Investment Summary

• Dana Cove Professional Building is a stylish two-story commercial property located in the heart of Dana Point's Lantern Bay/Town Center. Town Center is the city's most dynamic neighborhood, with several sizable mixed-use projects under construction within a few hundred yards of the property. Most notable is Prado West, a three-story mixed-use project with 109 residential condominium units and 27,000 square feet of commercial space, located just to the west of the subject. The Union Bank Building, just to the east of the subject, is planned to be replaced with a three-story mixed-use development with two stories of residential units above approximately 10,000 square feet of commercial space. The subject, built in 1982, is a woodframe and stucco building which is currently configured into ten office suites occupied by seven tenants. It is 100% occupied, with most suites encumbered by month-to-month or short-term leases. There are a total of ten on-site parking spaces in a concrete surface lot at the rear of the parcel, including a handicapped space. Dana Point plans for the Town Center District to remain as the vibrant center of the city, and properties within the District are zoned TC-MU, a mixed-use designation. This zoning allows, subject to planning and building regulations, the possibility for a property to be used for a wide range of businesses including, but not limited to retail stores, office suites, live/work spaces, multi-family dwelling units, hotels, bed & breakfast facilities, food services, bars, nightclubs and liquor stores. Dana Point is emerging as one of Southern California's prime ocean-oriented resort destinations, with two five-star hotels in the city and several more within a short trip by automobile. The County of Orange has entered into an agreement for a $330 million renovation of Dana Point Harbor, most of which will take place over the next decade. The subject would make an outstanding acquisition for a user or investor. For an owner/user who can occupy at least 51% of the property, very favorable SBA financing is available with up to 90% loan-to-value financing available at an annual interest rate of approximately 5%.