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HIGHLY IMPROVED CREATIVE OFFICEOWNER/USER BUILDING FOR SALE // 9,920 SF

Lee & Associates, Inc. - Irvine (the “Agent”) has been engaged as the exclusive sales representative for the sale of 9840 Irvine Center Drive, Irvine CA (the “Property”) by ‘Ownership’ (the “Seller”).

The Property is being offered for sale in an “as-is, where-is” condition, and the Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include con�dential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a “Registered Potential Investor” or as a “Buyer’s Agent” for an identi�ed “Registered Potential Investor”. The use of this Offering Memorandum, and the information provided herein, is subject to the terms, provisions and limitations of the Con�dentiality Agreement furnished by the Agent prior to delivery of this Brochure.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, af�liates, of�cers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satis�ed or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of con�dence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Con�dentiality Agreement executed and delivered by the recipient(s) to Agent.

The Seller will be responsible for any commission due to the Agent in connection with a sale of the Property. However, any broker engaged by Purchaser (“Buyer’s Broker”) shall seek its commission only from the Purchaser. Under no circumstances will the Agent or the Seller be liable for same and recipient will indemnify and hold the Agent and the Seller harmless from any claims by any brokers having dealt with recipient other than the Agent. Any Buyer’s Broker must provide a registration signed by the recipient acknowledging said Buyer’s Broker’s authority to act on the recipient’s behalf.

EXCLUSIVELY LISTED BY:

BRIAN GARBUTTSenior Vice PresidentLic. #01215482949.790.3166bgarbutt@leeirvine.com

06FLOOR PLANS

10FINANCIALANALYSIS

12SALE

COMPARABLES

04PROPERTY

DESCRIPTION

property descriptionBUILDING PROFILE

Property Address 9840 Irvine Center DriveIrvine, CA 92630

APN 588-206-19

Location Orange County

Land Size ±21,780 SF

Year Built 2007

Building Size ±9,920 Square Feet

Zoning 5.4 A Design Professional

Parking 25 Free Surface In Common

Flooring Concrete and carpet

Construction Masonry

Asking Price: $4,997,000

Property overviewOFFERING SUMMARY

Lee & Associates, Inc. – Irvine, as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in 9840 Irvine Center Dr. Built in 2007 this 2-story, Design Professional zoned, office building consists of approximately 9,920 square feet and is located in the prestigious city of Irvine, California.

9840 Irvine Center Dr offers close proximity to the Irvine Spectrum Center as well as other food and retail centers, and has convenient access to both the 5 and 405 freeways.

This asset can be fully occupied by an owner or is divisible by floor into two +/- 4,960 square feet units.

PROPERTY HIGHLIGHTS

• High image creative office• 7 private offices, and an executive

suite with full bathroom

• Fully functioning kitchen

• Conference room on each floor

• Corner location and prominent signage

• Close proximity to Irvine Spectrum Center and other retail centers

• Convenient access to 5 and 405 freeways

• Furniture negotiable

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2ND FLOOR1ST FLOOR

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financial analysisPURCHASE VS. LEASE ANALYSIS

9840 Irvine Center DrivePurchase vs. Lease Analysis Scenario: Buyer to occupy 9,920 sq. ft. and lease 0 sq. ft. to tenants

PROPERTY ASSUMPTIONS DEBT & EQUITY 1st TD 2nd TD Total APPRECIATION & TAXESPurchase Building Size in SF 9,920 Loan Amounts $2,600,000 $2,080,000 $4,680,000 Price Appreciation 3.00%Occupy Building Size in SF 9,920 Loan to Value Ratio 50% 40% 90% Building Value After 10 Years $6,988,365Market Rent - NNN $2.45 Loan Fees $31,000 $20,800 $51,800 Cost of Sale 3.00%

Equity Amount $571,800Monthly NNN Expense PSF $0.75 Interest Rate 4.50% 4.50% Standard Tax Rate 41.00%Annual Rent + Exp. Growth 3.00% Amortization Period 20 20 Portion of Price For Building - % 80.00%

Monthly Debt Service $16,449 $13,159 $29,608 Portion of Price For Building - $'s $4,160,000Total Building Cost $5,200,000 Annual Debt Service $197,387 $157,909 $355,296 Years to Depreciate Asset 39.50Total Building Cost PSF $524.19 Loan Balance - End of Yr. 10 $1,587,142 $1,269,713 $2,856,855 Annual Depreciation Deduction $105,316

SCENARIO 1 - PURCHASE BUILDING9,920 sq. ft. Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Initial Equity Investment (571,800) - - - - - - - - - -Annual Operating Expenses (89,280) (91,958) (94,717) (97,559) (100,485) (103,500) (106,605) (109,803) (113,097) (116,490)Annual Debt Service (355,296) (355,296) (355,296) (355,296) (355,296) (355,296) (355,296) (355,296) (355,296) (355,296)Reversion Value After 10 Years - - - - - - - - - 6,988,365Cost of Sale - - - - - - - - - (209,651)Pay Off Remaining Loan Balance - - - - - - - - - (2,856,855)

Tax Benefit For Operating Expenses 36,605 37,703 38,834 39,999 41,199 42,435 43,708 45,019 46,370 47,761Tax Benefit For Interest Expense 85,107 82,325 79,415 76,371 73,187 69,857 66,374 62,731 58,921 54,936Tax Benefit For Depreciation 43,180 43,180 43,180 43,180 43,180 43,180 43,180 43,180 43,180 43,180Capital Gain Tax Due at Sale (657,970)

After Tax Cost of Ownership (571,800) (279,684) (284,047) (288,585) (293,305) (298,215) (303,324) (308,639) (314,169) (319,922) 2,937,980

COST TO OWN COST TO OWN TAXABLE GAIN ON SALEUndiscounted Cash Flow ($323,710) Cash Flow Discounted @ 6.50% ($982,096) Original Basis at Purchase $5,200,000Undiscounted Avg. Income (cost) PSF/mo. ($0.27) Discounted Avg. Income (cost) PSF/mo. ($0.83) Depreciation Taken (1,053,165)Monthly PSF income based on occupied area of 9,920 SF Monthly PSF income based on occupied area of 9,920 SF

Basis at Sale $4,146,835

Taxable Gain on Sale $2,631,879Capital Gain Tax - Rate @ 25.00% $657,970

9840 Irvine Center DrivePurchase vs. Lease Analysis Scenario: Buyer to occupy 9,920 sq. ft. and lease 0 sq. ft. to tenants

SCENARIO 2 - LEASE BUILDING9,920 sq. ft. Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NNN Rent - 9,920 SF x $2.45 + 3.0% / yr. (291,648) (300,397) (309,409) (318,692) (328,252) (338,100) (348,243) (358,690) (369,451) (380,534)NNN Expense - 9,920 SF x $0.75 + 3.0% / yr. (89,280) (91,958) (94,717) (97,559) (100,485) (103,500) (106,605) (109,803) (113,097) (116,490)

Tax Benefit For Lease Payment 119,576 123,163 126,858 130,664 134,583 138,621 142,780 147,063 151,475 156,019Tax Benefit For Operating Expenses 36,605 37,703 38,834 39,999 41,199 42,435 43,708 45,019 46,370 47,761

After Tax Cost of Lease - (224,748) (231,490) (238,435) (245,588) (252,955) (260,544) (268,360) (276,411) (284,703) (293,245)

COST TO LEASE COST TO LEASEUndiscounted Cash Flow ($2,576,478) Cash Flow Discounted @ 6.50% ($1,824,056)Undiscounted Avg. Cost PSF/mo. ($2.16) Discounted Avg. Cost PSF/mo. ($1.53)

SUMMARY OF PURCHASE VS. LEASEBuilding Appreciation Over 10 Years $1,788,365 << final sale value minus original purchase priceCash Flow Savings of Ownership PSF $1.89 << difference between undiscounted average monthly cost to purchase vs. undiscounted average monthly cost to lease

This information is for illustration purposes only. Lee & Associates makes no representations or warranties as to the accuracy or validity of this report.Rates and terms are assumptive and each buyer should consult with their own tax accountant and attorney as to their own individual circumstances.

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SALE COMPARABLES

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BuildingAddress Sale Price Price PSF RSF

Parking Ratio Sale Date

1)25251 Paseo De AliciaLaguna Hills, CA 92653

$9,700,000 $506 19,134 2.2/1000 4/19

2)700 Roosevelt AveIrvine, CA 92620

$2,653,500$534 4,960 4/1000 6/18

3)780 Roosevelt

Irvine, Ca 92618$10,700,000 $529 20,228 4/1000 5/18

4)12 Truman

Irvine, CA 92620$2,730,000 $523 5,219 4/1000 5/18

Averages: $6,445,875 $523 12,385 3.55/1000

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EXCLUSIVELY LISTED BY: BRIAN GARBUTTSenior Vice PresidentLic. #01215482949.790.3166bgarbutt@leeirvine.com

LEE & ASSOCIATES-IRVINE9838 Research Drive

Irvine, California 92618949.727.1200

www.lee-irvine.com

I R V I N E , C A L I F O R N I A