Fallas @ Somersville Towne Center Is a 75,490 Square Foot Single Story

OFFERING MEMORANDUM

INVESTMENT ADVISORS

Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 04 [email protected] Executive CA License: 01434685 Summary Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] 12 CA License: 01948233 Property Overview John Andreasen Investment Associate National Retail Group Tel: 559.476.5585 [email protected] CA License: 02093301 18 Area Overview 38 FINANCIAL ANALYSIS The Offering

Fallas @ Somersville Towne Center is a 75,490 square foot single story retail box ideally located in the Somersville Towne Center, a 501,259 square foot regional shopping mall strategically positioned in one of the fastest growing areas of the San Francisco Bay area in Antioch, CA The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale Fallas @ Somersville Towne Center located at 2602 Somersville Road, a 75,490 square foot single story retail box situated on 83,695 square feet of land in the Somersville Towne Center in the burgeoning east Contra Costa County sub-market of Antioch, CA.

The subject property is currently occupied 24 Hour Fitness. The shopping mall by Fallas, a family-owned company that features a number of national retailers, was first established in 1962 and which including Bath & Body Works, Foot has expanded into 85 stores in California, Locker, Starbucks, Journeys, and Champs Nevada, New Mexico, Arizona, Texas, and Sports. The subject property is located Puerto Rico. The company specializes along a strong retail corridor separated in selling value-priced goods such as by the California Delta Highway. 2602 apparel, bedding, décor, and household Somersville Road is located on the west supplies. Fallas Peredes will execute a side of California Delta Highway, along short term NNN lease at the close of with the Orchard Square Shopping Escrow, creating an excellent opportunity Center, Summersville Plaza, Kaiser for a value-add investor looking to Permanente Delta Fair Medical Offices, stabilize the property while collecting a 99 Cents Only Store, and a Big Lots. To a stabilized cash flow, or an owner-user the east of the California Delta Highway looking to take occupy a portion or all is the Century Plaza Shopping Center, of the property immediately or at some which is home to a number of big box point in the near term future. national credit tenants such as Ross Dress for Less, JOANN Fabrics and Crafts, Falles @ Somersville Towne Center is PetSmart, Harbor Freight Tools, Target, located within the Somersville Towne and Burlington. Executive Summary Center, a 501,259 square foot shopping center anchored by Smart & Final and

4 2602 Somersville Road Executive Summary 5 California Delta Hwy

BEAUTY MAX

Somersville Rd

6 2602 Somersville Road Executive Summary 7 investment highlights

SINGLE STORY RETAIL BOX IN THE SOMERSVILLE TOWN CENTER CURRENTLY HOME TO FALLAS

• Anchor space to the Somersville Towne Center currently occupied by Fallas • Neighboring anchor spaces are occupied by Smart & Final and 24 Hour Fitness • Ideally positioned amongst a sea of national retailers • Anchor space in the dominant regional mall in the immediate sub-market

STRONG ANTIOCH LOCATION IDEAL OWNER-USER OR VALUE ADD • Surrounded by businesses including Kaiser Permanente, OPPORTUNITY WITH NNN INCOME DaVita Antioch Dialysis Center, and Fresenius Kidney Care STREAM • Immediate area is inundated with national retailers • Short term 12–24-month leaseback with a reputable including Big Lots, Costco, Target, 99 Cents Only Stores, Ross Dress for Less, Burlington, and Lowe’s Home tenant allows for the collection of stable short-term cash Improvement flow while working to stabilize the property • Nearby restaurants include Starbucks, Panera Bread, • Ideal for an owner-user looking to take occupancy within Denny’s, Olive Garden, Taco Bell, In-N-Out Burger, and the next one to two years McDonald’s STRONG UNDERLYING DEMOGRAPHICS • There are over 15,700 people located within one mile of the property, 90,200 within three miles of the property, and 161,800 within five miles of the property

• There are over 5,400 households located within one mile of the property, 30,300 within three miles of the property, and 51,700 within five miles of the property

• Average household income within one mile of the property eclipses $64,300, $81,000 within three miles, and $93,500 within five miles

8 2602 Somersville Road Executive Summary 9 NEARBY AMENITIES

Retail property summary 1 - CITIBANK 2 - WELLS FARGO Address 2602 Somersville Road 3 - BANK OF AMERICA Antioch, CA 94509 4 - AUTOZONE Price $5,500,000 5 - 24 HOUR FITNESS 11 4 12 14 6 - MACY’S 13 Building Size 75,490 SF 7 7 - SMART & FINAL 5 6 8 Lot Size 83,635 SF 8 - CHEVRON 9 9 - CHASE 3 California Delta Hwy Price/SF (Building) $73 10 - FIRESTONE 10 Price/SF (Land) $66 6 9 2 11 - BURLINGTON Current CAP Rate 4.36% 12 - DOLLAR TREE 1 4 8 13 - TARGET Pro Forma CAP Rate 12.35% 14 - COSTCO 5 Year Built/Renovated 1980 / 1989 Restaurants 7 APN Number 074-450-032-3

1 - STARBUCKS 3 2 - DANNY’S 3 - FIVE GUYS 2 4 - OLIVE GARDEN 1 5 - CHIPOTLE 6 - EL POLLO LOCO 7 - TACO BELL Somersville Rd 8 - DEL TACO 9 - IN-N-OUT BURGER

10 2602 Somersville Road Property Overview 11 property description

LOCATION 2602 Somersville Road Antioch, CA 94509

SITE The property is located near the intersection of Somersville Road and Delta Fair Boulevard.

BUIDLING SF 75,490 SF

LOT SIZE 83,635 SF

PARKING 200 Parking Spaces; A Parking Ratio of 2.65 Parking Spaces per 1,000 SF

OPPORTUNITY ZONE Yes

TRAFFIC COUNTS Somersville Road: Over 10,000 Vehicles Per Day Delta Fair Boulevard: Over property overview 13,000 Vehicles Per Day

12 2602 Somersville Road Property Overview 13 parcel map

Somersville Rd

14 2602 Somersville Road Property Overview 15 Antioch, california

Antioch is the second largest city in public transportation agency Tri-Delta One of the few Bay Area communities Contra Costa County, California, United Transit is the predominant provider of that offers affordable housing. There States. Located in the East Bay region public transportation in the Antioch area, are a variety of house styles throughout of the San Francisco Bay Area along the County Connection bus #93X also serves Antioch, from condominiums to single San Joaquin-Sacramento River Delta. The Antioch going to John Muir Medical family residences, priced for a variety of city’s population was 102,372 at the 2010 Center, Mitchell Park n’ Ride, Railroad income levels. census and estimated to be 111,502 in Castlewood, Delta Fair Sommersville and 2019. Hillcrest Park ‘n Ride.

Antioch’s primary surface transportation Contra Costa County is located in the link is via the freeway State Route 4, both state of California in the United States. As westward a half hour’s drive to Interstate of the 2010 census, the population was 80 and the road network of the Bay Area, 1,049,025. The county seat is Martinez. or alternatively eastward to connect with It occupies the northern portion of the Interstate 5 at the Central Valley city of East Bay region of the San Francisco Stockton, California. State Route 160 Bay Area, and is primarily suburban. The leads north from Highway 4, crossing the county’s name is Spanish for “opposite San Joaquin River via the Antioch Bridge coast”, referring to its position on the and through the Delta to Sacramento. other side of the bay from San Francisco Contra Costa County is included in the Antioch is served by both the Antioch- San Francisco–Oakland–Berkeley, CA Pittsburg Amtrak station, and access to Metropolitan Statistical Area. Bay Area Rapid Transit (BART) is available at the Antioch eBART Station. Although area overview

16 2602 Somersville Road Area Overview 17 LOCATION OVERVIEW NEARBY ATTRACTIONS Fallas @ Somersville Town Center in the affluent East Contra Costa County sub-market of Antioch, CA ideally positioned amongst a sea of national credit tenants including Kaiser Permanente, Costco, Lowe’s Home Improvement, US Social Security Administration, and Target

Fallas @ Somersville Town Center is ideally located in the affluent East Contra Costa County sub-market of Antioch, CA. Antioch is the second largest city in Contra Costa County, and is one of the oldest towns in California. The subject property is located within the Somersville Towne Sacramento-San Joaquin Delta Contra Loma Reservoir Center, an over 501,259 square foot shopping mall containing The Sacramento–San Joaquin River Contra Loma Dam and reservoir are part of over 50 stores anchored by Smart & Final and 24 Hour Fitness. Delta, or California Delta, is an expansive the Central Valley Project - Delta Division Neighboring tenants within the center include Bath & Body inland river delta and estuary in Northern and offers recreational opportunities for Works, Champs Sports, Foot Locker, GNC, Journeys, Proactiv, California. The Delta is formed at the the East Bay area near San Francisco. and Starbucks. The center is ideally positioned amongst a sea of western edge of the Central Valley by the Numerous hiking trails exist as part of the national tenants in the affluent immediate area, including Fresenius confluence of the Sacramento and San facility and the area provides excellent Kidney Care, Big Lots, 99 Cents Only Stores, AutoZone Auto Parts, Joaquin rivers and lies just east of where access to the Contra Costa Canal Regional Da Vita Antioch Dialysis Center, Wells Fargo Bank, and Bank of the rivers enter Suisun Bay. Trail. America.

Across the California Delta Highway is a number of additional retail centers, largely occupied by big box tenants. The Century Plaza Shopping Center houses JOANN Fabrics and Crafts, PetSmart, Ross Dress for Less, Harbor Freight Tools, Target, and Burlington. The center and surrounding street feature restaurants such as Red Lobster, Panera Bread, Oliver Garden, Chili’s Grill & Bar, Wingstop, Chipotle Mexican Grill, El Pollo Loco, Taco Bell, Del Taco, Carl’s Junior, and In-N-Out Burger.

There are a number of new vehicle car dealerships located within the area, including Winter Chevrolet, Winter Honda, All Star Hyundai, All Star Ford, Antioch Water Park Black Diamond Mines Regional Antioch Chrysler Jeep Dodge RAM, Antioch Toyota, and Antioch Nissan. Other Seasonal city water park with pools, slides & Preserve nearby national tenants include Lowe’s Home Improvement, Panda Express, waterfalls, plus a floating bridge, amid big The Black Diamond Mines Regional Burger King, The Habit Burger Grill, McDonald’s, and Costco Wholesale. rocks. This is a city operated facility located Preserve is a 6,000-acre park located north at Prewett Family Park. Attractions found of Mount Diablo in Contra Costa County, The immediate submarket features strong demographics with over 15,700 people at Antioch Waterpark include four adult California under the administration of located within one mile of the subject property, 90,200 within three miles of the waterslides and a kiddie waterslide. The the East Bay Regional Park District. The property, and 161,800 within five miles. There are over 5,400 households located within waterpark also has a toddler pool, lap pool, preserve contains relics of 3 mining towns, one mile of the property, 30,300 within three miles of the property, and 51,700 within activity pool, snack bar and group picnic area. former coal and sand mines, and offers five miles of the property. Average household income within one mile of the property guided tours of a former sand mine. eclipses $64,300, $81,000 within three miles, and $93,500 within five miles. 18 2602 Somersville Road Area Overview 19 INFO DEVELOPMENT MAP & PIPELINE Development Pipeline Map • Opening date: 1966 Subject Property • Developer: The Hahn Company Recently Completed • Owner: Urban Retail Properties • No. of stores and services: 65 • No. of anchor 1 tenants: 7 (3 open, 4 vacant • Total retail floor area: Somersville Towne Center is the only enclosed regional mall in east Contra Costa County yet 501,259 sq ft is the second (and first) regional mall in the south east portion of Antioch. • No. of floors: 1 (2 in former Macy’s)

SOMERSVILLE TOWNE CENTER RETAILS ANCHOR SPACE TO THE SOMERSVILLE TOWNE CENTER • Macy’s Somersville Towne Center is a regional shopping mall closest neighbor-mall is The Streets of Brentwood outdoor • 24 Hour Fitness located in Antioch, California. Previously named County shopping mall in nearby Brentwood, which opened in • Bath & Body Works East Mall until 2004, the 501,259 square feet mall is 2008. The mall is anchored by Fallas, 24 Hour Fitness, • Smart & Final managed by Urban Retail Properties. Originally opened and Smart & Final. On August 6, 2019, it was announced • Sears in 1966, it is strategically positioned in one of the fastest that Sears would be closing the Somersville Town Center • Beauty Max growing areas of the San Francisco Bay area, east Contra location in October 2019 as part of a plan to close 26 stores • Victoria’s Secret Costa County. Along with high population growth, east nationwide. • GNC Contra Costa County is also experiencing sizable household income increases. On January 8, 2020, it was announced that Macy’s would • American One be closing in April 2020 as part of a plan to close 125 stores • Fresh N Fitted PROPERTY NAME DEVELOPER UNITS STORIES START YEAR FINISH YEAR Somersville Towne Center is the only enclosed regional nationwide. After Macy’s closed, Fallas, 24 Hour Fitness, • Foot Locker Almond Knolls 10 WORRELL RD, ANTIOCH, CA 94509 The Grupe Company 58 3 2018 2020 mall in east Contra Costa County yet is the second (and and Smart & Final are the only anchor stores left. • Fallas 1 first) regional mall in the south east portion of Antioch. Its • Rafael Guerrero TOTAL 58 3 - -

20 2602 Somersville Road Area Overview 21 TOP EMPLOYMENT BY INDUSTRIES ANTIOCH, CA DEMOGRAPHICS TOP EMPLOYER According to the City’s 2019 Comprehensive Annual Financial Report, the top employers in the city are: MEDIAN AGE # EMPLOYER # OF EMPLOYEE ANTIOCH Restaurants & Food Elementary & Secondary TOTAL POPULATION 1 Kaiser Permanente 960 Construction Services Schools 36 2 Sutter Delta Medical Center 872 48%MALE 52%FEMALE 115,964 3 Walmart 360 8.33% 7.77% 7.00% 4 City of Antioch 300 EDUCATION 5 Costco 292 6 Target 220 7 Antioch Auto Center 213 General Hospitals Supermarkets 8 Safeway 123 5.94% 5.7% 26% 39% High School Some Ccollege or Bachelor’s15% Degree Master’s6% Degree Associate’s Degree or Higher

22 2602 Somersville Road Area Overview 23 DEMOGRAPHICS BY RADIUS

$93,524 161,894 51,780 Average HH income Population Households within a 5-mile radius within a 5-mile radius within a 5-mile radius

32,662 20,781 4,037 Owner Occupied Housing Renter Occupied Housing Businesses within a 5-mile radius within 5-mile radius within a 5-mile radius

1-MILE 3-MILE 5-MILE 2020 Population 15,729 90,282 161,894 2020 Households 5,408 30,392 51,780 2020 Average Household Size 2.9 3.0 3.1 Annual Growth 2020-2025 0.7% 0.7% 0.6% 2020 Median Age 33.6 35.5 35.7 2020 Owner Occupied Households 2,336 16,463 32,662 2020 Renter Occupied Households 3,251 14,939 20,781 2020 Average Household Income $64,303 $81,071 $93,524 2020 Median Household Income $48,461 $63,121 $73,780 Businesses 552 2,948 4,037

24 2602 Somersville Road Area Overview 25 FINANCIAL ANALYSIS

RENT ROLL PRICING TENANT SF SF% LEASE TYPE LEASE EXPIRATION PRO FORMA RENT PRO FORMA RENT/SF Address 2602 Somersville Road Fallas (Owner-Occupied) 75,490 100% NNN 1 - 2 years from COE* $56,617.50 0.75 Antioch, CA 94509 TOTAL 75,490 100% $56,617.50 Price *Fallas will execute a 1 - 2 year lease at the close of Escrow $5,500,000 Building Size 75,490 SF

Lot Size ANNUALIZED OPERATING DATA 83,635 SF INCOME AND EXPENSE PRO FORMA EXPENSE BREAKDOWN** PER YEAR PER SF Price/SF (Building) $73 Scheduled Lease Income $240,000 $679,410 Taxes @1.25% $68,750 $0.91 Price/SF (Land) $66 NNN Charges $255,752 $255,752 Insurance $26,422 $0.35 Current CAP Rate 4.36% Effective Gross Income $495,752 $935,162 Utilities $41,520 $0.55 Pro Forma CAP Rate Expenses $255,752 $255,752 Trash Removal $30,196 $0.40 12.35% Net Operating Income $240,000 $679,410 Repairs & Maintenance $64,167 $0.85 Occupancy Vacant

Management $9,600 $0.13 Year Built/Renovated 1980 / 1989 Reserves $15,098 $0.20 APN Number 074-450-032-3 TOTAL $255,752 $3.39 / $0.28 **Expenses are based on industry averages

26 2602 Somersville Road Financial Analysis 27 brandonmichaelsgroup.com

INVESTMENT ADVISORS

Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 [email protected] CA License: 01434685

Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] CA License: 01948233

John Andreasen Investment Associate National Retail Group Tel: 559.476.5585 [email protected] CA License: 02093301