Parthenia Plaza

BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

PARTHENIA PLAZA IS A 20,576 SQUARE FOOT SHOPPING CENTER arthenia ANCHORED BY MCDONALD’S, THE WORLD’S LARGEST FAST FOOD PA McDonald’s Anchored ShoppingPlaza Center RESTAURANT CHAIN, IDEALLY SITUATED ON 2.45 ACRES OF LAND IN THE 16904, 16908 & 16950 PARTHENIA STREET HIGH-END WEST SAN FERNANDO VALLEY SUB-MARKET OF NORTHRIDGE, CA NORTHRIDGE, CA 91343 1 INVESTMENT ADVISORS

BRANDON MICHAELS MATTHEW LUCHS SEAN BRANDT Senior Managing Director of Investments First Vice President Investments Investments Associate Senior Director, National Retail Group National Retail Group National Retail Group Tel: (818) 212-2794 Tel: (818) 519-1429 Tel: (818) 212-2653 Fax: (818) 212-2710 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] [email protected] License: CA #01434685 License: CA #01948233 License: CA #01755166 www.BrandonMichaelsGroup.com www.BrandonMichaelsGroup.com www.BrandonMichaelsGroup.com

Steven Schechter Andrew Leff Ben Brownstein Austin Sreden First Vice President First Vice President Senior Associate Investment Associate TABLE OF CONTENTS Investments Investments 1 2 3 4 PROPERTY OVERVIEW AREA OVERVIEW FINANCIAL ANALYSIS COMPARABLES ANALYSIS Lauren Sackler Nicole Cottrell Zachary Saloff Vaughn Brown Investment Associate Investment Associate Investment Associate Investment Associate

2 3 PROPERTY OVERVIEW arthenia PA McDonald’s Anchored ShoppingPlaza Center 16904, 16908 & 16950 PARTHENIA STREET NORTHRIDGE, CA 91343

4 5 SAN DIEGO FWY OVER 430,000 VEHICLES PER DAY

BALBOA BLVD

PARTHENIA ST arthenia PA McDonald’s Anchored ShoppingPlaza Center 16904, 16908 & 16950 PARTHENIA STREET NORTHRIDGE, CA 91343 NORTHRIDGE • CA BALBOA BLVD 6 7 UNIQUE OPPORTUNITY TO ACQUIRE A MCDONALD’S ANCHORED SHOPPING CENTER OR A SINGLE TENANT MCDONALD’S AND IDEALLY LOCATED PROXIMATE TO A NUMBER OF RETAIL AMENITIES PRIME IN-LINE RETAIL SPACE IN AN EXCELLENT AND RESTAURANTS WEST SAN FERNANDO VALLEY LOCATION • Proximate retail amenities include: Target, Albertsons, CVS, and Home Depot • Unique opportunity to purchase a 95% leased McDonald’s anchored shopping • Nearby restaurants include: KFC, Chipotle Mexican Grill, Five Guys, and Jack in center located just East of the highly trafficked intersection of Parthenia Street the Box and Balboa Boulevard in Northridge, CA • Just 4 miles from the property is the Northridge Fashion Center, which features • Buyers have the unique opportunity to purchase a single tenant NNN ground retail amenities such as Apple, JCPenney, Macy’s, Ross Dress For Less, lease McDonalds leased through 2038 with 4 five-year options WHY BUY GameStop, and Foot Locker. It also features a variety of restaurants including • McDonald’s has successfully operated at this location for 59 years since 1962 California Pizza Kitchen, Mrs. Fields, Red Robin, and Starbucks • McDonald’s has 12-15% rent increases every five years and 15-18% rent PARTHENIA increases in each option period. • Average rents on the in-line space is $1.73 per SF plus NNN STRONG IMMEDIATE DEMOGRAPHICS • The stable and seasoned tenant mix has performed well during the Covid PLAZA pandemic • Over 17,700 people are located within one mile of the property, 300,000 within • The center can be purchased as a whole, or the McDonald’s and the in-line three miles of the property, and 700,000 within five miles of the property shops can be purchased individually • There are approximately 5,600 households within one mile of the property, • Shadow anchored by Planet Fitness (NAP), one of the largest fitness club 90,000 within three miles of the property, and 218,000 within five miles of the franchises by number of members and locations in the United States, and property Kentucky Fried Chicken, the world's second-largest restaurant chain • Average household income within one mile of the property surpasses $111,000, EXCELLENT NORTHRIDGE LOCATION $80,000 within three miles of the property, and $88,000 within five miles of the MCDONALD’S IS THE WORLD’S property LARGEST RESTAURANT CHAIN • There have been well over 2 million square feet of new construction completed in the last 10 years in the Northridge sub- • Total specified consumer spending in 2020 was well over $189 million within • McDonald’s serves over 68 million customers daily in 120 countries market one mile of the property, over $2.457 billion within three miles of the property, • McDonald’s has over 37,000 locations Worldwide • Parthenia Plaza is ideally located four miles from the Northridge and over $6.224 billion within five miles of the property • Annual revenue exceeds $21 billion Fashion Center, a shopping center which contains over 1.4 million • Annual Net income exceeds $9 billion square feet of retail floor area • Traded on the NYSE • Within four miles from Symmetry, a recently completed 6.9-acre • Worlds second largest private employer with 1.7 million employees mixed-use complex featuring 429 units and 21,000 square feet of • Ranked 131st on the Fortune 500 of the largest US Corporations retail amenities 8 9 WINNETKA

NORTHRIDGE Parthenia Plaza is a 20,576 square foot shopping center anchored by McDonald’s, the world’s largest fast food restaurant chain, MIDDLE SCHOOL ideally situated on 2.45 acres of land in the high-end West San Fernando Valley sub-market of Northridge, CA RESEDA

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale Parthenia Plaza, 20,576 square feet shopping center situated on 2.45 acres of land (106,726 square feet) in the high-end and affluent West San Fernando Valley submarket of Northridge, CA. The center is comprised of three separate parcels and part of a larger center that commands the Southeast signalized corner of Parthenia Street and Balboa Boulevard. Buyers will have the option to purchase the center as a whole or purchase the McDonald’s and the in-line shops separately.

ROSCOE BLVD Parthenia Plaza consists of nine in-line shops located at 16904 & 16950 Parthenia Street and the McDonald’s located at 19608 Parthenia Street. The center is currently 95% occupied. The in-line portion of the center is a total of 17,800 square feet situated on 99,077 square feet of land. The in-line space is home to a seasoned tenant mix that has performed well through the Covid pandemic, with rents averaging $1.73 per SF plus NNN.

McDonald’s has been a long-term tenant at this site, having successfully operating at this location for fifty-nine years since 1962. The site has been BALBOA BLVD completely remodeled as per McDonald’s specifications, further showing their commitment to this location. McDonald’s has an absolute NNN ground lease that is guaranteed by McDonald’s Corporation (NYSE: MCD) which expires on 9/4/2038 with 4-five-year options. The subject property is 2,776 square feet situated on 7,649 square feet of land. The site includes a pole sign along Parthenia Street that is 30-feet in height which provides excellent visibility both Westbound and Eastbound along Parthenia Street. McDonald’s operates daily between the hours of 5:00 AM until 1:00 AM and the site allows for ingress and egress from two access points along Parthenia Street. McDonald’s has 12-15% rent increases every five years and 15-18% rent increases in each option period. McDonald’s Corporation offers investment grade credit with a Standard & Poor’s A Rating and a Moody’s Rating of A2. McDonald’s is the world’s largest chain of arthenia PA McDonald’s Anchored ShoppingPlaza Center hamburger and fast-food restaurants, serving north of 68 million customers daily in 120 countries across more than 37,000 locations. Annual revenues exceed 16904, 16908 & 16950 PARTHENIA STREET $21 billion with profits in excess of $6 billion. McDonald’s is the world's second largest private employer with 1.9 million employees. NORTHRIDGE, CA 91343

PARTHENIA ST

106,726 SF (2.45 ACRES) 20,576 C2-VL; P-1VL 95% 90 LAND SF BUILDING SF ZONING CURRENT OCCUPANCY PARKING SPACES; RATIO OF 4.37/1,000 SF 10 11 LAKE BALBOA RESEDA Parthenia Plaza is ideally located in Northridge, CA, a high-end West San Fernando Valley submarket which has experienced significant BALBOA BLVD growth over the past decade including an estimated 2 million square feet in new construction completed over the past ten years

Parthenia Plaza is ideally located in Northridge, CA, a high-end West San Fernando Valley submarket that has experienced significant development and growth in the last decade. The center is located within close proximity to a plethora of retail amenities including Target, Albertsons, CVS, and Home Depot, and is approximately 4 miles from the Northridge Fashion Center, one of the San Fernando Valley’s largest malls featuring 1.4 million square feet of national retailers and restaurants, including Apple, JCPenney, Macy’s, Ross Dress For Less, GameStop, Foot Locker, California Pizza Kitchen, Mrs. Fields, Red Robin, and Starbucks.

Parthenia Plaza benefits from a centralized San Fernando Valley location in Northridge, California, a high-end, affluent West San Fernando Valley submarket that has experienced significant development and growth over the past decade. There has been well over 2 million square feet of deliveries in the last ten years, making this one the highest growth sub-markets in the immediate area. The property is located just four miles from the recently-completed Symmetry, a 6.9- acre mixed-use project consisting of 429 studios, one-, two-, and three-bedroom apartments, as well as standalone retail buildings totaling 21,000 square feet.

The immediate area features a dense and affluent surrounding demographic with over 17,700 people located within one mile of the property, 300,000 within BALBOA BLVD three miles of the property, and 700,000 within five miles of the property. Average household income within one mile of the property surpasses $111,000, $80,000 within three miles of the property, and $88,000 within five miles of the property.

arthenia PA McDonald’s Anchored ShoppingPlaza Center 16904, 16908 & 16950 PARTHENIA STREET NORTHRIDGE, CA 91343 THE NORTHRIDGE ALDER APARTMENTS DIGNITY HEALTH - CALIFORNIA STATE VAN NUYS FASHION CENTER DEVELOPMENT NORTHRIDGE HOSPITAL UNIVERSITY, NORTHRIDGE AIRPORT PARTHENIA ST 0.2 MILE 1 MILE 2.6 MILES 1.8 MILES 6.1 MILES

12 13 City of Los Angeles ZIMAS PUBLIC Generalized Zoning 01/11/2021 Department of City Planning ZONING MAP

VAN NUYS

LAKE BALBOA

BALBOA BLVD

HAYVENHURST AVE

PARTHENIA ST

arthenia PA McDonald’s Anchored ShoppingPlaza Center 16904, 16908 & 16950 PARTHENIA STREET NORTHRIDGE, CA 91343

Address: 16904 W PARTHENIA ST Tract: TR 24301 Zoning: C2-1VL, P-1VL APN: 2689018022 Block: None General Plan: General Commercial PIN #: 195B133 472 Lot: LT 1 Arb: 2 PROPERTY OVERVIEW ENTIRE CENTER – MCDONALD’S & IN-LINE RETAIL SHOPS

16 17 THE OFFERING ENTIRE CENTER

16904, 16908 & 16950 Parthenia Street ADDRESS: Northridge, CA 91343

PRICE: $7,500,000

BUILDING SF: 20,576 SF

LAND SF: 106,726 SF

PRICE/SF (BUILDING): $365

PRICE/SF (LAND): $70 NORTHRIDGE CALIFORNIA CURRENT CAP RATE: 5.29%

COVID CAP RATE: 4.81%

CURRENT OCCUPANCY: 95%

AVERAGE RENT/SF: $1.61

LEASE TYPE: NNN

90 Parking Spaces Available; PARKING: Parking Ratio of 4.37 per 1,000 SF

ZONING: C2-1VL; P-1VL

APN NUMBERS: 2689-018-022, 024, 021

18 19 TENANT OVERVIEW SHADOW ANCHORED BY PLANET FITNESS AND KENTUCKY FRIED CHICKEN

PLANET FITNESS KENTUCKY FRIED CHICKEN

Planet Fitness (PFIP LLC) is an American franchiser KFC (short for Kentucky Fried Chicken) is an American and operator of fitness centers based in Hampton, fast food restaurant chain headquartered in Louisville, New Hampshire. The company reports that it has Kentucky, that specializes in fried chicken. It is the 2,039 clubs, making it one of the largest fitness club world's second-largest restaurant chain (as measured franchises by number of members and locations. There by sales) after McDonald's, with 22,621 locations are locations across the United States as well as in globally in 150 countries as of December 2019. The other countries such as Canada, Dominican Republic, chain is a subsidiary of Yum! Brands, a restaurant Panama, and Mexico. In 2019 the franchise expanded company that also owns the Pizza Hut, Taco Bell, and to Australia. It markets itself as a "Judgment Free Zone" that caters to novice WingStreet chains. and casual gym users and is reported to be the nation’s fastest growing fitness center franchise. KFC was one of the first American fast-food chains to expand internationally, opening outlets in Canada, the United Kingdom, Mexico, and Jamaica by the As early as March 2015, the "Judgement Free Zone" policy has been expanded mid-1960s. Throughout the 1970s and 1980s, it experienced mixed fortunes to allow trans women to use the women's locker room. The policy states that domestically, as it went through a series of changes in corporate ownership "members and guests may use all gym facilities based on their sincere self- with little or no experience in the restaurant business. In the early-1970s, reported gender identity." KFC was sold to the spirits distributor Heublein, which was taken over by the R.J. Reynolds food and tobacco conglomerate; that company sold the In 2003, Planet Fitness opened its first franchised location in Florida, with Eric chain to PepsiCo. The chain continued to expand overseas, however, and Dore and Shane McGuiness. In the fall of 2013, TSG Consumer Partners LLC in 1987, it became the first Western restaurant chain to open in China. It became an equity partner in the Planet Fitness franchise. Michael Grondahl, has since expanded rapidly in China, which is now the company's single co-founder of Planet Fitness stepped down as CEO, and was succeeded by Trade Name Planet Fitness largest market. PepsiCo spun off its restaurants division as Tricon Global Type Subsidiary Chris Rondeau. The company went public on August 6, 2015. Type Public Restaurants, which later changed its name to Yum! Brands. Industry Restaurant NYSE: PLNT (Class A) In February 2016, the franchise was added to the Franchise Times' "Fast and Traded As KFC's original product is pressure-fried chicken pieces, seasoned with Genre Fast food restaurant Serious" list of top franchises (#1), and in its 2016 ranking of franchises, Forbes Russell 2000 Component Sanders' recipe of 11 herbs and spices. The constituents of the recipe are Louisville, Kentucky, U.S. magazine ranked Planet Fitness #4. It ranked in the top 50 of Entrepreneur Headquarters Industry Fitness a trade secret. Larger portions of fried chicken are served in a cardboard Dallas, Texas, U.S. (Global) magazine's Franchise 500 in 2017. "bucket", which has become a feature of the chain since it was first Founded 1992; 29 years ago introduced by franchisee Pete Harman in 1957. Since the early-1990s, KFC Number of locations 22,621 (2015) In 2020, the company received criticism for charging its customers for March Number of locations 2,039 has expanded its menu to offer other chicken products such as chicken fillet Revenue US$23 Billion (2013) dues "despite closing its facilities nationwide due to the novel coronavirus sandwiches and wraps, as well as salads and side dishes such as French pandemic." They stated that they were unable to stop the pre-scheduled Area served North America fries and coleslaw, desserts, and soft drinks; the latter often supplied by Parent Yum! Brands payments on short notice, but would not charge future monthly dues until they PepsiCo. KFC is known for its slogans "It's Finger Lickin' Good!", "Nobody Website www.planetfitness.com Website www.kfc.com reopen, and would also provide a credit for closed days previously paid for. does chicken like KFC", and "So good". 20 21 PROPERTY OVERVIEW MCDONALD’S ONLY

22 23 THE OFFERING MCDONALD'S ONLY

McDonald's ADDRESS: 16908 Parthenia Street Northridge, CA 91343

PRICE: $3,000,000 19608 Parthenia Street BUILDING SF: 2,776 SF

LAND SF: 7,649 SF

PRICE/SF (BUILDING): $1,081

PRICE/SF (LAND): $392

CURRENT CAP RATE: 3.17%

TENANT: McDonald's

LEASE START: 1962

LEASE TYPE: Ground Lease

CURRENT RENT: $7,916

CURRENT NOI: $94,997 12-15% Every 5 Years; RENT INCREASES: 15-18% Each 5 Year Option Year

OPTIONS: 4 - 5 year

Reciprocal Parking and Access with PARKING: 16904 Parthenia Street

ZONING: C2-1VL

APN NUMBER: 2689-018-021

24 25 MCDONALD’S CORPORATION AWARDS AND RECOGNITIONS

McDonald’s is the world’s largest chain of hamburger • 2020 #36 Global 500 (100) Brands fast food restaurants, serving approximately 69 million - Brand Finance customers daily in 119 countries across more than • 2020 # 7 Top 100 Most Valuable US Brand 36,000 outlets. Founded in San Bernardino, California in 1940, the company began as a barbecue restaurant - BrandZ operated by Richard and Maurice McDonald. • 2020 #3 Top 75 Global Retail Brands 37K+ McDonald’s is publicly traded (NYSE: MCD) with an - BrandZ S&P “A” investment grade credit rating and a market cap of over $100 billion. • 2019 #9 Best Global Brands Headquartered in Oak Brook, Illinois, the company is one of the world’s largest - Interbrand Restaurants private employers, employing more than 1.9 million people. • 2019 #3 Top 75 Global Retail Brands Worldwide - BrandZ A McDonald’s restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The McDonald’s Corporation revenues come from the • Ranked #3 among all companies for “Management Quality” rent, royalties, and fees paid by the franchisees, as well as sales in company- operated restaurants. While a global brand, the vast majority of McDonald’s - Fortune – more than 80% worldwide and nearly 90% in the U.S. – are owned and • Ranked #7 among all companies for “Global operated by independent, small-and-mid-sized businessmen and women. Competitiveness” TENANT OVERVIEW Franchisees often live in the communities they serve and are committed to - Fortune making a positive impact locally from providing good food, customer service and job opportunities, to supporting local charities and other ways of giving Lease Term: 20 Years INCREASES back. 9/5/2018 To 9/4/2038 McDonald's Since 2003, McDonald’s has experienced a dramatic turnaround in an effort TENANT to keep up with rapidly changing consumer preferences, demographics and spending patterns. In the U.S., McDonald’s has focused on increasing Options: 4 - 5 Year 12-15% every 5 sales, expanding menu options and extending store hours. Internationally, years, McDonald’s expanded aggressively, opting to franchise rather than operate its 2,776 SF (14.94%) 15-18% each 5 year new locations, providing new income with little overhead. McDonald’s has option year consistently introduced new items (Premium Chicken sandwiches and the SF OCCUPIED Rent: $7,916.44 Angus Beef Burger) and campaigns to create more healthy foods (Premium Salads).

26 27 PROPERTY OVERVIEW IN-LINE SHOPS ONLY

28 29 THE OFFERING IN-LINE SHOPS ONLY

16904 & 16950 Parthenia Street ADDRESS: 19604 Parthenia Northridge, CA 91343 Street

PRICE: $4,500,000

BUILDING SF: 17,800 SF

LAND SF: 99,077 SF

PRICE/SF (BUILDING): $253

PRICE/SF (LAND): $45 19650 Parthenia CURRENT CAP RATE: 6.74% Street

COVID CAP RATE: 5.56%

AVERAGE RENT/SF: $1.61

CURRENT OCCUPANCY: 94%

90 Parking Spaces Available; PARKING: Parking Ratio of 5.06 per 1,000 SF

ZONING: P-1VL

APN NUMBERS: 2689-018-022, 2689-018-024

30 31 AREA OVERVIEW

32 33 NORTHRIDGE, CA 70,652 Total Population of Northridge, CA. The Median Age is 34. Northridge is a neighborhood of Los Angeles, California in the San Fernando Valley. It is the home of California State University, Northridge, as well as eleven public and eight private schools. 51% 49% MALE FEMALE Originally named Zelzah, the community was renamed North EDUCATION Los Angeles in 1929 to emphasize its closeness to the booming city. This created confusion with Los Angeles and North Hollywood. At the suggestion of a civic leader, the community was renamed Northridge in 1938. Northridge can trace its history back to the Gabrielino (or Tongva) people and to Spanish explorers. Its territory was later sold by the Mexican governor to Eulogio de Celis, whose heirs divided it for sale. The area has been the home of notable people, and it has notable attractions and points of interest. Residents have access to a municipal recreation center and a public swimming pool. 19.93% 18.45% 5.81% 18.02% Some High School Some College Associate Degree Bachelor’s Degree Northridge is located in close proximity to the Ronald Reagan Freeway (118) which connects to the San Diego Freeway (405) and provides access to all of Los Angeles County.

NORTHRIDGE DEMOGRAPHICS 34 35 LOCAL RETAIL THE SUBJECT PROPERTY IS LOCATED WITHIN CLOSE PROXIMITY TO THE SAN FERNANDO VALLEY’S PREMIER SHOPPING AND DINING DESTINATIONS.

NORTHRIDGE FASHION CENTER PACIFIC THEATRES CHATSWORTH PLAZA DI NORTHRIDGE An established shopping center with well- Adjacent to the subject property, this is the first Shopping Center anchored by Super King known retailers such as abercrombie, location to offer XME Experience featuring a Market and DSW. Also has a Rubio’s, Which Express, Forever 21, Fossil, Macy’s and chain 79-foot wall to wall screen with state of the art Which, Jamba Juice, Corner Bakery Cafe, restaurants and a theater multiplex. Every sound system. Adjacent restaurants include Starbucks, and more. Wednesday, Northridge Fashion Center hosts Aplebee’s, Stonefire Grill, Poquito Mas, Sansai a Farmer’s Market & Family Festival featuring Japanese Grill, Subway, and The Habit. fresh produce and dining options.

NORTHRIDGE PLAZA & WALNUT WESTIELD TOPANGA VILLAGE AT WESTFIELD TOPANGA GROVE SHOPPING CENTER A 1.6 million square foot two-level indoor A brand new central gathering place for Household retailers and restaurants including shopping center comprised of high-end retail shopping, dining, events, entertainment and Kohl’s, Lowe’s, Best Buy, Big Lots, 24 hour and restaurants. Westfield Topagna is the only leisure. The Village showcases trendy local Fitness, Denny’s, 99 Cents Only Store, Chipotle, center in the United States with a Neiman fashion and lifestyle brands, sensational Costco, and more. Marcus and flagship Nordstrom alongside restaurants offering al fresco patio dining, a Target, and is a power shopping paradise full-service gym, spa and yoga studio, along with a luxury lineup including Gucci, Tiffany with Costco, Crate & Barrel, a weekly farmer’s & Co., Salvatore Ferragamo, Louis Vuitton, market and more, all under a canopy of native Cartier, Burberry, Jimmy Choo alongside Apple, trees and vegetation. With a combined square Tesla, Tory Burch, Anthropologie, Free People, footage of over 2.5 million, Westfield offers OMEGA, Splendid, Urban Outfitters and the retail consumer a laundry list of high-end Lacoste. retailers and restaurant choices

36 37 CALIFORNIA STATE UNIVERSITY NORTHRIDGE CALIFORNIA STATE UNIVERSITY, NORTHRIDGE ACADEMIC STAFF: 2,139 (Fall 2019) San Fernando Valley State College ADMINISTRATIVE STAFF: 1,968 (Fall 2019) FORMER NAME: 2.1 MILES FROM THE SUBJECT PROPERTY (1958–72) STUDENTS: 38,391 (Fall 2019) MOTTO: Vox Veritas Vita (Latin) UNDERGRADUATES: 34,633 (Fall 2019) TYPE: Public University POSTGRADUATES: 3,758 (Fall 2019) ESTABLISHED: 1958

ENDOWMENT: $119.0 Million (2019) CAMPUS: Suburban, 356 acres

BUDGET: $464.5 Million (2019) COLORS: CSUN Red, Black California State University, Northridge (CSUN or Cal State PRESIDENT: Dianne F. Harrison MASCOT: Matty the Matador Northridge) is a public university in the Northridge neighborhood of Los Angeles, California. With a total enrollment of 38,391 students (as PROVOST: Mary Beth Walker WEBSITE: www.csun.edu of Fall 2019), it has the largest undergraduate population as well as the second largest total student body of the 23-campus California State University system, making it one of the largest comprehensive universities in the United States in terms of enrollment size. The size of CSUN also has a major impact on the California economy, with an estimated $1.9 billion in economic output generated by CSUN on a yearly basis. As of Fall 2019, the university had 2,139 faculty, of which 805 (or about 40%) were tenured or on the tenure track.

California State University, Northridge was founded first as the Valley satellite campus of California State University, Los Angeles. It then became an independent college in 1958 as San Fernando Valley State College, with major campus master planning and construction. The university adopted its current name of California State University, Northridge in 1972. The 1994 Northridge earthquake caused $400 million in damage to the campus, the heaviest damage ever sustained by an American college campus.

The university offers 134 different bachelor's degrees and master's degree programs in 70 different fields, as well as four doctoral degrees. CSUN is considered to be one of the most diverse universities in the nation and currently has over 350,000 alumni. 38 39 MGA ENTERTAINMENT CAMPUS MGA ENTERTAINMENT CAMPUS 1.2 million square feet set to break ground by the beginning of 2017: 4.8 MILES FROM THE SUBJECT PROPERTY Office – Remodel Existing 250,000 SF (MGA’s Headquarters – 250+ employees) New Cafeteria, Daycare, Patio – 7,500 Sf New Creative Office Space, Production/Showroom Space – 43,000 sf ABOUT MGA ENTERTAINMENT Proposed Buildings (Building A, B, C and D) range from 5 to 7 story structures – up to 700 MGA Entertainment (Micro-Games America Entertainment) produces proprietary and licensed products including toys and games, residential units dolls, consumer electronics, home décor, stationary and sporting goods. MGA Entertainment’s award-winning brands include Little Residential Buildings contain a mixture of one, two and three bedroom apartments, Tikes®, Lalaloops y™, Bratz®, Bratzillaz™, Novi Stars™, Moxie Girlz™, and Zapf Creation®. MGA Entertainment was founded in 1979 and supplemented by individual club houses and fitness rooms employs upwards of 1,100 employees. Residents would also have access to various communal amenities, including swimming pools and a 350-seat amphitheater. SITE PLAN Building C includes the project’s retail component (14,000 sf) of stores and restaurants.

MGA ENTERTAINMENT CAMPUS A shaded outdoor courtyard will be the centerpiece providing outdoor dining space. The Los Angeles City Council has recently approved MGA Parking will be located in three separate garages housing approximately 1,467 parking Entertainment’s proposed development in Chatsworth, spaces which will bring 660 market-rate apartments, retail and restaurants to 24 acres near Prairie Street and Winnetka Vehicular access will be provided via Prairie Street and a new bridge connecting to

Avenue. The project will break ground beginning of 2017 Winnetka Avenue. and will be designed by Killefer Flammang Architects. The Private shuttle service connecting residents/guests to local transportation hubs and toymaker, which sells Bratz dolls, is also relocating its Van Orange Line stations. Nuys headquarters to the site. Supporters are calling the manufacturing, office and residential proposal the first of its kind in the city. “

MGA Entertainment’s vice-president of business development Jason Larian said the company’s 280 local employees will be encouraged to live in the new housing. MGA will also do light manufacturing and design work on the new campus, but continue to manufacture its Bratz fashion doll line in China.

The Valley’s first live-work campus – combining light industrial and commercial space with retail, residential and community amenities. “40 41 TRANSPORTATION

Northridge is easily accessibe by freeways, Metro transit, rail and airport transportation. The 405, 101, and 118 Freeways provide access to the greater Los Angeles metropolis area and beyond to Orange and Ventura Counties. The Metro Orange Line dedicated bus transit way provides access from the Northridge Metrolink station to the Warner Center transit hub in Woodland Hills, then along the east-west length of the San Fernando Valley connecting to the North Hollywood Red Line Station. Rail service continues to Downtown Los Angeles, Pasadena, Long Beach and West Los Angeles. Amtrak long distance rail lines from Chatsworth Station proceed to Ventura County, Santa Barbara, Northern California and San Diego. The San Fernando’s Valley’s two major airports are Burbank Bob Hope Airport and Van Nuys Airport.

METRO ORANGE LINE STOPS

METROLINK The Metrolink Ventura County Line is a commuter rail line serving Ventura County and the San Fernando Valley in Los Angeles County and the City of Los Angeles, in the Southern California system. Three trains each weekday run to Chatsworth Station (western SFValley) — major transit hub, with the Amtrak Pacific Surfliner, the Metro Orange Line (6-2012) and Metro Local valley bus lines, the LADOT Commuter Express service; and buses from Santa Clarita Transit, and Simi Valley Transit. Trains of the six East Ventura and four Moorpark runs also stop here.

42 43 MAJOR EMPLOYERS

Northridge is home to nearly 20,000 businesses employing approximately 212,000 people. Over 500,000 people are employed within an approximately 20- 1 MILE 3 MILES 5 MILES mile radius of Northridge. With retail and wholesale being the most common industry classification, the Northridge community is particularly known for its strong presence in the technology sector. Major employers in Northridge and adjacent communities include: 3M Company, Health Net, Nestle USA, Farmers 2021 Population 18,411 235,116 528,901 Insurance, Universal Music Group, Woodland Hills Medical Center, and Gen Corp. Chatsworth is also proximate to Warner Center, the downtown and office hub of the San Fernando Valley. Warner Center is home to many high profile employers and serves as a major employer hub. 2021 Households 5,673 73,997 179,049 2021 Average Household Major employers in Northridge and the surrounding communities include: 3.20 3.00 2.90 Size 2021 Median Household 528,901 $80,619 $80,619 $71,789 $76,230 Income Population within Median HH income within 2021 Average Household 5-m radius 1-m radius $100,179 $93,561 $99,003 Income

2021 Owner Occupied 3,408 38,736 96,016 Households

2021 Renter Occupied 2,264 35,260 83,033 Households

<$25,000 950 12,016 28,070 83,033 26,692 Renter Occupied Households Businesses $25,000 - $50,000 897 13,671 30,682 within 5-m radius within a 5-m radius

$50,000 - $75,000 798 12,942 29,611

$75,000 - $100,000 852 10,198 23,605

$100,000 - $125,000 601 7,968 20,160

$125,000 - $150,000 513 4,994 13,239

$150,000 - $200,000 514 6,029 16,669 $100,179 96,016 Average HH income within Owner Occupied Households $200,000+ 548 6,17 7 17,013 1-m radius within 5-m radius

44 45 FINANCIAL ANALYSIS ENTIRE CENTER – MCDONALD’S & IN-LINE RETAIL SHOPS

46 47 FINANCIAL ANALYSIS OPERATING DATA ENTIRE CENTER INCOME AND EXPENSE CURRENT COVID EXPENSES BREAKDOWN PER YEAR PER SF Scheduled Lease Income $403,580 $367,925 Taxes @1.25% $93,750 $4.56 NNN Charge $134,281 $134,281 Insurance $17,500 $0.85 RENT ROLL Effective Gross Income $537,861 $502,206 DWP Water $150 $0.01 LEASE LEASE COVID LEASE Expenses $141,118 $141,118 Parking Lot $7,800 $0.38 TENANT SF SF % RENT RENT/SF COVID RENT INCREASES OPTIONS START EXP RENT/SF TYPE Net Operating Income $396,743 $361,088 Trash $2,775 $0.13 COL range 12-15% every 5 McDonalds 2,776 14.94% 9/5/18 9/4/38 $7,916.67 $7,916.44 $2.85 years, COL range 15-18% 4 - 5 year NNN Tree Trim $3,000 $0.15 each 5 year option year Management $16,143 $0.78 Liquor 1,200 6.46% 3/15/17 3/14/22 $2,056.00 $1.71 $2,055.00 $1.71 4COL. Option + $100 1 - 5 year Total $141,118 $6.86 / $0.57 Recycling Center 0.00% 7/2/05 $1,600.00 $1,600.00 Vacant 900 4.84% 2COL, min 3%. Option: COL Beauty Parlor 900 4.84% 8/9/19 8/8/24 $1,890.00 $2.10 $1,890.00 $2.10 PRICING + $250

Metro Market 900 4.84% 8/1/19 8/8/22 $1,625.00 $1.80 $1,625.00 $1.81 2COL, min 3% Price $7,500,000 2COL min 3%. Option: COL Barber 900 4.84% 8/1/19 8/8/24 $1,500.00 $1.67 $1,500.00 $1.67 1 - 5 year Current CAP Rate: 5.29% + $300 Covid CAP Rate: 4.81% ChaChaCha 1,200 6.46% 2/1/11 1/31/21 $2,450.00 $2.04 $2,450.00 $2.04 COL Building SF 20,576 Skate Shop 900 4.84% 11/1/16 10/31/21 $1,750.00 $1.94 $1,750.00 $1.94 3COL. Option: COL + $150 1 - 5 year Price/SF (Building) $365 Massage 900 4.84% 4/1/17 3/30/22 $2,004.00 $2.22 $2,004.00 $2.23 4COL. Option: COL + $250 1 - 5 year Land SF 106,726 Billards 5,333 28.71% 6/1/15 5/31/25 $5,840.00 $1.10 $2,870.00 $0.54 2COL. Option: COL + $850 1 - 5 year 2COL min 3%. Option: 3% Price/SF (Land) $70 Fusion 2,667 14.36% 5/17/19 8/16/24 $5,000.00 $1.87 $5,000.00 $1.87 1 - 5 year + $350 TOTAL 18,576 100% - - $33,631.67 $1.81 $30,660.44 $1.65 - - -

Occupied SF% 95.16% MCD SF% 14.94% Vacant SF% 4.84% In-Line SF% 85.06%

48 49 FINANCIAL ANALYSIS MCDONALD'S ONLY

50 51 FINANCIAL ANALYSIS MCDONALD'S ONLY

RENT ROLL LEASE COVID COVID LEASE TENANT SF SF % LEASE EXP RENT RENT/SF INCREASES OPTIONS START RENT RENT/SF TYPE 12-15% every 5 McDonalds 2,776 14.94% 9/5/18 9/4/38 $7,916.67 $2.85 $7,916.44 $2.85 years, 15-18% each 4 - 5 year NNN 5 year option year TOTAL 18,576 100% - - $7,916.67 $2.85 $7,916.44 $2.85 - - - OPERATING DATA PRICING INCOME AND EXPENSE CURRENT Scheduled Lease Income $95,000 Price $3,000,000 NNN Charge $48,379 Current CAP Rate: 3.17% Effective Gross Income $143,379 Building SF 2,776 Expenses $48,379 Price/SF (Building) $1,081 Net Operating Income $95,000 Land SF 7,649 EXPENSES BREAKDOWN PER YEAR PER SF Price/SF (Land) $392 Taxes @1.25% $37,500 $16.48 Insurance $2,615 $1.15 DWP Water $22 $0.01 Parking Lot $1,166 $0.51 Trash $415 $0.18 Tree Tirim $448 $0.20 Management $2,412 $1.06 Total $44,579 $16.06 / $1.34

52 53 FINANCIAL ANALYSIS IN-LINE SHOPS ONLY

54 55 FINANCIAL ANALYSIS OPERATING DATA IN-LINE SHOPS ONLY INCOME AND EXPENSE CURRENT COVID EXPENSES BREAKDOWN PER YEAR PER SF Scheduled Lease Income $308,580 $272,928 Taxes @1.25% $56,250 $4.56 NNN Charge $91,040 $91,040 Insurance $14,885 $0.85 Effective Gross Income $399,620 $363,968 DWP Water $128 $0.01 RENT ROLL Expenses $96,539 $96,539 Parking Lot $6,634 $0.38 LEASE COVID TENANT SF SF % LEASE EXP RENT RENT/SF COVID RENT INCREASES OPTIONS START RENT/SF Net Operating Income $303,081 $267,429 Trash $2,360 $0.13 4COL. Option + Liquor 1,200 7.59% 3/15/17 3/14/22 $2,056.00 $1.71 $2,055.00 $1.71 1 - 5 year Tree Trim $2,552 $0.15 $100 Recycling Center 0.00% 7/2/05 $1,600.00 $1,600.00 Management $13,730 $0.78 Total $96,539 $5.42 / $0.45 Vacant 900 5.70% 2COL, min 3%. Beauty Parlor 900 5.70% 8/9/19 8/8/24 $1,890.00 $2.10 $1,890.00 $2.10 Option: COL + $250 PRICING Metro Market 900 5.70% 8/1/19 8/8/22 $1,625.00 $1.80 $1,625.00 $1.81 2COL, min 3% 2COL min 3%. Price $4,500,000 Barber 900 5.70% 8/1/19 8/8/24 $1,500.00 $1.67 $1,500.00 $1.67 Option: COL + 1 - 5 year Current CAP Rate: 6.74% $300 ChaChaCha 1,200 7.59% 2/1/11 1/31/21 $2,450.00 $2.04 $2,450.00 $2.04 COL Covid CAP Rate: 5.94% 3COL. Option: Building SF 17,800 Skate Shop 900 5.70% 11/1/16 10/31/21 $1,750.00 $1.94 $1,750.00 $1.94 1 - 5 year COL + $150 Price/SF (Building) $253 4COL. Option: Massage 900 5.70% 4/1/17 3/30/22 $2,004.00 $2.22 $2,004.00 $2.23 1 - 5 year COL + $250 Land SF 99,077 2COL. Option: Billards 5,333 33.75% 6/1/15 5/31/20 $5,840.00 $1.10 $2,870.00 $0.54 1 - 5 year Price/SF (Land) $45 COL + $850 2COL min 3%. Fusion 2,667 16.88% 5/17/19 8/16/24 $5,000.00 $1.87 $5,000.00 $1.87 1 - 5 year Option: 3% + $350 TOTAL 15,800 100% - - $25,715.00 $1.63 $22,744.00 $1.44 - -

56 57 COMPARABLES ANALYSIS SALES COMPARABLES - MCDONALD'S

58 59 SALES COMPARABLES MCDONALD''S SALES COMPARABLES | PRICE/SF

PRICE/ PRICE/ ADDRESS SALES PRICE BUILDING SF LAND SF CAP RATE SALES DATE SF(BLDG) SF(LAND)

12919 Victory Blvd 1 North Hollywood, CA $4,750,000 4,792 $991.24 31,032 $153.07 3.15% 10/21/20 91606 $839 AVG PRICE/SF (BLDG) 25803 Western Ave 2 $2,400,000 6,363 $377.18 9,112 $263.33 3.00% 3/25/20 Lomita, CA 90717

11321 Talbert Ave 3 Fountain Valley, CA $4,025,000 3,500 $1,150.00 43,995 $91.49 3.35% 3/24/20 92708 3.17% AVG CAP RATE AVERAGE $3,725,000 4,885 $839.47 28,046 $169.30 3.17% - SALES COMPARABLES | CAP RATE

16904, 16908 & 16950 Parthenia St

1 12919 Victory Blvd $169 AVG PRICE/SF (LAND) 1 2 25803 Western Ave

3 11321 Talbert Ave

2 3

60 61 COMPARABLES ANALYSIS SALES COMPARABLES - RETAIL

62 63 SALES COMPARABLES RETAIL 16904, 16908 & 16950 Parthenia St 4 1 8232-8254 White Oak Ave PRICE/ PRICE/ ADDRESS SALES PRICE BUILDING SF LAND SF CAP RATE SF(BLDG) SF(LAND) 2 8957-8967 Reseda Blvd

3 3 9000 - 9020 Reseda Blvd 8232-8254 White Oak 2 1 Ave $4,800,000 17,200 $279.07 34,412 $139.49 5.77% 4 17708-17710 Chatsworth St Northridge, CA 91325 1 5 7151-7161 Lindley Ave

8957-8967 Reseda Blvd 2 $2,750,000 7,625 $360.66 28,749 $95.65 5.00% Northridge, CA 91324

9000 - 9020 Reseda 3 Blvd $8,575,000 12,439 $689.36 71,284 $120.29 - SALES COMPARABLES | PRICE/SF Northridge, CA 91324

17708-17710 $386 AVG PRICE/SF (BLDG) Chatsworth St 4 $1,800,000 4,875 $369.23 9,748 $184.65 - Granada Hills, CA 91344

7151-7161 Lindley Ave 5 $2,376,000 10,165 $233.74 17,484 $135.89 7.53% Reseda, CA 91335 $135 AVG PRICE/SF (LAND)

AVERAGE $4,060,200 10,461 $386.41 32,335 $135.19 6.10%

64 65 COMPARABLES ANALYSIS RENT COMPARABLES

66 67 RENT COMPARABLES RETAIL 16904, 16908 & 16950 Parthenia St

1 16141-16173 Roscoe Blvd ADDRESS RENTABLE SF SF OCCUPIED RENT/SF/MON RENT/SF/YR LEASE TYPE LEASE START 2 15317-15333 Parthenia St

2 16141-16173 Roscoe 3 8243-8267 Sepulveda Blvd 1 Blvd 24,778 1,270 $1.95 $23.40 MG Sep-20 5 4 1 4 8311-8317 Louise Ave North Hills, CA 91343 3

5 8332 Sepulveda Blvd

15317-15333 Parthenia 2 St 8,767 900 $1.99 $23.88 MG Aug-20 North Hills, CA 91343

8243-8267 Sepulveda Blvd 3 16,179 1,800 $1.67 $20.04 NNN May-21 RENT COMPARABLES | RENT/SF/MONTH Panorama City, CA 91402 $1.85 8311-8317 Louise Ave AVG RENT/SF/MON 4 18,077 825 $1.75 $21.00 NNN Nov-20 Northridge, CA 91325

8332 Sepulveda Blvd 5 13,135 690 $1.90 $22.80 NNN Mar-20 North Hills, CA 91343 $22.22 AVG RENT/SF/YR

AVERAGE 16,187 1,097 $1.85 $22.22 - -

68 69 BRANDON MICHAELS GROUP SOUTHERN CALIFORNIA'S PREMIER SALES TEAM