GOLD POINTE CORPORATE CENTER...distributed to any third party without the written consent of Avison...

Foundation PlaceGold River, CA 95670

12009

OFFERING MEMORANDUM

GOLD POINTE CORPORATE CENTER

Matt Havelock, CCIM, SIORPrincipalCA License #[email protected]

Thomas Aguer, CCIM, SIORPrincipal & Managing DirectorCA License #[email protected]

TABLE CONTENTS

EXECUTIVE SUMMARY ...................................3

THE OFFERINGCAMPUS OVERVIEW

LOCATION OVERVIEW .....................................5

LOCATION MAPMAJOR EMPLOYERSGOLD RIVER & SACRAMENTO OVERVIEWREGIONAL OVERVIEW

PROPERTY OVERVIEW ....................................9

12009 FOUNDATION PLACE12009 FLOOR PLANS

FINANCIAL OVERVIEW ................................... 11

LEASE EXPIRATION SCHEDULE

DEMOGRAPHICS ......................................... 12

12009

3

GOLD POINTECORPORATE CENTERGOLD POINTE

CORPORATE CENTER

THE OFFERINGAvison Young, as exclusive advisor, is pleased to present the opportunity to acquire a prominent trophy office building located in Gold River, California, one of Sacramento’s most desirable submarkets.

12009 Foundation Place is a 107,934 square foot Class A office building ideally located within the safe and secure Gold Pointe Corporate Center, which resides immediately off Highway 50 and only five minutes from neighboring Folsom, CA.

12009 FoundationAsking Price $21,370,000Price Per SF $198Total GLA 107,934% Occupancy 53%Year Built 2001

12009

$21,370,000

Foundation Place

Foundation Place

11919 1200911931

11971

12003

4

CAMPUS OVERVIEW

Building A is owned and 100% occupied by Health Net. It has functioned as Health Net’s world wide data center since it was constructed in 1995. Building B provides an excellent owner-user opportunity on November 1, 2019 when the entire second floor of 36,824 square feet becomes available. Building C is leased 97% by Health Net and operating as their regional headquarters. Building D is 74% leased to Health Net since 2002. Building E is 100% leased to eHealth. eHealth’s 19,000 square foot expansion in 2019 has increased their footprint to 63,206 square feet.

BUILDING E• 100% leased to eHealth• Signed renewal in 2019

BUILDING D• 100% leased

BUILDING B• 53% leased to a variety of tenants

BUILDING A• 100% Owned & Occupied by Health Net

• Health Net Data Center Since 1995

BUILDING C• Health Net’s Regional Headquarters

• 97% Leased to Health Net• Build-to-Suit in 2002

Bus.

5

160

84

J8

99

275

50

16

99

16

E2

E2

50

160

160

E14

E3

24

16

70

99

E14

E2

117

5 80

80

80

80

80

80

80

80

5

SACRAMENTOINTERNATIONAL AIRPORT

The Delta / Clarksburg Wine Region

SouthLake

Tahoe

San Francisco,Napa/Sonoma

Wine Region

84

Redding

RenoSACRAMENTO REGION

2

Sacramento River

American River

American River

Sacramento River

SACRAMENTO POINT WESTMARKETPLACE

DOWNTOWN /MIDTOWN

SACRAMENTOOLDWEST

SACRAMENTO

LAND PARK

R A N C H O C O R D O V A

NATOMAS

F L O R I N

F R E E P O R T

R O S E M O N T

C A R M I C H A E L

FOLSOM

F O O T H I L LF A R M S

R I O L I N D A

N O R T HH I G H L A N D S

A N T E L O P E

C I T R U SH E I G H T S O R A N G E V A L E

F A I R O A K S

MatherField

MatherAirport

McClellanBusiness

Park

SacramentoExecutive

Airport

Gold Pointe

5

GOLD POINTECORPORATE CENTERLOCATION MAP

Safe and secure professional office park with a gated entryway and security personnel performing evening checks 7 days a week.

Easily accessible office park via Highway 50 and the Hazel Avenue on / off ramps.

Minutes away from the neighboring city of Folsom, which is ranked the Best Place for Families to Live in California.

Walkable amenities include a fitness center and the popular Café Express located within the office park.

Gold River is a very affluent area and has the highest median household income in all of Sacramento County.

12009

6

MAJOR EMPLOYERS

EMPLOYER INDUSTRY LOCAL EMPLOYEES

Sutter Health Health Care 11,277

Kaiser Permanente Health Care 10,380

Dignity Health Health Care 7,011

Intel Corporation Technology/semiconductors 6,200

Raley’s Retail Groceries 5,487

Safeway Retail Groceries 3,873

Wells Fargo & Co. Financial Services 2,973

Apple, Inc. Technology 2,500

Squaw Valley Alpine Meadows Ski Resort 2,500

Pacific Gas & Electric Private Utility 2,468

Health Net of California (Centene) Health Plan 2,424

United Parcel Service Shipping 2,301

Cache Creek Casino Casino Resort 2,180

Blue Shield of California Health Plan 2,100

Union Pacific Railroad Transportation and Movement of Goods 2,100

Hewlett-Packard Co. Information Technology Systems 2,000

VSP Global Vision Healthcare Insurance 2,000

PRIDE Industries Manufacturing and Logistics 1,980

Until recently, Sacramento had long been thought of as a single industry region, with government employees accounting for the bulk of the areas workforce. However, with the recent boom in healthcare hires and companies such as Kaiser, Health Net, Dignity Health and Sutter Health rapidly hiring and opening regional/corporate offices, Sacramento has undoubtedly grown into a two-industry town. The healthcare sector now accounts for over 10% of the total private sector workforce in the Sacramento region, significantly higher than the rest of the nation. In fact, the top 5 healthcare/plan companies employ over 33,000 local personnel.

MAJOR SACRAMENTO PRIVATE SECTOR EMPLOYERS

45%Health Care

Private Utility

Health Care

ProfessionalServices

Manufacturing/Distribution

Technology

Retail

Leisure

Source: Sacramento Business Journal 2015 Book of Lists

TOP PRIVATE SECTOR EMPLOYEES

7

GOLD POINTECORPORATE CENTER

Gold River is a highly affluent city and boast the highest median household income in all of Sacramento County. In addition to Gold River’s strong income demographics, the city benefits from its close proximity to neighboring Folsom, which was ranked as the #1 place for families to live in California according to WalletHub.

Sacramento is currently witnessing a strong demand for housing as illustrated in the chart below. Limited inventory coupled with increased demand for housing has pushed multifamily rents in Sacramento, resulting in the highest year-over-year rent growth in the nation. At 11.9%, the regions apartment rental growth rate is leading the entire country and is considerably higher than the national average of 5%.

GOLD RIVER & SACRAMENTO OVERVIEW

YEAR-OVER-YEAR APARTMENT RENT GROWTH - ALL ASSET CLASSESSACRAMENTO COUNTY MEDIAN HOUSEHOLD INCOME

Gold River

Clay

Folsom

Rancho Murieta

Herald

Mather

Wilton

Elk Grove

Hood

Vineyard

Fair Oaks

Walnut Grove

Orangevale

Antelope

$0 $20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Source: Statistical Atlas

16%

5.0%

11.9%

Sacr

amen

to

Seat

tle

Inla

nd E

mp

Atla

nta

Los

Ang

eles

Port

land

Dal

las

Phoe

nix

Nas

h/Kn

ox

Orl

ando

San

Die

go

Tam

pa

NC

Tria

ngle

Ora

nge

City

Nat

iona

l

Las V

egas

Aus

tin

Mia

mi

14%

12%

10%

8%

6%

4%

2%

0%

2.8% 8-Year Avg

Source: YardiMatrix August 2016 monthly report. National averages include 119 markets tracked by Matrix, not just the metros shown in the above chart.

Source: Wallethub

#1Neighboring folsom is Ranked Best Place for Families to Live in California

8

Sacramento is enjoying a modern day gold rush, with businesses, families and investors alike flocking to California’s state capitol to take advantage of the region’s economic revival.

With projects like the Downtown Commons and the completion of the new home of the Sacramento Kings, the Golden 1 Center, the area has seen an influx of over $1 billion dollars to city infrastructure and world-class upgrades to residential services and hospitality options. Additionally, earlier this year one of the world’s most noteworthy office tenants, WeWork, signed a 47,000 square foot lease on Capitol Mall. This noteworthy transaction is just the latest victory hitting the Sacramento region. It follows the recent announcement of Centene, a Fortune 100 Company, selecting Sacramento as their home for a 1,250,000 million square foot western region headquarters.

In addition to this new expansion, Sacramento has long been a vital hub to Californians, serving as the heart of state government and education, as well as offering direct access to Napa Valley wine country, several national parks, Lake Tahoe and the neighboring Bay Area.

Tucked within 97 square miles, Sacramento County is home to over 35,000 businesses and nearly 500,000 residents –many of which take full advantage of the endless cultural, culinary and nightlife opportunities, such as the California State Railroad Museum, The Firehouse Restaurant, Magpie Café, The Kitchen Restaurant and the hustle and bustle of Mid Town.

Continued transformative development and a booming local economy coupled with a diverse community and workforce ensures that Sacramento will continue to be the cultural and commercial epicenter of Northern California.

DEVELOPMENT STATISTICS

13,000+Residential Units

2.4 Million SFof Retail

3+ Million SFof Office

3 Hospitals

17,500 Seats Sports & Entertainment Arena

9


Total GLA 107,934

Total Site Acres 5.86

Certifications 2018 Energy Star

Total Floors 3

Load Factor 12%

Parking Stalls 431

Parking Ratio 4.0 / 1,000

APN(s) 069-0260-017-0000

Zoning MP - INDUSTRIAL - OFFICE PARK

Flood Zone NA

Current Occupancy 53%

Total Tenants 6

ConstructionYear Built 2001

Foundation Reinforced Concrete

Structural Framing Steel

Roof Class A 4-PLY Built Up Roof

Architect Forrar Williams Architects

Foundation Place

Foundation Place

11919 1200911931

11971

12003

Site Plan

12009 FOUNDATION PLACE

10

Health NetSuite 150

Health NetSuite 2021

Health NetSuite 170

HartfordSuite 160

HartfordSuite 180

HartfordSuite 190

HartfordSuite 200

12009 FLOOR PLAN

Health NetSuite 350

EPICSuite 370

Health NetSuite 390

First ServiceSuite 310

JunoSuite 312

Health NetSuite 300

GROUND FLOOR PLAN

THIRD FLOOR PLAN

SECOND FLOOR PLAN

2020 Expiration

2021 Expiration

2019 Expiration

2020 Expiration

2021 Expiration

2018 Expiration

11


DETAILED LEASE EXPIRATION SCHEDULE

SUITE TENANT LEASED SF LEASE EXPIRATION YEARS IN PROJECT

B312Juno Property Management

1,031 Dec-20 17

B160, B180, B190, B200 The Hartford 40,836 Oct-19 (Vacated) 17

B370 EPIC Insurance 10,124 Jan-20 4

B310 First Service Residential 6,041 Jun-21 7

B150 Health Net 15,719 Sep-21 17

B300 Health Net 4,714 Sep-21 17

B100, B170, B350 Health Net 29,469 Oct-21 17

107,934

12


POPULATION 1 MILE 3 MILE 5 MILE

2024 Projection 3,217 40,331 196,045

2019 Estimate 3,074 38,750 185,559

2010 Census 2,902 37,805 164,795

Growth 2019-2024 4.65% 4.08% 5.65%

Growth 2010-2019 5.93% 2.50% 12.60%

2019 Population Hispanic Origin 244 3,890 26,773

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2024 Projection 1,396 17,014 77,138

2019 Estimate 1,334 16,351 73,032

2010 Census 1,257 15,965 64,931

Growth 2019 - 2024 4.65% 4.05% 5.62%

Growth 2010 - 2019 6.13% 2.42% 12.48%

Owner Occupied 1,026 11,561 44,382

Renter Occupied 308 4,790 28,649

2019 Avg Household Income $150,840 $115,002 $97,244

2019 Med Household Income $124,603 $85,777 $75,028

2019 HOUSEHOLDS BY HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

<$25,000 105 1,865 9,339

$25,000 $50,000 80 2,811 14,333

$50,000 $75,000 204 2,607 12,832

$75,000 $100,000 123 2,068 10,585

$100,000 $125,000 158 1,771 8,362

$125,000 $150,000 93 1,018 4,634

$150,000 $200,000 256 1,795 6,563

$200,000+ 316 2,414 6,384

DEMOGRAPHICS

DISCLAIMER

12009 Foundation Place, Gold River, CA (the "Property")

The material contained in this investment offering is strictly confidential and should be used only for the purpose of considering the purchase of the Property described within. This information should not be distributed to any third party without the written consent of Avison Young- Northern California, LTD or owner, or used for any other purpose other than to evaluate the possible purchase of the Property.

Avison Young- Northern California, LTD is the only party authorized to represent the Property owner in connection with the sale of the Property and no other person is authorized by the owner to provide any information or to make any representations other than contained in this investment offering.

Neither Avison Young- Northern California, LTD or the owner make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This investment offering brochure may include information and estimates by Avison Young- Northern California, LTD with respect to the projected future performance of the Property and these assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Avison Young- Northern California, LTD and the owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this investment offering, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered real estate purchase and sale agreement between the recipient and owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to owner or Avison Young- Northern California, LTD, nor any of their officers, agents, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Any recipients of this investment offering brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This investment offering brochure is a solicitation of interest only and is not an offer to sell the Property. The owner reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The owner shall have no legal commitment or obligation to any entity reviewing the investment offering brochure or making an offer to purchase the Property unless and until the owner executes and delivers a signed real estate purchase and sale agreement on terms acceptable to owner, in owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the owner and the Avison Young- Northern California, LTD from any liability with respect thereto.

GOLD POINTE CORPORATE CENTER

EXCLUSIVE ADVISOR | AVISON YOUNG



EXCLUSIVE ADVISOR | AVISON YOUNG



GOLD POINTE CORPORATE CENTER...distributed to any third party without the written consent of Avison...

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