~NORCO, CA~ Exclusive Agent Hook Retail Advisors. Daniel Tyner Associate O: C: E:

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1 ~NORCO, CA~ Exclusive Agent Hook Retail Advisors Scott G. Hook Executive Vice President O: C: F: E: LIC# Daniel Tyner Associate O: C: E: LIC# Michelson Drive, Suite 100, Irvine, CA DRE #

2 TABLE OF CONTENTS Exclusive Agent Hook Retail Advisors Scott G. Hook Executive Vice President O: C: F: E: LIC# Daniel Tyner Associate O: C: E: LIC# INVESTMENT OVERVIEW AREA OVERVIEW SALE COMPARABLES DEMOGRAPHICS 2600 Michelson Drive, Suite 100 Irvine, CA DRE #

3 INVESTMENT OVERVIEW The Hook Retail Advisors are proud to offer for sale a Carl s Jr pad building located North of Corona off the Interstate 15 freeway. The Property is at the corner of Hamner Avenue and Fourth Street in Norco, CA. The attractive 2,474 square foot free standing pad building is on a large 28,749 square foot parcel, has easy access, abundance of parking, and large scale signage. The Hamner Avenue retail corridor possesses major national retailers that bring tremendous amounts of traffic to the region, as well as the prime visibility and access off the Interstate 15 freeway. The property is a part of the larger Vandermolen Center with major national tenants including Stater Bros, Dollar Tree, Subway, Ace Hardware among others. The property boasts from (27,000+ CPD) along Hamner Avenue and over (162,000+ CPD) along the I-15 Freeway. The subject property offers tremendous upside potential for an investor, located in a dense area of Southern California and rapidly growing trade area of Corona. The investment provides a new investor the ability to add immediate value to the property. With an expiring lease on January 25th, 2016, the new investor may renegotiate a long term lease with Carl s or redevelop the property.

4 CARL S JR. FINANCIAL OVERVIEW LOCATION 2896 Hamner Ave., Norco, CA CURRENT FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA Price: $1,173,066 Down Payment: (100%)$1,173,066 Cap Rate: 4.50% Scheduled Rent $52,788 Expense Reimbursements NNN Net Operating Income $52,788 GLA: 2,474 SF Price Per Square Foot: $ Lease Expiration: 01/25/2016 Option: None Year Built: 1978 Lot Size: 28,749 SF Cost Per SF (Land) $41 APN: Rent Roll Tenant GLA % of GLA Lease Commencement Lease Expire Annual Rent Monthly Rent Rent/SF Escalations Options Lease Type Carl's Jr. 2, % 1/26/1978 1/25/2016 $52, $4, $1.78 None None NNN TOTAL 2, % $52, $4, $1.78

5 INVESTMENT HIGHLIGHTS Excellent Fast Food Opportunity An investor can add immediate value upon extension of the lease (expires January 25th, 2016) or redevelopment of a new fast food concept. The major retail corridor is very attractive to major national fast food chains due to strong visibility, access and high traffic along Hamner Avenue. Drive Thru Building This feature provides ease of access and convenience for customers. Low building to land ratio for additional building redevelopment. Prime Riverside County Location Hamner Avenue is the major retail corridor of Norco, with over 27,000 CPD passing the subject property. Located directly off the I-15 Freeway which receives over 162,000 CPD Over 99,000 employers located within a 5-mile radius of the subject property Over $102,000 AHHI within a 3-Mile radius of the property. Located at Signalized, Hard Corner Intersection The subject property is ideally located near the signalized, hard corner intersection of Hamner Avenue and Fourth Street. Strong street visibility and signage attract customers and boast sales.

6 CARL S JR RESTAURANT Company History In 1941, Carl N. Karcher and his wife Margaret took $15 in savings, borrowed another $311 on their car, and bought a hot dog cart in Los Angeles. They grew their business to four carts before opening the first Carl s Drive-In Barbecue in 1945 and adding hamburgers to the menu. The first Carl s Jr. locations-- so-named because they were smaller than the drive-ins-- opened in the 1950 s. Today the company has locations throughout the West and Southwest, and is known for menu items such as its Six Dollar Burgers. Current Carl s Jr. information is available at carlsjr.com. Current Franchisee Bernard Karcher Investments Inc is the current operator of the subject property. BKI was founded in May of 1984 by Bernard and Joan Karcher. BKI was the first original franchisee of Carl s Jr. Restaurants and started operations with two locations in Corona and Norco. This property was its first location and they have now expanded to operate 23 Carl s Jr. Restaurants located in Southern California and Texas.

7 AREA OVERVIEW Norco is best known as an animal-keeping, equestrian-oriented community whose residents enjoy over 400 acres of parkland and one of the largest networks of horse trails in the nation, earning the nickname Horsetown USA. Our love for animals has created a close-knit community whose residents are active in local schools, churches and civic groups, but Horsetown USA is also a great place to conduct business. The City of Norco encompasses about 14.5 square miles strategically located on the I-15 Freeway, just 50 miles from downtown L.A. The small town values that are alive and well in Horsetown USA not only enhance its residents quality of life, but provide a nurturing environment for businesses as well. High technology thrives in Horsetown USA. The Naval Surface Warfare Center Corona Division is responsible for assessing the reliability of naval weapons systems and the combat readiness of the Fleet. Norco College, a campus of Riverside Community College with more than 10,000 students, is known for its pioneering Center for Applied Competitive Technologies, one of the first centers of its kind in California. Designated as the District s technology campus, Norco College is a tremendous resource for local businesses of all kinds. City officials work in concert with business leaders to ensure a vibrant business environment and sustained economic growth, enhancing a unique community rich in cultural, recreational and commercial resources. The City s animal-keeping lifestyle is Norco s greatest resource and part of a $100 billion horse industry in America. The 44- acre George Ingalls Equestrian Event Center, Silverlakes Equestrian & Sports Park, and distinctive Western façades along Sixth Street all reinforce the spirit of Horsetown USA. Nowhere else will you see horse trails traversing from residential neighborhoods to business districts equipped with horse crossings and hitching posts. Horsetown USA s unique Western lifestyle and dynamic equestrian community also contribute to a burgeoning hospitality industry. Fueled by the anticipated opening of Silverlakes, a 122-acre mega-venue for regional, national and international equestrian and soccer events, hotel developers and restaurateurs are evaluating sites in the City, and several projects are in the planning or construction phase. The Economic Development Department currently focuses on two major strategies. First, it is committed to enhancing the economic vitality of the community, attracting new businesses and nurturing relationships with existing enterprises. Second, the Department is actively positioning Horsetown USA as an appealing destination for visitors, providing the amenities that make it competitive in the hospitality industry. The Department is dedicated to creating a favorable economic environment in which businesses of all kinds can prosper. We actively seek out businesses that contribute to a vibrant economy while complementing the community s Western lifestyle, constantly balancing revenue-generating potential against our high quality of life. Many Fortune 500 companies maintain a presence in Norco, some adapting their images to suit the City s unique character. They have discovered that a Norco address is likely to be among their top-performing locations nationwide. Part of the Department s strategic vision involves enhancing Norco as a tourist destination, thereby generating new revenue while preserving Norco s heritage. Horsetown USA s Western character a place to ride along hillside trails, purchase Western clothing or art, and dine at a rustic steakhouse makes for a great weekend getaway, just an hour from downtown L.A. SilverLakes Equestrian & Sports Park, a world-class venue projected to eventually draw 2 million visitors a year, and George Ingalls Equestrian Event Center reinforce Horsetown USA s viability as a destination.

8 4TH ST HAMNER AVE (27,000 VPD) 1-15 FREEWAY (162,000 VPD) N

9 1-15 FREEWAY (162,000 VPD) HAMNER AVE (27,000 VPD) S 4TH ST

10 Subject Property N

11 SALE COMPARABLES Subject Property 2896 HAMNER AVE., NORCO, CA Sales Price: $1,880, Atlantic Ave Long Beach, CA Sales Date: On Market Building SF: 2,132 SF Price/SF: $ Cap Rate: 3.5% Riverside Dr Chino, CA Sales Price: $820,000 Sales Date: 7/9/2014 Building SF: 1,392 SF Price/SF: $ Cap Rate: 4.10% Sales Price: $1,173,066 Carl s Jr. Restaurant 2869 Hamner Ave Norco, CA SUBJECT Building SF: 2,474 SF Price/SF: $ Cap Rate: 4.5% Colima Rd La Puente, CA Sales Price: $1,510,000 Sales Date: 9/17/2014 Building SF: 2,311 SF Price/SF: $ Cap Rate: N/A Sales Price: $1,564, E G St Ontario, CA Sales Date: On Market Building SF: 3,260 SF Price/SF: $ Cap Rate: 5.25% 1720 E Dyer Rd Santa Ana, CA Sales Price: $1,450,000 Sales Date: 05/27/2015 Building SF: 2,550 SF Price/SF: $ Cap Rate: N/A

12 SALE COMPARABLES 2896 HAMNER AVE., NORCO, CA Comparables "Price per Square Foot" $1,000 $900 $800 $882 $700 $600 $500 $400 $474 $589 $653 $480 $569 $300 $200 $100 $0 Subject Property

13 DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile 2015 Total Population: 6,848 90, , Population: 7,195 96, ,761 Pop Growth : 5.07% 6.56% 6.73% Average Age: Households 2015 Total Households: 1,491 24,508 75,492 HH Growth : 5.63% 6.64% 6.84% Median Household Inc: $65,094 $87,345 $71,159 Avg Household Size: Avg HH Vehicles: Housing Median Home Value: $380,914 $375,561 $325,998 Median Year Built:

14 CONFIDENTIAL MEMORANDUM AND DISCLAIMER 2896 HAMNER AVE., NORCO, CA Coldwell Banker Commercial Alliance ( Agent ) has been engaged as the exclusive agent for the sale of 2869 Hamner Ave, Norco, CA by the owner of the Property ( Seller ). Hook Retail Advisors and Scott G. Hook are affiliated with and considered an investment sales agent, of agent. The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered Coldwell Banker Commercial Alliance as a Registered Potential Investor or as Buyer s Agent for an identified Registered Potential Investor. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations thereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Coldwell Banker Commercial Alliance. If you have no interest in the Property at this time, please return this Offering Memorandum immediately to: Coldwell Banker Commercial Alliance CBCA OC DRE# Michelson Drive, Suite 100, Irvine CA

15 SCOTT G. HOOK Executive Vice President CBC Alliance Lic# (949) ALLIANCE O: F: Michelson Drive, Suite 100, Irvine CA CBCA OC DRE# Daniel Tyner Associate CBC Alliance LIC# (949) Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates.