WILLOW STATION CENTER N. Willow Ave CLOVIS, CA

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1 WILLOW STATION CENTER N. Willow Ave CLOVIS, CA

2 CONTENTS INVESTMENT DESCRIPTION, EXECUTIVE SUMMARY FINANCIAL OVERVIEW, RENT ROLL AERIALS & SITE PLAN AREA OVERVIEW

3 1 INVESTMENT DESCRIPTION, EXECUTIVE SUMMARY FINANCIAL OVERVIEW & RENT ROLL AERIALS & SITE PLAN AREA OVERVIEW

4 INVESTMENT DESCRIPTION 1 WILLOW STATION Marcus & Millichap is pleased to present the opportunity to purchase the Willow Station; a Grocery anchored shopping center in an upscale North Clovis CA neighborhood. The City of Clovis is located about midway between Los Angeles and San Francisco in the agriculturally rich San Joaquin Valley. Clovis is adjacent to the City of Fresno and together the two cities make up the bulk of the population centers in Fresno County. Fresno County is an immensely important agricultural area and continues to rank as one of the most important food producing counties in the Nation. Fresno County produces over 350 commercial crops worth more than 6 billion a year and supports over 20% of all jobs in the county. Clovis lies at the foot of the Sierra Nevada Mountain Range and is only an hour s drive from the world renowned Yosemite National Park, Kings Canyon National Park, and Sequoia National Parks. Clovis is widely known as the Gateway to the Sierras. The center is located at the SE Corner of Willow Ave. and Nees Ave., in North Clovis. North Clovis is considered one of the most desirable sectors of the greater Clovis/Fresno area and household incomes within a 1 mile radius of the center exceed $112,000 and exceed $91,000 within 3 miles. The subject property is surrounded by dense residential neighborhoods serving a population of over 250,000 within 5 miles. Buchanan High School is less than a mile from the Willow Station Shopping Center and academically is ranked far above state averages in measures of test scores and college preparedness and has an annual graduation rate of 99% with 70% of graduates meeting UC/CSU entrance requirements. The Willow Station was built in 2002 and features attractive shop space surrounding the two Anchor Tenants, Save Mart and CVS; Save Mart & CVS each own their own parcels and are not part of the sale. Save mart is the Market Leading Grocer in the San Joaquin Valley and operates over 200 stores in California under the banners of Save Mart, Lucky, Lucky California, FoodMaxx, S-Mart Foods, and Maxx Value Foods. The center is also shadow anchored by the only Trader Joes in Clovis and shares a parking lot. Chase Bank also occupies a separate parcel within the Willow Station and is included in the sale. Deposits at this Chase branch have been increasing steadily since the property was built and currently stand at over 90 Million dollars. The Chase parcel can be sold separately in the future for a premium. Other national tenants in the immediate area Include MacDonald s (NAP), State Farm, Supercuts, Starbucks, and Taco Bell. All tenants in the Willow Station are either food or service related and therefore not susceptible to internet competition. In Fact nearly 70% of the tenants in the Willow Station are original tenants from when the center was built in The Center has ample parking and excellent ingress and egress and will no doubt continue to be the dominant retail center for decades to come.

5 INVESTMENT SUMMARY EXECUTIVE SUMMARY 2 ADDRESS: N. Willow Ave, Clovis, CA APN: , , OFFERING PRICE: $10,750,000 NOI: $737,062 CAP RATE: 6.81% PSF: $341 LOAN TO BE ASSUMED: $5,400,000 INVESTMENT HIGHLIGHTS RENTABLE SQFT: +/- 31,500 SF TOTAL SQFT(CAM) : 106,835 SF LOT SIZE: +/- 2 Acres YEAR BUILT: 2002 NUMBER OF TENANTS: 19 GROCERY ANCHORED NEIGHBORHOOD SHOPPING CENTER: Anchored by a high performing Save Mart Grocery Store; the leading market share grocer in the Central Valley. Also anchored by CVS and Shadow anchored by the only Trader Joe s in Clovis. Trader Joe s recently renewed their lease for 10 years. DOMINANT RETAIL CENTER IN THE TRADE AREA: Very limited grocery competition within the immediate trade area STRONG HISTORIAL OCCUPANCY: Nearly 70 % of the tenants in the Willow Station have occupied the center since the property was built in 2002 HIGH INCOME DEMOGRAPHICS: Average Households income within 1 mile radius exceeds $112,000 and exceeds $97,000 within a 3 mile radius CHASE BANK ON SEPARATE PARCEL: Chase Bank with 2017 deposits of over $90 million sits on a separate parcel allowing a future owner to sell the pad at a premium price LOW EXISTING RENTS: Average rents in the center are only $1.87 NNN EASY TO MANAGE: Current owner has self-managed the center for 12 years while living outside of the United States INTERNET RESISTANT TENANTS: Tenants at the Willow Station are all service and food related tenants that are not affected by web based competition

6 2 INVESTMENT DESCRIPTION, EXECUTIVE SUMMARY FINANCIAL OVERVIEW & RENT ROLL AERIALS & SITE PLAN AREA OVERVIEW

7 FINANCIALS 3 PRICE $10,750,000 Down Payment $5,350,000 Down Payment % 53.45% Number of Suites 18 Price Per SqFt $341 Gross Leasable Area (GLA) 31,500 SF Total Center Square Footage ( CAM) 106,835 SF OPERATING DATA YEAR 1 Year 1 Scheduled Gross Income $764,259 Expense Reimbursement- CAM Charges $311,181 Annual Scheduled Gross Income $1,095,440 Less: Vacancy - 3 % $32,546 TNT Fireworks $5,500 Gross Operating Income $1,057,394 Less: Expenses $320,332 Lot Size 87,120 SF Net Operating Income $737,062 Year Built/Renovated 2002 RETURNS YEAR 1 CAP Rate 6.81 % FINANCING ASSUMPTION First Loan Amount $5,400,000 Interest Rate 4.63 % Payment $41, LTV 51 % Lender Standard Insurance Amortization 17 Years DCR 1.45 Due 3/01/2026 Less: Loan Payments $502,015 Pre-Tax Cash Flow $235, % Plus: Principal Reduction $255,504 Total Return Before Taxes $490, % OPERATING EXPENSES YEAR 1 Property Tax % $124,035 Fire/ Security $3,377 Other Tax & Licenses $2,455 Insurance $9,438 Professional Services $11,775 Gardening $25,386 Maintenance & Repairs $6,648 Trash & Sweeping $29,416 Utilities & Telephone $77,275 Management Services $30,528 Total Expenses $320,332 * Expenses/SF $2.99 *CVS, Save Mart and McDonalds all pay representative share of CAM but do not pay property taxes. Property taxes are paid by inline tenants based on tenants share of total square footage of 31,500

8 RENT ROLL 4 TENANT ADDRESS/ SUITE SQUARE FEET RENT/ MONTH/SF MAY 2018 RENT/MONTH LEASE TYPE LEASE START DATE LEASE EXP DATE LEASE OPTIONS RENT INCREASES Nail Salon ,060 $2.05 $3, NNN 7/6/2018 2/28/ x 5 yr option FIXED Cigarette Station $2.49 $2, NNN 10/1/ /30/ x 5 yr option 3% H & R Block ,440 $1.72 $2, NNN 10/1/2002 4/30/ x 3 yr option FIXED Hungry Bear, Inc ,440 $1.94 $2, NNN 11/1/2002 MTM 1 x 5 yr option NONE Ocean Relaxing Station ,440 $1.91 $2, NNN 7/1/2007 4/30/ x 5 yr option 3% Touch of Gold Tanning ,160 $2.41 $5, NNN 11/1/2002 3/31/ x 5 yr option 3% CVS Store #03940C ,432 ~ CAM ONLY~ Valley First Credit Union ,160 $1.85 $3, NNN 4/1/2016 4/30/ x 5 yr option FIXED State Farm ,440 $1.75 $2, NNN 2/1/2014 1/31/ x 3 yr option FIXED Bland Solar Air ,440 $1.85 $2, NNN 3/24/2016 3/23/ x 2 yr option 3% Supercuts ,440 $1.85 $2, NNN 10/5/ /31/ x 5 yr option 3% Lellani Shave Ice $2.11 $1, NNN 3/14/2014 3/13/ x 5 yr option FIXED Vacant $2.11 $1, NNN N/A N/A N/A TBD River Rock Brews ,520 $2.00 $5, NNN 8/1/ /30/ x 5 yr option 3% Savemart Grocery Store ,260 ~ CAM ONLY~ McDonald s ,643 ~CAM ONLY~ Contiued on Next Page

9 RENT ROLL 5 TENANT ADDRESS/ SUITE SQUARE FEET RENT/ MONTH/SF MAY 2018 RENT/MONTH LEASE TYPE LEASE START DATE LEASE EXP DATE LEASE OPTIONS RENT INCREASES Chase Bank ,500 $2.26 $10, NNN 11/1/ /31/ x 5 yr option FIXED China Chef ,160 $1.75 $3, NNN 11/15/ /14/ x 5 yr option 3% Postal Annex ,440 $1.85 $2, NNN 10/15/2002 2/28/ x 5 yr option 2% Pho VietNam ,440 $1.96 $2, NNN 4/11/2016 4/12/ x 3 yr option 3% One Hour Martinizing ,800 $1.68 $3, NNN 9/1/2002 8/31/ x 5 yr option 2% ATT Tower $968 NNN Total 106,835 $63, $764, Notes 1) Willow Station owner administers CAM for the entire center 2) Anchor tenants Save Mart, CVS and McDonalds all pay their representative share of CAM for entire center based upon total rentable square footage of 106,835; however, they do not pay property taxes as they own their own parcels 3) Chase Bank pays its representative share of CAM with some carve outs for water, trash, HVAC, and roof maintenance which they cover on their own building 4) Inline tenants pay their representative share of CAM based on the centers total square feet of 106,835 5) Inline tenants pay their share of property taxes and insurance based on the total square footage of the inline spaces only which represents 31,500 square feet 6) SaveMart, CVS, and McDonalds pay management fees of 8% of expenses excluding insurance and utilities 7) Inline tenants all pay management fees between 10 % and 15 % of total annual property expenses 8) Tenant in space , Lellani Shave Ice, is the only tenant on a gross lease and pays no reimbursements

10 3 INVESTMENT DESCRIPTION, EXECUTIVE SUMMARY FINANCIAL OVERVIEW & RENT ROLL AERIALS & SITE PLAN AREA OVERVIEW

11 AERIALS 6 Downtown Fresno mcdonald s

12 AERIALS 7

13 SITE PLAN 8 TENANT ROSTER SUITE TENANTS SQUARE FEET Vacant 1, VIP Nails Cigarette Station H & R Block 1, Hungry Bear Inc 1, Ocean Relaxing Station 1, Touch of Gold Tanning 2, Valley First Credit Union 2, State Farm 1, Bland Solar Air 1, Supercuts , Lellani Shave Ice Vacant New Tenant- Lease out for Signature 2, China Chef 2, Postal Annex 1, Pho VietNam 1, One Hour Martinizing 1,800 Available SF 1,980 Total SF 31,500

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17 PROPERTY PHOTO 12 Chase Bank on Seperate Pad; could be sold seperately in the future June 2016 Deposits- 81 Million June 2017 Deposits- 90 Million

18 4 INVESTMENT DESCRIPTION, EXECUTIVE SUMMARY FINANCIAL OVERVIEW & RENT ROLL AERIALS & SITE PLAN AREA OVERVIEW

19 AREA OVERVIEW 13 UNIT TYPE 1 MILE 3 MILES 5 MILES DEMOGRAPHICS HIGHLIGHTS 2021 Projection Total Population 2016 Estimate Total Population 2010 Census Total Population 2000 Census Total Population Daytime Populations Total Population 17, , ,838 14, , ,668 14, , ,714 7,813 85, ,224 12, , ,585 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 252,688 POPULATION STATISTIC WITHIN 5 MILE RADIUS 2021 Projection Total Households 2016 Estimate Total Households Average (Mean) Household Size 2010 Census Total Households 2000 Census Total Households 5,927 45,305 99,190 4,876 41,346 92,983 4,716 39,437 87,792 2,513 31,532 76,282 $112,817 INCOME STATISTIC 92,983 HOUSING STATISTIC WITHIN 5 MILE RADIUS HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES 2016 Estimate $250,000 or More 4.8 % 3.6 % 3.0% $200,000 - $249, % 2.1 % 1.8 % $150,000 - $199, % 7.2 % 5.3 % $125,000 - $149, % 6.6 % 5.3 % $100,000 - $124, % 10.5 % 8.7 % $75,000 - $99, % 14.5 % 12.8 % $50,000 - $74, % 18.4 % 18.4 % $35,000 - $49, % 11.8 % 13.0 % $25,000 - $34, % 8.4 % 9.8 % $15,000 - $24, % 8.1 % 10.3 % Under - $14, % 8.9 % 11.7 % Average Household Income $112,817 $91,670 $80,131