GROCERY OUTLET RECENT 15-YEAR LEASE EXTENSION OAKHURST, CA

CORPORATE LEASE EXTREMELY LOW RENT TO SALES RATIO GATEWAY TO YOSEMITE 2

Overview GROCERY OUTLET 40301 JUNCTION DRIVE, OAKHURST, CA 93644 $3,666,667 PRICE 6.00% CAP LEASABLE SF 18,050 SF LAND AREA 1.70 Acres LEASE TYPE LL Roof & Structure LEASE EXPIRATION 09/30/2033 PPSF $203 YEAR RENOVATED 2017 Corporate Lease Top performing store with strong sales High pride of ownership New 15-year lease extension Brand new interior flooring 10% rental increases in option 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. 3

Investment Highlights THE SUBJECT PROPERTY is in the top 10% of all stores company-wide in terms of sales, and has an extremely low rent to sales ratio. LOCATION HIGHLIGHTS - The subject property is strategically located in Oakhurst, CA. The average household income within 5 miles is over $74,000. Grocery Outlet chose this location based on its demographics and need for an all-purpose discount grocery store. There is ideal retail synergy between the regional/local tenants and Grocery Outlet. The property is located one block from California s historic state route 49 and fifteen miles from Yosemite National Park, which attracts tourists from around the world. Contact the team RICK SANNER rsanner@capitalpacific.com PH: 415.274.2709 CA BRE# 01792433 LEASE HIGHLIGHTS - Landlord is responsible for roof, structure, and underground utilities. Tenant is responsible for utilities, taxes, insurance, and CAM expenses. STRONG CORPORATE TENANT - Grocery Outlet is one of largest extreme value grocery retailers in the United States with over $1.6 billion in sales. It is often considered the T.J. Maxx of food. Grocery Outlet currently operates 280+ stores in California, Oregon, Washington, Idaho, Nevada, and Pennsylvania, and has aggressive plans to expand for the foreseeable future. AVERAGE HOUSEHOLD INCOME IS OVER $68,000 WITHIN 5 MILES OF THE SUBJECT PROPERTY 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. 4

Aerial 41 BEST DEAL TIRE AND WHEEL SUPERNAW S BAR-B-Q SLIM S KOFFEE SHAK SAN FRANCISCO OAK ROOM DIVAS & DUDES APPAREL BEAR PAW QUILTS & MORE 49 YOSEMITE SIERRA INN YOSEMITE SOUTHGATE HOTEL AND SUITES ARTIFACTS WONDERFUL TREASURES GIFT GULCH ROCK SHOP GOOD OF THINGS SULLIVAN S TIRE PROS SWEET DREAMS CAKERY SOUTH GATE BREWING COMPANY OKA JAPANESE Junction Drive MET CINEMA SUNNY NAILS AND SPA 41 YOSEMITE WINE TAILS OAKHURST FEED & PET SUPPLIES CRABCAKES RESTAURANT FASHION 41 OAKHURST OFFICE OUTLET Bass Lake Elementary SIERRA SEAFOOD SPECIALTIES Oakhurst Elementary Oak Mill Village PETE S PLACE VINTAGE CHIC TAQUERIA PLAZUELAS SIERRA STAR PHYSICAL THERAPY High School Road STEVE S PET SHOP Yosemite High School Yosemite Adult School Crane Valley Road 41 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. 5

Retail Aerial 6

Submarket Overview RETAILERS IN CLOSE PROXIMITY INCLUDE: Mcdonald s Raley s Dollar Tree Bank of America Taco Bell CVS Vons Big 5 Sporting Goods Jack in the Box Round Table Pizza Starbucks Best Western Comfort Inn Kaiser Permanente Met Cinema 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. BUSINESS SUMMARY TOTAL 1-MILE 3-MILES 5-MILES Businesses 409 609 713 Employees 3,059 4,518 5,140 Residential Population 1,034 6,048 10,504 KEY 1-MILE 3-MILES 5-MILES

Income & Expense PRICE $3,666,667 Price Per Square Foot: $203.14 Capitalization Rate: 6.00% Total Rentable Area (SF): 18,050 Lot Size (AC): 1.70 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $12.19 $220,000 Effective Gross Income $12.19 $220,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $220,000 1 - Landlord is responsible for roof, structure, and underground utilities. 2 - Current rent is $200,000 annually. Seller will credit buyer the difference in rent from day of close until said rental increase occurs 10/1/18. 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. 8

Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT NAME SQ. FT. CURRENT RENT MONTHLY RENT YEARLY RENT MONTHLY RENT/FT YEARLY RENT/FT Grocery Outlet 18,050 09/26/13 09/30/18 $16,667 $200,000 $0.92 $11.08 10/01/18 09/30/28 $220,000 $18,333 $220,000 $1.02 $12.19 10/01/28 09/30/33 $20,167 $242,000 $1.12 $13.41 Option 1 10/01/33 09/30/38 $22,183 $266,200 $1.23 $14.75 Option 2 10/01/38 09/30/43 FMV Option 3 10/01/43 09/30/48 FMV TOTALS: 18,050 $220,000 $18,333 $220,000 $1.02 $12.19 1 Current rent is $200,000 annually. Seller will credit buyer the difference in rent from day of close until said rental increase occurs 10/1/18. 2 Rents in Options Three (3) and Four (4) shall be determined based upon Fair Market Rent. Call broker for details. 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. 9

Site Plan 18,050 RENTABLE SF 1.70 ACRES Junction Drive THE CAT S MEOW GOT HAIR? SALON This site plan is a rendering that has been created based on sources we believe to be reliable. 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. 10

Tenant Overview ABOUT GROCERY OUTLET Grocery Outlet, Inc. is a supermarket chain that focuses on discount, overstocked, and closeout products from both name brand and private label suppliers, offered at up to 60% less than conventional retail prices. The company s stores also carry food staples such as fresh meat, dairy, and bread. With its corporate headquarters in Emeryville, CA, Grocery Outlet operates 280+ locations in California, Oregon, Washington, Idaho, Nevada, and Pennsylvania. The chain is planning to expand in its current markets as well as along the East Coast, with at least seventy new stores projected over the next four years. The chain has yielded rich dividends, with annual sales growing from just over $500 million in 2000 to over $1.6 billion in 2016. 280+ LOCATIONS IN 6 STATES TOTAL 2016 SALES $1.6B 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. 11

Demographics OAKHURST POPULATION 1-MILE 3-MILES 5-MILES 2010 1,024 5,857 10,193 2017 1,034 6,048 10,504 2022 1,052 6,223 10,805 2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $63,898 $69,028 $74,011 FRESNO (55 MIN 46 MILES) Median $44,082 $46,429 $49,605 TOP EMPLOYERS EMPLOYER Children s Hospital Central CA State of California Madera Unified School District County of Madera THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $74K 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. 12

Location Overview OAKHURST, CALIFORNIA YOSEMITE NATIONAL PARK OAKHURST is a mountain community located along the Fresno River and is considered the Gateway to Yosemite, as it is the last city visitors encounter before reaching the main entrance to the world famous park. Oakhurst is home to numerous other world renowned destinations, such as Bass Lake, the Sierra National Forest, and Nelder Grove of Giant Sequoias. Oakhurst s location southeast of San Francisco provides easy access to the central California coast, Sierra Nevada mountains and national parks, and major cities. Oakhurst is part of the Madera metropolitan statistical area and is located approximately thirty-five miles to the northeast of Fresno. OAKHURST IS KNOWN AS THE GATEWAY TO YOSEMITE 8,826 OAKHURST POPULATION (ESTIMATED) 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. 13

We d love to hear from you. RICK SANNER rsanner@capitalpacific.com PH: 415.274.2709 CA BRE# 01792433 CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: ZEB RIPPLE JOHN ANDREINI ZANDY SMITH JACK NAVARRA CHRIS KOSTANECKI JOE CACCAMO RICK SANNER CHRIS PETERS DAVE LUCAS AARON SUSMAN 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.