OFFERING MEMORANDUM 2019 SANTA ANA DEMOGRAPHICS 1-Mile 2-Mile 3-Mile

TOTAL POPULATION TOTAL POPULATION TOTAL POPULATION 42,251 168,939 348,499

Total Daytime Population Total Daytime Population Total Daytime Population 44,384 167,724 344,908

Total Households Total Households Total Households 10,346 40,168 83,326

TENANTS ARE BOTH NATIONALLY RECOGNIZED BRANDS

BASKIN ROBBINS HAS OPERATED AT SUBJECT PROPERTY FOR OVER 40 YEARS

CENTRAL ORANGE COUNTY 2-TENANT NNN RETAIL INVESTMENT 123-201 WEST 17TH STREET, SANTA ANA, 92706 TABLE OF CONTENTS

INVESTMENT HIGHLIGHTS 3

RENT ROLL 4 SUBJECT PROPERTY INCOME & EXPENSE 5

SITE PLAN 6

AERIAL 7

ABOUT THE TENANTS 8

SANTA ANA OVERVIEW 9

ORANGE COUNTY OVERVIEW 10

DISCLAIMER 11

JONATHAN SELZNICK Senior Vice President - Principal EXCLUSIVELY LISTED BY [email protected] | 949-734-0243 CA License: 01323949 2 INVESTMENT HIGHLIGHTS

HIGHLIGHTS

Two-Tenant NNN Retail Investment with National Tenants OFFERING SUMMARY Baskin Robbins and CareMore

Baskin Robbins has successfully operated at the Subject PROPERTY INFORMATION Property since it was built in 1976; and previously operated in nearby location since 1955 (Currently working on Lease Extension) 123-201 West 17th Street Address: 122 West 18th Street Santa Ana, CA 92706 CareMore renewed lease in 2017 and waived termination clause in 2019 demonstrating strength of the Subject Location Gross Leasable Area: 3,880 Square Feet High Traffic Intersection with approximately 70,000 Cars per Day at the intersection of 17th Street and Main Street Parcel Size: 18,731 Square Feet Dense, Infill, Central Orange County Location with 1-Mile Total Main St/W 17th St: 70,000 CPD Population of 42,251 Traffic Counts (Costar): N /W 17th St: 66,000 CPD Significant 1-Mile Total Daytime Population of 44,384, within Parking Ratio: 7:1 (28 Stalls) immediate proximity to County of Orange and City of

Less than 1/2 Mile from I-5 Freeway On/Off-Ramps; Main FINANCIAL INFORMATION and 17th Streets are both major thoroughfares with access to I-5 Price: $1,950,000

NOI: $112,665 East of Management; NNN Leases Cap Rate: 5.78%

Price/SF: $503 5 Points of convenient Ingress/Egress from 17th Street, North Broadway, 18th Street and Main Street

Located within Designated Qualified Opportunity Zone

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 3 RENT ROLL

LEASE RENT/ RENT/ LEASE TENANT SUITE SF LEASE END INCREASES OPTIONS COMMENTS START SF MO TYPE

Annual CPI Baskin Robbins 201 1,125 2/13/76 $2.88 $3,238 NNN 1 (10-Year) 03/31/22* (4/1/20: $3,339.80) *Lease Extension in Progress

CareMore CAM Cap 3% Annual; Option Rent 123 2,755 10/1/12 10/31/22 $2.40 $6,612 - NNN 1 (3-Year) (Nifty After Fifty) 95% of FMV

TOTAL SQUARE FOOTAGE: 3,880 $9,850 Total Monthly Rent TOTAL AVAILABLE: 0 0% Vacancy $118,198 Total Annual Rent TOTAL OCCUPIED: 3,880 100% Occupancy

JOHN WAYNE AIRPORT COUNTY OF ORANGE/ PACIFIC OCEAN SANTA ANA CIVIC CENTER

NORTH BROADWAY

SUBJECT PROPERTY

MAIN STREET

WEST 17TH STREET

70,000 CPD 66,000 CPD

S

E

W N

WEST 18TH STREET PUBLIC ALLEYWAY

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 4 INCOME & EXPENSE

INCOME & EXPENSE

ANNUALIZED OPERATING DATA Current Scheduled Gross Income (SGI): $118,198 Expense Reimbursement: $34,870 Total Operating Income: $153,068 Gross Operating Income: $153,068 Total Operating Expenses: ($40,402) Net Operating Income (NOI): $112,665 5.78% Cap Rate

OPERATING EXPENSES Amount $/SF Taxes (1.26%): $24,570 $6.33 Insurance: $1,700 $0.44 CAM: $8,600 $2.22 Unrecovered CAM (CareMore): $175 $0.05 Management (3.5% of TOI): $5,357 $1.38 Total Expenses: $40,402 $10.41 Per Year $0.87 Per Month

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 5 SITE PLAN

W

S N

N W

E WEST 18TH STREET E S

5 360,000 CPD

SUBJECT PROPERTY

MAIN STREET 70,000 CPD

WEST 17TH STREET PUBLIC ALLEYWAY

WEST 18TH STREET

WEST 17TH STREET

NORTH BROADWAY 66,000 CPD

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 6 AERIAL

DISNEYLAND ANGEL STADIUM HONDA CENTER MAIN PLACE MALL OF ANAHEIM • Currently over $1.1M Sq Ft Retail Shopping Mall • Completed $50M Renovation in 2015 • Additional $300M Mixed-Use Redevelopment Announced March, 360,000 CPD 5 2019 • Including Additional Retail/ Entertainment Uses, and 700 new Residential Units

5

SUBJECT PROPERTY

MAIN STREET

WEST 18TH STREET

PUBLIC ALLEYWAY

NORTH BROADWAY

66,000 CPD WEST 17TH STREET 70,000 CPD

N

W

E S

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 7 ABOUT THE TENANTS

BASKIN-ROBBINS is one of the world’s largest chain of ice cream specialty CAREMORE HEALTH SYSTEM, a subsidiary of Anthem Inc. (NYSE: AMTM- shops, with more than 7,500 retail locations in more than 50 countries 2018 Revenue was over $92B), is an integrated health plan and care around the world. Headquartered in Canton, Mass., Baskin-Robbins is part delivery system for Medicare and Medicaid patients. CareMore was founded of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies, in 1993 by Sheldon Zinberg as a small regional medical but was founded in 1953 by Burt Baskin and Irv Robbins in Glendale, group. Today, CareMore serves 100,000 patients across 8 states with annual CA. The company is known for its “31 flavors” slogan, with the idea that revenues of $1.2B. a customer could have a different flavor every day of any month, and has been a household name synonymous with Ice Cream for decades. Encore Wellness™ by Nifty after Fifty® offers health plans, medical groups, Accountable Care Organizations (ACOs) and hospital partners true • Strong Franchisee with Over 25 Years of Operating at Subject population health care management at 29 wellness centers in four states Property across the U.S. catered to mature adults from 50-95 years old. Founded in • Baskin Robbins has Operated in Subject Property’s Trade Area 2006, Encore Wellness™ by Nifty after Fifty® partners with senior health since 1955 insurance companies like CareMore Health Plan, Monarch HealthCare, • Currently Working on Early Lease Extension and TexanPlus in providing its members with the benefit of Nifty’s unique programs of good health to more seniors. This year, 15,000 members will • World’s Largest Chain of Ice Cream Specialty Shops make over one million fitness visits to its centers. • 7,500 Locations in More than 50 Countries, Founded in 1953 • Operated at Subject Property since 2012 • Has Already Extended the Lease Once (2017) • Waived Termination Clause (2019) Demonstrating Commitment to the Subject Location • Parent Company Anthem is the Largest For-Profit, Managed Health-Care Company in the Blue Cross Blue Shield Association • CareMore Itself is a $1.2B Division of Anthem (a $92B Company)

www.caremore.com www.encore-wellness.com www.baskinrobbins.com www.niftyafterfifty.com

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 8 LOCATION OVERVIEW

SANTA ANA is located in central Orange County about 30 miles southeast of shopping center to achieve $1B in annual sales volume (currently at over $1.5B . Santa Ana’s central location and easy access to freeways makes annually). is part of the District, a dense it a great spot from which to access Orange County attractions including mix of residential, office, hotel, and retail developments also including the Disneyland, Newport Beach, Laguna Beach, Knott’s Berry Farm, the Orange Segerstrom Center for the Arts and Theater Company. County Performing Arts Center, Los Angeles Angels of Anaheim Stadium, and South Coast Metro is also adjacent to the Santa Ana/John Wayne International the Honda Center in Anaheim. Santa Ana is the County Seat, the second largest Airport. city in Orange County, and eleventh largest in California. The City is also known as the financial and governmental center of Orange County. Santa Ana also boasts a historic downtown area. The 36-block section of homes and commercial buildings was added to the National Register of Historic Places Santa Ana is the fourth-most densely populated city nationally (among cities in 1984. is home to approximately 100 buildings that were of over 300,000 residents), trailing only New York City, San Francisco, and constructed between the 1870’s and the 1940’s. The City has been building on Boston). In 2011 Forbes ranked Santa Ana the fourth-safest city of over 250,000 its historic downtown element to create a bustling artist village. Starting in the residents in the United States. early 1990’s, the city began to embrace the arts as a way to revive downtown. Another addition to the downtown area was the Long-awaited 10-story, $123 Major retail in Santa Ana includes legendary South Coast Plaza, the largest million Ronald Reagan Federal Building and U.S. Courthouse that has become shopping center on the West Coast of the United States, and the first retail Santa Ana’s latest “jewel.”

MAINPLACE MALL HISTORIC DOWNTOWN SANTA ANA US COURTHOUSE

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 9 LOCATION OVERVIEW

ORANGE COUNTY is the third most populous county in the State of California Orange County is home to some of the world’s most popular tourist attractions and the sixth most populous county in the United States; Located in the heart such as The Disneyland Resort and California Adventure, Knott’s Berry Farm, of Southern California between Los Angeles to the north, San Diego to the Mission San Juan Capistrano and miles of popular beaches. South Coast Plaza south, and Riverside and San Bernardino counties to the east. Orange County offers world-renowned shopping that generates over $1.5 billion which is the is comprised of 34 cities within its 798 square miles and a population of over 3 highest in the United States. Over 38 million tourists visit Orange County million people. Orange County is one of California’s leading economic markets. annually, spending approximately $7.3 billion and supporting nearly 83,000 local jobs. Orange County is an influential metropolitan area with world-class The diverse economy is a key component of Orange County’s stability and educational, cultural, scientific and business institutions making it one of the continual performance. Orange County’s economy would rank it 32nd among most desirable places to live, work and enjoy the quintessential American the rest of the world’s nations if it were its own country. Several Fortune 500 Dream. Offering the best golf courses, miles of hiking, biking and equestrian companies including Ingram Micro (#69) and First American Corp (#312) as trails, it’s Golden Coast, theme parks and cultural delights, Orange well as many regional headquarters for international businesses are all located County will continue to attract residents and visitors. in Orange County. The average household income of $95,016 in Orange County is significantly higher than that of the nation average of $69,303 making it one of the wealthiest areas in the United States. Top employers in Orange County include; Walt Disney Company, University of Irvine, County of Orange, St. Joseph Health System, and Boeing Co.

SEGERSTROM CENTER OF THE ARTS SOUTH COAST PLAZA DISNEYLAND

123-201 WEST 17TH STREET, SANTA ANA, CALIFORNIA 92706 BACK TO TABLE OF CONTENTS 10 DISCLAIMER

This is a confidential marketing profile (the “Profile”) intended solely The Owner expressly reserves the right, at its sole discretion, to reject for your limited use and benefit in determining whether you desire to any or all expressions of interest or offers on the subject Property, and/ express further interest in purchasing the “Property”, located in Santa or to terminate discussions with any entity at any time with or without Ana, CA. notice which may arise as a result of review of this Profile. The Owner shall have no legal commitment or obligation to any entity reviewing This Profile has been prepared by Lee & Associates on behalf of the this Profile or making an offer on the Property unless and until written owner of the Property (the “Owner”) and has been reviewed by rep- agreement(s) for the Property have been fully executed, delivered and resentatives of the Owner. It contains select information pertaining to approved by the Owner and any conditions to the Owner’s obligations the Property and does not purport to be an all inclusive representation therein have been satisfied or waived. of the state of affairs of the Property, or to contain all the information, which prospective investors may require. All financial projections and By receipt of this Profile, you agree that this Profile and its contents are information are provided for general reference purposes only and are of a confidential nature, that you will hold and treat it in the strictest based on assumptions relating to the general economy, market condi- confidence and that you will not disclose this Profile or any of its con- tions, competition and other factors beyond the control of the Owner tents to any other entity without prior written authorization of the Own- and Lee & Associates. The information contained herein was obtained er or Lee & Associates. You also agree that you will not use this Profile from third parties, and it has not been independently verified by Lee or any of its contents in any manner detrimental to the interest of the & Associates. Prospective investors should have the experts of their Owner or Lee & Associates. choice inspect the Property and verify all information. Lee & Associ- ates is not qualified to act as or select experts with respect to legal, Lee & Associates reserves the right to submit the Property to additional tax, environmental, building construction, soils drainage or other such clients on terms that may or may not be identical to the terms con- matters. Therefore, all projections, assumptions and other information tained herein. By receipt of this Profile, you acknowledge that compet- provided and made herein are subject to material variation. Neither the ing interests may develop in connection with offers on the Property, Owner nor Lee & Associates, nor any of their respective directors, offi- and waive any conflict of interest that might arise as a result thereof. cers, affiliates or representatives make any representation or warranty, In such case, Lee & Associates expressly disclaims any obligation to expressed or implied, as to the accuracy of completeness of this Profile advance the interest of any client at the expense of any other client who or any of its contents, and no legal commitment or obligation shall arise may receive this Profile. Dealings with each client shall remain strictly by reason of your receipt of this Profile or use of its contents. confidential and in no case will Lee & Associates disclose the terms of any actual or potential offer to any competing client.

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