santa clarita plaza - jesse lee bouquet canyon...santa clarita was incorporated in 1987 as the union...

Offering MeMOranduM

Santa Clarita PlazaS a n ta C l a r i ta , C a l i f O r n i a

Capital Markets | NatioNal retail iNvestMeNt Group

Seco Canyon road

Bouquet Canyon road

Castaic CanyonCountry

naP

santa Clari ta p laza | 2

Table of ConTenTs

investment summary ....................................................................................... 5

area overview .............................................................................................. 8

property Description ..................................................................................... 14

tenants ....................................................................................................... 17

Financials .................................................................................................... 24

exclusively Marketed By: the National retail investment Group-West

Philip d. Voorhees Lic. [email protected]

Sam alison | la retail PCgLic. 01167124 [email protected]

dan riley | la retail PCgLic. 01057519 [email protected]

Patrick toomey Lic. [email protected]

Megan read Lic. [email protected]

© 2011 CBRE, Inc. We obtained the information contained within from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

CBre | Broker lic. 00409987 | 3501 Jamboree road, suite 100 | Newport Beach, Ca 92660 | Fax 949.725.8545 | www.nrigwest.com

Santa Clarita PlazaS a n ta C l a r i ta , C a l i f O r n i a

santa Clari ta p laza | 4iNvestMeNt suMMary

invesTmenT summary

address ........................................................................26811-26893 Bouquet Canyon rd. 26830-26860 seco Canyon rd., santa Clarita, Ca 91350

offering price ..............................................................................................$24,925,000

assumable loan ........................................................................................ $19,500,000[1]

loan interest rate ...................................................................................................6.42%

loan Maturity Date ........................................................................................... June 2017

Noi (year 1) .................................................................................................$1,959,711

Noi stabilized (year 3) ..................................................................................$2,384,056

Building square Feet ........................................................................................... 115,577

land area .................................................................................564,538 sF (12.96 acres)

Current occupancy ...................................................................................................81%

[1] Buyer to assume existing loan originated August 2007 by Merrill Lynch Mortgage Lending, Inc. in the amount of $19,500,000, 6.42%, fixed interest rate, interest only payments up to maturity 06/2017. Loan is serviced by Keybank Real Estate Capital.

MajOr tenantS

TenanTs Include sIze lease expIraTIons opTIons

rite aid 20,034 sF May 2018 one (1) Five (5) year at FMv

Goodwill industries 13,379 sF september 2014 one (1) ten (10) year at FMv

Bank of america 5,440 sF December 2016 two (2) Five (5) year at 3%

invesTmenT HigHligHTsSanta Clarita drug Store anchored retail Center

• opportunity to purchase an established drug store-anchored shopping center in santa Clarita (los angeles County)

• 115,577 Sf drug anchored shopping center leased to established tenants such as: rite aid, goodwill industries, Bank of america, and many more!

• Highly attractive, assumable loan: $19,500,000 at 6.42% fixed rate, interest only through maturity date of june 2017 provides attractive cash-on-cash returns. loan is “non-recourse” with standard carve-outs

• immediate upside for lease-up of vacant space (27,816 Sf - 24% of Gla)• recent capital improvements to roof and common area

immediate upside/Stable Cash flow with Strong nOi growth

• 76% leased, and priced on “in-place” income• Net operating income (Noi) is projected to grow more than $799,651 (41%)

over a 10-year hold period as vacant space is leased and below market rite aid anchor rents adjusts to market

• rent for rite aid (17% of gla) is significantly below market at $0.61 PSf per month

• virtually all tenants have rental increases, improving cash flow over time• limited same-year lease roll over keeps income stable year to year

Strong real estate fundamentals

• rare opportunity to purchase an entirely-owned (except corner gas pad) southern California anchored shopping center below replacement cost

• property-wide, rents are 10.49% below current market rates• Currently 81% leased - immediate leasing upside• property is priced “as-is” on current in place income, with no credit given for

vacant space (21,866 Sf, 19% of gla)• drug store anchor plus classic retail uses appeals to “daily needs” consumers,

increasing trips to the property• 38,470 Sf (over 33%) of Gla within the shopping center consists of spaces

under 2,000 Sf, providing versatile retail space for a wide variety of potential uses, increasing the pool of potential replacement tenants

• Competing centers in trade area have average occupancy of approximately 98% with monthly asking rents ranging from $2.25 PSf - $3.95 PSf for the few available retail spaces in the immediate trade area

C a p i t a l M a r k e t s | n a t i o n a l r e t a i l i n v e s t m e n t g r o u p

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santa Clari ta p laza | 6iNvestMeNt suMMary

attractive assumable financing

• $19,500,000 balance• Fixed interest rate of 6.42% through loan maturity of june 2017

• loan is interest only (i/O) for its entire term, boasting cash on cash returns• Financing is “non-recourse” except for standard lender carve-outs

infill Santa Clarita location

• located at the intersection of Bouquet Canyon road (over 52,000 cars per day) and seco Canyon road (over 23,450 cars per day) for a total of over 75,450 cars passing the site daily

• strong access with four (4) points of access off of Bouquet Canyon road, two of which are dedicated left turn lanes for eastbound traffic, and three (3) points of access off of seco Canyon road

• Highly visible property with over 950 feet of frontage along Bouquet Canyon road and over 790 feet of frontage along seco Canyon road

• limited surrounding retail and service retail with a strong mix of surrounding office, industrial and residential density have the potential to keep Mountaingate plaza busy through all day parts

affluent demographics/trade area

• approximately 12,681 people within a 1-mile radius with an average Household income of more than $102,364

• approximately 98,719 people within a 3-mile radius with an average Household income of more than $109,518

• approximately 196,224 people within a 5-mile radius with an average Household income more than $101,014

ideal 1031 exchange replacement Property

• anchored shopping center in prime santa Clarita community • excellent cash-on-cash returns through assumable interest-only financing

• opportunity to purchase a wholly-owned project at or below replacement cost with stable income and outstanding upside potential

• low anchor rent, vacancy lease-up, and embedded increases should grow nOi approximately $799,651 (41%) during the 10-year hold period

invesTmenT HigHligHTs (ConT)


sanTa ClariTa overview

the City of santa Clarita encompasses 52.032 square miles of the approximately 200-square mile santa Clarita valley. therefore, the City of santa Clarita is the largest in geographic size within the County of los angeles. the City is situated south of the sierra pelona mountain range and north of the santa susanna and san Gabriel mountain ranges between interstate 5 and state Highway 14.

santa Clarita is the fourth largest city in los angeles County, California, united states and the 24th largest city in the state of California. the city population is approximately 176,000; including unincorporated areas of the santa Clarita valley, the population is estimated at over 275,000. it is located about 35 miles northwest of downtown los angeles, and occupies most of the santa Clarita valley. it is a notable example of a u.s. edge city or boomburb. the FBi rates it as the sixth safest city in the united states with a population of over 100,000 inhabitants. (Nearby simi valley and thousand oaks, in ventura County, traditionally alternate between the first and second spots on the list.) santa Clarita was ranked as number 18 of the top 100 places to live by “Money Magazine” in 2006.

santa Clarita was incorporated in 1987 as the union of several previously existing communities, including Canyon Country, Newhall, saugus, and valencia, all of which are the land of the former rancho san Francisco. its principal boundaries are the Golden state (i-5) and antelope valley (sr-14) freeways; their merger in Newhall pass at the city’s southernmost point gives santa Clarita its distinctive triangular appearance on the map. santa Clarita’s most notable attractions are the six Flags Magic Mountain amusement park located just outside the city limits in unincorporated los angeles County, and the California institute of the arts (Calarts), located in valencia.

Santa Clarita’s Top Employers (2010 Comprehensive Annual Financial Report)

eMPlOyer # Of eMPlOyeeS1 six Flags Magic Mountain 3,6892 princess Cruises 2,1003 Henry Mayo Newhall Memorial Hospital 1,2124 H.r. textron 8455 the Master’s College 7556 specialty laboratories 7257 arvato services 5868 California institute of arts 5009 aerospace Dynamics 45010 Fanfare Media Works 407

Enterprise Zoneon July 1, 2007, to offer new businesses tax incentives to operate inside santa Clarita, the industrial and commercial areas in northern and western santa Clarita were zoned as a federally recognized enterprise Zone. additional warehousing and office space was also constructed. presently, the santa Clarita enterprise Zone covers 97% of all commercial, business, and industrial zoned land within the City of santa Clarita. this zoning allows local businesses to claim hiring, sales and use tax credits. the newly designated enterprise Zone is now the base of operations for several large companies, including true position technologies, salt Creek Grille, Condomman.com, and trigg laboratories.

Los Angeleslos angeles is the largest city in the state of California and the second largest in the united states. often abbreviated as l.a. and nicknamed the City of angels, los angeles has an estimated population of 3.8 million and spans over 498.3 square miles in southern California. additionally, the los angeles metropolitan area is home to nearly 12.9 million residents. los angeles is the seat of los angeles County, the most populated and one of the most diverse counties in the united states.

the economy of los angeles is driven by international trade, entertainment (television, motion pictures, interactive games, recorded music), aerospace, technology, petroleum, fashion, apparel, and tourism. los angeles is also the largest manufacturing center in the western united states. the contiguous ports of los angeles and long Beach together comprise the fifth busiest port in the world and the most significant port in the Western Hemisphere and is vital to trade within the pacific rim. other significant industries include media production, finance, telecommunications, law, healthcare, and transportation. the los angeles-long Beach-riverside combined statistical area (Csa) has a gross metropolitan product (GMp) of $831 billion (as of 2008), making it the third largest economic center in the world, after the Greater tokyo area and the New york-Newark-Bridgeport Csa. as the home base of Hollywood, it is known as the “entertainment Capital of the World”, leading the world in the creation of motion pictures, television production and recorded music. the importance of the entertainment business to the city has led many celebrities to call los angeles and its surrounding suburbs home.

santa Clari ta p laza | 8area overvieW

los angeles CounTy overview

los angeles County has the largest population of any county in the nation, exceeded by only eight states. approximately 27 percent of California’s residents live here. More than 1 million of the 10.4 million residents live in unincorporated areas, whose municipal services are provided by the County. the other 9.3 million live in 88 cities, located throughout a 4,084-square-mile area. according to the united states Conference of Mayors, los angeles County boasts a GDp among the twenty largest in the world. los angeles County’s continued economic growth, in contrast to other areas of the state and nation, is due to its diversified economy and abundant, well-trained workforce.

one of the nation’s largest counties with 4,084 square miles, los angeles County is 800 square miles larger than the combined area of Delaware and rhode island. the County is bordered on the east by orange and san Bernardino Counties, on the north by kern County, on the west by ventura County and on the south by the pacific ocean and includes santa Catalina island.

if los angeles County were a nation, its economy would be the 18th largest in the world. it is home to more than 244,000 businesses, with more minority- and women-owned businesses than any other in the nation and is the nation’s top international trade center and manufacturing center. los angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace and international trade.

los angeles County has a diverse economic base. Measured by 2008 employment, the leading industry clusters are:1. tourism and hospitality with 458,000 employees2. professional and business services with 268,000 employees3. entertainment (motion picture/tv production, etc.) with 262,000 employees4. Wholesale distribution with 172,000 employees5. Health services and biomedical with 153,000 employees

Transportation Profilelos angeles County is served by one of the largest freeway networks in the country, providing access to the five neighboring counties of orange, riverside, san Bernardino, kern and ventura, as well as the rest of the nation. los angeles County’s extensive freeway network facilitates the movement of people and freight throughout the region, the state and the nation.

freeWay direCtiOn CarS Per dayi-5 North-south 356,000i-405 North-south 380,000i-605 North-south 320,000i-10 east –West 322,000i-110 North south 330,000i-210 east-West 308,000i-710 North-south 229,000us route-101 North-south 180,000Ca/sr 1 North-south 125,000

los angeles international airport (laX) services the los angeles County area with nearly 90 passenger and freight carriers and is the third busiest airport in the world. it is supplemented by the proximity of ontario international airport in the City of ontario (san Bernardino County), Burbank airport in Burbank (los angeles County) and John Wayne airport in santa ana (orange County). Municipal bus and light rail service is provided by the los angeles County Metropolitan transportation authority (Mta).

airPOrt PaSSengerS Per year/daylos angeles international airport (laX) 61 million/167,100John Wayne/orange County airport (sNa) 9.6 million/27,311ontario international airport (oNt) 7.1 million/20,493san Diego airport (saN) 17.3 million/40,000

the county has several freight rail lines and amtrak provides passenger rail service. the deep-water ports of los angeles and long Beach are the busiest in the country and one of the busiest port complexes in the world. in recognition of the value of international commerce to the region’s economy, the alameda Corridor was constructed to provide unfettered freight access from the ports of los angeles and long beach to the central interstate freight yards in the downtown los angeles.


Santa Clarita Plaza

santa Clarita

Newhall stevenson ranch

Bouquet Canyon road

newhall ranch road

Valencia Boulevard

ValenCia town Center

Bouquet Center

Seco Canyon road

santa Clari ta p laza | 10area overvieW

GolDeN state (i-5) FreeWay5

trade area deMOgraPhiCS

POPulatiOn 1Mile 3 MileS 5 MileS

2011 estimated population 12,681 98,719 196,224

2016 projected population 13,408 106,581 211,912

2000 Census population 11,300 74,714 152,315

1990 Census population 8,425 56,076 112,918

Growth 2000-2011 12.22% 32.13% 28.83%

Growth 2011-2016 5.73% 7.96% 7.99%

age 1Mile 3 MileS 5 MileS

2011 estimated Median age 36.20 36.16 35.34

hOuSehOldS 1Mile 3 MileS 5 MileS

2011 estimated Households 4,121 33,060 66,054

2016 projected Households 4,360 35,600 71,214

2000 Census Households 3,733 25,307 51,895

1990 Census Households 2,674 19,293 39,106

Growth 2000-2011 10.40% 30.63% 27.28%

Growth 2011-2016 5.79% 7.68% 7.81%

inCOMe 1Mile 3 MileS 5 MileS

2011 estimated Households 4,121 33,060 66,054

- income less than $15,000 259 1,396 3,796

- income $15,000 to $24,999 234 1,291 3,419

- income $25,000 to $34,999 168 1,391 3,822

- income $35,000 to $49,999 222 2,651 6,539

- income $50,000 to $74,999 715 5,710 11,985

- income $75,000 to $99,999 797 5,850 10,937

- income $100,000 to $149,999 1,114 8,637 14,803

- income $150,000 to $199,999 319 3,382 5,743

- income $200,000 to $499,999 261 2,389 4,348

- income $500,000 and over 34 361 663

2011 est. average Household income $102,364 $109,518 $101,014

Santa Clarita Plaza


Santa Clarita Plaza

(Not A Part)

26811

26825

26881-26887

26831

26859-A&B

26859-C

26859-G

268612686326865

26867

26851

26849

2683726841

28645

26871

26877

26879

26889-A

26889-B

26869

26893-A26893-B

26893-D26893-E26893-F

26893-G

26893-C

26893-M26893-L

26893-J

26893-I

26893-N

26893-O

26891

26833

26830

26832

2683426836268382684026842

26846

26830

Second Floor

SECO CANYON ROAD

BOUQUET CANYON ROAD

Vacant

suITe TenanT areasq. FT.

6811 Bank of America 6,900

6825 Rite Aid 20,034

6830 One Hour Martinizing 1,333

6831 Pet Supply Saugus 3,530

6832 18- Minute Wash 1,620

6833 Coffee Kiosk, Inc. 355

6834 The Cutting Edge 907

6841 Chad Moore 2,844

6842 Angels Nails 975

6845 Mandarin Express 1,577

6846 Kwik Stop Liquor 4 2,317

6849 New Gemini Beauty Supply 1,894

6859A Bouquet Canyon Florist 1,749

6860 Valencia Christian Center 6,093

6861 Lassens Natural Foods & Vitami 4,000

6863 SCV Clearwater 1,168

6871 Hydro Spa 1,808

6877 Persia Restaurant 1,430

6879 Jasmine Thai BBQ 1,300

6881-87 Goodwill Industries of So Cal 13,379

6881-87 Goodwill Industries of So Cal 13,379

6889A Bouquet Canyon Florist (STO) 2,457

6889B Fellowship Christian Church 5,028

6893A Suncal Insurance 775

6893C Maiboxes, Etc. 874

6893E Altered Flesh Tattoo 870

6893G Victoria Prasol DDS, Inc. 1,168

6893H The Tailgate 1,864

6893J Magical Asian Spa 1,511

6851 Las Delicias Taqueria 1,785

6859C Elegant Cabinets 2,654

6836 VACANT (STE 6836) 965

6838 VACANT (STE 6838) 988

6840 VACANT (STE 6840) 987

6837 VACANT (STE 6837) 3,477

Site Plan


6865 VACANT (STE 6865) 1,515

6867 VACANT (STE 6867) 1,630

6869 VACANT (STE 6869) 5,108

6893B VACANT (STE 6893B) 820

6893D VACANT (STE 6893D) 864


6893F VACANT (STE 6893F) 894

6893I VACANT (STE 6893I) 901

6893L VACANT (STE 6893L) 865

6893M VACANT (STE 6893M) 839

6893N VACANT (STE 6893N) 866


6893O VACANT (STE 6893O) 1,167

6859G VaCant (Ste 6859G) 1,491

total VaCant SF 27,816

total SF 117,576

santa Clari ta p laza | 14property DesCriptioN

ProPerTy DesCriPTion


location

santa Clarita plaza is located at 26811-26893 Bouquet Canyon road and 26830-26860 seco Canyon road in the city of santa Clarita, California 91350.

Parcels

the project consists of one parcel (2808-004-004) containing a total of approximately 12.96 acres of land area.

Zoning

the shopping center is zoned shopping Center (sCCC) per los angeles County

Parking

the property contains approximately 359 parking stalls. Based on the total building area of 115,557 sF, the parking ratio is approximately 3.1 stalls per 1,000 square feet of leasable area.

Street frontage

the site benefits from approximately 950 feet of frontage along Bouquet Canyon road and over 790 of frontage along seco Canyon road.

access

ingress and egress to santa Clarita plaza is available as accessed from Bouquet Canyon road (4 entrances) and seco Canyon road (3 entrances).

traffic Counts

traffic count at Bouquet Canyon road and seco Canyon road is approximately 75,450 cars per day.

Built

the property was built in 1966 with major renovations in the last five (5) years including roof, parking lot, and walkways.

JC

Highlight

Santa Clarita Plaza

tenant # Of lOCatiOnS uSe WeBSite SaleS Market CaPitaliZatiOn

Bank of america 6,011 a financial holding company www.bankofamerica.com $71.07 B $141.69 BNyse:BaC

rite aid 4,901 Drugstore chain www.riteaid.com $26.2 B $13 BNyse:raD

Goodwill industries of soCal 2,300 non-profit organization www.goodwill.com$3.25 BGoodwill industries, international (parent)

N/a

Mailboxes, etc.(and the ups store) 6,000 Global franchise of retail business

service centers www.mbe.com $42 B $58.77 BNyse:ups

MajOr tenantS

santa Clari ta p laza | 18teNaNts

rent rOll Market

Square % of Lease Term Rental Rates Recovery Percentage Rent % / Tenant Leasing Assumption /

Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Sales Breakpoint Improvements Commissions Market Rent Comments/Options

6836 VACANT (STE 6836) 965 0.82% Dec-2013 Nov-2018 Dec-2013 $2,413 $2.50 $28,950 $30.00 - $12.36 $9.56 Market Dec-2014 $2,485 $2.58 $29,819 $30.90 $11,927 $9,222 Dec-2015 $2,560 $2.65 $30,716 $31.83 6.00% Dec-2016 $2,636 $2.73 $31,633 $32.78 Dec-2017 $2,716 $2.81 $32,588 $33.77



6837 VACANT (STE 6837) 3,477 2.96% Dec-2013 Nov-2020 Dec-2013 $6,085 $1.75 $73,017 $21.00 - $15.45 $7.96 Market Dec-2014 $6,206 $1.79 $74,477 $21.42 $53,720 $27,684 Dec-2015 $6,331 $1.82 $75,972 $21.85 5.10% Dec-2016 $6,459 $1.86 $77,502 $22.29 Dec-2017 $6,586 $1.89 $79,032 $22.73 Dec-2018 $6,719 $1.93 $80,632 $23.19 Dec-2019 $6,853 $1.97 $82,231 $23.65

6865 VACANT (STE 6865) 1,515 1.29% Dec-2013 Nov-2018 Dec-2013 $3,030 $2.00 $36,360 $24.00 - $12.36 $7.64 Market Dec-2014 $3,121 $2.06 $37,451 $24.72 $18,725 $11,582 Dec-2015 $3,214 $2.12 $38,572 $25.46 6.00% Dec-2016 $3,312 $2.19 $39,738 $26.23 Dec-2017 $3,410 $2.25 $40,920 $27.01

6867 VACANT (STE 6867) 1,630 1.39% Dec-2013 Nov-2018 Dec-2013 $3,668 $2.25 $44,010 $27.00 - $12.36 $8.60 Market Dec-2014 $3,778 $2.32 $45,330 $27.81 $20,147 $14,019 Dec-2015 $3,890 $2.39 $46,683 $28.64 6.00% Dec-2016 $4,007 $2.46 $48,085 $29.50 Dec-2017 $4,128 $2.53 $49,536 $30.39

6869 VACANT (STE 6869) 5,108 4.34% Dec-2013 Nov-2020 Dec-2013 $8,939 $1.75 $107,268 $21.00 - $15.45 $7.96 Market Dec-2014 $9,118 $1.79 $109,413 $21.42 $78,919 $40,671 Dec-2015 $9,301 $1.82 $111,610 $21.85 5.10% Dec-2016 $9,488 $1.86 $113,857 $22.29 Dec-2017 $9,675 $1.89 $116,105 $22.73 Dec-2018 $9,871 $1.93 $118,455 $23.19 Dec-2019 $10,067 $1.97 $120,804 $23.65

$2.25 NNN (<2K SF)

NNN $1.75 NNN (2K - 6,100 SF)

NNN $2.25 NNN (<2K SF)




$1.75 NNN (2K - 6,100 SF)

NNN

NNN

6893B VACANT (STE 6893B) 820 0.70% Dec-2013 Nov-2018 Dec-2013 $1,845 $2.25 $22,140 $27.00 - $12.36 $8.60 Market Dec-2014 $1,900 $2.32 $22,804 $27.81 $10,135 $7,053 Dec-2015 $1,957 $2.39 $23,485 $28.64 6.00% Dec-2016 $2,016 $2.46 $24,190 $29.50 Dec-2017 $2,077 $2.53 $24,920 $30.39

6893D VACANT (STE 6893D) 864 0.73% Dec-2013 Nov-2018 Dec-2013 $1,944 $2.25 $23,328 $27.00 - $12.36 $8.60 Market Dec-2014 $2,002 $2.32 $24,028 $27.81 $10,679 $7,431 Dec-2015 $2,062 $2.39 $24,745 $28.64 6.00% Dec-2016 $2,124 $2.46 $25,488 $29.50 Dec-2017 $2,188 $2.53 $26,257 $30.39

6893F VACANT (STE 6893F) 894 0.76% Dec-2013 Nov-2018 Dec-2013 $2,012 $2.25 $24,138 $27.00 - $12.36 $8.60 Market Dec-2014 $2,072 $2.32 $24,862 $27.81 $11,050 $7,689 Dec-2015 $2,134 $2.39 $25,604 $28.64 6.00% Dec-2016 $2,198 $2.46 $26,373 $29.50 Dec-2017 $2,264 $2.53 $27,169 $30.39

6893I VACANT (STE 6893I) 901 0.77% Dec-2013 Nov-2018 Dec-2013 $1,216 $1.35 $14,596 $16.20 - $12.36 $5.16 Market Dec-2014 $1,253 $1.39 $15,038 $16.69 $11,136 $4,650 Dec-2015 $1,291 $1.43 $15,488 $17.19 6.00% Dec-2016 $1,329 $1.48 $15,948 $17.70 Dec-2017 $1,369 $1.52 $16,425 $18.23

6893L VACANT (STE 6893L) 865 0.74% Dec-2013 Nov-2018 Dec-2013 $1,168 $1.35 $14,013 $16.20 - $12.36 $5.16 Market Dec-2014 $1,203 $1.39 $14,437 $16.69 $10,691 $4,464 Dec-2015 $1,239 $1.43 $14,869 $17.19 6.00% Dec-2016 $1,276 $1.48 $15,311 $17.70 Dec-2017 $1,314 $1.52 $15,769 $18.23

6893M VACANT (STE 6893M) 839 0.71% Dec-2013 Nov-2018 Dec-2013 $1,133 $1.35 $13,592 $16.20 - $12.36 $5.16 Market Dec-2014 $1,167 $1.39 $14,003 $16.69 $10,370 $4,330 Dec-2015 $1,202 $1.43 $14,422 $17.19 6.00% Dec-2016 $1,238 $1.48 $14,850 $17.70 Dec-2017 $1,275 $1.52 $15,295 $18.23

NNN $1.35 NNN (Bldg 26893)

NNN $2.25 NNN (Bldg 26893)

NNN

NNN $2.25 NNN (Bldg 26893)

$2.25 NNN (Bldg 26893)

NNN $1.35 NNN (Bldg 26893)

NNN $1.35 NNN (Bldg 26893)

3/2/2012 9:52 AM (WJC)1

This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group


rent rOll

Market



6893N VACANT (STE 6893N) 866 0.74% Dec-2013 Nov-2018 Dec-2013 $1,169 $1.35 $14,029 $16.20 - $12.36 $5.16 Market Dec-2014 $1,204 $1.39 $14,454 $16.69 $10,704 $4,469 Dec-2015 $1,241 $1.43 $14,887 $17.19 6.00% Dec-2016 $1,277 $1.48 $15,328 $17.70 Dec-2017 $1,316 $1.52 $15,787 $18.23

6893O VACANT (STE 6893O) 1,167 0.99% Dec-2013 Nov-2018 Dec-2013 $1,575 $1.35 $18,905 $16.20 - $12.36 $5.16 Market Dec-2014 $1,623 $1.39 $19,477 $16.69 $14,424 $6,022 Dec-2015 $1,672 $1.43 $20,061 $17.19 6.00% Dec-2016 $1,721 $1.48 $20,656 $17.70 Dec-2017 $1,773 $1.52 $21,274 $18.23

6811 Bank of America 6,900 5.87% Jul-1967 Dec-2016 Current $15,323 $2.22 $183,879 $26.65 - - - OptionATM Jan-2013 $15,784 $2.29 $189,405 $27.45

Jan-2014 $16,255 $2.36 $195,063 $28.27 Jan-2015 $16,744 $2.43 $200,928 $29.12 Jan-2016 $17,244 $2.50 $206,931 $29.99

Jan-2017 Dec-2021 FUTURE $17,764 $2.57 $213,166 $30.89 - $3.48 $2.46 OptionOPTION Jan-2018 $18,297 $2.65 $219,558 $31.82 $23,997 $16,976

Jan-2019 $18,849 $2.73 $226,182 $32.78 1.50% Jan-2020 $19,412 $2.81 $232,944 $33.76 Jan-2021 $19,993 $2.90 $239,913 $34.77

Jan-2022 Dec-2026 FUTURE $19,993 $2.90 $239,920 $34.77 - $4.03 $2.77 MarketOPTION Jan-2023 $20,591 $2.98 $247,089 $35.81 $27,819 $19,107

Jan-2024 $21,212 $3.07 $254,541 $36.89 1.50% Jan-2025 $21,850 $3.17 $262,200 $38.00 Jan-2026 $22,506 $3.26 $270,066 $39.14

6825 Rite Aid 20,034 17.04% Dec-1966 May-2018 Current $12,224 $0.61 $146,693 $7.32 3.00% - - OptionNatural

Jun-2018 May-2023 FUTURE $12,224 $0.61 $146,693 $7.32 3.00% - - OptionOPTION Natural

NNN $1.35 NNN (Bldg 26893)

NNN $1.35 NNN (Bldg 26893)

NNN+5% Admin (w/Amort)BofA Analysis assumes tenant renews at 103% of prior rent. Renewal costs modeled. $2.50 NNN (2K - 6,100 SF)

NNN+5% Admin (w/Amort)BofA Suite includes 1,500 SF of ATM space leased at $1,688.26 /mo (Included in the rent modeled). Analysis assumes tenant exercises two (2) five (5) year options at $17,246 /mo with 3% annual increases and renewal costs (Modeled Below).

$2.50 NNN (2K - 6,100 SF)

GROSS Tenant pays minimum rent of $146,693/yr & percentage rent of 3% of gross sales over a nat. b.p. Two (2) five (5) year options at same rent but shall commence paying their pro rata share of OpEx (Modeled Below).

$1.50 NNN (Anchors)

NNN+5% Admin (w/Amort)BofA Analysis assumes tenant renews at 103% of prior rent. Renewal costs modeled. $2.50 NNN (2K - 6,100 SF)

NNN + 5% Admin (Rite Aid) Analysis assumes tenant exercises option at same rent plus their pro rata share of OpEx. Tenant shall have Prop 13 Protection from more than two (2) increases in taxes due to a

$1.50 NNN (Anchors)

Jun-2023 May-2028 FUTURE $12,224 $0.61 $146,693 $7.32 3.00% - - MarketOPTION Natural

6830 One Hour Martinizing 1,333 1.13% Nov-1989 Dec-2018 Current $4,244 $3.18 $50,923 $38.20 - - - Market Jan-2013 $4,456 $3.34 $53,467 $40.11 Jan-2014 $4,679 $3.51 $56,146 $42.12 Jan-2015 $4,912 $3.69 $58,945 $44.22 Jan-2016 $5,158 $3.87 $61,891 $46.43 Jan-2017 $5,416 $4.06 $64,997 $48.76 Jan-2018 $5,686 $4.27 $68,236 $51.19

6831 Pet Supply Saugus 3,530 3.00% Mar-2002 Feb-2017 Current $10,373 $2.94 $124,481 $35.26 - - - Market Mar-2013 $11,202 $3.17 $134,422 $38.08 Mar-2014 $12,099 $3.43 $145,189 $41.13 Mar-2015 $13,067 $3.70 $156,803 $44.42 Mar-2016 $14,114 $4.00 $169,369 $47.98

NNN + 5% Admin (Rite Aid) Analysis assumes tenant exercises option at same rent plus their pro rata share of OpEx. Tenant shall have Prop 13 Protection from more than two (2) increases in taxes due to a change of ownership, effective June 2018. Percentage rent is offset by OpEx Reimb during options.

$1.50 NNN (Anchors)

change of ownership, effective June 2018. Percentage rent is offset by OpEx Reimb during options.

NNN+10% Ad on C,I,M (No Rf Am) $2.25 NNN (2K - 6,100 SF)

NNN+15% Ad (CAM w/Amort) No Mg Option to Terminate effective after 12/2011 with 4 months notice. Need to verify terms of Termination Option. Tenant is subject to percentage rent.

$2.75 NNN (<2K SF)

3/2/2012 9:52 AM (WJC)2



rent rOll

Market



6832 18- Minute Wash 1,620 1.38% Mar-2009 Feb-2014 Current $4,868 $3.00 $58,417 $36.06 - - - Market Mar-2013 $5,014 $3.10 $60,167 $37.14

6833 Coffee Kiosk, Inc. 355 0.30% Mar-2000 May-2013 Current $1,219 $3.43 $14,631 $41.22 - - - OptionMTM

Jun-2013 May-2018 FUTURE $1,243 $3.50 $14,910 $42.00 - $2.47 $3.34 MarketOPTION Jun-2014 $1,280 $3.61 $15,357 $43.26 $878 $1,187

Jun-2015 $1,318 $3.71 $15,819 $44.56 1.50% Jun-2016 $1,358 $3.82 $16,291 $45.89 Jun-2017 $1,398 $3.94 $16,781 $47.27

6834 The Cutting Edge 907 0.77% May-2001 Apr-2021 Current $2,709 $2.99 $32,511 $35.84 - - - Market May-2013 $2,791 $3.08 $33,486 $36.92 May-2014 $2,874 $3.17 $34,493 $38.03 May-2015 $2,961 $3.26 $35,527 $39.17 May-2016 $3,049 $3.36 $36,588 $40.34 May-2017 $3,140 $3.46 $37,686 $41.55 May-2018 $3,235 $3.57 $38,820 $42.80 May-2019 $3,332 $3.67 $39,981 $44.08 May-2020 $3,432 $3.78 $41,187 $45.41

6841 Chad Moore 2,844 2.42% Sep-2007 Oct-2015 Current $8,318 $2.92 $99,814 $35.10 - - - MarketRENEW

l l $ $ $ $ k

NNN+15% Ad (Fixed) Tenant is currently MTM. Analysis assumes tenant remains in place at current terms for one (1) year after the analysis start, then executes a one (1) five (5) year renewal at FMV with 3% annual rent increases and renewal costs (Modeled Below). Tenant reimburses a fixed pro rata share of 0.90% of operating expenses.

$3.50 NNN (<2K SF)

NNN +15% Ad (w/Amort) Tenant pays annual CPI rent increases. Analysis assumes 3%. Current rent reflects a 3% increase on 3/12. Tenant has one (1) five (5) year option at FMR with a minimum 3% increase (Not Modeled). Right to terminate effective after 3/2014 with 4 Months notice.

$2.50 NNN (<2K SF)

NNN+10% Ad Not Tx (No Rf) Tenant has annual CPI rent increases. Analysis assumes 3%. Current rent reflects a 3% increase on 5/12.

$3.00 NNN (<2K SF)

NNN+15% Ad (CAM w/Amort) No Mg Analysis assumes tenant renews at market terms with renewal costs. $3.50 NNN (<2K SF)

d f h h d

NNN+10% Ad not Tax (Full Amort Lease expires 10/12. Analysis assumes a 3-year renewal at current rent. No leasing costs assumed. Tenant has one (1) five (5) year option at FMR, not less than prior rent (Not Modeled).

$2.50 NNN (2K - 6,100 SF)

6842 Angels Nails 975 0.83% Jan-2004 Dec-2019 Current $2,708 $2.78 $32,497 $33.33 - - - Market Jan-2013 $2,789 $2.86 $33,472 $34.33 Jan-2014 $2,873 $2.95 $34,476 $35.36 Jan-2015 $2,959 $3.04 $35,510 $36.42 Jan-2016 $3,048 $3.13 $36,572 $37.51 Jan-2017 $3,140 $3.22 $37,674 $38.64 Jan-2018 $3,234 $3.32 $38,805 $39.80 Jan-2019 $3,330 $3.42 $39,965 $40.99

6845 Mandarin Express 1,577 1.34% Apr-2004 Jul-2016 Current $4,609 $2.92 $55,303 $35.07 - - - Market Aug-2012 $4,793 $3.04 $57,513 $36.47 Aug-2013 $4,985 $3.16 $59,816 $37.93 Aug-2014 $5,184 $3.29 $62,213 $39.45 Aug-2015 $5,392 $3.42 $64,704 $41.03

6846 Kwik Stop Liquor 4 2,317 1.97% Sep-1989 Aug-2017 Current $7,633 $3.29 $91,593 $39.53 - - - Market Sep-2012 $8,243 $3.56 $98,913 $42.69 Sep-2013 $8,903 $3.84 $106,837 $46.11 Sep-2014 $9,616 $4.15 $115,387 $49.80 Sep-2015 $10,384 $4.48 $124,608 $53.78

6849 New Gemini Beauty Supply 1,894 1.61% May-2004 May-2014 Current $4,239 $2.24 $50,874 $26.86 - - - Market Jun-2013 $4,367 $2.31 $52,407 $27.67 $2.50 NNN (<2K SF)

6851 Las Delicias Mexican Taqueria 1,785 1.52% Mar-2012 Jun-2017 Current $3,302 $1.85 $39,627 $22.20 - - - Market Jul-2013 $3,570 $2.00 $42,840 $24.00 Jul-2014 $3,838 $2.15 $46,053 $25.80 Jul-2015 $4,106 $2.30 $49,266 $27.60 Jul-2016 $4,373 $2.45 $52,479 $29.40

6859A Bouquet Canyon Florist 1,749 1.49% Jan-2006 Dec-2015 Current $4,255 $2.43 $51,065 $29.20 - - - Market Jan-2013 $4,383 $2.51 $52,592 $30.07 Jan-2014 $4,514 $2.58 $54,167 $30.97 Jan-2015 $4,649 $2.66 $55,793 $31.90

NNN+10% Ad Not Tx (No Rf) Right to Terminate with 90-day notice. Tenant pays CPI rent increase effective 1/12, analysis assumes 3% annual rent increases.

$2.50 NNN (<2K SF)

NNN+15% Ad (CAM w/Amort) No Mg Right to Terminate with 120-day notice. Tenant is subject to percentage rent. $2.50 NNN (2K - 6,100 SF)

NNN+10% Ad Not Tx (No Rf) $2.50 NNN (<2K SF)

NNN + 15% Admin All Tenant has one month of free rent on 6/12 ($3,302.25). Analysis assumes seller to guarantee.

$2.00 NNN (<2K SF)

NNN+10% Ad Not Tx (No Rf) Tenant has one (1) five (5) year option to renew at FMV.

NNN+15% Ad (CAM w/Amort) No Mg $2.25 NNN (<2K SF)

3/2/2012 9:52 AM (WJC)3



rent rOll

Market



6859C Elegant Cabinets 2,654 2.26% Dec-2011 Nov-2016 Current $4,910 $1.85 $58,919 $22.20 - - - Market Dec-2012 $5,155 $1.94 $61,865 $23.31 Dec-2013 $5,414 $2.04 $64,970 $24.48 Dec-2014 $5,684 $2.14 $68,208 $25.70 Dec-2015 $5,967 $2.25 $71,605 $26.98

6859G Bakery 1,491 1.27% Jun-2012 May-2015 Current $3,057 $2.05 $36,679 $24.60 - - - MarketASSUMED

6860 Valencia Christian Center 6,093 5.18% Sep-2009 Nov-2014 Current $12,750 $2.09 $153,000 $25.11 - - - Market Dec-2012 $13,298 $2.18 $159,576 $26.19 Dec-2013 $13,902 $2.28 $166,826 $27.38

6861 Lassens Natural Foods & Vitami 4,000 3.40% Oct-1998 Sep-2013 Current $5,902 $1.48 $70,822 $17.71 - - - Market Oct-2012 $6,080 $1.52 $72,960 $18.24

6863 SCV Clearwater 1,168 0.99% Sep-2009 Oct-2014 Current $2,969 $2.54 $35,625 $30.50 - - - Market Nov-2012 $3,087 $2.64 $37,049 $31.72 Nov-2013 $3,211 $2.75 $38,532 $32.99

6871 Hydro Spa 1,808 1.54% Mar-2011 Mar-2016 Current $6,410 $3.55 $76,923 $42.55 - - - MarketRENEW

6877 Persia Restaurant 1,430 1.22% Jun-2004 Sep-2014 Current $3,693 $2.58 $44,311 $30.99 - - - Market Oct-2012 $4,062 $2.84 $48,749 $34.09 Oct-2013 $4,468 $3.12 $53,611 $37.49

6879 Jasmine Thai BBQ 1,300 1.11% Jan-2006 Dec-2015 Current $4,218 $3.24 $50,619 $38.94 - - - Market Jan-2013 $4,388 $3.38 $52,650 $40.50 Jan-2014 $4,562 $3.51 $54,743 $42.11 Jan-2015 $4,745 $3.65 $56,940 $43.80

6881-87 Goodwill Industries of So Cal 13,379 11.38% Oct-2009 Sep-2014 Current $27,725 $2.07 $332,705 $24.87 - - - Option Oct-2012 $28,698 $2.15 $344,375 $25.74

O t 2013 $29 701 $2 22 $356 417 $26 64

NNN+10% Admin Tenant has one (1) five (5) year option at FMV. $1.75 NNN (2K - 6,100 SF)

2009 BY ($795,621) Tenant has one (1) five (5) year option at FMV (Not Modeled). $1.75 NNN (2K - 6,100 SF)

NNN Analysis assumes tenant is in-place as of the analysis start date for a 3-year term at $2.05 /sf/mo flat. Analysis assumes any leasing costs to have already been paid.

$2.00 NNN (<2K SF)

NNN+15% Admin All (Full Amort) Tenant has one (1) three (3) year option at unknown terms, but not less than 104% of prior rent (Not Modeled).

$2.00 NNN (<2K SF)

NNN+10% Ad not Tax (Full Amort Analysis assumes tenant pays annual CPI rent increases every October, Modeled 3%. $1.50 NNN (2K - 6,100 SF)

NNN+10% Ad Not Tx (No Rf) Tenant has one (1) five (5) year option at FMV, not less than prior rent (Not Modeled). Right to Terminate with six (6) months notice. Need to verify terms of Termination Option.

$2.25 NNN (<2K SF)

NNN Lease expires 3/13. Analysis assumes a 3-year renewal at current rent. No leasing costs assumed.

$2.25 NNN (<2K SF)

NNN + 15% Ad on CAM (No Mgmt) Analysis assumes tenant renews upon expiration for a ten (10) year term at market rent with a 10% midterm increase with

$1.50 NNN (Anchors)

NNN+10% Ad Not Tx (No Rf) $2.75 NNN (<2K SF)

Oct-2013 $29,701 $2.22 $356,417 $26.64

Oct-2014 Sep-2024 FUTURE $20,671 $1.55 $248,047 $18.54 - $5.30 $1.44 MarketOPTION Oct-2019 $22,733 $1.70 $272,798 $20.39 $70,969 $19,224

0.74%

6889A Bouquet Canyon Florist (STO) 2,457 2.09% Jan-2002 Dec-2015 Current $544 $0.22 $6,526 $2.66 - - - Market Jan-2013 $561 $0.23 $6,732 $2.74 Jan-2014 $577 $0.24 $6,929 $2.82 Jan-2015 $594 $0.24 $7,125 $2.90

6889B Fellowship Christian Church 5,028 4.28% Apr-2002 Mar-2017 Current $3,500 $0.70 $42,000 $8.35 - - - Market Oct-2012 $3,603 $0.72 $43,241 $8.60 Oct-2013 $3,712 $0.74 $44,548 $8.86 Oct-2014 $3,825 $0.76 $45,906 $9.13 Oct-2015 $3,939 $0.78 $47,263 $9.40 Oct-2016 $4,056 $0.81 $48,671 $9.68

6893A Suncal Insurance 775 0.66% Sep-2005 Aug-2015 Current $2,067 $2.67 $24,807 $32.01 - - - MarketRENEW

6893C Maiboxes, Etc. 874 0.74% Jun-2000 Aug-2018 Current $2,722 $3.11 $32,662 $37.37 - - - Market Sep-2012 $2,858 $3.27 $34,296 $39.24 Sep-2013 $2,944 $3.37 $35,327 $40.42 Sep-2014 $3,032 $3.47 $36,385 $41.63 Sep-2015 $3,123 $3.57 $37,477 $42.88 Sep-2016 $3,216 $3.68 $38,596 $44.16 Sep-2017 $3,313 $3.79 $39,758 $45.49

rent with a 10% midterm increase with renewal leasing costs (Modeled Below). Tenant occupies Suites 6881A, 6881B, 6883B, 6885B, and 6887.

GROSS $0.00 (CAM ONLY)

NNN + 15% Ad on CAM (No Mgmt) Analysis assumes tenant renews at market terms with renewal costs. $1.50 NNN (Anchors)

GROSS Lease expires 8/12. Analysis assumes a 3-year renewal at current rent. No leasing costs assumed.

$2.50 NNN (Bldg 26893)

GROSS Landlord has the Right to Terminate with 120-days notice. $0.75 NNN (2K - 6,100 SF)

NNN+10% Ad Not Tx (No Rf) Analysis assumes tenant pays annual CPI rent increases every September, effective 9/2013, Modeled 3%.

$2.50 NNN (Bldg 26893)

3/2/2012 9:52 AM (WJC)4



rent rOll

Market



6893E Altered Flesh Tattoo 870 0.74% Mar-2003 Feb-2016 Current $2,845 $3.27 $34,140 $39.24 - - - MarketRENEW Mar-2012 $3,130 $3.60 $37,558 $43.17

6893G Victoria Prasol DDS, Inc. 1,168 0.99% Sep-2003 Sep-2013 Current $2,026 $1.73 $24,311 $20.81 - - - Market Oct-2012 $2,087 $1.79 $25,042 $21.44 $1.75 NNN (Bldg 26893)

6893H The Tailgate 1,864 1.59% Jul-2003 Aug-2013 Current $6,010 $3.22 $72,120 $38.69 - - - Market Sep-2012 $6,190 $3.32 $74,280 $39.85 $3.00 NNN (Bldg 26893)

6893J Magical Asian Spa 1,511 1.29% Jan-2009 Jun-2015 Current $2,758 $1.83 $33,097 $21.90 - - - MarketRENEW

TOTALS / AVERAGES 117,576 $180,131 $1.88 $2,161,574 $22.59

OCCUPIED SqFt 95,690 81.4%VACANT SqFt 21,886 18.6%

TOTAL SqFt 117,576 100.0%

NNN+10% Ad Not Tx (No Rf) Lease expires 2/13. Analysis assumes a 3-year renewal at current rent. No leasing costs assumed.

$2.50 NNN (Bldg 26893)

GROSS

GROSS

CAM + 15% Admin (w/Amort) Lease expires 6/12. Analysis assumes a 3-year renewal at current rent. No leasing costs assumed.

$1.35 NNN (Bldg 26893)

3/2/2012 9:52 AM (WJC)5



finanCial aSSuMPtiOnSGLOBAL VACANT SPACE LEASING SECOND GENERATION LEASING

Bldg 26893 <2,000 SF 2K - 6,100 SF Goodwill / Rite AidAnalysis Period Occupancy and Absorption Retention Ratio 65% 65% 65% 75%

Commencement Date June 1, 2012 Projected Vacant at 6/1/12 21,886 SFEnd Date May 31, 2022 Currently Vacant as of 3/1/12 21,886 SF Financial TermsTerm 10 Years Percentage Vacant at 3/1/12 18.61% 2012 Monthly Market Rent See Rent Roll See Rent Roll See Rent Roll $1.50 PSF

Absorption Period 18 Month(s) Rent Adjustment 3.00% Annually 3.00% Annually 2.00% Annually 10% Every 5 YearsArea Measures Absorption Period Start Date June 1, 2012 Lease Term 5 Years 5 Years 7 Years 10 Years

Building Square Feet (NRSF) 117,576 SF First Absorption Occurs On December 1, 2013 Expense Reimbursement Type NNN NNN NNN NNN (No Mgmt) [4]Last Absorption Occurs On December 1, 2013

Growth Rates Tenanting CostsConsumer Price Index (CPI) 3.00% Financial Terms Bldg 26893 <2,000 SF 2K - 6,100 SF Rent Abatements [7]Other Income Growth Rate 3.00% 2012 Monthly Market Rent See Rent Roll See Rent Roll See Rent Roll New 2 Month(s) 2 Month(s) 3 Month(s) 3 Month(s)Operating Expenses 3.00% Rent Adjustment 3.00% Annually 3.00% Annually 2.00% Annually Renewal 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s)Real Estate Taxes 2.00% Lease Term 5 Years 5 Years 7 Years Weighted Average 0.70 Month(s) 0.70 Month(s) 1.05 Month(s) 0.75 Month(s)Market Rent Growth Expense Reimbursement Type NNN NNN NNN [4]

CY 2013 - 0.00% Rent Abatements 0 Month(s) 0 Month(s) 0 Month(s) Tenant Improvements ($/NRSF)CY 2014 - 3.00% Tenant Improvements ($/NRSF) $12.00 PSF $12.00 PSF $15.00 PSF New $12.00 PSF $12.00 PSF $15.00 PSF $25.00 PSFCY 2015 - 5.00% Commissions 6.00% 6.00% 6.00% Renewal $3.00 PSF $2.40 PSF $3.00 PSF $5.00 PSFCY 2016 - 5.00% Weighted Average $6.15 PSF $5.76 PSF $7.20 PSF $10.00 PSFCY 2017 - 3.00% EXPENSESCY 2018 - 3.00% Commissions [8]CY 2019 - 3.00% Operating Expense Source 2011 Actuals [5] New 6.00% 6.00% 6.00% 4.50%CY 2020 - 3.00% Renewal 1.50% 1.50% 1.50% 1.00%CY 2021 - 3.00% Management Fee (% of EGR) 2.50% Weighted Average 3.08% 3.08% 3.08% 1.88%

CY 2022+ - 3.00%Real Estate Taxes Reassessed Yes [6] Downtime

General Vacancy Loss 7.00% [1] Millage Rate 1.164386% New 9 Month(s) 9 Month(s) 9 Month(s) 12 Month(s)Special Assessments $54,777 Weighted Average 3 Month(s) 3 Month(s) 3 Month(s) 3 Month(s)

Capital Reserves (CY 2012 Value) $0.15 PSF [2]

Rite Aid Percentage RentEstimated Annual Sales $4,767,199 [3]

Notes:All market rent rates are stated on calendar-year basis.[1] General Vacancy Loss factor includes losses attributable to projected lease-up rollover downtime and fixturing downtime[1] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime.

The following tenants are excluded from this loss factor for current and assumed option terms: Bank of America, Goodwill and Rite Aid.[2] Capital Reserves do not inflate during the term of the analysis.[3] Analysis models 2011 gross sales of $4,767,199 grown by 3% for 2012. Analysis assumes sales volume to inflate 3% annually. Tenant pays a minimum annual

base rent of $146,693 plus 3% of Gross Sales over a natural breakpoint.[4] Analysis assumes all future tenants are assumed to reimburse their pro rata share of all expenses, including Management Fee.[5] Operating expenses are based on the 2011 Actuals, grown by 3% for 2012.[6] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.164386% plus special assessments of $54,777.[7] Rent Abatement includes NNN charges as well as base rent.[8] Leasing Commissions are calculated by applying 100% of the rates shown above for lease years 1-5, and 50% of the above rates for lease years 6+.[9] The following tenants are assumed to exercise options: Bank of America, Goodwill, Rite Aid and Coffee Kiosk.[10] The following tenants are assumed to renew for 3-years at previous rent with no leasing costs assumed: Altered Flesh Tattoo, Chad Moore, Hydro Spa, Magical Asian Spa and Suncal Insurance.[11] Current tenants reimburse amortized capital repairs.

3/2/2012 9:55 AM (WJC)1


santa Clari ta p laza | 24FiNaNCials

CaSh flOW PrOjeCtiOnS

Fiscal Year Ending - May 31 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Physical Occupancy 81.39% 88.85% 97.75% 97.50% 97.51% 98.77% 94.90% 98.49% 97.11% 97.46% 99.02%

Total Operating Expenses PSF Per Year $5.52 $5.70 $5.84 $5.97 $6.09 $6.21 $6.35 $6.51 $6.65 $6.81 $7.36

[1]FY 2013

REVENUES $/SF/MOScheduled Base Rent

Gross Potential Rent $1.91 $2,690,249 $2,754,787 $2,715,903 $2,708,045 $2,707,104 $2,679,993 $2,730,009 $2,812,600 $2,902,546 $2,989,920 $3,066,209Absorption & Turnover Vacancy (0.35) (487,671) (297,261) (65,958) (88,266) (70,881) (37,263) (148,690) (63,344) (132,642) (100,807) (44,312)Base Rent Abatements 0.00 0 (11,877) (22,646) (19,717) (13,801) (24,422) (34,958) (14,781) (35,394) (18,922) (28,601)

Total Scheduled Base Rent 1.56 2,202,578 2,445,649 2,627,299 2,600,062 2,622,422 2,618,308 2,546,361 2,734,475 2,734,510 2,870,191 2,993,296

Expense Reimbursements 0.28 401,954 455,396 536,545 568,105 586,614 607,904 664,513 703,233 693,831 737,772 789,586Retail Sales Percent Revenue 0.00 2,455 6,930 11,538 16,285 21,175 26,211 0 0 0 0 0Roof Income 0.00 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

TOTAL GROSS REVENUE 1.85 2,608,987 2,909,975 3,177,382 3,186,452 3,232,211 3,254,423 3,212,874 3,439,708 3,430,341 3,609,963 3,784,882General Vacancy Loss 0.00 0 0 (106,262) (87,752) (106,170) (138,886) (28,756) (122,061) (55,570) (96,846) (160,505)

EFFECTIVE GROSS REVENUE 1.85 2,608,987 2,909,975 3,071,120 3,098,700 3,126,041 3,115,537 3,184,118 3,317,647 3,374,771 3,513,117 3,624,377

OPERATING EXPENSESRepairs & Maintenance (0.11) (157,881) (162,617) (167,496) (172,522) (177,699) (183,028) (188,519) (194,176) (200,000) (206,000) (212,180)Utilities (0.03) (41,701) (42,953) (44,242) (45,569) (46,936) (48,344) (49,794) (51,288) (52,827) (54,412) (56,044)Management Fee (0.05) (65,225) (72,749) (76,778) (77,468) (78,151) (77,888) (79,603) (82,941) (84,369) (87,828) (90,609)Insurance (0.03) (37,050) (38,162) (39,307) (40,486) (41,701) (42,952) (44,240) (45,567) (46,934) (48,342) (49,793)Property Taxes (0.25) (347,419) (353,272) (359,241) (365,331) (371,542) (377,877) (384,339) (390,930) (397,653) (404,511) (456,389)

TOTAL OPERATING EXPENSES (0.46) (649,276) (669,753) (687,064) (701,376) (716,029) (730,089) (746,495) (764,902) (781,783) (801,093) (865,015)

NET OPERATING INCOME 1.39 1,959,711 2,240,222 2,384,056 2,397,324 2,410,012 2,385,448 2,437,623 2,552,745 2,592,988 2,712,024 2,759,362

CAPITAL COSTSTenant Improvements 0.00 0 (347,899) (156,732) (67,561) (74,116) (102,690) (138,922) (50,963) (147,450) (90,327) (101,534)Leasing Commissions 0.00 0 (196,585) (74,910) (49,673) (51,878) (55,173) (96,759) (40,910) (81,172) (71,486) (65,740)Capital Reserves (0.01) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636) (17,636)

TOTAL CAPITAL COSTS (0.01) (17,636) (562,120) (249,278) (134,870) (143,630) (175,499) (253,317) (109,509) (246,258) (179,449) (184,910)

OPERATING CASH FLOW $1.38 $1,942,075 $1,678,102 $2,134,778 $2,262,454 $2,266,382 $2,209,949 $2,184,306 $2,443,236 $2,346,730 $2,532,575 $2,574,452

ACQUISITION & RESIDUAL SALEACQUISITION & RESIDUAL SALEPurchase Price ($24,925,000) 0 0 0 0 0 0 0 0 0 0Tenant Improvements ($297,038) 0 297,038 0 0 0 0 0 0 0 0Leasing Commissions ($166,273) 0 166,273 0 0 0 0 0 0 0 0 All CashNet Residual Value [2] 0 0 0 0 0 0 0 0 0 0 33,974,645 IRR

CASH FLOW BEFORE DEBT ($25,388,000) $1,942,075 $2,141,413 $2,134,778 $2,262,454 $2,266,382 $2,209,949 $2,184,306 $2,443,236 $2,346,730 $36,507,220 10.74%TOTAL FINANCING OBLIGATION [3]

Loan Funding / Payoff 19,500,000 0 0 0 0 0 0 0 0 0 (18,278,386)Loan Fees (195,000) 0 0 0 0 0 (195,000) 0 0 0 0 LeveragedAnnual Debt Service 0 (1,252,680) (1,252,680) (1,252,680) (1,252,680) (1,252,680) (1,460,176) (1,479,039) (1,479,039) (1,479,039) (1,479,039) IRR

CASH FLOW AFTER DEBT ($6,083,000) $689,395 $888,733 $882,098 $1,009,774 $1,013,702 $554,773 $705,267 $964,197 $867,691 $16,749,795 19.98%

NOI Return 7.72% 8.82% 9.39% 9.44% 9.49% 9.40% 9.60% 10.05% 10.21% 10.68%

LEVERAGED Cash Return 11.33% 14.61% 14.50% 16.60% 16.66% 9.12% 11.59% 15.85% 14.26% 17.32%

[1] Based on 117,576 square feet.[2] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 8.00% and applying a 1.50% Cost of Sale.[3] See schedule titled 'Detailed Leverage Summary' for further detail.

3/2/2012 9:55 AM (WJC)1


santa Clari ta p laza | 26FiNaNCials

leaSe exPiratiOnSleVeraged SuMMary

Total Annual CumulativeDate Tenant Suites SF (% of SF) [1] (% of SF) [1]

May-13 Coffee Kiosk, Inc. 6833 355 0.30%

FYE 2013 Totals 355 0.30% 0.30%

Aug-13 The Tailgate 6893H 1,864 1.59%Sep-13 Lassens Natural Foods & Vitami 6861 4,000 3.40%Sep-13 Victoria Prasol DDS, Inc. 6893G 1,168 0.99%Feb-14 18- Minute Wash 6832 1,620 1.38%May-14 New Gemini Beauty Supply 6849 1,894 1.61%

FYE 2014 Totals 10,546 8.97% 9.27%

Sep-14 Persia Restaurant 6877 1,430 1.22%Sep-14 Goodwill Industries of So Cal 6881-87 13,379 11.38%Oct-14 SCV Clearwater 6863 1,168 0.99%Nov-14 Valencia Christian Center 6860 6,093 5.18%May-15 Bakery 6859G 1,491 1.27%

FYE 2015 Totals 23,561 20.04% 29.31%

Jun-15 Magical Asian Spa 6893J 1,511 1.29%Aug-15 Suncal Insurance 6893A 775 0.66%Oct-15 Chad Moore 6841 2,844 2.42%Dec-15 Bouquet Canyon Florist 6859A 1,749 1.49%Dec-15 Jasmine Thai BBQ 6879 1,300 1.11%Dec-15 Bouquet Canyon Florist (STO) 6889A 2,457 2.09%Feb-16 Altered Flesh Tattoo 6893E 870 0.74%Mar-16 Hydro Spa 6871 1,808 1.54%

FYE 2016 Totals 13,314 11.32% 40.63%

Jul-16 Mandarin Express 6845 1,577 1.34%Nov-16 Elegant Cabinets 6859C 2,654 2.26%Dec-16 Bank of America 6811 6,900 5.87%Dec 16 Bank of America 6811 6,900 5.87%Feb-17 Pet Supply Saugus 6831 3,530 3.00%Mar-17 Fellowship Christian Church 6889B 5,028 4.28%

FYE 2017 Totals 19,689 16.75% 57.38%

Jun-17 Las Delicias Mexican Taqueria 6851 1,785 1.52%Aug-17 Kwik Stop Liquor 4 6846 2,317 1.97%May-18 Rite Aid 6825 20,034 17.04%

FYE 2018 Totals 24,136 20.53% 77.91%

Aug-18 Maiboxes, Etc. 6893C 874 0.74%Dec-18 One Hour Martinizing 6830 1,333 1.13%

FYE 2019 Totals 2,207 1.88% 79.78%

Dec-19 Angels Nails 6842 975 0.83%

FYE 2020 Totals 975 0.83% 80.61%

Apr-21 The Cutting Edge 6834 907 0.77%

FYE 2021 Totals 907 0.77% 81.39%

Subtotal 95,690 81.39%Vacant 21,886 18.61% 100.00%

TOTAL 117,576 100.00%

[1] Based on 117,576 total building square feet.[2] Tenant's existing rent is on a GROSS basis. Analysis models the equivalent NNN rent for comparison purposes.[3] Tenant's existing rent is on a Full Service Gross with Base Year basis. Analysis models the equivalent NNN rent for comparison purpos

3/2/2012 9:58 AM (WJC)1


ACQUISITION AND RESIDUAL SUMMARY LEVERAGE SUMMARY [1]

ASSUMABLE LOAN

REFINANCE OF ASSUMABLE

Purchase Price as of June 1, 2012 $212 PSF $24,925,000 Initial Loan Funding (as of Jun-12) $19,500,000 $19,500,000'Costs to Stabilize' Loan-To-Total Investment/Value 76.81% Prior Balance

Tenant Improvements 297,038 Loan-To-Price 78.23% Prior BalanceLeasing Commissions 166,273 Funding Date Jul-07 Jul-17

Total Costs to Stabilize $463,311 [2] Maturity Date Jun-17 May-22Total Investment $216 PSF $25,388,311 [3] Loan Term 5.1 Years 4.9 Years

Amortization Period Interest Only 30 YearsInterest Rate 6.42% 6.50%

Year 1 Year 2 Year 3 Origination Fee on Initial Loan Funding 1.00% 1.00%Capitalization Rate 7.72% 8.82% 9.39% Loan Constant 6.42% 7.58%Cash Return 7.65% 8.43% 8.41% Debt Service Coverage Ratio (NOI) 1.56x 1.61xLeveraged Cash Return 11.33% 14.61% 14.50% Debt Service Coverage Ratio (CF) 1.55x 1.49x

3-Year 5-Year 7-Year Total Investment as of June 1, 2012 $25,388,000Average Capitalization Rate 8.64% 8.97% 9.12% Total Initial Loan Principal (19,500,000)Average Cash Return 8.16% 8.47% 8.52% Total Initial Loan Fees 195,000Average Leveraged Cash Return 13.48% 14.74% 13.49% Initial Equity $6,083,000

Net Residual Value as of May 31, 2022 $33,975,000Net Residual Per Square Foot $289R id l C it li ti R t 8 00%Residual Capitalization Rate 8.00%Residual Cost of Sale 1.50%

ALL CASH IRR 10.74% LEVERAGED IRR 19.98%

[1] Leveraged analysis is based on existing assumable financing. Analysis assumes the property is refinanced Jul-17.

[2] Costs to stabilize assume and include TIs and LCs for the vacant suites.[3] All returns are based on Total Investment.

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy andcompleteness. 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. THIS IS AN OPINION OF VALUEOR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for development of an appraisal or

analysis contained in the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation.

3/2/2012 10:03 AM (WJC)1CBRE Financial Consulting Group


exclusively Marketed By: the National retail investment Group-West

Philip d. Voorhees Lic. [email protected]

Sam alison | la retail PCgLic. 01167124 [email protected]

dan riley | la retail PCgLic. 01057519 [email protected]

Patrick toomey Lic. [email protected]

Megan read Lic. [email protected]

© 2011 CBRE, Inc. We obtained the information contained within from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.


CBre, 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.

aerial photography supplied & licensed by aerial images 909.882.8438 and ground photography supplied & licensed by sanduku photography.

CBre | Broker lic. 00409987 | 3501 Jamboree road, suite 100 | Newport Beach, Ca 92660 | Fax 949.725.8545 | www.nrigwest.com

ConfiDenTialiTy agreemenT

Capital Markets | NatioNal retail iNvestMeNt Group

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