FULLY LEASED MULTI-TENANT RETAIL BUILDING FOR SALE 2101 Sylvan Avenue, Modesto, CA 95355

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1 FULLY LEASED MULTI-TENANT RETAIL BUILDING FOR SALE 2101 Sylvan Avenue, Modesto, CA Offering Memorandum ROB SAUSER (209) CalBRE # Scenic Drive, Modesto, CA (209)

CONTENTS 03 INVESTMENT HIGHLIGHTS 08 09 12 PROPERTY OVERVIEW LOCATION OVERVIEW ADDITIONAL PHOTOS OFFER GUIDELINES Offers should be submitted electronically to Rob Sauser

2 CONTENTS 03 INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW LOCATION OVERVIEW ADDITIONAL PHOTOS OFFER GUIDELINES Offers should be submitted electronically to Rob Sauser at Call listing agent at (209) for details on offer guidelines. ROB SAUSER, Broker Associate PMZ Commercial Real Estate (209)

Multi-Tenant Retail Building For Sale O ering Memorandum Investment Highlights Facility Type FACILITY OVERVIEW Multiple Tenants Lease Type Building Size NNN

$31,827 $83,160 Leann s Nails Lendmark Financial Svcs $31,152 $31,200 $31,908 $33,096 SUMMARY Total Annual Income $ 194,112 Projected 2017 $ 197,475 Projected

3 Multi-Tenant Retail Building For Sale O ering Memorandum Investment Highlights Facility Type FACILITY OVERVIEW Multiple Tenants Lease Type Building Size NNN 14,700 SF Year Built 2006 CURRENT TENANT OVERVIEW TENANT A Bath N Biscuit $19,860 Windows By Jerico $30,900 Taqueria Mis Compadres $81,000 $20,400 $31,827 $83,160 Leann s Nails Lendmark Financial Svcs $31,152 $31,200 $31,908 $33,096 SUMMARY Total Annual Income $ 194,112 Projected 2017 $ 197,475 Projected 2018 $ 200,726 Projected 2019 $ 205,462 Purchase Price $3,291,250 Pro Forma Cap Rate 6% (2017) Financing Potential to assume existing $1.2M loan with favorable loan terms. 3

4 Investment Highlights DETAILS TENANT SQ. FT. LEASE TERM CURRENT BASE RENT LEASE TYPE ESCALATIONS OPTIONS Start & End Monthly & Annually NNN PSF Date Monthly Annually A Bath N Biscuit 1,500 12/29/14-09/30/21 $ 1,655 $ 19,860 $ /01/17 $1,700 $20,400 None $1.10 PSF Monthly $ /01/18 $1,748 $20,976 $ /01/19 $1,798 $21,576 $ /01/20 $1,850 $22,200 Windows By 7,200 03/25/15-03/31/20 $ 2,575 $ 30,900 $ /01/17 $2,652 $31,827 Two (2) - Jerico $ /01/18 $2,732 $32,782 Five (5) year $ /01/19 $2,814 $33,765 options w/annual $ /01/20 $2,898 $34,778 3% increases Taqueria Mis 3,000 03/27/06 01/31/26 $ 6,750 $ 81,000 $ /01/19 $6,930 $83,160 None Compadres $ /01/22 $7,080 $84,960 Leann s Nails 1,500 03/01/13 05/31/21 $ 2,596 $ 31,152 $ /01/18 $2,659 $31,908 None $ /01/20 $2,723 $32,676 Lendmark 1,500 06/01/16 05/31/21 $ 2,600 $ 31,200 $ /01/17 $2,758 ANNUAL EXPENSES $33,096 One (1) - Financial Svcs $ /01/18 $2,838 $34,060 Five (5) year $ /01/19 $2,921 $35,053 option w/annual $ /01/20 $3,006 $36,076 3% increases Total 14,700 $16,177 $194,112 $1.10 AVG Projected 2017 $16,456 $197,475 $1.12 AVG Projected 2018 $16,727 $200,727 $1.14 AVG Projected 2019 $17,122 $205,462 $1.16 AVG 4

5 Investment Highlights TENANT OVERVIEW Springleaf Financial was a tenant in the Property since May In May of 2016, Lendmark Financial Services acquired the western operation of Springleaf Financial and immediately negotiated a new five (5) year lease on the premises. The current lease expires May 31, 2021, and the tenant has one (1) five (5) year option to extend the lease. The current rent is $1.73 PSF NNN. The rent increases annually on June 1. Sign rent will be added to the rent effective June 1, 2017 making the effective rental rate approximately $1.84 NNN. On May 2, 2016, Lendmark Financial Services, LLC completed the acquisition of 127 branch offices and related loan assets from Springleaf Financial. Springleaf divested the branches as a condition of its acquisition of OneMain Financial. Lendmark expanded its geographic presence into Arizona, Colorado, Idaho, Ohio, Texas, Washington and California with the transaction and now operates coast-to-coast in 20 states with over 300,000 customers. The acquisition solidifies Lendmark as a leader in the consumer finance industry and supports the company s overall strategy of being the Lender of Choice, Employer of Choice, and Partner of Choice. About Lendmark Financial Services Founded in 1996 and headquartered in Covington, Georgia, Lendmark Financial Services offers personal loans, automobile loans, debt consolidation loans and merchant retail sales financing services. The company has 320 branches and more than 300,000 customers across 20 states. The success of our company is specifically attributable to the quality of our personnel and their commitment to our customers. For more information, contact the corporate office at (678) or visit the company website at 5

Investment Highlights TENANT OVERVIEW Windows by Jerico was established in 1997 and has been located in the Property since 2006.

6 Investment Highlights TENANT OVERVIEW Windows by Jerico was established in 1997 and has been located in the Property since The owner of the business was previously an owner of the Property and occupies 7,200 square feet which includes a large showroom and office and a small warehouse, product staging area. The current rent charged is substantially below market at just $0.35 PSF NNN. This represents great potential for substantial upside to a new investor, if the Property were to be leased to a new tenant at market rents. The current lease expires on March 31, 2020 subject to Tenant not extending the lease under two (2) - five (5) year options to extend. Taqueria Mis Compadres is a locally owned and operated taqueria which has operated at the property since Last year they extended the existing ten (10) year lease for an additional ten (10) year period. They are recognized in the community as a quality, authentic local Mexican Cuisine restauarant, with an excellent eating experience. The current lease expires January 31, 2026 and the current rent is $2.25 PSF NNN. 6

Investment Highlights TENANT OVERVIEW Leann s Nail is a locally owned and operated nail salon which entered a three (3) year lease in March of 2013 and subsequently signed an Amendment in February

7 Investment Highlights TENANT OVERVIEW Leann s Nail is a locally owned and operated nail salon which entered a three (3) year lease in March of 2013 and subsequently signed an Amendment in February 2016 to extend the lease five (5) years and three (3) months. The current rent is $1.73 PSF NNN, including sign rent. Current lease expires May 31, Tenant services include manicures, acrylic nails, glitter/sparkle nails, solar tips, spa paraffin wax pedicures, mask spa pedicures, nail airbrush design, and facial wax. A Bath N Biscuit is a boutique dog grooming and pet spa which initially signed a three (3) year lease in December of The business is led by an executive at Nestle Purina Pet Care who along with the other principles of the business has national show dog experience and has been recognized for their success in national and regional show dog competitions. The business has quickly established itself and its reputation in the community. The ownership is very enthused by the success they have had and recently signed a new five (5) year lease. The current lease expires September 30, 2021, with a current rent of just $1.10 PSF NNN including sign rent. This space is leased below market and represents potential upside to investor. 7

Property Overview PROPERTY CHARACTERISTICS JERICO PLAZA Jerico Plaza is a 14,700 SF multi-tenant NNN leased retail building, offered at a 6.0% Pro Forma Cap Rate with annual increases.

8 Property Overview PROPERTY CHARACTERISTICS JERICO PLAZA Jerico Plaza is a 14,700 SF multi-tenant NNN leased retail building, offered at a 6.0% Pro Forma Cap Rate with annual increases. Very clean property with long-term mix of tenants. Excellent opportunity for local or out-of-the-area investor to benefit from above market cap rate in CA. Excellent NE Modesto location situated across the street from the recently approved The Marketplace neighborhood power center. Expected rents at the power center are $ $2.60 per SF NNN. The area benefits from some of the highest average household incomes in the market ($75,087). Property has excellent visibility along Sylvan Avenue. Other national retailers in the immediate area include CVS, Save Mart, Dollar Tree, Perko's, Burger King, Del Taco, Chevron, and others. Property Type Commercial Property Use Retail Stores Building Size 14,700 SF Lot Size 37,167 SF Year Built 2006 The City of Modesto, is the county seat and largest city of Stanislaus County, California, United States. With a population of approximately 201,165 at the 2010 census, Modesto ranks as the 18th largest city in the state of California. The Modesto Census County Division, which includes the cities of Ceres and Riverbank, has a population of 312,842 as of Modesto is located in the Central Valley, 90 miles (140 km) north of Fresno, 40 miles (64 km) north of Merced, California, 92 miles (148 km) east of San Francisco, 68 miles (109 km) south of the state capital of Sacramento, 66 miles (106 km) west of Yosemite National Park, and 24 miles (39 km) south of Stockton. Modesto has been honored as a Tree City USA numerous times. 8

9 Location Overview REGIONAL MAP

10 Location Overview LOCAL BUSINESSES Jerico Plaza 2101 Sylvan Ave Stop 'n Save Liquors Modesto Gastroenterology Medical Corporation Sylvan Surgery Center 10

LAKE 28,671 *Traffic count projected to increase with establishment of

11 22,709 Multi-Tenant Retail Building For Sale Offering Memorandum Location Overview PROPOSED SITE PLAN / DAILY TRAFFIC COUNT* NARAGHI LAKE 28,671 *Traffic count projected to increase with establishment of new shopping center. Current traffic count retrieved through CoStar 12/1/

12 Additional Photos 12

13 Additional Photos 13

RENT & TI ALLOWANCE FEATURES DETAILS

RENT & TI ALLOWANCE FEATURES DETAILS FEATURES Immediate access to/from Hwy. 99 Proximity to cities in S. San Joaquin County & N. Stanislaus County Excellent signage and visibility from Hwy. 99 Attractive and well maintained property Near