COFFEE ROAD SHOPPING CENTER

INVESTMENT OPPORTUNITY COFFEE ROAD SHOPPING CENTER PAGE 1 Listed for sale exclusively by: ANTHONY T. SIGLIANO Senior Vice President 661.616.3560 tscig@asuassociates.com CA RE #01380986

DISCLOSURES & CONFIDENTIALITY The enclosed Offering Memorandum Package has been prepared solely for informational purposes to assist a Prospective Purchaser in determining whether it wishes to proceed with an in-depth investigation of the property described herein. It is intended solely for your limited use and benefit in determining whether you desire to express any further interest in the purchase of the Property. Prospective Purchasers are expected to review independently all documents related to the Property as to the accuracy and completeness of the information contained herein. All financial projections are provided for general reference purposes only. These projections have been based upon various assumptions relating to the general economy, competition and other factors beyond the reasonable control of NewmarkGrubb ASU & Associates, and, therefore, are subject to material variation. Newmark Grubb ASU & Associates, and its respective officers, employees or agent representatives do not make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum Package or any of its contents. In this Offering Memorandum Package, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete, nor, necessarily, accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to review independently such documents. By receipt of this Offering Memorandum Package, you agree that its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose directly or indirectly this Offering Memorandum Package or any of its contents to any other entity (except affiliates or Prospective Purchasers) without the prior written authorization of the Owner and Newmark Grubb ASU & Associates. You also agree that you will not use this Offering Memorandum Package or any of its contents in any manner detrimental to the interest of the Owner and Newmark Grubb ASU & Associates. You also agree not to contact any of the tenants named in the enclosed lease summaries or rent rolls. Photocopying or other mass duplication of this Offering Memorandum Package without the permission of Newmark Grubb ASU & Associates is prohibited. The information contained in this Offering Memorandum Package was obtained from third parties and/or directly from the Owner, and it has not been independently verified by Newmark Grubb ASU & Associates or its agents. Prospective Purchasers should have the experts of their choice inspect the Property and verify all information. Real estate brokers are not qualified to act as or select experts with respect to legal, tax, environment, building construction, soils-drainage, or other such matters. Additional information and an opportunity to inspect the property will be made available to any interested and qualified Prospective Purchasers. If prior to or upon your review of this Offering Memorandum Package you no longer have any further interest or you do not wish to pursue negotiations leading to this acquisition, please return this Offering Memorandum Package in its original form to this submitting agent at: Newmark Grubb ASU & Associates ٠ 2000 Oak Street, Suite 100 ٠ Bakersfield, California 93301 The Property described in this Offering Memorandum Package may be subject to prior sale, modification and/or withdrawal from the market by the Owner at any time without prior notice. Owner and Newmark Grubb ASU & Associates each expressly reserves the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until a written agreement for the purchase of the Property Owner s obligations thereunder have been satisfied or waived. The terms and conditions stated in this Confidentiality and Disclaimer page will relate to all of the sections contained in this Offering Memorandum Package as if stated independently therein. PAGE 2

INVESTMENT SUMMARY CONFIDENTIAL OFFERING Newmark Grubb ASU Partners is pleased to announce its appointment as the exclusive marketing in the sale of the Shops at Coffee Road Shopping Center in Bakersfield, CA. INVESTMENT HIGHLIGHTS ٠ Strategically located maximizing Coffee Road frontage for value added rental rates. ٠ Easily accessible for established neighborhoods and a solid mix of high quality multi-family apartments. OFFERING TERMS 2-STORY OFFICE RETAIL BUILDINGS ٠ Offering Price: $2,250,000 $5,500,000 ٠ Capitalization Rate: 8.08% 7.4% 2015 PROJECTED OPERATIONS 2-STORY OFFICE RETAIL BUILDINGS ٠ Net Operating Income: $181,800 $406,692 TRANSACTION TIMETABLE & PROCEDURES ٠ Seller will consider all offers with consideration being placed on price, Buyer s qualification, timing of offer and proposed closing date. ٠ Seller reserves the right to sell the property at any time without prior notice. ٠ The property will be sold on an as is basis. PROPERTY ADDRESSES ٠ 3603 Coffee Road-APN 451-010-62 / Approximetly 38,768 SF Land ٠ 3605 Coffee Road-APN 451-101-57 / Approximetly 42,253 SF Land ٠ 3615 Coffee Road-APN 451-010-55 / Approximetly 47,916 SF Land PAGE 3

PROPERTY DESCRIPTION THE SHOPS AT COFFEE SHOPPING CENTER IS AN EXCELLENT INVESTMENT OPPORTUNITY FOR MANY REASONS: ٠ LOCATION: The shopping center is strategically located on Coffee Road, NW Bakersfield s main north/south arterial, and offers direct ingress and egress access along the Coffee road corridor. ٠ EXCELLENT MIX OF TENANTS: The Shops at Coffee Shopping Center features thre separate buildings of which two are occupied with retail/service oriented tenants and the third building is a 100% vacant two story office building that can also be utilized as retail. The individual buildings provide for a solid mix of tenants. ٠ STABLE TRADE AREA: The Shops at Coffee Shopping Center is located on Coffee Road, the main N/S arterial (the spine ) of Bakersfield. Riverlakes Ranch is a newer master-planned community developed over the past 15 years. The Links at Riverlakes, an 18-hole golf course, features upscale-gated communities within the boundaries of the golf course. Lennar Homes, Centex Homes, D.R. Horton and McMillan Homes are a few of the national builders contributing to the growth of Riverlakes Ranch. In addition to single-family residences, several well-established, higher-end multi-family developments mesh well to create the perfect demographics for a strong trade area. PROPERTY CHARACTERISTICS OFFERING PRICE: AGE: Construction completed in 2007 OFFERING Newmark Grubb/ASU Partners is pleased to offer for sale fee simple interest in all or part of the property. LOCATION NWC of Coffee Road and Kapalua Drive (within Riverlakes Ranch) in Bakersfield, California OFFERING SIZE Approximately 29,010 square feet of GLA on approximately 3 acres of land. ZONING General Commercial (C-2) in the City of Bakersfield ACCESS Excellent direct access from fully signalized ingress/egress points with two additional left turn ingress points along Coffee Road. ARCHITECTURE Intelligently designed with two separate buildings fronting Coffee Road and the 2-story building offers visability from Coffee Road. The retail buildings maximize street frontage for added value rental rates. The buildings are newly constructed without elbows or irregular space featuring colors that give the center a fresh and inviting appearance. PARKING (All common areas) Total parking stalls, 6.9/1,000 GLA shared in common with all 3 parcels within the shopping center. CONSTRUCTION The buildings are set on a concrete perimeter foundation with a concrete slab floor. Exterior walls are modern-neutral colors with large sign fascia allowing for maximum tenant exposure. COMMENTS The offering consists of a combination of three multi-tenant buildings totaling 29,010 square feet. Each building is loated on it s own separeate parcel with reciprocal parking accross all 3 parcels. PAGE 4

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ANTHONY SCIGLIANO Senior Vice President 661.616.3580 tscig@asuassociates.com CA RE License #00904956 2000 OAK STREET, SUITE 100 ٠ BAKERSFIELD, CA 93301 ٠ 661.862.5454 main ٠ 661.862.5444 fax

PROJECTED NOI GROSS SCHEDULED INCOME INCOME & EXPENSE PROFORMA OFFICE RETAIL Retail & Office $193,400 $427,650 CAM Reimbursements $37,055 $113,967 Total Gross Scheduled Income $260,455 $546,617 Less: Vacancy (6%) ($15,622) ($32,797) Reimbursed Expenses ($63,000) ($107,128) Net Operating Income $181,800 $406,692 SALES PRICE Net Operating Income $181,800 $406,692 Sales Price $2,250,000 $5,500,000 Capitalization Rate 8.08% 7.40% Price per square foot $210.00 $301.00 MEANY AVENUE GOSFORD ROAD DOWNEY AVENUE PAGE 7

PROJECTED OPPERATING CASH FLOW INCOME BASE RENTAL REVENUE $646,870 Reimbused Expense $138,797 Effective Gross Revenue $785,667 OPPERATING EXPENSES Taxes $58,626 Insurance $9,126 Water &Sewer $3,775 Trash $21,741 Security $2,848 Sweeping $1,320 Landscaping $11,797 Pressure Washing $4,680 Electric $8,390 Management $46,220 Pest Control $900 Association Fee $3,738 Reserves & Maintinance $9,070 HVAC Service/Repair $4,970 TOTAL OPERATING EXPENSES $187,202 PAGE 8

RENT ROLL TENANT SUITE SQ.FT. TERM MO. RENT ANN. RENT PSF RENT NOTES EXP. RETAIL BLDG 3603 AVAILABLE #600 2,850 $5,415.00 $64,980.00 $1.90 AVAILABLE #400 1,500 $2,850.00 $34,200.00 $1.90 Subway #300 1,400 5 yrs $3,290.00 $39,480.00 $2.35 Fixed Annual 3% Increase 4/2014 AVAILABLE #200 1,600 $2,880.00 $34,560.00 $1.80 Domino s Pizza #100 1,350 10 yrs $2,478.50 $29,742.00 $1.84 Fixed Annual 2% Increase 4/2023 RETAIL BLDG 3615 Sushiko #100 2,120 5 yrs $4,240.00 $50,880.00 $2.00 Flat 7/2017 Max Muscle #200 1,322 5 yrs $2,644.00 $31,728.00 $2.00 Flat 10/2017 Pho 88 #300 1,500 5 yrs $3,000.00 $36,000.00 $2.06 Fixed 2% Increase 5/31/2021 AVAILABLE #400 1,499 $2,698.00 $32,378.00 $1.80 Inspire Salon #500 3,123 5 yrs $6,142.00 $73,704.00 $1.97 Fixed Annual 3% Increase 5/2016 ACTUAL INCOME $21,794.50 $261,534.00 PROJECTED INCOME $35,637.50 $427,650.00 OFFICE BLDG 3605 AVAILABLE Ground 5,448 $9,260.0 $111,140.00 $1.70 AVAILABLE 2nd floor 5,298 $9,000.00 $108,080.00 $1.70 TOTAL 29,010 $53,905.00 $646,870.00 PAGE 9

SITE PLAN INSPIRE SALON AVAILABLE PHO 88 MAX MUSCLE SUSHIKO DOMINO S AVAILABLE SUBWAY AVAILABLE AVAILABLE AVAILABLE PAGE 10

SITE PLAN POSSIBLE MULTI-SUITE CONFIGURATION FOR 2-STORY BUILDING PAGE 11

LOCATION & OTHER BUSINESS IN THE AREA HAGEMAN ROAD CALLOWAY DRIVE CLAY PATRICK FAIRWAY RIVERLAKES DRIVE SITE COFFEE ROAD DOWNEY AVENUE GRANITE FALLS DRIVE ROSEDALE HWY PAGE 12

CITY & COUNTY OVERVIEW Kern County Overview Established in 1866, Kern County is referred to as California s Golden Empire and with little wonder. It was first settled because of the gold found throughout the valley and later for the rich black gold that continues to be a mainstay for local economy - Kern County being the leading oil producer in the continental U.S. Kern County also has a rich heritage as a copious farming region. The Central Valley dominates agricultural production in California with Kern County ranking 4th in the state. Its exports are many, making it the breadbasket for the nation as well as the world. The superior quality of life within Kern County is marked by some of the lowest housing prices in California. With a hospitable community, lots to do and a low cost of living, this is the place to be! Bakersfield Overview For centuries the Yokuts Indians thrived in the San Joaquin Valley. With a plethora of lakes and rivers and plenty of hunting, it was an ideal settlement. So when Padre Francisco Garces stumbled upon this hidden treasure in 1776, he immediately predicted it would blossom into a commercial success. But another 90 years lapsed before his vision started taking shape, primarily in the form of one couple, Colonel Thomas Baker and his wife, Ellen. Through their dedication and hospitality, the stage was set for incredible growth and prosperity. Initially, the area was used to feed the livestock of families trekking northward through the El Tejon Pass seeking home sites. The Colonel would invite the weary travelers to rest overnight. The growing township was soon labeled with the moniker Baker s Field. Thus, in 1898, in honor of two of its earliest settlers, Bakersfield was incorporated. Early in its history Bakersfield established itself as a caring community with strong leadership manifested in its proactive government. It came as no surprise then when it was designated as the county seat in 1864. Colonel Baker formally laid out the town in 1869, and within two years the city had a telegraph office, two stores, a newspaper, two boarding houses, one doctor, a wagon shop, a harness shop, one attorney, a saloon, and fifty school pupils. Bakersfield has certainly prospered since then. To the 347,483 current residents, this hospitable city has continued to engender a hometown feel while providing many of the amenities found in larger cities. Bakersfield, the 9th largest city in the state of California, is located at the southern end of California s Central Valley. Strategically located approximately 110 miles north of Los Angeles. PAGE 13

CITY & COUNTY OVERVIEW Central Valley California Community There is also a goldmine of recreational and tourism activities. With its three climate zones -- valley, mountains, and high desert -- Kern County has something for everyone. Whether kayaking down the rapids of the Kern River, strolling among wild flowers, visiting the giant sequoia trees, or rock climbing in the desert, Kern County is a nature-lovers paradise. Furthermore, among the local hot spots is several country clubs, numerous premium golf courses, museums, art galleries, and a variety of musical, sporting, and cultural events at Rabobank Arena. In an hour or less, you could be enjoying the best fishing and camping in the state at Sequoia National Park, or sunbathing on one of California s world-famous beaches. A September 2012, LA Times article, writes: This mid-size city has reclaimed an old title: BOOMTOWN. Bakersfield has been adding population and jobs at a brisk pace and is a few thousand jobs from matching its peak employment level of five years ago. A price-fueled energy bonanza, low corporate operating costs and an advantageous location ate contributing to the area s good fortune. Commerce More than just agriculture and oil, this community has a diverse industrial market. From high-tech computer and manufacturing companies to state-of-the-art telecommunication giants, a variety of organizations have been drawn to the valley, including the nation s top aviation research facility. Its centralized location at the southern end of the San Joaquin Valley makes Kern County easily accessible and offers convenient passage not only through the state but also across the US. This has been instrumental in transforming Kern County into a hub for some of the world s largest companies. With such a strong presence of high profile companies and research facilities, many upper level professionals have been drawn to the area. The majority of these have been families, as Bakersfield has the reputation for being a family- oriented town with affordable housing and a low cost of living. In the Metro Bakersfield area, commute time is usually 20 minutes or less. The majority of residents work within the county, so there is only a handful of in and out commuters. Some prefer to live in Metro Bakersfield and drive out to jobs in neighboring communities. PAGE 14

CITY & COUNTY OVERVIEW Technology Found at the leading edge of technology, the Naval Weapons Center, China Lake and the Air Force Flight Test Center at Edward s Air Force base are central to national defense. Agriculture Agriculture has been a mainstay of Bakersfield s commerce for more than a century. By harnessing the flow of water from the Kern River, this region has been transformed into some of the most productive land in existence with over 250 different crops. Those who farm it are considered to be among the world s best. This has meant steady revenue and an increase in jobs for the city, creating positions of labor, administration and legislation. Many of these businesses additionally improve the quality of life for residents by supporting a variety of cultural and educational programs as well as charities. Grimmway Farms is the largest carrot producer in the world and is the County s largest private employer. Energy & Natural Resources Energy & Natural Resources In the second half of the 19th century, two pivotal discoveries were made - gold in 1851, followed by oil fourteen years later. These important findings ensured a rich cultural diversity for the area. Today, Kern County is vital to the nation s energy pool, Bakersfield being a beneficiary of the petroleum industry s success. It is here that the key components necessary for the smooth operation of oil production, refining, and marketing have united. Several major oil companies have provided the capital and technology necessary for the continued development of the industry. Setting the pace as California s leading oil producer, Aera Energy LLC is headquartered in Bakersfield and employs over 950 residents, not to mention hundreds of contracting companies. The San Joaquin Valley Region offices of Chevron have consolidated into a total of 150,000 square feet located in the University Centre Submarket. PAGE 15

CITY & COUNTY OVERVIEW Housing The primary residential growth areas of Bakersfield, Northwest and Southwest, continue to attract the majority of new home construction with South Bakersfield along the Highway 99 corridor a distant third. The City of Bakersfield s Planning Department indicated that approximately 90% of new home construction for the period 2000 to 2005 occurred west of the Gosford/Coffee Road north/south arterial based upon existing and tentative tract map activity. Other residential communities with noteworthy planned developments include the South Bakersfield/ Highway 99 corridor with the addition of new entry-level residential neighborhoods that will be supported with a number of planned retail sites. The Northeast Bakersfield area has also experience a substantial increase in new home construction over the past 10 years with the completion of infrastructure to make available water and sewer connections. Climate Bakersfield covers approximately 110 square miles and is 492 feet above sea level. It is partially surrounded by three mountain ranges: the Temblor range to the west, the Tehachapi range to the south and the Sierra Nevada range to the east. The Kern River flows through the valley; the fastest falling river in the United States. Bakersfield is centrally located about 90 miles north of Los Angeles, 90 miles south of Fresno, and 90 miles east of the Pacific ocean, which puts Bakersfield close to a variety of recreational and business resources. Generally, temperatures are mild year round. Summers are warm and dry, winters are cool with mild rainfall, and snow about once every 30 years! PAGE 16

CITY & COUNTY OVERVIEW Good News! Recent headlines about Bakersfield & Kern County Ranked No.1 large metro for Real GDP (Gross Domestic Product) growth in the nation. U.S. Bureau of Labor & Statistics 2011 Ranked Top 20 strongest metro for recovery from recession in the nation. The Brookings Institution 2011 Ranked Top 3 large metro for job growth in the state. U.S. Bureau of Labor and Statistics 2011 Ranked Top 2 county on its way to economic recovery in the state. Southern California Assoc. of Governments 2011 Top large metro for annual economic growth rate in the nation. HIS Global Insights 2012 Ranked Top 3 major county for growth of average compensation per job in the state. At a 23% increase. U.S. Bureau of Labor & Statistics 2011 Kern County ranks 9th among America s Engineering Capitals, Forbes 2013 Kern County ranted as the 7th most improved metro economy over the past six months On Numbers 2013 Bakersfield, CA s two quarter forecast of 5.2% puts this metro in the lead for short term anticipated gains out of the top 50 metros. Bakersfield moved from 29 in March s Forecast to the first position in June. This leap is an example of the fundamentals driving the overall recovery. Ohio Business Journal 2013 Ranked Top 2 county for rate of wage growth in the state. Bizjournals.com - U.S. Bureau of Labor and Statistics 2011 PAGE 17