FREEWAY ADJACENT 24 HOUR FITNESS AND CURACAO ANCHORED CENTER IN SOUTHERN CALIFORNIA SAN BERNARDINO, CALIFORNIA Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740 (“HFF”) . OVERVIEW HFF is pleased to offer the opportunity to acquire Tri-City Shopping Center (the “Property”), a 151,709 square-foot shopping center anchored by 24 Hour Fitness and Curacao. Located adjacent to the Interstate 10 Freeway (230,000 cars per day) in San Bernardino, the Property enjoys excellent visibility and is surrounded by the industry’s most desirable co-tenants, including Costco, Sam’s Club, and Home Depot. Strategically located at the center of the submarket’s primary retail corridor, Tri-City Shopping Center offers investors a secure income stream with opportunities for future value creation. PROPERTY SUMMARY TENANT SUMMARY TRI-CITY CENTER TENANT SIZE (SF) % OF GLA EXPIRATION 835-891 E. Harriman Place CURACAO 102,516 67.6% Jun-25 ADDRESS San Bernardino, CA 92408 24 HOUR FITNESS 40,038 26.4% Dec-30 OCCUPANCY 98.4% PET WORLD 2,961 2.0% May-19 GLA 151,709 Square Feet POLLO CAMPERO 2,650 1.8% Sep-20 SITE SIZE 12.610 Acres POKE BAR 1,182 0.8% Mar-22 PARKING 647 Spaces (4.26 per 1,000 sf) AVAILABLE 2,362 1.6% N/A YEAR BUILT 1987 TOTAL / AVERAGE 151,709 100.0% 9.3 Years CURACAO 24 HOUR FITNESS Curacao is a well-known, 11 store large-format retailer serving 24 Hour Fitness is a leading health club industry pioneer with predominantly Hispanic communities. In addition to the sale of locations across the U.S. and is backed by private equity consumer goods, the chain offers a range of financial services, investors Fitness Capital Partners, AEA Investors, and Ontario the most notable being access to safe and flexible credit. Teachers’ Pension Plan. OVER $350M 2 MILLION PER YEAR +/-2,000 OVER 4 MILLION 400+ LOCATIONS IN REVENUE IN 2015 CREDIT APPLICATIONS EMPLOYEES MEMBERS NATIONALLY INVESTMENT HIGHLIGHTS EXCELLENT ACCESS AND VISIBILITY Located adjacent to the Interstate 10 Freeway with visibility to over 230,000 cars per day and easy access from the Waterman Avenue on/off ramp less than 0.4 miles from the Property. OUTSTANDING CO-TENANTS AND RETAIL LOCATION The Property is surrounded by highly desirable retailers that are recognized as the leaders in retail site selection, including Costco, Sam’s Club, and Home Depot. These high-volume co-tenants generate significant traffic for the center and solidify its location at the heart of the submarket’s primary retail node. % of GLA 70% AND 94% 9.3 YEAR AVG OCCUPIED ANCHOR REMAINING LEASE TERM 12+ YEARS TENANTS INVESTMENT HIGHLIGHTS CHANGING DEMOGRAPHICS IN CALIFORNIA INTERNET RESISTANT TENANCY Recognized in the Hispanic community for their ancillary financial and credit services, Curacao enjoys a unique niche and consumer Tri-City Center is base that is unlikely to be diminished by e-commerce. 24 Hour Poised to Capitalize Fitness also offers a membership experience that cannot be on the Changing duplicated on the internet. Demographics of California DENSE TRADE AREA WITH CONTINUED Consumers POPULATION GROWTH 15 MILLION 243,000 people live within a 5-mile radius of the Property, a 14% CURRENT HISPANIC increase since 2000 and current forecasts predict that over the POPULATION IN CALIFORNIA next five years, population growth and job creation will be twice as fast as the national average. ADJACENT TO KEY DAYTIME DENSITY DRIVERS VS. 38% Located adjacent to the Tri-City Corporate Center, one of the 39% Hispanic Non-Hispanic largest office complexes in the trade area that consists of over one White million square feet. INCOME SECURITY 94% of the GLA is leased to Curacao (through Jun-25) and 24 4.9 MILLION Hour Fitness (through Dec-30), providing potential investors with a LA stable and secure cash flow. CURRENT HISPANIC POPULATION IN LA COUNTY TENANT LONGEVITY LARGEST Over 70% of the GLA is occupied by tenants that have operated at HISPANIC POPULATION Tri-City Center since 2005 or earlier, demonstrating the business OF ANY COUNTY IN CA VS. success and long-term commitment of the tenant base. 48% 27% Hispanic Non-Hispanic White TRI-CITY CORPORATE CENTER 17 BUILDINGS 1.1 MILLION SF HOSPITALITY LANE (26,000 VPD) HAMPTON INN 114 ROOMS HARRIMAN PLACE PROPERTY PYLON SIGN POKE BAR PET WORLD INTERSTATE 10 PROPERTY PYLON SIGN FAIRFIELD INN 94 ROOMS 10 (230,000 VPD) INVESTMENT HIGHLIGHTS UNENCUMBERED ASSET Offered free and clear with no existing debt, providing the opportunity for investors to secure accretive financing and generate attractive leveraged returns. INTERSTATE 10 (230,000 VPD) FUTURE VALUE CREATION Opportunity to increase the total GLA through future development of shop space adjacent to Curacao. DEMAND DRIVERS » TRI-CITY CORPORATE CENTER – Over one million square feet of office buildings acquired by Hines in 2015 » VA HOSPITAL LOMA LINDA – Serves over 72,000 veterans in San Bernardino and Riverside » LOMA LINDA UNIVERSITY – 4,500 undergraduates, 1,750 faculty, 750 graduate students » SAN BERNARDINO AIRPORT – Located 2 miles from the Property, 47,000 expected aircraft takeoffs this year LEASED AVAILABLE FUTURE EXPANSION GLA DEMOGRAPHICS 3-MILES 5-MILES 7-MILES 2017 POPULATION 70,062 243,207 486,527 2000-2017 16.81% 13.97% 14.94% POPULATION GROWTH HISPANIC / LATINO 55.15% 40.95% 44.68% POPULATION AVERAGE HOUSEHOLD $68,566 $58,072 $63,841 INCOME SAN BERNARDINO, CALIFORNIA DRIVING DISTANCE ORANGE COUNTY 50 MILES LOS ANGELES 60 MILES SAN DIEGO 100 MILES INVESTMENT ADVISORS DEBT ADVISOR BRYAN LEY JUSTIN KUNDRAK PETER SMYSLOWSKI Managing Director Director Senior Managing Director www.hfflp.com 310.407.2120 310.407.2145 415.276.6950 T. (310) 407-2100 | F. (310) 407-2101 [email protected] [email protected] [email protected] 10250 CONSTELLATION BOULEVARD, SUITE 1000 CA Lic. #01458927 CA Lic. #01994398 CA Lic. #01301231 LOS ANGELES, CA 90094 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses, and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change..