MULTI-TENANT COASTAL RETAIL OPPORTUNITY 2 AFFILIATED BUSINESS DISCLOSURE CONFIDENTIALITY AGREEMENT CBRE, Inc

700-714 MARINA DRIVE SEAL BEACH, CA 90740

MULTI-TENANT COASTAL RETAIL OPPORTUNITY 2 AFFILIATED BUSINESS DISCLOSURE CONFIDENTIALITY AGREEMENT CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but Memorandum solely for your limited use and benefit in determining whether you desire to express not limited to, brokerage services, property and facilities management, valuation, investment fund further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) management and development. At times different Affiliates, including CBRE Global Investors, Inc. or you will not disclose it or its contents to any third party without the prior written authorization of the Trammell Crow Company, may have or represent clients who have competing interests in the same owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum transaction. For example, Affiliates or their clients may have or express an interest in the property in any manner detrimental to the Owner or CBRE, Inc. described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such return it to CBRE, Inc. Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

DISCLAIMER This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

3 CONTENTS I. INVESTMENT OVERVIEW II. INVESTMENT HIGHLIGHTS III. CITY OF SEAL BEACH & ORANGE COUNTY IV. DEMOGRAPHICS V. SITE & IMPROVEMENTS VI. TENANT OVERVIEW 700-714 MARINA DRIVE SEAL BEACH, CA 90740 VII. FINANCIAL OVERVIEW

Investment Advisors:

ARTHUR R. FLORES NATHAN HOLTHOUSER JAMES LEHIGH SHAENA CUSHMAN Lic. 01423821 Lic. 01838616 Lic. 01850077 Lic. 01980031 T +1 949 725 8625 T +1 949 809 3660 T +1 949 809 3662 T +1 949 725 8435 [email protected] [email protected] [email protected] [email protected]

4 700-714 MARINA DRIVE SEAL BEACH, CA 90740

INVESTMENT OVERVIEW

THE GARDEN | INVESTMENT OVERVIEW 5 INVESTMENT SUMMARY

Offering Price Cap Rate NOI Total Building Area Total Land Area Ownership Type $3,500,000 4.5% $157,800 ±4,019 SF ±13,939 SF FEE SIMPLE INVESTMENT HIGHLIGHTS GENERATIONAL, MULTI-TENANT RETAIL OPPORTUNITY Generational Coastal Asset - Rare, multi-tenant retail opportunity in Seal Beach; this coastal bedroom community is in the western corner of Orange STRONG REAL ESTATE FUNDAMENTALS County, nestled between Long Beach and Sunset Beach Oversized Lot – The Garden property sits on ±13,939 SF of land and has a private All in-place tenants are subject to 1-year leases, with no options, and can be gravel parking lot in the rear which could be further utilized to allow for more renewed or replaced with higher rent paying tenants parking intensive commercial uses like restaurant and/or medical uses at the property Below Market Leases – In-place leases average just $3.27/SF NNN which are well below rental rates for similar retail properties in the trade area The Garden is located at the signalized intersection of Pacific Coast Highway and Marina Drive, with unobstructed views from Pacific Coast Highway and visible to Rare Investment Opportunity - Few retail properties of this size and visibility over 42,000 cars that travel through this intersection every day ever come to market in Seal Beach Pacific Coast Highway Frontage – The Garden boasts over 120 linear feet of High Income, Orange County Demographics frontage along both Marina Drive and Pacific Coast Highway • More than 10,600 people within a 1-mile radius with an Average This Seal Beach asset is a mere 0.4 miles from the beach, which is an approximate Household Income exceeding $150,600 per year 8-minute walk to the sand. The Garden is ranked “very walkable” with a Walk Score of 89. • More than 70,000 people within a 3-mile radius with an Average Household Income exceeding $128,100 per year • More than 305,900 people within a 5-mile radius with an Average Household Income exceeding $107,300 per year

THE GARDEN | INVESTMENT OVERVIEW 6 MAIN STREET 2ND & PCH

LONG BEACH LONG BEACH STATE

Marina Drive - 4,200 CPD

700-714 MARINA DRIVE SEAL BEACH, CA 90740

Pacific Coast Hwy - 38,500 CPD

Main Street - 8,900 CPD

THE GARDEN | INVESTMENT OVERVIEW 7 700-714 MARINA DRIVE SEAL BEACH, CA 90740

CITY OF SEAL BEACH & ORANGE COUNTY

THE GARDEN | CITY OF SEAL BEACH & ORANGE COUNTY 8 Economy SEAL BEACH The City is the home of Boeing Company Integrated Defense System international headquarters, the U.S Naval Weapons Station, the first Leisure World Retirement Community and the 1,000 acre Seal Beach National Wildlife Serving as the northern gateway to Orange County’s 42 miles of coastline, this Refuge. The City’s one and a half mile beaches and the pier attracts more than quiet, down-to-earth community is the perfect seaside destination to call home, 2 million visitors annually which is extremely beneficial for the local economy. visit, or locate your business. Seal Beach is named after the seals that once Seal Beach has local beach store fronts such as Main Street which include frequented its beachfront. Today, the city is filled with quaint neighborhoods several fine dining retail establishments. Many community events take place in and hometown appeal. Seal Beach is in the westernmost corner of Orange the city which visitors and residents enjoy and participate in. The population County. To the northwest, just across the border with Los Angeles County, lies is on the wealthy side, with 38% of population making more than $100,000 in the city of Long Beach and the adjacent San Pedro Bay. To the southeast are annual income and $110,611 average annual income. Huntington Harbor, a neighborhood of Huntington Beach, and Sunset Beach, also part of Huntington Beach. To the east lie the city of Westminster and the The city has 1.2M sq. ft. of retail inventory with 2.1% vacancy rate and 12 major neighborhood of West Garden Grove, part of the city of Garden Grove. To retail centers, as of December 2019. The Shops at Rossmoor, Old Ranch the north lie the unincorporated community of Rossmoor and the city of Los Towne Center, and Seal Beach Center are major shopping attractions within Alamitos. Majority of the city’s acreage is devoted to the Naval Weapons Station the city limits and some famous super regional malls close to the city include Seal Beach military base. Lakewood Center, Westminster Mall, Los Cerritos Center, Bella Terra and The Pike Outlets, attracting people to shop and dine in the city proximity. Some major retailers in the city include Kohl’s, Ralphs, Affliction Clothing, Pavilions, Marshalls, Sprouts Farmer’s Market, Bed Bath and Beyond, HomeGoods, TOP EMPLOYERS IN CITY (2018) Burlington Stores, Dollar Tree, Anytime Fitness, CVS Pharmacy, etc. Rank Employer # of Employees 1 Boeing 1,000 2 MagTek 250 3 Siemens Medical Solutions 200 4 Target 200 5 First Team Real Estate 150 6 Farmers & Merchants Bank of LB 150 7 Bixby Ranch Company 135 8 Kohl’s 121 9 Spaghettini Grill and Lounge 105 10 Albertson’s 100

THE GARDEN | CITY OF SEAL BEACH & ORANGE COUNTY 9 SEAL BEACH

Education Tourism Seal Beach is part of the Los Alamitos Unified School District. There are also a The second longest wooden pier in California (the longest is in Oceanside) number of junior colleges close to Seal Beach which include, Cypress College, is located in Seal Beach and is used for fishing and sightseeing. The Lions Long Beach City College, Coastline Community College, Golden West College, Club Pancake Breakfast in April and its Fish Fry (started in 1943) in July are and California State University, Long Beach (CSULB) which is the nearest two of the biggest events in Seal Beach. There has been a Rough Water public university to the City of Seal Beach. Swim the same weekend as the Fish Fry since the 1960s. The Seal Beach Chamber of Commerce sponsors many events, including: a Classic Car Show in April, a Summer Concert series in July and August, the Christmas Parade Airports in December along with Santa and the Reindeer. Also in the fall is the Kite Seal Beach is served by both the John Wayne (Orange County) Airport (SNA) Festival in September. and Los Angeles International Airport (LAX). Seal Beach is 22 miles north of On Electric Avenue where the railroad tracks used to run, there is the Red Car SNA and 27 miles south of LAX. Museum which features a restored Pacific Electric Railway Red Car. The Red Car trolley tracks once passed through Seal Beach going south to the Balboa Peninsula in Newport Beach. Going north into Long Beach a rider could then take the Red Cars through much of Los Angeles County. The Seal Beach National Wildlife Refuge is located on part of the Naval Weapons Station Seal Beach. Much of the refuge’s 911 acres (3.69 km2) is the remnant of the saltwater marsh in the Anaheim Bay estuary (the rest of the marsh became the bayside community of Huntington Harbour, which is part of Huntington Beach). With the loss and degradation of coastal wetlands in California, the remaining habitat, including the Bolsa Chica Ecological Reserve in Huntington Beach and Upper Newport Bay in Newport Beach, has become much more important for migrating and wintering shorebirds, waterfowl, and seabirds. Although the refuge is a great place for birdwatching, because it is part of the weapons station, access is limited and usually restricted to once-a-month tours.

THE GARDEN | CITY OF SEAL BEACH & ORANGE COUNTY 10 REGIONAL MAP

THE GARDEN | CITY OF SEAL BEACH & ORANGE COUNTY 11 ORANGE COUNTY Economy Ranked in Forbes magazine’s top 50 economically thriving metro areas, Overview Orange County enjoys lower business costs, a highly qualified workforce, Orange County, nicknamed the OC, is a county in the south west region of and one of the lowest unemployment rates in the country. As one of the California. Positioned between the Los Angeles and San Diego metro areas, largest populated counties in California and the United States, Orange Orange County is the smallest county in Southern California by square footage County’s is one of the most successful and highly compensated with but is the third most populated county in the state and the six most in the nation. residents posting an average household income above both the State of Whereas most population centers in the United States tend to be identified by a California and the nation at almost $100,000 annually. Attraction and major city, there is no defined urban center in Orange County. With its placement retention are two of the key reasons for the County’s economic success. between four other major counties it is sometimes considered to be part of both As home to some of the world’s leading companies and 17 colleges and the Los Angeles and San Diego metropolitan areas but is also equally close to the universities, Orange County offers one of the best educated work forces in Inland Empire’s Riverside-San Bernardino metro region. the world, and an independent attitude.

Orange County is made up of 34 cities and features 42 miles of pristine coastline, two major harbors, vast wilderness parks, top-rated attractions, MAJOR EMPLOYERS IN ORANGE COUNTY world-class shopping, multiple professional sports teams and a wide range Company # of Employees Business Type of other activities. Orange County is home to 3.2 million residents and draws Walt Disney 25,000 Entertainment, Resort & Hotel more than 43 million visitors each year. Home to Disneyland, Knott’s Berry Farm, University of California Irvine 22,253 Education and the largest convention center in the west, Anaheim Convention Center, County of Orange 18,035 Government the region attracts tourists from all over the world. Orange County’s extensive St. Joseph Health System Medical coastline offers multiple seafaring activities including world class boating, 12,062 snorkeling, scuba diving, and fishing. The county’s many marina’s line the coast Boeing Co 6,890 Defense Systems offering boat cruises, fishing trips, whale watching and charter services year- Kaiser 6,040 Medical round. With a thriving business economy as well as a highly educated work Bank of America Corp 6,000 Financial force, the county is consistently ranked nationally as one of the most desirable Walmart 6,000 Retailer places to live and work, offering its residents a higher quality of life. Orange Memorial Care Health System, Medical County is primarily a suburban community with bits of urban areas that houses 5,635 a significantly younger and affluent population. High performing schools and Target Corporation 5,400 Retailer low crime rate also aid in making Orange County a great place for younger couples and families to find work and call home.

THE GARDEN | CITY OF SEAL BEACH & ORANGE COUNTY 12 Pacific Coast Hwy - 38,500 CPD THE GARDEN |CITY OFSEAL BEACH & ORANGECOUNTY

Marina Drive - 4,200 CPD

Bolsa Avenue

Main Street - 8,900 CPD CPD 8,900 8,900 - - Street Street Main Main SEAL BEACH, CA 90740 700-714 MARINADRIVE MAIN STREET MAIN 13 700-714 MARINA DRIVE SEAL BEACH, CA 90740

DEMOGRAPHICS

THE GARDEN | DEMOGRAPHICS 14 DEMOGRAPHICS

1 Mile 3 Miles 5 Miles POPULATION 2019 Population - Current Year Estimate 10,600 70,080 305,944 2024 Population - Five Year Projection 10,840 71,270 311,185 PLACE OF WORK 2019 Businesses 899 2,841 11,813 2019 Employees 9,471 28,628 111,156 GENERATIONS Generation Alpha (Born 2017 or Later) 260 2.5% 1,287 1.8% 9,060 3.0% Generation Z (Born 1999-2016) 1,621 15.3% 9,514 13.6% 58,233 19.0% Millennials (Born 1981-1998) 2,570 24.3% 15,413 22.0% 82,686 27.0% Generation X (Born 1965-1980) 2,146 20.3% 12,750 18.2% 62,272 20.4% Baby Boomers (Born 1946-1964) 3,088 29.1% 20,008 28.6% 67,171 22.0% Greatest Generations (Born 1945 or Earlier) 914 8.6% 11,109 15.9% 26,521 8.7% RACE AND ETHNICITY White 8,635 81.5% 55,664 79.4% 191,381 62.6% Black or African American 179 1.7% 1,598 2.3% 18,743 6.1% Asian 809 7.6% 6,741 9.6% 40,706 13.3% Two or More Races 560 5.3% 3,355 4.8% 17,996 5.9% Hispanic 1,394 13.2% 9,407 13.4% 82,303 26.9% White Non-Hispanic 7,752 73.1% 49,695 70.9% 152,049 49.7% EDUCATION 9-12th Grade - No Diploma 202 2.5% 1,287 2.3% 9,149 4.1% High School Diploma 748 9.1% 5,543 9.8% 29,928 13.5% GED or Alternative Credential 86 1.0% 360 0.6% 3,044 1.4% Some College - No Degree 1,873 22.8% 11,320 20.1% 50,150 22.7% Associate`s Degree 617 7.5% 4,733 8.4% 18,029 8.2% Bachelor`s Degree 2,827 34.4% 18,202 32.3% 59,374 26.9% Graduate or Professional Degree 1,809 22.0% 13,547 24.1% 37,341 16.9% HOUSEHOLD INCOME 2019 Households 5,101 35,168 126,095 2019 Average Household Income $150,649 $128,151 $107,394 2024 Average Household Income $174,234 $148,438 $125,598 2019 Average Value of Owner Occ. Housing Units $1,163,370 $892,708 $783,696 DAYTIME POPULATION 2019 Daytime Population 14,678 67,003 273,482 Daytime Workers 10,412 70.9% 33,089 49.4% 123,887 45.3% Daytime Residents 4,266 29.1% 33,914 50.6% 149,595 54.7%

THE GARDEN | DEMOGRAPHICS 15 HUNTINGTON BEACH PACIFIC OCEAN

MAIN STREET

Main Street - 8,900 CPD

700-714 MARINA DRIVE SEAL BEACH, CA 90740

Pacific Coast Hwy - 38,500 CPD Marina Drive - 4,200 CPD

THE GARDEN | DEMOGRAPHICS 16 700-714 MARINA DRIVE SEAL BEACH, CA 90740

SITE + IMPROVEMENTS

THE GARDEN | SITE + IMPROVEMENTS 17 SITE + IMPROVEMENTS

LOCATION 700 – 714 Marina Drive, Seal Beach, CA 90740

SITE Situated on one (1) parcel of land (APN: 043-111-01) totaling approximately 0.32 acres or ±13,939 SF of land area. ZONING General Commercial (GC) (Click here to view link) YEAR BUILT 1948 IMPROVEMENTS The property consists of one (1) retail commercial building containing ± 4,019 square feet. PARKING Street parking and private, unpaved parking at the rear of the property. FRONTAGE The subject property benefits from approximately 120 linear feet of frontage along Marina Drive and Pacific Coast Hwy. STRUCTURAL ELEMENTS: Exterior Walls: Concrete block with stucco finish Exterior Windows: Glass in anodized aluminum frames EXTERIOR Roof: Built up composition Roof: Mounted HVAC units TOPOGRAPHY The property sits at grade level along Marina Drive and Pacific Coast Highway.

THE GARDEN | SITE + IMPROVEMENTS 18 2ND STORY 144 SF ALLEY

BATH 714 STORAGE PARKING SHOP CLOSET 404 SF 148 SF 216 SF 160 SF 1160 SF

CLOSET

160 SF

STORAGE 704 PATIO 640 SF 560 SF

BATH BATH 190 SF MARINA DRIVE BATH CLOSET 352 SF GRAVEL LOT 4239 SF

PATIO 450 SF

702

BATH 360 SF Devynn’s Garden and Juice Bar

7001/2 Bahia Marine 360 SF 700 Sugar Bella 524 SF

Ferguson Realty

Fence 7TH STREET SITE PLAN

THE GARDEN | SITE + IMPROVEMENTS 19 2ND & PCH

LONG BEACH STATE

Marina Drive - 4,200 CPD Pacific Coast Hwy - 38,500 CPD

700-714 MARINA DRIVE SEAL BEACH, CA 90740

THE GARDEN | SITE + IMPROVEMENTS 20 700-714 MARINA DRIVE SEAL BEACH, CA 90740

TENANT OVERVIEW

THE GARDEN | TENANT OVERVIEW 21 TENANT OVERVIEW

DEVYNN’S GARDEN Devynn’s Garden has been operating in Orange County for 25 years, with three distinctive locations in Sunset Beach, Seal Beach and Belmont Shore. Owned and operated by the Turk family, Devynn’s Garden hand selects the best quality imported and local flowers from the flower market and growers almost every day, and the floral designers create elegant floral art from the beautiful fresh flowers that turn the heads of those with the most discriminating taste.

SUGAR BELLA Sugar Bella is a boutique beauty destination offering sugaring hair removal, skin care experiences, and airbrush tanning. The studio offers package discounts and is open 6 days a week, closed on Sundays.

BAHIA MARINE Bahia Marine is dedicated to their customer’s different yacht rigging needs from cruising to racing, inshore and offshore. The company has been in business for over 60 years with the primarily goal of engineering vessels to get the customer on the water quickly and safely.

FERGUSON REALTY Ferguson Realty is a team of experienced, licensed real estate agents serving the neighboring Seal Beach communities. The team has a proven track record of getting results quickly and using direct lines of communication at all times.

THE GARDEN | TENANT OVERVIEW 22 700-714 MARINA DRIVE SEAL BEACH, CA 90740

FINANCIAL OVERVIEW

THE GARDEN | FINANCIAL OVERVIEW 23 Simple Financials Expenses

SUMMARY Monthly Annually Per SF PRICING SUMMARY PROPERTY SPECIFICATIONS Property Taxes $3,250 $39,004 $9.70 Purchase Price $3,500,000 Year Built 1948 Cap Rate 4.50% Total Rentable Area 4,019 Insurance $234 $2,805 $0.70 Occupancy 100% CAM POTENTIAL LOAN SCENARIO Utilities $68 $820 $0.20 Loan Amount N/A *No assumable financing in place. Buyer Rate N/A may pay all cash or secure new loan. Call Repairs & Maintenance $83 $1,000 $0.25 Broker for details. Amortization/Term N/A Landscaping $0 $0 $0.00 Trash Removal $334 $4,004 $1.00 OPERATING CASH FLOW Year 1 Fiscal Year Commences June 1 2020 Pest Control $0 $0 $0.00 REVENUE Security $0 $0 $0.00 Base Rental Revenue $157,800 TOTAL CAM $485 $5,824 $1.45 Expense Reimbursement Revenue $47,633 Effective Gross Revenue $205,433 Management Fee $0 $0 $0.00 Total Estimated Expenses $3,969 $47,633 $11.85 OPERATING EXPENSES CAM $5,824 Insurance $2,805 Property Taxes [1] $39,004 Total Operating Expenses $47,633

Net Operating Income $157,800 All Cash Return 4.50% FINANCING (Proposed) Less Loan Payment N/A Leveraged Cash Flow N/A Leveraged Cash on Cash Return N/A

Rent Roll

Unit Tenant SF Bldg % Monthly Base Rent Annual Base Rent Lease Started Lease Expires Comments 714 Bahia Marine 404 10% $1,325 $15,900 01/01/20 12/31/20 Tenant recently signed a one (1) year, NNN lease, with no options to extend. 702-712 Devynn’s Garden/Garden District 2,731 68% $8,675 $104,100 01/15/20 01/14/21 Tenant recently signed a one (1) year, NNN lease, with no options to extend. 700 1/2 Ferguson Realty 360 9% $1,475 $17,700 01/01/20 12/31/20 Tenant recently signed a one (1) year, NNN lease, with no options to extend. 700 Sugar Bella 524 13% $1,675 $20,100 01/01/20 12/31/20 Tenant recently signed a one (1) year, NNN lease, with no options to extend.

Occupied Space 4,019 100% $13,150 $157,800 Vacant Space Scheduled Base Rent 100% $13,150 $157,800

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

THE GARDEN | FINANCIAL OVERVIEW 24 700-714 MARINA DRIVE SEAL BEACH, CA 90740

Investment Advisors:

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.