Chase Bank La Quinta, CA Offering Memorandum

Chase Bank La Quinta, CA Offering Memorandum

Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Net Leased Disclaimer Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased 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. Marcus & Millichap 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 net leased 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 net leased 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

exclusively listed Exclusively listed by: Alvin Mansour Senior Vice President Investments SAN DIEGO Tel: (858) 373-3184 Fax: (858) 373-3249 amansour@marcusmillichap.com Licenses: CA 01391653 TX 0606255 Kevin Mansour Managing Partner SAN DIEGO Tel: (858) 373-3187 Fax: (858) 373-3249 kmansour@marcusmillichap.com Licenses: CA 01878011 OFFICES NATIONWIDE www.marcusmillichap.com

FINANCIAL ANALYSIS chase bank Financial Overview EXECUTIVE SUMMARY LOCATION 78805 Highway 111 La Quinta, CA 92253 OFFERING SUMMARY Price $4,555,000 LEASE TERM ANNUAL BASE RENT MANAGEMENT & ADMINISTRATION FEE NET OPERATING INCOME CAP RATE PROPERTY DESCRIPTION Gross Leasable Area (GLA) 5,441 Lot Size 0.59 Acres +/- Year Built 2004 Net Operating Income $215,874.94 Cap Rate 4.74% Average NOI Over Initial Term $231,947.89 Average Cap Rate Over Initial Term 5.09% 5/17/2015-5/16/2016 5/17/2016-5/16/2017 5/17/2017-5/16/2018 5/17/2018-5/16/2019 5/17/2019-5/16/2020 5/17/2020-5/16/2021 5/17/2021-5/16/2022 5/17/2022-5/16/2023 5/17/2023-5/16/2024 $209,587.32 $214,157.76 $218,075.28 $222,645.72 $227,216.16 $231,786.60 $236,357.04 $240,927.48 $245,497.92 $6,287.62 $6,424.73 $6,542.26 $6,679.37 $6,816.48 $6,953.60 $7,090.71 $7,227.82 $7,364.94 AVERAGE $215,874.94 $220,582.49 $224,617.54 $229,325.09 $234,032.64 $238,740.20 $243,447.75 $248,155.30 $252,862.86 $231,947.89 4.74% 4.84% 4.93% 5.03% 5.14% 5.24% 5.34% 5.45% 5.55% 5.09% FINANCIAL ANALYSIS MARKET OVERVIEW LEASE SUMMARY Tenant Trade Name Chase Bank Ownership Public Tenant JPMorgan Chase Bank, National Association Lease Guarantor Corporate Lease Type NN* Roof & Structure Responsibility Landlord Responsible Initial Lease Term 20 Years Lease Commencement Date May 17, 2004 Rent Commencement Date May 17, 2004 Expiration Date May 16, 2024 Approx Remaining Lease Term 10 Years Options Two 5-Year Increases Annual 2% Rent Increases *Landlord responsible for exterior surfaces of the building, roof, foundation, and exterior glass. Lamdlord also responsible for all capital expenditures. TENANT SUMMARY Tenant Trade Name Chase Bank Property Type Net Leased Bank Sales Volume $44.91 Billion Net Worth $195.01 Billion Credit Rating A Rating Agency Standard & Poor s Ticker Symbol JPM Board New York Stock Exchange Number of Branches 5,500+ Headquarters New York, NY Website www.chase.com JPMorgan Chase & Co. is a financial holding company. Its principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national banking association with branches in 23 states, and Chase Bank USA, National Association, a national bank that is the Company s credit card issuing bank. JPMorgan Chase s principal non-banking subsidiary is J.P. Morgan Securities Inc., its United States investment banking firm. vi 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

EXECUTIVE SUMMARY Chase Bank Investment Overview EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS Investment Highlights Lease Recently Renewed for an Additional 10 Years With Annual Rent Increases Investment Grade Credit - A Rating By Standard & Poors Highly Affluent Area - Average Household Income Exceeds $118,000 in a One-Mile Radius (More Than Twice the National Average) 2013 Site Deposits Nearly $110 Million Part of Washington Park - 600,000-Square Foot Power and Lifestyle Center Anchored by Target, Lowe s, Cost Plus, Stein Mart, Office Depot, and Trader Joe s Surrounded by National Retailers Including Walmart, Costco, The Home Depot, Best Buy, Smart & Final and many more Located Along Highway 111- Area s Main Traffic Corridor with Daily Traffic Counts Exceeding 73,000 Vehicles The subject property is a 5,441-square foot Chase Bank located in La Quinta, California. Chase Bank has recently signed a 10-year extension to their initial lease that commenced in 2004, extending the firm term until May of 2024. The lease provides annual rent increases throughout the initial term and two, five-year renewal options. Chase Bank, which is publicly traded on the New York Stock Exchange under the ticker symbol JPM, has a current A credit rating by Standard & Poors. The property is located along Highway 111, the area s main traffic corridor with daily traffic counts exceeding 73,000 vehicles. It is a freestanding building situated in Washington Park, a 600,000-square foot power and lifestyle center anchored by Lowe s, Target, Cost Plus, Stein Mart, Office Depot,Trader Joe s and many more. The site is also situated directly across from One Eleven La Quinta Center, a 180,000-square foot power center anchored by Kohl s, Petco, Ross and Stater Bros. Markets. Other retailers in the immediate area include JCPenney, Walmart, Costco, The Home Depot, Vons, Best Buy, Smart & Final and many more. In 2013, this location had nearly $110 Million in site deposits. This affluent area boasts an average household income in excess of $118,000. MARKET OVERVIEW La Quinta, California, known as the Gem of the Desert, is the premier playground for active living; with patio dining, boutique shops, resort escapes, world-class golf, and many of the nation s top retailers. Its unparalleled quality of life and strong consumer base contribute to the city s bright economic outlook. With a growing population, a large winter/spring seasonal population, retail synergy along the Highway 111 corridor and a variety of recreational opportunities, La Quinta is a vibrant community nestled in the foothills of the Santa Rosa Mountains. viii 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

Adjacent Retailers

PROPERTY DESCRIPTION Chase Bank EXECUTIVE SUMMARY AERIAL PHOTO MARKET OVERVIEW FINANCIAL ANALYSIS PROPERTY DESCRIPTION x 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

PROPERTY DESCRIPTION Chase Bank LOCAL MAP MARKET OVERVIEW FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY xi 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

PROPERTY DESCRIPTION Chase Bank REGIONAL MAP MARKET OVERVIEW FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY xii 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

MARKET OVERVIEW chase bank Demographic Summary PROPERTY DESCRIPTION EXECUTIVE SUMMARY FINANCIAL ANALYSIS MARKET OVERVIEW Population 1-Mile 3-Miles 5-Miles 2000 Population 4,130 44,142 109,033 2010 Population 6,070 60,942 148,410 2013 Population 6,320 63,475 154,821 2018 Population 7,499 70,385 173,942 Households 1-Mile 3-Miles 5-Miles 2000 Households 1,276 16,423 38,763 2010 Households 2,138 23,299 55,416 2013 Households 2,231 24,264 57,841 2018 Households 2,732 27,357 66,415 2013 Average Household Size 2.57 2.60 2.67 2013 Daytime Population 3,200 26,710 53,614 2000 Median Housing Value $0 $188,608 $160,683 2000 Owner Occupied Housing Units 70.71% 54.70% 52.50% 2000 Renter Occupied Housing Units 8.65% 20.46% 24.88% 2000 Vacant 23.16% 25.23% 24.65% 2013 Owner Occupied Housing Units 67.87% 68.28% 66.36% 2013 Renter Occupied Housing Units 32.13% 31.72% 33.64% 2013 Vacant 17.48% 26.74% 25.99% 2018 Owner Occupied Housing Units 65.64% 68.25% 67.16% 2018 Renter Occupied Housing Units 34.36% 31.75% 32.84% 2018 Vacant 15.71% 27.18% 26.60% Income 1-Mile 3-Miles 5-Miles $ 0 - $14,999 7.1% 7.9% 9.2% $ 15,000 - $24,999 5.4% 8.2% 10.1% $ 25,000 - $34,999 4.6% 8.6% 9.8% $ 35,000 - $49,999 11.1% 11.7% 12.8% $ 50,000 - $74,999 18.3% 20.2% 19.5% $ 75,000 - $99,999 14.0% 12.6% 12.3% $100,000 - $124,999 10.6% 10.0% 9.0% $125,000 - $149,999 9.2% 5.8% 5.1% $150,000 - $199,999 8.7% 6.0% 4.9% $200,000 - $249,999 3.8% 3.4% 2.8% $250,000 + 7.2% 5.7% 4.5% 2013 Median Household Income $80,599 $66,059 $59,559 2013 Per Capita Income $42,011 $38,921 $33,812 2013 Average Household Income $118,791 $101,755 $90,150 xv 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap

MARKET OVERVIEW chase bank Demographic Summary Geography: 5 Miles Population In 2013, the population in your selected geography was 154,821. The population has changed by 41.99% since 2000. It is estimated that the population in your area will be 173,942 five years from now, which represents a change of 12.35% from the current year. The current population is 48.5% male and 51.5% female. The median age of the population in your area is 40.3, compare this to the U.S. average which is 37. The population density in your area is 1,519.97 people per square mile. Households There are currently 57,841 households in your selected geography. The number of households has changed by 49.21% since 2000. It is estimated that the number of households in your area will be 66,415 five years from now, which represents a change of 14.82% from the current year. The average household size in your area is 2.66 persons. Income In 2013, the median household income for your selected geography is $59,559, compare this to the U.S. average which is currently $53,535. The median household income for your area has changed by 33.43% since 2000. It is estimated that the median household income in your area will be $68,521 five years from now, which represents a change of 15.04% from the current year. The current year per capita income in your area is $33,812, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $90,150, compare this to the U.S. average which is $75,373. Race and Ethnicity The current year racial makeup of your selected area is as follows: 71.12% White, 2.08% African American, 0.77% Native American and 2.69% Asian/ Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% Native American and 5.01% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 48.39% of the current year population in your selected area. Compare this to the U.S. average of 16.55%. Housing The median housing value in your area was $160,683 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 26,692 owner occupied housing units in your area and there were 12,651 renter occupied housing units in your area. The median rent at the time was $593. Employment In 2013, there are 53,614 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 56.5% of employees are employed in white-collar occupations in this geography, and 43.4% are employed in blue-collar occupations. In 2013, unemployment in this area is 4.78%. In 2000, the median time traveled to work was 18.6 minutes. EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS MARKET OVERVIEW Demographic data 2010 by Experian/Applied Geographic Solutions. 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2013 Marcus & Millichap xvi

exclusively listed Exclusively listed by: Alvin Mansour Senior Vice President Investments SAN DIEGO Tel: (858) 373-3184 Fax: (858) 373-3249 amansour@marcusmillichap.com Licenses: CA 01391653 TX 0606255 Kevin Mansour SAN DIEGO Tel: (858) 373-3187 Fax: (858) 373-3249 kmansour@marcusmillichap.com Licenses: CA 01878011 OFFICES NATIONWIDE www.marcusmillichap.com