OFFERING MEMORANDUM 8,000 SF BRAND NEW FREE STANDING FULLY LEASED RETAIL BUILDING FOR SALE PRICE AT $5,547,054 COMMERCIAL

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1 1229 HOWE AVE SACRAMENTO, CA OFFERING MEMORANDUM 8,000 SF BRAND NEW FREE STANDING FULLY LEASED RETAIL BUILDING FOR SALE PRICE AT $5,547,054 MuellerCommercial.com COMMERCIAL

2 TABLE OF CONTENTS 3. THE PROPERTY 4. OPERATIONAL EXPENSES & PROFITS 5. FLOOR PLAN 6. THE TENANTS 8. DEMOGRAPHICS 9. AREA OVERVIEW 10. LOCATION

3 THE PROPERTY This newly constructed property is located on the southwest side of Howe Avenue and Hurley Way, placed in the center of one of Sacramento s strongest retail trade areas. This area includes Arden Fair Mall, Nordstrom, Sears, J C Penney, Macy s, Cost Plus World Market, Guitar Center, Old Navy, Petco, Marshalls, Target, and to many more to name. Not only is this property surrounded by some of the most well established retail stores, but you can also find some of the most popular restaurants as well such as Red Lobster, Black Angus, Cheesecake Factory, Olive Garden, The Elephant Bar just to name a few. In addition to location, it is also in close proximity to Sacramento State University (30,000 plus students) and Cal Expo which holds 80 plus events every year including the California State Fair. Strategically placed between hard corner intersections such as Howe Ave/Arden Way and Howe Ave/Fair Oaks Blvd, this area receives over 40,900 cars per day just down Howe Avenue alone. With easy access to Highway 50, Highway 160 and the Capital City Freeway (Business 80) this area is guaranteed to maintain high quality traffic. More Highlights: Completely re-developed retail and restaurant spaces ranging from 1,444 SF to 3,442 SF Lot size 0.77 acres / 33,541 Sqft Outdoor patio area for subject spaces Close proximity to Arden Fair Mall, Sacramento State University and Cal Expo Highly desirable location Signalized Intersection Great day traffic Great demographics

4 ESTIMATED OPERATIONAL EXPENSES AND PROFITS Parking Easement - SMUD $3, Property Taxes 1.1 of sales price % 21.63% $66, CFD City Maintenance fee 0.79% $2, Insurance 1.51% $4, Garbage 0.79% $2, PG&E Common area 1.18% $3, Fire Alarm 0.79% $2, Landscape maintenance 1.97% $6, Janitorial Patio maintenance 1.57% $4, TOTAL OPERATING EXPENSES : 30.22% $1.00 $95, Recovery of NNN Expenses 31.20% $1.00 $95, NET OPERATING INCOME $305, VALUE UPON COMPLETION VALUE SQFT PROJECT VALUE 6.00% 5.5% Cap Cap Rate Rate $ $ SQFT $ $5,547,054 5,084, % Cap Rate $ SQFT $5,305, % Cap Rate $ SQFT $5,084,800 SELL PRICE $ 5,084,800 SELL PRICE $5,547,054

5 FLOORPLAN TENANT SQFT PARIS BAGUETTE 3,076 FIRE WINGS 3,442 SOURDOUGH CO. 1,444

6 THE TENANTS Tenant Unit/ Square Foot Taken Lease Starts Lease Ends Lease Rate Annual Rent Paris Baguette 3,076 sqft April, 2017 April, 2027 $3.50 $129, Fire Wings & Poki Bowl 3,442 sqft April, 2017 April, 2022 $3.00 $123, Sourdough Company 1,444 sqft April, 2017 April, 2022 $3.00 $51, Total 7,962 sqft Average Rent $3.19/ sqft $305,088.00

7 THE TENANTS Paris Baguette: The Paris Baguette bakery chain was introduced in 1988 by its parent company SPC Group, an international food and food service company base in South Korea. The SPC group has been a retail food leader for the past 65 years. It currently is operating 5,000 stores and 20 different brands globally including Paris Croissant, Paris Baguette, Baskin Robbins, Dunkin Donuts Korea, Shany and Samlip. The brand s management philosophy has a focus on educating employees to offer products of the highest quality with only the freshest ingredients and the best guest service. Because of this philosophy, the company sales increased by an average 20% annually for the past 5 years, which reached 6 billion dollars sale in The SPC group has cultivated foreign markets rigorously since the early 2000s. Currently, there are 37 Paris Baguette locations in the US including 22 locations in California. The company is aiming to open a total of 1,000 stores by Sourdough & Co: Sourdough& Co is renowned for its freshly baked Sourdough Bread, served warm, the deli style sandwiches feature an array of top quality meats, cheeses and produce topped with delectable house spread. Sourdough & Co offers the ultimate in casual dining in the old-time style establishment. In addition to the variety of sandwiches, it offers appetizing fresh salads and gratifying warm soups. Every day it offers New England Clam Chowder and the Soup of the Day. Various sandwich combo selections, as well as a dedicated children s menu, are also provided in aim to make sure every customer has an enjoyable dining experience. The company started its first location in El Dorado Hills, and it has been expanding to nearby cities including Auburn, Lincoln, Roseville, Sacramento and Elk Grove ever since. Fire Wings: Fire Wings is a restaurant that specializes in chicken wings. It offers a diverse range of selection for wing flavors. In addition to typical flavor like BBQ, Buffalo and Sriracha, it also offers special Asian flavors like Korean Kick, Thai Chili, Saigon Street and many more. The first Fire Wings store was opened in 2014, the concept has been met with applause as an alternative to the industry competitors such as Wingstop. Sacramento consumers gave Fire Wings the top prize at Wing Fest 2016 as Fire Wings has been the market leader according to Sacramento s A List. Fire Wings sales and market share have been exponentially increasing over the past year. Fire Wings is expanding five more locations in Sacramento, Elk Grove, Davis and Berkeley markets.

8 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES TOTAL POPULATION 18, , ,099 TOTAL NUMBER OF HOUSEHOLDS 9,064 54, ,646 AVERAGE HOUSEHOLD INCOME $50,458 $68,074 $63,120 MEDIAN AGE

9 AREA OVERVIEW SACRAMENTO, CALIFORNIA SACRAMENTO, CALIFORNIA Sacramento, capital of the U.S. state of Sacramento, California, lies capital at the of confluence the U.S. state of the of California, Sacramento lies River at the and confluence American of River. the Sacramento The district of River Old and Sacramento American harkens River. The back district tot he of Old city s Sacramento Gold Rush era, harkens with wooden back to the sidewalks city s Gold and Rush wagon rides. era, with One wodden of several sidewalks museums and in Old wagon rides. One the of Carlifornia several museums State Railroad in Sacramento, Museum Old Sacramento, depicts the construction Calirfornia SD of the Transcontinental Railroad, one of the country s earliest technological feats. DEMOGRAPHICS 1 MILE 3 MILE 5 MILE TOTAL POPULATION 18, , ,099 TOTAL NUMNER HOUSEHOLDS 9,064 54, ,646 TOTAL NO. PERSONS PER HOUSEHOLD AVERAGE HOUSE VALUE $251,859 $407,141 $352,753 AVERAGE HOUSEHOLD INCOME $50,458 $68,074 $63,120 MEDIAN AGE MEDIAN AGE - MALE MEDIAN AGE - FEMALE TOTAL POPULATION - WHITE 10,602 82, ,091 TOTAL POPULATION - BLACK 2,712 11,543 34,953 TOTAL POPULSTION - HISPANIC 4,409 25,071 84,229 TOTAL POPULATION - ASIAN 1,510 8,128 32,145 TOTAL POPULATION - PACIFIC ISLANDER ,197 TOTAL POPULATION - AMERICAN INDIAN 107 1,431 4,295 TOTAL POPULATION - OTHER 1,918 9,540 33,990

10 LOCATION

11 1229 HOWE AVE SACRAMENTO, CA DANIEL MUELLER Executive Director Howe Avenue Sacramento, CA CalBRE# MuellerCommercial.com 2016 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of the property for their needs. Logos and/or pictures are displayed for visual purpose only and are the property of their respective owners. CalBRE#