RARE ±36,000 SF BUILDING ON ±68,389 SF CORNER PARCEL VALUE-ADD INVESTMENT OR MIXED-USE DEVELOPMENT 6011 FOLSOM BLVD SACRAMENTO

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1 RARE ±36,000 SF BUILDING ON ±68,389 SF CORNER PARCEL VALUE-ADD INVESTMENT OR MIXED-USE DEVELOPMENT BLVD SACRAMENTO EAST SACRAMENTO NEAR SAC STATE AND US-50

2 Section One: The Property PROPERTY OVERVIEW BLVD - EAST SACRAMENTO TURTON COMMERCIAL IS PLEASED TO PRESENT A RARE OPPORTUNITY TO ACQUIRE A VALUE-ADD RETAIL/ INDUSTRIAL AND FUTURE MIXED-USE DEVELOPMENT SITE FOR SALE IN EAST SACRAMENTO 6011 Folsom Boulevard and th Street are attractive retail/industrial buildings located along one of the busiest streets in East Sacramento. The buildings, built in 1960, total approximately ± 36,000 square feet on a ± 68,389 square foot parcel. The building is currently tenanted by RC Country Hobbies, VCA All Our Pets Animal Hospital and The Ballroom of Sacramento, with vacancy totaling approximately ± 18,000 square feet. The buildings are currently 72% occupied (RC Country Hobbies, The Ballroom of Sacramento and VCA All Our Pets Animal Hospital) with tenants on short term leases that are currently generating approximately $300,000 in gross income. A new owner can either lease up current vacancy for a conservative return or re-develop the property as either a retail value-add investment or ground up development. This exciting future development site provides an outstanding location in the vibrant East Sacramento Folsom Corridor. The property naturally lends itself to a mixed-use project. The property is a short distance from California State University, Sacramento SMUD Headquarters and multiple medical institutions including UC Davis Medical Center, Mercy Hospital and Sutter Hospital. The subject property is one of the few remaining infill opportunities with meaningful proximity to Sacramento s largest university. The property is ±68,389 square feet and is prominently located along Folsom Boulevard on a hard corner. It features over 350 feet of frontage along Folsom Boulevard and 160 feet of frontage along 61st Street with three streets that serve as access points (including 60th Street). The property is conveniently located near the 65th Street Light Rail Station that serves Downtown Sacramento. The Highway 50 on-ramp is a short walk or bike ride from the property. The walking/bicycle tunnel to Sacramento State is 2,000 feet to the northeast. The property is in a prime position to take advantage of nearby institutions and commute routes. The corridor has two active infill developments including a 116 bed Hampton Inn hotel development by Jackson Properties and a mixed-use residential over retail development in addition to a retail development adjacent to the subject property. On the other side of Highway 50 from the subject property is The Foundation, a multi-family project consisting of 221 units under construction and scheduled to open Q Nearby to the east are two exciting projects that are approximately 10 years old. F65 is a successful mixed-use project featuring residential units over a popular mix of restaurants and retailers including Starbucks, Jamba Juice, Dos Coyotes and Bento Box. The Upper Eastside Lofts is a 435 bed student housing development that was intended for professional housing that was subsequently master-leased to Sacramento State for the Universityís growing student population. Sacramento State is among the largest campuses in the California State University system that enrolls 29,000 students per year on a 300-acre campus walking distance to the subject property. The subject parcel is also very close to three of Sacramentoís major medical institutions: UC Davis Medical Center, Mercy Hospital and Sutter Hospital. Lastly, the SMUD Headquarters Office Complex is in close proximity and is one of the largest employers in the area. 01

3 Section One: The Property OPERATING STATEMENT Income Current Proforma Monthly Rent Roll: 6005 Folsom $- $7, Folsom $- $7, Folsom $8, $14, Folsom $11, $9, th St $6, $7, Monthly Rental Income $27, $45, Annual Rental Income $330, $547, Vacancy Reserve - 5% $- $27, Annual Income Total $330, $520, EXPENSES Current Proforma NNN's Property Taxes $22, $66, Insurance $3, $8, Utilities $22, $48, Landscaping $2, $3, Other Maintenance $39, $50, Management Fee - 5% $16, $26, Professional Fees $1, $10, Total Estimate Expenses $108, $212, Expenses as % of Gross Income 32.82% 9.13% Expenses per SF/YR $2.71 $5.31 Net Operating Income $224, $520, STABILIZATION Capital Improvements $750, Tenant Improvements $500, Hold Costs $288, Commission $225, Stabilization Costs Total $1,763, INVESTMENT Acquisition $5,100, Stabilization $1,763, Net Operating Income $520, Cap Rate 7.58% 03

4 Section One: The Property PROPERTY INFORMATION Address Folsom Blvd th Street Number of Units 5 Number of Stories 1 + Mezzanine Approx. Lot Size(Acres) 1.57 Approx. Lot Size(SF) ± 68,389 APN Zoning C-2 Year Built 1960 N ST. FRANCIS HIGH SCHOOL CALIFORNIA STATE UNIVERSITY, SACRAMENTO THE MILL COFFEE SHOP (COMING SOON) SACTOWN UNION BREWING THE ACADEMY MIXED-USE DEVELOPMENT CJ GAS SMUD Z PIZZA TAP ROOM BEACH HUT DELI 65 EAST MIXED-USE DEVELOPMENT OFFICE DEPOT DOLCE NAILS & SPA DOS COYOTES PURELY HOT YOGA STARBUCKS GAMESTOP BENTO BOX JAMBA JUICE PITA PIT HAMPTON INN AND SUITES UPPER EAST SIDE LOFTS - STUDENT HOUSING ADDRESS OCCUPANCY SQ. FT. EXPIRATION 6005 Folsom Vacant ± 6,000 Vacant 6007 Folsom Vacant ± 6,000 Vacant 6009 Folsom Balroom ± 11,600 MTM 6011 Folsom RC Country ± 7,200 8/31/ th St VCA ± 4,780 4/30/2022 Total ± 35,580 A-AUTO SERVICES & REPAIR GIOVANNI S OLD WORLD PIZZA UNIT FEATURES Hard Corner with Prominent Identity Great Location on Folsom Blvd Five Modern Commercial Units Two Structures Renovated in 2007 Traffic Counts Established Executive Neighborhood Sacramento State Development Zone 60TH STREET HAPPY TAILS PET SANCTUARY PRICING SUMMARY PRICE $5,100,000 Price per Square Foot $ Price per AC $3,248,408 Price per LandSF $74.57 Pro Forma CAP Rate 7.58% PHOEBE A. HEARST ELEMENTARY SCHOOL FOLSOM BLVD 05

5 THE PROPERTY Section Four: Floor Plan 6409 Floor Plan E A ST SAC M A R K E T OVE RVI E W VCA HISTORICAL DATA POINTS HELP TCRE ANALYZE THE FUTURE The data TCRE has analyzed indicates that vacancy rates are falling due to continued demand for office, retail and industrial space in the East Sacramento submarket. This, in turn, causes rental rates to increase, driving pricing of commercial properties up accordingly. THE PROPERTY VACANT EAST SACRAMENTOVACANCY RATE (TRAILING 5-YEARS) EAST SACRAMENTO NET ABSORPTION (TRAILING 5-YEARS) EAST SACRAMENTO ASKING RENTAL RATE FSG (TRAILING 5-YEARS) BALLROOM N EAST SACRAMENTO ASKING TOTAL SALES VOLUME (TRAILING 5-YEARS) RC COUNTRY 07

6 Section Two: The Location EAST SAC S COMMERCIAL & DEVELOPMENT CORRIDOR 6011 Folsom Boulevard is located in the epicenter of the most thriving part of East Sacramento along the developing Folsom Boulevard corridor near 65th Street. The property sits on the east side of three incredibly dynamic and booming submarkets: Downtown, Midtown and East Sacramento. East Sacramento is Sacramento s most in-demand residential neighborhood. The median home price is more than $400 per square foot, which is more than double the Sacramento average of $190 per square foot. They are smaller, older homes, with tremendous character building in the 1930s to 1950s. Because commercial zoning and development is rare in East Sacramento, properties that are truly unique like 6011 Folsom Boulevard are tough to find, and often lease and sell very quickly. TRADER JOES MCDONALD S SAVEMART PETCO RADIO SHACK BIG O TIRES TACO BELL WELLS FARGO BASKIN ROBINS CHIPOTLE CORTI BROTHERS PHOEBE A. HEARST ELEMENTARY SCHOOL FOLSOM BLVD. SAINT FRANCIS CATHOLIC HIGH SCHOOL THE PROPERTY GIOVANNI S PIZZA ELVAS AVENUE THE MILL ACADEMY CALIFORNIA STATE UNIVERSITY, SACRAMENTO GIRL SCOUTS East Sacramento is the perfect mix of established residential neighborhoods with incredible amounts of character combined with successful locally owned business and organic youth infused goods and services, a healthy dose of carefully selected regional retailers, and an eclectic mix of high demographic occupations are embedded in a landscape of unique older buildings and mature trees. Business owners, residents and investors have flocked to East Sacramento because of its rich art, music and cultural scene to cash in on the fruitful submarket. UPPER EAST- SIDE LOFTS F65: OFFICE DEPOT STARBUCKS DOS COYOTES GAME STOP SMUD BENTO BOX 65 EAST Z PIZZA, BEACH HUT, SACTOWN UNION GROCERY STORE Q ST COMMONS STUDENT HOUSING COMPLEX CHEVRON HAMPTON INN & SUITES AVERAGE HOUSEHOLD INCOME & HOME VALUE WITHIN VARYING RADIUS: $60,262/YR $62,825/yr $64,533/yr $350K $360K $344K 1 MILE 2 MILES 3 MILES 65TH STREET TARGET HIGHWAY 50 THE CROSSING STUDENT HOUSING HOME DEPOT 09 RECENTLY COMPLETED UNDER DEVELOPMENT

7 Section Three: Permitted Uses FUTURE DEVELOPMENT OPPORTUNITY 6011 Folsom Boulevard provides the future owner with an atypical opportunity to own a property that provides significant in-place income while designing and getting approvals for a future development. The site provides exceptional hard-corner visibility and frontage along Folsom Boulevard. The property naturally lends itself to a multi-family or mixed-use project that is steps from California State University, Sacramento SMUD Headquarters and multiple medical institutions including UC Davis Medical Center, Mercy Hospital and Sutter Hospital. The subject property is one of the few remaining infill opportunities with meaningful proximity to Sacramento s largest university. Permitted Uses of Subject Property The purpose of the C-2 zone is to provide for the sale of goods; the performance of services, including repair facilities; office uses; dwellings; small wholesale stores or distributors; and limited processing and packaging. Permitted Residential Units: Dormitory *subject to special use regulations Dwelling, duplex Dwelling, multi-unit *subject to special use regulations Dwelling, single-unit Permitted Commercial and Institutional Uses: Adult entertainment business *subject to special use regulations Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center *subject to special use regulations Cinema College extension Commercial service Community market *subject to special use regulations Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Non-profit organization, food preparation for off-site consumption *limited to 6,400 square feet Office Plant nursery *Permitted if use is located ¼ mile or greater from the center of a light rail station platform; a conditional use permit is required if use is located less than ¼ mile from the center of a light rail station platform Restaurant Retail store *This use is limited to 40,000 gross square feet; if use exceeds this limitation, a conditional use permit is required School dance, music, art, martial arts School, vocational Temporary commercial building *subject to special use regulations Theater Veterinary clinic; veterinary hospital *Entire business to be conducted within a building, and no outdoor boarding of animals is allowed; a conditional use permit is required if animals are boarded outside, or entire business is not conducted within a building Wholesale store *This use is limited to 6,400 gross square feet. Use may include incidental, non-nuisance producing processing, packaging, and fabricating entirely within a building Permitted Industrial and Agricultural Uses Aquaculture *Subject to special use regulations Cannabis testing *Subject to special use regulations Community garden, private (not exceeding 3.0 acres) *Subject to special use regulations Manufacturing, service, and repair. *This use is limited to 6,400 gross square feet. Use may include incidental, non-nuisance producing processing, packaging, and fabricating entirely within a building Market garden (not exceeding 3.0 acres) *Subject to special use regulations Passenger terminal Railroad ROW *Subject to special use regulations Solar energy system, commercial (city property) *Allowed in this zone and exempt from the provisions of this title 11 12

8 Section Five: Nearby Development SACRAMENTO STATE PROPOSED ELVAS DEVELOPMENT THE MILL COFFEE SHOP THE ACADEMY ON 65TH 65 EAST DEVELOPMENT 13 14

9 TURTON KEN TURTON PRESIDENT D.R.E. LIC SCOTT KINGSTON VICE PRESIDENT D.R.E. LIC JOHN MUDGETT SENIOR DIRECTOR D.R.E. LIC L STREET, STE 200, SACRAMENTO, CA TURTONCOM.COM 2018 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of theproperty for their needs. Logos and/or pictures are displayed for visual purposes only and are the property of their respective owners.