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™ Oceanside, California 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 <SAN DIEGO ±33 MILES CAMP PENDLETON 7 MILES> 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.