Las Palmas Shopping Center East Florence Avenue Huntington Park, CA 90255

Transcription

1 Las Palmas Shopping Center East Florence Avenue Huntington Park, CA

2 Table of Contents Exclusively Listed BY: ALEX KOZAKOV First Vice President Lic PATRICK WADE First Vice President Lic HEATHER GARREtT Client Services Specialist Lic MAXX COHEN Associate Lic Eric Roy Associate Lic Investment Summary Tenant Overview Financial Overview Rent roll pricing Demographics Location Overview Disclaimer This valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. Neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction. 2

3 N DAYTIME EMPLOYMENT BASE WITHIN 3 MILES 109,973 WITHIN 5 MILES 317,526 POPULATION (2014 EST.) WITHIN 3 MILES 415,024 WITHIN 5 MILES 1,075,544 3 Source: Nielsen

4 INVESTMENT SUMMARY Las Palmas Shopping Center E Florence Avenue Huntington Park, CA TAX MAP PRICE: $11,295,000 YEAR 1 CAP RATE: 5.70% YEAR 1 NOI: $643,480 BUILDING SIZE: 27,876 SF PRICE/SF: $ LAND AREA: 99,100 SF PERCENT LEASED: 100% ZONING: HPCG YEAR BUILT: 2000 PARKING: 112 Spaces PARKING RATIO 4.02/1,000 RSF MAJOR TENANTS: McDonald s, Papa John s Pizza, Sprint, AutoZone, Wells Fargo and Mother s Nutritional Center 4

5 Investment Summary HIGHLIGHTS Stabilized Los Angeles Shopping Center With Credit Tenants 100% Leased with Almost 83% of GLA Occupied by National and Regional Tenants Newer Construction and Professionally Managed: Low Deferred Maintenance Best-In-Class Tenants Including: McDonald s, AutoZone, Sprint, Wells Fargo and Papa John s Pizza Year One Cap Rate of 5.7% with Scheduled Rent Increases Delivered Free & Clear of Debt with the Ability to Source New Financing at Today s Historically Low Interest Rates McDonald s is a Free-Standing Drive-Thru with Almost Twelve Years Remaining on the Lease; Potential to Parcelize and Spin Off to Lower Basis All Tenants on Triple-Net Leases with Rental Increases and Staggered Lease Expirations Strategic In-Fill Retail Location With High Traffic One of the Densest Populations in All of Southern California: Over 1 Million People in a 5-Mile Radius Over 84% of all Households in Huntington Park are Occupied by Families with an Average Household Size of 4.2 People High Traffic Location at a Signalized Intersection with More than 48,180 Cars per Day Desirable Huntington Park Retail Center with Good Access and Parking Over 225 Feet of Frontage Along Florence Avenue (More than 32,000 Cars/Day) Close Proximity to Numerous Retailers, Schools and Places of Employment Avg HH Income: $44,871 (1-mile) 2014 Population: 1,075,544 (5-mile) Traffic Counts: 48,180 Florence ave. & Mountain VIew Ave. 5

6 Executive Summary CBRE is pleased to offer for sale the Las Palmas Shopping Center- an established McDonald s-anchored retail center in Huntington Park, CA. Las Palmas offers investors a 100%-leased shopping center consisting of 27,876 sq. ft. of GLA on nearly one acre of land. Located in one of the densest locations in all of Southern California, with over one million people in a five mile radius. Las Palmas offers strong in-place returns plus upside. Delivered free and clear of debt, investors have the opportunity to obtain new debt at today s historically low rates. In addition, the property is over 83% occupied by national and regional tenants, including McDonald s, Sprint, Wells Fargo, Papa John s Pizza and Autozone. The investment offers ease of management, with all tenants on triple-net leases with an average remaining lease term of over six years. There is also potential upside through dividing the freestanding McDonald s into a separate parcel in order to lower an investor s basis. The Las Palmas property is located at the signalized intersection of Florence Avenue and Mountain View Avenue (more than 48,000 cars per day). The center has great ingress and egress from three streets and benefits from the high foot traffic and bus-stop fronting the property along Florence Avenue. Huntington Park is a growing community that benefits from excellent demographics due to its proximity to major job centers including Downtown Los Angeles, Vernon and Commerce. It serves as a major retail area for residents of southeastern Los Angeles County, including the neighboring communities of Bell, South Gate and Downey. 6

7 DATE: SITE PLAN SPRINT ,087sf DOLLAR BARGAIN ,909sf KALAI & SADIGHIM DENTAL CORP ,469sf KA SUP KIM DBA WATERIA ,470sf TOTAL PARKING PROVIDED: 112 SPACES PARKING RATIO: 4/1,000 LAS P PRIME/CRDF 2911 FL HUNTING MOTHER'S NUTRIONAL CENTER ,556sf AUTOZONE 2903-A 6,350sf DJ'S YOGURT ,135sf AVAILABLE ,472 sf PJ'S PIZZA, INC ,468sf Prospera Group ,404sf WELLS FARGO BANK ATM MONUMENT PYLON MCDONALD'S USA, INC ,928sf AVAIL Primestor Development, Inc. 201 S. Figueroa Street, suite 300 Los Angeles, CA Tel: Fax: M:\2911 Florence (Las Palmas)\_Primestor\2014\_base files\2911 SITE\07-Las PalmasHuntington Park, Ca.dwg, 6/12/2014 2:31:28 PM, DWG To PDF.pc3, PRIMESTOR DEVELOPMENT, INC. YA SITE PLAN DISCLAIMER: THIS PLAN IS PROVIDED SUBJECT TO E WITHOUT NOTICE. THE INFORMATION, TABULATIONS SET FORTH IN THIS PLA BELEIVED TO BE RELIABLE. HOWEVER INACCURATE. NO REPRESENTATION O ACCURACY OR ADEQUACY REGARDIN THE PROJECT, PROPERTY MANAGER, DIRECTORS, OFFICERS, EMPLOYEES A SHALL HAVE ANY LIABILITY FOR SUCH INACCURACIES. ANY PERSON OR ENTI OWN INDEPENDENT INVESTIGATION O 7

8 N Beverly Hills University of Southern California Downtown Los Angeles DAYTIME EMPLOYMENT BASE WITHIN 3 MILES 109,973 WITHIN 5 MILES 317,526 POPULATION (2014 EST.) WITHIN 3 MILES 415,024 WITHIN 5 MILES 1,075,544 8 Source: Nielsen

9 Financial Overview Executive Summary PROPERTY DESCRIPTION Property Type Retail Size of Improvements 27,876 SF Property Name Las Palmas Shopping Center Current Leased as of 3/1/15 100% Property Address Florence Blvd., Huntington Park Projected Leased as of 5/1/15 100% ACQUISITION AND RESIDUAL SUMMARY Purchase Price as of May 1, 2015 $405 PSF $11,295,000 Year 1 Year 2 Year 3 Capitalization Rate 5.70% 5.94% 6.07% Cash Return 5.66% 5.77% 6.03% Leveraged Cash Return 8.12% 8.42% 6.14% 3-Year 5-Year 7-Year Average Capitalization Rate 5.90% 6.18% 6.55% Average Cash Return 5.82% 5.88% 6.13% Average Leveraged Cash Return 7.56% 6.92% 7.29% LEVERAGE SUMMARY [1] Loan Initial Loan Funding (as of May-15) $7,341,750 Loan-To-Value Ratio (Initial Funding) 65.00% Funding Date May-15 Maturity Date Apr-25 Remaining Loan Term Analysis 10.0 Years Amortization Period 30 Years Initial Interest Only Period (If Any) 24 Months Interest Rate 4.25% Loan Constant 5.90% Origination Fee on Initial Loan Funding 1.00% Initial Debt Yield 8.76% Debt Service Coverage Ratio (NOI) 1.48x Debt Service Coverage Ratio (CF) 1.47x Net Residual Value as of April 30, 2025 $14,436,000 Net Residual Per Square Foot $518 Residual Capitalization Rate 6.50% Residual Cost of Sale 3.00% Purchase Price as of May 1, 2015 $11,295,000 Total Initial Loan Principal ($7,341,750) Total Initial Loan Fees $73,418 Holdbacks and Escrows 0 Initial Equity $4,026,668 ALL CASH IRR 8.32% LEVERAGED IRR 13.49% [1] Leveraged Analysis is based on financing that a particular investor may or may not be able to obtain and is subject to change. Please contact Shaun Moothart at or shaun.moothart@cbre.com for details. 9

10 Financial Overview SUMMARY OF FINANCIAL ASSUMPTIONS GLOBAL ANALYSIS PERIOD Commencement Date May 1, 2015 End Date April 30, 2025 Term 10 Years AREA MEASURES Building Square Feet (NRSF) 27,876 SF GROWTH RATES Consumer Price Index (CPI) 3.00% Other Income Growth Rate 3.00% Operating Expenses 3.00% Real Estate Taxes 2.00% Rent Growth [1] CY % CY % CY % CY % CY % CY % CY % CY % CY % CY % VACANT SPACE LEASING OCCUPANCY AND ABSORPTION Projected Vacant at 5/1/15 0 SF Currently Vacant as of 3/1/15 0 SF Percentage Vacant as of 3/1/ % EXPENSES OPERATING EXPENSE SOURCE 2015 Forecast MANAGEMENT FEE (% of EGR) 4.00% REAL ESTATE TAXES REASSESSED Yes [3] Millage Rate % Special Assessments $9,468 SECOND GENERATION LEASING ATM RETAIL RETENTION RATIO 75% 70% FINANCIAL TERMS 2015 Monthly Rent $3.88 PSF See Rent Roll Rent Adjustment 3.00% Annually 3.00% Annually Lease Term 5 Years 5 Years Expense Reimb. Type None NNN + 10% AF TENANTING COSTS Rent Abatements New 0 Month(s) 3 Month(s) Renewal 0 Month(s) 0 Month(s) Weighted Average 0 Month(s) 0.90 Month(s) Tenant Improvements ($/NRSF) New $0.00 PSF $15.00 PSF Renewal $0.00 PSF $0.00 PSF Weighted Average $0.00 PSF 4.50 PSF Commissions New 6.00% 6.00% Renewal 3.00% 3.00% Weighted Average 3.75% 3.90% General Vacancy Loss 5.00% [2] Capital Reserves (CY 2015 Value) $0.15 PSF Downtime New 6 Month(s) 6 Month(s) Weighted Average 2 Month(s) 2 Month(s) All market rates are started on calendar-year basis. [1] Rent Growth projections are based upon CBRE Econometric Advisors 2014 Q3 Retail forecast for East Los Angeles through CY 2019, with 3% annual increases modeled thereafter. [2] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime and fixturing downtime. The following tenants are excluded from this loss factor for current lease terms only: Autozone and McDonald s. [3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of % plus special assessments of $9,

11 Financial Overview YEAR 1 ANALYSIS In-Place NOI May-15 to Apr-16 $ PSF Size Of Improvements 27,879 SF REVENUES Scheduled Base Rent Gross Potential Rent $693,935 $24.89 Absorption & Turnover Vacancy Base Rent Abatements Total Scheduled Base Rent $693,935 $24.89 Expense Reimbursements $268,201 $9.62 TOTAL GROSS REVENUE $962,136 [1] $34.51 Gross Vacancy Loss ($28,010) ($1.00) EFFECTIVE GROSS REVENUE $934,126 $33.51 OPERATING EXPENSES Cleaning ($10,936) ($0.39) Repairs & Maintenance ($33,671) ($1.21) Utilities ($20,136) ($0.72) Roads & Grounds ($9,883) ($0.35) Security ($2,326) ($0.08) Management Fee ($28,024) ($1.01) Insurance ($16,563) ($0.59) Real Estate Taxes ($169,107) ($6.07) TOTAL OPERATING EXPENSES ($290,646) [2] ($10.43) NET OPERATING INCOME $643,480 $23.08 Capitalization Rate 5.70% PURCHASE PRICE AS OF MAY 1, 2015 $11,295,000 $ In-Place Occupancy (At Start of Analysis With No Vacant Lease-Up) % Average Occupancy (Includes Vacant Lease-Up and Rollover) - [1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements from May-15 to Apr-16 (less a 5.00% General Vacancy Loss). In-Place NOI does not include vacant lease-up revenue or downtime due to near-term expectations, but does include future rent increases for existing tenants. [2] Real Estate Taxes are reassessed based on the sales price. 11

12 Financial Overview CASH FLOW PROJECTIONS Fiscal Year Ending - April Physical Occupancy 99.12% 100% 100% 95.59% 96.68% 94.29% 99.12% 100% 97.25% 95.46% 95.75% Overall Economic Occupancy [1] 97.09% 96.82% 97.11% 94.92% 96.02% 93.27% 95.54% 95.83% 95.36% 94.06% 95.05% Weighted Average Rent $2.33 $2.47 $2.62 $2.76 $2.87 $2.96 $3.05 $3.04 $3.10 $3.13 $3.24 Weighted Average In-Place Rent [2] $2.08 $2.17 $2.22 $2.36 $2.55 $2.68 $2.95 $3.04 $3.10 $3.13 $3.24 Total Operating Expenses PSF Per YR $10.43 $10.68 $10.92 $11.19 $11.50 $11.76 $12.12 $12.41 $12.68 $12.95 $13.27 REVENUES FY 2016-$/SF/MO [3] Scheduled Base Rent Gross Potential Rent $2.08 $695,973 $729,027 $741,645 $809,715 $863,435 $925,748 $989,211 $1,016,941 $1,042,477 $1,068,997 $1,094,157 Absorption & Turnover Vacancy ($0.02) ($6,974) 0 0 ($39,158) ($25,664) ($54,587) ($8,720) 0 ($27,563) ($42,870) ($46,337) Base Rent Abatements 0 0 ($3,138) 0 ($15,769) ($11,496) ($26,468) ($3,924) 0 ($6,439) ($25,256) ($11,019) Total Scheduled Base Rent $2.06 $688,999 $725,889 $741,645 $754,788 $826,275 $844,693 $976,567 $1,016,941 $1,008,475 $1,000,871 $1,036,801 Expense Reimbursements $0.79 $265,722 $271,403 $277,597 $270,687 $280,976 $277,946 $295,015 $304,567 $302,504 $303,783 $312,751 TOTAL GROSS REVENUE $2.85 $954,721 $997,292 $1,019,242 $1,025,475 $1,107,251 41,122,639 $1,271,581 $1,321,508 $1,310,979 $1,304,654 $1,349,552 General Vacancy Loss ($0.06) ($21,014) ($28,695) ($29,501) 0 ($8,418) 0 ($44,577) ($55,107) ($28,351) ($13,447) ($12,351) EFFECTIVE GROSS REVENUE $2.79 $933,707 $968,597 $989,741 $1,025,475 $1,098,833 $1,122,639 $1,227,005 $1,266,401 $1,282,628 $1,291,207 $1,337,201 OPERATING EXPENSES Cleaning ($0.03) ($10,936) ($11,263) ($11,601) ($11,949) ($12,308) ($12,678) ($13,058) ($13,449) ($13,853) ($14,268) ($14,697) Repairs & Maintenance ($0.10) ($33,671) ($34,682) ($35,723) ($36,796) ($37,899) ($39,036) ($40,207) ($41,413) ($42,655) ($43,935) ($45,254) Utilities ($0.06) ($20,136) ($20,741) ($21,363) ($22,003) ($22,664) ($23,343) ($24,044) ($24,765) ($25,507) ($26,273) ($27,061) Roads & Grounds ($0.03) ($9,883) ($10,179) ($10,485) ($10,800) ($11,124) ($11,457) ($11,800) ($12,154) ($12,520) ($12,895) ($13,281) Security ($0.01) ($2,326) ($2,396) ($2,468) ($2,542) ($2,618) ($2,697) ($2,777) ($2,861) ($2,947) ($3,035) ($3,126) Management Fee ($0.08) ($28,011) ($29,058) ($29,692) ($30,764) ($32,965) ($33,679) ($36,810) ($37,992) ($38,479) ($38,736) ($40,116) Insurance ($0.05) ($16,563) ($17,060) ($17,572) ($18,099) ($18,642) ($19,201) ($19,778) ($20,370) ($20,982) ($21,611) ($22,260) Real Estate Taxes ($0.51) ($169,107) ($172,300) ($175,557) ($178,878) ($182,267) ($185,723) ($189,248) ($192,843) ($196,511) ($200,252) ($204,067) TOTAL OPERATING EXPENSES ($0.87) ($290,633) ($297,679) ($304,461) ($311,831) ($320,487) ($327,814) ($337,722) ($345,847) ($353,454) ($361,005) ($369,862) NET OPERATING INCOME $1.92 $643,074 $670,918 $685,280 $713,644 $778,346 $794,825 $889,283 $920,554 $929,174 $930,202 $967,339 CAPITAL COSTS Tenant Improvements 0 0 ($6,809) 0 ($33,269) ($28,090) ($54,674) ($7,893) 0 ($14,570) ($56,560) ($23,828) Leasing Commissions 0 0 ($8,542) 0 ($42,922) ($31,288) ($72,039) ($10,680) 0 ($17,524) ($68,740) ($29,992) Capital Reserves (0.01) ($4,223) ($4,350) ($4,480) ($4,615) ($4,753) ($4,896) ($5,043) ($5,194) ($5,350) ($5,510) ($5,676) TOTAL CAPITAL COSTS (0.01) ($4,223) ($19,701) ($4,480) ($80,806) ($64,131) ($131,609) ($23,616) ($5,194) ($37,444) ($130,810) ($59,496) OPERATING CASH FLOW $1.91 $638,851 $651,217 $680,800 $632,838 $714,215 $663,216 $865,667 $915,360 $891,730 $799,392 $907,843 ACQUISITION & RESIDUAL SALE Acquisition Cost ($11,295,000) ALL CASH Net Residual Value [4] $14,435,674 IRR CASH FLOW BEFORE DEBT ($11,295,000) $638,851 $651,217 $680,800 $632,838 $714,215 $663,216 $865,667 $915,360 $891,730 $15,235, % MARKET LOAN [5] Loan Funding/Payoff ($7,341,750) ($6,187,633) Loan Fees ($73,418) Leveraged Annual Debt Service 0 ($312,024) ($312,024) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) ($433,404) IRR CASH FLOW AFTER DEBT ($4,026,668) $326,827 $339,193 $247,396 $199,434 $280,811 $299,812 $432,263 $481,956 $458,326 $8,614, % NOI Return 5.69% 5.94% 6.07% 6.32% 6.89% 7.04% 7.87% 8.15% 8.23% 8.24% UNLEVERAGED Cash Return 5.66% 5.77% 6.03% 5.60% 6.32% 5.87% 7.66% 8.10% 7.89% 7.08% LEVERAGED Cash Return 8.12% 8.42% 6.14% 4.95% 6.97% 5.71% 10.74% 11.97% 11.38% 9.09% Debt Service Coverage Ratio (NOI) 2.06x 2.15x 1.58x 1.65x 1.80x 1.83x 2.05x 2.12x 2.14x 2.15x Debt Service Coverage Ratio (CF) 2.05x 2.09x 1.57x 1.46x 1.65x 1.53x 2.00x 2.11x 2.06x 1.84x Rolling - All Cash IRR N/M 1.00% 3.98% 6.41% 6.74% 8.23% 8.45% 8.36% 8.20% 8.32% Rolling-Leveraged IRR N/M N/M 2.79% 9.73% 10.58% 13.99% 14.26% 13.90% 13.42% 13.49% [1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy and base rent abatements. [2] This figure does not include any amount related to expense reimbursement. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year. [3] Based on 27,876 square feet. [4] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 6.50% and applying a 3.00% Cost of Sale. [5] Debt based on 65% Loan-to-Value, 4.25% Interest Rate, with 24 Months of Interest Only then 30-Year Amortization, and 1.00% Loan Fee. 12

13 Financial Overview Suite Tenant Name Square Feet % of Property 2903 A Autozone 6, % Jan-2011 Jan-2021 Current Feb Aug Lease Term Rental Rates Recovery Begin End Begin Monthly PSF Annually PSF Type $13,335 $13,970 $15,431 RENT ROLL AS OF 5/1/2015 $2.10 $2.20 $2.43 $160,020 $167,640 $185,166 $25.20 $26.40 $29.16 NNN +5% AF CAM Autozone 2905 Sprint 4, % Jan-2014 Jan-2019 Current $8,787 $2.15 $105,445 $25.80 NNN +10% AF CAM Sprint Assumption / Rent $2.25 NNN + 10% AF CAM $2.25 NNN + 10% AF Comments/Options Tenant has 3, 5-year options to renew (terms unknown). Autozone doesn t reimburse Roofing Expense until 1/16. Tenant has 1, 5-year option to renew at $9,890.54/mo Mariposa USA, Inc. dba Dollar Bargain 2, % Aug-2014 Jul-2019 Current Aug-2015 Aug-2016 Aug-2017 Aug-2018 $3,927 $4,044 $4,159 $4,306 $4,421 $1.34 $1.38 $1.41 $1.46 $1.50 $47,126 $48,527 $49,909 $51,673 $53,056 $16.02 $16.50 $16.97 $17.57 $18.04 NNN +10% AF CAM (1,2,4) $1.50 NNN + 10% AF CAM (4) Tenant has 1, 5-year option to renew at $4,554.33/mo Kalai & Sadighim Dental Corp. 1, % Feb-2011 Feb-2016 Current $2,468 $1.68 $29,615 $20.16 NNN +12% AF CAM (1,2,4) $2.25 NNN + 10% AF CAM (4) Tenant has 2, 5-year options to renew (terms unknown) KA Sup Kim dba Wateria 1, % Jul-2000 Mar-2019 Current Apr-2016 Apr-2017 Apr-2018 $3,572 $3,646 $3,719 $3,793 $2.43 $2.48 $2.53 $2.58 $42,865 $43,747 $44,629 $45,511 $29.16 $29.76 $30.36 $30.96 NNN + 15% AF CAM (1,2,4) $2.25 NNN + 10% AF CAM (4) 2919 Mother s Nutritional Center 2925 DJ Yogurt Shop 2, % May-2000 Apr-2018 Current May-2016 May , % Aug-2009 Jul-2019 Current Feb-2017 $2,556 $2,633 $2,711 $2,508 $2,701 $1.00 $1.03 $1.06 $2.21 $2.38 $30,672 $31,592 $32,538 $30,100 $32,416 $12.00 $12.36 $12.73 $26.52 $28.56 NNN + 15% AF CAM (1,2,4) NNN + 15% AF CAM (1,2) $2.00 NNN + 10% AF CAM (4) $2.25 NNN + 10% AF CAM Tenant has renewed for 3 years at $12/sf/yr NNN with 3% annual rent bumps. Tenant has an additional 2, 3-year options to renew. It is assumed tenant rolls to weightedaverage market leasing assumptions upon 4/18 expiration. Tenant has 1, 5-year option to renew (terms unknown) Papa John s Pizza 2929 Prospera Group 1, % Apr-2000 Mar-2020 Current Apr-2016 Apr-2017 Apr-2018 Apr , % May-2015 SIGNED LOI Apr-2020 Current May-2016 May-2017 May-2018 May-2019 $3,600 $3,708 $3,819 $3,934 $4,052 $3,090 $3,183 $3,277 $3,376 $3,477 $2.45 $2.53 $2.60 $2.68 $2.76 $1.25 $1.29 $1.33 $1.37 $1.41 $43,200 $ $45,831 $47,211 $48,620 $37,080 $38,192 $39,330 $40,516 $41,727 $29.43 $30.31 $31.22 $32.16 $33.12 $15.00 $15.45 $15.91 $16.39 $16.88 NNN + 15% AF CAM (1,2) NNN + 15% AF CAM $2.25 NNN + 10% AF CAM $2.00 NNN +10% AF CAM Tenant has renewed for 5 years at $3,600/mo NNN with 3% annual bumps, expiring 3/20. Tenant has 1, 5-year option to renew. Signed LOI. Tenant as 1, 5-year option to renew at the greater of $1.45/sf/mo or FMR McDonald s USA, Inc. 3, % Aug-2006 Nov-2026 Current Aug-2016 Aug-2021 $12,373 $13,591 $14,966 $3.15 $3.46 $3.81 $148,478 $163,091 $179,588 $37.80 $41.52 $45.72 NNN +10% AF CAM1 McD $3.25 NNN + 10% AF CAM 1 McD Tenant pays pro rata share at 14%. Tenant has 8, 5-year options to renew. ATM Wells Fargo* 348 (N.I) 1.25% Jul-2014 Jun-2019 Pad Site Jul-2019 Jul-2024 Jul-2029 $1,350 $1,512 $1,693 $1,897 $3.88 $4.35 $4.87 $5.45 $16,200 $18,145 $20,320 $22,759 $46.55 $52.14 $58.39 $65.40 Fixed $1,200/yr $3.88 AMT Tenant has 3, 5-year options to renew. Rents: 1st (5 yr) option: $1,512. 2nd (5 yr) option: $1,693 3rd (5 yr) option: $1,897. Tenant is assumed to exercise all options VACANT 0 0% OCCUPIED 27, % TOTAL 27, % $57,567 $2.07 $690,801 $24.78 *Wells Fargo SF not included in GLA. Weighted-Average Lease Term Remaining: 5.34 Years 13

14 Tenant Overview McDonald s The McDonald s corporation is the world s largest chain of hamburger fast food restaurants, serviing around 68 million customers daily in 119 countries across 35,000 outlets. Headquartered in Oak Brook, Illinois, the company started in 1940 as a barbeque restaurant operated by Richard and Maurice McDonald. In 1948, they turned the business into a hamburger stand using production line principles, and businessman Ray Kroc joined the company as a franchise agent in 1955, subsequently purchasing the chain from the McDonald brothers and turning it into a worldwide company (NYSE: MCD). In 2012, McDonald s Corporation had annual revenue of $27.5 billion and profits of $5.5 billion and has over 1,800,000 employees. Website: mcdonalds.com # of Locations: 35,000 NYSE: MCD # of Employees: 1,800,000 Papa John s Pizza Papa John s Pizza is the third largest take-out and delivery pizza restaurant chain in the United States. Headquartered in Jeffersontown, Kentucky, there are over 4,000 restaurants, throughout the United States and in 33 countries. In September 2012, Papa John s Pizza opened it s 4,000th restaurant in New York City, celebrating the event by giving away 4,000 free pizzas to customers throughout the city. John Schnatter created the company in 1983, and the company reported an operating income over $106.5 billion in 2013 with 20,700 employees (NASDAQ: PZZA). Website: papajohns.com # of Locations: 4,000 NASDAQ: PZZA # of Employees: 20,700 Sprint Sprint Corporation, commonly referred to as Sprint, is a United States telecommunications holding company that provides wireless services and is also a major global internet carrier. It is the third larget US wireless network operator as of 2013, and it served 54.6 million customers by the end of the first quarter of In addition to the Sprint brand, the company also offers wireless voice, messaging, and broadband services through its various subsidiaries under the Boost Mobile, Virgin Mobile, and Assurance Wireless brands, as well as wholesale access to its wireless networks to mobile virtual network operators. The company is headquartered in Overland Park, Kansas, and in July 2013, a majority of the company was purchased by the Japanese telecommunications company SoftBank Corporation, although the remaining shares of the company continue to trade on the New York Stock Exchange (NYSE: S). As of 2013, Sprint had a revenue over $35.49 billion with 38,000 employees. Website: sprint.com NYSE: S # of Employees: 38,000 Autozone Autozone is the second largest retailer of aftermarket automotive parts and accessories in the United States. Founded in 1979, the company was initially known as Auto Shack. Currently headquarterd in Memphis, Tennessee, Autozone is a publicly traded company (NYSE: AZO) with over 5,200 stores located throughout the United States, Brazil, and Mexico. In 2013, they had a revenue over $9 million and currently have over 70,000 employees. Website: autozone.com # of Locations: Over 5,200 NYSE: AZO # of Employees: 70,000 14

15 Tenant Overview (cont.) Wateria Wateria is a full-service retail outlet that sells purified water by the gallon, purified ice and other water-related products including crocks, coolers and bottles. The company was established in September 1994 and provides quality water to all of their customers. Wateria is equipped with a unique 13-step water purification system, which dispenses the cleanest and purest quality drinking water for the public. Over the past few years, they have grown tremendously and currently operate 21 stores with more in development. On average, they add five to ten store locations each year, and among the hundreds of water stores, Wateria was the first to receive a franchise license from the state government Website: # of Locations: 21 Established: 1994 Headquarters: Whittier, CA Wells Fargo Wells Fargo is an American multinational banking and financial services holding company. It is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home mortgage servicing and debit cards. In 2011, Wells Fargo was the 23rd largest company in the United States. Headquartered in San Francisco, Wells Fargo has over 9,000 retail branches and over 12,000 ATMs in 39 states as well as the District of Columbia. A Big-Four Bank, Wells Fargo has over 270,000 employees and over 70 million customers. As of July 2013, it became the world s biggest bank by market capitalization, worth $236 billion. Website: NYSE: WFC Headquarters: San Francisco, CA Established: 1852 Mother s Nutritional Center Mother s Nutritional Center has 86 locations throughout the United States and provides an stress-free way for customers to locate the products they need. They have a friendly, helpful staff and provide an easy voucher shopping experience. In addition, their locations have play areas for children while parents are shopping. Website: # of Locations: 86 15

16 N tai un s s Pa St Mo c i a nv iew Av e Salt Lake Park DAYTIME EMPLOYMENT BASE WITHIN 3 MILES 109,973 WITHIN 5 MILES 317,526 POPULATION (2014 EST.) WITHIN 3 MILES WITHIN 5 MILES Source: Nielsen 415,024 1,075,544 16

17 Demographic Analysis DEMOGRAPHICS 1 MILE 3 MILE 5 MILE 2014 Estimated Population 69, ,024 1,075, Projected Population 70, ,451 1,114, Census Population 68, ,431 1,049, Census Population 70, ,568 1,020,049 Growth % 2.11% 2.46% Growth % 3.24% 3.60% 2014 Estimated Median Age Estimated Average Age Estimated Households 17,266 97, , Projected Households 17, , , Census Households 16,933 95, , Census Households 17,128 93, ,359 Growth % 2.43% 2.72% Growth % 3.49% 3.83% 2014 Est. Average Household Size Est. Median Household Income $34,757 $34,742 $33, Prj. Median Household Income $35,826 $36,059 $35, Cen. Median Household Income $30,065 $28,618 $27, Est. Average Household Income $44,871 $44,685 $44, Estimated Per Capita Income $11,224 $10,536 $10, Estimated Housing Units 17, , , Estimated Occupied Units 17,266 97, , Estimated Vacant Units 663 4,670 15, Est. Owner Occupied Units 5,460 32,917 89, Est. Renter Occupied Units 11,807 64, , Est. Median Housing Value $298,282 $284,956 $287, Est. Average Housing Value $323,701 $307,409 $312, Est. Population by Race 69, ,024 1,075,544 - White Population 37,139 (53.8%) 187,584 (45.2%) 432,669 (40.2%) - Black Population 502 (0.7%) 23,030 (5.5%) 119,684 (11.1%) - Asian Population 401 (0.6%) 2,052 (0.5%) 9,229 (0.9%) - Pacific Islander Population 35 (0.1%) 297 (0.1%) 1,215 (0.1%) - American Indian and Alaska Native 1,050 (1.5%) 4,224 (1.0%) 10,363 (1.0%) - Other Race Population 27,469 (39.8%) 181,939 (43.8%) 461,813 (42.9%) - Two or More Races Population 2,430 (2.5%) 15,989 (3.8%) 40,569 (3.8%) - Hispanic Population 67,249 (97.4%) 383,529 (92.4%) 921,715 (85.7%) - White Non-Hispanic Population 973 (1.4%) 6,307 (1.5%) 22,513 (2.1%) 17

18 Location Overview HUNTINGTON PARK Located in Los Angeles County, the city of Huntington Park had a total of 61,348 people (according to the 2010 census). Named for prominent industrialist Henry Huntington, Huntington Park was incorporated as a streetcar suburb for workers in the rapidly expanding industries southeast of downtown Los Angeles. Today, the city benefits from excellent demographics, with the average household income over $45,000 and serves as a major retail area for working-class residents of southeastern Los Angeles County. 18

19 Exclusively Listed BY: ALEX KOZAKOV First Vice President Lic PATRICK WADE First Vice President Lic HEATHER GARREtT Client Services Specialist Lic com MAXX COHEN Associate Lic Eric Roy Associate Lic Affiliated Business Disclosure CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate ), engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management, and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammel Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property ) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. Confidentiality Agreement This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner ), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc., nor any of their respective directors, officers, Affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence, and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If, after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc. DISCLAIMER 2013 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 2/13 PMC