A 100% OCCUPIED, MARKET-LEADING 292,470 SF GROCERY ANCHORED RETAIL CENTER IN SOUTHERN CALIFORNIA

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1 A 100% OCCUPIED, MARKET-LEADING 292,470 SF GROCERY ANCHORED RETAIL CENTER IN SOUTHERN CALIFORNIA Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number ( HFF )

2 MA RG A 0 2, (5 EDWARDS THEATER T ES CH PROMENADE TEMECULA IN W D) 0 TO 2 5 I-1 (1 0,0 77 VP YNE Z RD (39, 200 VPD ) (3 1, ) PD V RD RD 00 ER RIT A 0 00 D) VP JAMES L. DAY MIDDLE SCHOOL

3 THE OPPORTUNITY As exclusive advisor, HFF is pleased to offer the opportunity to acquire The Commons at Temecula (the Property ), a 292,470 square-foot marketleading retail center located in the affluent Southern California community of Temecula, CA. The Commons at Temecula is anchored by a premier lineup of national retailers, including Nordstrom Rack, Buy Buy Baby, Cost Plus World Market, Ulta, Petco, DSW, Total Wine & More, and the specialty grocer Organic Roots. Prominently located at one of the city s busiest intersections along Hwy 79 and adjacent to the highly successful Promenade Temecula (1.1MM SF mall), the Property benefits from an ideal location at the heart of Temecula s primary retail node. This outstanding mall-peripheral location commands exposure and visibility to over 52,000 vehicles per day. The Commons at Temecula offers investors the opportunity to acquire a best-in-class, dominant retail center with embedded NOI growth in a highly desirable Southern California location. PROPERTY SUMMARY Price: Address: Best Offer Winchester Road Temecula, California Occupancy: 100% GLA: Site Size: Parking: 292,470 square feet acres 1,406 spaces (4.80 per 1,000 SF) Year Built:

4 INVESTMENT HIGHLIGHTS RARE TROPHY OFFERING Exceptionally rare opportunity to acquire a dominant Southern California regional center anchored by top-notch national retailers and a specialty grocer. The Property is an institutionally owned asset that is surrounded by other Institutional and REIT owners. PREMIER NATIONAL TENANT LINEUP The Commons at Temecula features a who s who lineup of today s most popular national retailers. SECURE CASH FLOW WITH NOI GROWTH The Property provides stable, low risk cash flow with over 90% of the GLA occupied by national tenants. In addition, the property offers significant income growth opportunity as in-place anchor rents are more than 30% below market with strong retailer demand for these spaces. TOP TIER TENANCY AND RETENTION Eight tenants, totaling over 44% of the GLA have been in occupancy at the center for ten years or longer. This longevity combined with the quality of new tenants that have been attracted to the center demonstrates the desirability of this location for tenants as a premier retail destination. 4

5 90% OF GLA OCCUPIED BY NATIONAL RETAILERS 5

6 HIGH-PROFILE LOCATION IN PRIMARY RETAIL NODE Ideally situated at one of Temecula s busiest intersections, the Property enjoys a prominent location at the heart of the trade area s primary retail corridor. With extensive frontage on Winchester Rd (52,000 vpd) and easy access to Interstate 15 (177,000 vpd), The Commons at Temecula enjoys a best-in-class retail location adjacent to the top performing mall in the trade area Promenade Temecula (1.1M SF mall owned by Forest City). TEMECULA DEMAND DRIVERS 24 MILLION MILLION VISITORS 1 $696 MILLION HOTEL GUESTS A YEAR TRAVEL SPENDING DENSE, AFFLUENT, AND GROWING TRADE AREA The Property boasts exceptional demographics with average incomes in excess of $87,000 in a one mile radius and a population of more than 189,000 within a five mile radius. Temecula s high quality of life, excellent school system, convenient location between employment centers in Orange County and San Diego, and affordable luxury housing stock continue to attract new residents, making it one of the fastest growing communities in Southern California as demonstrated by the projected population growth rate of 8%+ over the next five years. TRADE AREA DEMOGRAPHICS 1-MILE 3-MILE 5-MILE 2017 Population 13,195 94, , Population 157.1% 93.2% 99.4% Growth Avg. HH Income $87,001 $86,553 $92,186 6

7 TEMECULA OVERVIEW Temecula is famous for its world class wineries, beautiful scenery, renowned golf courses and California s largest casino, the Pechanga Resort and Casino. Recognized as one of California s most active wine regions, the Temecula Valley is home to more than 1,300 production acres and more than 30 vineyards, many of which offer on-site restaurants and tasting rooms. The City of Temecula boasts an average household income in excess of $95,000, significantly above national averages. The area is home to a growing cluster of prominent medical distribution/supply and biotech companies that have been attracted to the community s highly skilled labor force and exceptional quality of life. The top notch school systems, attractive lifestyle, close proximity to San Diego, Los Angeles and Orange Counties, and availability of quality housing that is affordable relative to coastal markets has made Temecula one of the fastest growing cities in Southern California. 7

8 TENANT ROSTER SUITE TENANT SF 001 Rock N Jennys 2, Leslie's Swimming Pool 3, FreeBirds World Burrito 2, Five Guys 3, Total Wine 22, A DSW 19, buybuy Baby 28, Office Depot 25, Nordstrom Rack 35, Cost Plus World Market 18, Organic Roots Inc. 18, Jo Ann Fabrics 35, A Ulta 11, GameStop 1, SoCal Games 3, Banner Mattress 5, Petco 15, Pacific Sales 28, Party City 12,000 TOTAL 292,470 8

9 SITE PLAN MARGARITA ROAD (31,000 VPD) A WINCHESTER ROAD (52,000 VPD) 10 VERDES LANE A RING ROAD PROMENADE TEMECULA 1.1M SF REGIONAL MALL 9

10 INVESTMENT SALES ADVISORS DEBT ADVISOR BRYAN LEY Managing Director CA Lic# tel GLEB LVOVICH Managing Director CA Lic. # tel glvovich@hfflp.com JUSTIN KUNDRAK Director CA Lic # tel jkundrak@hfflp.com KEVIN MACKENZIE Senior Managing Director CA Lic. # tel kmackenzie@hfflp.com Constellation Blvd Suite 1000 Los Angeles, CA Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses, and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 10