WEST SHAW COMMERCE CENTER4119 W Shaw Ave, Fresno, CA 93722

[ ]www.CapitalPacific.comChris Peters | cpeters@capitalpacific.com [415] 274-2703 CA DRE#: 01339983

Zeb Ripple | zripple@capitalpacific.com [415] 274-2702CA DRE#: 01242540

Chris Kostanecki | ck@capitalpacific.com [415] 274-2701 CA DRE#: 01002010

COPYRIGHT © 2012. ALL USE, DISCLOSURE AND/OR REPRODUCTION NOT SPECIFICALLY AUTHORIZED IS PROHIBITED. ALL RIGHTS RESERVED. Capital Pacific Real Estate Brokerage Company (“Agent”) has presented this confidential Investment Memorandum to assist the recipient in evaluating the “Property” and it is intended for your use only. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. The Buyer should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Buyer agrees that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) the Buyer shall not contact any property manager, employee or tenant of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) the Buyer understands and agrees that Agent represents the seller and not the Buyer. Neither the seller nor Agent shall have any obligation to pay any commission, finder’s fee, or other compensation to any broker or other person dealing with the Buyer. The Buyer may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential. The Buyer shall defend, indemnify and hold harmless the seller, Agent and its affiliates from and against any claims, demands, damages, liabilities, costs or expenses, including reasonable attorneys’ fees, relating to any claim for a commission, finder’s fee or other compensation by any broker or other person dealing with the Buyer. The Property is being sold on an “as-is, where-is” and “with all faults” basis. - 2012

The StoryAddress: 4119 West shaw Avenue, Fresno, CA 93722

PUrCHAse PrICe . . . . . . . . . . . . . . . . .$3,132,000

CAP rATe . . . . . . . . . . . . . . . . . . . . . . . . .8 .00%

PrOFOrMA CAP rATe . . . . . . . . . . . . .13 .96%

PrICe Per sQ . FT . . . . . . . . . . . . . . . . . . .$87 .40

APPrOX . BUILdING sIZe . . . . . . . . . . .35,835 sF

LOT sIZe . . . . . . . . . . . . . . . . . . . . . . . . . .2 .62 Acres

YeAr BUILT . . . . . . . . . . . . . . . . . . . . . . .1990

ADD VALUe OPPORtUnity in Dense RetAiL MARKet in FResnO, CA West shaw Commerce Center is a well maintained, highly-visible retail and service center located in a densely populated market .

The property is being sold at an 8 .00% “actual” cap rate and is currently 62% leased . see page 5 for projected financial analysis .

While neither seller nor Capital Pacific make any representations or warranties, this offering should allow an investor to lease the property at modest rents and dramatically improve the yield .

The property has a very functional layout and is logically split between two buildings . One is retail and the other is automotive service . The two concepts are complimentary and should give an investor a large audience of prospective tenants to market the property for lease .

West shaw Commerce Center is a rare opportunity to purchase a well-located California asset at a price per foot below $100 (and below replacement costs) . This results in potential to create long-term asset appreciation . PROPeRty HigHLigHts

> Located in a dense retail market less than 1 mile from Highway 99

> surrounding national and regional retailers include Walmart, Kohl’s, Target, The Home depot, ross dress for Less, Big Lots, smart & Final, Walgreens, Old Navy, Office depot, Mcdonald’s, 7-eleven, Taco Bell, In n Out and several more

> Wal Mart has purchased the former Camp America property directly across the street and plans to open a Wal Mart supercenter . They are currently undergoing the entitlement process are expected to open the store in the 2016 .

> The subject property benefits from excellent demographics with nearly 220,000 people living in a 5 mile radius

> Traffic counts for the intersection of West shaw Avenue and North Brawley Avenue are in excess of 57,000 cars a day

> The center has solid fundamentals with excellent visibility and ingress/egress from West shaw Avenue and ample parking

Investment hIghlIghts | sUMMArY

maps | AerIAL

W Shaw Avenue (ADT: 36,325)

N Br

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W Ashlan Avenue

99Golden State Highway (ADT: 65,000)

N Golden State Boulevard

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EXISTINGPROPOSED

sUBJeCt pROpeRtY

W E S T S H A W A V E N U EN O r T H

sUIte 115vaCant

sUIte 107vaCant

West COast eXhaUst

InDIan maRKet

sUIte 106 vaCant

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WesT sHAW COMMerCe CeNTer 4WesT sHAW COMMerCe CeNTer 4

sUIte 105vaCant

Investment hIghlIghts | PAGe NAMesIte plan | WesT sHAW

Actual ProformaPrice: 3,132,000$ 3,313,798$

Price Per Square Foot $87.40 $92.47

Capitalization Rate: 8.00% 13.96%

Total Occupied 62% 22,105 100% 35,835

Total Vacant 38% 13,730 0% 0

Total Rentable Area (SF): 100% 35,835 100% 35,835

Lot Size (Acres): 2.62 2.62

Stabilized IncomePer Square

FootPer Square

FootScheduled Rent $9.24 $330,944 $14.20 $508,934

CAM Reimbursements $0.87 $31,286 $1.86 $66,486

Increase Prop Tax Recovery $0.15 $5,264 $0.36 $12,992

Effective Gross Income $10.26 $367,494 $16.42 $588,412

Vacancy (5%) ($29,421)

Adjusted Gross Income $367,494 $558,992Less: CAM Expenses* ($2.78) ($99,535) ($2.78) ($99,535)

Increased Property Tax** ($0.48) ($17,323) ($0.48) ($17,323)

Additional Mgmt Fee (1.5%) ($0.25) ($8,826)

Total Operating Expenses ($3.26) ($116,858) ($3.51) ($125,684)Equals: Net Operating Income $250,636 $462,728Proforma TI Costs ($10/ft TI contribution on vacant space) ($137,300)Leasing Commissions (5%) ($44,498)Total Costs to Get to Proforma ($181,798)

* 2012 CAM Expense Budget** Increased property tax based on 1.12% of sales price

4/10/2014 Capital Pacific Real Estate Brokerage Co.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

WesT sHAW COMMerCe CeNTer 5

FInanCIals | INCOMe & eXPeNse

tenant sq. Ft. termmonthly

RentYearly Rent

monthly Rent / Ft

Yearly Rent / Ft

annual Cam*

Options Rent Increase

good Year tire and Rubber Co 5,056 9/1/1990 8/31/2015 $7,350 $88,200 $1.45 $17.44 $2,400 1 - 5 yr 10.2% in Option

goodguys tire Center, Inc (expansion)

3,104 6/8/1997 8/31/2015 $2,684 $32,208 $0.86 $10.38 $9,028 1 - 5 yr 10.2% in Option

Utility Room 104 - - - - - - - -

California smog Repair, Inc 4,508 9/1/2012 8/31/2017 $6,381 $76,571 $1.42 $16.99 - ?

vacant 2,700 $2,700 $32,400 $1.00 $12.00 $9,477 -

Western Coast exhaust 2,814 8/1/2012 1/31/2027 $4,100 $49,200 $1.46 $17.48 - none

Utility Room 96 - - - - - - - -

vacant 2,399 $2,399 $28,788 $1.00 $12.00 $8,420 -

me n’ ed’s pizzat 2,731 1/1/1995 12/31/2021 $3,414 $40,965 $1.25 $15.00 $9,205 none 8% on 1/1/17

Indian market 2,175 4/1/2013 3/31/2019 $2,200 $26,400 $1.01 $12.14 - none

tax preparation 1,450 2/1/2014 1/31/2018 $1,450 $17,400 $1.00 $12.00 $5,090 1 - 3 yr 10% in Option

vacant 4,221 $4,221 $50,652 $1.00 $12.00 $14,816 -

vacant 4,410 $5,513 $66,150 $1.25 $15.00 $15,479

KFC (nap) $5,564

Utility Room 42 - - - - - - - -

Fire sprinkler 25 - - - - - - - -

Current totals: 35,835 $42,411 $508,934 $1.18 $14.20 $79,478

Occupied: 22,105

Vacant: 13,730

FInanCIals | reNT rOLL

WesT sHAW COMMerCe CeNTer 6

WesT sHAW COMMerCe CeNTer 7

The Goodyear Tire & rubber Company is the #3 tire maker in the world, behind Bridgestone and Michelin . Organized into four geographic segments, the company operates a combined 60 plants worldwide, and has nearly 1,800 retail tire and auto centers . Goodyear sells tires for the replacement market as well as to the world’s automakers . In addition to its own brand of tires, Goodyear makes dunlop tires for sale in North America and europe through its alliance with Japan’s sumitomo . The company has sold its engineered Products division to The Carlyle Group .

Good Guys Tire and Auto repair provides tire rotations, oil changes, tune-ups, brake jobs, specialized services and much more . They are invested in bringing you the latest industry advancements at a competitive price for customer convenience and peace of mind and pattern themselves after the highest level of industry standards and service . In 1976 Pete shubin opened the first Good Guys Tire and Auto repair in Madera, California . Family owned and operated locally for over 30 years, Good Guys Tire and Auto repair has achieved national recognition . Now with nine locations throughout Fresno, Clovis, sanger, Visalia, and Madera, they continue to deliver superior automotive repair at an affordable price . And an empty service bay means you are in and out today .

pROpeRtY DesCRIptIOnpROpeRtY DesCRIptIOn | TeNANT OVerVIeW

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WesT sHAW COMMerCe CeNTer 8

Investment hIghlIghts | PAGe NAMeFeatUReD phOtOs | WesT sHAW

sUBJeCt PROPeRty

maps | reGIONAL MAP

WesT sHAW COMMerCe CeNTer 9

FResnO, CA

Fresno is located in the fertile san Joaquin Valley in the central part of California, about halfway between san Francisco and Los Angeles . Fresno is about 60 miles south of Yosemite National Park, and is the closest major city to the park, making the city is a major gateway for visitors coming from Los Angeles . The city also serves as an entrance into sequoia and Kings Canyon National Parks via Highway 180 . Fresno is the sixth-largest city in California, and the county seat of Fresno County . The 2005 California department of Finance estimated metropolitan area population was 1,002,284 . Largest city and economic hub of California’s expansive and expanding Central Valley

Agriculture is the backbone of the Fresno area, employing nearly 20 percent of the workforce and providing more than $3 .5 billion to the local economy .

Fresno is also undergoing an economic transformation towards non-agricultural industry: an ernst and Young study ranked Fresno high on a list of preferred sites for manufacturing and distribution due to its central location and access to over 35 million consumers within a day’s drive .

Major manufacturing companies in Fresno include sun-Maid, Kraft Foods and Foster Farms . Fresno is a major regional hub for distribution centers, including Gap’s 80-acre facility . DeMOgRAPHiCs

population 1 mile 3 miles 5 miles

2010 Population 13,176 120,549 218,3842013 Population 13,840 123,299 221,2462018 Population (Projection) 14,749 128,438 228,700

2013 Income

2013 Average Household Income $54,723 $70,674 $67,0782013 Median Household Income $43,441 $51,676 $48,748

tOP eMPLOyeRs in FResnO

Industry # of employees (Approx)

Community Medical Centers 6,000

City of Fresno 4,160

Kaiser Permanente 2,600

saint Agnes Medical Center 2,030

Quinn CAT 1,180

FOR MORe inFORMAtiOn

Chris Peters | cpeters@capitalpacific.com (415) 274-2703

Chris Kostanecki | ck@capitalpacific.com (415) 274-2701Zeb Ripple | zripple@capitalpacific.com (415) 274-2702

Copyright © 2014 [Capital Pacific real estate Brokerage Company]

maRKet IntellIgenCe | AreA OVerVIeW