Cash-on-Cash Return of 16.05%

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1 Investment Opportunity Offering Memorandum Cash-on-Cash Return of 16.05% Pavilions Shopping Center Southeast Corner of Dobson Road & Guadalupe Road, Mesa, AZ $15,950,000 - ($123.07/SF) 98% Occupied 129,601 SF For more information, please contact exclusive listing agent: Romano Real Estate Corporation 3900 E Via Palomita Tucson, AZ Main Fax David Carroll- Commercial Brokerage Ext david@romanorealestate.com John G. Yarborough- Commercial Brokerage Ext. 117 john@romanorealestate.com The information contained herein has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assump- tions or estimates used herein are for example purposes only and do not represent the current of future performance of the Property. You should conduct an independent investigation of all pertinent property information. We bear no liability for any errors, inaccuracies, or omissions. Contact Brokers For Financing Assumptions.

2 Investment Overview Investment Overview Asking Price $15,950,000 Gross Leasable Area 129,601 Square Feet Percent Leased 97.7% Year Built 1986 Lot Size 453,242 Square Feet (~10.41 Acres) Maricopa County Parcel Numbers V and W 2018 CAP Rate 7.60% - based on current occupancy 2019 CAP Rate 8.50% - based on current occupancy 2020 CAP Rate 8.85% - based on current occupancy DESCRIPTION: The Pavilions Shopping Center is a mixed-use neighborhood retail center built in 1986 and consisting of approximately 129,601 square feet of rentable space situated on acres of land. LOCATION: Located at W. Guadalupe Road (Maricopa County tax parcel numbers V and W), the Pavilions Shopping Center is located in the greater Phoenix metropolitan area. In 2015 the Phoenix metropolitan area surpassed 4.5 million people, making it the 12 th largest metropolitan area in the country. Specifically, the Pavilions Shopping Center is located in Mesa, Arizona. Mesa is a rapid-growth community, with an average annual population growth of 1.09% since 2010, which is projected to increase to 1.21% annually from 2016 to Mesa was ranked as the 38 th largest city in the United States in 2015 with a population of 471,825. Mesa is located approximately 15 miles from central Phoenix, and 106 miles from central Tucson. The property is located at a signalized intersection at the southeast corner of Guadalupe Road, and Dobson Road, approximately 1 mile east of Loop 101 and 2 miles South of US Interstate 60. The property offers 3 monument signs, is well parked, & has multiple points of access on both Guadalupe and Dobson. TRADE ADEA: The immediate area surrounding the property is an established, predominately single family residential neighborhood with various commercial and retail establishments within the immediate vicinity. Additional commercial activity is concentrated along major thoroughfares and intersections with residential housing along interior roadways. TENANT MIX: The center has a variety of tenants that includes five quality restaurants (including Native Grill & Wings, La Famiglia Pizza & Pasta, Barbeque House, and Pink Pepper Thai Cuisine), an event center, fitness & dance uses (including Anytime Fitness), furniture uses, both medical and office uses (including Banner Urgent Care), fashion boutiques, and several other complimentary uses. LEASE TYPES: The center has both Modified Gross and NNN lease formats. However, for purposes of this Offering Memorandum, all Modified Gross leases have been converted to the NNN equivalent. ZONING: The property is zoned C-2, Limited Commercial District, under the jurisdiction of the City of Mesa. TRAFFIC COUNTS: Guadalupe Road: 23,300 vehicles per day Dobson Road: 26,700 vehicles per day (Source: 2016 Mesa Transportation Department) 2016 DEMOGRAPHIC SUMMARY: (Source: Esri) 1 mile 3 mile 5 mile Population 16, , ,257 Median Age 36.6 yrs 35.6 yrs 31.5 yrs Total Households 6,457 54, ,534 Median Household Income $57,153 $53,338 $50,395 Average Household Income $71,187 $68,335 $66,555 RECENT LEASING ACTIVITY AND UPSIDE POTENTIAL: Since the beginning of 2016, nearly 37,000 square feet has been leased in the Center taking the occupancy level up to 98%. Many of the leases are at well below market rents (e.g. Proclaim Church currently only paying $1.67/sf and Tillie s Attic currently only paying $1.99/SF), making this an excellent opportunity for the Value Added investor.

3 Aerial Aerial MESA COMMUNITY MUNI COLLEGE LEGE FIESTA MALL L

4 Site Barbeque House Site EVR Music School Beauty School My Granny s Banana Pudding Inten onal Foods S lwell Piano & 115 Weekend Mission Terri s Consign & Design

5 Roster/Rent Roll Tenant Address Suite # GLA % of GLA Start Date Expiration Date Option to Renew Tenant Roster/Rent Roll Sugarlips Cakery 1837 W. Guadulupe Rd , % 1/2/2014 5/31/2019 one 5 year terms at FMV Intentional Foods 1837 W. Guadulupe Rd , % 10/1/2017 4/30/2021 two 3 year terms - continue 50 /sf bumps Proclaim Church 1837 W. Guadulupe Rd , % 12/6/2012 7/31/2018 Weekend Missions 1837 W. Guadulupe Rd , % 6/21/2016 8/31/2019 None Attic Needlework & Collectibles 1837 W. Guadulupe Rd , % 4/9/2013 5/31/2018 Terri's Consign & Design 1837 W. Guadulupe Rd. 110 &113 12, % 6/1/2017 9/30/2022 State Farm Insurance 1837 W. Guadulupe Rd , % 4/1/ /31/2014 Renewal Pending Anytime Fitness 1837 W. Guadulupe Rd , % 4/4/ /31/2022 one 5 year term at $6,809.04/mo fi xed Don Villa Beauty School 1837 W. Guadulupe Rd , % 2/1/2017 4/30/2022 one 5 year term - continue 4% bumps Native Grill & Wings 1837 W. Guadulupe Rd , % 4/1/ /30/2022 one 5 year term - 3% bumps La Famiglia Pizza and Pasta 1859 W. Guadulupe Rd , % 2/20/2014 6/30/2024 None Off the Avenue 1859 W. Guadulupe Rd , % 10/1/2016 9/30/2021 one 5 year term - fi xed rents $10.75/sf Dance F/X Studios 1859 W. Guadulupe Rd , % 2/1/2006 3/31/2020 one 5 year term - fi xed rents $15/sf Invitations AZ & Printing 1859 W. Guadulupe Rd , % 6/22/2015 8/31/2020 None Voila Nail Boutique 1859 W. Guadulupe Rd % 1/1/2015 6/30/2020 None Villa Tuscana 1915 W. Guadulupe Rd. 15, % 7/1/ /31/2022 None Cornish Pastry 1941 W. Guadulupe Rd , % 8/1/2008 7/31/2021 one 5 year term - fi xed rents $16.00/sf Bakers Smoke Shop 1941 W. Guadulupe Rd , % 6/1/2012 9/30/2017 Renewal Pending Pink Pepper Thai Cuisine 1941 W. Guadulupe Rd , % 1/1/2005 4/30/2022 None Create Art Center 1941 W. Guadulupe Rd , % 9/1/ /31/2019 None Strength Training 1941 W. Guadulupe Rd , % 5/1/2004 8/31/2014 Renewal Pending Vacant 1941 W. Guadulupe Rd , % Stilwell Piano 1941 W. Guadulupe Rd. 111 & , % 9/14/2015 4/30/2025 None Chirocare Plus 1941 W. Guadulupe Rd , % 6/1/ /31/2020 None My Granny's Banana Pudding 1941 W. Guadulupe Rd , % 1/13/2017 3/31/2019 one 3 year term Vacant 1941 W. Guadulupe Rd , % Shaun Gardner, DDS 1941 W. Guadulupe Rd , % 5/1/2007 4/30/2012 Renewal Pending La Bella Boutique 1941 W. Guadulupe Rd , % 5/1/ /31/2016 Renewal Pending Banner Urgent Care 1955 W. Guadulupe Rd , % 7/1/2013 6/30/2023 one 5 year terms at 95% of FMV East Valley Rock School of Music 1955 W. Guadulupe Rd , % 7/1/2017 4/30/2022 None Great Clips 1955 W. Guadulupe Rd , % 2/1/2004 1/31/2019 one 5 year term - continue 50 /sf bumps BBQ House 1955 W. Guadulupe Rd , % 2/1/ /30/2027 Totals 129, %

6 Rental Projections Rental Projections Tenant 2018 Totals 2018 Avg. Rent/sf 2019 Totals 2019 Avg. Rent/sf 2020 Totals 2020 Avg. Rent/sf Sugarlips Cakery $18, $13.34 $18, $13.51 $18, $13.75 Intentional Foods $10, $11.00 $15, $11.33 $16, $11.83 Proclaim Church $12, $1.67 $54, $7.00 $55, $7.21 Weekend Missions $27, $10.74 $27, $10.71 $28, $11.03 Attic Needlework & Collectibles $36, $8.06 $37, $8.31 $38, $8.56 Terri's Consign & Design $47, $3.77 $74, $5.93 $76, $6.11 State Farm Insurance $7, $5.16 $17, $12.00 $18, $12.36 Anytime Fitness $70, $13.50 $70, $13.50 $72, $14.00 Don Villa Beauty School $41, $8.21 $43, $8.54 $45, $8.88 Native Grill & Wings $170, $22.08 $178, $23.08 $185, $24.08 La Famiglia Pizza and Pasta $42, $10.50 $45, $11.38 $48, $12.00 Off the Avenue $17, $10.00 $17, $10.06 $17, $10.31 Dance F/X Studios $31, $7.26 $58, $13.38 $64, $14.63 Invitations AZ & Printing $14, $6.67 $15, $7.17 $16, $7.58 Voila Nail Boutique $11, $14.00 $11, $14.42 $11, $14.85 Villa Tuscana $133, $8.85 $133, $8.85 $133, $8.85 Cornish Pastry $78, $14.85 $79, $15.10 $80, $15.35 Bakers Smoke Shop $17, $10.10 $17, $10.40 $18, $10.71 Pink Pepper Thai Cuisine $36, $9.92 $38, $10.63 $41, $11.28 Create Art Center $8, $6.81 $8, $7.00 $14, $12.00 Strength Training $57, $12.71 $59, $13.09 $61, $13.49 Vacant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Stilwell Piano $77, $6.00 $79, $6.17 $82, $6.42 Chirocare Plus $9, $9.67 $10, $10.43 $11, $11.20 My Granny's Banana Pudding $10, $8.56 $11, $9.71 $12, $10.01 Vacant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Shaun Gardner, DDS $39, $23.19 $40, $23.88 $41, $24.60 La Bella Boutique $21, $9.30 $21, $9.58 $22, $9.87 Banner Urgent Care $58, $13.00 $60, $13.50 $63, $14.00 East Valley Rock School of $17, $8.33 $18, $8.83 $19, $9.38 Music Great Clips $24, $13.96 $25, $14.46 $26, $14.96 BBQ House $75, $15.00 $75, $15.08 $80, $16.08 Totals $1,223, $9.44 $1,367, $10.55 $1,424, $10.99

7 Pro-Forma Sale Price $15,950, $15,950, $15,950, Sale Price per Square Foot: $ $ $ Pro-Forma Gross Rental Income: $1,223, $1,367, $1,424, Less Owner Paid NNN Expenses -$11, $12, $12, (Vacant Spaces): Scheduled NOI: $1,212, $1,355, $1,411, Cap Rates: 7.60% 8.50% 8.85% Notes & Assumptions: The following leases are Modifi ed Gross leases (NNN Charges included in Base Rent) but have been converted to NNN leases for all projections used in this Offering Memorandum using 2018 NNN Budget sent to tenants in March of 2018 with NNN reconciliations for 2017: Terri s Consign & Design Proclaim Church Attic Needlework & Collectibles Dance F/X Studios Bakers Smoke Shop Pink Pepper Chirocare Plus La Bella Boutique State Farm Insurance NNN Expenses are anticiptaed to increase by 3% annually No caps have been factored into NNN Charges Contact listing agents for rental rate assumptions on renewals.

8 Expense Budget 2018 Operating Expense Budget 2018 Estimated NNN Expenses CAM Expenses: Budget From CAM Reconciliations Decorating/Promo $3, $0.03 Electrical $ $0.01 Exterminating $3, $0.02 Fire/Safety/Sprinkler (monitoring/phonelines) $/sf $2, $0.02 Misc. Supplies $ $0.01 Landscaping -Contract $34, $0.27 Lighting-Exterior $12, $0.10 Locksmith $ $0.00 Painting-Exterior $5, $0.04 In House-CAM Cleaning/Maint-Walkway $19, $0.15 Management Fee $41, $0.32 Parking Lot Repair $3, $0.03 Parking Lot Sweeping $6, $0.05 Plants/Fert/Supplies $8, $0.06 Plumbing $3, $0.03 Plumbing (Common Area) $2, $0.02 R&M Ext/Door/Glass $14, $0.11 Roof $6, $0.05 Signage/Directory $ $0.01 Irrigation R & M $2, $0.02 Walkway Cleaning/Repair $8, $0.07 Vandalism $1, $0.01 Electric - Exterior $18, $0.15 Utilities - Water (Building) $61, $0.47 Rubbish Pick Up $17, $0.14 Paving-Crack Seal & coat & stripe $6, $0.05 Paint/Repair rotted wood around windows/ store fronts ( ) $ $0.00 Total CAM Charges: $288, $2.23 Insurance - Property/Liability: $33, $0.25 Real Estate Taxes: $175, $1.35 Total NNN Expenses: $496, $3.83

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