7916 Alta Sunrise Lane, Citrus Heights, CA 95610 Fully Leased Investment

Brandon Sessions Vice President (916) 677-8176 [email protected] DRE # 01914432

Robb Osborne Principal (916) 677-8175 [email protected] DRE # 01398696 www.osbornegroupcre.com The information in this document was obtained from sources we deem reliable; however, no warranty or representation, expressed or implied, is made to the accuracy of the information contained herein. TABLE OF CONTENTS

1 COVER 2 TABLE OF CONTENTS 3 DISCLAIMER 4 EXECUTIVE SUMMARY 5 PROPERTY HIGHLIGHTS 6 FINANCIAL PAGE 7 FLOOR PLAN (1ST FLOOR) 8 FLOOR PLAN (2ND FLOOR) 9 DEMOGRAPHICS 10 AERIAL/NEARBY AMENITIES 11 PHOTOS 12 SACRAMENTO OFFICE REPORT

www.osbornegroupcre.com DISCLAIMER

The material contained in the Offering Memorandum is confidential, furnished solely for the purpose of considering the purchase of 7916 Alta Sunrise Lane, CA and is not to be used for any other purpose or made available to any other person without the express written consent of TRI Commercial Real Estate Services or the Owner. The material is based in part upon information supplied by the Owner’s consultants, architects, advisors, and in part upon information obtained by TRI Commercial Real Estate Services from sources it deems to be reliable.

Summaries contained in the Offering Memorandum of any legal or other documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. In accordance with our standard practice, this Offering Memorandum has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject project.

Owner and TRI Commercial Real Estate Services strongly recommend that each potential investor review the information contained in the brochure with its accountants, attorneys and tax advisors. Any projects contained herein represent best estimates based on assumptions considered reasonable under circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to such projections. This document is provided subject to errors, omissions, prior sale or lease, change of price or terms, other changes in the information and is subject to modification or withdrawal without notice.

NO WARRANTY OR REPRESENTATION EXPRESSED OR IMPLIED IS MADE BY THE OWNER OR TRI COMMERCIAL REAL ESTATE SERVICES OR ANY OF THEIR PARENT, AFFILIATED OR SUBSIDIARY ENTITIES AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN. PROSPECTIVE INVESTORS SHOULD MAKE THEIR OWN INVESTIGATIONS AND CONCLUSIONS WITHOUT RELIANCE UPON THE MATERIAL CONTAINED HEREIN.

www.osbornegroupcre.com EXECUTIVE SUMMARY

7916 Alta Sunrise Lane is a two-story, single-tenant, commercial office building located in Citrus Heights, CA. The Property consists of approximately ± 13,608 square feet. The building was built in 1981 and is part of the Sunrise Square mixed-use center. The building was fully renovated in 2004 (See page 5 for details). The property enjoys ample parking plus secured parking, and has excellent access to many shopping, retail and restaurant centers. 7916 Alta Sunrise Lane is located 18 miles from Downtown Sacramento and 23 miles from Sacramento International Airport.

The Property is leased to Shutterfly Lifetouch, LLC, a subsidiary of Shutterfly Inc. Shutterfly Inc. is an American established photography company that boasts over 10 million customers world wide. In 2007 Shutterfly was recognized by Deloitte & Touche as Fast 50 Technology Company for Silicon Valley and a Fast 500 Company for North America. Shutterfly ranked #20 in the Internet, Media & Entertainment and Communication category on the Fast 50 list and ranked #241 on the Fast 500 list.

7916 Alta Sunrise features nice landscaping, ample parking, and excellent location.

7916 Alta Sunrise offers investors a quality building and a stabilized investment within the highly populated retail core of Citrus Heights submarket.

www.osbornegroupcre.com PROPERTY HIGHLIGHTS

• Stabilized investment within the highly populated retail core of Citrus Heights submarket • ±13,608/SF two-story commercial building • Built in 1981 in the Sunrise Square Center Custom Map • Over $625,000 was put into the building for full renovations in 2004 • Building can fairly easily be converted to a multi-tenant

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• NNN Lease – Tenant pays directly for utilities

• Annual Base Rent: $168,000

• Building Expense Reimbursement: $32,760

• 3% annual increases

• Cap Rate: 7%

www.osbornegroupcre.com FLOOR PLAN 1st Floor

www.osbornegroupcre.com FLOOR PLAN 2nd Floor

www.osbornegroupcre.com DEMOGRAPHICS

KEY FACTS Market Overview EDUCATION

7916 Alta Sunrise Dr, Citrus Heights, California, 95610 132,144 41.8 Population (3 Mile Radius) 7% Median Age

2.5 No High School $75,739 Diploma 20% 40% 33% Average Median Household High School Some College Bachelor's/Grad/P Household Size Income Graduate rof Degree

HOUSING STATS BUSINESS

$379,963 $11,454 $1,091 4,013 31,362 Median Home Value Average Spent on Median Contract Mortgage & Basics Rent Total Businesses Total Employees

EMPLOYMENT COMMUTERS

69% 15% 15.2% 18% 82.0% White Collar Services Spend 7+ hours commuting to Drove Alone to Work 16% and from work per week Blue Collar Unemployment Rate

Source: This infographic contains data provided by Esri, American Community Survey (ACS), Esri and Bureau of Labor Statistics, Esri and Infogroup, Esri and GfK MRI. The vintage of the data is 2020, 2025, 2014-2018. www.osbornegroupcre.com NEARBY AMENITIES

Target, Walmart, Best Buy, Walgreens, Michaels, Lowe's, Old Navy, Sunrise Mall, Macy's, JCPenney, Hobby Lobby, PetSmart, Staples, Party City, BevMo!, Marshalls, HD Supply Home Improvement, Harbor Freight Tools, Panera Bread, Red Robin Burgers, Wendy's, Starbucks, Pizza Hut, Texas Roadhouse

Greenback Ln Fair Oaks Blvd Fair Sunrise Blvd

7916 Alta Sunrise Ln Rite Aid, Joann Fabrics, Smart & Final Extra!, Trader Joe's, Massage Envy, FedEx, Kenny G Jewelers, European Wax Center, Jenny Craig, Alex's Comfort Shoes, Wild Birds & Gardens, Black Bear Madison Ave Diner, Dos Coyotes, Boston's Resaurant, Amazing Lash Studio, Olive Garden, Chili's Grill & Bar, The Habit Burger Grill, Mountain Mike's Pizza, The HoneyBaked Ham Co., Wienerschnitzel, California Fish Grill, McDonald's, Little Caesars Pizza

www.osbornegroupcre.com PHOTOS

www.osbornegroupcre.com 12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth SACRAMENTO OFFICE 741 K (372 K) 9.6% 0.8%

Sacramento office vacancies rose in 2020 and annual demand was virtually flat. SALES VOLUME & MARKET SALE PRICE PER SF With the coronavirus pandemic continuing to rage and economic uncertainty likely to remain for some time, a further rise in vacancies may be on the horizon. Availabilities have notably increased since the onslaught of the virus, and at year's end, more than 1 million SF of sublet space was available for the first time since 2010.

Job growth typically outpacing the national average, a lack of new construction, and steady demand has kept the metro vacancy rate in single digits since 2018, including again last year. The high occupancy levels have allowed for rent growth that has consistently landed near the top of the nation, and while that trend continued in 2020, gains were well below the recent norm. A lack of supply-driven pressure has helped keep vacancies in check, and it appears that will continue. The development pipeline is showing signs of life, with about 2.0 million SF under construction, but as with most inventory completed since 2010, virtually all projects are build-to-suits.

The government propels demand for office space, particularly in Downtown. However, tax revenue has plummeted due to the pandemic, and it is unclear if NET ABSORPTION, NET DELIVERIES & VACANCY that sector will help buttress occupancy in the coming years. Government and corporate occupiers alike also turn to Highway 50 Corridor, the second-largest office submarket in the metro behind Downtown. Medical and technology- related tenants, many of which are located in Roseville/Rocklin, occupy significant chunks of space, among them Hewlett Packard Enterprise, Intel, and Sutter Health. WeWork, in one of the largest new lease signings by a corporate occupier since 2019, was scheduled to open a second metro location this year, but with the coworking giant facing a number of headwinds, that lease has reportedly been canceled.

The local sales market did not perform at the level of recent years in 2020. Deal flow fell to the lowest mark since 2011, and investment volume failed to reach $1 billion for the first time since 2015. Still, pricing came in near 2019's post-Great Recession peak, and cap rates saw little change.