529 Aldo

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					                                       SILICON VALLEY
                         30-Year Single-Tenant NNN Industrial Building
                               529 Aldo            Santa Clara, California




Exclusively Listed By:           BRIAN GARBUTT
                                 Senior Vice President
                                 License ID# 01215482
                                 949.790.3166
                                 bgarbutt@lee-associates.com
                                 Lee & Associates - Irvine, Inc. | 111 Pacifica, Suite 310 | Irvine, California | 92618 | www.lee-associates.com
                                                                     CSL - 529 ALDO | SANTA CLARA


DISCLAIMER




This Confidential Offering Memorandum (this “Memorandum”) is being delivered subject           Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase
to the terms of the Confidentiality Agreement signed by you (the “Confidentiality Agree-       the Property or to terminate any negotiations with any party at any time with or without
ment”) and constitutes part of the Evaluation Material (as defined in the Confidentiality      written notice. Owner shall have no legal commitment or obligations to any prospective
Agreement). It is being given to you for the sole purpose of evaluating the possible ac-       purchaser until a written sale agreement has been fully executed, delivered and ap-
quisition of 529 Aldo, Santa Clara, California (“Property”), and is not to be used for any     proved by Owner and any conditions to Owner’s obligations hereunder have been satis-
other purpose or made available to any other party without the prior written consent of        fied or waived. Owner has retained Broker as its exclusive broker and will be responsible
the “Owner” or Lee & Associates Commercial Brokerage (“Broker”).                               for any commission due to Broker in connection with a sale of the Property pursuant to
                                                                                               separate agreement. Broker is not authorized to make any representation or agreement
This Memorandum was prepared by the Broker based on information supplied by the                on behalf of Owner. Each prospective purchaser will be responsible for any claims for
Owner and the Broker. It contains selected information about the Property and the real         commissions by any other Broker in connection with a sale of the Property if such claims
estate market but does not contain all the information necessary to evaluate the acquisi-      arise from acts of such prospective purchaser or its Broker. Owner has the property in
tion of the Property. The financial projections contained herein (or in any other Evaluation   an option to purchase and Owner has no obligation to exercise option and close on this
Material, including any computer diskettes) are for general reference only. They are           property.
based on assumptions relating to the general economy and local competition, among
other factors. Accordingly, actual results may vary materially from such projections. Vari-    This Memorandum is the property of Owner and Broker and may be used only by parties
ous documents have been summarized herein to facilitate your review; these summaries           approved by Owner and Broker. No portion of this Memorandum may be copied or oth-
are not intended to be a comprehensive statement of the terms or a legal analysis of such      erwise reproduced or disclosed to anyone except as permitted under the Confidentiality
documents.                                                                                     Agreement.

While the information contained in this Memorandum and any other Evaluation Material
is believed to be reliable, neither Broker nor Owner guarantees its accuracy or com-
pleteness. Because of the foregoing and since the Property will be sold on an “AS IS”,
                                                                                               Exclusively Offered By:
“WHERE IS” basis, a prospective purchaser must make its own independent investigations,
projections, and conclusions regarding the acquisition of the Property without reliance on
                                                                                               BRIAN GARBUTT
this Memorandum or any other Evaluation Material. Although additional Evaluation Mate-         Senior Vice President
rial (which may include engineering, environmental or other reports) may be provided to        License ID# 01215482
qualified parties as marketing proceeds, prospective purchasers should seek advice from        949.790.3166
their own attorneys, accountants, and engineering/environmental experts.                       bgarbutt@lee-associates.com
                                                                 CSL - 529 ALDO | SANTA CLARA




OFFERING SUMMARY

This offering is for the fee simple interest in a single tenant industrial build-       LEASE DETAILS
ing in Santa Clara, California.
                                                                                           Tenant:             CSL Plating
PROPERTY DESCRIPTION
                                                                                           Lease Start Date:   January 1, 2013
The Property is located on the north side of Aldo Avenue in the City of                    Lease Term:         30 Years
Santa Clara, California. The Property is leased to CSL-Plating. The Prop-
erty is located in Santa Clara in the heart of the Silicone Valley.                        Annual Rent:        $300,000
                                                                                           Increases:          3.5% Annual Increases in Years 1-20
PROPERTY HIGHLIGHTS                                                                                            2.5% Annual Increases Thereafter
   Pricing:                 $4,615,000
   Existing NOI:             $300,000
   CAP Rate:                     9.15% average CAP rate for first 20 years
   Leveraged IRR*:              13.70%




    *Assumes 60% LTV, 30 years amortization, 5% interest rate.



                                                                                                                                 Property Description
                                                        CSL - 529 ALDO | SANTA CLARA




INvESTMENT HIGHLIGHTS

   •   Located in Santa Clara in the heart of Silicon Valley. World-class         •    Millions of dollars of specialized improvements—pri-
       specialized services supplier to Applied Materials vendors as well              marily funded by building owner— make it cost pro-
       as major aerospace and medical suppliers.                                       hibitive for CSL to ever move out.

   •   Absolute 30-year NNN lease.                                                •    In place fixturization of the building is priceless to com-
                                                                                       peting semi-conductor/aerospace companies. Com-
   •   Over 500 specialized regulatory and site-specific permits (includ-              pany has world-class clean rooms as well as world-
       ing two world-class clean rooms) coupled with customer approv-                  class patented technologies.
       als, makes it nearly impossible for tenant to move —new facility
       would take more than 2-years and cost over $8MM to construct               •    H7 rated occupancy-this rating is extremely hard and
       and would likely have to be located 25 miles away (a non-starter                expensive to get. Any company that needs to oper-
       for many customers).                                                            ate under this occupancy rating would pay a premi-
                                                                                       um to have it in place.
   •   CSL has been in business since 1986 and 2012 EBITDA will be
       $1,600,000 after all expenses including rent (29.7% EBITDA margins).       •    9.15% 20 average cap rate for first 20 years—starting at
                                                                                       6.5% with 3.5% annual rent increases for 20-years with
   •   Company has pipeline of orders for its patented cadmium re-                     2.5% thereafter
       placement process that will grow EBITDA to well over $3MM in the
       next 12 months.




                                                                                                                              Property Description
                                                  CSL - 529 ALDO | SANTA CLARA




BUILDING DESCRIPTION

Address:                    529-531 Aldo                                 Clean Rooms:      One (1) Class 1000
                            Santa Clara, CA 95054                                          One (1) Class 100
Assessor's Parcel Number:   101-09-017                                   Sprinkler:        Fully Sprinklered
Location:                   Santa Clara                                  Clearance:        18 Feet
Size:                       0.54 Acres                                   Power:            2000 Amps @ 208 Volt
                                                                                           400 Amps @ 480 Volt 3 Phase
Year Built:                 1973; Renovated in 2003
                                                                         Loading:          Three (3) GL Oversized Doors
Total Building Area:        15,744 Sq. Ft.
                                                                         Special Zoning:   H7 Rated Occupancy
Zoning:                     ML
                                                                         Seismic:          Seismic Upgrade
Parking:                    17 Stalls
                                                                         Cranes:           Three (3) Indoor Cranes with Estab-
Stories:                    One (1)
                                                                                           lished Infrastructure to Accommodate
Flooring:                   Reinforced Concrete                                            a Fourth Crane
Construction:               CTU                                          Steel Lean To:    1,080 SF Steel Frame Sprinklered Lean
Roof Cover:                 Title 24 Reflective Roof Installed in 2003                     to All

Restrooms:                  Six (6)



                                                                                                                Property Description
                                                          CSL - 529 ALDO | SANTA CLARA



TENANCY

                   CSL is a recognized leader of plating and coating solu-      CSL Milestones
                   tions for technology, aerospace, medical and energy
                   companies. They offer more than 40 different plating              1986        Founded as AA Plating in Santa Clara, California
                   processes, which exemplifies why their customers do               1987        Reincorporated as CSL
                   business with them: their capacity for innovation. They           1990        Opens Class-100 clean room facilities
                   have also upgraded their quality system to become                 1992        Begins offering Dicronite® dry film lubricant process
                   the only NADCAP-certified plating company in North-               1994        Begins offering proprietary Ni-LubeTM electroless
ern California.                                                                                  nickel with Teflon composite coating
                                                                                     1996        Begins offering industry’s first cadmium replacement
Founded in 1986, the company has continually expanded its capabilities                           coating to meet all parameters of MIL-C-85049 for
by adding new processes, commissioning new equipment, and employ-                                connectors
ing the latest technologies to meet their customers’ ever-changing needs.            2000        Receives Industry of the Year Award from the Cali-
                                                                                                 fornia Water Environment Association
2012 EBITDA will be $1,600,000 after all expenses including rent (29.7% EBIT-        2003        Expands process capabilities to include difficult-to-
DA margins).                                                                                     plate materials
                                                                                     2004        Automates bead blasting process to ensure consist-
Company has pipeline of orders for its patented cadmium replacement                              ent and uniform finishes on even the most complex
process that will grow EBITDA to well over $3 million over the next 12                           surfaces
months.                                                                              2006        Approved for JSF component coating, a very dif-
                                                                                                 ficult operating environment;
                                                                                                 CSL is one of the only two such approved facilities in
                                                                                                 the U.S.
                                                                                     2009        Receives NADCAP Accreditation, becoming the
                                                                                                 only Northern California plating company with this
                                                                                                 certification
                                                                                     2011        Receives NADCAP “Supplier Merit” award for
                                                                                                 Chemical Processing




                                                                                                                                   Property Description
                CSL - 529 ALDO | SANTA CLARA


AERIAL




         SITE




                                               Property Description
                    CSL - 529 ALDO | SANTA CLARA


BIRD'S EYE AERIAL




                        SITE




                                                   Property Description
              CSL - 529 ALDO | SANTA CLARA


LOCATOR MAP




                                SITE




                                             Property Description
             CSL - 529 ALDO | SANTA CLARA


FLOOR PLAN




                                                              RR
                   Storage


                                                                          Office
                                               Sintering
                                  Gas            Room
                                                            Comp.
             Maintenance         Boiler                     Room
                                 Room




                                                           Conference
                                                             Room

                             Upstairs
                             Storage




                                          RR

                             Lab Area
                                                             Lunch Room




                                                                                   Property Description
             CSL - 529 ALDO | SANTA CLARA


PARCEL MAP




                                            SITE




                                                   Property Description
                                      CSL - 529 ALDO | SANTA CLARA


RENT ROLL



Tenant:        CSL Plating

Square Feet:   15,744

Start Date:    January 1, 2013

Lease Term:    30 Years


                 RENT/YEAR                         RENT/YEAR                   RENT/YEAR
Year 1            $300,000       Year 11            $423,180         Year 21   $591,168
Year 2            $310,500       Year 12            $437,990         Year 22   $605,947
Year 3            $321,367       Year 13            $453,320         Year 23   $621,096
Year 4            $332,615       Year 14            $469,186         Year 24   $636,624
Year 5            $344,267       Year 15            $485,607         Year 25   $652,539
Year 6            $356,306       Year 16            $502,604         Year 26   $668,853
Year 7            $369,777       Year 17            $520,195         Year 27   $685,574
Year 8            $381,684       Year 18            $538,402         Year 28   $702,713
Year 9            $395,043       Year 19            $557,246         Year 29   $720,281
Year 10           $408,869       Year 20            $576,749         Year 30   $738,288




                                                                                          Financial Analysis
                                             CSL - 529 ALDO | SANTA CLARA


TRANSACTION SUMMARY


Asking Price:                             $4,615,000

Terms:                                    All cash

Actual NOI for 12 months Ending 12/2013   $300,000




                                                                            Financial Analysis
                                                       CSL - 529 ALDO | SANTA CLARA


FINANCIAL ANALYSIS



CASH FLOW ASSUMPTIONS:

Software:            The cash flow analysis has been prepared with the assistance of ARGUS software.

Analysis Period:     A 30-year discounted cash flow is prepared commencing January 1, 2013.

Square Footage:      There is a total of 15,744 square feet.

Growth Rates:        General operating expenses, capital expenditures, and property taxes are inflated 3% per year.




                                                                                                                      Financial Analysis
                                                                 CSL - 529 ALDO | SANTA CLARA


      CASH FLOW ANALYSIS




                                       Year 1          Year 2           Year 3          Year 4          Year 5          Year 6          Year 7          Year 8           Year 9
For the Years Ending                 Dec-2013        Dec-2014         Dec-2015        Dec-2016        Dec-2017        Dec-2018        Dec-2019        Dec-2020         Dec-2021
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Potential Gross Revenue
 Base Rental Revenue                 $300,000        $310,500         $321,367        $332,615        $344,257        $356,306        $368,777        $381,684         $395,043
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
 Scheduled Base Rental Revenue        300,000         310,500          321,367         332,615         344,257         356,306         368,777         381,684          395,043
 Expense Reimbursement Revenue         62,260          63,629           65,031          66,465          67,932          69,432          70,967          72,537           74,143
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Total Potential Gross Revenue         362,260         374,129          386,398         399,080         412,189         425,738         439,744         454,221          469,186
 General Vacancy
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Effective Gross Revenue               362,260         374,129          386,398         399,080         412,189         425,738         439,744         454,221          469,186
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Operating Expenses
 Taxes @ 1.1%                          50,765          51,780           52,816          53,872          54,950          56,049          57,170          58,313           59,479
 Insurance - $0.50                      7,872           8,108            8,351           8,602           8,860           9,126           9,400           9,682            9,972
 Other OpEx (T pays)
 Management @ 1%                        3,623           3,741            3,864           3,991           4,122           4,257           4,397           4,542            4,692
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Total Operating Expenses               62,260          63,629           65,031          66,465          67,932          69,432          70,967          72,537           74,143
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Net Operating Income                  300,000         310,500          321,367         332,615         344,257         356,306         368,777         381,684          395,043
                                 ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Leasing & Capital Costs
 Reserves - $0.10                        1,574           1,622            1,670           1,720           1,772           1,825           1,880           1,936            1,994
                                  ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Total Leasing & Capital Costs            1,574           1,622            1,670           1,720           1,772           1,825           1,880           1,936            1,994
                                  ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________     ____________
Cash Flow Before Debt Service         $298,426        $308,878         $319,697        $330,895        $342,485        $354,481        $366,897        $379,748         $393,049
& Taxes                          ============    ============     ============    ============    ============    ============    ============    ============     ============




                                                                                                                                                        Financial Analysis
                                                                CSL - 529 ALDO | SANTA CLARA


  CASH FLOW ANALYSIS



                                                                                          CSL
                                                                                      529-531 Aldo
                                                                                    Santa Clara, CA




                                                                          Schedule Of Prospective Cash Flow
                                                                In Inflated Dollars for the Fiscal Year Beginning 1/1/2013

      Year 10         Year 11         Year 12         Year 13          Year 14                Year 15                 Year 16          Year 17         Year 18         Year 19          Year 20
    Dec-2022        Dec-2023        Dec-2024        Dec-2025         Dec-2026               Dec-2027                Dec-2028         Dec-2029        Dec-2030        Dec-2031         Dec-2032
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________

    $408,869        $423,180        $437,991        $453,321         $469,187               $485,608                $502,605         $520,196        $538,403        $557,247         $576,750
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________
     408,869         423,180         437,991         453,321          469,187                485,608                 502,605          520,196         538,403         557,247          576,750
      75,787          77,467          79,189          80,949           82,749                 84,592                  86,478           88,407          90,382          92,403           94,471
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________
     484,656         500,647         517,180         534,270          551,936                570,200                 589,083          608,603         628,785         649,650          671,221
                                          (1)             (1)              (1)                    (1)                     (1)              (1)             (1)             (1)              (1)
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________
     484,656         500,647         517,179         534,269          551,935                570,199                 589,082          608,602         628,784         649,649          671,220
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________

      60,669          61,882          63,120          64,382            65,670                  66,983                  68,323         69,689          71,083          72,505           73,955
      10,271          10,579          10,897          11,224            11,560                  11,907                  12,264         12,632          13,011          13,402           13,804

       4,847           5,006           5,172           5,343            5,519                  5,702                   5,891            6,086           6,288           6,496            6,712
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________
      75,787          77,467          79,189          80,949           82,749                 84,592                  86,478           88,407          90,382          92,403           94,471
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________
     408,869         423,180         437,990         453,320          469,186                485,607                 502,604          520,195         538,402         557,246          576,749
____________    ____________    ____________    ____________     ____________           ____________            ____________     ____________    ____________    ____________     ____________

        2,054           2,116           2,179           2,245           2,312                   2,381                  2,453             2,526           2,602           2,680            2,761
 ____________    ____________    ____________    ____________    ____________            ____________           ____________      ____________    ____________    ____________     ____________
        2,054           2,116           2,179           2,245           2,312                   2,381                  2,453             2,526           2,602           2,680            2,761
 ____________    ____________    ____________    ____________    ____________            ____________           ____________      ____________    ____________    ____________     ____________
     $406,815        $421,064        $435,811        $451,075        $466,874                $483,226               $500,151          $517,669        $535,800        $554,566         $573,988
============    ============    ============    ============    ============            ============           ============      ============    ============    ============     ============




                                                                                                                                                                          Financial Analysis
                                                                 CSL - 529 ALDO | SANTA CLARA


CASH FLOW ANALYSIS



                                                                                                                                                  Date: 10/16/12
                                                                                                                                                   Time: 4:14 pm
                                                                                                                                                      Ref#: ADE




       Year 21         Year 22         Year 23         Year 24          Year 25         Year 26         Year 27         Year 28         Year 29         Year 30
     Dec-2033        Dec-2034        Dec-2035        Dec-2036         Dec-2037        Dec-2038        Dec-2039        Dec-2040        Dec-2041        Dec-2042
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________

     $591,169        $605,948        $621,097        $636,625         $652,540        $668,854        $685,575        $702,714        $720,282        $738,289
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________
      591,169         605,948         621,097         636,625          652,540         668,854         685,575         702,714         720,282         738,289
       96,529          98,633         100,785         102,983          105,232         107,531         109,883         112,286         114,744         152,399
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________
      687,698         704,581         721,882         739,608          757,772         776,385         795,458         815,000         835,026         890,688
           (1)             (1)             (1)             (1)              (1)             (1)             (1)             (1)             (1)             (1)
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________
      687,697         704,580         721,881         739,607          757,771         776,384         795,457         814,999         835,025         890,687
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________

       75,434          76,943          78,482          80,051           81,652          83,285          84,951          86,650          88,383          124,941
       14,218          14,644          15,084          15,536           16,002          16,482          16,977          17,486          18,011           18,551

        6,877           7,046           7,219           7,396            7,578           7,764           7,955           8,150           8,350           8,907
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________
       96,529          98,633         100,785         102,983          105,232         107,531         109,883         112,286         114,744         152,399
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________
      591,168         605,947         621,096         636,624          652,539         668,853         685,574         702,713         720,281         738,288
 ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________    ____________

         2,844           2,929           3,017           3,107           3,200            3,296           3,395           3,497           3,602           3,710
  ____________    ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________
         2,844           2,929           3,017           3,107           3,200            3,296           3,395           3,497           3,602           3,710
  ____________    ____________    ____________    ____________    ____________     ____________    ____________    ____________    ____________    ____________
      $588,324        $603,018        $618,079        $633,517        $649,339         $665,557        $682,179        $699,216        $716,679        $734,578
 ============    ============    ============    ============    ============     ============    ============    ============    ============    ============




                                                                                                                                                                   Financial Analysis
                                                        CSL - 529 ALDO | SANTA CLARA



LOCATION HIGHLIGHTS                                                           ECONOMY

Premier high-tech center                                                      The long-term outlook for the San Jose metro economy appears positive.
• Silicon Valley’s concentration of high-tech jobs is nine times the na-      The flow of venture capital into the region has increased since the end of
   tional norm.                                                               the recession. This will aid the San Jose GMP growth rate to exceed that
                                                                              of the national GDP in 2012. Retail sales grew 7.6 percent in 2011, on par
Growing economy                                                               with that of the U.S.
• Local economic gains will outpace the nation in 2012.
                                                                              The Silicon Valley, the world’s premier high-technology hub, was fueled by
                                                                              venture capital funds received in the 1990s. Today, there are 13 Fortune
Highly educated work force
                                                                              500 companies with headquarters in San Jose. These include Intel, Cisco
• Over 44 percent of residents have a bachelor’s degree compared to           Systems, Apple Inc. and Google Inc. As the economy gains strength,
   29 percent for the U.S.                                                    technology companies are beginning to hire once again. Employment
                                                                              growth in San Jose will outpace U.S. growth over the next five years.
                            - Santa Clara
                                                                              The number of businesses that support the high-tech industry has in-
                                                                              creased, driving professional and business services to become the larg-
                                                                              est local employment sector. The area’s many colleges and universities
                                                                              support these companies by graduating thousands of engineering and
                                                                              computer science students into the local work force every year.




GEOGRAPHY

The San Jose metro is located at the southern end of the San Francisco
Bay and encompasses Santa Clara County. The Santa Clara Valley runs
the entire length of the county, flanked by the rolling hills of the Diablo
Range on the east and the Santa Cruz Mountains on the west. Salt marsh-
es and wetlands lie to the northwest, adjacent to the San Francisco Bay.
A large portion of the county’s 1,315 square miles is unincorporated ranch
                                                                                                                       Santa Clara Convention Center
and farmland.


                                                                                                                                       Location Highlights
                                                          CSL - 529 ALDO | SANTA CLARA



LABOR
                                                                                                                         - Santa Clara
The San Jose employment base contains 866,100 workers, ranking the
metro as one of the top-30 largest job markets in the nation. Employment
growth is forecast to average 2.7 percent annually through 2016 with
gains in all segments. The area’s concentration of jobs in the information
sector is more than twice the U.S. average, and more than 33,900 people
work in the local computer services industry.

The Silicon Valley has evolved into a center for the design and support of
high-tech systems, with the actual manufacturing processes now occur-
ring in low-cost areas elsewhere. As a result, professional and business ser-
vices has become the largest employment sector in the MSA, accounting
for 19 percent of all jobs, while manufacturing accounts for 18 percent.
Annual growth of 3.4 percent and 1.2 percent is expected through 2016,
respectively.

The construction segment will lead employment growth over the next five
years, at an annual rate of 4 percent, as many expansion projects put on
hold during the recession resume. The population-driven education and
health services sector is expected to increase an average of 3.2 percent
yearly.                                                                         EMPLOYERS

                                                                                Large employers in the San Jose metro include high-tech industry giants
                                                                                Cisco Systems, Apple, Google and Hewlett-Packard. Although many of
                                                                                these companies reduced payrolls during the recession, hiring will con-
                                                                                tinue through 2012 buoyed by the success of the iPad at Apple.

                                                                                Not all of the area’s employers are large corporations. San Jose has over
                                                                                67,100 businesses with an average of 13 employees, and more than 64
                                                                                percent of companies have fewer than five workers. Many of these are
                                                                                small start-ups or businesses that provide support services to the tech in-
                                                                                dustry.

                                                                                Other large employers include the numerous institutions of higher edu-
                                                                                cation that are located in Santa Clara County, including San Jose State
                                                                                University, Stanford and Santa Clara State University. The local education
                                                                                system hires more than 40,000 workers.

                                                                                San Jose offers a multitude of shopping and entertainment options for
                                                                                residents who maintain a high level of disposable income to spend at
     Google Headquarters in Mountain View, California                           area retailers. More than 174,800 people are employed in the local retail
                                                                                trade.


                                                                                                                                         Location Highlights
                                                         CSL - 529 ALDO | SANTA CLARA



DEMOGRAPHICS                                                                   ECONOMY

The San Jose metro has nearly 1.9 million residents. Population growth is      •   Approximately 27,200 jobs were added in the last 12 months, marking
expected to climb through 2016 as the local economy gains steam and                an annual 3.1 percent increase. In the preceding year-long period,
companies resume hiring. Average annual gains of 1.1 percent are pro-
                                                                                   total employment expanded 2.7 percent across the South Bay.
jected through that time, above the national rate.

The residents of the MSA are highly educated, as the percentage of adults      •   The professional and business services sector is a key factor of growth
in San Jose with a bachelor’s degree is more than 50 percent higher than           in the region’s economy, with major companies such as Google, Ap-
the percentage nationwide. The percentage with a postgraduate de-                  ple and Facebook expanding their presence in terms of office space
gree is also nearly double. These figures hold positive implications for the
                                                                                   and employees. The tech giants will contribute to the nearly 6,800
local economy, as college-educated workers earn more than their non-
college-educated counterparts.                                                     new positions in the professional and business services sector through-
                                                                                   out the year.
The median household income remains high at nearly $88,800 annually,
far above the U.S. median of $54,200 per year. The local median house-         •   Companies within the manufacturing sector will also produce solid
hold income will increase nearly 12 percent by 2015.
                                                                                   gains of about 6,400 jobs as the production of semiconductor equip-
The median home price in the area, at $583,800 is more than three times            ment ramps up. Specifically, LSI and Advantest America, two major
the national rate. This makes housing affordability very difficult for resi-       players in the semiconductor arena, recently announced plans to
dents, sustaining demand for rental housing.                                       move headquarters to the northern part of San Jose to consolidate
                                                                                   their respective offices and positioning for further growth.

                                                                               •   Outlook: After adding 27,400 jobs last year, employers are expected
                                                                                   to create 35,500 new positions in 2012. The addition will amount to a
                                                                                   4 percent increase in total employment, the largest year-over-year
                                                                                   advancement since 2000.




      California’s Great America Theme Park


                                                                                                                                        Location Highlights
                                                         CSL - 529 ALDO | SANTA CLARA



METRO

The San Jose metro contains nearly 1.9 million inhabitants in 15 cities. Al-   LARGEST CITIES: SAN JOSE MSA
most half of the county’s residents are located in San Jose. It is the MSA’s
largest city with 936,000 residents, followed by Sunnyvale and Santa Clara.           San Jose                                936,000
Santa Clara is projected to post annual growth of more than 2 percent                 Sunnyvale                               141,400
through 2016.                                                                         Santa Clara                             119,700
                                                                                      Mountain View                            75,500
INFRASTRUCTURE                                                                        Milpitas                                 67,500
                                                                                      Palo Alto                                65,500
San Jose is serviced by an extensive freeway and expressway infrastruc-
                                                                                      2011 Estimate
ture and a well-developed rail system. Amtrak and Caltrain offer pas-                 Sources: Marcus & Millichap Research Services, AGS
senger and commuter rail service to San Francisco and Sacramento. The
Altamont Commuter Express operates commuter rail to Pleasanton and
Stockton, while the Santa Clara Valley Transit Authority (VTA) runs local
light rail. There are more than 50 light-rail stations through which passen-
gers can connect to VTA bus service or Caltrain.

The area is directly served by the Norman Y. Mineta San Jose International
Airport and three general aviation facilities: Reid-Hillview, Palo Alto and
South County. Additional air service is available at San Francisco Interna-
tional and Oakland International airports, each fewer than 40 miles away.


                                                                 - Santa Clara




                                                                                                                                           Location Highlights
Exclusively Listed By:   BRIAN GARBUTT
                         Senior Vice President
                         License ID# 01215482
                         949.790.3166
                         bgarbutt@lee-associates.com
                         Lee & Associates - Irvine, Inc. | 111 Pacifica, Suite 310 | Irvine, California | 92618 | www.lee-associates.com

				
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