$1,050,000 MIDTOWN VICTORIAN BEACH HUT DELI OFFERING MEMORANDUM 2406 J STREET SACRAMENTO, CA INVESTMENT HIGHLIGHTS.

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1 MIDTOWN VICTORIAN BEACH HUT DELI OFFERING MEMORANDUM 2406 J STREET SACRAMENTO, CA $1,050,000 INVESTMENT HIGHLIGHTS z Rare opportunity to acquire an ideally located Victorian in midtown Sacramento z 1 mile population of 25,053 people z Investment or owner / user opportunity Offered Exclusively by: Lic. No z Beach Hut Deli has been successfully operating at this location since 2004 z Parcel size of approximately 0.15 acres

2 MIDTOWN VICTORIAN BEACH HUT DELI INVESTMENT OVERVIEW CORE Commercial is pleased to present the opportunity for qualified buyers to acquire this Victorian building located at 2406 J Street in the thriving and vibrant midtown Sacramento trade area. The subject property is comprised of two floors totaling 2,400 SF and is situated on a.15 acre lot at the southeast quadrant of 24th and J Street. Beach Hut Deli has been successfully operating in the ground floor portion of the building since 2004 with a lease expiration set for February Beach Hut also has access to front and rear patios for their use at the property. The second floor of the Victorian is currently vacant and offers a multitude of opportunities for either an owner user to occupy or an investor to lease. Contact Patrick for a tour of the 2nd floor space and please do not disturb Beach Hut Deli. The subject property has excellent exposure along J Street and benefits from average daily traffic counts of approximately 18,000 vehicles per day. The Victorian is located immediately adjacent to Relles Florist, just across the street from Rick s Dessert Diner and two properties west of Chicago Fire. Street parking is available in front of the subject property as well as a parking lot which is conveniently located immediately adjacent to the property. The property is located 1 block west of the proposed Yamanee site, which is a 15 story, mixed used condominium project. The ground floor of the Yamanee is proposed for commercial storefronts while the residential component is proposed at 134 units. The estimated 1 mile population surrounding the property equates to approximately 25,000 people while the estimated daytime employee population is approximately 42,000 people. Price: $1,050,000 Property Address: 2406 J Street, Sacramento, CA Building Size: 2,400 SF Ground Floor (Beach Hut Deli): 1,150 SF + Outdoor patio area Second Floor (Vacant): 1,250 SF Beach Hut Deli Lease Details: Lease Commencement Date: November 16,2004 Lease Expiration: February 29, 2020 Options: None Monthly Base Rent: $3, NNN Annual Base Rent : $36, NNN Increases: March 1, 2018 increases to $3, per month March 1, 2019 increases to $3, per month Additional Rent: CAM Charges: Parcel Size: APN: Year Built: Traffic Counts: Zoning: Tenant pays additional $400 per month for use of patio area. Tenant is also responsible for all repairs and maintenance required to the patio area. In addition to the monthly Base Rent, Tenant shall pay monthly estimated CAM expenses applicable to the Premises, representing 50% of the actual costs. The actual amount is to be reconciled annually acres (6,530 SF) (Sacramento County) 1894 (per public records) J Street: 16,000 VPD 24th Street: 2,000 VPD C-2-MC

3 MIDTOWN VICTORIAN BEACH HUT DELI FINANCIAL ANALYSIS INCOME and EXPENSE Valuation Summary In-Place Proforma Min. Rent, Leased 41,558 41,558 Min Rent, Vacancy 30,000 1 NNN Reimbursment 9,200 9,200 2 Effective Gross Income $50,758 $80,758 Expenses Utilities (Est.) 1,357 1,357 3 Property Taxes (Est.) 14,322 14,322 4 Insurance (Est.) 2,721 2,721 5 Repairs & Maintenance (Est.) Total Expenses (19,240) (19,240) Net Operating Income $31,518 $61,518 Footnotes 1 Vacant 2nd Floor space leased at $2,500 per month Gross 2 Beach Hut Deli is responsible for 50% of Taxes, Insurance and Utility Costs Utility Costs Inflated at 3% 4 Property Taxes reassessed at 1.364% of Asking Price 5 Current Ownership's Actual 2016 Cost 6 Repairs and Maintenance Calculated at $0.35 PSF

4 MIDTOWN VICTORIAN BEACH HUT DELI LOCATION ABOUT BEACH HUT DELI In 1981, at the age of 19, Troy Feist started what is now known as the Beach Hut Deli in Granite Bay, near Folsom Lake in Northern California. His vision included the creation of a sandwich, stuffed full of top-quality meats, cheeses and fresh produce. Being a lover of the beach, Troy created a deli with a beach theme. The tables are surfboards and the entire deli is adorned with beach and surf memorabilia. The beach theme has evolved into a beach culture yielding, among other things, a wall of infamy with photos of happy patrons and our Beach Hut Staff having fun and sporting their beach attire. With packed tables and lines out the door, Troy decided to franchise Beach Hut Deli. CURRENTLY HAVE OVER 40 LOCATIONS IN CALIFORNIA, NEVADA, AND OREGON. At Beach Hut Deli the sandwiches are nothing like anyone has ever experienced. Every ingredient is top quality and completely fresh. Their menu is also unique. But they give more to their customers than great sandwiches. They give their customers a fun, relaxing homeaway-from-home environment where they can hang out and chill. They listen to great music, watch local sporting events, socialize, and have camaraderie. THE BEACH HUT MISSION STATEMENT In the past several years, Beach Hut Deli has grown from three stores to over 40 stores in California, Nevada and Oregon. Our growth has been fueled by our customers desire for the freshest high quality gourmet sandwiches served by our attentive and friendly staff, all in a resort like atmosphere. Beach Hut Deli is like a mini vacation and a sandwich experience like no other. With stores now open in the Central Coast of California, and Southern California, Beach Hut Deli is on its way to becoming the leader in the gourmet sandwich arena. DEMOGRAPHICS 1 Mile 2 Miles Estimated 2010 Population 25,053 67,697 Daytime Pop. (Employees) 42, ,281 Median Household Income $53,084 $62,634 Average Household Income $70,415 $80,708 Median Age

5 MIDTOWN VICTORIAN BEACH HUT DELI INTERIOR PHOTOS - SECOND FLOOR (VACANT)

6 MIDTOWN VICTORIAN BEACH HUT DELI LOCATION 1 mile GROCERY OUTLET 24 TH STREET J STREET TH STREET P STREET R STREET 28 TH STREET ALHAMBRA 6 34 TH STREET MAJOR EMPLOYERS BROADWAY R STREET STOCKTON BLVD LIGHT RAIL Sutter General 2. UCD Med Offices 3. Mercy Med Offices 4. CA DoT 5. US Healthworks 6. Alhambra Athletic 7. Mercy General 8. Sutter Memorial 9. UCD Med Center 10. Shriners Hosp. 11. UCD Oncology 12. UCD Prenatal 13. UCD Mind Center TRANSPORTATION Light Rail Station COPYRIGHT ALL RIGHTS RESERVED. CORE Commercial ( Agent ), CA DRE Lic , has presented this brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Prospective purchasers and tenants should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Property is being offered on an as-is, where-is and with all faults basis unless otherwise specified. Owner reserves the right to withdraw this offering at any time, without further notice, with or without cause.