OFFERING MEMORANDUM WHITTIER, CALIFORNIA REPRESENTATIVE PHOTO

OFFERING MEMORANDUM WHITTIER, CALIFORNIA REPRESENTATIVE PHOTO

OFFERING MEMORANDUM WHITTIER, CALIFORNIA TABLE OF CONTENTS: Offering Summary 4 Investment Highlights 5 Location Highlights 6 Lease Summary 7 Site Plan 8 Parcel Map 9 Aerial Overviews 10 Regional Map 15 Tenant Profile 16 Area Overviews 17 Demographics 19 EXCLUSIVELY LISTED BY: Bill Asher Executive Vice President basher@hanleyinvestment.com 949.585.7684 BRE #01318078 Ed Hanley President ehanley@hanleyinvestment.com 949.585.7677 BRE #01118569

CONFIDENTIALITY DISCLAIMER The information contained herein does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers. Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property. Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/ or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner s obligations thereunder have been satisfied or waived. This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the Contents ), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker. 3

OFFERING SUMMARY LOCATION Grocery Outlet 13301 Whittier Boulevard Whittier, CA 90602 OFFERING SUMMARY Price: $7,770,000 Current Net Operating Income @ 100% Occupancy: $330,000 Current Capitalization Rate: 4.25% Feb. 2020 Capitalization Rate: 4.67% REPRESENTATIVE PHOTO Feb. 2025 Capitalization Rate: 5.14% Building Size (SF): 14,500 Lot Size (SF): 21,344 Year Built: 2010 FINANCING SUMMARY All Cash or Cash to New Financing (Contact Hanley Investment Group for Further Details) NOT A PART 4

INVESTMENT HIGHLIGHTS yla County Single-Tenant Grocery Outlet Ground Lease: οοcorporate Guaranteed Absolute NNN Ground Lease; no landlord responsibilities οο13+ years remaining on lease with four 5-year options to renew οοfixed 10% rental increases every 5 years including the option periods οοgrocery Outlet is one of the largest extreme-value grocery retailers in the United States οοgrocery Outlet is renovating their space, including new flooring, lighting, ceiling, partitions, refrigeration, security systems, and the exterior facade οοgrocery Outlet has over 235 locations nationwide with plans to open over 30 stores in Southern California by 2017 οοgrocery Outlet s revenue has increased from $500 million in 2001 to over $1.7 billion in 2015 οοgrocery Outlet is expanding into organic foods with their natural, organic, specialty, and healthy foods section located in all new stores yno Management Hassle: Single-tenant, long-term ground lease frees landlord of any management responsibilities REPRESENTATIVE PHOTO 5

LOCATION HIGHLIGHTS youtstanding Visibility Along Major Arterial Thoroughfare: Whittier Boulevard is the highest trafficked corridor in Whittier and runs 15 miles north to Los Angeles yhigh Traffic Signalized Intersection: Over 58,000 CPD at the intersection of Whittier Boulevard and Painter Avenue ydense Affluent Trade Area: Over 451,000 people with an average household income in excess of $80,000 in a 5-mile radius yregional Retail Destination: The property is strategically located at the same intersection as The Quad, a 432,000 SF power center with tenants including Burlington Coat Factory, T.J. Maxx, Petco, Michaels, Vallarta Supermarkets, Rite Aid, Old Navy, Staples, and Ross Dress for Less yexcellent Accessibility: Three points of ingress/egress with access along both Whittier Boulevard and Painter Avenue yirreplaceable Los Angeles County Location: Los Angeles County is the most heavily populated county in the United States with over 20 million people making up 27% of the state of California y Close Proximity to Major Nearby Cities: The subject property is located just 20 miles from Downtown Los Angeles and less than 15 Miles from Orange County 6

LEASE SUMMARY LEASE SUMMARY (1) Tenant: Grocery Outlet Lease Commencement: January 13, 2010 Lease Expiration: January 31, 2030 Lease Type: Ground Lease Net Operating Income: $330,000 Feb. 2020 Net Operating Income: $363,000 Feb. 2025 Net Operating Income: $399,300 REIMBURSEMENTS Building Size (SF): 14,500 Lot Size (SF): 21,344 Renewal Options: Four 5-Year @ 10% Increases Property Taxes: Tenant Responsibility Insurance: Tenant Responsibility Common Area Maintenance: Tenant Responsibility Roof and Structure: Tenant Responsibility NOTES (1) Tenant is currently paying rent. Tenant is scheduled to complete their build-out and open for business by approximately August 2016. All lease provisions to be independently verified by buyer during the due diligence period. REPRESENTATIVE PHOTO 7

SITE PLAN PAINTER AVENUE WHITTIER AVENUE N SUBJECT PROPERTY NOT A PART 8

PARCEL MAP PAINTER AVENUE WHITTIER AVENUE N PROPERTY PARCEL APN: 8142-033-069 9

AERIAL OVERVIEW 2015 DEMOGRAPHICS 1-Mile 3-Mile 5-Mile Population: 33,355 160,699 451,828 Household Income: $69,318 $78,231 $80,274 LA SERNA HIGH SCHOOL - 2,700 STUDENTS - CALIFORNIA HIGH SCHOOL - 3,000 STUDENTS - WHITTIER BOULEVARD THE QUAD 58,000 CPD - INTERSECTION - SUBJECT PROPERTY PAINTER AVENUE N 10