Arco Am/Pm New 15 Year Absolute Nnn Lease Signalized Hard Corner

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INVESTMENT OPPORTUNITY ARCO AM/PM NEW 15 YEAR ABSOLUTE NNN LEASE SIGNALIZED HARD CORNER

OCEANSIDE, CA

OFFERED AT: $6,400,000 | 5.25% CAP OFFERED AT $2,027,000 | 6% CAP

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract

PROPERTY INFORMATION 9 Location Maps 10 Property Photos 11 Aerials

TENANT OVERVIEW 17 About Arco AM/PM

AREA OVERVIEW 19 Oceanside Overview 20 San Diego County Overview 21 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY LISTED BY

RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 TODD WALLER [email protected] [email protected] Principal 608.327.4001 [email protected]

Actual Property

ARCO AMPM | Oceanside, CA | 2 EXECUTIVE SUMMARY

ARCO AM/PM Oceanside, CA

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $6,400,000 Address: 1990 Oceanside Blvd Oceanside, CA 92054 Net Operating Income: $336,000 Property Size: 2,417 SF Cap Rate: 5.25% Land Size: 22,651 SF Price/SF: $2,647 Ownership: Fee Simple Lease Type: Absolute NNN Year Built: 1986

Lee & Associates is pleased to exclusively offer for sale the fee simple interest in an Arco AM/PM property located in the city of Oceanside, CA (the “Property”). Built in 1986, the building consists of a freestanding 2,417-square-foot retail building with an Arco gas station with eight (8) gas pumps. The subject property is leased to Arco AMPM, known for its low-priced gasoline and quick-service convenience stores. Arco is owned by the Marathon Petroleum Company, a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates more than 1,000 long-term supply contracts for direct dealer locations, primarily in Southern California, and largely under the ARCO brand. In 2019, the company reported revenues of $1.6 billion. The subject property is leased to an experienced Arco AM/PM operator and includes a strong personal lease guaranty. The new 15 year absolute NNN lease commenced in June 2020. The lease features 3% annual rent increases starting in Year 6 in the Primary Term and throughout the (2) 5-year Options, providing an investor with an ideal passive investment with outstanding rent growth. The site is strategically located across from the Sprinter Coaster station, the hybrid rail train that runs east and west between Escondido and Oceanside. With average weekday ridership of over 8,300 passengers per day, this popular commuter system sees a total of 2.5 million passengers each year. This translates into heavy walk-in & gas-up traffic at this location, resulting in sales of approximately $10 million. The subject property is located on the hard corner signalized intersection of Oceanside Blvd & Crouch St, offering outstanding visibility and access to combined traffic counts of nearly 53,000 CPD. Oceanside Blvd is a major east- west traffic thoroughfare carrying commuters to/from Interstate 5 less than one mile away. As the major north- south travel corridor through the state of California, Interstate 5 offers direct access to San Diego 38 miles to the south and north to Orange County. The subject property is located Oceanside, in North San Diego County, California. Perfectly situated between metropolitan San Diego and Los Angeles, Oceanside is centrally located in the heart of Southern California. Manufacturing, distribution, tourism and agriculture remain the region’s top industries, but in recent years, Oceanside has become home to biotech industries that are among the area’s fastest growing business sectors. North Oceanside is the home of Camp Pendleton, the largest U.S. Marine Corps Amphibious Training Base on the West Coast, and the largest employer in North San Diego County for more than 60 years. Camp Pendleton is home to more than 38,000 military personnel but sees a daytime population of 70,000 military and civilian personnel. Actual Property

ARCO AMPM | Oceanside, CA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract

-- INVESTMENT HIGHLIGHTS --

ARCO AMPM: NEARLY 1,100 LOCATIONS IN WESTERN U.S. • PART OF MARATHON PETROLEUM COMPANY, LEADING ENERGY COMPANY WITH REPORTED REVENUES OF $1.6B (2019) The subject property is leased to Arco AMPM, known for its low-priced gasoline and quick-service convenience stores. Arco is owned by the Marathon Petroleum Company, a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates more than 1,000 long-term supply contracts for direct dealer locations, primarily in Southern California, and largely under the ARCO brand. In 2019, thecompany reported revenues of $1.6 billion. The subject property is leased to an experienced Arco AM/PM operator and includes a strong personal lease guaranty. HARD CORNER SIGNALIZED INTERSECTION • DENSE TRAFFIC COUNTS (52,500+ CARS PER DAY) • LESS THAN ONE MILE FROM ON/OFF RAMP TO INTERSTATE 5 • DIRECT ACCESS TO DOWNTOWN SAN DIEGO & ORANGE COUNTY The subject property is located on the hard corner signalized intersection of Oceanside Blvd & Crouch St, offering outstanding visibility and access to combined traffic counts of nearly 53,000 CPD. Oceanside Blvd is a major east- west traffic thoroughfare carrying commuters to/from Interstate 5 less than one mile away. As the major north- south travel corridor through the state of California, Interstate 5 offers direct access to San Diego 38 miles to the south and north to Orange County. NEW 15 YEAR ABSOLUTE NNN LEASE • PASSIVE INVESTMENT • ANNUAL 3% RENT INCREASES (STARTING YEAR 6) The new 15 year absolute NNN lease commenced in June 2020. The lease features 3% annual rent increases starting in Year 6 in the Primary Term and throughout the (2) 5-year Options, providing an investor with an ideal passive investment with outstanding rent growth. LOCATED ACROSS FROM SPRINTER RAIL STATION • AVG WEEKDAY RIDERSHIP OF 8,300 PASSENGERS (2.5 MILLION RIDERS EACH YEAR) • STRONG DRIVER OF FOOT & AUTO TRAFFIC • LENDS TO SUCCESS OF LOCATION The site is strategically located across from the Sprinter Coaster station, the hybrid rail train that runs east and west between Escondido and Oceanside. With average weekday ridership of over 8,300 passengers per day, this popular commuter system sees a total of 2.5 million passengers each year. This translates into heavy walk-in & gas- up traffic at this location, resulting in sales of approximately $10 million. LOCATED IN THE CITY OF OCEANSIDE • CENTRALLY LOCATED BETWEEN SAN DIEGO & LOS ANGELES COUNTIES • HOME OF CAMP PENDLETON, NORTH SAN DIEGO COUNTY’S LARGEST EMPLOYER Perfectly situated between metropolitan San Diego and Los Angeles, Oceanside is centrally located in the heart of Southern California. Manufacturing, distribution, tourism and agriculture remain the region’s top industries, but in recent years, Oceanside has become home to biotech industries that are among the area’s fastest growing business sectors. North Oceanside is the home of Camp Pendleton, the largest U.S. Marine Corps Amphibious Training Base on the West Coast, and the largest employer in North San Diego County for more than 60 years. Camp Pendleton is home to more than 38,000 military personnel but sees a daytime population of 70,000 military and civilian personnel. The facility’s Marines, Sailors and their families rely on the surrounding communities for retail goods and services not available on Base, creating an outstanding need for employment, housing and resources in neighboring Oceanside and other nearby cities.

ARCO AMPM | Oceanside, CA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract

-- LEASE SUMMARY -- -- RENT SCHEDULE --

LEASE INFORMATION LEASE TERM TENANT: Highland Carco, Inc. dba ARCO AM/PM TERM START DATE END DATE NOI/YR NOI/MO GUARANTOR: Highland Cargo, Inc. (Franchisee) Years 1 - 5 7/14/2020 7/13/2025 $336,000 $28,000 LOCATIONS OPERATED: (3) 7-Elevens, (1) 76 Gas Station Year 6 7/14/2025 7/13/2026 $346,080 $28,840 BUILDING SIZE: 2,417 SF Year 7 7/14/2026 7/13/2027 $356,462 $29,705 LOT SIZE: 22,651 SF Year 8 7/14/2027 7/13/2028 $367,155 $30,596 RENT COMMENCEMENT: July 14, 2020 Year 9 7/14/2028 7/13/2029 $378,170 $31,514 LEASE EXPIRATION: July 13, 2035 Year 10 7/14/2029 7/13/2030 $389,515 $32,460 BASE TERM: 15 Years Year 11 7/14/2030 7/13/2031 $401,200 $33,433 REMAINING LEASE TERM: 15 Years Year 12 7/14/2031 7/13/2032 $413,236 $34,436 OPTIONS TO RENEW: (2) 5-Year Options Year 13 7/14/2032 7/13/2033 $425,633 $35,469 RENT INCREASES: 3% Annual Increases (starting Year 6) in Primary Term & Options Year 14 7/14/2033 7/13/2034 $438,402 $36,533 LEASE TYPE: Absolute NNN Lease Year 15 7/14/2034 7/13/2035 $451,554 $37,630 LANDLORD RESPONSIBILITIES: None OPTION PERIODS - (2) 5-YEAR OPTIONS ANNUAL RENT: $336,000 + NNN Expenses Option 1-Year 1 7/14/2035 7/13/2036 $465,100 $38,758 Year 2 7/14/2036 7/13/2037 $479,053 $39,921 Year 3 7/14/2037 7/13/2038 $493,424 $41,118 Year 4 7/14/2038 7/13/2039 $508,226 $42,352 Year 5 7/14/2039 7/13/2040 $523,473 $43,622 Option 2-Year 1 7/14/2040 7/13/2041 $539,177 $44,931 Year 2 7/14/2041 7/13/2042 $555,352 $46,279 Year 3 7/14/2042 7/13/2043 $572,012 $47,667 Year 4 7/14/2043 7/13/2044 $589,172 $49,097 Year 5 7/14/2044 7/13/2045 $606,847 $50,570

ARCO AMPM | Oceanside, CA | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract •

-- LEASE ABSTRACT --

8 - Tenant shall make all arrangements for installation, upgrade or repair and pay for all gas, electricity, water, telephone, Internet, trash disposal, and any and all other utilities and services Utilities: provided or that may be provided to the Premises during the Term of this Lease. 9.1 - Property Taxes. Pursuant to Section 9.2 hereof, Tenant shall bear, pay and discharge, on or before the last day on which payment may be made without penalty or interest, all secured property taxes imposed on the Premises and/or the improvements. Property Taxes: 9.2 - Payment of Taxes. Upon receipt of tax bills, Landlord shall promptly forward to Tenant a copy of such bill, and Tenant shall pay the amount due to Landlord no later than thirty (30) days prior to the date such taxes would become delinquent. 10.1 - Tenant Obligations. Tenant shall, at all times during the Term of this Lease, and at his sole cost and expense, construct, put, keep, replace, and maintain in thorough repair and in good, safe and substantial order and condition, the Premises, and all equipment and appurtenances, both inside and outside, structural and nonstructural, extraordinary and ordinary, foreseen or unforeseen, howsoever the necessity or desirability for repairs may occur, and whether or not necessitated by wear, tear, or defects, latent or otherwise including, without limitation, UST’s. Tenant shall use all reasonable precautions to prevent, and shall promptly repair or restore, any waste, damage or injury to the Premises. Tenant shall also, at his own cost and expense, put, Repairs to Premises: keep, replace, and maintain in thorough repair and in good, safe and substantial order and condition, and free from dirt, rubbish and other obstructions or encumbrances, the sidewalks, vaults, areas, and curbs in front of and adjacent to the Premises. 10.2 - No Landlord Obligation. Landlord shall have neither the obligation nor responsibility of any kind whatsoever to undertake any repairs of improvements or fixtures, or maintain the Premises or the improvements or equipment located thereon. 14.1 - Liability Insurance. Tenant shall at all times during the Term, and at his own cost and expense, procure and continue in force workers’ compensation insurance, containing a waiver of subrogation endorsement acceptable to Landlord, and a policy of Commercial General Liability insurance adequate to protect Tenant and Landlord against liability for injury to or death of any person or damage to property in connection with the use, operation or condition of the Premises. 14.2 - Property Insurance. Tenant shall at all times during the Term maintain in effect policies of insurance covering the Premises (including, but not limited to, all Alterations) trade fixtures, merchandise and other personal property from time to time in, on or upon the Premises. 14.3 - Rental Value. Tenant shall obtain and keep in force a policy of insurance in the name of Landlord with loss payable to Landlord, insuring a loss of full Rent for twelve (12) months with Insurance: an extended period of indemnity for an additional one hundred eighty (180) days (“Rental Value Insurance”). The Rental Value Insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the Base Rent increases. Tenant shall be liable for any deductible amount in the event of such loss. 14.4 - Business Interruption. Tenant shall obtain and maintain loss of income and extra expense insurance in amounts that will reimburse Tenant for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of operating retail motor fuel facilities with convenience stores or attributable to prevention of access to the Premises as a result of such perils. 14.5 - Pollution. Tenant shall pay for environmental insurance procured by Landlord with limits of Two Million and Zero/100 Dollars ($2,000,000.00) per occurrence and Two Million and Zero/100 Dollars ($2,000,000.00) aggregate and a Five Thousand and Zero/100 Dollar ($5,000.00) deductible throughout the Term and Renewal Term, if any, of this Lease. 30 - Estoppel Certificates. Tenant shall at any time and from time to time upon not less than three (3) days’ prior notice by Landlord, execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the Estoppel Certificates: modifications), the dates to which the Base Rent, Additional Rent and other charges have been paid in advance, if any, stating whether or not to the best knowledge of Tenant, Landlord is in default in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which Tenant may have knowledge and containing any other information and certifications that reasonably may be requested by Landlord or the holder of any deed of trust with respect to the Premises or prospective purchaser of the Premises. 31.23 - Within fifteen (15) business days after Tenant’s receipt of Landlord’s written request, Tenant shall provide Landlord with current financial statements of Tenant and financial statements Financial Statements: for the two (2) calendar or fiscal years (if Tenant’s fiscal year is other than a calendar year) prior to the current financial statement year.

ARCO AMPM | Oceanside, CA | 7 PROPERTY INFORMATION

ARCO AM/PM Oceanside, CA

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Property Photos Aerials

-- LOCATION MAPS --

COSTA MESA

MURRIETA

SAN JUAN CAPISTRANO

FALLBROOK 31 Miles Oceanside Blvd

OCEANSIDE VISTA CARLSBAD ESCONDIDO

ENCINITAS

S. Coast Hwy Oceanside Blvd S. Coast Hwy 38 Miles POWAY DEL MAR

SAN DIEGO

Pacific Ocean

ARCO AMPM | Oceanside, CA | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Property Photos • Aerials

-- PROPERTY PHOTOS --

ARCO AMPM | Oceanside, CA | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Aerials •

-- OVERHEAD VIEW --

CROUCH ST 22,800 CPD

OCEANSIDE BLVD 29,800 CPD

COMBINED 52,600 CPD

ARCO AMPM | Oceanside, CA | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Aerials •

OCEANSIDE -- LOOKING NORTHWEST -- Pacific Ocean GOAT HILL PARK 203,000 CPD GOLF COURSE

SAN DIEGO COUNTY CHILDRENS SVCS YOGA OCEANSIDE HILLSIDE GARDENS OCEAN HILLS SAN DIEGO COUNTY APARTMENTS WELFARE TO WORK OCEANSIDE SECURITY APARTMENTS AGENCY

WOMEN’S RESOURCE CENTER MR DONUTS STONEY BROOK FRED LOYA APARTMENTS INSURANCE

SMOG THIS!

NCHS OCEANSIDE SPECIALTY HEALTH CENTER OCEANSIDE BLVD 29,800 CPD FIRE MOUNTAIN VETERINARY HOSPITAL

FIRE MOUNTAIN MARKET & LIQUOR STORE

CROUCH ST 22,800 CPD

COMBINED AGRI-CHEMICAL & 52,600 CPD SUPPLY

ARCO AMPM | Oceanside, CA | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Aerials • CAMP PENDLETON -- LOOKING NORTH --

GOAT HILL PARK SILVER OAK GOLF COURSE OCEAN HILLS APARTMENTS APARTMENTS

HILLSIDE GARDENS APARTMENTS STONEY BROOK APARTMENTS NCHS OCEANSIDE SPECIALTY HEALTH CENTER WOMEN’S RESOURCE CENTER

FIRE MOUNTAIN NCHS OCEANSIDE VETERINARY SPECIALTY HEALTH CENTER HOSPITAL MACHINE TECH FRED LOYA SMOG THIS! MR DONUTS INSURANCE CROUCH ST 22,800 CPD

AGRI-CHEMICAL & SUPPLY

OCEANSIDE BLVD 29,800 CPD COMBINED 52,600 CPD FIRE MOUNTAIN MARKET & LIQUOR STORE

ARCO AMPM | Oceanside, CA | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Aerials •

CAMINO COLONY SOCAL SPORTS -- LOOKING EAST -- APARTMENTS COMPLEX

OCEANSIDE TRUCK THE FLOWER & RV REPAIR PARROT CO BMW PRECISION MACHINING WASTE MANAGEMENT WESTWOOD VILLAGE NORTH COUNTY CASA COLLADO APARTMENTS APARTMENTS LIGHTHOUSE SELF STORAGE SKYLARK DR • OCEANSIDE TOWING LAEL’S INTERNATIONAL OCEANSIDE BLVD • COLOR CRAFTER AUTO SERVICES 29,800 CPD • BROTHER’S AUTO GLASS GIANT K • WELL-BUILT TRANSMISSIONS MARKET OCEANSIDE AUTO SPECIALISTS PACIFICO CROSSFIT OCEANSIDE ADVANCE AUTO PAINT & BODY

MACHINE 7-DAY TIRE & BRAKE TECH

AGRI-CHEMICAL & SUPPLY

FIRE MOUNTAIN VETERINARY HOSPITAL CROUCH ST COMBINED NCHS OCEANSIDE 22,800 CPD 52,600 CPD SPECIALTY HEALTH CENTER

FIRE MOUNTAIN MARKET & LIQUOR STORE OCEANSIDE BLVD 29,800 CPD

ARCO AMPM | Oceanside, CA | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Aerials •

-- LOOKING SOUTHWEST -- Pacific Ocean OCEANSIDE LINCOLN MIDDLE SCHOOL 203,000 CPD GOAT HILL PARK UFC GYM GOLF COURSE NORTH COASTAL OCEANSIDE FAMILY RESOURCE YOGA SAN DIEGO COUNTY CHILDRENS SVCS OCEANSIDE SAN DIEGO COUNTY WELFARE TO WORK

OCEANSIDE SECURITY AGENCY

OCEANSIDE BLVD 29,800 CPD MR DONUTS FRED LOYA INSURANCE WOMEN’S RESOURCE CENTER SMOG THIS!

SPRINTER STATION FIRE MOUNTAIN MARKET & LIQUOR STORE NCHS OCEANSIDE SPECIALTY HEALTH CENTER

FIRE MOUNTAIN VETERINARY HOSPITAL CROUCH ST COMBINED 22,800 CPD 52,600 CPD

ARCO AMPM | Oceanside, CA | 15 TENANT OVERVIEW

ARCO AM/PM Oceanside, CA

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Arco AM/PM

-- ABOUT ARCO AMPM --

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system with more than 3 million barrels per calendar day (bpcd) of crude oil capacity across 16 refineries. MPC’s marketing system includes branded locations across the United States, including Marathon branded outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company which owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. In 2018, Marathon Petroleum Corporation acquired Andeavor (formerly Tesoro), which extended its operations nationwide. Included in the acquisition were 10 refineries: Anacortes (Washington), Dickinson (North Dakota), El Paso (Texas), Gallup (New Mexico), Kenai (Alaska), Los Angeles (California), Mandan (North Dakota), Martinez (California), Salt Lake City (Utah) and St. Paul Park (Minnesota), approximately 3,300 retail stations and the general partner of Andeavor Logistics. In 2019, the company reported revenues of $1.6 billion, up from $1 billion in 2018.

The Retail segment sells gasoline, diesel and merchandise through convenience stores that it owns and operates, primarily under the Speedway brand, as well as through direct dealer locations. Our Retail segment has approximately 3,900 company-owned and -operated convenience stores across the United States and more than 1,000 long-term supply contracts for direct dealer locations, primarily in Southern California, and largely under the ARCO brand.

For more than 50 years, ARCO has been a leading gasoline provider, with locations across the West Coast, Mexico and Upper Midwest. We are a quality TOP TIER™ gasoline provider, offering gasoline that exceeds EPA standards and can help improve engine performance, efficiency and cleanliness. Today there are over 1,050 ampm franchise locations in the states of Arizona, California, Nevada, Oregon and Washington. At ampm, we are all about Too Much Good Stuff! We made our name by providing consumers with a selection of hot foods prepared on-site which includes a do-it-yourself, freshly-prepared condiment bar. But there’s more! From a broad array of energy drinks to a full selection of coffee and hot beverages, to up to 24 flavors of fountain drinks (and 2 types of ice), ampm consumers can snack or sip their way on to a convenient day!

ARCO AMPM | Oceanside, CA | 17 AREA OVERVIEW

ARCO AM/PM Oceanside, CA

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Oceanside Overview • San Diego County Overview Demographics

-- OCEANSIDE OVERVIEW -- Oceanside is Southern California’s most authentic beach town. Visitors to Oceanside enjoy a quintessential California coastal escape that includes wide sandy beaches, a quaint New England-style harbor, historic wooden pier, and charming bungalow neighborhoods. O’side (as locals affectionately call it) is a destination of discovery where visitors can explore everything from California history at the “King of Missions” to surf culture at the California Surf Museum, and awe-inspiring sea life through exciting ocean adventures. Oceanside has a dynamic and robust business climate. Manufacturing, distribution, tourism and agriculture remain the region’s top industries, but in recent years, Oceanside has become home to biotech industries that are among the area’s fastest growing business sectors. Perfectly situated between metropolitan San Diego and Los Angeles, Oceanside is centrally located in the heart of Southern California, in close proximity to the family-favorite attractions including LEGOLAND California Resort, SeaWorld San Diego, Disneyland California Resort, and the world-famous San Diego Zoo. With its year round sunny climate, and average temperature of 70 degrees, Oceanside’s weather has been rated by USA Today as the second most ideal climate in the United States, and the fifth most ideal weather in the world.

HOME OF CAMP PENDLETON • MARINE CORPS’ LARGEST TRAINING FACILITY ON THE WEST COAST Marine Corps Base Camp Pendleton, the Corps’ largest West Coast expeditionary training facility, encompasses more than 125,000 acres of Southern California terrain. Located approximately 38 miles from downtown San Di- ego in North County and 82 miles south of Los Angeles, Camp Pendleton has been the largest employer in North San Diego County for more than 60 years. Camp Pendleton is one of the Department of Defense’s busiest installations and offers a broad spectrum of training facilities for many active and reserve Marine, Army and Navy units, as well as national, state and local agencies. More than 38,000 military family members occupy base housing complexes. However, with a daytime population of 70,000 military and civilian personnel, the Marines, Sailors and their families rely on the surrounding communities for retail goods and services not available on Base. The neighboring cities provide employment, housing and services needed by the Camp Pendleton population. The Base is home to the I Marine Expeditionary Force, 1st Marine Division, 1st Marine Logistics Group and many tenant units, including Marine Corps Installations-West, 1st Marine Raider Battalion, Wounded Warrior Battalion- West, Marine Corps Air Station Camp Pendleton, Marine Aircraft Group 39, Marine Corps Tactical Systems Sup- port Activity, Marine Corps Recruit Depot San Diego’s Weapons & Field Training Battalion, Marine Corps and Army Reserve Forces, the Navy’s Assault Craft Unit 5, a Naval Hospital and 1st Dental Battalion. The Base also provides specialized schools and training as directed by the Commandant of the Marine Corps. Several schools are located on Camp Pendleton including Assault Amphibian Schools Battalion, School of Infantry- West, Field Medical Training Battalion - West and Marine Corps University. Following recruit graduation, enlisted Marines receive basic infantry training at the School of Infantry-West before assignment to other units throughout the Corps.

ARCO AMPM | Oceanside, CA | 19 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Oceanside Overview • San Diego County Overview • Demographics

-- SAN DIEGO COUNTY OVERVIEW --

With breakthrough technology companies and research organizations, The region is host to the third-largest cruise ship industry in California which generates an estimated $2 million an- the largest military concentration in the world and a strong tourism nually from purchases of food, fuel, supplies, and maintenance services. Three cruise lines home-port in San Diego: industry, the San Diego region has one of the most diverse, dynamic Holland America, Celebrity Cruises, and Disney Cruise Line. Holland America uses San Diego as a home port during economies in the country. the winter season. Disney Cruise Line has seasonal Mexican cruises in the spring and fall, as well as a Panama Canal cruise at the end of the visit. Multiple other cruise lines use San Diego as a port of call. In 2019 the Port of San Diego San Diego County is the second-most populous county in California expects to host 92 cruise calls and nearly 300,000 passengers. and the fifth-most populous in the United States. Situated in Southern California, the San Diego area is known for its mediterranean climate, San Diego has a strong military presence with 16 naval and military installations of the U.S. Navy, U.S. Marine Corps, ethnic diversity, sprawling metropolis, and as a major hub for the country’s military industry. The culture of San and the U.S. Coast Guard. It is the headquarters of the U.S. Navy’s Eleventh Naval District and is the Navy’s principal Diego is influenced heavily by American and Mexican cultures due to its position as a border town, its large Hispanic location for West Coast and Pacific Ocean operations. Naval Base San Diego, California is principal hometothe population, and its history as part of Spanish America and Mexico. Pacific Fleet (although the headquarters is located in Pearl Harbor). NAS North Island is located on the north side of Coronado, and is home to Headquarters for Naval Air Forces and Naval Air Force Pacific, the bulk of the Pacific The county’s largest continuous high-income urban area is a triangle from a first point on the northern edge of Fleet’s helicopter squadrons, and part of the West Coast aircraft carrier fleet. The Naval Special Warfare Center is the Carlsbad, a second point southeast of Escondido, and a third point on the southern edge of La Jolla. Inland North San primary training center for SEALs, and is also located on Coronado. The area contains five major naval bases and the Diego County, of which Escondido is at the core, is emerging as a regional economic leader in the forefront of job U.S. Marines base Camp Pendleton. Marine Corps Base Camp Pendleton is the major West Coast base of the United development and new industries. States Marine Corps and serves as its prime amphibious training base. It is located on the Southern California coast, Tourists are drawn to the region for everything from shopping to surfing as well as its mild climate. The area features bordered by Oceanside to the south, San Clemente to the north, and Fallbrook to the east. many historical attractions, a thriving musical and theatrical scene, numerous notable special events, professional Education in San Diego is as innovative as many of its industries. The region has established public charter schools that sports events, a varied cuisine, and a reputation as one of America’s premier centers of craft brewing, with over have influenced primary and secondary education across the country. In addition, with its more than 80 universities 100 craft/micro/nano breweries throughout the county that have been sweeping award ceremonies at national and – including the largest engineering school in the state – and world-class research institutions, San Diego is well- international contests. positioned to compete globally in attracting some of the most talented engineers, scientists and technology The San Diego visitor industry is the third largest industry in the county, and plays a huge role in the region’s economy, professionals in the world. The quality of life in the region, combined with strong technology-based industries, generating more than$704.6 million annually in state and local taxes and employing over 180,000 San Diegans - 13% means only the best and brightest work and live here. Add to that a robust service sector with professionals in of the jobs in the county. Approximately 34.3 million tourists visit San Diego every year, spending nearly $9.9 billion finance, marketing, sales, facilities management and other administrative positions, San Diego is a thriving, diverse annually at San Diego businesses and produce $246 million in transient occupancy tax revenues. economy.

ARCO AMPM | Oceanside, CA | 20 SUMMARY PROFILE 2000-2010 Census, 2020 Estimates with 2025 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.1953/-117.3537 RS1 1990 Oceanside Blvd 1 mi radius 3 mi radius 5 mi radius Oceanside,SUMMARY CA PROFILE 92054 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-2010 Census, 2020 Estimates with 2025 Projections 2020 Estimated Population 0 T 16,739 102,342 210,140 Oceanside Overview San DiegoCalculated County using Weighted Overview Block Centroid from Block Groups • Demographics • 2025 Projected Population 0 T 17,085 104,605 214,740 2010 Census Population 0 T 15,605 95,476 193,964 -- DEMOGRAPHICS -- Lat/Lon:2000 33.1953/-117.3537 Census Population 0 T 16,769 95,328 184,915 RS1 Projected Annual Growth 2020 to 2025 - 0.4% 0.4% 0.4% 1990 Oceanside Blvd POPULATION - - 0.4% 0.7% Historical Annual Growth 2000 to 2020 1 mi radius 3 mi radius 5 mi radius Oceanside,2020 Median CA 92054 Age 3 Miles35.8 5 Miles 36.0 10 Miles 36.5

2020 Estimated HouseholdsPopulation 0 T 16,7395,737 102,342 37,797 210,140 75,030 2025 Projected HouseholdsPopulation 0 T 17,0855,915 104,605 39,069 214,740 77,445 2010 Census HouseholdsPopulation 0 T 15,6055,339 35,12895,476 193,964 68,968 Population Avg HH Income Housing Units Residential Units Under Construction 2000 Census HouseholdsPopulation 0 T 16,7695,456 34,11795,328 184,915 64,747 - 0.4% 0.4% 0.4% Projected Annual Growth 2020 to 2025 - 0.6% 0.7% 0.6%

178,021 $87,744 65,426 227 HOUSEHOLDS POPULATION POPULATION - - 0.4% 0.7% Historical Annual Growth 2000 to 2020 - 0.3% 0.5% 0.8%

2020 EstimatedMedian Age White - 63.8%35.8 67.3% 36.0 65.4% 36.5 2020 Estimated HouseholdsBlack or African American 0 T- 5,7374.6% 37,797 5.0% 75,030 5.0% - 5.7% 7.1% 8.4% Annual Vistors Visitor Spending Businesses 20252020 ProjectedEstimated HouseholdsAsian or Pacific Islander 0 T 5,915 39,069 77,445 20102020 CensusEstimated Households American Indian or Native Alaskan 0 T- 5,3390.8% 35,128 1.0% 68,968 0.9% >6 Million $382M 6,198 2000 Census Households 0 T- 25.1%5,456 34,117 19.7% 64,747 20.4% RACE AND RACE ETHNICITY 2020 Estimated Other Races

Projected2020 Estimated Annual Hispanic Growth 2020 to 2025 - 41.9%0.6% 34.3% 0.7% 34.9% 0.6% HOUSEHOLDS HOUSEHOLDS - 0.3% 0.5% 0.8% Historical2020 Estimated Annual Average Growth Household2000 to 2020 Income $0 T $93,500 $90,988 $99,355 2020 Estimated WhiteMedian Household Income $0 T- $67,81163.8% $71,714 67.3% $79,134 65.4% - 4.6% 5.0% 5.0% INCOME 2020 Estimated BlackPer Capita or African Income American $0 T $32,183 $34,849 $36,215 - 5.7% 7.1% 8.4% 2020 Estimated ElementaryAsian or Pacific (Grade Islander Level 0 to 8) - 10.6% 7.0% 6.7% - 0.8% 1.0% 0.9% 2020 Estimated SomeAmerican High Indian School or (GradeNative AlaskanLevel 9 to 11) - 7.4% 5.8% 5.7% - 25.1% 19.7% 20.4% RACE AND RACE ETHNICITY 2020 Estimated HighOther School Races Graduate - 19.3% 19.1% 19.8%

- 41.9% 34.3% 34.9% warranty. or representation without provided is herein information The reliable. be to deemed sources government and private from data using produced was report This RACE & ETHNICITYRACE 2020 Estimated SomeHispanic College - 25.4% 25.1% 24.6% 2020 Estimated AverageAssociates Household Degree Only Income $0 T- $93,5007.8% $90,988 9.3% $99,355 9.5% (AGE 25+) EDUCATION 2020 Estimated MedianBachelors Household Degree Only Income $0 T- $67,81120.2% $71,714 21.2% $79,134 21.2%

INCOME 2020 Estimated PerGraduate Capita Degree Income $0 T- $32,1839.4% $34,849 12.5% $36,215 12.6% INCOME 2020 Estimated ElementaryTotal Businesses (Grade Level 0 to 8) 0 T- 10.6%616 5,482 7.0% 8,678 6.7% 2020 Estimated TotalSome Employees High School (Grade Level 9 to 11) 0 T- 3,8537.4% 37,094 5.8% 62,882 5.7% 2020 Estimated EmployeeHigh School Population Graduate per Business - 19.3%6.3 19.1%6.8 19.8%7.2 This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. or representation without provided is herein information The reliable. be to deemed sources government and private from data using produced was report This BUSINESS BUSINESS 2020 Estimated ResidentialSome College Population per Business - 25.4%27.2 25.1% 18.7 24.6% 24.2

©2020, Sites2020 USA, Chandler,Estimated Arizona, Associates 480-491-1112 Degree Only page 1 of 1 Demographic- Source: Applied7.8% Geographic Solutions 9.3% 4/2020, TIGER Geography 9.5% (AGE 25+) EDUCATION 2020 Estimated Bachelors Degree Only - 20.2% 21.2% 21.2% 2020 Estimated Graduate Degree - 9.4% 12.5% 12.6%

2020 Estimated Total Businesses 0 T 616ARCO AMPM 5,482 | Oceanside, 8,678 CA | 21 2020 Estimated Total Employees 0 T 3,853 37,094 62,882 2020 Estimated Employee Population per Business - 6.3 6.8 7.2

BUSINESS 2020 Estimated Residential Population per Business - 27.2 18.7 24.2

RYAN BARR RYAN BENNETT Principal Principal BARR&BENNETT 760.448.2446 760.448.2449 NETLEASEDINVESTMENTS [email protected] [email protected] 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.

ARCO AMPM | Oceanside, CA | 22