MESA RETAIL OFFERING MEMORANDUM ACTUAL SITE

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1 ACTUAL SITE 350 EAST SOUTHERN AVENUE Represented by: JUSTIN ZAHN 7825 East Gelding Drive, Suite 104 Scottsdale, Arizona x 102 Direct justin@ciadvisor.com OFFERING MEMORANDUM

2 INVESTMENT OVERVIEW NAME LOCATION MAJOR CROSS STREETS 350 East Southern Avenue Mesa, Arizona NWC of Southern Ave & Mesa Dr PURCHASE PRICE $1,855,000 ACTUAL CAP RATE 6.75% ACTUAL OCCUPANCY 100% RENTABLE SQ FT 6,500 PRICE PER SQ FT $ AVERAGE RENT PER SF $21.90 OWNERSHIP Fee Simple YEAR BUILT 2006 INVESTMENT HIGHLIGHTS STRONG TENANCY 100% Occupied Strip Center with Solid Tenant Mix & Rental Escalations HIGH DRIVE-BY VISIBILITY TRAFFIC COUNT Hard Corner Location (Adjacent to Food City Grocery Anchored Retail Center) with Traffic Counts Exceeding 60,380 CPD! LOCATION Conveniently Located.50 Mile from the US-60 Hwy (240,680+ CPD) in a Densely Populated Infill Area 2017 DEMOGRAPHICS (5-MILE RING) Total Population: 415,380 Average Household Income: $67,645 LOT SIZE PARKING LOT ROOF ±0.684 Acre Asphalt Rubber Membrane POINTS OF INTEREST RETAIL SHOPPING Nearby retailers include Family Dollar, Food City, O Reilly Auto Parts, AutoZone 2 miles from Walmart, Costco, WinCo Foods, Fry s Food & Drug, The Home Depot, PetSmart, OfficeMax, Michael s, Conn s Home Plus, AMC Theatres, Old Navy, Ross Dress for Less, Staples, Ulta Beauty, TJ Maxx, HomeGoods, etc. HIGHER EDUCATION 3 miles from Mesa Community College (a community college offering more than 200 degrees, transfer, career & certificate programs with 25,960 students) HEALTH CARE 3.5 miles from Banner Desert Medical Center (a general medical & surgical hospital with 595 beds) S Mesa Dr 33,055 CPD E Southern Ave 27,327 CPD

3 FINANCIAL ANALYSIS SUMMARY PURCHASE PRICE $1,855,000 ACTUAL CAP RATE 6.75% ACTUAL OCCUPANCY 100% RENTABLE SQ FT 6,500 PRICE PER SQ FT $ PROPOSED FINANCING SUMMARY All Cash or Buyer can obtain new financing at Close of Escrow. Loan to Value (70%) Down Payment (30%) Amortization Interest Rate $1,298,500 $556, Years 4.25% For more information, contact Geoffrey D. Harris of CBRE Capital Markets at (602) ANNUALIZED OPERATING DATA INCOME ACTUAL 2017 Gross Rental Income $142,334 Expense Reimbursement $20,847 Gross Annual Income $163,181 EXPENSES Operating Expenses ($36,944) 2017 ANNUALIZED OPERATING EXPENSES Property Taxes $24,642 Insurance $1,311 Building Repairs & Maintenance $1,850 Landscaping & Grounds $1,225 Utilities $5,739 Fire Alarms & Monitoring $2,178 Total Operating Expenses $36,944 Reserves ($0.15 PSF) ($975) Total Expenses ($37,919) NET OPERATING INCOME $125,262

4 RENT ROLL UNIT TENANT SQ. FT. # OF GLA 2017 ANNUAL RENT RENT PSF RENTAL INCREASES TYPE LEASE STARTS LEASE ENDS OPTIONS Auto Now Financial (2) 3, % $95,481 $ % in 09/2018: $98,345 3% in 09/2019: $101,295 Gross 03/08/10 09/15/20 One 5-Year Option H&R Block Enterprise (3) 2, % $32,000 $16.00 In Options NNN 07/22/16 04/30/21 One 5-Year Option Extreme Phone Wireless (3) 1, % $14,853 $ /2018: $15,298 04/2019: $15,757 NNN 01/06/15 05/31/20 One 5-Year Option GRAND TOTAL 6, % $142,334 $21.90 (AVG) Occupied Vacant 6, % 0% $142,334 $0 Tenant Credit Classification: (1) Local, (2) Regional, (3) National

5 AERIAL BANNER DESERT MEDICAL CENTER A GENERAL MEDICAL & SURGICAL HOSPITAL W/ 595 BEDS MESA COMMUNITY COLLEGE A COMMUNITY COLLEGE OFFERING MORE THAN 200 DEGREES, TRANSFER, CAREER & CERTIFICATE PROGRAMS WITH 25,960 STUDENTS) HOLMES ELEMENTARY E Southern Ave 27,327 CPD S Mesa Dr 33,055 CPD 240,680 CPD FIESTA MALL THE NEW OWNERS PLANNING TO TURN THIS SHOPPING CENTER INTO A MEDICAL & HIGHER EDUCATION CAMPUS INCLUDING OFFICE SPACE, DINING & ENTERTAINMENT AREAS ALONG WITH A HOUSING COMPONENT (SEE PRESS RELEASE) DOBSON RANCH GOLF COURSE KOKOPELLI GOLF CLUB

6 LOCATION OVERVIEW Mesa is a city in Arizona s Maricopa, County, a suburb located about 20 miles east of Phoenix. Mesa is the central city of the East Valley section of the Phoenix Metro Area bordered by Tempe on the west, the Salt River Pima-Maricopa Indian Community on the north, Chandler & Gilbert on the south along with Queen Creek & Apache Junction on the east. Mesa is the third-largest city in Arizona, after Phoenix & Tucson, and the 38 th -largest city in the U.S. Mesa is home to Mesa Community College, the largest of the Maricopa Community Colleges, which enrolls 25,960 full and part-time students. The Polytechnic Campus of Arizona State University lies in southeast Mesa. This satellite campus enrolls over 6,000 undergraduate and graduate students in scientific and engineering fields. A.T. Still University operates an Osteopathic Medical School in Mesa. The aviation school CAE Global Academy Phoenix is located in Mesa. Falcon Field, located in the northeastern part of the area, was established as a training field for British RAF pilots during World War II and was transferred to the city at the end of the war. Falcon Field has 605 aircraft based there. Boeing builds the AH- 64 Apache attack helicopter at a facility adjoining Falcon Field. MESA S TOP 5 EMPLOYERS: Banner Health System 9,573 employees Mesa Public Schools 8,500 employees Boeing 4,700 employees City of Mesa 3,545 employees Walmart 2,507 employees 2017 DEMOGRAPHICS 1-MI 3-MI 5-MI TOTAL POPULATION 19, , ,380 POP GROWTH % 8.70% 8.96% 2017 DAYTIME POPULATION 15, , ,061 HH GROWTH % 8.50% 8.73% 2017 AVG HH INCOME $45,471 $54,593 $67,645

7 PRESS RELEASE Developer buys Mesa's Fiesta Mall, plans makeover into health, education campus Fiesta Mall in Mesa, once a giant in the southeast Valley shopping scene, has been sold to a duo of developers who plan to transform the withering mall into a campus focused on health and education. The sale price was $6.72 million. New owners Dimension Financial & Realty Investments Inc., spearheaded by Jerry Tokoph and Wayne Howard, intend to spend as much as $30 million on the makeover. The company paid cash for the 380,000 square foot mall. The seller was LNR Properties LLC, a Florida based firm that took over the property in 2013 from mall operator Macerich, which bought it in "We want to re create the space into a campus environment primarily for community colleges and for profit schools," said Ray Cashen of Cashen Realty Advisors. Areas will be designed for medical learning centers and colleges, he said. Housing, eating and entertainment venues also are planned. Cashen brokered the deal for Dimension Financial and will be marketing the project. What the sale entails This sale includes the majority of the interior portion of Fiesta Mall but does not include the Sears, Dillard's, the former Macy's and recently closed Best Buy/Dick's Sporting Goods buildings. Developer Scott Jackson owns the Macy's and Best Buy/Dick's buildings. Sears and Dillard's clearance center are owned by those retailers. Jackson, who is redeveloping his buildings as office or mixed use space, said he was not yet aware of the new mall owner's plans or how his ventures will fit into them. He said he did not bid on the mall, which opened in October Cashen said the mall property that was sold to Dimension Financial has a few retail tenants left, but they have short term leases that won't be renewed. The revamped Fiesta Mall is expected to open next year, Cashen said. "Fiesta Mall will be one of the biggest adaptive reuse projects in metro Phoenix," he said. Mesa Fiesta Corporate Center, a property just east of the mall, also is currently owned by the principals. It will be bridged into the mall and become part of the main campus, Cashen said. The 1.15 square miles surrounding Fiesta Mall, known as the Fiesta District, is one of Mesa's key economic development corridors. In a statement, Mayor John Giles said, "Fiesta Mall is in the heart of the Fiesta District and I am excited to welcome DFRI to the team of developers working to revitalize one of Mesa s greatest assets." By: Jessica Boehm & Catherine Reagor May 18, 2017

8 CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commercial Investment Advisors, Inc. and should not be made available to any other person or entity without the written consent of Commercial Investment Advisors, Inc. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Commercial Investment Advisors, Inc. has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. Any projections, opinions, assumptions or estimates used in the Marketing Brochures are for example only and do not represent the current or future performance of any property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Commercial Investment Advisors, Inc. has not verified, and will not verify, any of the information contained herein, nor has Commercial Investment Advisors, Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Like all real estate investments, all of these investment carries significant risks. Purchaser and Purchaser s legal and financial advisors must request and carefully review all legal and financial documents related to the properties and tenants. While the tenant s past performance at these locations or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Purchaser is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Purchaser may be able to negotiate with a potential replacement tenant considering the location of the property, and Purchaser s legal ability to makealternateuseof the property. All potential buyers must take appropriate measures to verify all of the information set forth herein. BY ACCEPTING THIS MARKETING BROCHURE YOU AGREE TO RELEASE CIA BROKERAGE COMPANY/ HOLD IT HARMLESS FROM ANY KIND OF CLAIM, COST, EXPENSE, OR LIABILITY ARISING OUT OF YOUR INVESTIGATION AND/OR PURCHASE OF ANY PROPERTY. FOR MORE INFORMATION: JUSTIN ZAHN Vice President O x 102 C justin@ciadvisor.com