Restaurant Row

An Absolute Net, Multi-Tenant Investment in Southern California

Offering Memorandum NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. STARBUCKS - ANCHORED RESTAURANT ROW

EXCLUSIVELY LISTED BY

PAUL BITONTI FIRST VICE PRESIDENT INVESTMENT

Office: (949) 419 - 3246 Cell: (714) 267 - 8582 Email: [email protected] License: CA 01325076

OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM Restaurant Row at Victorville RESTAURANT ROW at Victorville

TABLE OF CONTENTS

EXECUTIVE SUMMARY COMPETITIVE COMPARABLES SECTION 1 SECTION 4 01 Investment Overview • Investment Highlights 23 Sales Comparables

PROPERTY DESCRIPTION MARKET OVERVIEW SECTION 2 SECTION 5 07 Property Details • Regional Map • Property Photos 33 Location Overview • Location Highlights Market Aerial • Demographics

FINANCIAL ANALYSIS SECTION 3 15 Pricing Details • Operating Data • Rent Roll

EXCLUSIVELY LISTED BY: STARBUCKS - ANCHORED RESTAURANT ROW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0100075 EXECUTIVE SUMMARY Restaurant Row at Victorville // EXECUTIVE SUMMARY // Victorville at Row Restaurant

1 OFFERING SUMMARY

Marcus and Millichap has been selected to exclusively represent the sale of Restaurant Row in Victorville, California, a portfolio of category leading National and Regional restaurants. The subject property is a 11,300 square foot newly constructed inline retail pad sitting on a Restaurant Row at Victorville // EXECUTIVE SUMMARY 2.24 acre parcel. The real estate is well positioned in the trade area, located adjacent to the I-15 Freeway and Bear Valley Road on and off ramps. Fronting both Amargosa Road and the I-15 freeway, the property has excellent identity and traffic exposure. Traffic counts exceed 98,000 cars per day on the I-15 and 52,000 cars at Bear Valley and I-15. The location is prime in the trade area as evidenced by the new development that includes a 75 room Hawthorn Suites by Wyndham, Super Walmart, Kohl’s, Lowes Home Improvement, and a planned Home Goods, TJ Maxx, 24 Hour Fitness, as well as an additional 79 room Best Western Plus. Additionally, there is a proposed 128-bed Trauma Center, medical office building, physician village, day care, spiritual care development with a hotel. This project is comprised of 98 acres along Amargosa Road between Bear Valley and Main Street just 2.8 miles from the subject property. The project is part of the St. Joseph / St. Mary Healthcare system.

The tenant roster is a synergistic mix of restaurants consisting of Starbucks Coffee, Nekter Juice Bar, Which Wich Sandwiches, Pieology Pizza, Ono Hawaiian Barbeque, and Café Rio Mexican Grill. Access points and drive aisles provide excellent ingress and egress from the Hawthorn Suites by Wyndham, Walmart and Kohl’s for easy access to all of the restaurants. 76% of the leasable area (4 of 6 tenants) have corporate signature absolute net leases. The remaining two tenants are strong franchisees with excellent operational histories and personal rent guarantees. The investment provides annual rent growth with increasing cash flow and yield, protecting against inflation with a diversified base of strong restaurant tenants. The Quick Serve building is a catagory that was missing from Restaurant Row. It helps to provide additional choices, making this the main stop for the trade area and freeway traffic.

The Victor Valley includes the communities of Adelanto, Apple Valley, Hesperia, Lucerne Valley, Oak Hills, Phelan, Victorville and Wrightwood. Victorville is the business hub of the area and draws consumers from well beyond its immediate area. It is the largest commercial center between San Bernardino and the Nevada border. The city of Victorville is home to a large and diverse pool of workers and is home to 34 nearby universities, colleges and technical schools providing an abundant supply of skilled labor. Victorville has experienced tremendous growth over the last decade with the population increasing over 117% since 2000. The population continues to grow with projections of additional 20% growth over the next five years. Current population is 133,790 people in a 5 mile radius with an average household income of $76,267 within 1 mile of the property, and the high desert is in excess 2 of 500,000 people. Restaurant Row at Victorville // EXECUTIVE SUMMARY // Victorville at Row Restaurant

3 Restaurant Row at Victorville // EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

►► Victorville, California Restaurant Row

►► New Construction with Warranties

►► New 10 Year NNN Corporate Leases

►► Annual Rent Growth

►► Ease of Management Property

►► Explosive Trade Area Growth

►► Average Household Income: $76,267 Within a One Mile Radius

►► New Proposed Hospital on Amargosa 4 NNN LEASES WITH ANNUAL RENT GROWTH

EXCELLENT LOCATION, EXPLOSIVE TRADE AREA

TREMENDOUS DEMOGRAPHIC GROWTH. DIVERSE AND EXPERIENCED POOL OF WORKERS

98,000 CARS Restaurant Row at Victorville // EXECUTIVE SUMMARY // Victorville at Row Restaurant PER DAY ON I-15. 52,000 CARS PER DAY ON BEAR VALLEY RD 5 STARBUCKS - ANCHORED RESTAURANT ROW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0100075 PROPERTY DESCRIPTION Restaurant Row at Victorville // PROPERTY DESCRIPTION PROPERTY // Victorville at Row Restaurant

PARCEL MAP Restaurant Row at Victorville // PROPERTY DESCRIPTION

INTERSTATE HWY 15 Restaurant Row AT VICTORVILLE

10 SITE PLAN Restaurant Row at Victorville // PROPERTY DESCRIPTION PROPERTY // Victorville at Row Restaurant

11 STARBUCKS - ANCHORED RESTAURANT ROW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0100075 FINANCIAL ANALYSIS Restaurant Row at Victorville // FINANCIAL ANALYSIS FINANCIAL // Victorville at Row Restaurant

1713 PRICING DETAILS

SQUARE LEASE TENANT % OF GLA INITIAL LEASE TERM OPTIONS ANNUAL RENT ANNUAL RENT / SF ADMIN FEES RENT INCREASES FOOTAGE TYPE

Starbucks 2,000 17.70% 9/15/2016 - 9/14/2026 4 5-Year $126,240.00 $63.12 $3,253.56 10% Per 5 Years NNN Restaurant Row at Victorville // 11604 Amargosa Road, Address: 2.5% Annual Nekter 1,200 10.62% 7/17/2017 - 2/16/2027 1 5-Year $52,560.00 $43.80 $8,256.00 NNN Victorville, California 92392 Begins on Yr 3

Price: $10,410,000 Which Wich 1,500 13.27% 8/14/2017 - 8/13/2027 3 5-Year $66,600.00 $44.40 -- 10% Per 5 Years NNN

Pieology 2,000 17.70% 9/1/2017 - 8/31/2027 2 5-Year $89,790.00 $43.80 -- 2.5% Annual NNN Buildings 1 Ono BBW 1,800 15.93% 9/1/2017 - 8/31/2027 2 5-Year $78,840.00 $43.80 $2,352.00 10% Per 5 Years NNN Price Per Square Foot: $921.24 Café Rio 2,800 24.78% 6/19/2017 - 6/18/2027 2 5-Year $122,080.00 $43.60 $4,272 10% Per 5 Years NNN

GLA 11,300 SF TOTAL 11,300 100% $536,110.00 $18,133.56 CAP Rate 5.32%

FINANCIAL ANALYSIS Year Built 2017

Lot Size 2.24 Acres

Occupancy 100.00%

Net Operating Income $554,243.56

14 RENT ROLL

SQUARE LEASE TENANT % OF GLA INITIAL LEASE TERM OPTIONS ANNUAL RENT ANNUAL RENT / SF ADMIN FEES RENT INCREASES FOOTAGE TYPE

Starbucks 2,000 17.70% 9/15/2016 - 9/14/2026 4 5-Year $126,240.00 $63.12 $3,253.56 10% Per 5 Years NNN

2.5% Annual Nekter 1,200 10.62% 7/17/2017 - 2/16/2027 1 5-Year $52,560.00 $43.80 $8,256.00 NNN Begins on Yr 3

Which Wich 1,500 13.27% 8/14/2017 - 8/13/2027 3 5-Year $66,600.00 $44.40 -- 10% Per 5 Years NNN

Pieology 2,000 17.70% 9/1/2017 - 8/31/2027 2 5-Year $89,790.00 $43.80 -- 2.5% Annual NNN

Ono BBW 1,800 15.93% 9/1/2017 - 8/31/2027 2 5-Year $78,840.00 $43.80 $2,352.00 10% Per 5 Years NNN

Café Rio 2,800 24.78% 6/19/2017 - 6/18/2027 2 5-Year $122,080.00 $43.60 $4,272 10% Per 5 Years NNN ANALYSIS FINANCIAL

TOTAL 11,300 100% $536,110.00 $18,133.56 Restaurant Row at Victorville // // Victorville at Row Restaurant

FINANCIAL ANALYSIS FINANCIAL // Victorville at Row Restaurant

PRIMARY LEASE TERM ANNUAL Year 10 Year 9 Year 8 Year 7 Year 6 Year 5 Year 4 Year 3 Year 2 Year 1 (2) (3)

In additiontothe Annual Rent, Which Wich shallpayaPercentage Gross Salesover$1,500,000duringeach 2% timestheamountof calendaryear. rent of (1)

In additiontothe Annual Rent, OnoBBQ shallpayaPercentage Gross Salesover$3,000,000duringeach 3%timestheamountof calendaryear. rent of

In additiontothe Annual Rent, Nekter shallpayaPercentage Gross Salesover$1,400,000duringeach 2%timestheamountof calendaryear. rent of $138,864.00 $138,864.00 $138,864.00 $138,864.00 $138,864.00 $126,240.00 $126,240.00 $126,240.00 $126,240.00 $126,240.00 STARBUCKS RENT INCREASE $64,039.26 $62,477.32 $60,953.49 $59,466.82 $58,016.41 $56,601.37 $55,220.85 $53,874.00 $52,560.00 $52,560.00 NEKTER (1) WHICH $73,260.00 $73,260.00 $73,260.00 $73,260.00 $73,260.00 $66,600.00 $66,600.00 $66,600.00 $66,600.00 $66,600.00 (4) (2) NOI includes Admin Fees. $109,400.40 $106,732.09 $104,128.87 $101,589.14 $99,111.36 $96,694.01 $94,335.62 $92,034.75 $89,790.00 $87,600.00 PIEOLOGY ONO BBQ $86,724.00 $86,724.00 $86,724.00 $86,724.00 $86,724.00 $78,840.00 $78,840.00 $78,840.00 $78,840.00 $78,840.00 (3) $134,288.00 $134,288.00 $134,288.00 $134,288.00 $134,288.00 $122,080.00 $122,080.00 $122,080.00 $122,080.00 $122,080.00 CAFÉ RIO $606,575.66 $602,345.41 $598,218.36 $594,191.96 $590,263.77 $547,055.38 $543,316.47 $539,668.75 $536,110.00 $533,920.00 TOTAL $624,709.22 $620,478.97 $616,351.92 $612,325.52 $608,397.33 $565,188.94 $561,450.03 $557,802.31 $554,243.56 $552,053.56 NOI (4) ANNUAL CASH FLOW FINANCIAL ANALYSIS FINANCIAL Restaurant Row at Victorville // // Victorville at Row Restaurant

17 TENANT SUMMARY Restaurant Row at Victorville // COMPARABLE PROPERTIES

Tenant Name Starbucks Corporation Starbucks Corporation is an American coffee company and coffee- house chain. Starbucks was founded in Seattle, Washington in 1971. Lease Commencement 9/15/2017 Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some Lease Expiration 9/14/2027 of the world’s finest fresh-roasted whole bean coffees. As of Novem- Gross Leasable Area 2,000 SF ber 2016, it operates 23,768 locations worldwide. Starbucks has been awarded “One of the Most Admired Companies in America,” Original Term 10 years by Fortune for twelve years running. Ethisphere has also awarded the company as amongst the “World’s Most Ethical Companies” for eight Option Term 4 (5-year) years in a row. Starbucks has even been recognized in China and Pro Rata Share of Project 17.70% Canada for being considered to be “One of the Best Companies to Work For.” in 2014. Headquartered Seattle, Washington Starbucks is considered the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues No. of Locations 26,696 in the US by taste, quality, and customer experience while populariz- Website http://www.starbucks.com/ ing darkly roasted coffee. Starbucks is publicly traded as NASDAQ: SBUX.

18 TENANT SUMMARY

Tenant Name Nekter Juice Bar Privately-owned and founded in Southern California by two healthy living enthusiasts, Steve and Alexis Schulze, Nékter Juice Bar is ded- Lease Commencement 7/17/2017 icated to inspiring a community of kids and adults to live an active, well-balanced, health-minded and compassionate life. Now with over Lease Expiration 7/16/2027 70 corporate and franchise locations in California, Arizona, Colorado, Gross Leasable Area 1,200 SF Nevada and Texas, Nékter Juice Bar is a modern reinvention of the juice bar, and continues to be at the forefront of the juicing revolu- Original Term 10 years tion, offering an array of cold-pressed juices, smoothies, coffees, and acai bowls that are natural, unprocessed, nutrient-rich, great tasting, Option Term 1 (5-year) and affordable. The “Nékter Life” also includes making a positive Pro Rata Share of Project 10.6% difference by offering food with a purpose and by supporting char- itable organizations in the communities they serve. They use fresh, Headquartered Costa Mesa, California natural, and raw ingredients to maintain the integrity of their menu. All of Nékter’s products are designed to promote healthy living and No. of Locations 70 are natural, raw, and vegan in form. Their menu items are benefical to Restaurant Row at Victorville // COMPARABLE PROPERTIES COMPARABLE // Victorville at Row Restaurant Website http://www.nekterjuicebar.com health, delicious in taste, and affordable in price.

19 TENANT SUMMARY Restaurant Row at Victorville // MARKET OVERVIEW

Tenant Name Which Wich Superior Sandwiches Which Wich Superior Sandwiches is an American fast casual restaurant chain specializing in sandwiches and salads. It has its headquar- Lease Commencement 8/14/2017 ters in Downtown Dallas, Texas. As of December 2016, it has 404 locations open in 36 U.S. states as well as the District of Columbia, Lease Expiration 8/13/2027 along with 27 international locations in Bahrain, Guatemala, Kuwait, Gross Leasable Area 1,500 SF Mexico, Oman, Panama, Qatar, Saudi Arabia, and the United Arab Emirates. In 2007, the chain ranked as the fastest growing restaurant Original Term 10 Years chain concept with 50 operating stores or less, opening 9 locations during a four-month period at the beginning of the year. In 2009, Option Term 3 (5-year) the chain ranked as the sixth fastest-growing concept in the indus- Pro Rata Share of Project 13.27% try, according to restaurantchains.net. In 2013, the chain opened locations in Mexico City, Panama City, and Dubai. In 2015, the chain Headquartered Dallas, Texas opened three locations in Guatemala City. Which Wich is known for its ordering system, in which customers use red Sharpie markers to No. of Locations 440 mark up pre-printed menus on sandwich bags. They select a sand- Website https://www.whichwich.com/ wich from 10 categories, then choose the bread, cheese, spreads, and toppings. The sandwiches are then prepared, and delivered in the personalized sandwich bags.

20 TENANT SUMMARY

Tenant Name Pieology Pieology prides itself on providing the best tasting, healthiest pizza in the world. The fast-casual pizza restaurant is the fastest-growing Lease Commencement 9/1/2017 chain in America, according to data compiled by Technomic. Pieolo- gy offers customizable pies with toppings like pineapple, pepperoni, Lease Expiration 8/31/2027 and cilantro. The chain’s sales grew a whopping 230% in 2014 to Gross Leasable Area 2,000 $44.6 million, according to Technomic.

Original Term 10 years Pieology has 140 units in 11 states. The company expects to nearly double that number by the end of the year. 24 new locations are Option Term 2 (5-year) anticipated to open by the end of the summer. Pieology seeks the Pro Rata Share of Project 17.70% appeal of customers by allowing them to customize their pizzas (making it similar to Chipotle) — from wheat crust to gluten-free crust Headquartered Rancho Santa Margarita, CA to vegetarian pizzas to dairy-free cheese. There are 40 toppings, and a custom pizza is $10 or less. Pielogy also caters to the local de- OVERVIEW MARKET // Victorville at Row Restaurant No. of Locations 150+ mographic and alters the menu for each individual community. For Website http://www.pieology.com/ instance, it uses garlic from Gilroy, California, in its local pizzas there.

21 TENANT SUMMARY Restaurant Row at Victorville //

Tenant Name HGL Restaurant Group, LLC Ono Hawaiian BBQ specializes in Hawaiian cuisine by offering an au-

FINANCIAL ANALYSIS Lease Commencement 9/1/2017 thentic selection of Hawaiian “Plate Lunches” and a variety of island Lease Expiration 8/31/2027 inspired foods. “Ono” means delicious in Hawaiian . The key to being Ono is using fresh ingredients and making the dishes in-house dai- Gross Leasable Area 1,800 SF ly using their delicious recipes. They create their sauces from scratch and marinate their meats everyday for a blend of perfect flavor. They Original Term 10 Years hand roll their Katsu in panko bread crumbs and cook their soups Option Term 2 (5-year) fresh daily. Their Teriyaki and Katsu sauces are prepared in-house with the unique blend of authentic Hawaiian spices. Pro Rata Share of Project 15.93% They have over 70 corporately owned locations throughout California and Arizona, and are actively expanding into the Inland Empire, Or- Headquartered Diamond Bar, CA ange County, San Francisco Bay, Central Valley, Los Angeles County No. of Locations 70+ and Phoenix Metro area.

Website https://www.onohawaiianbbq.com/

22 TENANT SUMMARY FINANCIAL ANALYSIS FINANCIAL

Tenant Name Cafe Rio, Inc Cafe Rio, or Cafe Rio Mexican Grill, is a fast casual restaurant chain based in Salt Lake City, with branches in Arizona, California, Colora- Lease Commencement 6/19/2017 do, Florida, Idaho, Maryland, Montana, Nevada, Utah, Virginia, Wash- ington, and Wyoming. The company specializes in Mexican cuisine. Lease Expiration 6/18/2027 Its menu includes appetizers, tostadas, salads, burritos, desserts, Gross Leasable Area 2,800 SF enchiladas, tacos, quesadillas, soups, and beverages. The company also provides catering services. As of October 2017, the chain has Original Term 10 years 120 locations. Cafe Rio was started in 1997 by Steve and Tricia Stan- ley in St. George, Utah. In December 2004, Bob and Kathleen Nilsen, Option Term 2 (5-year) Spencer K Hill, along with SKM/Apax Partners purchased the chain, Pro Rata Share of Project 24.78% which at the time had six restaurants. In 2011, Dave Gagnon took over as CEO and COO at the same time as Bob Baker was appointed Headquartered Salt Lake City, UT President and CFO. The company expanded operations and current- ly has 120 operating restaurants. Cafe Rio’s recipes are inspired from Restaurant Row at Victorville // // Victorville at Row Restaurant No. of Locations 120+ the traditional cooking of the Rio Grande region of Northern Mexico, Website https://www.caferio.com/ Southern Texas and New Mexico.

23 STARBUCKS - ANCHORED RESTAURANT ROW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0100075 COMPARABLE PROPERTIES Restaurant Row at Victorville // COMPARABLE PROPERTIES COMPARABLE // Victorville at Row Restaurant

25 Restaurant Row at Victorville // COMPARABLE PROPERTIES

SALES COMPARABLES – SUMMARY

PRICE PER PROPERTY NAME STATUS PRICE CAP RATE FOOT

Restaurant Row at Victorville Just Listed $10,410,000 5.32% $921.24

Shoppes at Corona Vista On Market $5,595,000 5.00% $999.00

Spruce Plaza On Market $9,618,000 5.00% $1,074.04

Shops to Walmart - Ontario 8/17/2016 $5,968,800 5.02% $879.58

Amador Plaza - Dublin 7/20/2016 $4,900,000 4.50% $1,088.89

The Plaza - La Mesa 10/18/2017 $4,670,000 4.90% $824.65

Meridian Square - Concord 11/1/6/2016 $7,787,500 5.1% $927.08

26 6

3 2

1 Restaurant Row at Victorville // COMPARABLE PROPERTIES COMPARABLE // Victorville at Row Restaurant 5

27 SALES COMPARABLES Restaurant Row at Victorville // COMPARABLE PROPERTIES

RESTAURANT ROW AT VICTORVILLE 1 SHOPPES AT CORONA VISTA - PAD 1 11604 Amargosa Rd, Victorville, CA 92392 924 East Ontario Ave, Corona, CA 92881

SALES PRICE $10,410,000 SALES PRICE $5,595,000

Sale Date Just Listed Sale Date On Market

Year Built 2018 Year Built 2018

Cap Rate 5.32% Cap Rate 5.00%

Price Per SF $921.24 Price Per SF $999.00

ADDITIONAL INFO ADDITIONAL INFO

Gross Leasable Area 11,300 SF Gross Leasable Area 5,600 SF

Lot Size 2.24 Acres Lot Size 0.98 Acre

Brand new 2018 construction, 10 year corporate NNN leases with Shadow-anchored by Smart & Final. Supercuts is on a 7-year term increases with 3% annual increases. Dunkin Donuts and MOD Pizza are on 10- year terms with 10% increases every 5 years.

28 2 SPRUCE PLAZA 3 SHOPS TO WALMART - ONTARIO 10877 E Foothill Blvd, Rancho Cucamonga, CA 91730 1337 N Mountain Ave, Ontario, CA 91762

SALES PRICE $9,618,000 SALES PRICE $5,968.800

Sale Date On Market Sale Date 8/17/2016

Year Built 2017 Year Built 2014

Cap Rate 5.00% Cap Rate 5.02%

Price Per SF $1074.04 Price Per SF $879.58

ADDITIONAL INFO ADDITIONAL INFO

Gross Leasable Area 8,955 SF Gross Leasable Area 6,786 SF

Lot Size 1.22 Acre Lot Size 1.05 Acre Restaurant Row at Victorville // COMPARABLE PROPERTIES COMPARABLE // Victorville at Row Restaurant

43% of GLA are Franchisees. Tenants are on 10-year leases with 2 (5- Tenants include T-Mobile, Yogurtland, Waba Grill and Wells Fargo. year) options. There are 10% rent increases every 5 years. Admin fees There is no tenant rollover until 2021 with 77% GLA leased through are counted as income. 2026.

29 SALES COMPARABLES Restaurant Row at Victorville // COMPARABLE PROPERTIES

4 AMADOR PLAZA - DUBLIN 5 THE PLAZA - LA MESA 7295 Amador Plaza Rd, Dublin, CA 94568 8216 Parkway Dr, La Mesa, CA 91942

SALES PRICE $4,900,000 SALES PRICE $4,670,000

Sale Date 7/20/2016 Sale Date 10/18/2017

Year Built 2014 Year Built 2016

Cap Rate 4.50% Cap Rate 4.90%

Price Per SF $1,088.89 Price Per SF $824.65

ADDITIONAL INFO ADDITIONAL INFO

Gross Leasable Area 4,500 SF Gross Leasable Area 5,663 SF

Lot Size 0.75 AC Lot Size 0.89 AC

Property is lease to Two Corporate tenants: The Habit and Freeb!rds. Property is leased to The Habit and USE Credit Union. At the time of sale, both tenants have 8 years remaining on Primary lease term with 5-year options. 10% rent increases every 5 years.

30 6 MERIDIAN SQUARE - CONCORD 1100 Concord Ave, Concord, CA 94520

SALES PRICE $7,787,500

Sale Date 11/16/2016

Year Built 2015

Cap Rate 5.1%

Price Per SF $927.08

ADDITIONAL INFO

Gross Leasable Area 8,400 SF

Lot Size 0.89 AC

Tenants include The Habit Burger, Jersey Mikes, Noodles & Company, PROPERTIES COMPARABLE // Victorville at Row Restaurant Blaze Pizza.

31 SALES COMPARABLES Restaurant Row at Victorville // COMPARABLE PROPERTIES

Avg 4.92%

32 Avg $965.54 Restaurant Row at Victorville // COMPARABLE PROPERTIES COMPARABLE // Victorville at Row Restaurant

33 STARBUCKS - ANCHORED RESTAURANT ROW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0100075 MARKET OVERVIEW MARKET OVERVIEW Restaurant Row at Victorville // // Victorville at Row Restaurant

35 Restaurant Row at Victorville // MARKET OVERVIEW COUNTY OVERVIEW

San Bernardino County is the largest county in the contiguous United States: The county covers more than 20,000 square miles of land. There are 24 cities and towns in the county and multiple unincorporated areas. The county is bordered by Los Angeles, Orange, Riverside, Inyo and Kern counties as well as the Arizona and Nevada state lines. Interstates 10, 40, and 15, the major vehicle and truck routes into Southern California all travel through San Bernardino County as do the major rail freight routes. San Bernardino County has a population of 2.1 million people and a total of 705,700 wage and salary jobs. The per capita income is $34,414 and the average salary per worker is $54,046. There are at least 35 official wilderness areas in the county that are part of the National Wilderness Preservation System. This is the largest number of any county in the United States. Places of interest within the County include: The Mojave National Preserve, Calico Ghost Town, Zzyzx - a small desert settlement that used to be a health spa and is now the Desert Studies Center, Joshua Tree National Park, San Bernardino National FOrest - home to Big Bear Lake outdoor activities, Goldstone Deep Space Com- munications Complex, Snow Summit and Bear Mountatin Ski Resort.

California State University San Bernardino

36 MAJOR EMPLOYERS AIRPORTS

California State University, San Bernardino San Bernardino International Airport Caltrans District 8 LA/ Ontario International Airport City of San Bernardino Southern California Logistics Airport Community Hospital of San Bernardino Apple Valley Airport, Baker Airport, Barstow-Daggett Airport, Chino Airport, Needles Airport San Bernardino City Unified School District Big Bear City Airport, Cable Airport, Redlands Municiple San Bernardino County Sheriff’s Department Airport San Bernardino County Superintendent of Schools San Manuel Band of Mission Indians MAJOR ROADWAYS

Interstate 10, 15, 40, 215 State Route 15, 95, 395, 2, 18, 38, 58, 60, 62, 66, 71, 83, 127, 138, 142, 173, 178, 189, 247, 259, 330

CITY OVERVIEW

Victorville is a city located in the Victor Valley of southwestern San Bernardino County, California. Its estimated population as of July 1, 2013 was 121,096. Southern California Logistics Airport, located in Victorville is a 2,500-acre world-class aerospace services hub, providing aircraft owners, manufacturers and aerospace service providers with an ideal location to serve the global market. It is also the top employer of the city, followed by Victor Valley College, Desert Valley Hospital, Verizon, Victorvalley Union High School District and Victor Elementary School District. The Victor Valley offers numerous recreational options. The Performing Arts Center, located on the Victor Valley College campus, provides a wide variety of cultural entertainment including concerts, speakers, plays, musicals, and more. Old Town Victorville boasts an eclectic selection of antique stores and specialty shops and is home to the nostalgic Route 66 Museum. The Victor Valley Mu- seum, located at Jess Ranch in Apple Valley, provides a look at local history, and the Apple Valley Science and Technology Center gives kids of all ages a glimpse of the future. The San Bernardi- OVERVIEW MARKET // Victorville at Row Restaurant no County Fair in Victorville livens up each spring with carnival rides, livestock competitions, exhibits, a rodeo, a demolition derby, celebrity concerts and much more. Throughout the year the fairgrounds plays host to many other activities including the annual High Desert Opportunity Business Outlook Conference, Home & Garden Show, and Fourth of July Fireworks Spectacular. 37 Restaurant Row at Victorville // MARKET OVERVIEW DEMOGRAPHICS HIGHLIGHTS 133,790 5-MILE POPULATION

$76,267 AVERAGE HOUSEHOLD INCOME 1-MILE

85.31% OWNER OCCUPIED HOUSING UNITS

38 POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 1,734 21,892 52,582 2010 Population 5,583 49,485 110,069 2014 Population 5,687 51,013 114,163 2019 Population 7,159 61,045 133,790

INCOME 1-MILE 3-MILES 5-MILES

Average $76,267 $68,547 $62,313

Median $69,739 $58,913 $51,576

Per Capita $19,118 $18,466 $17,481

HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 4,177 9,817 41,165 2010 Households 3,980 9,904 43,947 2016 Households 4,177 12,099 49,880 2021 Households 4,280 12,381 51,436

Housing (2015) $72,753 $74,485 $77,546 OVERVIEW MARKET // Victorville at Row Restaurant

Restaurant Row AT VICTORVILLE

EXCLUSIVELY LISTED BY PAUL BITONTI First Vice President Investments Office: (949) 419 - 3246 Cell: (714) 267 - 8582 Email: [email protected] License: CA 01325076