~ A rare opportunity to purchase a best in class, luxury theater. ~ Roxy Stadium 11. New 15 Year NNN Lease - Camarillo, CA

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1 ~ A rare opportunity to purchase a best in class, luxury theater. ~ Roxy Stadium 11 New 15 Year NNN Lease - Camarillo, CA

2 Best in Class. Newly Extended Lease Urban Infill. For more information Contact: Jereme Snyder Executive Vice President License No Eric Carlton Associate Vice President License No John Sharpe Senior Associate License No THE SNYDER/CARLTON TEAM - COLLIERS NNN GROUP

3 Table Of Contents Property Overview... 5 Investment Highlights... 7 Property Information... 9 Lease Summary...11 Area Overview Area Demographics...16 Colliers International 3 Park Plaza Ste. 1200, Irvine, CA 92614

4 101 Santa Rosa Rd. 38,000 AADT Verdugo Way Roxy Stadium 11 Camino Ruiz Adolfo Rd.

5 Property Overview SINGLE TENANT NNN LEASE We are pleased to offer to qualified investors a rare opportunity to purchase a single tenant NNN theater strategically located along the 101 Freeway in the dense and demographically strong area of Camarillo, CA. The property is 100% leased to the Roxy Theater, which recently approached the Landlord and signed a new lease extension for 15 years (expiring in August 2030). There are attractive scheduled rental escalations in 2020 and 2025 ($725,274 and $783,296, respectively). There are also 3-5 year option periods with 8% rental increases every 5 years. The lease also includes an attractive percentage clause that calls for 10% of Box Office Gross Sales. As a condition to signing the extension, the Theater has received numerous upgrades, such as new seating and floor configuration (fat seat recliners), the sale of food and alcohol consumption within the theater premises, and a brand new large format screen. Total renovations exceed $1.8M - making the Roxy Theater a best in class theater experience. The Roxy Theater is an upscale theater experience that has built a loyal moviegoing consumer base since its opening in The complex also features large snack bars as well as excellent picture and digital sound presentations and giant auditoriums with wall-to-wall screens. Moreover, the Theater stands to greatly benefit from growing household income and demographics over the short-run and long-run. The Theater is operated by the successful Santa Rosa Entertainment Group, which operates 11 state of the art multi-screen cinemas throughout the Bay Area, Central Valley and Southern California. Established in 1972, the SR Entertainment Group operates, designs, builds and renovates theaters in addition to buying and booking firlm, managing concessions and performing other administrative functions for a network of motion picture theaters and independent exhibitors. This is a rare opportunity to purchase a state of the art, successful stadium Theater in Camarillo - just off the 101 Freeway within a dense trade area and high barriers to entry. PRICING List Price $10,865,000 NOI $671,500 CAP Rate 6.18% OPERATING EXPENSE DATA Annual Rent $671,500 Operating Expense Taxes NNN Insurance NNN CAM NNN Net Operating Income $671,500 Roxy Stadium 11 Pg. 5

6 Investment Highlights LONG-TERM NNN LEASE Newly Extended 15 Year Lease with 3-5 Year Options 8% Rental Escalations Every 5 Years, Including All Option Periods Includes Percentage Rent - 10% of Box Office Sales No Landlord Responsibilities - Passive Investment Free and Clear of Existing Debt SUCCESSFUL OPERATOR Santa Rosa Entertainment Group - Operates 11 State of the Art Theaters Established in Successful Legacy - Excellent Sales Guaranteed by North American Cinema, Inc - Strong Liquidity & Balance Sheet Recently Upgraded - $1.8M in Renovations In-Theater Dining EXCELLENT LOCATION Strategic Location Just off of 101 (Ventura) Freeway Approx 130,000 CPD Surrounding Retailers include Starbucks, McDonald s, Jamba Juice, Wells Fargo Bank and Safire Restaurant Adjacent to Adolfo Camarillo High School Approximately 2,500 Students 1 Block from Courtyard Camarillo Hotel Approximately 58,459 Residents Within a 3-Mile Radius Average Household Income of $105,195 Within a 3-Mile Radius IDEAL DEMOGRAPHICS Operator Approached Seller For Extension Big Upgrades Strong Demand For Upscale Movie Experience Very Strong UpScale Demos High Household Income Newly Extended 15 Year Term Long-Term NNN Income Free and Clear of Existing Debt High Barriers to Entry

7 Major Upgrades Underway Theater 1-4 Jan. 5 - Feb. 16 Theater 5-7 Feb Mar. 19 Theater 8-11 Mar Apr. 23 Renovation Construction Jan. 1, 2015 Renovation Complete Apr. 25, 2015 IMPROVEMENTS Owner Removes Seats Demo Knee walls modified Install nailers / backing Drywall patching / finishing Foam / Riser plates installed Install electrical platform roughin Place new concrete Install two string rails behind HC Painting of riser plates Electrical finish Clean floors for carpet Curtains trimmed / reset on nailers Wall Carpet installed Aisle lighting installed Trim installed at curtains / knee walls Hand rails installed Carpet installed Chairs installed Final Clean THEATER UPGRADES Tenant Currently Upgrading Theater To Luxury Format $1.8 Million in Renovation Costs Completion Scheduled for April 2015 Major Upgrades Including Seating Configuration, Screens, Sound and Furnishings Luxury Amenities Gives Property Unique Competitive Advantage Roxy Stadium 11 Pg. 7

8 MISSION OAKS PARK LEISURE VILLAGE GOLF COURSE Mission Oaks Blvd. ADOLFO CAMARILLO HIGH SCHOOL 101 Santa Rosa Rd. 38,.000 AADT Roxy Stadium ,000 AADT Adolfo Rd. VENTURA COUNTY OFFICE OF EDUCATION 101

9 Property Information Address 5001 Verdugo Way Camarillo, CA Market/Submarket Ventura/Camarillo Price $10,865,000 Cap Rate 6.18% Parcel APN#: , , Year Built New 1995 Construction PARCEL MAP Current NOI $671,500 Building Area 51,000 SF Land Area 142,964 SF (3.28 Acres) Access Excellent visibility along Adolfo Rd. Santa Rosa Rd. 38,000 AADT / 101 Freeway 130,000 AADT Roxy Stadium 11 Pg. 9

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11 Lease Summary Single Tenant NNN Lease Tenant Trade Name Roxy Stadium 11 Lease Commencement March 16, 2005 Lease Expiration August 22, 2030 Lease Term Term Remaining On Lease 15 Years 15 Years Base Rent $671,500 Rental Adjustment Option Periods Percentage Rent Roof And Structure 8/23/ $725,274 8/23/ $783, Year Options with 8% Rental Increases Every 5 Years % Rent of Box Office Sales Less Minimum Annual Rent Tenant Responsible Gross Leasable Area Gross Land Area 51,000 SF 142,964 SF (3.28 Acres) Year Built 1995 Lease Type First Right of Refusal Single Tenant NNN Lease No Roxy Stadium 11 Pg. 11

12 OXNARD SPANISH HILLS 101 CAMARILLO BOB KIDEE COMMUNITY PARK ADOLFO CAMARILLO HIGH SCHOOL Mission Oaks Blvd ,000 AADT Santa Rosa Rd. Roxy Stadium 11 Adolfo Rd.

13 LOCATION OVERVIEW The Theater, which enjoys plentiful parking and convenient access, is located off the 101 Freeway in the city of Camarillo, CA. It is located directly across from Adolfo Camarillo High School and is surrounded by retailers such as McDonald s, Starbucks, New York Bagel & Deli, LA Workout, Safire, and Wells Fargo Bank. The Courtyard at Camarillo is also 1 block away. The Adolfo Camarillo High School currently enrolls 2,501 students, to which the Theater attracts significant attention. The City of Camarillo is a city within Ventura County, with an estimated population of 65,000 residents. There are approximately 58,459 residents within a 3-mile radius and an average household income of $105,195 within a 3-mile radius. The 101 (Ventura) highway is one of the most heavily trafficked highways in the state - there are approximately 38,000 Cars Per Day at the 101 / Santa Rosa Road on-ramp & off-ramp. Roxy Stadium 11 Pg. 13

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15 Roxy Stadium 11

16 AREA DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE Estimated Population (2015) 12,022 58, ,544 Projected Population (2020) 12,816 60, ,797 INCOME Avg. Household Income (2015) $105,791 $105,195 $114,445 Median Household Income (2015) $83,381 $82,782 $88,826 HOUSEHOLDS 1-MILE 3-MILE 5-MILE Estimated Households (2015) 4,617 21,668 37,716 Projected Households (2020) 4,884 22,568 39,517 BUSINESS FACTS Total # of Businesses (2014) 599 2,804 4,178 Total # of Employees (2014) 9,788 29,020 41,059 Number of Moviegoers (Millions) 26.8 Cinema Facts % of all Americans go to the movies at least once every year (NRG, American Moviegoing 2012) Adults ages 21 or older are almost 2x more likely to go to the movies than to bars/nightclubs once a month or more (2012 MRI Doublebase Study) More people went to the movies in 2010 than attended Theme Parks and Sporting Events combined (2011 MPAA Study) The average HH Income of moviegoers is $82,800, which is +14% higher than the average US person (2012 MRI Doublebase Study) Frequent Moviegoers 3D Moviegoers Moviegoes U.S. - California Theatrical Market Statistics 2012 MEDIAN HOUSEHOLD INCOME

17 REGIONAL MAP Roxy Stadium 11 Pg. 17

18 This Offering Memorandum contains select information pertaining to the business and affairs of Roxy Stadium 11, Camarillo, CA. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Roxy Stadium 11, Camarillo, CA or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, Colliers International 3 Park Plaza, Suite 1200 Irvine, CA Snyder/Carlton Team Information herein has been obtained from sources deemed reliable, however its accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification. Copyright 2013 Colliers International.

19 Roxy Stadium 11 For more information Contact: Jereme Snyder Executive Vice President License No Eric Carlton Associate Vice President License No John Sharpe Senior Associate License No