FOOTHILL CENTER VISTA,

™ CLICK TO WATCH PROPERTY VIDEO EXCLUSIVELY LISTED BY LEASING SPECIALISTS EL WARNER KYLE MATTHEWS CAITLIN ZIRPOLO JORDAN GOMEZ KIRK D ALLISON VIC GAUSEPOHL EVP & National Director Chairman and CEO Associate Associate Senior Vice President Senior Vice President [email protected] [email protected] [email protected] [email protected] direct (949) 873-0507 direct (310) 919-5757 direct (949) 432-4518 direct (949) 432-4503 [email protected] [email protected] mobile (858) 752-3078 mobile (310) 622-3161 mobile (760) 685-6873 mobile (951) 264-5994 direct (760) 930-7922 direct (760) 930-7912 Lic # 01890271 (CA) Lic # 01469842 (CA) Lic # 01987844 (CA) Lic # 02008809 (CA) Lic # 01049184 (CA) Lic # 01070105 (CA)

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2 FOOTHILL CENTER VISTA, CALIFORNIA

TABLE OF CONTENTS 04 | Executive Overview 06 | Financial Analysis

14 | Property Overview 18 | Area Overview 22 | Tenant Overviews 24 | Lease Abstracts I INVESTMENT SUMMARY SECTION Offering Price $25,000,000 EXECUTIVE OVERVIEW NOI Year 1 $1,419,232 NOI Year 2 $1,567,002 Cap Rate Year 1 5.68% Cap Rate Year 2 6.27% OFFERING SUMMARY NOI Growth (10 yr CAGR) 4.47% Current Occupancy 98.4% Matthews Real Estate Investment Services is pleased to present the fee simple sale of Foothill Center, a ±114,943 SF grocery-anchored shopping center located along East DEBT QUOTE Vista Way in Vista California. Ideally situated along the major east/west retail corridor the property sees ± 46,000 vehicles per day. LTV 65% Loan Amount $16,250,000 Foothill Center is a tremendous opportunity to acquire a Interest Rate 4.90% high performing grocery-anchored shopping center in San Interest Only Period 24 Mos. Diego County. With 70% of the income generated from , Rite Aid, and Starbucks, this property offers Amortization 30 Years a consumer a solid mix of complementary retailers. The Term 10 Years property’s ease of accessibility and unparalleled tenant For current market debt quotes, contact Brian Krebbs at [email protected] synergy creates a winning, daily needs shopping experience for the diverse community that it serves. INVESTMENT HIGHLIGHTS The property is also in great overall condition and the in- place rents are below market. This creates a purchase price • High performing grocery-anchored shopping center in below replacement costs and future upside as tenant leases expire. Further, the asset benefits from strong sales and • Significant rent increases due to below-market rents in place its functional layout. • Albertsons and Rite Aid have strong sales, low rents, and a low cost of occupancy

This property’s location along with its current tenancy • The property has an excellent anchor to shop ratio and includes two outparcels will provide an investor with a generational asset that has occupied by national retailers long-term stability and pride of ownership. It is also being offered free and clear of existing financing. • Synergistic tenant line up resistant to e-commerce • High traffic signalized intersection • The property is in great overall condition 4 5 II SECTION FINANCIAL ANALYSIS INCOME & EXPENSES

Year 1 Year 2

Total $/SF Total $/SF Income Rental Income $1,402,710 $12.20 $1,574,442 $13.70 Percentage Rent $35,000 $0.30 $36,050 $0.31 Other Income $36,811 $0.32 $35,656 $0.31 Expense Reimbursements $510,923 $4.45 $560,750 $4.88 Vacancy Factor (5%) $0 $0.00 ($57,858) ($0.50) Effective Gross Income $1,985,444 $17.27 $2,149,040 $18.70

Expenses Real Estate Taxes $324,283 $2.82 $330,769 $2.88 Insurance $16,295 $0.14 $16,784 $0.15 CAM $185,925 $1.62 $191,504 $1.67 Management $39,709 $0.35 $42,981 $0.37 EGI (%) 2.00% 2.00% Total Operating Expense $566,212 $4.93 $582,038 $5.06 Net Operating Income $1,419,232 $12.35 $1,567,002 $13.63

6 RENT ROLL

Contract Rental Rate Rent PSF Rent Increases Lease Lease Square % of Suite Tenant Options Start End Feet NRA Year Month Year Month Date Year Month

1x5 years at $9,350/monthly 1213 Jiffy Lube Oct-10 Jul-23 2,003 1.7% $84,000 $7,000 $41.94 $3.49 Aug-19 $102,000 $8,500 on a triple net basis

Mar-18 $55,557 $4,630 Vista French Pastry Mar-19 $57,223 $4,769 2x5 years at Fair Market Rent 1223-A Mar-07 Jul-23 1,918 1.7% $53,939 $4,495 $28.12 $2.34 Cafe Mar-20 $58,940 $4,912 with 3% annual increases Mar-21 $60,708 $5,059 World's Fare 1223-B Oct-13 Sep-18 1,358 1.2% $23,496 $1,958 $17.30 $1.44 Gift Shop

Pacifica 3% annual Seller to lease back space at 1225 Aug-18 Jul-21 3,654 3.2% $76,734 $6,395 $21.00 $1.75 (Lease Back) increases $21.00 w/ 3% annual increases

1x7 years at 10% ($16.23/yr 1233 Spicy King Jun-12 May-19 2,500 2.2% $36,000 $3,000 $14.40 $1.20 Jun-18 $36,900 $3,075 NNN) increase from last rent with annual increases of 3%

Tenant is month-to-month, 1241 Hart Yoga Studio Dec-10 Dec-18 3,650 3.2% $18,000 $1,500 $4.93 $0.41 either party may terminate with 60 days notice 2x5 years at Fair Market Rent 1245 Dr. Farooq Ahmad Jul-06 Aug-18 950 0.8% $34,380 $2,865 $36.19 $3.02 with 3% annual increases

1247 Vacant 852 0.7% $20,712 $1,726 $24.31 $2.03

Jul-18 $27,826 $2,319 1x3 years at Fair Market Rent 1249 Top Nails & Spa Jan-97 Jun-21 889 0.8% $27,016 $2,251 $30.39 $2.53 Jul-19 $28,661 $2,388 with 3% annual increases Jul-20 $29,521 $2,460

1x3 years at Fair Market Rent 1251 The Max Salon Feb-98 Dec-18 1,056 0.9% $30,920 $2,577 $29.28 $2.44 with 3% annual increases

Tenant supplied notice to exer- cise last option on September Annual CPI 1253 Towne Dry Cleaner Jun-03 Feb-23 1,330 1.2% $29,539 $2,462 $22.21 $1.85 25th, 2017: 1x5 years at Fair Increases Market Rent with 2% annual increases 7 RENT ROLL CONT’D

Contract Rental Rate Rent PSF Rent Increases Lease Lease Square % of Suite Tenant Options Start End Feet NRA Year Month Year Month Date Year Month

Jan-19 $78,246 $6,521 2x5 years with 2.75% annual Jan-20 $80,398 $6,700 increases; 1st Option Start Coast Dental Jan-21 $82,609 $6,884 1279 Jan-15 Jan-25 4,102 3.6% $76,152 $6,346 $18.56 $1.55 Rent @ $92,077.91 per year; Services Jan-22 $84,881 $7,073 2nd Option Start Rent @ Jan-23 $87,215 $7,268 $105,454.38 per year Jan-24 $89,614 $7,468 2x5 years at; $34,848 per year 1289 Pizza Hut Mar-14 Feb-24 1,200 1.0% $28,800 $2,400 $24.00 $2.00 Mar-19 $31,680 $2,640 and $38,332.80 per year Jan-19 $45,268 $3,772 Vista Foothill 1x5 years at Fair Market Rent 1293 Jan-07 Dec-21 1,352 1.2% $43,949 $3,662 $32.51 $2.71 Jan-20 $46,626 $3,885 Dentistry with 3% annual increases Jan-21 $48,024 $4,002

1x5 years at Fair Market Rent 1295 State Farm Jan-11 Dec-18 1,012 0.9% $18,952 $1,579 $18.73 $1.56 with 3% annual increases

6x5 years at: 3/1/2024 - $320,191.08 per year and 7% 1301 Albertsons Jan-83 Feb-24 50,322 43.8% $299,244 $24,937 $5.95 $0.50 increases each option there- after

1363 Rite-Aid Feb-85 May-22 18,160 15.8% $118,044 $9,837 $6.50 $0.54 1x5 years at $118,044 per year

All American 1367 Mar-00 May-19 995 0.9% $27,600 $2,300 $27.74 $2.31 Jun-18 $28,800 $2,400 Barber Tenant is month-to-month, 1375 Foothill Laundry Jul-05 Dec-18 2,730 2.4% $58,968 $4,914 $21.60 $1.80 either party may terminate with 30 days notice

1x2 years at 3% increase over 1381 Jazzercise Jun-17 May-20 3,971 3.5% $42,000 $3,500 $10.58 $0.88 last in-place rent amount with 3% annual increases

8 RENT ROLL CONT’D

Contract Rental Rate Rent PSF Rent Increases Lease Lease Square % of Suite Tenant Options Start End Feet NRA Year Month Year Month Date Year Month

1x3 years at Fair Market Rent 1385-A T-Mobile Dec-10 Nov-19 1,041 0.9% $43,642 $3,637 $41.92 $3.49 Nov-18 $45,387 $3,782 with 4% annual increases

2x5 years; Aug-2026 @ 1385-B Starbucks Jul-06 Jul-26 1,747 1.5% $77,567 $6,464 $44.40 $3.70 Aug-21 $86,162 $7,180 $95,595.84 per year; Aug- 2031 @ $106,077.84 per year

Tenant is month-to-month, Big Daddy's New 1385-C Jun-17 Dec-18 2,187 1.9% $49,864 $4,155 $22.80 $1.90 either party may terminate York Pizza with 60 days notice Dec-18 $43,657 $3,638 Dec-19 $44,866 $3,739 2x5 years at Fair Market Rent 1385-D Mrs. Taco Mexican Dec-12 Nov-22 2,021 1.8% $42,441 $3,537 $21.00 $1.75 Dec-20 $46,079 $3,840 with 3% annual increases Dec-21 $47,291 $3,941 1243 Vacant 1,038 0.9% $31,140 $2,595 $30.00 $2.50 1x5 years at Fair 1255 UPS Mar-18 Jun-23 1,770 1.5% $38,232 $3,186 $21.60 $1.80 3% annual increases Market Rent with 3% annual increases 1364 Storage 1,135 1.0% $0 $0 $0.00 $0.00 Occupied Totals - In Place 113,053 98.4% $1,379,478 $114,957 $12.20 $1.02 Vacant Totals 1,890 1.6% $51,852 $4,321 $27.43 $2.29 Totals 114,943 100.0% $1,431,330 $119,278 $12.45 $1.04

OCCUPANCY COST ANALYSIS

Year 1 2016

Reimbursements Percentage Gross Sales Occupancy Occupancy Suite Tenant Name Tenant SF Base Rent RE Tax Insurance CAM Rent Annual Sales PSF Cost Cost %

1301 Albertsons 50,322 SF $299,244 $65,702 $141,007 $7,090 $0 $22,616,434 $449 $513,043 2.27% 1363 Rite-Aid 18,160 SF $118,044 $26,946 $56,820 $2,855 $35,000 $6,658,022 $367 $239,665 3.60% Total 68,482 SF $417,288 $92,648 $197,827 $9,945 $35,000 $29,274,456 $427 $752,708 2.57% 9 REVENUE BREAKDOWN

Tenant Name Sq.Ft. Lease Expiration In-Place Rent % of Revenue In Place Rent PSF Market Rent PSF Credit Anchor Albertsons 50,322 Feb-24 $299,244 21.7% $5.95 $19.50 National/Credit Rite-Aid 18,160 May-22 $118,044 8.6% $6.50 $15.00 National/Credit Subtotal 68,482 $417,288 30.2%

Restaurant Vista French Pastry Cafe 1,918 Jul-23 $53,939 3.9% $28.12 $30.00 Local/Regional Spicy King 2,500 May-19 $36,000 2.6% $14.40 $18.00 Local/Regional Pizza Hut 1,200 Feb-24 $28,800 2.1% $24.00 $24.00 National/Credit Starbucks 1,747 Jul-26 $77,567 5.6% $44.40 $42.00 National/Credit Big Daddy's New York Pizza 2,187 Dec-18 $49,864 3.6% $22.80 $24.00 Local/Regional Mrs. Taco Mexican 2,021 Nov-22 $42,441 3.1% $21.00 $24.00 Local/Regional Subtotal 11,573 $288,610 20.9%

Service Hart Yoga Studio 3,650 Dec-18 $18,000 1.3% $4.93 $23.50 Local/Regional Pacifica (Lease Back) 3,654 Jul-21 $76,734 5.6% $21.00 $21.00 Local/Regional Dr. Farooq Ahmad 950 Aug-18 $34,380 2.5% $36.19 $30.00 Local/Regional Top Nails & Spa 889 Jun-21 $27,016 2.0% $30.39 $30.00 Local/Regional The Max Salon 1,056 Dec-18 $30,920 2.2% $29.28 $30.00 Local/Regional Towne Dry Cleaner 1,330 Feb-23 $29,539 2.1% $22.21 $30.00 Local/Regional Coast Dental Services 4,102 Jan-25 $76,152 5.5% $18.56 $19.00 Local/Regional Vista Foothill Dentistry 1,352 Dec-21 $43,949 3.2% $32.51 $24.00 Local/Regional State Farm 1,012 Dec-18 $18,952 1.4% $18.73 $24.00 National/Credit All American Barber 995 May-19 $27,600 2.0% $27.74 $25.00 Local/Regional Foothill Laundry 2,730 Dec-18 $58,968 4.3% $21.60 $23.50 Local/Regional UPS 1,770 Jun-23 $38,232 2.8% $21.60 $23.50 National/Credit Jazzercise 3,971 May-20 $42,000 3.0% $10.58 $23.50 Local/Regional Subtotal 27,461 $522,442 37.9% 10 REVENUE BREAKDOWN CONT’D

Tenant Name Sq.Ft. Lease Expiration In-Place Rent % of Revenue In Place Rent PSF Market Rent PSF Credit

Shop World's Fare Gift Shop 1,358 Sep-18 $23,496 1.7% $17.30 $18.00 Local/Regional T-Mobile 1,041 Nov-19 $43,642 3.2% $41.92 $42.00 National/Credit Subtotal 2,399 $67,138 4.9%

Pad Jiffy Lube 2,003 Jul-23 $84,000 6.1% $41.94 $42.00 National/Credit Subtotal 2,003 $84,000 6.1%

Total 111,918 $1,379,478

REVENUE BREAKDOWN TENANT BREAKDOWN

Anchor - 30%

Services - 38% National/Credit - 69% Restaurant - 21% Local/Regional - 31% Pad - 6%

Shops - 5%

11 CASH FLOW

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Jul-2028 Average Annual Occupancy 96.77% 100.00% 100.00% 98.74% 99.66% 98.35% 99.52% 99.64% 96.49% 98.95% Potential Gross Revenue Base Rental Revenue $1,501,367 $1,574,442 $1,601,661 $1,637,606 $1,711,846 $1,770,538 $1,770,927 $1,804,138 $1,937,235 $2,172,201 Absorption & Turnover Vacancy (98,657) (36,740) (15,687) (51,102) (18,888) (9,224) (87,252) (43,001) Scheduled Base Rental Revenue 1,402,710 1,574,442 1,601,661 1,600,866 1,696,159 1,719,436 1,752,039 1,794,914 1,849,983 2,129,200 Expense Reimbursement Revenue CAM 176,702 197,896 203,560 207,409 219,045 221,859 232,567 240,124 241,117 248,894 Insurance 15,336 16,709 17,210 17,598 18,370 18,665 19,458 20,063 19,952 20,774 Management Fee 13,786 16,884 17,337 17,212 17,416 17,086 17,778 18,336 18,962 20,251 Real Estate Taxes 305,099 329,261 335,846 340,089 351,428 353,744 365,145 372,863 367,194 378,620 Total Reimbursement Revenue 510,923 560,750 573,953 582,308 606,259 611,354 634,948 651,386 647,225 668,539 Percentage Rent - Rite Aid 35,000 36,050 37,131 38,245 39,393 40,575 41,792 43,046 44,337 45,667 Super Sushi - TI Reimbursement 1,260 105 Coastal Dental - TI Reimbursem 7,894 7,894 7,894 7,894 7,894 7,894 5,920 658 Mrs. Taco - TI Reimbursement 24,657 24,657 24,657 24,657 14,383 Mrs. Taco - Signage Fee 3,000 3,000 3,000 3,000 1,750 Total Potential Gross Revenue 1,985,444 2,206,898 2,248,296 2,256,970 2,365,838 2,379,259 2,434,699 2,490,004 2,541,545 2,843,406 General Vacancy (57,858) (59,219) (24,276) (49,041) (16,124) (47,747) (59,071) (43,317) (31,829) Effective Gross Revenue 1,985,444 2,149,040 2,189,077 2,232,694 2,316,797 2,363,135 2,386,952 2,430,933 2,498,228 2,811,577 Operating Expenses CAM 185,925 191,504 197,249 203,166 209,262 215,536 222,001 228,667 235,525 242,589 Insurance 16,295 16,784 17,287 17,806 18,340 18,890 19,457 20,041 20,642 21,261 Management Fee 39,709 42,981 43,782 44,654 46,336 47,263 47,739 48,619 49,965 56,232 Real Estate Taxes 324,283 330,769 337,384 344,132 351,014 358,035 365,195 372,499 379,949 387,548 Total Operating Expenses 566,212 582,038 595,702 609,758 624,952 639,724 654,392 669,826 686,081 707,630 Net Operating Income 1,419,232 1,567,002 1,593,375 1,622,936 1,691,845 1,723,411 1,732,560 1,761,107 1,812,147 2,103,947

NOI Growth 10 Yr. CAGR: 4.47% $2,200,000

$2,000,000

$1,800,000

$1,600,000

$1,400,000

$1,200,000

$1,000,000 Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Jul-2028 12 LEASE EXPIRATION SCHEDULE

Year Year End Sqft % of NRA Cumulative % 1 2018 12,943 11% 11% CASH FLOW ASSUMPTIONS 2 2019 4,536 4% 15% 3 2020 3,971 3% 19% 4 2021 5,895 5% 24% Timing 5 2022 20,181 18% 41% Analysis Start 8/1/18 6 2023 7,021 6% 47% Analysis End 7/31/28 7 2024 51,522 45% 92% Hold Period 10 years 8 2025 4,102 4% 96% Area Measures 9 2026 1,747 2% 97% Net Rentable Area 114,943 10 2027 0 0% 97% Inflation Occupied 111,918 97% Market Rent Growth 3.0% Vacant 1,890 2% Expense Growth 3.0% Storage 1,135 1% Real Estate Tax Growth 2.0% Total 114,943 100% General Vacancy GV Loss 5.0% Leasing Assumptions Tenant Expirations Market Rent ($PSF/Annual) $18.00 - $42.00 60,000 120% Renewal Probability 75% 51,522 Downtime 6 months 50,000 100% Tenant Improvement Allowance ($/PSF) $10.00 40,000 80% Leasing Commissions 6% Free Rent None 30,000 60% 20,181 Rent Increases Anchor: 10% mid term ; Shops: 3% annual 20,000 40% Reimbursements Net Annual Expiration 12,943 4,536

Term Anchor: 10 years ; Shops: 5 years NRA % of Cumulative 10,000 5,895 7,021 20% 3,971 4,102 1,747 0 0 0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 YEAR

13 III SECTION PROPERTY OVERVIEW PARCEL MAP

PROPERTY DETAILS NAME Foothill Center 1 ADDRESS 1213 - 1385 E. Vista Way LOCATION Vista, CA APN 173-300-16 LAND AREA (ACRES) ± 10.25 YEAR BUILT 1986

PROPERTY DESCRIPTION 2 E. VISTA ADT±26,000 WAY PROPERTY TYPE Grocery-Anchored Center NET RENTABLE AREA ± 114,943 SF TOTAL TENANTS 23 CURRENT OCCUPANCY 93.6% AVERAGE REMAINING TERM 4.5 Years

APNs:

1 173-300-16 2 NAP

14 SITE PLAN Suite Tenant Square Feet 1213 Jiffy Lube 2,003 1223-A Vista French Pastry Cafe 1,918 1223-B World's Fare Gift Shop 1,358 1225 Pacifica (Lease Back) 3,654 1233 Spicy King 2,500 1241 Hart Yoga Studio 3,650 1225 1245 Dr. Farooq Ahmad 950 1247 Vacant 852 1249 Top Nails & Spa 889 1255 1251 The Max Salon 1,056 1253 Towne Dry Cleaner 1,330 1279 Coast Dental Services 4,102 1289 Pizza Hut 1,200 1293 Vista Foothill Dentistry 1,352 1295 State Farm 1,012 1301 Albertsons 50,322 1363 Rite-Aid 18,160 1367 All American Barber 995 1375 Foothill Laundry 2,730 1381 Jazzercise 3,971 1385-A T-Mobile 1,041 1385-B Starbucks 1,747 1385-C Big Daddy's New York Pizza 2,187 1385-D Mrs. Taco Mexican 2,021 1243 Vacant 1,038 1255 UPS 1,770 1364 Storage 1,135

Occupied Totals - In Place 109,399 OCCUPIED VACANT NAP Vacant Totals 5,544

Totals 114,943

15 SURROUNDING AREA

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16 DENSE HOUSING

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17 IV DISTANCE TO: SECTION AREA OVERVIEW ±43 MILES SAN DIEGO

±60 MILES VISTA, CA ORANGE COUNTY Vista is a city in northwest San Diego County. Only seven miles inland from the Pacific Ocean, Vista has a wide range of year-round activities for residents and visitors to enjoy. ±90 MILES Vista is conveniently located in a dense commercial corridor LOS ANGELES with easy access to major freeways. The city has more than 25 educational institutions for youth, and a business park home to over 800 companies. DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 22,218 99,036 230,658 MAJOR EMPLOYERS 2017 Estimate 21,151 94,489 218,313 2010 Census 19,866 88,885 202,209 EMPLOYER # OF EMPLOYEES Growth 2017-2022 5.04% 4.81% 5.66% Vista Unified School District 2,141

San Diego Superior Court 602 HOUSEHOLDS 1-MILE 3-MILE 5-MILE Watkins Manufacturing Company 550 2022 Projection 6,697 30,370 74,139 2017 Estimate 6,392 28,980 70,308 Zodiac Pool Care 444 2010 Census 6,055 27,329 65,607 DJ Orthopedics (DJO Global) 400 Growth 2017 - 2022 4.77% 4.80% 5.45%

INCOME 1-MILE 3-MILE 5-MILE 2017 Average $61,386 $72,261 $81,090 Household Income 18 18 SAN DIEGO, CA SAN DIEGO COUNTY DEMOGRAPHICS Vista is a part of the San Diego County which is a county located in the southwestern corner of the state POPULATION of California. With a population of 3,095,313, San Diego County is the second-most populous county in California and the fifth-most populous in the . Most of the county has a mild Mediterranean 2022 Projection 3,531,715 climate to semiarid climate, though there are mountains that receive frost and snow in the wintertime. 2017 Estimate 3,348,917 Tourism plays a large part in the economics of the San Diego metropolitan area. The city hosts close to 34 2010 Census 3,095,313 million visitors each year who in total spend nearly $9.9 billion. At the end of 2015, tourism broke records in Growth 2017-2022 5.46% hotel stays and visitor spending with a 1.2% overall visitation growth. Of the 34.3 million total visitors, about half (17.2 million) stay overnight in a hotel or a private home. HOUSEHOLDS Tourists are drawn to the region for a well-rounded experience, everything from shopping to surfing as well as its 2022 Projection 1,237,711 mild climate. Its numerous tourist destinations include Horton Plaza, Westfield UTC, Seaport Village, Westfield 2017 Estimate 1,172,883 Mission Valley and Fashion Valley Mall for shopping. SeaWorld San Diego and LEGOLAND California as amusement parks. With an average of 266 sunny days per year, it’s no wonder San Diego is a premier tourist 2010 Census 1,086,865 destination. The array of outdoor recreational activities, great food and easy access to the beach brings in 34.4 Growth 2017 - 2022 5.53% million visitors each year to the San Diego metropolitan area. INCOME 2017 Average $96,930 Household Income

3.34 MILLION 1.2 MILLION 81,710 POPULATION HOUSING UNITS EMPLOYER ESTABLISHMENTS 19 CITY OF VISTA DEVELOPMENT PROJECTS 0 1 MILES

DOWNTOWN MIXED USE 1 100 Main Street Five-story mixed use development consisting of two levels of underground parking, 14,880 sf of 10 commercial space on the ground level, and 126 apartment units on levels two through five S.D. COUNTY APPROVED ENCLAVE AT DELPY’S CORNER 11 2 11555 Foothill Drive 124 townhome units on 15.9 acres 2 GROVE SENIOR AFFORDABLE HOUSING PROJECT 3 815 Civic Center Drive 81 senior apartments on 2.4 acres

WARMINGTON RESIDENTIAL 13 4 1630 S. Melrose Drive 47 condominium units on 3.14 acres 1 9 12 5 BREEZE HILL APARTMENTS 3 631 S. Melrose Drive 14 Development plan for 88 apartments on 3.2 acres 8

VISTA PALOMAR 5 7 6 2100 W. San Marcos Boulevard Development plan for 191 condominium units and a 100 room hotel on 17.2 acres

NUEVA VISTA 7 1248 S. Santa Fe Avenue Site development for 22 condominium units on 2 acres

LAUREL CREEK CONDOMINIUMS 8 East of Grapevine Road, west of Durian Street, and north of Date Street 4 Development of 71 detached condominium units on 9.2 acres

VISTA CREEKSIDE APARTMENTS 9 APN 164-205-03, 04, 10 41-unit apartment complex on 1.28 acres

E. VISTA WAY CONDOMINIUMS 10 2025 E. Vista Way Site development for 73 detached condominium units on 8.2 acres UNDER CONSTRUCTION LAUREL POINTE SAN 11 West of N. Santa Fe Avenue at Taylor Street Site development plan for 159 single-family residential homes CARLSBAD MARCOS 6 20 LOCAL DEVELOPMENTS

2 ENCLAVE AT DELPY’S CORNER Located at the corner of E Vista Way and Foothill Drive, just across from the subject property is the 16.1 acre development of a 124 unit townhome development including open space amenities, landscaping, and associated site improvements. The townhomes will be split into 24 two-story buildings ranging from three to seven townhomes per building with “tuck under” two car garages.

12 PASEO SANTA FE The .75 miles on South Santa Fe Avenue between Vista Village Drive and Civic Center Drive will be filled with retail, shops, and restaurants and topped with living spaces to revitalize Downtown Vista. The first phase of the project consisting of .25 miles has been completed with the reconfiguration of S. Santa Fe Avenue from four lanes to two with wide sidewalks and energy efficient street lamps.

INLAND RAIL TRAIL 13 The Inland Rail Trail is a proposed 21-mile Class I facility that is located within the communities of Oceanside, Vista, San Marcos, and Escondido, as well as within a portion of the unincorporated County of San Diego.

The eastern most portion of the bikeway already has been constructed by the cities of Escondido and San Marcos and extends from the Escondido Transit and SPRINTER Rail Station in the City of Escondido to the intersection of West Mission Road and North Pacific Street in the City of San Marcos.

The current project, the San Marcos to Vista portion of the Inland Rail Trail, is a 7-mile section of Class I bikeway and multi-use path in San Marcos, Vista, and the County of San Diego.

14 PALA VISTA PARK This project is a capital improvement project to design and construct a city park - Pala Vista Park, located at 234 Pala Vista Drive. Capital Improvement budget included $750,000 for the design and development of Pala Vista Park.

21 V SECTION TENANT OVERVIEWS

TENANT NAME ALBERTSONS COMPANIES, INC. WEBSITE WWW.ALBERTSONS.COM

ALBERTSONS Albertsons is an American grocery company with 2,300 stores and over 250,000 employees. The company is one of the largest chains in North America with locations in 35 different states and the District of Columbia. The grocer operates under 19 different banners including Albertsons, , , -Osco, Shaws, Acme, Tom Thumb, , United , , , Carrs, and .

34 MILLION $59.7 BILLION CUSTOMERS PER WEEK 2016 SALES

273,000 500 NEW EMPLOYEES - ONE OF THE ITEMS LAUNCHED 22 LARGEST RETAIL EMPLOYERS EVERY YEAR

RITE AID STARBUCKS JIFFY LUBE The company operates through two segments, Retail Pharmacy Starbucks Corporation operates as a roaster, marketer, and A leading provider of oil changes and a subsidiary of Shell and Pharmacy Services. The Retail Pharmacy Segment sells retailer of specialty coffee worldwide. The company operates Oil Company, Jiffy Lube boasts more than 2,100 outlets led prescription drugs; and a range of other merchandises, such as in four segments: Americas; Europe, Middle East, and Africa; throughout North America that are all independently owned over-the-counter medications, health and beauty aids, personal China/Asia Pacific; and Channel Development. Its stores offer by operators. Besides oil changes, Jiffy Lube facilities provide care items, cosmetics, household items, and other every day and coffee and tea beverages, packaged roasted whole bean and maintenance services for air conditioning, fuel systems, and convenience products. Rite Aid stores generate roughly 70% of ground coffees, single-serve and ready-to-drink coffee and tea transmissions. Serving about 22 million customers annually, Jiffy their sales from filling prescriptions, while the rest comes from products, juices, and bottled water. The company’s stores also Lube caters to several fleet management firms such as Donlen, selling health and beauty aids, convenience foods, greeting cards, provide fresh food and snack offerings; and various food products, Emkay, Voyager, and PHH. Heartland Automotive Services, and more, including some 3,500 Rite Aid brand private-label such as pastries, and breakfast sandwiches and lunch items, as well Inc. is a franchisee company that operates over 530 Jiffy Lube products. as serve ware, beverage making equipment, and accessories. locations in the United States.

PUBLIC $30.74 B PUBLIC $19 B PRIVATE N/A OWNERSHIP REVENUE OWNERSHIP REVENUE OWNERSHIP REVENUE

23 ALBERTSONS LEASE ABSTRACT

Lessor Foothill Partners, Ltd Lessee Lucky Stores, Inc. Tenant Name Albertsons Landlord Foothill Partners, Ltd Tenant Size (SF) 51,160 Rent Commencement Date November 13, 1982 Expiration Date February 28, 2024 Lease Term 495 Months Remaining Lease Term (Current - 2/28/2024 ) 73 Months No. & Term of Options Six (6) options for a period of five (5) years each Contract Rental Rate - per year $299,244.00 1st Option (3/1/2024 - 2/28/2029) $320,191.08 2nd Option (3/1/2029 - 2/28/2034) $342,604.45 3rd Option (3/1/2034 - 2/28/2039) $366,586.76 4th Option (3/1/2039 - 2/29/2044) $392,247.83 5th Option (3/1/2044 - 2/28/2049) $419,705.17 6th Option (3/1/2049 - 2/28/2054) $449,084.53 Escalations 7% per option period Pro Rata reimbursement on a quarterly basis, for cost relating to the maintaining, insuring, sweeping, striping, lighting, cleaning, and repairing of common area, plus a 3% administrative fee of the total CAM costs. Lessee Operating Expenses

CAM excludes: Fire Alarms, HVAC, Trash Removal, Water (building), Management Fees, Insurance and Real Estate Taxes. Operating Expense Caps Tenants pro rata share not to exceed 43.5% Lessee Expense Exclusions Capital improvements exceeding $2,000 Property Tax Expenses Tenant to reimburse on a pro rata basis Property Tax Increases In the event real property taxes are increased for any reason, Tenant shall be obligated to pay one (1) such increase in any ten (10) year period. Property Insurance Tenant to reimburse on a pro rata basis Termination Option None Percentage Rent Three quarters of one percent of gross sales above $33,000,000 break point. Tenant: At its own expense, shall maintain the demises premises (excluding the supporting members of the roof, foundation, outside walls, and structural aspects of the floor). Maintenance & Repairs Landlord: At its own expense, shall maintain the outside walls of the demised premises, the structural aspects of its floors, and any other portion of the demised premises not required to be maintained by the Tenant. Estoppel 20 days Exclusive Use None Source: Original Lease / 1st Amendment

24 RITE AID LEASE ABSTRACT

Lessor Foothill Partners, Ltd Lessee Thrifty Payless, Inc Tenant Name Rite Aid Landlord Foothill Partners, Ltd Tenant Size (SF) 18,160 Rent Commencement Date February 1, 1983 Expiration Date May 31, 2022 Lease Term 471 Months Remaining Lease Term (Current - 5/31/2022) 52 Months No. & Term of Options One (1) option to extend for a period of Five (5) years Contract Rental Rate $118,044.00 1st Option (6/1/2022 - 5/31/2027) $118,044.00 Escalations None Pro Rata reimbursement on a quarterly basis, for cost relating to the maintaining, insuring, sweeping, striping, lighting, cleaning, and repairing of common area, plus a 5% administrative fee of the total CAM costs. Lessee Operating Expenses

CAM excludes: Fire Alarms, HVAC, Trash Removal, Water (building), Management Fees, Insurance and Real Estate Taxes. Operating Expense Caps None

Property Tax Expenses Tenant to reimburse on a pro rata basis Property Insurance Tenant to reimburse on a pro rata basis Termination Option None Co-tenancy Upon Albertsons vacating, the monthly required rent for the Tenant shall be reduced to strictly the percentage rent required. Tenant: At its own expense, shall maintain the interior of the demised premises in good condition.

Maintenance & Repairs Landlord: At its own expense, shall maintain the supporting members of the roof (incl. skylights, and trap doors), gutters, down-spouts, walls, structural portions of the building of which the demised premises is a part of, and exterior walls. Estoppel 30 days Building B (Albertsons) can only be used for commercial purposes usually found in first-class retail shopping centers. Landlord covenants that no part of Building B shall be used for the following purposes: (i) an office building, bar, tavern or cocktail lounge; (ii) an adult book store, adult video Restricted Use store or any business engaged in the sale of pornographic material; (iii) a gym; (iv) a warehouse; (v) a mortuary; (vi) an entertainment facility; (vii) a training or educational facility; (viii) industrial purposes; (ix) second hand store; (x) auction house or fire sale business; (xii) religious worship house; (xiii) liquor store. Source: Lease

25 JIFFY LUBE LEASE ABSTRACT

Lessor Foothill Partners, Ltd

Lessee Jiffy Lube International Inc.

Tenant Name Jiffy Lube

Landlord Foothill Partners, Ltd

Tenant Size (SF) 2,003

Rent Commencement Date September 19, 1985

Expiration Date July 31, 2023

Lease Term 454 Months

Remaining Lease Term (Current - 7/31/2023) 66 Months

No. & Term of Options One (1) option to extend for Five (5) years

Contract Rental Rate (Current - 7/31/2023) $102,000

1st Option (8/1/2023 - 7/31/2028) $112,200 Pro rata reimbursement inclusive of Costs for maintenance and operation of the common area shall include; without limitation, costs of resurfacing, repainting and restriping, cleaning, sweeping, and other janitorial service, policing, purchase, construction, and maintenance of Lessee Operating Expenses refuse receptacles, planting and relandscaping, directional signs and other markers, car stops, lighting and other utilities, reasonable depreciation allowance on improvements, machinery, and equipment used in connection with the common areas. Lessee Expense Exclusions None

Property Tax Expenses Tenant to reimburse on a pro rata basis

Property Insurance Tenant to reimburse on a pro rata basis

Termination Option None

Co-tenancy None Tenant: Will maintain the interior is good condition as well as the roof. Maintenance & Repairs Landlord: Will maintain in good repair the foundations, bearings and exterior walls (excluding glass and doors), subflooring, unexposed electrical, plumbing and sewage systems, gutters and downspouts. Estoppel 30 days

Exclusive Use None

Source: Lease

26 STARBUCKS LEASE ABSTRACT

Lessor Foothill Partners, Ltd Lessee Starbucks Corporation Tenant Name Starbucks Landlord Foothill Partners, Ltd Tenant Size (SF) 1,747 Rent Commencement Date September 9, 2005 Expiration Date July 31, 2026 Lease Term 250 Months Remaining Lease Term (Current - 7/31/2026 ) 102 Months No. & Term of Options Two (2) options to extend for a period of Five (5) years each Contract Rental Rate (Current - 7/31/2026) $77,566.80 1st Option (8/1/2026 - 7/31/2031) $95,595.84 2nd Option (8/1/2031 - 7/31/2036) $106,077.84 Lessee Operating Expenses Operating Expense Caps 5% on a non-cumulative basis Lessee Expense Exclusions Management Fee is excluded, Tenant pays 10% administration fee in lieu Property Tax Expenses Tenant to reimburse on a pro rata basis. Property Insurance Tenant to reimburse on a pro rata basis. Tenant may terminate lease with 120 days written notice. If Tenant exercises termination option, Tenant must pay Termination Fee of Twenty-Five Termination Option Thousand Dollars ($25,000) Proposition 13 Protection Expired Co-tenancy None Tenant: at Tenant's expense, shall keep the Premises in good order and repair, including maintaining all plumbing, HVAC, electrical and lighting facilities and equipment within the Premises and exclusively serving the Premises, and the store front, doors, and plate glass of the Premises.

Landlord: Landlord at its expense,shall maintain and repair and make replacements to the Premises and the Shopping center. Such repairs, Maintenance & Repairs replacements and maintenance shall include (without limitation) (a) the upkeep of the roof, roof membrane and roof systems (gutters, downspouts and the like), foundation, exterior walls, interior structural walls, and all structural components of the Premises and the Shopping Center and (b) the maintenance and repair of all parking areas, sidewalks, landscaping and drainage systems on the Property and all utility systems (including mechanical, electrical, and HVAC systems) and plumbing systems which serve the Shopping Center as a whole Estoppel 30 days Landlord is prohibited from leasing to other tenants that sells freshly ground and whole coffee beans, espresso-based drinks and or coffee-based drinks, gourmet brand coffee, and blended beverages, a full service sit down style restaurant serving a complete dinner menu. Exclusive Use Landlord may lease space to One (1) bakery/cafe that may sell brewed coffee and or espresso drinks so long as the coffee is non-brand identified and for off-premises consumption. Source: Lease

27 COAST DENTAL SERVICES LEASE ABSTRACT

Lessor Foothill Partners, Ltd

Lessee Coast Dental Services, LLC Tenant Name Coast Dental Services Landlord Foothill Partners, Ltd Tenant Size (SF) 4,102 Rent Commencement Date January 1, 2016 Expiration Date January 31, 2025 Lease Term 108 Months Remaining Lease Term (Current - 1/31/2025 ) 84 Months No. & Term of Options Two (2) options to extend for a period of Five (5) years each with annual increases of 2.75% Contract Rental Rate (1/1/2018 - 1/31/2018) $76,152.24 Annual Increases (first of every January) 2.75% 1st Option (2/1/2026 - 1/31/2031) $92,077.91 per year with annual increases 2nd Option (2/1/2031 - 1/31/2036) $105,454.38 per year with annual increases Tenant shall reimburse on a pro rata basis all Common Area Costs shall include without limitation, all reasonable sums expended in connection Lessee Operating Expenses with the Common Areas and Shopping Center. Lessee Expense Exclusions None Property Tax Expenses Tenant to reimburse on a pro rata basis Property Insurance Tenant to reimburse on a pro rata basis Termination Option None Co-tenancy None Tenant: Tenant shall, at its expense and at all times maintain in good and tenantable condition, including without limitation, the utility meters, the HV AC System serving the Premises, all pipes and conduits serving the interior of the Premises, all fixtures, the storefront, plate glass, all signs, locks and closing devices, all window sashes, casements or frames, doors and door frames, security grilles or similar enclosures, floor coverings, including carpeting, terrazzo or other special flooring, all other equipment installed in the Premises, and all such items of repair, maintenance, alteration and improvement or reconstruction to the interior of the Premises as may at any time or from time to time be required by any Maintenance & Repairs governmental agency having jurisdiction thereof.

Landlord: Landlord shall at repair and maintain in good tenantable condition the roof, exterior walls, and structural parts of the Premises (including the structural floor). Additionally, Landlord shall be responsible for the cost of repairs (but not maintenance) to the HVAC System, and replacement of the HVAC System if necessary and not otherwise covered by warranty. Estoppel 30 days Except for the preexisting dental tenant Dr. Nieva Bautista in the Shopping Center, Tenant shall have exclusivity in the Shopping Center Exclusive Use throughout the term of this lease and any renewals thereto for the use of General Family Dentistry, Oral Surgery, and Orthodontics, provided Tenant is not in default beyond any cure periods and is operating in the Premises. Source: Lease

28 29 30 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Foothill Center located at 1213 - 1385 E Vista Way, Vista, CA 92084 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. EXCLUSIVELY LISTED BY FOOTHILL EL WARNER KYLE MATTHEWS EVP & National Director Chairman and CEO [email protected] [email protected] direct (949) 873-0507 direct (310) 919-5757 CENTER mobile (858) 752-3078 mobile (310) 622-3161 Lic # 01890271 (CA) Lic # 01469842 (CA)

VISTA, CALIFORNIA CAITLIN ZIRPOLO JORDAN GOMEZ Associate Associate [email protected] [email protected] direct (949) 432-4518 direct (949) 432-4503 mobile (760) 685-6873 mobile (951) 264-5994 Lic # 01987844 (CA) Lic # 02008809 (CA)

LEASING SPECIALISTS

KIRK D ALLISON VIC GAUSEPOHL Senior Vice President Senior Vice President

[email protected] [email protected] direct (760) 930-7922 direct (760) 930-7912 Lic # 01049184 (CA) Lic # 01070105 (CA)

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