O F F E R I N G M E M O R a N D

™

OFFERING MEMORANDUM ™

2 OfferingEXECUTIVE Summary SUMMARY 05 Financial Summary Investment Highlights Features & Benefits

PhysicalPROPERTY Description DESCRIPTION 11 Site Plan TABLE OF Aerial Tenant Map

RentFINANCIAL Roll OVERVIEW 17 Income and Expenses CONTENTS Recent Leases EXCLUSIVELY LISTED BY Summary Tenant Profile EL WARNER CAITLIN ZIRPOLO Income by Parcel EVP | National Director Shopping Centers Assumptions Shopping Centers Cash Flow

Mobile +1 858 752 3078 Mobile +1 760 685 6873 Direct +1 949 873 0507 Direct +1 949 432 4518 [email protected] [email protected] Oceanside,AREA OVERVIEW California Lic #01890271 Lic #01987844 27 Developments San Diego County Overview LINDSAY TSUMPES Public Transit AVP & Director Shopping Centers

Mobile +1 310 880 8418 McDonald’sTENANT OVERVIEW Direct +1 949 873 0270 3 5 Yogurtland [email protected] Chipotle Lic #01954256 Dollar Tree Chase Panda Express

SAN DIEGO RETAIL PARTNERS & LEASING REG KOBZI JOEL WILSON McDonald’sLEASE ABSTRACTS SVP | Investment Properties VP | Retail Properties CBRE | Capital Markets CBRE | Advisory & Transactions 41 Chase Dollar Tree Direct +1 858 546 4604 Direct +1 858 546 4651 Rancho Del Oro Car Wash Fax +1 858 546 3985 Fax +1 858 546 3985 [email protected] [email protected] Lic #00917639 Lic #01237516

DEL ORO MARKETPLACE | 3 EXECUTIVE SUMMARY

4 | EXECUTIVE SUMMARY EXECUTIVE SUMMARY OfferingMatthews National Retail Summary Investment Group – West along with CBRE is pleased to present the sale of Del Oro Marketplace, located in the city of Oceanside, California. This is a tremendous opportunity to acquire a coastal destination oriented retail center with near term upside. 73% of the rentail income is generated by national credit retailers and consists of 8 separate parcels. The parcels include:

♦♦ 2 credit anchored QSR buildings (Panda Express, Chipotle, etc)

♦♦ A single-tenant Chase Bank with strong deposits

♦♦ A trophy McDonald’s drive thru

♦♦ A Shakey’s Pizza restaurant pad

♦♦ A high performing car wash

♦♦ A newly constructed vacant 13,885 grocery box (former Fresh and Easy that is expandable)

♦♦ Inline service and value retailers anchored by Dollar Tree, Sola Salons, Urgent Care & T-Mobile.

The investment is offered as a single transaction but an owner will benefit from 100% ownership of the entire center with the potential of selling off the pads and leasing up the newly constructed vacant box. The property is ideally situated on the hard corner of College Boulevard and Oceanside Boulevard with over 76,000 cars per day passing the site. The property benefits from its location within a very strong retail corridor and a densely- populated submarket. An investor can assume the in place financing or we can defease the loan and provide the opportunity free and clear of debt.

6 | EXECUTIVE SUMMARY InvestmentOffering Price Summary$33,000,000 NOI (Year 1) $1,817,794 Cap Rate (Year 1) 5.51% NOI (Stabliized) $2,433,754 Cap Rate (Stabilized) 7.38% PACIFIC OCEAN Current Occupancy 73% CANYON VISTA Total Building Area ±87,742

TITLEIST Total Land Area ±441,264 SF (±10.13 Acres) PERFOMANCE INSTITUTE GENENTECH INC Parking Spaces ±530 (6.04:1,0000 SF)

PLAZA RANCHO DEL ORO

North County Sprinter Rail Line

DEL ORO MARKETPLACE | 7 8 | EXECUTIVE SUMMARY ♦Investment♦ Extremely rare value-add opportunityHighlights in prestigious San Diego county

♦♦ Over 27% NOI increase with immediate lease up of approximately 23,700 SF

♦♦ 73% of the center is comprised of national and credit tenants such as McDonald’s, Chipotle, Chase Bank, Yogurtland, Jersey Mike’s and Dollar Tree

♦♦ Strategically located at the second busiest retail corridor in San Diego’s North County

♦♦ Dense population with over 141,560 residents in a 3-mile radius and over 327,170 residents in a 5-mile radius

♦♦ Main on main location with over 75,000 VPD

♦♦ Individually parcelized, providing an investor future value on their exit strategy

♦♦ The Buyer has the option to assume in place financing or purchase free and clear of debt

Features and Benefits

Feature National credit tenants offer Benefitan investor a stable and predictable Approximately 60% of Del Oro Marketplace’s rental Strong Credit Tenant income stream and minimizes risk exposure to the changing nature of revenue is generated by national credit tenants. economic influences.

The population within a ten-mile radius exceeds The trade area’s dense and affluent demographics provide a Affluent Consumer ±564,007 and boasts an average household income of consumer base with higher levels of discretionary income. This Base Within a Dense over $86,000. Additionally, the immediate area will see enables tenants to achieve and sustain higher and stable sales Neighborhood a 6.7% spike in population over the next five years. figures, which in turn, maximizes long-term income growth.

The tenants exhibit excellent, near-term growth in An investor will get the benefit of strong contractual near-term rent Contractual Growth contractual rents in both the lease and option terms. increases and hedge inflation.

Immediate value creation opportunity through the lease Purchasing an asset with lease up potential can increase an Near Term Upside up of approximately ±23,700 SF of vacancy. investor’s return in the near term.

Individually An investor has the ability to create value through not only leasing The property encompasses 8 separate parcels. Parcelized up the property but selling the asset off in smaller pieces.

DEL ORO MARKETPLACE | 9 PROPERTY DESCRIPTION

10 | PROPERTY DESCRIPTION DEL ORO MARKETPLACE | 11 Physical Description Property Name Del Oro Marketplace Address 4101-4171 Oceanside Blvd Location Oceanside, CA 92056 Cross Street College Blvd Square Footage (GLA) ±87,742 Land Area ±441,264 SF (±10.31 Acres) Type of Ownership Fee Simple Number of Stories 1 Number of Buildings 9 Parking Spaces ±530 (6:04:1,000 SF)

Year Built Parcel Year Built/Renovated 162-341-41 1988/2004 162-341-32,-33,-45,-36,-40 2004 162-341-43,-44 2007 162-241-61 2010

> TheLOCATION Subject is located DESCRIPTION at the southwestern corner of the intersection of Oceanside Blvd and College Blvd in the city of Oceanside, San Diego County, in the state of California.

North: The subject is bordered to the North by Plaza Rancho Del Oro, an Albertsons anchored center

South: The subject is bordered to the South by a residential area

East: The subject is bordered to the East by Rancho Del Oro Gateway Shopping Center, a Ralph’s anchored center

West: The subject is bordered to the West by Oceanside Dance Academy and School of Rock Oceanside Route 76: ±52,000 ADT > TRAFFIC COUNTS Oceanside Blvd: ±31,792 ADT Interstate 5: ±197,000 ADT College Blvd: ±46,116 ADT State Route 78: ±142,000 ADT

12 | PROPERTY DESCRIPTION Site Plan

Junior Anchor Expansion Plan

Unit4101 Rancho DelTenant Oro Car Wash Square3,129 Feet Unit4161 SolaTenant Salon Square7,119 Feet 4111 Jersey Mikes Subs 1,175 4161-100 Select Staffing 3,729 4111-102 Adora Salon 1,792 4161-103 Dollar Tree Stores 10,024 Chipotle 4171-103 Vacant 6,384 4111-103 1,921 Mexican Grill White Dragon 4171-00B 2,963 4121-200 Panda Express 2,002 Martial Arts 4121-201 Enzo's BBQ 1,100 4171-00D Day Porter 400 4121-202 GoGo Japan 1,500 4171-101 Vacant 1,551 4121 203 Pho Kitchen 1,138 4171-102 College Cleaners 986 4121-204 Yogurtland 1,300 4171-103 Best Nails 1,067 4121-205 Bank of America Kiosk 100 4171-104 T-Mobile 1,460 4131 Vacant 13,885 4171-105 I-Tan Solarium 1,712 4141 Shakey's Pizza 4,900 4171-106 Bronco Taco Shop 1,809 4147 JP Morgan Chase 4,800 4171-107 Vacant 1,864 McDonald's 4171-108 Miracle Ear 661 4151 5,054 (Ground Lease) 4171-109 Next Step Healthcare 2,217 PAD Walgreens (NAP)

DEL ORO MARKETPLACE | 13 Oceanside, California

♦OCEANSIDE♦ Oceanside is home to some of Southern California’s widest beaches, historical landmarks and a distinct Southern California surf culture, located at the northernmost end of San Diego’s coastline.

♦♦ Situated on the north border of Oceanside, Camp Pendelton is one of the largest Marine bases in California. Camp Pendleton reports a daily population of more than 65,000 people. The regional economic impact is over $6 billion dollars annually.

♦♦ Oceanside boasts some of the widest, sandy beaches in Southern California as well as a picturesque 1,000-slip harbor with shops and restaurants.

♦TOP♦ OCEANSIDE TOURIST PIER - The historical ATTRACTIONSOceanside Pier is one of the longest wooden piers on the West Coast, at 1,942 feet. The pier is the backdrop for some great Oceanside events and it is within walking distance to the Farmer’s and Sunset Markets. The Oceanside Pier is one of the top surfing spots in North County.

♦♦ OCEANSIDE HARBOR & HARBOR VILLAGE - The 1,000 slips harbor is a center for whale watching, sportsfishing and kayaking. Harbor Village includes fine shops, hotels and iconic ocean front resorts.

♦♦ MISSION SAN LUIS REY DE FRANCIA - The “King of the Missions,” is the 18th and largest chain of 21 Califirnia Missions established by the Spanish Franciscans in 1798.

♦♦ ANNUAL WORLD BODY SURFING CHAMPIONSHIP - Takes place in August at the Oceanside Pier and Beach. International and U.S. body surfers, equipped with only a pair of swimming fins, ride and perform waves as they compete for the prestigious championship title.

♦♦ IRONMAN OCEANSIDE - Attracts a large number of professional athletes for the 1.2 mile swim in Oceanside Harbor, a 56- mile bike ride through the Camp Pendleton Marine Corps Base and a 13.1-mile run along the Pacific Ocean.

RESIDENTIAL GOLF COURSES BEACHES HOTELS & LODGING UNITS (PLANNED)

614 | PROPERTY DESCRIPTION7 47 2.8K PACIFIC OCEAN 465-ACRE CITY OWNED

Full development includes: Parks and Recreation, Civic Services, commercial and hotel

DEL ORO MARKETPLACE

PLAZA RANCHO DEL ORO OCEAN RANCH CORPORATE CENTER

North County Sprinter Rail Line

OCEANSIDE BLVD ±41,792 ADT

COLLEGE BLVD ±46,116 ADT

DEL ORO MARKETPLACE | 15 FINANCIAL OVERVIEW

16 | FINANCIAL OVERVIEW DEL ORO MARKETPLACE | 17 Rent Roll

Lease Lease Square % of Contract Rental Rate Rent Per Sq. St. Unit Tenant Rent Increases Options Rancho Del Oro Start End Feet GLA Year Month Year Month Oct-22 $39.21 4101 Sep-02 Sep-22 3,129 3.1% $94,922 $7,910 $30.34 $2.53 Oct-17 $34.13 Car Wash Oct-27 $45.13 Oct-23 $46.82 4111 Jersey Mike’s Subs Sep-13 Feb-19 1,175 1.2% $41,595 $3,466 $35.40 $2.95 Oct-18 $40.71 Oct-28 $53.84 4111-102 Adora Salon May-16 Apr-19 1,792 1.8% $73,203 $6,100 $40.85 $3.40 May-18 $45.00 Chipotle Nov-21 $42.83 4111-103 Nov-11 Oct-21 1,921 1.9% $74,804 $6,234 $38.94 $3.25 Mexican Grill Nov-26 $47.12 Mar-18 $39.83 4121-200 Panda Express Mar-13 Feb-18 2,002 2.0% $70,631 $5,886 $35.28 $2.94 Mar-23 $46.20 Jan-18 $38.95 Jan-19 $40.12 4121-201 Enzo's BBQ Jan-16 Dec-21 1,100 1.1% $41,599 $3,467 $37.82 $3.15 Jan-20 $41.33 Jan-21 $42.56

Aug-17 $36.92 4121-202 GoGo Japan Aug-14 Jul-19 1,500 1.5% $52,196 $4,350 $34.80 $2.90 Aug-18 $38.02

Aug-17 $37.56 4121-203 Pho Kitchen Aug-15 Jul-20 1,138 1.1% $41,496 $3,458 $36.46 $3.04 Aug-18 $38.68 Aug-19 $39.84

Aug-17 $46.47 4121-204 Yogurtland Aug-14 Sep-19 1,300 1.3% $58,648 $4,887 $45.11 $3.76 Aug-18 $47.86

Bank of America 4121-205 Sep-13 Sep-23 100 0.1% $19,800 $1,650 $198.00 $16.50 Aug-19 $217.80 Kiosk

4131 Vacant 13,885 13.6% $249,930 $20,828 $18.00 $1.50

Jun-18 $55.37 4141 Shakey's Pizza Jun-13 May-18 4,900 4.8% $236,670 $19,723 $48.30 $4.03 Jun-23 $63.88

4147 JP Morgan Chase Feb-12 Apr-22 4,800 4.7% $216,000 $18,000 $45.00 $3.75 May-22 $49.50

Jan-23 $24.70 McDonald's Jan-28 $27.61 4151 Jan-13 Dec-22 5,054 5.0% $99,936 $8,328 $19.77 $1.65 Aug-18 $22.10 (Ground Lease) Jan-33 $30.86 Jan-38 $34.49

18 | FINANCIAL OVERVIEW Rent Roll, Cont.

Lease Lease Square % of Contract Rental Rate Rent Per Sq. St. Unit Tenant Rent Increases Options Start End Feet GLA Year Month Year Month Jul-27 $33.30 Jul-32 $38.33 4161 Sola Salon Jul-17 Jun-27 7,119 7.0% $179,388 $14,949 $25.20 $2.10 Jul-22 $28.98 Jul-37 $44.07 Jul-42 $50.69 Feb-18 $35.40 4161-100 Select Staffing Jan-16 Feb-19 3,729 3.7% $129,769 $10,814 $34.80 $2.90 95% FMV Feb-19 $36.00 4161-103 Dollar Tree Stores Jun-13 May-18 10,024 9.8% $147,553 $12,296 $14.72 $1.23 Jun-18 $16.65 4171-103 Vacant 6,384 6.3% $114,912 $9,576 $18.00 $1.50 White Dragon 4171-00B Jan-01 Dec-18 2,963 2.9% $81,768 $6,814 $27.60 $2.30 Martial Arts 4171-00D Day Porter Jan-11 Jan-30 400 0.4% $9,600 $800 $24.00 $2.00

4171-101 Vacant 1,551 1.5% $46,530 $3,878 $30.00 $2.50

4171-102 College Cleaners Sep-15 Aug-17 986 1.0% $15,382 $1,282 $15.60 $1.30

4171-103 Best Nails Apr-15 Jul-17 1,067 1.0% $37,586 $3,132 $35.23 $2.94

Dec-18 $25.70 Dec-23 $27.28 4171-104 T-Mobile Dec-16 Nov-21 1,460 1.4% $36,792 $3,066 $25.20 $2.10 Dec-19 $26.22 Dec-24 $27.82 Dec-20 $26.74 Dec-25 $28.38 4171-105 I-Tan Solarium Mar-14 Feb-19 1,712 1.7% $67,531 $5,628 $39.45 $3.29 Mar-18 $40.63 3% Annual Increases

4171-106 Bronco Taco Shop Oct-15 Sep-18 1,809 1.8% $58,116 $4,843 $32.13 $2.68 Oct-17 $33.09

4171-107 Vacant 1,864 1.8% $55,920 $4,660 $30.00 $2.50

Jan/19 FMV 4171-108 Miracle Ear Jan-16 Dec-18 661 0.6% $23,402 $1,950 $35.40 $2.95 Jan/24 FMV Next Step Feb-21 $43.68 4171-109 Jan-16 Jan-21 2,217 2.2% $84,069 $7,006 $37.92 $3.16 Healthcare Feb-26 $50.16 Occupied Totals - In Place 64,058 SF 73.0% $1,992,456 $166,038 $31.10 $2.59 Vacant Totals 23,684 SF 27.0% $467,292 $38,941 $19.73 $1.64 Totals 87,742 SF 100.0% $2,459,748 $204,979 $28.03 $2.34

1. White Dragon Martial Arts is currently month to month. Property management is currently negotiating a lease extension with the tenant. Analysis assumes the tenant remains in the space until 12/31/18.

DEL ORO MARKETPLACE | 19 Income & Expenses

Year 1 Stabilized Year Income Total $/SF Total $/SF Scheduled Base Rental Revenue $2,022,818 $23.05 $2,518,660 $28.71 Expense Reimbursements $684,162 $7.80 $857,762 $9.78 Vacancy Factor (5%) Credit Excluded $0 ($23,591) ($0.27) Effective Gross Income $2,706,980 $30.85 $3,352,831 $38.21 Expenses CAM $276,109 $3.15 $284, 394 $3.24 Property Insurance $19,824 $0.23 $20,419 $0.23 Real Estate Taxes $483,780 $5.51 $493,456 $5.62 Management $81, 209 $0.93 $100,585 $1.15 EGI (%) 3.00% 3.00% Non-Reimbursable Expenses $29,062 $0.33 $20, 223 $0.23 (Includes Vacant Unit Expenses) Operating Expenses $889,984 $10.14 $919,077 $10.47 Net Operating Income $1,816,996 $20.71 $2,433,754 $27.74 Operating Expense Ratio 32.9% 27.4%

Recent Leases Start Rental Rate Lease Tenant Name Unit # Type Terms Size (SF) $/SF/Mo. Escalations Sola Salon 4161 New 10 Years DateJul-17 7,119 $/SF/Yr.$25.20 $2.10 TermNNN Jul-22 $28.98 Dec-18 $25.70 T-Mobile 4171-104 New 3 Years Dec-16 1,460 $25.20 $2.10 NNN Dec-19 $26.22 Dec-20 $26.74 Adora Salon 4111-102 New 3 Years May-16 1,792 $40.85 $3.40 NNN May-18 $45.00 Jan-18 $38.95 Jan-19 $40.12 Enzo's BBQ 4121-201 Renewal 5 Years Jan-17 1,100 $37.82 $3.15 NNN Jan-20 $41.33 Jan-21 $42.56 Miracle Ear 4171-108 New 3 Years Sep-13 661 $35.40 $2.95 NNN Jan-18 $36.47 Feb-21 $43.68 Next Step Healthcare 4171-109 New 5 Years Jan-16 2,217 $37.92 $3.16 NNN Feb-26 $50.16 Average $33.73 $2.81

20 | FINANCIAL OVERVIEW Summary Tenant Profile

Junior AnchorTenant Name In Place Rent % of Income Expiration Date Dollar Tree Stores $147,553 7.44% May-18 Subtotal $147,553 7.44%

Pads JP Morgan Chase $216,000 10.89% Apr-22 Rancho Del Oro Car Wash $94,922 4.79% Sep-22 McDonald's (Ground Lease) $99,936 5.04% Dec-22 Shakey's Pizza $236,670 11.94% May-18 Subtotal $647,528 32.66%

In-line Restaurants Jersey Mike’s Subs $41,595 2.10% Feb-19 Chipotle Mexican Grill $74,804 3.77% Oct-21 Junior Anchor - 7% Panda Express $70,631 3.56% Feb-18 Pads - 33% Enzo's BBQ $41,599 2.10% Dec-21 GoGo Japan $52,196 2.63% Jul-19 In-line Restaurants - 22% Pho Kitchen $41,496 2.09% Jul-20 Yogurtland $58,648 2.96% Sep-19 In-line Shops - 38% Bronco Taco Shop $58,116 2.93% Sep-18 Subtotal $439,085 22.14% In-line Shops Adora Salon $73,203 3.69% Apr-19 Miracle Ear $23,402 1.18% Dec-18 Bank of America (Kiosk) $19,800 1.00% Sep-23 Sola Salon $179,388 9.05% Jun-27 Select Staffing $129,769 6.54% Jan-20 Next Step Healthcare $84,069 4.24% Jan-21 White Dragon Martial Arts $81,768 4.12% Dec-21 College Cleaners $15,382 0.78% Aug-17 Best Nails $37,586 1.90% Jul-17 T-Mobile $36,792 1.86% Nov-21 I-Tan Solarium $67,531 3.41% Feb-19 Subtotal $748,690 37.76% National/Credit Tenant - 72% Total $1,982,856 100.0% Local/Regional Tenant - 28%

DEL ORO MARKETPLACE | 21 Income by Parcel

162-241-32-00Tenant Name In Place Rent % of Income Expiration Date 162-241-41-00Tenant Name In Place Rent % of Income Expiration Date Rancho Del Oro Bronco Taco $94,922 4.76% Sep-22 $58,116 2.92% Sep-18 Car Wash Shop Subtotal $94,922 4.76% Miracle Ear $23,402 1.17% Dec-18 Day Porter $9,600 0.48% Jan-30 162-241-33-00 Jersey Mike’s Next Step $41,595 2.09% Feb-19 $84,069 4.22% Jan-21 Subs Healthcare Chipotle White Dragon $74,804 3.75% Oct-21 $81,768 4.10% Dec-18 Mexican Grill Martial Arts College Panda Express $70,631 3.54% Feb-18 $15,382 0.77% Aug-17 Cleaners Adora Salon $73,203 3.67% Apr-19 Best Nails $37,586 1.89% Jul-17 Enzo's BBQ $41,599 2.09% Dec-21 T-Mobile $36,792 1.85% Nov-21 GoGo Japan $52,196 2.62% Jul-19 I-Tan Solarium $67,531 3.39% Feb-19 Pho Kitchen $41,496 2.08% Jul-20 Subtotal $414,246 20.79% Yogurtland $58,648 2.94% Sep-19 Subtotal $454,172 22.79% 162-241-61-00 Junior Anchor $0 162-241-45-00 Subtotal $0 0.00% Bank of $19,800 0.99% Sep-23 America Kiosk Total $1,992,456 100.0% Subtotal $19,800 0.99%

162-241-43-00 & 162-241- 44 - 00 Shakey’s Pizza $216,000 10.84% Apr-22 JP Morgan Chase $236,670 11.88% May-18 Subtotal $452,670 22.72%

162-241-36-00 McDonald's $99,936 5.02% Dec-22 (Ground Lease) Subtotal $99,936 5.02%

162-241-40-00 Sola Salon $179,388 9.00% Jun-27 Select Staffing $129,769 6.51% Jan-20 Dollar Tree Stores $147,553 7.41% May-18 Subtotal $456,711 22.92%

22 | FINANCIAL OVERVIEW North County Sprinter Rail Line 01 02 08 03 04 06 05

OCEANSIDE BLVD ±31,792 ADT

COLLEGE BLVD ±46,116 ADT

DEL ORO MARKETPLACE | 23 Cash Flow Assumptions

Analysis Period Cash Flow Projection Begin Date July 1, 2017 Holding Period for Net Present Value 10 Years General Projection Assumptions Cost of Living Growth per Annum 3.00% General Expense Growth per Annum 3.00% Real Estate Tax Growth per Annum 2.00% Market Rent Growth per Annum 3.00% Exit Cost of Sale 1.00% Leasing Assumptions Market Rent $16.20 - $48.00/SF/Yr Renewal Probability 75.00% Downtime 6-12 Months Tenant Improvement Allowance $10-$30/SF Leasing Commissions 6.00% Free Rent None Escalations Annual 3% - 10% Mid Term Increases Operating Expenses NNN + 15% Admin Fee Term 5-10 Years

24 | FINANCIAL OVERVIEW Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 ______Potential Gross Revenue Base Rental Revenue $2,500,456 $2,603,648 $2,626,843 $2,660,741 $2,706,089 $2,820,155 $2,971,800 $3,018,312 $3,049,932 $3,103,442 Absorption & Turnover Vacancy (477,638) (84,988) (19,686) (8,241) (21,955) (28,221) (52,736) (65,668) (9,553) (79,859) ______Scheduled Base Rental Revenue 2,022,818 2,518,660 2,607,157 2,652,500 2,684,134 2,791,934 2,919,064 2,952,644 3,040,379 3,023,583 Expense Reimbursement Revenue 684,162 857,762 885,766 910,683 931,070 947,840 970,133 977,512 987,952 1,006,174 ______Total Potential Gross Revenue 2,706,980 3,376,422 3,492,923 3,563,183 3,615,204 3,739,774 3,889,197 3,930,156 4,028,331 4,029,757 General Vacancy 0 (23,591) (90,590) (104,093) (92,325) (114,052) (92,162) (59,908) (117,180) (93,725) ______Effective Gross Revenue 2,706,980 3,352,831 3,402,333 3,459,090 3,522,879 3,625,722 3,797,035 3,870,248 3,911,151 3,936,032 ______Operating Expenses Management Fee 81,209 100,585 102,070 103,773 105,686 108,772 113,911 116,107 117,335 118,081 Administrative 32,421 33,395 34,396 35,428 36,490 37,586 38,712 39,875 41,070 42,304 Utilities 46,740 48,142 49,586 51,074 52,606 54,184 55,810 57,484 59,208 60,985 Common Area Maintenance 170,698 175,819 181,092 186,527 192,124 197,886 203,821 209,937 216,235 222,720 Landscaping 26,250 27,038 27,848 28,684 29,545 30,431 31,344 32,284 33,253 34,250 Property Tax 483,780 493,456 503,325 513,391 523,659 534,132 544,815 555,711 566,825 578,162 Property/Liability Insurance 19,824 20,419 21,031 21,662 22,312 22,981 23,671 24,381 25,112 25,866 Non-Recoverable Expenses 10,206 10,512 10,828 11,152 11,487 11,832 12,187 12,552 12,929 13,317 Vacant Unit Expenses 18,856 9,711 00000000 ______Total Operating Expenses 889,984 919,077 930,176 951,691 973,909 997,804 1,024,271 1,048,331 1,071,967 1,095,685 ______Net Operating Income 1,816,996 2,433,754 2,472,157 2,507,399 2,548,970 2,627,918 2,772,764 2,821,917 2,839,184 2,840,347 ______Leasing & Capital Costs Tenant Improvements 12,832 564,950 30,448 7,772 19,781 14,875 116,098 63,962 9,010 20,876 Leasing Commissions 11,639 468,458 39,722 9,844 25,271 13,756 77,860 76,559 11,412 22,287 Capital Reserves 15,309 15,768 16,241 16,729 17,231 17,748 18,280 18,828 19,393 19,975 ______Total Leasing & Capital Costs 39,780 1,049,176 86,411 34,345 62,283 46,379 212,238 159,349 39,815 63,138 ______Cash Flow Before Debt Service $1,777,216 $1,384,578 $2,385,746 $2,473,054 $2,486,687 $2,581,539 $2,560,526 $2,662,568 $2,799,369 $2,777,209 & Taxes ======

DEL ORO MARKETPLACE | 25 AREA OVERVIEW

26 | AREA OVERVIEW AREA OVERVIEW

DEL ORO MARKETPLACE | 27 Oceanside, commonly known CAas San Diego’s North Shore, is a classic beach town that allows people to escape the hustle and bustle of city life. Situated between Los Angeles and San Diego, Oceanside is an ideal spot for those visiting Southern California. If the consistent 70-degree year-round weather wasn’t enough, Oceanside is central to LEGOLAND, SeaWorld, Disneyland and the San Diego Zoo, making the city a prime tourist destination. USA Today rated the city as the second most ideal climate in the United States, and the fifth most ideal in the world.

There is never a dull moment in this playful destination. Citizens and tourists take adventure to the next level with surfing, skateboarding, bike riding, boating and skydiving. With a variety of culinary experiences, visitors can enjoy a variety of foods as well as the unique craft beer scene Southern California is famous for. Every year Oceanside is home to several events that draw in even more tourists. From live music at the Pier Plaza Amphitheater to Surfing America USA Surfing Championships, there is always a reason to visit Oceanside.

MajorEmployer Employers# of Employees ♦♦ Tri-City Medical Center 1,900 ♦♦ City of Oceanside 1,060 ♦♦ Mira Costa College 1,000 Demographics ♦♦ Select Staffing 600 ♦♦ Genentech 500 2022Population Projection 148,6293 Mile 5327,171 Mile 10601,769 Mile ♦♦ Federal Express 500 2017 Estimate 141,558 309,863 564,007 2010 Census 134,034 290,338 518,634 Growth 2017-2022 4.99% 5.59% 6.70% Distance to: Temecula 2022Households Projection 349,992 Mile 5112,042 Mile 10205,228 Mile ±30 Miles 2017 Estimate 47,425 106,071 192,436 Growth 2017-2022 5.26% 5.63% 6.65% San Diego ±38 Miles

2017Households Est. Average 3 Mile 5 Mile 10 Mile Orange County $74,010 $77,433 $86,252 Household Income ±50 Miles Los Angeles ±83 Miles

28 | AREA OVERVIEW EconomicThe San Diego Region has Impact the largest concentration of military in the CampLocated less thanPendleton 10 miles from Del Oro Marketplace lies the world and represents the region’s most important and largest economic Marine Corps Base Camp Pendleton, the Corps’ largest West Coast catalyst. One-fifth of San Diego County’s economy relies on this sector. expeditionary training facility. Encompassing more than 125,000 acres of Southern California, Camp Pendleton is one of the Department of An estimated total of $23.3 billion in direct spending related to defense Defense’s busiest installations and offers a broad spectrum of training has been sent to San Diego County during fiscal year 2016, an amount facilities for many active and reserve Marine, Army, and Navy units, as equal to over $7,000 for each of the County’s residents. The military well as national, state and local agencies. sector has generated more than 300,000 of the region’s total jobs in 2016, representing one out of five jobs existing in the County. In More than 38,000 military family members occupy base housing fiscal 2016, the 53 U.S. Navy ships ported in San Diego will see direct complexes, but with a daytime population of over 70,000 military and spending of about $2.0 billion that will equate to a total economic civilian personnel, the Marines, Sailors, and their families rely on the impact of $6.0 billion in gross regional product. surrounding community of Oceanside for retail goods and services as well as housing that are not made available on Base. The two aircraft carriers based in San Diego as well will bring a combined $1.5 billion to the economy.

DEL ORO MARKETPLACE | 29 Oceanside Developments

OCEAN RANCH CORPORATE CENTRE, RANCHO DEL ORO TECHNOLOGY PARK, SEAGATE CORPORATE CENTER, OCEANIC BUSINESS PARK & PACIFIC COAST BUSINESS PARK

College Blvd.

AMB Paciﬁc Coast Ocean Ranch Corporate Centre Business Park 124 AC St. Cloud Paciﬁc Marine Residential Credit Union Old Grove Rd. Lot 26 FedEx Kaiser 2.15 AC Open Space Distribution Medical Center Center Lot 15 314,977sq. ft. Lot 24 Rocky Point Dr. Olli Lot 23 Lot 30 Salumeria56,000 5.02 AC Amerillum Lot 20 6.67 AC sq. ft. Parcel 4 54,000 sq. ft. Lot 21 83,000 1.579 Lot 19 & sq. ft. AC Coca-Cola Expansion 1.005 ParcelAC 2 Guth Maritime Way17,184 193,800 sq. ft. Windansea St. Lot 20 Business Navy Federal sq. ft Gilead Sciences 132,000 sq. ft. Calle Center Credit Union Rancho del Oro o Parcel 3 203,000 sq. ft. Lot 13 Nique 1.526 AC Parcel 8 14,967 .758 AC Trade Show Technology Park Parcel 1 sq. ft l .928 AC Caliber Collision ExecutiveLa Petite N Center Academy Ocean Ranch Blvd. Hydraunautics Genentech Neon Tech

Venture Corp. First Park at Pharmaceuticals Dupaco, Inc. Corp.

La Cantina venida del Or

Ocean Ranch Lot 17 l 227,100 sq. ft. a Embr-Riddle A e 237,276 sq. ft. Doors 529,000 sq. ft. Lot 16 4.06 AC Aeronatical HK Plastics R Bergensons

University La Paciﬁca I 5.60 AC 17 aProperty Srvc, Inc Post Carbon z a 226,220 sq. ft. l by Design P Suja MagnaFlow Ofﬁce Not a part ida Ocean Ranch Plaza 100,000 sq. ft ven 80,000 sq. ft. Brixton Juice Site A RICH LTD Expansion Cornwell POP Displays Gilead Biotech Lot 13 Sciences, Inc 3 AC Marriott Sepro Center College Blvd. Membrane 80,900 sq. ft. Avenida de la Plata Monterey Seagate Corporate Center Gilead Fin. Srvcs, 384,500 sq. ft. VA r. Sciences, Inc Inc. Quantam r D The Coastal Plaza del Oro Clinic nte Academies Learning Ce Titleist Shopping Center te OC Riptide PlumbMaster Inc. OPD Courtyard Seagate Way ra Oceanic Triple D&D o by o Target Billing n p Business Park Colorado Elec. ti Matrix Membrane Marriott r Pla Discovery o Calle Trade Ahow Exec El Corazon Isle C Kirsch Therapy Oceanic Dr. Hobie Cat Co. SouthweCal-Mil,st Inc.

l O l Employment Dev. Nova Voice Cable Solutions Greene Senior & Data Systems Inc. Amﬂex PlasticIsnternational Titleist Performance Center PrecisionNative Rayo OneSource Calvary Aspen Cooling One Bouquet Distributing 4.8 AC & Heating HVAC Compound Medical Trendpak/ Church MMA & Fitness Robert Mann El Pollo

Rancho del Oro Rd. Oro del Rancho Loco

d. Oceanside Blv OCEANSIDE AVAILABLE LOTS PROJECTS UNDER CONSTRUCTION ECONOMIC AVAILABLE LOTS PENDING PROJECTS DEVELOPMENT Sprinter Transit Station 2016

Del Oro Marketplace

30 | AREA OVERVIEW Industrial/Office Residential Developments Developments D R

N A I D N I

G N I P E

CITY OF E

L OCEANSIDE CITY OF OCEANSIDE S RECENT RESIDENTIAL DEVELOPMENTS RECENT INDUSTRIAL/OFFICE DEVELOPMENTS

MARCH/APRIL 2017 V SLEEPING INDIAN RD MARCH/APRIL 2017 L B

D F

I R

R E G

I R

E H

S D

I N

A M R W V 22 D S A L

D G

R U

O E

R D

L I RD W R IVE N R VE ON A MISSI

DOUGLAS DR VD

RIFT BL N RIVER RD VE 19 MISSION A ANDERG N RIVER RD N V SA N TA

San Luis Rey River F E A VE MELROSE

D N RIVER RD N SANT V L B A 20 FE A SAN LUIS REY RIVER VE

21 M

18 E

E R G O E

L S

VD L E BL NORTH O NO SCALE C O L

17 D MELROSE G R O V NORTH 16 22 E

R R

R OLLEGE D A D C D NO SCALE N R C

25 L

D 15 O 23 E E V N 13 L RANCHO A I E N DR V M A 17 Lot IO ES 10 26 WY SS A M X I C O 16 6 E M 7 L R

E O MISSION A 11

14 DEL RD 9 15 ORO Lot 16 Lot 17 OLD 24 F 21 O

U A RD 7 12 V E GR RD S 8 N IDA D E MESA DR OVE S L A O WY M R ES T 6 O 76 EX EL CAMINO REAL 12 A 18 13 DR PACIFIC COAST R D BUSINESS PARK

C OCEANSIDE BLVD FOUSSA A N R INSET Y A 26 O N MESA DR N C H

T BLDG. 1 O 17 Lot D R 1 RD 26 F 16 W OCEANSIDE BL Y CAN VD I- R 5 ANCHO Y BLDG. 4 ON D 13

3 E L 15 O

DR C R 4 O 2 O BLDG. 3

11 A BLDG. 2 FWY I-5 S T R

H 1 D W Y 11 DEL 4 5 5 10 2 3

C Lot 16

O O OR Lot 17 AST HWY 27 BLVD

8 LAKE RD 28 FWY 78 OCEAN RANCH INSET T o S LAK a a E BL n n VD 9 d D T VD i ie BL ju g a o FWY 78 LAKE n MAP INSET OF DOWNTOWN a DR SA ME LAKE BL . VD D R 10 N O N N A 9 C 1 . 7 HORNE ST ON RD 8 AY W AY CLEMENTINE ST W CANN ARDNE NEPTUNEFREEM WEITZEL V DITM AD 6 WINDW 11 AN ST A S AR ST T

AY SHER DR W TFI 3 d - Downtown P A SPOR TRANSIT CORRIDOR C IFIC ST SURFRIDER AY CLE CIVIC CENTER DR W W VELAND C O VIE AST HWY VE SPRINTER TRANSIT STATION TREMONT ST PIER TRANSIT CORRIDOR THE STRAND MY 4 P ERS ST MISSION A A GAZE DR CIFIC ST SEA 2 A ST SPRINTER TRANSIT STATION TOPEK

PENDING RESIDENTIAL DEVELOPMENT FOR THE CITY OF OCEANSIDE PENDING INDUSTRIAL/OFFICE DEVELOPMENT IN THE CITY OF OCEANSIDE

1. SEACLIFF TERRACES (52 UNITS) *e d 16. THE VILLAS (218 SENIOR UNITS) *a 1. HERITAGE HILLS MEMORY CARE FACILITY (32,616 SQ. FT.) *c 11. FEDEX DISTRIBUTION CENTER (306,054 SQ. FT.) *c 2. CLEVELAND ST. BEACH LOFTS (10 CONDO UNITS)*uc d 17. VILLA STORIA (420 UNITS) *uc 2. SCRIPPS OUTPATIENT CARE FACILITY (85,000 SQ. FT.) *a 12. 4096 AVENIDA DE LA PLATA (24,036 SQ. FT.) *c 3. PORTOLA (12 CONDOS, 4 LIVE-WORK LOFTS) *e d 18. 4617 N. RIVER RD. (450 UNITS) *p 3. PACIFIC VIEW MEDICAL OFFICE (39,835 SQ. FT.) *a 13. PACIFIC COAST COLLECTION (397,115 SQ. FT.) d 4. TENTEN MISSION (90 LIVE-WORK LOFTS) *e 19. N. RIVER VILLAGE MIXED-USE PROJECT (13,684 SQ. FT.) *c 4. MEDICAL OFFICE BUILDING (26,000 SQ. FT.) *a A. BUILDING 1 (109,170 SQ. FT.) *a 5. CLEVELAND ST. TOWNHOMES (8 UNITS) *uc 20. SPRING CREEK SENIOR COMMUNITY (131 UNITS) *uc 5. TRI-CITY MEDICAL CENTER (57,476 SQ. FT.) *c B. BUILDING 2 (51,102 SQ. FT.) *a 21. GUAJOME CREST HOMES (36 UNITS) *a 8. BELLA TERRA APARTMENTS (15 UNITS) *e 6. OCEAN RANCH CORPORATE CENTRE (400 AC.) C. BUILDING 3 124,581 SQ. FT.) *a 9. MORSE ST. TOWNHOMES (38 UNITS) *uc 22. SUNDANCE NATURAL FOODS PROPERTY (19 UNITS) *a D. BUILDING 4 (112,262 SQ. FT.) *a 7. FIRST PARK @ OCEAN RANCH (237,276 SQ. FT.) *c 10. VINE ST. COLLECTION (58 TOWNHOMES) *e 23. MELROSE HEIGHTS (312 UNITS) *a 15. OLLI SALUMERIA (80,000 SQ. FT.) *c A. SUJA JUICE (171,000 SQ. FT.) 11. MAXSON (22 SINGLE FAMILY HOMES) *a 24. PACIFIC RIDGE (317 UNITS) RPRN LAND COMPANY *uc 16. KAISER MEDICAL CENTER (80,284 SQ. FT.) *c B. BRIXTON CLOTHING (65,600 SQ. FT.) 12. MISSION COVE AFFORDABLE HOUSING (150 UNITS + 138 SENIOR UNITS) *uc 25. PRESIDIO AT RDO (64 UNITS) *p 8. MAGNAFLOW EXPANSION (100,000 SQ. FT.) *c 17. PACIFIC COAST BUSINESS PARK (124 AC.) 13. OCEANSIDE MESA (22 UNITS) *uc 26. PARK VILLAS AT EL CORAZON (80 RESIDENTIAL UNITS) *e 18. DA VITA DIALYSIS MEDICAL BUILDING (10,655 SQ. FT.) *c 14. OCEANPOINTE (158 CONDO UNITS) *e 27. VISTA PACIFIC (16 DETACHED CONDOS) *e 9. COCA COLA EXPANSION (193,800 SQ. FT.) *c 15. RANCHO VISTA (29 UNITS) *e 28. IVY RIDGE ESTATES (5 RESIDENTIAL UNITS)*a 10. WINDSTAR OCEAN RANCH (200,000 SQ. FT.) *e

*a - Application on File *e - Entitled *uc - Under Construction *c - Construction Complete *p - Pending Application *a - Application on File *e - Entitled *uc - Under Construction *c - Construction Complete *p - Pending Application ECONOMIC DEVELOPMENT • www.oceanside.ca.us • 760-435-3352 ECONOMIC DEVELOPMENTwww.oceanside.ca.us760-435-3352

Del Oro Marketplace Del Oro Marketplace

DEL ORO MARKETPLACE | 31 SanOceanside Diegois a part of the Demographics San Diego County which is a county located in the southwestern corner of the state of California. With a population of 3,095,313, San Diego County is the second-most populous county in California and the fifth-most populous in the United States. Most of the county has a mild Mediterranean climate to semiarid climate, though there are mountains that receive frost and snow in the wintertime. AMC CLASSIC MISSION MARKETPLACE Tourism plays a large part in the economics of the San Diego MISSION SAN LUIS REY metropolitan area. Tourists are drawn to the region for a well- rounded experience, everything from shopping to surfing as well as its mild climate. Its numerous tourist destinations include Horton Plaza, Westfield UTC, Seaport Village, Westfield Mission Valley and Fashion Valley Mall for shopping, SeaWorld San Diego and LEGOLAND California amusement parks.

PACIFIC OCEAN

San Diego Demographics

2022Population Projection 150,7443 Mile 5329,497 Mile 10601,210 Mile 2017 Estimate 143,541 312,133 563,482 2010 Census 135,868 292,576 518,145 Growth 2017-2022 5.02% 5.56% 6.70%

2022Households Projection 350,717 Mile 5113,090 Mile 10205,021 Mile 2017 Estimate 48,169 107,058 192,240 Growth 2017-2022 5.29% 5.63% 6.65%

2017Households Est. Average 3 Mile 5 Mile 10 Mile Hotels $73,862 $77,127 $86,268 Household Income Entertainment/Cultural/Office

Golf ♦Top♦ Qualcomm Tourist Stadium ♦♦ Seaport Attractions Village ♦♦ Legoland Fitness ♦♦ Balboa Park ♦♦ San Diego Zoo ♦♦ Hotel Del Coronado ♦♦ SeaWorld ♦♦ Gaslamp Quarter ♦♦ Torrey Pines Golf Course Retail

32 | AREA OVERVIEW Getting Around

AsNORTH a part COUNTY of the North SPRINTER County Transit District, the SPRINTER is a light rail line operating between Oceanside and Escondido. Serving the cities of Oceanside, Vista, San Marcos, and Escondido, the line provides service to Palomar College, California State University San Marcos and Del Oro Marketplace. The SPRINTER uses the pre-existing 22 mile Escondido Branch track of the San Diego Northern Railroad where it operates every 15 minutes.

BeingSAN DIEGO only 3 INTERNATIONALmiles from downtown AIRPORT San Diego, this airport is easily accessible. San Diego International Airport is ranked as the 4th best airport in North America. Within the airport, guests will find over 80 shops and restaurants to occupy their time before their flights. Many of the food vendors showcase San Diego’s craft beers and delicious seafood.

TheSAN MetropolitanDIEGO MTS Transit System (MTS) offers quick transportation to locations all over San Diego such as Downtown San Diego, Fashion Valley and Mission Viejo. This is especially popular among college students as the MTS takes students from San Diego State University to Qualcomm Stadium where the SDSU Aztec football team plays.

AMTRAK offers rail services running out of three locations in San Diego; Old Town, Downtown San Diego, and Sorrento Valley. The popular Pacific Surfliner takes passengers up the coast of California from San Diego to Orange County, Los Angeles, Santa Barbara and San Luis Obispo.

DEL ORO MARKETPLACE | 33 TENANT OVERVIEW

34 | TENANT OVERVIEW TENANT OVERVIEW

DEL ORO MARKETPLACE | 35 Mwww.aboutmcdonalds.comC DONALD’S McDonald’s is the world’s leading global food service retailer. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women. McDonald’s serves an average of 70 million customers every single day. The restaurant has the largest share in the fast food restaurant industry in the United States.

Ownership Public

Revenue $25.41B

Headquartered Oak Brook, IL

YOGURTLANDwww.yogurt-land.com Yogurtland is an international franchise chain of frozen yogurt restaurants. Yogurtland has stores in twenty states in the United States and also several other countries. The yogurt chain is popular for its self-serve format and inexpensive prices.

Ownership Non-Public

Revenue NA

Headquartered Irvine, CA

36 | TENANT OVERVIEW CHIPOTLEwww.chipotle.com Chipotle is a popular quick-service restaurant chain. With over 2,000 locations, the eatery is known for their burritos and other Mexican food items. Customers can create any type of burrito, salad, bowl, or tacos. The company claims to offer more than 65,000 choices. The company is devoted to finding the very best ingredients with respect for animals, farmers and the environment with their signature “Food with Integrity” dedication.

Ownership Public

Revenue $4.5B

Headquartered Denver, CO

DOLLARwww.dollartree.com TREE Dollar Tree locations carry a mix of housewares, toys, seasonal items, food, health and beauty aids, gifts, and books. At Dollar Tree shops most goods are priced at $1 or less while Family Dollar merchandise is usually less than $10. The stores are located in high-traffic strip centers and malls often in small towns. It purchased fellow discounter, Family Dollar in 2015, bolstering competitive position against Dollar General.

Ownership Public

Revenue $15.50B

Headquartered Chesapeake, VA

DEL ORO MARKETPLACE | 37 CHASEwww.chase.com JPMorgan Chase & Co. is a multinational banking and financial services holding company. Boasting some $2.6 trillion in assets, JPMorgan Chase is the largest bank holding company in the US. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.

Ownership Public

Revenue $101B

Headquartered New York, NY

PANDAwww.pandaexpress.com EXPRESS Panda Express is a fast casual restaurant chain that serves American Chinese cuisine. It is the largest Asian segment restaurant chain in the United States. The chain offers customers a wide variety of Chinese inspired dishes such as Orange Chicken, Beijing Beef, Kung Pao Chicken and fried rice. No MSG is added to any of the items at Panda Express after it has been delivered to the restaurant, nor does Panda Express purchase from any suppliers who add MSG.

Ownership Private

Revenue $2.2B

Headquartered Rosemead, CA

38 | TENANT OVERVIEW` DEL ORO MARKETPLACE | 39 M C DONALD’S LEASE ABSTRACT Lessee McDonald's Corporation, a Delaware corporation Lessor College/Oceanside Southwest, LLC Guarantor None Building Size (SF) 5,054 Rent Commencement Date December 20, 2002 Expiration Date December 19, 2022 Lease Term 240 Months Remaining Lease Term 67 Months No. & Term of Options (4) 5-year options Contract Rental Rate Total $/Yr.

Remaining Lease Term $99,936 (Current-12/19/22)

1st Option (12/20/22-12/19/27) $124,841

2nd Option (12/20/27-12/19/32) $139,531 3rd Option (12/20/32-12/19/37) $155,951 4th Option (12/20/37-12/19/42) $174, 303 Escalations Total $/Yr.

$111,696 12/20/18 None

Tenant shall be responsible for reimbursing Landlord Tenant’s pro rata cost of operating, Lessee Operating Expenses maintaining, cleaning, and other operating expenses. Tenant shall pay Landlord’s supervision fee of 10% of the total common area expenses.

Operating Expense Caps None Notable Lessee Expense Exclusions None

Tenant shall pay to Landlord its pro rata share of real estate property taxes of the assessed Property Tax Expenses parcel of the tenant.

Tenant in responsible for all repairs needed to keep interior of the portions of the premises in Maintenance & Repairs good order. Estoppels Tenant has thirty days to deliver Estoppel

Source: Lease

40 | EXECUTIVE SUMMARY DEL ORO MARKETPLACE | 40 JP MORGAN CHASE LEASE ABSTRACT Lessee JP Morgan Chase Bank, National Association Lessor Del Oro College, LLC Guarantor None Building Size (SF) 4,800 Rent Commencement Date April 1, 2007 Expiration Date April 30, 2022 Lease Term 60 Months Remaining Lease Term 59 Months No. & Term of Options (1) 5-year option Contract Rental Rate Total $/Yr.

Remaining Lease Term $216,000 (Current-4/30/22)

1st Option (5/1/22-4/30/27) $237,600

Total $/Yr. Escalations None Tenant shall be responsible for reimbursing Landlord Tenant’s pro rata cost of operating, Lessee Operating Expenses maintaining, cleaning, and other operating expenses. Property management fees are not to exceed 4% of minimum monthly rent.

Operating Expense Caps None

Notable Lessee Expense Exclusions None

Tenant shall pay to Landlord its pro rata share of real estate property taxes of the assessed parcel Property Tax Expenses of the tenant.

Tenant in responsible for all repairs needed to keep interior of the portions of the premises in Maintenance & Repairs good order.

Estoppels Tenant has thirty days to deliver Estoppel

Source: Lease

41 | LEASE ABSTRACT DEL ORO MARKETPLACE | 41 DOLLAR TREE LEASE ABSTRACT Lessee Dollar Tree Stores, Inc., a Virginia Corporation Lessor College/Oceanside Southwest, LLC Guarantor None Building Size (SF) 10,024 Rent Commencement Date February 28, 2003 Expiration Date May 31, 2018 Lease Term 60 Months Remaining Lease Term 11 Months No. & Term of Options (1) 5-year option Contract Rental Rate Total $/Yr.

Remaining Renewal Lease Term $147,553 (Current-1/31/20)

3rd Option (6/1/18-5/30/23) $166,900

Total $/Yr. Escalations None

Tenant shall be responsible for reimbursing Landlord Tenant’s pro rata cost of operating, Lessee Operating Expenses maintaining, cleaning, and other operating expenses.

Tenant’s Common Area Costs are capped at $4.85 per square foot (in the first year of the lease) Operating Expense Caps: with a maximum increase of 3% annually on a non cumulative basis. The cap on expenses excludes real estate taxes and insurance. Notable Lessee Expense Exclusions None

Tenant shall pay to Landlord its pro rata share of real estate property taxes of the assessed parcel Property Tax Expenses of the tenant.

Tenant in responsible for all repairs needed to keep interior of the portions of the premises in Maintenance & Repairs good order.

Estoppels Tenant has twenty days to deliver Estoppel

Source: Lease

42 | EXECUTIVE SUMMARY DEL ORO MARKETPLACE | 42 RANCHO DEL ORO CAR WASH LEASE ABSTRACT Lessee Rancho Del Oro Car Wash, Inc Lessor College/Oceanside Southwest, LLC Guarantor Mark Conger and Becky Conger Building Size (SF) 3,129 Rent Commencement Date September 1, 2002 Expiration Date September 30, 2022 Lease Term 60 Months Remaining Lease Term 64 Months No. & Term of Options (2) 5-year options Contract Rental Rate Total $/Yr. Remaining Lease Term $94,922 (Current-5/31/18) 1st Option (6/1/18-5/30/23) $122,688 2nd Option (6/1/23-5/30/28) $141, 212 Escalations Total $/Yr. 10/1/17 $106,793 Tenant shall be responsible for reimbursing Landlord Tenant’s pro rata cost of operating, Lessee Operating Expenses maintaining, cleaning, and other operating expenses. Tenant shall pay Landlord’s supervision fee of 15% of the total common area expenses. Operating Expense Caps: None Notable Lessee Expense Exclusions None Tenant shall pay to Landlord its pro rata share of real estate property Property Tax Expenses taxes of the assessed parcel of the tenant.

Tenant in responsible for all repairs needed to keep interior of the Maintenance & Repairs portions of the premises in good order.

Estoppels Tenant has ten days to deliver Estoppel

Source: Lease

43 | LEASE ABSTRACT DEL ORO MARKETPLACE | 43 CONFIDENTIALITY & DISCLAIMER STATEMENT: This Offering Memorandum contains select information pertaining to the business and affairs of Del Oro Marketplace located at 4101 - 4171 Oceanside Blvd, Oceanside, CA 92056-6035 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Mobile +1 858 752 3078 Mobile +1 760 685 6873 Mobile +1 310 880 8418 Direct +1 858 546 4604 Direct +1 858 546 4651 Direct +1 949 873 0507 Direct +1 949 432 4518 Direct +1 949 873 0270 Fax +1 858 546 3985 Fax +1 858 546 3985 [email protected] [email protected] [email protected] [email protected] [email protected] Lic #01890271 Lic #01987844 Lic #01954256 Lic #00917639 Lic#01237516

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