Blaze Pizza & Habit Burger with Drive-Thru

BLAZE PIZZA & HABIT BURGER WITH DRIVE-THRU

LOS BANOS, CA Overview

BLAZE PIZZA & HABIT BURGER

1335 WEST PACHECHO BLVD, LOS BANOS, CA 93635

$3,943,000 5.25% PRICE CAP

LEASEABLE SF LAND AREA LEASE TYPE 5,500 SF 0.68 Acres LL Roof & Structure*

LEASE EXPIRATION YEAR BUILT PARKING 2027 2017 39 Spaces *15 YEAR ROOF WARRANTY

Pad to Target & Walmart anchored trade area. Habit Burger has a drive-thru, creating more value for the suite. New 10-year leases with rental increases every 5 years. Benefitting from 28,000 VPD along West Pacheco Blvd. Average household income within a 1-mile radius exceeds $82k. New Construction.

THE OFFERING provides an opportunity to acquire a newly constructed Habit Burger & Blaze Pizza in Los Banos, CA, which is just 80 miles from San Jose. Out positioning its JOHN ANDREINI neighbors, the property’s uses are “Amazon-proof,” and is located in front of the top traffic [email protected] generators in the market with tenants such as Target, Walmart Supercenter, La Esperanza PH: 415.274.2715 Supermarket, Starbucks, and more. The property has excellent visibility, is located at the CA BRE#: 01440360 entrance of one of the most trafficked shopping centers in the city, has 2 end caps with a drive-thru, and has combined traffic counts of over 28,000 vehicles per day - all factors which combine to make this property one of the premier strip centers in Los Banos.

IMMEDIATE AREA RETAILERS include Target, Walmart Supercenter, Starbucks, McDonald’s, Petco, Hobby Lobby, Rue 21, Tractor Supply Co, and many others.

SURROUNDING AREA RETAIL

REVENUES OF $335-$338 MILLION 3 Zoomed-In Aerial

LOS BANOS AIRPORT

28,000 VPD

33 W PACHECO BOULEVARD

LOS BANOS MIDDLE SCHOOL

CREEKSIDE BADGER ROAD FLAT JUNIOR HIGH SCHOOL 2,940 VPD SACRAMENTO 4,620 VPD

S ORTIGALITA ROAD 4 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. Buyer must verify the information and bears all risk for any inaccuracies. Zoomed-Out Aerial

ROAD

SOUTH

ORTIGALITA

LOS BANOS HIGH SCHOOL W I STREET

OUR LADY OF FATIMA SCHOOL

28,000 VPD

33 W PACHECO BOULEVARD

LOS BANOS WESTSIDE ELEMENTARY UNION ELEMENTARY

H STREET HENRY MILLER ELEMENTARY

CITY OF W I STREET LOS BANOS LOS BANOS AIRPORT

MIANO ELEMENTARY MERCED COUNTY MEMORIAL HOSPITAL SAN LUIS HEAD START LOS BANOS DAY SCHOOL

SACRAMENTO W H STREET

N 2ND STREET 5 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. Buyer must verify the information and bears all risk for any inaccuracies. Area Business Summary

SURROUNDING RETAILERS

AAA H&R Block State Farm Insurance Costco Jack in the Box Target CVS McDonald’s The Home Depot Denny’s Rite Aid Tractor Supply Co. Farmers Insurance Safeway Walmart Supercenter Food 4 Less Starbucks Wells Fargo Hobby Lobby

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or SURROUNDING AREA RETAIL implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

TOTAL 1-MILE 3-MILES 5-MILES

Employees 1,930 8,294 9,167

Daytime 5,805 33,230 41,378 Population

KEY 1-MILE 3-MILES 5-MILES 6 Surrounding Area Retail

7 SURROUNDING AREA RETAIL Income & Expense

CURRENT Price: $3,943,000

Capitalization Rate: 5.25% Price Per Square Foot: $716.91 Total Leased (SF): 100.00% 5,500 Total Vacant (SF): 0.00% 0

Total Rentable Area (SF): 100.00% 5,500 INCOME PER SQUARE FOOT

Scheduled Rent $37.64 $207,000 EFFECTIVE GROSS INCOME $207,000

LESS Taxes NNN $0 Insurance NNN $0 Total Operating Expenses NNN $0 TOTAL OPERATING EXPENSES $0

NET OPERATING INCOME $207,000

TENANT INFO LEASE TERMS RENT SUMMARY PERCENT OF MONTHLY ANNUAL TENANT SQ. FT. TERM RENT/FT GLA RENT RENT The Habit Burger 3,000 54.55% 11/1/2017 10/31/22 $9,750 $117,000 $39.00 11/01/22 10/31/27 $10,725 $128,700 $42.90 Option 1 11/01/27 10/31/32 $11,798 $141,570 $47.19 Option 2 11/02/32 10/31/37 $12,978 $155,730 $51.91 Option 3 11/01/37 10/31/42 $14,275 $171,300 $57.10 Option 4 11/01/42 10/31/47 $15,703 $188,430 $62.81

Blaze Pizza 2,500 45.45% 11/01/17 10/31/22 $7,500 $90,000 $36.00 11/01/22 10/31/27 $8,250 $99,000 $39.60 Option 1 11/01/27 10/31/32 $9,075 $108,900 $43.56 Option 2 11/01/32 10/31/37 $9,981 $119,775 $47.91 Option 3 11/01/37 10/31/42 $10,979 $131,750 $52.70

OCCUPIED 5,500 100.00% $17,250 $207,000 $37.50

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. Buyer must verify the information and bears all risk for any inaccuracies. 9 Lease Abstract EXPENSES TAXES Tenant agrees to pay Landlord, as additional rent, during each Lease year or partial Lease year during the term of this Lease, Tenant’s share PREMISE of all Taxes. & TERM INSURANCE Tenant shall, at Tenant’s expense, obtain and TENANT The Habit Burger keep in force during the Term commercial general SUITE SF 3,000 SF liability insurance written on an “occurrence” TERM 10 Years policy form, covering bodily injury, property GRAND OPENING November 1, 2017 (Estimated) damages, and personal injury arising out of or RENT COMMENCEMENT November 1, 2017 (Estimated) relating (directly or indirectly) to Tenant’s business EXPIRATION October 31, 2027 (Estimated) operations, conduct, assumed liabilities, or use OPTIONS Four 5-year Options of occupancy of the Premises including standard LEASE TYPE Corporate contractual liability insurance. UTILITIES Tenant shall pay for the cost of connecting utilities, including without limitation water, sewer, RENT gas, electricity, telephones, and other common utilities. TENANT’S OBLIGATIONS BASE RENT Tenant shall maintain, repair, and replace the DATE RANGE MONTHLY RENT ANNUAL RENT non-structural portions of the Premises. 11/1/2017 - 10/31/2022 $9,750 $117,000 LANDLORD’S OBLIGATIONS 11/1/2022 - 10/31/2027 $10,725 $128,700 Landlord responsible for roof & structure.*

OPTION RENTS *15 Year Roof Warranty DATE RANGE MONTHLY RENT ANNUAL RENT #1. 11/1/2027 - 10/31/2032 $11,798 $141,570 #2. 11/1/2032 - 10/31/2037 $12,978 $155,730 #3. 11/1/2037 - 10/31/2042 $14,275 $171,300 #4. 11/1/2042 - 10/31/2047 $15,703 $188,430

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. Buyer must verify the information and 10 bears all risk for any inaccuracies. Lease Abstract EXPENSES TAXES Tenant is responsible Tenant’s pro rata %. INSURANCE PREMISE Tenant shall carry and maintain: (a) commercial general liability insurance, (b) “all risk” or “special & TERM causes of loss form” property insurance, (c) plate glass insurance, (d) comprehensive boiler and TENANT Blaze Pizza machinery coverage, (e) business interruption SUITE SF 2,500 SF and (f) worker’s compensation insurance. TERM 10 Years UTILITIES GRAND OPENING November 1, 2017 (Estimated) Tenant shall pay, when due, all charges for water, RENT COMMENCEMENT November 1, 2017 (Estimated) sewer, electricity, gas, telephone service and EXPIRATION October 31, 2027 (Estimated) other utilities supplied to the Premises. OPTIONS Three 5-year Options LEASE TYPE Franchisee TENANT’S OBLIGATIONS Tenant shall maintain, repair, and replace the non-structural portions of the Premises. LANDLORD’S OBLIGATIONS RENT Landlord responsible for roof & structure.*

BASE RENT *15 Year Roof Warranty DATE RANGE MONTHLY RENT ANNUAL RENT 11/1/2017 - 10/31/2022 $7,500 $90,000 11/1/2022 - 10/31/2027 $8,250 $99,000

OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 11/1/2027 - 10/31/2032 $9,075 $108,900 #2. 11/1/2032 - 10/31/2037 $9,981 $119,775 #3. 11/1/2037 - 10/31/2042 $10,979 $131,750

ENTRANCE FOR 5,500 0.68 39 TARGET • HOBBY LOBBY • HARBOR FREIGHT TOOLS RENTABLE SF ACRES SPACES

SURROUNDING AREA RETAIL

Drive Thru W PACHECO BOULEVARD W PACHECO

Drive Thru 33

Drive Thru

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12 Tenant Mix HABIT BURGER (CORPORATE LEASE)

The Habit Burger Grill is a burger-centric, fast casual restaurant concept that specializes in preparing fresh, made-to-order chargrilled burgers and sandwiches featuring USDA choice tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. The first Habit opened in Santa Barbara, California, in 1969. The Habit has since grown to over 190 restaurants in 10 states throughout California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington and Maryland as well as two international locations. As of the close of Q2 2017, the company anticipates total revenue of approximately $335 million fiscal year 2017.

BLAZE PIZZA (FRANCHISEE)

The first Blaze Pizza opened on August 6, 2012, in Irvine, California, less than five years ago and quickly gained attention for its chef-driven recipes, thoughtful interior design and a service culture that celebrates individuality. Recently named “#1 Brand of the Year” in the 2017 Fast Casual Top 100, the fast-growing restaurant chain is building momentum and developing a cult-like following as it expands across North America. The company currently operates over 200 restaurants in 32 states and Canada. System-wide sales were up 83 percent to $185 million in 2016 over 2015.

BLAZE HAS GONE FROM 2

This information has been secured from sources we believe to be reliable but we make no representations or warranties, TO 200 LOCATIONS expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13 Demographics SACRAMENTO (123 MILES) POPULATION 1-MILE 3-MILES 5-MILES 2010 5,179 30,293 38,037

2017 5,805 33,230 41,378

2022 6,513 35,264 43,778

2017 HH INCOME SAN JOSE 1-MILE 3-MILES 5-MILES (79 MILES) Average $82,189 $71,893 $71,465

Median $55,796 $53,798 $53,893 LOS BANOS FRESNO (72 MILES) TOP EMPLOYERS IN MERCED COUNTY EMPLOYER Dole Packaged Foods

E&J Gallo Winery Foster Farms THE AVERAGE HOUSEHOLD Gallo Cattle Co. INCOME WITHIN A 5-MILE RADIUS Merced College IS OVER $71K

This information has been secured from sources we believe to be reliable but we make no 14 representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Location Overview LOS BANOS, CALIFORNIA

UC MERCED

LOS BANOS is conveniently located in the center of California, in MERCED Agricultural-related industries are a Merced County, about two hours from San Francisco, Oakland, COUNTY major source of employment, along Sacramento and Yosemite National Park. Monterey and San with food processing, retailing, and Jose are also about 90 minutes away. light manufacturing. Higher education institutions include Merced College and the University of Los Banos has access to three major Highways: Interstate I-5, California - Merced. Highway 152 and Highway 165. Highway 99 is a easy 30 minute Highway drive from Los Banos. 268,455

This information has been secured from sources we believe to be reliable but we make no representations or MERCED COUNTY warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. POPULATION (ESTIMATED) 15 We’d love to hear from you.

JOHN ANDREINI [email protected] PH: 415.274.2715 CA BRE#: 01440360

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

CHRIS KOSTANECKI DAVE LUCAS JOE CACCAMO

ZEB RIPPLE RICK SANNER JOHN ANDREINI

CHRIS PETERS AARON SUSMAN ZANDY SMITH

JACK NAVARRA