Shops at mangrove 93% leased

Shops at mangrove 93% leased northern ca shopping center at major intersection 605-615 Mangrove Avenue, Chico, CA Gregg Steele gsteele@capitalpacific.com [415] 274-2706 CA BRE#:00431289 Chris Kostanecki ck@capitalpacific.com [415] 274-2701 CA BRE#: 01002010 Zeb Ripple zripple@capitalpacific.com [415] 274-2702 CA BRE#: 01242540 Chris Peters cpeters@capitalpacific.com [415] 274-2703 CA BRE#: 01339983

PRICE.... $4,700,000 cap rate.... 7.56%* PRICE PER SQ FT...$240.66 RENTABLE SF...19,531 SF land area...1.82 Acres Year Built...2007 * Combined Cap Rate = 8.50% Cap Rate on leasehold and 6.80% Cap Rate on Fee Parcel Potential 10.32% Cash on cash Investment Highlights Representative Photos NORTHERN CALIFORNIA CENTER LOCATED AT MAJOR INTERSECTION The Shops at Mangrove are located at the intersection of Mangrove & Vallombrosa Avenues, one of the most well known and major intersections in Chico. Immediately across the street from a Safeway anchored center and high grossing Chipotle. Cal State Chico with approximately 16,000 students, Chico High School and Chico Junior High School are located within 1 mile. INVESTMENT HIGHLIGHTS Anchored by T-Mobile, Jersey Mike s and Massage Envy T-Mobile exercised their first option and remodeled their store Newer leases with Jersey Mike s, Massage Envy, and Maui Wowi Sustainable market rents Combination of national and local tenants One fee parcel and one long term leasehold parcel with 65 years of control Assumable loan (not required) - 25 years - Fully Amortized Seller gaurantees vacant space rent + CAM for one year 93% occupied location & property HIGHLIGHTS Newer center with enhanced architecture Nearby tenants include Safeway, Rite Aid and Chipotle Highly visible hard corner at Mangrove & Vallombrosa Signalized intersection High traffic corridor with a combined traffic count of 35,979 ADT Dense population with approximately 16,000 people within 1 mile Major corridor connecting Hwy 99 to downtown & Chico State Architecturally enhanced quality construction built in 2007 SHOPS AT MANGROVE 2

Income & Expense Actual Price: $4,700,000 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. Buyer must verify the information and bears all risk for any inaccuracies. CASH FLOW &PROPOSED DEBT New Proposed loan Capitalization Rate: 7.56% Down Payment (35%) $1,645,000 Price Per Square Foot: $240.66 Loan amount (65%) $3,055,000 Down Payment (Current Loan) 45% $2,100,000 Interest Rate 4.50% Loan Amount (Current Loan) 55% $2,600,000 Amortization 30 Years Total Leased (SF): 92.79% 18,122 Due date 2025 Total Vacant (SF):* 7.21% 1,408 Annual Debt Service $185,751 Total Rentable Area (SF): 19,530 Monthly Debt Service $15,479 INCOME Per Square Foot Pre-Tax Cash Flow $169,794 Scheduled Rent* $24.23 $473,280 Debt Coverage Ratio 1.91 Estimated CAM/Tax Recovery $3.59 $70,200 Cash on Cash 10.32% EFFECTIVE GROSS INCOME $543,480 Principal Paydown (Year 1) $49,284 Total Return $219,078 ADJUSTED GROSS INCOME $543,480 Yield 13.32% EXPENSES (Estimated) Per Square Foot Property Taxes (1.1%) -2.41 ($47,000) Current Assumable Loan (not required) Ins-Property & Liability -$0.33 ($6,428) Down Payment (45%) $2,100,000 CAM -$1.68 ($32,846) Loan amount (Approximate)(55%) $2,600,000 Management -$0.73 ($14,301) Interest Rate (Resets October 2015) 6.50% TOTAL OPERATING EXPENSES -$5.15 ($100,575) Amortization 25 Years Land Lease Rent ($87,360) Annual Debt Service $226,872 NET OPERATING INCOME $355,545 Monthly Debt Service $18,906 *Landlord will Guarantee Rent & CAM for one Year on vacant 1408 sf. space @ $1.55 psf monthly + CAM Pre-Tax Cash Flow $128,673 **Land Lease includes Retail 2 & 3 only. Retail 1 is separate Fee parcel Debt Coverage Ratio 1.84 Land Lease Terms: 50 year term + 3 five (5) year options @ close of escrow, subject to final approval Cash on Cash 6.13% Principal Paydown (Year 1) $46,230 Total Return $174,903 Yield 8.33% SHOPS AT MANGROVE 3

Rent Roll Trade Name Unit # Sq. Ft. Percent of GLA Lease Start Lease Expiration Monthly Base Rent Monthly Rent/SF Annual Rent/SF Annual Rent Gen Kai* 180 & 190 3,538 18.12% 6/11/2010 6/11/2015 $6,500.00 $1.84 $22.05 $78,000.00 Options Two (5) year options @ FMV Vacant** (Rent Guaranteed by Seller) 170 1,408 7.21% TBD TBD $2,182.40 $1.55 $18.60 $26,188.80 Jersey Mike's 160 1,790 9.17% 9/11/2013 1/11/2024 $3,849.50 $2.15 $25.81 $46,194.00 Iicrease 6/1/2018 $4,027.50 $2.25 $27.00 $48,330.00 Two (5) year options @ FMV T-Mobile 140 & 150 2,880 14.75% 2/11/2007 7/1/2015 $8,400.00 $2.92 $35.00 $100,800.00 Noodle House* 130 1,760 9.01% 12/1/2015 11/30/2019 $3,900.00 $2.22 $26.59 $46,800.00 Uswirl 125 2,000 10.24% 4/1/2011 4/2/2016 $4,500.00 $2.25 $27.00 $54,000.00 Jerseys Clips & Brews* 120 1,507 7.72% mo to mo mo to mo $2,935.00 $1.95 $23.37 $35,220.00 *Tenant to sign lease prior to COE Massage Envy 110 2,973 15.22% 9/1/2013 9/1/2023 $4,578.42 $1.54 $18.48 $54,941.04 Message Envy Annual Rent Increases =.48 cents psf per year Maui Wowi 100 1,674 8.57% TBD TBD $2,594.70 $1.55 $18.60 $31,136.40 Maui Wowi: 5 year lease with Increases @ 2% annually after year 2 2(5) year options w/3% increases 1 (5) year option @ FMV Two five (5) year options @ FMV 1 (5) year options @FMV Current Totals: 19,530 100.00% Monthly Rent $39,440.02 Annual Rent $473,280.24 Occupied 18,122 92.79% Vacant (Rent Guarantee) 1,408 7.21% *Gross Rent 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. Buyer must verify the information and bears all risk for any inaccuracies. SHOPS AT MANGROVE 4

Site Plan Long Term Ground Lease and Leasehold Interest (Additional Term Possible) >The Shops at Mangrove is comprised of three separate buildings. Two of the three buildings are a leasehold interest with a long term ground lease. The third building is on a fee parcel. Refer to the site plan >The ground lease has approximately 65 years of control remaining including options. Subject to final owner approval. >The NOI has been calculated net of the annual ground lease payments. The ground lease provides for a 12% increase every five years (the amount and frequency of increases are potentially negotiable). >The leasehold interest vs fee ownership allows an investor to own a newer quality center at a higher than average cap rate compared to comparable quality assets in California SHOPS AT MANGROVE 5

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Site Plan Maui Wowi FEE PARCEL JERSEY S CLIPS AND BREWS EASEMENT NOODLE HOUSE Mangrove Avenue LEASEHOLD PARCEL GEN KAI VACANT Vallombrosa Avenue BIDWELL PARK SHOPS AT MANGROVE 8

Photos SHOPS AT MANGROVE 9

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Tenants Gen Kai Japanese Restaurant T-Mobile USA is a national provider of wireless voice, messaging, and data services capable of reaching over 293 million Americans and approximately 38,000 employees. T- Mobile US, Inc. (NYSE: TMUS ) is a publicly traded company. Deutsche Telekom AG (OTC- QX: DTEGY ) maintains a 67% ownership of T-Mobile US, Inc. common stock. Deutsche Telekom is one of the largest telecommunications companies in the world, with nearly 130 million customers worldwide. Jersey Mike s Subs is a submarine sandwich, or sub, chain headquartered in Manasquan, New Jersey. The Jersey Mike s franchise has more than 750 locations open and in development across the United States. The menu includes 5, 7 and 14-15 subs (hot and cold), as well as wraps, kids meals, and salads. Maui Wowi Hawaiian has grown into a wildly successful franchise system with over 450 operating units in 35 States and 7 countries worldwide. Maui Wowi offers all-natural fresh fruit smoothies. Their all natural, high vitamin, low calorie, fresh fruit smoothies proved to be massively successful. U-SWIRL allows guests the ultimate choice in frozen yogurt by providing up to 20 non-fat flavors, including tart, traditional and no-sugar options; and more than 60 toppings, including seasonal fresh fruit, sauces, candy and granola. Guests serve themselves and pay per ounce instead of by the cup size. U-SWIRL will even help plan and play host to children s birthday parties and other special occasions. Massage Envy Spa is the pioneer and national leader of affordable massage and spa services. Nearly a decade ago, Massage Envy Spa was launched to create a completely new category in the wellness industry. Today, there are over 900 Massage Envy Spa locations in the United States. SHOPS AT MANGROVE 11

Regional Map Shops at mangrove Aspen SHOPS AT MANGROVE 12

Chico, CA The City of Chico has grown to over 33 square miles with a population of 87,670 in the incorporated area and a greater urbanized area population of approximately 100,000. Chico is located in the Northern Sacramento Valley of California, ninety miles north of Sacramento on Highway 99, in Butte County, east of Interstate 5. The city is bisected by Bidwell Park, which runs five miles (8 km) from the city center to the crest of the Sierra Nevada range. Chico is the economic center of the Northern Sacramento Valley with much of Chico s economy is powered by the California State University, Chico. Agriculture is also a significant part of the economy. Almonds, rice, olives, kiwis, peaches and plums are the major crops. Chico s downtown is a thriving area for unique, independent retail shops and restaurants. Farmers markets attract crowds on Saturday mornings and Thursday evenings. Additionally, the City Plaza in downtown Chico hosts free concerts regularly during the summer. Demographics Population 1 Mile 3 Miles 5 Miles 2010 Population 15,864 88,067 99,285 2013 Population 15,594 88,153 99,839 2018 Population (Projection) 15,463 89,133 101,430 2013 Income 2013 Average Household Income $48,671 $56,933 $60,019 2013 Median Household Income $35,077 $40,507 $42,633 Copyright 2014 [Capital Pacific Real Estate Brokerage Company] Top Employers in Chico Employer # of Employee (Approx.) Enloe Medical Center 2,275 California State University, Chico 1,825 Chico Unified School District 1,400 Wal-Mart 400 City of Chico 393 SHOPS AT MANGROVE 13