OFFERING MEMORANDUM LAKESHORE DRIVE STRIP LAKESHORE DRIVE LAKE ELSINORE, CA

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April Logan
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1 OFFERING MEMORANDUM LAKESHORE DRIVE STRIP LAKESHORE DRIVE LAKE ELSINORE, CA

2 2 MATTHEWS REAL ESTATE INVESTMENT SERVICES

LAKESHORE DRIVE STRIP 16746 LAKESHORE DRIVE LAKE ELSINORE, CA I II III 04-05 EXECUTIVE OVERVIEW 06-09 PROPERTY OVERVIEW 10-13 FINANCIAL OVERVIEW CAITLIN ZIRPOLO Associate EL WARNER EVP & National

3 LAKESHORE DRIVE STRIP LAKESHORE DRIVE LAKE ELSINORE, CA I II III EXECUTIVE OVERVIEW PROPERTY OVERVIEW FINANCIAL OVERVIEW CAITLIN ZIRPOLO Associate EL WARNER EVP & National Director IV AREA OVERVIEW caitlin.zirpolo@matthews.com direct (949) mobile (760) Lic # (CA) el.warner@matthews.com direct (949) mobile (858) Lic # (CA) OFFERING MEMORANDUM 3

4 EXECUTIVE OVERVIEW SECTION O1

EXECUTIVE SUMMARY Matthews Real Estate Investment Services is pleased to present the fee simple sale of Lake Elsinore shops, a ±9,656 SF Stater Bros shadowanchored center located on Lakeshore Drive.

5 EXECUTIVE SUMMARY Matthews Real Estate Investment Services is pleased to present the fee simple sale of Lake Elsinore shops, a ±9,656 SF Stater Bros shadowanchored center located on Lakeshore Drive. This is a tremendous opportunity to acquire a portion of a grocery anchored center in Southern California at a low price point and low price per square foot. This asset provides an investor with strong cashflow, long-term stability and rent growth. The Property s tenants are E-commerce resistant and the center is located along the major commercial corridor in Lake Elsinore. The center has a nice layout and excellent synergy where new management will have the opportunity to increase rent as tenants leases expire. INVESTMENT HIGHLIGHTS Shadow Anchored by high-performing Stater Bros anchored center Located in a strong retail corridor directly adjacent to multiple strong credit tenants Within close proximity to the signalized, hard corner intersection at Lakeshore Drive and Riverside Drive with ±45,500 VPD Strong demographics with ±70,000 residents and an average household income of ±$72,000 within a 5-mile radius Quality tenant line-up with 78% of the income coming from E-commerce resistant retailers INVESTMENT SUMMARY Sale Price $2,100,000 Cap Rate* 5.82% Price PSF $217 NOI Year 1 $122,023 Current Occupancy 100% Total Rentable Square Feet ±9,656 Total Land Area ±1.01 acres *Assumes new tenant to vacant laundromat space OFFERING MEMORANDUM 5

6 PROPERTY OVERVIEW SECTION O2

PARCEL MAP PHYSICAL DESCRIPTION Address 16746 Lakeshore Drive Location Lake Elsinore, CA Type of Ownership Zoning Parking Stalls (#) Parking Ratio 1984 Fee

7 PARCEL MAP PHYSICAL DESCRIPTION Address Lakeshore Drive Location Lake Elsinore, CA Type of Ownership Zoning Parking Stalls (#) Parking Ratio 1984 Fee Simple C1 ± 81 LAK ESH ORE DRI VE ± 19,0 00 ADT Year Built ADT 000 APN(s) ±9,656 ±2 5, Square Footage (GLA) ± 8.4 : 1,000 OFFERING MEMORANDUM 7

8 SITE PLAN UNIT TENANT SQUARE FEET A Guiance Insurance 923 B Help-U-Sell Real Estate 873 C Cricket Mobile 900 D-F Triple Play Pizza 2,580 G Hair Salon 900 H Speculative Tenant 1,800 I & G 2GoodLuck Botanica & Bookstore 1,680 Totals 9,656 8 MATTHEWS REAL ESTATE INVESTMENT SERVICES

9 TENANT MAP LAKE ELSINORE HWY 74 ±26,000 VPD SUBJECT PROPERTY LAKESHORE DRIVE ±19,000 VPD L OFFERING MEMORANDUM 9

10 FINANCIAL OVERVIEW SECTION O3

11 RENT ROLL SUITE TENANT LEASE START LEASE END SQUARE FEET % OF NRA CONTRACT RENTAL RATE RENT PSF RENT INCREASES OPTIONS YEAR MONTH YEAR MONTH DATE $ PSF/YR $ PSF/MO A Guiance Insurance Sep-01 Apr % $22,320 $1,860 $24.18 $2.02 2x2 years; $1,934/mo + 10% CAM ; + 10% CAM B Help-U-Sell Real Estate Oct-17 Nov % $14,400 $1,200 $16.49 $1.37 Dec-18 $16.99 $1.42 1x3 3% increase each year C Cricket Mobile Dec-16 Nov % $12,236 $1,020 $13.60 $1.13 Nov-18 $14.00 $1.17 1x3 years; Yr $ / mo; Yr $1,114.25/mo; Yr $1, D-F Triple Play Pizza Mar-10 Feb-19 2, % $39,000 $3,250 $15.12 $1.26 Tenant is currently monthto-month G Hair Salon Jul-16 Mar % $19,140 $1,595 $21.27 $1.77 Apr-18 $21.87 $1.82 H Speculative Tenant* 1, % $32,400 $2,700 $15.25 $1.27 I & G 2GoodLuck Botanica & Bookstore Jul-17 Jun-20 1, % $18,600 $1,550 $11.07 $0.92 Jul-18 Jul-19 $11.43 $11.79 $0.95 $0.98 1x2 fiixed increases of $75 per year increase from last rent Totals 9, % $158,096 $13,175 $15.86 $1.32 * Negotiating with prospective laundromat tenants OFFERING MEMORANDUM 11

12 INCOME & EXPENSES YEAR 1 TOTAL $/SF Income Rental Income $158,096 $16.37 Other Income $1,440 $0.15 Expense Reimbursements $16,694 $1.73 Vacancy Factor (±5%) ($8,054) Effective Gross Income $168,176 $18.25 Expenses Real Estate Taxes $20,700 $2.14 Insurance $3,763 $0.39 CAM $15,740 $1.63 Management $4,750 $0.49 EGI (%) 2.8% Non-Reimbursable Expenses $1,200 $0.12 Total Operating Expenses $46,153 $4.78 Net Operating Income $122,023 $ MATTHEWS REAL ESTATE INVESTMENT SERVICES

13 SUMMARY TENANT PROFILE TENANT NAME SQ.FT. LEASE EXPIRATION IN-PLACE RENT % OF REVENUE TENANT TYPE CREDIT Guiance Insurance 923 Apr-19 $22, % Service Local/Regional Help-U-Sell Real Estate 873 Nov-19 $14, % Service Local/Regional Cricket Mobile 900 Nov-19 $12, % Service National/Credit Triple Play Pizza 2,580 Feb-19 $39, % Restaurant Local/Regional Hair Salon 900 Mar-19 $19, % Service Local/Regional Prospective Laundromat 1,800 - $32, % Service Local/Regional 2GoodLuck Botanica & Bookstore 1,680 Jun-20 $18, % Shops Local/Regional RENT BREAKDOWN Service - 63% Restaurant - 25% Shops - 12% OFFERING MEMORANDUM 13

14 AREA OVERVIEW SECTION O4

70,733 6.36% LAKE ELSINORE, CALIFORNIA Lake Elsinore is a city in western Riverside County, California.

15 70, % LAKE ELSINORE, CALIFORNIA Lake Elsinore is a city in western Riverside County, California. Established as a city in 1888, it is on the shore of Lake Elsinore, a natural freshwater lake about 3,000 acres in size. The city has grown from a small resort town in the late 19th century and early 20th century to a population of 70,733 in Lake Elsinore is one of the fastest growing cities in California today. Easy access to major freeways, available industrial and commercial land, a quality labor force of workers and an economic philosophy of assisting local businesses for future growth are among the features that make Lake Elsinore attractive to industry POPULATION 20, POPULATION GROWTH 6.05% 2017 HOUSEHOLD POPULATION HOUSEHOLD GROWTH OFFERING MEMORANDUM 15

LAKE ELSINORE S MAIN STREET Lake Elsinore s Main Street is being dubbed

2017 was a big year for the historic downtown area with the number of

Many residents say the additions are giving life to the community and

7 MILES NEW DOWNTOWN DINING OPTIONS RUSTICANA 111 N. Main St.

7 miles SE of subject property MASKA BISTRO 123 N. Main St.

16 LAKE ELSINORE S MAIN STREET Lake Elsinore s Main Street is being dubbed restaurant row was a big year for the historic downtown area with the number of dining establishments nearly doubling. Many residents say the additions are giving life to the community and streets. PROXIMITY TO SUBJECT PROPERTY: ±2.7 MILES NEW DOWNTOWN DINING OPTIONS RUSTICANA 111 N. Main St. Lake Elsinore, CA ±2.7 miles SE of subject property MASKA BISTRO 123 N. Main St. Lake Elsinore, CA ±2.7 miles SE of subject property STADIUM PIZZA 169 N. Main St. Lake Elsinore, CA ±2.8 miles SE of subject property DON MERE S 202 N. Main St. Lake Elsinore, CA ±2.7 miles SE of subject property 16 MATTHEWS REAL ESTATE INVESTMENT SERVICES

17 LOCAL HOUSING DEVELOPMENT Residential development in Lake Elsinore is expanding at an accelerated rate. The city is considered one of the fastest growing cities in the state of California with an average of 600 new homes developed each year. Currently, there are 1,262 approved single-family residential projects in construction, 652 multi-family residential projects in process, and approximately 29,000 residential units approved and yet to be built. An endoresment from the Lake Elsinore Planning Comission has recently been won for an 81-home project in Lake Elsinore. The plan will consist of a mix of single-story and two-story homes on 24 acres in the northwest area of the city. POPULATION 1 MILE 3 MILE 5 MILE 2022 Projection 10,855 48,383 75, Estimate 10,511 45,846 70,733 Population Growth: 2010 to 2017 Population Growth: 2017 to 2022 DEMOGRAPHICS 3.51% 8.03% 9.72% 3.27% 5.53% 6.36% TOP EMPLOYERS HOUSEHOLD 1 MILE 3 MILE 5 MILE 2022 Projection 3,051 13,613 21, Estimate 2,959 12,898 20,453 Population Growth: 2010 to 2017 Population Growth: 2017 to % 8.16% 8.76% 3.11% 5.54% 6.05% INCOME 1 MILE 3 MILE 5 MILE Average Household Income $59,713 $71,729 $77,158 Median Household Income $47,057 $57,085 $61,743 OFFERING MEMORANDUM 17

18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Lakeshore Drive Strip Center located at Lakeshore Dr, Lake Elsinore, CA. It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

LAKESHORE DRIVE STRIP 16746 LAKESHORE DRIVE LAKE ELSINORE, CA CAITLIN ZIRPOLO Associate caitlin.zirpolo@matthews.

19 LAKESHORE DRIVE STRIP LAKESHORE DRIVE LAKE ELSINORE, CA CAITLIN ZIRPOLO Associate direct (949) mobile (760) Lic # (CA) EL WARNER EVP & National Director el.warner@matthews.com direct (949) mobile (858) Lic # (CA) OFFERING MEMORANDUM 19

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