SANTA MARIA PROPERTY FOR SALE

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1 SANTA MARIA PROPERTY FOR SALE N Broadway Santa Maria, CA Price: $3,750,000 Cap Rate: 6.94% Building Size: 19,099sf plus 422sf mezzanine Land Size: 2.15 acres Parking Spaces: % Leased Until 8/31/2024 Long Term NNN Leases 3% Annual Rent Increases Minimal Management Required High Yield Coastal California Investment Opportunity The information contained herein has been secured from sources we believe reliable, but we make no warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

2 INVESTMENT SUMMARY Ow Commercial and Bailey Properties are pleased to present N Broadway in Santa Maria for sale. The property features an approximately 19,099 square foot commercial building (with additional 422 square foot mezzanine) on an approximately 2.15 acre land parcel. This is a rare opportunity for investors to acquire a prime Santa Maria commercial property that is fully leased to two seasoned tenants, with a strong and stable income stream and NNN lease structures; the tenants have invested a substantial sum of money into their tenant improvements and have a successful operating history at the building. INVESTMENT HIGHLIGHTS Santa Maria Investment Opportunity - Rare opportunity for investors to acquire an attractive and stable investment property in Santa Maria (Santa Barbara County). Passive NNN Investment The fully leased property and NNN lease structure requires minimal property management. Stable Tenants The tenants have invested many hundreds of thousands of dollars into their spaces thereby increasing the likelihood that they will exercise their 10 year lease extension options in % Leased The property is 100% leased to established tenants on long term NNN leases with attractive annual rent increases. Rent Increases - The leases provide for an attractive inflation hedge with annual rent increases equal to the greater of CPI or 3%. Convenient Access The property is well located in Santa Maria, along N Broadway, with easy access to Highway 101 and excellent ingress and egress. Visibility - The property enjoys excellent frontage along N Broadway and features prominent building marquee signage. High Traffic Thoroughfare The property is located on heavily trafficked N Broadway (over 20,000 ADT) and W Donovan (almost 14,000 ADT). Demographics Santa Maria is the largest City by population in Santa Barbara County. The City had a population of 104,404 and a median household income of $53,066 as of January 1, 2016, with expected 7% population growth by 2021 (outpacing the growth statewide).

3 PROPERTY DETAILS 1617 N Broadway Approximately 4,785 square feet of fully built-out and highly efficient Laundromat space. The space is leased to and personally guaranteed by Carlos Castaneda, Patrick James Kimbell and Francisco Sanchez. The lease runs until August 31, The Tenant has one 10 year option to extend the lease, subject to the Tenant also exercising its coterminous 10 year option on the adjacent space. Current base rent is $5,432/sf/mo/NNN. There are annual rent increases equal to the greater of CPI or 3% on March 1st. The Tenant is responsible for reimbursing the Landlord for its pro-rata share of property taxes, insurance, and common area maintenance N Broadway Approximately 14,314 square feet of retail space currently configured as a successful mini-mall full of thriving small business retailers and service providers. The space is leased to and personally guaranteed by Carlos Castaneda, Patrick James Kimbell and Francisco Sanchez. The lease runs until August 31, The Tenant has one 10 year option to extend the lease. Current rent base rent is $15,524/sf/mo/NNN. There are annual rent increases equal to the greater of CPI or 3% on December 1st. The Tenant is responsible for reimbursing the Landlord for its pro-rata share of property taxes, insurance, and common area maintenance. Fireworks Stand Lease A portion of the parking lot adjacent to N Broadway that equates to approximately 7 parking spaces is leased to TNT Fireworks from June 28th to July 4th in 2018, 2019, and Annual rent is $3,000. Investment Years Annual Rent Cap Rate 1 $260,270/NNN* 6.94% 2 $267,988/NNN* 7.15% 3 $275,938/NNN* 7.36% 4 $284,126/NNN* 7.58% 5 $292,560/NNN* 7.80% 6 $301,246/NNN* 8.03% Asking Price: $3,750,000 ~ 6.94% Cap Rate* *assuming 10/1/18 close date and that TNT Fireworks extends its lease for $3,000/year after 2020

4 AERIAL PHOTO 2 The property enjoys a highly visible location with pylon signage along the heavily trafficked (over 20,000 ADT) N Broadway retail corridor in Santa Maria, with close proximity to Highway 101. The property is surrounded by other national tenants such as 99 Cent Only, Dollar Tree, Best Western Plus, Blaze Pizza, Starbucks, AutoZone, O Reilly Auto, 7-Eleven, Subway, Del Taco, Burger King, Chase Bank, CVS, FoodMaxx, Vallarta Supermarkets, Verizon, Chevron, Arco, Fairfield Inn, Holiday Inn, Harley Davidson, and MetroPCS.

5 TENANT INFORMATION La Chiquita Laundromat has been successfully operating and generating high sales since 2005 when the operators invested a large sum of money to transform a traditional commercial space into a highly efficient and Laundromat business. Area demographics benefit the business and this facility is heavily trafficked by customers throughout the day and evening. The large investment in tenant improvements and successful business operation make it likely that the tenant will exercise its 10 year extension option from 9/1/24 to 8/31/34. The La Ciquita Laundromat space is leased to and personally guaranteed by Carlos Castaneda, Patrick James Kimbell and Francisco Sanchez. La Fiesta Super Mall has been operating as a bustling mini mall since 2014 when the tenant invested a substantial sum of money into the tenant improvements. This business is modeled after famous mercados throughout the world and is comprised of numerous small retailers and service providers that together offer an inviting and appealing atmosphere and shopping experience to both local and regional customers. The business model offers great income diversification to the Tenant and income security to the Landlord. The La Fiesta Super Mall space is leased to and personally guaranteed by Carlos Castaneda, Patrick James Kimbell and Francisco Sanchez.

6 PROPERTY PHOTOS View of 1911 Soquel Avenue and 1915 Soquel Avenue from Soquel Avenue

7 PROPERTY PHOTOS Exterior of La Chiqueta Laundromat and Parking Lot Interior of La Chiqueta Laundromat in which the tenant invested hundreds of thousands of dollars on the tenant improvements

8 PROPERTY PHOTOS Exterior of La Fiesta Super Mall Interior of La Fiesta Super Mall Small and successful retailers offer a variety of goods and services for sale

9 PARCEL MAP

10 REGIONAL MAP The property is well located on the primary commercial thoroughfare (N Broadway) in Santa Maria and surrounding by prominent national retailers. Santa Maria is a dynamic and inviting City that is a mere 31 miles south of San Luis Obispo, 19 miles south of Pismo Beach, 64 miles north of Santa Barbara, 159 miles north of Los Angeles, and 123 miles west of Bakersfield.

11 DEMOGRAPHICS AND TRAFFIC COUNTS

12 SANTA MARIA MARKET PROFILE SANTA MARIA Santa Maria is a city near the Southern California coast in Santa Barbara County. It is approximately 31 miles south of San Luis Obispo, 64 miles north of Santa Barbara, and 150 miles northwest of downtown Los Angeles. Its estimated population of approximately 104,404 in 2016 makes it the most populous city in the county and the Santa Maria-Santa Barbara Metro Area (population 444,769). The City population grew 27 percent from 2000 to 2010 and is forecast to grow 7% from 2016 to Santa Maria has a diverse economy based on agriculture, commercial, and manufacturing, in addition to education, health care, tourism, oil production, and government. Agriculture has always been significant to Santa Maria; Santa Maria Valley farms and ranches crop production value is over $1.4B. Over the past few years the City has experienced positive trends in most economic segments led by consumer spending, construction spending, and increased property values. Retail vacancy rates are at all time lows in the market, approximately 3%-4%. Major employers in the area are: Vandenberg Air Force Base, Zodiac Aerospace, Marian Regional Medical Center, Santa Maria-Bonita School District, Allan Hancock College, Windset Farms, City of Santa Maria, Wal-Mart, Agro-Jal Farms, Vocational Training Center. Sunset Magazine called Santa Maria The West s Best BBQ Town and Forbes magazine declared Santa Maria/Santa Barbara as the 12th Happiest City in America due to walkable streets, beach and mountain views, and a Mediterranean climate that make the American Riviera a Pacific Coast gem.