Value-Add Retail Shopping Center; Jurupa Valley (Riverside), CA

Value-Add Retail Shopping Center Jurupa Valley (Riverside), CA Subject Property r Opal St Mission Blvd 22,416 CPD 6322-6328 Mission Blvd., Riverside, CA 92509 OFFERING MEMORANDUM

Value-Add Retail Shopping Center Jurupa Valley (Riverside), CA 6322-6328 Mission Boulevard, Riverside, CA 92509 Offering Memorandum Exclusively Listed By: Jonathan Selznick Senior Vice President - Principal jselznick@lee-assoc.com 949-734-0243 CA License: 01323949

Confidentiality Agreement This is a confidential marketing profile (the Profile ) intended solely for your limited use and benefit in determining whether you desire to express further interest in purchasing the Property, located in Riverside, CA. This Profile has been prepared by Lee & Associates on behalf of the owner of the Property (the Owner ) and has been reviewed by representatives of the Owner. It contains select information pertaining to the Property and does not purport to be an all inclusive representation of the state of affairs of the Property, or to contain all the information, which prospective investors may require. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Lee & Associates. The information contained herein was obtained from third parties, and it has not been independently verified by Lee & Associates. Prospective investors should have the experts of their choice inspect the Property and verify all information. Lee & Associates is not qualified to act as or select experts with respect to legal, tax, environmental, building construction, soils drainage or other such matters. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. Neither the Owner nor Lee & Associates, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy of completeness of this Profile or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Profile or use of its contents. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers on the subject Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Profile. The Owner shall have no legal commitment or obligation to any entity reviewing this Profile or making an offer on the Property unless and until written agreement(s) for the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Profile, you agree that this Profile and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Profile or any of its contents to any other entity without prior written authorization of the Owner or Lee & Associates. You also agree that you will not use this Profile or any of its contents in any manner detrimental to the interest of the Owner or Lee & Associates. Lee & Associates reserves the right to submit the Property to additional clients on terms that may or may not be identical to the terms contained herein. By receipt of this Profile, you acknowledge that competing interests may develop in connection with offers on the Property, and waive any conflict of interest that might arise as a result thereof. In such case, Lee & Associates expressly disclaims any obligation to advance the interest of any client at the expense of any other client who may receive this Profile. Dealings with each client shall remain strictly confidential and in no case will Lee & Associates disclose the terms of any actual or potential offer to any competing client. 3

Table of Contents Section I - Investment Overview A. Investment Highlights B. Rent Roll C. Income & Expense D. Site Plan E. Aerial Maps F. Parcel Map 6 7 8 9 10-12 13 Section II - Supporting Material A. Location Map - Trade Area View B. Location Map - Regional View C. Area Overview 1 5 16 17-18 4

Mission M ission Inn Inn Hotel Hotel & S Spa pa F Festival estival o off L Lights ights Section I - Investment Overview

Investment Highlights Property Information Address: Land: GLA: Occupancy: Zoning: 6322-6328 Mission Boulevard, Riverside, CA 92509 ±439,956 Square Feet (10.10 Acres) ±16,250 Square Feet 83% C-1/C-P Financial Information Price: Price/PSF (Building): Price/PSF (Land) Downtown Riverside $3,800,000 $234/PSF $8.64/PSF Property Highlights Rare, Value-Add Retail Investment Opportunity - Under built site (currently less than.04 FAR) - 16,250 Sq Ft, 83% Occupied Retail Shopping Center on over 10 Acres Southern California, Major Thoroughfare Location - Northwestern Inland Empire City of Jurupa Valley (Riverside) - Subject is Located on Signalized, Hard-Corner on Mission Boulevard, adjacent to SR-60 and SR-91 Low Price/PSF on both Building and Land - $234/PSF (Building), and only $8.64/PSF (Land) - Significant Future Development Opportunity with Excess Land Excellent Ingress/Egress - Hard-Corner, Signalized Access from Mission Boulevard & Opal Street - Reciprocal Easement Agreement Provides Cross Access and Parking Throughout the Center Several Tenants with Long-Term Historical Occupancy at Replaceable Rent - Tae Kwon Do has Operated Since 1995; Coin Laundry Since 1977 - Average Gross Rents of $1.00/PSF (Gross) with Several Small Suites Paying Less Strong Working Class Demographics in a Growing Trade Area - Average HH Income (1-Mile) - $68,336; (3-Mile) - $70,905-2000-2015 Population Growth 20% - 1-Mile Population 15,763 Validation from Major National Credit Tenant 99 Cent Only Stores - 99 Cent Only Purchased Adjacent Property within Mission Village Shopping Center 6

Rent Roll Suite Tenant Suite SF Original Occupancy Date Lease Start Lease End Rent Per SF Monthly Rent Proforma Rent/SF Proforma Monthly Rent Increases Lease Type Options 6322A Internet Cafè ±1,000 03/06/15 03/06/15 09/01/16 $1.10 $1,100 $1.25 $1,250 Gross 6322B Party Supply ±900 06/01/12 06/01/12 06/30/16 $1.09 $980 $1.25 $1,125 Gross 6324 Laundramat* ±2,100 01/01/77 01/21/04 01/20/20 $2.03 $4,257 $2.03 $4,057 4.5% Annually Modified Gross 1 (5-Year) 6326A Smoke Shop ±1,200 06/12/12 06/12/12 MTM $0.83 $1,000 $1.25 $1,500 Gross 6326B Dentist ±1,200 04/01/03 04/04/13 03/31/18 $1.23 $1,475 $1.25 $1,500 Gross 6328 North-South Mortgage** ±3,000 01/01/87 06/22/13 12/01/16 $0.30 $900 $1.00 $3,000 Gross 6330 Tae Kwon Do ±1,800 12/15/95 05/01/14 06/30/17 $1.22 $2,200 $1.25 $2,250 5-1-16: $2,300/mo Gross 6332 Vacant ±2,800 -- -- -- $0.00 $0 $1.00 $2,800 -- -- -- 6334 Medical Office ±2,500 04/01/15 04/01/15 03/31/17 $0.74 $1,850 $1.00 $2,800 Gross Total SF: ±16,500 Available: ±2,800 17% Vacancy $13,762 $19,982 Total Monthly Rent Occupied: ±13,700 83% Occupancy $165,146 $239,786 Total Annual Rent * Plus $200/mo additional rent, $323.10/mo CAM, and $48.46/mo Management; Landlord 12-Month Termination Option ** Landlord/Owner (& Property Manager) office; Tenant 90-Day Termination Option 7

INCOME & EXPENSE Annualized Operating Data Operating Expenses Scheduled Gross Income (SGI): Expense Reimbursement: Other Income (Recycle) (1): Other Income (Swap Meet): Other Income (Carnival): Total Operating Income: Gross Operating Income: Current $165,146 $6,859 $25,200 $3,000 $5,000 $205,204 $205,204 Taxes (1.25%): Insurance: CAM: Management (3.5% of SGI): Total Expenses: Amount $47,500 $3,600 $12,480 $5,780 $69,360 $/Square Foot $2.88 $0.22 $0.76 $0.35 $4.20 Annually Per SF $0.35 Monthly Per SF Total Operating Expenses: ($69,360) Net Operating Income (NOI): $135,844 1) Recycle tenant lease commenced August, 2009, and expires March 31, 2017 8

Site Plan SUBJECT PROPERTY PROPERTY PARCEL Mission Blvd. NOT A PART APN: 182-031-001/002 182-022-002 Joyce Burger & Fries Stobbs Way EZ Fuel Vacant Land Owned by 99 Cent Only Store Opal St. 9

Aerial Maps: Subject Property View Subject Property r Opal St Mission Blvd 22,416 CPD 10

Aerial Maps: Trade Area View Rubidoux Blvd 45,572 CPD 0.8 Miles Miles to Freeway Freeway Mission Middle School Riverside County Social Services Rubidoux High School 1,325 Students 158,000 CPD Legend Shopping Center Retail Development Site Opal St Rubidoux Drive-In 22,416 CPD Mission Blvd Blvd Subject Property r 11

Aerial Maps: Regional View Future Housing Development Sites Mission Estates 178 Homes Nearing Completion Mission Blvd. Subject Property 158, 000 CPD Vista Rio Apartments 39 Units Planned TR28851 Granite Ridge 198 Condomium Units Preparing to Submit Plans The Quarry 85 Units In Entitlement Phase Highland Park 398 Units Approved by City Council 4/7/16 Mission Inn Ave. Riverside Community College Fairmont Park Mission Inn Hotel & Spa 169,000 CPD Downtown Riverside 12

Parcel Map Also Includes: 182-022-002 Subject Property r 13

University of California, Riverside Section II - Supporting Material

Location Map: Trade Area View SUBJECT PROPERTY 15

Location Map: Regional View SUBJECT PROPERTY 16

Area Overview Jurupa Valley was incorporated on July 1, 2011 by a group of passionate community volunteers. It is proud to be the 482nd City in California and the 28th City in Riverside County. The primary reason for incorporation was the strong desire for enhanced police services and local control over planning and zoning issues. The City covers a 44-square mile area encompassing the communities of Jurupa Hills, Mira Loma, Glen Avon, Pedley, Indian Hills, Belltown, Sunnyslope, Crestmore Heights, and Rubidoux. It borders San Bernardino County to the north, Riverside to the south and east, Eastvale and San Bernardino County to the west. Portions of the Santa Ana River traverse the southern portion of the City. Approximately 45 miles east of Los Angeles, the City of Jurupa Valley today is a mix of high and low-density residential development, rural farming and other agricultural activities, as well as a combination of commercial retail and industrial uses. Two primary transportation corridors traverse the Jurupa Valley area, Interstate 15 which runs north and south, and State Highway 60, which runs east and west. It has been in recent years that residential development and economic activity has increased, in particular in the areas adjacent to the I-15 and SR-60. The city has several residential developments under way such as Mission Estates with 178 homes, Vista Rio Apartments with 39 Units, Granite Ridge with 198 condominium units, The Quarry with 85 homes, and finally Highland Park with 398 homes. The growth in the surrounding/adjacent communities of Riverside, Eastvale, Moreno Valley, Ontario, and Fontana has left Jurupa Valley as the most likely geographic area poised for growth. Population growth in and around the subject property has been over 20% from the years 2000-2015. Moreover, The City has significant capacity for expansion of both residential and commercial development activity in the future. Summary The subject property is located at the signalized, hard-corner of Mission Boulevard and Opal Street, an intersection with 22,416 cars per day, adjacent to SR-60 with over 158,000 cars per day, and ½ mile from the intersection of Valley Way and Mission Boulevard (an on/off-ramp serving SR-60) with 46,279 cars per day. The trade area benefits from a moderately dense and established, working-class income demographic. These factors contribute to driving strong traffic in and around the subject property- day or night, and both on weekends and during the work week. Rubidoux Drive In Theater Jurupa Mountains Discovery Center Demographics 1-Mile 3-Mile 2015 Total Population: 15,763 71,250 2015 Avg. Household Income: $68,336 $70,905 17

Area Overview Riverside is a rapidly growing city of 312,000 that currently ranks as the 12th largest city in California. Riverside has a large and diverse economy with the Inland Empire s largest number of businesses and total jobs. The City is home to four internationally recognized colleges and universities, including the prestigious University of California, Riverside with an expanding student population of over 21,000. Its public schools are also among the Inland Empire s finest. Incorporated in 1883, Riverside is a blend of historic charm and modern city features. Riverside s vibrant downtown, anchored by the historic Mission Inn, is the Downtown of the Inland Empire. It is home to many state government offices, the Riverside County Administrative Center and a legal complex consisting of county, state and federal courts. The city is an important financial and professional center with numerous legal, accounting, brokerage, architectural, engineering and software firms, as well as banking institutions with holdings exceeding $3 billion in total deposits. Mt. Rubidoux Riverside s diverse manufacturing base includes such sectors as electrical instruments, plastics, wood and metal fabrication, food processing and recreational vehicles. Technology and manufacturing companies are supported by higher educational institutions offering specialized training, research partnerships and a high-tech environment at the University Research Park. The City s prime industrial land is located within redevelopment or enterprise zones that offer tax incentives to expanding eligible companies. Businesses benefit from excellent freeways, rail access, high-speed fiber optic telecommunications, reasonable land and building costs, city owned electrical and water systems, and the Riverside Municipal Airport. The community is rich in history, art and culture, and its residents enjoy excellent ballet, symphony, art, museums, theater, and the Citrus State Historical Park. Riverside has a progressive outlook, and a tradition of stable, elected civic leaders committed to maintaining a diversified economy, balanced land uses, quality developments, and cultural amenities. Mission Inn Hotel & Spa 18