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Swinerton BuildersConfidential Offering Memorandum

17731 Mitchell N,

Irvine, CA 92614

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Investment Summary 03

Tenant Overview 07

Market Overview 09

JLL Contacts 15

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Investment SummarySwinerton Builders | Irvine, CA

Swinerton Builders | Irvine, CA

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4

Investment Summary

JLL is pleased to offer for sale the fee-simple interest in a single-tenant office sale-leaseback (the “Property”, or “Asset”) located in Irvine, CA. Swinerton

Builders, the current owner, will lease the Asset back on a NNN basis for one year, while transitioning to a new location. Th is presents a terrific opportunity for

an investor to collect rent while securing a value-add lease, or for an owner-user to reduce their basis before taking over the space.

The Asset consists of a two-story, 20,684square foot office building occupied in its entirety by Swinerton Builders, a national construction firm with an

impressive track record and strong West Coast presence. The class-A building was constructed in 1983 and beautifully renovated in 2013. Swinerton will

execute a one-year lease upon closing at $18.00 PSF NNN, creating an attractive opportunity to re-lease the Asset at market rents in the mid-$20 PSF range or

occupy the Asset in the future after reducing basis.

PROPERTY SUMMARYINVESTMENT HIGHLIGHTS

• The tenant, Swinerton Builders, will sign a short-term, absolute NNN

lease upon close at below-market rent, creating a prime opportunity for

investors or occupiers alike

• Rare opportunity to own a class-A, recently renovated office property in

Central Orange County

• Move-in ready and well-appointed for a new tenant or owner-user

• Located in the heart of the Irvine Business Complex, home to over 1,200

businesses and immediately proximate to Highway 55, I-405, and John

Wayne Airport

• Highly visible and attractive monument signage

• Exceptionally parked with ±67 spaces including 6 covered stalls

• Highly affluent Orange County boasts average incomes well in excess of

$100,000. Irvine’s population is projected to grow by 1.86% annually

through 2023

Address17731 Mitchell N,

Irvine, CA 92614

Price $6.71 M ($324 PSF)

NOI* $372,312 ($18.00 PSF)

Cap Rate 5.55%

Tenant Swinerton Builders

Company Type Private

Lease Type* Absolute NNN

LL Responsibilities* None

Ownership Interest Fee Simple

Property Type 2-Story Office Building

Site Size 0.91 acres (±39,509 SF)

Building Size 20,684 SF

Parking 3:1,000 SF (free, surface)

Year Built 1983 / Renovated 2015

Rent Commencement Upon Close

Lease Term* 1 Year

Rental Increases* None

Renewal Options* None

Zoning 5.1 IBC Multi-Use, Irvine

ROFO / ROFR* None

* Prospective lease terms, actual lease is yet to be confirmed and executed



Floor Plan

1st Floor8,678 SF Existing

Hypothetical



Floor Plan

2nd Floor12,006 SF Existing

Hypothetical


Tenant OverviewSwinerton Builders



Tenant Overview

The TenantSwinerton Builders is a 100% employee-owned commercial construction company that provides services

in 27 U.S. states for commercial office, retail, multi-family residential, hospitality, healthcare, education,

and the entertainment sectors. The company also provides preconstruction services, such as budgeting,

scheduling, value management, and planning. Headquartered in San Francisco, California, Swinerton was

founded in California in 1888 and was one of the first recipients of a California contractor’s license.

Swinerton has 15 offices located throughout the country to better serve clients coast to coast.

Since Swinerton’s earliest days, their exceptional craftsmanship has created celebrated landmark projects

throughout the West and beyond. The company now has over 3,500 employees who have helped build

communities from the peaks of the Rocky Mountains to the Hawaiian Islands, from the Gulf of Alaska to

the jungles of Colombia. The company still operates under California contractor’s license number 92—the

one it obtained in 1927 when the state first began issuing licenses. Many Swinerton-built structures now

claim a spot on the National Register of Historic Places and other architectural preservation lists.

Despite its storied history, Swinerton is a green building leader. Since creating one of the nation’s first

green buildings back in 1970, they have remained at the forefront of sustainable construction practices.

Their commitment attracts forward-thinking employees who are passionate about the latest innovations in

green construction, allowing Swinerton to excel and adapt to the future of construction practices.

Tenant Swinerton Builders

Guarantor Swinerton Incorporated

Company Type Private, Employee Owned

Founded 1888

Headquarters San Francisco, CA

Sector Construction

Company Website http://www.swinerton.com/

Offices and Areas Served


Market Overview Irvine, CA



Market Overview

With an increasing number of companies adopting space efficiency practices

combined with 1.6 million square feet of new deliveries over the last six months,

there has been an uptick in the number of available large blocks of space. The 60

blocks of space of at least 50,000 square feet are spread throughout 50 buildings

with the highest concentration in the Airport Area. There are an additional nine

blocks of space when taking into account buildings currently under construction. A

majority of these spaces are in Class A or recently converted creative properties.

These conditions provide large tenants with the flexibility to search multiple space

options. Although there is competition in the market, landlords who attract tenants

to occupy these blocks of space will be doing so at a time when rents are high.

One of the events that contributed to the increase of available large blocks of

space was Broadcom moving from the Airport Area to South County. In the first

quarter, Broadcom moved out of 685,000 square feet in University Research Park

to 600,000 square feet in their build-to-suit project at Five Point Gateway.

Broadcom previously moved out of an additional 150,000 square feet but nearly all

of that space has been leased. This quarter’s move-out was largely responsible for

the Airport Area recording -647,149 square feet net absorption, while heavily

contributing to South County’s positive net absorption of 722,094 square feet.

Outlook

In the past three years, there have been over 100 traditional Class B

properties converted to creative buildings, totaling 6.5 million square

feet, with a majority of these conversions occurring in the Airport

Area. With these renovations bringing higher rents, value-oriented

tenants have fewer space options in this submarket. Many of these

tenants will be casting a wider net in their searches which could drive

up leasing activity in nearby submarkets.

•Throughout Orange County there are 60 blocks of available space of at least 50,000 square feet with 35 of them located in the Airport Area.•Broadcom’s move from the Airport Area to South County causes swing in net absorption. •Over 6 million square feet of traditional Class B office product has been converted in recent years to creative space, placing upward pressure on rents.

Orange County



Market Overview

Airport Area Submarket Population Metrics:

• The Airport Area Submarket is a population hub of over 1 million

residents, but it is also bolstered by a healthy daytime commuter

surplus of over 168,000. This indicates a strong office and retail

market that draws in residents from the surrounding communities.

• The municipalities in the central valley all show promising

positive projected growth over the next 5 years, including nearly 2%

per year in Irvine proper.

• Swinerton Builders benefits from it’s transit-centric location, just

off Highway 55 and I-405 and minutes from John Wayne airport.Airport Area Submarket

Town 2018 Population Daytime Population Commuter Surplus Projected Annual Growth through 2021

Santa Ana 342,217 330,005 -12,212 0.66%

Irvine 270,731 394,746 124,015 1.86%

Huntington Beach 203,241 175,242 -27,999 0.83%

Orange City 142,780 174,814 32,034 0.59%

Costa Mesa 117,503 136,437 18,934 0.81%

Newport Beach 91,166 129,663 38,497 0.76%

Lake Forest 86,698 79,858 -6,840 1.17%

Tustin 82,379 82,159 -220 0.92%

Fountain Valley 57,776 60,079 2,303 0.54%

Totals 1,394,491 1,563,003 168,512



Market Overview

Demographic Information

1-mile radius 3-mile radius 5-mile radius

2018 Population 9,483 191,752 639,217

2023 Projection 10,349 205,582 667,242

Average Household Income $106,073 $106,789 $105,124

Median Household Income $85,469 $78,667 $74,550

MarketIrvine, CA

Irvine is a master-planned city in Orange County, California. Originally developed by the Irvine Company in the 1960’s, today Irvine is a hub for Southern California

commerce and a home to over 270,000 Californians.

A number of corporations have located their regional, national, and international headquarters in Irvine, especially in the technology and semiconductor sectors.

Irvine is also home to a large number of institutions of higher learning, including the University of California, Irvine (UCI), Concordia University, Irvine Valley

College, the Orange County Center of the University of Southern California (USC), and campuses of California State University Fullerton (CSUF), University of La

Verne, and Pepperdine University.

In addition to Irvine’s business friendliness and concentration of institutes of higher learning, it has also been highly tou ted for its livability. Irvine was chosen in

2008 by CNNMoney.com as the fourth-best place to live in the United States. In 2012, it was ranked sixth nationally. In September 2011, Businessweek listed

Irvine as the fifth-best city in the United States. Irvine consistently ranks as the safest city in America with a population over 100,000. In 2014, Irvine was named

the best-run city in the U.S. by 24/7 Wall Street. In March 2017, WalletHub listed Irvine as the third happiest place to live in the United States. In June 2017, Irvine

was named tenth best City in America by Niche.com



Market Overview

Market Dynamics – Aerial Mapping

John Wayne

Airport Parking

1,275 Businesses

19,920 Employees



Market Overview

Property Photography


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JLL Contacts

ADVISORS

Scott WetzelLos Angeles, CA

JLL Tenant Represenation

+1 949 885 2994

[email protected]

4 Park Plaza Suite 900

Irvine, CA 92614

www.us.jll.com/capitalmarkets

Copyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.

The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.

We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance

on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Contact Information

Matt BerresLos Angeles, CA

JLL Capital Markets

+1 949 885 2993

[email protected]

ANALYST SUPPORT

Quinn McCarthyChicago, IL

JLL Capital Markets

+1 312 228 3363

[email protected]

mailto:[email protected]



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