OFFERING MEMORANDUM

ALAMEDA POINTBUILDING 8 - THE STOREHOUSE

197 UNIT WORK/LIVE REDEVELOPMENT ALAMEDA, CALIFORNIA

Nicholas RussellDirector 415 677 0431nicholas.russell@cushwake.comLIC: #01937794

Ric RussellExecutive Managing Director 415 677 0448ric.russell@cushwake.comLIC: #00848691

CONFIDENTIALITY & DISCLAIMERCushman & Wakefield (“Broker”) has been retained on an exclusive basis to solicit interest in the Investment Opportunity (“Property”) described in this offering. Broker has been authorized by the Owner of the Property (“Owner”) to prepare and distribute the accompanying information as well as additional information contained in Owner prepared Dropbox files (“Material”). Access to the Dropbox files may be provided upon the execution of a Confidentiality Agreement by an Interested Party (“Investor”). The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors. The Material shall not be used for any other purpose or made available to any other person or entity without the express written consent of Broker or Owner. The Material does not purport to be all-inclusive or to contain all of the information that a Buyer may require in evaluating the Property. The Material is delivered only as an accommodation and neither Owner, Broker, or any of their respective affiliates, agents, representatives, employees, managers, partners, shareholders, directors, or officers makes any representation or warranty regarding such Material. Buyer must make its own investigation of the Property, its physical or financial condition or performance, past-present-future, development potential, and any costs associated therewith.

All visits taking place on the Property site shall be accompanied by Broker.

Ownership, Alameda Point Redevelopers, is seeking a Buyer for redevelopment of an existing 3-story +265,000 square foot concrete building situated on a 3.38-acre parcel located in Alameda Point, Alameda, California. The property will be redeveloped as 197 dual use work/live units.

The building is part of Alameda Point, a 900-acre redevelopment of the former Alameda Naval Air Station (NAS). NAS was decommissioned in 1997 and transferred to the City of Alameda in 2013. Alameda Point will be redeveloped through sale of properties to private developers. Long range plans project 1,425 residential units, 5.5 million square feet of commercial/other space, and over 700 acres of parks and open space.

A 68-acre parcel known as “Site A” is a $1 billion mixed-use, transit-oriented waterfront development lead by Trammel Crow Residential. The first phase of Site A is under construction for market rate residential (sale and rental), affordable rental residential, retail, office, parks, and open space. When completed Site A will include 800 housing units and 200,000 sf of commercial space.

A critical component of the Site A development is construction of the new Seaplane Lagoon Ferry Terminal. The Ferry Terminal is nearing completion with service beginning in late 2020. Seaplane Lagoon is designated the primary ferry terminal providing direct service to San Francisco. Building 8 is ½ mile from Seaplane Lagoon and will offer tenants the fastest, most enjoyable, and safest transportation to San Francisco, just 12 miles and 20 minutes away.

The redevelopment of Building 8 is fully approved by the City of Alameda. Construction to begin in 2020 with completion in early 2022.

Executive Summary: Building 8 – The General Storehouse

Property Details

• Site Area 3.38 acres

• Building +-265,000 sf Gross; +-190,000 sf Net Rentable; 3-floors; +-60’ Height

• Transportation ½ mile from new ferry terminal serving San Francisco Free AC Transit Shuttle to 12th St. BART during commute hours Standard AC Transit to Alameda and East Bay daily

• Entitlements 1st floor 64 Work / Live Units & 1 Restaurant 2nd floor 67 Work / Live Units 3rd floor 65 Work / Live Units 4th 40,000 sf potential expansion

Entitlements

The subject property is a renovation and reuse of the historic +-265,00 sf “Building 8 – the General Storehouse”. It is an existing 3-story concrete structure built in 1940. The zoning is Adaptive Reuse – Work / Live; Commercial. The development is fully approved by the City of Alameda for up to 250 Work / Live units. Current plans call for 196 Work / Live units and 1 Restaurant on the existing 3-floors. Approval includes the potential of adding a 4th floor with up to +-40,000 sf for any allowable use within the zoning.

Zoning AMC 30-15 Work / Live

• Purpose is to provide cost efficient alternative working space for entrepreneurs, businesses, artists & artisans• Commercial unit with incidental residential accommodations • Minimum floor area for each Work / Live unit of at least 500 sf• Maximum living space is 30% of unit sf or 400 sf whichever is less• Working space is for commercial use and is to be regularly used for such purpose • Living Space is the portion of the unit used for residential purposes including a sleeping area, a food preparation area, and a full bathroom including bathing and sanitary facilities• Work / Live leases to include requirement of a valid Work / Live permit and business license

• At least 1 occupant of each Work / Live unit shall maintain a current business license• Generally, a broad range commercial use is allowed • Work / Live unit may not be sold as an individual unit

It should be noted that the ordinance is defined as commercial with incidental residential accommodations. This is not residential zoning and as such there is no rent control or on-site inclusionary housing requirement.

Work / Live Market

The Concord Group (TCG) has conducted an extensive market study which reveals a significant demand for, and undersupply of, Work / Live units in the Urban East Bay. No Work / Live development, other than the subject property, is currently planned in the City of Alameda.

Work / Live studios and lofts serve the high demand market of commercial / residential users in the Urban East Bay. Commercial and residential rents have skyrocketed in recent years creating a severe need for space that will accommodate small and emerging businesses in combination with affordable living space. Incubator start-ups and small businesses of every nature are a critically important part of the innovative Bay Area economy. Building 8 will perfectly serve the varied needs of our “Gig Economy”, self-employed independent contractors such as software designers, IT consultants, technical writers, photographers, chefs, graphic designers, web designers, and social media managers, to name just a few. Artists and creative users are in desperate need of Work / Live space and will establish Building 8 as an artistic haven.

The impact of Covid-19 will forever change the working and living characteristics of the Bay Area. The safety, convenience, and productivity of working from home is being recognized throughout the Region. The Work / Live model of Building 8 is truly the prototype for a balanced and rewarding lifestyle in the years to come.

Tax Credit

Ownership is in the process of securing +-$8,000,000-$9,000,000 in Federal Historical Tax Credits. Allocation and activation of the Federal Tax Credit is a detailed and complicated process. Generally, the tax credit is 20% of the qualified expenditures. The tax credits may be applied over a 5-year period. It is unlikely that the potential 4th floor can be built while the tax credits are in place.

In 2019 California passed SB451 which is the State Historic Tax Credit bill. Regulations are being prepared and it is unclear when the program will be implemented. It is expected that application will be similar to the Federal Historic Tax of 20% of qualified rehabilitation expenses.

Opportunity

Building 8 redevelopment is fully approved by the City of Alameda. The fact that the +-265,000 sf concrete structure is in place significantly reduces the time required to complete build-out. The in-place structure also mitigates construction and market variables. Key factors influencing completion and opportunity are:

• Existing Structure below replacement cost• Projected 12-15 month construction period• Stabilization of Construction Costs• Favorable Interest Rates• Normalization of the Economy• Continued strong Bay Area employment• Growth in demand for Work / Live• Implementation of Seaplane Lagoon Ferry• Federal and State Tax Credits• Dual Residential / Commercial Use• Only 197 tenants are needed

Conclusion

Building 8 – The General Storehouse is an outstanding development opportunity in the heart of the Bay Area. Upon execution of a Confidentiality Agreement interested parties will be granted access to a Dropbox file containing detailed information.

ALAMEDA POINT PLANNING DEVELOPMENT AREA

TOW N CENTER AND WATERFRONT P RE CI S E PLAN BOU NDARY

L E G E N D

Employment (AP-E)

Employment - Adaptive Reuse (AP-AR)

Town Center (AP-TC)

Residential (AP-R)

Maritime - Visitor Serving (AP-MV)

Open Space (AP-OS)

Precise Plan Boundary

Street Plan (illustrative and subject to change)

S e a p l a n e L a g o o n

D I S T R I C T B O U N D A R Y

Employment - Adaptive Reuse

Open Space

Open Space

Town Center

Residential

Employment

P O R T O F O A K L A N D

Mai

n S

t

Atlantic Ave

Pacific Ave

Willie Stargell Ave

S a n F r a n c i s c o B a y

Maritime-VisitorServing

0 2000 4000 FEETMarch 20, 2013

E x i s t i n g F e r r y S e r v i c e

NATURE RESERVE

VA OUTPATIENT CLINIC AND

COLUMBARIUM

Building 8

STREET MAP

Building 8

July 2019

Alameda Point Partners Achieves Important Milestones at $1 Billion Alameda Mixed-Use Waterfront Development

ALAMEDA, Calif. — Alameda Point Partners, LLC announced today that the group has successfully achieved significant milestones on phase one of Alameda Point’s Site A development project in Alameda, California. Site A is a $1 billion mixed-use, transit-oriented waterfront development on the site of the former Naval Air Station Alameda, which closed over 20 years ago. Alameda Point Partners (APP) is a joint venture between Managing Partner Trammell Crow Residential (TCR), a division of Dallas-based Crow Holdings, Los Angeles-based developer Cypress Equity Investments (CEI), and San Francisco Bay Area-based commercial developer srmERNST Development Partners.

APP closed escrow on 30 acres of the 68-acre Site A parcel in March 2018 and celebrated its groundbreaking in May 2018. Now, APP has completed demolition of the entire 30-acre site and is 50 percent complete with construction of the infrastructure, which includes water, sewer, electrical and gas lines, a street grid with bike and transit lanes, eight acres of original parks as well as a ferry terminal in Seaplane Lagoon. The ferry dock is currently being fabricated and construction of the terminal is slated to begin this fall.

“One of the most significant components of the plan is the transit infrastructure with multi-modal strategies that complement and build off each other, including the new ferry terminal, bus rapid transit, the ‘last mile’ connection to BART with shuttle service every 15-minutes in peak periods, plus bike and car sharing,” said Stephanie Hill, Vice President of Development of TCR’s Northern California division and a member of APP.

“The new ferry service is a game changer,” said Hill. “It is right at Alameda Point’s front door and provides direct service to downtown San Francisco in 20 minutes. This is a great amenity for residents and businesses of Alameda Point and will cut down on the number of cars on the road.”

July 2019

Alameda Point Partners Achieves Important Milestones at $1 Billion Alameda Mixed-Use Waterfront Development

ALAMEDA, Calif. — Alameda Point Partners, LLC announced today that the group has successfully achieved significant milestones on phase one of Alameda Point’s Site A development project in Alameda, California. Site A is a $1 billion mixed-use, transit-oriented waterfront development on the site of the former Naval Air Station Alameda, which closed over 20 years ago. Alameda Point Partners (APP) is a joint venture between Managing Partner Trammell Crow Residential (TCR), a division of Dallas-based Crow Holdings, Los Angeles-based developer Cypress Equity Investments (CEI), and San Francisco Bay Area-based commercial developer srmERNST Development Partners.

APP closed escrow on 30 acres of the 68-acre Site A parcel in March 2018 and celebrated its groundbreaking in May 2018. Now, APP has completed demolition of the entire 30-acre site and is 50 percent complete with construction of the infrastructure, which includes water, sewer, electrical and gas lines, a street grid with bike and transit lanes, eight acres of original parks as well as a ferry terminal in Seaplane Lagoon. The ferry dock is currently being fabricated and construction of the terminal is slated to begin this fall.

“One of the most significant components of the plan is the transit infrastructure with multi-modal strategies that complement and build off each other, including the new ferry terminal, bus rapid transit, the ‘last mile’ connection to BART with shuttle service every 15-minutes in peak periods, plus bike and car sharing,” said Stephanie Hill, Vice President of Development of TCR’s Northern California division and a member of APP.

“The new ferry service is a game changer,” said Hill. “It is right at Alameda Point’s front door and provides direct service to downtown San Francisco in 20 minutes. This is a great amenity for residents and businesses of Alameda Point and will cut down on the number of cars on the road.”

Floor Plan

Floor Plan

Floor Plan

Floor Plan

Floor Plan

OFFERING MEMORANDUM

ALAMEDA POINTBUILDING 8 - THE STOREHOUSE

197 UNIT WORK/LIVE REDEVELOPMENT ALAMEDA, CALIFORNIA