Highlights Lease Summary Pricing Financing Options

Click to View Google Map: 2525 W Florida Ave, Hemet, CA 92545 Southern California Grocery Legacy Investment I 30 year Operational History I Sold PRICING Price $6,247,000 CRITICAL OFFERING DETAILS by Original Developer Cap Rate 5.35% Approximate Building Square Footage 20,803 SF Year Built 2005 Year Renovated 2015 Approximate Lot Size 79,873 SF Extremely Rare Single Tenant Grocery Investment Only seven similar assets have sold over the last twenty- ANNUALIZED OPERATING DATA four months Long Term Tenancy as an Indicator of Security Lease Year Annual Rent Monthly Rent 30 years of occupancy within the Hemet market, tenant Year 1 - 10 $275,000 $22,916 has remodeled the unit in 2015 and expanded the Year 11 - 15 $303,861 $25,321 footprint to the extra format CLICK FOR 360° AERIAL Year 16 - 20 $334,247 $27,853 Tenant has remodeled twice and expanded the unit size Year 21 - 25 $404,455 $33,704 Option 1: Year 16 - 20 $444,900 $37,075 Southern California Based Tenant with Strong Brand HIGHLIGHTS Option 2: Year 21 - 25 $489,390 $40,782 Loyalty Option 3: Year 26 - 30 $538,329 $44,860 Smart and Final has successfully operated in Southern • Smart & Final sits at the epicenter of Hemet’s retail corridor | The Option 4: Year 31 - 35 $592,163 $49,346 California for nearly a century corner of West Florida Avenue & Kirby Street sees over 38,000 Option 5: Year 36 - 40 $651,379 $54,281 Cars Per Day | Multiple National Tenants surrounding the corner Net Operating Income $334,247 Historically Low Comparable Vacancy within the including - McDonald’s, Starbucks, Petco, Applebee’s, Chipotle, Bank Submarket of America, and Denny’s. Co-Star reports only one vacancy in similar properties • Smart & Final elected to build out the location in 2015, adding an LEASE SUMMARY additional 803 Sf. Converting into a “Smart & Final Extra!” location Seller Committed to Liquidating the Asset Lease Commencement October 2005 to keep up with demand. Driving along West Florida Avenue you will Seller will Rrespond to all realistic offers within twenty- Lease Expiration November 2030 notice many newly renovated Restaurants and Big Box sites– A strong four hours indication that tenants are performing well and reinvesting into Original Term 15-Year Lease properties in anticipation of future growth. Lease Extension 10 Years Option Term Five, Five-Year Options • Smart and Final operates 324 locations across California, Oregon, Increases 10% Every Five-Years Washington, Arizona, Nevada, Idaho | Smart & Final Extra! stores Guarantee Private Corporate blend a wholesale club-style store — but no membership fee — with a traditional supermarket in a one-stop shop, including farm-fresh produce and natural/organic options. FINANCING OPTIONS • Riverside County is in Southern California and is the 10th largest Multiple financing options are available based on buyer requirements. Please contact listing county in all of the US | Riverside has experienced robust growth, agents to discuss options in detail. since 2010 the population has grown nearly 13% totaling 2,470,546 Rate 3.85 - 4.25% residents. Amortization (In Years) 25-30 Years Fixed Term 3-5-10 Year Options LTV 30-50%

Kevin Boeve Kyle Blatt Adam Christofferson Michael Derk Senior Vice President Investments Associate Broker of Record Senior Managing Director Capital Markets

Tel: (909) 456-3450 Tel: (909) 456-3475 16830 Ventura Blvd, Suite 100 CA License: 01404618 [email protected] [email protected] Encino, CA 91436 19800 MacArthur Boulevard, Suite 150 CA License: 01247016 CA License: 02017976 NC License # 303785 Irvine, CA 92612 Tel: (818) 212-2700 Cell: (310) 849-0799 [email protected] Office: (949) 419-3386 [email protected]

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap SMART & FINAL OVERVIEW DEMOGRAPHICS SMART & FINAL NEWS Apollo Global Management Inc (NYSE: APO) 1 Miles 3 Miles 5 Miles Why Real Estate Investment Trust Own Grocery Store Real Estate Population 16,291 94,286 158,474 Smart & Final, the smaller, faster grocery warehouse store, is one of the longest Progressive Grocer 2020 Annual Report continuously operating food retailers in the United States and operates under two Households 8,132 34,753 55,682 banners: Smart & Final and Smart & Final Extra!. Headquartered in Los Angeles, Smart & Final Official Grocer of Los Angeles Dodgers where our history dates back to 1871, Smart & Final operates more than 250 grocery Average Income $51,174 $55,375 $61,138 and foodservice stores in California, Arizona and Nevada with additional stores in Daytime Population 4,157 25,898 46,898 Smart & Final Sold to Private Company Northern Mexico operated through a joint venture. Smart & Final Rolls Out New Tech Enhanced Lines While all Smart & Final stores provide quality product at the great value of a warehouse store, Smart & Final Extra! stores have a larger format and provide an assortment of Smart & Final Hiring 750 Workers in 6 Days both club and traditional-sized groceries and supplies for households, businesses and organizations. Ideal for one-stop shopping, Smart & Final Extra! stores combine INLAND EMPIRE (HEMET, CA) a warehouse store with traditional grocery offerings like farm-fresh produce, fresh meat, frozen foods, dairy, deli, grocery basics, and natural and organic options. So The Riverside-San Bernardino metro, also referred to as the Inland Empire, is a 28,000-square-mile region in Southern California composed of San Bernardino whether you’re shopping for your business or organization, stocking up and meal and Riverside counties. The metro contains a population approaching 4.6 million. The largest city is Riverside with more than 327,000 residents, followed by San planning, hosting a party or simply preparing a dinner for your family, Smart & Final Bernardino with nearly 221,000 people. Valleys in the southwestern portion of the region, adjacent to Los Angeles, Orange County and San Diego County, are the Extra! offers more than 3,000 club-sized items alongside your daily grocery needs, most populous in the metro. These areas abut the San Bernardino and San Jacinto mountains, behind which lies the high desert area of Victorville/Barstow to the all at prices lower than traditional supermarkets and without a membership fee. north and the low-desert Coachella, home of Palm Springs, to the east. Across all of Smart & Final, we’re passionate about providing for those who provide VISIT CALIFORNIA INLAND EMPIRE WEB PAGE LINK for others. And we’re dedicated to the communities we serve. With the help of our customers and associates, Smart & Final and the Smart & Final Charitable Foundation donate more than $1 million and 1,000 volunteer hours each year – providing support and improving the lives of millions in the areas of health & wellness, hunger relief SAN DIEGO LOS ANGELES and emergency response, K-12 education, and youth sports. 85.2 MILES ORANGE COUNTY 86.8 MILES Founded 1923 (97 Years Ago) 66.1 MILES Type Private (As of 2019) Headquarters Los Angeles, United States Website www.smartandfinal.com RIVERSIDE, CA 33.8 Miles Away (40-Minute Drive)

Inland Empire Metropolitan area near the Santa Ana River and 55-Miles east of Los Angeles

# of Locations: 58th most populous city in the United States 324 TEMECULA, CA and 12th most populous city in California 29.6 Miles Away (35-Minute Drive) Birthplace of the California citrus industry and home of the Mission Inn, the largest Mission Tourist and Resort destination located in Revival Style building in the United States Riverside County, featuring the Southern California’s rich Temecula Valley Wine Country

Host of the Temecula Valley Ballon & Wine Festival and the Temecula Valley International Film Festival

STRATEGIC LOCATION Intermodal infrastructure supports the warehousing and distribution Interstate access and close proximity to LAX and Ontario International industry. Ontario International and the Southern California Logistics airports as well as ports in Long Beach and Los Angeles contribute to Airport in Victorville are cargo airports that supplement the distribution the metro’s vast air, rail and interstate transit network. system. Growth in the distribution industry impacts all others. Many Fortune 500 DOMINANT INDUSTRIAL MARKET companies have massive distribution centers in the area, such as Amazon Riverside-San Bernardino is one of the nation’s leading industrial and Deckers. Available land allows further development. markets in terms of sales, construction and absorption. Relatively affordable housing compared with nearby counties supports local population growth. These gains heighten the need for housing, retail STRONG DEMOGRAPHIC TRENDS goods, personal and government services. Jobs, colleges, new-home construction and more affordable housing options draw thousands of new residents to the Inland Empire each year. MAJOR AREA EMPLOYERS

DEMOGRAPHICS San Bernadino County Riverside County

The metro is expected to add nearly 175,000 people through 2024, and Stater Bros. Loma Linda University Medical during this time, more than 60,000 households will be formed, generating Center demand for housing. Kaiser Permanente Walmart The homeownership rate of 57 percent higher than large metros in the state. University of California, Riverside Amazon The median home price of $388,500 is more affordable than larger Ontario International Airport March Air Reserve Base Southern California metros.

2019 POPULATION BY AGE 7% 22% 7% 27% 24% 13% SHARE OF 2019 TOTAL EMPLOYMENT 0-4 Years 5-19 Years 20-24 Years 25-44 Years 45-64 Years 65+ Years 7% 10% 17% 11% 3% MANUFACTURING PROFESSIONAL & GOVERNMENT LEISURE & FINANCIAL ACTIVITIES BUSINESS SERVICES HOSPITALITY

2019 Median 2019 Population 2019 Households 2019 Median Age Household Income 4.6M 1.4M 34.5 $61,800 Growth 2019-2024* Growth 2019-2024* U.S. Median: U.S. Median: 25% 7% 17% 1% 3% 3.8% 4.1% 38.1 $60,800 TRADE, CONSTRUCTION EDUCATION & INFORMATION OTHER SERVICES TRANSPORTATION & HEALTH SERVICES UTILITIES

HEMET-RYAN 89,000+ CPD AIRPORT-HMT

FLORIDA AVENUE

CASA DEL SOL RV RESORT No. of Units: 358

INTERSECTION OF FLORIDA AVE & KIRBY STREET KIRBY STREET 38,000 CPD

Special COVID-19 Notice

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee iden- tified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.