Investment Highlights

HIGH-QUALITY, INVESTMENT GRADE SINGLE-TENANT ASSET
» 10-year net lease to Starbucks Corporation with four five-year option periods
» Scheduled rental increases every five years in option periods
» Investment grade tenant, rated “BBB+” by Standard & Poor’s
» Starbucks Corporation (NASDAQ: “SBUX”) is the world’s premier coffee company, with over 33,833 locations and $29.1 billion in annual revenue

HIGH-TRAFFIC LOCATION AT KEY GATEWAY INTERSECTION
» Located at the signalized hard corner of Ocean Street and Water Street, with excellent visibility and access—including a dedicated right turn lane on Water Street—to 63,628 vehicles per day
» Ocean Street serves as the primary corridor that brings visitors to the beach from Highway 17, which is the main route north to San Jose and the rest of the San Francisco Bay Area
» Water Street leads to Santa Cruz’s vibrant downtown
» Surrounded by a strong mix of local and national retailers, commercial businesses, and tourist oriented shops and hotels

LARGE, AFFLUENT CUSTOMER BASE
» Located within walking distance of downtown Santa Cruz and just over a mile from attractions like the Santa Cruz Beach Boardwalk, the Santa Cruz Wharf, and Seabright State Beach, which are popular draws for both local residents and Santa Cruz’s 4 million annual visitors
» Just steps from the Santa Cruz Governmental Center, which houses over 2,200 city and county employees
» 123,062 residents with an average household income of $143,969 live within five miles of the property

NEW 2017 “CALIFORNIA MODERN” UPGRADED CONSTRUCTION
» Upgraded “California Modern” exterior featuring abstract mural pained by a local artist
» Includes bike racks and lockers to serve Santa Cruz’s large population of students and bike commuters
» Two walls of floor-to-ceiling windows and ample outdoor seating
» 27.5-foot tall building with the potential to be retrofitted in the future with a second floor for one or two rental units

Property Description

» Located at the signalized hard corner of Ocean Street and Water Street, with excellent visibility and access—including a dedicated right turn lane on Water Street—to 63,628 vehicles per day directly in front of the property
» Ocean Street serves as the primary corridor that brings visitors to the beach from Highway 17, which is the main route north to San Jose and the rest of the San Francisco Bay Area. Water Street leads to Santa Cruz’s vibrant downtown, located less than half a mile away
» Additionally, the property—which includes bike racks and lockers to serve Santa Cruz’s large population of students and bike commuters—is steps away from the Santa Cruz Governmental Center, which houses over 2,200 city and county employees
» Within walking distance of downtown Santa Cruz and is just over a mile from attractions like the Santa Cruz Beach Boardwalk, the Santa Cruz Wharf, and Seabright State Beach, which are popular draws for both local residents and Santa Cruz’s 4 million annual visitors
» Furthermore, the property is supported by a large, affluent customer base; 123,062 residents with an average household income of $143,969 live within five miles of the property