MAIN STREET OFFICE HESPERIA, CALIFORNIA

15888 MAIN STREETHESPERIA

Exclusively Listed By:

NON-ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewed onlyby the party receiving it from Marcus & Millichap and should not bemade available to any other person or entity without the writtenconsent of Marcus & Millichap. This Marketing Brochure has beenprepared to provide summary, unverified information to prospectivepurchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitutefor a thorough due diligence investigation. Marcus & Millichap hasnot made any investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size andsquare footage of the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physical conditionof the improvements thereon, or the financial condition or businessprospects of any tenant, or any tenant’s plans or intentions tocontinue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained fromsources we believe to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigationregarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriatemeasures to verify all of the information set forth herein. Marcus &Millichap is a service mark of Marcus & Millichap Real EstateInvestment Services, Inc. © 2018 Marcus & Millichap. All rightsreserved.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsedby any commercial tenant or lessee identified in this marketingpackage. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship orendorsement by, said corporation of Marcus & Millichap, its affiliatesor subsidiaries, or any agent, product, service, or commercial listingof Marcus & Millichap, and is solely included for the purpose ofproviding tenant lessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Activity ID: _________________

TABLE OFCONTENTS06 Executive Summary

13 Property Description

17 Financial Analysis

21 Market Comparables

27 Market Analysis

EXECUTIVE SUMMARY

OFFERINGThe Main Street Office Building offers an outstanding

opportunity to obtain a well-located office project in

Hesperia. The property offers tremendous value and the

opportunity to create value through leasing the project.

The property enjoys over 321 linear feet of visibility on

Main Street.

The property is approximately 30,816 of rentable square

footage situated on a 1.97 acre parcel and was

constructed in 1989. Traffic at the signalized

intersection of Main and Seventh Street is in excess of

35,000 cars per day. Less than one block away on North

Seventh Street is Hesperia City Hall and Library.

The subject property is approximately 80% vacant. This

vacancy presents a genuine opportunity to reposition

this asset and create value. The current tenants are

mostly medical uses. The property has an elevator and

two stairways to access the second floor. The property

includes 192 parking spaces which equated to

approximately 4.84/1,000 square feet.

EXECUTIVE SUMMARY | 7

INVESTMENT HIGHLIGHTSTHE OPPORTUNITYMain Street Office building is a well located project that is

located at a signalized intersection and has the ability to create

upside through leasing and management. Current ownership

is managing property from out of area. The property is

currently 80% vacant despite a market vacancy rate of just

above 10%.

LOCATIONThe property is situated on a signalized intersection with over

300 feet of frontage on Main Street. Subject property is located

less than one block from Hesperia City Hall and Library.

NEW DEVELOPMENTS IN HESPERIA• West Main Villas, a 200-unit duplex project at Mesa Linda

and Main Street

• Eagle Real Estate Group’s 96-unit low- and medium-income

55+ Senior Apartments

• Retail locations including: Planet Fitness, Starbucks, Jimmy

John’s Gourmet Sandwiches

EXECUTIVE SUMMARY | 8

HESPERIA OVERVIEW

EXECUTIVE SUMMARY | 11

A city in San Bernardino County, California located 35 miles (56 km) north ofdowntown San Bernardino in the Victor Valley portion of the Mojave Desert. Due tothe relatively high elevation, and the unique and moderate weather patterns of theregion, Hesperia is part of what is locally known as the High Desert. The nameHesperia itself means "Western land". The 2018 census report estimates that theCity has a total population of 95,274.

WALK SCORE: 64

BIKE SCORE: 59

TRANSIT SCORE: 30

BIKEABLEFlat roads with some infrastructure for biking

SOME TRANSITTransit is available, with a few nearby

public transportation options

SOMEWHAT WALKABLESome errands can be accomplished on foot

HESPERIA BY THE NUMBERS

95KTOTAL POPULATION

$280KMEDIAN HOME VALUE

$49KMEDIAN HOUSEHOLD INCOME

PROPERTY DESCRIPTION

PROPERTY DETAILSMAIN STREET OFFICEAddress: 15888 Main Street

Hesperia, CA 92345

Assessor’s Parcel #: 0413-033-02

Land Use: Office

Year Built: 1989

SITE DESCRIPTIONSuites: 21

Net Rentable SF: 30,816

Lot Size: 1.97 Acres

Parking: 192 Parking Spaces

AMENITIES· Conference Room

· Spacious Courtyard

· Elevator Served

PROPERTY DESCRIPTION | 15

FINANCIAL ANALYSIS

FINANCIAL SUMMARY

FINANCIAL ANALYSIS | 18

PROPERTY DATAAddress: 15888 Main Street

City, State and Zip: Hesperia, CA 92345

Number of Suites: 21

Approx. Net Rentable SF: 30,816

Lot Size (Acres): 1.97

Year Built: 1989

FINANCIAL INDICATORSPrice:

Down:

Price/Unit:

Price/Gross SF:

Current CAP:

Market CAP:

Ownership:

$4,000,000

100% / $4,000,000

$190,476.19

$129.80

0.00%

8.36%

Fee Simple

INCOME CURRENT MARKETTOTAL TOTAL

GROSS POTENTIAL RENT $510,576 $510,576Total Other Income $0 $0

GROSS POTENTIAL INCOME $510,576Less: Vacancy Allowance (GPR) ($412,896)

$510,576(15% / $76,586)

EFFECTIVE GROSS INCOME $97,680 $433,990Less: Expenses ($99,706) ($99,706)

NET OPERATING INCOME -$2,026 $334,284Less: Debt Service ($0)

TOTAL RETURN -$2,026 8.36% / $334,284

EXPENSES CURRENT MARKETTOTAL TOTAL

Real Estate Taxes $44,869 $44,869Insurance $4,885 $4,885Utilities $16,200 $16,200Contract Services $9,552 $9,552Repairs and Maintenance - Est $4,000 $4,000Janitorial $10,200 $10,200TOTAL CAM $89,706 $89,706Management Fee (1) $10,000 $10,000Reserves and ReplacementsOtherTOTAL EXPENSES $99,706 $99,706

NOTES/ASSUMPTIONS(1) % Calculations: Effective Gross Income (EGI) minus $ amount entered for Management under Expense Reimbursements x Percentage entered here.

RENT ROLLSUITE TENANT GLA LEASE COMMENCE LEASE EXPIRE MONTHLY RENT RENT/SF104 Vista Realty 1,000 2/11/2015 MTM $700

112A Optometry 1,233 9/12/2007 MTM $2,500112B / 114 Hesperia Clinica 3,040 11/3/2014 MTM $4,940

OCCUPIED TOTAL 5,273 $8,140First Floor (1) 10,135 $15,202

Second Floor (2) 15,408 $19,206VACANT TOTAL 25,543 $34,408

TOTAL 30,816 $42,548

(1) First Floor Space with Proforma rent of $18.00/ft/year for vacant rentable square feet.(2) Second Story Space with Proforma rent of $15/ft/year for vacant rentable square feet.

MARKET COMPARABLES

PROPERTY YEAR BUILT % LEASED RBA PRICE CURRENT

CAPCURRENT

GIM $/SF SALE DATE/STATUS

SMain Street Office15888 Main StreetHesperia, CA 92345

1989 19% 30,816 $4,000,000 $129.80 Subject

1Choice Plaza

18522 Outer Highway 18Apple Valley, CA 92307

2007 100% 23,063 $4,549,043 $197.24 12/30/2019

2 1533 Spruce StreetRiverside, CA 92507 1986 0% 24,520 $2,690,000 $109.71 10/15/2019

3Terracina Medical

345-395 Terracina BlvdRedland, CA 92373

1965 58.8% 16,765 $4,100,000 $244.56 8/7/2019

4 19111 Town Center DriveApple Valley, CA 92308 2008 100% 22,216 $3,500,000 $157.54 1/8/2020

AVERAGES 1991 55.56% 23,698 $4,872,809 $201.48

S – Main Street Office 1 – Choice Plaza 2 – 1533 Spruce Street 3 – Terracina Medical 4 – 19111 Town Center Drive

Optometry Choice Medical Anchor Medical Group Choice Medical Group

Hesperia Clinica Queen’s Pharmacy Allergy & Asthma Consultant

Vista Realty Genesis OB-GYN Robert Torrey Inc.

Wanda Millburd MD

SALES COMPARABLES

MARKET COMPARABLES | 22

RENT COMPARABLESPICTURE PROPERTY SUITES BUILT CLASS TOTAL SF EST. UNIT SF RENT RENT/SF NOTES

S Main Street Office15888 Main StreetHesperia, CA 92345

21 1989 B 30,816 1000 - 4000 $1.00 - $2.00 Gated Entry; Spacious Courtyard; Excellent

Visibility

1 2,400 SF of Office9565 7th AvenueHesperia, CA92345

2 1989 B 1,2001,200

$1,200$1,200

$1.00$1.00

Vibrant Corner Location; Space is Divisible; Ample

Parking Available

2 Overland Plaza12052 Hesperia RoadHesperia, CA 92345

6 1980 B 11,188 1,1131,773

$1,280$2,040

$1.15$1.15

Dedicated Turn Lane; Pylon Sign

3 878 SF Office16501 Walnut StreetHesperia, CA 92345

10 1989 B 11,690 878 $1,098 $1.25 Visibility and Concrete Parking Lot

4 Shoe City16967 Main StreetHesperia, CA 92345

12 1986 / 2018

B 16,000 4,857 $7,286 $1.50 Excellent Visibility on Main Street

5 Main Street Medical17450 Main StreetHesperia, CA 92345

10 1986 B 15,520 4,720 $6,844 $1.45 Frontage on Main Street

MARKET COMPARABLES | 23

MARKET ANALYSIS

KEY DEMOGRAPHICS1-MILE 3-MILE 5-MILE

Total Population 8,746 59,454 136,747% Female 51.21% 50.56% 50.86%% Male 48.79% 49.44% 49.14%

Total Households 2,540 17,282 41,800Median Household Income $38,235 $45,021 $48,979Average Household Income $52,199 $58,960 $62,917Median Age 31.1 32.0 33.6Average Household Size 3.43 3.37 3.22Daytime Population 6,728 47,606 116,268Employed 2,485 18,536 45,090

% White Collar 32.30% 42.65% 48.24%% Blue Collar 67.70% 57.35% 51.76%

MAIN STREET OFFICEExclusively Listed By: