OFFERING MEMORANDUM 26407 HIGHWAY 33 FELLOWS/TAFT, CA OFFERING MEMORANDUM DISCLAIMER This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 26407 Highway 33, Felows, CA (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of Alexander Development Group (“Managing Member”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential For more information, please contact Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other one of the following individuals: factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the Jeff Andrew information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Executive Vice President/Principal Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered +1 661 633 3827 on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate jeff.andrew @paccra.com the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement. TABLE OF CONTENTS Executive Summary ................................................. 4 Property Description ................................................5 Tenancy Overview .....................................................6 Financial Summary ..................................................14 Lease Comparables ................................................. 15 Sales Comparables .................................................. 17 Area Overview .........................................................19 26407 Highway 33 | Fellows, CA OFFERING SUMMARY $2,180,480 EXECUTIVE ASKING PRICE SUMMARY The subject property, as referenced above, is located on the east and west sides of Hwy. 33, five 9.0% miles northwest of the City of Taft and is further identified as Assessor’s Parcel Numbers (APN) CAP RATE 298-060-50 and 298-060-51. The property consists of a 22,500 SF office-warehouse located on a 37.16 acres site. 2 PUBLICLY TRADED TENANTS 12.90%* ACTUAL LEVERAGED RETURN $193,246.23* YEAR NOI 100% OCCUPANCY *BASED ON 70% LTV AT 3.78% OVER 20 YEARS 26407 Highway 33 | Fellows, CA PROPERTY DESCRIPTION The subject property, as referenced above, is located on the east and west sides of Hwy. 33, five miles northwest of the City of Taft and is further identified as Assessor’s Parcel Numbers (APN) 298-060-50 and 298-060-51. The property consists of a 22,500 SF office-warehouse located on a 37.16 acres site. Building Size: ±22,500 SF Warehouse Area: ±18,000 SF HEADER Optional Callout Office Area: ±2,280 SF Mezzanine Area: ±4,500 SF Site Area: ±37.71 Net Acres Clear Height: 24’ Loading: (4) 16’x20’ Roll-Up Doors Parking: 34 Surface Parking Spaces Year Built: 1984 APN(S): 298-060-51 & 52 Electricity, gas, and septic tank. Water is provided Utilities: by a private well. Foundation: Concrete Slab Sprinkler: Yes NR(5), FPS, Natural Resource 5 Acres, Floodplain Zoning: HEADER Secondary Combining District Optional Callout Opportunity Zone: Yes 26407 Highway 33 | Fellows, CA TENANCY OVERVIEW WESCO DISTRIBUTION Company: WESCO Distribution WESCO Distribution was formed in 1922 as a subsidiary of the Westinghouse Electric Corporation, a company also based in # of Employees: 18,000 Pittsburgh. It served as the Westinghouse subsidiary charged with selling and distributing company components in the Stock Symbol: WCC electrical and industrial industries. WESCO maintained close ties Exchange: NYSE to its parent. In 1994, the private equity firm Clayton, Dubilier & Rice (CD&R) purchased Westinghouse Electric Supply Company Market Cap: $4.29 Billion and created WESCO Distribution Inc.[4] Total Revenue (CY 2020): $12.326 Billion WESCO International, Inc. is a publicly traded Fortune 500 Total Assets (CY 2020): $5.51 Billion holding company for WESCO Distribution, a multinational Tenant Business: Electrical Products Wholesalers electrical distribution and services company based in Pittsburgh, Pennsylvania.[3] Founded: 1922 WESCO International, Inc. (NYSE: WCC) is a provider of U.S. Headquarters: Pittsburg, PA electrical, industrial, communications, maintenance, repair and Website www.wesco.com operating (MRO), and original equipment manufacturer (OEM) products, as well as construction materials and advanced supply chain management/logistic services. In 2019, its total revenue was approximately $17 billion. The company employs 18,000 #379 FORTUNE 500 LIST employees and 30,000 suppliers to serve more than 150,000 FORTUNE .COM - 2021 active customers worldwide.[4] WESCO customers include commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WESCO operates 10 fully automated distribution centers #2 TOP ELECTRICAL and 500 branches in North American and international markets. DISTRIBUTORS WIRE & CABLE MANUFACTURES ALLIANCE - 2020 26407 Highway 33 | Fellows, CA TENANCY OVERVIEW Company: MRC Global MRC GLOBAL On November 1, 2007, McJunkin Corporation and Red Man Pipe # of Employees: 3,150 & Supply Company merged to form, what is now MRC Global. Stock Symbol: MRC However, MRC’s predecessor companies date to 1921, providing nearly 100 years of innovative supply chain solutions and technical Exchange: NYSE product expertise. MRC Global (NYSE: MRC) is now the largest global distributor, based on sales, of pipe, valves and fittings (PVF) Market Cap: $535 Million and related products and services to the energy industry. Total Revenue (CY 2019): $3.662 Billion The company provides a comprehensive array of services including Total Assets (CY 2019): $2.325 Billion multiple deliveries each day, zone store management and warehousing, Tenant Business: Oil & Gas Services as well as valve tagging and system interfaces that link the customer to MRC’s proprietary information systems. As a result, MRC boasts Founded: 1921 an average relationship of over 25 years with their 25 largest U.S. Headquarters: Huston, TX customers, which represent about 55% of the company’s total sales, with the single largest customer constituting approximately 8%. Website: www.mrcglobal.com MRC Global currently operates approximately 260 service locations worldwide, with nearly 3,200 employees, and an estimated customer #6 ON INDUSTRIAL base of 14,000. As of December 31, 2019, the company reported revenue in excess of $3.6 billion, with total assets estimated at $2.3 DISTRIBUTIONS’ BIG 50 LIST billion. INDUSTRIAL DISTRIBUTION -