FOR SALE - Fremont, CA Land Lease Investment (8.80% Cap)

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1 FOR SALE - Fremont, CA Land Lease Investment (8.80% Cap) MOWRY EAST SHOPPING CENTER, FREMONT FOR SALE Land Lease RETAIL INVESTMENT (8.80% CAP RATE) (Includes 3% Management) MOWRY EAST SHOPPING CENTER FREMONT, CALIFORNIA $3,183,791

2 FOR SALE - Fremont, CA Land Lease Investment (8.80% Cap) Visible from Highway 880, this attractive building is situated in a busy retail center. This investment is priced at a higher cap rate to reflect the larger than normal cash to loan required. Maximum loan allowed is approximately $1.3 Million. There are over 31 years remaining on the land lease with options to extend the lease. Average rents are approximately $1.51 per square foot and the most recent lease was signed at $1.85 per square foot NNN. An adjoining tenant has expressed interest in the smallest unit which is currently leased month to month. The two largest units are leased to tenants with multiple locations. Aaron Brothers is a national chain with outstanding credit.

3 Summary PROPERTY SUMMARY This attractive Retail Center provides freeway visibility and easy access from Highway 880. Potential upsides in rent can be achieved with restaurant uses. This Land Lease provides great cash flow for a Trade Buyer with approximately $1.5 to $1.9 Million cash.

4 Proforma Price: $3,183,791 Estimated Down Payment: $1,883,791 Estimated Capitalization Rate: 8.80% Estimated Cash on Cash Return: 8.89% Building Area: 19,860± sf Date Constructed: 1982 Tenants: Financing: India Cash & Carry Kung Fu Academy The Station Aaron Brothers Maximum Financing available of approximately $1.3 Million Ground Lease: Through 12/31/2037 with Two 10 year options. Qualifies for IRS 1031 Tax Deferred Exchange. Annual rental is $36,000 per year plus 25% of the minimum monthly rents over the base rental of $218,731. Projected proforma ground rent payment is $66,000.

5 Proforma ESTIMATED INCOME Minimum Rent $ 356,880 Reimb. Common Area Maintenance 48,624 Real Estate Taxes (SP 3,200,000) 40,000 Insurance 11,236 Admin Fee 7,270 Total Estimated Income $ 464,010 ESTIMATED EXPENSES Common Area Maintenance $ 48,624 Real Estate Taxes 40,000 Insurance 11,236 Admin Fee 7,270 Management (3%) 10,706 Estimated Ground Rent 66,000 Total Estimated Expenses $ 183,836 ESTIMATED NET OPERATING INCOME $ 280,174 LESS: ESTIMATED DEBT SERVICE ($1,300,000, 7.25% - 25 yr amortization) $ 112,710 ESTIMATED CASH SPENDABLE $ 167,464 ESTIMATED CASH ON CASH RETURN 8.89%

6 Overview of Tenants Aaron Brothers, with 2005 revenue of over $169 million, opened its first store in 1946 and now has about 165 stores in 11 states, mostly in the Western United States. A subsidiary of Michaels Stores, Aaron Brothers locations average about 5,500 square feet and $1.1 million in net sales per store with plans to increase net sales to $1.4 to $1.5 million. The Mowry location is approximately 7,860 square feet and Aaron Brothers has been located in this location for over twenty years. The Station has occupied approximately 2,050 square feet of space for over five years. They sell skateboard, and surfboard equipment and apparel. They are currently renting on a month to month basis as the current owner is training a partner to operate the business. The owner is considering putting the business up for sale and signing a long term lease. O-Mei Kung Fu Academy, headquartered in Milpitas, has four locations in the Bay Area. Their Fremont location comprises approximately 3,900 square feet and is led by Master Sun who is a 7th Degree Black Belt and is licensed as the highest level WuShu coach in China. For almost ten years, O-Mei Kung Fu Academy has offered traditional and modern training for all ages. India Cash & Carry, our newest tenant, chose the Mowry East Shopping Center for their second location comprising of approximately 6,000 square feet. Their other store, in Sunnyvale, opened a few years ago and is very successful. They are also affiliated with Nuts & Spice Co. which, since 1978, claims to be the largest distributor of Indian food commodities.

7 Tenant Analysis 7/25/06 INDIA CASH & CARRY $1.85 NNN (± 6,000 SF) KUNG FU ACADEMY $1.40 NNN (± 3,920 SF) THE STATION $1.50 NNN (± 2,080 SF) AARON BROTHERS ART MARTS $1.28 NNN (± 7,860 SF) JOANN FABRICS NOT A PART # TENANT India Cash & Carry Kung Fu Academy The Station Aaron Brothers SF AREA 6,000 3,920 2,080 7,860 MONTHLY RENT 11,100 5,488 3,120 10,032 TERM 5 yrs 5 yrs month to 5 yrs EXP. DATE 11/30/2010 7/22/2008 month 6/30/2010 RENTAL INCREASES 2.5% None N/A None OPTIONS 1-5yr 1-5yr (FMV) N/A 1-5yr at $1.47 PSF CAM T T T T TAX T T T T INS T T T T ADMIN FEE 15% 15% 15% 0%

8 Demographics 1.00 Mile Radius 3.00 Mile Radius 5.00 Mile Radius Description POPULATION 2006 Projection 18, , , Estimate 18, , , Census 17, , , Census 16, , ,624 Growth % 14.34% 28.94% HOUSEHOLDS 2006 Projection 6,499 60,144 94, Estimate 6,371 56,707 89, Census 6,014 47,123 75, Census 5,210 38,715 55,754 Growth % 21.72% 34.54% 2001 ESTIMATED POPULATION BY RACE 18, , ,409 White 64.04% 56.04% 49.85% Black 3.24% 4.03% 3.98% Asian and Pacific Islanders 25.23% 29.88% 36.93% Other Races 7.49% 10.05% 9.23% 2001 ESTIMATED POPULATION 18, , ,409 Hispanic Origin 15.78% 20.47% 18.12% OCCUPIED UNITS 5,940 47,179 75,046 Owner Occupied 75.59% 50.10% 64.77% Renter Occupied 24.41% 39.90% 35.23% 1990 Average Persons per HH 2.88% 2.85% 2.93% 2001 EST HOUSEHOLDS BY INCOME 6,371 56,707 89,402 $150,000 OR MORE 13.69% 11.02% 16.50% $100,000 TO $149, % 20.44% 21.96% $75,000 TO $99, % 21.41% 19.85% $50,000 TO $74, % 21.43% 19.12% $35,000 TO $49, % 10.38% 8.96% $25,000 TO $34, % 6.07% 5.27% $15,000 TO $24, % 5.12% 4.54% $5,000 TO $14, % 3.37% 2.98% UNDER $5, % 0.77% 0.82% 2001 EST AVERAGE HOUSEHOLD INCOME $ 96,081 $ 87,640 $ 99, EST MEDIAN HOUSEHOLD INCOME $ 87,318 $ 78,349 $ 85, EST PER CAPITA INCOME $ 33,131 $ 31,260 $ 34,356

9 Site Plan Subject Property

10 Map of San Francisco Bay Area

11 Map of Newark/Fremont Area