viasat - building 7 - office industrial advisory...

VIASAT - BUILDING 7CARLSBAD, CA

offering memorandum

C o n f i d e n t i a l i t y & d i s c l a i m e r

THE INFORMATION CONTAINED IN THE FOLLOWING MARKETING BROCHURE IS PROPRIETARY AND STRICTLY CONFIDENTIAL. IT IS INTENDED

TO BE REVIEWED ONLY BY THE PARTY RECEIVING IT FROM MARCUS & MILLICHAP AND SHOULD NOT BE MADE AVAILABLE TO ANY OTHER PER-

SON OR ENTITY WITHOUT THE WRITTEN CONSENT OF MARCUS & MILLICHAP. THIS MARKETING BROCHURE HAS BEEN PREPARED TO PROVIDE

SUMMARY, UNVERIFIED INFORMATION TO PROSPECTIVE PURCHASERS, AND TO ESTABLISH ONLY A PRELIMINARY LEVEL OF INTEREST IN THE

SUBJECT PROPERTY. THE INFORMATION CONTAINED HEREIN IS NOT A SUBSTITUTE FOR A THOROUGH DUE DILIGENCE INVESTIGATION. MAR-

CUS & MILLICHAP HAS NOT MADE ANY INVESTIGATION, AND MAKES NO WARRANTY OR REPRESENTATION, WITH RESPECT TO THE INCOME

OR EXPENSES FOR THE SUBJECT PROPERTY, THE FUTURE PROJECTED FINANCIAL PERFORMANCE OF THE PROPERTY, THE SIZE AND SQUARE

FOOTAGE OF THE PROPERTY AND IMPROVEMENTS, THE PRESENCE OR ABSENCE OF CONTAMINATING SUBSTANCES, PCB’S OR ASBESTOS,

THE COMPLIANCE WITH STATE AND FEDERAL REGULATIONS, THE PHYSICAL CONDITION OF THE IMPROVEMENTS THEREON, OR THE FINAN-

CIAL CONDITION OR BUSINESS PROSPECTS OF ANY TENANT, OR ANY TENANT’S PLANS OR INTENTIONS TO CONTINUE ITS OCCUPANCY OF

THE SUBJECT PROPERTY. THE INFORMATION CONTAINED IN THIS MARKETING BROCHURE HAS BEEN OBTAINED FROM SOURCES WE BELIEVE

TO BE RELIABLE; HOWEVER, MARCUS & MILLICHAP HAS NOT VERIFIED, AND WILL NOT VERIFY, ANY OF THE INFORMATION CONTAINED HERE-

IN, NOR HAS MARCUS & MILLICHAP CONDUCTED ANY INVESTIGATION REGARDING THESE MATTERS AND MAKES NO WARRANTY OR REPRE-

SENTATION WHATSOEVER REGARDING THE ACCURACY OR COMPLETENESS OF THE INFORMATION PROVIDED. ALL POTENTIAL BUYERS MUST

TAKE APPROPRIATE MEASURES TO VERIFY ALL OF THE INFORMATION SET FORTH HEREIN.

T a b l e o f C o n t e n t s

SECTION I: EXECUTIVE SUMMARY InvestmentOverview OfferingSummary PropertyLocation ParcelMap CampusMap PropertyAerial SECTION II: FINANCIAL ANALYSIS FinancialHighlights SECTION III: PROPERTY DESCRIPTION PropertyPhotos FloorPlans

SECTION IV: TENANT OVERVIEW TenantProfile Summary SatelliteServices CommercialNetworks GovernmentSystems Awards

SECTION V: MARKET OVERVIEW DemographicAnalysis PopulationDensity EmploymentDensity AverageHouseholdIncome

PRESENTED BY

BEN TASHAKORIAN | SAN DIEGO OFFICEFirstVicePresidentInvestmentsBtashakorian@marcusmillichap.com|(858)373-3176

SCOTT HILMEN | SAN DIEGO [email protected]|(858)373-3123

BRADLEY PETERS | SAN DIEGO [email protected]|(858)373-3227

All property tours must be scheduled with the Listing Broker. Please do not disturb the tenants or walk the property without the Listing Broker on-site.

Marcus&Millichapisexclusivelymarketingthisofficeofferingtoaselectgroupofqualifiedinvestors.TheprospectivepurchaserwillbeselectedbytheSellerinconsultationwithMarcus&Millichaponthebasisof,amongother things, (i)price, (ii)certaintyofclosing, (iii)financial strength, (iv) levelofdiscretiontoinvestfunds,and(v)industryreputation.

VIASAT BUILDING 7

E X E C U T I V E S U M M A R Y

E x e c u t i v e s u m m a r yVIASAT

BUILDING 7

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyoftheinformation.Refer-encestosquarefootageorageareapproximate.Buyermustverifytheinformationandbearsallriskforanyinaccuracies.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServicesofCalifornia©2015Marcus&Millichap.Activity ID: W00904715

• 41,516Squarefootbuildingcomprisedofofficeandlabspace

• Nearly4yearsremainingon10-yearNNNleasewithfivepercentrentincreases

bi-annuallyandoptionstoextend

• High-techtenantwithB+creditratingbyStandard&Poors

• Labeled“Building7”;partofthe10-building–soontobe11-building–ViaSat

CorporateHeadquartersCampus

• LEED-CIGoldregistered

• Separateconcretestructurehousingdieselgeneratorsforback-uppower

• Federalgovernmentapprovedforclassifiedwork

• On-sitebasketballcourt,sandvolleyballcourtandoutdoor lunchareasfor

employeeenjoyment

Marcus&Millichapispleasedtopresentforsale2350CampbellPlaceintheaffluentBressiRanchdevelopmentofCarlsbad,California.Otherwiseknownas“Building7”,thepropertyisoneoften,soontobeeleven,buildingsontheViaSatcampus.Thecampuscurrentlyconsistsof600,000squarefeet.BuiltspecificallyforViaSatin2009,thebuildingisLEED-CIGoldregistered.Thesustainabledesignelementsinclude,butarenotlimitedto:high-performanceHVACandlighting,healthyindoorairqualitywithlittleornoVOCemittingmaterials,droughttolerantlandscaping,recycledwaterforlandscapeirrigation,detentionpondoverflow,bioswale,buildingglazing,andmore.

ViaSat,headquarteredinCarlsbad,ispubliclytradedontheNASDAQunderVSAT.Asatellitecommunicationsfirmwithafocusonbroadbandconnectivity,ViaSatservicesbothcommercialandgovernmentmarketsprovidinggoodsandservicesrangingfromadvancedmilitarycommunicationsystemsforfighterjetstosatelliteinternetserviceplanstoin-flightinternetserviceoncommercialairlines.AlreadythelargestemployerinCarlsbad,ViaSat’sgrowthhasbeenexplosivewithrevenueandadjustedEBITAincreasesofmorethan20%inrecentyearsandprojectedforthenextthreetofiveyears.

RecognizedbyNationalGeographicasoneoffouroftheworld’ssmartcities,SanDiegoboaststhetalent,capitalandlivabilitytomaintainitsstatusasaninnovationhub.AsaSanDiegosuburb,Carlsbad,arguablyreflectsthosecharacteristicsmorethananyotherpartofthecounty.Carlsbadwasrecentlynamed:#1PlacetoLaunchaStart-Up,#5TopCitiesforfastgrowthcompanies,Golf’sUltimatePlayground,#4oftheTopTenZipCodesforVentureCapitalInvestmentinSanDiego,OutsideMagazine’sBestTownslist,#7BestCityforJobSeekersinCalifornia,Top10BestBeachesforFamilies,and#7LeadingHigh-TechMetroAreainAmerica.


BUILDING 7


Marcus & Millichap is pleased to present for sale 2350 Campbell Place in the affluent Bressi Ranch development of Carlsbad, California. Otherwise known as “Building 7”, the property is one of ten, soon to be eleven, buildings on the ViaSat campus. The campus currently consists of 600,000 square feet. Built specifically for ViaSat in 2009, the building is LEED-CI Gold registered. The sustainable design elements include, but are not limited to: high-performance HVAC and lighting, healthy indoor air quality with little or no VOC emitting materials, drought tolerant landscaping, recycled water for landscape irrigation, detention pond overflow, bioswale, building glazing, and more.

Offering Price $14,150,000

Net Rentable Area 41,516 SF

Price Per SF $340.83

Cap Rate 8.27%

Net Operating Income $1,170,005

Parcel Size 3.53 AC

Year Built 2009

Occupancy 100%

FINANCIAL HIGHLIGHTS

Address 2530 Campbell PlaceCarlsbad, CA 92009

Year Constructed 2009Net Rentable Area 41,516 SFPercent Leased 100%Parcels 1Land Area 3.53 ACOwnership Interest Fee SimpleParking Ratio 4.00 / 1,000 SF


BUILDING 7


MAP VIEW


BUILDING 7


PARCEL MAP

PALOMAR AIRPORT ROAD

EL C

AMIN

O RE

AL

2530 Campbell PlaceParcel # 213-261-06-00

3.53 AC (Lot Size)


BUILDING 7


6

8

4

10

9

3

2

1

7.5

5

BUILDING # ADDRESSBldg 1 6155 El Camino Real

Bldg 2 6167 El Camino Real





Bldg 6.5 6197 El Camino Real

Bldg 7 2530 Campbell Pl SUBJECTBldg 7.5 2548 Campbell Pl


Bldg 9 2290 Cosmos Ct

Bldg 10 2502 Gateway Rd

Bldg 11 Gateway Rd-Under Construction

6.5

11

7

El Camino Real

Palomar Airport Road

VIASAT CAMPUS MAP


BUILDING 7


21

6

8

410

9

32

1

7

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4 3 2

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RETAIL/RESTAURANTS HOTELS OTHER AMENITIES PLANNED DEVELOPMENT

SUBJECTPROPERTY

BUSINESS1. ViaSat2. Spy Optic3. Chuao Chocolatier HQ4. Nordson / Asymtek5. Fed-Ex6. Rockwell Collins7. Ashworth-TaylorMade Golf8. Acushnet Titleist Golf9. Thermo Fisher Scientific10. Gemological Institute of America11. Go-Pro

12

11

1413

19

18

15

20

16 21

17

22

12. Reef13. Upper Deck14. GenOptix15. OptumRx16. Zimmer Dental17. Isis Pharmaceuticals18. Wal-Mart e-Commerce19. 5D Robotics20. NRG Cabrillo Power21. Callaway Golf22. Mercedes Benz Advanced Design

1. Carlsbad Premium Outlet Mall2. Bressi Ranch Village Center

1. Courtyard by Marriott2. Holiday Inn 3. Hampton Inn4. Homewood Suites5. Fairfield Inn6. Grand Pacific Palisades Resort7. Sheraton8. Carlsbad by the Sea9. Holton Garden Inn

1. Pure Fitness2. McClellan-Palomar Airprot3. The Crossings at Carlsbad 4. Legoland Resort5. The Flower Fields6. Scripps Coastal Medical Center7. Carlsbad Car Country

1. Innovation Center at Bressi Ranch R&D / Corporate HQ

2. The North 40 Retail / Restaurants / Craft Brew

3. Caruso Affiliated Unique Retail / Restaurants

4. Carlsbad Oaks North Planned Corporate Business Park

5. Carlsbad Desalination Plant6. Staybridge Suites Carlsbad

68

9

3

2

1

7

5

4

Palomar Airport Road

El Camino Real

F I N A N C I A L A N A L Y S I S

VIASAT BUILDING 7

f i n a n c i a l a n a l y s i s


VIASATBUILDING 7

Offering Price $14,150,000

Price Per SF $340.83

Net Rentable Area 41,516 SF

Cap Rate 8.27%

Year Built 2009

Occupancy (Current) 100%

First Year Net Operating Income $1,170,005

Total Site Area 3.53 AC

Terms Fee Simple

HIGHLIGHTS

Total Income $1,170,005

Vacancy $0

Est. Gross Operating Inc. (EGI) $1,170,005

Total Expenses $0

Net Operating Income (NOI) $1,170,005

Less Loan Payments -$501,188

Pre-Tax Cash Flow 11.82% / $668,817

Plus Principle Reduction $143,130

Total Return Before Taxes 14.35% / $811,947

ANNUALIZED INCOME FIGURES CURRENT

Loan Amount $8,490,000

Loan to Value 60%

Interest Rate 4.25%

Amortization 30 Years

Monthly Payment $41,766

Annual Payment $501,188

PROPOSED FINANCING

Ratessubjecttochange.PleasecontactyourlocalMarcus&MillichapCapitalCorporationforamoreup-to-datequote.

VIASAT BUILDING 7

P R O P E R T Y D E S C R I P T O N

p r o p e r t y d e s c r i p t i o n


VIASATBUILDING 7



VIASATBUILDING 7

VIASAT BUILDING 7

T E N A N T S U M M A R Y

T e n a n t S u m m a r y


VIASATBUILDING 7

Property Name ViaSat, Inc.

Property Address 2530 Campbell Place

Carlsbad, CA 92009

Property Type Single Tenant Office with Lab

Rentable Square Feet 41,516

Tenant Trade Name ViaSat, Inc.

Stock Symbol VSAT

Credit Rating "B+" by Standard & Poors, "B1" by Moody's

Revenue $1.38B

Operating Income $83.14M

Net Income $40.36M

Total Assets $2.16B

Total Equity $1.04B

Lease Commencement Date 5/1/09

Rent Commencement Date 5/1/09

Lease Expiration Date 4/30/19

Term Remaining on Lease 4 Years

Lease Type Triple Net

Roof and Structure Landlord responsible

Original Lease Term 10 years

Rent Increases 5% every other year during initial term; rent increases annually by 2.5 percent during the option periods. How-ever, the first year of the option periods is increased by

3 percent over the immediately preceding year.

Options to Renew One 3-Year, Two 5-Year

Worldwide Employees > 3,000

Headquartered Carlsbad, CA

Web Site http://www.viasat.com

TENANT PROFILE - VIASAT



VIASATBUILDING 7

VIASAT – SUMMARY ViaSat is a leading provider of high-speed fixed and mobile broadband services, advanced satellite and other wireless networks and secure networking systems, products and services. We have leveraged our success developing complex satellite communication systems and equipment for the U.S. government and select commercial customers to develop next-generation satellite broadband technologies and services for both fixed and mobile users. Our product, systems and service offerings are often linked through common underlying technologies, customer applications and market relationships. We believe that our portfolio of products and services, combined with our ability to effectively cross-deploy technologies between government and commercial segments and across different geographic markets, provides us with a strong foundation to sustain and enhance our leadership in advanced communications and networking technologies. ViaSat operates in three segments: satellite services, commercial networks and government systems.



VIASATBUILDING 7

VIASAT – SATELLITE SERVICES Our satellite services segment provides retail and wholesale satellite-based broadband services for our consumer, enterprise and mobile broadband customers primarily in the United States. Our Exede® broadband services are designed to offer a high-quality broadband service choice to the millions of unserved and under-served consumers in the United States and to significantly expand the quality, capability and availability of high-speed broadband satellite services for U.S. consumers and enterprises. Our satellite services business also provides a platform for the provision of network management services to domestic and international satellite service providers. In May 2013, we entered into a satellite construction contract for ViaSat-2, our second high-capacity Ka-band satellite.

The primary services offered by our satellite services segment are comprised of:

» Retail and wholesale broadband satellite services offered to consumers and small businesses under the Exede and WildBlue® brands, which provide two-way satellite-based broadband internet access and Voice over Internet Protocol (VoIP). As of April 4, 2014, we provided broadband satellite services to approximately 641,000 subscribers.

» Mobile broadband services, which provide global network management and high-speed internet connectivity services for customers using airborne, maritime and ground-mobile satellite systems.

» Enterprise broadband services, which include in-flight Wi-Fi (including our flagship Exede In The Air service), live on-line event streaming, oil and natural gas data gathering services and high definition satellite news gathering.



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VIASAT – COMMERCIAL NETWORKS Our commercial networks segment develops and produces a variety of advanced end-to-end satellite and other wireless communication systems and ground networking equipment and products that address five key market segments: consumer, enterprise, in-flight, maritime and ground mobile applications. These communication systems, networking equipment and products are generally developed through a combination of customer and discretionary internal research and development funding, and are either sold to our commercial networks customers or utilized to provide services through our satellite services segment.

Our satellite communication systems, ground networking equipment and products cater to a wide range of domestic and international commercial customers and include:

» Fixed satellite networks, including next-generation satellite network infrastructure and ground terminals to access Ka-

band broadband services on high-capacity satellites.

» Mobile broadband satellite communication systems, designed for use in aircraft, high-speed trains and seagoing vessels.

» Antenna systems for terrestrial and satellite applications, specializing in geospatial imagery, mobile satellite

communication, Ka-band gateways and other multi-band antennas.

» Satellite networking development programs, including specialized design and technology services covering all aspects of

satellite communication system architecture and technology.



VIASATBUILDING 7

VIASAT – GOVERNMENT SYSTEMS Our government systems segment develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, which are designed to enable the collection and dissemination of secure real-time digital information between command centers, communications nodes and air defense systems. Customers of our government systems segment include the U.S. Department of Defense (DoD), armed forces, public safety first-responders and remote government employees.

The primary products and services of our government systems segment include:

» Government satellite communication systems, which comprise an array of portable, mobile and fixed broadband modems, terminals, network access control systems and antenna systems using a range of satellite frequency bands for line-of-sight and beyond-line-of-sight Intelligence, Surveillance and Reconnaissance and Command and Control missions, satellite networking services and global mobile broadband capability, and include products designed for manpacks, aircraft, unmanned aerial vehicles, seagoing vessels, ground mobile vehicles and fixed applications. » Information security and assurance products and secure networking solutions, which provide advanced, high-speed IP-based “Type 1” and High Assurance Internet Protocol Encryption (HAIPE®)-compliant encryption solutions that enable military and government users to communicate information securely over networks, and that secure data stored on computers and storage devices. » Tactical data links, including Multifunctional Information Distribution Systems (MIDS) terminals for military fighter jets and their successor, MIDS Joint Tactical Radio System (MIDS-JTRS) terminals, “disposable” weapon data links and portable small tactical terminals.



VIASATBUILDING 7

VIASAT – AWARDS With these past awards, ViaSat is well known as a successful, innovative, high-growth company:

Technology

• Frost & Sullivan - 2013 North American Ka-band Technology Leader• World Technology Network - 2013 Winner, Communications Technology Award for high-capacity satellite system• Arthur C. Clarke Foundation - Innovator Award, CEO Mark Dankberg• Edison Awards 2013 - Bronze award for communications innovation• Popular Science 2012 “Best of What’s New” for Exede Internet and high-capacity satellite system• Satellite Research and Markets - 2012 Visionary Executive of the Year• Society of Satellite Professionals International (SSPI) - 2012 Industry Innovator• TechAmerica - 2011 American Technology Award in the Telecommunications• Mark Dankberg American Institute of Aeronautics and Astronautics (AIAA) “2008 Aerospace International Communications Award”• Hannover Fairs ISCe2004 Satellite Industry Award for Innovation and Technology

ViaSat also holds the world record for Highest Capacity Communications Satellite.

Company Growth & Performance• Space News “Top 50 Space Companies”• DefenseNews “Top 100 Defense Contractors”• Washington Technology “Top 100”• Mark Dankberg Via Satellite “2003 Satellite Executive of the Year”• Three-time INC. 500 prior to going public in 1996

VIASAT BUILDING 7

M A R K E T O V E R V I E W

M a r k e t o v e r v i e w


VIASATBUILDING 7

P O P U L A T I O NIn2014,thepopulationinyourselectedgeographyis235,627.Thepopulationhaschangedby28.04%since2000.Itisestimatedthatthepopulationinyourareawillbe253,173fiveyearsfromnow,whichrepresentsachangeof7.44%fromthecurrentyear.Thecurrentpopulationis48.94%maleand51.05%female.Themedianageofthepopulationinyourareais39.0,comparethistotheEntireUSaveragewhichis37.3.Thepopulationdensityinyourareais3,000.24peoplepersquaremile.

H O U S E H O L D S

Therearecurrently88,321householdsinyourselectedgeography.Thenumberofhouseholdshaschangedby27.90%since2000.Itisestimatedthatthenumberofhouseholdsinyourareawillbe95,025fiveyearsfromnow,whichrepresentsachangeof7.59%fromthecurrentyear.Theaveragehouseholdsizeinyourareais2.63persons.

I N C O M E

In2014,themedianhouseholdincomeforyourselectedgeographyis$72,063,comparethistotheEntireUSaveragewhichiscurrently$51,972.Themedianhouseholdincomeforyourareahaschangedby30.79%since2000.Itisestimatedthatthemedianhouseholdincomeinyourareawillbe$85,070fiveyearsfromnow,whichrepresentsachangeof18.04%fromthecurrentyear.

Thecurrentyearpercapitaincomeinyourareais$39,132,comparethistotheEntireUSaverage,whichis$28,599.Thecurrentyearaveragehouseholdincomeinyourareais$103,936,comparethistotheEntireUSaveragewhichis$74,533.

R A C E A N D E T H N I C I T YThecurrentyearracialmakeupofyourselectedareaisasfollows:74.36%White,2.10%Black,0.38%NativeAmericanand6.76% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% NativeAmericanand5.02%Asian/PacificIslander.

PeopleofHispanicoriginarecountedindependentlyofrace.PeopleofHispanicoriginmakeup24.53%ofthecurrentyearpopulationinyourselectedarea.ComparethistotheEntireUSaverageof17.13%.

H O U S I N G

In2000,therewere46,398owneroccupiedhousingunitsinyourareaandtherewere22,652renteroccupiedhousingunitsinyourarea.Themedianrentatthetimewas$835.

E M P L O Y M E N T

In2014, thereare 112,525employees inyourselectedarea, this isalsoknownas thedaytimepopulation.The2000Censusrevealedthat69.01%ofemployeesareemployedinwhite-collaroccupations inthisgeography,and30.82%areemployedinblue-collaroccupations.In2014,unemploymentinthisareais6.94%.In2000,theaveragetimetraveledtoworkwas29.6minutes.



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Theme Low High

Low less than 55

Below Average 55 475

Average 475 4,100

Above Average 4,100 35,000

High 35,000 or more

The number of people living in a given area per square mile

POPULATION DENSITY



VIASATBUILDING 7

Theme Low High

Low less than 9

Below Average 9 96

Average 96 1,025

Above Average 1,025 10,875

High 10,875 or more

The number of people working in a given area per square mile

EMPLOYMENT DENSITY



VIASATBUILDING 7

Theme Low High

Low less than $29,500

Below Average $29,500 $48,500

Average $48,500 $80,000

Above Average $80,000 $132,500

High $132,500 or more

The average household income of all working age people in the area

AVERAGE HOUSEHOLD INCOME

VIASAT - BUILDING 7CARLSBAD, CA

9255 Towne Centre Drive - Suite 700 - San Diego, CA 92121

PRESENTED BY

BEN TASHAKORIANSAN DIEGO OFFICE

First Vice President [email protected]

P (858) 373-3176

BRADLEY PETERSSAN DIEGO OFFICE

Senior Financial [email protected]

P (858) 373-3227

SCOTT HILMENSAN DIEGO OFFICE

[email protected]

P (858) 373-3123

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