OUTPARCEL PAD TO:

S INGLE TENANT ABSOLUTE NNN I N V E S T M E N T O F F E R I N G

TEMECULA CALIFORNIA

3 1 9 9 0 T E M E C U L A PA R K W AY, T E M E C U L A , C A 9 0 2 9 2

P R E S E N T E D B Y:

Shaun RileySenior Managing Director | sriley@farislee.com | ph (949) 221-1807 | R.E. License No 01165160

3 1 9 9 0 T E M E C U L A P A R K W A Y T E M E C U L A C A 9 0 2 9 2

FINANCIAL ANALYSIS PROPERTY OVERVIEW

TABLE OF CONTENTS

4 18

PROPERTY OVERVIEW

Faris Lee Investments is pleased to offer the rare opportunity to acquire the fee simple interest (land & building) in a 6,100 SF, Absolute NNN, U.S. Bank (“the Property”) located at 31990 Temecula Parkway in the affluent city of Temecula, CA. The Property is corporately guaranteed by U.S. Bank, which is S&P rated A+, had 2018 revenue in excess of $20 Billion, and operates over 3,067 branches and 4,771 ATMS throughout the United States. The Property features 3% annual increases throughout the initial term and 3 (5-year) options to extend, hedging against inflation, generating income growth, and potentially providing realistic value appreciation.

The Property is strategically positioned as an outparcel pad to the Home Depot and Albertsons anchored center along Temecula Parkway, which experiences over 35,200 vehicles per day. Temecula Parkway is Temecula’s dominant retail corridor and is home to many national/credit retailers including Walmart, Ross, Marshalls, Kohl’s, Albertsons, McDonald’s and much more. The immediate area has experienced recent high-end multifamily and residential developments including: The Groves ($1.2M to $1.3M home prices), Aldea at Paseo Del Sol (townhomes valued at $350,000+) and The Vineyards (288 unit apartment complex). Additionally, the Property benefits from extremely affluent demographics, with more than 91,500 residents with an average annual household income in excess of $112,300 and more than 18,500 day-time employees within a 3-mile radius of the Subject Property.

$5,750,000 PRICING

$417,463NOI

3.00%ANNUAL RENT INCREASES

7.26%CAP RATE

Strong National / Credit Tenant - 7th Largest Banking Institution in the United States

U.S. Bank National Association is a wholly owned subsidiary of U.S. Bancorp, which is the 7th largest banking institution with a network of 3,067 banking offices in the Midwest and West region in the United States, as well as a network of 4,771 ATMS.

Company Type: Public (NYSE:USB) 2018 Employees: 74,000 2018 Net Income: $6.21 Billion 2018 Equity: $43.62 Billion

2018 Revenue: $20.03 Billion 2018 Assets: $462.04 Billion S&P Ranking: A+

Strategically Positioned at the Entrance to the Home Depot and Albertsons Anchored Center along Temecula’s Dominant Retail Corridor

• U.S. Bank is strategically positioned along Temecula Boulevard, which experiences in excess of 35,200 vehicles per day

• This dominant retail corridor is home to many national credit tenants including Home Depot, Walmart, Ross, Marshalls, Kohl’s, Albertsons, McDonald’s and much more.

• U.S. Bank benefits from the convenience and identity inherent with being located at the entrance to a dominant daily needs shopping center

Affluent Trade Area Featuring Average Annual Household Incomes of $112,300

• The Property is located in one of the highest income areas in Riverside County (1, 3 and 5 mile radius’ surrounding the Property have an average annual household income in excess of $100,000)

• $112,300 average annual household income, 91,500 residents and 18,500 daytime employees within a 3-mile radius of the Subject Property.

• The higher-income trade area provides an ideal environment for growth in new loans and deposit accounts, helping to ensure the success of U.S. Bank at this strategic location

Annual 3% Rental Increases in Current Term and Remaining Option Periods• Extremely rare to own an investment leased to a national credit tenant

with such favorable rent increases

• Provides an investor increasing income growth and the realistic opportunity for future value appreciation

Desirable Homes & Apartment Buildings Adjacent to the Property / Values up to $1.3MM and Rentals at $4,300/Month• High-end, newly constructed apartment and condo

complexes sit directly behind the Home Depot anchored center

• The Groves - $1.2M to $1.3M approximate home values - 4,600 SF to 5,200 SF homes.

• Aldea at Paseo del Sol - 2 to 3 bedroom townhomes $350,000+

• The Vineyards: 288 1-3 bedroom apartments with rent ranging between $1,500 to $4,300/month

Ease of Management | Absolute NNN Lease

• Tenant is responsible for property taxes, insurance, CAM and maintenance and replacement of all building items

• Lessor has no maintenance or expense obligations

• Ideal, zero management for a 1031 exchange or the passive investor

Strategic Location for U.S. Bank - One of Only 2 Traditional Branch Locations in Temecula for U.S. Bank

• The banking operation at the subject property serves a large trade area as the other traditional U.S. Bank branch is more than 6 miles away

• Only U.S. Bank branch with identity and physical presence on Temecula Boulevard

• This location provides U.S. Bank the ability to retain and grow its market share in the southern portion of Temecula

Absolute NNN Lease• Long term security and stability for the investor by eliminating

exposure to all property expenses and capital improvements• Provides an investor a dependable income stream without the

offset from extraordinary expenses

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A E R I A L V I E W

* CoStar 2018

Parcel Map

Location

31990 Temecula Parkway Temecula, CA 92092

Rentable Area

6,100 SFLand Area: 0.74 Acres (32,234 SF)

Ownership

Fee Simple (Land & Building)

Access

There is one (1) direct access point along Temecula Parkway, and two (2) other access points

through adjacent parcels

Year Built / Renovated

2001 / 2007Zoning: SP-4 (Specific Plan - Commercial)

Parking

There are approximately 36 dedicated parking stalls on the owned parcel. The parking ratio is approximately 5.9 parking stalls per 1,000 SF

of leasable area.

Traffic Counts*

Temecula Parkway: 35,200 VPDMargarita Road: 23,600 VPD

PARCEL ACRES SQ. FT.

959-090-013 0.74 32,234

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PROPERTY SPECIFICATIONS

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A E R I A L V I E W

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A E R I A L V I E W

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Pechanga Resort & Casino

Temecula Valley Unified School District

Abbott Laboratories

Professional Hospital Supply

Amazon

International Rectifier/Hexfet

Channell Commercial Corp

Millipore Corporation

Bianchi International

Opto 22

M A J O R E M P L O Y E R S

Temecula, CA Temecula is a city located in the southwestern part of Riverside County, California. Situated near the junction of Interstates I-15 and I-215, and also serviced by California State Highway 79, Temecula lies about 86 miles southeast of Los Angeles and 60 miles north of San Diego. It is bordered by its neighboring city of Murrieta on the northwest.

The Temecula population was over 117,000 in 2016 which has increased by around 68% since 2000.

Temecula offers a quality education system and network to draw from. The Temecula Valley Unified School District serves roughly 27,700 students over 148 square miles in 32 schools--from the San Diego County line in the south to Highway 79 and Winchester Road in the north and east to Vail Lake.

In 2009 California State University San Marcos (CSUSM) opened a satellite campus in Temecula in a partnership with the City and Temecula Valley Unified School District. CSUSM at Temecula has worked with industry and community leaders to identify unmet community educational needs to determine the degree programs essential to the region’s development.

Economic HighlightsTemecula’s thriving economy is encouraging many large corporations to relocate to the Temecula Valley. Companies are taking advantage of Temecula’s easy access along Interstate 15/215 freeway corridor, pro-business attitude and lower operating costs. Businesses that are relocating and investing in Temecula can be assured of attracting and keeping the kind of employees needed for a successful business venture. A well-trained and educated workforce is readily accessible. With abundant community parks and recreational facilities, a picturesque Wine Country and Historic Old Town, a new regional mall and popular annual events, there’s a kaleidoscope of cultural and leisure activities that accent Temecula’s lifestyle and heritage.

The area is home to some of the oldest wineries in the nation, and the Temecula Valley serves as one of the state’s relatively small but significant wine producing regions. Tourists from all over the Southwestern United States come to the region to sample fine wine and eat at award winning restaurants.

The Cove - Pechanga Resort & Casino 12

T E M E C U L A O V E R V I E W

POPULATION GROWTH SINCE 2000

68%

ESTIMATED POPULATION IN 5 MILE RADIUS

117,600+

HOME APPRECIATION IN THE LAST YEAR

6.3%

AVERAGE HOUSEHOLD INCOME IN 3 MILE RADIUS

$115,700

PREDICTED JOB GROWTH OVER THE NEXT 3 YEARS7.4%

RECENT JOB GROWTH IN TEMECULA

4.85%

AVERAGE COMMUTE TIME19 Minutes

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T E M E C U L A I N T E L

DISTANCE FROM TEMECULA

LOS ANGELESORANGE COUNTY PALM SPRINGSSAN DIEGO COUNTY

15 Miles 45 Miles15 Miles 75 Miles

Temecula Valley has quickly become synonymous with great food and wine in Southern California. Just a short distance from cities such as San Diego, Los Angeles, and Orange County, Temecula offers ease of access to those seeking a wine country experience without the expense and hassle of traveling to Northern California. With more than 40 wineries, tourists can find boutique and full-service wine resorts that are friendly, relaxed and unpretentious. The quality of the wine is made possible by a unique microclimate that features morning mist, warm midday sun, cooling ocean breezes and crisp, cool nights. This plus a granite-based soil makes Temecula Valley ideal for growing grapes and creating award-winning premium wines, recognized by connoisseurs internationally.

P E C H A N G A R E S O R T & C A S I N O

Located on the Pechanga Indian Reservation just two miles from the U.S. Bank is the largest casino in California, Pechanga Resort & Casino. Pechanga offers 1,085 luxury guest rooms and suites, a 25,000 SF luxury spa, and a championship golf course that is consistently ranked among the best in the Western U.S. The 188,000 SF casino floor makes Pechanga’s gaming facilities bigger than that of many large Vegas casinos including the MGM Grand and the 1,200 seat theater venue hosts many headline musical, comedy, and theater acts. Pechanga is the largest employer in the Temecula Valley with 5,000 employees and the second largest in Riverside County.

T E M E C U L A : S O U T H E R N C A L I F O R N I A ’ S W I N E C O U N T R Y

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T E M E C U L A H I G H L I G H T S

F E S T I VA L S

Temecula Valley’s temperate climate and active

population has made it one of the top festival

destinations in Southern California. The following are

just a few of the most popular festivals in the area:

» Temecula Valley Wine & Food Festival

» Temecula Bluegrass Festival

» Temecula International Film & Music Festival

» Temecula Valley International Jazz Festival

O L D T O W N T E M E C U L A

Old Town Temecula is a collection of historic 1890s buildings, antique stores, hotels,

museums, specialty food stores, restaurants, boutiques, gift and collectible stores, and

antique dealers. Old Town is also home to special events like the Rod Run car show, Art

and Street Painting Festival, Santa’s Electric Parade Show, western days, and summer

entertainment. On weekends, Old Town also hosts a growing nightlife.

Old Town is also home to the Temecula Museum which features exhibits about the local

band of Native Americans and the local natural history and city development. The City

Hall, which relocated from a smaller location on Business Park Drive in late 2010, is

located in the center of Old Town.

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T E M E C U L A VA L L E Y H O S P I TA L

Temecula Valley Hospital is located less than one-half mile from the U.S. Bank. The 140-bed, five-story facility is defining a new era in healthcare using advanced technology and patient-focused treatment. With 300 affiliated physicians, 600 employees, and 170 volunteers, TVH’s level of care rivals that of much larger and better funded metropolitan hospitals. Since 2013, TVH has become well known for its expertise in cardiovascular services, specifically open heart surgery.

Although the hospital is only 5 years old, TVH has undertaken substantial expansion efforts to meet the growing needs of the community. The new wing, set to open in the summer of 2018, will house operating rooms, laboratories, post-op care units, and patient rooms for the cardiovascular and neurosciences departments. The new facilities will allow TVH to nearly double the number of cardiac procedures that are currently performed.

T E M E C U L A V A L L E Y H O S P I T A L

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D E M O G R A P H I C S

Temecula, CA (rol3.sitesusa.com) 1 Mile 3 Mile 5 Mile

2018 Estimated Population 16,416 91,542 124,781

2023 Projected Population 17,553 98,003 133,586

2010 Census Population 13,910 78,149 107,196

2000 Census Population 10,141 48,912 70,263

Projected Annual Growth 2018 to 2023 1.4% 1.4% 1.4%

Historical Annual Growth 2000 to 2018 3.4% 4.8% 4.3%

2018 Median Age 34.4 35.3 35.5

2018 Estimated Households 4,993 28,774 39,787

2023 Projected Households 5,176 29,865 41,305

2010 Census Households 4,245 24,478 33,993

2000 Census Households 3,052 15,336 22,071

Projected Annual Growth 2018 to 2023 0.7% 0.8% 0.8%

Historical Annual Growth 2000 to 2018 3.5% 4.9% 4.5%

2018 Estimated White 67.4% 67.0% 67.0%

2018 Estimated Black or African American 4.7% 4.8% 4.9%

2018 Estimated Asian or Pacific Islander 11.4% 11.8% 11.3%

2018 Estimated American Indian or Native Alaskan 1.0% 1.2% 1.2%

2018 Estimated Other Races 15.4% 15.2% 15.6%

2018 Estimated Hispanic 29.9% 28.5% 29.2%

2018 Estimated Average Household Income $109,632 $112,398 $108,888

2018 Estimated Median Household Income $99,667 $101,503 $96,909

2018 Estimated Per Capita Income $33,347 $35,340 $34,736

2018 Estimated Total Businesses 672 1,918 5,198

2018 Estimated Total Employees 5,576 18,503 50,987

2018 Estimated Employee Population per Business 8.3 9.6 9.8

2018 Estimated Residential Population per Business 24.4 47.7 24.0

Population

House

holds

Eth

nicity

Income

Business

FINANCIAL ANALYSIS

Driv

e-T

hru

Drive-Thru

Drive-Thru

Temecula Parkway

Campanula Way

Cam

ino

Del S

ol

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S I T E P L A N

SITE PLAN NOT TO SCALE

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R E N T R O L L & T E N A N T S Y N O P S I S

Annual$/SF

6,100 $33,775 $5.54 $405,304 $66.44 May-2019 3% $34,789 $5.70 $417,463 $68.44 NNN 5/1/2007 4/30/2022May-2020 3% $35,832 $5.87 $429,987 $70.49May-2021 3% $36,907 $6.05 $442,886 $72.60

3% Annual Increases3 (5-Year)

MonthlyRent$/SF

Current Monthly

Rent

Recovery Type

LeaseStart

LeaseExpires

CurrentAnnual

Rent

AnnualRent$/SF

IncreaseDate

IncreaseMonthly

RentMonthly

$/SFAnnual

RentLease Options

Rental IncreasesSize (SF)

Tenant

US Bank

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

U.S. BANK NATIONAL ASSOCIATION

U.S. Bank National Association provides commercial banking services for individuals, businesses, and institutions. U.S. Bank National Association was formerly known as Firstar Bank, National Association and changed its name to U.S. Bank National Association in August, 2001. The company was founded in 1863 and is based in Cincinnati, Ohio. It has banking and ATMs locations in the United States and internationally. U.S. Bank National Association operates as a subsidiary of U.S. Bancorp.

Company Type: Subsidiary

U.S. BANCORP

U.S. Bancorp, a financial services holding company, provides a range of financial services in the United States. It offers depository services and lending services. The company also provides ancillary services and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, it offers investment and insurance products to the company’s customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, the company provides corporate and purchasing card, and corporate trust services, as well as merchant processing services, as well as offers cash and investment management, ATM processing, mortgage banking, and brokerage services. It serves individuals, businesses, institutional organizations, governmental entities, estates, foundations, charitable organizations, and other financial institutions. The company offers its services through a network of 3,067 banking offices in the Midwest and West regions of the United States, as well as operates a network of 4,771 ATMs. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.

Company Type: Public (NYSE:USB)2018 Employees: 74,0002018 Net Income: $6.21 Billion2018 Equity: $43.62 BillionFiscal Year End: December

2018 Revenue: $20.03 Billion2018 Assets: $462.04 BillionS&P Ranking: A+Website: www.usbank.com

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T R A N S A C T I O N S U M M A R Y

Financial Information Lease Type: Absolute NNNPrice: $5,750,000Price/SF: $943

Property SpecificationsRentable Area: 6,100 SFLand Area: 0.74 AcresYear Built / Renovated: 2001 / 2007Address: 31990 Temecula Parkway, Temecula, CA 90292Parcel Numbers: 959-090-013Ownership: Fee Simple (Land & Building)Tenant: US BankZoning: SP-4 (Specific Plan - Commercial)

Operating Information May-2019 May-2021 (1)May-2023

Gross Potential Rent $417,463 $442,886 $469,858Plus Recapture $80,801 $84,033 $87,394

Effective Gross Income $498,264 $526,919 $557,253Less Expenses PSF / Yr PSF / Yr PSF / Yr

Property Taxes $66,301 $10.87 $68,953 $11.30 $71,711 $11.76Insurance $1,500 $0.25 $1,560 $0.26 $1,622 $0.27Common Area Maintenance $13,000 $2.13 $13,520 $2.22 $14,061 $2.31

Net Operating Income $417,463 $442,886 $469,858

Cap Rate: 7.26% 7.70% 8.17%(1) Assumes Lease is renewed per terms in lease(2) Assumes a 2% annual increase in expenses for 2021 and 2023(3) Tenant pays premium for building insurance directly(4) Taxes are reassessed based of estimated new purchase price

Tenant is responsible for taxes, insurance, CAM, and maintenance and replacement for roof, structure and HVAC. Landlord has no obligations for expenses. This parcel does not share expenses with adjacent parcels, thus, is not part of a pooled common area expense billing.

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

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L E A S E A B S T R A C T

U.S. Bank Lease Summary

Tenant Name: U.S. Bank National Association

Rentable Square Feet: 6,100 Square Feet

Lease Execution Date: 3/28/2007

Lease Start Date: 5/1/2007

Lease Expiration Date: 4/30/2022

Lease Type: Absolute NNN

Lease Term: 15 Years

Rent: Current: $405,304/yr.

May-2019: $417,463/yr. (3%)

May-2020: $429,987/yr. (3%)

May-2021: $442,886/yr. (3%)

Lease Options: 3 (5-Year)

Administration Fee: 15% of CAM

Property Taxes, Insurance, CAM: Tenant Responsible

Utilities: Tenant Responsible

Roof & Structure: Tenant Responsible

HVAC: Tenant Responsible

Right of First Refusal: Yes - 10 Days to Generate Offer

Lease Option 1

Option Rent:

May-2022: $456,173/yr. (3%)

May-2023: $469,858/yr. (3%)

May-2024: $483,954/yr. (3%)

May-2025: $498,473/yr. (3%)

May-2026: $513,427/yr. (3%)

Lease Option 2

Option Rent:

May-2027: $528,830/yr. (3%)

May-2028: $544,694/yr. (3%)

May-2029: $561,035/yr. (3%)

May-2030: $577,866/yr. (3%)

May-2031: $595,202/yr. (3%)

Lease Option 3

Option Rent:

May-2032: $613,058/yr. (3%)

May-2033: $631,450/yr. (3%)

May-2034: $650,394/yr. (3%)

May-2035: $669,905/yr. (3%)

May-2036: $690,003/yr. (3%)

18301 Von Karman Ave., Suite 800 | Irvine, CA 92612 | P (949) 221-1800 | F (949) 221-1830 | farislee.com

Shaun RileySenior Managing Director sriley@farislee.com (949) 221-1807 R.E. License No 01165160

3 1 9 9 0 T E M E C U L A P A R K W A Y T E M E C U L A C A 9 0 2 9 2

TEMECULA, CA