Shopping Center Visalia, California

SHOPPING RANCHO VIEJO CENTER A GROCERY-ANCHORED RETAIL CENTER LOCATED IN CENTRAL CALIFORNIA

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740. RANCHO VIEJO SHOPPING CENTER VISALIA, CALIFORNIA

` MAJOR TENANTS INCLUDE: TENANT SIZE (SF) LEASE EXP. SAVE MART SUPERMARKETS 47,145 September 2023 AMIGOS RESTAURANT 5,603 February 2019 SUPERCUTS 1,540 September 2018 STATE FARM INSURANCE 1,005 October 2020

PROPERTY SUMMARY 5203 West Walnut Avenue ADDRESS Visalia, California 93277 INVESTMENT OVERVIEW % LEASED 96.4%

SQUARE FEET 72,347 HFF has been exclusively retained by Ownership to offer qualified investors the exciting OFFERING PRICE $10,500,000 opportunity to acquire the fee simple interest in Rancho Viejo Shopping Center (the IN-PLACE NOI $784,657 ”Property” or “Center”), a 72,347 SF grocery anchored shopping center located in Visalia, LEVERAGED CASH ON California. The Property is 96% leased and anchored by Save Mart Supermarkets, who 12.2% CASH RETURN recently executed an early 5-year renewal. The Property is located in a trade area with REQUIRED EQUITY $3,675,000 over 68,000 residents within a 3-mile radius and average household incomes exceeding CAP RATE 7.4% $81,000. The Center offers a complementary mix of national and regional tenants SITE AREA ±7.05 Acres including Mountain Mike’s, Supercuts, Deli Delicious, and State Farm, amongst others. PARKING RATIO 5.34 / 1,000 SF In addition, the Property benefits from multiple market dominant pad tenants (NAP) YEAR BUILT 1998 including McDonald’ s (recently renovated), KFC, Jimmy John’s, Rita’s Italian Ice, and Starbucks Coffee. Debt Assumptions: 65.0% LTV; 4.50% Interest Rate; Interest Only Amortization

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INVESTMENT HIGHLIGHTS

GROCERY-ANCHORED SHOPPING CENTER IN CALIFORNIA’S CENTRAL VALLEY STRONG DEMOGRAPHICS Grocery-anchored by Save Mart Supermarkets ($4.5B Densely populated trade are with over 68,000 residents sales/213 stores), with a recently executed 5-year early located within a 3-mile radius of the Property and renewal, attracting a consistent, “daily needs” draw to average household incomes exceeding $81,000. the property.

SAVE MART SUPERMARKETS PERFORMANCE (YEAR ENDING JUNE-2017)

PROPERTY SF ANNUAL SALES SALES/SF ANNUAL + NNN RENT TOTAL RENT $/SF HEALTH RATIO

RANCHO VIEJO SHOPPING CENTER 47,145 $17,205,047 $364.94 $484,424 $10.28 2.82%

RANKING FOR THE RANKING FOR TOP 50 LARGEST U.S. AMERICA’S LARGEST GROCERY CHAINS PRIVATE COMPANIES (PROGRESSIVE #91 (FORBES 2016) #21 GROCER 2016)

RANKING FOR THE TOP 50 RANKING FOR TOP FASTEST GROWING RETAIL CHAINS GROCERY CHAINS (THE BALANCE 2013) #34 #5 (CHAIN STORE GUIDE 2010)

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INVESTMENT HIGHLIGHTS (CONTINUED)

MARKET DOMINANT PAD AND SHOP TENANTS (NAP) DRIVING TRAFFIC Starbucks Coffee, KFC, McDonald’s (recently remodeled), Jimmy John’s, Rita’s Italian Ice, and Chevron as NAP tenants are some of the most sought after retail occupants available. This pad and shop dynamic draws considerable traffic to the center thus driving sales and enhancing value throughout the Property.

QUINTESSENTIAL GROCERY ANCHORED NEIGHBORHOOD SHOPPING CENTER Rancho Viejo Shopping Center is located in the residential heart of Visalia adjacent to El Diamante High School (over 1,900 students) and the Visalia Fire Department. It is located at the intersection of Walnut Avenue (over 12,700 cars per day) and Akers Street (over 19,800 cars per day).

ATTRACTIVE IN-PLACE CASH FLOW WITH STRONG TENANT DEMAND The Property is over 96% leased, demonstrating strong tenant demand and offering investors attractive in-place cash flow.

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LOCATION MAP

RANCHO VIEJO SHOPPING CENTER

NEARBY AIRPORTS: FRESNO YOSEMITE INTERNATIONAL 47 Miles AIRPORT MEADOWS FIELD AIRPORT 68 Miles (BAKERSFIELD)

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LINWOOD ELEMENTARY SCHOOL

W WHITENDALE AVENUE LA JOYA MIDDLE SCHOOL

RANCHO VIEJO VISALIA COLLEGE OF SHOPPING CENTER TECHNICAL SEQUOIAS W WALNUT AVENUEEARLY COLLEGE AGRICULTURE DEPARTMENT EL DIAMANTE HIGH SCHOOL

19,800 VEHICLES PER DAY

12,744 VEHICLES PER DAY

S AKERS STREET

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INVESTMENT HIGHLIGHTS (CONTINUED)

INSTITUTIONALLY MANAGED ASSET The Property has been meticulously maintained by institutional ownership significantly reducing future capital costs.

UNENCUMBERED ASSET The Property is being delivered free and clear of existing financing, providing the opportunity to take advantage of the historically low interest rate environment and enhanced leveraged returns.

DEMOGRAPHICS

RANCHO VIEJO SHOPPING CENTER 3-MILE 5-MILE

2022 POPULATION PROJECTION 71,808 133,853

2017 POPULATION ESTIMATE 68,736 127,785

POPULATION % GROWTH (2017-2022) 4.5% 4.7%

2017 EST. AVERAGE HOUSEHOLD INCOME $81,795 $74,361

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INVESTMENT OVERVIEW

STE TENANT SF % NRA LEASE EXP. Shanghai Chinese 1A 1,500 2.1% Apr-22 Restaurant Tulare County 1B 1,549 2.1% Jan-19 Federal Credit 1C Supercuts 1,540 2.1% Sep-18

1D Vacant 1,200 1.7% n/a Cellular & Paging 1E 1,600 2.2% Oct-20 Communications 2A Healthy Japan 1,500 2.1% Jul-20

2B Vacant 1,435 1.9% n/a

2C Brain Balance Center 2,500 3.5% Oct-24 Mr. Nice Guys 2D 910 1.3% Dec-22 Smoke Shop 2E Nice Nails and Spa 960 1.3% Jul-19

2F State Farm Insurance 1,005 1.4% Oct-20

2G Deli Delicious 1,500 2.1% Apr-19

3A Mountain Mike's Pizza 2,400 3.3% Dec-20

3B Amigos Restaurant 5,603 7.8% Feb-19

MJR Save Mart Supermarkets 47,145 65.2% Sep-23

TOTAL AVAILABLE SF 2,635 3.6%

TOTAL OCCUPIED SF 69,712 96.4%

TOTAL OVERALL SF 72,347

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(NAP - Recently Remodeled) (NAP) SITE PLAN WALNUT AVE

Pad A NAP Pad C NAP Pad B DRIVE-THRU NAP (NAP) DRIVE-THRU (NAP)

3A ATWOOD 3B

2A AKERS ST 2B

2D (NAP) 2E 2F

1E 1D1C 1B 1A

NAP

Pad D1.1 Pad (NAP) D1.2 Pad

Pad D2 NAP

Pad D3 NAP

WAGNER AVE

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INVESTMENT SALES ADVISORS GLEB LVOVICH BRYAN LEY ERIC KATHREIN 949.798.4115 310.407.2120 415.510.6961 [email protected] [email protected] [email protected] CA RE Lic. #01496699 CA RE Lic. #01458927 CA RE Lic. #01896107

ASSOCIATE DEBT GUIDANCE MARKET & LEASING EXPERTS MARK DEGIORGIO PETER SMYSLOWSKI DOUGLAS CORDS BRYAN CIFRANIC 949.798.4138 415.276.6950 Commercial Retail Associates, Inc. Commercial Retail Associates, Inc. [email protected] [email protected] 559.650.1307 559.650.1316 CA RE Lic. #02026853 CA RE Lic. #01301231 [email protected] [email protected] CA RE Lic. #01264420 CA RE Lic. #01809130

www.hfflp.com

©2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.