independently owned and operated 48” x 48” … disclaimer line, independently owned and...

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Confidential Offering Memorandum Smart & Final Extra 7205 Freeport Blvd, Sacramento, CA 27,870 SF Newly Constructed Building on 3.07 Acres | 15 Year Corporate Lease | 27,000 CPD Traffic Exposure HOOK RETAIL ADVISORS Scott G. Hook | Executive Vice President D: 949.954.3724 | C: 949.290.8884 E: [email protected] | LIC# 00914392 2600 Michelson Drive Suite 100, Irvine, CA, 92612 ALLIANCE *Not Of Subject Property $10,219,000 Cap Rate: 5.25% | Low Psf: $366 OPENING DECEMBER 2014

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C o n f i d e n t i a l O f f e r i n g M e m o r a n d u m

S m a r t & F i n a l E x t r a7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

27,870 SF Newly Constructed Building on 3.07 Acres | 15 Year Corporate Lease | 27,000 CPD Traffic Exposure

IDENTITY STANDARDS 2

ALLIANCE

PROPERTY SIGNSThe example above illustrates the approved format for standard commercial property signs.

STANDARD SIGNThe standard sign consists of a 48 inches wide by 48 inches high (76 x 76 Grid Units) white panel.

TELEPHONE NUMBERTelephone numbers are to be displayed in blue Helvetica bold numerals. The exact size is proportioned as illustrated above. No personal residence phone number is to be referenced on the sign.

REQUIRED DISCLAIMERThe disclaimer line, Independently Owned and Operated, as shown in this Manual, MUST always appear in upper and lower case Helvetica type style on all property signs.

PROPERTY SIGNS

303-238-7777FOR LEASE

Ben GilliamJohn Tretor

www.cbcalliance.com

Independently Owned and Operated

ALLIANCE

48” x 48” PROPERTY SIGN

HOOK RETAIL ADVISORSScott G. Hook | Executive Vice PresidentD: 949.954.3724 | C: 949.290.8884 E: [email protected] | LIC# 009143922600 Michelson Drive Suite 100, Irvine, CA, 92612

ALLIANCE

*Not Of Subject Property

$10,219,000Cap Rate: 5.25% | Low Psf: $366

OPENING DECEMBER 2014

ALLIANCE

Sign Standards for Offices of CBC Alliance

SIGN STANDARDS

S m a r t & F i n a l E x t r a

I N V E S T M E N T O V E R V I E W

I N V E S T M E N T H I G H L I G H T S

F I N A N C I A L D E TA I L S

T E N A N T O V E R V I E W

P R O P E R T Y D E S C R I P T I O N

D E M O G R A P H I C S

TA BL E OF C ON T E N T S

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

O F F E R I N G M E M O R A N D U M

EXCLUSIVE AGENT - HOOK RETAIL ADVISORS

SCOTT G. HOOKExecutive Vice President

CBC AllianceD: (949) 954-3724 | M: (949) 290-8884

[email protected]

DANIEL TYNERAssociate

CBC AllianceD: (949) 954-3723 | M: (562) 810-1282

[email protected]

www . C B C A L L I A N C E.com

www . H O O K R E TA I L A D V I S O R S .com

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

S m a r t & F i n a l | 7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

SCOTT G. HOOK | Executive Vice President | O: 949.954.3724 | [email protected] | Lic# 00914392DANIEL TYNER | Associate | O: 949.954.3723 | [email protected] | Lic# 01959818

2600 Michelson Drive, Suite 100, Irvine, CA 92612 | www.CBCAlliance.com | DRE #01929723

HOOKRETAIL ADVISORS

ALLIANCE

Coldwell Banker Commercial Alliance is a national commercial real estate brokerage company headquartered in New York City, dedicated to serving small and mid-sized businesses, investors, and other users of real estate. The company is an independently owned and operated affiliate of Coldwell Banker Commercial®.

MARKET WATCH YEAR END 2012

ALLIANCE

I N V E S T M E N T O V E R V I E W

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C AINVESTMENT OVERVIEW

Hook Retail Advisors of Coldwell Banker Commercial Alliance, is pleased to exclusively market for sale a brand new Smart & Final Extra! Located at the intersection of Freeport Boulevard and Florin Road in Sacramento. The subject property is a 27,870 square foot freestanding building that is situated on a 2.90 acre site. The lease has an initial term of 15 years and includes four, five-year renewal options. The lease rate increases 10% every five years during the initial lease term and during each option period. Landlord responsibilities are limited to repair of the roof and structure and replacement of the HVAC system.

The subject property is situated at the intersection of two major corridors. The Smart & Final Extra will benefit from excellent signage, parking, access, and visibility. The Interstate 5 is located approximately one-half mile west of the property on Florin Road. Freeport Boulevard and Florin Road are both major surface streets and provide access from the expanding neighborhoods. Traffic counts along Florin Road exceed 28,000 vehicles per day and almost 17,000 vehicles per day along Freeport Boulevard. The subject property is located just outside of Sacramento, within an affluent neighborhood bounded by the Sacramento River to the west and Interstate 5 to the east. The neighborhood is primarily developed with attached and detached single-family residences, with several large multi-family properties and town home projects. The Sacramento Executive Airport is located to the north of the subject property and there are several industrial properties near the airport. Overall, the subject has an excel-lent location at the intersection of two major roadways that serve the surrounding residential neighborhoods with a total population in excess of 368,000 persons in a 5 mile radius.

INVESTMENT HIGHLIGHTS:

• Smart & Final Extra! - “West Retailer of the Year” - Shelby Report

• New Prototype Design - Opening December 2014

• 15-Year Corporate Lease with Four, 5-Year Options

• 10% Rent Increases Every Five Years

• 4% Leveraged Yield on $4 Million Down Payment

• High-Traffic Location at the Intersection of Two Major Thoroughfares

• Excellent Access from Interstate 5

• Dense Population: 146,000 Persons (3 Mile) 368,000 Persons (5 Mile)

• Lowest Priced PSF on Market for Grocer or Drugstore at just $366 psf!

• Nearby Retailers Include CVS, Bel-Air Foods, Dollar Tree, Home Depot,

Walgreens, Nugget Market, Marshalls, Rite Aid, Staples, Chase,

Citibank, and Starbucks

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

S m a r t & F i n a l | 7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

SCOTT G. HOOK | Executive Vice President | O: 949.954.3724 | [email protected] | Lic# 00914392DANIEL TYNER | Associate | O: 949.954.3723 | [email protected] | Lic# 01959818

2600 Michelson Drive, Suite 100, Irvine, CA 92612 | www.CBCAlliance.com | DRE #01929723

HOOKRETAIL ADVISORS

ALLIANCE

Coldwell Banker Commercial Alliance is a national commercial real estate brokerage company headquartered in New York City, dedicated to serving small and mid-sized businesses, investors, and other users of real estate. The company is an independently owned and operated affiliate of Coldwell Banker Commercial®.

MARKET WATCH YEAR END 2012

ALLIANCE

F I N A N C I A L D E T A I L S

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

Monthly Rate$44,708.13 $49,178.94 $54,096.83 $59,506.51 $65,457.17 $72,002.88 $79,203.17

Rent Increases Years 1-5 Years 6-10 Years 11-15 Years 16-20 (Option Years 21-25 (Option Years 26-30 (Option Years 31-35 (Option

ANNUALIZED OPERATING DATA

Annual Rent$536,497.50$590,147.25$649,161.98$714,078.17$785,485.99$864,034.59$950,438.05

Base Rent ($19.25 sf ) $536,498Net Operating Income $536,498Debt Service $372,802Debt Coverage Ratio 1.31Net Cash Flow After Debt Service 4.0 % / $163,696Principal Reduction $98,720Total Return 6.42 % / $262,416

Price: $10,219,000Down Payment: 40% / $4,088,000Rentable Square Feet: 27,870Price Per Square Foot: $366.00Cap Rate: 5.25%Year Built: 2015Lot Size: 2.90 Acres

FINANCIAL OVERVIEW

Loan Amount: $6,131,000Loan Type NewInterest Rate: 4.5%Amortization: 30 Years*Please Inquire With Agents

FINANCIAL OVERVIEW

FINANCIAL DETAILS

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

S m a r t & F i n a l | 7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

SCOTT G. HOOK | Executive Vice President | O: 949.954.3724 | [email protected] | Lic# 00914392DANIEL TYNER | Associate | O: 949.954.3723 | [email protected] | Lic# 01959818

2600 Michelson Drive, Suite 100, Irvine, CA 92612 | www.CBCAlliance.com | DRE #01929723

HOOKRETAIL ADVISORS

ALLIANCE

Coldwell Banker Commercial Alliance is a national commercial real estate brokerage company headquartered in New York City, dedicated to serving small and mid-sized businesses, investors, and other users of real estate. The company is an independently owned and operated affiliate of Coldwell Banker Commercial®.

MARKET WATCH YEAR END 2012

ALLIANCE

T E N A N T O V E R V I E W

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C ATENANT OVERVIEW

Recently named “West Retailer of the Year” by The Shelby Report, Smart & Final is the convenient warehouse grocery store com-mitted to offering superior service, exceptional value and quality products to households, business and community groups.

For many years, Smart & Final was known as “the smaller faster warehouse store,” a place where restaurant chefs, culinary professionals and other businesses and organizations shopped for their distinct, restaurant-quality product assortment and low warehouse prices. Households shopped too to get those same great deals and products, especially when they were planning events or stocking up their pantry.

Today, they still have their convenient locations, quality products and low warehouse prices - without a membership fee - but they also offer so much more, especial-ly at the more than 70 Smart & Final Extra! stores. Much larger than the traditional warehouse stores, Smart & Final Extra! combines the high quality fresh produce of a farmer’s market, the low prices of a discount grocer and the large club size products of a traditional club store. But you don’t need to buy in bulk when you shop at Smart & Final Extra! They also carry thousands of items in smaller, convenient sizes. In addition they have everything that small businesses, clubs and organizations need on a daily basis. So whether you are shopping for your business or organization, stocking up, planning a party or preparing a meal for your family, visit your local Smart & Final or Smart & Final Extra! Whether you buy big or buy small, you will save big at Smart & Final! We have just what you need!

Ares Management LLC (“Ares” or the “Firm”) is a leading global alternative asset manager and SEC registered investment adviser with approximately $74 billion of assets under management (“AUM”) and approximately 700 employees. The firm is headquartered in Los Angeles with offices across the United States, Europe, Asia and Australia. Ares manages four distinct but complementary and integrated investment groups that invest in the tradable credit, direct lending,

private equity and real estate markets and has the ability to invest in all levels of a company’s capital structure—from senior debt to common equity. The Firm was built upon the fundamental principle that each platform benefits from being part of the greater whole. We believe the synergies from this multi-asset strategy provide our professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value. While effecting a diverse range of transaction types, we rigorously maintain a consistent credit-based approach to target well-structured investments in high quality businesses and real estate assets. We believe our growth in becoming one of the largest loan investors and alternative asset managers in the United States is a testament to our experienced man-agement team, focus on performance and high quality investor base, which includes large pension funds, university endowments, sovereign wealth funds, banks and insurance companies.

They manage approximately $10 billion of AUM as of December 31, 2013, through five private equity funds: Ares Corporate Opportunities Fund, L.P. (2003); Ares Cor-porate Opportunities Fund II, L.P. (2006); Ares Corporate Opportunities Fund III, L.P. (2008); Ares Corporate Opportunities Fund Asia, L.P. (2011); and, Ares Corporate Opportunities Fund IV, L.P. (2012).

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

SMART & FINAL STORES GROW GROCERY VISION - OC REGISTER

Fresh off last week’s IPO, Smart & Final is shifting its image from a warehouse superstore to compete with grocers like Sprouts and Trader Joe’s – selling bulk organics and piloting online delivery. With chains struggling to stay relevant, big-box retailers setting up shop and alternative stores such as Trader Joe’s growing in popularity, the 143-year-old Smart & Final has plotted a new course to keep consumers coming. The company’s newest initiative is converting and opening Smart & Final Extra stores, a larger concept with thousands more household items. On Thursday, the company opened its 200th store – an Extra – in Long Beach, the home of its first store under the Smart & Final name. Last week, the company, which includes roughly 250 grocery and food service stores in six Western states, raised $161 million in its initial public offering. A majority of the proceeds, $115.5 million, will repay debt. The remaining funds will go toward growth initiatives.

David Hirz, Smart & Final’s chief executive and a Santa Ana resident, has held every gig in the grocery game from bag boy to store manager. He shares how the Com-merce-based company plans to adapt with the industry:

Q. How is Smart & Final staying relevant?A. Our customers really tell us everyday what they want and how their tastes are evolving. Over the years, we’ve done a good job of evolving with that. For instance, in our produce department, we carry 520 fresh produce items; in addition, we carry 80 organic produce items. About two years ago, we added about 1,000 items in the dry grocery part of the center store that are all natural and organic because that’s what the consumer is looking for. We began putting bulk food departments in where people can buy fresh, natural or organic.

Q. Amazon Fresh and other grocery delivery services are becoming more ubiquitous – do you see that as competition, and will you look at adding delivery at some point? A. We are actually testing delivery in 10 Smart & Final stores for businesses. It’s in a pilot mode. Initial results are encouraging, but it’s too soon to determine whether it’ll be expanded. We’re also doing tests (with household customers) in Northern California as well as Southern California in West Los Angeles with Google Express. They can order products from Smart & Final, Staples and Walgreens and a few other retailers and have those delivered by a Google Express driver – same day or next day delivery.

Q. How does Smart & Final set itself apart from competitors?A. Smart & Final combines the produce department of a farmers market with the low pric-es of a mass merchant – 12 to 16 percent lower than a conventional supermarket. Then we have almost 2,000 unique business items. Not another retailer I know of caters to both households and businesses.

Q. What attracted you to work at Smart & Final?A. I really liked what I saw. Alternative formats are really taking shares from conventional. That’s been going on for probably 10 years or more. I looked at Smart & Final and saw the uniqueness of the store – more club size items than club stores carry, the uniqueness of the business customer.

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

SMART & FINAL STORES GROW GROCERY VISION - OC REGISTER (CONT.)

Q. How important is the business customer?A. About a third of our business at Smart & Final is business customers. It’s office buildings, restaurants and food trucks. If you go to any outdoor event in Orange County – you have the Tustin Tiller Days coming up this weekend or the Orange (International Street Fair) – you’ll see a lot of our First Street private label.

Q. With all the grocery stores out there, why do people need Smart & Final?A. With the Smart & Final Extra, when we added 4,500 household items, it totally replaces a shopping trip. Our pricing is 12-16 percent lower. That’s why Smart & Final does really well in urban or suburban, low-income or higher income, because everyone appreciates value. Value is the new normal.

Q. What’s your favorite thing to buy at Smart & Final?A. We have the best rotisserie chicken in the world. My pantry is full of First Street items.

Q. Besides Smart & Final, what’s your favorite place to shop?A. You gotta like Nordstom. I like Williams-Sonoma. I love to cook.

Q. When you’re shopping at places like that, do you take anything back to Smart & Final?A. Since I’ve been in the business since I was 16, no matter what store I’m in, I’m always looking for ideas. I spend a lot of time in competition every week. Sure, I’ll go to a Wil-liams-Sonoma and try an olive oil and think that’s something our customers would like, and we’ll have to figure out how to get that.

Q. What do you think is the grocery industry’s biggest threat?A. Some people say online, but I don’t know that that’s true. I think that maybe (those) who only cater to only the highest income customer may be at risk with online. My customer at Smart & Final is someone who really appreciates value.

Q. What’s the best piece of advice you’ve received in your career?A. Early in my career, I was advised I should always take good care of my associates, and they’ll take care of the customers. I always put associates first.

Q. You’ve worked almost every job in the industry, including bag boy and store manager. Which position taught you the most? A. Store manager: I managed 14 different stores. Every store I worked in, the customers were a little different. Also, the associate base was a little different. I found very good asso-ciates and some that needed to be coached a different way. I think managing those differ-ent stores was my best experience.

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

S m a r t & F i n a l | 7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

SCOTT G. HOOK | Executive Vice President | O: 949.954.3724 | [email protected] | Lic# 00914392DANIEL TYNER | Associate | O: 949.954.3723 | [email protected] | Lic# 01959818

2600 Michelson Drive, Suite 100, Irvine, CA 92612 | www.CBCAlliance.com | DRE #01929723

HOOKRETAIL ADVISORS

ALLIANCE

Coldwell Banker Commercial Alliance is a national commercial real estate brokerage company headquartered in New York City, dedicated to serving small and mid-sized businesses, investors, and other users of real estate. The company is an independently owned and operated affiliate of Coldwell Banker Commercial®.

MARKET WATCH YEAR END 2012

ALLIANCE

P R O P E R T Y D E S C R I P T I O N

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

LOCATIONProperty Property AddressAssessor’s Parcel Number Zoning

SITE DESCRIPTIONNumber of Stories Year Built Rentable Square Feet Lot Size Type of Ownership Parking

CONSTRUCTIONFoundation Framing Exterior Parking Surface Roof

MECHANICALHVAC Fire Protection Utilities

INTERIOR DETAIL Walls Ceilings Floor Coverings Rest Rooms

SMART AND FINAL EXTRA PROPERTY DESCRIPTION

Smart & Final Extra! 7205 Freeport Boulevard Sacramento, CA 95831 047-0290-005 C-1-R-EA-4, Limited Commercial

One 2015 Finish27,870 3.07 Acres Fee Simple Surface

Reinforced Concrete Slab Concrete Masonry Unit Painted Stucco Asphalt EPDM

Roof-Mounted Units Sprinklers Public; All to Site

Painted Sheetrock Acoustical Ceiling Tile Vinyl Tile One Set of Men’s and Women’s Facilities

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

Sacramento is the state capital of California and is the sixth-largest city in the state. In 2013, the city had an estimated population of 478,274 residents. This compares to a

population of 405,291 in 2000. Between 2000 and 2010 the population in Sacramento grew by 15.0% and it is forecast to grow to 504,171 by 2018, a further 5.4% increase. The

median household income in the city was $66,893 at the end of 2013, and improvement over the median income of $49,205 in 2000. Income growth is projected at 14.0% over

the next five years, to $76,275 in 2018. The state government is by far the largest employer in the city and will remain the driving economic force in the future. Health care is also

an important sector, with Kaiser Permanente, Sutter Health, Dignity Healthcare, and UC Davis Health System all having a major presence in the area.

CITY DESCRIPTION

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

SALE COMPARABLES

Walgreens13331 Telegraph Rd, Whittier, CA 90605

Sale Price: $7,175,000 Close Of Escrow: 05/09/2014

Cap Rate: 5.30% Sqft: 14,076 sqft

Price Per Foot: $509.73 Year Built: 2008

Walgreens3019 Floyd Ave, Modesto, CA 95355

List Price: $8,080,000 Close Of Escrow: 7/29/2014

Cap Rate: 5.11% Sqft: 14,820 sqft

Price Per Foot: $545.21 Year Built: 2009

Smart & Final770 West San Marcos, San Marcos, CA 92078

(8 Years Remain on Lease)

Sale Price: $8,118,000 Close Of Escrow: 9/18/2014

Cap Rate: 5.35% Sqft: 20,725 sqft

Price Per Foot: $391.70 Year Built: 2002

Smart & Final Walgreens2040 Glenoaks Blvd, San Fernando, CA

Sale Price: $19,700,000 SOLD: IN ESCROW

Cap Rate: 5.3% Sqft: 38,609 sqft

Price Per Foot: $510.00 Year Built: 2014

Walgreens2700 Willow Pass Rd, Pittsburg, CA 94565

Sale Price: $10,638,190 Close Of Escrow: FOR SALE

Cap Rate: 5.25% Sqft: 14,7070 sqft

Price Per Foot: $756.09 Year Built: 2011

WalgreensSE Corner of Wilson Way & Fremont, Stockton, CA 95205

Sale Price: $9,250,000 SOLD: FOR SALE

Cap Rate: 5.30% Sqft: 14,820 sqft

Price Per Foot: $625.16 Year Built: 2014

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

SALE COMPARABLES

Walgreens1501 W. Whittier Blvd, Montebello, CA 90540

Sale Price: $8,500,000 Close Of Escrow: FOR SALE

Cap Rate: 5.10% Sqft: 14,775 sqft

Price Per Foot: $575.30 Year Built: 2004

7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

S m a r t & F i n a l | 7 2 0 5 F r e e p o r t B l v d , S a c r a m e n t o , C A

SCOTT G. HOOK | Executive Vice President | O: 949.954.3724 | [email protected] | Lic# 00914392DANIEL TYNER | Associate | O: 949.954.3723 | [email protected] | Lic# 01959818

2600 Michelson Drive, Suite 100, Irvine, CA 92612 | www.CBCAlliance.com | DRE #01929723

HOOKRETAIL ADVISORS

ALLIANCE

Coldwell Banker Commercial Alliance is a national commercial real estate brokerage company headquartered in New York City, dedicated to serving small and mid-sized businesses, investors, and other users of real estate. The company is an independently owned and operated affiliate of Coldwell Banker Commercial®.

MARKET WATCH YEAR END 2012

ALLIANCE

D E M O G R A P H I C S

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

DEMOGRAPHICS

Freeport BlvdSacramento, CA 95818

Population 1-mi. 3-mi. 5-mi.Total Population 16,408 146,389 368,382

Group Quarters Population 68 3,829 8,135

Urban Population 16,408 146,388 367,861

Rural Population 0 1 520

Not defined 0 0 0

Adult Population 13,226 117,223 283,714

Ratio of Males to Females 0.9 1.0 1.0

Female Population 8,652 74,180 188,423

Male Population 7,756 72,209 179,959

Land Area (Square Miles) 3.1 27.0 99.2

Age 1-mi. 3-mi. 5-mi.Median Age, Total 42.3 36.2 34.5

Median Age, Male 41.4 35.6 33.6

Median Age, Female 43.1 36.8 35.5

% Age 18+ 80.6 80.1 77.0

% Age 21+ 78.3 77.0 72.7

% Age 55+ 30.1 24.4 23.6

% Age 65+ 14.0 12.3 12.2

Freeport BlvdSacramento, CA 95818

Population 1-mi. 3-mi. 5-mi.Total Population 16,408 146,389 368,382

Group Quarters Population 68 3,829 8,135

Urban Population 16,408 146,388 367,861

Rural Population 0 1 520

Not defined 0 0 0

Adult Population 13,226 117,223 283,714

Ratio of Males to Females 0.9 1.0 1.0

Female Population 8,652 74,180 188,423

Male Population 7,756 72,209 179,959

Land Area (Square Miles) 3.1 27.0 99.2

Age 1-mi. 3-mi. 5-mi.Median Age, Total 42.3 36.2 34.5

Median Age, Male 41.4 35.6 33.6

Median Age, Female 43.1 36.8 35.5

% Age 18+ 80.6 80.1 77.0

% Age 21+ 78.3 77.0 72.7

% Age 55+ 30.1 24.4 23.6

% Age 65+ 14.0 12.3 12.2

Ethnicity 1-mi. 3-mi. 5-mi.% White 65.0 45.4 37.3

% Black 5.3 9.7 11.3

% Asian 7.2 12.0 15.7

% Hispanic 17.6 27.1 29.5

% Other 4.9 5.8 6.2

5 Year Projections 1-mi. 3-mi. 5-mi.Total Population 16,269 147,646 375,295

Group Quarters Population 68 3,830 8,136

Adult Population 13,071 118,074 288,993

Total Households 7,539 65,713 149,655

Per Capita Income (based on Total Population) 49,997 32,539 28,958

Total Population 16+ 13,388 121,123 298,025

5 Year Ethnicity Projections 1-mi. 3-mi. 5-mi.% White 64.1 43.5 35.2

% Black 5.2 9.7 11.3

% Asian 7.1 12.2 16.2

% Hispanic 18.8 28.8 31.3

% Other 4.8 5.7 6.0

Housing and Household's 1-mi. 3-mi. 5-mi.Total Housing Units 7,902 69,739 155,513

Total Households 7,581 64,578 145,654

Owner-Occupied: Owned with a mortgage or loan 3,505 19,451 47,091

Owner-Occupied: Owned free and clear 1,197 7,538 18,555

Renter-Occupied 2,878 37,589 80,008

Aggregate Contract Rent $2,689,895 $30,380,599 $67,398,344

Average (Mean) Number of Vehicles Available 1.7 1.6 1.7

Housing Value 1-mi. 3-mi. 5-mi.Housing Value < $10,000 2 143 725

Housing Value $10,000-$14,999 0 36 435

Housing Value $15,000-$19,999 1 95 738

Housing Value $20,000-$24,999 4 214 525

Housing Value $25,000-$29,999 0 115 344

Housing Value $30,000-$34,999 16 84 348

Housing Value $35,000-$39,999 75 229 493

Housing Value $40,000-$49,999 29 262 666

Housing Value $50,000-$59,999 10 135 451

Housing Value $60,000-$69,999 9 263 1,126

Housing Value $70,000-$79,999 38 382 1,519

Housing Value $80,000-$89,999 73 879 2,245

Housing Value $90,000-$99,999 386 1,500 2,836

Housing Value $100,000-$124,999 712 2,348 5,459

Housing Value $125,000-$149,999 80 1,482 4,278

Housing Value $150,000-$174,999 209 2,489 6,383

Housing Value $175,000-$199,999 240 2,430 5,764

Housing Value $200,000-$249,999 235 2,733 6,856

Housing Value $250,000-$299,999 378 2,552 6,568

Housing Value $300,000-$399,999 711 3,659 8,629

Housing Value $400,000-$499,999 582 2,044 4,273

Housing Value $500,000-$749,999 722 2,044 3,688

Housing Value $750,000-$999,999 157 605 912

Housing Value $1,000,000 or more 32 269 384

Total Owner-occupied housing units (OOHU) 4,702 26,989 65,646

Income 1-mi. 3-mi. 5-mi.Per Capita Income (based on Total Population) $42,410 $27,431 $24,534

Average (Mean) Household Income $96,105 $63,858 $63,591

Median Household Income $65,983 $42,387 $44,359

Aggregate Income $729,794,634 $4,199,155,511 $9,408,649,455

If you have no interest in the Property at this time, please return this Offering Memorandum immediately to:

CONFIDENTIAL MEMORANDUM AND DISCLAIMER

Coldwell Banker Commercial Alliance | CBCA OC DRE# 019297232600 Michelson Drive, Suite 100, Irvine CA 92612

949.954.3700

Coldwell Banker Commercial Alliance (“Agent”) has been engaged as the exclusive agent for the sale of 7205 Freeport Blvd, Sacramento, CA by the owner of the Property (“Seller”). Hook Retail Advisors and Scott G. Hook are affiliated with and considered an investment sales agent, of agent.

The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person with-out the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered Coldwell Banker Commercial Alliance as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal pro-visions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to pur-chase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Coldwell Banker Commercial Alliance.

S M A R T & F I N A L E X T R A , S A C R A M E N T O , C A

IDENTITY STANDARDS 2

ALLIANCE

PROPERTY SIGNSThe example above illustrates the approved format for standard commercial property signs.

STANDARD SIGNThe standard sign consists of a 48 inches wide by 48 inches high (76 x 76 Grid Units) white panel.

TELEPHONE NUMBERTelephone numbers are to be displayed in blue Helvetica bold numerals. The exact size is proportioned as illustrated above. No personal residence phone number is to be referenced on the sign.

REQUIRED DISCLAIMERThe disclaimer line, Independently Owned and Operated, as shown in this Manual, MUST always appear in upper and lower case Helvetica type style on all property signs.

PROPERTY SIGNS

303-238-7777FOR LEASE

Ben GilliamJohn Tretor

www.cbcalliance.com

Independently Owned and Operated

ALLIANCE

48” x 48” PROPERTY SIGN

O: 949.954.3700 | F: 949.954.3701

2600 Michelson Drive, Suite 100, Irvine CA 92612

www.CBCAlliance.com | CBCA OC DRE# 01929723

ALLIANCE

SCOTT G. HOOKExecutive Vice President

CBC Alliance

Lic# 00914392(949) 954-3724

[email protected]

DANIEL TYNERAssociate

CBC Alliance

Lic# 01959818(949) 954-3723

[email protected]

Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Each office is Independently Owned and Operated. The information above are from sources we believe to be reliable. We have not verified its accuracy and make no guarantee about it. You and your tax and legal advisors should conduct your own investigation of the property and transaction.