OFFERING MEMORANDUM

3430 W. Lincoln Avenue Anaheim, CA 92801

CAPITAL MARKETS | INVESTMENT PROPERTIES AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property 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 your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such 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).

CONFIDENTIALITY AGREEMENT 1 Executive Summary Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. 2 Investment & Location Highlights If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER 3 Property Description

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 4 Tenant Overview | Lease Abstract “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 5 Market Overview | Demographics 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. 1 Executive Summary ANAHEIM 2 Investment & Location Highlights

3 Property Description

4 Tenant Overview | Lease Abstract

5 Market Overview | Demographics Alan Krueger Vanessa Haddad Senior Vice President Associate +1 909 418 2062 +1 909 418 2143 [email protected] [email protected] Lic. 00880814 Lic. 01926324 Executive Summary

ILK MILK

SHOPPING LIST 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

4 1 The Offering Executive Summary

Price: $6,300,000

NOI: $290,556

Cap: 4.6%

GLA: 26,414 SF

Price PSF: $238/PSF

Term: 10 Years

Ownership Type: Fee Simple

Increases: 10% every 5 Years

Options: Three 5-year Options

Lease Start & End: 10.31.19 - 10.31.29

Guaranty: Corporate

Tenant: Grocery Outlet Inc.

Lease Type: NNN

Landlord Responsibilities Roof, Structure, & Foundation*

*Note: 10-Year transferable roof warranty in place for buyer 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

6 7 Investment & Location Highlights

ILK MILK

SHOPPING LIST 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

8 2

Investment Highlights • Below Market Rents: Grocery Outlet is currently paying under • Brand New Pride of Ownership Asset: the newly redeveloped a dollar per square foot ($0.91/PSF) in rent, which provides low prototype building, includes a new 10-year roof warranty and new occupancy costs to the tenant, hence, stability. upgrades to the building.

• Corporate Guarantee by Grocery Outlet (NASDAQ: “GO”) with a • Prominent Signage: on Lincoln Avenue, a major freeway exit, market capitalization of over USD $2.98B provides the investor with further optimizes visibility and traffic. a premier investment-grade tenant. Ideal 1031 Exchange Replacement Property • No Existing Financing in Place: delivered free and clear of any • New, Long Lease Term: recently signed 10-year lease plus three existing debt, permitting an investor to purchase for cash or obtain 5-Year Options to renew. new financing tailored to an investor’s LTV and terms. • Limited Landlord responsibilities: newly redeveloped building with • Trophy Asset: located in the heart of Anaheim, one of Orange limited Landlord responsibilities makes this Property an Ideal 1031 County’s most dense, infill trade areas, STNL Grocery Outlet exchange property or portfolio asset. provides a great addition to any investor’s portfolio.

Location Highlights • Significant Frontage and Visibility: unmatched visibility from the • Prime, Major Intersection Location: Grocery Outlet is located on signalized hard corner, with over 270 feet of frontage on Lincoln the southeast intersection of Lincoln Ave & Knott Ave which boasts Avenue, a major freeway exit with over 22,000 CPD. 52,000+ cars per day; both roads are major freeway exits off the 605, 91, and 5 Freeways. • High Barriers to Entry: Anaheim is a supply-constrained, infill trade area with limited sites available for future development creating high barriers to entry, securing the tenants long term growth and success.

Dense, Infill Orange County Demographics • More than 39,000 people located within a 1-mile radius with an • Located just 2 miles south of Knott’s Berry Farm which brings in Average Household Income exceeding $79,000. over 6 million visitors annually.

• More than 261,000 people located within a 3-mile radius with an • Located just 6 miles east of the world-famous Disneyland Park, Average Household Income exceeding $91,500. which brings in over 18.6 million visitors a year, making it the second most visited amusement park in the world. • More than 675,000 people located within a 5-mile radius with an Average Household Income exceeding $95,000. 11 Property Description

ILK MILK

SHOPPING LIST 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

12 3 14 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 Property Description 3430 WLINCOLN AVE, ANAHEIM,CA 92801 YEAR BUILT/RENOVATEDYEAR GENERAL COMMERCIAL BUILDING AREA LAND USE LAND ADDRESS PARKING 135-331-24 1965/2019 26,414 SF 2.04 AC2.04 APN LOT 125

SUBJECT PROPERTY

15 Tenant Overview Lease Abstract

ILK MILK

SHOPPING LIST 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

16 4 Grocery Outlet Company Tenant Overview Facts at a Glance

337 GROCERY OUTLET COMPANY OVERVIEW LOCATIONS

Company Type Publicly Traded

Headquarters Emeryville, $2.29B IN ANNUAL REVENUE Employees 501-1000 nationally

Stock Symbol NASDAQ: GO $399.6M RAISED IN IPO, Credit Rating B2 Positive $150M MORE THAN Website www.groceryoutlet.com PROJECTED

Market Locations: 337 US locations $652.5M Grocery Outlet’s mantra is simple: finding brand-name groceries and farm fresh IN NET SALES, A 13.1% produce at up to 40%-70% off conventional retail prices. All products sold by Grocery Outlet are purchased directly from manufacturers, not other retail INCREASE FROM THE stores. The Grocery Outlet Bargain Market brand currently includes over 330 PREVIOUS QUARTER stores across California, Nevada, Oregon, Idaho, Washington and Pennsylvania.

The company recently (June 2019) began trading on the public market with $20.6M shares launching above its expected pricing for its initial public offering. IN NET INCOME, A Grocery Outlet’s ambitions are rooted in the belief that discount is a long- term trend that will continue to win share from traditional supermarkets—and 58.8% INCREASE FROM has been supported by strong financial growth at Grocery Outlet, including 15 THE PREVIOUS YEAR consecutive years of comparable-store sales improvements and sales that have 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430 more than tripled since 2006. 18 Lease Abstract

Landlord is responsible for roof and structure*

Tenant shall maintain the sprinkler mains and fire risers, the interior portions of the Premises, including, but not limited to HVAC, the sewer, mechanical and electrical plumbing systems, the parking lot, landscaping and common areas located on the Premises. TAXES: Tenant Responsibility CAM: Tenant Responsibility INSURANCE: Tenant Responsibility

*Note: building recently renovated, new 10-year roof warranty will transfer to new owner.

19 Market Overview Demographics

ILK MILK

SHOPPING LIST 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

20 5 ANAHEIM ORANGE COUNTY Anaheim is a city in Orange County, California, part of the Los Angeles metropolitan area. As of 2019 the city had a population of over 336,264, With a population of over 3,170,000, Orange County (OC) is the third most making it the most populated city in Orange County and the 10th-most populous county in California and the second most densely populated county populated city in California. in the state, second to only County. There are thirty-four (34) incorporated cities within the county. Anaheim is the second-largest city in Orange County in terms of land area and is known for being the home of the Disneyland Resort, the This proximity to major thoroughfares and transit centers gives Anaheim’s Anaheim Convention Center, and two major sports teams: the Anaheim residents access to the amenities of both Los Angeles and Orange County. Ducks ice hockey club and the Los Angeles Angels baseball team. Residents are exposed to top tier companies such as Tesla, Edison International, Molina Healthcare and more. Located in the geographic center of Orange County, Anaheim is one of the most visited cities in the United States. Anaheim draws in • Orange County major airport: John Wayne Airport which handles nine visitors through its music venues, major theme parks, sports teams, and (9) million passengers annually through fourteen (14) different airlines. convention center. The city is working to move from away from being a • Orange County is home to several well-known shopping malls including simple tourist destination, however. In recent years, Anaheim has seen , , , Irvine Spectrum, Downtown tremendous growth in its commercial sector, with new developments Disney, and the Outlets at Orange. adding more retail, multifamily, and office to the area. One of the most prominent areas for development is known as the Platinum Triangle. • Orange County is an educational hub containing nine (9) junior colleges, and fourteen (14) four-year universities including Cal State Fullerton, and The Platinum Triangle is a neo-urban redevelopment district surrounding University of California. and including Angel Stadium, Honda Center and the Grove of Anaheim. The Platinum Triangle blends leading-edge business, high-salary • The county is well known for its tourism, it is home to theme parks employment, world class entertainment and residential neighborhoods, Disneyland and Knott’s Berry Farm, as well as forty (40) plus miles of to create a unique opportunity in the heart of Orange County, offering California beaches/coastline. immediate access to the rest of from three freeways and a major transit center.

This proximity to major thoroughfares and transit centers gives Anaheim’s residents access to the amenities of both Los Angeles and rd Orange County. Residents are exposed to top tier companies such as 3 Top Attractions Most Populous County Tesla, Edison International, Molina Healthcare and more. in the Nation Disneyland Theme Park & Resort Rated #2 Knott’s Berry Farm Wealthiest County in Angel Stadium Zestimate Southern California Discovery Cube Orange County The Honda Center ANAHEIM ORANGE COUNTY Anaheim Convention Center Rated #1 The Outlets at Orange Fashion Island 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430 Safest Area in $600,400 $721,400 the Nation South Coast Plaza 22 OC CORPORATION IN THE NEWS OC FACT FILE HEADQUARTERS

26 Min ~10M AVERAGE 26th 54th COMMUTE IN EDUCATION IN JOB GROWTH PASSENGERS AT IN THE US IN THE US JOHN WAYNE AIRPORT (2018) 3% UNEMPLOYMENT RATE 37

2nd 3rd MEDIAN AGE BEST WINTER FAMILY BEST CITY TO 1% VACATION DESTINATION LIVE IN THE US ANAHEIM HOUSING MARKET IN THE US OF US POPULATION th 79 $597,400 $620,000 $590,000 HIGHEST MEDIAN MEDIAN HH INCOME 3% MEDIAN MEDIAN 84th 7th IN THE US OF FORTUNE 500 HOME VALUE LIST PRICE SALES PRICE BEST PLACE FOR BUSINESS BEST FAMILY VACATION & CAREERS IN THE US DESTINATION IN THE US COMPANIES

23 Demographic Comprehensive

POPULATION 1 Mile 3 Miles 5 Miles HOUSEHOLD INCOME 1 Mile 3 Miles 5 Miles 2019 Population - Current Year Estimate 39,205 261,866 675,558 2019 Average Household Income $79,224 $91,588 $95,345 2010 Population - Census 37,209 248,031 643,930 2024 Average Household Income $95,012 $108,553 $112,397 2000 Population - Census 36,487 241,391 628,418 2019 Per Capita Income $24,150 $26,900 $27,834 2010-2019 Annual Population Growth Rate 0.57% 0.59% 0.52% 2024 Per Capita Income $28,787 $31,665 $32,589

AGE GENDER 2019 Median Age 35.90 36.30 36.80 2019 Population 39,205 261,866 675,558 Males 19,031 128,608 332,044 GENERATIONS Females 20,174 133,258 343,513 2019 Population 39,205 261,866 675,558 Generation Alpha (Born 2017 or Later) 1,493 9,630 24,234 MARITAL STATUS 2019 Population 15+ 31,487 211,821 548,333 Generation Z (Born 1999-2016) 9,307 61,463 156,578 Never Married 11,650 77,653 197,992 Millennials (Born 1981-1998) 10,506 69,642 177,485 Married 14,672 105,913 278,194 Generation X (Born 1965-1980) 7,814 53,122 137,728 Widowed 2,018 10,739 28,061 Baby Boomers (Born 1946-1964) 7,375 50,682 133,225 Divorced 3,147 17,516 44,086 Greatest Generations (Born 1945 or Earlier) 2,711 17,326 46,307 DAYTIME POPULATION RACE AND ETHNICITY 2019 Daytime Population 31,329 237,232 600,001 White 16,749 111,426 284,600 Daytime Workers 8,535 96,855 241,332 Black or African American 1,777 9,962 22,606 Daytime Residents 22,794 140,377 358,669 Asian 10,899 77,187 210,622 American Indian or Alaska Native 333 2,206 4,707 LANGUAGE Pacific Islander 344 1,700 3,525 2013-2017 Pop. 5+ by Language Spoken at Home 35,284 241,396 621,004 Other Race 6,862 45,855 117,413 Only English 15,203 106,943 268,241 Two or More Races 2,241 13,530 32,084 Spanish 11,164 71,145 180,732 Hispanic 16,005 102,744 261,371 Other Indo-European Language 1,348 8,789 20,566 Asian-Pacific Island Language 7,061 50,045 143,252 White Non-Hispanic 9,099 63,842 162,196 Other Language 506 4,474 8,214 3430 W LINCOLN AVENUE | ANAHEIM, CA 92801 | ANAHEIM, CA AVENUE W LINCOLN 3430

24 SUBJECT PROPERTY IS LOCATED LESS THAN 1 MILE AWAY FROM KNOTT’S BERRY FARM AND LESS THAN 6 MILES AWAY

FROM DISNEYLAND! 25 Please Contact Us For More Information: Alan Krueger Senior Vice President +1 909 418 2062 [email protected] Lic. 00880814

Vanessa Haddad Associate +1 909 418 2143 [email protected] Lic. 01926324

© 2020 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or i ts affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.