Santa Clarita Plaza. Santa Clarita, California. Capital Markets National Retail Investment Group

Transcription

1 Offering Memorandum Santa Clarita Plaza Santa Clarita, California Capital Markets National Retail Investment Group

2 Santa Clarita Plaza 2 Castaic Canyon Country Seco Canyon Road NAP Bouquet Canyon Road

3 Santa Clarita Plaza Santa Clarita, California Table of Contents Investment Summary... 5 Area Overview... 8 Property Description Tenants Financials CBRE, Inc. We obtained the information contained within from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Exclusively Marketed By: The National Retail Investment Group-West Philip D. Voorhees Lic phil.voorhees@cbre.com Sam Alison LA Retail PCG Lic sam.alison@cbre.com Dan Riley LA Retail PCG Lic dan.riley@cbre.com Patrick Toomey Lic patrick.toomey@cbre.com Megan Read Lic megan.read@cbre.com CBRE Broker Lic Jamboree Road, Suite 100 Newport Beach, CA Fax

4 Investment Summary Santa Clarita Plaza 4

5 investment summary Address Bouquet Canyon Rd Seco Canyon Rd., Santa Clarita, CA Offering Price...$24,925,000 Assumable Loan... $19,500,000 [1] Loan Interest Rate % Loan Maturity Date... June 2017 NOI (Year 1)...$1,959,711 NOI Stabilized (Year 3)...$2,384,056 Building Square Feet ,577 Land Area...564,538 SF (12.96 acres) Current Occupancy...81% [1] Buyer to assume existing loan originated August 2007 by Merrill Lynch Mortgage Lending, Inc. in the amount of $19,500,000, 6.42%, fixed interest rate, interest only payments up to maturity 06/2017. Loan is serviced by Keybank Real Estate Capital. Major Tenants Tenants Include Size Lease Expirations Options Rite Aid 20,034 SF May 2018 One (1) Five (5) Year at FMV Goodwill Industries 13,379 SF September 2014 One (1) Ten (10) Year at FMV Bank of America 5,440 SF December 2016 Two (2) Five (5) Year at 3% investment Highlights Santa Clarita Drug Store Anchored Retail Center Opportunity to purchase an established drug store-anchored shopping center in Santa Clarita (Los Angeles County) 115,577 SF drug anchored shopping center leased to established tenants such as: Rite Aid, Goodwill Industries, Bank of America, and many more! Highly attractive, assumable loan: $19,500,000 at 6.42% fixed rate, interest only through maturity date of June 2017 provides attractive cash-on-cash returns. Loan is non-recourse with standard carve-outs Immediate upside for lease-up of vacant space (27,816 SF - 24% of GLA) Recent capital improvements to roof and common area Immediate Upside/Stable Cash Flow with Strong NOI Growth 76% leased, and priced on in-place income Net Operating Income (NOI) is projected to grow more than $799,651 (41%) over a 10-year hold period as vacant space is leased and below market Rite Aid anchor rents adjusts to market Rent for Rite Aid (17% of GLA) is significantly below market at $0.61 PSF per month Virtually all tenants have rental increases, improving cash flow over time Limited same-year lease roll over keeps income stable year to year Strong Real Estate Fundamentals Rare opportunity to purchase an entirely-owned (except corner gas pad) Southern California anchored shopping center below replacement cost Property-wide, rents are 10.49% below current market rates Currently 81% leased - Immediate leasing upside Property is priced as-is on current in place income, with no credit given for vacant space (21,866 SF, 19% of GLA) Drug store anchor plus classic retail uses appeals to daily needs consumers, increasing trips to the property 38,470 SF (over 33%) of GLA within the shopping center consists of spaces under 2,000 SF, providing versatile retail space for a wide variety of potential uses, increasing the pool of potential replacement tenants Competing centers in trade area have average occupancy of approximately 98% with monthly asking rents ranging from $2.25 PSF - $3.95 PSF for the few available retail spaces in the immediate trade area Capital Markets National Retail Investment Group

6 Investment Summary Santa Clarita Plaza 6

7 Investment Highlights (CONT) Attractive Assumable Financing $19,500,000 balance Fixed interest rate of 6.42% through loan maturity of June 2017 Loan is interest only (I/O) for its entire term, boasting cash on cash returns Financing is non-recourse except for standard lender carve-outs Infill Santa Clarita Location Located at the intersection of Bouquet Canyon Road (over 52,000 cars per day) and Seco Canyon Road (over 23,450 cars per day) for a total of over 75,450 cars passing the site daily Strong access with four (4) points of access off of Bouquet Canyon Road, two of which are dedicated left turn lanes for eastbound traffic, and three (3) points of access off of Seco Canyon Road Highly visible property with over 950 feet of frontage along Bouquet Canyon Road and over 790 feet of frontage along Seco Canyon Road Limited surrounding retail and service retail with a strong mix of surrounding office, industrial and residential density have the potential to keep Mountaingate Plaza busy through all day parts Affluent Demographics/Trade Area Approximately 12,681 people within a 1-mile radius with an Average Household Income of more than $102,364 Approximately 98,719 people within a 3-mile radius with an Average Household Income of more than $109,518 Approximately 196,224 people within a 5-mile radius with an Average Household Income more than $101,014 Ideal 1031 Exchange Replacement Property Anchored shopping center in prime Santa Clarita community Excellent cash-on-cash returns through assumable interest-only financing Opportunity to purchase a wholly-owned project at or below replacement cost with stable income and outstanding upside potential Low anchor rent, vacancy lease-up, and embedded increases should grow NOI approximately $799,651 (41%) during the 10-year hold period Capital Markets National Retail Investment Group

8 Area Overview Santa Clarita Plaza 8 Santa Clarita Overview The City of Santa Clarita encompasses square miles of the approximately 200-square mile Santa Clarita Valley. Therefore, the City of Santa Clarita is the largest in geographic size within the County of Los Angeles. The City is situated south of the sierra Pelona mountain range and north of the Santa Susanna and San Gabriel mountain ranges between Interstate 5 and State Highway 14. Santa Clarita is the fourth largest city in Los Angeles County, California, United States and the 24th largest city in the State of California. The city population is approximately 176,000; including unincorporated areas of the Santa Clarita Valley, the population is estimated at over 275,000. It is located about 35 miles northwest of downtown Los Angeles, and occupies most of the Santa Clarita Valley. It is a notable example of a U.S. edge city or boomburb. The FBI rates it as the sixth safest city in the United States with a population of over 100,000 inhabitants. (Nearby Simi Valley and Thousand Oaks, in Ventura County, traditionally alternate between the first and second spots on the list.) Santa Clarita was ranked as number 18 of the top 100 places to live by Money Magazine in Santa Clarita was incorporated in 1987 as the union of several previously existing communities, including Canyon Country, Newhall, Saugus, and Valencia, all of which are the land of the former Rancho San Francisco. Its principal boundaries are the Golden State (I-5) and Antelope Valley (SR- 14) freeways; their merger in Newhall Pass at the city s southernmost point gives Santa Clarita its distinctive triangular appearance on the map. Santa Clarita s most notable attractions are the Six Flags Magic Mountain amusement park located just outside the city limits in unincorporated Los Angeles County, and the California Institute of the Arts (CalArts), located in Valencia. Santa Clarita s Top Employers (2010 Comprehensive Annual Financial Report) Employer # of Employees 1 Six Flags Magic Mountain 3,689 2 Princess Cruises 2,100 3 Henry Mayo Newhall Memorial Hospital 1,212 4 H.R. Textron The Master s College Specialty Laboratories Arvato Services California Institute of Arts Aerospace Dynamics Fanfare Media Works 407 Enterprise Zone On July 1, 2007, to offer new businesses tax incentives to operate inside Santa Clarita, the industrial and commercial areas in northern and western Santa Clarita were zoned as a federally recognized Enterprise Zone. Additional warehousing and office space was also constructed. Presently, the Santa Clarita Enterprise Zone covers 97% of all commercial, business, and industrial zoned land within the City of Santa Clarita. This zoning allows local businesses to claim hiring, sales and use tax credits. The newly designated Enterprise Zone is now the base of operations for several large companies, including True Position Technologies, Salt Creek Grille, Condomman.com, and Trigg Laboratories. Los Angeles Los Angeles is the largest city in the state of California and the second largest in the United States. Often abbreviated as L.A. and nicknamed The City of Angels, Los Angeles has an estimated population of 3.8 million and spans over square miles in Southern California. Additionally, the Los Angeles metropolitan area is home to nearly 12.9 million residents. Los Angeles is the seat of Los Angeles County, the most populated and one of the most diverse counties in the United States. The economy of Los Angeles is driven by international trade, entertainment (television, motion pictures, interactive games, recorded music), aerospace, technology, petroleum, fashion, apparel, and tourism. Los Angeles is also the largest manufacturing center in the western United States. The contiguous ports of Los Angeles and Long Beach together comprise the fifth busiest port in the world and the most significant port in the Western Hemisphere and is vital to trade within the Pacific Rim. Other significant industries include media production, finance, telecommunications, law, healthcare, and transportation. The Los Angeles-Long Beach-Riverside combined statistical area (CSA) has a gross metropolitan product (GMP) of $831 billion (as of 2008), making it the third largest economic center in the world, after the Greater Tokyo Area and the New York- Newark-Bridgeport CSA. As the home base of Hollywood, it is known as the Entertainment Capital of the World, leading the world in the creation of motion pictures, television production and recorded music. The importance of the entertainment business to the city has led many celebrities to call Los Angeles and its surrounding suburbs home.

9 Los Angeles County Overview Los Angeles County has the largest population of any county in the nation, exceeded by only eight states. Approximately 27 percent of California s residents live here. More than 1 million of the 10.4 million residents live in unincorporated areas, whose municipal services are provided by the County. The other 9.3 million live in 88 cities, located throughout a 4,084-square-mile area. According to the United States Conference of Mayors, Los Angeles County boasts a GDP among the twenty largest in the world. Los Angeles County s continued economic growth, in contrast to other areas of the state and nation, is due to its diversified economy and abundant, well-trained workforce. One of the nation s largest counties with 4,084 square miles, Los Angeles County is 800 square miles larger than the combined area of Delaware and Rhode Island. The County is bordered on the east by Orange and San Bernardino Counties, on the north by Kern County, on the west by Ventura County and on the south by the Pacific Ocean and includes Santa Catalina Island. If Los Angeles County were a nation, its economy would be the 18th largest in the world. It is home to more than 244,000 businesses, with more minority- and women-owned businesses than any other in the nation and is the nation s top international trade center and manufacturing center. Los Angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace and international trade. Los Angeles County has a diverse economic base. Measured by 2008 employment, the leading industry clusters are: 1. Tourism and hospitality with 458,000 employees 2. Professional and business services with 268,000 employees 3. Entertainment (motion picture/tv production, etc.) with 262,000 employees 4. Wholesale distribution with 172,000 employees 5. Health services and biomedical with 153,000 employees Transportation Profile Los Angeles County is served by one of the largest freeway networks in the country, providing access to the five neighboring counties of Orange, Riverside, San Bernardino, Kern and Ventura, as well as the rest of the nation. Los Angeles County s extensive freeway network facilitates the movement of people and freight throughout the region, the state and the nation. FREEWAY DIRECTION CARS PER DAY I-5 North-South 356,000 I-405 North-South 380,000 I-605 North-South 320,000 I-10 East West 322,000 I-110 North South 330,000 I-210 East-West 308,000 I-710 North-South 229,000 US Route-101 North-South 180,000 CA/SR 1 North-South 125,000 Los Angeles International Airport (LAX) services the Los Angeles County area with nearly 90 passenger and freight carriers and is the third busiest airport in the world. It is supplemented by the proximity of Ontario International Airport in the City of Ontario (San Bernardino County), Burbank Airport in Burbank (Los Angeles County) and John Wayne Airport in Santa Ana (Orange County). Municipal bus and light rail service is provided by the Los Angeles County Metropolitan Transportation Authority (MTA). AIRPORT PASSENGERS PER YEAR/DAY Los Angeles International Airport (LAX) 61 million/167,100 John Wayne/Orange County Airport (SNA) 9.6 million/27,311 Ontario International Airport (ONT) 7.1 million/20,493 San Diego Airport (SAN) 17.3 million/40,000 The county has several freight rail lines and Amtrak provides passenger rail service. The deepwater ports of Los Angeles and Long Beach are the busiest in the country and one of the busiest port complexes in the world. In recognition of the value of international commerce to the region s economy, the Alameda Corridor was constructed to provide unfettered freight access from the Ports of Los Angeles and Long beach to the central interstate freight yards in the downtown Los Angeles. Capital Markets National Retail Investment Group

10 Area Overview Santa Clarita Plaza 10 Golden State (I-5) 5 Freeway Valencia Town Center Newhall Stevenson Ranch Santa Clarita Newhall Ranch Road Santa Clarita Plaza Valencia Boulevard Bouquet Center Seco Canyon Road Bouquet Canyon Road

11 trade area demographics population 1mile 3 miles 5 miles 2011 Estimated Population 12,681 98, , Projected Population 13, , , Census Population 11,300 74, , Census Population 8,425 56, ,918 Growth % 32.13% 28.83% Growth % 7.96% 7.99% age 1mile 3 miles 5 miles 2011 Estimated Median Age households 1mile 3 miles 5 miles 2011 Estimated Households 4,121 33,060 66, Projected Households 4,360 35,600 71, Census Households 3,733 25,307 51, Census Households 2,674 19,293 39,106 Growth % 30.63% 27.28% Growth % 7.68% 7.81% Income 1mile 3 miles 5 miles 2011 Estimated Households 4,121 33,060 66,054 - Income Less than $15, ,396 3,796 - Income $15,000 to $24, ,291 3,419 - Income $25,000 to $34, ,391 3,822 - Income $35,000 to $49, ,651 6,539 - Income $50,000 to $74, ,710 11,985 - Income $75,000 to $99, ,850 10,937 - Income $100,000 to $149,999 1,114 8,637 14,803 - Income $150,000 to $199, ,382 5,743 - Income $200,000 to $499, ,389 4,348 - Income $500,000 and over Est. Average Household Income $102,364 $109,518 $101,014 Santa Clarita Plaza Capital Markets National Retail Investment Group

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13 Santa Clarita Plaza

14 Property Description Santa Clarita Plaza 14 Suite Tenant Area Sq. Ft Bank of America 6, Rite Aid 20, One Hour Martinizing 1, Pet Supply Saugus 3, Minute Wash 1, Coffee Kiosk, Inc The Cutting Edge Chad Moore 2, Angels Nails Mandarin Express 1, Kwik Stop Liquor 4 2, New Gemini Beauty Supply 1, A Bouquet Canyon Florist 1, Valencia Christian Center 6, Lassens Natural Foods & Vitami 4, SCV Clearwater 1, Hydro Spa 1, Persia Restaurant 1, Jasmine Thai BBQ 1, Goodwill Industries of So Cal 13, Goodwill Industries of So Cal 13, A Bouquet Canyon Florist (STO) 2, B Fellowship Christian Church 5, A Suncal Insurance C Maiboxes, Etc E Altered Flesh Tattoo G Victoria Prasol DDS, Inc. 1, H The Tailgate 1, J Magical Asian Spa 1, Las Delicias Taqueria 1, C Elegant Cabinets 2, VACANT (STE 6836) VACANT (STE 6838) VACANT (STE 6840) VACANT (STE 6837) 3,477 site plan SECO CANYON ROAD Suite Tenant (Not A Part) Vacant Area Sq. Ft VACANT (STE 6865) 1, VACANT (STE 6867) 1, VACANT (STE 6869) 5, B VACANT (STE 6893B) D VACANT (STE 6893D) Suite Tenant C A&B G BOUQUET CANYON ROAD Area Sq. Ft. 6893F VACANT (STE 6893F) I VACANT (STE 6893I) L VACANT (STE 6893L) M VACANT (STE 6893M) N VACANT (STE 6893N) B Suite A Tenant B A C I F E D Second Floor J G M L N O Area Sq. Ft. 6893O VACANT (STE 6893O) 1, G VACANT (STE 6859G) 1,491 Total Vacant SF 27,816 TOTAL SF 117,576

15 Property Description Location Santa Clarita Plaza is located at Bouquet Canyon Road and Seco Canyon Road in the city of Santa Clarita, California Parcels The project consists of one parcel ( ) containing a total of approximately acres of land area. Zoning The shopping center is zoned Shopping Center (SCCC) per Los Angeles County Parking The property contains approximately 359 parking stalls. Based on the total building area of 115,557 SF, the parking ratio is approximately 3.1 stalls per 1,000 square feet of leasable area. Street Frontage The site benefits from approximately 950 feet of frontage along Bouquet Canyon Road and over 790 of frontage along Seco Canyon Road. Access Ingress and egress to Santa Clarita Plaza is available as accessed from Bouquet Canyon Road (4 entrances) and Seco Canyon Road (3 entrances). Traffic Counts Traffic count at Bouquet Canyon Road and Seco Canyon Road is approximately 75,450 cars per day. Built The property was built in 1966 with major renovations in the last five (5) years including roof, parking lot, and walkways. Capital Markets National Retail Investment Group

16 Capital Markets National Retail Investment Group

17 Santa Clarita Plaza

18 Tenants Santa Clarita Plaza 18 Major Tenants Tenant # of Locations Use Website Sales Market Capitalization Bank of America 6,011 A financial holding company $71.07 B $ B NYSE:BAC Rite Aid 4,901 Drugstore chain $26.2 B $13 B NYSE:RAD Goodwill Industries of SoCal 2,300 non-profit organization $3.25 B Goodwill Industries, International (parent) N/A Mailboxes, Etc. (and The UPS Store) 6,000 Global franchise of retail business service centers $42 B $58.77 B NYSE:UPS

19 Rent Roll Market Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options 6836 VACANT (STE 6836) % Dec-2013 Nov-2018 Dec-2013 $2,413 $2.50 $28,950 $30.00 NNN - $12.36 $9.56 Market Dec-2014 $2,485 $2.58 $29,819 $30.90 $11,927 $9,222 $2.50 NNN (<2K SF) Dec-2015 $2,560 $2.65 $30,716 $ % Dec-2016 $2,636 $2.73 $31,633 $32.78 Dec-2017 $2,716 $2.81 $32,588 $ VACANT (STE 6838) % Dec-2013 Nov-2018 Dec-2013 $2,223 $2.25 $26,676 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $2,290 $2.32 $27,476 $27.81 $12,212 $8,498 $2.25 NNN (<2K SF) Dec-2015 $2,358 $2.39 $28,296 $ % Dec-2016 $2,429 $2.46 $29,146 $29.50 Dec-2017 $2,502 $2.53 $30,025 $ VACANT (STE 6840) % Dec-2013 Nov-2018 Dec-2013 $2,221 $2.25 $26,649 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $2,287 $2.32 $27,448 $27.81 $12,199 $8,489 $2.25 NNN (<2K SF) Dec-2015 $2,356 $2.39 $28,268 $ % Dec-2016 $2,426 $2.46 $29,117 $29.50 Dec-2017 $2,500 $2.53 $29,995 $ VACANT (STE 6837) 3, % Dec-2013 Nov-2020 Dec-2013 $6,085 $1.75 $73,017 $21.00 NNN - $15.45 $7.96 Market Dec-2014 $6,206 $1.79 $74,477 $21.42 $53,720 $27,684 $1.75 NNN (2K - 6,100 SF) Dec-2015 $6,331 $1.82 $75,972 $ % Dec-2016 $6,459 $1.86 $77,502 $22.29 Dec-2017 $6,586 $1.89 $79,032 $22.73 Dec-2018 $6,719 $1.93 $80,632 $23.19 Dec-2019 $6,853 $1.97 $82,231 $ VACANT (STE 6865) 1, % Dec-2013 Nov-2018 Dec-2013 $3,030 $2.00 $36,360 $24.00 NNN - $12.36 $7.64 Market Dec-2014 $3,121 $2.06 $37,451 $24.72 $18,725 $11,582 $2.00 NNN (<2K SF) Dec-2015 $3,214 $2.12 $38,572 $ % Dec-2016 $3,312 $2.19 $39,738 $26.23 Dec-2017 $3,410 $2.25 $40,920 $ VACANT (STE 6867) 1, % Dec-2013 Nov-2018 Dec-2013 $3,668 $2.25 $44,010 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $3,778 $2.32 $45,330 $27.81 $20,147 $14,019 $2.25 NNN (<2K SF) Dec-2015 $3,890 $2.39 $46,683 $ % Dec-2016 $4,007 $2.46 $48,085 $29.50 Dec-2017 $4,128 $2.53 $49,536 $ VACANT (STE 6869) 5, % Dec-2013 Nov-2020 Dec-2013 $8,939 $1.75 $107,268 $21.00 NNN - $15.45 $7.96 Market Dec-2014 $9,118 $1.79 $109,413 $21.42 $78,919 $40,671 $1.75 NNN (2K - 6,100 SF) Dec-2015 $9,301 $1.82 $111,610 $ % Dec-2016 $9,488 $1.86 $113,857 $22.29 Dec-2017 $9,675 $1.89 $116,105 $22.73 Dec-2018 $9,871 $1.93 $118,455 $23.19 Dec-2019 $10,067 $1.97 $120,804 $ B VACANT (STE 6893B) % Dec-2013 Nov-2018 Dec-2013 $1,845 $2.25 $22,140 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $1,900 $2.32 $22,804 $27.81 $10,135 $7,053 $2.25 NNN (Bldg 26893) Dec-2015 $1,957 $2.39 $23,485 $ % Dec-2016 $2,016 $2.46 $24,190 $29.50 Dec-2017 $2,077 $2.53 $24,920 $ D VACANT (STE 6893D) % Dec-2013 Nov-2018 Dec-2013 $1,944 $2.25 $23,328 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $2,002 $2.32 $24,028 $27.81 $10,679 $7,431 $2.25 NNN (Bldg 26893) Dec-2015 $2,062 $2.39 $24,745 $ % Dec-2016 $2,124 $2.46 $25,488 $29.50 Dec-2017 $2,188 $2.53 $26,257 $ F VACANT (STE 6893F) % Dec-2013 Nov-2018 Dec-2013 $2,012 $2.25 $24,138 $27.00 NNN - $12.36 $8.60 Market Dec-2014 $2,072 $2.32 $24,862 $27.81 $11,050 $7,689 $2.25 NNN (Bldg 26893) Dec-2015 $2,134 $2.39 $25,604 $ % Dec-2016 $2,198 $2.46 $26,373 $29.50 Dec-2017 $2,264 $2.53 $27,169 $ I VACANT (STE 6893I) % Dec-2013 Nov-2018 Dec-2013 $1,216 $1.35 $14,596 $16.20 NNN - $12.36 $5.16 Market Dec-2014 $1,253 $1.39 $15,038 $16.69 $11,136 $4,650 $1.35 NNN (Bldg 26893) Dec-2015 $1,291 $1.43 $15,488 $ % Dec-2016 $1,329 $1.48 $15,948 $17.70 Dec-2017 $1,369 $1.52 $16,425 $ L VACANT (STE 6893L) % Dec-2013 Nov-2018 Dec-2013 $1,168 $1.35 $14,013 $16.20 NNN - $12.36 $5.16 Market Dec-2014 $1,203 $1.39 $14,437 $16.69 $10,691 $4,464 $1.35 NNN (Bldg 26893) Dec-2015 $1,239 $1.43 $14,869 $ % Dec-2016 $1,276 $1.48 $15,311 $17.70 Dec-2017 $1,314 $1.52 $15,769 $ M VACANT (STE 6893M) % Dec-2013 Nov-2018 Dec-2013 $1,133 $1.35 $13,592 $16.20 NNN - $12.36 $5.16 Market Dec-2014 $1,167 $1.39 $14,003 $16.69 $10,370 $4,330 $1.35 NNN (Bldg 26893) Dec-2015 $1,202 $1.43 $14,422 $ % Dec-2016 $1,238 $1.48 $14,850 $17.70 Dec-2017 $1,275 $1.52 $15,295 $18.23 Capital Markets National Retail Investment Group

20 TENANTS Santa Clarita Plaza 20 Rent Roll Market Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options 6893N VACANT (STE 6893N) % Dec-2013 Nov-2018 Dec-2013 $1,169 $1.35 $14,029 $16.20 NNN - $12.36 $5.16 Market Dec-2014 $1,204 $1.39 $14,454 $16.69 $10,704 $4,469 $1.35 NNN (Bldg 26893) Dec-2015 $1,241 $1.43 $14,887 $ % Dec-2016 $1,277 $1.48 $15,328 $17.70 Dec-2017 $1,316 $1.52 $15,787 $ O VACANT (STE 6893O) 1, % Dec-2013 Nov-2018 Dec-2013 $1,575 $1.35 $18,905 $16.20 NNN - $12.36 $5.16 Market Dec-2014 $1,623 $1.39 $19,477 $16.69 $14,424 $6,022 $1.35 NNN (Bldg 26893) Dec-2015 $1,672 $1.43 $20,061 $ % Dec-2016 $1,721 $1.48 $20,656 $17.70 Dec-2017 $1,773 $1.52 $21,274 $ Bank of America 6, % Jul-1967 Dec-2016 Current $15,323 $2.22 $183,879 $26.65 NNN+5% Admin (w/amort)bofa Option ATM Jan-2013 $15,784 $2.29 $189,405 $27.45 $2.50 NNN (2K - 6,100 SF) Jan-2014 $16,255 $2.36 $195,063 $28.27 Jan-2015 $16,744 $2.43 $200,928 $29.12 Jan-2016 $17,244 $2.50 $206,931 $29.99 Suite includes 1,500 SF of ATM space leased at $1, /mo (Included in the rent modeled). Analysis assumes tenant exercises two (2) five (5) year options at $17,246 /mo with 3% annual increases and renewal costs (Modeled Below). Jan-2017 Dec-2021 FUTURE $17,764 $2.57 $213,166 $30.89 NNN+5% Admin (w/amort)bofa - $3.48 $2.46 Option OPTION Jan-2018 $18,297 $2.65 $219,558 $31.82 $23,997 $16,976 $2.50 NNN (2K - 6,100 SF) Jan-2019 $18,849 $2.73 $226,182 $ % Jan-2020 $19,412 $2.81 $232,944 $33.76 Jan-2021 $19,993 $2.90 $239,913 $34.77 Jan-2022 Dec-2026 FUTURE $19,993 $2.90 $239,920 $34.77 NNN+5% Admin (w/amort)bofa - $4.03 $2.77 Market OPTION Jan-2023 $20,591 $2.98 $247,089 $35.81 $27,819 $19,107 $2.50 NNN (2K - 6,100 SF) Jan-2024 $21,212 $3.07 $254,541 $ % Jan-2025 $21,850 $3.17 $262,200 $38.00 Jan-2026 $22,506 $3.26 $270,066 $ Rite Aid 20, % Dec-1966 May-2018 Current $12,224 $0.61 $146,693 $7.32 GROSS 3.00% - - Option Natural $1.50 NNN (Anchors) Analysis assumes tenant renews at 103% of prior rent. Renewal costs modeled. Analysis assumes tenant renews at 103% of prior rent. Renewal costs modeled. Tenant pays minimum rent of $146,693/yr & percentage rent of 3% of gross sales over a nat. b.p. Two (2) five (5) year options at same rent but shall commence paying their pro rata share of OpEx (Modeled Below). Jun-2018 May-2023 FUTURE $12,224 $0.61 $146,693 $7.32 NNN + 5% Admin (Rite Aid) 3.00% - - Option OPTION Natural $1.50 NNN (Anchors) Analysis assumes tenant exercises option at same rent plus their pro rata share of OpEx. Tenant shall have Prop 13 Protection from more than two (2) increases in taxes due to a change of ownership, effective June Percentage rent is offset by OpEx Reimb during options. Jun-2023 May-2028 FUTURE $12,224 $0.61 $146,693 $7.32 NNN + 5% Admin (Rite Aid) 3.00% - - Market OPTION Natural $1.50 NNN (Anchors) Analysis assumes tenant exercises option at same rent plus their pro rata share of OpEx. Tenant shall have Prop 13 Protection from more than two (2) increases in taxes due to a change of ownership, effective June Percentage rent is offset by OpEx Reimb during options One Hour Martinizing 1, % Nov-1989 Dec-2018 Current $4,244 $3.18 $50,923 $38.20 NNN+15% Ad (CAM w/amort) No Mg Option to Terminate effective after 12/2011 Jan-2013 $4,456 $3.34 $53,467 $40.11 $2.75 NNN (<2K SF) with 4 months notice. Need to verify terms of Jan-2014 $4,679 $3.51 $56,146 $42.12 Termination Option. Tenant is subject to Jan-2015 $4,912 $3.69 $58,945 $44.22 percentage rent. Jan-2016 $5,158 $3.87 $61,891 $46.43 Jan-2017 $5,416 $4.06 $64,997 $48.76 Jan-2018 $5,686 $4.27 $68,236 $ Pet Supply Saugus 3, % Mar-2002 Feb-2017 Current $10,373 $2.94 $124,481 $35.26 NNN+10% Ad on C,I,M (No Rf Am) Mar-2013 $11,202 $3.17 $134,422 $38.08 $2.25 NNN (2K - 6,100 SF) Mar-2014 $12,099 $3.43 $145,189 $41.13 Mar-2015 $13,067 $3.70 $156,803 $44.42 Mar-2016 $14,114 $4.00 $169,369 $47.98

21 Rent Roll Market Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options Minute Wash 1, % Mar-2009 Feb-2014 Current $4,868 $3.00 $58,417 $36.06 NNN +15% Ad (w/amort) Mar-2013 $5,014 $3.10 $60,167 $37.14 $2.50 NNN (<2K SF) Tenant pays annual CPI rent increases. Analysis assumes 3%. Current rent reflects a 3% increase on 3/12. Tenant has one (1) five (5) year option at FMR with a minimum 3% increase (Not Modeled). Right to terminate effective after 3/2014 with 4 Months notice Coffee Kiosk, Inc % Mar-2000 May-2013 Current $1,219 $3.43 $14,631 $41.22 NNN+15% Ad (Fixed) Option MTM $3.50 NNN (<2K SF) Tenant is currently MTM. Analysis assumes tenant remains in place at current terms for one (1) year after the analysis start, then executes a one (1) five (5) year renewal at FMV with 3% annual rent increases and renewal costs (Modeled Below). Tenant reimburses a fixed pro rata share of 0.90% of operating expenses. Jun-2013 May-2018 FUTURE $1,243 $3.50 $14,910 $42.00 NNN+15% Ad (CAM w/amort) No Mg - $2.47 $3.34 Market OPTION Jun-2014 $1,280 $3.61 $15,357 $43.26 $878 $1,187 $3.50 NNN (<2K SF) Jun-2015 $1,318 $3.71 $15,819 $ % Jun-2016 $1,358 $3.82 $16,291 $45.89 Jun-2017 $1,398 $3.94 $16,781 $ The Cutting Edge % May-2001 Apr-2021 Current $2,709 $2.99 $32,511 $35.84 NNN+10% Ad Not Tx (No Rf) May-2013 $2,791 $3.08 $33,486 $36.92 $3.00 NNN (<2K SF) May-2014 $2,874 $3.17 $34,493 $38.03 May-2015 $2,961 $3.26 $35,527 $39.17 May-2016 $3,049 $3.36 $36,588 $40.34 May-2017 $3,140 $3.46 $37,686 $41.55 May-2018 $3,235 $3.57 $38,820 $42.80 May-2019 $3,332 $3.67 $39,981 $44.08 May-2020 $3,432 $3.78 $41,187 $45.41 Analysis assumes tenant renews at market terms with renewal costs. Tenant has annual CPI rent increases. Analysis assumes 3%. Current rent reflects a 3% increase on 5/ Chad Moore 2, % Sep-2007 Oct-2015 Current $8,318 $2.92 $99,814 $35.10 NNN+10% Ad not Tax (Full Amort Lease expires 10/12. Analysis assumes a 3- RENEW $2.50 NNN (2K - 6,100 SF) year renewal at current rent. No leasing costs assumed. Tenant has one (1) five (5) year option at FMR, not less than prior rent (Not Modeled) Angels Nails % Jan-2004 Dec-2019 Current $2,708 $2.78 $32,497 $33.33 NNN+10% Ad Not Tx (No Rf) Right to Terminate with 90-day notice. Tenant Jan-2013 $2,789 $2.86 $33,472 $34.33 $2.50 NNN (<2K SF) pays CPI rent increase effective 1/12, analysis Jan-2014 $2,873 $2.95 $34,476 $35.36 assumes 3% annual rent increases. Jan-2015 $2,959 $3.04 $35,510 $36.42 Jan-2016 $3,048 $3.13 $36,572 $37.51 Jan-2017 $3,140 $3.22 $37,674 $38.64 Jan-2018 $3,234 $3.32 $38,805 $39.80 Jan-2019 $3,330 $3.42 $39,965 $ Mandarin Express 1, % Apr-2004 Jul-2016 Current $4,609 $2.92 $55,303 $35.07 NNN+10% Ad Not Tx (No Rf) Aug-2012 $4,793 $3.04 $57,513 $36.47 $2.50 NNN (<2K SF) Aug-2013 $4,985 $3.16 $59,816 $37.93 Aug-2014 $5,184 $3.29 $62,213 $39.45 Aug-2015 $5,392 $3.42 $64,704 $ Kwik Stop Liquor 4 2, % Sep-1989 Aug-2017 Current $7,633 $3.29 $91,593 $39.53 NNN+15% Ad (CAM w/amort) No Mg Sep-2012 $8,243 $3.56 $98,913 $42.69 $2.50 NNN (2K - 6,100 SF) Sep-2013 $8,903 $3.84 $106,837 $46.11 Sep-2014 $9,616 $4.15 $115,387 $49.80 Sep-2015 $10,384 $4.48 $124,608 $ New Gemini Beauty Supply 1, % May-2004 May-2014 Current $4,239 $2.24 $50,874 $26.86 NNN+10% Ad Not Tx (No Rf) Jun-2013 $4,367 $2.31 $52,407 $27.67 $2.50 NNN (<2K SF) Right to Terminate with 120-day notice. Tenant is subject to percentage rent. Tenant has one (1) five (5) year option to renew at FMV Las Delicias Mexican Taqueria 1, % Mar-2012 Jun-2017 Current $3,302 $1.85 $39,627 $22.20 NNN + 15% Admin All Tenant has one month of free rent on 6/12 Jul-2013 $3,570 $2.00 $42,840 $24.00 $2.00 NNN (<2K SF) ($3,302.25). Analysis assumes seller to Jul-2014 $3,838 $2.15 $46,053 $25.80 guarantee. Jul-2015 $4,106 $2.30 $49,266 $27.60 Jul-2016 $4,373 $2.45 $52,479 $ A Bouquet Canyon Florist 1, % Jan-2006 Dec-2015 Current $4,255 $2.43 $51,065 $29.20 NNN+15% Ad (CAM w/amort) No Mg Jan-2013 $4,383 $2.51 $52,592 $30.07 $2.25 NNN (<2K SF) Jan-2014 $4,514 $2.58 $54,167 $30.97 Jan-2015 $4,649 $2.66 $55,793 $31.90 Capital Markets National Retail Investment Group

22 TENAnts Santa Clarita Plaza 22 Rent Roll Market Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options 6859C Elegant Cabinets 2, % Dec-2011 Nov-2016 Current $4,910 $1.85 $58,919 $22.20 NNN+10% Admin Dec-2012 $5,155 $1.94 $61,865 $23.31 $1.75 NNN (2K - 6,100 SF) Dec-2013 $5,414 $2.04 $64,970 $24.48 Dec-2014 $5,684 $2.14 $68,208 $25.70 Dec-2015 $5,967 $2.25 $71,605 $ G Bakery 1, % Jun-2012 May-2015 Current $3,057 $2.05 $36,679 $24.60 NNN ASSUMED $2.00 NNN (<2K SF) Tenant has one (1) five (5) year option at FMV. Analysis assumes tenant is in-place as of the analysis start date for a 3-year term at $2.05 /sf/mo flat. Analysis assumes any leasing costs to have already been paid Valencia Christian Center 6, % Sep-2009 Nov-2014 Current $12,750 $2.09 $153,000 $ BY ($795,621) Tenant has one (1) five (5) year option at FMV Dec-2012 $13,298 $2.18 $159,576 $26.19 $1.75 NNN (2K - 6,100 SF) (Not Modeled). Dec-2013 $13,902 $2.28 $166,826 $ Lassens Natural Foods & Vitami 4, % Oct-1998 Sep-2013 Current $5,902 $1.48 $70,822 $17.71 NNN+10% Ad not Tax (Full Amort Oct-2012 $6,080 $1.52 $72,960 $18.24 $1.50 NNN (2K - 6,100 SF) Analysis assumes tenant pays annual CPI rent increases every October, Modeled 3% SCV Clearwater 1, % Sep-2009 Oct-2014 Current $2,969 $2.54 $35,625 $30.50 NNN+15% Admin All (Full Amort) Nov-2012 $3,087 $2.64 $37,049 $31.72 $2.00 NNN (<2K SF) Nov-2013 $3,211 $2.75 $38,532 $32.99 Tenant has one (1) three (3) year option at unknown terms, but not less than 104% of prior rent (Not Modeled) Hydro Spa 1, % Mar-2011 Mar-2016 Current $6,410 $3.55 $76,923 $42.55 NNN Lease expires 3/13. Analysis assumes a 3- RENEW $2.25 NNN (<2K SF) year renewal at current rent. No leasing costs assumed Persia Restaurant 1, % Jun-2004 Sep-2014 Current $3,693 $2.58 $44,311 $30.99 NNN+10% Ad Not Tx (No Rf) Oct-2012 $4,062 $2.84 $48,749 $34.09 $2.25 NNN (<2K SF) Oct-2013 $4,468 $3.12 $53,611 $37.49 Tenant has one (1) five (5) year option at FMV, not less than prior rent (Not Modeled). Right to Terminate with six (6) months notice. Need to verify terms of Termination Option Jasmine Thai BBQ 1, % Jan-2006 Dec-2015 Current $4,218 $3.24 $50,619 $38.94 NNN+10% Ad Not Tx (No Rf) Jan-2013 $4,388 $3.38 $52,650 $40.50 $2.75 NNN (<2K SF) Jan-2014 $4,562 $3.51 $54,743 $42.11 Jan-2015 $4,745 $3.65 $56,940 $ Goodwill Industries of So Cal 13, % Oct-2009 Sep-2014 Current $27,725 $2.07 $332,705 $24.87 NNN + 15% Ad on CAM (No Mgmt) Option Oct-2012 $28,698 $2.15 $344,375 $25.74 $1.50 NNN (Anchors) Oct-2013 $29,701 $ $356,417 $ Analysis assumes tenant renews upon expiration for a ten (10) year term at market rent with a 10% midterm increase with renewal leasing costs (Modeled Below). Tenant occupies Suites 6881A, 6881B, 6883B, 6885B, and Oct-2014 Sep-2024 FUTURE $20,671 $1.55 $248,047 $18.54 NNN + 15% Ad on CAM (No Mgmt) - $5.30 $1.44 Market OPTION Oct-2019 $22,733 $1.70 $272,798 $20.39 $70,969 $19, % $1.50 NNN (Anchors) Analysis assumes tenant renews at market terms with renewal costs. 6889A Bouquet Canyon Florist (STO) 2, % Jan-2002 Dec-2015 Current $544 $0.22 $6,526 $2.66 GROSS Jan-2013 $561 $0.23 $6,732 $2.74 $0.00 (CAM ONLY) Jan-2014 $577 $0.24 $6,929 $2.82 Jan-2015 $594 $0.24 $7,125 $ B Fellowship Christian Church 5, % Apr-2002 Mar-2017 Current $3,500 $0.70 $42,000 $8.35 GROSS Landlord has the Right to Terminate with 120- Oct-2012 $3,603 $0.72 $43,241 $8.60 $0.75 NNN (2K - 6,100 SF) days notice. Oct-2013 $3,712 $0.74 $44,548 $8.86 Oct-2014 $3,825 $0.76 $45,906 $9.13 Oct-2015 $3,939 $0.78 $47,263 $9.40 Oct-2016 $4,056 $0.81 $48,671 $ A Suncal Insurance % Sep-2005 Aug-2015 Current $2,067 $2.67 $24,807 $32.01 GROSS Lease expires 8/12. Analysis assumes a 3- RENEW $2.50 NNN (Bldg 26893) year renewal at current rent. No leasing costs assumed. 6893C Maiboxes, Etc % Jun-2000 Aug-2018 Current $2,722 $3.11 $32,662 $37.37 NNN+10% Ad Not Tx (No Rf) Sep-2012 $2,858 $3.27 $34,296 $39.24 $2.50 NNN (Bldg 26893) Sep-2013 $2,944 $3.37 $35,327 $40.42 Sep-2014 $3,032 $3.47 $36,385 $41.63 Sep-2015 $3,123 $3.57 $37,477 $42.88 Sep-2016 $3,216 $3.68 $38,596 $44.16 Sep-2017 $3,313 $3.79 $39,758 $45.49 Analysis assumes tenant pays annual CPI rent increases every September, effective 9/2013, Modeled 3%.

23 Rent Roll Market Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options 6893E Altered Flesh Tattoo % Mar-2003 Feb-2016 Current $2,845 $3.27 $34,140 $39.24 NNN+10% Ad Not Tx (No Rf) Lease expires 2/13. Analysis assumes a 3- RENEW Mar-2012 $3,130 $3.60 $37,558 $43.17 $2.50 NNN (Bldg 26893) year renewal at current rent. No leasing costs assumed. 6893G Victoria Prasol DDS, Inc. 1, % Sep-2003 Sep-2013 Current $2,026 $1.73 $24,311 $20.81 GROSS Oct-2012 $2,087 $1.79 $25,042 $21.44 $1.75 NNN (Bldg 26893) 6893H The Tailgate 1, % Jul-2003 Aug-2013 Current $6,010 $3.22 $72,120 $38.69 GROSS Sep-2012 $6,190 $3.32 $74,280 $39.85 $3.00 NNN (Bldg 26893) 6893J Magical Asian Spa 1, % Jan-2009 Jun-2015 Current $2,758 $1.83 $33,097 $21.90 CAM + 15% Admin (w/amort) Lease expires 6/12. Analysis assumes a 3- RENEW $1.35 NNN (Bldg 26893) year renewal at current rent. No leasing costs assumed. TOTALS / AVERAGES 117,576 $180,131 $1.88 $2,161,574 $22.59 OCCUPIED SqFt 95, % VACANT SqFt 21, % TOTAL SqFt 117, % Capital Markets National Retail Investment Group

24 FINANCIALS Santa Clarita Plaza 24 Financial Assumptions GLOBAL VACANT SPACE LEASING SECOND GENERATION LEASING Bldg <2,000 SF 2K - 6,100 SF Goodwill / Rite Aid Analysis Period Occupancy and Absorption Retention Ratio 65% 65% 65% 75% Commencement Date June 1, 2012 Projected Vacant at 6/1/12 21,886 SF End Date May 31, 2022 Currently Vacant as of 3/1/12 21,886 SF Financial Terms Term 10 Years Percentage Vacant at 3/1/ % 2012 Monthly Market Rent See Rent Roll See Rent Roll See Rent Roll $1.50 PSF Absorption Period 18 Month(s) Rent Adjustment 3.00% Annually 3.00% Annually 2.00% Annually 10% Every 5 Years Area Measures Absorption Period Start Date June 1, 2012 Lease Term 5 Years 5 Years 7 Years 10 Years Building Square Feet (NRSF) 117,576 SF First Absorption Occurs On December 1, 2013 Expense Reimbursement Type NNN NNN NNN NNN (No Mgmt) [4] Last Absorption Occurs On December 1, 2013 Growth Rates Tenanting Costs Consumer Price Index (CPI) 3.00% Financial Terms Bldg <2,000 SF 2K - 6,100 SF Rent Abatements [7] Other Income Growth Rate 3.00% 2012 Monthly Market Rent See Rent Roll See Rent Roll See Rent Roll New 2 Month(s) 2 Month(s) 3 Month(s) 3 Month(s) Operating Expenses 3.00% Rent Adjustment 3.00% Annually 3.00% Annually 2.00% Annually Renewal 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s) Real Estate Taxes 2.00% Lease Term 5 Years 5 Years 7 Years Weighted Average 0.70 Month(s) 0.70 Month(s) 1.05 Month(s) 0.75 Month(s) Market Rent Growth Expense Reimbursement Type NNN NNN NNN [4] CY % Rent Abatements 0 Month(s) 0 Month(s) 0 Month(s) Tenant Improvements ($/NRSF) CY % Tenant Improvements ($/NRSF) $12.00 PSF $12.00 PSF $15.00 PSF New $12.00 PSF $12.00 PSF $15.00 PSF $25.00 PSF CY % Commissions 6.00% 6.00% 6.00% Renewal $3.00 PSF $2.40 PSF $3.00 PSF $5.00 PSF CY % Weighted Average $6.15 PSF $5.76 PSF $7.20 PSF $10.00 PSF CY % EXPENSES CY % Commissions [8] CY % Operating Expense Source 2011 Actuals [5] New 6.00% 6.00% 6.00% 4.50% CY % Renewal 1.50% 1.50% 1.50% 1.00% CY % Management Fee (% of EGR) 2.50% Weighted Average 3.08% 3.08% 3.08% 1.88% CY % Real Estate Taxes Reassessed Yes [6] Downtime General Vacancy Loss 7.00% [1] Millage Rate % New 9 Month(s) 9 Month(s) 9 Month(s) 12 Month(s) Special Assessments $54,777 Weighted Average 3 Month(s) 3 Month(s) 3 Month(s) 3 Month(s) Capital Reserves (CY 2012 Value) $0.15 PSF [2] Rite Aid Percentage Rent Estimated Annual Sales $4,767,199 [3] Notes: All market rent rates are stated on calendar-year basis. [1] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime. The following tenants are excluded from this loss factor for current and assumed option terms: Bank of America, Goodwill and Rite Aid. [2] Capital Reserves do not inflate during the term of the analysis. [3] Analysis models 2011 gross sales of $4,767,199 grown by 3% for Analysis assumes sales volume to inflate 3% annually. Tenant pays a minimum annual base rent of $146,693 plus 3% of Gross Sales over a natural breakpoint. [4] Analysis assumes all future tenants are assumed to reimburse their pro rata share of all expenses, including Management Fee. [5] Operating expenses are based on the 2011 Actuals, grown by 3% for [6] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of % plus special assessments of $54,777. [7] Rent Abatement includes NNN charges as well as base rent. [8] Leasing Commissions are calculated by applying 100% of the rates shown above for lease years 1-5, and 50% of the above rates for lease years 6+. [9] The following tenants are assumed to exercise options: Bank of America, Goodwill, Rite Aid and Coffee Kiosk. [10] The following tenants are assumed to renew for 3-years at previous rent with no leasing costs assumed: Altered Flesh Tattoo, Chad Moore, Hydro Spa, Magical Asian Spa and Suncal Insurance. [11] Current tenants reimburse amortized capital repairs.

25 Capital Markets National Retail Investment Group

26 Financials Santa Clarita Plaza 26 Cash Flow Projections Fiscal Year Ending - May Physical Occupancy 81.39% 88.85% 97.75% 97.50% 97.51% 98.77% 94.90% 98.49% 97.11% 97.46% 99.02% Total Operating Expenses PSF Per Year $5.52 $5.70 $5.84 $5.97 $6.09 $6.21 $6.35 $6.51 $6.65 $6.81 $7.36 [1] FY 2013 REVENUES $/SF/MO Scheduled Base Rent Gross Potential Rent $1.91 $2,690,249 $2,754,787 $2,715,903 $2,708,045 $2,707,104 $2,679,993 $2,730,009 $2,812,600 $2,902,546 $2,989,920 $3,066,209 Absorption & Turnover Vacancy (0.35) (487,671) (297,261) (65,958) (88,266) (70,881) (37,263) (148,690) (63,344) (132,642) (100,807) (44,312) Base Rent Abatements (11,877) (22,646) (19,717) (13,801) (24,422) (34,958) (14,781) (35,394) (18,922) (28,601) Total Scheduled Base Rent ,202,578 2,445,649 2,627,299 2,600,062 2,622,422 2,618,308 2,546,361 2,734,475 2,734,510 2,870,191 2,993,296 Expense Reimbursements , , , , , , , , , , ,586 Retail Sales Percent Revenue ,455 6,930 11,538 16,285 21,175 26, Roof Income ,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 TOTAL GROSS REVENUE ,608,987 2,909,975 3,177,382 3,186,452 3,232,211 3,254,423 3,212,874 3,439,708 3,430,341 3,609,963 3,784,882 General Vacancy Loss (106,262) (87,752) (106,170) (138,886) (28,756) (122,061) (55,570) (96,846) (160,505) EFFECTIVE GROSS REVENUE ,608,987 2,909,975 3,071,120 3,098,700 3,126,041 3,115,537 3,184,118 3,317,647 3,374,771 3,513,117 3,624,377 OPERATING EXPENSES Repairs & Maintenance (0.11) (157,881) (162,617) (167,496) (172,522) (177,699) (183,028) (188,519) (194,176) (200,000) (206,000) (212,180) Utilities (0.03) (41,701) (42,953) (44,242) (45,569) (46,936) (48,344) (49,794) (51,288) (52,827) (54,412) (56,044) Management Fee (0.05) (65,225) (72,749) (76,778) (77,468) (78,151) (77,888) (79,603) (82,941) (84,369) (87,828) (90,609) Insurance (0.03) (37,050) (38,162) (39,307) (40,486) (41,701) (42,952) (44,240) (45,567) (46,934) (48,342) (49,793) Property Taxes (0.25) (347,419) (353,272) (359,241) (365,331) (371,542) (377,877) (384,339) (390,930) (397,653) (404,511) (456,389) TOTAL OPERATING EXPENSES (0.46) (649,276) (669,753) (687,064) (701,376) (716,029) (730,089) (746,495) (764,902) (781,783) (801,093) (865,015) NET OPERATING INCOME ,959,711 2,240,222 2,384,056 2,397,324 2,410,012 2,385,448 2,437,623 2,552,745 2,592,988 2,712,024 2,759,362 CAPITAL COSTS Tenant Improvements (347,899) (156,732) (67,561) (74,116) (102,690) (138,922) (50,963) (147,450) (90,327) (101,534) Leasing Commissions (196,585) (74,910) (49,673) (51,878) (55,173) (96,759) (40,910) (81,172) (71,486) (65,740) Capital Reserves (0.01) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) TOTAL CAPITAL COSTS (0.01) (17,636) (562,120) (249,278) (134,870) (143,630) (175,499) (253,317) (109,509) (246,258) (179,449) (184,910) OPERATING CASH FLOW $1.38 $1,942,075 $1,678,102 $2,134,778 $2,262,454 $2,266,382 $2,209,949 $2,184,306 $2,443,236 $2,346,730 $2,532,575 $2,574,452 ACQUISITION & RESIDUAL SALE Purchase Price ($24,925,000) Tenant Improvements ($297,038) 0 297, Leasing Commissions ($166,273) 0 166, All Cash Net Residual Value [2] ,974,645 IRR CASH FLOW BEFORE DEBT ($25,388,000) $1,942,075 $2,141,413 $2,134,778 $2,262,454 $2,266,382 $2,209,949 $2,184,306 $2,443,236 $2,346,730 $36,507, % TOTAL FINANCING OBLIGATION [3] Loan Funding / Payoff 19,500, (18,278,386) Loan Fees (195,000) (195,000) Leveraged Annual Debt Service 0 (1,252,680) (1,252,680) (1,252,680) (1,252,680) (1,252,680) (1,460,176) (1,479,039) (1,479,039) (1,479,039) (1,479,039) IRR CASH FLOW AFTER DEBT ($6,083,000) $689,395 $888,733 $882,098 $1,009,774 $1,013,702 $554,773 $705,267 $964,197 $867,691 $16,749, % NOI Return 7.72% 8.82% 9.39% 9.44% 9.49% 9.40% 9.60% 10.05% 10.21% 10.68% LEVERAGED Cash Return 11.33% 14.61% 14.50% 16.60% 16.66% 9.12% 11.59% 15.85% 14.26% 17.32% [1] Based on 117,576 square feet. [2] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 8.00% and applying a 1.50% Cost of Sale. [3] See schedule titled 'Detailed Leverage Summary' for further detail.

27 Leveraged Summary LEVERAGE SUMMARY [1] ASSUMABLE LOAN REFINANCE OF ASSUMABLE Initial Loan Funding (as of Jun-12) $19,500,000 $19,500,000 Loan-To-Total Investment/Value 76.81% Prior Balance Loan-To-Price 78.23% Prior Balance Funding Date Jul-07 Jul-17 Maturity Date Jun-17 May-22 Loan Term 5.1 Years 4.9 Years Amortization Period Interest Only 30 Years Interest Rate 6.42% 6.50% Origination Fee on Initial Loan Funding 1.00% 1.00% Loan Constant 6.42% 7.58% Debt Service Coverage Ratio (NOI) 1.56x 1.61x Debt Service Coverage Ratio (CF) 1.55x 1.49x Total Investment as of June 1, 2012 $25,388,000 Total Initial Loan Principal (19,500,000) Total Initial Loan Fees 195,000 Initial Equity $6,083,000 LEVERAGED IRR 19.98% [1] Leveraged analysis is based on existing assumable financing. Analysis assumes the property is refinanced Jul-17. Lease expirations Total Annual Cumulative Date Tenant Suites SF (% of SF) [1] (% of SF) [1] May-13 Coffee Kiosk, Inc % FYE 2013 Totals % 0.30% Aug-13 The Tailgate 6893H 1, % Sep-13 Lassens Natural Foods & Vitami , % Sep-13 Victoria Prasol DDS, Inc. 6893G 1, % Feb Minute Wash , % May-14 New Gemini Beauty Supply , % FYE 2014 Totals 10, % 9.27% Sep-14 Persia Restaurant , % Sep-14 Goodwill Industries of So Cal , % Oct-14 SCV Clearwater , % Nov-14 Valencia Christian Center , % May-15 Bakery 6859G 1, % FYE 2015 Totals 23, % 29.31% Jun-15 Magical Asian Spa 6893J 1, % Aug-15 Suncal Insurance 6893A % Oct-15 Chad Moore , % Dec-15 Bouquet Canyon Florist 6859A 1, % Dec-15 Jasmine Thai BBQ , % Dec-15 Bouquet Canyon Florist (STO) 6889A 2, % Feb-16 Altered Flesh Tattoo 6893E % Mar-16 Hydro Spa , % FYE 2016 Totals 13, % 40.63% Jul-16 Mandarin Express , % Nov-16 Elegant Cabinets 6859C 2, % Dec-16 Bank of America , % Feb-17 Pet Supply Saugus , % Mar-17 Fellowship Christian Church 6889B 5, % FYE 2017 Totals 19, % 57.38% Jun-17 Las Delicias Mexican Taqueria , % Aug-17 Kwik Stop Liquor , % May-18 Rite Aid , % FYE 2018 Totals 24, % 77.91% Aug-18 Maiboxes, Etc. 6893C % Dec-18 One Hour Martinizing , % FYE 2019 Totals 2, % 79.78% Dec-19 Angels Nails % FYE 2020 Totals % 80.61% Apr-21 The Cutting Edge % FYE 2021 Totals % 81.39% Subtotal 95, % Vacant 21, % % TOTAL 117, % [1] Based on 117,576 total building square feet. [2] Tenant's existing rent is on a GROSS basis. Analysis models the equivalent NNN rent for comparison purposes. [3] Tenant's existing rent is on a Full Service Gross with Base Year basis. Analysis models the equivalent NNN rent for comparison purpos Capital Markets National Retail Investment Group