ALBERTSON S LLC 3500 Panama Lane Bakersfield, CA 93313

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1 Property Information 4.9% CAP RATE $8,700,000 Land and building lease 23 years remaining with 1.75% annual increases in rent Tenant pays expenses direct Rudy Blankenship Senior Director Lic. # Rier Park Place E Suite 101 Fresno, CA phone: Real Property Photo paccra.com PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions,

2 AGENDA CONFIDENTIALITY AGREEMENT Pg. 2 EXECUTIVE SUMMARY Pg. 3 Offering Summary Bank of America Lease Abstract Site Description ALBERTSON S LLC TENANT OVERVIEW Pg. 4 AERIALS Map of Bakersfield & Site Location Pg. 5 DEMOGRAPHICS Pg. 7 PHOTOS Albertson s (Real property photos) Pg. 8 Surrounding Retailers Pg BAKERSFIELD Oeriew, Economy, Top Employers Pg. 11 BROKER BIOGRAPHY Pg. 12 Birds Eye Site Location & Immediate Area Amenities Pg. 6 PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions,

3 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 located at 3500 Panama Lane,, Kern County ( 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 Owner or the Property, to be all-inclusie or to contain all or part of the information which prospectie inestors may require to ealuate a purchase of real property. All financial projections and information are proided 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 Cushman & Wakefield Pacific Commercial Realty Adisors. Therefore, all projections, assumptions and other information proided and made herein are subject to material ariation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made aailable to interested and qualified prospectie purchasers. Neither the Owner or Cushman & Wakefield Pacific Commercial Realty Adisors, nor any of their respectie directors, officers, affiliates or representaties are 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 inestigations and inspections of the Property in ealuation a possible purchase of the real property. The Owner expressly resered 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 reiew of this Memorandum. The Owner shall hae no legal commitment or obligation to any entity reiewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property hae been fully executed, deliered and approed by the Owner and any conditions to the Owner s obligations therein hae been satisfied or waied. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident 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 Cushman & Wakefield Pacific Commercial Realty Adisors. You also agree that you will not sue this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Cushman & Wakefield Pacific Commercial Realty Adisors. 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 reiew all such summaries and other documents of whateer nature independently and not rely on the contents of this Memorandum in any manner. If after reiewing this Memorandum, you hae no further interest in purchasing the Property, kindly return this Memorandum to Cushman & Wakefield Pacific Commercial Realty Adisors. PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 2

4 EXECUTIVE SUMMARY The Albertson s inestment offers an inestor the second largest grocery producer located in a regional retail area of Bakersfield, California with surrounding tenants like Taco Bell, Carls Jr., Wells Fargo, Walgreens, Pizza Hut, Rite Aid, House of Wings, McDonald s, and AutoZone. The aerage household income within a fie-mile radius is about $74,709 per year. The lease has approximately 23-years remaining with stepped increases in the rent eery year beginning March OFFERING SUMMARY PRICE $8,700,000 NET INCOME $427,690 ( ) CAP RATE 4.9% LEASE Land and building lease ALBERTSON S LLC LEASE ABSTRACT COMMENCEMENT March 2015 INSURANCE Lessee LEASE TERM 25 Years 23 years remaining, plus 2, 10 yr renewal terms CAM CHARGES Lessee MARCH 2019 RENT $35,640 per month / $427,690 per year ** INSURANCE Lessee RENT INCREASES 1.75% eery year (beginning March 1, 2019) TAXES Lessee ** Landlord will supplement the rent difference between today s rent and February 28, 2018 SITE DESCRIPTION LOCATION 3500 Panama Lane, Kern County, SITE SIZE Land: ±5 acres Building: ±51,000 ZONING FLOOD ZONE INFORMATION FLOOD ZONE C-1, Neighborhood Commercial According to panel 06029C2300E (effectie on 09/25/2008) the property is not located in a Special Flood Hazard Area on the Federal Emergency Management Agency (FEMA) Flood Map Serice Center. Web Site: X PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 3

5 ALBERTSON S LLC Tenant Oeriew In 1939, Joe Albertson, a former Safeway district manager, took $5,000 he saed and $7,500 he borrowed from his wife s Aunt Bertie, and partnered with L.S. Skaggs to open his first Albertsons store on 16th and State Streets in Boise, Idaho. Joe knew the keys of running a really great store, and it was all about working hard for the customers: gie them the products they want, at a fair price, with lots of tender, loing care. Joe was innoatie, too. He had one of the first in-store magazine racks in the country along with a scratch bakery and fresh ice cream made in store. He worked hard, seen days a week on his ision to build his company, and through his inspiring work ethic and tireless determination to run the best store, the first store thried. Just two years later, he had opened two other stores in neighboring communities, and grew the fledgling company s sales to oer $1 million by the end of Today, Albertsons operates as a banner of Albertsons Companies, one of the largest food and drug retailers in the United States. With both a strong local presence and national scale, the company operates stores across 35 states and the District of Columbia under 19 well-known banners. Albertsons Companies is dedicated to helping people across the country lie better lies. In 2015 alone, with the help of generous customers, Albertsons Companies and the Albertsons Companies Foundation gae more than $270 million in food and financial support to the more than 2,300 communities they sere. See the Albertson s timeline: Timeline.pdf Albertson s LLC Quick Stats Type Priate Industry Retail / Grocery Founded July 21, 1939, Boise, Idaho Founders Joe Albertson Headquarters Boise, Idaho, US Number of locations 2,206 (2015, includes Safeway) Serices Supermarket Reenue US $58.7 billion (2016) Net Income US $409.9 billion (2016) # of Employees 164,000 (2016) Subsidiaries Safeway Inc., & Acme Markets Source: PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 4

6 MAP OF BAKERSFIELD & SITE LOCATION SITE Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page 5

7 FOR SALE Campbell Rd. BIRDS EYE SITE LOCATION & IMMEDIATE AREA AMENITIES SITE Howard s Mini Market Panama Ln. Wible Rd. Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Page 6 Back to Agenda

8 FOR SALE DEMOGRAPHICS Aerage Household Income ($): $71,827 $65,984 $74,709 Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Page 7 Back to Agenda

9 PHOTOS ALBERTSON S LLC REAL PROPERTY PHOTOS Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page 8

10 PHOTOS SURROUNDING RETAILERS Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page 9

11 PHOTOS SURROUNDING RETAILERS Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page 10

12 BAKERSFIELD CALIFORNIA Oeriew Bakersfield is a city in California and the county seat of Kern County. It coers about 142 square miles (370 km2) near the southern end of the San Joaquin Valley and the Central Valley region. Bakersfield's population is approximately 365,000, making it the ninth-most populous city in California and the 52nd-most populous city in the nation. The Bakersfield Delano Metropolitan Statistical Area, which includes all of Kern County, had a 2010 census population of 839,631, making it the 62nd largest metropolitan area in the United States. The more built-up urban area that includes Bakersfield and areas immediately around the city, such as East Bakersfield and Rosedale, has a population of approximately 464,000. The city is a significant hub for both agriculture and oil production. Kern County is the most productie oil producing county, and the fourth most productie agricultural county (by alue) in the United States. Industries include natural gas and other energy extraction, aerospace, mining, petroleum refining, manufacturing, distribution, food processing, and corporate/regional headquarters. The city is also the birthplace of the country music genre known as the Bakersfield sound. Economy Bakersfield's historic and primary industries hae related to Kern County's two main industries, oil and agriculture. Kern County in 2013 was the most oil productie county in America. Kern County is a part of the highly productie San Joaquin Valley, and ranks in the top fie most productie agricultural counties in the nation. Major crops for Kern County include: grapes, citrus, almonds, carrots, alfalfa, cotton, and roses. The city seres as the home for both corporate and regional headquarters of companies engaged in these industries. Bakersfield also has a growing manufacturing and distribution sector. Seeral companies hae moed to Bakersfield because of its inexpensie land and access to the rest of America, as well as international ports in both Los Angeles and Oakland. Other companies hae opened regional offices and non-oil/agricultural businesses because of Bakersfield's and Kern County's business friendly policies, such as haing no local utility or inentory taxes. Products manufactured in the city include: ice cream (world's largest ice cream plant), central acuums, highway paint, and stock racing cars. Bakersfield is the largest city with the lowest sales tax in California at the state minimum of 7.25%. BAKERSFIELD TOP EMPLOYERS # Employer # of Employees 1 County of Kern 7,475 2 The Giumarra Companies 4,200 3 Grimmway Farms 3,500 4 Bolthouse Farms 2,000 5 Bakersfield Memorial Hospital 1,400 6 City of Bakersfield 1,300 7 Mercy Hospitals of Bakersfield 1,200 8 ARB 1,200 9 Kern Medical Center 1, State Farm Insurance 1, Sun World 1, Cheron 1, Clinica Sierra Vista 1, San Joaquin Community Hospital AndrewsAg Sun Pacific Paramount Farms California State Uniersity, Bakersfield Aera Energy Kaiser Permanente 500 Source: PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 11

13 BROKER BIOGRAPHY RUDY BLANKENSHIP Lic., # Senior Director Inestment Properties Specialist ROLE & RESPONSIBILITIES Rudy Blankenship is an inestment specialist concentrating on single-tenant, net-leased inestments throughout the United States, Rudy joined Cushman & Wakefield Pacific in April Oer his 40-year career, Rudy has been affiliated with CBRE, Grubb & Ellis, and CB Commercial. WORK EXPERIENCE Rudy has closed oer $800 million of inestment real estate throughout the United States. He has generated significant relationships with real estate deelopers; real estate inestment companies, and insurance and financial institutions. Rudy diligently proides his clients with sophisticated skills in both Buyer and Seller representation. He is focused on quality representation with attention to client concerns. EDUCATION, MEMBERSHIPS AND AWARDS International Council of Shopping Centers (ICSC) United States Nay/United State Marine Corps Fresno City College, Fresno, CA Arizona State Uniersity, Tempe, AZ PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 12

14 Rudy Blankenship Senior Director Lic. # Rier Park Place E Suite 101 Fresno, CA phone: paccra.com Real Property Photo PACCOM Realty Adisors, Inc., Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, Back to Agenda Page 13