OFFERING MEMORANDUM

26407 HIGHWAY 33 FELLOWS/TAFT, CA OFFERING MEMORANDUM DISCLAIMER

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 26407 Highway 33, Felows, CA (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of Alexander Development Group (“Managing Member”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential

For more information, please contact Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other one of the following individuals: factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the Jeff Andrew information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Executive Vice President/Principal Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered +1 661 633 3827 on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate jeff.andrew @paccra.com the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement. TABLE OF CONTENTS Executive Summary...... 4 Property Description...... 5 Tenancy Overview...... 6 Financial Summary...... 14 Lease Comparables...... 15 Sales Comparables...... 17 Area Overview ...... 19 26407 Highway 33 | Fellows, CA OFFERING SUMMARY $2,180,480 EXECUTIVE ASKING PRICE SUMMARY The subject property, as referenced above, is located on the east and west sides of Hwy. 33, five 9.0% miles northwest of the City of Taft and is further identified as Assessor’s Parcel Numbers (APN) CAP RATE 298-060-50 and 298-060-51. The property consists of a 22,500 SF office-warehouse located on a 37.16 acres site. 2 PUBLICLY TRADED TENANTS

12.90%* ACTUAL LEVERAGED RETURN

$193,246.23* YEAR NOI

100% OCCUPANCY

*BASED ON 70% LTV AT 3.78% OVER 20 YEARS 26407 Highway 33 | Fellows, CA

PROPERTY DESCRIPTION The subject property, as referenced above, is located on the east and west sides of Hwy. 33, five miles northwest of the City of Taft and is further identified as Assessor’s Parcel Numbers (APN) 298-060-50 and 298-060-51. The property consists of a 22,500 SF office-warehouse located on a 37.16 acres site.

Building Size: ±22,500 SF

Warehouse Area: ±18,000 SF HEADER Optional Callout Office Area: ±2,280 SF

Mezzanine Area: ±4,500 SF

Site Area: ±37.71 Net Acres

Clear Height: 24’

Loading: (4) 16’x20’ Roll-Up Doors

Parking: 34 Surface Parking Spaces

Year Built: 1984

APN(S): 298-060-51 & 52 Electricity, gas, and septic tank. Water is provided Utilities: by a private well. Foundation: Concrete Slab

Sprinkler: Yes NR(5), FPS, Natural Resource 5 Acres, Floodplain Zoning: HEADER Secondary Combining District Optional Callout Opportunity Zone: Yes 26407 Highway 33 | Fellows, CA

TENANCY OVERVIEW WESCO DISTRIBUTION Company: WESCO Distribution WESCO Distribution was formed in 1922 as a subsidiary of the Westinghouse Electric Corporation, a company also based in # of Employees: 18,000 Pittsburgh. It served as the Westinghouse subsidiary charged with selling and distributing company components in the Stock Symbol: WCC electrical and industrial industries. WESCO maintained close ties Exchange: NYSE to its parent. In 1994, the private equity firm Clayton, Dubilier & Rice (CD&R) purchased Westinghouse Electric Supply Company Market Cap: $4.29 Billion and created WESCO Distribution Inc.[4] Total Revenue (CY 2020): $12.326 Billion

WESCO International, Inc. is a publicly traded Fortune 500 Total Assets (CY 2020): $5.51 Billion holding company for WESCO Distribution, a multinational Tenant Business: Electrical Products Wholesalers electrical distribution and services company based in Pittsburgh, Pennsylvania.[3] Founded: 1922

WESCO International, Inc. (NYSE: WCC) is a provider of U.S. Headquarters: Pittsburg, PA electrical, industrial, communications, maintenance, repair and Website www.wesco.com operating (MRO), and original equipment manufacturer (OEM) products, as well as construction materials and advanced supply chain management/logistic services. In 2019, its total revenue was approximately $17 billion. The company employs 18,000 #379 FORTUNE 500 LIST employees and 30,000 suppliers to serve more than 150,000 FORTUNE .COM - 2021 active customers worldwide.[4] WESCO customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WESCO operates 10 fully automated distribution centers #2 TOP ELECTRICAL and 500 branches in North American and international markets. DISTRIBUTORS WIRE & CABLE MANUFACTURES ALLIANCE - 2020 26407 Highway 33 | Fellows, CA

TENANCY OVERVIEW

Company: MRC Global MRC GLOBAL On November 1, 2007, McJunkin Corporation and Red Man Pipe # of Employees: 3,150 & Supply Company merged to form, what is now MRC Global. Stock Symbol: MRC However, MRC’s predecessor companies date to 1921, providing nearly 100 years of innovative supply chain solutions and technical Exchange: NYSE product expertise. MRC Global (NYSE: MRC) is now the largest global distributor, based on sales, of pipe, valves and fittings (PVF) Market Cap: $535 Million and related products and services to the energy industry. Total Revenue (CY 2019): $3.662 Billion The company provides a comprehensive array of services including Total Assets (CY 2019): $2.325 Billion multiple deliveries each day, zone store management and warehousing, Tenant Business: Oil & Gas Services as well as valve tagging and system interfaces that link the customer to MRC’s proprietary information systems. As a result, MRC boasts Founded: 1921 an average relationship of over 25 years with their 25 largest U.S. Headquarters: Huston, TX customers, which represent about 55% of the company’s total sales, with the single largest customer constituting approximately 8%. Website: www.mrcglobal.com MRC Global currently operates approximately 260 service locations worldwide, with nearly 3,200 employees, and an estimated customer #6 ON INDUSTRIAL base of 14,000. As of December 31, 2019, the company reported revenue in excess of $3.6 billion, with total assets estimated at $2.3 DISTRIBUTIONS’ BIG 50 LIST billion. INDUSTRIAL DISTRIBUTION - 2019 #4 TOP WHOLESALERS & DISTRIBUTORS SUPPLY HOUSE TIMES - 2019 26407 Highway 33 | Fellows, CA

REGIONAL MAP

1.5 HOURS TO LOS ANGELES

4 HOURS TO SAN FRANCISCO

26407 HWY 33 | Fellows, CA 26407 Highway 33 | Fellows, CA

MCR 9,000 SF WESCO 13,500 SF

SITEVIEW ±22,500 RSF 26407 Highway 33 | Fellows, CA MEZZANINE ±3,171.5 SF

2NDT FLOOR ±1,140 SF Office

3’ TOTAL BUILDING AREA: ±18,000 SF Office

8’ TOTAL BUILDING AREA W/ ±4,500 SF MEZZANINE AND SECOND FLOOR: ±22,500 SF 16’

Office 11’ 60’ 60’ TOTAL FINISHED AREA: ±2,860 SF 3’ Office 5’

Office Util. 19’ 56’ 20’ 19’ 150’ 150’

RR 131’ 16’x 20’ RU 16’x 20’ RU 1ST FLOOR ±1,140 SF RR 3’ 8’ 16’ 60’ Breakroom 11’

60’ WAREHOUSE ±7,520 SF WAREHOUSE ±8,760 SF 3’ 80’ 5’ Office 34’ 24’

Office Sales 16’x 20’ RU 16’x 20’ RU Office 10’ 126’ 10’ 20’

CONCRETE LOADING 20’ DOCK

34 PARKING SPACES

Highway 33 SITE PLAN ±22,500 RSF 26407 Highway 33 | Fellows, CA

RENT ROLL

INCOME % of Mo Annual Option Tenant SF Rent/Sf Start End Options Notes Building Rent Rent Rent Tenant for over 25 years. 4,500 SF Mez- 1-60 zanine. Building wasn’t Westco 13,500 SF 59.87% $0.63 1/1/2018 12/31/2022 $8,500 $102,000 $9,300 month measured at time of lease. Lease says 14,135 SF at $0.60 PSF Tenant snce 2014 rent includes ±30 acres of yard. Building wasn’t McJunkin Redman 9,000 SF 40.13% $1.41 9/1/2019 5/31/2024 $12,758 $153,099 None N/A measured at time of Corporation lease. Lease says 9,474 SF at $1.35 PSF portion is onsite trailer. Total 22,500 SF 100.00% $21,258 $255,099 26407 Highway 33 | Fellows, CA

INCOME Gross Income $255,099.22 FINANCIAL Vacancy @ 5% ($12,754.96) SUMMARY Utility Reimbursement ($1,750/Mo. by each tenant) $42,000.00

EXPENSES / C.A.M.’S

Property Taxes $25,300.00

Insurance $3,000.00

Utilities $50,000.00

Legal and Accounting $1,000.00

Landscape Maintnance $1,200.00

General Building Maintance & Repairs $2,500.00

Fire Sprinkler Inspections $120.00

Back Flow Testing $300.00

Trash Removal $2,281.00

Property Management $2,400.00

Total $88,101.00

Adjusted Income $284,344.26

Net Operating Income $196,243.26 at a 9.0% cap $2,180,480or $92.36 per sf 26407 Highway 33 | Fellows, CA

LEASE COMPARABLES

Property Leased SF Lease Rate Lease Date Lease Duration Lessee Lease Type Address Subject Property SF $0.00 SF Start Months N/A Industrial Gross 6301 Seven Seas Avenue 1 16,800 SF $0.96 SF May 2021 Sunbelt Transformer Inc. Industrial Gross Bakersfield, CA 5200 Northspur Court January 2 10,200 SF $0.90 SF Industrial Gross Bakersfield, CA 2021 34779 Lencioni Avenue - Bldg-1, December 3 11,505 SF $0.95 SF 60 Months Matrix Service Company Industrial Gross Bakersfield, CA 2019 7301 Meany Avenue November 4 10,000 SF $1.00 SF 60 Months Lennox Stores Industrial Gross Bakersfield, CA 2019 4420 State Road October 5 11,974 SF $0.80 SF Bakersfield, CA 2019 4230 Foster Avenue 6 16,068 SF $0.87 SF July 2019 36 Soli-Bond Inc. Industrial Gross Bakersfield, CA 4600 Borman Way Foundation Building 7 13,225 SF $0.93 SF April 2019 Industrial Gross Bakersfield, CA Materials 26407 Highway 33 | Fellows, CA

3

LEASE COMPARABLES MAP LEGEND

5 1 6301 Seven Seas Avenue 99 Bakersfield, CA 6 5200 Northspur Court 4 1 178 2 Bakersfield, CA

2 204 34779 Lencioni Avenue - 58 3 Bldg-1, Bakersfield, CA

7301 Meany Avenue 4 Bakersfield, CA 184 99 4420 State Road 58 5 Bakersfield, CA

4230 Foster Avenue 6 Bakersfield, CA

4600 Borman Way 7 Bakersfield, CA 7 26407 Highway 33 | Fellows, CA

SALE COMPARABLES

Property Gross Occupancy at Sale Date Sale Price Price Per SF Cap Rate Address Building SF Sale Subject Property SF $0.00 SF Start Months N/A Industrial Gross 1102 Black Gold Road 1 16,450 SF 4/13/18 $2,700,000 $164.13 SF Bakersfield, CA 3000 Pegasus 2 26,937 SF 6/01/18 $2,800,000 $103.95 SF Bakersfield, CA 27506 Highway 119 Currently 3 34,942 SF $2,847,347 $81.49 SF Valley Acres, CA for Sale 2358 Cepheus Court 4 22,087 SF 12/24/2020 $2,600,000 $117.72 Bakersfield, CA 26407 Highway 33 | Fellows, CA

SALE COMPARABLES MAP

1 LEGEND 4 2

1102 Black Gold Road 5 1 99 Bakersfield, CA 178 3000 Pegasus 2 Bakersfield, CA 5 58 99 27506 Highway 119 3 Valley Acres, CA

2358 Cepheus Court 4 Bakersfield, CA

5

3 5

99 26407 Highway 33 | Fellows, CA

AREA OVERVIEW CITY OF TAFT Taft (formerly Moron, Moro, and Siding Number Two) is a city in the foothills at the extreme southwestern edge of the San Joaquin Valley, in Kern County, California. Taft is located 32 miles (51 km) west-southwest of Bakersfield,at an elevation of 955 feet (291 m). The population was 9,327 at the 2010 census. According to the United States Census Bureau, the city has a total area of 15.1 square miles (39.1 km2).

It was named for President William H. Taft in 1909.

TAFT & OIL

1917 wooden derrick. This oil well produced into the 1980s, and the operator then donated the old derrick and three acres of land to found the West Kern Oil Museum.

Taft is situated in a major petroleum and natural gas production region in California, and is one of the few remaining towns in the United States which exist exclusively because of nearby oil reserves. The discovery of oil in the region occurred in the late 19th century near Maricopa, seven miles (11.27 km) south of Taft. Many other oil and gas accumulations were discovered around Taft during the early-to-mid- 20th century, notably the Midway field (near Fellows, California), Sunset field (later found to be part of the same trend, accounting for the modern combined name of Midway-Sunset), and the Buena Vista. The town is built directly between these two huge fields. The operational activities within these fields, as well as California Resources Corporation’s Elk Hills Oil Field north of Taft, have been the economic lifeblood of the town for over 100 years.

Continue to next page.... 26407 Highway 33 | Fellows, CA

The super-giant Midway-Sunset field has produced approximately 2,800,000,000 barrels (450,000,000 m3) of crude oil, most of it heavy gravity (13-14 degrees API). Enhanced oil recovery operations in the form of steam production and injection have been used on the thick viscous crude oil of the Midway-Sunset field since the mid-to-late-1960s. The reservoirs of the Midway-Sunset field are composited layers of mostly unconsolidated sandstones of late Miocene age, shallowly buried. The shallow burial depth and ideal nature of the sandstones make them almost perfectly suited for steam injection. As a result, the amount of oil that can be recovered has greatly increased.

Standard Oil, later the Standard Oil Company of California (modern Chevron), made Taft its corporate operational headquarters. At one time it is reported that as many as 6,000 inhabitants of Taft were employed by Standard Oil. The hub of this activity was “11-C Camp”, so named due to its township location in section 11 and designated “township C” by Standard’s mapping department. The infrastructure to run a large oil and gas company included: a rail spur from the line running through Taft, steel and timber for derrick construction and maintenance, pipe, valves, numerous offices, an expansive and highly specialized machine shop, supply shops, the car and truck fleet, bunkhouses for workers, and company homes for employees. 11-C camp also included a playground, baseball field, tennis courts, a swimming pool, a cook-house open to the public, landscaped grounds, a clubhouse with a television, pool and card tables, and an ice-cream stand. The huge complex gradually closed down over a period of many years. In 1968 Standard Oil of California moved its accounting and finance offices to Concord, California. In the late 1980s the machine shop was closed and auctioned, signaling the end of the 11-C Camp era.

Many other oil companies had operations in the area, including larger companies such as Shell, Texaco, Exxon, Mobil, Gulf, and ARCO, as well as smaller operations (but with a large local presence) such as Santa Fe Energy, Berry Petroleum, Tannehill, M.H. Whittier, and lately Plains Exploration & Production. In the mid-1990s, according to California’s Division of Oil, Gas, and Geothermal Resources (DOGGR), there were 68 operating companies working the Midway-Sunset field alone. While the names of most of these companies have changed, due to mergers, acquisitions, and liquidations, the production activities have been continuous.

In celebration of its oil heritage, Taft holds its “Oildorado” festival every five years. Oildorado was first started in 1930 (see below) and was held intermittently before then.

In the early days of oil exploration and production, long before the advent of modern blowout preventions, gushers were the norm. Although there were many, the Lakeview Gusher gushed more than any, producing 100,000 barrels (16,000 m3) of oil per day at its peak. In all, the Lakeview No.1 produced about nine million barrels (1,400,000 m3) of oil (a very respectable cumulative production for a single well in this area). The well and its State historical marker can be found along the Petroleum Club road, just off SR 33 south of town.

Taft was also the site of a military airfield, Gardner Army Airfield, which was used to train pilots during World War II. After the base was closed, its abandoned airstrip served as a clandestine dragstrip for many years. CORPORATE NEIGHBORS Derby Acres LEGEND

SUBJECT PROPERTY 26407 HWY 33, FELLOWS. CA 1 2 1

33

2

3 3

5 Fellows 4 6 4

5 Midoil 33 Ford City 9

Taft 119 6 7 8 Taft Heights PIPELINE CO.

7

8 Spellacy

33 9 26407 Highway 33 | Fellows, CA CALIFORNIA SHALE VIEWER The California Shale Viewer is designed to introduce interested parties to the unique nature of shale oil and gas development in the state of California, or what is known CALIFORNIA as “Unconventional Development”. It is termed uncoventional because the source of oil and gas is not a typical reservoir, rather it is the “source rock”. The source rock typically includes the sedimentary basin where over many millions of years geological SHALE VIEWER pressures and heat transformed ancient organic materials into hydrocarbons. Geological pressures force the hydrocarbons from the source rock into conventional pools or reservoirs closer to the Earth’s surface. When these conventional reservoirs are drained, oil and gas companies use “stimulation” techniques to access the hydrocarbons in deeper “source rock.”

43 Buttonwillow 178 5 Bakersfield 58

McKittrick 184 Naval Petroleum Reserve No. 1 Tupman

119 Lamont

Derby Acres 99

Arvin 223 Fellows

Naval Petroleum Reserve No. 2 Ford City Taft LEGEND

26407 HIGHWAY 33

NEW CA OIL & GAS PRODUCTION WELLS

WATEWATER PITS

CA OIL & GAS PRODUCTION WELLS - MIDWAY- SUNSET 26407 Highway 33 | Fellows, CA

MIDWAY-SUNDET OIL FIELD The Midway-Sunset Oil Field is a large oil field in Kern County, San Joaquin Valley, California in the United States. It is the largest known oilfield in California MIDWAY-SUNSET and the third largest[citation needed] in the United States. OIL FIELD The field was discovered in 1894, and through the end of 2006 had produced close to 3 billion barrels (480,000,000 m3) of oil. At the end of 2008 its estimated reserves amounted to approximately 532 million barrels (84,600,000 m3), 18% of California’s estimated total.

SETTING The oil field runs southeast to northwest, with a length of approximately 20 miles (30 km) and a width of 3 to 4 miles (5 to 6 km), from east of Maricopa to south of McKittrick, paralleling the Temblor Range to the southwest. Most of the oil field is in the Midway Valley and the northeastern foothills of the Temblor Range. To the northeast are the Buena Vista Hills, paralleling the Midway Valley and the Temblors; the mostly exhausted, and partially abandoned Buena Vista Oil Field lies beneath this adjacent low range of hills.

State Route 33 runs along the axis of the Midway-Sunset for much of its length, and the towns of Taft, Maricopa, and Fellows are built directly on the oil field. Other oil fields along Route 33 going northwest within Kern County include the Cymric Oil Field, McKittrick Oil Field, and the large South Belridge Oil Field. Route 33 is not the only public road through the field: roughly paralleling 33, but closer to the Temblor Range, is Midoil Road, which winds through the field and along its southwestern boundary. The road commences from Taft Heights, passes through Fellows, and joins Mocal Road, which passes through the most densely developed part of the field, and rejoins Route 33 just south of Derby Acres. Crocker Springs Road, which passes over the Temblor Range to the Carrizo Plain, intersects Mocal Road about 2 miles (3.2 km) south of its intersection with Route 33. Another public road that passes through part of the Midway-Sunset Field is Petroleum Club Road, which runs southeast from Taft, and passes the site of the Lakeview Gusher. CONTACT INFORMATION

JEFF ANDREW Executive Vice President /Principal [email protected] +1 661 633 3827 LIC. # 00941323

5060 California Avenue Suite 1000 Bakersfield, CA 93309 www.paccra.com Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

©2019 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.