AUTOZONE NET LEASE. Investment Property Offering. $14,950, West Taron Drive, Elk Grove, CA Offering Highlights

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1 Investment Property Offering AUTOZONE NET LEASE $14,950, West Taron Drive, Elk Grove, CA Presented By: Kase Abusharkh DRE# Abigail Circle Danville, CA (925) Offering Highlights AutoZone, Inc. (NYSE: AZO) Guaranteed Lease S&P Rated BBB Investment Grade Credit Annual Increases in Rent New Class A Construction 02/01/2012 All Sperry Van Ness Offices Independently Owned and Operated.

2 Table of Contents 1 Financial Analysis Executive Summary Investment Information Rent Roll Summary 2 Additional Information Pictures

3 All Sperry Van Ness Offices Independently Owned and Operated. 1. Financial Analysis

4 AUTOZONE NET LEASE Executive Summary 9650 West Taron Drive Elk Grove, CA Total List Price $14,950,000 CAP 7.00 % Available Space List Price $1,165,000 Available S.F. 14,565 Availble Price Per S.F. $79.98 Building S.F. 75,063 No. of Parking Spaces 413 Parking Ratio 5.5/1000 Land Acres 7.76 AutoZone (ALLDATA, LLC) Class A Office Building Cross Street Riparian Dr./Elk Grove Blvd. Tax Parcel Number Market Sacramento Sub Market Elk Grove Year Built 2009 Building Class A Location Class A Zoning Type MP Occupancy % Property Descriptions Major Tenants ALLDATA, LLC is the largest single source of OEM (Original Equipment Manufacturer) information available. ALLDATA provides vehicle manufacturers' diagnostic and repair information. The company was founded in 1986 in Elk Grove by entrepreneur Rod Georgiu and a team of computer and automotive professionals who foresaw how automotive technology would soon transform the vehicle repair industry. As computer technology took hold, ALLDATA began compiling the largest single source of OEM information available. In 1996, ALLDATA was purchased by AutoZone to provide service & repair information in addition to the automotive parts and accessories sold at AutoZone retail stores. AutoZone operates more than 4,832 stores around the country; is publicly traded under the ticker (AZO); has a market cap of $13.8B; and maintains a S&P Credit Rating of BBB. AutoZone is the #1 auto parts retailer in the country. Construction Class A quality construction completed in Parking Generous on-site parking with 5.5 spaces per 1,000 sf of building. Area Elk Grove is a city in Sacramento County, California, located just south of the state capital of Sacramento. It is part of the Sacramento Arden-Arcade Roseville Metropolitan Statistical Area. As of the 2010 census, the population of the city is 153,015. The second-largest city in Sacramento County, Elk Grove earned the title of the fastest growing city in the US between July 1, 2004 and July 1, 2005.

5 Property The subject offering is a 75,063 sf Class A office building leased to ALLDATA, LLC and guaranteed by AutoZone, Inc. The lease is NNN with minimal landlord obligations and an annual 2% rental increase. Landlord is responsible for roof and structure. There is a new roof with a 10 year NDL roof warranty. Tenant is responsible for HVAC, repairs and maintenance of the Premises and prorata share of common area maintenance. There is an additional 14,565 sf available for lease. The price reflects a 7.00% CAP on 2012 AutoZone income and $80/sf on the vacant space. The asset sits just off on Interstate 5 and Elk Grove Boulevard with excellent freeway access.

6 AUTOZONE NET LEASE 9650 West Taron Drive Elk Grove, CA Investment Information Total List Price $14,950,000 AutoZone List Price $13,785,000 CAP 7.00 % Available Space List Price $1,165,000 Available Space Price Per S.F. $79.98 Building S.F. 75,063 No. of Parking Spaces 413 Parking Ratio 5.5/1000 Land Acres Scheduled Income $1,019,996 $1,040,323 $1,060,651 $1,082,430 Reimbursement $228,065 $228,065 $228,065 $228,065 Gross Operating Income $1,248,061 $1,268,388 $1,288,716 $1,310,495 Less Expenses $282,972 $282,972 $282,972 $282,972 Net Operating Income $965,089 $985,416 $1,005,744 $1,027,523 Estimated Annualized Expenses Highlights Total Expenses $282,972 $282,972 Expenses Per S.F. $3.77 $3.77 Please see expense detail on next page. AutoZone, Inc. (NYSE: AZO) Guaranteed Lease S&P Rated BBB Investment Grade Credit Annual Increases in Rent New Class A Construction

7 Estimated Expense Summary Projected Taxes $192,329 $192,329 $192,329 $192,329 Insurance $8,235 $8,235 $8,235 $8,235 Off-Site Management $25,000 $25,000 $25,000 $25,000 Water $7,200 $7,200 $7,200 $7,200 Trash $6,200 $6,200 $6,200 $6,200 Landscaping $10,800 $10,800 $10,800 $10,800 Parking Lot $2,600 $2,600 $2,600 $2,600 Security $4,600 $4,600 $4,600 $4,600 Common Area Electricity & $10,800 $10,800 $10,800 $10,800 Fire Sprinkler Monitoring $2,400 $2,400 $2,400 $2,400 Sewer Service $5,808 $5,808 $5,808 $5,808 Common Area Maintenance & $7,000 $7,000 $7,000 $7,000 Totals $282,972 $282,972 $282,972 $282,972

8 Rent Roll Summary Space Number Tenant Name Start Date End Date Occupied S.F. Vacant S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments A AutoZone, Inc. 4/1/2010 3/31/ ,498 $16.86 $1,019, % Rent increases 2% annually. Tenant has two 5 year options to renew. Rent increases 5.73% at the first year of the first option and 6.69% at the first year of the second option with 2% annual increases each other year. Please refer to the Lease Abstract that follows. Lease commencement date July 31, B Available 14,565 $0.00 $ % Total 60,498 14,565 $1,019, % Total S.F. 75,063 S.F. Vacancy (%) % All Sperry Van Ness Offices Independently Owned and Operated.

9 Lease Abstract Tenant: Guaranty: Gross Leasable Area: AllData, LLC AutoZone, Inc., a Nevada Corporation 60,498 SF Lease Agreement Dated: June 27, 2008 Lease Commencement: July 31, 2009 Rent Commencement: April 1, 2010 Lease Expiration: March 31, 2020 Lease Term: Renewal Options: Lease Type: Tenant Responsible: Landlord Responsible: Real Estate Taxes: Ten years and eight months Two 5 year options NNN HVAC and all Repairs and Maintenance associated with the Premises and prorata share of Common Area Maintenance and Repairs Roof and Structure Tenant pays all real estate taxes associated with the asset Rent Schedule: Adjustment Date Monthly Rent Inc. % Adjustment Date Monthly Rent Inc. % 4/1/2011 $83, % 4/1/2012 $84, % 4/1/2013 $86, % 4/1/2014 $88, % 4/1/2015 $90, % 4/1/2016 $91, % 4/1/2017 $93, % 4/1/2018 $95, % 4/1/2019 $97, % Options Adjustment Date Monthly Rent Inc. % Adjustment Date Monthly Rent Inc. % 4/1/2020 $103, % 4/1/2021 $105, % 4/1/2022 $107, % 4/1/2023 $109, % 4/1/2024 $111, % 4/1/2025 $119, % 4/1/2026 $121, % 4/1/2027 $123, % 4/1/2028 $126, % 4/1/2029 $128, %

10 2. Additional Information All Sperry Van Ness Offices Independently Owned and Operated.

11 Tenant Overview AutoZone (NYSE: AZO) is a Fortune 300 corporation based in Memphis, Tennessee which is engaged primarily in the business of the retail sale of automotive parts and accessories. It was originally a division of Memphis-based wholesale grocer Malone & Hyde, and went under the name Auto Shack, which was changed after the Radio Shack company objected. After the sale of the grocery operation to the Fleming Companies of Oklahoma City, the name of the company was changed to AutoZone to reflect the new focus. AutoZone holds the naming rights to the downtown Memphis baseball stadium that is the home of the Memphis Redbirds of the Pacific Coast League. The company also sponsors the AutoZone Liberty Bowl. Duralast and Valucraft are AutoZone's private label brand of automotive batteries (manufactured by Johnson Controls), as well as other parts and accessories. AutoZone is incorporated in the state of Nevada. Its major competitors include Pep Boys, Advance Auto Parts, O'Reilly Auto Parts, and CSK Auto doing business as Schucks, Kragen, Murray's, and Checker Auto Parts, as well as CARQUEST and NAPA. AutoZone is a publicly traded company on the New York Stock Exchange under the ticker AZO. The company has a Standard & Poor s credit rating of BBB+ which is investment grade. Estimated revenues for 2011 exceed $8 billion. AutoZone operates 4,832 stores and employs more than 65,000 people. For more information about please visit

12 Rendering All Sperry Van Ness Offices Independently Owned and Operated.

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20 Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.

21 Wide Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.

22 Site Plan All Sperry Van Ness Offices Independently Owned and Operated.

23 Space Plan All Sperry Van Ness Offices Independently Owned and Operated.

24 Site Parking Exhibit All Sperry Van Ness Offices Independently Owned and Operated.

25 Conceptual Landscape Plan All Sperry Van Ness Offices Independently Owned and Operated.

26 Parcel Map All Sperry Van Ness Offices Independently Owned and Operated.

27 Location Map All Sperry Van Ness Offices Independently Owned and Operated.

28 9650 West Taron Drive Elk Grove, CA Demographics Report 1.00 Mile Ring 3.00 Mile Ring 5.00 Mile Ring POPULATION 1990 Population 583 8,433 37, Population 3,239 28,060 82, Population 14,582 61, ,571 % Population Change % % % 2014 Total Population 18,495 72, ,516 % Population Change % % % % Population Change % % % 2014 Total Households 6,865 27,446 49,571 % Households Change % % % % Households Change % % % 2009 Household Income $200,000-$249, Household Income $250,000-$499, Household Income $500, Average Household Size Total Owner Occupied Housing Units 4,361 18,450 34, Total Renter Occupied Housing Units 964 3,944 9, Total Daytime Population 7,574 40,920 92, Total Daytime Work Population 2,033 12,169 27, Total Establishments 259 1,497 3,242 HOUSEHOLDS 1990 Households 188 2,837 11, Households 1,099 9,487 25, Households 5,296 22,429 43,060 % Households Change % % %

29 2009 RACE AND ETHNICITY White Population 7,805 32,975 56,604 Black Population 1,579 6,460 19,520 American Indian/Alaska Native Population Asian/Hawaiian/Pacific Islander Population 3,011 13,078 30,916 Other Population (Incl 2+ Races) 2,128 8,231 18, Hispanic Population 2,744 11,267 25, Non-Hispanic Population 11,838 49, ,266 INCOME 2009 Per Capita Income $37,667 $37,333 $29, Median Household Income $91,921 $88,967 $76, Average Household Income $103,711 $101,622 $86, HOUSEHOLD INCOME DISTRIBUTION Household Income < $10, Household Income $10,000-$14, Household Income $15,000-$19, Household Income $20,000-$24, Household Income $25,000-$29, Household Income $30,000-$34, ,037 Household Income $35,000-$39, ,180 Household Income $40,000-$44, ,420 Household Income $45,000-$49, ,681 Household Income $50,000-$59, ,450 Household Income $60,000-$74, ,078 7,044 Household Income $75,000-$99,999 2,838 10,343 14,128 Household Income $100,000-$124,999 1,170 4,313 5,285 Household Income $125,000-$149, ,633 2,018 Household Income $150,000-$199,