848 NEWVILLE RD | ORLAND, CA

ABSOLUTE NNN INVESTMENT OFFERING MEMORANDUM

76 Gas Station Sale Leaseback

To Chico

To Sacramento

To Redding/ Oregon

Newville Rd

Highway

Orland High

School

S I T EUNDER

CONSTRUCTION

STARBUCKS

www.cbre.com

SALE PRICE: $ 2,000,000 | CAP RATE 5.4%

CBRE | Advisory & Transaction Services

OFFERING SUMMARY

Offering Price: $2,000,000.00

Sale Leaseback: 10 years with four, 5 year options to renew.

Annual Net Operating Income: $108,000.00

Year-1 Capitalization Rate: 5.4%

Lease Type: Absolute Net

Approx. Building Size: ±1,800 Sq. Ft.

Parcel Size: ±14,150 Sq. Ft.

Ownership: Fee Simple

Zoning: Commercial Service Station

Use: Gas Station

Year Built: 2005

Address: 848 Newville Rd

City, State: Orland, CA 95963

APN: 040-132-003-000

Terms: All Cash

OFFERING MEMORANDUM 2G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

INVESTMENT OVERVIEW

The subject property offers an investor the opportunity to acquire freestanding, absolute net leased gas station. The current owner operator who has operated the site for the last 12 years (built in 2005) will be signing a new 10 year primary term lease upon close of escrow. Terms are further defined in the financial section.

HIGHLIGHTS + Going to freeway (Interstate 5) side of the street, free standing with easy ingress and egress.

+ Sale Leaseback, new 10 year lease with 4, 5 year options which commences at close of escrow.

+ Absolute Net lease with no Landlord responsibility

+ Highway 32 is the main east/west connector between I-5 and Highway 99

+ Growing retail in the trade area with new tenants including Wendy’s, Starbucks and others

OFFERING MEMORANDUM 3G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

SALE LEASEBACK TERMS

Tenant: Individual

Term: 10 years with 4, 5 year options to renew.

Rent:

Lease Type: Absolute triple net, zero landlord responsibility. Tenant is responsible for all building and property maintenance, utilities, insurance and taxes.

Assignment and Subletting:

Tenant shall have the right to assign or sublease the lease without prior approval but with notification to landlord. In the event of an assignment to franchisor per franchisee agreement or other Qualified* party, tenant shall be released of their obligation. Qualified party shall mean an operator with all of the following.

• Net worth of $3mm (if this is not met, Individual will personally guarantee the lease for a period of two years after the transfer).

• Liquidity of $500,000 (if this is not met, Individual will personally guarantee the lease for a period of two years after the transfer).

• Operational history of a similar convenience type store and/or gas station.

Use: Any legal and permitted retail use.

Exclusive: None

Percentage Rent: None

Right of First Refusal: None

Years1-5: $108,000.00 annually, NNN (will commence at close of escrow)6-10: $118,800.00 annually, NNN (10% increase)11-15: $130,680.00 annually, NNN (10% increase)16-20: $143,748.00 annually, NNN (10% increase)21-25: $158,122.80 annually, NNN (10% increase)26-30: $173,935.08 annually, NNN (10% increase)

OFFERING MEMORANDUM 4G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

TENANT OVERVIEW

OPERATOR: Owned and operated by an individual who is signing

the lease personally. The individual built and has operated the site

since 2005. They have extensive operating history in the industry

with a great track record.*

CURRENT BRANDING: Union 76

Union 76 currently has 1,800 retail locations across the

country. Formed in 1932, the brand has become well

recognized by their iconic orange ball which made it’s debut

in 1962 as the gas station signage. The brand 76 is owned

by Phillips 66 Company.

*TRACK RECORD AND FINANCIALS OF THE OPERATOR WILL BE

AVAILABLE UPON REQUEST WITH A SIGNED CA.

OFFERING MEMORANDUM 5G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

PROPERTY PHOTOS

OFFERING MEMORANDUM 6G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

Investment Highlights + Located next to a high-volume Safeway

+ Tremendous presence at the corner of Fair Oaks Blvd and Manzanita Way with over 60,000 cars per day. Large pylon sing provides outstanding identity

+ Major retailers within close proximity to the intersection include Bel Air Market, SaveMart Grocery, ACE Hardware, California Family Fitness, Big Lots, McDonalds, Denny’s, Burger King, and Taco Bell

+ Located on the #1 Central Carmichael retail intersection—Safeway and Bel Air are both high-volume stores

+ Excellent traffic counts

+ Excellent visibility

+ Easy access

+ Two signalized intersections

+ Strong day and evening population with mid-level to up-scale demographics

To Chico

To Sacramento

To Redding/ Oregon

Newville Rd

Highway

Orland High

School

S I T EUNDER

CONSTRUCTION

STARBUCKS

AERIAL

N

Orland

SITE

OFFERING MEMORANDUM 7G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

PARCEL MAP

MAP NOT TO SCALE

S I T E±23,619 SF of vacant land for

$300,000

S I T E

OFFERING MEMORANDUM 8G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

MARKET OVERVIEWOrland is located in the northern Sacramento Valley, County of Glenn area, along Interstate 5 and US99W, sixty miles south of Redding and 100 miles north of Sacramento.

Orland is one of the fastest growing cities along Interstate 5, it boast an ever growing population of 7,814 (Dept. of Finance 2015). Orland is a town with a fascinating history, rich traditions, and a diverse population.

Located in the northeast portion of Glenn County, the beginnings of the City were rooted in cattle ranching, which was established by Granville P. Swift in the late 1840’s. By the early 1870’s grain production in the area led the Central Pacific Railroad to lay track from Colusa County to Red Bluff. In 1878, the townsite of Orland was laid out by the Chamberlain brothers; two years later, the management of this townsite was taken over by the railroad. Stores and warehouses for local ranchers created residents for the new settlement, and in 1880, the census showed the population of Orland to by 292.

Orland is primarily a residential community that has maintained the small town character one might envision for such a community of fifty years past.

The close-knit sense of community in Orland is evident during the annual Fourth of July Picnic sponsored by the Historical Society, the county fair, December Avenue of Lights and other holiday events and occasions which draw the community together. It is a great place to live, raise a family, and enjoy everything a small town can offer.

Traffic generators include the Butte College, Glenn County Fair, Grocery Outlet, CVS, Dollar General, and Walgreens

Major employers include:

− Erick Nielsen Enterprises Inc

− Head Start

− Lassen Land Co

− Sunsweet Dryers

Three hotels within a 1-mile radius:

− Orland Inn

− Orlanda Inn Motel

− The Parkway RV Resort & Campground

Source: City of Orland

OFFERING MEMORANDUM 9G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

DEMOGRAPHICS (2016 est.)

Population

1-mile radius 5,867

5-mile radius 14,493

10-mile radius 17,866

20-mile radius 123,362

Average Household Income

1-mile radius $51,280

5-mile radius $58,128

10-mile radius $60,056

20-mile radius $58,437

Median Household Income

1-mile radius $37,724

5-mile radius $41,966

Daytime Employment (3-mile radius)

Employees 10,501

Significant Employers (3-mile radius)

Employers # Employees

Erick Nielsen Enterprises IncHead StartLassen Land CoSunsweet Dryers

100100

90150

Source: ca.gov

2015 Traffic Counts

Interstate 5 @ Highway 32 (North & South) 51,000 ADT

Source: CoStar/Caltrans

OFFERING MEMORANDUM 10G A S S T A T I O N S A L E L E A S E B A C K | O R L A N D , C A

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENTCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

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.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), 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 CBRE, Inc. 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. 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.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make 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 evaluating 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 confidential 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 CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 701051767-193950

CBRE | Advisory & Transaction Services www.cbre.com

CONTACT US

848 NEWVILLE RD | ORLAND, CA | ABSOLUTE NNN INVESTMENT OFFERING MEMORANDUM

John Brecher

Senior Associate +1 916 781 4850john.brecher@cbre.comLic. 01897931

Dave White

Senior Associate+1 916 781 4889dave.white@cbre.comLic. 01759894