subject property...and greg’s past successes in business, these two beer fanatics managed to...

KYLE GULOCK

Executive Vice [email protected] N° 01861385

MICHAEL ASARCH

Vice [email protected] N° 01899004

SINGLE TENANT NNN GROUND LEASE | 1505 E VALLEY PKWY | ESCONDIDO, CA

HOME DEPOT & ALBERTSONS ANCHORED SHOPPING CENTER | OUTPARCEL

E VALLEY PKWY 27,557 CARS PER DAY

SUBJECT PROPERTY

KYLE GULOCK


MICHAEL ASARCH


01EXECUTIVE SUMMARY

The Offering Highlights

02PROPERTY OVERVIEW

Investment HighlightsProperty DetailsProperty PhotosRegional MapNeighborhood Map

03FINANCIAL ANALYSIS

Rent Roll

04MARKET OVERVIEW

Escondido OverviewDemographics HighlightsNotable Tenants in Escondido

05TENANT OVERVIEW

About Citibank

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

KIDDER.COM

EXCLUSIVELY LISTED BY

TABLE OF CONTENTS

http://www.kidder.com

THE OFFERING Kidder Mathews is pleased to present an exclusive Ground Lease opportunity located at 1505 E Valley Parkway, Escondido, CA 92027 (“Property”). The Property is currently leased to Citibank (“Tenant”).

EXECUTIVE SUMMARY

CITIBANKSINGLE TENANT NNN GROUND LEASE

$3,520,000OFFERING PRICE

$158,400NET OPERATING INCOME

4.50%CAP RATE

$73,2963-MILE AVERAGE HHI (2019)

The Property is situated on a major thoroughfare in Escondido, one of the largest cities in North San Diego County. The Property features high visibility to Eastbound and Westbound traffic on Valley Parkway, visible to over 27,557 vehicles per day. The Property is situated in a densely residential area with an average household income of $73,296 and a population of 137,626 in a three-mile radius. 1505 E Valley Blvd provides an investor the opportunity to acquire 19,849 square feet of land in an area with strong demographics. Citibank has been at the location for over 30 years and recently executed a 10-year lease extension, showing their long-term commitment to the site.

1505 E VALLEY PKWY KIDDER MATHEWS 3

HIGHLIGHTS

LEASE TYPE

CORPORATE GUARANTEE

LOT SIZE

19,849 SF

RENT INCREASES

12% EVERY 5 YEARS

LEASE TERM REMAINING

10 YEARS

TENANT

CITIBANK N.A.

NET OPERATING INCOME

$158,400


PROPERTY OVERVIEWINVESTMENT HIGHLIGHTSOUTPARCEL PAD LOCATION to Home Depot / Albertsons anchored shopping center

2019 DEPOSIT BASE $90 Million

CLOSEST Citibank branch location is 9.5 miles away

6.3 MILES from California State University, San Marcos (enrollment over 17,000 students)

RENT INCREASES 12% every 5 years

30+ YEARS at the location with a recent 10-year extension

TRAFFIC COUNT over 27,500+ cars per day

PROPERTY DETAILS

Address 1505 E Valley Parkway, Escondido, CA 92027

Land Size 19,849 SF

APN 230-242-08

Lease Term 10 years*

Tenant Citibank N.A. Subsidiary of Citigroup (NYSE:C)

Options Two (2) 5 year options

Location Grocery anchored shopping center outparcel

Property Ownership Rights Fee simple NNN Ground Lease

Year Built 1988

*Tenant one time option to Terminate – Termination payment of 6 months Rent following 84th month


PROPERTY PHOTOS

SUBJECT PROPERTY


PROPERTY PHOTOS

SUBJECT PROPERTY

E VALLEY PKWY 27,557 CARS PER DAY


PROPERTY PHOTOS

VA

LLEY P

KW

Y |

27

,55

7 C

AR

S PER

DA

Y

SUBJECT PROPERTY


REGIONAL MAP

SUBJECT PROPERTY


NEIGHBORHOOD MAP

MISSION MIDDLE SCHOOL PIONEER ELEMENTARY SCHOOL ROSE ELEMENTARY SCHOOLWASHINGTON PARK

VALLEY PKWY

E WASHINGTON AVE

E GRAND AVE

N A

SH S

T

ME

LR

OS

E P

L

SUBJECT PROPERTY


CURRENT OWNERSHIP OPTION TERMS

Tenant Building Size Percent of Total SF Current Lease Term Monthly Rent

Annual Rent

Option to Renew

Rent in Opinion Period

Citibank 4,700 SF 100% 10 years $13,200 $158,400 (2) 5 years 12% every 5 years

RENT ROLL

Term Date Rent Increases

Annual Investor Return

Rent Year 1–5

2/1/2020 - 1/31/2021 $158,400

4.50%

2/1/2021 - 1/31/2022 $158,400

2/1/2022 - 1/31/2023 $158,400

2/1/2023 - 1/31/2024 $158,400

2/1/2024 - 1/31/2025 $158,400

Rent Year 6–10

2/1/2025 - 1/31/2026 $177,480

12% Increase 5.04%

2/1/2026 - 1/31/2027 $177,480

2/1/2027 - 1/31/2038 $177,480

2/1/2028 - 1/31/2029 $177,480

2/1/2029 - 1/31/2030 $177,480

First 5 Year Option

2/1/2030 - 1/31/2031 $198,697

12% Increase 5.64%

2/1/2031- 1/31/2032 $198,697

2/1/2032 - 1/31/2033 $198,697

2/1/2033 - 1/31/2034 $198,697

2/1/2034 - 1/31/2035 $198,697

Second 5 Year Option

2/1/2035 - 1/31/2036 $222,545

12% Increase 6.32%

2/1/2036 - 1/31/2037 $222,545

2/1/2037- 1/31/2038 $222,545

2/1/2038 - 1/31/2039 $222,545

2/1/2039- 1/31/2040 $222,545


121505 E VALLEY PKWY KIDDER MATHEWS

ESCONDIDO OVERVIEW

Settled in a long valley in the coastal mountains of Southern California, Escondido, which means "hidden" in Spanish, lies about 18 miles inland, 100 miles south of Los Angeles, and 30 miles northeast of San Diego.

Surrounded by avocado and citrus groves, Escondido is a diverse, vibrant community with just the right mix of small town friendliness and big-city buzz.

More and more people are making Escondido their "City of Choice." As the heart of San Diego North, it is one

of the few remaining communities where people of all income levels can enjoy the Southern California lifestyle. We offer attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare and the nearby San Diego Zoo Safari Park. In addition, the California Center for the Arts, Escondido, brings world class entertainment to the area along with Queen Califia's Magical Circle, a sculpture garden in Kit Carson Park donated by late internationally renowned artist Niki de Saint Phalle. In recent years Escondido was named by Money Magazine as the Best Place in the West in which to retire and, at the other end of the spectrum, was named a Kid-Friendly City for our broad range of youth programs. Ladies Home Journal

MARKET OVERVIEW

also ranked Escondido number eight among the Top Ten Cities for Government.

Established in 1888, the city's rich past brings charm and stability to the community. You can see it in the historic homes of Old Escondido or experience it in the thriving downtown area and the weekly blast to the past, "Cruisin' Grand." Yet integrated with Escondido's treasured heritage is a progressive future, bright and brimming with promise. New jobs, new cultural amenities, new entertainment venues, new choices for residential living, and a new vision for Escondido's future, make Escondido a city to watch.

137,626 2019 3-MILE EST. POPULATION

6.68% 2010-2019 3-MILE POPULATION GROWTH

$73,296 2019 3-MILE AVG HOUSEHOLD INCOME

$1M+ 2019 3-MILE TOTAL CONSUMER SPENDING

131505 E VALLEY PKWY KIDDER MATHEWS

NOTABLE TENANTS IN ESCONDIDOPALOMAR MEDICAL CENTER

The centerpiece of your health care system is the new Palomar Medical Center Escondido, accredited by The Joint Commission. The 740,000-foot 11-story hospital facility opened in 2012. The medical center features 288 private single-patient rooms, 44 emergency and trauma rooms and 11 operating rooms. The 56-acre campus will expand in phases - up to double its current size - to meet the developing needs of North San Diego County's growing community.

As one of the country’s largest hospital construction projects and the first new North County San Diego hospital in 30 years, the new campus has already captured the attention of health care professionals worldwide for its use of nature, light and space -- all designed to speed healing. Among the natural features is our 1.5-acre green roof that sits atop the second floor, lush with drought-resistant vegetation with a beautiful view for south-facing patients.

STONE BREWING CO. HQ

Stone Brewing began as the collaboration of beer lover/homebrewer Steve Wagner (Stone’s President and original Brewmaster) and beer geek/rock 'n' rol l entrepreneur Greg Koch (Stone’s Executive Chairman).

Steve and Greg were originally introduced by a mutual friend in Los Angeles in 1989 when they were both working in the music business (Steve’s band just so happened to rent a room in Greg’s newly opened rehearsal studios). That encounter was short lived, and they didn’t run into each other again until a few years later when beer enthusiasm-driven fate led them both to a weekend class at UC Davis titled “A Sensory Evaluation of Beer.” That morning, Greg kept glancing over at Steve, thinking, “Where do I know that guy from?” Steve walked over during the break and said, “Aren’t you Greg?” After the class, and over a beer, Steve and Greg discovered that they shared an absurdly good taste in beer coupled with a fiery obsession for being a part of the craft beer revolution.

Over the next three years, Steve and Greg got together regularly and kept talking about beer and brewing. Bemoaning the tyrannical oppression of the American beer drinker at the hands of fizzy yellow beer makers and lauding the efforts of America’s rising craft brewers, the only possible conclusion became clear: They had to open their own brewery.

With Steve’s knowledge of brewing and Greg’s past successes in business,

these two beer fanatics managed to cobble together the funds needed (with no small help from Greg’s father, Terry Koch) for some shiny new stainless-steel brewing vessels. After a long search, the newly formed team found the perfect location in San Marcos for Stone Brewing, and on July 26, the ribbon was cut and the first beer was tapped. Believe it or not, when a reporter and TV camera showed up to cover the fledgling brewery’s first anniversary, Greg was so nervous that he completely flubbed the interview, and it was never aired.

Stone Brewing has grown a lot since then. While the company’s growth was as steady as it was significant, what remained the same was Stone’s core values and drive to push the craft beer envelope. Both are key factors in the expansion projects that have come to fruition over the years since Stone was born.

Local businesses bring a wide range of jobs for Escondido residents, generating tax revenue which helps fund essential services and quality of life amenities

TENANT OVERVIEW

CITIBANK N.A.TENANT - SUBSIDIARY OF CITIGROUP

NEW YORK, NYHEADQUARTERS

DEPOSIT HISTORY

$0M

$20M

$40M

$60M

$80M

$100M

$120M

2015

$9

0 M

ILLION

$9

1 M

ILLION

$1

01

MILLIO

N

$7

7 M

ILLION

$7

3 M

ILLION

2016 2017 2018 2019

ABOUT CITIBANKCitibank's mission is to serve as a trusted partner to their clients by responsibly providing financial services that enable growth and economic progress. Citi's core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of their clients. Citi has 200 years of experience helping their clients meet the world's toughest challenges and embrace its greatest opportunities. Citi is a global bank – an institution connecting millions of people across hundreds of countries and cities.

Citi protect people's savings and help them make the purchases – from everyday transactions to buying a home – that improve the quality of their lives. They advise people on how to invest for future needs, such as their children's education and their own retirement, and help them buy securities such as stocks and bonds.

Citi works with companies to optimize their daily operations, whether they need working capital, to make payroll or export their goods overseas. By lending to companies large and small, Citi helps them grow, creating jobs and real economic value at home and in communities around the world. Citi provides financing and support to governments at all levels, so they can build sustainable infrastructure, such as housing, transportation, schools and other vital public works.

These capabilities create an obligation to act responsibly, do everything possible to create the best outcomes, and prudently manage risk. If Citi falls short, they will take decisive action and learn from our experience.

Citi strives to earn and maintain the public's trust by constantly adhering to the highest ethical standards. They ask their colleagues to ensure that their decisions pass three tests: they are in our clients' interests, create economic value, and are always systemically responsible. When Citi does these things well, they make a positive financial and social impact in the communities they serve and show what a global bank can do.

700 & 1,500NO. OF LOCATIONS (USA & OVERSEAS)

204,000NO. OF EMPLOYEES

NO.3 IN US11TH LARGEST GLOBAL BANK

NO.30ON FORTUNE 500 (2018)

$97BTOTAL REVENUE

$18.9TTOTAL ASSETS


KIDDER.COM

LISTED BY

KYLE GULOCK


MICHAEL ASARCH


http://www.kidder.com/

http://www.kidder.com/

subject property...and greg’s past successes in business, these two beer fanatics managed to...

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