BLAZE PIZZA & HABIT BURGER WITH DRIVE-THRU LOS BANOS, CA Overview BLAZE PIZZA & HABIT BURGER 1335 WEST PACHECHO BLVD, LOS BANOS, CA 93635 $3,943,000 5.25% PRICE CAP LEASEABLE SF LAND AREA LEASE TYPE 5,500 SF 0.68 Acres LL Roof & Structure* LEASE EXPIRATION YEAR BUILT PARKING 2027 2017 39 Spaces *15 YEAR ROOF WARRANTY Pad to Target & Walmart anchored trade area. Habit Burger has a drive-thru, creating more value for the suite. New 10-year leases with rental increases every 5 years. Benefitting from 28,000 VPD along West Pacheco Blvd. Average household income within a 1-mile radius exceeds $82k. New Construction. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 2 Investment Highlights Contact the team THE OFFERING provides an opportunity to acquire a newly constructed Habit Burger & Blaze Pizza in Los Banos, CA, which is just 80 miles from San Jose. Out positioning its JOHN ANDREINI neighbors, the property’s uses are “Amazon-proof,” and is located in front of the top traffic [email protected] generators in the market with tenants such as Target, Walmart Supercenter, La Esperanza PH: 415.274.2715 Supermarket, Starbucks, and more. The property has excellent visibility, is located at the CA BRE#: 01440360 entrance of one of the most trafficked shopping centers in the city, has 2 end caps with a drive-thru, and has combined traffic counts of over 28,000 vehicles per day - all factors which combine to make this property one of the premier strip centers in Los Banos. IMMEDIATE AREA RETAILERS include Target, Walmart Supercenter, Starbucks, McDonald’s, Petco, Hobby Lobby, Rue 21, Tractor Supply Co, and many others. SURROUNDING AREA RETAIL This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and THE HABIT CURRENTLY ANTICIPATES 2017 bears all risk for any inaccuracies. REVENUES OF $335-$338 MILLION 3 Zoomed-In Aerial LOS BANOS AIRPORT 28,000 VPD 33 W PACHECO BOULEVARD LOS BANOS MIDDLE SCHOOL CREEKSIDE BADGER ROAD FLAT JUNIOR HIGH SCHOOL 2,940 VPD SACRAMENTO 4,620 VPD S ORTIGALITA ROAD 4 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Zoomed-Out Aerial ROAD SOUTH ORTIGALITA LOS BANOS HIGH SCHOOL W I STREET OUR LADY OF FATIMA SCHOOL 28,000 VPD 33 W PACHECO BOULEVARD ® LOS BANOS WESTSIDE ELEMENTARY UNION ELEMENTARY H STREET HENRY MILLER ELEMENTARY CITY OF W I STREET LOS BANOS LOS BANOS AIRPORT MIANO ELEMENTARY MERCED COUNTY MEMORIAL HOSPITAL SAN LUIS HEAD START LOS BANOS DAY SCHOOL SACRAMENTO W H STREET N 2ND STREET 5 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Area Business Summary SURROUNDING RETAILERS AAA H&R Block State Farm Insurance Costco Jack in the Box Target CVS McDonald’s The Home Depot Denny’s Rite Aid Tractor Supply Co. Farmers Insurance Safeway Walmart Supercenter Food 4 Less Starbucks Wells Fargo Hobby Lobby This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or SURROUNDING AREA RETAIL implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. TOTAL 1-MILE 3-MILES 5-MILES Employees 1,930 8,294 9,167 Daytime 5,805 33,230 41,378 Population KEY 1-MILE 3-MILES 5-MILES 6 Surrounding Area Retail 7 SURROUNDING AREA RETAIL Income & Expense CURRENT Price: $3,943,000 Capitalization Rate: 5.25% Price Per Square Foot: $716.91 Total Leased (SF): 100.00% 5,500 Total Vacant (SF): 0.00% 0 Total Rentable Area (SF): 100.00% 5,500 INCOME PER SQUARE FOOT Scheduled Rent $37.64 $207,000 EFFECTIVE GROSS INCOME $207,000 LESS Taxes NNN $0 Insurance NNN $0 Total Operating Expenses NNN $0 TOTAL OPERATING EXPENSES $0 NET OPERATING INCOME $207,000 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY PERCENT OF MONTHLY ANNUAL TENANT SQ. FT. TERM RENT/FT GLA RENT RENT The Habit Burger 3,000 54.55% 11/1/2017 10/31/22 $9,750 $117,000 $39.00 11/01/22 10/31/27 $10,725 $128,700 $42.90 Option 1 11/01/27 10/31/32 $11,798 $141,570 $47.19 Option 2 11/02/32 10/31/37 $12,978 $155,730 $51.91 Option 3 11/01/37 10/31/42 $14,275 $171,300 $57.10 Option 4 11/01/42 10/31/47 $15,703 $188,430 $62.81 Blaze Pizza 2,500 45.45% 11/01/17 10/31/22 $7,500 $90,000 $36.00 11/01/22 10/31/27 $8,250 $99,000 $39.60 Option 1 11/01/27 10/31/32 $9,075 $108,900 $43.56 Option 2 11/01/32 10/31/37 $9,981 $119,775 $47.91 Option 3 11/01/37 10/31/42 $10,979 $131,750 $52.70 OCCUPIED 5,500 100.00% $17,250 $207,000 $37.50 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9 Lease Abstract EXPENSES TAXES Tenant agrees to pay Landlord, as additional rent, during each Lease year or partial Lease year during the term of this Lease, Tenant’s share PREMISE of all Taxes. & TERM INSURANCE Tenant shall, at Tenant’s expense, obtain and TENANT The Habit Burger keep in force during the Term commercial general SUITE SF 3,000 SF liability insurance written on an “occurrence” TERM 10 Years policy form, covering bodily injury, property GRAND OPENING November 1, 2017 (Estimated) damages, and personal injury arising out of or RENT COMMENCEMENT November 1, 2017 (Estimated) relating (directly or indirectly) to Tenant’s business EXPIRATION October 31, 2027 (Estimated) operations, conduct, assumed liabilities, or use OPTIONS Four 5-year Options of occupancy of the Premises including standard LEASE TYPE Corporate contractual liability insurance. UTILITIES Tenant shall pay for the cost of connecting utilities, including without limitation water, sewer, RENT gas, electricity, telephones, and other common utilities. TENANT’S OBLIGATIONS BASE RENT Tenant shall maintain, repair, and replace the DATE RANGE MONTHLY RENT ANNUAL RENT non-structural portions of the Premises. 11/1/2017 - 10/31/2022 $9,750 $117,000 LANDLORD’S OBLIGATIONS 11/1/2022 - 10/31/2027 $10,725 $128,700 Landlord responsible for roof & structure.* OPTION RENTS *15 Year Roof Warranty DATE RANGE MONTHLY RENT ANNUAL RENT #1. 11/1/2027 - 10/31/2032 $11,798 $141,570 #2. 11/1/2032 - 10/31/2037 $12,978 $155,730 #3. 11/1/2037 - 10/31/2042 $14,275 $171,300 #4. 11/1/2042 - 10/31/2047 $15,703 $188,430 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 10 bears all risk for any inaccuracies. Lease Abstract EXPENSES TAXES Tenant is responsible Tenant’s pro rata %. INSURANCE PREMISE Tenant shall carry and maintain: (a) commercial general liability insurance, (b) “all risk” or “special & TERM causes of loss form” property insurance, (c) plate glass insurance, (d) comprehensive boiler and TENANT Blaze Pizza machinery coverage, (e) business interruption SUITE SF 2,500 SF and (f) worker’s compensation insurance. TERM 10 Years UTILITIES GRAND OPENING November 1, 2017 (Estimated) Tenant shall pay, when due, all charges for water, RENT COMMENCEMENT November 1, 2017 (Estimated) sewer, electricity, gas, telephone service and EXPIRATION October 31, 2027 (Estimated) other utilities supplied to the Premises. OPTIONS Three 5-year Options LEASE TYPE Franchisee TENANT’S OBLIGATIONS Tenant shall maintain, repair, and replace the non-structural portions of the Premises. LANDLORD’S OBLIGATIONS RENT Landlord responsible for roof & structure.* BASE RENT *15 Year Roof Warranty DATE RANGE MONTHLY RENT ANNUAL RENT 11/1/2017 - 10/31/2022 $7,500 $90,000 11/1/2022 - 10/31/2027 $8,250 $99,000 OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 11/1/2027 - 10/31/2032 $9,075 $108,900 #2. 11/1/2032 - 10/31/2037 $9,981 $119,775 #3. 11/1/2037 - 10/31/2042 $10,979 $131,750 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 11 bears all risk for any inaccuracies. Site Plan ENTRANCE FOR 5,500 0.68 39 TARGET • HOBBY LOBBY • HARBOR FREIGHT TOOLS RENTABLE SF ACRES SPACES SURROUNDING AREA RETAIL Drive Thru W PACHECO BOULEVARD W PACHECO Drive Thru 33 Drive Thru This site plan is a rendering that has been created based on sources we believe to be reliable.