La Verne Courtyard — LOS ANGELES COUNTY GROCERY ANCHORED SHOPPING CENTER —

OFFERING MEMORANDUM LA VERNE, La Verne Courtyard

OFFERING MEMORANDUM LA VERNE, CALIFORNIA

TABLE OF CONTENTS: Offering Summary 5 EXCLUSIVELY LISTED BY: Investment Highlights 6 Rent Roll 9 Bill Asher Executive Vice President Income & Expense 10 [email protected] 10-Year Cash Flow Analysis 11 949.585.7684 | BRE #01318078 10-Year Cash Flow Assumptions 12 Lease Expiration Analysis 13 Kevin Fryman Site Plan 16 Senior Vice President [email protected] Parcel Map 17 949.585.7674 | BRE #01321833 Aerial Overviews 19 Local Map 23 Ed Hanley Regional Map 24 President Tenant Profiles 27 [email protected] 949.585.7677 | BRE #01118569 Area Overview 31 Demographics 33 CONFIDENTIALITY DISCLAIMER LA VERNE COURTYARD

The information contained herein does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/ or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.

This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 3 FOOTHILL BOULEVARD OFFERING SUMMARY LA VERNE COURTYARD

LOCATION

La Verne Courtyard 2204-2278 Foothill Boulevard La Verne, CA 91750

OFFERING SUMMARY

Price: $24,800,000

Capitalization Rate: 5.25%

Net Rentable Area (NRA): 84,368

Price per Square Foot (NRA): $294

Year Built: 2000

Lot Size (Acres): 7.30

FINANCING SUMMARY

All Cash or Cash to New Financing

(Contact Hanley Investment Group for Further Details)

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 5 INVESTMENT HIGHLIGHTS LA VERNE COURTYARD

yy ALDI Grocery and Orchard Supply Hardware Anchored Shopping Center: οοALDI and Orchard Supply Hardware represent 85% of the current tenancy οοALDI is one of the world’s largest grocery chains with more than 10,000 markets worldwide; 1,500 in the United States οοALDI plans to open 650 new locations in the United States by 2018, largely in Southern California οοALDI is also the owner of Trader Joe’s and its 460 stores in the United States οοALDI executed a corporately guaranteed 15-year lease in 2014 with 10% increases every 5-years οοALDI spent significant money renovating their space, including installing new flooring, lighting, ceiling, partitions, refrigeration, security systems and renovating the exterior façade οοALDI is expanding into organic foods and products to better compete with Whole Foods οοOSH has operated at the center since it was built in 2000 οοOSH extended their lease until October 2020 in 2013 οοOrchard Supply Hardware was acquired by Lowe’s in 2013

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 6 LOCATION HIGHLIGHTS LA VERNE COURTYARD

yy 100% Occupied; 98% National/Regional Tenants: Including ALDI, Orchard Supply Hardware, Jersey Mike’s Subs, Pacific Dental, OneMain Financial, Pizza Hut, Rubio’s, and Nekter Juice Bar. yy Minimal Lease Rollover: All of the current tenants have either executed new leases or extended their existing leases since 2012. With these recent long-term commitments, 97% of the tenants’ leases are not scheduled to expire until at least 2020, including ALDI (2030), Orchard Supply Hardware (2020), Rubio’s (2025), Jersey Mike’s (2022), Pacific Dental (2022), and Nekter Juice Bar (2022). yy High Traffic Signalized Intersection: The subject property is located at the most well-travelled intersection in the city of La Verne with 42,500 cars per day. Other national tenants located at the intersection include Target, Kohl’s, Marshalls, Staples, Chipotle, El Pollo Loco, Jimmy John’s, McDonald’s, Panda Express, Panera Bread, Starbucks, Vitamin Shoppe and Wingstop. yy Easily Accessible from the I-210 Freeway: The subject property is ideally situated less than one half mile from the Fruit Street exit and just one mile from the Foothill Boulevard exit of the 210 Freeway. yy Infill Location; Affluent Demographics: The average household income within a 3-mile radius is approximately $95,000 with 290,000 people located within a 5-mile radius of the subject property.

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 7

RENT ROLL LA VERNE COURTYARD

RECENT LEASE LEASE RENT/ MONTHLY LEASE TENANT SUITE SF INCREASES OPTIONS LEASE START EXPIRATION SF RENT TYPE

Rubio's 2204 2,000 2015 05/12/00 05/31/25 $3.26 $6,520.00 6/20 - $7,180 NNN None

One 3-year @ Pizza Hut 2208 1,250 2015 12/04/01 12/03/18 $2.10 $2,620.23 None NNN $2,777

Nekter Juice Bar 2210 750 2016 TBD 5 Years $3.25 $2,437.50 3% Annually NNN TBD

Two 5-year @ 2% Annually Jersey Mike's Subs 2212 2,000 2012 05/19/12 05/31/22 $1.88 $3,753.89 NNN Fair Market Value with (June 2018) 2% Annual Increases

Pacific Dental 3% Annually Two 5-year @ 2216 4,000 2012 04/06/12 04/30/22 $2.49 $9,969.75 NNN (La Verne Dental Group) (May 2018) 3% Annual Increases

Two 5-year @ Orchard Supply Hardware 2244 46,747 2013 10/07/00 10/06/20 $0.97 $45,227.76 None NNN $48,620 $52,266 10% Every 5 Four 5-year @ ALDI 2268 24,600 2016 12/16/15 12/31/30 $1.31 $32,287.50 Years NNN 10% Every 5 Years (January 2021) 3% Annually One 5-year @ Zen Spa 2276 1,516 2014 03/12/14 03/31/19 $1.64 $2,492.90 NNN (March 2018) 3% Annual Increases

OneMain Financial 3% Annually 2278 1,505 2016 01/01/11 12/31/21 $2.63 $3,952.79 NNN None (CitiFinancial) (January 2018)

Verizon Cell Tower Cell NA 2016 TBD 5 Years - $2,100.00 3% Annually - TBD (In Negotiation) TOTAL SQUARE FOOTAGE: 84,368 TOTAL AVAILABLE: 0 0% Vacancy TOTAL OCCUPIED: 84,368 100% Occupancy

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 9 INCOME & EXPENSE LA VERNE COURTYARD

ANNUALIZED OPERATING DATA

June 2017 Scheduled Gross Income (SGI): $1,337,464 Expense Reimbursement: $457,595 Total Operating Income: $1,795,059 Total Operating Expenses: ($494,294) Net Operating Income (NOI): $1,300,765

OPERATING EXPENSES

Amount $/SF Taxes (1.11% of Purchase Price): $275,255 $3.26 Taxes (Special Assessments): $14,250 $0.17 Insurance: $22,282 $0.26 CAM: $129,008 $1.53 Management (4% of SGI): $53,499 $0.63

Total Expenses: $494,294 $5.86 Annually Per SF $0.49 Monthly Per SF

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 10 10-YEAR CASH FLOW ANALYSIS LA VERNE COURTYARD

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending May-2018 May-2019 May-2020 May-2021 May-2022 May-2023 May-2024 May-2025 May-2026 May-2027

Potential Gross Revenue Base Rental Revenue $1,337,464 $1,346,727 $1,356,469 $1,413,250 $1,462,376 $1,477,104 $1,482,173 $1,486,582 $1,548,467 $1,600,035 Absorption & Turnover Vacancy ($7,358) ($7,463) ($2,987) ($8,361) ($8,531)

Scheduled Base Rental Revenue $1,337,464 $1,346,727 $1,356,469 $1,413,250 $1,455,018 $1,469,641 $1,479,186 $1,486,582 $1,540,106 $1,591,504 CPI & Other Adjustment Revenue $883 $6,897 $13,407 $21,096 $27,087 Total Reimbursement Revenue $457,595 $468,347 $479,366 $490,777 $501,005 $512,725 $525,552 $538,867 $550,634 $563,312

Total Potential Gross Revenue $1,795,059 $1,815,074 $1,835,835 $1,904,027 $1,956,023 $1,983,249 $2,011,635 $2,038,856 $2,111,836 $2,181,903

Effective Gross Revenue $1,795,059 $1,815,074 $1,835,835 $1,904,027 $1,956,023 $1,983,249 $2,011,635 $2,038,856 $2,111,836 $2,181,903

Operating Expenses

Taxes General $275,255 $280,760 $286,376 $292,103 $297,945 $303,904 $309,982 $316,182 $322,505 $328,955 Special Assessment $14,250 $14,535 $14,826 $15,122 $15,425 $15,733 $16,048 $16,369 $16,696 $17,030

Total $289,505 $295,295 $301,202 $307,225 $313,370 $319,637 $326,030 $332,551 $339,201 $345,985

Insurance $22,282 $22,950 $23,639 $24,348 $25,079 $25,831 $26,606 $27,404 $28,226 $29,073 CAM $129,008 $132,878 $136,865 $140,971 $145,200 $149,556 $154,042 $158,664 $163,423 $168,326 Management (4% SGI) $53,499 $53,869 $54,259 $56,530 $58,201 $58,786 $59,167 $59,463 $61,604 $63,660

Total Operating Expenses $494,294 $504,992 $515,965 $529,074 $541,850 $553,810 $565,845 $578,082 $592,454 $607,044

Net Operating Income $1,300,765 $1,310,082 $1,319,870 $1,374,953 $1,414,173 $1,429,439 $1,445,790 $1,460,774 $1,519,382 $1,574,859

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 11 10-YEAR CASH FLOW ASSUMPTIONS LA VERNE COURTYARD

ASSUMPTIONS TO CASH FLOW

Analysis Period – Start Date: 6/1/2017 (1) Market Rents: $1.65 NNN - $3.30 NNN

Occupancy Level (Year 1): 100% Down Time 3 Months

Operating Expense Source: Actual Term: 5 Years

Tax Rate (Actual): 1.11% Tenant Improvements New/Renewal: $5 / $0

CPI Growth Rate (Projected): 3.00% Leasing Commissions New/Renewal: 5% / 0%

Management Fee: 4.00% Renewal Probability: 80% (2)

NOTES (1) Assumes that all tenants whose lease expires before the end of the first year of the analysis (May 31, 2018) will continue to pay rent at the same terms and conditions until that date. (2) Assumes that all tenants with fixed options will exercise them per the language in their options.

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 12 LEASE EXPIRATION ANALYSIS LA VERNE COURTYARD

EXPIRATION LEASE CUMULATIVE TENANT SUITE SF % OF TOTAL CUMULATIVE SF YEAR EXPIRATION % OF TOTAL 2017 None - - 0 0.00% Subtotal: 0 0.00% 0 0.00% 2018 Pizza Hut 2208 12/03/18 1,250 1.48% Subtotal: 1,250 1.48% 1,250 1.48% 2019 Zen Spa 2276 03/31/19 1,516 1.80% Subtotal: 1,516 1.80% 2,766 3.28% 2020 Orchard Supply Hardware 2244 10/06/20 46,747 55.41% Subtotal: 46,747 55.41% 49,513 58.69% 2021 Verizon Cell Tower Cell 03/01/21 0 0.00% OneMain Financial (CitiFinancial) 2278 12/31/21 1,505 1.78% Subtotal: 1,505 1.78% 51,768 61.36% 2022 Jersey Mike's Subs 2212 05/31/22 2,000 2.37% Pacific Dental (La Verne Dental Group) 2216 04/30/22 4,000 4.74% Nekter Juice Bar 2210 5 Years 750 Subtotal: 6,750 8.00% 57,768 68.47% 2023 None - - 0 0.00% Subtotal: 0 0.00% 57,768 68.47% 2024 None - - 0 0.00% Subtotal: 0 0.00% 57,768 68.47% 2025 Rubio's 2204 05/31/25 2,000 2.37% Subtotal: 2,000 2.37% 59,768 70.84% 2026 None - - 0 0.00% Subtotal: 0 0.00% 59,768 70.84% 2027 None - - 0 0.00% Subtotal: 0 0.00% 59,768 70.84% 2028 None - - 0 0.00% Subtotal: 0 0.00% 59,768 70.84% 2029 None - - 0 0.00% Subtotal: 0 0.00% 59,768 70.84% 2030 ALDI 2268 12/31/30 24,600 29.16% Subtotal: 24,600 29.16% 84,368 100.00% 2031 None - - 0 0.00% Subtotal: 0 0.00% 84,368 100.00% Available None - - 0 0.00% Subtotal: 0 0.00% 84,368 100.00%

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 13 LEASE EXPIRATION ANALYSIS LA VERNE COURTYARD

Minimal Lease Rollover: All of the current tenants have either executed new leases or extended their existing lease since 2011. With these recent long-term commitments, 97% of the tenant’s leases are not scheduled to expire until at least 2020, including ALDI (2030), Orchard Supply Hardware (2020), Rubio’s (2025), Jersey Mike’s (2022), Pacific Dental (2022), and Nekter Juice Bar (2022).

Annual Square Feet Expiring

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Cumulative Square Feet Expiring

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 14

SITE PLAN LA VERNE COURTYARD

FOOTHILL BLVD

SUITE TENANTS SF SIGN 2204 Rubio's 2,000 2204 NAP 2208 Pizza Hut 1,250 2208 2210 Nekter Juice Bar 750 2210 HITE AVEUE 2212 Jersey Mike's Subs 2,000 2212 2216 Pacific Dental Group 4,000 2244 Orchard Supply Hardware 46,747 2216 2268 ALDI 24,600 2276 Zen Spa 1,516 2278 OneMain Financial 1,505

SIGN

OSH GARDEN CENTER NOT A PART 2276 2244 2278 SUBJECT PROPERTY 2268

DURARD A

N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 16 PARCEL MAP LA VERNE COURTYARD

FOOTHILL BLVD SIGN

HITE AVEUE

PROPERTY PARCEL

APN: 8375-024-021

SIGN

DURARD A N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 17

AERIAL OVERVIEW LA VERNE COURTYARD

BONITA HIGH SCHOOL - 2,000 STUDENTS-

SUBJECT PROPERTY

WHITE AVENUE

FOOTHILL BOULEVARD 42,500 CPD - INTERSECTION -

N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 19 AERIAL OVERVIEW LA VERNE COURTYARD

BONITA HIGH SCHOOL - 2,000 STUDENTS-

WHITE AVENUE SUBJECT PROPERTY

FOOTHILL BOULEVARD 42,500 CPD - INTERSECTION -

0.5 MILES N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 20 AERIAL OVERVIEW LA VERNE COURTYARD

CLAREMONT POMONA - POPULATION 36,000 - - POPULATION 150,800 -

CASA COLINA HOSPITAL - 100+ BEDS -

FOOTHILL BOULEVARD - 8,600 STUDENTS-

SUBJECT PROPERTY

42,500 CPD BONITA HIGH SCHOOL - INTERSECTION - - 2,000 STUDENTS-

LUTHERAN HIGH SCHOOL

FRUIT STREET N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 21 AERIAL OVERVIEW LA VERNE COURTYARD

GLENDORA - POPULATION 50,400 -

SAN DIMAS - POPULATION 35,000 - LA VERNE - POPULATION 31,300 - 142,000 CPD METROPOLITAN WATER DISTRICT

SUBJECT PROPERTY

FRUIT STREET - 8,600 STUDENTS-

BONITA HIGH SCHOOL - 2,000 STUDENTS- 2016 DEMOGRAPHICS FOOTHILL BOULEVARD Population: One Mile Radius 19,515 Three Mile Radius 105,613 Five Mile Radius 289,723

Household Income: One Mile Radius $81,589 Three Mile Radius $94,875 Five Mile Radius $86,728

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 22 LOCAL MAP LA VERNE COURTYARD

SUBJECT PROPERTY

N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 23 REGIONAL MAP LA VERNE COURTYARD

SUBJECT PROPERTY

N

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 24

TENANT PROFILE LA VERNE COURTYARD

Aldi Opens In The Southland: What You Need To Know

LOS ANGELES TIMES - MARCH 25, 2016 - By Shan Li - Aldi, a German discount grocer, opened its first eight stores in Southern California this week. By the end of the year, it plans to have 45 stores in the region. So what is Aldi? Aldi is a supermarket chain based in Germany with about 10,000 stores in 18 countries. In the U.S., the chain operates about 1,500 stores. Who founded the chain? Two brothers, Karl and Theo Albrecht, founded Aldi in 1946 after taking over the family grocery store. The Albrechts also control Trader Joe’s, based in Monrovia. BRO BRAWL: In 1960, the brothers had a falling out over selling cigarettes and split their empire in two. In the U.S., it is Aldi Sud which operates as Aldi, while Aldi Nord runs Trader Joe’s. Aldi and Trader Joe’s have some similarities -- both have smaller footprints compared to traditional supermarkets, and carry largely store-brand products. THE TRADEOFF: Aldi is known for quality products at deep discounts, with many items priced 20% to 50% below rivals. However, those savings come at a price. Shoppers have to bag their own groceries. They must also pony up a quarter deposit to use a shopping cart; the deposit is given back when the cart is returned (this cuts down on theft, and also reduces the amount of workers needed to clear parking lots). Best-selling products are often put out directly on shipping pallets, instead of stacked on shelves. RIVALS: For now, its competitors are primarily dollar stores, Wal-Mart and nearby supermarkets. Long-term, Aldi could have far-reaching effects on the Southland grocery market if it keeps expanding. CHALLENGES: Aldi is facing a fiercely competitive region where people already have their favorite grocery stores. Southland chains such as Gelson’s and Bristol Farms have loyal fans; many locals also frequent the dozens of farmer’s markets that dot the region. This is the place that ultimately spelled the end of Haggen and Fresh & Easy. Both supermarket chains closed stores last year after underestimating how difficult it would be to win over Southland shoppers. WHERE ARE THE FIRST EIGHT SOUTHLAND STORES: Palm Springs, San Bernardino, Yucaipa, Lake Elsinore, La Quinta, Fontana, Beaumont and Moreno Valley. FIRST TAKE FROM SHOPPERS: On Thursday, some customers at the Aldi store in Moreno Valley were thrilled by the low prices, while others grumbled about having to bag their own groceries or the lack of name-brand products. Jessica Herrera, 28, said she was pleased by the variety of gluten-free snacks at good prices. Aldi might become her go-to spot for picking up a quick meal or last-minute ingredients, she said. “It’s very affordable,” the Moreno Valley resident said. “It’s a place for convenience.” Gnett Johnson, a homemaker from Beaumont, said the low prices were impressive. But she said Aldi couldn’t replace a big supermarket like Vons or Ralphs. “You still have to go to Vons to get brands like Kraft,” she said. “It doesn’t have a deli section where you get your meats cut.”

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 26 TENANT PROFILE LA VERNE COURTYARD

ALDI is one of the world’s biggest grocery chains, running more than 10,000 stores worldwide. The secret behind the company’s success is offering deeply discounted prices while stocking just 2,000 items in its stores – a typical grocery store has 45,000. ALDI (short for “Albrecht Discounts”) builds simple warehouses, employs a modest staff, and carries mostly (95%) private-label items, displaying them on pallets rather than shelves. ALDI has nearly 1,500 stores in 30-plus US states, but Germany, where ALDI has about 4,300 stores, accounts for nearly two-thirds of its sales. The company serves more than 30 million customers each month and employs over 20,000 people in its U.S. stores.

ALDI opened its first store in America in Iowa in 1976 and has been growing steadily ever since. Over the past decade, the company has nearly doubled in size. The company will open 45 locations in Southern California by fall of 2016. This expansion is part of ALDI’s five- year plan to open 650 locations and bring its total number of U.S. stores to roughly 2,000. ALDI’s entry into Southern California will broaden consumer choices and employ more than 1,100 people. The Southern California regional warehouse will be located in Moreno Valley. ALDI is also the owner of Trader Joe’s and its 460 stores in the U.S, which generates approximately $10 billion in revenue on an annual basis. In total, ALDI does more than $60 billion in worldwide revenues each year.

Company Type: Private Locations: 1,500 United States (10,000+ worldwide) Website: www.aldi.us

REPRESENTATIVE PHOTO

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 27 TENANT PROFILE LA VERNE COURTYARD

Lowe’s Companies, Inc. (NYSE: LOW; S&P: A-) is the world’s second largest home improvement retailer, founded in 1946 and based in Mooresville, NC. Traded on the New York Stock Exchange since 1961, Lowe’s has grown from a small hardware store to a home improvement behemoth. Lowe’s serves more than 16 million customers each week and most recently landed at number 45 on the 2015 Fortune 500 list. The company operates a total 1,840 stores representing 201 million square feet of retail selling space. The locations comprise 1,793 stores across 50 US states, 37 stores in Canada, and 10 stores in Mexico, along with owning and operating more than 30 regional distribution centers in the United States. In 2015, Lowe’s reported sales of $56.2 billion and has upwards of 265,000 employees.

In August of 2013, Lowe’s acquired the majority of assets of Orchard Supply Hardware, including 72 Orchard stores, for approximately $205 million in cash, plus the assumption of Orchard Supply’s debt. The acquisition expanded Lowe’s presence in California and added and a natural complement of smaller-format neighborhood stores to its big-box portfolio. Orchard Supply has continued to operate as a separate, standalone business.

Orchard Supply Hardware began 1931 in San Jose, California. The company has a total of 78 locations up and down the west coast which are renowned for their upscale and innovative layouts. Under the new ownership of Lowe’s, Orchard Supply is currently in the process of growing to a 100-store location retailer by the end of 2017. Orchard Supply recently opened its first location in the city of San Francisco and has also recently opened a store in the population dense Mid-Wilshire district of Los Angeles. Both of these stores serve the purpose of assisting Lowe’s in achieving its goal to penetrate urban regions and markets through the use of smaller-format stores. In 2015, Orchard Supply was named “Retailer of the Year” by Hardware + Building Supply Dealer magazine.

Company Type: Public (NYSE: LOW; S&P: A-) Locations: 1,840 (78 Orchard Supply Hardware locations) Employees: 265,000 2015 Revenue: $562 Billion Website: www.lowes.com | www.osh.com

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 28 TENANT PROFILES LA VERNE COURTYARD

Pizza Hut is the world’s largest pizza company with more than 6,000 restaurants in the United States and 5,139 restaurants in 94 other countries and territories around the world. In 2014, the company received the top score in Customer Satisfaction among limited-service restaurant chains from the American Customer Satisfaction Index. The Pizza Hut brand is owned and operated by its parent, Yum! Brands, Inc. (NYSE: YUM, S&P:BBB). Yum! is the world’s largest restaurant company with more than 37,000 locations in 117 countries and more than 1 million associates. The company reported most recent annual revenue of $13.2 billion.

www.pizzahut.com | Company Type: Public (NASDAQ: YUM) | Locations: 11,000+

Jersey Mike’s Subs is a submarine sandwich shop franchisor with more than 1,500 restaurants open and under development nationwide. The company was founded as Mike’s Subs in 1956 in Point Pleasant, New Jersey – a centrally-located town on the legendary Jersey shore. The company began franchising its brand in 1987 and changed its name to Jersey Mike’s Subs to reflect the authenticity of where the authentic submarine sandwich was born. In 2015, for the second year in a row, Jersey Mike’s was named the #1 fastest growing chain in the Nation’s Restaurant News Top 100, and continues to win best sub awards in virtually every market it enters.

www.jerseymikes.com | Company Type: Private | Locations: 1,500+

OneMain Financial is based in Baltimore and provides personal loans and one-on-one, local service from more than 1,100 branches nationwide. The company was founded by Alexander Duncan as Commercial Credit in 1912. By the mid-1990s, OneMain’s family of companies included included Primerica Financial Services (life insurance), Smith Barney (investments), and the Travelers companies (life, annuity and property/casualty insurance). In 1998, Travelers Group, OneMain’s parent company, merged with Citicorp to create Citigroup, a global financial services company serving 20 million customers worldwide. In 1999, Commercial Credit, having grown to 1,200 branches, changed its name to CitiFinancial. In 2011, CitiFinancial became OneMain Financial. Today, OneMain Financial continues to originate and service secured and unsecured personal loans and offer voluntary credit insurance and related products through its branch network and its centralized operations.

www.onemainfinancial.com | Company Type: Public (NYSE: OMF) | Locations: 1,100+

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 29 TENANT PROFILES LA VERNE COURTYARD

La Verne Dental Group is a family dental group that offers comprehensive dental services from teeth whitening to dental crowns. The group of practitioners represents one of more than 300 such practices within the Pacific Dental Services Network throughout the central and western United States. Pacific Dental utilizes a team of nearly 4,000 members and affiliated dentists in order to provide the highest level patient service and productivity. Founded in 1994, the company grew steadily throughout its first decade of existence before growing at a rapid rate of nearly 40% each year over the past 5 years or so. In 2015, Pacific Dental landed on Inc. magazine’s annual 500/5000 list for the 9th consecutive year.

www.lavernedentalgroup.com | Company Type: Private | Locations: 300+

Rubio’s first opened in 1983, in the San Diego neighborhood of Mission Bay. The award-winning restaurant was recently named the number one Mexican chain on Consumer Reports’ latest survey as well as ranked as one of Fast Casual’s ‘Top 50 Movers and Shakers’. Rubio’s is headquartered in Carlsbad, Calif., has over 4,000 employees and operates 193 restaurants in California, Arizona, Colorado, Utah and Nevada. The company announced in November of 2015 that it has entered into an agreement with Ruby Tuesday to acquire eight restaurant locations in Florida currently operated as Lime Fresh Mexican Grills. Following closing of the transaction, Rubio’s will convert these to new Rubio’s restaurants, marking the California-based company’s first expansion to the East Coast.

www.rubios.com | Company Type: Private | Locations: 193

Nekter Juice Bar serves fresh juices and smoothies packed with robust greens and smoothies. Its core offerings are joined by a wide assortment of equally nutritious snacks, acai bowls, bottled Nekter Grab n’ Gos, and the popular 1,2,3 & 5-day Nekter Cleanse Program – 15lbs of cold pressed fruits and vegetables packed into a day’s cleanse. The company has more than 50 locations, made up of both franchise- and company-owned stores, spread throughout the western states of Arizona, Texas, Colorado, and California. .

www.nekterjuicebar.com | Company Type: Private | Locations: 50

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 30 AREA OVERVIEW LA VERNE COURTYARD

is a city of more than 33,000 residents and a well-balanced community. The city is a suburb 30 miles east of Los Angeles with Foothill Boulevard, a part of RouteLa 66, Verne being the major east-west corridor connecting La Verne to the Inland Empire in the east and to San Gabriel and Los Angeles in the west. Foothill Boulevard is the commercial corridor in La Verne and is home to multiple shopping centers, national and regional tenants, restaurants, a major Cineplex and home to many of La Verne’s local businesses. La Verne is served by the 10, 210, and 57 freeways, with the Route 30 freeway ending in La Verne. La Verne’s proximity to major freeways has sparked the development of large trucking centers in the area. These centers bring thousands of people into the city every day. The Ontario International Airport, located less than 20 minutes away from La Verne, is a full service airport with commercial jet service to major US cities. In 2015, the airport serviced over 4 million passengers, and Southwest Airlines was the predominate airline. La Verne residents also take advantage of the nearby Metrolink station in Pomona. Commuters can travel 30 miles to downtown Los Angeles on the new metro line. The Brackett Airport, located in La Verne, is one of the nation’s busiest general aviation airports providing private, charter, corporate and recreational air services. Due to an influx of new upscale housing during the past two decades, the majority of La Verne residents fall between the ages of 20 and 50 and have a college education. With over 70% of the population comprised of families, the community has remained tight-knit and focused on the promotion of small town virtues and quality of life. HERITAGE PARK La Verne is home to 19 parks, two golf-courses, a multi-purpose sports complex, and myriad of recreational trails. This affluent and engaged population provides a stable consumer market with a 2015 unemployment rate under 5%. The residents have proven willing and able to financially support a productive and safe community. The city is also a recognized leader in municipal strategic planning. Through the city’s strategic visioning program, La Verne has launched creative and effective programs to reduce public expenditures, such as a four-day work week, funding of public safety and recreation programs, and other cost-effective service improvements. La Verne is home to over 2,800 businesses, and is thoughtfully laid out to maintain and enhance commercial activity. Modern amenities and a stable infrastructure complement La Verne’s small town charm, creating an ideal environment in which to live and do business.

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 31 AREA OVERVIEW LA VERNE COURTYARD

HIGHER EDUCATION Founded in 1891, the sits on a 66 acre campus at the south end of the city. The University is composed of four colleges and was ranked by U.S. News as one of the top 60 universities in the west in 2015. With more than 8,500 students, the University is a focal point in the community. La Verne currently hosts 2,713 main campus traditional undergraduates, as well as 2,163 main campus graduate, doctoral and law students. The school has more than 50,000 alumni around the world representing a host of professions. In addition, located within two miles of the city are some of the most prestigious colleges in the country. The Prestigous Claremont Colleges feature a cluster of autonomous colleges, including Harvey Mudd College, Pomona College, Pitzer College, Scripps College, Keck Graduate School and Claremont POMONA FAIRPLEX Graduate University. Each excels in a particular academic niche with its own campus, students and faculty, and distinctive style. With over 6,000 students, about 500 faculty members, and 2,800 staff members, the campus of the Claremont Colleges generate an endless variety of intellectual, cultural, and social activities. The assets of The Claremont Colleges total over $950 million, including substantial endowments in all of the colleges, with over 175 buildings on 550 acres of distinctive campus grounds.

POMONA VALLEY FAIRPLEX The Pomona Valley Fairplex is home to the Los Angeles County Fair, the largest county fair in the world. The nearly 100-year old annual celebration draws upwards of 1.5 million attendees. Each year, the fair creates more than 1,200 seasonal jobs to manage and maintain this massive month-long event. UNIVERSITY OF LA VERNE The Fairplex campus is also home to the NHRA Motorsports Museum and Auto Club Raceway at Pomona. The historic Auto Club Raceway at Pomona is oldest venue on the NHRA Full Throttle Drag Racing Series circuit. The venue has hosted the NHRA’s season opener since 1961 and the season closer, the Automobile Club of Southern California NHRA Finals, since 1984. These two events have helped shaped the Pomona Raceway’s identity as the most famous drag strip in North America. The facility has a seating capacity of 40,000 spectators. Beginning in 1968 and every year thereafter, the L.A. International Wine & Spirits Competition takes place at the Pomona Valley Fairplex. The competition is widely considered to be one of the most prestigious events of its kind in the United States, showcasing the finest vintages from America and countries throughout the world, featuring more than 3,000 wine entries from premiere wineries and a judging panel that has grown to 75 of the leading international wine experts from across the globe.

CLAREMONT COLLEGES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 32 DEMOGRAPHICS LA VERNE COURTYARD

1-Mile 3-Mile 5-Mile Population 2021 Projection 20,055 106,663 294,332 2016 Estimate 19,515 105,613 289,723 2010 Census 18,222 99,791 275,125 2000 Census 18,802 101,297 273,752 Growth 2010-2016 7.10% 5.83% 5.31% Growth 2016-2021 2.77% 0.99% 1.59%

Households 2021 Projection 7,707 37,429 89,875 2016 Estimate 7,469 36,915 88,033 2010 Census 6,912 34,580 83,019 2000 Census 7,202 34,373 81,923 Growth 2010-2016 8.06% 6.75% 6.04% Growth 2016-2021 3.19% 1.39% 2.09%

2016 Est. Population by Single-Classification Race White Alone 13,711 68,268 169,488 Black or African American Alone 964 6,728 15,761 American Indian and Alaska Native Alone 174 908 2,781 Asian Alone 1,571 9,621 27,089 Native Hawaiian and Other Pacific Islander Alone 43 201 464 Some Other Race Alone 2,012 14,437 59,625 Two or More Races 973 5,149 13,784

2016 Est. Pupulation by Ethnicity (Hispanic or Latino) Hispanic or Latino 6,567 41,920 154,436 Not Hispanic or Latino 12,948 63,693 135,287

2016 Est. Average Household Income $81,589 $94,875 $86,728

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 33