1327 De La Vina Street Santa Barbara, CA 93101

How The Lease Option Works — In Plain English

1. Lease it Sign a 2-year NNN lease at $10,000/month and take possession immediately.

2. Lock the price The purchase option fixes today’s price — $2,350,000 — for the full two years. Whatever value you create in the meantime, the price does not move.

3. Create value Use the term to entitle a residential/mixed-use project — and sublease the existing building and yard while you do (with Lessor consent; no uses with
environmental impact) — or establish and grow your own business on site.

4. Close when ready Exercise the option during the lease term and close — pairing the purchase with construction financing or owner-user financing, arranged on your timeline.

Summary Of Lease-Option Terms:
Structure Two-year NNN lease with a fixed-price purchase option.

Monthly Rent $10,000 per month, NNN (tenant pays taxes, insurance & maintenance).

Option Price $2,350,000 — fixed for the full term/

Option Window Exercisable during the lease term (final window per option agreement.

PATH 1 — DEVELOPER: ENTITLE, THEN BUY:

Control the site for $10K/month while you entitle apartments — no land loan, no equity outlay.

Sublease the existing building while entitling (with Lessor consent) — cut your
net carry roughly in half.

Entitlement value you create accrues to you — the price is already fixed.

PATH 2 — OWNER/USER: OCCUPY, THEN OWN

• Move your business in now; buy the property in 2028 at a price you already know.

• Two years to prove the location before committing capital — option, not obligation.

• Owner-occupant financing at exercise — SBA-style low down payments after two years in occupancy.

Subleasing & Due Diligence:

Subleasing: permitted with Lessor consent — designed for a developer offsetting carry during entitlement; uses with environmental impact are excluded.

Available upon request: Phase I ESA (Aug 2025), Phase II subsurface soil report (Sep 2025), hoist-removal closure report (Feb 2026), preliminary title report, topographic survey, floor plan, and land use survey.

Contact Listing Agents for further details.