Emcore Corporation

OVERVIEW

EMCORE Corporation (“Company” or “EMCORE”) is a leading supplier of advanced mixed-signal optics products that provide the foundation for today’s leading-edge aerospace and defense (A&D) systems and high-speed communications network infrastructure. EMCORE pioneered linear fiber optic transmission technology, and today remains a leader in optical components and systems for high speed broadband networks. The Company was established in 1984 as a New Jersey corporation and in 1997 began trading on the NASDAQ under the ticker EMKR. The Company’s current headquarters is in
Alhambra, California. The Company employs approximately 461 employees across three Office R&D and manufacturing facilities in Alhambra and Concord, California and Beijing, China.

THE OFFERING

The Property consists of two centrally connected buildings totaling 103,026 square feet. These well-maintained, mission-critical R&D and Advanced Manufacturing facilities are located in Concord, CA, strategically situated to attract the Bay Area talent necessary to design, develop, and deliver the tenants' portfolio of navigation products. In addition to the 9-year initial lease term with 3.00% annual increases, the Property will be secured by a full corporate guaranty by the Tenant. The Tenant's best-in-class capabilities enable them to produce a variety of high-quality products for a diverse customer base.

The Property is approximately 103,026 square feet and sits on 8.25 acres and is used for general administration, research and development, and assembly and manufacturing of high-performance
Quartz MEMS sensors for the Aerospace and Defense industries. The improvements consist of the:

• North Building: Consists of approximately 52,730 square feet, which includes of general office, cafeteria, and workout facility.
• South Building: Consists of approximately 50,296 square feet, which includes approximately 36,635 square feet of manufacturing and assembly space and 14,021 of Class 6 and 7 clean room space.
  
  

INVESTMENT HIGHLIGHTS

EXCEPTIONAL LONG-TERM TENANCY TO MIXED-SIGNAL OPTICS AND SENSOR MANUFACTURER
EMCORE Corporation is a leading cable infrastructure component provider evolving into a leader in sensors for the Aerospace and Defense industries. EMCORE pioneered linear fiber optic transmission technology and remains a leader in optical components and systems for high speed broadband networks.

OPTIMAL 12-YEAR LEASE STRUCTURE
The Property will be absolutely net leased to the Company. There are no landlord responsibilities; Tenant will pay all costs and expenses associated with each property, including roof and structure. The initial leaseback term of 12 years provides an investor with the security of long-term cash flow and will feature three percent (3.00%) annual rental rate escalations. The first renewal period for these assets will also feature a rent escalated from the prior year and will incorporate annual increases as well.

MISSION CRITICAL FACILITIES IN STRATEGIC MARKETS
EMCORE’s facility is strategically located in Concord, CA, within a mile of Bay Area Rapid Transit (BART) public transportation, providing access to an extremely large and talented pool of engineers which will be an essential asset to the Company’s future growth.

FREE & CLEAR OF FINANCING
The EMCORE industrial/office Sale Leaseback will be transferred free and clear of debt. Investors will be able to capitalize on today’s attractive debt markets and secure highly aggressive and favorable financing. Investors are encouraged to reach out to CBRE’s Debt and Structured Finance group regarding financing opportunities.