Jiffy Lube 6070 Stanford Ranch Rd, Rocklin, CA 95765 ™ OFFERING MEMORANDUM CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business Like all real estate investments, this investment carries significant risks. Buyer and and affairs of Jiffy Lube located at 6070 Stanford Ranch Rd, Rocklin, CA 95765 Buyer’s legal and financial advisors must request and carefully review all legal and here to referred to as “Property”. Information in this Marketing Brochure is financial documents related to the Property and tenant. While the tenant’s past confidential and provided solely for the purpose of a review by a prospective performance at this or other locations is an important consideration, it is not a purchaser of the Property. It is not to be used for any other purpose and may not guarantee of future performance. be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also or no record of actual performance, or comparable rents for the area. Returns are known as Matthews Retail Advisors) based in part upon information supplied by not guaranteed; the tenant and any guarantors may fail to pay the lease rent or the Seller and in part upon financial information obtained from sources deemed property taxes, or may fail to comply with other material terms of the lease; cash reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has flow may be interrupted in part or in whole due to market, economic, environmental not and will not verify any of this information, nor has Matthews Retail Group, Inc. or other conditions. Regardless of tenant history and lease guarantees, Buyer is conducted any investigation regarding these matters. Matthews Retail Group, Inc. responsible for conducting his/her own investigation of all matters affecting the makes no guarantee, warranty or representation whatsoever about the accuracy intrinsic value of the Property and the value of any long-term lease, including the or completeness of any information provided. likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with It is the Buyer’s responsibility to independently confirm the accuracy and a potential replacement tenant considering the location of the Property, and Buyer’s completeness of all material information before completing any purchase. This legal ability to make alternate use of the Property. Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly By accepting this Marketing Brochure you agree to release the Seller and Matthews denies any obligation to conduct a due diligence examination of this Property for Retail Group, Inc. of any and all liability and hold the parties harmless from any kind the Buyer. Any projections, opinions, assumptions or estimates used in this of claim, cost, or expense arising out of your investigation and/or purchase of this Marketing Brochure are for example only and do not represent the current or Property. future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, NON-ENDORSEMENT NOTICE financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any advisors should conduct a careful, independent investigation of any property to commercial tenant or lessee identified in this Marketing Brochure. The presence of determine to their satisfaction the suitability of the Property for their investment any corporation’s logo or name is not intended to indicate or imply affiliation with, or goals. sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS PRESENTED BY Investment Overview . 2 Financial Overview . 3 Dalton Barnes Company Overview . 4 Associate License No. 01984625 PROPERTY DESCRIPTION O 310.919.5791 Property Overview. 6 M 925.234.1772 Bird’s Eye . 7 [email protected] Tenant Map . 8 Regional Map. 9 Braden Crockett DEMOGRAPHICS Senior Associate Demographics Report . 11 License No. 01946071 City Overview . 12 O 310.919.5814 M 714.345.6206 [email protected] iii ™ Investment Overview INVESTMENT HIGHLIGHTS PROPERTY DETAILS • Reportedly doing over double the national average in annual sales at this location • Bond-like absolute NNN lease; tenant is responsible for all maintenance including roof and structure • Very rare 15% rent increases every 5 years and at each option period LOCATION • Explosive population growth; 2016 estimates nearly double the 2000 census in the 1, 3, and 5 mile radius • Located in the very affluent Rocklin area of the Sacramento market, boasting ± $100,000 average household incomes and 7 golf courses within a 5-mile radius • Close proximity to prominent retail locations, which draw traffic from the surrounding area; site is 5 miles away from the Roseville Automall and 2 miles away from the Westfield Galleria TENANT • Experienced operator - Broadbase, Inc. operates 35 locations in the Northern California market • Frequently winning awards within the Jiffy Lube Franchise System for their excellence • One of the few retail tenants that offers both an e-commerce and a recession proof investment 2 Financial Overview EXECUTIVE SUMMARY ANNUALIZED OPERATING DATA 6070 Stanford Ranch Rd Monthly Rent Annual Rent Rent PSF CAP Rate Rocklin, CA 95765 List Price . $2,402,533 Current $12,012.67 $144,152.00 $62.62 6.00% Gross Leasable Area . ±2,302 SF Option 1 $13,814.57 $165,774.80 $72.01 6.90% CAP Rate - Current. 6.00% Option 2 $15,886.75 $190,641.02 $82.82 7.94% Year Built . .2005 Option 3 $18,269.76 $219,237.17 $95.24 9.13% Lot Size . ±0.42 Acres (17,859 SF) TENANT SUMMARY Tenant Trade Name Jiffy Lube Type of Ownership Fee Simple Lease Guarantor Broadbase, Inc. Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 15 years Lease Commencement Date 2/18/2005 Rent Commencement Date 2/18/2005 Lease Expiration Date 2/29/2020 Term Remaining on Lease ±3.50 years Increases 15% Every 5 Years Options Three (3), Five (5) Year Options 3 ™ Company Overview A leading provider of oil changes, Jiffy Lube doesn’t expect to see its Tenant Jiffy Lube customers every day -- but about every three months or 3,000 miles. Company Name Jiffy Lube International, Inc. The company boasts more than 2,100 outlets throughout North America Ownership Private that are mostly franchised. The rest of its locations are company-owned and operated. Besides oil changes, Jiffy Lube facilities provide No. of Locations ±2200 maintenance services for air conditioning, fuel systems, and No. of Employees ±6,539 transmissions. At some of its locations, it also performs inspections and Headquartered Houston, Texas emissions testing, repairs windshields, and rotates tires. The company serves vehicle fleet operators, as well as individual consumers. Jiffy Web Site http://www.jiffylubearizona.com Lube, which is a subsidiary of Shell Oil Company, was founded in 1979. Year Founded 1979 Jiffy Lube grew from about 10 service centers in 1980 to about 1,000 centers in 1990, when it was acquired by Pennzoil. In 1998 Pennzoil merged with Quaker State, which had its own network of Q-Lubes that were later renamed as Jiffy Lube. In 2002 Royal Dutch Shell subsidiary Shell Oil acquired Pennzoil-Quaker State. Today, the company is the largest system of franchised service centers in North America. 4 Property Overview THE OFFERING Property Name . Jiffy Lube Property Address . .6070 Stanford Ranch Rd Rocklin, CA 95765 Assessor’s Parcel Number . 358-100-006 SITE DESCRIPTION Number of Stories . One Year Built . .2005 Gross Leasable Area (GLA) . ±2,302 SF Lot Size . ±0.42 Acres (17,859 SF) Type of Ownership. Fee Simple Parking . .±15 Surface Spaces Parking Ratio . 3.94 : 1,000 SF Landscaping . .Professional Topography. Generally Level CONSTRUCTION Foundation . .Concrete Slab Framing . Steel Exterior . .Brick Parking Surface . .Asphalt Roof . .Flat 6 PROPERTY DESCRIPTION Bird’s Eye ADT Stanford Ranch Rd ±19,000 7 ™ Tenant Map 8 PROPERTY DESCRIPTION Regional Map 9 ™ Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 21,335 98,962 216,516 2016 Estimate 19,478 90,999 201,792 2010 Census 17,037 80,549 183,025 2000 Census 7,079 44,703 118,211 Growth 2016-2021 9.53% 8.75% 7.30% Growth 2010-2016 14.32% 12.97% 10.25% Growth 2000-2010 140.67% 80.19% 54.83% Households 2021 Projection 7,533 35,806 81,747 2016 Estimate 6,930 33,075 76,329 2010 Census 6,235 29,657 69,524 2000 Census 2,577 16,594 44,561 Growth 2016-2021 8.70% 8.26% 7.10% Growth 2010-2016 11.15% 11.53% 9.79% Growth 2000-2010 141.97% 78.72% 56.02% Income $0 - $15,000 6.48% 6.88% 7.11% $15,000 - $24,999 5.01% 6.56% 6.87% $25,000 - $34,999 6.43% 7.02% 7.28% $35,000 - $49,999 9.99% 9.81% 10.48% $50,000 - $74,999 16.42% 16.36% 16.49% $75,000 - $99,999 16.97% 13.80% 13.38% $100,000 - $124,999 12.75% 11.47% 11.14% $125,000 - $149,999 8.87% 8.74% 8.42% $150,000 - $199,999 9.08% 10.03% 9.73% $200,000 - $249,999 3.81% 4.36% 4.21% $250,000 - $499,999 3.43% 3.86% 3.77% $500,000+ 0.76% 1.11% 1.11% 2016 Est.