9750-70 San Fernando R0ad

9750-70 SAN FERNANDO R0AD SUN VALLEY, CALIFORNIA »» SINGLE TENANT NET LEASE | FUNCTIONAL INDUSTRIAL BUILDINGS ON 2.69 ACRES »» VALUE-ADD OPPORTUNITY / INDUSTRIAL REDEVELOPMENT

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SAN FERNANDO ROAD

A CBRE NATIONAL PARTNERS INDUSTRIAL INVESTMENT OPPORTUNITY THE OFFERING

CBRE, Inc. is pleased to offer an excellent opportunity to acquire 9750-70 San Fernando Road, four high-quality industrial buildings, totaling 35,624 square feet situated on 2.69 acres of land in the highly desirable San Fernando Valley. The buildings offer attractive features including ample parking and a large storage yard. The buildings are 100% leased to L & W Supply Corporation, a leading specialty supplier of building materials, through May 2024. The property is being offered at a price of $7.9M or $67.4 PLSF, which equates to a 5.25% year one cap rate.

With low building coverage, the site provides investors a unique, value-add redevelopment opportunity in the future. The property could accommodate a PRICING SUMMARY new ±50,000 SF Class A industrial facility with ample parking and a generous ASKING PRICE $7,900,000 truck court. ASKING PRICE PLSF The property is strategically located in the San Fernando Valley, one of the $67.4 most stable submarkets in the Los Angeles Basin. In the third quarter of 2018, YEAR ONE CAP RATE 5.25% the submarket had 858,410 SF of gross activity and posted an extremely low vacancy rate of just 1.4%. The prime location includes excellent access to several ALL CASH IRR 8.55% major interstates, rail lines and international airports. YEAR ONE NOI* $414,754

OFFERING SUMMARY * Note, Year 1 NOI includes a total bridge rent credit of $24,034 for the first month of the analysis. »» Four functional steel industrial buildings totaling 35,624 SF with a large PROPERTY SUMMARY storage yard ADDRESS 9750-70 San Fernando Road »» Future value-add redevelopment opportunity Sun Valley, CA 91352 »» Attractive yield throughout term with a purchase price equating to land SQUARE FOOTAGE 35,624 SF value »» 100% leased to L & W Supply Corporation, a 24-year tenant of the ACRES 2.69 AC property, through May 2024 COVERAGE »» Strategically located in the highly desirable San Fernando Valley with 30% excellent access to several major freeways and international airports OCCUPANCY 100% »» Strong market dynamics with a low 1.4% vacancy rate in the Greater San Fernando Valley and an even lower 1.0% vacancy in the East San OFFICE SF/% 6,633 SF / 19% Fernando Valley »» M2 Industrial zoning provides flexibility and permits diverse industrial # OF BUILDINGS 4 uses for the property YEAR BUILT 1952

9750-70 SAN FERNANDO ROAD 1 THE OFFERING

PROPERTY HIGHLIGHTS LOCATION HIGHLIGHTS Functional Buildings in Dense Infill Market Strategically Situated in Prime Distribution Location »» Four functional steel industrial buildings, totaling 35,624 SF. »» Excellent location in an infill market with access to exceptional labor supply. »» Features include 13’-22’ clearance and abundant trailer parking. »» Immediate access to I-5, I-210, I-405, as well as SR-170, SR-118 and US Route »» Large yard makes it ideal for outside storage of heavy materials. 101 and less than a mile from the I-5/SR-118 interchange. »» Recent improvements underway including asphalt grind and overlay, »» Strategically located less than six miles from the Burbank International sealcoat and striping of the parking lot. Airport, and 35 miles from the Los Angeles International Airport. »» Sun Valley’s proximity to the Burbank/Glendale area and the studios and Strong Redevelopment Potential entertainment companies is a competitive advantage. The East Valley »» Low site coverage, infill location and lack of new functional product in has always had stronger absorption with the influence of the studios and the market makes this site perfect for redevelopment. entertainment firms. »» The rectangular site allows for efficient future building layout in the 50,000 SF range. Quality Corporate Neighbors »» The property is surrounded by several corporate users, including FedEx Home TENANCY HIGHLIGHTS Delivery, FedEx Ground, Warner Bros., Hawker Pacific, Timely Industries, 100% Leased to L & W Supply Corporation Yellow Freight, HAECO Aviation, Bimbo Bakery, Vulcan Materials Company »» L & W Supply Corporation has been in the facility for 24 years and and the Los Angeles Department of Water and Power. recently extended their lease until May 2024. »» The company is a leading distributor of top quality building materials and specialty products in the United States. »» This location is utilized for the production and distribution of drywall, ceiling systems, steel framing and other building materials used by commercial and residential contractors.

2 9750-70 SAN FERNANDO ROAD THE OFFERING

MARKET HIGHLIGHTS Strong Market Dynamics »» The San Fernando Valley remains a tight market with limited supply. In the third quarter of 2018, the submarket posted a MARKETING STRATEGY/CRAFTING THE STORY vacancy rate of just 1.4%, the lowest in the Los Angeles region. STEADY DEMAND & LIMITED SUPPLY OF BUILDINGS IN THIS SIZE RANGE »» Historically during the market downturns, the Valley has remained the most stable submarket in terms of vacancy, » The San Fernando Valley is a very stable submarket of Los Angeles in terms of vacancy, rental rates and tenant concessions. Driven by the fact that rental rates and tenant concessions. most companies are in the Valley because of the available » Since 2010, San Fernando Valley rents have grown by 35%, or approximately 4.4% annually. labor and proximity to housing, there is less market volatility. » Demand continues to be very strong for the overall market and in this size range 1.4% » » The overall Los Angeles industrial market is extremely strong, - 84 deals completed in the 50,000-150,000 SF range since 2012. SAN FERNANDO VALLEY and the vacancy rate was 1.4% as of Q3 2018. The vacancy » Lack of available land makes for extremely limited opportunities for future competitive VACANCY RATE rate has remained below 3% for the last 6 years, resulting in developments. steadily rising rents. SAN FERNANDO VALLEY VACANCY RATE »» With a base of over 1.0 billion SF, the Greater Los Angeles 0.9% market generated over 7.07 million SF of gross activity and 4.0% SAN FERNANDO VACANCY over 725,218 SF of net absorption in Q3 2018, an increase of 50,000-150,000 SF 2.5% from the previous quarter. 3.5%

High Barriers to Entry 3.0% Over the last 10 years, the vacancy »» There is very limited land and investment product available in rate has remained below 4%! $0.85 2.5% the market, creating barriers to entry for investors. AVERAGE ASKING LEASE RATE »» Lack of available land and high replacement costs make for 2.0% extremely limited opportunities for competitive developments. 1.5% »» Land values in the Valley are $65-$70 PSF and many industrial 4.4% sites are being converted to other uses. 1.0% ANNUAL RENT GROWTH SINCE 2010 0.5%

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17 SAN FERNANDO BUSINESS CENTER 9750-70 SAN FERNANDO ROAD 3 REGIONAL MAP

Acton 138 Valencia 395 Canyon Pinon Hills Phelan Hesperia Saugus Country 126 Santa Clarita 2 2 5 138 Angeles National Forest 138 Sylmar 173 Mt San Antonio Granada Hills Pacoima Simi Valley 118 210 2 173 138 Lake Chatsworth Northridge 9750-70 SAN FERNANDO ROAD 39 Mt Baldy Crestline Arrowhead 23 La Crescenta-Montrose Canoga Park 210 Van Nuys Altadena 18 Thousand Burbank 330 Woodland 101 170 Oaks Hills Sierra Madre Sherman Oaks Pasadena Bonita Muscoy Calabasas Glendale Arcadia 210 Glendora Hollywood 15 Highland 405 Hills San Marino Citrus Rancho 27 Northeast San Dimas San Bernardino Los Angeles Cucamonga Santa Monica Mountains Topanga Hollywood San Gabriel Covina Claremont Fontana Santa Ana National Recreation Area Beverly Hills 101 10 Colton River El Monte West Covina 57 10 Bloomington Pomona Ontario Redlands Los Angeles Valinda 10 1 East Los 60 Diamond Bar 60 Grand Terrace Malibu Santa Monica La Puente Sunnyslope View Angeles Chino Park-Windsor 605 Jurupa Valley Marina Huntington Chino Hills Hills Whittier Rowland Valle Lindo Del Rey Park Heights Inglewood 83 Eastvale South Whittier Riverside Westmont Downey 57 Moreno Valley Lynwood La Habra Norco 60 Hawthorne Chino Hills State Park Manhattan Compton Norwalk Gardena Yorba Linda Beach Bell ower Woodcrest 91 Corona 91 Fullerton 215 Perris Lakewood 5 Anaheim Hills Reservoir 405 La Palma El Cerrito Lake Mathews Torrance Bixby Knolls 39 Anaheim Cypress Villa Park Palos Verdes Signal Hill Estates Lake Matthews Estelle Nuevo Harbor Rossmoor Orange Mountain Reserve Perris Long Beach North Tustin Rancho Westminster Seal Beach Santa Ana 261 Silverado 74 Palos Verdes San Pedro 15 Fountain Sun City Valley 1 241 405 Canyon Lake Irvine Menifee Huntington Trabuco Lake Elsinore Beach Canyon Lake Forest Lakeland 215 Newport 133 Village Beach 74 73 Mission Viejo Wildomar 15 Aliso Viejo 5 Murrieta Laguna Beach Ladera Ranch

4 9750-70 SAN FERNANDO ROAD LOCAL MAP

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9750-70 SAN FERNANDO ROAD 5 AERIAL

ZERRAN HAIRCARE COSMETIC ENTERPRISES SANTA CLARITA STUDIOS

MORPHE COSMETICS QUIXOTE STUDIOS WHITEMAN AIRPORT HAECO

SAN FERNANDO ROAD

DIRECTV

ATHENS MOLE RICHARDSON WASTE LINE 204 SCENIC EXPRESSIONS

SAN FERNANDO MARBLE & GRANITE

FEDEX COUNTY OF LOS ANGELES

6 9750-70 SAN FERNANDO ROAD SITE PLAN

380ʼ 50ʼ

50ʼ

67ʼ

40ʼ 140ʼ

L & W Supply Corporation

Exp. May 2024 175ʼ

35,624 SF on 117,176 SF of land

BRANFORD STREETSTREET BRANFORD BRANFORD

SAN FERNANDO ROAD

LEGEND DOCK-HIGH DOORS GRADE LEVEL DOORS OFFICE SPACE

9750-70 SAN FERNANDO ROAD 7 CAPITAL MARKETS BARBARA PERRIER DARLA LONGO BRETT HARTZELL REBECCA PERLMUTTER ERIC COX Vice Chairman Vice Chairman Executive Vice President Senior Vice President Senior Associate Lic. 00969169 Lic. 00639911 Lic. 5876 Lic. 01838624 Lic. 02027752 213.613.3033 909.418.2105 +1 206 292 6100 +1 310 922 5237 +1 213 613 3210 [email protected] [email protected] [email protected] [email protected] [email protected]

LOCAL MARKET EXPERTS DEBT & STRUCTURED FINANCE DAVID HARDING GREG GERACI BILLY WALK VAL ACHTEMEIER Senior Vice President Senior Vice President First Vice President Executive Vice President Lic. 01049696 Lic. 01004871 Lic. 01398310 Lic. 01868169 +1 818 502 6731 +1 818 502 6741 +1 818 502 6733 +1 213 613 3109 [email protected] [email protected] [email protected] [email protected]

OFFERING INTEGRATED REAL ESTATE CAPITAL MARKETS SOLUTIONS FROM STRATEGY TO EXECUTION — DELIVERED BY A SEAMLESS NATIONAL PARTNERSHIP

GLOBAL INDUSTRIAL & NORTHEAST SOUTHEAST SOUTH CENTRAL NORTH CENTRAL WEST DEBT & LOGISTICS Michael D. Hines Chris Riley Randy Baird Mike Caprile Darla Longo STRUCTURED FINANCE Jack Fraker Brian Fiumara Frank Fallon Jonathan Bryan Ryan Bain Barbara Perrier Val Achtemeier Heather McClain Brad Ruppel Trey Barry Ryan Thornton Zach Graham Rebecca Perlmutter Steve Roth www.cbre.com/np Lauren Dawicki Jennifer Klingler Eliza Bachhuber Victoria Gomez Brett Hartzell Steve Kundert Eric Cox Scott Lewis Gina Christen

© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.