OFFERING MEMORANDUM

ARCO/ampm Oceanside, CA | San Diego County

www.preservewestcapital.com TABLE OF CONTENTS

PROPERTY HIGHLIGHTS 1 AERIALS 5

PROPERTY OVERVIEW 2 ABOUT THE AREA 6

ABOUT THE TENANT 3 DEMOGRAPHICS 8

SITE PLAN 4

Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property Putnam Daily described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed Partner financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and [email protected] make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, CA RE License #01750064 terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Michael Maffia of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Managing Partner without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller 415.373.4060 and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation [email protected] and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01340853 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.

www.preservewestcapital.com PROPERTY HIGHLIGHTS

• Brand New Absolute NNN 15-Year Lease to ARCO Franchisee • Nearby Anchor Tenants Include Walmart Supercenter, Target, Trader Joe’s, Smart & Final Extra!, CVS, BevMo!, Stater Bros, - Rare 3% Annual Rental Escalations Beginning in Year 6 and More - No Landlord Maintenance Responsibilities • Approximately 10 Miles from Camp Pendleton Marine Corps Base • Offering Includes Improvements, Providing Tax Advantage - Among Largest Marine Corps Bases in U.S. Through Depreciation - Approximately 40,000 Military Personnel and 8,000 • Robust Demographics within 5 Mile Radius Civilian Employees - Population of 209,181 • Economic Impact of $6.1 Billion - Average Household Income of $96,311 • Part of San Diego-Carlsbad MSA • Excellent Access and Visibility at Signalized Hard Corner - Population of 3.3 Million within Oceanside Blvd Retail Corridor - 2nd Largest MSA by Population in California - Combined AADT of 38,200 - MSA GDP of $219.4 Billion - Less than 1 Mile from I-5 Arterial – 210,000 AADT • Approximately 37 Miles from Downtown San Diego • Prominent Retail Location Neighboring Numerous Major Shopping Centers

PRESERVE WEST CAPITAL | 1 PROPERTY OVERVIEW

PRICE $6,340,000 5.30% CAP Rate

Location Annual Rent

The property is located at 1990 Oceanside Boulevard in Oceanside, California. Years Annual Rent Return Years 1-5 $336,000 5.30% Lot Size Year 6 $346,080 5.46% Approximately 0.52 acres or 22,651 square feet. Year 7 $356,462 5.62% Year 8 $367,156 5.79% Improvements Year 9 $378,171 5.96% Year 10 $389,516 6.14% A 2,417 square foot convenience store for ampm and a gas station with 4 pumps serving 8 fueling positions for ARCO. Year 11 $401,202 6.33% Year 12 $413,238 6.52% Parking Year 13 $425,635 6.71% Year 14 $438,404 6.91% There is ample parking available on site. Year 15 $451,556 7.12% Year 16 (Option 1) $465,103 7.34% Lease Year 17 (Option 1) $479,056 7.56% Leased to Highland Cargo, Inc. and guaranteed by Madeep Singh for fifteen years from Year 18 (Option 1) $493,427 7.78% July 15, 2020 through July 31, 2035 at an initial annual rent of $336,000. There are two Year 19 (Option 1) $508,230 8.02% (2) five-year options to renew the lease. Rent is to increase by 3% annually beginning in Year 20 (Option 1) $523,477 8.26% year 6; rent for the option periods shall be the greater of fair market rent or the increase of 3% over the rent for the final year of the term. The lease is absolute net with tenant Year 21 (Option 2) $539,181 8.50% responsible for all taxes, insurance, and maintenance. Year 22 (Option 2) $555,357 8.76% Year 23 (Option 2) $572,018 9.02% Financing Year 24 (Option 2) $589,178 9.29% Year 25 (Option 2) $606,853 9.57% This property will be delivered free and clear of permanent financing.

PRESERVE WEST CAPITAL | 2 ABOUT THE TENANT

SITE

ARCO/ampm is a brand of gasoline stations and convenience stores with more than 1,200 locations in the U.S. and Mexico. The company is known for its relatively low fuel prices compared to competitors; ARCO stations make up more than half of all California gas stations with the lowest fuel prices. Highland Cargo, Inc. is a franchisee of ARCO/ ampm. Madeep Singh, the guarantor, has 16 years' experience operating fuel stations and convenience stores; this property is his fourth location.

PRESERVE WEST CAPITAL | 3 SITE PLAN

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PRESERVE WEST CAPITAL | 4 AERIAL SOUTHWEST VIEW

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Crouch Street ceanside ight Rail Station Specialty Health Center ABOUT THE AREA General Overview Oceanside (population 175,762) is the third-largest city in San Diego County. The city is located approximately 18 miles from downtown San Diego and approximately 84 miles from Los Angeles. The city is part of the San Diego-Carlsbad Metropolitan Statistical Area and the San Diego-Tijuana international metropolitan conurbation, the largest shared between the U.S. and Mexico by population and the fifth- largest international metropolitan area in the world. The region benefits from vibrant trade between the region, and the San Diego area has grown to become a vibrant international economic hub. The region had a gross domestic product of $219.4 billion in 2018. In addition to its close proximity to Mexico, the region is also home to the Port of San Diego, one of the highest volume ports in the U.S. with more than 3 million tons of cargo annually and total export value of $18.1 million for the region. The region also benefits from the second- largest quantity of cruise ship traffic in California, generating $2 million in revenue annually. The region is home to numerous colleges and universities, including University of California San Diego, San Diego State University, and the University of San Diego. Other major components of the San Diego regional economy include military/defense, technology, biomedical research, life sciences, aerospace, cybersecurity, manufacturing, shipbuilding, unmanned systems, and more. The region is home to the largest concentration SITE of military assets in the world and the largest military workforce in the country, representing one out of every five jobs in the region and contributing an estimated $25.2 billion to the regional economy. The area also benefits from a robust tourism industry, with more than 35 million visitors to the region annually. The city is home to numerous major research institutes and scientific startups, with scientific research and development contributing more than $14.4 billion to the local economy. High-tech startups are also a prominent component of the local economy, with more than $1.3 billion in annual venture capital investments in the region. Major companies operating in the region include Boeing, Lockheed Martin, Honeywell, Northrop Grumman, Planck Aerosystems, Broadcom, Samsung, Peregrine Semiconductor, General Atomics, ESET North America, Sentek Global, Booz Allen Hamilton, FICO, Raytheon, General Dynamics, Eli Lilly, Genentech, Thermo Fisher Scientific, Johnson & Johnson, Pfizer, GlaxoSmithCline, Hunter Industries, WD-40, Qualcomm, Intuit, and more.

PRESERVE WEST CAPITAL | 7 ABOUT THE AREA

Site Information The subject property is prominently located with excellent access and visibility at the signalized intersection of Crouch Street (7,500 AADT) and Oceanside Blvd (30,800 AADT) less than one mile from its junction with the I-5 arterial (210,000 AADT). The property benefits from robust demographics within a 5 mile radius with a total population of 209,181 and average household income of $96,311. Median home value within 1 mile of the site is $621,014.

The property benefits from a prominent retail location in close proximity to major retail tenants and shopping centers. Nearby retail SITE centers include Best Plaza, anchored by CVS and Big Lots; Oceanside Town & Country, featuring Smart & Final Extra!, West Marine, and Crunch Fitness; Pacific Coast Plaza, with tenants including Walmart Supercenter, Stater Bros, Best Buy, and Cost Plus World Market; El Camino North, featuring Ross, Burlington, Petco, LA Fitness, ULTA, and Michaels; Fire Mountain Center, anchored by Trader Joe’s and BevMo!; Camino Town & Country, anchored by Target and WinCo Foods; Carlsbad Plaza, featuring Vons & CVS; Carlsbad Plaza South, anchored by Sprouts Farmer’s Market; and North County Plaza, with tenants including Tuesday Morning, Dollar Tree, & Marshalls. Other major tenants in the surrounding area include Walmart Neighborhood Market, El Super, Rite Aid, and more.

In addition, the property is located approximately 10 miles from Camp Pendleton, a major base for the Marine Corps and one of the largest Marine bases in the U.S.. The base employs more than 40,000 military personnel and approximately 8,000 civilian employees, with an estimated economic impact of approximately $6.1 billion.

PRESERVE WEST CAPITAL | 8 DEMOGRAPHICS

1990 Oceanside Blvd | Oceanside, CA 92054

Major Employers # of in San Diego County Employees

Naval Base San Diego 34,185

TOTAL POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME Sharp Health Care 18,364

209,181 $654,811 $96,311 County of San Diego 17,413

Scripps Health 14,941

Population Summary 1 Mile 1 3 Miles 5 Miles San Diego Unified School 13,815 2010 Total Population 15,469 101,745 194,816 District 2020 Total Population 16,373 105,309 209,181 Qualcomm Inc. 11,800 2025 Total Population 16,792 103,492 215,487 City of San Diego 11,462 2020-2025 Annual Rate 0.51% 0.69% 0.60% Average Household Income Kaiser Permanente 9,606 2020 $85,203 $90,365 $96,311 8,932 2025 $93.737 $100,719 $108,119 UC San Diego Health Average Home Value

2020 $654,811 $642,726 $608,850 2025 $741,703 $730,474 $689,137

PRESERVE WEST CAPITAL | 9 Putnam Daily Michael Maffia Partner Managing Partner 415.445.5107 415.373.4060 [email protected] [email protected] CA RE License #01750064 CA RE License #01340853