HIGHLY SOUGHT AFTER, FUNCTIONAL PRODUCT

Demand for quality R&D space has remained strong despite office market uncertainties because those job functions cannot be performed remotely. This demand coupled with diminishing inventory due to creative destruction means projects like MPBC are highly sought after by investors. The Project features excellent infrastructure, including grade-level loading (47 doors total), power, as well as abundant parking and convenient highway and freeway access.

STEADY INCOME WITH BALANCED ROLLOVER

The Project is currently 87% leased to a diverse roster of tenants with a balanced rollover. Over the past ten years, the property has maintained an average occupancy of 93%, reflecting sustained demand and operational stability. The Project's high functionality has contributed to strong tenant retention, with more than 25% of the current tenants occupying space at the property for ten years or longer.

LOW CAPITAL REQUIREMENTS

The Project has been institutionally owned and maintained for more than 15 years, and is in excellent condition, outside and inside the buildings. Typical leasing for this product type requires minimal transaction costs related to tenant improvements. Most tenants require only minor office improvements, and, due to the percentage of warehouse and production space in the units, the overall cost per square foot is typically low. Over the past five years, tenant improvement costs have averaged $0.81 PSF across an average of ~30k SF of new leases and renewals yearly.

PREFERRED ASSET CLASS IN SILICON VALLEY'S BEST LOCATION

Despite office market uncertainties, demand for single-story R&D/Flex space has remained strong. The Project's Golden Triangle location is highly sought after by businesses due to access to labor and ease of access to major freeways and thoroughfares. The Golden Triangle has long been known as Silicon Valley's most desirable trade areas and is home to some of the world's most notable technology companies. This concentration creates a self-reinforcing cycle that continues to draw more technology companies and investment.

DIMINISHING INVENTORY & CORPORATE LAND GRAB

Inventory of R&D product in Silicon Valley has significantly dwindled with 23.4 million square feet repositioned for multifamily or office development since 2013. Specifically in Santa Clara, many properties have been converted to residential projects, and the city has identified several additional properties for residential redevelopment. The presence of large technology firms including Apple, Facebook, Google, and LinkedIn has resulted in a very limited supply of high-quality, single-story R&D product across Silicon Valley.

PROXIMITY TO LABOR POOL AND HOUSING

Within a 3-mile radius of MPBC, ±17,000 people are employed in professional/scientific tech industries and ±60,000 are employed in manufacturing. The Project’s location allows a tenant to draw from a labor pool that is both deep and highly educated (72% with bachelor’s degree or higher). Within 3 miles of the Project there is an existing inventory of ±2,534 multifamily units built since 2019, with another ±3,972 under construction or proposed.