OFFERING MEMORANDUM

FEDEX FREIGHT2451 Portico Blvd, Calexico, CA 92231

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E X E C U T I V E S U M M A R Y

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J O H N N Y D U N N , M B AIndustrial Specialistjohnny.dunn@matthews.comDIR 214.692.2114MOB 817.372.1742LIC # 677506 (TX)

C H A D K U R ZSVP & National Directorchad.kurz@matthews.comDIR 214.692.2927MOB 562.480.2937LIC # 01911198 (CA)

k y l e r b e a nIndustrial Specialistkyler.bean@matthews.comDIR 214.692.2192MOB 325.227.0893LIC # 646910 (TX)

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INVESTMENT HIGHLIGHTS

• Strong Hedge Against Inflation - 3% Annual Rental Increases

• Strong Commitment to Location - FedEx has been at the location since 1992 and the building was renovated and expanded in 2008

• Very Functional Building - 10,080 SF with 21 Dock High Doors and 1 Dock Ramp on 3.31 acres of truck parking

• Minimal Landlord Responsibilities - Roof and Structure

• Corporate Guarantee - FedEx Corp. (Parent) Standard which is rated BBB Credit

• Development Opportunity - Additional land next door for future development

• Strategic Location - Calexico is situated adjacent to the international border with Mexico offering the site important transportation needs

between the U.S. and Mexico. This FedEx Freight site is strategically located 4.4 miles from the Mexico Border and the city of Mexicali

EXECUTIVESUMMARY

Mexicali is the capital of Baja California and has a population of over 1 million people. Mexicali has become the leading economic

center of Mexico’s manufacturing and assembly plants, also known as the Maquiladora program. Over 3,000 Maquiladoras exist

along the 2,000 mile-long United States–Mexico border, providing employment for approximately one million workers, and importing

more than $51 billion in supplies into Mexico. Mexicali serves as a primary source of manufacturing and assembly for several major

industries such as Aerospace, Automotive, Electronics, Food, Medical, Mechanical, Plastic, and Renewable Energy. Most products

manufactured and assembled in Mexicali are exported through the International Border and distributed through Calexico, California.

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FINANCIALOVERVIEW

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Annualized Operating DataMonthy Rent Annual Rent Cap rate

7/11/2017 - 7/10/2018 $32,529.30 $390,351.60 6.25%

7/11/2018 - 7/10/2019 $33,505.18 $402,062.16 6.44%

7/11/2019 - 7/10/2020 $34,510.33 $414,123.96 6.63%

7/11/2020 - 7/10/2021 $35,545.64 $426,547.68 6.83%

7/11/2021 - 7/10/2022 $36,612.01 $439,344.12 7.03%

OPTION 1 - 5 YEAR $37,710.37 $452,524.45 7.25%

Tenant Summary

Tenant Trade Name FedEx Freight West Inc.

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsibility

Original Lease Term 5 Years

Rent Commencement Date 7/11/2017

Lease Expiration Date 7/10/2022

Term Remaining on Lease ± 5 Years

Options One, 5-Year Option

Increases 3% Annually

EXECUTIVE SUMMARY

Property Name FedEx Freight

Property Street2451 Portico Blvd

Calexico, CA 92231

Gross Leaseable Area ± 10,080 SF

Lot Size ± 3.31 Acres (144,183 SF)

LIST PRICE

$6,245,000

CAP RATE

6.25%

TERM REMAINING

± 5 Years

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PROPERTYOVERVIEW

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THE OFFERING

GLA± 10,080 SF CROSS DOCK

LOT SIZE ± 3.31 Acres

2451 Portico Blvd Calexico, CA 92231-9648

ADDRESS SITE DESCRIPTION CONSTRUCTION

FOUNDATIONConcrete

YEAR BUILT / EXPANDED1992 / 2008

ROOF Metal Panel

EXTERIOR Metal Panel

PARKING SURFACE Concrete

FRAMINGSteel

21 DOCKS 1 Dock Ramp

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TENANT OVERVIEW

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FEDEX CORPORATION

FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenues of $50 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.FedEx Ground is a leading North American provider of ground small-package delivery services, providing service to the U.S. and Canada.

FEDEX FREIGHT

The company’s FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information and offers transportation management and temperature-controlled transportation services. Its TNT Express segment provides international express transportation, small-package ground delivery, freight transportation services and business-to-consumer services. Its FedEx Freight segment offers less-than-truckload freight and freight-shipping services. As of May 31, 2017, this segment operated approximately 66,000 vehicles and trailers from a network of approximately 370 service centers. The company’s FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels view account-specific rate quotes, and access drop-off location information; copying and digital printing, professional finishing, document creation, direct mail, signs and graphics, computer rentals, and ground shipping and time-definite shipping services; and packing services, supplies, and boxes.

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R E V E N U E$ 6 . 4 B I L L I O N

W E B S I T EW W W . F E D E X . C O M

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TENANT MAP

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AREAOVERVIEW

AT 6 . 5 M I L L I O N RESIDENTS,CALIBAJA’S POPULATION IS THE LARGEST CONCENTRATION OF POPULATION ALONG THE U.S.-MEXICO BORDER.

CALEXICO, CACalexico is an ethnically and culturally rich and diverse city in Imperial County, California located along the international border with Mexicali, Baja California, Mexico. Positioned in the Cali Baja Bi-National Mega-Region, a globally unique bi-national area that encompasses the entirety of California’s U.S.-Mexico border region, Calexico hasa bright future and unlimited potential. Itsdistinguished status as an internationalgateway city allows it to capitalize on thetrade, commerce, culture, and energy of theemerging Latin American markets.

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IDEAL LOCATIONCalexico’s strategic location is seen by many as the prime link between the interior of Mexico and the major markets along the west coast of the U.S. and Canada. The city provides the area easy overnight trucking access to all transportation hubs plus the ports of Long Beach and Ensenada, Baja California, Mexico. Calexico offers the most affordable prime commercial/industrial sites, and energy resources in the state; There are numerous industrial park sites ready for occupancy or construction.

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 4,548 43,075 50,127

2017 Estimate 4,518 42,610 49,501

2010 Census 4,323 40,819 47,782

Growth 2017-2022 0.67% 1.09% 1.26%

HOUSEHOLD 1 Mile 3 Mile 5 Mile

2022 Projection 1,280 11,838 13,645

2017 Estimate 1,244 11,471 13,200

2010 Census 1,166 10,703 12,408

Growth 2017-2022 2.91% 3.20% 3.37%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$50,517 $51,542 $53,744

IMPERIAL VALLEYWith an extensive amount of renewable resources, a wide-range of cultural and outdoor recreational activities, Imperial County has much to offer residents and tourists alike. The county has a rich agricultural heritage as thousands of acres of prime farmland have transformed this desert region into one of the most productive farming regions in California: Annual crop production exceeds $1 billion. Responsible for producing half of the United States’ winter vegetables, Imperial County’s largest industry is agriculture, which accounts for 48% of all employment.

Tourism is the secondary industry of the Imperial Valley. Visitors are drawn to the area by the Salton Sea and its neighboring mud pots and volcanoes, the Algodones Dunes and the Imperial Sand Dunes Recreation Area. A recent growing interest in the area as a filming location has spurred growth in servicing the film industry. Attributed to the county’s desert environment and proximity to Los Angeles, several movies have been filmed in the sand dunes outside the agricultural portion of the county: Return of the Jedi, Stargate, The Scorpion King, Into the Wild and some portions of Jarhead.

LARGEST COUNTY IN CALIFORNA

COUNTY RESIDENTS

9TH

± 180,000

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of FedEx Freight located at 2451 Portico Blvd, Calexico, CA 92231 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

OFFERING MEMORANDUM

FEDEX FREIGHT2451 Portico Blvd, Calexico, CA 92231

™

I N D U S T R I A L

e x c l u s i v e ly l i s t e d b y

J O H N N Y D U N N , M B AIndustrial Specialistjohnny.dunn@matthews.comDIR 214.692.2114MOB 817.372.1742LIC # 677506 (TX)

C H A D K U R ZSVP & National Directorchad.kurz@matthews.comDIR 214.692.2927MOB 562.480.2937LIC # 01911198 (CA)

k y l e r b e a nIndustrial Specialistkyler.bean@matthews.comDIR 214.692.2192MOB 325.227.0893LIC # 646910 (TX)