Offering MemorandumThe La Crosse Business Park, Colton | 112,259 Rentable SF2273 – 2283 La Crosse Avenue, Colton, CA 92324

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors,

omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our

principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting

point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books,

records, files and documents that constitute reliable sources of the information described herein. Logos are for identification purposes only and may

be trademarks of their respective companies. NAI Capital, Inc. Cal DRE Lic.#01990696.

TABLE OF CONTENTS

1 Executive Summary

2 Investment Highl ights

3 Rent Roll | Scheduled Income | Proforma Income

4 Reconciled Expenses | Proforma Expenses

5 Proforma Cash Flow Analysis | Levered & Unlevered

6 IRR Analysis

Exclusive Advisors:

Nicholas Chang, CCIM, SIOR | Senior Vice President

nchang@ naicapital.com

909.243.7614Cal DRE Lic. # 01344844

Richard Lee, SIOR | Senior Vice President

rlee@naicapital.com

909.243.7601

Cal DRE Lic. # 01757870

Justin Kuehn | Vice President

jkuehn@ naicapital.com

909.243.7627Cal DRE Lic. # 01966182

Sione Fua | Senior Associate

sfua@ naicapital.com

909.243.7619Cal DRE Lic. # 02006432

NAI Capital - Ontario

800 N. Haven Avenue Suite 400

Ontario, CA 91764

909.243.7600

THIS IS A CONFIDENTAL OFFERING MEMORANDUM La Crosse Business ParkFreeway Frontage Multi Tenant Commercial Business Park with various uses allowed

Industrial | Flex | Retail | Automotive

C O L T O N, C A 92324

La Crosse Business ParkC O L T O N, C A 92324

NAI Capital | 3

EXECUTIVE SUMMARY

NAI Capital | 4

Property Details

A multi tenant Industrial / Flex / Retail Business Park w/ various uses allowed

Building Size: 6 Buildings totaling 112,259 Rentable SF

Tenancy Mix: 43 Units Occupied by 27 Tenants

Land Size: Approximately 7.5 Acres

Loading: 12’ to 14’ large overhead roll up doors

Warehouse Clear Heights: 14’ to 16’

Tenancy Type: Multi Tenant Industrial Incubator Park

Year Built: 1989, Fully Sprinklered Units

SB County APN’s: 1167-13-105 | 106 | 107 | 108 |109

Construction Type: Concrete Tilt up Construction

Submarket: Inland Empire East / San Bernardino

La Crosse Business ParkC O L T O N, C A 92324

THE INVESTMENT: LA CROSSE BUSINESS PARKNAI Capital, Inc. is pleased to present to the InvestmentCommunity this unique investment Opportunity. The La CrosseBusiness Park is a 6 Building industrial / Flex / Retail multi tenantpark consisting of 27 tenants occupying 43 marketablecommercial incubator units totaling 112,259 rentable squarefeet. The property is fully occupied and has been owned andoperated by the same ownership for nearly 20 years. The rentsare under-market, yet 23 of the 27 tenants are month-to-month,thereby creating an opportunity for the interested investor toquickly create value by boosting rents and refurbishing the park.

FLEXIBLE EXIT STRATEGY | DOUBLE DIGIT RETURNSFurther opportunities to create value are offered to the investoras the La Crosse Business Park is composed of 5 contiguousparcels of land, thereby allowing the investor to break up thepark to potential separate owner-users and increase value andenjoy potentially double digit IRR returns.

FOR MORE INFORMATIONPlease review the enclosed Offering Memorandum and contactyour exclusive listing agents to schedule a private tour today.

The Upside Analysis provided in this Offering Memorandum iscompletely hypothetical based on current market conditions andis in no way implied, warranted, or guaranteed by owner, broker,agents, or its representatives. Future potential incomeprojections and Proforma are provided for illustration purposesonly.

INVESTMENT

HIGHLIGHTS

NAI Capital | 5

La Crosse Business ParkC O L T O N, C A 92324

Investment Highlights

Current Occupancy: 27 Tenants | 43 Units | Fully occupied as of

September 1, 2019

Current Scheduled Gross Rent: $684,194 (Annual) | $0.51 PSF / mo

Current Operating Expenses: $233,752 (Annual) | $0.17 PSF / mo

Proforma Upside Analysis

Proforma Gross Rent: $1.128M (Annual) | $0.84 PSF / mo

Proforma Operating Expenses: $367,518 (Annual) | $0.27 PSF / mo

Proforma NOI: $233,752 (Annual) | $0.17 PSF / mo

Now Offered For Sale: $14,000,000 | $124.71 PSF

Site Plan

La Crosse Business ParkC O L T O N, C A 92324

FINANCIAL ANALYSISUpdated Ren t Ro l l

SCHEDULED RENT (as of September 1, 2019)PROFORMA UPSIDE RENT

Increase Revenue over 12 months

Building # Unit #: Rentable Sq. Feet Tenant Base Rent / Mo Gross Base Rent / PSF Gross Base Rent / Mo Gross Base Rent / PSF Gross

Building # 1-2 101 3,220 Auto Diagnostic Services $2,244.00 $0.70 $3,703.00 $1.1549,681 RSF 102 1,880 COMP $800.00 $0.43 $2,162.00 $1.15

103 1,880 Quality Plumbing $1,348.20 $0.72 $2,162.00 $1.15

104-106 6,409Morrison - Expressions Home Gallery

Leased until 2023$5,131.07 $0.80 $5,131.07 $0.80

107-108 3,760 Coronado Equipment Sales $2,500.00 $0.66 $4,324.00 $1.15109-110 3,760 Polished Image $3,330.35 $0.89 $4,324.00 $1.15

111 1,880 Banner Store $2,179.21 $1.16 $2,180.80 $1.16112/113 3,760 Coronado Equipment Sales $2,625.00 $0.70 $4,324.00 $1.15

201/202 3,300 Polished Image $600.00 $0.18 $3,135.00 $0.95203 1,550 Mike Grant Equipment $500.00 $0.32 $1,550.00 $1.00204 1,550 Karn Air $500.00 $0.32 $1,550.00 $1.00205 1,500 Polished Image $677.65 $0.45 $1,500.00 $1.00

206/207 3,016 Ernie’s Auto Interior $989.81 $0.33 $2,865.20 $0.95208-210 3,016 Coronado Equipment Sales $3,425.00 $1.14 $2,865.20 $0.95

211 1,550 Ports Management Services $1,000.00 $0.65 $1,550.00 $1.00212 1,550 Chase Tool & Die $500.00 $0.32 $1,550.00 $1.00

213/214 3,100 Rancho Mold $1,800.00 $0.58 $2,945.00 $0.95215 3,000 Leasing Office $0.00 $0.00 $3,000.00 $1.00

Building #3 302 5,550 Tim’s Mobile Service $3,900.00 $0.70 $4,717.50 $0.8510,665 RSF 301 5,115 All Temperature Air $2,446.25 $0.48 $4,347.75 $0.85

Building #4 401 10,500 Karn Air $3,275.00 $0.31 $3,275.00 $0.3110,500 RSF Leased Until 2023

Building #5 501/502 6,750 Image Signs $2,315.00 $0.34 $5,737.50 $0.8527,876 RSF 503/504 6,036 Carpet Pad Sales $2,972.70 $0.49 $5,130.60 $0.85

505 3,018 Advantage Graphics $1,000.00 $0.33 $2,565.30 $0.85506-509 12,072 Precision Motion $5,450.00 $0.45 $9,054.00 $0.75

Building #6 601 6,037 ACME Trailers $2,285.00 $0.38 $5,131.45 $0.85

13,537 RSF 602 7,500Kaman Industries

Leased Until 2023$3,221.89 $0.43 $3,221.89 $0.43

TOTAL 112,259 Monthly Gross Rent | PSF $ 57,016.13 $0.51 $94,002.26 $0.84 Annual Gross Rent | PSF $ 684,193.56 $6.09 $1,128,027.12 $10.05

La Crosse Business ParkC O L T O N, C A 92324

FINANCIAL ANALYSISReconc i led P ro fo rma Expenses

NNN Expenses CURRENT EXPENSESPROFORMA EXPENSES

Adjusted For ResaleNotes

Property Taxes: $48,569 $150,000 Increase in property taxes on ResaleProperty Insurance: $15,811 $15,811 Management Fee: $27,500 $50,000 Adjusted to market levelsOperating Expenses:

Cleaning & Maintenance $165 $10,000 Adjusted to market levelsFire Life Safety $5,359 $5,359 Gardening / Landscaping $24,087 $24,087 HVAC Maintenance $21,170 $21,170 Plumbing $182 $182 Repairs $4,946 $4,946 Rubbish Removal $24,471 $24,471 Security $6,065 $6,065 Telephone / Internet $19,534 $19,534 Utilities $25,893 $25,893 Adjusted to market levelsRoof Maintenance $10,000 Added new roof maintenance

Total Operating Expenses: $141,872 $151,707

Total: $233,752 $367,518 Monthly PSF $0.174 $0.273

Operating Expenses by Building - Adjusted on Resale

49,681 SF 10,665 SF 10,500 SF 27,876 SF 13,537 SF

Building 1 - 2 Building 3 Building 4 Building 5 Building 6

Property Taxes: $66,384 $14,251 $14,030 $37,248 $18,088

Insurance: $6,997 $1,502 $1,479 $3,926 $1,907

Management Fee: $22,128 $4,750 $4,677 $12,416 $6,029

Operating Expenses $67,139 $14,413 $14,190 $37,672 $18,294

Total NNN Expenses: $162,648 $34,916 $34,375 $91,262 $44,318

Monthly PSF: $0.273 $0.273 $0.273 $0.273 $0.273

La Crosse Business ParkC O L T O N, C A 92324

FINANCIAL ANALYSISBoost Yie ld W i th Deb t

PROFORMA Schedule Of Prospective Cash FlowIn Inflated Dollars for the Fiscal Year Beginning 1/1/2020

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Years Ending Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Gross Revenue

Potential Rental Revenue $684,194 $1,128,027 $1,157,682 $1,188,227 $1,327,884 $1,393,954 $1,435,772 $1,478,847 $1,523,209 $1,568,906

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Scheduled Base Rental Revenue 684,194 1,128,027 1,157,682 1,188,227 1,327,884 1,393,954 1,435,772 1,478,847 1,523,209 1,568,906

Expense Reimbursement Revenue 7,350 14,850 22,495 30,295 38,251 46,365 54,643 63,086 71,702

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Total Gross Revenue 684,194 1,135,377 1,172,532 1,210,722 1,358,179 1,432,205 1,482,137 1,533,490 1,586,295 1,640,608

General Vacancy (34,210) (56,768) (58,627) (60,535) (67,909) (71,611) (74,107) (76,675) (79,314) (82,031)

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Effective Gross Revenue 649,984 1,078,609 1,113,905 1,150,187 1,290,270 1,360,594 1,408,030 1,456,815 1,506,981 1,558,577

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Total Operating Expenses 367,520 374,873 382,370 390,015 397,816 405,771 413,886 422,163 430,606 439,220

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Net Operating Income 282,464 703,736 731,535 760,172 892,454 954,823 994,144 1,034,652 1,076,375 1,119,357

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Debt Service

Principal Payments 249,931 260,114 270,711 281,741 293,219 305,165 317,598 330,538 344,004 358,020

Interest Payments 295,451 285,268 274,671 263,642 252,163 240,217 227,784 214,845 201,378 187,363

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Total Debt Service 545,382 545,382 545,382 545,383 545,382 545,382 545,382 545,383 545,382 545,383

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Cash Flow After Debt Service ($262,918) $158,354 $186,153 $214,789 $347,072 $409,441 $448,762 $489,269 $530,993 $573,974

But Before Taxes =========== =========== =========== =========== =========== =========== =========== =========== =========== ===========

Yield on Cost (UnLevered) 2.02% 5.03% 5.23% 5.43% 6.37% 6.82% 7.10% 7.39% 7.69% 8.00%

Cash on Cash Yield (Levered) 2.44% 2.86% 3.30% 5.34% 6.30% 6.90% 7.53% 8.17% 8.83%

PROFORMA Prospective Property ResaleYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Years Ending Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Resale Amount

Gross Proceeds from Sale $5,135,710 $12,795,200 $13,300,636 $13,821,308 $16,226,437 $17,360,418 $18,075,345 $18,811,855 $19,570,454 $20,351,944

Commissions & Adjustments (128,393) (319,880) (332,516) (345,533) (405,661) (434,011) (451,884) (470,296) (489,261) (508,799)

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Net Proceeds From Sale 5,007,317 12,475,320 12,968,120 13,475,775 15,820,776 16,926,407 17,623,461 18,341,559 19,081,193 19,843,145

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Outstanding Debt Retirement

Total Principal Balances (7,250,068) (6,989,954) (6,719,243) (6,437,503) (6,144,284) (5,839,118) (5,521,520) (5,190,983) (4,846,978) (4,488,959)

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Net Resale Proceeds After Debt ($2,242,751) $5,485,366 $6,248,877 $7,038,272 $9,676,492 $11,087,289 $12,101,941 $13,150,576 $14,234,215 $15,354,186

=========== =========== =========== =========== =========== =========== =========== =========== =========== ===========

Unleveraged Consolidated IRR 1.66% 3.49% 6.95% 7.83% 8.09% 8.29% 8.43% 8.54%

Leveraged Consolidated IRR 3.03% 9.67% 11.06% 11.34% 11.50% 11.57% 11.60%

La Crosse Business ParkC O L T O N, C A 92324

PROFORMA FINANCIAL ANALYSISIRR Ana lys is | Base Case Vs Case 2

|Equity is Based on Property Value, Leverage and Operating Requirements

BASE CASEYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Years Ending Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Sources Of CapitalNet Operating Gains $282,464 $703,736 $731,535 $760,172 $892,454 $954,823 $994,144 $1,034,652 $1,076,375 $1,119,357 Initial Equity Contribution (14,000,000) Net Proceeds from Sale 19,843,145

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________Total Sources Of Capital ($13,717,536) $703,736 $731,535 $760,172 $892,454 $954,823 $994,144 $1,034,652 $1,076,375 $20,962,502

=========== =========== =========== =========== =========== =========== =========== =========== =========== ===========

Unleveraged Cash On Cash Return

Cash to Purchase Price 2.02% 5.03% 5.23% 5.43% 6.37% 6.82% 7.10% 7.39% 7.69% 8.00%Unlevered Annual IRR 8.54%Levered Annual IRR 11.60%

Total Unlevered Positive Cash Yield Over Holding Period$14,129,939

CASE 2 - Sell Building 3 EOY 1 | Sell Building 4 & 6 EOY 4Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

For the Years Ending Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Sources Of CapitalNet Operating Gains $282,464 $635,343 $660,078 $685,557 $655,263 $707,216 $735,812 $765,264 $795,604 $826,858 Initial Equity Contribution (14,000,000) Net Proceeds from Sale 1,469,104 3,476,036 14,657,936

(Sell Bldg. 3) (Sell 4 & 6)___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

Total Sources Of Capital ($12,248,432) $635,343 $660,078 $4,161,593 $655,263 $707,216 $735,812 $765,264 $795,604 $15,484,794 =========== =========== =========== =========== =========== =========== =========== =========== =========== ===========

Cash to Remaining Equity 2.25% 5.07% 5.27% 7.57% 7.24% 7.81% 8.13% 8.45% 8.79% 9.13%Unleveraged Annual IRR 9.16%

Total Unlevered Positive Cash Yield Over Holding Period$12,352,535

2273-2283 La Crosse AvenueC O L T O N, C A

Exclusive Advisors:

Nicholas Chang, CCIM, SIOR | Senior Vice President

nchang@ naicapital.com

909.243.7614Cal DRE Lic. # 01344844

Richard Lee, SIOR | Senior Vice President

rlee@naicapital.com

909.243.7601

Cal DRE Lic. # 01757870

Justin Kuehn | Vice President

jkuehn@ naicapital.com

909.243.7627Cal DRE Lic. # 01966182

Sione Fua | Senior Associate

sfua@ naicapital.com

909.243.7619Cal DRE Lic. # 02006432

NAI Capital - Ontario

800 N. Haven Avenue Suite 400

Ontario, CA 91764

909.243.7600

Build on the Power of Our Network ™

No warranty, express or implied, is made as to the accuracy of the

information contained herein. This information is submitted subject to

errors, omissions, change of price, rental or other conditions, withdrawal

without notice, and is subject to any special listing conditions imposed by

our principals. Cooperating brokers, buyers, tenants and other parties

who receive this document should not rely on it, but should use it as a

starting point of analysis, and should independently confirm the accuracy

of the information contained herein through a due diligence review of the

books, records, files and documents that constitute reliable sources of

the information described herein. Logos are for identification purposes

only and may be trademarks of their respective companies. NAI Capital,

Inc. Cal DRE Lic. #01990696.