FOR SALE - California Dept of Transportation Leased Investment

FOR SALE - California Dept of Transportation Leased Investment 722 E. Barioni Blvd Imperial, CA Exclusively Listed By: LEE & ASSOCIATES Commercial Real Estate Services Lee & Associates Commercial Real Estate Services - NSDC 1900 Wright Place Suite 200 - Carlsbad, CA 92008 P: (760) 929-9700 F: (760) 929-9977 Al Apuzzo, Principal 760.448.2442 aapuzzo@lee-associates.com CA Lic# 01323215 Michael McFarland 760.496.7555 michael@cardindust.com CA Lic# 01291540 Matt Weaver, Principal 760.448.2458 mweaver@lee-associates.com CA Lic# 01367183 Patrick Miller, CCIM, Principal 760.929.9700 pmiller@lee-associates.com CA Lic# 00296599

DISCLAIMER Lee & Associates hereby advises all prospective purchasers of this investment property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a single-tenant property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single-tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single-tenant property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Lee & Associates Investments and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single-tenant property. Lee & Associates Commercial Real Estate Services - NSDC 1900 Wright Place Suite 200 - Carlsbad, CA 92008 P: (760) 929-9700 F: (760) 929-9977

722 E. Barioni Blvd, Imperial, CA TABLE OF CONTENTS Executive Summary 4 Financial Overview 5 Property & Investment Overview 6 Tenant Overview 7 Parcel Map 8 Aerial 11 Location Map 13 Area Overview 14 Demographic Summary 15

EXECUTIVE SUMMARY INVESTMENT SUMMARY Price: $739,445 NOI: $59,733 CAP Rate: 8.08% PROPERTY SUMMARY DEMOGRAPHICS Demographics: Traffic Counts: 2014 Population 1 Mile: 3,060-3 Miles: 15,607-5 Miles: 55,516 Average HH Income: $61,807 (3 Mi) E. Barioni Blvd: 23,000 ADT Address: 722 E. Barioni Blvd Imperial, CA Building Square Feet: 2,860 SF Acres: 3.18 Zoning: I-2 (Industrial-Rail Served) Ownership: Fee SImple Year Built: Unknown APN: 064-074-026-000 (A Portion of/new APN Being Assigned) LEASE SUMMARY Tenant: California Department of Transportation Lease Commencement: October 3, 2013 Lease Expiration: October 2, 2018 Lease Term: 5 Years Lease Type: Gross Base Rent Schedule: 10/3/2013-10/2/2018 $71,004/year Options: (1) 3 Year Option at Market Rate CLICK HERE FOR LEASE AGREEMENT Page 4 of 14

FINANCIAL OVERVIEW PROFORMA SALE & FINANCING INFORMATION ACTUAL INCOME Sale Price $739,445 Down Payment 100.0% $739,445 Gross Potential Income $71,004 CAP Rate 8.08% Less: Vacancy/Credit Loss $0 Loan Amount $0 Effective Gross Income $71,004 Loan Type N/A Less: Expenses $11,271 Interest Rate 0.00% Net Operating Income $59,733 Amortization (Years) 0 Debt Service $0 Loan To Value 0.0% Net Cash Flow After Debt Service $59,733 Debt Coverage Ratio N/A Cash on Cash Return 8.1% Principal Reduction $0 Total Building Size 2,860 Total Return 8.1% Total Land Acreage 6.11 ACTUAL EXPENSES Real Estate Taxes @ 1.1% of Sale Price $8,134 Insurance $900 Maintenance & Repairs $1,077 Alarm System Service Contract $20 Ice Machine Service Contract $180 Landscape Service Contract $960 TOTAL EXPENSES $11,271 Page 5 of 14

PROPERTY & INVESTMENT OVERVIEW PROPERTY OVERVIEW Lee & Associates is pleased to exclusively offer for sale an approximate 2,860 square foot tenant office building located on 3.18 acres of industrial land in Imperial, California. The subject property is part of Imperial County, positioned 1/3 of a mile east of Highway 86 and 3 miles west of Highway 111 approximately 8 miles south of Brawley and 3 miles north of El Centro. Located just 13 miles north of the International Border with Mexico, this site exists in the foreign trade zone. INVESTMENT OVERVIEW The subject property is a single tenant operating lease investment to California s Department of Transportation. Cal Trans has leased this site since 2000, in which they have renewed in years 2003, 2008, and 2013. The current lease term began on October 3, 2013 and expires on October 2, 2018. Caltrans has one addtional 3-year option at market. INVESTMENT HIGHLIGHTS Tenant: California s Department of Transportation is a state-funded agency that manages more than 50,000 miles of freeways and highways, provides inner-city rail services, and collaborates with local agencies to improve state-wide transportation. Location: Opportunity to own land in the fastest growing city in Imperial County. At build-out, population in Imperial is to exceed 75,000. Incentives: Property is located in the Hub Zone and Foreign Trade Zone. Ideal 1031 Exchange: Opportunity for an investor to acquire a ground lease with a reliable tenant in a growing market. Page 6 of 14

TENANT OVERVIEW Caltrans manages more than 50,000 miles of California s highway and freeway lanes, provides inter-city rail services, permits more than 400 public-use airports and special-use hospital heliports, and works with local agencies. Caltrans carries out its mission of improving mobility across California with six primary programs: Aeronautics, Highway Transportation, Mass Transportation, Transportation Planning, Administration and the Equipment Service Center. The department has been active in moving the people and commerce of California for more than 100 years from a loosely connected web of footpaths and rutted wagon routes to the sophisticated system that today serves the transportation needs of more than 30 million residents. By the early 1850s, the state s miners and merchants had succeeded in weaving a dusty network of supply roads that bogged down into near impassability during the winter rains. However, by the turn of the century, California became one of the first states to name a Bureau of Highways Commission: R.C. Irvine of Sacramento, Marsden Manson of San Francisco and J.L. Maude of Riverside. Meeting for the first time on April 11, 1895, in Sacramento, the three men began the first few steps in a buckboard journey that would take them over some 16,500 miles of roadways. A year and a half later, the three men recommended a 14,000- mile network that would become the basis for today s State Highway System. From the beginning, the commissioners worked from a simple philosophy: The state highways should be the great arteries of a road system from which should branch out the minor highways serving counties and districts. It should link the great belts of timber, fruit, agricultural and mineral wealth to the state s population centers and county seats. As a result, the Legislature in 1895 purchased the Lake Tahoe Wagon Toll Road as the first state highway. The route is known today as Highway 50 and slices through the Sierra Nevada from Sacramento to Placerville and South Lake Tahoe before descending into Nevada. Following World War I, gasoline taxes began to provide stable funds for highway construction, operation and maintenance. And the growing number of state highway departments united to form the American Association of State Highway Officials, which worked to establish national design standards across the country. The seeds of the farm-to-market road system were planted in the early 1930s when the U.S. Bureau of Public Roads called on America to get the farmer out of the mud, a slogan that led to a greatly improved and expanded system of paved rural roads. Another important milestone of the 1930s was the completion of State Route 1, the Pacific Coast Highway. The 1940s saw the birth of the freeway era with completion in 1940 of the Arroyo Seco Freeway, among the first in the nation. California s freeway- and expressway-building sped up in the 1947 with passage of the Collier-Burns Act, which laid the basis for the state s current freeway-expressway system. Within seven years President Dwight D. Eisenhower proposed the National System of Interstate And Defense Highways. The awarding of the 1960 Winter Olympics to Squaw Valley added impetus to building Interstate 80, the first all-weather, trans-sierra Nevada highway. The divided highway roughly parallels the transcontinental railroad, built in 1869, and passes by the last site of the ill-fated Donner Party of 1846. In the wake of the frenetic 1960s, the 1970s were a time of austerity. The then-current political philosophy urged alternatives to highway building, a trend that would continue into the 1980s. Such thinking led to a new name for the department, Caltrans, short for the California Department of Transportation. The name change was emblematic of new thinking, and a rise in the concept that while highways have long been vital to the state, other forms of transportation were emerging to complement roadways. In short, Caltrans development reflects the changes of American society for more than a century. From a rural society dominated by Euro-American pioneers who exploited the state s vast natural resources to a technologically, global- and service-oriented economy, California has grown prosperous. And Caltrans has grown with it. Page 7 of 14

PARCEL MAP Page 8 of 14

AERIAL OVERVIEW - SURROUNDING AREA Subject Property Naval Air Facility El Centro E. Barioni Blvd Imperial Cty Airport N. Imperial Ave California Mid-Winter Fairgrounds E. Barioni Blvd EL CENTRO El Centro Regional Medical Ctr Page 9 of 14

OVERHEAD AERIAL VIEW N Imperial Ave E Barioni Blvd 3.18 Ac W 5th St S N St S P St W 2nd St W Houston Page 10 of 14

LOCATION MAP Palm Springs Joshua Tree National Park Hemet Temecula Fallbrook SALTON SEA Oceanside Encinitas Escondido Anza-Borrego Desert State Park Brawley Subject Property La Jolla Alpine San Diego Chula Vista US/MEXICO BORDER Mexicali Page 11 of 14

AREA OVERVIEW CITY OF IMPERIAL Date of Incorporation: July 12, 1904 Population: 16,184 (Est. 2013) Land Area: 5.86 square miles Location: Imperial is located 8 miles south of Brawley and 13 miles north of Mexico. Bordering El Centro, Imperial is positioned less than 5 miles from Interstate 8. TRANSPORTATION FACILITIES AND SERVICES Highways/Freeways: Interstate 8 is located less than 5 miles south of Imperial, while Highway 86 and Highway 111 run North/South between Brawley and El Centro. Air Facilities: Imperial County Airport Public Transit: Imperial Valley Transit and Imperial Dial-A-Ride include bus service throughout Imperial Valley and adjacent cities. Page 12 of 14

722 E Barioni Blvd Imperial, CA 92251 1 mi radius 3 mi radius 5 mi radius DEMOGRAPHIC SUMMARY RS1 POPULATION 2014 Estimated Population 3,060 15,607 55,516 2019 Projected Population 3,304 16,850 59,886 2010 Census Population 2,864 14,610 52,026 2000 Census Population 2,851 10,154 45,532 Projected Annual Growth 2014 to 2019 1.6% 1.6% 1.6% Historical Annual Growth 2000 to 2014 0.5% 3.8% 1.6% 2014 Median Age 32.8 31.1 31.3 HOUSEHOLDS RACE AND ETHNICITY 2014 Estimated Households 953 4,532 16,416 2019 Projected Households 986 4,683 16,960 2010 Census Households 926 4,402 15,945 2000 Census Households 889 3,000 13,680 Projected Annual Growth 2014 to 2019 0.7% 0.7% 0.7% Historical Annual Growth 2000 to 2014 0.5% 3.6% 1.4% 2014 Estimated White 60.6% 63.0% 60.5% 2014 Estimated Black or African American 2.0% 1.9% 2.5% 2014 Estimated Asian or Pacific Islander 0.9% 2.2% 2.0% 2014 Estimated American Indian or Native Alaskan 0.8% 1.1% 1.2% 2014 Estimated Other Races 35.7% 31.7% 33.7% 2014 Estimated Hispanic 75.5% 76.4% 80.7% INCOME EDUCATION (AGE 25+) BUSINESS 2014 Estimated Average Household Income $44,562 $61,807 $56,913 2014 Estimated Median Household Income $38,302 $53,688 $46,149 2014 Estimated Per Capita Income $13,926 $18,029 $17,069 2014 Estimated Elementary (Grade Level 0 to 8) 24.6% 16.1% 18.1% 2014 Estimated Some High School (Grade Level 9 to 11) 12.0% 10.2% 14.3% 2014 Estimated High School Graduate 19.5% 19.4% 20.8% 2014 Estimated Some College 28.2% 27.5% 23.8% 2014 Estimated Associates Degree Only 7.0% 8.6% 8.2% 2014 Estimated Bachelors Degree Only 4.9% 11.8% 9.8% 2014 Estimated Graduate Degree 3.8% 6.4% 4.9% 2014 Estimated Total Businesses 157 490 2,165 2014 Estimated Total Employees 2,316 6,663 26,682 2014 Estimated Employee Population per Business 14.8 13.6 12.3 2014 Estimated Residential Population per Business 19.5 31.9 25.6 Page 13 of 14

FOR SALE - California Dept of Transportation Leased Investment 722 E. Barioni Blvd Imperial, CA Exclusively Listed By: LEE & ASSOCIATES Commercial Real Estate Services Al Apuzzo, Principal 760.448.2442 aapuzzo@lee-associates.com CA Lic# 01323215 Michael McFarland 760.496.7555 michael@cardindust.com CA Lic# 01291540 Matt Weaver, Principal 760.448.2458 mweaver@lee-associates.com CA Lic# 01367183 Patrick Miller, CCIM, Principal 760.929.9700 pmiller@lee-associates.com CA Lic# 00296599 Lee & Associates Commercial Real Estate Services - NSDC 1900 Wright Place Suite 200 - Carlsbad, CA 92008 P: (760) 929-9700 F: (760) 929-9977