v FOR SALE ALBERTSON’S LLC – 3500 Panama Lane Bakersfield, CA 93313 Property Information • 4.9% CAP RATE • $8,700,000 • Land and building lease • 23 years remaining with 1.75% annual increases in rent • Tenant pays expenses direct Rudy Blankenship Senior Director Lic. #00515550 +1 559 433 3525 [email protected] 9 River Park Place E Suite 101 Fresno, CA 93720 phone: +1 559 433 3500 paccra.com Real Property Photo Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance PACCOM Realty Advisors, Inc., Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. v FOR SALE ALBERTSON’S LLC – 3500 Panama Lane Bakersfield, CA 93313 AGENDA CONFIDENTIALITY AGREEMENT Pg. 2 DEMOGRAPHICS Pg. 7 EXECUTIVE SUMMARY Pg. 3 PHOTOS • Offering Summary • Albertson’s (Real property photos) Pg. 8 • Bank of America Lease Abstract • Site Description • Surrounding Retailers Pg. 9 - 10 BAKERSFIELD ALBERTSON’S LLC TENANT OVERVIEW Pg. 4 • Overview, Economy, Top Employers Pg. 11 AERIALS Pg. 12 • Map of Bakersfield & Site Location Pg. 5 BROKER BIOGRAPHY • Birds Eye Site Location & Immediate Area Amenities Pg. 6 Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance PACCOM Realty Advisors, Inc., Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. v FOR SALE ALBERTSON’S LLC – 3500 Panama Lane Bakersfield, CA 93313 CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the property located at 3500 Panama Lane, Bakersfield, CA 93313, Kern County (“Property”). This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Cushman & Wakefield | Pacific Commercial Realty Advisors. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner or Cushman & Wakefield | Pacific Commercial Realty Advisors, nor any of their respective directors, officers, affiliates or representatives are any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluation a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Cushman & Wakefield | Pacific Commercial Realty Advisors. You also agree that you will not sue this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Cushman & Wakefield | Pacific Commercial Realty Advisors. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Cushman & Wakefield | Pacific Commercial Realty Advisors. Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance PACCOM Realty Advisors, Inc., Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page | 2 v FOR SALE ALBERTSON’S LLC – 3500 Panama Lane Bakersfield, CA 93313 EXECUTIVE SUMMARY The Albertson’s investment offers an investor the second largest grocery producer located in a regional retail area of Bakersfield, California with surrounding tenants like Taco Bell, Carls Jr., Wells Fargo, Walgreens, Pizza Hut, Rite Aid, House of Wings, McDonald’s, and AutoZone. The average household income within a five-mile radius is about $74,709 per year. The lease has approximately 23-years remaining with stepped increases in the rent every year beginning March 2019. OFFERING SUMMARY PRICE $8,700,000 NET INCOME $427,690 (03.01.2019) CAP RATE 4.9% LEASE Land and building lease ALBERTSON’S LLC LEASE ABSTRACT COMMENCEMENT March 2015 INSURANCE Lessee LEASE TERM 25 Years – 23 years remaining, plus 2, 10 yr renewal terms CAM CHARGES Lessee MARCH 2019 RENT $35,640 per month / $427,690 per year ** INSURANCE Lessee RENT INCREASES 1.75% every year (beginning March 1, 2019) TAXES Lessee ** Landlord will supplement the rent difference between today’s rent and the increase on February 28, 2019 SITE DESCRIPTION LOCATION 3500 Panama Lane, Kern County, Bakersfield, CA 93313 SITE SIZE Land: ±5 acres | Building: ±51,000 ZONING C-1, Neighborhood Commercial According to panel 06029C2300E (effective on 09/25/2008) the property is not located in a Special Flood Hazard Area on the Federal Emergency FLOOD ZONE INFORMATION Management Agency (FEMA) “Flood Map Service Center”. Web Site: https://msc.fema.gov/portal/search FLOOD ZONE X Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance PACCOM Realty Advisors, Inc., Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Back to Agenda Page | 3 v FOR SALE ALBERTSON’S LLC – 3500 Panama Lane Bakersfield, CA 93313 ALBERTSON’S LLC – Tenant Overview In 1939, Joe Albertson, a former Safeway district manager, took $5,000 he saved and $7,500 Albertson’s LLC Quick Stats he borrowed from his wife’s Aunt Bertie, and partnered with L.S. Skaggs to open his first Type Private Albertsons store on 16th and State Streets in Boise, Idaho. Joe knew the keys of running a really great store, and it was all about working hard for the customers: give them the products Industry Retail / Grocery they want, at a fair price, with lots of tender, loving care. Joe was innovative, too. He had one of the first in-store magazine racks in the country along with a scratch bakery and fresh ice Founded July 21, 1939, Boise, Idaho cream made in store. He worked hard, seven days a week on his vision to build his company, and through his inspiring work ethic and tireless determination to run the best store, the first Founders Joe Albertson store thrived. Just two years later, he had opened two other stores in neighboring communities, and grew the fledgling company’s sales to over $1 million by the end of 1941. Headquarters Boise, Idaho, US Number