Offering Memorandum

225 N AMERICAN STREET 225 N American Street • Stockton , CA 95202 1 NON- ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

225 N AMERICAN STREET Stockton , CA ACT ID ZAA0030538

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Location Overview Regional Map Local Map Aerial Photo

FINANCIAL ANALYSIS 02 Tenant Summary Lease Expiration Chart Operating Statement Notes Pricing Detail Acquisition Financing

MARKET OVERVIEW 03 Market Analysis Demographic Analysis

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INVESTMENT OVERVIEW

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OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA YEAR 1 YEAR 2 Net Operating MAJOR EMPLOYERS Price $670,000 Income $0 $0 Down Payment 100% / $670,000 Total Return 0.00% / $0 0.00% / $0 Loan Type All Cash EMPLOYER # OF EMPLOYEES Gross Leasable Area (GLA) SF Deputy Sheriff Office 4,400 Price/SF $0.00 St Josephs Med Ctr Stockton 2,366 Year Built / Renovated 1910 Eagle Canyon Capital LLC 1,482 Lot Size 0.17 acre(s) Police Dept 1,450 US Post Office 1,309 Pactiv LLC 1,303 Healthcare Services 1,300

MAJOR TENANTS Jpmorgan Chase Bank Nat Assn 1,026 TENANT GLA LEASE EXPIRATION LEASE TYPE Brain Hurricane LLC 1,014 MCGEORGE SCHOOL OF LAW 1,000 Dameron Hospital Association 987 Sjcoe 900

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles 2018 Estimate Pop 20,420 151,663 276,515 2010 Census Pop 19,086 141,768 259,295 2018 Estimate HH 7,300 45,941 85,536 2010 Census HH 6,740 42,917 80,044 Median HH Income $21,200 $34,785 $42,864 Per Capita Income $12,576 $15,430 $19,415 Average HH Income $33,294 $49,111 $61,380

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OFFERING SUMMARY INVESTMENT OVERVIEW

Marcus and Millichap is pleased to exclusively list 225 N American Street in Stockton, CA. The subject property is a 7,500-square foot single tenant building on 0.17-acre parcel in the heart of Downtown Stockton.

The subject property is located off of one of Stockton's busiest downtown thoroughfares and allows for easy access to both interstate 5 and State Route 4. The property offers either an owner/user or investor the opportunity to acquire an industrial warehouse in Downtown Stockton well below replacement cost. The property is supported locally by a strong collection of health care, government & retailers along with local landmarks such as The Superior Court of California, The Stockton Arena, Bob Hope Theater, Banner Island Ballpark, Stockton Marina, Stockton Childrens Museum and Weber Point.

Located 60 miles east of the Bay Area and 45 miles south of Sacramento, Stockton is the 13th largest city in the State of California with a population of 311,178 residents. Stockton is located along Interstate 5, State Route 99 and State Route 4 in the California Central Valley. Stockton is connected westward with the San Francisco Bay by the 's 78-mile channel and is one of the state's two inland sea ports. In and around Stockton are thousands of miles of waterways and rivers that make up the California Delta.

The Stockton rents offer a roughly 25% discount to nearby Sacramento and the difference in asking rates between Stockton and the Bay Area is even more stark. Rents are less than half the cost of those in the , and about a third as much as those in San Francisco.

INVESTMENT HIGHLIGHTS

§ Located in the Heart of Downtown Stockton § Excellent Owner User Opportunity § Street side 12'x14' roll-up door with 18' clear height § Building is located on the Enterprise Zone and Redevelopment District § Easy access to Interstate 5 and

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OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property 225 N American Street First Trust Deed Price $670,000 Loan Type All Cash Property Address 225 N American Street , Stockton , CA Assessors Parcel Number 139-250-12 Zoning C-3 SITE DESCRIPTION Number of Stories 1 Year Built/Renovated 1910 Gross Leasable Area 7500 Ownership Fee Simple Lot Size 0.17 Acres

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PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

225 N American Street , Stockton , CA 95202

CLOSE PROXIMITY TO:

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LOCAL MAP

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AERIAL PHOTO

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PROPERTY PHOTO

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS TENANT SUMMARY

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FINANCIAL ANALYSIS PRICING DETAIL

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ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to MMCC—our fully integrated, dedicated financing arm—is committed to enhance value providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance buyer terms. pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,678 National platform $6.24 billion Access to more set of debt/equity sources debt and equity operating total national capital sources financings within the firm’s volume in 2018 than any other and presenting a tightly in 2018 brokerage offices firm in the underwritten credit file industry

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MARKET OVERVIEW

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MARKET OVERVIEW STOCKTON OVERVIEW

Located in California’s Central Valley just over the Diablo mountain range from the , the Stockton metro encompasses all of METRO HIGHLIGHTS San Joaquin County. A large portion of the county remains agricultural, producing a variety of crops including pumpkins, cherries and walnuts, ACCESS TO BAY AREA while an expanding wine industry contributes to growth in agritourism. The metro is 85 miles from San Francisco. The Bay Area can be reached by Venues such as the Bob Hope Theatre, Stockton Children’s Museum and roads, rail, river and air. San Joaquin County Historical Museum add to the quality of life, while MANUFACTURING AND DISTRIBUTION SECTOR Joaquin Delta College and the University of the Pacific contribute to a Stockton’s port, airport, rail, highway and interstate system support a growing manufacturing and distribution sector at a lower cost than the Bay Area. skilled labor force. MORE AFFORDABLE COST OF LIVING AND DOING BUSINESS Lower home and land prices than the Bay Area attract young families to the area boosting population growth. Companies are also moving to the county to cut expenses. ECONOMY

§ is a deep-water inland port with bulk/break-bulk facilities connected to San Francisco Bay via the San Joaquin and Sacramento rivers. The port can berth 15 vessels, including Panamax ships, and provides 5,500 jobs. § Interstates 5, 205 and 580 as well as intermodal facilities in Southeast Stockton and Lathrop support a growing distribution and manufacturing segment. O’Reilly Auto Parts, Le Tote, Allen Distribution, CRM and Spears Manufacturing represent these industries. § St. Joseph’s Medical Center, Dameron Hospital and Kaiser Permanente are among the healthcare providers and largest employers in the county. DEMOGRAPHICS

2018 2018 2018 2018 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 744K 234K 34.1 $59,900 Growth Growth U.S. Median: U.S. Median: 2018-2023*: 2018-2023*: 6.8% 8.5% 38.0 $58,800

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

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MARKETINGDEMOGRAPHICS TEAM Created on October 2019

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail § 2023 Projection $37,760 $53,487 $62,490 Expenditure Total Population 20,290 151,899 286,321 § Consumer Expenditure Top 10 § 2018 Estimate Categories Total Population 20,420 151,663 276,515 Housing $13,372 $17,859 $20,239 § 2010 Census Shelter $9,157 $11,941 $13,347 Total Population 19,086 141,768 259,295 Transportation $6,678 $9,489 $10,999 § 2000 Census Food $4,708 $6,198 $7,081 Total Population 20,668 136,707 230,742 Personal Insurance and Pensions $2,848 $5,022 $6,543 § Current Daytime Population Utilities $2,137 $2,872 $3,238 2018 Estimate 37,025 153,047 272,895 Health Care $2,023 $2,997 $3,568 Entertainment $1,409 $2,148 $2,574 HOUSEHOLDS 1 Miles 3 Miles 5 Miles § 2023 Projection Apparel $1,159 $1,618 $1,874 Household Furnishings and $965 $1,448 $1,743 Total Households 7,459 47,240 90,156 Equipment § 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 7,300 45,941 85,536 § Population By Age Average (Mean) Household Size 2.61 3.13 3.09 2018 Estimate Total Population 20,420 151,663 276,515 § 2010 Census Under 20 29.41% 32.08% 31.47% Total Households 6,740 42,917 80,044 20 to 34 Years 26.06% 24.49% 23.15% § 2000 Census 35 to 39 Years 6.86% 6.61% 6.50% Total Households 6,984 42,439 74,193 40 to 49 Years 11.47% 11.19% 11.55% § Occupied Units 50 to 64 Years 15.94% 15.09% 15.85% 2023 Projection 7,459 47,240 90,156 Age 65+ 10.26% 10.56% 11.51% 2018 Estimate 8,252 48,765 89,607 Median Age 31.50 30.63 31.72 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles § Population 25+ by Education Level § 2018 Estimate 2018 Estimate Population Age 25+ 12,733 90,306 167,535 $150,000 or More 1.25% 3.19% 5.62% Elementary (0-8) 19.87% 16.43% 11.77% $100,000 - $149,000 3.50% 6.68% 9.46% Some High School (9-11) 17.72% 16.11% 13.81% $75,000 - $99,999 4.09% 8.77% 10.58% High School Graduate (12) 26.87% 26.38% 25.92% $50,000 - $74,999 11.20% 16.50% 18.21% Some College (13-15) 15.63% 19.06% 21.74% $35,000 - $49,999 10.44% 14.59% 14.06% Associate Degree Only 4.48% 6.36% 7.98% Under $35,000 69.52% 50.26% 42.07% Bachelors Degree Only 4.46% 6.09% 8.86% Average Household Income $33,294 $49,111 $61,380 Graduate Degree 2.68% 3.36% 4.76% Median Household Income $21,200 $34,785 $42,864 Per Capita Income $12,576 $15,430 $19,415

Source: © 2018 Experian

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2018, the population in your selected geography is 20,420. The The current year racial makeup of your selected area is as follows: population has changed by -1.20% since 2000. It is estimated that the 35.48% White, 12.45% Black, 0.26% Native American and 9.66% population in your area will be 20,290.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of -0.64% from the current year. The current 70.20% White, 12.89% Black, 0.19% Native American and 5.59% population is 54.11% male and 45.89% female. The median age of the Asian/Pacific Islander. People of Hispanic origin are counted population in your area is 31.50, compare this to the US average independently of race. which is 37.95. The population density in your area is 6,493.37 people per square mile. People of Hispanic origin make up 63.11% of the current year population in your selected area. Compare this to the US average of 18.01%.

Households Housing There are currently 7,300 households in your selected geography. The The median housing value in your area was $148,294 in 2018, number of households has changed by 4.52% since 2000. It is compare this to the US average of $201,842. In 2000, there were estimated that the number of households in your area will be 7,459 1,316 owner occupied housing units in your area and there were 5,668 five years from now, which represents a change of 2.18% from the renter occupied housing units in your area. The median rent at the current year. The average household size in your area is 2.61 time was $360. persons.

Income Employment In 2018, the median household income for your selected geography is In 2018, there are 17,070 employees in your selected area, this is also $21,200, compare this to the US average which is currently $58,754. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 30.78% 30.37% of employees are employed in white-collar occupations in this since 2000. It is estimated that the median household income in your geography, and 69.44% are employed in blue-collar occupations. In area will be $22,773 five years from now, which represents a change 2018, unemployment in this area is 10.37%. In 2000, the average time of 7.42% from the current year. traveled to work was 28.00 minutes.

The current year per capita income in your area is $12,576, compare this to the US average, which is $32,356. The current year average household income in your area is $33,294, compare this to the US average which is $84,609.

Source: © 2018 Experian

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