11/4/19

Contacts: Dylan Ward805.898.4392dylan@hayescommercial.comlic. 01472452

The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee i t.

Kristopher Roth805.898.4361kris@hayescommercial.comlic. 01482732

Anacapa35Santa Barbara

A rare half acre of land in Santa Barbara’s Funk Zone, its most rapidly evolving commercial area, just one block from State Street and the beach

PRICE IMPROVEMENT

OFFERING SUMMARY Offering Price $3,995,000

Land Area Approx. 22,081 sf

Building Area None. The City of Santa Barbara recognizes 14,993 sf of previous square footage for future development.

Zoning OC / SD-3

Uses Restaurant, retail, or office PROPERTY SUMMARY Well-located half-acre of land in the heart of Santa Barbara’s “Funk Zone,” just a block from State Street and Stearns Wharf. The Funk Zone is a thriving hub of art, eats, beer + wine, and entertainment highly sought after by investors, developers and tenants. The property is within walking distance of 23 hotels and 900 hotel rooms, including the new Hotel Californian just a block away.

It is a great space to wander in and out of shops, stop for a bite in any number of restaurants, including The Lark, a five star restaurant, or visit boutique wine tasting

rooms. -TripAdvisor review

“ “ This area just off State Street near the wharf is growing. Lots of awesome trendy wine bars and beer stops. Definitely funky.

-TripAdvisor review“ “

It’s lively, full of hip people, locals mostly, colorful with cool street art and funky places, art studios. Something interesting to look at on every corner. -Yelp review“ “

Don’t let the small footprint fool you, there is so much energy bursting out of this area. The Funk Zone is like a subculture of everything I want to do on my “me time”. It is located just steps from the pier, harbor, beaches, train station and State Street, you can check it out any time you like and you may never leave. -Yelp review

“ “We stopped at several galleries,

breweries and wineries. The vibe is cool and relaxed and everything is within walking

distance. -TripAdvisor review“ “

THE FUNK ZONE GROWS UP

HOTEL CALIFORNIAN (180 feet away). The opening of this 121-room luxury hotel in August of 2017 was a pivotal moment in the evolution of the Funk Zone, as new life and economic vitality was immediately injected into State Street near the waterfront. It includes a world-class ballroom, event lawns and decks, rooftop pool, and unique meeting spaces for weddings and group events. Retailers in the project include Finney’s Crafthouse & Kitchen, Margerum Wine Co., McConnell’s Fine Ice Creams, Melville Winery, and Blackbird Restaurant.

11 ANACAPA & 29 E CABRILLO (Adjacent). The owner of the this 1.1-acre waterfront site—which includes 21,062 square feet of existing restaurant, retail and industrial space—received approvals to redevelop an 11,536 square-foot building into new restaurant and retail space. The approvals allow for adding an outdoor dining deck, while reducing on-site parking to 32 spaces, provided valet parking is offered during restaurant hours. Oku Sushi, Leadbetter Coffee & Bar, and more are open and/or coming soon.

THE MOXI (679 feet away). Opening in February 2017, MOXI, The Wolf Museum of Exploration + Innovation features more than 17,000 square feet of interactive exhibits. The LEED Gold-Certified building has a rooftop Sky Garden where you can peer through a telescope to see the city’s mission and surrounding mountains. The museum raised $25 million in a capital campaign for the building, designed by the late Barry Berkus. It has a 50-year lease on the land from the city of Santa Barbara. The museum hosted 175,000 visitors in its first year.

HOTEL AT CORNER OF GARDEN & YANONALI (0.3 miles away). The owner of the Hotel Californian intends to develop an undeveloped, 4.53-acre site on the corner of Garden and East Yanonali streets into a 250-room hotel near the waterfront. The plans call for 119 standard rooms and 131 extended stay rooms for guests who want to visit for more than 30 days.

RETAIL AT CORNER OF GARDEN & YANONALI (0.3 miles away). The owner of the undeveloped 3.16 acre property at the corner of Garden and East Yanonali streets recently won approval from the Santa Barbara Planning Commission to develop the property it has owned since 1978. The project would consist of a new 25,000 square foot, single-story commercial building and a new 8,075 square foot, two-story building with 138 surface level parking spaces. Across the street from a large condo development and just blocks from the Funk Zone, the area is envisioned as a future hub for Santa Barbara.

THE WATERFRONT HOTEL (0.6 miles away). A three-story luxury resort planned for 3 acres of waterfront land on 433 East Cabrillo Boulevard is scheduled to break ground in 2020. Developed by the Robert Green Company in partnership with Fespar Enterprises, the hotel’s design includes 60 rooms, res-taurant and bar, meeting space, outdoor function space, and rooftop pool deck with bar.

DEVELOPMENT ACTIVITY

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Much like Cannery Row in Monterey, the Funk Zone in Santa Barbara was once a booming fish processing center with big bustling warehouses between the beach and the train tracks. As large-scale fish processing moved out in the late ‘80s and early ‘90s, artists starting moving in, finding affordable studio space and creating murals and street art in this forgotten industrial zone. The affordability and artsy grit of the neighborhood also attracted new wine-tasting rooms and off-beat restaurants. Eventually, the combination of unique character, waterfront location, and depressed property values brought a renaissance of developer investment starting about 10 years ago, which has continued to date. Once an insider hipster moniker, the “Funk Zone” has become a household term in the area, and a must-do attraction listed in travel guides all over the world.

The emergence of the Funk Zone as the city’s hottest neighborhood has spurred a cluster of restaurant, retail, and hospitality development in the immediate area. Here are some prominent examples of recent and upcoming projects.

SITE

The parcel’s zoning allows for a wide array of commercial uses (including hotel). Here are highlights from third-party land use reports regarding 35 Anacapa St.

Summary of Land Use consultant findings:*• Up to 17,993 square feet (net) of non-residential floor area• Building height up to 3 stories/45 feet• No required setbacks or “lot area and frontage” minimums• Parking ratio of 1 space per 250 SF of floor area (which may include certain

types of outdoor commercial space).

Based on this land use analysis, Hayes Commercial Group engaged Anacapa Architecture, a prominent architecture firm, to prepare a conceptual design for development of the site. Images created by Anacapa Architecture are presented to the right and on the following page. The architect envisioned a modern and efficient design based on container construction and stacked parking system providing a total of 72 parking spaces on-site.

To receive a complete set of Anacapa Architecture design work and the land use report referenced above please fill out and return the confidentiality agreement at the end of this offering memorandum.

* Disclaimer: this information is based on third party reports deemed reliable, which are available in the due diligence package. Buyer to verify viability of development scenarios independently.

Architect’s rendering showing view from North.

This concept comprises a 17,928 SF mix of retail, beverage/restaurant, gallery/workshop, and creative office—plus 72 parking spaces on-site.

DEVELOPMENT POTENTIALThe OC Zone Excerpt from a Land Use report*

The OC zone strives to achieve balanced use of the City’s Waterfront and maintain the small scale, local character that is unique to the Waterfront area. Land uses shall be encouraged in this zone that maintain and enhance the desirability of the Waterfront as a place to work, visit, and live. This zone is intended to foster a vital, mixed use neighborhood and preserve and protect the coastal environment in terms of light, air, and visual impacts.

MASON ST

ANACAPA ST

The design utilizes “high cube” containers which provides a modern aesthetic and allows for three-story structures with a total height under 30 feet. Since the zoning allows for building heights up to 45 feet, a three-story building could also easily be accommodated using traditional construction.

The design employs a triple-level stacked parking system with a capacity of 63 vehicles (in addition to 9 spaces on grade). The stacked system fits on the ground level of the project.

The project’s floor plan reflects the Funk Zone’s unique mix of businesses, including food and beverage, retail, workshops/galleries, and creative office uses. The second level also offers ample outdoor space, inviting patrons to gather, mingle, and enjoy the relaxed, social vibe of this eclectic neighborhood.

Disclaimer: this information is based on a third party conceptual design. The subject property does not have any entitlements or permits for development. Buyer to verify viability of development scenarios independently.

* Market rents are averages of recent downtown lease rates for comparable spaces. Details are available in the due diligence package.

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LEVEL 1 4,913 NET SF LEVEL 3 4,914 NET SFLEVEL 2 8,101 NET SF

CONCEPTUAL FLOOR PLANS

Space Type Net SF Gross SF Market Rent*

Retail 5,710 6,880 $4.87 NNN

Beverage/Restaurant 7,304 8,800 $4.33 NNN

Art/Creative Office 4,914 5,920 $3.25 NNN

Total 17,928 21,600

THE FUNK ZONEGenerally defined by State Street to the west, Highway 101 to the north, Gar-den Street to the east, and the ocean to the south, the Funk Zone has histori-cally been an industrial area. In the mid-1900s it was home to the Lockheed Corporation, a Weber Bread factory, and the Castagnola Brothers fishing empi-reamong others. As time passed and manufacturing waned, it slowly became a haven for artists and artisans, hosting a colorful mixture of creative uses and priding itself on its vibrancy and accessibility.

A unique history, combined with a prime location adjacent to both the beach and State Street, has recently attracted an influx of investment and new tenants including wine tasting rooms, restaurants, tech companies, and art galleries. The result has been an elevation of this previously peripheral area to a popular spot for locals and tourists alike.

In a recent explosion of contemporary sub-culture, artists, chefs, brewers, and winemakers have flocked to the Funk Zone, drawn by its dynamic atmosphere that at once holds the beauty of historical marine structures and coastal views, as well as the historical funk and industrial chic that gives the area its charm and soul.

With 35,000 tourists on average in Santa Barbara every day, the downtown area has become a thriving hub for this world-renowned wine region, now also making a name for itself in the beer world with a rich collection of award-winning tap rooms and breweries, many located on the up-and-coming “Beer Mile.” Along with the famed Urban Wine Trail, these watering holes bring heavy traffic – by train, bike and foot – into the Funk Zone and State Street. Tenants like Topa Topa, The Nook, Lama Dog, Impact Hub, and Brass Bear pack the Funk Zone with a highly walkable array of hot spots, while places like Institution Ale, Shaker Mill, Modern Times, and Night Lizard Brewing Company round out “Beer Mile.”

Known as “Santa Barbara’s hippest neighborhood,” The Funk Zone is rich with visual art and enriching culture, whether it is found in one of the ubiquitous murals adorning otherwise understated structures, or held within the pristine walls of MOXI, a “museum of exploration and innovation” focused on scientific and creative pursuits.

The Funk Zone also provides easy access to both Highway 101 and Cabrillo Boulevard, which runs along the south coast and offers breathtaking views of Santa Barbara’s prized waterfront, including Stearns Wharf and Santa Barbara Harbor. The city’s Amtrak station is also directly adjacent to the Funk Zone, further increasing its accessibility to out-of-towners.

LOCATION. The city is 90 miles north of Los Angeles and 330 miles south of San Francisco and is served by the Santa Barbara Airport and Amtrak. Tucked between the Santa Ynez Mountains and the Pacific Ocean, Santa Barbara enjoys a mild, Mediterranean climate averaging 300 sunny days a year. Santa Barbara’s beaches, parks and mountains provide a playground for a wide array of activities enjoyed by residents and visitors alike.

CULTURE. The city’s history is evident in its Spanish architecture, emanating from the majestic Mission Santa Barbara. The downtown is brimming with restaurants, theaters, museums and hosts an international film festival. Wine lovers can sample the Urban Wine Trail downtown or take a short drive to the world-class vineyards of Santa Ynez Valley.

ECONOMY. Renowned internationally for its fine restaurants, shopping, hotels and architecture, the tourism industry is the region’s main economic driver. In addition, the city economy includes a large service sector, educa-tion, technology, health care, finance, agriculture, manufacturing and local government. Education in particular is well-represented with several world-class higher learning institutions including the University of California, Santa Barbara (21,100 students), Santa Barbara City College (12,000 students), Westmont College (1,200 students), and Antioch University.

Dubbed “Techtopia” by CNBC, Santa Barbara is dotted with internet com-panies and start-ups, many of which have spun out of UCSB research teams. Technology companies have become an increasingly significant presence in downtown Santa Barbara, including Amazon, Sonos, Invoca, Honey Science, and LogicMonitor have all established large “creative” offices fronting or within a block of State Street. This surge of tech employees along the State Street corridor adds dynamism and economic vitality to the downtown area.

Tech13%

Communications6%

Professional Services

17%

Funk Zone

Site

State Street

Paseo Nuevo

Museum of Contemporary Art SB

Retail developmentHotel

development

Santa Barbara County Courthouse

Granada Theatre

Alice Keck Park Memorial Gardens

Arlington Theatre

Public Market

MOXI

SB City College

Santa Barbara Harbor

Stearns Wharf

Hotel Californian

SANTA BARBARA

RETAIL ENTERTAINMENTPASEO NUEVOCentrally located along State Street in downtown Santa Barbara, Paseo Nuevo is an outdoor shopping mall anchored by Nordstrom, American Eagle, Victoria’s Secret, and Gap as well as a number of local and regional retailers. The shopping destination features stunning Spanish architec-ture, convenient underground parking, and a wide selection of eateries to make it a one-stop shop for tourists and locals alike.

THE PUBLIC MARKETThe Santa Barbara Public Market, located at West Victoria and Chapala Streets, is a contemporary urban marketplace offering locally and region-ally sourced food, wine, and beer. Nestled in the thriving performing and cultural arts district of downtown Santa Barbara, the Public Market is the city’s premier dining destination for visitors and natives. With such a diverse collective of merchants under one roof, the Public Market offers a truly unique experience to dine, drink, gather, and host special events.

STATE STREETAt the heart of Santa Barbara lies State Street, dense with countless op-tions for food and drink, shopping, and entertainment. Stretching the en-tire length of downtown and eventually turning into Stearns Wharf, State Street serves as the retail hub and most sought-after tourist attraction in the city. Within three blocks of the subject property, hip new haunts serv-ing beer and cocktails have sprouted, like Modern Times and Shaker Mill.

SANTA BARBARA BOWL The Santa Barbara Bowl is a 4,562-seat amphitheater located in Santa Barbara. The venue, carved into the hillside, is open for concerts from ap-proximately April through approximately October with about 30 concerts per season. The current bowl season shows have included Lionel Richie, Avett Brothers, The Raconteurs, The London Symphony Orchestra, Flor-ence and the Machine, Steely Dan, Incubus, Rod Stewart, Jimmy Buffet, Hozier, and more.

THE ARLINGTON THEATREThe Arlington Theatre is the largest movie theater and principal perform-ing arts venue in Santa Barbara. In addition to regular screenings, it is home to many events associated with the annual Santa Barbara Inter-national Film Festival. Located on State Street, the Arlington was built in 1931 on the former site of the Arlington Hotel, which was destroyed following the 1925 earthquake. It was restored and expanded in the mid-1970s by Metropolitan Theaters Corporation. The auditorium itself seats 2,018 on the main floor and balcony.

THE GRANADA THEATREBuilt in 1924, the Granada Theatre opened as a dazzling new performing arts venue located in the heart of downtown Santa Barbara. Following a recent monumental restoration and nearly eighty-four years after first opening its doors, this legendary entertainment palace has returned to life as the crown jewel of Santa Barbara’s historic cultural district. An exceedingly active venue, the 1,553-seat Granada Theatre is open year round, providing a home for resident company performances as well as shows mounted by regional and national concert promoters.

ATTRACTIONSSTEARNS WHARFStearns Wharf is located in Santa Barbara down the road from the harbor. When completed In 1872, it became the longest deep-water Wharf between San Pedro and San Francisco. Named for its builder, local lumberman John P. Stearns, the wharf served the passenger and freight shipping needs of California’s South Coast for over a quarter century. Now, it’s the county’s most visited landmark, with a number of specialty retailers, restaurants and an educational Sea Center.

THE SANTA BARBARA MISSIONThe Santa Barbara Mission was established on the Feast of Saint Barbara, December 4, 1786 and was the tenth of twenty-one California Missions to be founded by the Spanish Franciscans. More than 200 years later, the Mission continues to be the chief cultural and historic landmark in the city of Santa Barbara. It’s home to a community of Franciscan friars, a beautiful church with a large and active parish, a museum and gift shop, a cemetery and mauso-leum, and twelve acres of beautifully landscaped gardens. The Mission’s com-manding position and grand proportions, graceful lines and soft, blending colors all reinforce her title, “Queen of the Missions.”

MOXI, The Wolf Museum of Exploration + InnovationA group of dedicated community volunteers came together with the desire to create a world-class museum in their own backyard that would provide opportunities for learning outside the traditional classroom. Opening day, February 25, 2017 was the culmination of years of work of the group, sup-ported by countless individuals, businesses and foundations from the Santa Barbara region and beyond. MOXI’s three floors are filled with interactive and hands-on exhibits and experiences.

SANTA BARBARA ZOOThe Santa Barbara Zoo is located on 30 acres near the ocean in Santa Barbara. The zoo has been ranked numerous times as one of the nation’s best small zoos. It has more than 500 animals in numerous exhibits, including capybara and California condors, and is famous for having had a giraffe with a crooked neck. It also features a few non-animal attractions, such as the narrow gauge Zoo Train, complete with a pair of Chance Rides C.P. Huntington locomotives. The zoo first opened in the summer of 1963.

THE SANTA BARBARA MUSEUM OF NATURAL HISTORYFounded in 1916 as the Museum of Comparative Oology, the Santa Barbara Museum of Natural History has evolved to include more than 3.5 million spec-imens covering every aspect of natural history—from mammals, birds, and marine life to geology, astronomy, paleontology, and anthropology. Newly renovated in 2018, the museum boasts state-of-the-art interactive exhibits for all ages, paired with the Central Coast’s only planetarium, on 17 acres of oak woodland along Mission Creek. Guests learn about the Santa Barbara region’s unique and diverse natural history and then go outside to explore nature in the Museum Backyard.

THE SANTA BARBARA BOTANIC GARDENWidely regarded as a model botanic garden, the Santa Barbara Botanic Gar-den is a living museum and a member of the American Alliance of Museums, dedicated to research, education, and conservation of California native plants.As an accredited museum and botanic garden, the SBBG differentiates itself from being just another beautiful place with open space and attractive veg-etation; rather it is a living museum where collections-based research pre-serves California native plants and displays them in a beautiful setting.

HOTELS SANTA BARBARA MUSEUM OF ARTAs one of the leading art museums on the West Coast, the Santa Barbara Mu-seum of Art serves a diverse audience of approximately 150,000 people an-nually. The Museum offers a wide variety of educational and interpretive pro-grams to this broad audience as well as 27,000 works of art – an art museum of magnitude and quality more commonly found in cities eight times the size of Santa Barbara. The museum is currently undergoing massive renovations and is aiming to be better than ever once work is complete.

THE MUSEUM OF CONTEMPORARY ARTMCASB is a non-collecting contemporary art museum with exhibitions rotat-ing three times a year, typically on view for fourteen weeks. MCASB focuses on audience development and visitor experience through four platforms of engagement: Community, Diversity, Experimentation, and Arts Outreach. The museum aims to provide the most compelling art possible and continue the positive arts impact on our community at home and around the world.

SULLIVAN GOSS — AN AMERICAN GALLERYEstablished in 1984, Sullivan Goss — An American Gallery has represented the work of American artists from the 19th century to the 21st century. With an inventory of over 3,000 paintings, watercolors, drawings, prints and sculp-tures, Sullivan Goss is the primary West Coast gallery positioned to help build private and public collections of important American art. The gallery mounts about twenty exhibitions each year, including solo shows for contemporary and historic artists as well as curated thematic exhibitions. Through its re-search efforts, Sullivan Goss is also involved with scholarship and research for American artists.

HOTEL CALIFORNIAN Featuring Spanish Colonial Revival architecture and modern Moorish-themed interior décor from celebrity designer Martyn Lawrence Bullard, the Hotel Californian is the new center of the Santa Barbara waterfront. Incorporating the façade of the original 1925 Hotel Californian, this 121-room seaside desti-nation features a rooftop pool and event deck providing panoramic views of the coastline and the Santa Ynez Mountains. Located steps from the beach, one block from Santa Barbara Amtrak Station and on the western edge of the Funk Zone, the Hotel Californian includes a luxurious Turkish-inspired spa, fashion boutique and fresh and distinctive dining options, together with a best-in-class ballroom, event lawns, and unique meeting spaces for weddings and group functions.

THE HILTON SANTA BARBARA BEACHFRONT RESORTHilton Santa Barbara Beachfront Resort is ideally situated on the coast and steps away from pristine beaches. With spectacular views of the mountains, the resort is a short distance to the local arts district, the Funk Zone, down-town Santa Barbara and proximate to popular shopping and wineries. Resort amenities including full-service spa, salon, fitness center, tennis courts, outdoor pool, bike rentals and lawn games. This Four Diamond resort offers 60,000 SF of indoor/outdoor meeting space including the 20,000 SF open-air Plaza Del Sol with 180-degree views of the ocean and connecting rotunda.

BELMOND EL ENCANTOPerched high in the Santa Barbara hills, this iconic hideaway offers the best views of the American Riviera. Spread across seven acres of secluded gardens, Belmond El Encanto opened in 1918 and has been part of Santa Barbara’s social scene ever since. The resort is gleaming and glamorous, yet relaxed and low-key. It invites guests to recline poolside, breathe in the ocean air, and sip a glass of crisp local wine.

ROSEWOOD MIRAMARRosewood Miramar Beach was developed by Caruso, crafted with close atten-tion to detail, award-winning design excellence and unbridled imagination. The experience aims to be both cozy and extraordinary. Residential exclusivity inspires the resort’s 124 rooms and 37 suites. Scattered across 16 acres of roll-ing lawns and lush landscaping, the spacious, thoughtfully furnished luxury accommodations are the epitome of modern beach living— light, airy, and exceptionally comfortable.

THE BILTMORE, A FOUR SEASONS HOTELTucked between the Pacific Ocean and the Santa Ynez Mountains sits this iconic, historic hideaway on the American Rivieria, where celebrities come to play. Set within 22 lush acres, woven with secluded courtyards, fountains and sun-dappled, red-brick pathways lit by gas lanterns, the Spanish Colonial villas and bungalows invoke the same casual glamour that first delighted Hol-lywood’s power players in the 1930s.

THE RITZ-CARLTON BACARA RESORTThe resort welcomes visitors with five-star amenities, scenic ocean views and easy access to the region’s vineyards, restaurants, shops and attractions. The 358 guest rooms offer perfectly framed views of the Pacific along with a wellness therapy spa and sailing expeditions. Other resort amenities include a renowned day spa, fitness center, and more than 70,000 SF of event space.

VISUAL ART

EDUCATIONUNIVERSITY OF CALIFORNIA, SANTA BARBARAUniversity of California, Santa Barbara (UCSB) is a public institution founded in 1909. It has a total undergraduate enrollment of 24,346, its setting is suburban, and the campus size is 989 acres. UCSB was ranked 8th among public universities and 37th overall by US News and World Report in 2016. Boasting six nobel laureates on faculty, UCSB is integral to the Goleta community and its largest employer. Students graduating with degrees in engineering and computer sci-ence frequently stay in the area to work for local businesses or start their own.

UCSB encompasses five schools and colleges offering over 200 ma-jors. Graduate programs at UCSB include the highly ranked College of Engineering. The Gevirtz Graduate School of Education and Donald Bren School of Environmental Science and Management are other notable graduate schools at UCSB. Undergraduates can apply for the College of Creative Studies, which emphasizes focused studies in one of eight disciplines: art, biology, chemistry and biochemistry, comput-er science, literature, mathematics, music composition or physics.

WESTMONTFounded in 1937, Westmont is an interdenominational Christian liberal arts college in Montecito, Santa Barbara’s closest neighbor. Westmont is ranked 108th in the U.S. News & World Report “America’s Best Colleges 2019” list of liberal arts colleges. In 2016, Forbes ranked Westmont No. 158 out of the 660 best private and public colleges and universities in America. The Templeton Foundation has recognized Westmont as one of the nation’s top 100 colleges committed to char-acter development. Westmont offers 26 majors, including art, biology, chemistry, communication studies, computer science, economics and business, engineering physics, English, history, music, and many more.

SANTA BARBARA CITY COLLEGESanta Barbara City College is a comprehensive community college serving the south coast of Santa Barbara County. Established in 1909, SBCC has a wide range of associate degree and certificate programs, as well as transfer programs that provide the first two years of study toward the baccalaureate degree. Students are attracted to SBCC by virtue of its outstanding faculty, small classes, state-of-the-art facili-ties, student support services and incredible location. In 2013, SBCC was named the nation’s top community college by the Aspen Insti-tute College Excellence Program. It also ranks number 1 in percentage of students who transfer to the University of California. The student body consists of 19,542 students, comprised of 11,753 part-time students and 7,789 full-time students. The school maintains an open admission policy, and all students who are at least 18 years of age or hold a high school diploma or its equivalent, are admitted.

ANTIOCH UNIVERSITYAntioch University Santa Barbara (AUSB) is a private liberal arts uni-versity in downtown Santa Barbara, California. It is part of the Antioch University system that includes campuses in Keene, New Hampshire; Seattle, Washington; Los Angeles, California; and Yellow Springs, Ohio, also home to Antioch College. Antioch University has operated in Santa Barbara since 1977. AUSB offers a wide array of degrees in a variety of fields and has over 100 faculty members and under 400 students.

The Seller, through Hayes Commercial Group (“Sales Agent”), has available for study certain information (“Evaluation Materials”) regarding 35 Anacapa St in Santa Barbara, CA (the “Property”). We are prepared to furnish the Evaluation Materials to you in connection with discussions concerning your possible investment in the Property only on the condition that you agree to treat the Evaluation Materials confidentially and agree specifically as follows:

1. The Evaluation Materials furnished to you will not be used for any purpose other than to evaluate a possible investment in the Property by you as a Principal or broker;

2. You will not make any of the Evaluation Materials available, or disclose or distribute, either orally or in writing, any of the contents of the Evaluation Materials, to any person other than your counsel, analyst(s), equity partner(s), broker(s), or potential lender(s) (hereinafter “Excluded Persons”);

3. You will not disclose to any person, other than Excluded Persons, either the fact that discussions or negotiations are taking place concerning a possible investment in the Property by you or any of the terms, conditions or other facts with respect to any such possible investment, including the status thereof;

4. You agree that you will not contact the tenant or property management staff of the Property in connection with your review of the Evaluation Materials. Any and all questions related to the Evaluation Materials must be directed solely to Kristopher Roth and Dylan Ward at Hayes Commercial Group;

5. You acknowledge that neither the Seller, nor Hayes Commercial Group, nor any affiliate of either of such persons, nor any partner, director, officer, employee, agent of or consultant to any such persons (collectively, “Seller/Agent”) has made any representation or warranty as to the completeness or accuracy of the Evaluation Materials, and any representation or warranty in connection therewith is hereby expressly excluded. The Evaluation Materials provided to you are subject to change of price or terms, withdrawal from market without notice, and prior sale. You agree that the Seller/Agent shall have no liability to you resulting from the delivery to, or use by, you of the Evaluation Materials or otherwise with respect thereto, and you

agree to defend, indemnify and hold the Seller/Agent harmless from and against all loss, damage or expense sustained or incurred by Seller/Agent by reason of any unauthorized distribution or disclosure of the Evaluation Materials by you or by any Excluded Person;

6. We may elect at any time to terminate access to the Evaluation Materials, and you agree that you will, following any request by us or if you do not wish to invest in the Property, promptly redeliver to us all written Evaluation Materials and any other written material (and agree to delete any analyses contained in a database or spreadsheet type format) containing information in the Evaluation Materials and will not retain copies of such written material;

7. You acknowledge that you have not dealt with any broker other than Hayes Commercial Group or below named broker concerning the investment in the Property; and

8. You acknowledge that when you make available the Evaluation Materials to any Excluded Person, you will inform such Excluded Persons of the confidential nature of the Evaluation Materials and the existence and terms of this Agreement.

Please acknowledge your agreement to and acceptance of the foregoing by signing where indicated below and returning one (1) executed copy of the to our attention.

ACCEPTED AND AGREED effective as of __________________, 2019

PRINCIPAL BROKER

By: ___________________________ By: ____________________________

Name: ________________________ Name: _________________________

Company: _____________________ Company: ______________________

Tel: ___________________________ Tel: ____________________________

Email: _________________________ Email: __________________________

Deliver to the attention of:

CONFIDENTIALITY AGREEMENT Anacapa35Santa Barbara

Dylan Ward805.898.4392dylan@hayescommercial.comlic. 01472452

Kristopher Roth805.898.4361kris@hayescommercial.comlic. 01482732