For further information, please contact:Ranga Pathak, Broker-AssociateBRE Lic. No. 01364897Tel: (916)201-9247ranga.pathak@norcalgold.com

Offering Memorandum

Value-Add Multi-Tenant Retail for sale5620 Watt Avenue, North Highlands, CA 95660

List Price: $ 995,000.00Size: 11,380 s.f.Price per s.f.: $ 87.43Proforma Cap. Rate: 9.04%

Multi-Tenant Retail anchored by Papa Murphy’sOwner-User/Investor OpportunityPriced well below replacement costImmediate vicinity of McClellan Business Park

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Table of Contents

Table of Contents:

Page Contents

3. ConfidentialityandDisclaimer

4-5. The Offering

6-7. MarketProfile

8. Aerial View

9. Location Map

10-11. Property Information

12. Demographics

2

Confidentiality Statement and Disclaimer

This Offering Memorandum contains select information pertaining to the North Highlands Shopping Center located at 5620 Watt Avenue, North Highlands, CA. It has been prepared by RE/MAX Gold. This Offering Memorandum may not be all-inclusive or con-tainalloftheinformationaprospectivepurchasermaydesire.TheinformationcontainedinthisOfferingMemorandumisconfiden-tial and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or RE/MAX Gold. The material is based in part uponinformationsuppliedbytheSellerandinpartuponfinancialinformationobtainedfromsourcesitdeemsreliable.Owner,northeirofficers,employees,oragentsmakesanyrepresentationorwarranty,expressorimplied,astotheaccuracyorcomplete-ness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from RE/MAX Gold, you agree: 1.TheOfferingMemorandumanditscontentsareconfidential;2.Youwillholditandtreatitinthestrictestofconfidence;and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

OwnerandRE/MAXGoldexpresslyreservetheright,attheirsolediscretion,torejectanyandallexpressionsofinterestoroffersto purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executedanddelivered.

If you wish not to pursue negotiations leading to the acquisition of the North Highlands Shopping Center or in the future you dis-continue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

Aprospectivepurchaser’ssoleandexclusiverightswithrespecttothisprospectivetransaction,theProperty,orinformationprovidedhereinorinconnectionwiththesaleofthePropertyshallbelimitedtothoseexpresslyprovidedinanexecutedPurchaseAgreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against SellerorRE/MAXGoldoranyoftheiraffiliatesoranyoftheirrespectiveofficers,Directors,shareholders,owners,employees,oragents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

3

The Offering

Executive Summary

5620 Watt Avenue, North Highlands, CA: OFERING MEMORANDUM

Executive Summary:

RE/MAXGold,asexclusiveagentispleasedtoofferafeesimpleinterestintheNorthHighlandsShoppingCenter,located at 5620 Watt Avenue, North Highlands, CA. This is a value-add retail investment opportunity on a major arterial road in Sacramento county.

The North Highlands Shopping Center is a 10-unit retail property that is currently occupied by four tenants and is50%occupied.Itisauniqueopportunityforanowner-usertooccupyasignificantportionofthebuildingoraninvestor to add value by lease-up. The vacant suites, each of which is separately metered, allow for them to either be rented individually or combined and leased to larger users. Additional added value can be achieved by convert-ing the month to month gross leases to net leases thereby raising landlord revenue.

Papa Murphy’s Pizza is the anchor tenant occupying a front end cap space in the property. Papa Murphys’ lease startedin2016basedasa10-yearleasewithoptions.Discountstore,OneStopmovedintotheirspacein2016based on a 5-year lease with options. Harvey’s Tavern has been in the property since 2003. It is currently on a month-month lease and has a strong following among locals. El Salon Classico has been in the property since 2005andiscurrentlyonamonth-monthlease.Weinerschnitzel,locatednextdoorat5644WattAvenue,hasaground lease on a portion of the land within the subject property and their lease is until 2024.

TheNorthHighlandsShoppingCenterisanexcellentopportunityforanowner-userorinvestortoacquireavalueadd investment at well below replacement cost in a central location in Sacramento county in the immediate vicinity of the McClellan Business Park and close to freeways.

4

Offering Highlights:

The Offering

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM

Offering Summary

5

Price: $ 995,000.00Gross Area: 11,380 s.f.Leasable Area: 10.092 s.f.Price.s.f. $87.43Percent Leased: 52%Land Area: 1.16 acresZoning: SPA Year Built 1970Parcel Numbers: 218-0161-022-0000 218-0161-024-0000Key Tenants: Papa Murphy’s One Stop El Salon Classico WienerschnitzelGross Proforma Income $125,692Net Proforma Income $ 89,898Proforma Cap Rate: 9.04%

Market Profile

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM

Market ProfileThe subject property is located within North Highlands, a unique and established area within Sacramento county. Sacramento is the capital city of the U.S. state of California and the seat of government of Sacra-mentoCounty.ItislocatedattheconfluenceoftheSacramentoRiverandtheAmericanRiverinthenorth-ernportionofCalifornia’sexpansiveCentralValley.Sacramentoisthesixth-largestcityinCaliforniaandthe35th largest city in the United States.

Sacramento is the core cultural and economic center of the Sacramento metropolitan area which has an es-timated population of 500,000 in Sacramento, and 2.50 million in the seven county region. The metropolitan area is the fourth largest in California after, as well as the 25th largest in the United States. Sacramento was cited by Time Magazine as America’s most ethnically and racially integrated city in 2002.

Sacramento is a transportation hub, served by an air cargo airport, an international airport, a deep-water shippingport,twomajorInterstatefreeways,freightandpassengerraillines,andanextensiveregionalcommuter bus and light-rail system.

North Highlands is conveniently located north of downtown, it is minutes from Highway 80, which connects to the San Francisco Bay area in the south and Reno in the north, and Business 80, which connects to most of the greater Sacramento area neighborhoods. Watt Avenue, where the subject property is located, is a major artery of North Highlands and its most active business corridor. North Highlands is home to McClellan Park, Sacramento’s largest master planned community, a former Air Force base and a unique corporatebusinesspark.McClellanBusinessParkisagrowingbusinessenclavethathostsadiversemixofcompanies spread across more than 8 million square feet of space of all types. This former military facility is now home to hundreds of private companies, as well as state, federal and local government agencies and has become a magnet for private investment. Tenants include Surewest, Northrop Grumman, J.C. Penney, TheUSDAWildfireAcademy,BeutlerHeatandAir,RegionalTransit,CaliforniaDepartmentofTransporta-tion,CalFire,TheUSCoastGuard,AARATICS,GeneralDynamics,XOJets,FlightOptions,OzarkTruck-ing,PatriotRail,SMUD,TwinRiversSchoolDistrict,Americorpandmanymore.McClellanhasthepotentialto employ a workforce of 35,000 at full capacity. North Highlands is home to the Aerospace Museum of California, which displays military and civilian aircraft. Both North Highlands and the neighboring commu-nity of Antelope have very proud and patriotic histories around the former Air Base and have a very active veteran population

6

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM

Market Profile

Area Map

7

5620 Watt Avenue, North Highlands, CA:: OFERING MEMORANDUM

Watt Avenue

Aerial View

Aerial View

North Highlands Shopping Center

8

Location Map

Location Map

5620 Watt Avenue, North Highlands, CA:: OFERING MEMORANDUM9

Property Information

Building Information

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM

Rent Roll

10

Expenses

Property Information

Site Plan (Not to scale)

Harvey’sTavern5639 Lura Alley1,186 s.f.

One Stop5620B-2 Watt1,721 s.f.

El SalonClassico5622 Watt1,107 s.f.

SMUD/Fire

Common Area hallway and Restrooms for 5624, 5626 & 5628 Watt

Watt Avenue

Available1,005 s.f.

Available1,000 s.f.

Available1,300 s.f.

Available420 s.f.

Available377 s.f.

Available775 s.f.

5624 Watt5626 Watt5628 Watt

5635 Lura Alley

5631 Lura Alley 5620 Watt Avenue

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM11

5620B-1 Watt1,201 s.f.

Demographics

Demographics

5620 Watt Avenue, North Higlhlands, CA: OFERING MEMORANDUM12