INVESTMENT ADVISORS Exclusively Marketed By

CAPITAL MARKETS | NET LEASE INVESTMENT OFFERING MEMORANDUM

303 E FOOTHILL BLVD, AZUSA, CA 91702

SANDS INVESTMENT GROUP INVESTMENT ADVISORS Exclusively Marketed By:

SANDS INVESTMENT GROUP ANDY CHANA KAVEH EBRAHAMI ZACH MARTIN SANDS INVESTMENT GROUP 310.853.1316 310.853.1426 310.626.1852 2701 Ocean Park Blvd., Ste 140 Lic. 01896459 Lic. 01896322 Lic. 02044335 Santa Monica, CA 90405 [email protected] [email protected] [email protected] www.SIGnnn.com

© 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its SANDS INVESTMENT GROUP accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy For all of our available listings, please visit: and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these www.SIGnnn.com projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your 2 CAPITAL MARKETS | SANDS INVESTMENTtax, financial and GROUP legal advisors before making any real estate purchase and transaction. TABLE OF CONTENTS

6 INVESTMENT OVERVIEW 10 AREA OVERVIEW 16 PROPERTY OVERVIEW 18 TENANT SUMMARY 22 FINANCIALS Investment Summary City Overview Property Description Tenant Profiles Lease Abstract Investment Highlights County Overview Parcel Map Cash Flow Site Plan Rent Roll

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 3 16 miles 8 miles 8 miles 30 miles 25 miles 15 miles 15 miles 24 miles 65 miles 23 miles

CURRENT DOWNTOWN DEVELOPMENT CURRENT DOWNTOWN DEVELOPMENT Los Angeles Metro Rail Gold Line A2: Costanzo Investments A2: Four-Story Mixed Use Project Costanzo Investments 60,000 to 70,000 Sq. Ft. of Residential CURRENT DOWNTOWN DEVELOPMENT 13,000 to 15,000 Sq. Ft. of Retail Four-Story Mixed Use Project 60,000 to 70,000 Sq. Ft. of Residential Ninth Street “Metro Walk” 13,000 to 15,000 Sq. Ft. of Retail 803-813 N. Dalton Avenue Ninth Street ROSEDALE The Olson Company “Metro Walk” 803-813 N. Dalton Avenue DEVELOPMENT A2: Three Story Residential Development The Olson Company Costanzo(1250 Investments HOMES) Azusa 30 Townhome Units Intermodal Three Story Residential Development Four-Story Mixed Use Project Parking Azusa 30 Townhome Units 60,000 to 70,000 Sq. Ft. of Residential Target Structure Intermodal 13,000 to 15,000 Sq. Ft. of Retail Parking APU/Citrus Target Structure Ninth Street “Metro Walk” College Azusa APU/Citrus 803-813 N. Dalton Avenue Station Downtown College The Olson Company Station Azusa Station Downtown CURRENT DOWNTOWNThree Story Residential DEVELOPMENTDevelopment Station Azusa 30 Townhome Units Intermodal Parking Target Structure APU/Citrus A2: College Avenue Soladano Azusa Costanzo Investments Station Azusa Light Downtown Avenue Soladano & Water Smart & Final Extra Station Four-Story Mixed Use Project 303 W.Azusa Foothill Light Boulevard 60,000 to 70,000 Sq. Ft. of Residential

Alameda Avenue Alameda & Water Dalton Avenue Dalton Smart & Final Extra 13,000 to 15,000 Sq. Ft. of Retail City Hall 29,996 Sq. Ft. Grocery Store 303 W. Foothill Boulevard Alameda Avenue Alameda Ninth Street “Metro Walk” City Hall Avenue Dalton 29,996 Sq. Ft. Grocery Store AZUSA N Dalton803-813 Avenue N. Dalton Avenue 8,800 CPD Avenue San Gabriel E Foothill Blvd 28,500 CPD The Olson Company Avenue Azusa DOWTOWN San Gabriel Avenue San Gabriel Soladano Avenue Soladano

Foothill Boulevard Avenue Azusa STATION Three Story ResidentialAZUSA Development CITY Block 37: Azusa Light Azusa 30 Townhome Units HALL The Charles Company Intermodal Block 37: Foothill Boulevard & Water Smart & Final Extra Block 36: Parking The Charles Company 303 W. Foothill Boulevard Four-Story Mixed-Use Project Target Structure Serrano Development Group

Alameda Avenue Alameda +/- 66 Residential Units Dalton Avenue Dalton Block 36: City Hall +/- 10,800 Sq. Ft. of Retail Four-Story Mixed-Use Project 29,996 Sq. Ft. Grocery Store APU/Citrus Four-Story Mixed Use Project Serrano Development Group +/- 66 Residential Units College +/- 120 Residential Units +/- 10,800 Sq. Ft. of Retail Azusa Station +/- 29,847 Sq. Ft. of Retail Four-Story Mixed Use Project San Gabriel Avenue San Gabriel

Azusa Avenue Azusa Downtown Five-Screen Laemmle Theater +/- 120 Residential Units Station +/- 29,847 Sq. Ft. of Retail Block 37: Foothill Boulevard Five-Screen Laemmle Theater The Charles Company 619 N. San Gabriel Avenue Block 36: Four-Story Mixed-Use Project Three-Story Mixed Use Project 619 N. San Gabriel Avenue Serrano Development Group +/- 66 Residential Units 6 Residential Units +/- 10,800 Sq. Ft. of Retail 965 Sq. Ft. of Retail Three-Story Mixed Use Project Four-Story Mixed Use Project

Soladano Avenue Soladano 6 Residential Units +/- 120 Residential Units 965 Sq. Ft. of Retail +/- 29,847 Sq. Ft. ofAzusa Retail Light Five-Screen Laemmle& Theater Water Smart & Final Extra 303 W. Foothill Boulevard Alameda Avenue Alameda 619 N. San Gabriel Avenue City Hall Avenue Dalton 29,996 Sq.City Ft. of AzusaGrocery Store For other development opportunities outside the downtown, please contact the 213 E Foothill Blvd, Azusa, CA 91702 Three-Story Mixed Use Project (626) 812-5102 Economic Development division at (626) 812-5102 [email protected] City of Azusa For other development opportunities outside the downtown, please contact the 6 Residential Units Avenue San Gabriel 213 E Foothill Blvd, Azusa, CA 91702 Azusa Avenue Azusa 965 Sq. Ft. of Retail (626) 812-5102 Economic Development division at (626) 812-5102 [email protected] Block 37: Foothill Boulevard The Charles Company Block 36: Four-Story Mixed-Use Project Serrano Development Group +/- 66 Residential Units +/- 10,800 Sq. Ft. of Retail City of Azusa For other development opportunities outsideFour-Story the downtown, Mixed please Use Project contact the 213 E Foothill Blvd, Azusa, CA 91702 +/- 120 Residential Units (626) 812-5102 Economic Development division at (626) 812-5102 [email protected] +/- 29,847 Sq. Ft. of Retail Five-Screen Laemmle Theater

619 N. San Gabriel Avenue

Three-Story Mixed Use Project 6 Residential Units 965 Sq. Ft. of Retail

City of Azusa For other development opportunities outside the downtown, please contact the 213 E Foothill Blvd, Azusa, CA 91702 (626) 812-5102 Economic Development division at (626) 812-5102 [email protected] 23 miles 50 miles

INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS

OFFERING PRICE $10,704,700 ESTABLISHED, HIGH-CREDIT, SINGLE-TENANT NET LEASED (STNL) GROCERY STORE INVESTMENT CAP RATE 4.95% •• Smart & Final has a long-term presence in California, with the Azusa $529,884 NOI location consisting of a brand new developed built-to-suit building and the only regional credit grocery banner serving the Azusa market CURRENT OCCUPANCY 100% •• Long-Term NNN Lease – Smart & Final lease commenced November 2017 LEASE TERM 15 Years with 15 years of initial term and 4-5 year options following with rent increases throughout both the initial term and options to extend OPTION TERMS Four (4) - Five (5) Year Options •• Corporate lease with Smart and Final Inc, (NYSE: SFS) founded in 1914 in 29,438 SF TOTAL BUILDING AREA Los Angeles with 323+ stores throughout California, Oregon, Washington, Arizona, Nevada and Idaho and over $4.3B in annual sales TOTAL LAND AREA 65,340 SF (1.50 Acres) •• Smart & Final is one of the most rapidly expanding banners amongst the WEBSITE www.SIGnnn.com/listings grocery retailers in the country, with 14 new stores in 2017 and an increase in total sales of 5.3% from prior year

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 5 INVESTMENT HIGHLIGHTS (continued)

BEST-OF -CLASS NNN INVESTMENT WITH INCOME GROWTH

•• The combination of the build-to-suit development and long-term lease demonstrate the commitment by Smart & Final to be the number one grocery retailer within the Azusa market at this location •• Strong corporate 15 year triple-net lease with rent increase equal to the lesser of CPI or 10% at year eleven and the start of each of the four option terms •• With the embedded rent increases, the Net Operating Income is projected to grow more than $159,000 (17%) over the anticipated hold period, providing a hedge against inflation compared to many net lease investments with flat, zero rent growth lease structures

LOW MANAGEMENT OVERSIGHT

•• Single tenant, triple-net (NNN) lease with Smart & Final; landlord is responsible for roof and structural repairs, however, the brand new development consists of a 15 year roof and structure warranty making this a simple, passive investment for out-of-town investors •• High barriers to entry market – Smart & Final is surrounded by •• Brand new development, limiting any near-term deferred maintenance 310,000 residents within a five-mile radius with little room for new retail on the building in which the property owner would be responsible for development minimizing other grocery retail competition to enter the market •• With a brand new 15-year lease term from a growing ‘tech-proof • tenant’, the property owner is significantly reduced to lowest probability of • Freeway 210 Proximity – Smart & Final is located within 1-mile from having any re-tenanting risk 210 Foothill Freeway (210,000+ CPD) considered one of the most heavily traveled commuter freeways in Southern California

HIGH IDENTITY, PREMIER RETAIL LOCATION •• Several brand new residential developments consisting of more than 400 units are approved within a 5-block radius of Smart & Final •• Located directly off E Foothill Boulevard (35,000+ cars per day) at the which will bring new residents to the immediate area relying on Smart & signalized corner of N Dalton Avenue in the center of Azusa – the trade Final for daily grocery needs area’s primary commuter route and primary arterials in east Los • Angeles County and the Inland Empire • Smart & Final is located two blocks west of Azusa Pacific University which consists of 10,000 students and three blocks from Citrus College with enrollment of 12,600 students

6 CAPITAL MARKETS | SANDS INVESTMENT GROUP STRONG, DENSELY POPULATED LOS ANGELES COUNTY DEMOGRAPHICS IDEAL 1031 EXCHANGE OPPORTUNITY

•• More than 27,258 people in a 1-mlie radius with an Average Household •• Brand new build-to-suit building for Smart & Final makes this Income exceeding $58,670 location a true pride of ownership NNN leased investment •• New long-term, 15-yeear NNN lease with an established, high-credit •• More than 133,345 people in a 3-mlie radius with an Average House- grocery retail tenant making the property internet resistant hold Income exceeding $69,500 •• Property is being delivered free and clear of debt, sellers can •• More than 309,900 people in a 5-mlie radius with an Average House- accommodate a 1031 Exchange buyer in need of a quick identification hold Income exceeding $72,800 and closing period

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 7 Azusa Pacific University

AREA OVERVIEW Azuza, CA

The city of Azusa is located on the south side front range of the San Gabriel Mountains, and can be seen within a 30-mile radius. The population was 50,126 at the 2017 census, up from 46,346 at the 2010 census. Azusa is located along historic Route 66, which passes through the city on Foothill Boulevard and Alosta Avenue.

Rosedale Community • Azusa is strategically located for businesses near three major freeways, Interstate 210 which runs directly along the south side of the city limits, Interstate 605 which runs north and south is located on western boundary of the city, and Interstate 10 which is located about 4 miles south of the city.

• Azusa Pacific University is situated right in the center of the city and is organized into three colleges and seven schools. APU has a total student population of nearly 10,100 and an academic and adminis- trative staff of nearly 3,000.

• The city transportation is accessed by three main arterials, Azusa Avenue, Foothill Boulevard, and San Gabriel Avenue. Neighboring communities include Glendora, Covina, Baldwin Park, and Monrovia.

• The Metro Gold Line light rail service stops at Azusa Downtown station adjacent to Azusa city hall and Zillow Home Values the line terminates at Azusa Pacific University/Citrus College station at the eastern border of Downtown * EST. $453,397 Azusa. In March 2016, Azusa became the eastern terminus of the first phase of the Foothill Extension www.zillow.com/azusa-ca/home-values/ which previously operated between Los Angeles Union Station and Sierra Madre Villa station in eastern Pasadena.

• Downtown Azusa is the site of several new residential developments consisting of both brand new DEMOGRAPHICS AZUSA apartment and condominium buildings, several of which have begun construction and others approved 2017 Estimated Population 48,498 for development to start. 2022 Projected Population 50,850

2017 Average Age 29

DISTANCE TO 2017 Households 12,394

2022 Households 12,995 Los Angeles Palm Springs San Diego Las Vegas San Francisco 2017 Average Housing Value $342,000

2017 Average Household Income $56,569

2022 Average Household Income $73,550 25 miles 90 miles 120 miles 250 miles 400 miles *Source: datausa.io,

8 CAPITAL MARKETS | SANDS INVESTMENT GROUP regional map

1 mile

2 miles

N SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 9 Downtown LA

AREA OVERVIEW (continued)

Los Angeles County The City of Los Angeles holds many distinctions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s collection of stars to career opportunities like those presented in the expanding tech industry, Los Angeles is the place to be. Universal Studios Hollywood • Los Angeles is on the leading edge of several growth industries. L.A. County, with more than 87,000 jobs in the fashion industry, has surpassed New York’s fashion district workforce. The L.A. five-county area also has more than 700,000 people at work in health services/biomedical activities and 190,000 people in aerospace/technology.

• Los Angeles County is the first in the nation to reach 10 million residents. If the Los Angeles five-county area were a state, it would surpass all states in total population size with the exception of California, Texas, New York and Florida. The County of Los Angeles alone would be the seventh most populated state.

• Leisure and hospitality is a leading industry in Los Angeles, employing 510,500 in 2015. In 2016, the leisure and hospitality sector added 21,400 jobs in Los Angeles County, representing a 4.4% year-over-year increase in employment. DEMOGRAPHICS LA COUNTY

2018 Estimated Population 10,237,502 • In addition to its signature industries – entertainment, tourism, and fashion-its enormous and diversified economy is home to the largest port complex in the Western Hemisphere and the 2023 Projected Population 13,275,694 largest number of manufacturing jobs of any county in the country. 2018 Average Age 36

• From the high fashion shops on Rodeo Drive to the chic boutiques of the beach cities, Los 2018 Households 3,290,437 Angeles offers retail shopping for every style. Top shopping enclaves include Rodeo Drive, 2023 Households 3,976,585 the Fashion District in Downtown L.A., The Grove, Beverly Center, Hollywood & Highland, Americana at Brand in Glendale, Westfield Century City, Robertson Boulevard, Melrose 2018 Average Housing Value $574,434 Avenue, The Citadel Outlets, Third Street Promenade and Santa Monica Place. 2018 Average Household Income $83,656

• As the sixth largest hotel market in the U.S., Los Angeles offers 1,008 hotels with more than 2023 Average Household Income $88,993 98,600 hotel rooms. With multiple new hotels opening in 2017 and 2018, Los Angeles’ hotel community continues to grow along with the tourism industry. 2018 Housing Units 3,520,627 *Source: census.gov

IF LA COUNTY WERE ITS OWN COUNTRY, IT WOULD RANK IN THE TOP 15 LARGEST ECONOMIES IN THE WORLD, WITH A GROSS COUNTY PRODUCT UPWARDS OF $1 TRILLION. 10 CAPITAL MARKETS | SANDS INVESTMENT GROUP Regional Map

AREA OVERVIEW (continued) Los Angeles County

5 Miles FORTUNE 500 COMPANIES LOCATION RANK

The Walt Disney Company Burbank 61

10 Miles DirecTV El Segundo 98

Occidental Petroleum Corporation Los Angeles 116

Amgen, Inc. Thousand Oaks 154

Edison International Rosemead 222

15 Miles Jacobs Engineering Group, Inc. Pasadena 237

Health Net, Inc. Woodland Hills 254

Reliance Steel & Aluminum Los Angeles 299 N

AECOM Technology Corporation Los Angeles 332

TOP TOURIST ATTRACTIONS TOP RETAIL DESTINATIONS Oaktree Capital Group, LLC Los Angeles 354 Hollywood Walk of Fame The Grove CBRE, Inc. Los Angeles 363 Beverly Hills Rodeo Drive 3rd Street Promenade Hollywood Sign Rodeo Drive Molina Healthcare, Inc. Long Beach 393

Santa Monica Pier Westfield Culver City Avery Dennison Corporation Glendale 398 Griffith Observatory Plaza El Segundo Sunset Boulevard Promenade at Howard Hughes Center Getty Center South Bay Galleria Los Angeles County Museum of Art Malibu Country Mart TOP EMPLOYERS REVENUE University Studios Malibu Village Hollywood Bowl Hawthorne Gateway The Walt Disney, Co $48B

Walt Disney Concert Hall Downtown Manhattan Beach Ingram Micro, Inc. $44B LA COUNTY IS HOME TO 60+ COLLEGES AND UNIVERSITIES, DirecTV $32B AND BOASTS 7 OF THE NATION’S LEADING UNIVERSITIES Qualcomm, Inc. $26B

Amgen, Inc. $19B

IF LA COUNTY WERE ITS OWN COUNTRY, IT WOULD RANK IN THE TOP 15 LARGEST ECONOMIES IN THE WORLD, WITH A GROSS COUNTY PRODUCT UPWARDS OF $1 TRILLION. SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 11 CURRENT DOWNTOWN DEVELOPMENT

A2: Costanzo Investments

Four-Story Mixed Use Project 60,000 to 70,000 Sq. Ft. of Residential 13,000 to 15,000 Sq. Ft. of Retail Ninth Street CURRENT“Metro Walk” DOWNTOWN DEVELOPMENT 803-813 N. Dalton Avenue The Olson Company

Three Story Residential Development Azusa 30 Townhome Units CURRENT DOWNTOWNIntermodal DEVELOPMENT Parking A2: Target Structure Costanzo Investments

APU/Citrus Four-Story Mixed Use Project ROSEDALE College 60,000 to 70,000 Sq. Ft. of Residential DEVELOPMENT Azusa Station A2: 13,000 to 15,000 Sq. Ft. of Retail (1250 HOMES) Costanzo InvestmentsDowntown Station Ninth Street “Metro Walk” Four-Story Mixed Use Project CURRENT DOWNTOWN DEVELOPMENT803-813 N. Dalton Avenue 60,000 to 70,000 Sq. Ft.AZUSA of Residential GREENS The Olson Company 13,000 to 15,000 Sq. Ft.COUNTRY of Retail CLUB Three Story Residential Development Ninth Street Los Angeles Metro Rail “Metro Walk” Azusa 30 Townhome Units 803-813 N. Dalton Avenue Intermodal Gold Line Parking The Olson Company Avenue Soladano Target A2: Structure Azusa Light Costanzo Investments Three Story Residential Development APU/Citrus & Water Azusa 30 TownhomeSmart Units & Final Extra College Intermodal Four-Story Mixed Use Project 303 W. Foothill Boulevard Azusa Station Alameda Avenue Alameda

Parking Avenue Dalton 60,000 to 70,000 Sq. Ft. of Residential City Hall Downtown Target Structure 13,000 to 15,000 Sq. Ft. of Retail 29,996 Sq. Ft. GroceryAZUSA Store Station Ninth StreetDOWTOWNAPU/Citrus “Metro Walk”

San Gabriel Avenue San Gabriel STATIONCollege 803-813 N. Dalton Avenue Azusa Avenue Azusa Azusa Station The Olson Company Downtown Block 37: Foothill Boulevard Station Three Story Residential Development The Charles Company AZUSA CITY Azusa 30 Townhome Units

Block 36: HALL Intermodal Avenue Soladano Four-Story Mixed-Use Project Serrano Development Group Parking +/- 66 Residential Units AzusaTarget Light Structure +/- 10,800 Sq. Ft. of Retail & Water Smart & Final Extra Four-Story Mixed Use Project APU/Citrus 303 W. Foothill Boulevard +/- 120 Residential Units College Alameda Avenue Alameda Dalton Avenue Dalton +/- 29,847 Sq. Ft. of Retail Avenue Soladano Azusa City Hall Station 29,996 Sq. Ft. Grocery Store Azusa Light Five-Screen Laemmle Theater Downtown Station & Water Smart & Final Extra E Foothill Blvd 28,500 CPD San Gabriel Avenue San Gabriel

619 N. San Gabriel Avenue 303 W. Foothill Boulevard Avenue Azusa Alameda Avenue Alameda City Hall Avenue Dalton Three-Story Mixed Use Project 29,996Block 37: Sq. Ft. Grocery Store Foothill Boulevard 6 Residential Units The Charles Company

965 Sq. Ft. of Retail Avenue San Gabriel Block 36: Azusa Avenue Azusa Four-Story Mixed-Use Project Serrano Development Group Avenue Soladano +/- 66 Residential Units Foothill Boulevard Block 37: +/- 10,800 Sq. Ft. of RetailAzusa Light Four-Story Mixed Use Project The Charles Company & Water CAPITAL MARKETS+/- 120 | ResidentialSANDS INVESTMENT Units GROUP Smart & Final Extra 12 Block 36: +/- 29,847 Sq. Ft. of Retail 303 W. Foothill Boulevard

Four-Story Mixed-Use Project Avenue Alameda Serrano Development Group Five-Screen Laemmle TheaterCity Hall Avenue Dalton City of Azusa +/- 66 Residential Units For other development opportunities outside the downtown, please contact the 29,996 Sq. Ft. Grocery Store 213 E Foothill Blvd, Azusa,+/- CA 10,800 91702 Sq. Ft. of Retail (626) 812-5102 EconomicFour-Story Development Mixed Use division Project at (626) 812-5102 [email protected] +/- 120 Residential619 Units N. San Gabriel Avenue San Gabriel Avenue San Gabriel

+/- 29,847 Sq. Ft. of Retail Avenue Azusa Five-Screen LaemmleThree-Story Theater Mixed Use Project 6 Residential Units Block 37: Foothill Boulevard 965 Sq. Ft. of Retail The Charles Company 619 N. San Gabriel Avenue Block 36: Four-Story Mixed-Use Project Serrano Development Group Three-Story Mixed Use Project +/- 66 Residential Units 6 Residential Units +/- 10,800 Sq. Ft. of Retail 965 Sq. Ft. of Retail Four-Story Mixed Use Project +/- 120 Residential Units +/- 29,847 Sq. Ft. of Retail City of Azusa For other development opportunities outside the downtown, please contact the 213 E Foothill Blvd, Azusa, CA 91702 Five-Screen Laemmle Theater (626) 812-5102 Economic Development division at (626) 812-5102 [email protected] 619 N. San Gabriel Avenue

City of Azusa For other development opportunities outside the downtown, please contact the 213 E Foothill Blvd, Azusa, CA 91702 Three-Story Mixed Use Project (626) 812-5102 Economic Development division6 Residential at (626) Units 812-5102 [email protected] 965 Sq. Ft. of Retail

LOCATION BUILDING AREA PARKING 303 East Foothill Boulevard The subject consists of one (1) standalone Smart & Final provides an abundance of Azusa, California 91702 retail building totalling approximately 29,438 parking with a total of 78 parking stalls SF of net rentable area. which equates to 3.82 spaces per 1,000 FRONTAGE & ACCESS SF parking ratio. SITE

Smart & Final is located on the NEC of Access points into the Smart & Final parking TRAFFIC COUNTS East Foothill Blvd and Harris Street. lot include a total of three (3) access points, one (1) entrance off E Foothill Blvd, one (1) E Foothill Blvd 28,500 CPD LAND AREA off N Dalton Ave, and one (1) off N Soldano N Dalton Avenue 8,800 CPD Ave, all consisting of wide and convenient Smart & Final consists of two (2) ingress and egress access points. N Soldano Ave 5,800 CPD parcels totaling approximately 1.50 acres or 65,340 SF of land area. The site benefits from approximately 240 Parcel #: 8608-029-046 & 047 feet of linear frontage along E Foothill Blvd BUILT providing exceptional visibility from the trade areas busiest street. Smart & Final was built in 2017.

ZONING PARCEL MAP Per the City of Azusa the subject site is zoned as CDCC-Downtown.

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 13 TENANT PROFILE

Smart & Final is a chain of warehouse-style food and supply stores based in Commerce, California, which Website SmartandFinal.com developed through a series of mergers and expansions. The oldest of the combined companies, Hellman- Ownership Public (NYSE: SFS) Haas Grocery, was founded in 1871 in Los Angeles. The company has expanded to over 300+ stores in the Western United States and northern Mexico. While Smart & Final stores target both the food-service Revenue $3.55B and household markets, the company also operates Cash & Carry Smart Foodservice stores, which markets to foodservice professionals. In 2012, Apollo sold its stake in Smart & Final to Ares Management. Market Cap $394M Smart & Final went public in 2014 trading on the NYSE: SFS. In 2015, Smart & Final purchased the leases Locations 323+ on 32 locations previously operated by Haggen Food & Pharmacy. In 2017, the company added 14 new Smart & Final Extra! stores and four new Cash & Carry Smart Foodservice stores, ending the year with a Employees 10,000+ total of 323 stores. Headquarters Commerce, CA

14 CAPITAL MARKETS | SANDS INVESTMENT GROUP SMART & FINAL TIMELINE

• Founded in 1871, by Herman W. Hellman, Jacob Haas and Bernard Cohn, as Hellman-Haas Grocery Co. Purchased by Abraham Haas (the original owner of the Haas Building in Downtown Los Angeles) and Jacob Baruch, and renamed Haas, Baruch & Co in 1889. By 1895, following introduction of one of the first private label store brands, Iris, the grocer’s sales reached $2 million. The business continued to expand with Southern California’s growing population for the next two decades. • Founded in 1912, the Santa Ana Grocery Company mainly supplied feed and grain to local farmers. In 1914, J. S. “Jim” Smart, a banker from Saginaw, Michigan, and H. D. “Hildane” Final bought the company and changed the name to Smart & Final Wholesale Grocers. By 1919, annual sales for Smart & Final had reached $10 million. During the fierce competition among expanding grocers in the 1920s, the company introduced a self-serve concept to replace reliance on clerks to fetch goods. This was called “cash and carry.” • In 1998, it acquired Portland, Oregon-based United Grocers Cash & Carry, which was renamed Cash & Carry Smart Foodservice. These stores are concentrated in the Pacific Northwest. In 2007, Smart & Final acquired 35 Henry’s Farmers Markets in California and Sun Harvest Markets in Texas for about $166 million. In 2007, the company was acquired by Apollo Global Management. • In 2012, Apollo sold its stake in Smart & Final to Ares Management. Smart & Final went public in 2014. In 2015, Smart & Final purchased the leases on 32 locations previously operated by Haggen Food & Pharmacy. In 2017, Smart & Final opened 14 new locations.

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 15 Smart & Final 29,438 SF N DALTON AVE N DALTON

16 CAPITAL MARKETS | SANDS INVESTMENT GROUP E FOOTHILL BLVD site plan

Smart & Final 29,438 SF N DALTON AVE N DALTON

E FOOTHILL BLVD 17 LEASE ABSTRACT

Tenant: Smart & Final Stores LLC, a California limited liability company Address: 303 E. Foothill Boulevard, Azusa, CA Date of Lease: December 22, 2016 Rent Commencement: November 1, 2017 Lease Expiration: October 31, 2032 Renewal Options: Four (4) - Five (5) Year Options Rent / Yr: Current - 10/31/2027 - $529,884.00 11/1/2027 - 10/31/2032 - $582,872.40 Permitted Use: Tenant shall use the Demised Premises for a Smart & Final Grocery Store CAM: Tenant shall keep all common areas, both interior and exterior, in good repair and condition, including the landscaping, lighting, parking lot and outside areas around the Premises at Tenant’s sole cost and expense. Insurance: Tenant repsonsible for all insurance reimbursing Landlord upon receipt of insurance payments. Real Estate Taxes: Tenant shall reimburse Landlord upon receipt of most recent property tax bill statement. Landlord shall pay to the appropriate governmental authorities, on or before the due date all taxes, assessments, levies or related charges due and payable to said authorities. Utilities: Tenant shall promtly pay all charges when due all bills for utilities, including electricity, water, gas, telephone service, sewer service, and any and all other utilities furnished to the Premises directly to the utility providing such service. Repairs & Maintenance: Landlord shall maintain, repair and replace in first class condition and order all structural elements of the Premises, including but not limited to, the roof structure, supports and covering, foundation and bearing walls. Landlord shall also be responsible for any replacement of the HVAC system or any of its major components or parts, although Tenant shall provide some seasonal maintence as defined within the lease. Tenant shall maintain the entire Premises which includes the Common Area and Building in good order, condition and repair, ordinary wear and tear and damage by casualty excepted. Assignment & Tenant may assign this Lease or sublet all or any part of the Premises with written approval from Landlord, which approval shall Subletting: not be unreasonably withheld, delayed or conditioned.

18 CAPITAL MARKETS | SANDS INVESTMENT GROUP CASH FLOW

FISCAL YEAR ENDING - October 31 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Physical Occupancy 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Overall Economic Occupany [1] 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Total Operating Expenses PSF / Year $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

REVENUES FY 2018

Scheduled Base Rent $/SF/MO [2]

Gross Potential Rent $1.50 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $582,872 $582,872 $582,872

Exspense Reimbursements NNN NNN NNN NNN NNN NNN NNN NNN NNN NNN NNN NNN

Base Rent Abatments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Scheduled Base Rent 1.50 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $582,872 $582,872 $582,872

TOTAL GROSS REVENUE 1.50 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $582,872 $582,872 $582,872

General Vacancy Loss 0.00 0 0 0 0 0 0 0 0 0 0 0

EFFECTIVE GROSS REVENUE 1.50 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $582,872 $582,872 $582,872

NET OPERATING INCOME 1.50 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $529,884 $582,872 $582,872 $582,872

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements. [2] Based on 29,438 square feet. [3] Tenant is responsible for all CAM.

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 19 RENT ROLL

LEASE TERM RENTAL RATES SQUARE % of RECOVERY SUITE TENANT NAME FEET PROPERTY TYPE BEGIN END BEGIN MONTHLY PSF ANNUALLY PSF

A Smart & Final 29,438 100.00% 11/1/2017 10/31/2032 Current $44,157.00 $1.50 $529,884.00 $18.00 NNN

11/1/2027 $48,572.70 $1.65 $582,872.40 $19.80

OPTION 1 11/1/2037 $53,429.97 $1.82 $641,159.64 $21.78

OPTION 2 11/1/2042 $57,437.22 $1.95 $689,246.61 $23.41

OPTION 3 11/1/2047 $61,745.01 $2.10 $740,940.11 $25.17

OPTION 4 11/1/2052 $66,375.88 $2.25 $796,510.62 $27.06

Tenant has a total of Four (4) - Five (5) year Options to Renew, with the first Five Options at a rent increase of Lesser CPI or 10% at start of each Option

OCCUPIED SF 29,438 100.00%

AVAILABLE SF 0 0.00%

TOTAL SF 29,438 100.00%

20 CAPITAL MARKETS | SANDS INVESTMENT GROUP SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 21 22 CAPITAL MARKETS | SANDS INVESTMENT GROUP By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. The Owner / Seller of the property reserved the right, at its sole discretion, to reject any or all offers or expressions of interest, in any way or form they are submitted to purchase the property from potential buyers. The Owner / Seller shall have no obligations whatsoever nor any legal commitment or obligation to any potential buyer(s) and / or entity reviewing this offering memorandum for potential purchase unless and until written agreement(s) for the purchase of the property have been fully executed and approved by Owner / Seller. This Offering Memorandum is the property of Sands Investment Group. All Property Photographs and Property Aerial Photographs are not to be used without the written authorization from Sands Investment Group. By receipt of this Offering Memorandum, you agree that you will not use this Offering Memorandum nor any of the contents contained herein without first the written authorization from both Sands Investment Group and the Owner in any manner detrimental to the interest of the Owner or Sands Investment Group. All information contained herein is to remain strictly confidential, and should upon review of this Offering Memorandum should you choose to not have further interest in purchasing the property, kindly return this offering memorandum to Sands investment Group along with any and all other additional material about the property that may have been sent. CONFIDENTIALITY AGREEMENT The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. DISCLAIMER © 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

SMART & FINAL EXTRA | 303 E FOOTHILL BLVD, AZUSA, CA 23 INVESTMENT ADVISORS Exclusively Marketed By:

© 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are SANDS INVESTMENT GROUP used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.