OFFERING MEMORANDUM

500 PLAZA ANAHEIM ANAHEIM BREA YORBA LINDA HILLS

500 PLAZA ANAHEIM

5 (SANTA ANA) FREEWAY - 276,000 CPD

STANFORD COURT 136 UNITS

TARA HILL 168 UNITS

ALAMEDA AVENUE BROOKHURST JUNIOR HIGH SCHOOL 1,200 STUDENTS

BROOKHURST STREET - 47,000 CPD

CRESCENT AVENUE - 11,000 CPD N DOWNTOWN LOS ANGELES

FULLERTON

5 (SANTA ANA) FREEWAY

276,000 CPD

BROOKHURST JUNIOR CRESCENT AVENUE HIGH SCHOOL 1,200 STUDENTS

DAD MILLER GOLF COURSE BROOKHURST STREET - 47,000 CPD

TARA HILL 168 UNITS N 6 CITY OVERVIEW

ANAHEIM

Physical Description lemons, and of course oranges soon filled the void. The famous Polish actress Helena Modjeska settled in Anaheim with her husband and various friends, among Anaheim is the largest city in Orange County, with a total of 46 square miles them , Julian and Łucjan Paprocki. of incorporated area. Due to its large size and elongated east-west shape, it encompasses three distinct areas: the downtown area which is the most urban, the The Disneyland theme park was constructed in Anaheim from July 16, 1954 to July Canyon area which is the industrial section, and Anaheim Hills which features a large 17, 1955 and has since become Anaheim’s largest tourist attraction. The location and growing area of upscale homes. Anaheim is bounded by the city of Fullerton on was formerly 160 acres of orange and walnut trees, some of which remain inside the north, the city of Orange and unincorporated county land on the east, the cities Disneyland. In 2001, Disney’s California Adventure, the most expansive project in the of Santa Ana and Garden Grove on the south, and the cities of Stanton and Buena theme park’s history, opened to the public. Park on the west.

History In the late 20th century, Anaheim grew rapidly in population. During the large expansion of the Disneyland resort in the 1990’s, the city of Anaheim then Anaheim was founded in 1857 by grape farmers and wine makers from Franconia recognized their city as a resort epicenter (“The Anaheim Resort”). The Anaheim in Bavaria. The colony was situated on 1,165 acres. Settlers voted to call the Resort includes the Disneyland Resort, The Anaheim Convention Center, The Honda community Anaheim, meaning “home by the Santa Ana river” in German. The name Center--Home of the NHL Anaheim Ducks, and Angel Stadium, home to the Los later was changed slightly, to Anaheim. To the Spanish-speaking neighbors, the Angeles Angels of Anaheim. The whole city has undergone a rigorous transformation settlement was known as Campo Alemán (Spanish for German Camp). The grape in creating metropolitan beautification to attract mass tourism. industry was destroyed in the 1880s by an insect pest. Other crops - walnuts,

7 Transportation

CA Highway 57 California State Route 57 is the Orange Freeway, a major north-south freeway located entirely within Southern California. This freeway runs from Interstate 5 in Garden Grove to the 210 Freeway in San Dimas.

CA Highway 22 California State Route 22 is an east-west highway in southern Los Angeles County and northern Orange County, California. It runs between Long Beach and Orange by way of Garden Grove. From Long Beach to its eastern terminus in Orange, it is known as the Garden Grove Freeway. It is one of the two principal east-west routes in Orange County, California (the other being the Riverside Freeway approximately eight miles to the north).

CA Highway 55 The Costa Mesa Freeway (generally known as the 55 but sometimes referred to by its legal name or original name, the Newport Freeway) is an 18 mile long north- south highway in Orange County running between Newport Beach and Anaheim at California State Route 91.

Interstate 5 (I-5) Interstate 5 is the westernmost interstate highway in the . Its south terminus is at the international border between the United States and Mexico in the San Diego community of San Ysidro, California. Its north terminus is at the international border between the United States and Canada at Blaine, Washington. This highway links the majority of the metropolitan areas in California (San Diego, Los Angeles, and Sacramento); Oregon (Eugene, Salem, and Portland); and Washington (Tacoma, Seattle and Everett).

Major north/south arterials in the area include Beach Boulevard, Brookhurst Street, Harbor Boulevard, and Imperial Highway. Major east/west arterials in the area include Lincoln Avenue and Katella Avenue. From either two major Southern California locations, Los Angeles (60 miles north) or Located in the heart of Orange County, Anaheim is located approximately 9 miles San Diego (60 miles south) the Amtrak train makes daily stops throughout Orange northwest of the John Wayne Airport (SNA). SNA offers international flights from County. Also available, is the local bus service is provided by the Orange County Orange County to major cities across the U.S. and the world. Service is available Transportation Authority (OCTA). from 11 major carriers and three commuter airlines.

8 Employment Just east of Disneyland is Angels Stadium of Anaheim, home of the Anaheim Angels Major League Baseball team. This facility recently underwent a renovation Anaheim has a diversity of employment in both manufacturing and non-manufacturing that returned the stadium to a baseball only venue, reducing the seating capacity sectors. Boeing is the largest manufacturing employer. Disneyland and Adelphia by roughly 35 percent. Slightly northeast of the stadium, the Honda Center was Communications are the largest non-manufacturing firms. completed in 1993 and houses the Mighty Ducks of Anaheim, a National Hockey League team. This arena also hosts special events and concerts. City Commerce Anaheim features the largest elementary and high school districts in the county, Since its opening in 1955, Disneyland has continued to be the focal point of numerous parks and libraries, and the attractions mentioned above. commerce in Anaheim. It is the city’s largest non-manufacturing, non-utility employer and most internationally famous asset. Disneyland encompasses 102 acres on the Government south side of the Santa Ana freeway between West Street and Harbor Boulevard. Disney’s California Adventure, a second theme park adjacent west of the existing Under its city charter, Anaheim operates under a council-manager government. project, opened in February 2001. Legislative authority is vested in a city council of five nonpartisan members, who hire a professional city manager to oversee day-to-day operations. The mayor serves as Surrounding the Disneyland/Convention Center is a number of hotels, restaurants, the presiding officer of the city council in a first among equals role. All council seats and other attractions that have a significant impact on the city’s tax base. The 1,600- are elected at large. Voters elect the mayor and four other members of the city council room Anaheim Hilton is one of the largest hotels in the world and receives demand to serve four-year staggered terms. Elections for two council seats are held in years from both vacationers and convention attendees. divisible by four while elections for the mayor and the two other council seats are held during the intervening even-numbered years. Under the city’s term limits, an individual may serve a maximum of two terms as a city council member and two terms as the mayor. 9 CITY OF ANAHEIM DEMOGRAPHICS

Selected demographics for the City of Anaheim are shown in the following table:

1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS

POPULATION HOUSING

2015 Population 34,403 303,117 695,500 2015 Estimated Housing Units 10,307 90,059 211,136

2020 Population 36,026 317,646 727,251 2015 Estimated Occupied Units 9,698 85,329 201,156

2010 Population 32,959 289,651 666,479 2015 Estimated Vacant Units 610 4,730 9,979

2000 Population 31,085 279,768 643,409 2015 Est. Median Home Value $397,580 $409,038 $440,870

Percent Pop Change: 2010 to 2015 4.4% 4.7% 4.4% 2015 Est. Average Home Value $421,374 $442,031 $487,842

Percent Pop Change: 2015 to 2020 4.7% 4.8% 4.6%

2015 Est. Owner Occupied Units 3,999 37,938 102,386

2015 POPULATION 34,403 303,117 695,500 2015 Est. Renter Occupied Units 5,699 47,392 98,770

- White Population 14,259 138,671 310,897 2015 Est. Average Household Size 3.5 3.5 3.5

- Black Population 1,431 10,072 19,498

- Asian Population 7,531 55,859 169,668 2015 Est. Average Household Income $64,862 $66,525 $74,138

- Native Hawaiian/Pacific Islander 177 1,721 3,640 2020 Prj. Average Household Income $67,824 $68,484 $76,248

- American Indian/Alaska Native 286 2,850 5,832 2000 Cen. Avg. Household Income $50,950 $52,276 $57,957

- Some Other Race 9,326 80,643 155,739

- 2 or More Races 1,394 13,300 30,227

- 2015 Hispanic Population 19,064 171,595 339,867

- Not Hispanic/Latino, White 5,712 59,678 151,795 Financial Analysis- 500-510 Starbucks Plaza Anaheim

Seller Guarantees the 1st year Vacant Unit Rent Current: No Rent Income to One Vacant Unit (Base (Base Rent/NNN Rent/NNN lease+Mo Rent lease+Modify dify Gross Income: $333,732 Gross Rent): Rent Income: $295,248 Rent):

(-) Operating (-) Operating Expenses $134,583 Expenses $134,583

(+)NNN (+)NNN reimbursem 78% NNN reimbursement 63% NNN ent to owner $104,975 lease to owner $84,787 lease (=) NOI $304,124 (=) NOI $245,452 Current Sale Price $6,250,000 Sale Price $6,250,000 Current Cap Cap Rate 4.87 Rate 3.93

Estimated Expenses General CAM （landscapi Electricity: Electricity: Repair and ng and Meter#01 Meter#01 Manage- Maintena common Water:Meter:- Water:Meter# 186W412 281S412D Property Tax Insurance ment fee nce area clean) 2002 :-4002/042 Trash DKS KS Total 74,375.00 3,014.00 6,188.86 2,090.26 16,002.27 1,888.06 3,811.34 18,632.88 3,962.21 4,618.38 134,583

Based on 2017 Estimated Expenses with Property Taxes reassessed at $6,250,000. ANAHEIM HILLS

ANAHEIM DISNEYLAND

LINCOLN AVENUE - 31,000 CPD

276,000 CPD

5 (SANTA ANA) FREEWAY 500 PLAZA ANAHEIM

DAD MILLER GOLF COURSE

N

BROOKHURST STREET - 47,000 CPD ORANGE COUNTY OVERVIEW

ORANGE COUNTY, CA

Orange County is located along the coast in the southern part of the state of California, and is bordered by Los Angeles County to the north, San Diego County to the south and the Inland Empire counties of San Bernardino and Riverside to the east. The population of Orange County represents approximately 8% of the state of California’s population and is estimated to be over 3.1 million in 2014.

Orange County is served by a large freeway network, which provides access to the four neighboring counties of San Diego, Riverside, San Bernardino and Los Angeles. According the Orange County Transportation Authority (OCTA), several existing freeways are being expanded and upgraded, including the 5, 55, and 405 Freeways. Widening and interchange upgrades are underway on these freeways, and have been completed on the 57 and 91 Freeways. There are also 4 Transportation Corridor toll- roads: 73, 241, 261 and 133. The 91 Freeway also has toll-Express Lanes.

12 The major airport serving the Orange County area is the John Wayne Orange County Airport, located between Newport Beach, Irvine and Costa Mesa. Owned and operated by the County of Orange, the airport has eleven commercial carriers and five freight carriers, employs 164 people, and is served by a 300,000 square foot terminal. Five parking lots in the airport accommodate 7,783 parking spaces. Direct flights are available to the West Coast and mid-west cities. The John Wayne Orange County Airport also provides private, corporate flights and cargo shipments.

Orange County is a major employment center. The county presently employs about 10 percent of the state’s workers, despite having only 8.2 percent of the state’s population. Many workers in Orange County commute from adjacent counties. Orange County has a lower unemployment rate than the state or the nation, typically below four percent. Together the county’s 25 largest employers provide 158,680 jobs. Walt Disney Company and the University of California, Irvine, are the county’s two largest employers with 22,000 and 21,291 employees respectively.

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SITE AND IMPROVEMENTS DESCRIPTION

LOCATION ACCESS 500 Plaza at 500 N. Brookhurst Street is situated on one parcel of land. The property has three public points of ingress and egress; one entrance

Orange County Assessor’s Parcel Number: 072-072-06 from Brookhurst Street along the West side of the subject property, one entrance along the South side of the property along West Alameda Avenue and one on the East side of the subject property off North Valley Street. ZONING General Commercial STRUCTURAL ELEMENTS:

YEAR BUILT EXTERIOR: 2006 Building: Block construction Exterior Walls: Stone facing on front and part of sides with INTERSECTION painted stucco plaster walls Intersection of Brookhurst Street and West Alameda Exterior Windows: Glass in anodized aluminum frames Avenue in the City of Anaheim, Orange County, CA. Roof: Flat built-up composition with Spanish tile roof HVAC: Roof Mounted HVAC units IMPROVEMENTS Two freestanding retail building containing ±9,475 square feet of leasable area and appurtenances on 1.20 acres (52,272 SF) of land. TOPOGRAPHY The property sits grade level along Brookhurst Street

PARKING The property provides an abundant amount of shared UTILITIES parking throughout the shopping center. All Utilities paid directly by tenants.

FRONTAGE 500 Plaza Center benefits from approximately 220 linear feet of frontage on Brookhurst Street, with over 47,000 cars per day passing in front of the subject property.

15 CRESCENT AVENUE

ALAMEDA AVENUE

BROOKHURST STREET - 47,000 CPD 500 PLAZA ANAHEIM

N 500 PLAZA ANAHEIM

500 PLAZA ANAHEIM 500 N Brookhurst St - 101/102

PARCEL MAP

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This copyrighted report contains research licensed to CBRE - 603244. SITE PLAN SITE

N BROOKHURST ST 1700 SF W ALAMEDAAVE 1050 SF C h e e

S w e e t 3 1050 SF 6 0

K i t c h e n 1050 SF Building Office Smoke Shop ( 1100 SF A v a 1425 SF 1050 SF i l a Hair b l e ) 1050 SF Indian Food

N VALLEY ST 19 TENANT DESCRIPTIONS

STARBUCKS CORPORATION METRO PCS

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty MetroPCS is a prepaid wireless service providing nationwide talk, text, and coffee worldwide. The company’s stores offer coffee and tea beverages, data services in the United States.Owned by T-Mobile, MetroPCS operates packaged roasted whole bean and ground coffees, single serve products, the sixth largest mobile telecommunications network in the US. and juices and bottled water. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Bou- Website: www.metropcs.com lange, Ethos, Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Market Cap: $26.62 billion Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As Ownership: NYSE:TMUS of October 30, 2014, it operated 21,878 stores in 66 countries. Starbucks S&P Ratings: BB Corporation was founded in 1985 and is based in Seattle, Washington. Corp Headquarters: Richardson, TX # of Employees: 45,000 Website: www.starbucks.com Market Cap: $69.73 Billion Ownership: NYSE: SBUX S&P Rating: A- Revenue (2014): $16 Billion Employees: 191,000 Number of Stores: 21,878

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