OFFERING MEMORANDUM

TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

CAPITAL MARKETS | NATIONAL PARTNERS EXCLUSIVELY MARKETED BY

NRP-WEST DEBT & STRUCTURED FINANCE

JOHN READ PHILIP D. VOORHEES KIRK BRUMMER ALAN KRUEGER SHAUN MOOTHART +1 949 725 8606 +1 949 725 8521 +1 949 725 8418 +1 909 418 2062 +1 949 509 2111 Lic. 01359444 Lic. 01252096 Lic. 01218518 Lic. 00880814 Lic. 01773201 [email protected] [email protected] [email protected] [email protected] [email protected]

PRESTON FETROW SEAN HEITZLER NRP-WEST TEAM +1 949 725 8538 +1 949 725 8468 Philip D. Voorhees Lic. 00923282 Lic. 02025087 (Team Leader) [email protected] [email protected] Preston Fetrow John Read Kirk Brummer Megan Wood Jimmy Slusher Matt Burson James Tyrrell Sean Heitzler CBRE-NEWPORT BEACH 3501 Jamboree Rd., Ste 100, Newport Beach, CA 92660 For all of our available listings, please visit: F + 1 949 725 8545 | www.cbre.com/nrpwest WWW.CBRE.COM/NRPWEST © 2017 CBRE, Inc. All Rights Reserved. TABLE OF CONTENTS 41 8 12 18 INVESTMENT SUMMARY AREA OVERVIEW PROPERTY OVERVIEW TENANT OVERVIEW FINANCIALS INVESTMENT HIGHLIGHTS CITY OVERVIEW PARCEL MAP COUNTY OVERVIEW SITE PLAN MISSION GROVE MARCH AIR RESERVE BASE EDGEMONT

TOWN GATE SHOPPING CENTER MORENO MORENO VALLEY MALL

¨

) PD 3 C ,91 SUNNYMEAD 07 (±1 PARK AY REEW 60 F LEY VAL ENO MOR

BUTTERFIELD VALLEY SHOPPING CENTER

PERRIS BOULEVARD (±27,499 CPD)

HEMLOCK AVENUE (±4,873 CPD) TS MARKETPLACE

IRONWOOD AVENUE

N STARBUCKS INVESTMENT SUMMARY

OFFERING PRICE $24,430,000

PRICE PSF $215

NOI $1,466,746

CAP RATE 6.00%

OCCUPANCY 98%

TOTAL BUILDING AREA ±113,171 SF

TOTAL LAND AREA ±453,024 SF (±10.4 Acres)

PARKING 4.1 Stalls per 1,000 SF

WEBSITE www.nrpwest.com/tsmarketplace

INVESTMENT HIGHLIGHTS

HIGH PERFORMING SOCAL GROCERY ANCHORED SECURE CASH FLOW NEIGHBORHOOD CENTER • High Credit and Brand Name Tenancy – 84% of the leased GLA is leased to • Grocery Anchored Neighborhood Shopping Center – Few high-performing, credit and brand name regional operators including Food 4 Less (), national credit tenant grocery anchored shopping centers come to market DaVita, O’Reilly Auto Parts, Starbucks, Fitness 19, Subway, Little in Southern . Anchored by a high performing Food 4 Less grocery Caesars, and Baskin Robbins store (wholly-owned subsidiary of Kroger), with a synergistic mix of national and regional credit tenants led by DaVita, Fitness 19, O’Reilly • High Stability Asset – Strong historical occupancy at the property, 8 Auto Parts, Starbucks, TS Marketplace is a rare and compelling SoCal retail tenants totaling 64,725 SF (57% of the GLA) have occupied the property investment opportunity for more than 10 years, demonstrating a recession resistant asset with high tenant demand • Seasoned Grocer, Strong Tenant Sales – Food 4 Less thrives at this location (occupied as a grocery anchor since 1987), reportedly generating • Limited Near-Term Rollover – The four largest tenants representing strong sales in the high $400 PSF range, demonstrating the proven quality 74% of the GLA are on long-term leases, Food 4 Less (2023 expiration), of this location DaVita (2027 expiration), Fitness 19 (2023 expiration), and O’Reilly (2024 expiration), limiting any near-term rollover exposure • 100% Internet Resistant Tenancy and “Daily Necessities Draw” – All of the tenants at TS Marketplace including Food 4 Less ( and fuel • National Credit Grocer Anchor – Food 4 Less is owned by The Kroger pad), DaVita, Fitness 19, Starbucks, O’Reilly Auto Parts, and Subway among Co. (NYSE: KR), one of the world’s largest grocery retailers with more than others sell perishable food and beverage items or provide health, fitness or 2,700 stores in 35 states under 12 banners with fiscal 2015 sales of $109.8 other services that are not conducive to internet transactions, providing a billion and a S&P investment grade tenant rating of BBB barrier against internet competition. These tenants demonstrate “internet and recession resistance” while generating consistent daily-trip traffic.

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 1 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

INVESTMENT HIGHLIGHTS | CONTINUED

• Recent Fuel Station Addition – Food 4 Less recently constructed a fuel • Low In-Place Rents – Property wide, rents at TS Marketplace are ±21% pad at its expense of approximate $2 million, affirming its long-term below current market rates, enhancing tenant stability and competitiveness, commitment to this location. Furthermore, when a fuel pad is added, and providing strong rental growth grocer sales often increase up to 10%. Together with reportedly exceptional store sales presents a low rent-to-sales ratio (sub-3%), increasing the • Exceptional NOI Growth Potential – The combination of contractual fixed probability of Food 4 Less’s long-term occupancy and an upside opportunity rental increases and below market rents indicate a potential to the grow NOI in the future to increase rent for the grocery store box and fuel pad. at TS Marketplace more than $506,000 (35%) over a 10-year hold period, providing a strong inflationary hedge

STRONG REAL ESTATE FUNDAMENTALS, HUGE GROWTH • High Barriers to Entry with Limited Grocery Competition – Ideally situated within an infill and supply-constrained trade area with only one • 100% Ownership of the Entire Center – Tremendous opportunity to own other existing grocery store in the trade area north of the CA-60 Freeway an entire shopping center providing investors total control and future parcel sale opportunities • Significant Frontage and Visibility – Unrivaled visibility with over 675 feet of frontage along Perris Boulevard and over 635 feet of frontage along • Rare Below Replacement Cost Neighborhood Center – At less than $220 Hemlock Avenue PSF, the high-quality TS Marketplace will trade below its land inclusive replacement cost estimated to be $295 PSF • Abundant Parking – With 465 parking spaces (over 4.1 spaces per 1,000 SF of building area), the property’s convenient parking permits a wide variety • Excellent Grocer Fundamentals / Embedded Value – Food 4 Less pays of higher-intensity food, beverage and medical future uses well-below market rent at just $.66 PSF/MN, $7.92 PSF/YR, with strong annual sales reportedly in the high $400 PSF range

2 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS INVESTMENT HIGHLIGHTS | CONTINUED

DOMINANT COMMUNITY CENTER LOCATION »» March Air Reserve Base is one of the oldest WITHIN A STRONG RETAIL TRADE AREA military camps established in the US with approximately 20 military units and 8,600 • Hard Corner, Signalized Location – TS Marketplace is employees currently at the base positioned on Perris Blvd. (27,000+ CPD) just north of the 60 Freeway and the submarket’s retail corridor at IDEAL 1031 EXCHANGE PROPERTY Sunnymead Blvd. and Perris Blvd. • Long-Term, High-Performing Credit Anchor – Food • Convenient Regional and Local Accessibility – The 4 Less has anchored TS Marketplace for 30 years, property is just north and easily accessible from the continues to experience strong sales, and recently CA-60 Freeway (over 107,000 CPD), one of the region’s constructed a fuel pad at its own expense, proving its primary arterials providing convenient regional and local long-term commitment to this location accessibility • Unencumbered, Debt-Free Asset – With no existing financing in-place, investors are able to obtain new INFILL INLAND EMPIRE TRADE AREA, ACTIVE financing at low rates and attractive terms, potentially DAYTIME POPULATION enhancing leveraged returns

• More than 20,000 people in a 1-mile radius, with an • High Quality Acquisition – TS Marketplace has been Average Household Incomes of approximately $65,000 professionally managed and leased to an institutional level, providing the utmost care to the property and • More than 129,000 people in a 3-mile radius, with an tenants Average Household Income exceeding $66,000 • Recently Renovated – The property was recently • More than 206,000 people in a 5-mile radius, with an renovated with improvements including roof and Average Household Income exceeding $70,000 parking lot, which will limit any near-term capital expenditures • More than 207,000 people in the city of Moreno Valley with an average household income of $68,000 and a • Wholly-Owned/Multiple Parcels – Purchase the projected population growth of 5% in the next five years entire center consisting of 8 parcels, creating an opportunity for financing alternatives and spin-off • Strong Daytime Population – Over 103,000 sales employees within 3 miles of the center and over 174,000 employees within 5 miles of the center creates additional customer demand for TS Marketplace

»» Moreno Valley’s industrial/distribution market consists of 65 buildings totaling over 22 million square feet

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 3 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

AREA OVERVIEW Zillow Home Values: * Est. $285,000 MORENO VALLEY https://www.zillow.com/morenovalley-ca/home-values/

The city of Moreno Valley has become one of the leading markets for • Moreno Valley’s youthful population totals 207,976 and is projected to reach logistics and distribution uses, not only in the Inland region but throughout nearly 219,900 by the year 2021 – more than a 5% increase. Solid growth the entire United States. Moreno Valley offers a superb business location in has propelled Moreno Valley to its position as the second largest city in , along with being one of the most active development Riverside County and of the fastest growing cities in the nation. areas for new industrial buildings in the country. Located at the gateway to northeast Riverside and Western Riverside County, approximately 52 • Fast growth is attributed to a range of housing options including high-end miles east of downtown , and 41 miles west of Palm Springs, the executive homes, affordable single-family homes, and condominiums; city encompasses 51 square miles and is located near the eastern edge of family friendly lifestyle; good schools, and impressive quality-of-life the Los Angeles metropolitan area, ideally situated at the junction of State amenities. Central to Moreno Valley’s economic growth is its importance as Route 60 and Interstate 215. a residential hub for the rapidly expanding Inland Empire. In addition, ten miles away is the fastest growing school in California’s university system, • Moreno Valley is strategically placed in the perfect location serving University of California Riverside. Southern California, and Arizona for all logistic needs. • Voted “Number One in Riverside County for Family Recreation” by the • The city is home to many major corporations including; Cardinal Glass Press Enterprise newspaper, Moreno Valley’s amenities include: more Company, Frazee Paint, Harbor Freight Tools, Harman/Kardon, iHerb. than 32 parks and/or joint-use facilities, and 6,000 acres of open space com, Minka Group, O’Reilly Auto Parts, Philips Electronics, Ross Dress at Lake Perris; recreational, medical, and educational facilities; quality for Less, Serta, Skechers, United Natural Foods, and Walgreens. housing at affordable prices, open spaces, abundant retail centers, industrial developments and social/cultural activities.

Employment is on the rise in Moreno Valley. Adjacent to the city is March MORENO RIVERSIDE • DEMOGRAPHICS VALLEY COUNTY Air Reserve Base, in addition to a notable surge in service employment jobs are increasing in other industries including manufacturing, distribution, and 2016 ESTIMATED POPULATION 207,976 2,369,751 commercial businesses. 2021 PROJECTED POPULATION 219,944 2,514,426 For more Information please visit; http://www.moreno-valley.ca.us/ and http://en.wikipedia.org/wiki/Moreno_Valley,_California 2016 ESTIMATED AVERAGE AGE 33 37

2016 ESTIMATED HOUSEHOLDS 54,933 732,659

2021 PROJECTED HOUSEHOLDS 58,031 775,237 PERRIS AUTO SPEEDWAY 2016 EST. AVERAGE HOUSING VALUE $236,619 $274,126 TOP ATTRACTIONS

2016 EST. AVERAGE HOUSEHOLD INCOME $68,003 $75,710 • Perris Auto Speedway • Olive Mountain 2021 PRJ. AVERAGE HOUSEHOLD INCOME $72,942 $81,702 • San Timoteo Canyon • Cottonwood Golf Center • Hound Town Dog Park • Lasselle Sports Park *Source: CBRE Location Analytics & Mapping, 2016

4 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS AREA OVERVIEW | CONTINUED

TOP RETAIL SPOTS MORENO VALLEY TOP EMPLOYERS

• Moreno Valley Mall – is an enclosed, multi-level shopping center located COMPANY EMPLOYEES BUSINESS TYPE in Moreno Valley. Moreno Valley Mall is the region’s prime shopping and MARCH AIR RESERVE BASE 8,600 Military Reserve Base entertainment destination and features over 130 stores. 7,500 Retail Distribution Canyon Springs Plaza – is located at the corner of Hwy. 60 & Day St., • MORENO VALLEY UNIFIED SCHOOL DISTRICT 3,489 Public School Moreno Valley. It covers an area of 413,000 SF and has about 63 stores including Toys R Us, DC Furniture, Mattress Brothers, Ultra Star Cinema RIVERSIDE UNIVERSITY HEALTH SYSTEM (FORMERLY RCRMC) 2,987 County Hospital and much more. ROSS DRESS FOR LESS/DD’S DISCOUNTS 1,921 Retail Distribution

MORENO VALLEY MALL 1,390 Retail Mall • TownGate Center and TownGate Plaza – provides 464,000 SF of shopping, dining and services. Part of a 590 acre mixed use development; HARBOR FREIGHT TOOLS 800 Retail Distribution TownGate Center and Plaza are conveniently located at the western KAISER PERMANENTE COMMUNITY HOSPITAL/OFFICE 789 Hospital/Medical Services gateway of Moreno Valley, adjacent to US Highway 60 and the Moreno VAL VERDE UNIFIED SCHOOL DISTRICT 680 Public School Valley Mall.

• Moreno Valley Plaza – is a 341,011 SF established community shopping center located in an in-fill location of Moreno Valley. Anchored by Superior REGIONAL MAP Grocers, Big Lots, Harbor Freight Tools, Office Depot, Big 5 Sporting

Goods and McDonald’s among others. 10-MILES

• Towngate Crossing – is a +237,000 (GLA) SF community shopping

center in Moreno Valley. The center is the western gateway into Moreno 5-MILES Valley with excellent freeway access and visibility, anochored by Lowe’s,

Sports Authority, 99 Cent Only Store, Anna’s Linens, Buffalo Wild Wings, 3-MILES Starbucks and more. 1-MILE • Stoneridge Towne Centre – is a 431,272 SF power center that is strategically located on Highway 60 serving the eastern portion of Moreno Valley. This center is anchored by SuperTarget and Kohl’s.

• TS Marketplace – is a 113,171 SF neighborhood center located north of Hwy. 60 on Perris Blvd. in Moreno Valley. Anchored by Food 4 Less with TS MARKETPLACE DaVita, O’Reilly Auto Parts, Fitness 19, Starbucks, Subway and more.

N

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 5 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

AREA OVERVIEW | CONTINUED

RIVERSIDE COUNTY

Riverside County is a county located in the southern region of California • Riverside County is home to multiple company headquarters such as, bordered by Orange, San Bernardino, San Diego, and Imperial Counties Monster Beverages, West Coast Customs, Farmer Boys, Altura Credit Union, with the state of Arizona at its eastern border. Originating as part of San K&N Engineering, The Press-Enterprise, SpeakerCraft, and Xenos Books, to Bernardino and San Diego Counties, Riverside is made up of 28 cities, 48 name a few.

unincorporated communities, and 12 Indian reservations and spans over For more information please view; http://www.countyofriverside.us/ and https://en.wikipedia.org/wiki/Riverside_County,_California 7,300 square miles. Named for the city in which the county’s seat resides, the region is roughly the size of the State of New Jersey in total area.

TEMECULA DESERT HILL PREMIUM OUTLETS • With a current population of over 2.3 million it is the fourth-most populous county in California and 11th most in the nation. It is also among the fastest-growing areas of the United States in the past fifty years.

• Riverside County is a diverse region filled with both businesses and residence. As a central location to all of Southern California, the county offers affordable housing and easy access to outside markets allowing its citizens to work both inside and outside the county limits.

• Riverside County has also proved to be a great trade area. With a county government that is business friendly and a location that is TOP ATTRACTIONS TOP RETAIL SPOTS favorable to all Southern California markets, the region is an excellent • Lake Skinner • The Promenade choice for new and existing businesses. With a daytime working • Temecula Valley Wine Country • Moreno Valley Mall population of 707,138 the area offers a strong job base and a diverse • Joshua Tree • workforce. • County Fair and Date Festival • • Humana Challenge, the golf tournament • Ramona Creek formerly Bob Hope Classic • Crossings at Corona • Palm Desert • Eastvale Gateway • Coachella • Countryside Marketplace • Stage Coach • Desert Hill Premium Outlets

PALM SPRINGS LOS ANGELES SAN DIEGO LAS VEGAS SACRAMENTO

41 MILES 52 MILES 86 MILES 192 MILES 389 MILES 394MILES

6 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS AMENITIES MAP

TS MARKETPLACE

1-MILE

3-MILES

N TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

PROPERTY OVERVIEW

LOCATION BUILDING AREA TRAFFIC COUNTS 12190 - 12240 Perris Boulevard TS Marketplace consists of multiple retail buildings Perris Boulevard ±27,499 CPD Moreno Valley, CA 92557 totaling approximately 113,171 SF of net rentable area. Hemlock Avenue ±4,873 CPD Moreno Valley 60 Freeway ±107,913 CPD SITE FRONTAGE & ACCESS TS Marketplace is located at the NEC corner of The site benefits from street frontage of over 656 BUILT Perris Boulevard. and Hemlock Avenue in the city of linear feet along Perris Boulevard and 675 linear feet The property was built in 1989. Moreno Valley, California. along Hemlock Avenue. There are three (3) entrances off Perris Boulevard. and two (2) entrances off ZONING LAND AREA Hemlock Avenue, giving TS Marketplace a total of Per the city of Moreno Valley the subject site is The project consists of eight parcels totaling five (5) access points. currently zoned as CC – Commercial. approximately 10.4 acres or 453,024 square feet of land area. PARKING TS Marketplace provides 465 parking stalls which APN ADDRESS ACRES equates to 4.1 spaces per 1,000 SF parking ratio. 479-020-038 12190 Perris Boulevard 2.11 479-020-040 12210 Perris Boulevard 0.30 479-020-042 12230 Perris Boulevard 0.30 479-020-043 12240 Perris Boulevard 0.56 479-020-050 Parking Lot 3.72 479-020-051 12200 Perris Boulevard 1.22 479-020-052 Parking Lot 1.64 479-020-053 12220 Perris Boulevard 0.55 TOTALS 10.4 ACRES (453,024 SF)

8 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS MORENO VALLEY 60 FREEWAY

(±107,913 CPD)

TS MARKETPLACE

STARBUCKS HEMLOCK AVENUE (±4,873 CPD)

PERRIS BOULEVARD (±27,499 CPD)

N PARCEL MAP

N

10 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS TENANT ROSTER 240 230-C 230-B 220-B 220-A 210-B 210-A 200 190-R 190-Q 190-P 190-O 190-N 190-LM 190-K 190-IJ 190-GH 190-F 190-E 190-D 190-C 190-B 190-A2 190-A1 SUITE CELL TOWER Verizon Wireless O'Reillys Uhuru Menifee Supplements Fitness 19 DaVita 1,640 Ace Cash Checking Community First Tax Solution Food4Less Sam's Quality Cleaners AVAILABLE (190-Q) AVAILABLE (190-P) Subway Samy's Hair Salon CosmoProf urm mk ae2,448 #1 Nails Supreme Smoke &Vape Yun Massage Priceless Wireless Baskin Robbins (LOI) Smile Dental Fancy Hair &Nails Titan Insurance Little Caesars Starbucks TENANTS vial F2,244 Available SF oa F113,171 Total SF 10,420 53,301 2,040 2,040 14,150 1,020 1,224 1,600 1,600 1,600 1,020 1,020 1,020 1,564 6,016 1,428 1,428 1,428 1,424 1,224 1,224 1,292 SF 0 240

190-A1 190-A2 190-B 190-C 190-D 190-E 190-F

190-GH

190-IJ

190-K

190-LM

190-N 190-O 190-P 190-Q

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 190-R 200 220-A 230-B 220-B 230-C 210-A 210-B SITE PLAN N 11 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

TENANT OVERVIEW

ACE CASH CHECKING BASKIN ROBBINS DAVITA FITNESS 19 ACE Cash Express, Inc. is a leading Baskin-Robbins, the world’s largest DaVita, Inc., is a Fortune 500 company, Founded in 2003, Fitness 19 operates retailer of financial services, including chain of ice cream specialty shops, is is the parent company of DaVita Kidney fitness clubs that offers affordable, payday loans, installment loans, check named the top ice cream and frozen Care and DaVita Medical Group. DaVita family-friendly facilities and provide cashing, bill payment, wire transfer, dessert franchise in the United States by Kidney Care is the leading provider state-of-the-art cardio, strength and money orders and prepaid debit card Entrepreneur magazine’s 37th annual of kidney care in the US. Currently, free weight equipment. It has locations services. ACE is the largest owner and Franchise 500 ranking in 2016. Baskin- DaVita Kidney Care operates 2,350 in, California, Colorado, Georgia, Idaho, operator of check cashing in the US and Robbins creates and markets innovative, outpatient dialysis centers located in , , Kentucky, Maryland, the second largest owner and operator of premium hard scoop ice cream and soft the US, serving 188,000 patients. The Michigan, Minnesota, Missouri, Montana, short-term consumer loan stores in the serve, custom ice cream cakes and a full company operated medical groups and North Carolina, New Jersey, Nevada, New US. range of beverages, providing quality affiliated physician networks in California, York, Ohio, Oklahoma, Pennsylvania, and value to consumers at more than Nevada, New Mexico, Florida, Colorado South Carolina, South Dakota, Tennessee, Website www.aceexpress.com 7,600 retail shops in nearly 50 countries. and Washington and provides care to Texas, Virginia, Washington. Ownership Private Baskin-Robbins was founded in 1945 by approximately 749,000 patients. Headquarters Irving, TX two ice cream enthusiasts whose passion Website www.fitness19.com led to the creation of more than 1,300 Website www.davita.com Ownership Private ice cream flavors and a wide variety of Ownership NYSE: DVA Headquarters Glendale, AZ delicious treats. Headquartered in Canton, Revenue $15 B Mass., Baskin-Robbins is part of Capitalization $13 B Dunkin’ Brands Group, Inc. (NASDAQ: S&P Rating BB DNKN) family of companies. Locations 2,350 Employees 70,300 Website www.baskinrobbins.com Headquarters Denver, CO Ownership NASDAQ: DNKN Revenue $811 M Market Capitalization $4 B Locations 7,600+ Headquarters Canton, MA

12 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 13 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

14 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS TENANT OVERVIEW | CONTINUED

STARBUCKS

FOOD 4 LESS LITTLE CAESARS O’REILLY AUTO PARTS STARBUCKS Headquartered in Los Angeles, CA, Little Caesars Pizza, known for its An American auto parts retailer that Since 1971, Starbucks Coffee Company, Food 4 Less operates 131-price impact, HOT-N-READY pizza and famed Crazy provides automotive aftermarket parts, together with its subsidiaries, operates warehouse format under Bread, is the largest carryout-only tools, supplies equipment and accessories as a roaster, marketer, and retailer of the banners Food 4 Less in Southern pizza chain in the world with locations in the US. Serves both the professional specialty coffee worldwide. Today, with California, Illinois and Indianan and Foods in all 50 states and 18 countries and service providers and “do it yourself” more than 25,085 retail stores in 75 Co. in Central and . territories worldwide. Named “Best Value customers. countries, the company is the premier Food 4 Less is a subsidiary of Kroger Co. in America” for the eighth year in a row, roaster and retailer of specialty coffee in (NYSE:KR). Little Caesars products are made with Website www.oreillyauto.com the world. quality ingredients, such as fresh, never Ownership NASDAQ:ORLY Founded in 1883 in Cincinnati, OH, Kroger frozen, mozzarella and Muenster cheese, Revenue $9 B Website www.starbucks.com Co. operates retail food and drug stores, dough made fresh daily in every store Market Capitalization $24 B Ownership NASDAQ: SBUX multi-department stores, jewelry stores and sauce made from farm fresh crushed S&P Rating BBB+ Revenue $22 B and convenience stores. Banner brands tomatoes. Locations 4,829 Market Capitalization $85 B include: Kroger, , , Employees 74,580 S&P Rating A , Simple Truth and Simple Website www.littlecaesars.com Locations 25,085 Brands. The company operates 2,796 Ownership Private Employees 254,000 stores including 1,445 fuel centers, 784 Locations 4,301 Headquarters Seattle, WA convenience stores and 319 fine jewelry Headquarters Detroit, MI stores. Cincinnati, OH (KR).

Website www.food4less.com Ownership NYSE: KR Revenue $115 B Market Capitalization $27 B S&P Rating BBB Locations 131 (Food 4 Less) 2,796 (KR) Employees 443,000 (KR) Los Angeles, CA (Food 4 Less) Headquarters Cincinnati, OH (KR)

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 15 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

TENANT OVERVIEW | CONTINUED

NON-NATIONAL TENANTS

SUBWAY TITAN INSURANCE • #1 Nails Subway is a worldwide restaurant Titan is a leading discount car insurance • Community First Tax franchise that specializes in made-to- company and is affiliated with Solution order submarine sandwiches, wraps and Nationwide. Founded in 1926, Nationwide salads at more than 44,600 franchised Mutual Insurance is a Fortune 100 • CosmoProf locations serving 7.5 million sandwiches company based in Columbus, OH, is one • Fancy Hair & Nails a day. Founded 50 years ago, Subway of the largest and strongest diversified • Menifee Supplements remains a family-run business providing insurance and financial services easy access to vegetables, detailed organizations in the US and is rated A+ by • Priceless Wireless nutrition, dietary and healthy lifestyle both AM Best and S&P. • Sam’s Quality Cleaners information. • Samy’s Hair Salon Website www.titan.com Website www.subway.com Ownership Mutual • Smile Dental Ownership Private Revenue $27 B (Nationwide) • Supreme Smoke & Vape Locations 44,600 S&P Rating A+ • Uhuru Headquarters Milford, CT Employees 39,000 • Yun Massage Headquarters Columbus, OH

16 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 17 PENDING

TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

ASSUMPTIONS

GLOBAL AVAILABLE SPACE LEASING MARKET LOAN Loan Funding (as of Sep-17) $15,879,500 Analysis Period Occupancy and Absorption Loan-To-Price 65.00% Commencement Date September 1, 2017 Projected Available at 9/1/17 2,244 SF Funding Date Sep-17 End Date August 31, 2027 Currently Available as of 5/1/17 2,244 SF Maturity Date Aug-27 Term 10 Years Percentage Available at 5/1/17 1.98% Loan Term 10.0 Years Absorption Period 12 Month(s) Amortization Period 30 Years Area Measures Absorption Period Start Date September 1, 2017 Initial Interest Only Period (If Any) 36 Months Building Square Feet (SF) 113,171 SF First Absorption Occurs On September 1, 2018 Interest Rate 4.00% Last Absorption Occurs On September 1, 2018 Origination Fee on Initial Loan Funding 1.00% Growth Rates Consumer Price Index (CPI) 3.00% Financial Terms FINANCING Other Income Growth Rate 3.00% 2017 Monthly Market Rent $2.00 PSF For customized Debt Quotations, please contact: Operating Expenses 3.00% Rent Adjustment 3.00% Annually BRUCE FRANCIS SHAUN MOOTHART Real Estate Taxes 2.00% Lease Term 5 Years +1 602 735 1781 +1 949 509 2111 Market Rent Growth Expense Reimbursement Type NNN [3] Lic. BK-0018505 Lic. 01773201 CY 2018 - 3.00% Rent Abatements 0 Month(s) [email protected] [email protected] CBRE Debt & Equity Finance (DEF) is a division of CBRE Inc. In the US, DEF represents approximately 300 lenders CY 2019 - 3.00% Tenant Improvements ($/SF) $20.00 PSF including: banks, life insurance companies, pension funds, CMBS lenders and a variety of other lending sources. DEF also acts as a correspondent for over 200 life insurance companies. The Quote above is an approximation of CY 2020 - 3.00% Commissions 6.00% available terms. CY 2021 - 3.00% CY 2022 - 3.00% COSTS TO STABILIZE Tenant Improvements 44,880 CY 2023 - 3.00% EXPENSES Leasing Commissions 17,670 CY 2024 - 3.00% Misc. CapEx 150,000 CY 2025 - 3.00% Operating Expense Source 2017 Budget [4] Total Costs to Stabilize $212,550 CY 2026 - 3.00%

CY 2027+ - 3.00% Management Fee (% of EGR) 3.00% All market rent rates are stated on calendar-year basis. [1] General Vacancy Loss factor includes losses attributable to projected lease-

[5] up, rollover downtime, and fixturing downtime. The following tenants are Real Estate Taxes Reassessed Yes excluded from this loss factor for current and option terms only: DaVita, General Vacancy Loss 5.00% [1] Millage Rate 1.123% Fitness 19, Food4Less, Little Caesars, O’Reillys, Starbucks and Subway. [2] Capital Reserves do not inflate during the term of the analysis. Special Assessments $2,783 [3] Future tenants are assumed to reimburse the same as in-place. [2] Capital Reserves (CY 2017 Value) $0.15 PSF [4] Operating Expenses are based on the 2017 Budget. MISCELLEANOUS REVENUE [5] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.123190% plus special assessments of $2,783. Verizon Income (Year 1) $28,196 [6] [6] Verizon Wirless lease expires 10/18. Assumes antenna revenue remains in- place throughout the analysis and grows with the general inflation rate.

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

18 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS PENDING

ASSUMPTIONS | CONTINUED

SECOND GENERATION LEASING Food 4 Less Majors Shops Retention Ratio 75% 75% 75%

Financial Terms 2017 Monthly Market Rent $0.90 PSF See Rent Roll See Rent Roll Rent Adjustment 3.00% Annually 3.00% Annually 3.00% Annually Lease Term 10 Years 10 Years 5 Years Expense Reimbursement Type NNN NNN NNN

Tenanting Costs Rent Abatements New 3 Month(s) 3 Month(s) 3 Month(s) Renewal 0 Month(s) 0 Month(s) 0 Month(s) Weighted Average 0.75 Month(s) 0.75 Month(s) 0.75 Month(s)

Tenant Improvements ($/SF) New $25.00 PSF $20.00 PSF $15.00 PSF Renewal $5.00 PSF $4.00 PSF $3.00 PSF Weighted Average $10.00 PSF $8.00 PSF $6.00 PSF

Commissions [7] New 5.00% 6.00% 6.00% Renewal 3.00% 3.00% 3.00% Weighted Average 3.50% 3.75% 3.75%

Downtime New 9 Month(s) 9 Month(s) 6 Month(s) Weighted Average 2 Month(s) 2 Month(s) 2 Month(s)

[7] Leasing Commissions are calculated by applying 100% of the rates shown above for lease years 1-5, and 50% of the above rates for lease years 6 and beyond.

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 19 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

CASH FLOW

Fiscal Year 9/17-8/18 9/18-8/19 9/19-8/20 9/20-8/21 9/21-8/22 9/22-8/23 9/23-8/24 9/24-8/25 9/25-8/26 9/26-8/27 9/27-8/28 Physical Occupancy 97.69% 99.30% 98.58% 99.27% 100.00% 99.40% 99.16% 98.29% 99.36% 99.90% 99.52% Overall Economic Occupancy [1] 96.90% 98.02% 97.43% 97.69% 97.96% 97.69% 97.64% 97.02% 97.74% 97.65% 97.72% Total Operating Expenses PSF Per Year $5.40 $5.56 $5.71 $5.85 $6.00 $6.15 $6.30 $6.45 $6.62 $6.78 $6.96

REVENUES FY 2018 [2] Scheduled Base Rent $/SF/MO Gross Potential Rent $1.13 $1,531,619 $1,616,853 $1,713,442 $1,754,841 $1,799,417 $1,840,944 $1,904,629 $1,949,990 $1,974,947 $2,001,170 $2,022,205 Absorption & Turnover Vacancy (0.05) (64,047) (20,132) (41,629) (24,709) 0 (17,724) (27,525) (58,016) (24,009) (4,636) (16,290) Base Rent Abatements (0.00) (2,472) (6,709) (17,495) (9,266) 0 (6,702) (8,845) (21,372) (5,432) (7,248) (4,448) Total Scheduled Base Rent 1.08 1,465,100 1,590,012 1,654,318 1,720,866 1,799,417 1,816,518 1,868,259 1,870,602 1,945,506 1,989,286 2,001,467 Expense Reimbursements 0.43 585,014 615,902 616,740 641,957 669,106 678,792 693,891 699,242 730,076 750,745 764,849 Verizon Income 0.02 28,196 28,901 29,768 30,661 31,581 32,528 33,504 34,509 35,544 36,611 37,709 TOTAL GROSS REVENUE 1.53 2,078,310 2,234,815 2,300,826 2,393,484 2,500,104 2,527,838 2,595,654 2,604,353 2,711,126 2,776,642 2,804,025 General Vacancy Loss 0.00 0 (17,737) (1,142) (21,900) (51,056) (34,251) (25,655) 0 (32,400) (53,457) (43,595) EFFECTIVE GROSS REVENUE 1.53 2,078,310 2,217,078 2,299,684 2,371,584 2,449,048 2,493,587 2,569,999 2,604,353 2,678,726 2,723,185 2,760,430

OPERATING EXPENSES Admin Tax/License/Permit (0.00) (969) (998) (1,028) (1,059) (1,091) (1,123) (1,157) (1,192) (1,228) (1,264) (1,302) Admin Misc (0.00) (3,060) (3,152) (3,246) (3,344) (3,444) (3,547) (3,654) (3,763) (3,876) (3,993) (4,112) Cleaning (0.01) (18,972) (19,541) (20,127) (20,731) (21,353) (21,994) (22,654) (23,333) (24,033) (24,754) (25,497) Cleaning - Trash Removal (0.02) (26,194) (26,979) (27,789) (28,622) (29,481) (30,366) (31,277) (32,215) (33,181) (34,177) (35,202) Repairs & Maintenance (0.02) (32,160) (33,126) (34,120) (35,144) (36,197) (37,283) (38,401) (39,553) (40,740) (41,962) (43,222) Fire Life Safety (0.05) (71,543) (73,689) (75,899) (78,177) (80,522) (82,938) (85,426) (87,988) (90,628) (93,347) (96,148) Utilities (0.03) (46,756) (48,160) (49,605) (51,092) (52,625) (54,204) (55,830) (57,506) (59,231) (61,007) (62,838) Landscaping (0.02) (32,497) (33,472) (34,476) (35,511) (36,576) (37,673) (38,803) (39,967) (41,166) (42,401) (43,674) Parking Maintenance (0.02) (21,971) (22,630) (23,309) (24,008) (24,728) (25,470) (26,234) (27,021) (27,832) (28,667) (29,527) Management Fee (0.05) (62,349) (66,512) (68,991) (71,148) (73,471) (74,808) (77,100) (78,131) (80,362) (81,696) (82,813) Insurance (0.01) (14,256) (14,683) (15,123) (15,577) (16,045) (16,526) (17,022) (17,533) (18,059) (18,600) (19,158) Real Estate Taxes (0.21) (280,837) (286,398) (292,070) (297,856) (303,758) (309,777) (315,917) (322,180) (328,567) (335,083) (343,622) TOTAL OPERATING EXPENSES (0.45) (611,564) (629,340) (645,783) (662,269) (679,291) (695,709) (713,475) (730,382) (748,903) (766,951) (787,115) NET OPERATING INCOME 1.08 1,466,746 1,587,738 1,653,901 1,709,315 1,769,757 1,797,878 1,856,524 1,873,971 1,929,823 1,956,234 1,973,315

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements. [2] Based on 113,171 square feet.

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

20 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS CASH FLOW | CONTINUED

Fiscal Year 9/17-8/18 9/18-8/19 9/19-8/20 9/20-8/21 9/21-8/22 9/22-8/23 9/23-8/24 9/24-8/25 9/25-8/26 9/26-8/27 9/27-8/28 CAPITAL COSTS Tenant Improvements (0.01) (9,888) (71,719) (69,975) (33,576) 0 (29,001) (35,384) (85,493) (23,723) (22,954) (20,332) Leasing Commissions (0.01) (7,782) (38,792) (55,072) (29,169) 0 (21,098) (27,846) (67,283) (17,099) (22,817) (14,001) Capital Reserves (0.01) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) (16,976) TOTAL CAPITAL COSTS (0.03) (34,646) (127,487) (142,023) (79,721) (16,976) (67,075) (80,206) (169,752) (57,798) (62,747) (51,309) OPERATING CASH FLOW $1.05 $1,432,100 $1,460,251 $1,511,878 $1,629,594 $1,752,781 $1,730,803 $1,776,318 $1,704,219 $1,872,025 $1,893,487 $1,922,006

ACQUISITION & RESIDUAL SALE Purchase Price ($24,430,000) 0 0 0 0 0 0 0 0 0 0 Tenant Improvements (44,880) 0 44,880 0 0 0 0 0 0 0 0 Leasing Commissions (17,670) 0 17,670 0 0 0 0 0 0 0 0 All Cash Net Residual Value [3] 0 0 0 0 0 0 0 0 0 0 29,751,518 IRR CASH FLOW BEFORE DEBT ($24,492,550) $1,432,100 $1,522,801 $1,511,878 $1,629,594 $1,752,781 $1,730,803 $1,776,318 $1,704,219 $1,872,025 $31,645,005 8.21%

MARKET LOAN [4] Loan Funding / Payoff 15,879,500 0 0 0 0 0 0 0 0 0 (13,665,814) Loan Fees (158,795) 0 0 0 0 0 0 0 0 0 0 Leveraged Annual Debt Service 0 (635,180) (635,180) (635,180) (909,734) (909,734) (909,734) (909,734) (909,734) (909,734) (909,734) IRR CASH FLOW AFTER DEBT ($8,771,845) $796,920 $887,621 $876,698 $719,860 $843,047 $821,069 $866,584 $794,485 $962,291 $17,069,458 13.94%

NOI Return 5.99% 6.48% 6.75% 6.98% 7.23% 7.34% 7.58% 7.65% 7.88% 7.99% UNLEVERAGED Cash Return 5.85% 6.22% 6.17% 6.65% 7.16% 7.07% 7.25% 6.96% 7.64% 7.73% LEVERAGED Cash Return [5] 9.48% 10.86% 11.61% 9.12% 9.80% 10.12% 10.79% 10.99% 11.63% 11.93% Rolling - All Cash IRR 3.58% 6.90% 7.68% 8.18% 8.17% 8.38% 8.25% 8.33% 8.28% 8.21% Rolling - Leveraged IRR 0.96% 11.11% 13.43% 14.69% 14.58% 14.92% 14.48% 14.48% 14.23% 13.94%

[3] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 6.50% and applying a 2.00% Cost of Sale. [4] Market Debt based on 65% Loan-to-Value, 4.00% Interest Rate, 30-Year Amortization, 36 Months Interest Only and 1.00% Loan Fee. [5] Leveraged Cash Return is based on NOI less debt service divided by equity including costs to stabilize.

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 21 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

RENT ROLL

Square % of Lease Term Rental Rates Recovery Market Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Market Rent 190-A1 Starbucks 1,564 1.38% Mar-2006 Feb-2021 Current $3,910 $2.50 $46,920 $30.00 NNN(No Mgmt)+10%Ad(Strbx)(CAP) Option $3.00 NNN (Starbucks) Notes: T has 2-5 yr opts at $4,301 & $4,738.92 /mo, respectively. T has a 6% non-cumulative cap on CAM, excl. tax & ins (hitting, modeled). Right of first offer to lease any space in the center. T has right to terminate no earlier than 240 days & no later than 180 days prior to 2/18. T has Prop 13 protection resulting from more than 2 sales (not modeled).

Mar-2021 Feb-2031 FUTURE $4,301 $2.75 $51,612 $33.00 NNN(No Mgmt)+10%Ad(Strbx)(CAP) Market OPTION Mar-2026 $4,739 $3.03 $56,867 $36.36 $3.00 NNN (Starbucks) Notes: Assumes tenant exercises two (2) - five (5) year options with no leasing costs.

190-A2 Little Caesars 1,292 1.14% Jun-2006 May-2021 Current $3,553 $2.75 $42,636 $33.00 NNN(No Mgmt)+10%Ad(Caesar)CAP Market $2.75 NNN (Lil Caesars)

Notes: Tenant has one (1) - five (5) year option at $3,908.30 /mo. Tenant has a five percent (5%) non-cumulative cap on CAM, excludes insurance and taxes (hitting, modeled).

190-B Titan Insurance 1,224 1.08% Aug-2010 Jul-2018 Current $1,530 $1.25 $18,360 $15.00 NNN+5% BR (Titan) Market $2.00 NNN (Titan)

190-C Fancy Hair & Nails 1,020 0.90% Aug-2014 Jul-2019 Current $1,630 $1.60 $19,560 $19.18 NNN+15% Ad (Fancy Hair) Market $2.00 NNN (Fancy Hair & Nails)

190-D Smile Dental 1,428 1.26% Jan-2005 Dec-2019 Current $2,519 $1.76 $30,226 $21.17 NNN+5% BR (SmileDental) Market Jan-2019 $2,594 $1.82 $31,130 $21.80 $2.00 NNN (Smile Dental)

190-E Baskin Robbins 1,424 1.26% Jul-2017 Aug-2027 Current $2,805 $1.97 $33,663 $23.64 NNN+15% Ad Option PENDING Sep-2022 $3,085 $2.17 $37,024 $26.00 $2.00 NNN (AVAILABLE) Notes: Lease is under negotiation. Assumes tenant is in-place as of 7/17 with seller to credit any outstanding leasing costs, including free rent. Tenant has two (2) - five (5) year options at 15% increase over prior rent (modeled 1st option below).

Sep-2027 Aug-2032 FUTURE $3,549 $2.49 $42,584 $29.90 NNN+15% Ad Market OPTION $2.00 NNN (AVAILABLE) Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

22 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS RENT ROLL | CONTINUED

Square % of Lease Term Rental Rates Recovery Market Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Market Rent 190-F Priceless Wireless 1,020 0.90% Nov-2014 Apr-2020 Current $1,407 $1.38 $16,881 $16.55 NNN+5% BR (PricelessWireless) Market May-2018 $1,449 $1.42 $17,391 $17.05 $2.00 NNN May-2019 $1,493 $1.46 $17,911 $17.56 (Priceless Wireless)

190-GH Yun Massage 2,040 1.80% Nov-2014 Oct-2019 Current $2,381 $1.17 $28,568 $14.00 NNN+5% BR (YunMassage) Market Nov-2017 $2,451 $1.20 $29,417 $14.42 $2.00 NNN Nov-2018 $2,526 $1.24 $30,314 $14.86 (AVAILABLE)

190-IJ Supreme Smoke & 2,448 2.16% Jan-2005 Nov-2022 Current $2,913 $1.19 $34,957 $14.28 NNN+5% BR (SuperiorSmoke) Market Vape Dec-2017 $4,284 $1.75 $51,408 $21.00 $1.75 NNN Dec-2018 $4,413 $1.80 $52,950 $21.63 (Supreme Smoke & Va) Dec-2019 $4,545 $1.86 $54,541 $22.28 Dec-2020 $4,682 $1.91 $56,182 $22.95 Dec-2021 $4,823 $1.97 $57,871 $23.64

190-K #1 Nails 1,428 1.26% Sep-2014 Aug-2019 Current $2,420 $1.69 $29,040 $20.34 NNN+5% BR (#1Nails) Market Sep-2018 $2,493 $1.75 $29,917 $20.95 $2.00 NNN (#1 Nails)

190-LM CosmoProf 2,040 1.80% Jan-2005 Dec-2020 Current $3,308 $1.62 $39,702 $19.46 NNN+5% BR (Cosmo) Market Jan-2018 $3,375 $1.65 $40,494 $19.85 $1.75 NNN (CosmoProf) Jan-2019 $3,443 $1.69 $41,310 $20.25 Jan-2020 $3,511 $1.72 $42,126 $20.65

190-N Samy’s Hair Salon 1,020 0.90% Oct-2014 Jan-2020 Current $1,677 $1.64 $20,127 $19.73 NNN+5% BR (SamyHair) Market Feb-2018 $1,727 $1.69 $20,726 $20.32 $2.00 NNN Feb-2019 $1,779 $1.74 $21,349 $20.93 (Samy’s Hair Salon)

190-O Subway 1,224 1.08% Jun-2004 Jul-2019 Current $2,403 $1.96 $28,840 $23.56 NNN+10% Ad (Subway) Market Aug-2018 $2,476 $2.02 $29,706 $24.27 $2.00 NNN (Subway)

Notes: Tenant has one (1) - five (5) year option at FMV, no less than prior rent.

190-P AVAILABLE 1,020 0.90% Sep-2018 Aug-2023 Sep-2018 $2,101 $2.06 $25,214 $24.72 NNN+5% BR (Ste 190-P) Market (190-P) Sep-2019 $2,164 $2.12 $25,969 $25.46 $2.00 NNN Sep-2020 $2,230 $2.19 $26,755 $26.23 (Suite 190-P) Sep-2021 $2,296 $2.25 $27,550 $27.01 Sep-2022 $2,365 $2.32 $28,376 $27.82

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 23 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

RENT ROLL | CONTINUED

Square % of Lease Term Rental Rates Recovery Market Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Market Rent 190-Q AVAILABLE 1,224 1.08% Sep-2018 Aug-2023 Sep-2018 $2,521 $2.06 $30,257 $24.72 NNN+15% Ad Market (190-Q) Sep-2019 $2,597 $2.12 $31,163 $25.46 $2.00 NNN Sep-2020 $2,675 $2.19 $32,106 $26.23 (AVAILABLE) Sep-2021 $2,755 $2.25 $33,060 $27.01 Sep-2022 $2,838 $2.32 $34,052 $27.82

190-R Sam’s Quality 1,428 1.26% Jan-2005 Dec-2018 Current $2,133 $1.49 $25,593 $17.92 NNN+5% BR (SamsCleaner) Market Cleaners $2.00 NNN (Sam’s Quality Clea)

200 Food4Less 53,301 47.10% Aug-1988 Dec-2023 Current $35,171 $0.66 $422,056 $7.92 NNN(No Mgmt)+4% Ad (F4L) Option Jan-2019 $38,688 $0.73 $464,252 $8.71 $0.90 NNN (Food4Less) Notes: Tenant has three (3) - five (5) year options at $42,557.33, $46,813.08 and $51,494.42 /mo, respectively (modeled). Tenant has right of first offer and refusal to purchase premises and additional premises. Tenant has right to go dark. Tenant occupies fuel pad (19,691 SF), which is not included in total SF.

Jan-2024 Dec-2028 FUTURE $42,557 $0.80 $510,688 $9.58 NNN(No Mgmt)+4% Ad (F4L) Option OPTION $0.90 NNN (Food4Less) Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

Jan-2029 Dec-2033 FUTURE $46,813 $0.88 $561,757 $10.54 NNN(No Mgmt)+4% Ad (F4L) Option OPTION $0.90 NNN (Food4Less) Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

210-A Community First 1,640 1.45% Dec-2015 Apr-2021 Current $3,801 $2.32 $45,608 $27.81 NNN+15% Ad (Community1st) Market Tax Solution May-2018 $3,914 $2.39 $46,970 $28.64 $2.35 NNN May-2019 $4,032 $2.46 $48,380 $29.50 (Community1st) May-2020 $4,153 $2.53 $49,840 $30.39

210-B Ace Cash Checking 1,600 1.41% Jun-2014 May-2019 Current $2,080 $1.30 $24,960 $15.60 NNN+10% Ad (AceCash) Market $2.00 NNN (Ace Cash Checking)

24 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS RENT ROLL | CONTINUED

Square % of Lease Term Rental Rates Recovery Market Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Market Rent 220-A DaVita 14,150 12.50% Jan-2017 Dec-2027 Current $21,225 $1.50 $254,700 $18.00 NNN (DaVita) Option Jan-2022 $23,348 $1.65 $280,170 $19.80 $1.50 NNN (DaVita) Major Notes: Tenant has three (3) - five (5) year options at $23,819, $26,295 and $29,031 /mo, respectively (modeled). Tenant has right of first offer to lease adjacent space.

Jan-2028 Dec-2032 FUTURE $21,225 $1.50 $254,700 $18.00 NNN (DaVita) Option OPTION $1.50 NNN (DaVita) Major Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

220-B Fitness 19 10,420 9.21% Apr-2013 Mar-2023 Current $12,500 $1.20 $150,000 $14.40 NNN (F19) CAP Option Apr-2018 $13,746 $1.32 $164,949 $15.83 $1.50 NNN (F19) Major Notes: Tenant has two (2) - five (5) year options at $15,125 and $16,641.67 /mo, respectively (modeled below). Tenant has a cap on controllable expenses at the lessor of 5% over the prior calendar year on a cumulative basis or 25% over prior calendar year on a non-cumulative basis (hitting, modeled).

Apr-2023 Mar-2028 FUTURE $15,125 $1.45 $181,500 $17.42 NNN (F19) CAP Option OPTION $1.50 NNN (F19) Major Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

Apr-2028 Mar-2033 FUTURE $16,642 $1.60 $199,700 $19.17 NNN (F19) CAP Market OPTION $1.50 NNN (F19) Major Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

230-B Menifee 1,600 1.41% Jul-2014 Dec-2019 Current $2,288 $1.43 $27,456 $17.16 NNN+5% BR (Menifee) Market Supplements Oct-2017 $2,368 $1.48 $28,416 $17.76 $2.00 NNN Oct-2018 $2,432 $1.52 $29,184 $18.24 (Menifee Supplement)

Notes: Assumes seller to credit free base rent on 10/18.

230-C Uhuru 1,600 1.41% Dec-2009 Mar-2018 Current $1,600 $1.00 $19,200 $12.00 GROSS Market $2.00 NNN (Uhuru)

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 25 TS MARKETPLACE | 12190 - 12240 PERRIS BLVD, MORENO VALLEY, CA

RENT ROLL | CONTINUED

Square % of Lease Term Rental Rates Recovery Market Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Market Rent 240 O’Reillys 6,016 5.32% Jul-1999 Jul-2024 Current $7,200 $1.20 $86,400 $14.36 NNN+5%Ad (O’Reilly) CAP P13 Option Aug-2019 $7,776 $1.29 $93,308 $15.51 $1.75 NNN (O’Reillys) Notes: Tenant has three (3) - five (5) year options at $8,398.08, $9,069.92 and $9,795.51 /mo, respectively (modeled below). Tenant has a 5% cumulative cap on all expenses (hitting, modeled). Tenant has Prop 13 protection for any tax increase resulting from a sale (modeled).

Aug-2024 Jul-2029 FUTURE $8,398 $1.40 $100,777 $16.75 NNN+5%Ad (O’Reilly) CAP P13 Option OPTION $1.75 NNN (O’Reillys) Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

Aug-2029 Jul-2034 FUTURE $9,070 $1.51 $108,839 $18.09 NNN+5%Ad (O’Reilly) CAP P13 Option OPTION $1.75 NNN (O’Reillys) Notes: Assumes tenant exercises one (1) - five (5) year option with no leasing costs.

TOTALS / AVERAGES 113,171 $120,454 $1.09 $1,445,453 $13.03

OCCUPIED SF 110,927 98.0% AVAILABLE SF 2,244 2.0% TOTAL SF 113,171 100.0%

26 CAPITAL MARKETS | NATIONAL RETAIL PARTNERS Disclaimer Affiliated Business Disclosure This Memorandum contains select information pertaining to the Property and CBRE, Inc. operates within a global family of companies with many subsidiaries and the Owner, and does not purport to be all-inclusive or contain all or part of the related entities (each an “Affiliate”) engaging in a broad range of commercial real information which prospective investors may require to evaluate a purchase of the estate businesses including, but not limited to, brokerage services, property and Property. The information contained in this Memorandum has been obtained from facilities management, valuation, investment fund management and development. sources believed to be reliable, but has not been verified for accuracy, completeness, At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow or fitness for any particular purpose. All information is presented “as is” without Company, may have or represent clients who have competing interests in the same representation or warranty of any kind. Such information includes estimates transaction. For example, Affiliates or their clients may have or express an interest based on forward-looking assumptions relating to the general economy, market in the property described in this Memorandum (the “Property”), and may be the conditions, competition and other factors which are subject to uncertainty and may successful bidder for the Property. Your receipt of this Memorandum constitutes not represent the current or future performance of the Property. All references your acknowledgement of that possibility and your agreement that neither CBRE, to acreages, square footages, and other measurements are approximations. This Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest Memorandum describes certain documents, including leases and other materials, in or involvement in the sale or purchase of the Property. In all instances, however, summary form. These summaries may not be complete nor accurate descriptions CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), of the full agreements referenced. Additional information and an opportunity to at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, inspect the Property may be made available to qualified prospective purchasers. Inc. and its Affiliates will conduct their respective businesses in a manner consistent You are advised to independently verify the accuracy and completeness of all with the law and all fiduciary duties owed to their respective client(s). summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS Confidentiality Agreement MEMORANDUM IS SOLELY AT YOUR OWN RISK.

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is The Owner expressly reserves the right, at its sole discretion, to reject any or all a confidential Memorandum solely for your limited use and benefit in determining expressions of interest or offers to purchase the Property, and/or to terminate whether you desire to express further interest in the acquisition of the Property, discussions at any time with or without notice to you. All offers, counteroffers, and (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have contents to any third party without the prior written authorization of the owner any legal commitment or obligation except as set forth in a fully executed, definitive of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this purchase and sale agreement delivered by the Owner. Memorandum in any manner detrimental to the Owner or CBRE, Inc. Photos herein are the property of their respective owners and use of these images If after reviewing this Memorandum, you have no further interest in purchasing the without the express written consent of the owner is prohibited. Property, kindly return it to CBRE, Inc.

CAPITAL MARKETS | NATIONAL RETAIL PARTNERS 27 EXCLUSIVELY MARKETED BY

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JOHN READ PHILIP D. VOORHEES KIRK BRUMMER ALAN KRUEGER SHAUN MOOTHART +1 949 725 8606 +1 949 725 8521 +1 949 725 8418 +1 909 418 2062 +1 949 509 2111 Lic. 01359444 Lic. 01252096 Lic. 01218518 Lic. 00880814 Lic. 01773201 [email protected] [email protected] [email protected] [email protected] [email protected]

PRESTON FETROW SEAN HEITZLER +1 949 725 8538 +1 949 725 8468 Lic. 00923282 Lic. 02025087 [email protected] [email protected] NRP-WEST TEAM Philip D. Voorhees (Team Leader) Preston Fetrow John Read Kirk Brummer Megan Wood Jimmy Slusher Matt Burson James Tyrrell Sean Heitzler For all of our available listings, please visit: WWW.CBRE.COM/NRPWEST

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