Perris Plaza Perris Alan Krueger Alan Vice President Senior Properties Investment Lic

MORENO VALLEY, CA 92553 MORENO VALLEY, 14070–14090 PERRIS BLVD Perris Plaza Perris Alan Krueger Alan Vice President Senior Properties Investment Lic. 00880814

EXCLUSIVELY MARKETED BY: MARKETED EXCLUSIVELY Matt Burnett Matt Vice President First Properties Investment Lic. 01384566 2098 +1 909 418 [email protected]

Capital Markets | Investment Properties CONTENTS

INVESTMENT SUMMARY... 3 Synopsis Investment Highlights

FINANCIALS...... 6 Cash Flow Projections Rent Roll Tenant Profiles

PROPERTY OVERVIEW...... 9 Property Description Parcel Map Site Plan

AREA OVERVIEW...... 12 City Overview County Overview Demographics

CBRE, Inc. | 4141 Inland Empire Blvd. | Suite 100 | Ontario, CA 91764 | www.cbre.com/invontarioretail

© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Macintosh HD:Users:jmcvay:Box Sync:Southern California:GLAOC Marketing:Property Marketing:Ontario:Moreno Valley:14070 Perris_Perris Plaza:14070 Perris_OM_v07JM.indd 14070–14090 PERRIS BLVD INVESTMENT SUMMARY | 3

Investment Summary Synopsis

CBRE Investment Properties is excited to offer for sale Perris Plaza, a 13,178 Offering Price $4,752,810 square foot retail center located in Moreno Valley, CA. Perris Plaza is NOI – In Place $372,491 100% occupied, featuring a dynamic tenant mix including a freestanding Occupancy 100% Warehouse Shoe Sale and six-tenant retail building. Displaying first-class CAP Rate – In Place 7.84% construction and design, Perris Plaza was recently built in 2005 and has no

Total GLA 13,178 deferred maintenance. Additionally, the property is ideally located at the busy intersection of Alessandro and Perris Boulevards, two main thoroughfares Total Land Acres 1.57 and a key intersection in the trade area. Ownership Fee Simple

Strong location at signalized intersection – across from three major drug stores. 14070–14090 PERRIS BLVD INVESTMENT SUMMARY | 4

Investment Highlights

STRONG INVESTMENT FUNDAMENTALS • 100% leased to a diverse tenant mix, including food, clothing and general retail uses. • Net lease structures allow recapture of property expenses. • Recent construction (2005) – no deferred maintenance. • Owner can increase after tax cash-flow by depreciating the improvement – not a ground lease.

PRIME LOCATION IN ESTABLISHED TRADE AREA • Perris and Alessandro Blvd. are major thoroughfares - more than 50,000 cars per day at intersection. • Located at signalized intersection across from three major drug stores. • Neighboring retailers include Walgreens, CVS, Rite Aid and 99 Cent Only. • Strong Demographics, with over 214,692 people living within 5 miles.

LOW MANAGEMENT HASSLE • Six-tenant building on net leases provides easy ownership oversight. • Newer construction and outstanding build quality leave no deferred maintenance obligations for new ownership. • Net leases allow all operating expensed to be passed to Tenants, including management fees. • First rate architectural design and detail.

IDEAL 1031 REPLACEMENT PROPERTY • Available for quick close to accommodate 1031 Exchange timelines. • Offered free and clear of existing debt.

High quality construction with no deferred maintenance. 14070–14090 PERRIS BLVD INVESTMENT SUMMARY | 5

OVER 155,000 PEOPLE LIVING WITHIN 5 MILES.

PERRIS BLVD

PERRIS PLAZA PROPOSED CONDO DEVELOPMENT

ALESSANDRO BLVD 14070–14090 PERRIS BLVD FINANCIALS | 6

Property Cash Flow

SUMMARY PRICING SUMMARY PROPERTY SPECIFICATIONS Purchase Price $4,752,810 Year Built 2005 Cap Rate 7.84% Total Rentable Area (SF) 13,178 Leveraged Return 10.63% Occupancy 100%

POTENTIAL LOAN SCENARIO Loan To Value 60% *No assumable financing in place - PROPOSED CONDO buyer may pay all cash or secure new Loan Amount $2,851,686 DEVELOPMENT loan. Call broker for details. Down Payment $1,901,124 Rate 4.35%

Amortization/Term 30/10 PERRIS BLVD

OPERATING CASH FLOW YEAR 1 Fiscal Year Commences July 1 REVENUE Base Rental Revenue 376,909 Expense Reimbursement Revenue 82,589 Adjusted Gross Revenue 459,498

OPERATING EXPENSES PSF CAM 1.10 14,504 Insurance 0.32 4,250 Management (3.00%) 0.84 11,130 Property Taxes[1] 3.79 49,919 Water 0.55 7,204 Total Operating Expenses 6.60 (87,007)

Net Operating Income $372,491 All Cash Return 7.84% ALESSANDRO BLVD FINANCING (Proposed) Less Loan Payment (170,352) Leveraged Cash Flow $202,139 Leveraged Cash on Cash Return 10.63%

[1] Taxes reassessed @ 1.06212% 14070–14090 PERRIS BLVD FINANCIALS | 7

VALUATION ANALYSIS -‐ Perris Plaza Ma� Burne� 14070 Perris Blvd. -‐ Moreno Valley, CA First Vice President CBRE Investment Proper�es Rent Roll T: 909.418.2098

Lease Term Base Rent Square Recovery Rental Increases / Tenant Suite Feet Pro-rata Begin End Begin Monthly PSF Annually PSF Type Options Building 14070

Warehouse 101 6,570 49.86% Oct-‐2009 Sep-‐2019 Current $15,876.00 $2.42 $190,512.00 $29.00 NNN + 10% Tenant has two 5-‐year Apr-‐17 $16,425.00 $2.50 $197,100.00 $30.00 Mgmt on options. Options CAM Oct-‐2019 Sep-‐2024 Future $19,908.00 $3.03 $238,896.00 $36.36 Oct-‐2024 Sep-‐2029 Future $22,302.00 $3.39 $267,624.00 $40.73

Building 14090 [1] Smoke Shop 101 900 6.83% Nov-‐2009 MTM Current $2,340.00 $2.60 $28,080.00 $31.20 NNN + 5% Tenant has 1 option, but Options Mgmt. Fee landlord had kept MTM to Nov-‐2014 Oct-‐2019 Future $2,574.00 $2.86 $30,888.00 $34.32 defer to new owner.

Clothing 102 1,300 9.86% Oct-‐2015 Sep-‐2020 Current $2,600.00 $2.00 $31,200.00 $24.00 NNN + Mgmt. New 5 year lease. Rent Store Oct-‐2016 $2,678.00 $2.06 $32,136.00 $24.72 Fee increases 2.00% Oct-‐2017 $2,758.34 $2.12 $33,100.08 $25.46 annually. Oct-‐2018 $2,841.09 $2.19 $34,093.08 $26.23 Oct-‐2019 $2,926.32 $2.25 $35,115.87 $27.01

Recording 103 1,300 9.86% Oct-‐2015 Sep-‐2020 Current $2,600.00 $2.00 $31,200.00 $24.00 NNN + Mgmt. New 5 year lease. Rent Studio Oct-‐2016 $2,678.00 $2.06 $32,136.00 $24.72 Fee increases 2.00% Oct-‐2017 $2,758.34 $2.12 $33,100.08 $25.46 annually. Oct-‐2018 $2,841.09 $2.19 $34,093.08 $26.23 Oct-‐2019 $2,926.32 $2.25 $35,115.87 $27.01

Hair Salon 104 900 6.83% Feb-‐2010 MTM Current $1,800.00 $2.00 $21,600.00 $24.00 Gross Tenant has no options.

Tortas 105 2,208 16.76% Sep-‐2008 Aug-‐2018 Current $6,042.00 $2.74 $72,504.00 $32.84 NNN + Mgmt. Tenant has one 5-‐year Mexican Sep-‐2015 $6,223.26 $2.82 $74,679.12 $33.82 and 15% option to renew. Rest. Sep-‐2016 $6,409.96 $2.90 $76,919.49 $34.84 Admin Fee on Options CAM Sep-‐2018 Aug-‐2023 Future $6,602.26 $2.99 $79,227.08 $35.88

Vacant 0 0.00% Occupied 13,178 100.00% Current In Place $31,258.00 $2.37 $375,096.00 $28.46 TOTALS/AVG: 13,178 100.00% Year 1 Commencing July 1 $31,409.05 $2.38 $376,908.60 $28.60

[1] Tenant has one option, but landlord has elected to keep month to month to allow for space flexibility. 14070–14090 PERRIS BLVD FINANCIALS | 8

Tenant Profile Warehouse Shoe Sale, now known as WSS, is a premier footwear retailer in COMPANY PROFILE

the U.S. operating neighborhood based stores. WSS provides a variety of Private Company: WSS brands, great values and a large selection of athletic, dress, fashion, and Website: www.shopwss.com casual footwear for the entire family. With a large store format, WSS showcases thousands of styles from major brands. Founded in Southern California in 1984 Headquarters: Los Angeles, CA by entrepreneur Eric Alon, all 62 WSS stores feature a unique operating format No. of Locations: ±60 that displays all styles and sizes, allowing customers to easily browse in a hassle free environment while also offering a friendly and attentive sales staff that provide a high level of customer service. The success of this business model has allowed WSS to continue its rapid expansion into new markets. 14070–14090 PERRIS BLVD PROPERTY OVERVIEW | 9

Property Description

LOCATION DESCRIPTION The property is located on Perris Blvd., just off of Alessandro Blvd. in the City of Moreno Valley, Riverside County, California. Close proximity to the 60 Hwy and I-215.

BUILDING AREA Approximately 13,178 SF of rentable space.

YEAR BUILT 2005

PARCEL This property consists of two single parcels containing approximately 1.57 Acres or 68,389 square feet of land area.

Address Parcel Acres 14070-14090 Perris Blvd. 484-020-026 1.57 Moreno Valley, Ca 92553

ZONING The parcel is zoned C1 (Commercial)

PARKING The property has approximately 70 dedicated parking spaces

ACCESS There is one direct point of access to the property and one reciprocal entry through an adjacent property.

TRAFFIC COUNTS Perris Blvd...... 27,300 (2006 ADT) Highland Springs Ave. at I-10...... 30,300 cpd (2004) 14070–14090 PERRIS BLVD PROPERTY OVERVIEW | 10

Site Plan

PERRIS BLVD

Cigarette Plus WSS 6,570 SF Clothing Store

Recording Studio

Beauty Salon

Tortas Sinaloa

Las Originales ALESSANDRO BLVD 2,014 SF 14070–14090 PERRIS BLVD LOCATION | 11

Over 214,692 people within 5 miles.

PERRIS PLAZA 14070–14090 PERRIS BLVD AREA OVERVIEW | 12

CITY OF MORENO VALLEY DEMOGRAPHICS

Moreno Valley is a city located in Riverside County, California and 1 MILE 3 MILES 5 MILES is part of the San Bernardino – Riverside Metropolitan Area. The 2014 Estimated Population 26,382 156,867 214,692 city is 19 miles south of downtown San Bernardino, while Riverside 2019 Projected Population 27,419 166,191 227,702 lies directly to the west. Moreno Valley was founded in 1984 and 2010 Census Population 25,541 149,043 203,785 exploded in population by 1990 to become the second largest city in Riverside County. 2000 Census Population 22,519 109,902 148,516

Per the California Department of Finance, Moreno Valley boasts 198,129 residents with POPULATION Growth 2010-2014 3.29% 5.25% 5.35% a projected population growth to 216,450 by 2018. Moreno Valley is also one of the Growth 2014-2019 3.93% 5.94% 6.06% most populous areas of the Inland Empire, a region comprised of Riverside and San Bernardino Counties with a population of more than 4,000,000 people. The Inland 2014 Estimated Households 6,470 40,729 57,327 Empire market saw a population surge in the late 1990’s and early 2000’s, following the 2019 Projected Households 6,765 43,089 60,640 demand for affordable family housing, and is still growing today. 2010 Census Households 6,184 38,860 54,830 2000 Census Households 5,691 29,867 41,313

5-MILE BUSINESS SUMMARY HOUSEHOLDS Growth 2010-2014 4.63% 4.81% 4.55% Growth 2014-2019 4.55% 5.79% 5.78%

Retail Trade Services 29.53% 2014 Estimated Households 6,470 40,729 57,327 37.48% - Income Less than $15,000 850 5,268 6,767 - Income $15,000 to $24,999 839 4,680 5,969

Public - Income $25,000 to $34,999 967 4,656 6,020 Administra�on Finance, Insurance & - Income $35,000 to $49,999 1,090 6,541 8,715 Construc�on 12.13% 3.01% Real Estate - Income $50,000 to $74,999 1,319 8,404 11,500 5.17% - Income $75,000 to $99,999 712 5,345 8,055 INCOME Manufacturing - Income $100,000 to $149,999 574 4,408 7,567 Wholesale Trade Transporta�on, 3.84% - Income $150,000 to $199,999 87 948 1,794 Agricultural, Forestry & 5.63% Communica�on Fishing - Income $200,000 to $499,999 30 931 891 & U�li�es Non-‐classiﬁable 0.62% 2.23% 0.35% - Income $500,000 and over 1 20 49 2014 Est. Average Household Income $51,927 $58,047 $63,540 TOTAL EMPLOYEES: 47,093 2019 Prj. Average Household Income $53,279 $59,957 $65,696 Affiliated Business Disclosure & Confidentiality Agreement

AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offer or prospective offerer, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

EXCLUSIVELY MARKETED BY:

Matt Burnett Alan Krueger CBRE, Inc. First Vice President Senior Vice President 4141 Inland Empire Blvd. Investment Properties Investment Properties Suite 100 Lic. 01384566 Lic. 00880814 Ontario, CA 91764 +1 909 418 2098 www.cbre.com/invontarioretail [email protected]