1802 Shelton Drive Hollister, California

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1 ACTUAL PROPERTY 1802 Shelton Drive Hollister, California Price: $4,300, % Cap Rate 76,120 Sq. Ft. Warehouse / Distribution Facility Single-Tenant Net Lease 3% Annual Increases Industrial Park

2 LOCATION 1802 Shelton Drive in an industrial park just east of the Hollister Municipal Airport, Hollister, California LOT SIZE 7.4± acres 321,000± square feet IMPROVEMENTS Built in stages starting in 1973, a one-story 76,120 square foot warehouse / distribution facility occupied by PSC INDUSTRIAL OUTSOURCING, INC. Concrete tilt-up construction 22- to 26-ft. clear height 5,270 sq. ft. of HVAC office space Sprinklered 9 dock doors 7 drive-in doors 2 3-ton cranes 1 5-ton crane Only 23.6% building coverage Expansion space available LEASE Leased to PSC INDUSTRIAL OUTSOURCING, INC., and guaranteed by its parent company, PSC, LLC (PSC), from September 31, 2011, until September 31, 2016, at an annual rent of $340,824, increasing annually by 3%; the next increase is October The tenant first occupied the property in September 2006 and exercised a new lease in October There is one five-year renewal option at Fair Market Rent. The tenant pays real property taxes and assessments up to 120% of taxes payable at initial lease execution; initial property taxes and assessments were $38,775± per year. The tenant pays for liability and all-risk insurance as well as an umbrella policy with the landlord named as additional insured. Tenant is also responsible for maintaining and repairing every part of the premises including exposed electrical, plumbing and sewage systems; ceiling and interior walls; painting of exterior walls, windows, and doors; landscaping; parking lots; fences; and signs. The landlord is responsible for maintaining and repairing the structural parts of the premises including foundations, exterior wall, and exterior roof. ANNUAL NET RENT YEARS NET ANNUAL INCOME* CAP RATE 10/1/12-9/31/13 $344, % 10/1/13-9/31/14 $353, % 10/1/14-9/31/15 $363, % 10/1/15-9/31/16 $375, % * Net Annual Income = Net Annual Rent less Unreimbursed Property Taxes (estimated at $8,500)

3 PRICE $4,300,000 PRICE PER SQUARE FOOT $56.49 RENT PER SQUARE FOOT $4.61 per year 38 net per month LAND VALUE $5 per square foot $1,611,720 POSSIBLE FINANCING $2,500,000 at 4.5% interest with a 25-year amortization, due in 10 years and annual payments of $166,750 CASH FLOW ANALYSIS to /13-9/14 10/14-9/15 Price: $4,300,000 NOI: $344,805 $353,080 $363,927 Loan: <2,500,000> Debt Svc.: <166,750> <166,750> <166,750> Cash Req d: $1,800,000 Cash Flow: $178,055 $186,330 $197,177 Return on Cash 9.89% 10.35% 10.95% ABOUT THE TENANT The company overview on the PSC, LLC website states the following: Extensive environmental and industrial service offerings Over 30 years as an environmental and industrial service provider Numerous Fortune 500 clients Strong financial company with a national footprint Headquarters in Houston, Texas, with over 100 locations across North America We deliver the best, most innovative environmental and industrial service solutions in the industry. We offer our clients the financial strength and resources of a large company with the responsiveness, regional knowledge and personalized attention of a local provider. And we never compromise on safety or the environment.

4 ABOUT THE TENANT (CONTINUED) PSC INDUSTRIAL OUTSOURCING, INC., is owned by PSC, LLC (PSC), which is headquartered in Houston, Texas, and started business in PSC offers a wide range of industrial and environmental cleanup projects throughout the U.S. Scrap metal recycling services the company s longtime focus On-site waste disposal and recycling Cleaning of industrial equipment Transportation of commercial and industrial waste Emergency response to spills In addition, PSC offers oil field services both on- and off-shore along the Gulf Coast. The initials PSC also stand for the company s operating philosophy People, Safety, and Commitment. PSC is a privately-held company controlled by entities owned by investor Carl Icahn. According to a leading credit-reporting agency, PSC had 5,321 employees and revenues of $303.7 million as of December 31, SITE INFORMATION The subject property is located in an industrial area on the northern edge of Hollister, just east of San Felipe Road bordering the Hollister Municipal Airport. GREATER HOLLISTER INDUSTRIAL MARKET The market is a mixture of leased properties and a fairly high level of owner/user occupancy. Many of the industrial building are of metal construction whereas the subject is of concrete tilt-up construction.. DEMOGRAPHICS 3-MILE 5-MILE 7-MILE Population (2011) 21,399 44,974 48,691 Avg. Household Income $74,341 $85,768 $88,631

5 ABOUT THE AREA Hollister, the county seat of San Benito County, is located in California s Central Coast region approximately 22 miles east of Monterey Bay, 40 miles southeast of San Jose, and 100 miles southeast of San Francisco. Highways 156 and 152 provide access to Interstate 5 and U.S. Highway 101, which run the entire length of California. Over the last decade or so, Hollister has also become a commuter suburb with many residents employed in the Silicon Valley, about 40 miles away. Hollister has been an agricultural and ranching community. Strawberry and lettuce production are mainstays of the area s economy. These are crops, businesses, and jobs that can never be exported to some other location, creating a certain level of stability in the area s overall economy. Today, Hollister and the nearby agricultural communities of Salinas, Gilroy, and Morgan Hill are at the center of an area famous for producing and shipping a good deal of the country s fresh fruits and produce much of it of such high quality that it is shipped overseas to meet the demands of very exacting consumers. Much of the industrial property in Hollister was built to accommodate the needs of growers, packers, and shippers. An abundance of affordable labor makes Hollister a desirable location for other types of businesses as well. In the late 90s, the tech boom and phenomenal growth in Silicon Valley (just northwest of Hollister) drove new residential construction into the surrounding rural area. With a 2010 census population of 34,928, Hollister is a community with many high-paid, well-educated residents commuting daily to jobs in and around San Jose. DISCLAIMER The net income set forth above is an estimate and does not provide for all potential costs and expenses (i.e., maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are merely estimates and not based on any experience, physical inspection, or prior knowledge. All prospective purchasers are strongly advised to make an independent investigation to determine their estimate of costs and expenses prior to entering into an agreement to purchase. NOTE The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.

6 BUILDING PHOTOGRAPHS & FLOOR PLAN RR RR FLOOR PLAN Grade Level Grade Level Grade Level Office Area 20í Grade Level 55í Grade Level RR RR RR RR Lunch Room Mezzanine Grade Level Dock High Dock High Truck Door Staging Area Dock High Grade Level

7 AERIAL HOLLISTER MUNICIPAL AIRPORT Road Fallon PROPERTY To PACHECO PASS HWY. PACHECO PASS HWY. T San Benito Street San Felipe Road 156 COTTAGE CORNERS Wright Road McCloskey Road HWY. VETERANS MEMORIAL 4th Street Bus 156 San Juan Road HOLLISTER

8 AERIAL HOLLISTER MUNICIPAL AIRPORT PROPERTY

9 FALLON ROAD Potential New Bldg Shelton Dr SHELTON DRIVE

10 PARCEL MAP

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13 MAP PROPERTY 0 mi h iti i l di H M j t th Q i Ri ht fc d Q ' Pi t f

14 Updated Summary Report (%) January 5, 2012 Longitude: Latitude: Mile Ring 5 Mile Ring 7 Mile Ring POPULATION 1990 Total Population 15,392 28,083 30, Total Population 21,281 43,188 46, Total Population 21,399 44,974 48, Total Population 21,531 46,105 49,928 % Population Change % 53.79% 52.32% % Population Change % 4.14% 4.35% % Population Change % 2.52% 2.54% HOUSEHOLDS 1990 Total Households 4,390 8,526 9, Total Households 5,772 12,415 13, Total Households 5,829 12,928 14, Total Households 5,766 13,045 14,400 % Households Change % 45.61% 44.88% % Households Change % 4.13% 4.71% % Households Change %.90%.92% 2011 RACE % 2011 White Population 56.99% 61.84% 63.05% % 2011 Black Population.79%.93%.90% % 2011 American Indian/Alaska Native 1.74% 1.66% 1.60% % 2011 Asian/Hawaiian/Pacific Islander 1.98% 2.86% 2.86% % 2011 Other Population (Incl 2+ Races) 38.51% 32.71% 31.59% % 2011 Hispanic Population 71.34% 60.52% 58.27% % 2011 Non-Hispanic Population 28.66% 39.48% 41.73%

15 Updated Summary Report (%) January 5, 2012 Longitude: Latitude: Mile Ring 5 Mile Ring 7 Mile Ring INCOME 2011 Per Capita Income $20,249 $24,655 $25, Median Household Income $67,508 $73,305 $75, Average Household Income $74,341 $85,768 $88,631 % 2011 Household Income < $10, % 3.64% 3.35% % 2011 Household Income $10,000-$14, % 3.49% 3.48% % 2011 Household Income $15,000-$19, % 2.85% 2.96% % 2011 Household Income $20,000-$24, % 4.05% 3.86% % 2011 Household Income $25,000-$29, % 3.49% 3.28% % 2011 Household Income $30,000-$34, % 2.95% 2.83% % 2011 Household Income $35,000-$39, % 3.19% 3.02% % 2011 Household Income $40,000-$44, % 3.02% 2.91% % 2011 Household Income $45,000-$49, % 3.26% 3.10% % 2011 Household Income $50,000-$59, % 8.14% 7.72% % 2011 Household Income $60,000-$74, % 13.46% 12.96% % 2011 Household Income $75,000-$99, % 19.70% 19.89% % 2011 Household Income $100,000-$124, % 14.48% 15.26% % 2011 Household Income $125,000-$149, % 8.04% 8.34% % 2011 Household Income $150,000-$199, % 4.50% 4.94% % 2011 Household Income $200,000-$249,999.51%.58%.62% % 2011 Household Income $250,000-$499,999.79% 1.16% 1.44% % 2011 Household Income $500, %.02%.03% 2011 Average Household Size % 2011 Total Owner Occupied Housing Units 58.61% 64.44% 66.23% % 2011 Total Renter Occupied Housing Units 41.39% 35.56% 33.77% 2011 Total Daytime Population 20,321 37,006 41, Total Daytime Work Population 8,558 13,085 15, Total Establishments 926 1,431 1,518