NNN Leased Strip Center, Value-Add Potential 3105 Railroad Ave Mary Alam, MBA Joshua Ballesteros Pittsburg, CA 94565 Senior Vice President Investment Advisor O: 415.358.2111 O: 415.480.0214 M: 415.297.5586 M: 209.518.9025 [email protected] [email protected] CalDRE #01927340 CalDRE #02010271

OFFERING MEMORANDUM Table Of Contents

Table of Contents

3 Section 1 Property Information

6 Section 2 Location Information

14 Section 3 Financial Analysis

18 Section 4 Sale Comparables

25 Section 5 Rent Comparables

34 Section 6 Demographics Section 1 THE OFFERING 1 Property Description

Property Overview NAI Northern California is pleased to present for sale this well located strip center with 10 retail units and NNN leases. The property benefits from its strategic location in an emerging retail corridor just 0.7 miles from the Pittsburg Bart station and the California Delta Highway-4. Railroad Avenue enjoys close to a 20,000 vehicles per day traffic count which further adds to the visibility of this retail property and its success. This busy retail corridor includes, among others, the Atlantic Plaza Shopping Center, which features a wide variety of vendors such as FoodsCo, CVS, Goodwill, McDonald's, USPS, Little Caesar's, Mountain Mike's, Jackson Hewitt Tax and more

Location Overview The subject is located on busy Railroad Avenue in Pittsburg, minutes from the Pittsburg Bart Station and busy Highway 4. It enjoys strong demographics of approximately 150,000 people within a five mile radius with an average household income of approximately $82,000 per year. Population growth within five miles has been phenomenal at nearly 12% between 2010 and 2018 and projected to be close to 6% in the next five years. The property is surrounded by residential, retail, medical offices and various ethnic grocers and restaurants that serve a diverse and growing community.

nainorcal.com 4 Executive Summary

SALE PRICE: $1,590,000 Property Highlights

BUILDING SIZE: 8,758 SF • Potential for added value due to below-market rents.

LOT SIZE: 0.50 AC • Strategically located on Railroad Avenue with approximately 20,000 cars per day.

919 2018 NOI: $100, • Emerging retail corridor 0.7 miles from Hwy 4 & Pittsburg Center BART station on Railroad Ave. 2018 CAP RATE: 6.35% • Excellent demographics with population size more than 152,456 within a 5-mile radius FULLY LEASED 7.20% CAP RATE: • Major retail nearby includes FoodsCo, Goodwill, Walgreens, CVS, La Superior Mercados, Dollar OCCUPANCY RATE: 88% Tree, Starbucks, Subway, McDonald's etc. PRICE/SF: $182 • Pittsburgh is projected to be the fastest growing city in Contra Costa County by 2020. YEAR BUILT: 1970 APN: 088-064-026-3

nainorcal.com 5 Section 2 LOCATION 2 INFORMATION Location Overview

Location Overview SanSan FrancisFranciscoco BayBay Area,Area, CA CA The San Francisco Bay Area, Thecommonly San Francisco referred to asBay the Area, Bay commonlyArea, is a populatedreferred to regionas the thatBay Area,surrounds is a populatedthe San regionFrancisco that surroundsand San thePablo San estuaries Francisco in andNorthern San California.Pablo estuaries The region in Northern California. The region encompasses the major cities encompasses the major cities and metropolitan areas of San and metropolitan areas of San Francisco,Francisco, Oakland,Oakland, and SanSan Jose,Jose, alongalong with smallersmaller urbanurban andand ruralrural areas.areas. The BayBay Area’sArea’s ninenine countiescounties are Alameda,Alameda, ContraContra Costa,Costa, Marin, Napa, SanSan Francisco,Francisco, SanSan Mateo, SantaSanta Clara,Clara, Solano,Solano, and Sonoma.Sonoma. Home to approximately 7.44 Home to approximately 7.44 million people, the nine-county million people, the nine-county Bay Area contains many cities, towns,Bay Area airports, contains and many associated cities, regional,towns, airports, state, andand associated national parks,regional, connected state, andby a nationalnetwork Pittsburgh, CA ofparks, roads, connected highways, by a railroads,network The city of Pittsburg is located in Contra Costa County, California with a population size of 70,679. Located on the bridges,of roads, tunnels highways, and commuterrailroads, Richmond,southern shore of the Suisun CA Bay in the East Bay region of the San Francisco Bay Area, the city is 37 miles northeast rail.bridges, The combined tunnels and urban commuter area of of San Francisco, 29 miles northeast of Oakland, California, 60 miles north to San Jose and 65 miles south to therail. region The combined is the second-largest urban area of RichmondSacramento, is California.in western Pittsburg Contra Costashares County,a border California,with Antioch United to the States. east, Bay The Point city to was the incorporatedwest, and Concord on August to the in California (after the Greater southwest. The Suisun Bay is directly north of the city and connects the San Francisco Bay to the Sacramento and the region is the second-largest 7, 1905. Located in the eastern region of the San Francisco Bay Area, Richmond’s 33.7 square miles Los Angeles area), the fifthlargest San Joaquin rivers. There are two BART stations in Pittsburg - the Pittsburg/Bay Point Station located on Bailey Road in California (after the Greater borders the cities of San Pablo, Albany, El Cerrito and Pinole in addition to the unincorporated communities in the United States, and ofand North Highway Richmond, 4 and the Hasford Pittsburg Heights, Center Station Kensington, located Elon Sobrante, Railroad Avenue Bayview-Mountalvin and Highway 4. TriManor, Delta TaraTransit Hills, provides and Los Angeles area), the fifth- bus service in the area. California State Route 4 bisects the city from west to east. The economy of Pittsburg, CA is the 43rd-largest urban area in East Richmond Heights, and briefly San Francisco on Red Rock Island. thelargest world. in the United States, and specialized in Admin, Support, Waste Management Services; Construction; and Healthcare & Social Assistance. The the 43rd-largest urban area in total population employed in the economy is 30,460. The largest industries are Healthcare & Social Assistance(5,645), UnderRetail trade the McLaughlin(3,306), and Administration,Construction (2,934), Richmond and the was highest the largestpaying industriescity in the include United Utilities States ($63,333), served by a Green the world. PartyManagement mayor. of As Companies of the 2013 & Enterprises($62,750), U.S. Census, the city’s and populationProfessional, is Scientific, at 107,571. Tech Services($57,692). 4 Aerial Map

nainorcal.com 8 Retailer Map

nainorcal.com 9 Current Projects

nainorcal.com 11 Employers Map

nainorcal.com 10 Plot Map

nainorcal.com 12 Additional Photos

nainorcal.com 13 Section 3 FINANCIAL 3 ANALYSIS Rent Roll

Fully Fully Fully Fully Monthly NNN Total Annual Leased Fully Leased Leased Leased Approx. Rent (CAM) Monthly Annual Monthly Annual Lease Lease Rent Monthly/ Leased Monthly Annual/ Annual Unit # Tenant SF % SF 2018 Month Payment Rent 2018 Rent/SF Rent/SF Start Exp. Options Increase SF Monthly Total SF Rent

A E-Vapor * 1,000 12% $1,650 $200 $1,850 $19,800 $1.65 $19.80 2013 2019 1x5 CPI $1.65 $1,650 $1,850 $19.80 $19,800

A-1 Dos Market 1,000 12% $1,400 $200 $1,600 $16,800 $1.40 $16.80 2006 2023 1X5 CPI $1.40 $1,400 $1,600 $16.80 $16,800 B Body Art 540 6% $648 $119 $767 $7,776 $1.20 $14.40 2018 2021 CPI $1.20 $648 $767 $14.40 $7,776 C Barber 400 5% $480 $80 $560 $5,760 $1.20 $14.40 1991 2022 CPI $1.20 $480 $560 $14.40 $5,760 D1 Insurance 409 5% $552 $112 $664 $6,624 $1.35 $16.20 1994 2020 CPI $1.35 $552 $664 $16.20 $6,624

D Spa Salon 800 9% $960 $176 $1,136 $11,520 $1.20 $14.40 2018 2021 CPI $1.20 $960 $1,136 $14.40 $11,520

E Vacant 1,000 12% $0 $1.20 $1,200 $1,420 $14.40 $14,400 Accounting F 1,280 15% $1,560 $230 $1,790 $18,720 $1.22 $14.63 2003 2020 CPI $1.22 $1,560 $1,790 $14.63 $18,720 Office G Hair Salon 1,000 12% $1,200 $200 $1,400 $14,400 $1.20 $14.40 2017 2019 CPI $1.20 $1,200 $1,400 $14.40 $14,400

H Herbal 1,000 12% $1,200 $200 $1,400 $14,400 $1.20 $14.40 2013 2020 CPI $1.20 $1,200 $1,400 $14.40 $14,400

Totals 8,429 88% $9,650 $1,517 $11,167 $115,800 $1.14 $13.74 $1.29 $10,850 $12,587 $15.45 $130,200

nainorcal.com 15 Financial Summary

Debt and Return Calculations Loan Quote (subject to change) Sale Price $1,590,000 Loan Amount $954,000 Loan To Value 60% Down payment $636,000 Interest Rate 4.80% Amortization 30

Return Calculations Net Operating Income: $100,919 Debt Service: $5,068 $60,064 Pre-Tax Cash Flow: (Cash on Cash return) 6.4% $40,855 Principal Reduction: 14,272 Total Return: 8.7% $55,127

Principal Interest $14,272 $45,792 Year 1

nainorcal.com 16 Financial Summary

Income And Expenses 2018 ACTUAL 2019 Proforma

Rental Income $115,800 $130,200 NNN Income $18,204 $20,844 Total Gross Income $134,004 $151,044

Expense Breakdown

Cleaning & Maintenance $6,633 $6,633 MGMT $3,600 $3,600 Utilities $1,840 $1,840 Tax $24,555 $24,555 Insurance $3,090 $3,090 Total Expenses $33,085 $33,085 NOI $100,919 $117,959

Valuation Analysis 2018 2019

Net Income $100,919 $117,959 Vacancy Rate (3%) $3,539 NOI $100,919 $114,420 PRICE $1,590,000 $1,590,000

nainorcal.com 17 Section 4 SALE 4 COMPARABLES Sales Comparables

Subject Property 3105 Railroad Ave. | Pittsburg, CA 94565

Sale Price: $1,590,000 Lot Size: 0.5 Acres Year Built: 1970 Building SF: 8,758 SF Price PSF: $182 NOI: $100,919 CAP: 6.35%

1 295 E Leland Rd Pittsburg, CA 94565

Sale Price: $675,000 Lot Size: 77,101 SF Year Built: 1973 1 Building SF: 2,775 SF Price PSF: $243.24 Closed: 11/09/2017

2 620 Port Chicago Hwy Shore Acres, CA 94565

Sale Price: $3,060,000 Lot Size: 64,216 SF Year Built: 1953 2 Building SF: 15,000 SF Price PSF: $204.00 Closed: 05/19/2017

nainorcal.com 19 Sales Comparables

3 700-706 Port Chicago Hwy Pittsburg, CA 94565

Sale Price: $3,060,000 Lot Size: 31,450 SF Year Built: 1953 3 Building SF: 10,165 SF Price PSF: $301.03 Closed: 05/19/2017

4 2204 A St Antioch, CA 94509

Sale Price: $600,000 Lot Size: 12,632 SF Year Built: 1976 4 Building SF: 2,754 SF Price PSF: $217.86 Closed: 05/08/2018

5 Shore Acres Shopping Center 634-658 Port Chicago Hwy | Bay Point, CA 94565

Sale Price: $3,060,000 Lot Size: 63,532 SF Year Built: 1953 5 Building SF: 14,841 SF Price PSF: $206.19 Closed: 05/19/2017

nainorcal.com 20 Sales Comparables

6 2711 Willow Pass Rd Bay Point, CA 94565

Sale Price: $1,100,000 Lot Size: 18,857 SF Year Built: 1986 6 Building SF: 5,400 SF Price PSF: $203.70 Closed: 04/26/2017

7 24 W 10th St Antioch, CA 94509

Sale Price: $600,000 Lot Size: 10,019 SF Year Built: 1940 7 Building SF: 2,647 SF Price PSF: $226.67 Closed: 04/05/2017

8 1014 Fitzuren Rd Antioch, CA 94509

Sale Price: $1,840,000 Lot Size: 28,750 SF Year Built: 1986 8 Building SF: 9,000 SF Price PSF: $204.44 Closed: 07/20/2017

nainorcal.com 21 Sales Comparables Summary

Subject Property Price Bldg SF Price/SF CAP

3105 Railroad Ave. 3105 Railroad Ave. $1,590,000 8,758 SF $182 6.35% Pittsburg, CA 94565

Sale Comps Price Bldg SF Price/SF CAP Close

801 W 4th St. 1 Antioch, CA $355,000 2,400 SF $147.92 - 05/04/2018 94509

107-121 W 8th St. 2 Pittsburg, CA $530,000 3,824 SF $138.60 - 10/13/2016 94565

427 E 10th St. 3 Pittsburg, CA $320,000 2,040 SF $156.86 - 04/17/2018 94565

301 Central Ave. Pittsburg, CA $170,100 1,118 SF $152.15 - 06/09/2016 4 94565

nainorcal.com 22 Sales Comparables Summary

Subject Property Price Bldg SF Price/SF CAP

3001 Delta Fair Blvd. 5 Antioch, CA $1,400,000 8,400 SF $166.67 - 04/24/2017 94509

262-266 Diane Ave. 6 Pittsburg, CA $699,000 4,800 SF $145.63 6.44% - 94565

415 G St. 7 Antioch, CA $130,000 884 SF $147.06 - 11/30/2017 94509

53 Manor Dr. 8 Bay Point, CA $1,950,000 11,976 SF $162.83 6.28% 09/26/2016 94565

Price Bldg SF Price/SF CAP Close

Totals/Averages $694,263 4,430 SF $156.72 6.36%

nainorcal.com 23 Sales Comparables Map

Subject Property 3105 Railroad Ave. | Pittsburg, CA 94565

295 E Leland Rd 620 Port Chicago Hwy 700-706 Port Chicago Hwy 2204 A St 1 2 3 4 Pittsburg, CA Shore Acres, CA Pittsburg, CA Antioch, CA 94565 94565 94565 94509

Shore Acres Shopping Center 2711 Willow Pass Rd 24 W 10th St 1014 Fitzuren Rd 5 6 7 8 634-658 Port Chicago Hwy Bay Point, CA Antioch, CA Antioch, CA Bay Point, CA 94565 94565 94509 94509

nainorcal.com 24 Section 5 RENT 5 COMPARABLES Rent Comparables

1 Antioch Strip Center 2500 San Jose Dr. | Antioch, CA 94509

Lease Rate: $15.00 SF/YR Lease Type: NNN Space Size: 1,243 SF 1 Bldg Size: 1,243 SF

2 Eastwood Shopping Center 1820-1896 A St. | Antioch, CA 94509

Lease Rate: $16.20 SF/YR Lease Type: NNN Space Size: 1,392 SF 2 Bldg Size: 1,392 SF Lot Size: 0.5 Acres

3 311-319 Railroad Ave. Pittsburg, CA 94565

Lease Rate: $15.96 SF/YR Lease Type: NNN Space Size: 1,600 SF 3 Bldg Size: 1,600 SF Lot Size: 0.5 Acres Lease Term: 36 months

nainorcal.com 26 Rent Comparables

4 2500-2590 Sycamore Dr. Antioch, CA 94509

Lease Rate: $18.00 SF/YR Lease Type: NNN Space Size: 1,500 SF 4 Bldg Size: 1,500 SF Lot Size: 0.5 Acres Lease Term: 12 months

5 Eastwood Shopping Center 1820-1896 A St. | Antioch, CA 94509

Lease Rate: $15.00 SF/YR Lease Type: NNN Space Size: 1,220 SF 5 Bldg Size: 1,220 SF Lot Size: 0.5 Acres

6 Bldg C 2221-2231 Railroad Ave. | Pittsburg, CA 94565

Lease Rate: $19.56 SF/YR Space Size: 1,600 SF Bldg Size: 1,600 SF 6 Lot Size: 0.5 Acres

nainorcal.com 27 Rent Comparables

7 Eastwood Shopping Center 1820-1896 A St. | Antioch, CA 94509

Lease Rate: $15.00 SF/YR Lease Type: NNN Space Size: 1,055 SF 7 Bldg Size: 1,055 SF Lot Size: 0.5 Acres Lease Term: 36 months

8 2500-2590 Sycamore Dr. Antioch, CA 94509

Lease Rate: $18.00 SF/YR Lease Type: NNN Space Size: SF 8 Bldg Size: 1,500 SF Lot Size: 0.5 Acres Lease Term: 12 months

9 2500-2590 Sycamore Dr. Antioch, CA 94509

Lease Rate: $18.00 SF/YR Lease Type: NNN Space Size: 1,900 SF 9 Bldg Size: 1,900 SF Lot Size: 0.5 Acres Lease Term: 12 months

nainorcal.com 28 Rent Comparables

10 Eastwood Shopping Center 1820-1896 A St. | Antioch, CA 94509

Lease Rate: $15.00 SF/YR Lease Type: NNN Space Size: 1,382 SF 10 Bldg Size: 1,382 SF Lot Size: 0.5 Acres Lease Term: 36 months

11 Eastwood Shopping Center 1820-1896 A St. | Antioch, CA 94509

Lease Rate: $15.00 SF/YR Lease Type: NNN Space Size: 1,323 SF 11 Bldg Size: 1,323 SF Lot Size: 0.5 Acres Lease Term: 60 months

nainorcal.com 29 Rent Comparables Summary

Subject Property Price/SF/YR Bldg SF

Antioch Strip Center 2500 San Jose Dr. $15.00 1,243 SF Antioch, CA 94509

Eastwood Shopping Center 1820-1896 A St. $16.20 1,392 SF Antioch, CA 94509 1

311-319 Railroad Ave. Pittsburg, CA $15.96 1,600 SF 94565 2

2500-2590 Sycamore Dr. Antioch, CA $18.00 1,500 SF 94509 3

Eastwood Shopping Center 1820-1896 A St. $15.00 1,220 SF Antioch, CA 94509 4

Bldg C 2221-2231 Railroad Ave. $19.56 1,600 SF Pittsburg, CA 94565

nainorcal.com 30 Rent Comparables Summary

Subject Property Price/SF/YR Bldg SF

Eastwood Shopping Center 5 1820-1896 A St. $15.00 1,055 SF Antioch, CA 94509

2500-2590 Sycamore Dr. 6 Antioch, CA $18.00 1,500 SF 94509

2500-2590 Sycamore Dr. 7 Antioch, CA $18.00 1,900 SF 94509

Eastwood Shopping Center 8 1820-1896 A St. $15.00 1,382 SF Antioch, CA 94509

Eastwood Shopping Center 9 1820-1896 A St. $15.00 1,323 SF Antioch, CA 94509

Price/SF/YR Bldg SF 10 Totals/Averages $16.43 1,429 SF

nainorcal.com 31 Rent Comparables Summary

Subject Property Price/SF/YR Bldg SF

3105 Railroad Ave. 11 3105 Railroad Ave. N/A 8,758 SF Pittsburg, CA 94565

Rent Comps Price/SF/YR Bldg SF

nainorcal.com 32 Rent Comparables Map

Subject Property 3105 Railroad Ave. | Pittsburg, CA 94565

3105 Railroad Ave. 3829-3835 Railroad Ave. 4001-4009 Railroad Ave. Davi Building 1 2 3 4 Pittsburg, CA Pittsburg, CA Pittsburg, CA 3796-3810 Railroad Ave. 94565 94565 94565 Pittsburg, CA 94565

965-995 East St 1849 Willow Pass Rd 5065 Clayton Rd 2100 Monument Blvd 5 6 7 8 Pittsburg, CA Concord, CA Concord, CA Pleasant Hill, CA 94565 95420 94521 94523

nainorcal.com 33 Section 6 DEMOGRAPHICS 6 Demographics

Population: 1 mile 3 miles 5 miles 2023 Projection 23,617 80,044 158,876 2018 Estimate 22,331 75,704 150,052 2010 Census 20,097 68,248 134,057 Growth 2018-2023 5.76% 5.73% 5.88% Growth 2010-2018 11.12% 10.92% 11.93% 2018 Population Hispanic Origin 10,976 34,348 63,367 2018 Population by Race: 1 mile 3 miles 5 miles White 13,720 44,112 93,891 Black 3,707 13,782 22,862 Am. Indian & Alaskan 462 1,322 2,537 Asian 2,891 11,257 20,531 Hawaiian & Pacific Island 367 886 1,617 Other 1,183 4,345 8,614 U.S. Armed Forces: 37 56 66 Households: 1 mile 3 miles 5 miles 2023 Projection 7,566 25,212 51,316 2018 Estimate 7,139 23,802 48,400 2010 Census 6,332 21,173 42,766 Growth 2018 - 2023 5.98% 5.92% 6.02% Growth 2010 - 2018 12.74% 12.42% 13.17% Owner Occupied 3,820 13,605 27,678 Renter Occupied 3,319 10,197 20,722 2018 Avg Household Income $74,382 $77,101 $82,114 2018 Med Household Income $60,075 $61,904 $63,519 2018 Households by Household Inc: <$25,000 1,812 4,904 9,032 $25,000 - $50,000 1,173 4,585 9,901 $50,000 - $75,000 1,278 4,482 9,081 $75,000 - $100,000 1,169 3,660 7,002 $100,000 - $125,000 723 2,540 4,737 $125,000 - $150,000 335 1,353 2,967 $150,000 - $200,000 354 1,317 2,947 $200,000+ 295 961 2,733

nainorcal.com 35 Traffic Count

Dist from Collection Street Cross Street Cross Street Dist/Dir Traffic Volume Count Year Type Subject Railroad Ave Delta de Anza 0.06 S 19,220 2017 0.27 MPSI... Railroad Ave Linscheid Dr 0.04 N 15,014 2017 0.30 MPSI... W Leland Rd William Way 0.02 NW 18,090 2013 0.36 Converted... E Leland Rd Railroad Ave 0.06 W 22,152 2015 0.36 MPSI... E Leland Rd Harbor St 0.23 E 20,040 2017 0.36 MPSI... Railroad Ave E Leland Rd 0.05 S 24,270 2013 0.42 Converted... Harbor St E Leland Rd 0.03 N 13,100 2012 0.42 Converted... E Leland Rd Harbor St 0.03 E 17,820 2012 0.43 Converted... Crestview Dr Robinson Ave 0.02 NE 2,836 2017 0.43 MPSI... W Leland Rd Betty Ln 0.03 NW 17,019 2017 0.43 MPSI...

nainorcal.com 36 3105 Railroad Ave. 3105 Railroad Ave., Pittsburg, CA 94565

Mary Alam, MBA Joshua Ballesteros Senior Vice President Investment Advisor O: 415.358.2111 O: 415.480.0214 M: 415.297.5586 M: 209.518.9025 [email protected] [email protected] CalDRE #01927340 CalDRE #02010271