OFFERING MEMORANDUM 34295 Monterey Ave Rancho Mirage, CA

OFFERING MEMORANDUM

SINGLE-TENANT 34295 Monterey Ave Rancho Mirage, CA a fully owned subsidiary of

34295 Monterey Ave | Rancho Mirage, CA 1 TRI-PALM ESTATES & COUNTRY CLUB

±93,000 VPD

DINAH SHORE DRIVE - ±23,133 VPD

MONTEREY AVENUE - ±40,800 VPD

34295 Monterey Ave | Rancho Mirage, CA Table of Contents

2 Executive Summary 5 Property Description

Offering Summary Tenant Aerial Investment Summary Property Summary Investment Highlights Site Plan

9 Financial Overview 14 Area Overview

Rent Roll Coachella Valley Lease Abstract Rancho Mirage Tenant Overview

Exclusively Listed By

El Warner Clint McMorris Jordan Gomez Charley Simpson Caitlin Zirpolo

Executive Vice President Senior Vice President Associate Vice President Senior Vice President Associate Vice President Lic. 01890271 Lic. 00414186 Lic. 02008809 Lic. 01302079 Lic. 01987844 Mobile +1 858 752 3078 Mobile +1 310 614 8563 Mobile +1 951 264 5994 Mobile +1 949 275 8807 Mobile +1 760 685 6873 Direct +1 949 724 5690 Direct +1 310 321 1810 Direct +1 949 724 5610 Direct +1 949 724 5680 Direct +1 949 724 5640 [email protected] [email protected] [email protected] [email protected] [email protected]

34295 Monterey Ave | Rancho Mirage, CA 1 EXECUTIVE SUMMARY

34295 Monterey Ave | Rancho Mirage, CA 2 Offering Summary

Colliers’ Retail Capital Markets Team is pleased to present the opportunity to acquire the Pacific Sales Kitchen & Bath (a Best Buy Company) portion of Monterey Market Place, a Home Depot and Regal Cinemas anchored community shopping center located in the Coachella Valley. The Rancho Mirage Pacific Sales Kitchen & Bath is an exceptional opportunity to secure a stable cash flow from an investment grade credit tenant with rental increases in the lease term that has been operating out of this location for almost 15 years.

Recently extended the lease 5 more years, showing a Located at an intersection with over 500,000 SF of strong commitment to the location National Retailers present

Guaranteed by an investment grade credit company in Exceptional Coachella Valley location Best Buy Co., Inc. (NYSE: BBY)

Rental increases every 2.5 years, a strong hedge against Desirable demographic profile inflation

Nestled between a dominant Home Depot and Regal Delivered Free & Clear of Debt Cinemas

Nearly 15 years of operating history at this store

The Property is ideally situated at the lighted intersection of Monterey Ave and Dinah Shore Dr within the vibrant Coachella Valley city of Rancho Mirage, California. The property benefits from its prominent location within a very strong retail corridor and direct access to the heavily trafficked 10 Freeway (93,000 VPD).

INVESTMENT SUMMARY

Asking Price: $6,545,000 Term Remaining: ±5.5 years (3/6/2026 Exp)

Cap Rate: 5.50% Rental Increases: CPI Index Based Increase Every 2.5 Years

Tenant: Pacific Sales Kitchen & Bath Centers Total Rentable Square Feet: ±30,000 Square Feet

Guarantor: Best Buy Company, Inc. Total Land Area: ±152,460 SF (3.5 Acres)

In-Place NOI: $360,000 Parking Spaces / Ratio: 107 spaces (3.57:1,000 SF)

34295 Monterey Ave | Rancho Mirage, CA 3 Investment Highlights

Secure and stable income stream with newly extended lease to Pacific Sales Kitchen & Bath Centers which is a wholly owned subsidiary of Best Buy Co., Inc. (NYSE: BBY)

Long term track record at this location with almost 15 years of historical occupancy

Irreplaceable Southern California Location in the desirable Coachella Valley community of Rancho Mirage, CA

Anchor to Monterey Market Place, which is one of the dominant Community Centers anchored by Home Depot and Regal Cinemas on the main retail thoroughfare in Rancho Mirage

Synergistic mix of surrounding National Retailers including Home Depot, Walmart, Costco, Sam’s Club, Kohl’s, Ashley Furniture, Regal Cinemas and many others

Rapidly growing and affluentpopulation of 22,844 residents with an average household income of $111,787 living within a three-mile radius of the Property

Excellent visibility and access from the heavily trafficked intersection of Monterey Avenue and Dinah Shore Drive with a combined 63,933 cars per day

34295 Monterey Ave | Rancho Mirage, CA 4 PROPERTY DESCRIPTION

34295 Monterey Ave | Rancho Mirage, CA 5 TRI-PALM ESTATES & ±93,000 VPD COUNTRY CLUB MONTEREY AVENUE - ±40,800 VPD

DINAH SHORE DRIVE - ±23,133 VPD

34295 Monterey Ave | Rancho Mirage, CA 6 Property Summary Location Summary Property Name Pacific Sales Kitchen & Bath Centers The Subject is located at the southwest corner of the intersection of Monterey Address 34295 Monterey Ave, Rancho Mirage, CA 92270 Avenue (±40,800 VPD) and Dinah Shore Drive (±23,133 VPD) in the city of Rancho Square Footage (GLA) ±30,000 Mirage, Coachella Valley, in the state of California.

Land Area ±152,460 SF (3.5 Acres) NORTH Building Height 1 Story - 35 Feet The subject is bordered to the North by the heavily trafficked 10 freeway (93,000 VPD) and a Costco anchored shopping center. Cross Street Dinah Shore Dr SOUTH Parking 107 Spaces (3.57:1,000 SF) The subject is bordered to the South by golf courses and single-family residential subdivisions. APN 685-070-011 EAST Year Built 2004 The subject is bordered to the East by over 300,000 SF of retail anchored by Property Type STNL Walmart Supercenter.

Type of Ownership Fee Simple WEST The subject is bordered to the West by additional commercial retail and single-family Term Remaining ±5.5 Years residential subdivisions. MONTEREY AVENUE - ±40,800 VPD

34295 Monterey Ave | Rancho Mirage, CA 7 Site Plan

DINAH SHORE DR - ±23,133 VPD LIQUOR DRY CLEANERS MONTEREY PALMS

THE SLICE PIZZERIA & RISTORANTE

BURGERS & BEER DESERT PATIO MONTEREY AVE - ±40,800 VPD

SUBJECT

34295 Monterey Ave | Rancho Mirage, CA 8 FINANCIAL OVERVIEW

34295 Monterey Ave | Rancho Mirage, CA 9 Rent Roll

Contract Rental Rate Rent Per Sq. Ft. Lease Lease Square % of Tenant Start End Feet GLA Year Month Year Month Rent Increases Options

CPI Index Based Pacific Sales Mar-06 Mar-26 30,000 100.0% $360,000 $30,000 $12.00 $1.00 Increase Every 1x5 Year 2.5 Years

34295 Monterey Ave | Rancho Mirage, CA 10 Lease Abstract

Lessor TPX, L.P. Expiration Date 3/6/2026

Lessee Pacific Sales Kitchen and Bath Centers, Inc. Initial Lease Term 60 months

Remaining Lease Term Tenant Name Pacific Sales 65 Months (Current-3/6/2026)

Guarantor Best Buy Co. Inc. No. & Term of Options 1 x 5 Year Options

Contractual Rental Rate Tenant Size (SF) ±30,000 $30,000 (Current-3/6/2026) 2.5 Yrs after extension commences: Lease Effective Date 3/7/2006 Rent Increase Schedule CPI Index Based Increase

This Lease is intended to be a net lease of the Premises. Except as expressly provided in this Lease, Tenant shall pay for all costs and expenses Common Area Costs and of maintaining, repairing, operating and insuring the Premises. If Tenant fails to perform any maintenance, repair or replacement for which it is Management Fee responsible, Landlord may perform such work and Tenant shall be obligated to reimburse Landlord for the costs incurred by Landlord (together with a 10% administrative fee).

Tenant shall contract directly and pay for all water, gas, heat, light, power, telephone, telecommunications, sewer, fire sprinkler charges and other Utilities utilities used on or from the Premises together with any taxes, penalties, surcharges or similar charges relating to such utilities.

Tenant shall pay at least ten (10) days before due all taxes, assessments and governmental charges that accrue against the Premises during the Lease Taxes Term and deliver to Landlord receipts or other evidence of payment before the due date thereof.

Tenant shall at its own expense keep and maintain in full force and effect the following policies, each of which shall be endorsed as needed to provide that the insurance afforded by these policies is primary and that all insurance carried by Landlord is strictly excess and secondary and shall not Property Insurance contribute with Tenant’s liability insurance: Commercial General Liability Insurance, Property Insurance on Tenant’s Property, Business Interruption Insurance, Worker’s Compensation Insurance & Automobile Liability Insurance.

Landlord shall not have any obligation to maintain or repair the Premises or any part of it, and Tenant, at Tenant’s sole cost and expense, shall repair, replace and maintain in good condition and in compliance with all Legal Requirements all portions of the Premises, including without limitation the Repairs & Maintenance roof, foundation, exterior walls, and structural components of the Building, dock and loading areas, truck doors, plumbing, water and sewer lines, fire sprinklers and fire protection systems, entries, doors, ceilings, windows, interior walls, HVAC, parking areas and all other aspects of the Premises.

Landlord shall first be required to notify Tenant of Landlord's desire to sell before selling, or agreeing to sell, the Premises to anyone other than a Family Transferee, and Tenant shall have the exclusive right for a period of thirty (30) days after delivery of Landlord's notice of desire to sell to negotiate an Right of First Negotiation agreement with Landlord to sell the Premises to Tenant. Landlord shall not have any obligation to accept terms of purchase proposed by Tenant or any obligation to negotiate in good faith with Tenant.

34295 Monterey Ave | Rancho Mirage, CA 11 Tenant Overview

Tenant Name: Pacific Sales Kitchen and Bath Centers, Inc. Pacific Sales Kitchen and Bath Centers is a wholly owned subsidiary of Best Buy Co., Inc (NYSE: BBY). They were originally opened with one store in Torrance, California. They offer Tenant Ownership: Best Buy Co., Inc. high to mid-range kitchen appliances and bathroom fixtures. The company was purchased by Best Buy in 2006. Since then, the company has opened over 35 stores in California, Nevada Revenue: $42.87 Billion and Arizona, and had opened stores within existing Best Buy stores in Texas and Hawaii as well as California, Nevada, Oregon, Georgia, and Arizona to offer higher end appliances than Headquarters: Richfield, Minnesota are currently available in Best Buy.

34295 Monterey Ave | Rancho Mirage, CA 12 34295 Monterey Ave | Rancho Mirage, CA 13 AREA OVERVIEW

34295 Monterey Ave | Rancho Mirage, CA 14 Coachella Valley

The Coachella Valley is located in the Colorado Desert of Southern California’s Riverside County. The Valley is best known as the location of several wintertime resort cities, especially Palm Springs, that are popular destinations for snowbirds—people who live in cold climates and seek out warmer weather during the winter. The valley is also known for a number of annual events, including the Coachella Valley Music and Arts Festival, the Stagecoach Country Music Festival, and the Riverside County Fair and National Date Festival, all held in Indio. Other events include the Palm Springs Modernism Week, Palm Springs International Film Festival, the ANA Inspiration and Desert Classic golf tournaments, and the Indian Wells Masters tennis tournament.

In addition to Palm Springs and the area’s largest city Indio, the valley is home to the resort cities of Cathedral City, Indian Wells, La Quinta, Palm Desert, and Rancho Mirage. Because it is a major winter destination, the valley’s population fluctuates from almost 500,000 in April to around 200,000 in July and around 800,000 by January. It is estimated that 3.5 million conventioneers and tourists visit the valley each year.

Major Employers Demographics

Company # of Employees Population 2020 Estimate 444,324 Eisenhower Medical Center 3,700 2025 Projection 470,298 Growth 2020-2025 5.8% Palm Springs Unified School District 3,123 Growth 2010-2025 15.9% Desert Sands Unified School District 2,677 Households JW Marriott Desert Springs Resort & Spa 2,311 2020 Estimate 168,488 2025 Projection 177,493 2,237 Desert Regional Medical Center Growth 2020-2025 5.3% Growth 2010-2025 15.5% Coachella Valley Unified School District 2,000 Household Income La Quinta Resort & Club 1,450 Average Household Income $90,881

Fantasy Springs Resort Casino 1,100 Median Household Income $56,986

34295 Monterey Ave | Rancho Mirage, CA 15 Music Festivals The Coachella Valley Music and Arts Festival and The Stagecoach Festival are annual music and arts festivals held at the Empire Polo Club in Indio, California, in the Coachella Valley in the Colorado Desert. They were both founded and organized by Goldenvoice, a subsidiary of AEG Presents. The events feature musical artists from many genres of music, including country, rock, pop, indie, hip hop and electronic dance music, as well as art installations and sculptures.

Coachella’s origins trace back to a 1993 concert that Pearl Jam performed at the Empire Polo Club. The show validated the site’s viability for hosting large events, leading to the inaugural Coachella Festival being held over the course of two days in October 1999, three months after Woodstock ‘99. After no event was held in 2000, Coachella returned on an annual basis beginning in April 2001 as a single-day event. In 2002, the festival reverted to a two-day format. Coachella was expanded to a third day in 2007 and eventually a second weekend in 2012; it is now held on consecutive three-day weekends in April, with the same lineup each weekend.

Stagecoach took place for the first time in 2007. Put on at the same venue, also by Goldenvoice, Stagecoach is seen as a “cousin” of Coachella. In 2012, the festival’s 55,000 attendees marked its first sell-out crowd. In 2018, Stagecoach set a new attendance record with 75,000 attendees. Notable performers have included Brad Paisley, Jason Aldean, Kenny Chesney, Brooks and Dunn, Toby Keith, Miranda Lambert, Blake Shelton, Sugarland, The Charlie Daniels Band, George Strait, Alan Jackson, Willie Nelson, Eagles, Roger McGuinn, Rascal Flatts, Taylor Swift, Tim McGraw, Carrie Underwood, Keith Urban, Martina McBride, Don Williams, Jerry Lee Lewis, Shania Twain, Luke Bryan, Garth Brooks, and Eric Church.

In 2019, both Coachella and the Stagecoach Music Festivals were projected to produce over $1.4 billion in profits, this according to Indio City Services Manager Jim Curtis. More than half of that, $805 million, would go to the Coachella Valley, while the city of Indio was expected to rake in around $212 million.

34295 Monterey Ave | Rancho Mirage, CA 16 Rancho Mirage

Rancho Mirage is located in the heart of the Coachella Valley. This vibrant and beautiful tourist destination is 110 miles east of Los Angeles, 110 miles northeast of San Diego, and 270 miles west of Phoenix.

Rancho Mirage is in the geographic center of the valley providing easy access to Interstate 10 and Highway 111. It is within 10 miles of the Palm Springs International Airport. The City is known for beautiful country clubs, golf courses, luxury automotive dealerships, spas, exquisite dining, state of the art medical facilities, year-round cultural offerings, and the Rancho Mirage Observatory.

Rancho Mirage is in close proximity to a wide variety of attractions such as the Palm Springs Aerial Tramway, The Living Desert Zoo & Gardens, Coachella and Stagecoach music festivals, and Joshua Tree National Park. The City is also a significant participant in the annual Modernism Week and Desert X Art Exhibit.

The community is known for quality development, high household incomes, high home values, exceptionally low crime rates and a year-round tourist destination. Tourism is abundant within the Coachella Valley, with over 13.6 million visitors spending over $5.5 billion in 2017 alone. Since 2012, room demand has outpaced room supply, indicating an opportunity for additional hotel development.

34295 Monterey Ave | Rancho Mirage, CA 17 El Warner Clint McMorris Jordan Gomez Charley Simpson Caitlin Zirpolo

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34295 Monterey Ave | Rancho Mirage, CA 18