin, CA

4220 Von Karman Ave Newport Beach, CA

3822 Campus Dr Newport Beach, CA

20377 Acacia St Newport Beach, CA

15,518

11,315

40,293

27,597

23,258

25,918

$5,972,622

$8,191,176

$16,647,500

$17,170,000

$12,275,000

$10,500,000

$527.85

$527.85

$408.68

$622.17

$527.78

$405.12

6.5%

6.5%

--

--

6.25%

5.48%

--

--

6/22/18

10/31/17

5/1/18

5/3/18

1980 / Ren 2015

2002 / Ren 2016

1983 / Ren 2017

1984 / Ren 2016

1973 / Ren 2018

2003

VALUATION ANALYSIS

2787 & 2801 BRISTOL ST / VALUATION SUMMARY

2787 & 2801 Bristol StreetLeveraged Analysis: 10-Year Fixed Rate, 60% LTV at T + 175

FINANCING ASSUMPTIONS LEVERED IRR SENSITIVITYPurchase Price $14,163,799 Price Exit Cap SensitivityPurchase Price / SF $528 Range 5.00% 5.50% 6.00%Total Loan Commitment (60% LTV) $8,498,279 $14,663,799 16.49% 15.18% 13.96%Total Loan / SF $317 $14,413,799 16.94% 15.65% 14.44%10 Year Swap Rate 3.00% $14,163,799 17.41% 16.13% 14.94%Spread 1.75% $13,913,799 17.88% 16.62% 15.44%Initial Rate (1) 4.75% $13,663,799 18.37% 17.11% 15.95%Loan Term (months) 120 Exit PSF $884 $804 $737Amortization Interest OnlyOrigination Fee 1.00%

Year 0 1 2 3 4 5 6 7 8 9 10 Total

PROPERTY CASH FLOW

Property NOI $0 $850,069 $879,049 $911,249 $943,448 $975,648 $1,007,847 $1,043,267 $1,081,907 $1,120,546 $1,159,186 $9,972,216- TI's/LC's/Reserves 0 0 0 0 0 0 0 0 0 0 0 0Property NCF $0 850,069 879,049 911,249 943,448 975,648 1,007,847 $1,043,267 $1,081,907 $1,120,546 $1,159,186 $9,972,216

Net Sales Proceeds $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,560,850 $21,560,850

Total Property Cash Flow $850,069 $879,049 $911,249 $943,448 $975,648 $1,007,847 $1,043,267 $1,081,907 $1,120,546 $22,720,036 $31,533,066

Cash on Cash: NOI 6.0% 6.2% 6.4% 6.7% 6.9% 7.1% 7.4% 7.6% 7.9% 8.2% Cash on Cash: NCF 6.0% 6.2% 6.4% 6.7% 6.9% 7.1% 7.4% 7.6% 7.9% 8.2%

Average 10 Year Yield (NOI) 7.0% Average 10 Year COC (NCF) 7.0%

UNLEVERAGED IRR 10.4%

FINANCING CASH FLOW

Ending Balance $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $8,498,279 $0Ending Balance / SF $317 $317 $317 $317 $317 $317 $317 $317 $317 $317 $0

Avg. Interest Rate $0 4.82% 4.82% 4.83% 4.82% 4.82% 4.82% 4.83% 4.82% 4.82% 4.82%Interest $0 $409,275 $409,275 $410,396 $409,275 $409,275 $409,275 $410,396 $409,275 $409,275 $409,275 $4,094,990Loan Fees $84,983 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Balloon $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,498,279 $8,498,279Total Debt Service $84,983 $409,275 $409,275 $410,396 $409,275 $409,275 $409,275 $410,396 $409,275 $409,275 $8,907,554 $12,593,270

Total CF After Debt Service ($5,750,502) $440,794 $469,774 $500,853 $534,173 $566,373 $598,572 $632,871 $672,632 $711,271 $13,812,482 $18,939,796

Cash on Cash: NOI 7.7% 8.2% 8.7% 9.3% 9.8% 10.4% 11.0% 11.7% 12.4% 13.0% Cash on Cash: NCF 7.7% 8.2% 8.7% 9.3% 9.8% 10.4% 11.0% 11.7% 12.4% 13.0%

Average 10 Year Yield (NOI) 10.2% Average 10 Year COC (NCF) 10.2%

LEVERAGED IRR 16.1%

(1) Fixed rate interest calculated based on 10 Year Treasury Rate as of 8/7/18.

John Pomer949.945.2649

john@redwoodwest.comLic 01440689

Korbin Duley949.945.2647

korbin@redwoodwest.comLic 01944912

Benjamin Gott949.945.2648

ben@redwoodwest.comLic 01724507

240 Newport Center Dr, Ste 219Newport Beach, CA 92660

949.945.2650

www.redwoodwest.com

FOR SALE2 7 8 7 & 2 8 0 1BRISTOL STREET

The information contained in this package is proprietary to Redwood West and shall be used soley for the purposes of evaluating this purchase. All such documentation remains the property of Redwood West and shall be kept confidential. Reproduction of any part of this package is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the authorization of Redwood West. All information contained herein is from sources deemed reliable.