CARMICHAEL PLACE | OFFERING MEMORANDUM

Multi-Tenant Investment Property For Sale 4024 & 4030 MANZANITA AVENUE, CARMICHAEL, CA 95608

SALE PRICE: $2,250,000 | CAP RATE: 5.73%

CBRE | Advisory & Transaction Services

www.cbre.com

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT 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.

© 2016 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. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. 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. 70623167-168787

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CONTACT US Jon Schultz

+1 916 446 8261 [email protected] www.cbre.com/jon.schultz Lic. 00844740

CBRE, Inc. 500 Capitol Mall, Suite 2400 Sacramento, CA 95814 T +1 916 446 6800 www.cbre.com/sacramentodt

TABLE OF CONTENTS 04 05 06 07 08 09 10 11 12 13

Investment Overview Area Overview Area / Location Maps Aerial View Parcel Map Aerial View Site Plan Floor Plan / Rent Roll Property Photos Tenant Overview

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C A R M I C H A E L

PLACE

INVESTMENT OVERVIEW The subject property offers an investor the opportunity to acquire a well-located, long-term net lease retail investment property in a densely populated submarket of Sacramento, CA. Scheduled rent increases will provide the new owner with additional upside and cash flow. The center is located at the intersection of Manzanita Avenue and Fair Oaks Boulevard in Carmichael, CA—a well-established community just 13 miles northeast of Downtown Sacramento. Situated in a mature, densely populated residential area with an above average household income, strong day and evening population, and extremely high traffic counts.

HIGHLIGHTS ++ Leased by Banfield and AT&T/Spring Mobile ++ Located on the #1 Central Carmichael retail intersection between a high-volume Safeway and Rite Aid ++ Tremendous presence at the corner of Fair Oaks Blvd. and Manzanita Ave. with over 60,000 cars per day. Two large pylon signs provide outstanding identity for the tenants in the property. ++ Major retailers within close proximity to the intersection include Bel Air Market, Savemart Grocery, ACE Hardware, California Family Fitness, Big Lots, McDonalds, Denny’s, Burger King, and Taco Bell. ++ Excellent traffic counts ++ Excellent visibility ++ Easy access ++ Two signalized intersections ++ Strong day and evening population with mid-level to up-scale demographics

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OFFERING SUMMARY Offering Price: Net Operating Income: Year-1 Capitalization Rate: Price per Sq. Ft.: Lease Type:

$2,250,000 $128,928 5.73% $401.79 Net, Net, Net

Approx. Building Size:

±5,600 Sq. Ft.*

Parcel Size:

±40,916 Sq. Ft.

Ownership:

Fee Simple

Zoning:

SC (Shopping Center)

Use:

Retail

Year Built:

1999

Address: City, State: APN (Sacramento County): Terms:

*Gross Building Area

4024 & 4030 Manzanita Avenue Carmichael, CA 95608 245-0180-040 Cash or Cash to New Debt

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AREA OVERVIEW

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DEMOGRAPHICS (2016 est.)

Sacramento, the capitol of California, is located in northern-central part of the state, roughly 85 miles northeast of San Francisco. The Sacramento region consists of 6,500 square miles comprising roughly 4% of the state’s total land area. Sacramento County is bordered by Placer and Sutter Counties to the north, El Dorado County to the east, Yolo County to the west and San Joaquin County to the south. Sacramento County is 966 square miles in size and has a population density of 1,555 persons per square mile. Sacramento County is part of the Sacramento—Arden-Arcade—Roseville, CA Metropolitan Statistical Area, hereinafter called the Sacramento MSA, as defined by the U.S. Office of Management and Budget. The Sacramento MSA is comprised of the counties of Sacramento, Placer, Yolo and El Dorado.

Population

One of the major positive influences on the Sacramento MSA has been its affordability in comparison to the nearby Bay Area, especially with respect to housing. This factor, along with the abundant skilled labor found in the Sacramento workforce has acted as a catalyst, luring both residents and corporations to the area. Much of the robust expansion enjoyed in past years is due to the relocation of residents and corporations from the Bay area and other areas of California. In the long-term, Sacramento’s cost advantages relative to the Bay Area will be an ongoing benefit to Sacramento, with significant potential to spur another round of strong population growth and economic expansion.

1-mile radius 3-mile radius 5-mile radius

Given Sacramento’s role as the capital city of California, government employment, well known for contributing to general stability, accounts nearly 20.7% of total MSA non-farm employment, a very large share by national norms. Going forward, the region’s economy is expected to continue to slowly transition from one primarily dominated by government employment to one increasingly influenced by private sector industries; however, given that Sacramento is the hub of California state government (which employs over 110,000 people in the MSA), government will always play a significant role in the region’s economic base.

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1-mile radius 3-mile radius 5-mile radius

16,157 133,547 353,383

Average Household Income 1-mile radius 3-mile radius 5-mile radius

$71,773 $70,099 $69,346

Median Household Income $50,185 $50,798 $49,801

Daytime Employment (3-mile radius) Employees

37,378

Significant Employers (3-mile radius) Employers

# Employees 2,000 1,001 506 300 300 250 250 220

Mercy San Juan Medical Center American River College Step Inc. Eskaton Village San Juan Unified School District Eskaton Village Carmichael Lodge KKDO Radio Federal Bureau-Investigation Source: Nielsen

Traffic Counts Manzanita Avenue (2013) Fair Oaks Boulevard (2015)

32,303 ADT 30,235 ADT

Source: County of Sacramento



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C A R M I C H A E L

PLACE

AREA MAP

LOCATION MAP

SITE SITE

MAPS NOT TO SCALE.

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MANZANITA AVE

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CYPRESS AVE

SITE FAIR OAKS BLVD

San Juan School District

FAIR OAKS BLVD

Sacramento Fine Arts Center



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C A R M I C H A E L

PLACE

PARCEL MAP

SITE

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MANZANITA AVE

CYPRESS AVE

SITE FAIR OAKS BLVD

Future Senior Housing



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C A R M I C H A E L

PLACE

SITE PLAN

MANZANITA

FAIR OAKS

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Jon Schultz Lic. 00844740 +1 916 446 8261 [email protected] NOT TO SCALE—ALL DIMENSIONS ARE APPROXIMATE.

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FLOOR PLAN

Tenant Name Type & Suite Number Lease Dates & Term 1718 Third Street, Suite #101 Sacramento, CA 95811

Tel 916.449.1400 Fax 916.449.1414

www.rmw.com

EN

Common Area Vestibule

N

±2,186 SF

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RENT ROLL

PROPOSED VESTIBULE

SUITE A +/- 2,186 USF

&

SUITE B +/- 3,186 USF

Banfield Retail 5/28/16 to 8/31/26 4030 MANZANITA AVE 120 CAMonths CARMICHAEL, EXISTING CONDITIONS & PROPOSED Options: IMPROVEMENTS Two (2) 5 year

Floor Sq. Ft. Bldg. Share

Rate/Amount per Year per Month

Rent Changes on

3,186 59.31%

$24.00 $76,464 $2.00 $6,372

9/1/2021 9/1/2026 9/1/2031

Note: Tenant $7,009.20 has a cap on $7,960.00 controllable $8,480.00 CAM charges at 5%/yr.

2,186 40.69%

$24.00 $52,464 $2.00 $4,372

12/1/2019 12/1/2024

Note: Tenant has a cap on $4,809.20 controllable $5,290.12 CAM charges at 5%/yr.

Occupied SF

Net Operating Income (NOI)

5,372

$128,928

Rent Changes to

Description of Operating Expense Reimb.

approved for the owner by :

approved for the architect by :

ISSUE :

Approver

Spring Mobile Retail 12/1/14 to 11/30/19 60 Months Options: Two (2) 5 year

REVISIONS :

#

Description:

±3,186 SF PROPOSED DEMISING WALL LOCATION

Date:

APPROXIMATE LOCATION OF DUCTWORK, TYP.

APPROXIMATE LOCATION OF SPRINKLER LINE

TOTAL* N

POTENTIAL LOCATION FOR NEW ENTRY

*Leased Area

NOT TO SCALE—ALL DIMENSIONS ARE APPROXIMATE.

drawn by :

AK

plot date : 5/12/2014 11:12:04 AM

checked by : SG

stamp :

scale : project number :

1/4" = 1'-0" 14416.00

FLOOR PLAN (NOT FOR CONSTRUCTION) sheet no. :

FP.1



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PROPERTY PHOTOS

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TENANT OVERVIEW BANFIELD PET HOSPITAL is a privately owned company based in Portland, Oregon, United States, that operates veterinary clinics. Part of the Mars, Incorporated family of companies, Banfield owns clinics in the United States, Mexico, and the United Kingdom. Founded in 1955, the company operates many of its 800 plus clinics inside PetSmart stores. Banfield is the largest privately owned veterinary practice in the United States. Mars, Incorporated is an American global manufacturer of confectionery, pet food, and other food products with US$ 33 billion in annual sales in 2015, and is ranked as the 6th largest privately held company in the United States by Forbes. The company is entirely owned by the Mars family. Mars operates in six business segments around the World: Chocolate, Petcare, Food, Drinks, and Symbioscience, the company’s life sciences division. ++ Mars, Inc acquired Banfield in 2007 ++ Headquarters – Portland, OR ++ 770 Locations ++ Annual Revenues: $33 billion (FY14) ++ Fortune 500 Rank: 311

AT&T/PARROT CELLULAR/SPRING MOBILE – Wholly Owned Subsidiary of GameStop Spring Mobile is an AT&T wireless retailer based in Salt Lake City that operates 150+ stores across the United States and employs over 650 people. Spring Mobile was founded in 2001 in Salt Lake City, Utah. It provides AT&T and Cricket services across the country. Ongoing commitment to the company’s mission, vision and values has allowed it to grow from a handful of mall carts in Utah into America’s largest wireless retailer, with over 958 premier AT&T retail locations nationwide and 70 Cricket locations nationwide. Spring Mobile’s rapid growth has been unprecedented in the wireless reseller industry and is evident of the ever-growing demand for AT&T products and services. In 2016, Spring Mobile acquired 69 stores in northern California from Parrot Cellular, 56 stores in Oregon and Washington from Smart Wireless and 50 stores in Florida from Noble Communications, among other deals. The purchases this year strengthened the brand’s concentration in the West and expanded it into seven new states: Florida, Louisiana, Massachusetts, Michigan, North Carolina, Ohio and South Carolina. ++ GameStop acquired Spring Mobile in 2013 ++ Stock symbol – GME ++ Headquarters – Grapevine, TX ++ Employees >18,000 worldwide ++ Annual Revenues: $9 billion (FY14) ++ Fortune 500 Rank: 305



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CARMICHAEL PLACE | OFFERING MEMORANDUM

Multi-Tenant Investment Property For Sale 4024 & 4030 MANZANITA AVENUE, CARMICHAEL, CA 95608

CONTACT US Jon Schultz

+1 916 446 8261 [email protected] www.cbre.com/jon.schultz Lic. 00844740

CBRE, Inc. 500 Capitol Mall, Suite 2400 Sacramento, CA 95814 T +1 916 446 6800 www.cbre.com/sacramentodt

CBRE | Advisory & Transaction Services

www.cbre.com