SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

A 28,444 SQUARE FOOT INDUSTRIAL BUILDING SITUATED ON 38,200 SQUARE FEET OF LAND IDEALLY LOCATED IN SAN BERNARDINO COUNTY WITHIN THE INLAND EMPIRE, ONE OF THE FASTEST-GROWING 395 & 401 E Valley Blvd, Colton, CA 92324 & 431 W Valley Blvd, Rialto, CA 92376 POPULATION CENTERS IN THE COUNTRY INVESTMENT ADVISORS BRANDON MICHAELS Senior Managing Director of Investments Senior Director, National Retail Group Tel: (818) 212-2794 Fax: (818) 212-2710 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com TEAM MEMBERS Sean Brandt Ben Brownstein Nicole Cottrell Andrew Leff Matthew Lucks Lauren Sackler Steven Schechter Austin Sreden

CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party re- ceiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified infor- mation 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 aw thorough due diligence investigation. Marcus & Millichap 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 contaminat- ing substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the finan- cial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we be- lieve to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Mar- cus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE TABLE OF CONTENTS Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The pres- ence 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 pur- pose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE- TAILS. 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, 1 2 3 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 PROPERTY OVERVIEW FINANCIAL ANALYSIS AREA OVERVIEW 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.) 2 3 PROPERTY OVERVIEW

5 COLTON

A 28,444 square foot industrial building situated on 38,200 square feet of land ideally located in San Bernardino County within the Inland Empire, one of the fastest-growing population centers in the Country

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale 395-431 E Valley Boulevard, a 28,444 N 9TH ST square foot industrial property spread across three buildings and situated on 38,200 square feet of land located on East Valley Boulevard, East of 10th Street, and just North of the San Bernardino Freeway (I-10), in Colton, CA. 395 East Valley Boulevard is approximately 20,000 square feet, and features 16 foot ceilings. 401 East Valley Boulevard is approximately 8,000 square feet and features 21 foot ceilings. 431 East Valley Boulevard is approximately 900 square feet, and houses the power for the property, 2,000 amps, three phase power. The property also features three roll up doors. 395 & 401 E Valley Blvd, Colton, CA 92324 & 431 W Valley Blvd, Rialto, CA 92376 N 10TH ST

395 E Valley Boulevard is ideally located in San Bernardino within the Inland Empire, one of California’s fastest growing regions. The Inland Empire is an industrial hub, with over 673 million square feet of industrial product, and 21.7 million square feet of industrial product under construction.

The property is currently vacant, allowing an investor the ability to stabilize the asset, or an owner-user the ability to occupy a portion of or the entirety of the property.

E VALLEY BLVD

28,444 SF 38,200 SF 5.53% C-2, COLTON INDUSTRIAL BUILDING SF LAND SF CAP RATE ZONING PROPERTY TYPE

7 6 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 San Bernardino is an industrial hub, with an industrial inventory of 92.5 million square feet, which sits within the N MT VERNON AVE larger Inland Empire, featuring 21.7 million square feet of industrial product currently under construction

395 E Valley Boulevard is ideally located in Colton, California, which is within San Bernardino County, and the larger Inland Empire. The property’s location provides exceptional access to surrounding areas due to it’s immediate proximity to the San Bernardino (I-10) and Riverside (I-215) Freeways. The property is located 5.5 miles from the Rialto Fulfillment Center, a 615,000 square foot project leased to Amazon. The property is located near a variety of industries and retailers, including: NAPA Auto Parts, Starbucks, Stater Bros. Markets, Denny’s, and McDonalds.

Colton, California is nicknamed the “Hub” city, and was known as the transportation hub for San Bernardino due to “Colton Crossing,” which was one of the busiest 395 & 401 E Valley Blvd, Colton, CA 92324 & 431 W Valley Blvd, Rialto, CA 92376 at-grade railroad crossings in the Country. Colton is part of San Bernardino County, the largest county in the continuous country by area. The county features approximately 92.5 million square feet of industrial product, with 5.1 million square feet currently under construction. The majority of the submarket’s industrial tenant base involves logistics companies and major retailers.

The property is located within the larger Inland Empire. The region attained it’s name due to it’s location approximately 60 miles inland from Los Angeles and the Pacific Ocean. Some of the country’s largest manufacturing companies have their distribution facilities within the region, including Toyota Motor Corporation, North American Parts and Logistics Distribution, and APL Logistics. The region has an inventory of 673 million square feet of industrial product, with 21.7 million square feet more under construction.

INLAND CENTER LOMA LINDA SAN BERNARDINO KAISER PERMANENTE AMAZON SORT SHOPPING MALL UNIVERSITY INTERNATIONAL AIRPORT REDLANDS CENTER ONT 5 2.1 MILES 4.8 MILES 5.7 MILES 6.4 MILES 6.5 MILES E VALLEY BLVD E VALLEY

8 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 9 431 W Valley Blvd 401 E Valley Blvd UPGRADED INDUSTRIAL BUILDING IN STRONG DEMOGRAPHICS CENTRALIZED INLAND EMPIRE LOCATION

• Immediate proximity to both the San Bernardino Freeway • Over 14,700 people located within 1 mile of the property, (I-10) and Riverside Freeway (I-215) 99,900 people within 3 miles, and 294,500 people within 5 LIG HTS • Proximate to the San Bernardino International Airport and miles Redlands Municipal Airport • Approximately 3,871 households are located within 1 mile of • Located within the Inland Empire, a premier Southern the property, 28,900 within 3 miles, and 81100 within 5 miles California industrial region and one of the fastest-growing • Average household income within 1 mile of the property is population centers in the Country approximately $54,100, $64,500 within 3 miles, and $62,900 • 21-foot ceilings, 2,000 amp, three phase power, and three within 5 miles roll-up doors

IDEALLY LOCATED IN THE INDUSTRIAL IDEAL VALUE-ADD OR OWNER-USER HUB OF SAN BERNARDINO OPPORTUNITY 395 E Valley Blvd • The county features approximately 92.5 million • The property is currently vacant, allowing an investor the square feet of industrial product, with 5.1 million opportunity to lease and stabilize the property square feet currently under construction.

INVESTMENT HIGH • An Owner-User would be able to occupy part or the entirety • The majority of the submarket’s industrial tenant of the property base involves logistics companies and major retailers. • 5.5 miles from the Rialto Fulfillment Center, a 615,000 PROXIMATE TO NUMEROUS square foot project leased to Amazon BUSINESSES AND RETAIL AMENITIES

• Proximate to Ashley HomeStore’s corporate office, Kaiser Permanente Colton Medical Offices, NAPA Auto Parts, and Walmart Supercenter • Near to Starbucks, Ross Dress For Less, Goodwill Southern California, McDonalds, 7-Eleven, TGI Fridays, and The Home Depot

11 10 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 12 |395 &401EVALLEY BOULEVARD,COLTON, CA92324 &431WVALLEY BOULEVARD, RIALTO,CA 92376 PROPERTY HIGHLIGHTS 395 &401EValley Blvd,Colton,CA92324&431WValley Blvd,Rialto,CA92376 ADDRESS: APN NUMBER: BUILT:YEAR RATE: CAP PRO FORMA (LAND): PRICE/SF (BUILDING): PRICE/SF SF: LAND SF: BUILDING PRICE: PARCELS:NO. OF TYPE OF OWNERSHIP: OF TYPE TYPE: PROPERTY ZONING: PROPERTY INFORMATION 0162-191-29-0000, 0162-191-07-0000, 395 & 401 EValley395 &401 Boulevard & 431 WValley& 431 Boulevard 0162-191-06-0000 Colton, CA 92324 CA Colton, Rialto, CA 92376 Rialto, CA C-2, Colton C-2, Fee Simple Fee $3,500,000 38,200 SF 38,200 28,444 SF 28,444 Industrial 7.97% 1946 $123 $92 3 PRO FORMA CAP RATE CAP PRO FORMA PRICE/SF (BUILDING) PRICE/SF 7.97% PRICE/SF(LAND) $123 $92 395 & 401 EValley395 &401 Blvd 431 WValley431 Blvd 395 & 401 EValley395 &401 Blvd 13 REVISIONS DATE: BY:

SITE PLAN

395 & 401 E Valley Blvd, Colton, CA 92324 & 431 W Valley Blvd, Rialto, CA 92376 ARCHITECTURE PROPERTY DETAILS PROPERTY JONATHAN L. ZANE

SITE SQUARE FOOTAGES YEAR BUILT

The subject property is located near The total building square footage The property was built in 1946. the northeast corner of E Valley is 28,444 SF. The total land square Boulevard and N 12th Street. footage is 38,200 SF.

S

T A A NO.-C 11,046 I T REN. 8-31-21 N E R O O F APN NUMBERS TRAFFIC COUNTS ZONING F CA L I

395 E Valley Boulevard: The traffic counts along E Valley The zoning is C-2, Colton. 0162-191-29-0000 Boulevard are over 35,000 vehicles 401 E Valley Boulevard: per day. 0162-191-07-0000 431 W Valley Boulevard: 0162-191-06-0000 LOCATED AT: Colton, Ca. 92324 FLOOR PLAN 395 E. Valley Blvd. 15

14 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 Hydroponic Store A PROJECT FOR: Local Code: APPLICABLE CODES: All new work shall comply with listed codes 2018 I.B.C.2018 U.M.C.2018 U.P.C.2018 N.E.C. 2019 C.B.C. 2018 I.F.C. 2019 C.M.C. 2019 C.P.C. 2019 C.E.C. 2019 C.F.C. Model Code: 2019 California Energy Code 2019 California Residential Code 2019 Green Standards and all current local state ammendments. : project only and are the sole property of whatsoever or reproduced without the written NOTICE may not be used for any other purpose Jonathan L. Zane, Architect. These designs The designs and ideas indicated by these drawings were created for the use of this consent of Jonathan L. Zane, Architect DATE : 03-05-20

SCALE :1/16" = 1'-0"

DRAWN : R. Lee

JOB : 20-015

SHEET : A-1 FINANCIAL ANALYSIS RENT ROLL PRICING ADDRESS SF SF % PRO FORMA RENT PRO FORMA RENT/SF

Vacant 28,444 100% $28,444.00 $1.00 PRICE: $3,500,000

TOTAL 28,444 100% $28,444.00 $1.00 BUILDING SF: 28,444 SF

LAND SF: 38,200 SF

PRICE/SF (BUILDING): $123

PRICE/SF (LAND): $92

PRO FORMA OPERATING DATA PRO FORMA CAP RATE: 7.97% INCOME AND EXPENSES PRO FORMA PRO FORMA EXPENSES PER YEAR PER SF FINANCIAL ANALYSIS PRO FORMA NOI: $278,805 Scheduled Lease Income $341,328 Taxes @1.25% $43,750 $1.51

Effective Gross Income $341,328 Insurance $8,533 $0.30

Vacancy @3% $10,240 TOTAL $52,283 $1.84/$0.15

Expenses $52,283

Net Operating Income $278,805

18 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 19 COMPARABLES ANALYSIS SALES COMPARABLES 395 & 401 E Valley Boulevard & 431 W Valley Boulevard BUILDING PRICE/SF PRICE/SF 5 ADDRESSES PRICE LAND SF SALES DATE SF (BUILDING) (LAND) 3 1 584 Inland Center Dr 1 4 6 2 12438 Michigan St 584 Inland Center Dr 1 $3,640,000 27,618 $131.80 91,476 $39.79 1/31/20 San Bernardino, CA 92408 3 385 W Valley St

4 255 E Drake Dr

12438 Michigan St 2 $2,169,000 12,458 $174.11 196,020 $11.07 1/17/20 5 216 S Arrowhead Ave Grand Terrace, CA 92313 2 6 654 S Lincoln Ave

385 W Valley St 3 $3,200,000 16,950 $188.79 98,445 $32.51 12/4/19 San Bernardino, CA 92401 SALES COMPARABLES | PRICE/SF COMPARABLES ANALYSIS COMPARABLES 255 E Drake Dr 4 $1,250,000 12,392 $100.87 28,706 $43.54 9/13/19 San Bernardino, CA 92408 $146 AVG PRICE/SF (BUILDING)

216 S Arrowhead Ave 5 $2,300,000 15,026 $153.07 124,146 $18.53 3/15/19 San Bernardino, CA 92408

654 S Lincoln Ave 6 $1,600,000 12,519 $127.81 28,314 $56.51 2/5/19 $34 San Bernardino, CA 92408 AVG PRICE/SF (LAND)

TOTAL $2,359,833 16,161 $146.08 94,518 $33.66 -

22 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 23 RENT COMPARABLES 395 & 401 E Valley Boulevard & 431 W Valley Boulevard BUILDING PRICE/SF PRICE/SF ADDRESSES PRICE LAND SF SALES DATE SF (BUILDING) (LAND) 4 1 1090 S 8th St

2 21935 Van Buren St 1090 S 8th St 1 14,670 2,834 $0.90 $10.80 MG Jan-21 Colton, CA 92324 3 2275 La Crosse Ave - Building 2 5 1 4 615 Oak Ct

5 458 E Commercial Rd - Bldg L 21935 Van Buren St 2 39,928 1,416 $0.95 $11.40 IG Nov-20 3 Grand Terrace, CA 92313 2

2275 La Crosse Ave - 3 Building 2 22,751 1,550 $0.89 $10.68 MG Aug-20 Colton, CA 92324 RENT COMPARABLES | RENT/SF/MON COMPARABLES ANALYSIS COMPARABLES

615 Oak Ct 4 2,980 2,980 $1.01 $12.12 MG Jul-20 $0.93 San Bernardino, CA 92410 AVG RENT/SF/MON

458 E Commercial Rd - 5 Bldg L 15,223 15,223 $0.91 $10.92 NNN Jun-20 San Bernardino, CA 92408 $11.18 TOTAL 19,110 4,801 $0.93 $11.18 - - AVG RENT/SF/YR

24 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 25 AREA OVERVIEW COLTON, CA Colton is a city in San Bernardino County, California, United States. Nicknamed "Hub City", Colton is located in the Inland Empire region of the state and is a suburb of San Bernardino, approximately 4 miles (6.4 km) south of the city’s downtown. The population of Colton is 52,154 according to the 2010 census, up from 47,662 at the 2000 census.

Colton is the site of Colton Crossing, which was one of the busiest at-grade Arrowhead Regional Medical University of Riverside (UCR) railroad crossings in the United States. The crossing was installed in 1882 AREA OVERVIEW by the California Southern Railroad to cross the Southern Pacific Railroad KEY MARKET HIGHLIGHTS MAJOR EMPLOYERS tracks while building northward from San Diego. As a result of railroad acquisitions and mergers, this became the point at which the Burlington Northern Santa Fe's • Due to its central location and extensive freeway system, the Inland Empire • University California Riverside (UCR) "Southern Transcontinental Route" crossed the Union Pacific's "Sunset Route". As serves as a major logistics distribution center. As the majority of ground • University of Redlands traffic on each line began to soar in the mid-1990s, fueled largely by the vast increase shipments entering or leaving Southern California pass through the Inland • Amazon Fulfillment Center – San Bernardino in imports passing through the ports of Los Angeles and Long Beach, the primitive Empire, many Fortune 500 companies maintain logistical hubs in the area, Sprouts Farmers Market Distribution Center crossing became a serious bottleneck. On August 28, 2013, the at-grade crossing including Wal-Mart Stores, Skechers, Procter & Gamble, Home Depot, • was officially replaced by a fly-over that raises the east–west UP tracks over the Target, Walgreens, Lowe’s, Staples, and Kohl’s. • Stater Bros Distribution Center north–south BNSF tracks. • Arrowhead Regional Medical Center is a state-of-the-art 456-bed facility • Loma Linda University Medical Center Education Transportation featuring the newest technology in the field of patient care. The Medical • Arrowhead Regional Medical Center

• California State University, San Bernardino • I-10 (San Bernardino Freeway) Center is host to a 24-hour Emergency Department, Level II Trauma Center, • VA Loma Linda • California University of Science and Medicine • I-215 (San Bernardino Freeway, Barstow Freeway) transplant services, three Family Health Centers and the only Burn Center • UEI College • SR 66 (5th Street) serving the region. • American Sports University • SR 18 (Waterman Avenue) • The University of California at Riverside (UCR) has an annual economic • San Bernardino Valley College • SR 210 (Foothill Freeway) impact exceeding $1 billion. Annual spending by UCR, the Inland Empire’s Major Employers Recreation only public research university, supports 14,000 jobs statewide. In addition, • BNSF Railway Company • The Arrowhead Springs Hotel and Spa UCR student spending generates nearly $70 million, supporting more than • California State University, San Bernardino • The San Bernardino Convention Center 2,000 jobs. • Community Hospital – San Bernardino • Casino San Manuel • San Bernardino County Superintendent of School • The Glen Helen Regional Park • San Bernardino County Sheriff • Perris Hill Park

28 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 29 DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2020 Total Population: 14,777 99,958 294,546

Population Growth 2020-2025 0.5% 0.6% 0.7% 54,415 0.397% COLTON Average Age: 36.90 38.40 37.80 $86,476 $58,060 POPULATION ANNUAL POPULATION GROWTH 2020 Total Households: 3,871 28,984 81,171 CALIFORNIA AVERAGE HH INCOME MEDIAN HH INCOME Avg Household Size: 3.7 3.4 3.5 WITHIN 3-M RADIUS WITHIN 3-M RADIUS

2020 Owner Occupied Households: 1,776 14,804 40,796 AREA OVERVIEW EDUCATION 2020 Renter Occupied Households: 2,095 14,180 40,376

2020 Median Household Income $43,667 $51,496 $48,147

2020 Average Household Income $54,176 $64,500 $62,963 2020 HOUSEHOLDS BY HOUSEHOLD INCOME 117,039 361,554 < $25,000 1,017 6,451 20,542 OWNER OCCUPIED HOUSEHOLDS RENTER OCCUPIED HOUSEHOLDS WITHIN 5-M RADIUS WITHIN 5-M RADIUS 31.6% 27.5% 20.7% 17.3% $25,000 - 50,000 1,049 7,649 21,139 LESS THAN HIGH SOME COLLEGE OR HIGH SCHOOL OR BACHELORS SCHOOL ASSOCIATES DEGREE GED DEGREE OR HIGHER $50,000 - 75,000 886 6,199 15,694

$75,000 - 100,000 368 3,536 9,878

$100,000 - 125,000 351 2,066 5,901 ECONOMY $125,000 - 150,000 110 1,289 3,271 The City of Colton is proud of its growing role as a center for new business and residential and employment opportunities in the County of San $150,000 - 200,000 74 1,201 2,799 1,217,932 62,227 Bernardino. A comprehensive transportation network, available underdeveloped land, a skilled, ready-to-work labor pool, and a viable partnership POPULATION WITHIN 5-M RADIUS BUSINESSES WITHIN A 5-M RADIUS between business, city, and county government contributes vitality to an already established commerce. $200,000+ 14 593 1,947

30 | 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 395 & 401 E VALLEY BOULEVARD, COLTON, CA 92324 & 431 W VALLEY BOULEVARD, RIALTO, CA 92376 | 31 SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

BRANDON MICHAELS TEAM MEMBERS Senior Managing Director of Investments Sean Brandt Senior Director, National Retail Group Ben Brownstein Tel: (818) 212-2794 Nicole Cottrell Fax: (818) 212-2710 Andrew Leff Matthew Lucks [email protected] Lauren Sackler 395 & 401 E Valley Blvd, Colton, CA 92324 & 431 W Valley Blvd, Rialto, CA 92376 License: CA #01434685 Steven Schechter www.BrandonMichaelsGroup.com Austin Sreden