LIVE OAK PLAZA

1275 East F StreetOakdale, CA 95361

20 year leased anchored strip center Chris 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

Dave Lucas | dlucas@capitalpacific.com [415] 274-7390CA DRE#: 01389761

John Andreini | jandreini@capitalpacific.com (415) 274-2715CA DRE#: 01440360

NOI . . . . . . . . . . . . . . . . . $453,548

RENTABLE SF . . . . . . . . . 38,490 SF

LAND AREA . . . . . . . . . . 2.80 Acres

PPSF . . . . . . . . . . . . . . . . $152.12

YEAR BUILT . . . . . . . . . . 1973 YEAR REMODELED . . . 2008

OCCUPANCY . . . . . . . . . . 93%

Investment HighlightsPRICE: $5,855,000

CAP: 7.75%

THE STORY Live Oak Shopping Center is a high quality, well maintained anchored strip retail center in Oakdale, California.

Fitness Evolution is an established chain of health clubs with over 40 locations in 7 states. The guarantor is the largest operator in the system with over 100,000 members and 20 stores in Northern California (projected to be 24 stores by the end of 2014).

The center recently had the parking lot stripped and resealed. The roof was replaced completely in 2006 and has two years remaining on a 20 year warranty.

TENANTSMany of the tenants have been at the center for over 10 years. Fitness Evolution has been operating as a gym tenant at the center since 2008. This flagship location for the Fitness Evolution chain of health clubs is “state of the art” and has long been amongst the best performers in the gym chain.

LOCATIONThe shopping center is located on Highway 120/108, the main retail arterial through Oakdale. The property enjoys excellent visibility and signage from the street and benefits from contemporary architectural design.

This offering represents the opportunity for an investor to acquire a seasoned, well maintained shopping center in an excellent Central Valley city, with a long term leased anchor.

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INVESTMENT HIGHLIGHTS: > New 20-year triple net lease with anchor tenant, Fitness Evolution and10% increases every 10 years.

> Majority of shop leases have been renegotiated within the last 24 months.

> One inline adjacent suite available for immediate lease representing upside for an investor, can easily be split.

> Attractive long-term, fixed rate purchase money financing available on the property.

> The shopping center was completely rehabbed in 2008 and is very well maintained.

> Excellent visibility and signage from Highway 108, the main retail corridor through Oakdale.

> The tenant roster is a synergistic mix of tenants that consists of predominantly local and regional businesses with long operating histories in Oakdale and at the subject property.

> Large pylon sign at the entrance to the center visible from Highway 108.

ANCHOR (FITNESS EVOLUTION) HIGHLIGHTS: > Long-term absolute net lease to proven operator.

> Very strong unit level and company level sales (available with bona fide offer & NDA).

> Fitness Evolution as a brand has over 40 stores in 7 states.

> Guarantor is the largest operator in the system with 20 stores in Northern California, projected to be 24 stores by end of 2014.

> Invested over seven figures in equipment, HVAC, paint , executive locker rooms, electrical, and many other items over the past 5 years.

Core Characteristics

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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.

Income & Expense

Actual Fully Leased*

Price: $5,855,000 $5,890,910 PROPOSED LOAN SCENARIO:

Capitalization Rate: 7.75% 8.10% Loan Amount $3,805,750

Price Per Square Foot: $152.12 $153.05 Interest Rate 5.00%

Down Payment 35% $2,049,250 $2,049,250 Amortization 25 Year

Loan Amount 65% $3,805,750 $3,829,092 Term 7 Year

Total Leased (SF): 92.99% 35,790 38,490 Lender Type Bank

Total Vacant (SF): 7.01% 2,700 - Debt Service $266,976

Total Rentable Area (SF): 38,490 38,490 Monthly Debt Service $22,248

INCOME PSF Pre-Tax Cash Flow $186,572

Scheduled Rent $11.88 $457,263 $457,263 Debt Coverage Ratio 1.70

Vacant Spaces at Market Rent $15.42 $0 $41,640 Cash on Cash 9.10%

Estimated Recovery* $2.79 $107,295 $115,470 Principal Paydown (Year 1) $78,471

EFFECTIVE GROSS INCOME $564,558 $614,373 Total Return $265,043

Market Vacancy Reserve (0%actual-5%ProF) ($30,719) Yield 12.93%

ADJUSTED GROSS INCOME $564,558 $583,654

EXPENSES PSF *Lease Up Costs

Property Taxes -$1.67 ($64,405) ($64,405) Tenant Improvements ($10/sf) $27,000

Insurance Expense -$0.15 ($5,873) ($5,873) Leasing Commission (5%-5 year lease) $8,910

Utilities -$0.78 ($29,932) ($29,932)

Landscape -$0.12 ($4,800) ($4,800) Total Lease Up Costs $35,910

Management Fee -$0.16 ($6,000) ($6,000)

TOTAL OPERATING EXPENSES -$2.73 ($111,010) ($111,010)

NET OPERATING INCOME $453,548 $472,644

*Tenants pay a base CAM of $3/sf annual or actual, whichever is greater.

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Trade Name Suite Sq. Ft. Percent of GLA Lease Start Lease Expiration Monthly Base Rent *Monthly Rent/SF *Annual Rent/SF *Annual Rent Comments CAM Payments

Fitness Evolution 1 24,985 64.91% 5/1/2014 4/30/2034 $24,985.00 $1.00 $12.00 $299,820.00 4 5yr options $74,955.00

5/1/2024 4/30/2034 $27,483.50 $1.10 $13.20

Fitness Evolution Corporate Office 5 1,080 2.81% 5/1/2014 4/30/2034 $1,080.00 $1.00 $12.00 $12,960.00 4 5yr options $3,240.00

5/1/2024 4/30/2034 $1,188.00 $1.10 $13.20

Fashion Nails 4A 1,000 2.60% 11/1/2013 8/31/2020 $1,092.73 $1.09 $13.11 $13,112.76 1 5yr option $3,000.009/1/2014 8/31/2015 $1,125.51 $1.13 $13.519/1/2015 8/31/2016 $1,159.28 $1.16 $13.919/1/2016 8/31/2017 $1,194.06 $1.19 $14.339/1/2017 8/31/2018 $1,229.88 $1.23 $14.769/1/2018 8/31/2019 $1,266.77 $1.27 $15.209/1/2019 8/31/2020 $1,304.78 $1.30 $15.66

Oakdale Irrigation District 6 1,500 3.90% 4/1/2014 3/31/2019 $1,950.00 $1.30 $15.60 $23,400.00 No options $4,500.009/1/2014 8/31/2015 $1,979.25 $1.32 $15.839/1/2015 8/31/2016 $2,008.94 $1.34 $16.079/1/2016 8/31/2017 $2,039.07 $1.36 $16.319/1/2017 8/31/2018 $2,069.66 $1.38 $16.56

Café Bravo 7 3,500 9.09% 1/1/2014 12/31/2023 $4,306.28 $1.23 $14.76 $53,742.37 2 5yr options $10,500.001/1/2015 12/31/2016 $4,370.87 $1.25 $14.991/1/2016 12/31/2017 $4,436.44 $1.27 $15.211/1/2017 12/31/2018 $4,502.98 $1.29 $15.441/1/2018 12/31/2019 $4,570.53 $1.31 $15.671/1/2019 12/31/2020 $4,639.09 $1.33 $15.911/1/2020 12/31/2021 -$4,845.69 -$1.38 -$16.611/1/2021 12/31/2022 -$4,774.00 -$1.36 -$16.371/1/2022 12/31/2023 -$4,701.24 -$1.34 -$16.121/1/2023 12/31/2024 -$4,627.38 -$1.32 -$15.87

Oakies 8 1,000 2.60% 1/1/2014 12/31/2024 $1,100.00 $1.10 $13.20 $13,728.00 1 5yr option $3,000.001/1/2015 12/31/2016 $1,116.50 $1.12 $13.401/1/2016 12/31/2017 $1,133.25 $1.13 $13.601/1/2017 12/31/2018 $1,150.25 $1.15 $13.801/1/2018 12/31/2019 $1,167.50 $1.17 $14.011/1/2019 12/31/2020 $1,185.01 $1.19 $14.221/1/2020 12/31/2021 $1,202.79 $1.20 $14.431/1/2021 12/31/2022 $1,220.83 $1.22 $14.651/1/2022 12/31/2023 $1,239.14 $1.24 $14.871/1/2023 12/31/2024 $1,257.73 $1.26 $15.09

Vacant 9A 2,700 7.01% N/A $1.10 $2,970.00 $35,640.00

Circle D Liquors 9B 2,700 7.01% 4/1/2014 3/31/2024 $3,375.00 $1.25 $15.00 $40,500.00 1 5yr option $8,100.004/1/2015 3/31/2016 $3,425.63 $1.27 $15.234/1/2016 3/31/2017 $3,477.01 $1.29 $15.454/1/2017 3/31/2018 $3,529.16 $1.31 $15.694/1/2018 3/31/2019 $3,582.10 $1.33 $15.924/1/2019 3/31/2020 $3,635.83 $1.35 $16.164/1/2020 3/31/2021 $3,690.37 $1.37 $16.404/1/2021 3/31/2022 $3,745.73 $1.39 $16.654/1/2022 3/31/2023 $3,801.91 $1.41 $16.904/1/2023 3/31/2024 $3,858.94 $1.43 $17.15

Vacant Drive Thru Kiosk Kiosk 25 0.06% $6,000.00

Current Totals: 38,490 100.00% $37,889.01 Annual Rent $457,263.13 CAM $107,295.00

Occupied 35,790 92.99%

Vacant 2,700 7.01% Proforma rent $41,640.00

Have been a tenant at the property since 2004. Recently

rengotiated a new lease.

Have been a tenant at the property since 2005. Recently

rengotiated a new lease.

Have been a tenant at the property since 2008. Recently

Rengotiated new lease.

Have been a tenant at the property since 2008.

Monthly Rent

Have been a tenant at the property since 2004. Recently

rengotiated a new lease.

Have been a tenant at the property since 1999. Recently

rengotiated a new lease.

Have been a tenant at the property since 2008.

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.

Rent Roll

LIVE OAK PLAZA | 5

E F Street

120108

VACANT2,700 SF

CIRCLE D LIQUORS

2.700 +/- SF

OAKIES1,000 SF

CAFE BRAVO3,500 +/- SF

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1,50

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VACANTCOFFEE KIOSK

Site Plan

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Close Aerial

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E F Street

E G Street

W G Street

E J Street

W F Street

120

120

120108

108

108

N Yosemite Avenue

S Yo

sem

ite A

venu

e

Johnson Avenue

N Maag Avenue

Cloverland Elementary

Magnolia Elementary

Fair Oaks Elementary Sierra View

Elementary

Oakdale High School

Oakdale Jr. High School

Foster Moore

Christian School

LIVE OAK PLAZA

FITNESS EVOLUTION FASHION NAILS

CAFÉ BRAVO CIRCLE D LIQUORS

Valley Oak High School

East Stanislaus High School

SAN FRANCISCO

20,200 DAILY

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Tenants

Fitness Evolution is a chain of gymnasiums that prides itself on offering low-cost and contract-free memberships, with state-of-the-art facilities. It offers state of the art facilities at an affordable price. The company is run by a team of lifelong fitness business operators that have constructed, owned, developed, managed, and operated facilities nationwide.

Currently, Fitness Evolution has locations in Arizona, California, Maryland, Nevada, Minnesota, Virginia, and Washington. Fitness Evolution aims for their gyms to feel like a “home away from home”, so members always feel comfortable and are encouraged to visit regularly. All Fitness Evolution facilities offer exciting colors, industry leading entertainment, and luxurious interiors – all offered at a value price point that has the effect of what they refer to as a market “reset”.

Fitness Evolution

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Oakies

Tenants

Oakies is a unique and thriving board and clothing boutique. Focused on bridging the gap between function and fashion, Oakies was established in 1996 and remains the perfect one-stop shop for your boarding needs and every day wear. From skateboards, to wakeboards, to snowboards, Oakies offers a variety of sporting equipment, both for rental and for purchase. On the clothing front, Oakies also carries a number of name brands such as Fox, Hurley, RVCA, Element, Dakine, and Roxy (to name a few) allowing boarders of every age to compete, lounge, or go out on the town in style.

Cafe Bravo

Café Bravo is a Latin infused kitchen, offering a variety of fresh and unique dishes. Known for a creative combination of spices and sauces, Café Bravo boasts rave reviews from customers for its mouth-watering menu, welcoming atmosphere, and affordable pricing. Café Bravo’s exceptional service and outstanding, diverse cuisine make for ideal dining location.

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Circle D Liquors

Tenants

Circle D Liquors offers beer, wine, and spirits, and is known for its wide selection, clean store, and friendly, helpful staff.

Fashion Nails is the place for all of your spa needs, offering both basic and deluxe manicures and pedicures, facials, haircuts, waxing, and much more. Fashion Nails carries a variety of products of the best brands, and is well-reviewed for its friendly service, relaxing atmosphere, and professional services.

Fashion Nails

The Oakdale Irrigation District was established in 1909 under the Wright Act. Today, it still strives to provide reliable irrigation and domestic water service, both efficiently and at the lowest cost possible. Oakdale Irrigation District seeks to serve the public interest as a mere extension of the community that it was established for. As a community known for its agricultural production, and as a community ever growing, the Oakdale Irrigation District is absolutely vital to the public it serves.

The Oakdale Irrigation Water District

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Photos

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Photos

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LIVE OAK PLAZA

Regional Map

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The City of Oakdale is located in Stanislaus County, California, approximately 15 miles northeast of Modesto at the base of the foothills of the Sierra Nevada Mountains. With a current city population of approximately 21,200 Oakdale takes pride in its small-town atmosphere and is a balanced community of residential and commercial properties with a full range of services, shopping, and recreation. Oakdale is the gateway to Yosemite National Park and the Sierra Nevada foothills from Highway 120. The Stanislaus River winds through town offering opportunities for water sports and fishing. Nearby lakes are popular destinations for boating and water skiing, while camping, hiking, and hunting are all available within an hour’s drive in the nearby Sierra’s. The Oakdale economy centers on agriculture, food manufacturing, and tourism. Previously it was home to a satellite plant of Hershey’s Chocolate, which in 2008 was purchased by Sconza Candy Company. Other large manufacturing operations nearby include a ConAgra Foods Hunt’s plant, which is one of the largest tomato processing plants in the world, as well as a Del Monte Foods plant. Cattle ranching is common in the surrounding areas, adding to the diversity and character of the local economy.

Demographics Top Employers in Modesto, CA

Oakdale, CA

Population 1 Mile 3 Miles 5 Miles

2010 Population 10,600 24,876 29,0342013 Population 10,754 25,223 29,4122018 Population (Projection) 11,092 25,984 30,264

2013 Income

2013 Average Household Income $60,983 $77,890 $79,2602013 Median Household Income $49,656 $58,875 $59,330

Employer # of Employees (Approx.)

E & J Gallo Winery 3,181

Memorial Medical Center 3,023

Modesto City Schools 3,010

Seneca Foods 2,100

Doctors Medical Center 1,962Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

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Copyright © 2013 [Capital Pacific Real Estate Brokerage Company]

Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

JOHN ANDREINI jandreini@capitalpacific.com | (415) 274-2715 CA DRE#: 01440360

CHRIS PETERS cpeters@capitalpacific.com | (415) 274-2703 CA DRE#: 01339983

ZEB RIPPLE zripple@capitalpacific.com | (415) 274-2702CA DRE#: 01242540

A unique HUMANRESULTS-DRIVEN client experience

DAVE LUCAS dlucas@capitalpacific.com | (415) 274-7390 CA DRE#: 01389761

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CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA DRE#: 01002010