Jurupa Spectrum Entertainment Center 8012-8082 Limonite Avenue, Jurupa Valley, California a ±124,817 Square Foot Multi-Tenant Entertainment Center

Jurupa Spectrum Entertainment Center 8012-8082 Limonite Avenue, Jurupa Valley, California A ±124,817 Square Foot Multi-Tenant Entertainment Center

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Lee & Associates – Ontario and should not be made available to any other person or entity without the written consent of Lee & Associates-Ontario. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due dili- gence investigation. Lee & Associates-Ontario has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenants plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable, however, Lee & Associates-Ontario has not verified, and will not verify, any of the information contained herein, nor has Lee & Associates-Ontario conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

1. EXECUTIVE SUMMARY • The Offering

2. PROPERTY INFORMATION • Description • Investment Highlights • Site Plan • Aerial • Map 3. FINANCIALS & TENANCY • Five Year Cash Flow Projections • Rent Roll • Tenant Profiles *TENANT FINANCIALS AVAILABLE UPON REQUEST 4. LOCATION • Inland Empire Overview

Executive Summary

Lee & Associates Ontario is pleased to offer to qualified investors an opportunity to purchase The Jurupa Spectrum Center, Jurupa Valley’s primary entertainment destination. The property is comprised of ±124,817 square feet of gross leasable area dominated by a mix of national name brand retailers, such as Walgreens, Untied States Postal Service, Starbucks, Papa Johns, AT&T, and Big 5. In addition, there is a complimentary mix of well established regional and local tenants such as Tristone Cinema Group (6 locations), Juan Pollo (27 locations) and Healthy Body Fitness Center. The property is being offered below replacement cost, at a low per square foot price of approximately $198.00 PSF. Approximately 85% of the current rent role is backed by name brand credit, lengthly lease terms and steady rental escalations, providing a Buyer with stable appreciation ajust. The center is supported by strong tenants that offer long-term upside potential through rental escalations, additional lease-up and market growth. In addition, DaVita Dialysis just completed a brand new freestanding medical building adjacent to the United States Postal Service, attracting additional traffic to the center. If desired, an investor can spin off the outparcels at a much lower Cap Rate/Higher Price PSF, thereby lowering their PSF basis. Situated on 15.44 acres, there is a great deal of upside in expanding the project by constructing additional buildings within the excess parking lot areas. This is a unique opportunity to purchase a well-maintained, stabilized entertainment center at below replacement cost. Comprised of a dominated mix of national and regional credit tenants, and is at a much lower price per square foot than comparable. As Jurupa Valley’s primary retail entertainment attraction, this is an investor’s opportunity to own a premier trophy asset.

Offering Summary

(Contact Lee & Associates - Ontario for Further Details)

Property Information

Shopping Center Name - Jurupa Spectrum Entertainment Center

Property Address - 8012 - 8082 Limonite Avenue, Jurupa Valley, CA

Number of Tenants - 22

Total Project Building SF - 124,817 SF

Total Land Size (10 Parcels Totaling)- ±672,564 SF (15.44Acres)

Total Parking Spaces - ±1,100 Spaces

Major Tenants - Walgreens, Sprint, Starbucks,Big 5 Sporting Goods, Davita, Tristone 14 Cinemas, AT&T, United States Postal Service, Sprint, T-Mobile, Juan Pollo, Papa John’s and Wing Stop

Traffic Counts - ±151,000

Market - Inland Empire

Premier Area Entertainment Destination: Express Way Accessibility:

• Theater-Anchored Destination Center, Well Maintained • Conveniently surrounding I-15, CA-60 and CA-91 Freeways • 100% Occupancy • Mix of National and Regional Credit - Includes Walgreens, Rapidly Growing: Starbucks, TriStone Cinema, USPS, Big Five and Many More • Majority of Long Term NNN with Stable Rental Increases • Resilient Location in Fast Growing Riverside Sub Area • Main Retail Corridor - Jurupa Valley's #1 Retail Center • Jurupa Valley has a population of ±103,541 Surrounding Retailers: Break Up Value Add: • Kmart, Rite Aid, 7-Eleven, Chase Bank, Taco Bell, Del Taco, Wells Fargo Bank, Firestone Auto Care, Circle K, KFC, • Low Project Basis: A low basis translates to very competitive Subway, Stater Brothers, Crunch Fitness and Many More NNN Expenses adding attractive market rates thereby out the Upside Potential competition • Offered at $198 PSF which is well below replacement cost • Retail Outparcels Can Be Spun Off at a very low cap rate Signalized Intersection Location: • Opportunity to Reduce Basis

• Limonite Avenue is a major high traffic pass-thru • Clay Avenue is a busy cross-over street Expansion Development: • Corner Intersection allows maximum visibility • Major Street Visibility with Three Separate Points of Access • Two additional pads offer the ability to expand the center by • Includes Three Separate Monument Signs with Excellent constructing additional buildings Visibility • Or sell off the pads ot a developer or investor • With ±1,100 Parking Spaces the center has abundant room for High Density Retail Trade Area: growth

• Outparcel: Walgreens (NYSE: WAG) - S&P Rated BBB - Investment Grade • Starbucks Drive-Thru attracts thousands of visitors per week • With 14 Screens, the First Tier (TriStone Cinema) Theatre Serves Beer and Wine • United States Postal Service provide major foot traffic and exposure to the center

Health & NAP Body Fitness **

. Clay St. a Dr NAP laz The Beach Brewery P nza Pending... A De T-Mobile Impluse Fashion Vape Roots NAP Papa John’s Sprint Taco Villa Crepelicious Nail Club Juan Pollo

** Ground Lease Only

** Limonite Ave.

NAP

Future Pads

Aerial

NAP

El Palomino Dr.

Clay Street

Limonite Avenue

Subject Property

FINANCIALS & TENANCY

Address/Suite # Tenant Square Feet Rent NNN Monthly Rent Options Lease Lease Cam Fee Rent / SF Escalations From To

8012 *Verizon * $1,723.76 $0 - - - - Limonite ±5,600

8022-101 Juan Pollo ±1,252 $1,693.36 $567.81 $1.35 2% Annually (2) 5 Year Options 8/15/2014 8/31/2024 Limonite Annual CPI Increase 8022-102 Nail Club $2,142.00 $485.27 $2.04 2% Annually - 12/31/1999 8/31/2023 Limonite ±1,048

8022-103 Crepelicious ±1,201 $2,575.00 $556.11 $2.08 3% Annually (2) 5 Year options 5/1/2016 10/31/2023 Limonite at FMV

8022-104 Taco Villa ±2,054 $2,903.00 $951.09 $1.41 3% Annual increases - 6/1/2016 5/31/2026 Limonite starting 7/01/2019

8022-106 Sprint ±1,179 $1,739.24 $545.93 $1.43 3% Annual increases (2) 4 Year options 10/1/2014 10/31/2018 Limonite including options at 3% greater than previous Papa Johns ±1,600 $3,120.00 $740.87 - 1.5% Annually (2) 5 Year options 2/1/2018 1/31/2023 8022-107 at FMV Limonite Vape Roots ±963 $1,578.00 $445.91 $1.59 3% Annually (1) 5 Year option at 2/1/2015 2/28/2020 8022-108 3% greater than Limonite previous year

Impluse Fashion ±1,619 $1,862.00 $749.66 $1.15 3% Annually (2) 5 Year options 8/1/2017 7/31/2020 8022-109 at 3% greater than Limonite previous year

T-Mobile ±1,486 $2,415.00 $728.00 $1.63 3% Annual increases (2) 5 Year options 8/1/2017 7/31/2022 8022-110 including options at 3% greater than Limonite previous

Pending ±2,213 $3,873.00 $1,017.89 $1.75 2% Annually (2) 5 Year 3/1/2018 2/28/2023 8022-111 options at FMV Limonite The Beach Restaurant and ±5,337 $6,017.00 $2,455.00 $1.09 3% Annually (1) 5 Year 2/14/2011 2/28/2027 8022-113 Brewery option at FMV Limonite

Address/Suite # Tenant Square Feet Rent NNN Monthly Rent Options Lease Lease Cam Fee Rent / SF Escalations From To 8032 Tristone Cinema Group LLC ±60,440 *$52,333.00 Gross Lease $0.76 7% Increase 10/20 and - 10/1/2011 11/30/2031 Limonite every 3 years thereafter plus percentage rent 8042-101 Starbucks Corporation ±2,178 $10,587.50 $1,067.22 $4.86 2% Y6, 3.5% Y11, 10% Y16, (3) 5 Year 8/4/2017 8/31/2027 Limonite 10% Y20 options

8042-102 WingStop ±1,377 $3,786.75 $675.00 $2.75 10% Y7, 15% Y11 & Y16 (3) 5 Year 9/1/2017 10/31/2023 Limonite options

8044 Walgreens ±14,820 $14,666.67 $4,297.80 $0.99 10/1/24 - $16,133 - 10/1/2005 9/30/2020 Limonite & Multiple Others (4) 3 Year 8/1/2011 7/31/2020 8052-101 AT&T ±1,179 $2,358.00 $545.93 $2.00 - options at Limonite CPI annual increases 8052-102 Big 5 Sporting Goods ±10,500 $15,000.00 - $1.43 Each Option Rate is 10% (4) 5 Year 4/1/2015 1/31/2021 Limonite Greater - First Option options 2/1/2021 8080 *Davita *±10,000 - $2,079.19 $0 - - - - Limonite

8082-101 United States Postal Service ±8,906 $12,499.92 $4,179.88 $1.47 - (2) 5 Year op- 7/15/2017 7/14/2027 Limonite tions at FMV

8082-102Healthy Body Nutrition & Fitness Center ±5,013 $6,467.00 $2,456.00 $1.29 - (2) 5 Year 12/1/2017 11/30/2027 Limonite options at FMV 8062 Future Pad ------Limonite

8072 Future Pad ------Limonite - - - 11/1/2016 M-T-M Parking *Valley Patch Farmers Market - - - Lot

Totals - ±140,417 $147,616.44 $26,268.32 - - - - -

*8012 & 8080 Limonite Avenue are not part of the sale, however they do share a portion of parking lot and common area *Valley Patch Farmers Market has 1-2 outdoor events per week. The event attracts free advertisement for maintenance fees. all the tenants in the center. *Tristone Cinema's Annual Base Rent is $549,552, in addition they pay a percentage rent based on the annual gross sales, in 2017 there percentage rent paid was $78,442.

For More Information, Please Contact: Lee & Associates Barret Woods, Senior Vice President - Principal 3535 Inland Empire Blvd., Ontario, CA 91764 (909) 373.2921 | [email protected] | Lic # 01355354 www.lee-assoc.com Jurupa Spectrum Entertainment Center 24 8012-8082 Limonite Avenue, Jurupa Valley, CA Lease To Five Year Cash Flow Projections Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow Projection *Potential Base Rental Revenue $1,771,397 $1,806,825 $1,842,961 $1,879,821 $1,917,417 Estimated Vacancy N/A 2% 3% 3% 3% Absorption & Turnover Vacancy - $36,136 $55,289 $56,395 $57,523 Scheduled Base Rental Revenue $1,771,397 $1,770,689 $1,787,672 $1,823,426 $1,859,894 NNN Expense Reimbursement Revenue - - - - - (P-Tax, Insurance, CAMs, Property Management) $315,220 $312,055 $315,524 $319,057 $322,626 EFFECTIVE GROSS REVENUE $2,086,617 $2,082,744 $2,103,196 $2,142,483 $2,182,520 Property Taxes $266,780 $266,780 $269,448 $272,142 $274,864 Insurance $28,856 $28,856 $29,145 $29,436 $29,730 Cleaning $40,201 $40,201 $40,603 $41,009 $41,419 Utilities $113,621 $113,621 $114,757 $115,905 $117,064 Repairs & Maintenance $30,000 $30,000 $30,500 $31,000 $31,500 Misc. $15,000 $15,000 $15,500 $16,000 $16,000 Landscaping, Pest & Grounds $49,621 $49,621 $50,117 $50,618 $51,125 Roof & HVAC $20,000 $20,000 $20,500 $20,500 $21,000 Security $56,160 $56,160 $56,722 $57,289 $57,862 Marketing $5,000 $5,000 $5,000 $5,000 $5,000 Property Management @ 3% of BRV $53,142 $53,142 $53,630 $54,703 $55,797 Total Operating Expenses $678,381 $678,381 $685,922 $693,602 $701,361 NET OPERATING INCOME $1,408,236 $1,401,224 $1,418,274 $1,448,881 $1,481,159 Running Cap Rate 5.75% 5.74% 5.81% 6% 6.1%

AT&T Inc. is an American multinational conglomerate holding company, headquartered at Whitacre Tower in downtown Dallas, Texas. AT&T is the world's largest telecommunications company. AT&T is the second largest provider of mobile telephone services and the largest provider of fixed telephone services in the United States, and also provides broadband subscription television services through DirecTV; combined with AT&T's leg- acy U-verse service, this also makes AT&T the largest pay television operator. AT&T is the second-largest company in Texas, behind ExxonMobil. As of February 2017, AT&T is the 12th largest company in the world (non-oil and overall) as measured by a composite of revenues, profits, assets and market valuation. AT&T is the largest telecommunications company in the world by revenue. As of 2017, it is also the 21st-largest mobile telecom operator in the world, with 138.8 million mobile customers. AT&T was ranked at #4 on the 2017 rankings of the world's most valuable brands published by Brand Finance.

For Further Information Visit - www.att.com

T-Mobile As America's Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consum- ers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless expe- riences to 69.6 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS.

For Further Information Visit - www.t-mobile.com

Big 5 Sporting Goods is one of America's top retailers of name brand sporting goods and accessories. As of January 1, 2017, Big 5 had 433 locations spread throughout 11 western states.

They provide a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. Our product mix includes athletic shoes, appar- el and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf,winter and summer recreation and roller sports.

For Further Information Visit - big5sportinggood.com.com

In 2014 the company agreed to purchase the remaining 55% of Switzerland-based Alliance Boots that it did not already own to form a global business. Under the terms of the purchase, the two companies merged to form a new holding company, Walgreens Boots Alliance Inc., on December 31, 2014. Wal- greens became a subsidiary of the new company, which retains its Deerfield headquarters and trades on the Nasdaq under the symbol WBA.

For Further Information Visit - www.walgreens.com

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of November 2016, it operates 23,768 locations worldwide.

Starbucks is considered the main representative of "second wave coffee", initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.

Starbucks locations serve hot and cold drinks, whole-bean coffee, micro-ground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select "Star- bucks Evenings" locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores.

For Further Information Visit - www.starbucks.com

The U.S. Mail traces its roots to 1775 during the Second Continental Congress, when Benjamin Frank- lin was appointed the first postmaster general. The Post Office Department was created in 1792 from Franklin's operation, elevated to a cabinet-level department in 1872, and transformed in 1971 into the U.S. Postal Service as an independent agency.

The USPS as of February 2015 has 617,254 active employees and operated 211,264 vehicles in 2014. The USPS is the operator of the largest civilian vehicle fleet in the world. The USPS is legally obligated to serve all Americans, regardless of geography, at uniform price and quality. The USPS still has exclusive access to letter boxes marked "U.S. Mail" and personal letterboxes in the United States, but now has to compete against private package delivery services, such as United Parcel Service and FedEx.

For Further Information Visit - www.usps.com

Over 5,000 restaurants worldwide—including more than 1,600 international restaurants in 45 countries and territories. We thank you, our valued customers, for voting us #1 in customer satisfaction and product quality among QSR-pizza brands in 2017.

With a strong track record of digital "firsts" that have made ordering easy for customers, Papa John's has created a digital experience that customers love. Our digital and mobile channels now account for more than 50 percent of Papa John's total U.S. sales (delivery and carryout), making us the first in the industry to surpass this milestone!

Even after over 30 years, what makes Papa John's different is our drive to be the best. We continue to make investments in our ingredients for our customers and stay true to our vision: Better Ingredients. Better Pizza.

For Further Information Visit - www.papajohns.com

Sprint is the 4th Largest Mobile Network Operator in the United States. The Sprint network serves more than 54 million customers. The company offers services through the various subsidiaries under Boost Mobile, Virgin Mobile and Assurance Wireless.

Sprint has over 30,000 employees and over 4,500 stores throughout the United States, which has made it one of the largest retailer. Not to mention, the stores that carry their subsidiaries of Boost Mobile, Virgin Mobile and Assurance Wireless.

Sprints origins began in 1899 in Abilene, Kansas and since its start, it has only continued to grow and dominate.

For Further Information Visit - www.sprint.com

Tristone Cinemas is a Cinema Group located within Southern California, with locations in Brea, Palm Desert, Rancho Cucamonga, Riverside, Simi Valley and Temecula. Tristone Cinema Group has been one of California's leading entertainment theaters providing viewers with a must see experience for over 10 years.

TriStone Cinema has began to upgrade and remodel their locations to now provide the re- laxed reclined seating and in house alcoholic beverage services for their adult viewers.

For Further Information Visit - www.tristonecinemas.com

Juan Pollo was founded right here in Southern California by Albert Okura. Albert is a philan- thropist and is active in trying to revitalize Historic Route 66. Together with his family, Albert opened their first restaurant location in January, 1984 in Ontario, California and the rest is fast food history.

To date, the restaurant has spanned more than 26 locations throughout Southern California, most of them located within the Inland Empire. Albert's goal is to ultimately turn his Juan Pollo chain into a national and international chain. His plan is to continue to build his empire one restaurant at a time.

For Further Information Visit - www.juanpollo.com

We’re not in the wing business. We’re in the flavor business. It’s been our mission to serve the world flavor since we first opened shop in ’94, and we’re just getting started.

1997 saw the opening of our first franchised Wingstop Inc. location, and by 2002 we had served the world one billion wings. It’s flavor that defines us and has made Wingstop Inc. one of the fastest growing brands in the restaurant industry.

Wingstop Inc. is the destination when you crave fresh never faked wings, hand-cut seasoned fries and any of our famous sides. For people who demand flavor in everything they do, there’s only Wingstop Inc. – because it’s more than a meal, it’s a flavor experience.

For Further Information Visit - www.wingstop.com

Location

Jurupa Valley was incorporated in July of 2011, making it the 482nd City in California and the 28th City in Riverside County. Today is a mix of high and low-density residential development, rural farming and other ag- ricultural activities, and a mix of commercial retail and industrial activity. Two primary transportation corridors traverse the Jurupa Valley area, Interstate 15 which runs north and south, and State Highway 60, which runs east and west. It has been in recent years that residential development and economic activity has increased, in particular in the areas adjacent to the I-15 and Hwy 60. The City has significant capacity for expansion of both residential and commercial development activity in the future. The city covers a 44-square mile area encompassing the communities of Jurupa Hills, Mira Loma, Glen

Avon, Pedley, Indian Hills, Belltown, Sunnyslope, Crestmore Heights and Rubidoux.

The Inland Empire, also known as “The Victoria Gardens Mall IE,” is an area approximately 60 miles from north to south and some 50 miles wide. It spans Riverside and San Bernardino Coun- ties. This is an area that is roughly 2/3rds the size of Connecticut. The area is surrounded by mountain ranges and hills on all sides, with only a few natural passes to Los Angeles and Orange County to the West. San Diego County lies to the South and Palm Springs to the East. The Inland Empire is a region east of Los Angeles, covering more than 27,000 square miles of Riverside and San Bernardino Counties. The area has a population of approximately 4 Million people. Originally a major center of agriculture, the Inland Empire now is a mix of suburban and rural areas strong in distribution, tourism, industrial and commercial development and civic orga- nizations. Citizens Bank Arena

*Population:

2010 Population: 95,005

2013 Population: 99,649

2016 Population: 103,541

*Household Income:

2015 Average Household Income: $57,749

*Within a 3 Mile Radius