ND STREET NAPA, CALIFORNIA

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1 OFFERING MEMORANDUM ND STREET NAPA, CALIFORNIA CAPITAL MARKETS INVESTMENT PROPERTIES OFFERING MEMORANDUM

2 AFFILIATED BUSINESS DISCLOSURE CBRE 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 Trammell 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. No cooperating brokerage commission shall be paid by the USPS or CBRE. Buyer s Broker, if any,shall seek commission compensation from the Buyer only. The Owner expressly reserves the right,at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property,and/or terminate discussions with any entity at any time with or without notice. The Owner shallhave no legal commitment or obligation to any entity reviewing the marketing materials or makingan offer to purchase the Property unless and until written agreement(s) for the purchase of theproperty have been fully executed, delivered and approved by the Owner, and any conditions to the Owner s obligations have been satisfied or waived. 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 all Property (the Owner ), to be all-inclusive or to contain all or part of the information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors being 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 respectful directors, officers, Affiliates or representatives make an representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any 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. The Owner shall have no legal commitment or obligation to any entity reviewing 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. DISCLAIMER 2016 CBRE, Inc. The information containing in this document has been obtained for 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 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. Andrew Reeder Vice President Lic andrew.reeder@cbre.com Henry Bose Senior Vice President Lic henry.bose@cbre.com

3 Table of Contents AERIAL INVESTMENT SUMMARY PROPERTY DESCRIPTION DEMOGRAPHICS

4 1st Street Cooobms Street nd Street Randolph Street Franklin Street 2nd Street School Street 3rd Street 4th Street

5 INVESTMENT SUMMARY THE OFFERING CBRE has been retained as the exclusive marketing advisor to sell (the Property ). The historic building consists of approximately 13,470 square feet. Prior to the 2014 earthquake, the United States Postal service operated a retail location in the front and Post Office Distribution Operations in the back. As a result of the earthquake, the Postral Service has vacated the property. The Property represents an exceptional opportunity to acquire a historically significant building in Napa s thriving Downtown Market. LEASEBACK Leaseback: If a bidder wishes to include a leaseback as part of its offer, the United States Postal Service will consider a lease of approximately 5,000 square feet on the ground floor, for an initial term of 5-10 years with multiple renewal options at a rental rate not to exceed market, in order to operate a retail post office facility. Additionally, the Postal Service would require access to a loading platform and sufficient employee and customer parking ND STREET - OFFERING SUMMARY The purchase and sale of this property will be done through a purchase and sale agreement the terms of which will include, among other terms, the following: 1. A 30 day due diligence period. There will be NO opportunity to extend the due diligence period. 2. A requirement that the purchaser accept title to the Property subject to a preservation covenant that requires the buyer to restore the Property to the condition it was in prior to the 2014 earthquake or better in strict compliance with the preservation covenant. 3. Closing shall not occur until the USPS has completed all of its regulatory requirements including completion of the process under Section 106 of the NHPA. It is not known how long such processes will take to complete. 4. The buyer must pay the greater of $250,000 or 10% of the purchase price to the USPS at the time of execution of the purchase and sale agreement. Such amount will be held in an interest bearing account until closing. If buyer defaults under the purchase and sale agreement by failing to close on the date and time set forth therein for closing, the entire amount shall automatically become the property of the USPS ND STREET - OFFERING SUMMARY Address, Napa, CA Land Area 28,720 SF Building Area (Ground Floor and Basement) 13,470 SF Parking 15 Spaces

6 INVESTMENT SUMMARY CTD. HISTORICAL BUILDING The property is a historic property as defined in the National Historic Preservation Act (NHPA). This means that the transfer of this property by the Postal Service cannot be completed until the Postal Service completes its obligations under Section 106 of the NHPA and the implementing regulations, which is likely to mean the use of a preservation covenant recorded with the deed and designed to ensure long-term preservation of the property s historic significance. The buyer will be required to abide by the conditions of the preservation covenant in restoring, maintaining, altering or otherwise dealing with the property. REDVELOPMENT OPPORTUNITY Prime 28,720 Sq Ft property located in Downtown Napa. Excellent potential for a hotel redevelopment. According to Smith Travel Research, the Napa hotel market tract turned in an occupancy of 70.1%, with an average rate of $ and RevPAR of approximately $ for the 12 month periodending July This is one of the strongest tracts in the nation. Hotel activity in the immediate downtown area is strong. The Andaz Napa traded hands in September of 2013 at over $510,000 per unit, and work is underway at the 183-room boutique, Archer Hotel Napa. AS IS incurred significant damage from the August 24, 2014 South Napa Earthquake. The building was subsequently red tagged by City and County authorities who performed life safety inspections of impacted structures. This property is being sold as is where-is. A buyer s decision to buy the property is based solely upon buyer s examination, inspection and analysis of the property. USPS shall have no liability to a buyer for the condition of the property. A buyer will acknowledge that buyer has inspected the property and any improvements, has made its decision to purchase solely upon buyer s own examination, inspection and analysis of the property and that buyer will agree to purchase the property in its as is where-is condition with all faults, without recourse, liability, or indemnification of any type from USPS. USPS will disclaim any express or implied warranty of merchantability or fitness for purpose regarding the asset conveyed. TOURING AND OFFERS Interested parties will be able to schedule tours of the property on the following date: April 26 You must contact Andrew Reeder at (415) to participate in the scheduled tour. Tours are limited to 15 people per tour. If the number of interested people exceed the number of dates listed above for tours, additional dates will be added. Tours will require the following: hard hats, closed toed shoes, and an executed waiver of liability by all who intend to go inside the property. The USPS will not be providing shoes or hard hats. No entry will be permitted until a signed waiver of liability is received by the USPS representative. No other entry to the property will be permitted either prior to or after a buyer is selected. The Call for Offer date will be May Bidding instructions will be provided to all interested parties.

7 PARCEL MAP SITE

8 DEMOGRAPHICS 2015 Estimated population 2020 Projected Population Population Snap Shot 1 Mile 3 Mile 5 Mile 15,547 74,716 91,505 15,818 76,843 94,544 Growth % 2.9% 3.3% Median House Hold Income 1 Mile 3 Mile 5 Mile 2015 Median Income $56,130 $62,533 $65, Projected Median Income $59,343 $65,732 $69,292 DON LEBUHN Senior Vice President Lic

9 FOR SALE Andrew Reeder Vice President Lic Henry Bose Senior Vice President Lic