INVESTMENT OPPORTUNITY 2385 CAMINO VIDA ROBLE CARLSBAD, CA 92011

MULTI TENANT OFFICE INVESTMENT OPPORTUNITY

OFFERED AT: $5,671,000 | 5.75% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Rent Roll 7 Cash Flow Projection 8 Replacement Cost Summary

PROPERTY INFORMATION 10 Location Maps 11 Site Description 12 Floor Plans 14 Carlsbad Market Overview 20 Value Add Component 21 Property Photos 23 Aerials

AREA OVERVIEW 29 Carlsbad Overview 30 San Diego County Overview 31 Demographics

Confidentiality Agreement & Disclosures

CAPITAL MARKETS CONTACTS RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA Lic#01338994 CA Lic#01826517

LOCAL MARKET EXPERTS JEFF ABRAMSON GREG GERSHMAN Principal Principal 760.929.7835 760.929.7861 [email protected] [email protected] CA Lic#00956805 CA Lic#01909272

Color Scheme

RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47

RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65

Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT

23852385 CAMINO CAMINO VIDA VIDA ROBLE ROBLE | | Carlsbad, Carlsbad, CA CA | | 2 2 2385 EXECUTIVE SUMMARY CAMINO VIDA ROBLE CARLSBAD, CA 92011 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS TENANT OVERVIEW Offering Price: $5,671,000 Securitas Security Svc 1,500 SF Net Operating Income: $326,073 Remington L&W Holdings 1,024 SF Grant IP 1,546 SF Cap Rate - Year 1: 5.75% Mike Thomas 2,000 SF Price/SF: $201 John Roach 1,531 SF Learning Genie 1,045 SF PROPERTY OVERVIEW Ramesh Enterprises 1,515 SF Property Type: Multi-Tenant (16 Units) Summit Capital 1,194 SF 2385 Camino Vida Roble EA Outsource & Bus. 1,922 SF Address: Carlsbad, CA 92011 Preferred Group Props 4,276 SF OPS Manager 1,692 SF Occupancy: 100% ConferTel 1,537 SF Property Size: Approx 28,084 sq ft Amy Peters 900 SF Land Size: 1.67 Acres Vanguard Realty Advisors 2,736 SF Global Domains Int’l 2,969 SF Ownership: Fee Simple Accent Design 695 SF Year Built: 1986 Parking: 2.34/1,000 SF APN: 213-050-37-00

Lee & Associates is pleased to exclusively present to qualified investors, the rare opportunity to acquire an investment property located in the Camino Corporate Center business park in coastal Carlsbad. Carlsbad is located within the highly affluent North San Diego County submarket. Built in 1986, the subject property consists of an approximately 28,084 square foot, two-story multi-tenant office building located within the master planned, 147,393 square foot Camino Corporate Center. The property is located near the signalized intersection of Camino Vida Roble and El Camino Real, which sees a combined traffic count of 39,000+ cars per day, providing excellent visibility and access to the property. El Camino Real is the main North/South thoroughfare and preferred route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, Cardiff, and Oceanside. 2385 Camino Vida Roble is 100% leased to a diverse mix of office-related tenants including Summit Capital, Vanguard Realty Advisors, ConferTel, Securitas Security Services, and Global Domains International. Tenants in the project are currently paying an average rent of $1.44 modified gross PSF, well below market rents in this submarket which are roughly $1.70 modified gross PSF. It is nearly impossible to find another office building containing the same floor plate, as well located, and at the current lease rates within the submarket. As a result, approximately 70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions, reflecting commitment to the project and offering a high likelihood of renewals. Carlsbad is among the most attractive submarkets in San Diego. It is supported by an arterial freeway and a Coaster station, providing employers ease of access from San Diego and Orange County. In addition, the beach and countless outdoor amenities lift the demographic profile and attract tenants and residents alike. Carlsbad benefits from its position in North County along Interstate 5, making it easily accessible to residents in Orange County and the greater San Diego area. It also benefits from a reverse commute and high-end housing that can accommodate executives. The technology industry, ranging from sports technology to medical technology drive the economy in Carlsbad. Fortified by companies ranging from ViaSat to Fisher Scientific, the economic backbone along the coast is strong. The demographics also paint a picture of a submarket that is highly educated and well paid - nearly 60% of residents hold at least a bachelor’s degree and the median household income is almost $100,000.

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary

-- INVESTMENT HIGHLIGHTS --

CARLSBAD: HIGHLY DESIRABLE N. SAN DIEGO COUNTY COASTAL OFFICE MARKET • IRREPLACABLE DIRECT ACCESS & PROXIMITY TO INSTERSTATE 5 • LESS THAN 1 MILE FROM McCLELLAN-PALOMAR LOCATION ADJACENT TO EL CAMINO REAL • PREFERRED MARKET FOR CORPORATE HQ’s AIRPORT • CARLSBAD OFFICE MARKET FEATURES DIVERSE RANGE OF CLUSTERED BUSINESSES

»» Due to Carlsbad’s coastal location, business friendly environment, and superior quality of life, the city of Carlsbad »» The property is strategically situated within proximity and direct access to Interstate 5, providing “reverse commute” houses the largest concentration of credit tenants in in North San Diego County. access from San Diego and Orange County.

»» The subject property is ideally situated adjacent to El Camino Real, the main North/South thoroughfare and preferred »» The subject property is located less than 1 mile from Palomar Airport, San Diego County’s largest single runway route for commuters living in the North San Diego Coastal communities of Encinitas, Carlsbad, Del Mar, La Costa, airport that houses an extensive corporate jet community. Cardiff, and Oceanside. »» The Carlsbad business community is made up of a wide range of business clusters that include action sports »» Employers and a highly skilled labor force benefit from proximity to executive housing, affordable living options manufacturing, life sciences, clean technology, information and communications technology (ICT), hospitality and for employees, aesthetically pleasing park standards, and an abundance recreational options including world class leisure. An abundance of new wave technology, multi-media, semiconductor, healthcare and biotech companies. resorts, courses, gyms, spas, hiking and biking trails, and retail amenities. There are as many as 30 industry-leading golf companies and 150 manufacturing plants also in Carlsbad.

»» Carlsbad is home to the corporate headquarters of many nationally recognized companies, such as Callaway Golf, ViaSat, Thermo Fisher Scientific, Genoptix, TaylorMade, Ionis Pharmaceuticals, and Rubio’s. These companies benefit from a well-educated work force, with 54% of its high school graduates achieving at least a Bachelor’s Degree CARLSBAD - AFFLUENT DEMOGRAPHICS ($111,000 AHI) • QUALITY OF LIFE ADVANTAGE • GOLF CAPTITAL OF THE WORLD • HEAVY TOURISM

»» Over 250,000 people with an impressive average household income of $111,700 live within a five mile radius of the subject property. 100% LEASED MULTI-TENANT OFFICE INVESTMENT • BELOW MARKET RENTS • OPPORTUNITY TO GROW NOI IN YEAR 2 • PRICED SIGNIFICANTLY BELOW REPLACEMENT COST • LONG-TERM TENANCY »» The quality of life advantage provides Carlsbad based firms with the ability to recruit and retain local talent.

»» The subject property is a 100% leased multi-tenant office building, priced at well below replacement cost for this »» Carlsbad is widely recognized as the “Golf Capital of the World” and is home to some of the largest and most market (see page 8 of OM). prestigious golf companies including Callaway, TaylorMade, Acushnet () and Cobra Golf.

»» The Tenants within 2385 Camino Vida Roble are currently paying an average rent of $1.44 modified gross PSF. Market »» Carlsbad benefits from a spectacular location in North San Diego County, with access to beaches, biking, hiking, rent in this submarket is roughly $1.70 modified gross PSF. It is nearly impossible to find another office building amusement parks, and an unmatched sunny climate. The city sees between 3.5-4 million visitors per year who are containing the same floor plate, as well located, and at the current lease rates within the submarket. drawn to the area for work, play, and relaxation

»» 70% of the tenants have been leasing long term within the building and have exercised multiple lease extensions. This commitment to the project offers a high likelihood of renewals and speaks to the quality of the real estate. DEMOGRAPHICS 1 MILE 3 MILES 5 MILES »» The current rent roll provides a future investor with a unique opportunity to either focus on renewing the current POPULATION 4,919 85,757 254,286 tenants as they roll for a continued stable cash flow or to push rents to market rates to significantly grow the net HOUSEHOLDS 1,773 32,544 89,993 operating income (see cash flow projection page 7). AVG HH INCOME $133,145 $109,990 $111,701

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary

-- RENT ROLL --

Unit # Tenant Name Lease Term Size (Sq. Ft.) Rent/SF/Year Rent/SF/Mo Increase Date New Rent/Yr Lease Type Renewal Options Lease Dates (Months) Bldg Share Annual Rent Monthly Rent Securitas Security Svc. 1,500 $18.60 $1.55 Dec-2018 $19.16 100 60 MG (2) 3-Year Options Dec-2015 to Nov-2020 5.34% $27,900 $2,325 Dec-2019 $19.73 Nov-2018 $18.54 Remington L&W Holdings 1,024 $18.00 $1.50 101 48 Nov-2019 $19.09 MG (1) 1-Year Option Nov-2017 to Oct-2021 3.65% $18,432 $1,536 Nov-2020 $19.67 Grant IP 1,546 $18.00 $1.50 102 27 Jul-2018 $18.54 MG -- Jul-2017 to Sep-2019 5.50% $27,828 $2,319 Mar-2019 $17.61 Mike Thomas 2,000 $17.18 $1.43 104 178 Mar-2020 $18.14 MG -- Jul-2007 to Mar-2022 7.12% $34,373 $2,864 Mar-2021 $18.69 John Roach 1,531 $17.53 $1.54 105 24 -- -- MG -- May-2017 to Apr-2019 5.45% $26,832 $2,236 Learning Genie 1,045 $18.46 $1.49 107 36 -- -- MG -- Mar-2016 to Apr-2019 3.72% $19,290 $1,607 Ramesh Enterprises 1,515 $17.30 $1.44 112 48 -- -- MG (1) 1-Year Option Feb-2015 to Feb-2019 5.39% $26,215 $2,184 Summit Capital 1,194 $16.54 $1.38 Aug-2018 $17.04 113 165 MG Dec-2006 to Aug-2020 4.25% $19,752 $1,646 Aug-2019 $17.55 EA Outsource & Bus. 1,922 $18.60 $1.55 Feb-2019 $19.16 114 62 MG (1) 2-Year Option Jan-2016 to Feb-2021 6.84% $35,748 $2,979 Feb-2020 $19.73 Preferred Group Prop. 4,278 $19.09 $1.59 Dec-2018 $19.66 200 66 MG (1) 5-Year Option Jul-2015 to Dec-2020 15.23% $81,687 $6,807 Dec-2019 $20.26 OPS Manager 1,692 $18.46 $1.54 201 67 -- -- MG (1) 3-Year Option Sep-2013 to Mar-2019 6.02% $31,233 $2,602 Feb-2019 $18.92 ConferTel 1,537 $18.46 $1.54 202 241 Feb-2020 $19.49 MG (1) 3-Year Option Jan-2002 to Jan-2022 5.47% $28,372 $2,364 Feb-2021 $20.07 Amy Peters 900 $16.00 $1.33 Jul-2018 $16.48 203 25 MG -- Jul-2016 to Jul-2020 3.20% $14,400 $1,200 Jul-2019 $16.97 Vanguard Realty Svcs 2,736 $14.42 $1.20 205 84 Jul-2018 $14.85 MG (3) 1-Year Options Aug-2012 to Jul-2019 9.74% $39,456 $3,288 Global Domains Int’l 2,969 $15.00 $1.25 210 85 -- -- MG (2) 3-Year Options Feb-2012 to Feb-2019 10.57% $44,535 $3,711 Accent on Design 695 $16.23 $1.35 212 97 -- -- MG (3) 1-Year Option Jul-2010 to Mar-2019 2.47% $11,280 $940 TOTALS $464,535.24 $38,711.27

Total Occupied SqFt 28,084 Total Available SqFt 0

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary

-- CASH FLOW PROJECTION --

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 For the Years Ending Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 POTENTIAL GROSS REVENUE

Base Rental Revenue $503,140 $554,071 $583,120 $608,824 $633,542 $652,549 $673,395 $693,335

Absorption & Turnover Vacancy (16,059) (7,498) (17,663) (8,472) (18,618) (8,692) (20,476)

Scheduled Base Rental Revenue 487,081 546,573 565,457 600,352 633,542 633,931 664,703 672,859 Expense Reimbursement Rev- 1,528 4,776 6,850 8,935 13,377 16,666 11,112 22,567 enue Total Potential Gross Revenue 488,609 551,349 572,307 609,287 646,919 650,597 675,815 695,426

General Vacancy (1,604) (12,062) (2,986) (13,150) (22,642) (4,805) (15,266) (4,581)

Effective Gross Revenue 487,005 539,287 569,321 596,137 624,277 645,792 660,549 690,845

OPERATING EXPENSES

Bldg Maintenance 29,988 30,888 31,814 32,769 33,752 34,764 35,807 36,881

Janitorial 15,384 15,846 16,321 16,811 17,315 17,834 18,369 18,920

Landscape 6,135 6,319 6,509 6,704 6,905 7,112 7,326 7,545

Insurance 5,588 5,756 5,928 6,106 6,289 6,478 6,672 6,873

Management @ 4% 19,480 21,571 22,773 23,845 24,971 25,832 26,422 27,634

Taxes @ 1.1% 65,218 66,523 67,853 69,210 70,594 72,006 73,446 88,231

Services Outside 900 927 955 983 1,013 1,043 1,075 1,107

Utilties 18,239 18,786 19,350 19,930 20,528 21,144 21,778 22,432

Total Operating Expenses 160,932 166,616 171,503 176,358 181,367 186,213 190,895 209,623 Net Operating Income 326,073 372,671 397,818 419,779 442,910 459,579 469,654 481,222

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 7 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Offering Summary Investment Highlights Rent Roll Cash Flow Projection Replacement Cost Summary

-- REPLACEMENT COST SUMMARY --

LAND SIZE 72,745 Square Feet BUILDING SIZE 28,084 Square Feet

HARD COSTS LAND ACQUISITION COST @ $25.00 $1,818,625 HARD COSTS @ $120.00 $3,370,080 TENANT IMPROVEMENTS @ $55.00 $1,544,620 TOTAL HARD COSTS $6,733,325 SOFT COSTS A & E @ 2.0% $134,666 INSURANCE $0.37 PSF $10,391 PROPERTY TAXES 1.10% Hard Costs $74,066 DEVELOPMENT FEES $8.50 PSF $238,714 LEGAL 1% Hard Costs $33,700 DEVELOPER’S PROFIT 10% Hard Costs $337,080 LOAN FEE 1% Hard Costs $33,700 CONTINGENCY 5% Hard Costs $168,504 INTEREST ON LAND CARRY 3% Hard Costs $54,558 INTEREST ON CONSTRUCTION 5% Hard Costs $168,504 INTEREST ON LEASE UP 3% Hard Costs $101,102 LEASING COMMISSION $4.00 PSF $112,336 TOTAL SOFT COSTS $1,467,321

TOTAL DEVELOPMENT COSTS $8,167,020 COST PER SQUARE FOOT $290

* Summary provided as part of an investment package. Subject to disclaimer on Pg 28

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 8 2385 PROPERTY INFORMATION CAMINO VIDA ROBLE CARLSBAD, CA 92011

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- LOCATION MAPS -- Oceanside Vista CARLSBAD

Escondido

Oceanside Vista Encinitas

Poway

CARLSBAD El Camino Real San Marcos La Jolla El Cajon ar A t Rd San Marcos Blvd lom irpor Pa

Escondido SAN DIEGO San Elijo Hills Chula Vista La Costa

Encinitas

Rancho Santa Fe

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- SITE DESCRIPTION --

2385 Camino Vida Roble ADDRESS: Carlsbad, CA 92011

STREET FRONTAGE: 248’ on Camino Vida Roble

SUBMARKET: Carlsbad

RENTABLE SQUARE FEET: 28,084 SF

CONSTRUCTION TYPE: Steel

Ingress/Egress from Camino Vida ACCESS: Roble

2 Floors - 1st: 14,042 SF # OF FLOORS: 2nd: 14,042 SF

Built-Up Roofing (BUR) with Cap ROOF: Sheet Surface

HVAC: Split System HVAC

FIRE PROTECTION: Sprinklered

YEAR BUILT: 1986

PM - Commercial & Light Industrial ZONING: 3-Story Height Limit

PARKING: 2.34/1000 SF (64 Surface Spaces)

APN: 213-050-37-00

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- FLOOR PLANS --

REMINGTON MIKE THOMAS GRANT IP SECURITAS L&W HOLDINGS SECURITY SVCS JOHN ROACH

RAMESH LEARNING EA OUTSOURCE SUMMIT ENTERPRISES GENIE & BUSINESS CAPITAL

FIRST FLOOR

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- FLOOR PLANS --

AMY PETERS CONFERTEL OPS MANAGER

PREFERRED VANGUARD GROUP PROP REALTY SVCS

GLOBAL ACCENT ON DOMAINS INT’L DESIGN

SECOND FLOOR

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- CARLSBAD MARKET OVERVIEW --

MARKET COMPARISON - 4TH QUARTER 2017 Carlsbad San Diego County Number of Buildings: 330 5,540 Rentable Building Area (RBA): 7,105,170 SF 115,599,153 Asking Rent (Class A, B & C): $30.02 $32.18

Vacancy Rate:

Asking Rents:

CARLSBAD OFFICE MARKET OVERVIEW • There has been a record demand for >5,000sf office space in the Carlsbad submarket showing the strongest lease-up rates and fetching some of the highest rents and values.

• We continue to see strong Class B low-rise demand from tenants as pricing continues to rise for the Class A office product.

• Carlsbad office market continues to see the trend of tenants moving away from Class A office buildings to chase the more preferred Class B rents

• ViaSat, a strong market driver for Carlsbad, employees over 2,000 workers and continues to expand its footprint in Carlsbad, The Bressi Ranch location is planned for approximately 792,000 sf buildout, with 280,000 sf scheduled to be completed in 2018.

SAN DIEGO OFFICE MARKET OVERVIEW • The San Diego Office market has experienced a decrease in availability over the past ten years--- 18.04% in 2008 down to 9.6% 2018 YTD. Low vacancy, coupled with minimal construction deliveries to the market has driven many San Diego submarkets to experience robust rents.

• The Average asking lease rate for office space in San Diego Increased $0.02 (+0.7%) in Q1. The rate is $0.10 (+3.8%) higher year-over-year and surpassed the all-time high reached in Q3 2017.

• The San Diego office market Q1 was the 15th consecutive quarter of positive occupancy.

• Employment growth is expected to rise 1.6 percent this year and office employment will rise even faster, up 2.4%.

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- CARLSBAD OFFICE SALE COMPARABLES --

$500

$400

AVERAGE $/SF: $312.08 $300

$200

$100

$0

BUILDING ADDRESS SUBJECT PROPERTY 5050 Avenida Encinas 2794 Gateway Rd 6120 Paseo Del Norte 2780 Gateway Rd 6405 El Camino Real 2910 Jefferson St 5130 Avenida Encinas 1207 Carlsbad Village 5051 Avenida Encinas 2282 Faraday Ave

Building Size 28,084 SF 49,080 SF 6,768 SF 30,388 SF 5,740 SF 12,763 SF 10,904 SF 7,988 SF 15,142 SF 8,585 SF 28,704 SF Price $5,946,000 $10,452,000 $1,800,000 $8,550,000 $1,615,000 $3,770,000 $3,340,000 $2,495,000 $5,000,000 $2,965,000 $14,000,000 Cap Rate 5.50% N/A N/A 6.00% N/A N/A 5.16% 5.80% 6.10% 5.25% N/A Price/SF $211.72 $214.80 $265.96 $281.36 $281.36 $295.39 $306.31 $312.34 $330.21 $345.37 $487.74 Year Built 1986 1986; Ren 1992 2007 1982; Ren 2008 2007 1982 1971 1985 1975 1982 1986

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 15 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- CARLSBAD OFFICE AVAILABILITIES --

2382 & 2386 Faraday Ave 5930 Priestly Dr 3172 Lionshead Ave Carlsbad, CA Carlsbad, CA Carlsbad, CA

IN ESCROW

List Price: $18,460,600 List Price: $3,055,000 List Price: $4,705,000 List Cap: N/A List Cap: 4.50% List Cap: 6.25% Bldg Size: 99,787 SF Bldg Size: 8,336 SF Bldg Size: 12,176 SF Price/SF: $185.00 Price/SF: $366.48 Price/SF: $386.42 NOI: N/A NOI: N/A NOI: N/A Year Built: 1988 Year Built: 2001 Year Built: 2007

Comments: Comments: Comments: • 44% Leased • 100% Leaased to Single Tenant • 100% Leased to Single Tenant • Flex Building - vacant units range from 1,400- • Lease rate below market rent • High-end creative office buildout 23,005 sq ft • Architectrual Enhancements • In Contract at Full Ask Price • Priced below replacement cost of $329/SF

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 16 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- OFFICE LEASE COMPARABLES --

OFFICE LEASE COMPARABLES - CARLSBAD Lease Photo Address City Leased SF Lease Rate Lease Term Escalations Tenant Commencement

115 Melrose Dr, Ste 160 Carlsbad 17,778 $2.07 Plus E 2/1/2020 24 3% Good Source Solutions

2714 Loker Ave W, Ste 100 & 200 Carlsbad 14,414 $1.95 Plus E 1/1/2017 62 3% Vertiflex, Inc.

Del Mar Recovery 1935 Camino Vida Roble, Ste 100 & 140 Carlsbad 11,825 $2.00 Plus E 12/1/2019 12 0% Solutions LLC

2141 Palomar Airport Rd, Ste 200 Carlsbad 11,801 $2.25 Plus E 6/1/2017 37 3% ColoreScience, Inc.

2330 Faraday Ave, Ste 100 Carlsbad 8,781 $1.66 NNN 2/1/2018 63 3% Chromacode

2111 Palomar Airport Rd, Ste 200 & 220 Carlsbad 7,345 $2.25 Plus E 4/1/2017 39 3% Hansen ICC, LLC

Michael Baker 5050 Avenida Encinas, Ste 260 & 270 Carlsbad 7,067 $2.71 Plus E 4/1/2020 38 3% International Inc

2011 Palomar Airport Rd, Ste 305 Carlsbad 6,615 $1.80 Plus E 6/1/2017 36 3% Cerner Corporation

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 17 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- OFFICE LEASE COMPARABLES (cont’d) --

OFFICE LEASE COMPARABLES - CARLSBAD Lease Photo Address City Leased SF Lease Rate Lease Term Escalations Tenant Commencement

Neuroscience Education 5900 La Place Ct, Ste 120 Carlsbad 5,023 $2.15 FSG 9/1/2016 65 3% Institute

ESN Insurance Services 2035 Corte Del Nogal, Ste 101 Carlsbad 3,158 $1.95 MG 5/1/2017 67 3% Network

2710 Loker Ave W, Ste 360/370 Carlsbad 3,140 $2.00 MG 3/1/2017 60 3% Gamma 2, Inc

785 Grand Ave, Ste 102 Carlsbad 1,667 $2.25 MG 2/1/2018 48 3% Social Supply Co, LLC

3150 El Camino Real, Ste C Carlsbad 1,428 $2.00 Gross 8/1/2016 60 3% Donna Fleming, MA LMFT

Qiwei Yuan & 785 Grand Ave, Ste 204 Carlsbad 1,304 $2.15 MG 7/15/2017 36 3% Yishuang Fang Bacaoco

785 Grand Ave, Ste 100 Carlsbad 1,300 $2.30 MG 5/1/2018 60 3% Dean Fauce Chiropractic

3150 El Camino Real, Ste F Carlsbad 1,226 $2.00 Gross 5/1/2017 60 0% Lisa Blake

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 18 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- OFFICE LEASE COMPARABLES (cont’d) --

OFFICE LEASE COMPARABLES - CARLSBAD Lease Photo Address City Leased SF Lease Rate Lease Term Escalations Tenant Commencement

Linebarger Goggan Blair 3150 El Camino Real, Ste D Carlsbad 1,004 $2.00 Gross 11/1/2016 36 3% & Sampson

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 19 Software : ARGUS Ver. 15.0.1.26 (Build: 15000‐B) 2385 Camino Vida Roble Date : 4/12/18 EXECUTIVE SUMMARY File : VID1 (modified byPROPERTY wge on 04‐05‐18) INFORMATION ‐ AREA OVERVIEW Time : 4:06 pm Property Type : Office/Industrial ‐ Ref# : AJF Portfolio : 28084 Carlsbad, CA 92011 Page : 1 Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials Market vs. Effective Rent

-- VALUE ADD COMPONENT -- MARKET VS EFFECTIVE RENT 3030 MARKET EFFECTIVE Market

2525 UNDER MARKET RENTAL RATE

2020 Market Rent: $1.70 PSF MG ($20.40)

Avg in Building: $1.44 PSF MG ($17.37) 1515

1010

Effective

5 5

Software : ARGUS Ver. 15.0.1.26 (Build: 15000‐B) 2385 Camino Vida Roble Date : 4/12/18 0 File0 : VID1 (modified by wge on 04‐05‐18) ‐ Time : 4:05 pm Property Type : Office/Industrial2019 2020 2021 2022 2023 ‐ 2024 2025 2026 Ref# : AJF Portfolio 2019: 28084 2020 2021 2022 2023 2024Carlsbad, CA 920112025 2026 Page : 1 Square Feet Expiring SQUARE FEET EXPIRING OVER THE NEXT 8 YEARS

10,00010,000

OPPORTUNITY TO PUSH RENTS IN BUILDING 8,0008,000

6,0006,000

4,0004,000

2,0002,000

00 Jun-2019Jun-2019 Jun-2020 Jun-2020 Jun-2021 Jun-2021 Jun-2022 Jun-2022 Jun-2023 Jun-2023 Jun-2024 Jun-2024 Jun-2025 Jun-2025 Jun-2023 Jun-2026 2385 CAMINO VIDA ROBLE | Carlsbad, CA | 20 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- PROPERTY PHOTOS --

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 21 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- PROPERTY PHOTOS --

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 22 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- OVERHEAD VIEW --

Yarrow Dr

2385

Camino Vida Roble

Camino Vida Roble

Jasper Way Las Palmas Dr

El Camino Real

Las Palmas Dr

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 23 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

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El Camino North OCEANSIDE

Shopping Ctr

Pacific Ocean

The Shoppes at Carlsbad Tri-City Crossroads

Shopping Ctr

Carlsbad Premium El C Co lle Outlet Stores g

CARLSBAD amino Real e

The Crossings Dimension One at Carlsbad Spa Corp HQ DD Studio Rockstar San Diego Acutus Carlsbad Airport ISIS MTS Self Storage GUNNAR Pharmaceuticals Systems Corp Spectrum Kendall Floral Optics Supply Magellan L3 San Diego Alphatec Spine Aviation Communications San Diego Regional Ctr Pacwest Sign Company Bancorp Upper Deck Golf Academy of McClellan-Palomar America San Diego Airport GenMark Diagnostics Granite Max Linear Construction Palomar Airport Rd K1 Speed Carlsbad CVI Melles Griot Executive Plaza Newman Carlsbad Replacement San Diego County Trans World Media Self Storage Animal Services Qualigen Windows Carlsbad Palomar Bitchin’ Manufacturing Commons United Pacifics Sauce Buffini & Co CJ Products Electronics EEDAR Peek Corp Aviara Community Location Smart Packaging Mercotec Z Customization Park Power Natel Target One Mafioso Mira Costa College GTR Enterprises L&L Printers Millipore Semiconductors Engineering Technology Center Technology Amigo CustomClothing Spectrum LOFT Signa Screen Prints Assembly Catalina Vitec KEEN One Stop Toner Restaurant Grp Electronics Performance RA Medical Camin & Inkjet o Vida Firewire Surf Dermesse Kart Racing Roble Burgeon Respironics Poinsettia Custom Markng Icetown Plaza Techonology Beer Co. Arc Zone MA Tile & Stone Carlsbad Teledyne Vineagogo Luxtera San Diego Hat Carlsbad Unified Oceanscience North Coast School District Association Speedminton Mgmt Grp The Fields Church Nucci’s Produce El Camno Real Form Factor ULI Scrooscoop Chuao Fastener Co Electro Surface Polara Golf Technologies Custopharm Darton International Carlsbad Crossfit Airgas Designer Villa Loma Tri-City Wellness Protein Hulse Aspirations Center Apartments San Diego Orthodontics PreSchool Premier Training Salter Labs Strata Skin Sciences El Camino Real

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 24 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

• JIF PAK MANUFACTURING • PELICAN REPLACEMENT WINDOWS • MCCAIN PRODUCTS • APERIO • ECOWATER SAN DIEGO • PREDATOR MOTORSPORTS -- LOOKING NORTHEAST -- • GLACIER WATER SERVICES • DDH ENTERPRISES • APPLIED MEMBRANES • LAVA PROPANE • VISTA INDUSTRIAL PRODUCTS • SOLATUBE HOME DAYLIGHT • HEAVILAND LANDSCAPE MGMT • OCHS OIL • GOURMET CULINARY • AQUA LUNG AMERICA • SITEONE LANDSCAPE SUPPLY • AZTEC BREWING COMPANY • GREENLEE TEXTRON • WATKINS WELLNESS • TURF STAR • CABO INTERNATIONAL VISTA • SOLARCITY • BOOTHCRAFTERS • FINISH MASTER • DR. BRONNER’S MAGIC SOAP • NAI SAN MARCOS • VISTA’S ICEBOX • STONE BREWING DISTRIBUTION Melrose Dr • GATORZ • PRANA • HOUSE OF CROSSFIT • PALOMAR • BANK OF SOUTHERN REPROGRAPHICS CALIF • NEVELL GROUP Melros e Dr • VERISK 3E • ACCESS MEDICAL INC • STAPLES • AETHERCOMM • SYSTEM PAVERS • STARBUCKS • PALOMAR TECHNOLOGIES Melrose Dr • BANK OF AMERICA • GUNTHER GUNS • NORDSON ASYMTEK Bressi Ranch Pacific Ridge Carlsbad • FERGUSON Elementary School Police Dept • LA COSTA LIMO Carlsbad • OPTUM RX Palomar Airport Rd GLANBIA NUTRITIONALS House of Air Fire Dept • • HOLIDAY INN • SALMEN INSURANCE PROSPOT INTERNATIONAL Arrowhead • • SAN DIEGUITO TROPHY • US WINDOW & DOOR SYNTERACT Insurance Alphatec Granite • StorQuest • KELLER WILLIAMS • DICKINSON CAMERON Spine Upper Deck Construction Self Storage • 1 SOURCE DATA CONSTRUCTION • FRONTIER LOAN GROUP • FIRST CITIZENS BANK Max Linear • BRESSI RANCH REALTY • INMOTION, INC. GenMark E San Diego l Cam Diagnostics ino Regional Ctr Real Tri-City Wellness Palomar Center Commons Aspirations San Diego Power Carlsbad Unified PreSchool Sign Company San Diego County Semiconductors School District

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2385 CAMINO VIDA ROBLE | Carlsbad, CA | 25 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials La Costa Meadows Elementary School -- LOOKING SOUTHEAST -- Dr rose Mel Carillo Alicante Elementary School Apartments t rte S l Fue E

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2385 CAMINO VIDA ROBLE | Carlsbad, CA | 26 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Location Maps Site Description Floor Plans Carlsbad Market Overview Value Add Component Property Photos Aerials

-- LOOKING SOUTHWEST -- South Ponto State Beach Pacific Ocean Poinsettia Village South Carlsbad State Shopping Center Beach Campground Batiquitos Lagoon

Park Hyatt Aviara Resort, Harbor Pointe Golf Club & Spa Aviar Four Seasons a Pkwy Residence Club at Aviara North Coast Rudvalis Calvary Chapel Orchids

Aviara Oaks Middle School Daybreak Community Poinsettia Ln Church Windsor at Aviara Aviara Community Park Chelsea Fashionphile Investment d Corp assia R Poinsettia C Plaza

Tradition Buffini & Co Versum Apartments Machinetek Natel Engineering Corp Inc. Puracyp Cassia Heights Tradition Custom E Apartments LocationSmart l C Markng a Arc Zone m Association RA Medical Target One CJ Products Qualigen i n Mgmt Grp MA Tile & Stone Technology o ULI Dermesse R Diagnostic Solution Trans World e Airgas Speedminton Real Estate Media a Scrooscoop Kart Racing Consulting Network GTR Enterprises l Fastener Co Techonology San Diego Teledyne Premier Training Oceanscience One Stop Toner EEDAR & Inkjet Electro Surface Amigo Custom The Fields Screen Prints Salter Technologies Mafioso Labs Designer Form Burgeon Clothing Protein Factor Beer Co. Strata Skin Custopharm Peek Sciences Spectrum Packaging Vineagogo Assembly North Coast Bitchin’ Church Sauce Luxtera Chuao L&L Printers Hulse Firewire Surf Orthodontics Nucci’s Produce Icetown Carlsbad Respironics Polara Golf Darton International Carlsbad Crossfit San Diego Hat Catalina Finishing Touch Restaurant Grp Millwork

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 27 2385 AREA OVERVIEW CAMINO VIDA ROBLE CARLSBAD, CA 92011

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 28 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Carlsbad Overview San Diego County Overview Demographics

-- CARLSBAD -- Known as “The Village by the Sea,” the city of Carlsbad offers the charm of a European town with the conveniences of a large city. Carlsbad’s perfectly mild climate, combined with its location along the scenic North San Diego County coast, make it an optimal place to live and work. Carlsbad has become one of San Diego’s most thriving business communities with a robust industrial, research & development, office and retail market. Many new residential and commercial developments are underway to help support the major housing demand and the overwhelming demand from companies looking to move to or expand in the area. Carlsbad has a thriving action sports industry with over half of the action sports jobs in San Diego County currently located in Carlsbad. In addition, the city is home to innovative life science and high tech companies which include ViaSat (city’s largest employer), Thermo Fisher Scientific, TaylorMade, Ionis Pharmaceuticals and Genoptix. Areas like the Carlsbad Research Center, Carlsbad Oaks Business Park and Carlsbad Raceway Business Park continue to be areas targeted by companies looking to move to the area.

263 SUNNY DAYS PER YEAR

62 AVERAGE TEMPERATURE

11.85” AVERAGE YEARLY RAINFALL

TOP 10 EMPLOYERS - CARLSBAD Company/Organization Name ViaSat, Inc. Thermo Fisher Scientific LEGOLAND California Carlsbad Unified School District Omni La Costa Resort & Spa TaylorMade- SGN Nutrition Gemological Institute of America City of Carlsbad OptumRX Source: Carlsbad Chamber of Commerce

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 29 EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW

Carlsbad Overview San Diego County Overview Demographics

-- SAN DIEGO COUNTY --

With breakthrough technology companies and research organizations, the largest military concentration in the world and a San Diego has a strong military presence with 16 naval and military installations of the U.S. Navy, U.S. Marine Corps, and the U.S. strong tourism industry, the San Diego region has one of the most diverse, dynamic economies in the country. Coast Guard. It is the headquarters of the U.S. Navy’s Eleventh Naval District and is the Navy’s principal location for West Coast and Pacific Ocean operations. Naval Base San Diego, California is principal home to the Pacific Fleet (although the headquarters San Diego County is the second-most populous county in California and the fifth-most populous in the . Situated in is located in Pearl Harbor). NAS North Island is located on the north side of Coronado, and is home to Headquarters for Naval Southern California, the San Diego area is known for its mediterranean climate, ethnic diversity, sprawling metropolis, and as a Air Forces and Naval Air Force Pacific, the bulk of the Pacific Fleet’s helicopter squadrons, and part of the West Coast aircraft major hub for the country’s military industry. The culture of San Diego is influenced heavily by American and Mexican cultures carrier fleet. The Naval Special Warfare Center is the primary training center for SEALs, and is also located on Coronado. The due to its position as a border town, its large Hispanic population, and its history as part of Spanish America and Mexico. area contains five major naval bases and the U.S. Marines base Camp Pendleton. Marine Corps Base Camp Pendleton is the major West Coast base of the United States Marine Corps and serves as its prime amphibious training base. It is located on the The county’s largest continuous high-income urban area is a triangle from a first point on the northern edge of Carlsbad, a Southern California coast, bordered by Oceanside to the south, San Clemente to the north, and Fallbrook to the east. second point southeast of Escondido, and a third point on the southern edge of La Jolla. Inland North San Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job development and new industries.

Tourists are drawn to the region for everything from shopping to surfing as well as its mild climate. The area features many historical attractions, a thriving musical and theatrical scene, numerous notable special events, professional sports events, a Forbes rated San Diego varied cuisine, and a reputation as one of America’s premier centers of craft brewing, with over 100 craft/micro/nano breweries throughout the county that have been sweeping award ceremonies at national and international contests. one of the “Coolest Cities”in 2014.

The San Diego visitor industry is the third largest industry in the county, and plays a huge role in the region’s economy, generating more than $704.6 million annually in state and local taxes and employing over 180,000 San Diegans - 13% of the jobs in the county. Education in San Diego is as innovative as many of its industries. The region has established public charter schools that have Approximately 34.3 million tourists visit San Diego every year, spending nearly $9.9 billion annually at San Diego businesses and influenced primary and secondary education across the country. In addition,ith w its more than 80 universities – including the largest produce $246 million in transient occupancy tax revenues. engineering school in the state – and world-class research institutions, San Diego is well-positioned to compete globally in attracting some of the most talented engineers, scientists and technology professionals in the world. The quality of life in the region, combined with strong The region is host to the second largest cruise ship industry in California which generates an estimated $2 million annually from technology-based industries, means only the best and brightest work and live here. Add to that a robust service sector with professionals purchases of food, fuel, supplies, and maintenance services. In 2008 the Port of San Diego hosted 252 ship calls and more than in finance, marketing, sales, facilities management and other administrative positions, San Diego is a thriving, diverse economy. 800,000 passengers.

2385 CAMINO VIDA ROBLE | Carlsbad, CA | 30 SUMMARY PROFILE EXECUTIVE SUMMARY PROPERTY INFORMATION AREA OVERVIEW 2000-2010 Census, 2017 Estimates with 2022 Projections Calculated using Weighted Block Centroid from Block Groups Carlsbad Overview San Diego County Overview Demographics

Lat/Lon: 33.1332/-117.2401 -- DEMOGRAPHICS-- RS1 3172 Lionshead Ave 1 mi radius 3 mi radius 5 mi radius Carlsbad, CA 92010 1 Mile 3 Miles 5 Miles

2017 Estimated Population 4,919 85,757 254,286 254,286 POPULATION - 5 MILES 2022 Projected Population 5,137 89,729 265,811 EXCELLENT DEMOGRAPHICS N O

I 2010 Census Population 4,677 77,163 229,942 Nearly 255,000 people live within a five mile T

A 2000 Census Population 1,885 57,764 178,616 radius of the subject property. L U

P Projected Annual Growth 2017 to 2022 0.9% 0.9% 0.9% O P POPULATION Historical Annual Growth 2000 to 2017 9.5% 2.9% 2.5%

2017 Median Age 37.9 40.1 37.9 90,000 HOUSEHOLDS - 5 MILES 2017 Estimated Households 1,773 32,544 89,993 S

D 2022 Projected Households 1,856 34,147 94,352 DENSE RESIDENTIAL IN-FILL LOCATION L

O 2010 Census Households 1,700 29,613 82,256 There are almost 90,000 households within five H

E miles of the subject property.

S 2000 Census Households 772 23,318 65,059 U

O Projected Annual Growth 2017 to 2022 0.9% 1.0% 1.0% H HOUSEHOLDS Historical Annual Growth 2000 to 2017 7.6% 2.3% 2.3% AVG HH INCOME - 5 MILES 2017 Estimated White 73.3% 70.3% 69.0% $111,701 2017 Estimated Black or African American 2.8% 2.9% 2.8% HIGH AVG HH INCOME D Y N T I A 2017 Estimated Asian or Pacific Islander 13.3% 9.5% 9.4% At 25.1% of its population, Carlsbad is ranked

C I E

N #1 for the region with the largest proportion of C 2017 Estimated American Indian or Native Alaskan 0.3% 0.5% 0.6% H A

T median earnings of $100,000 or more. R

E 2017 Estimated Other Races 10.3% 16.9% 18.1% RACE & ETHNICITYRACE 2017 Estimated Hispanic 16.7% 26.1% 28.7%

E 2017 Estimated Average Household Income $133,145 $109,990 $111,701 96.40% HIGH SCHOOL GRADUATE M

O 2017 Estimated Median Household Income $105,452 $85,259 $87,241 17.8% GRADUATE DEGREE C N INCOME I 2017 Estimated Per Capita Income $48,001 $41,773 $39,606 36.1% 4-YEAR COLLEGE 2-YEAR COLLEGE 2017 Estimated Elementary (Grade Level 0 to 8) 2.1% 5.7% 6.4% 31.6% 2017 Estimated Some High School (Grade Level 9 to 11) 1.4% 3.7% 4.7% STRONG WORK FORCE N ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O

I 2017 Estimated High School Graduate 10.9% 16.0% 16.4% Carlsbad has a well-educated work force, with 5 T 2 A 54% of its high school graduates achieving at

E 2017 Estimated Some College 23.4% 20.8% 19.8% C G

U least a Bachelor’s Degree. A

D 2017 Estimated Associates Degree Only 8.2% 11.5% 11.6% ( EDUCATION E 2017 Estimated Bachelors Degree Only 36.1% 27.1% 26.1% 2017 Estimated Graduate Degree 17.8% 15.2% 15.0% HOME TO CORPORATE HEADQUARTERS

S 2017 Estimated Total Businesses 1,112 5,525 11,163 Carlsbad is home to companies ViaSat (city’s S

E 2017 Estimated Total Employees 18,964 73,274 130,054 largest employer), Callaway, Thermo Fisher N I

S 2017 Estimated Employee Population per Business 17.1 13.3 11.7 Scientific, TaylorMade, Ionis Pharmaceuticals U BUSINESS

B and Genoptix. 2017 Estimated Residential Population per Business 4.4 15.5 22.8

©2017, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography 2385 CAMINO VIDA ROBLE | Carlsbad, CA | 31 EXCLUSIVELY LISTED BY:

CAPITAL MARKETS CONTACTS LOCAL MARKET EXPERTS RYAN BARR RYAN BENNETT JEFF ABRAMSON GREG GERSHMAN Principal Principal Principal Principal 760.448.2446 760.448.2449 760.929.7835 760.929.7861 [email protected] [email protected] [email protected] [email protected] CA Lic#01338994 CA Lic#01826517 CA Lic#00956805 CA Lic#01909272

BARR&BENNETT NETLEASEDINVESTMENTS A Lee & Associates Team

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

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