Shops at mangrove. northern ca shopping center at major intersection Gregg Steele [415] CA DRE#:

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1 Shops at mangrove northern ca shopping center at major intersection Gregg Steele [415] CA DRE#: Zeb Ripple [415] CA DRE#: Mangrove Avenue, Chico, CA Chris Kostanecki [415] Chris Peters [415] CA DRE#: CA DRE#:

2 PRICE.... $4,800,000 CAP RATE % PRICE PER SQ FT...$ RENTABLE SF...19,531 SF LAND AREA Acres YEAR BUILT Investment Highlights Representative Photos NORTHERN CALIFORNIA CENTER LOCATED AT MAJOR INTERSECTION The Shops at Mangrove are located at the intersection of Mangrove & Vallombrosa Avenues, one of the most well known and major intersections in Chico. Immediately across the street from a Safeway anchored center and high grossing Chipotle. Cal State Chico with approximately 16,000 students, Chico High School and Chico Junior High School are located within 1 mile. INVESTMENT HIGHLIGHTS > Anchored by T-Mobile, Jersey Mike s and Massage Envy > T-Mobile exercised their first option and remodeled their store > Newer leases with Jersey Mike s and Massage Envy > Sustainable market rents > Combination of national and local tenants > One fee parcel and one leasehold parcel LOCATION & PROPERTY HIGHLIGHTS > Nearby tenants include Safeway, Rite Aid and Chipotle > Highly visible hard corner at Mangrove & Vallombrosa > Signalized intersection > High traffic corridor with a combined traffic count of 35,979 ADT > Dense population with approximately 16,000 people within 1 mile > Major corridor connecting Hwy 99 to downtown & Chico State > Architecturally enhanced quality construction built in 2007 SHOPS AT MANGROVE 2

3 Income & Expense Actual Price: $4,800,000 Proposed loan Capitalization Rate: 8.08% Proposed loan amount $3,120,000 Price Per Square Foot: $ Interest Rate 5.00% Down Payment 35% $1,680,000 Amortization 25 Year Loan Amount 65% $3,120,000 Due date 10 Year Total Leased (SF): 83.83% 16,372 Annual Debt Service $218,871 Total Vacant (SF):* 16.17% 3,159 Monthly Debt Service $18,239 Total Rentable Area (SF): 19,531 Pre-Tax Cash Flow $168,965 INCOME Per Square Foot Debt Coverage Ratio 1.77 Scheduled Rent* $25.39 $495,813 Cash on Cash 10.06% Estimated CAM/Tax Recovery $4.32 $84,360 Principal Paydown (Year 1) $64,331 EFFECTIVE GROSS INCOME $580,173 Total Return $233,296 ADJUSTED GROSS INCOME $580,173 EXPENSES Per Square Foot Land Lease** ($87,360) Property Taxes (1.1%) -$2.70 ($52,800) Ins-Property & Liability -$0.65 ($12,648) CAM -$1.69 ($33,011) Management -$0.23 ($4,566) Capital Reserves ($0.10/sf) -$0.10 ($1,953) TOTAL OPERATING EXPENSES -$2.67 ($192,338) NET OPERATING INCOME $387,835 *Landlord will Guarantee Rent for one Year on vacant $1.75 psf monthly **Land Lease includes Retail 2 & 3 only. Retail 1 is separate Fee parcel Land Lease Terms: 30 year term + 3 five (5) year options. 12% increase every 5 years CASH FLOW &PROPOSED DEBT Yield 13.89% This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SHOPS AT MANGROVE 3

4 Rent Roll Trade Name Unit # Sq. Ft. Percent of GLA Lease Start Lease Expiration Monthly Base Rent Monthly Rent/SF Annual Rent/SF Annual Rent Options Gen Kai* 180 & 190 3, % 6/11/2010 6/11/2015 $6, $1.84 $22.05 $78, Two (5) year FMV Vacant** 170 1, % TBD TBD $2, $1.75 $21.00 $29, Jersey Mike's 160 1, % 9/11/2013 1/11/2024 $3, $2.15 $25.81 $46, Increase 6/1/2015 6/1/2017 $4, $2.58 $31.02 $55, Two (5) year FMV T-Mobile 140 & 150 2, % 2/11/2007 2/11/2017 $10, $3.66 $43.92 $126, Three (5) year options Noodle House 130 1, % 11/19/ /1/2014 $3, $1.82 $21.82 $38, One (3) year option w 2.5% annual increase Uswirl 125 2, % 4/1/2011 4/2/2016 $4, $2.15 $25.80 $51, (5) year options w/3% increases Jerseys 120 1, % 10/1/ /1/2018 $2, $1.95 $23.40 $35, (5) year FMV Massage Envy 110 2, % 9/1/2013 9/1/2023 $4, $1.54 $18.48 $53, Two five (5) year FMV Vacant** 100 1, % TBD TBD $3, $1.75 $21.00 $36, *Gross Rent Current Totals: 19, % Monthly Rent $41, Annual Rent $495, Occupied 16, % Vacant 3, % **Seller will Guarantee Rent & CAM for one year on vacant space This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SHOPS AT MANGROVE 4

5 Hooker Oak Elementary 99 nue Ave ILY ove DA ngr 9 Ma 7,97 Oakdale Alternative School ek r Cre 1 SHOPS AT MANGROVE a lan Esp de JERSEY S CLIPS AND BREWS GEN KAI NOODLE HOUSE 32 Dee way High Marsh Jr. High School nue Ave Y a IL os CHICO MALL A br lom 0D 0 Val 0 18, 32 rd 99 Av e CHICO CROSSROADS nu e et tre Notre Dame Catholic School et re t hs Rosedale Elementary W 32 8t W 9th St r t ee E Pa rk Av e hs 20t nu e Forest Avenue No PHEASANT RUN PLAZA ir Fa et re St on Ro ad Skyway Road Dayt SACRAMENTO 99 SHOPS AT MANGROVE 5

6 o ett e m l u Pa ven A SHOPS AT MANGROVE Mangrove Avenue 17,979 DAILY JERSEY S CLIPS AND BREWS GEN KAI NOODLE HOUSE nue e v aa ros AILY b lom 0D Val 18,00 99 SACRAMENTO Memorial Way ne Pi et re St Cypress Street SHOPS AT MANGROVE 6

7 Site Plan VACANT FEE PARCEL JERSEY S CLIPS AND BREWS EASEMENT NOODLE HOUSE Mangrove Avenue LEASEHOLD PARCEL GEN KAI VACANT Vallombrosa Avenue BIDWELL PARK SHOPS AT MANGROVE 7

8 Photos SHOPS AT MANGROVE 8

9 Photos SHOPS AT MANGROVE 9

10 Tenants Gen Kai Japanese Restaurant T-Mobile USA is a national provider of wireless voice, messaging, and data services capable of reaching over 293 million Americans and approximately 38,000 employees. T- Mobile US, Inc. (NYSE: TMUS ) is a publicly traded company. Deutsche Telekom AG (OTC- QX: DTEGY ) maintains a 67% ownership of T-Mobile US, Inc. common stock. Deutsche Telekom is one of the largest telecommunications companies in the world, with nearly 130 million customers worldwide. Jersey Mike s Subs is a submarine sandwich, or sub, chain headquartered in Manasquan, New Jersey. The Jersey Mike s franchise has more than 750 locations open and in development across the United States. The menu includes 5, 7 and subs (hot and cold), as well as wraps, kids meals, and salads. Gen Kai Japanese Restaurant Gen Kai has been proudly serving the Chico area for over 25 years. Specializing in traditional Japanese cuisine, they serve only the freshest seafood, meats and local vegetables. They offer an extensive menu with authentic Japanese dishes featuring tempura, beef teriyaki, sesame chicken and nabeyaki udon, as well as a full service bar. U-SWIRL allows guests the ultimate choice in frozen yogurt by providing up to 20 non-fat flavors, including tart, traditional and no-sugar options; and more than 60 toppings, including seasonal fresh fruit, sauces, candy and granola. Guests serve themselves and pay per ounce instead of by the cup size. U-SWIRL will even help plan and play host to children s birthday parties and other special occasions. Massage Envy Spa is the pioneer and national leader of affordable massage and spa services. Nearly a decade ago, Massage Envy Spa was launched to create a completely new category in the wellness industry. Today, there are over 900 Massage Envy Spa locations in the United States. SHOPS AT MANGROVE 10

11 Regional Map SHOPS AT MANGROVE Aspen SHOPS AT MANGROVE 11

12 Chico, CA The City of Chico has grown to over 33 square miles with a population of 87,670 in the incorporated area and a greater urbanized area population of approximately 100,000. Chico is located in the Northern Sacramento Valley of California, ninety miles north of Sacramento on Highway 99, in Butte County, east of Interstate 5. The city is bisected by Bidwell Park, which runs five miles (8 km) from the city center to the crest of the Sierra Nevada range. Chico is the economic center of the Northern Sacramento Valley with much of Chico s economy is powered by the California State University, Chico. Agriculture is also a significant part of the economy. Almonds, rice, olives, kiwis, peaches and plums are the major crops. Chico s downtown is a thriving area for unique, independent retail shops and restaurants. Farmers markets attract crowds on Saturday mornings and Thursday evenings. Additionally, the City Plaza in downtown Chico hosts free concerts regularly during the summer. Demographics Population 1 Mile 3 Miles 5 Miles 2010 Population 15,864 88,067 99, Population 15,594 88,153 99, Population (Projection) 15,463 89, , Income 2013 Average Household Income $48,671 $56,933 $60, Median Household Income $35,077 $40,507 $42,633 Copyright 2014 [Capital Pacific Real Estate Brokerage Company] Top Employers in Chico Employer # of Employee (Approx.) Enloe Medical Center 2,275 California State University, Chico 1,825 Chico Unified School District 1,400 Wal-Mart 400 City of Chico 393 SHOPS AT MANGROVE 12