:: OFFERING MEMORANDUM Capital Markets | Private Client Group :: INDUSTRIAL INVESTMENT 12402 Industrial Boulevard | Victorville, California Capital Markets | Private Client Group Value Add Institutional Quality Industrial/Office Incubator Park Priced at 50% Below Replacement Cost. TABLE OF CONTENTS 01 Property Summary Investment Summary Investment Highlights 02 Property Location Aerial Photographs Local and Regional Maps 03 Property Description Property Description Site Plan 04 The Market City Overview County Overview Sale Comparables 05 Financials Executive Summary Financing Assumptions Cash Flor Projections Leveraged Summary In-Place NOI vs. Pro-Forma NOI IPRO Forma Income Existing vs. Market Comparison Vacant Space Assumptions Lease Expirations For more information on Foxborough Business Park, please visit our website at Rent Roll www.pcgnb.com/FoxboroughBP Replacement Cost 3 FOXBOROUGH BUSINESS PARK | Property Summary 01 Property Summary Investment Summary Investment Highlights PROPERTY SUMMARY Investment Summary Investment Highlights Foxborough Business Park “Value Add” Industrial/Office Park Opportunity Priced at $8,250,000 ($64 PSF) which is significantly below 12402 Industrial Boulevard x Rare opportunity to acquire a seven building business the estimated replacement cost of $16,095,765 ($126 PSF) Victorville, CA 92395 park that is divided into 35 units. x Low future risk once the project is leased, of major Ideal Victorville Business Park Location Purchase Price ....................................$8,250,000 vacancy due to 35 separate units ranging from 805 to x Immediate I-15 freeway access via the 4-way interchange Price PSF ............................................$64 13,650 SF the largest only equating to 10.74% of the at Bear Valley Road. Year 1 NOI ........................................$675,847 total building area. x Centrally located off of Bear Valley Road, one of Year 1 In-Place Cap Rate .....................7.80% x Many of the existing tenants have been located within Victorville’s major East/West thoroughfares and is Building Size ......................................128,047 SF the Foxborough Business Park for over 8 years. home to numerous retail amenities such as Sears, Vons, Land Size ...........................................346,302 SF x Existing vacant units require little to no additional capital Walmart, Home Depot, Lowes and many more national Estimated Replacement Cost .................$126 PSF and are available for immediate occupancy. Also, retailers. smaller unit sizes will require less capital for tenant x Victorville is an ideal business community because of it’s improvements when spaces become vacant. affordable housing and access to a deep labor pool. x A wide variety of suite sizes and types allows tenants to The property is within 5 miles of 173,473 people with expand and contract throughout the business park which an estimated average household income of $61,036. will limit future vacancy. x Ideal business park amenities, within 2 miles of x Limited available office in Victorville and Hesperia the following: 14 restaurants, 9 grocery stores, 9 has resulted in one of the lowest vacancy rates in all pharmacies, 9 banks and 5 shopping centers. of Southern California. Between 1,000 and 15,000 square feet, there is 2,151,188 square footage of office space in the market with a vacancy rate of 7.6%. For industrial space between 2,000 and 20,000 square feet, there is 2,894,036 square feet where the vacancy rate is 6.1%. This low vacancy will help to increase tenant retention and limit downtime. 5 FOXBOROUGH BUSINESS PARK | Property Location 02 Property Location Aerial Photographs Local and Regional Maps THE MALL OF VICTOR VALLEY | Aerial Photographs PROPERTY LOCATION HI DESERT PLAZA Mojave (I-15) Freeway H DESERT VALLEY HOSPITAL Hesperia Road t e e tr S d oa e R in y e e m ll s v a i a r V J r D ea B a c i l i S I ndustrial Boulevard 7 FOXBOROUGH BUSINESS PARK | Aerial Photographs 8 In d u s tr i a l B o u le v a r d Jasmine Street PROPERTY LOCATION | Local and Regional Maps Foxborough Business Park Foxborough Business Park 9 FOXBOROUGH BUSINESS PARK | Property Description 03 Property Description Property Description Site Plan Floor Plans PROPERTY DESCRIPTION Property Description Parcel Statistics Address :: 12402 Industrial Boulevard Victorville, CA 92395 County :: San Bernardino Property Type :: Office/Industrial Business Park Total Buildings :: Seven (7) Number of Units :: Thirty-Five (35) Parking :: 396 spaces Year Built :: 1991 Construction Type :: Reinforced Concrete Tilt-up Fire Sprinklers :: Yes Loading :: Ground Level Power :: 100 amps per unit PARCEL LAND SIZE BUILDING OFFICE INDUSTRIAL Zoning :: M-2T BUILDING NUMBER NUMBER (SF) SIZE (SF) SPACE (SF) SPACE (SF) 12402 Industrial Boulevard 3091-261-07 346,302 128,047 46,532 81,515 TOTAL 346,302 128,047 11 FOXBOROUGH BUSINESS PARK | Site Plan Building C JASMINE STREET Multi-Tenant Building A Multi-Tenant Building E Building F Building G Industrial Industrial Industrial Divisible Divisible Divisible Building D Multi-Tenant Building B Multi-Tenant INDUSTRIAL BOULEVARD 12 PROPERTY DESCRIPTION | Floor Plans F2 F1 A1 G1 E1, 2 & 3 F1&F2A A2 G2 Building C A11 F3 G3 A3 A10 A4 A9 E4 F4 G4 D1 E5 A5 A8 G5 F5 & 6 G6 A6 A7 D2 E6 A D3 D3 E7 F7 G7 D4 G8 E8 D5A B1 B2 B3 B4 B5 B6 B7 E9 F8, 9 & 10 G9 E10 G10 D7 Suite Tenant Sq. Ft. BUILDING A 10,858 Suite Tenant Sq. Ft. Suite Tenant Sq. Ft. A01 American Univ. of Med Tech. 2,418 BUILDING C 11,375 BUILDING F 26,970 A02_10 Good Deal Realty 1,433 C01-07 Desert Valley Medical Group 11,375 F01-02 Lifecare Solutions 4,500 A03 Strands Hair Co. 1,298 BUILDING D 12,348 F01-02A Management Office 1,000 A04 Desert Valley Hospital 1,242 D01-02 Smart Fit 3,948 F03 Desert Valley Medical Group 2,720 A05 Advanced Micro Technologies 680 D03-07 County of San Bernardino 8,400 F04 Desert Valley Medical Group 2,550 A06 James Hearing Aid Center 1,064 BUILDING E 27,300 F05-06 FleetPride Inc. 5,100 A07 VACANT 805 E01-03 VACANT 8,550 F07 Desert Valley Medical Group 2,550 A08 VACANT 829 E04 Victor Valley Community Hospital 2,550 F08-10 Iglesia Mision Christiana 8,550 A09 VACANT 778 E05 VACANT 2,800 BUILDING G 27,300 A11 Victoria Staging & ReDesign 311 E06 VACANT 2,550 G01-05 Bear Valley Rentals 5,400 BUILDING B 11,896 E07 VACANT 2,550 G02-03 Desert Valley Medical Group 5,700 B01 Glenn P Matney, M.D. 1,650 E08 R & R Electric 2,850 G04 VACANT 2,550 B02-05 VACANT 6,746 E09-10 Mojave Copy & Printing 5,450 G06-10 Desert Valley Medical Group 13,650 B06 Roger Moushabek, M.D. 1,750 TOTAL 128,047 B07 Omaha Woodman Life Insurance 1,750 FOXBOROUGH BUSINESS PARK | The Market 04 The Market City Overview County Overview Sale Comparables THE MARKET City Overview Victorville is a city located in the Victor Valley of southwestern San Bernardino County. Victor Valley The community was incorporated on September 21, 1962, and has a population of over Victor Valley is a subregion of Southern California north of the San Bernardino Mountains 107,000. Estimates suggest that this figure more than doubles during business hours to in the Mojave Desert. It is located in San Bernardino County and situated east of the accommodate the needs of the more than 300,000 people who call the Victor Valley Antelope Valley and north of the Cucamonga Valley. The Victor Valley is part of the 14th home. Victorville is accessible via Interstate 15 and Highway 395, linking the city with largest metropolitan area, the Inland Empire. Out of 6 incorporated cities, the largest all other areas of Southern California and to Las Vegas. An integral part of the high one is Victorville. The Victor Valley ranks second to Coachella Valley and Imperial Valley desert, Victorville enjoys the advantage of being right in the middle of two highly popular in the fastest-growing overall in California, the United States and some say all of North destinations in the United States. High desert living in Victorville offers outstanding America. opportunities for plentiful, secure employment, home ownership, higher education, safe neighborhoods and nearby desert, lake and mountain recreation. The Victor Valley includes the communities of Adelanto, Apple Valley, Hesperia, Lucerne Valley, Oak Hills, Phelan, Victorville and Wrightwood. Victorville is the business hub Victorville is the multimodal transportation hub of Southern California. Transporting of the area and draws consumers from well beyond its immediate area. It is the largest cargo via truck, rail or air, Victorville brings them all together and on their way within a commercial center between San Bernardino and the Nevada border. The Victor Valley pro-business, fast track environment. 60% of all goods moving into and out of Southern has an estimated population of 350,000. The urban sprawl is in a 10 mile radius from California travel through Victorville. Victorville in an otherwise “rural” desert region. x Southern California Logistics Airport (SCLA): A 5,000-acre international logistics hub Top 10 Employers for Victorville with multimodal capabilities, including ground transportation services and a 2-hour Company Name No. of Employees turnaround. Many major corporations are relocating to SCLA, including Boeing, Verizon Directories Corp 800 General Electric Aircraft Engineering and Pratt & Whitney. Victor Valley Union High School District Financing 800 x BNSF Logistics Facility (proposed): BNSF Railway Company and the City of Victorville Victor Valley Community Hospital 620 signed an exclusive Memorandum of Understanding (MOU) in January 2007 to explore development of a major intermodal logistics center at Victorville’s railway Victor Valley Community College District 600 center, adjacent to SCLA, nationally recognized for its unique development through Victor Elementary School District 575 public-private partnerships.