Z MARCUS & MILLICHAP West Los Angeles West Olympic Boulevard Suite 350 Los Angeles, CA Main: (310)

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1 22 Year Absolute Net Lease 21.8 Years Remaining On Initial Lease 10% Rental Increases Every Five Years with 5 (5)-Year Options Located On A Signalized Hard Corner (32,045 VPD) Located Just One Block Away From The I-210 Freeway (181,000 VPD) Excellent Azusa Location Ideal 1031 Exchange Opportunity Tenant Plans To Remove The Auto Service Component On The Subject Property And Develop It Into A 1,200 Square Foot Convenience Store.

2 NON-ENDORSEMENTS Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Z DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. MARCUS & MILLICHAP West Los Angeles West Olympic Boulevard Suite 350 Los Angeles, CA Main: (310)

3 General Information Tenant Name Veer Crude Partners Inc. The tenant and guarantor on the lease is a successful, long-term regional operator with 10 locations currently and more in development. Additionally, a personal guaranty will be provided from the operator with an approximate net worth of $15MM. Headquartered Hawthorne, CA Rentable Square Feet 1,189 SF Percentage of RBA % Lease Commencement 10/25/2017 Lease Expiration 10/31/2039 No. of Locations 10 A r c o S. A z u s a A v e A z u s a, C A

4 INVESTMENT OVERVIEW This investment offering features an Absolute Net, Arco Gas Station located in Azusa, CA. The subject is situated on a.31 acre of land and features a convenience store, water & air station, and Eight gas pumps. It is located on S. Azusa Ave, and W. Paramount St with daily traffic counts of approximately 32,045 vehicles per day. One block south of the site, Edgewood Shopping Center sits other national tenants such as Sketchers, Family Dollar, & Rite-Aid. Less than a mile of the subject property are Paramount Elementary School, Azusa Hispanic Foursquare Church, Tribeca Apartment Homes, & Christbridge Academy. This gas station is located one block south off the I-210 Azusa East off-ramp exit. Interstate 210, consists of the contiguous segments of Interstate 210 (I-210) and State Route 210 (SR- 210) forming the Foothill Freeway, is a major east-west state highway in the Greater Los Angeles area of the U.S. state of California. INVESTMENT HIGHLIGHTS 22 Year Absolute Net Lease with 21.8 Years Remaining on Initial Lease 10% Rental Increases Every Five-Years with 5 (5)-Year Options Site Features Convenience Store, Water & Air Station,& Eight Gas Pumps Ideal 1031 Exchange Opportunity Located on A Signalized Hard Corner (32,045+ VPD) Excellent Azusa Location ; Located Just One Block Away from The I-210 Freeway (181,000 VPD) Tenant plans to remove the auto service component on the subject property and develop it into a 1,200 square foot Convenience Store. Located in the eastern part of Los Angeles County, Azusa also known as "The Canyon City" is a beautiful city boasting over a 30-miles radius. The population has risen over the years to a total of 51,365 in Azusa is located along historic Route 66, which passes through the city on Foothill Boulevard and Alosta Avenue and on the east side of the San Gabriel River. There are a total of twenty schools in the city of Azusa consisting of twelve Kindergartens to two Universities. The city is accessible to a number of major highways in California from the I-210, I-605, Orange Freeway (State Route 57), Azusa Ave (State Route 39). # A r c o S. A z u s a A v e A z u s a, C A

5 P R O P E R T Y P H O T O S 125 A r c o S. A z u s a A v e A z u s a, C A

6 L O C A T I O N O V E R V I E W The City Of Azusa Azusa is a city in the San Gabriel Valley, at the foot of the San Gabriel Mountains in Los Angeles County, California, United States. The A on the San Gabriel Mountains represents the city of Azusa, and can be seen within a 30-mile radius. Azusa is located along historic Route 66, which passes through the city on Foothill Boulevard and Alosta Avenue. Situated at the base of the San Gabriel Mountains, it has nearly 50,000 residents and is home to Azusa Pacific University. The pristine areas of river flood plain create corridors of wetlands for wildlife and fish, including steelhead trout. Tributary streams are lined with willow, cottonwood, sycamore and alders. Higher up are mountain forests, home to bobcats, mountain lions and bears. This not only provides a diverse and spectacular backdrop to the city, but a destination for recreation, mountain biking, hiking and fishing. Azusa is home to Azusa Pacific University. Situated on 52 acres, East Campus is home to the College of Liberal Arts and Sciences and the schools of Business and Management and Music, and houses administrative facilities, classrooms, residence halls, a library, student center, and gymnasium. Founded 1887 Incorporated December 29, 1898 Population 49,600+ Major Employees Website Azusa University, Azusa United School District, Northtrop Grumman 6 A r c o S. A z u s a A v e A z u s a, C A

7 O F F E R I N G S U M M A R Y T H E O F F E R I N G P R O P E R T Y OFFERING SUMMARY D A T A Property Arco Year Built 1964 Property Address 295 S. Azusa Ave. Azusa, CA Gross Leasable Area Lot Size 1,189 SF 0.31Acres APN Price $3,456,000 CAP Rate 6.25% Price/SF $2, Property Subtype Tenant Rent Increases Guarantor Lease Type L E A S E Zoning Type of Ownership NOI S U M M A R Y AZC2YY Fee Simple $216,000/Year Net Leased Auto Service Gas/Convenience Arco Five 10% Every Five-Years Thereafter Commencing November 1, 2022 Franchisee Guarantee with Additional Personal Guarantee Absolute Net Lease Commencement October 25, 2017 Lease Expiration October 31, 2039 Initial Term 22 Years Term Remaining on Lease(Years) 21.8 Renewal Options Five, Five-Year Options Tenant Responsibility Right of First Refusal/Offer Real Estate Taxes & Utilities # None A r c o S. A z u s a A v e A z u s a, C A

8 O F F E R I N G S U M M A R Y OFFERING SUMMARY R E N T S C H E D U L E Y E A R A N N U A L R E N T M O N T H L Y R E N T R E N T / S F / Y E A R R E N T / S F / M O N T H C A P R A T E Current-October 31 st, 2022 $216,000 $18,000 $ $ % November 1, 2022 $237,600 $19,800 $ $ % November 1, 2027 $261,360 $21,780 $ $ % November 1, 2032 $287,496 $23,958 $ $ % November 1, 2037 $316,248 $26,354 $ $ % November 1, 2042 $347,868 $28,989 $ $ % A r c o S. A z u s a A v e A z u s a, C A #

9 L O C A T I O N O V E R V I E W A r c o S A z u s a A v e A z u s a, C A

10 L O C A T I O N O V E R V I E W Paramount Elementary School E Paramount St & N Azusa Ave 32,045 VPD I-210 E/W 181,001 VPD A r c o S A z u s a A v e A z u s a, C A

11 D E M O G R A P H I C S CREATED ON January 26, 2018 MARKETING TEAM 1 Miles 3 Miles 5 Miles POPULATION 2022 Projection 34, , , Estimate 34, , , Census 33, , , Census 21, , ,968 INCOME Average $64,282 $77,780 $87,056 Median $52,318 $62,481 $66,863 Per Capita $15,266 $23,582 $25,957 HOUSEHOLDS 2022 Projection 8,391 50, , Estimate 8,238 49, , Census 7,834 47, , Census 7,655 46, ,370 HOUSING 2016 $338,021 $387,984 $374,021 EMPLOYMENT In 2017, there are 7,033 in this area (Daytime Population) The 2000 Census revealed that 40.17% employees are employed in white-collar occupations and 59.98% are employed in blue-collar occupations. The average time traveled to work was minutes. Source: 2015 Experian RACE & ETHNICITY White 52.88% Native American 0.11% African American 2.15% Asian/Pacific Islander 6.65% Hispanic 83.17%

12 NON-ENDORSEMENTS Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this 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, Buyer 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 Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. M A R C U S & M I L L I C H A P West Los Angeles West Olympic Boulevard Suite 350 Los Angeles, CA Main: (310) Z By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.