At Lathrop Marketplace

DRIVE-THRU at Lathrop Marketplace

REPRESENTATIVE PHOTO NEW 10-YEAR LEASE | 2019 CONSTRUCTION | 10% INCREASES EVERY 5 YEARS

Mark Denholm John DuBois Jon Gianulias 916-274-4404 916-274-4424 916-274-4422 [email protected] [email protected] [email protected] CA DRE #01437366 CA DRE #00702547 CA DRE #01227233 www.corecre.com OFFERING SUMMARY KEY HIGHLIGHTS

Price $3,200,000 Strong Corporate Tenant • Long term 10-year lease with 10% increases every 5 years • S&P credit rating of BBB+ CAP Rate 4.25% • No early termination clause

Excellent Location with Drive-Thru Address • Freeway pylon (85’) and shopping center monument signage S.E. corner of Golden Valley Parkway • Freeway (I-5) visibility and River Island Parkway Lathrop CA 95330 • At entrance of Target anchored Lathrop Marketplace Lease Term • New retail developments in center (In-n-Out, Car Wash, hotel & Commencement August 1, 2019 (est) more) Expiration July 31, 2029 (est) • Traffic counts of 137,420 VPD Options Four, 5-yr options Increases 10% every 5 years High Growth Market with Strong Demographics • Housing boom with 3 master planned communities in immediate vicinity NO Early Termination • Strong local employment • Proximity to San Francisco Bay Area bringing more commuters seeking more affordable housing Year Built 2019 (est opening Aug 1, 2019) • Average household income of $91,665 within 3-mile radius

New Construction with Est Opening Date of August 1, 2019 • No deferred maintenance Gross Leasable Area 2,438 ± SF • Construction and roof warranties

Ease of Ownership Parcel Size 0.75± acres • Starbucks is responsible for all recurring operating expenses • Ideal for passive investor looking for secure income stream from highly rated tenant who is the category leader

2 INVESTMENT HIGHLIGHTS

3 STRONG CORPORATE TENANT

BEST IN CLASS INVESTMENT GRADE CREDIT TENANT

• Starbucks has signed a brand-new 10-year lease with no early termination clause • High-quality 2019 construction with drive-thru and outdoor patio seating • Fixed 10% rental increases every 5 years in both the initial term and options • New 10-year roof warranty in place and assignable at closing • Lease secured by an industry-leading, investment grade credit tenant with a BBB+ rating by Standard & Poor’s

• 2019 Q2 Comparable Store Sales Up 3% Globally, Driven by 4% #1 #5 Comparable Growth in the U.S. and 3% in China MOST VALUABLE WORLD’S RESTAURANT MOST • Global Net Store Growth of 7% Versus Prior Year, Led by 17% BRAND ADMIRED Net Store Growth in China WORLDWIDE COMPANY • Global Retail Business Reached 30,000 Stores in 2019 QSR Magazine Fortune • GAAP EPS of $0.53; Non-GAAP EPS of $0.60, Up 13% Year- (2018) (2019) #30 Over-Year MOST • Active Starbucks Rewards Membership in the U.S. Increases INNOVATIVE 13% Year-Over-Year to 16.8 Million COMPANY

Forbes (2018)

Source: www.starbucks.com

4 Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer and retailer of specialty coffee worldwide. The company operates in four segments: Americas, China/Asia Pacific; Europe, MIddle East and Africa, and Channel Development. Its stores offer coffee and tea beverages, iced tea and various food products, such as pastries, breakfast sandwiches and lunch items. The company also licenses its trademarks through licensed stores and grocery and food service accounts. It offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Frapuccino, Starbucks Reserve, Princi, Starbucks Doubleshot, Starbucks Refreshers and Starbucks VIA brand names.

In March 2019, Starbucks celebrated the opening of its 30,000th store in Shenzhen, China. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Company Type Public (NASDAQ: SBUX) 2019 Locations 30,000 in 78 markets worldwide 2019 Employees 350,000 2018 Fiscal Revenue $24.72 Billion 2018 Fiscal Income $4.52 Billion 2018 Fiscal Assets $24.16 Billion 2018 Fiscal Equity $1.17 Billion S&P Credit Rating BBB+

Source: www.starbucks.com

5 LEASE SUMMARY

Tenant Starbucks Corporation Rentable Square Feet 2,438 Lease Start Date (est) August 1, 2019 Lease Expiration Date (est) July 31, 2029 Lease Term 10 years Current Rent $136,000.00 Rent at 08/01/2024 $149,600.00 Renewal Options Four 5-year options Years 11 to 15 $164,560.00 Years 16 to 20 $181,016.00 Years 21 to 25 $199,117.50 Years 26 to 30 $219,030.00 Property Tax Tenant is responsible Insurance Tenant is responsible CAM Tenant is responsible HVAC Tenant is responsible Parking Lot Maintenance Tenant is responsible Roof & Structure Landlord is responsible Management Fee 10% Admin on OPEX

6 INCREDIBLE LOCATION

• Visibility from Interstate 5 and direct freeway access • Subject located at primary entrance to Lathrop Marketplace, with 290,000 SF of retail at completion • New tenants coming soon: In-n-Out, Car Wash, Hotel & more • Gateway to 11,000 homes at River Islands Master Planned Development with Phase 1 well underway & residents moving in daily • Gateway to Mossdale Village Master Planned Community with 2,187 finished homes and 658 remaining lots • Located approximately 70 miles east of San Francisco and San Jose • Surrounded by some of the city’s major employers • Combined traffic count of 137,420 vehicles per day

7 NEW CONSTRUCTION (Estimated Completion July 2019)

8 STARBUCKS IN THE NEWS

Starbucks President and Chief Executive Officer Kevin Johnson is pictured at the ROZ BREWER, Starbucks COO discusses new store designs at the Starbucks Annual Annual Meeting of Shareholders in Seattle, Washington on March 20, 2019. Meeting of Shareholders in Seattle.

Published 3:33 PM ET Thu, 25 April 2019 Updated 7:54 PM ET Wed March 20, 2019 STARBUCKS EARNINGS BEAT, RAISES FORECAST AS STARBUCKS IS MODERNIZING ITS STORES CUSTOMERS SPEND MORE PER VISIT For years, Starbucks has invested in making sure its stores are seen as Starbucks on Thursday reported earnings that outpaced analyst a third place for people to spend time, following home and work. It still expectations and raised its outlook for the year, as customers spent wants to be a third place. But it’s time for an update. more at its cafes in the U.S. and sales growth in China was stronger than expected. Shares of the company were unchanged in extended trading. The company said on Wednesday that it will modernize its stores to focus on “convenience, comfort and connection,” starting this summer “We are especially pleased with our comparable store sales growth in in New York City. Serving as a third place helps Starbucks differentiate our two lead markets, the U.S. and China, where we are also continuing itself from other coffee shops, and try to retain a home-grown feel even to drive strong new store development with industry-leading returns,” as it expands rapidly (the company just opened its 30,000th store). CEO Kevin Johnson said in a statement. Here’s what the company Plus, by rolling out different formats, Starbucks may help prevent store reported compared with what Wall Street was expecting, based on a cannibalization, when one location takes clients from another nearby. survey of analysts by Refinitiv: As part of the modernization, Starbucks is thinking about the full • Earnings per share: 60 cents, adjusted, vs. 56 cents expected “portfolio” of stores in the neighborhoods it serves, CEO Kevin Johnson • Revenue: $6.31 billion vs. $6.32 billion expected told CNN Business. • Same-store sales: 3% vs. 2.9% expected READ FULL ARTICLE READ FULL ARTICLE

9 MARKET OVERVIEW

10 HIGH-GROWTH MARKET/HOUSING DEVELOPMENTS

11 SITE PLAN

12 MAJOR EMPLOYERS

UPS Distribution Hub CROSSROADS COMMERCE Clorox NWRDC U.S. Army Depot CENTER Ghirardelli Chocolate Army & Airforce Outlet Exchange Service MAJOR EMPLOYERS Union Pacific Railroad Barbosa Cabinets Old Dominion Freight Boise Cascade Swiss American Valley Custom Powder Coating Swift Transportation Antonio Freight Express JCP Distribution Center Tesla Wholesale Service Berry Plastics Thyssenkrupp Industrial In-n-Out Corporate Center LATHROP Del Monte Foods TEC Egypt Tesla Motors Fleet Pride Ashley Furniture Distribution CBC Steel Buildings Home Depot Distribution TEC Equipment Con Fab California UPS Freight

CROSSROADS COMMERCE Primary Road to new River CENTER Island Homes Super Store Industries

RIVER ISLANDS PARKWAY John Deere Distr. Center Secondary Road to new River Pflug Packaging & Fulfillment Island Homes River Islands at Lathrop Lathrop Industrial 11,000 new homes Gardner Trucking Heritage Paper

ALTAMOUNT COMMUTER EXPRESS (ACE) RAIL TO SAN N JOSE & BART (BAY AREA RAPID TRASIT)

13 LATHROP ECONOMIC PROFILE

The city of Lathrop is located San Joaquin County, California at the intersection of Interstate 5 and SR 120. • Located on both sides of Interstate 5, one of the major freeways in California and the major north-south freeway along the entire West Coast • Within the metro triangle, which is bounded by the Bay Area, Stockton and Sacramento • Centrally located within a 30-minute commute of the East Bay Area & 60 minutes from Sacramento, San Francisco and the South Bay Area • Population of 22,836 (est 2019) with an average household income of $85,641 • Strategically centered between the Stockton, Manteca, and Tracy submarkets within San Joaquin County, which has a current population of neary 750,000 • The median home value in Lathrop is $417,500 per Zillow Market Overview as of March 31, 2019

• Strong demand for housing from the San Francisco Bay Area...moving to affordability

• Currently over 40,000 vehicles per day commute over the Altamont Pass into the San Francisco Bay Area for employment

• In 2017 Lathrop had the fifth largest percentage of household population growth in California

• One of Northern CA fastest growing and most comprehensive master planned communities

http://www.ci.lathrop.ca.us/

14 LOCATION MAP & DEMOGRAPHIC DATA

San Francisco: 73 miles San Jose: 70 miles Sacramento: 59 miles Stockton: 12 miles SFO: 75 miles SJC: 65 miles SMF: 72 miles SCK: 9 miles

7,137 Daytime Population (employees)

2.9% Population growth 2010 to 2019 within 1mile

5.9% Home value appreciation over past year

LATHROP 32,851 Estimated population within 3-mile radius

$91,665 Average household income within 3-mile radius

15 2264 Fair Oaks Blvd, Suite 201 | Sacramento, CA 95825 www.corecre.com

Exclusively listed by:

Mark Denholm 916.274.4404 [email protected] CA BRE #01437366

John DuBois 916.274.4424 [email protected] CA BRE #00702547

COPYRIGHT © 2019. ALL RIGHTS RESERVED. CORE Commercial (“Agent”), CA DRE Lic. 01904661, has presented this brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the Jon Gianulias date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has 916.274.4422 been received from sources believed to be reliable but is not guaranteed. Prospective purchasers and tenants should [email protected] independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The CA BRE #01227233 Property is being offered on an “as-is, where-is” and “with all faults” basis unless otherwise specified. Owner reserves the right to withdraw this offering at any time, without further notice, with or without cause.