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Santa Fe Plaza2501-2575 S Santa Fe Avenue | Vernon, CA 90058

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Table of ContentsInvestment summary

tenant OvervIew

FInancIal OvervIew

DemOgraphIcs

lOcatIOn OvervIew

DIsclaImerthis valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the uniform standards of professional appraisal practice. neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.

exclusIvely lIsteD By:

BranDOn Burns senior vice president+1 213 838 3100lic. 01194796brandon.burns@cbre.com

patrIcK waDeFirst vice president+1 213 613 3071lic. 01454690patrick.wade@cbre.com

BranDOn gIll senior vice president+1 213 613 3754lic. 01940192brandon.gill@cbre.com

maxx cOhenassociate+1 213 613 3117lic. 01928768maxx.cohen@cbre.com

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Investment Summary

• One of Few retail centers in a predominantly Industrial sub-market; large Daytime customer Base

• low management 6-unit multi-tenant strip center with established tenants: circle K, trattoria 25 & pasadena service Federal credit union

• great year 1 returns plus Future upside: cap rate of 6.10% with scheduled rent Increases and ability to sign new leases at market rents

• newer 2006 construction and professionally managed: low Deferred maintenance

• all tenants are on triple-net leases with rental Increases and staggered lease expirations

• Delivered Free & clear of Debt

• Over 1.2 million people in a 5-mile radius• high traffic location at a signalized Intersection with Over 53,000 cars per

Day• great Ingress and egress, strong parking and approximately 170 Feet of

Frontage along s santa Fe avenue• strategic location at the center of thousands of vernon Businesses with a

50,000 employee workforce

newer construction los angeles strip center in under-served retail sub-market

strategic In-Fill retail location with high traffic counts

Investment hIghlIghts

avg hh IncOme: $42,153 (3-mIle)

2015 pOpulatIOn: 1,244,582 (5-mIle)

traFFIc cOunts: 53,797 s santa Fe ave. & 26th st.

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Executive Summarysanta Fe plaza offers investors a low-management, 6-unit strip center consisting of 14,949 sq. ft. on over one acre of land. located in one of the only cities that prides itself as “exclusively

industrial,” santa Fe plaza offers the ability to own a retail center in an under-served market with a lack of retail supply and increasing demand. the existing tenant base includes established

businesses such as circle K, trattoria 25 and pasadena services Federal credit union. santa Fe plaza also offers strong in-place returns with a 6.10% year 1 cap rate, plus the ability to place new

debt at today’s rates. with one unit currently vacant, the seller will provide a rent guarantee for the units for 12 months from the close of escrow at $2.50/sf nnn. with this rent below comparable

market rent in the area, investors have the ability to capture potential upside through lease-up.

santa Fe plaza is located at the signalized intersection of s santa Fe avenue and east 25th/26th streets (over 53,000 cars per day). the center has terrific ingress and egress on both s santa Fe

avenue and e 25th street and benefits from the extremely dense employment base in the immediate area (over 50,000 people). housing over 1,800 businesses and with a $4.5 billion private

employer payroll, vernon serves as a vital economic engine in the region. In 2008, vernon was named los angeles county’s “most Business-Friendly city” for cities with less than 50,000 residents

by the los angeles county economic Development corporation. with the strong immediate daytime customer base, in addition to the population base (over 1.2 million within a 5-mile radius),

santa Fe plaza serves the needs in an area starved for retail, and it provides investors with the opportunity to add value through the leasing of new tenants at market rents while collecting a

strong in-place cash flow.

cBre is pleased to offer for sale santa Fe plaza - an established retail center in vernon, ca.

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Investment summary santa Fe plaza2501-2575 s santa Fe avenuevernon, ca 90058

prIce: $6,500,000

cap rate: 6.10%

year 1 nOI: $396,780

BuIlDIng sIZe: 14,949 sF

prIce/sF: $434.52

lanD area: 51,350 sF

Occupancy: 100%

year BuIlt: 2006

apn: 6302-008-010

tenants: circle K, trattoria 25, pasadena service

Federal credit union

tax map

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tenant sF% of

propertylease term rental rates

recovery type rental Increases/OptionsBegin end Begin monthly annually psF

trattoria 25* 6,550 43.82% Feb-2009 Jan-2017 currentFeb-2016

$13,839$14,264

$166,068$171,168

$25.35$26.13

nnn 1x5 year Option at Fmv (no less than $16,275/mo)

pasadena service Federalcredit union*

1,783 11.93% Jul-2014 Jun-2024 Jul-2015Jul-2016Jul-2017Jul-2018

$3,986$4,106$4,229$4,356

$47,832$49,272$50,748$52,272

$26.83$27.63$28.46$29.32

nnn 1x5 year Option. 3% annual bumps throughout the lease term.

circle K 2,320 15.52% mar-2014 Feb-2029 currentJan-2019Jan-2024

$4,500$4,950$5,445

$54,000$59,400$65,340

$23.28$25.60$28.16

nnn 2x5 year Options

seller guarantee (vacant)** 4,296 28.74% cOe 1 year current $10,740 $128,880 $30.00 nnn none

tOtal 14,949 100% $33,065 $396,780

Financial Overviewrent rOll

all existing nnn lease reimburse full nnn, including management.*trattoria 25 gla includes 1,445sf patio space and assumes tenant reimburses pro-rata share of all expenses.*pasadena Federal credit union’s current rent is $3,870/month ($46,440/year) nnn. rent roll assumes scheduled 7/1/2015 rent increase.**rent roll assumes seller rent guarantee of vacant units (4,296sf ) for 1 year at $2.50/sf/month ($128,880/year) plus nnn (approx. $40,511) for a total of $169,391.

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Financial Overview

current “In-place” per sF

gross revenue $396,780 $26.54

reimbursed revenue 100% $140,986 $9.43

tOtal grOss revenue $537,766 $35.97

eFFectIve grOss revenue $537,766 $35.97

OperatIng expenses

general Opex (parking, landscaping, pest, etc.) ($30,000) ($2.01)

Janitorial ($2,124) ($0.14)

repairs & maintenance ($1,800) ($0.12)

utilities ($7,500) ($0.50)

management Fee ($18,000) ($1.20)

Insurance ($4,176) ($0.28)

property taxes 1.190555% ($77,386) ($5.18)

tOtal OperatIng expenses ($140,986) ($9.43)

net OperatIng IncOme $396,780 $26.54

total capital expenditures $0.20 $2,990 $0.20

cash Flow Before Debt $399,770 $26.74

santa Fe plaza Income & expenses

all leases reimburse full nnn, including management.**rent roll assumes seller rent guarantee of vacant units (4,296sf ) for 1 year at $2.50/sf/month ($128,880/year) plus nnn (approx. $40,511) for a total of $169,391.

prIce $6,500,000

current “In-place” nOI $396,780

cap rate 6.10%

price/sF $434.52

pricing analysis

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Tenant Overview

circle Kcircle K stores, Inc. (circle K) is a convenience store and gasoline service station operator owned by alimentation couche-tard, the largest convenience store retailer in canada. For over 63 years, customers have come to recognize the convenience and quality associated with the circle K brand. what begin in 1951 with the purchase

of three Kay’s Food stores in el paso, texas, has become one of the nation’s largest chains of company operated convenience stores. circle K has more than 3,400 convenience stores and gasoline service stations across the usa.

pasadena service Federal credit unionsince 1936, pasadena service Federal credit union (psFcu) has served the unique banking needs of pasadena unified school District and pasadena city college faculty and staff. Over the years, psFcu has evolved into a community-chartered financial institution that services the world class city of pasadena and surrounding areas. In

2009, vernon commercial Federal credit union was acquired and continues to operate as a division of psFcu. as a not-for-profit financial cooperative, psFcu does not issue stock or pay dividends to outside stock holders. Instead, earnings are returned to members in the form of lower loan rates, higher interest on deposits and lower fees.

trattoria 25trattoria 25 offers a variety of fresh quality Italian dishes at affordable prices. their extensive menu stresses freshness with the comfort of Italy through serving dishes including pasta, fish, meat, a long lists of paninis and fresh salads. trattoria 25’s homemade pizza, desserts and bread are also prepared

daily. the restaurant is open for lunch monday-saturday and on sundays for private parties only. trattoria 25 is open mondays-thursdays 10:30 am - 9:00 pm and Fridays and saturdays from

recent yelp reviews

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Demographic AnalysisDemOgraphIcs 1 mIle 3 mIle 5 mIle

2015 estimated population 5,662 372,877 1,244,589

2020 projected population 5,934 389,195 1,293,648

2010 census population 5,413 357,634 1,201,652

2000 census population 5,546 349,250 1,176,754

growth 2010-2015 4.59% 4.26% 3.57%

growth 2014-2020 4.81% 4.38% 3.94%

2015 estimated median age 29.76 30.94 31.02

2015 estimated average age 31.95 33.02 33.33

2015 estimated households 1,328 101,685 342,400

2020 projected households 1,401 107,715 358,407

2010 census households 1,252 95,418 327,293

2000 census households 1,206 85,224 308,266

growth 2010-2015 6.03% 6.57% 4.62%

growth 2013-2020 5.54% 5.93% 4.67%

2015 est. average household size 4.22 3.53 3.53

2015 est. median household Income $32,124 $29,650 $31,028

2020 prj. median household Income $34,458 $30,519 $31,892

2000 cen. median household Income $25,099 $22,935 $23,800

2015 est. average household Income $41,735 $42,953 $42,899

2015 estimated per capita Income $9,786 $11,713 $11,802

2015 estimated housing units 1,409 109,487 366,788

2015 estimated Occupied units 1,328 101,685 342,400

2015 estimated vacant units 81 7,802 24,388

2015 est. Owner Occupied units 349 22,616 81,799

2015 est. renter Occupied units 979 79,069 260,602

2015 est. median housing value $315,741 $331,158 $331,511

2015 est. average housing value $379,615 $376,301 $379,214

2014 est. population by race 5,662 372,877 1,244,589

- white population 2,281 (40.3%) 159,890 (42.9%) 493,290 (39.6%)

- Black population 303 (5.4%) 24,878 (6.7%) 106,319 (8.5%)

- asian population 71 (1.3%) 14,632 (3.9%) 90,739 (7.3%)

- pacific Islander population 2 (0.0%) 250 (0.1%) 1,110 (0.1%)

- american Indian and alaska native 54 (1.0%) 4,477 (1.2%) 13,532 (1.1%)

- Other race population 2,693 (47.6%) 153,809 (41.2%) 488,220 (39.2%)

- two or more races population 259 (4.6%) 14,941 (4.0%) 51,378 (4.1%)

- hispanic population 5,001 (88.3%) 313,201 (84.0%) 986,701 (79.3%)

- white non-hispanic population 247 (4.4%) 18,607 (5.0%) 54,654 (4.4%)

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Location OverviewvernOn,cathe city of vernon is an industrial city of 5.2 square miles located several miles southeast of Downtown los angeles in southern california. Founded in 1905 as the first exclusively industrial city in the southwestern united states, vernon currently houses more than 1,800 businesses that employ approximately 50,000 people, serving as a vital economic engine in the region. Offering an environment uniquely friendly to business, vernon is the home to industries including food and agriculture, apparel, steel, plastics, logistics and home furnishings. vernon maintains strong philanthropic ties with the neighboring communities where much of its workforce lives, providing significant financial support for public services like health care and education.

BranDOn Burns senior vice president+1 213613 3005lic. 01194796brandon.burns@cbre.com

patrIcK waDeFirst vice president+1 213 613 3071lic. 01454690patrick.wade@cbre.com

BranDOn gIll senior vice president+1 213 613 3754lic. 01940192brandon.gill@cbre.com

maxx cOhenassociate+1 213 613 3117lic. 01928768maxx.cohen@cbre.com

exclusIvely lIsteD By: affiliated Business DisclosurecBre, 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 trammel 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.

confidentiality agreementthis 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 referenc-es 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 agree-ments 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 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 authori-zation 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.

DIsclaImer©2013 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. 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. 2/13 pmc0004481