5660 SEPULVEDA BOULEVARD CULVER CITY, CALIFORNIA

TROPHY NNN RETAIL INVESTMENT OPPORTUNITY IN ONE OF LOS ANGELES COUNTY’S MOST DYNAMIC INFILL MARKETS

Exclusively listed through HFF. Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740. EXECUTIVE SUMMARY

PROPERTY SUMMARY THE OPPORTUNITY ADDRESS 5660 SEPULVEDA BOULEVARD CULVER CITY HFF, as exclusive advisor, is pleased to offer the extraordinary opportunity to purchase the fee simple RENTABLE AREA (SF) 32,873 interest in Sprouts (the “Property”), located in one of the most dynamic commercial areas of Southern LAND AREA (ACRES) ±2.63 California, Culver City. This is one of the top performing Sprouts in the country generating close to double YEAR BUILT/RENOVATED 1997/2010 PARKING RATIO 3.71 SPACES PER 1,000 SF the sales of the average store. Furthermore, the Property is leased on a triple net basis through June 2025 at a rental rate that is well below market. The Property is strategically located at the intersection INVESTMENT OVERVIEW TENANT SPROUTS FARMERS MARKET of two of Los Angeles County’s most important thoroughfares, the 405 and SR-90 Freeways, ensuring OWNERSHIP FEE SIMPLE tremendous traffic and exposure to nearly 450,000 combined cars per day. Within a five-mile radius of YEAR 1 NOI $952,158 the Property there are over 738,000 residents with a median home value of over $670,000. LEASE COMMENCEMENT 6/23/2010 LEASE EXPIRATION DATE 6/30/2025 LEASE TYPE NNN – LANDLORD RESPONSIBLE INVESTMENT HIGHLIGHTS FOR ROOF & STRUCTURE OPTIONS TO EXTEND THREE 5-YEAR OPTIONS BEST-IN-CLASS GROCERY TENANT (FIXED % INCREASES) PERCENTAGE RENT 2% OVER GROSS SALES IN EXCESS + Sprouts (NASDAQ:SFM) is one of the nation’s leading specialty OF BREAKPOINT grocers with a $3.42 billion market cap. OM S D + The company operates approximately 200 stores in 12 states and N H E VA LOR EG IA L HE RE D U C E 2014 sales were in excess of $2.97 billion, a 21.7% increase over 2013. E E A + M B

FAVORABLE LONG TERM NNN LEASE WITH A E V M 2 G UPSIDE POTENTIAL 0 O 1 H C 5 N O N P IO U I +The Property is leased on a NNN basis through June of 2025 with OPULAT SEHOLD another 15 years of options and has a corporate guarantee. +The lease includes percentage rent of 2% of sales over a breakpoint, 1-MILE RADIUS 1-MILE RADIUS 1-MILE RADIUS 1-MILE RADIUS which the Tenant is currently paying. 23,746 $654,570 $87,012 47.5% +The lease features fixed rental escalations every five years continuing 3-MILE RADIUS 3-MILE RADIUS 3-MILE RADIUS 3-MILE RADIUS through three 5-year renewal options. 256,928 $687,278 $85,901 47.7% +The next fixed rent increase is 8% in June of 2020. 5 MILE RADIUS 5 MILE RADIUS 5 MILE RADIUS 5 MILE RADIUS 738,505 $671,431 $83,006 41.4%

2 EXECUTIVE SUMMARY

BELOW MARKET RENT IN AN EXTREMELY COMPETITIVE RETAIL SUBMARKET

+ Originally leased in 2010, the current rent is $2.08/SF/Month, which is well below market rents achievable today. + Since June of 2010, rents in the Culver City retail submarket have climbed nearly 25% and are still more than 32% below the peak levels achieved in 2007. + Occupancy within this submarket never reached below 96% throughout the economic downturn and stands at 98% currently.

EXCEPTIONAL SALES PERFORMANCE

+ One of the top Sprouts locations in the country, the Property generates nearly double the sales of the average Sprouts store. + Sales at this location increased an average of nearly 18% each year from 2011 through 2014.

REGIONAL URBAN-INFILL LOS ANGELES COUNTY LOCATION

+ Densely populated, supply-constrained trade area with 23,746 residents within 1-mile, 256,928 residents within 3-miles, and 738,505 residents within 5-miles. + Affluent submarket with average household incomes exceeding $87,000 within a 1-mile radius. + The subject property is strategically located at the intersection of two freeways in Los Angeles with regional access from the 405 Freeway (over 300,000 cars per day) via Sepulveda Boulevard or Jefferson Boulevard and the Marina (SR-90) Freeway (over 130,000 cars per day) via Slauson Avenue. + Located directly across the street from Westfield Culver City, a 1,000,000 + square foot regional mall anchored by Target, Best Buy, JC Penney and Macy’s.stands at 98% currently.

hfflp.com 3 INVESTMENT ADVISORS DEBT ADVISOR GLEB LVOVICH NICK FOSTER CJ OSBRINK BRYAN LEY JOHN CRUMP GREG BROWN 949.798.4115 949.798.4135 949.798.4132 310.407.2120 [email protected] 949.798.4129 [email protected] [email protected] [email protected] [email protected] Ph: 310.407.2117 [email protected] CA Lic. # 01496699 CA Lic. # 01831851 CA Lic. # 01900338 CA Lic. #01458927 CA Lic. #01420973 CA LIC. # 01335204 HFFLP.COM

©2015 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.