Actual Property

EXCLUSIVE OFFERING: Multi-Tenant Tesoro Gas Station 36520 Temeku St, Murrieta, CA 92563 Table of Contents

I. Executive Summary 3

II. Lease Summaries 4

III. Rent Roll 5

IV. Property Photography 6

V. Tenant Overviews 8

VI. Market Overview 9

VII. Aerial 11

VIII. Proximate Development Activity 12

IX. Contacts 17 Executive Summary

The Offering

. JLL is pleased to offer for sale the fee-simple interest in a multi-tenant gas station (the PROPERTY OVERVIEW “Property” or “Asset”), located in Murrieta, CA. The Asset features a diversified tenant mix anchored by a prominent gas station operator with investment-grade parent credit (Tesoro 36520 Temeku St Property Address Corporation, Moody’s: Ba1) and an NOI-Weighted average remaining term of over 15 years. Murrieta, CA 92563 The asset is situated just off bustling Winchester Road in the heart of significant development activity, both retail and residential. The greater South Riverside submarket is benefitting from Price/PSF: $5,632,300/$960 PSF terrific growth and quality demographics. Investment Highlights Cap Rate: 5.25% Year Built 2016 . Over 15 years of NOI-weighted contractual lease term remaining, including over 19 years remaining on credit-rated Tesoro Corporation’s corporate guaranteed lease Ownership Interest Fee Simple . Excellent access and visibility just off Winchester Road (22,800 VPD) Parcel Size 1.49 Acres . Located directly between a business park with several significant tenants such as Abbott Labs and Frito-Lay, and Winchester’s primary shopping center with tenants such as Stater Bros, Parking Spaces 38 Starbucks, and Bank of America

. Dense concentration of retail development activity surrounding the asset, including two major Total Square Feet 5,869 shopping centers in progress directly across Winchester Road Tesoro (Shell Branded) (3,069 Tenant Mix (Square Feet) SF) . High-performing Fortune-100 anchor tenant with phenomenal operating statistics, including 9,000 gallons of gas sold per day, over 2,000 carwashes per week, and $100,000 of Dominos (Franchisee) (1,500 convenience store sales per month SF) El Burro Taco Shop (1,300 SF) . Delivered free and clear of debt, allowing investors to capitalize on today’s attracting financing options Total Combined NOI $295,700

NOI-Weighted Average Market Debt Profile 15.7 Years Remaining Term . For this asset, at the high level the market will reflect 60% LTV, 10-year term followed by a 30-year amortization schedule, ~4.35% interest rate. Proprietary and confidential 3 Lease Summaries

TESORO/SHELL LEASE ABSTRACT DOMINOS LEASE ABSTRACT EL BURRO LEASE ABSTRACT Tesoro Refining and Tenant/Guarantor Marketing Company Tenant/Guarantor Raja Enterprises, Inc Tenant/Guarantor Personal Guarantee LLC Lease Structure NN+ Lease Structure NN+ Lease Structure NN+ Roof, Structure, Foundation, Paint, Exterior, Plumbing, Landlord Roof & Structure Landlord Roof & Structure Landlord Electrical, Mechanical HVAC Tenant HVAC Tenant HVAC Tenant Tenant (Landlord Tenant (Landlord Tenant (Landlord CAM/Parking CAM/Parking CAM/Parking Recaptures Pro-Rata) Recaptures Pro-Rata) Recaptures Pro-Rata) Tenant (Landlord Tenant (Landlord Tenant (Landlord Property Taxes Property Taxes Property Taxes Recaptures Pro-Rata) Recaptures Pro-Rata) Recaptures Pro-Rata) Utilities Tenant Pays Direct Utilities Tenant Pays Direct Utilities Tenant Pays Direct

Lease Expiration 12/31/2036* Lease Expiration 4/30/2022* Lease Expiration Nov 14, 2027

Remaining Lease Term 19.5 Years* Remaining Lease Term 4.8 Years* Remaining Lease Term 10.4 Years

Square Feet 3,069 Square Feet 1,500 Square Feet 1,300

Current NOI/PSF $200,000/$65 Current NOI/PSF $45,000/$30 Current NOI/PSF $50,700/$39

Options 2, 5-year options Options 5, 5-year options Options 5, 5-year options 10% every 5 years and 3% annually, including 12% in year 6 and in each Increases Increases Increases at options through options option ROFR 30 Day ROFR ROFR None ROFR None

*Broker Estimate Proprietary and confidential 4 Rent Roll

Year Tesoro (3,069 SF) Dominos (1,500 SF) El Burro (1,300 SF) Total (5,869 SF) 1 $200,000 $45,000 $50,700 (100% Occupied) $295,700 2 $200,000 $46,350 $50,700 (100% Occupied) $297,050 3 $200,000 $47,741 $50,700 (100% Occupied) $298,441 4 $200,000 $49,173 $50,700 (100% Occupied) $299,873 5 $200,000 $50,648 $50,700 (100% Occupied) $301,348 6 $220,000 (Option 1) $52,167 $56,784 (100% Occupied) $328,951 7 $220,000 (Option 1) $53,732 $56,784 (100% Occupied) $330,516 8 $220,000 (Option 1) $55,344 $56,784 (100% Occupied) $332,128 9 $220,000 (Option 1) $57,005 $56,784 (100% Occupied) $333,789 10 $220,000 (Option 1) $58,715 $56,784 (100% Occupied) $335,499 11 $242,000 (Option 2) $60,476 (Option 1) $63,598 (100% Occupied) $366,074 12 $242,000 (Option 2) $62,291 (Option 1) $63,598 (100% Occupied) $367,889 13 $242,000 (Option 2) $64,159 (Option 1) $63,598 (100% Occupied) $369,757 14 $242,000 (Option 2) $66,084 (Option 1) $63,598 (100% Occupied) $371,682 15 $242,000 (Option 2) $68,067 (Option 1) $63,598 (100% Occupied) $373,665 16 $266,200 (Option 2) $71,230 (75% Occupied) $337,430 17 $266,200 (Option 2) $71,230 (75% Occupied) $337,430 18 $266,200 (Option 2) $71,230 (75% Occupied) $337,430 19 $266,200 (Option 2) $71,230 (75% Occupied) $337,430 20 $266,200 (Option 2) $71,230 (75% Occupied) $337,430 21 (Option 1) $292,820 (Option 3) $79,777 (75% Occupied) $372,597 22 (Option 1) $292,820 (Option 3) $79,777 (75% Occupied) $372,597 23 (Option 1) $292,820 (Option 3) $79,777 (75% Occupied) $372,597 24 (Option 1) $292,820 (Option 3) $79,777 (75% Occupied) $372,597 25 (Option 1) $292,820 (Option 3) $79,777 (75% Occupied) $372,597 26 (Option 2) $322,378 (Option 4) $89,351 (75% Occupied) $411,729 27 (Option 2) $322,378 (Option 4) $89,351 (75% Occupied) $411,729 28 (Option 2) $322,378 (Option 4) $89,351 (75% Occupied) $411,729 29 (Option 2) $322,378 (Option 4) $89,351 (75% Occupied) $411,729 30 (Option 2) $322,378 (Option 4) $89,351 (75% Occupied) $411,729 31 (Option 5) $100,073 (22% Occupied) $100,073 32 (Option 5) $100,073 (22% Occupied) $100,073 33 (Option 5) $100,073 (22% Occupied) $100,073 34 (Option 5) $100,073 (22% Occupied) $100,073 35 (Option 5) $100,073 (22% Occupied) $100,073

Proprietary and confidential 5 Additional Property Photography

Proprietary and confidential 6 Additional Property Photography

Proprietary and confidential 7 Tenant Overviews

As Tenant, Tesoro (the “Company”) will appeal to a variety of investor profiles due to its size and diverse business units, amongst other factors.

Tenant Highlights Tesoro Overview Tenant and Guarantor Tesoro Refining and Marketing • Tesoro Corporation, a Fortune 100 company, is an independent refiner and marketer Company, LLC of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in Parent Company Tesoro Corporation the Western with a combined capacity of over 895,000 barrels per day. Year Founded 1968 • Tesoro’s retail component is managed within Tesoro Refining and Marketing Type Public Company, LLC, a subsidiary of Tesoro Corporation. Tesoro Refining and Marketing Ticker (NYSE) TSO markets fuel to 880 branded retail gas stations (including 380-company owned stations operating under the Tesoro, Shell, Mirastar, and USA Gasoline brands). Industry Oil & Gas Refining and Marketing Credit Rating (Moody’s) Ba1 / Positive Outlook • Tesoro Refining and Marketing supplies jet fuel to the vast majority of commercial Headquarters San Antonio, TX airlines with routes in the West, as well as sells heavy fuels and oils to marine, commercial, industrial, and utilities customers. TTM Revenue 24.58 Billion Locations 2,400 • The Company has also held long existing relationships with clients in military and Employees 6,000+ defense, possessing contracts valued in the hundreds of millions of dollars and including clients such as the Defense Logistics Agency and the Defense Energy CEO Mr. Gregory J. Goff Support Center in Fort Belvoir, Virginia. Website www.tsocorp.com

• Domino’s Pizza is the nation’s second largest pizza chain • El Burro Taco Shop is a new, non-chain concept that is behind only Pizza Hut, with 2016 sales of approximately sure to be a hit in the greater Murrieta area. El Burro serves $9.6 billion. The subject franchise is an experienced breakfast, lunch, and dinner both inside the restaurant and operator with 13+ locations, and is well-poised to serve a through its convenient drive-thru. In addition, El Burro large and growing residential base around the asset. The serves beer and airs frequent soccer matches, providing a gas station location increases visibility and carry-out draw beyond typical mealtime hours. convenience, and the lease boasts multiple personal guarantees. Proprietary and confidential 8 Murrieta-Temecula Market

MARKET OVERVIEW DEMOGRAPHIC INFORMATION  The Asset is located in the fast-growing Temecula-Murrieta MSA, 1-mile radius 3-mile radius 5-mile radius encompassing the southern portion of Riverside county and anchored by the cities of Temecula and Murrieta, but also including POPULATION surrounding municipalities such as Winchester, Hemet, Menifee, 2021 Projection 7,360 61,830 149,731 Lake Elsinore, and several smaller communities. 2016 Estimate 6,814 61,830 149,731 2016-2021 Annual Growth 1.55% 2.08% 1.51%  The Murrieta-Temecula area has achieved blistering growth to the 2016 Number of Households 1,843 17,245 44,543 tune of 200% over the last 20 years, and the growth is only INCOME projected to continue, forecasted at over 2% per year in the three 2016 Median Household Income $92,832 $90,794 $84,677 miles surrounding the asset. 2021 Projected Median HH Income $102,342 $101,999 $95,944  Murrieta and the surrounding areas have become a popular 2016 Average HH Income $105,662 $105,889 $100,951 relocation choice for families and business alike. In addition to the  The Murrieta-Temecula MSA is home to a vibrant tourism and reduced cost of living and doing business away from the coast, I-15 resort industry that both draws and supports a high-income local and I-215 converge between Murrieta and Temecula, providing population, with household incomes averaging $100,000+ within 5 convenient travel north to and northern Riverside miles of the asset. County, and south to the Area.  Temecula alone is a significant tourist destination, with tourist FREESTANDING RETAIL MARKET SNAPSHOT draws including the Temecula Valley , Old Town Temecula, the Temecula Valley Polo Club, Pechanga Casino Resort South Riverside Submarket (named the “Best U.S. Casino” by USA Today), the Temecula Valley International Film Festival, and the Temecula Valley Balloon and Total Existing Square Feet 9,916,751 Wine Festival. Total SF Vacant 189,091  Outside of the area’s cities, there are countless opportunities for Vacancy Rate 1.9% world-class outdoor recreation including the Santa Rosa Plateau 12-Month Trailing Absorption (SF) 139,721 Ecological Reserve, Lake Skinner Recreational Area, and numerous championship golf courses. NNN Asking Rent PSF –Q1 ‘17 $19.50 Proprietary and confidential 9 Site Plan

Proprietary and confidential 10 Property Aerial - Immediate Surroundings

Magdas Coloradas Drive- 7,000 VPD

Winchester Road- 22,800 VPD

Future Clinton Keith Road

Proprietary and confidential 11 Property Aerial - New Development

Murrieta Marketplace

French Valley Crossing

Proprietary and confidential 12 Murrieta Marketplace – Project Plan

Proprietary and confidential 13 French Valley Marketplace – Project Plan

Proprietary and confidential 14 Property Aerial – Site Plan Overlays

Proprietary and confidential 15 New Development Highlights

 Murrieta Marketplace is a 50-acre shopping center currently under  French Valley Crossing is a brand new, planned community development at the Northwest corner of Winchester Road and the shopping center At the Southwest corner of Winchester Road and future Clinton Keith Road. The center is poised to service the fast- the future Clinton Keith Road. With over 100,000 people in the growing residential areas in the French Valley, an area currently local trade area, French Valley Crossings is at ground zero of a underserved by retail. grossly underserved trade area.

 Phase 1 alone will be home to a host of national retailers, anchored  French Valley Crossing will feature approximately 65,000 feet of by Home Depot and featuring Smart & Final, Panera, Dunkin retail space, with 8 planned buildings available both for ground Donuts, ARCO/ A.M. P.M, Jamba Juice, Taco Bell, Kahoots, Jersey lease or build-to-suit. With over 10,000 new homes planned or Mike’s, Verizon, Chipotle, Greatclips, and several regional and local under construction in the surrounding area, French Valley Crossing retailers. will bring much-desired retail to the residents of the South Riverside trade area. Clinton Keith Extension

 The Clinton Keith Extension Project is a major undertaking by Riverside County that will vastly improve traffic flow and mobility throughout South Riverside County, specifically between the Winchester and Murrieta communities. With 6 travel lanes and an anticipated completion in Spring 2018, Clinton Keith Road will become the primary East- West corridor in the Murrieta-Temecula area, replacing 2-lane Los Alamos/Briggs Road.

Proprietary and confidential 16 JLL Contacts

Adam Friedlander Vice President +1 424 901 8201 [email protected]

Matthew Berres Senior Vice President +1 424 901 8202 [email protected]

Scott Bailey Associate +1 424 901 8204 [email protected]

Quinn McCarthy Analyst +1 312 228 3363 [email protected] www.theinvestor.jll

© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.