OM_Westbridge

WESTBRIDGE PLAZA

2200-2240 Lake Washington Boulevard, West Sacramento, CA 95691 Offering Memorandum

CONFIDENTIALITY & DISCLAIMER STATEMENT The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the purchase of Westbridge Plaza located at 2240 Lake Washington Boulevard, West Sacramento, CA 95691 and is not to be used for any other purpose or made available to any other person without the express written consent of Gallelli Real Estate Services or the Owner. The material is based in part upon information supplied by the Owner’s consultants, architects, advisors, and in part upon information obtained by Gallelli Real Estate from sources it deems to be reliable. Summaries contained in the Offering Memorandum 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 provisions contained therein. In accordance with our standard practice, this Offering Memorandum has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject project. Gallelli Real Estate strongly recommends that each potential investor review the information contained in this brochure with its accountants, attorneys and tax advisors.

Any projections contained herein represent best estimates based on assumptions considered reasonable under the circumstances. No

representations or warranties, expressed or implied, are made that actual results will conform to such projections. This document is provided subject to errors, omissions, prior sale or lease, change of price or terms, other changes in the information and is subject to modification or withdrawal without notice.

No Warranty Or Representation Expressed Or Implied Is Made By Gallelli Real Estate Or Any Of Their Parent, Affiliated Or Subsidiary Entities As To The Accuracy Or Completeness Of The Information Contained Herein. Prospective Investors Should Make Their Own Investigations And Conclusions Without Reliance Upon The Material Contained Herein.

Adam Rainey | Associate CA DRE # 02113888 | 916 784 2700 | ARainey@Gallellire.com Gary Gallelli | Principal CA DRE # 01099383 | 916 784 2700 | Gary@Gallellire.com Kristopher Krise | Capital Markets Advisor CA DRE # 01910354 | 916 784 2700 | KKrise@Gallellire.com Gallelli Real Estate 3005 Douglas Blvd, Ste 200, Roseville, CA 95661 916 784 2700 | GallelliRE.com

Table of Contents Investment Summary 5 Investment Highlights 6 Trade Area 6 Property Overview 8 Site Plan & Parcel Map

10

West Sacramento Overview

12

Sacramento Region Overview

14

Tenant Profiles 18 Lease Summary 20 Proforma Assumption Table

24

Proforma 25

INVESTMENT SUMMARY | GALLELLI REAL ESTATE

4

Investment Summary

The Offering As the exclusive agent, Gallelli Real Estate is pleased to present this Offering Memorandum for the sale of the fee simple interest in Westbridge Plaza retail shopping center, a five (5) building retail property totaling 30,005 square feet, located at 2200-2240 Lake Washington Boulevard, West Sacramento, California 95691 (the “Property”).

Price Cap Rate Actual

6.03%

Cap Rate Pro Forma

6.13%

NOI - Actual GLA

This asset represents the opportunity to acquire five separately parceled pad buildings in a Lowe’s shadow-anchored shopping center. The combination of tenancy, location, and demographics offers an investor the ability to acquire a proven investment which is well-positioned to take advantage of Sacramento’s continuing growth.

$12,000,000

Year Built Occupancy Anchor Number of Tenants Vacant Suites

$723,875 ±30,005 2008 95.00% Lowe’s – Not a Part (NAP) 16 1

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INVESTMENT SUMMARY & TRADE AREA | GALLELLI REAL ESTATE

Investment Highlights Shadow-Anchored by One of the Nation’s Largest Home Improvement Stores – Lowe’s Home Improvement ranks as the second largest home improvement name in the world, exceeded only by Home Depot. In 2020, Lowe’s sales totaled almost $90 billion dollars landing a spot in the top 10 retailers in the nation.

Diversified Tenant Mix – The center has a very diversified tenant mix that is comprised almost exclusively of internet resistant daily needs and serviceoriented retailers. Thirty-nine percent of the occupied building area is comprised of national and regional branded tenants.

Tremendous location – One of only two major home improvement retailers in West Sacramento. Aside from the one Home Depot location, roughly 3 miles north across Interstate-80, there are no other Home Depot or Lowe’s locations within a 5-mile radius of the Property.

Exclusive Corner Location – The Property is located at the northwest quadrant of the intersection of Jefferson Boulevard and Lake Washington Boulevard which has impressive traffic counts of nearly ±36,000 cars per day.

• Existing residential homes back up directly behind the Property.

• Western quadrant has existing single-family and multi-family homes as well as protected land by Yolo County.

• Eastern quadrant designated for a multi-family development project consisting of 322 units and a community/leasing building in the middle.

• Southern quadrant has an existing Target & Nugget grocery-anchored retail center.

Trade Area Highlights

Income Growth Through Lease-up and Increasing Rents - The Property currently has ±1,500 square feet available for lease along with 3 tenants whose leases expire in 2022; the next owner has the opportunity to capitalize on this opportunity to lease up the remaining vacancy and pull rents up to market value to increase the center’s cash flow.

The trade area surrounding Westbridge Plaza is a seasoned location with excellent demographics that also provide for future growth.

Multi Parcel Exit Strategy – Westbridge Plaza is comprised of five separate building parcels. An investor has the ability to sell the parcels individually at a cap rate premium which can increase their near term returns while lowering its basis on the remaining portion of the shopping center.

Significant Existing Residential Homes – There are nearly 97,000 households within a five-mile radius of the Property, far beyond the number of households typically required to support the two home improvement stores within this area.

Affluent Demographics

Continued Residential Growth – According to Census data, Sacramento is one of the top 10 fastest growing cities in California.

RADIUS FROM SUBJECT

1-MILE

3-MILES

5-MILES

11,137

94,397

249,149

$125,356

$96,283

$89,630

Total Population Average Household Income

Demographics 2020; Pitney Bowes 6

• The City of Sacramento’s population has grown over 12.50% since 2010, registering just under 525,000 for 2020.

Dominant Market Position – The two highest-grossing home improvement stores, including the Property, are already represented within the West Sacramento market, reducing the risk of new competition cannibalizing existing store’s sales.

Major Retailers Present - Many national retailers are represented in the West Sacramento market including Walmart, Target, Home Depot, IKEA, Petco, Ross Dress for Less, Nugget Market, Raley’s, among others.

Multifamily Development to the East – Jefferson Village Apartments, a 322unit multifamily development project located adjacent to the Property which is in the final stages of approval and expected to break ground approximately the middle of this year.

Retail Center to the South – Town Center Plaza, a popular Target & Nugget anchored center lies diagonally to the Property.

• Sitting on roughly 46.40 acres with approximately 263,474 square feet of retail space • National Tenants like Target, Nugget, Dollar Tree, O’Reilly Auto Parts, Wells Fargo, Bank of America, Round Table, Subway, Supercuts, Verizon, and Jamba Juice

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PROPERTY OVERVIEW | GALLELLI REAL ESTATE

Property Overview Westbridge Plaza is a quality constructed community retail center, comprised of the main Lowe’s building totaling ±160,000 square feet (NAP), with two free-standing retail buildings to the west and three free-standing retail buildings located to the south of Lowe’s. The shopping center has at total square footage of ±190,005 square feet.

Location Westbridge Plaza is located at 2200-2240 Lake Washington Boulevard on the Northern corner of Lake Washington Boulevard and Jefferson Boulevard in West Sacramento, California.

Building Area The Property has a building area of ±30,005 square feet which consists of 2200 Lake Washington Boulevard at ±6,000 square feet, 2210 Lake Washington Boulevard at ±5,983 square feet, 2220 Lake Washington Boulevard at ±6,000 square feet, 2230 Lake Washington Boulevard at ±6,006 square feet and 2240 Lake Washington Boulevard at ±6,016 square feet.

Traffic Counts Westbridge Plaza has impressive traffic counts with ±36,000 cars per day passing through the intersection of California 84 Highway, also known as Jefferson Boulevard, and Lake Washington Boulevard. The property is also located just under 2-miles from the Interstate 80 Business connection to U.S. Highway 50 which sees ±133,000 cars per day.

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Address

2200, 2210, 2220, 2230 & 2240 Lake Washington Boulevard

Total GLA

±30,005

Current Occupancy

95.00%

Current Vacancy

5.00%

Year Built

2008

Site Area Acres

±4.10

Site Area SF

±178,596

APN’s

045-030-022, 023, 024, 027, 028

County

Yolo

Parking Stalls/Ratio

±710 /3.74 per 1,000 SF building area (entire center)

Zoning

B-P (Business Park)

Access

Ingress Egress from Lake Washington Boulevard and Southport Parkway

Topography

Generally level at street grade

Foundation

Concrete slab

Construction

Wood frame with stucco exterior, aluminum framed/glazed store fronts

Roof

Flat with pitched mansard

HVAC

Roof Mounted HVAC

Plumbing

Water and sanitary sewer to the building

Utilities

All normal utilities are available to the site provided by the following • Water – City of West Sacramento • Sewer – City of West Sacramento • Electricity – Pacific Gas & Electric (PG&E) • Gas – Pacific Gas & Electric (PG&E)

Downtown Sacramento

Not A Part

JE

FF

ER

SO

NB

OU

LE

VA R

D

Alterations & Designs Pure-N-Fit Training

Palladio Day Spa

ARL

INGT ON

LAKE W ASHING

ROA

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TON BO U

LEVARD

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SITE PLAN & PARCEL MAP | GALLELLI REAL ESTATE

Site Plan SUITE

TENANT

SQ. FT.

WESTBRIDGE PLAZA

2200-100

Streets of London

2200-110

Pure-N-Fit Training

2210-100

Tsuki Sushi

2210-110

Alterations & Designs

2210-120

State Farm Insurance

1,083

2210-130

Maximize Chiropractic

1,402

2220-100

Panda Express

2,000

2220-105

Palladio Day Spa

2220-120

Ro Co Wine & Spirits

2230-100

Great Clips

1,202

2230-110

OneMain Financial

1,202

2230-120

PG&E

1,802

2230-130

Marco’s Pizza

1,800

2240-100

Yolo Federal Credit Union

2,081

2240-105

Sydnee’s Pet Grooming

1,233

2240-120

Savoury Deli

1,186

2240-130

AVAILABLE

2250

4,240 1,760 2,600

900 NWC Lake Washington Boulevard & Jefferson Boulevard - West Sacramento, CA

SITE PLAN

Lowe’s Home Improvement

1,600 2,400

1,500 160,000

For leasing information, please contact: Jeff T. Hagan CA DRE #01494218 jhagan@GallelliRE.com Matt N. Goldstein CA DRE #01886233 mgoldstein@GallelliRE.com

Gallelli Real Estate 3005 Douglas Blvd., Suite 200 Roseville, CA 95661 P 916 772 1700 www.GallelliRE.com Gary B. Gallelli, Broker CA DRE #00811881

NOT A PART ±160,000 SF

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Parcel Map

2220 Lake Washington Boulevard Parcel 22

2210 Lake Washington Boulevard Parcel 23 2230 Lake Washington Boulevard Parcel 27

2200 Lake Washington Boulevard Parcel 24

2240 Lake Washington Boulevard Parcel 28

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WEST SACRAMENTO OVERVIEW | GALLELLI REAL ESTATE

West Sacramento Overview The City of West Sacramento Incorporated in 1987, West Sacramento is a vibrant riverfront community centrally located in Northern California. It is recognized as an innovation leader in the region and a growing center of commerce, recently emerging as a hub for the food industry and related activities. Food companies from around the world have chosen to build facilities in the city. Urban farms dot the landscape, providing fresh produce to residents and restaurateurs.

WESTBRIDGE PLAZA

Currently, the riverfront area called the Bridge District is rapidly developing.

At full build out, there will be 4,000 residential housing units in this area along with offices and retail. Sutter Health Park, home of the River Cats, the AAA affiliate of the San Francisco Giants, anchors the area. Plans are underway for a streetcar line that will connect the city’s core with the Bridge District and state capital Sacramento.

Southport Westbridge Plaza is located in the Southport neighborhood of West Sacramento, a ±7,120-acre area located in the southern half of the City. It is bounded by the Sacramento Deep Water Ship Channel to the north and west, the Sacramento River to the east and the City limits to the south, just south of Burrows Avenue. The Southport area originally consisted of rural homesteads and small neighborhoods in Arlington Oaks and Linden, but now has a considerable population that resulted from housing booms in the early 1990s and the early 2000s, adding new reasonably affluent neighborhoods in Bridgeway, Gateway, River Ranch, and Newport. Just a mile west on Southport Parkway is the Southport Industrial Park, a 640—acre industrial/business park that has about 8.6 million square feet of building area among 49 buildings. There are currently four buildings under construction totaling ±678,000 square feet. Amazon recently constructed two buildings in Southport Industrial Park totaling ±343,000 square feet and other institutional and notable tenants in the park include General Electric, HD Supply, NorCal Beverage, Nippon Shokken USA, Core-Mark International, Veritiv, DBI Beverage and others.

Source: www.cityofwestsacramento.org/CoStar

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The City of Sacramento Located adjacent to the City of West Sacramento across the Sacramento river, founded in 1849, the City of Sacramento is the oldest incorporated city in California. Sacramento is the capital of the State of California, the county seat for Sacramento County and the central city for the fourcounty Sacramento Metropolitan Area. Located at the confluence of the Sacramento River and the American River, it is affectionately known as the ‘River City’. Sacramento has a total incorporated area of 99.2 square miles, of which 97.2 square miles is land and 2 square miles is water.

As the state’s farm to fork capital, Sacramento is a prime location and compelling choice for businesses. Its geography, qualified workforce, lower cost of living, access to government and education, quality of life, amenities and culture are all key ingredients that make Sacramento the place to be.

Sacramento is not only California’s state capital, it is a growing metropolitan region with the seventh largest world economy. It is the largest city in a six-county region, serving a population over 500,000 in the city and nearly 2.5 million people in the region. Continued public and private investment is evident in many of the city’s commercial corridors and opportunity sites.

Source: www.greatersacramento.com, http://www.cityofsacramento.org/

Golden1 Center

Downtown Sacramento

ard

Jeff erso

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Port of Sacramento

AM

lev

EN TO

RI

VE R

State Capitol

CR

ou

River One

SA

lB

vard

tria

oule

us

Harbor Boulevard

Ind

Bridge District

SACRAMENTO DEEP WATERS SHIP CHANNEL WESTBRIDGE PLAZA Seaport Parkway

Southport Industrial Park

Summerplace Jefferson Village Apartments

Riverchase

Development River One: The project is located at the northeast corner of 3rd Street and Tower Bridge Gateway. The applications have been submitted to facilitate construction of a 7-story, 193 room hotel and a 7-story, 57 room condominium building. The project also includes an underground parking garage.

Jefferson Village Apartments: A 322-unit multifamily development project on 11.40 acres located adjacent to the Property which is in the final stages of approval and expected to break ground approximately the middle of this year. The current plans show a five-story apartment building fronting Jefferson Boulevard, the entire length of the project site, (5) three-story apartment buildings, nine smaller apartment buildings along the southern and eastern edge overlooking the Clarksburg Branch Line Trail and a community/leasing building in the middle of the site.

Summerplace: The development consists of a 2-story 152,850 square foot building with 94 assisted care beds and 54 memory care residential units. This project is located less than 1 mile from the Property, in the Northeast Village of the Southport Framework Plan area on approximately 6.72 acres and is bounded by Jefferson Boulevard to the west/northwest, by Gateway Drive to the south/southwest, and the Clarksburg Branch Line Trail to the east. A residential neighborhood is located beyond the public trail approximately 200 feet east of the subject property.

Riverchase: The project consists of subdividing 18.3 acres of vacant land into 222 single family lots with 26 lettered lots that include some open space areas.

The project is located at 3151 Southport Parkway in Southport Business Park, approximately 2 miles from the Property.

Further Development: In addition to the development projects above, there are just over 1,100 multifamily units and just under 500 single family homes approved by the city of West Sacramento.

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SACRAMENTO REGION OVERVIEW | GALLELLI REAL ESTATE

WESTBRIDGE PLAZA

Sacramento Region Overview Sacramento, California is located approximately 105-miles northeast of San Francisco. The Sacramento-Arden Arcade-Roseville MSA is comprised of Placer, El Dorado, Sacramento, and Yolo Counties. These four counties are the main employment center for the region. In addition, Sutter and Yuba counties are tracked as a part of the region’s population. These counties feature agricultural characteristics and serve as bedroom communities to the Sacramento region because of their affordable housing.

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Population Growth One of the primary contributors to economic expansion in the Greater Sacramento Area is population growth. The population of the region in 2021 now exceeds 2.6 million. Population in the greater Sacramento region grew by more than 14% between 2010 and 2021, an average annual growth rate of 1.3%. The Sacramento region’s population is expected to significantly outpace the growth of nearly all other major metro areas in California, as well as California itself.

Sacramento County and the region’s substantial residential growth over the past few years is in part due to lifestyle changes in combination with factors related to COVID-19. Since COVID-19 appeared two years ago, the residential demand has been unprecedented. Statistics show that total migration numbers from San Francisco County to Sacramento County increased by 70% in 2020 and 2021. The Sacramento Region landed the number three spot in the country for the 2020 most popular destinations for professional workers leaving the Bay Area. Compared to the top 30 metro areas in the country, the Sacramento region saw the most migration per 1,000 people in 2021. The trend of people leaving places like the Bay Area to live in more affordable areas like the Sacramento region was ongoing even prior to COVID-19 and this trend is expected to continue in-to the future.

Median Household Income The median household income in West Sacramento has increased 48.86% over the last 20 years. As of 2020, West Sacramento had a current median household income of $70,699, however, within the boundaries of the Southport neighborhood, the median household income is an impressive $107,459 in 2020. This puts Southport in line with the leading cities and submarkets in the Sacramento region.

CITY

2000

2020

% CHANGE

El Dorado Hills

$93,483

$137,726

47.33%

Folsom

$73,175

$114,405

56.34%

NA

$107,459

NA

Rocklin

$64,737

$98,566

52.26%

Elk Grove

$60,661

$93,780

54.60%

Roseville

$57,367

$89,082

55.28%

Sacramento

$47,236

$67,151

42.16%

Southport Neighborhood

Source: US Bureau of the Census

Employment Structure & Industry Employment As of November 2021, the annual average industry employment, the Government represents the largest single sector share at (23.65%) of the Sacramento MSA non-farm job base. Other significant employment sectors include Trade/Transportation/Utilities (16.52%), Educational/Health Services (16.12%), Professional and Business Services (13.44%) and Leisure and Hospitality (8.52%). The combined service sectors of Information, Finance/ Insurance/Real Estate, Professional Services, Education/Health Services, Hospitality and Other equal 48.37% of the employment base which indicates Sacramento has a solid diversified employment base that is not entirely dependent on the government sector.

INDUSTRY SECTOR

EMPLOYMENT

% OF INDUSTRY

Gov.

241,300

23.65%

Whsale Trade/Trans/Util.

168,600

16.52%

Education/Health Serv.

164,500

16.12%

Professional Services

137,100

13.44%

Leisure/Hospitality

86,900

8.52%

Mining/Construction

79,200

7.76%

Finance/Ins/RE

53,000

5.19%

Manufacturing

37,700

3.69%

Other

41,900

4.11%

Information

10,100

0.99%

1,020,300

100.00%

Total Source: CA Employment Development Department (EDD)

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SACRAMENTO REGION OVERVIEW | GALLELLI REAL ESTATE

Cultural & Recreational Activities

Labor Force One of the most important attractions for new firms moving to the region is a diverse and highly skilled labor force. The labor force has expanded from 910,000 in the year 2000, to 1,102,600 at month end November 2021. As of November 2021, California’s unemployment rate was 6.9%, which is higher than that of the Sacramento MSA at 4.7%.

The Sacramento MSA unemployment rate has steadily declined on an annual basis from its 2010 peak of 12.4%. Migration of skilled workers into the region accounts for a major portion of this increase, supplemented by graduates from the region’s high schools, colleges, universities, and other schools.

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Much of the Sacramento area’s appeal comes from its central location to so many cultural and natural attractions. Less than a two-hour drive from Sacramento are such attractions as San Francisco, Napa Valley Wine Country, and Sierra Nevada Mountains (including Lake Tahoe), home of the 1960 Winter Olympics. Local attractions include the State Capitol, Sutter’s Fort, Crocker Art Museum, the State Railroad Museum, annual Jazz Jubilee, ballet, theater, and the NBA Sacramento Kings.

Sacramento is quickly becoming a hot spot for urban nightlife and an arts scene that rivals other cities and has exceptional cultural, artistic, and leisure opportunities that enrich the quality of life, contributing to a vibrant metropolitan region.

Sacramento is located at the center of more than 200 wineries along with over 50 breweries operating in the region. With the explosion of the farm-to-fork lifestyle in the city, Sacramento has become one of the leading destinations for wine and beer enthusiasts.

Sacramento lies at the confluence of the American River and Sacramento Rivers. With 223 parks and parkways, over 4,200 acres, there are plenty of outdoor activities for residents and visitors including whitewater rafting, kayaking, hiking, bicycling, or enjoying one of Sacramento’s many parks.

In October 2016, Golden 1 Center in Downtown Sacramento opened to the public. The state-ofthe-art, brand new arena features 17,500 seats, numerous farm-to-fork dining options featuring local chefs and farmers and is one of the most technologically advanced arenas in the nation.

The center is home to the Sacramento Kings and feature’s numerous events and concerts.

Kimpton’s The Sawyer, a luxury, 250-room hotel, was completed in 2017. The overall development features ±475,000 square feet of office space, ±350,000 square feet of retail and up to ±500,000 square feet for residential units.

Transportation Highways One of the strengths of West Sacramento is its proximity to four of the major thoroughfares in California. West Sacramento is bordered by Interstate 5 to the east which blends briefly with California State Route 99 until they separate again about 5 miles north. Interstate 80 runs along the northern border, while the connection from Interstate 80 to U.S. Route 50 runs right through the middle of the city. Interstate 5 is the major north-south arterial running from the Mexican border to the Canadian border.

California State Route 99 is a north-south state highway running almost the entire length of the central valley, from Wheeler Ridge to Red Bluff. Interstate 80 is a major east-west transcontinental freeway that crosses the United States from downtown San Francisco, California, to Teaneck, New Jersey, in the New York City Metropolitan Area.

U.S. Route 50 is another major east-west highway stretching across the country from West Sacramento, California, to Ocean City, Maryland.

Shipping Seaport The inland port of West Sacramento opened in 1963. It is located 79 nautical miles northeast of San-Francisco and is centered in one of the richest agricultural and industrial regions in the world. The port handles approximately 1.3 million tons of cargo annually. The 40-mile, deep water channel has a water depth of 30 feet. Facilities at the port include five 600-foot berths, a 200-railcar terminal area, commodities handling capabilities including bulk rice and grain elevators, bulk commodities bagging and dry bulk warehousing, three transit sheds, an open storage yard, log yard and service by over 50 trucking companies.

Railways Union Pacific, BNSF, Amtrak, and Central California Traction Company all provide freight and passenger rail service to the Sacramento area, there is connection rail service to virtually all major cities. Union Pacific operates the largest inter-modal railroad switching yard west of the Mississippi River in Roseville. In 1999, Union Pacific completed a $150 million reconstruction project of the 915-acre rail yard. This makes the Roseville yard the largest, most expensive, and most modern in the Union Pacific system. With the completion of the reconstruction, Union Pacific has made Roseville its Western Region headquarters as part of organizing its rail operations into three regions.

The rail yard has approximately 1,400 employees and can handle 2,500 to 3,000 cars per day.

Airports The Sacramento International Airport is located about 12-miles northwest of West Sacramento. Sacramento International Airport provides non-stop or connections to over 150 cities, nationally or around the world. In 1998, a new terminal was added to the airport with 12 gates for a total of 24. Completed a little over 10 years ago, the Sacramento International Airport’s Big Build project is the largest capital improvement project by the County of Sacramento. The $1.04 billion Big Build was completed in October 2011. The project, which replaced the 216,000-square foot Terminal B now meets the increased travel demand and is able to accommodate over ten million passengers per year. The new Terminal B facilities include a landside terminal building, new 23 gate 700,000 square foot airside concourse (with 3 international gates), automated people mover, new parking garage, two-level structured roadway, and cross-field taxiway and apron paving and a new FAA control tower. Annual passenger traffic at the airport has grown from 2.9 million passengers per year in 1980 to an average of over 12.6 million passengers between 2018 and 2019. Due to the impacts of Covid-19 and the heavy travel restrictions, the airport saw a little over 8.7 million passengers in 2021 which is a substantial increase from 2020 which logged less than 5.6 million passengers.

Sacramento Executive Airport is located approximately five miles south of downtown Sacramento off Interstate 5 and typically handles business and private aircraft. Mather Airport, a former Air Force Base located approximately 10 miles east of downtown Sacramento, off Highway 50, is a cargo hub. With its 11,300-foot jumbo runway, Mather has attracted several of the industry’s major air cargo carriers including UPS and DHL. 17

TENANT PROFILES | GALLELLI REAL ESTATE

Tenant Profiles

Maximize Chiropractic www.maximizechiropractic.com A family owned and operated chiropractic offering a wide array of chiropractic services.

Pure-N-Fit Training www.purenfittraining.com An all-exclusive private training studio that is not open to the public and there are no memberships required. They offer 1-on-1 personal training programs, weekly group training sessions, boxing classes, semi-group classes and much more.

Lowe’s (NOT A PART) www.lowes.com Lowe’s Companies, Inc operates 2,197 home improvement and hardware stores in North America. In 2020, Lowe’s sales totaled almost $90 billion dollars landing a spot in the top 10 retailers in the nation.

Streets of London Pub www.streetsoflondonpub.com Inspired by the warm and welcoming pubs found on just about any corner in Britain, this London inspired pub style restaurant has a full bar and menu as well as indoor and outdoor seating.

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Tsuki Sushi www.tsukisushirestaurant.com A locally owned and operated sushi restaurant with chefs that hold 20 years of experience in the industry.

Alterations & Design www.alterationsanddesigns.com A local alterations business that provides a variety of services from one-time projects, to long term personal tailors.

State Farm Insurance www.statefarm.com A State Farm Insurance location providing insurance products such as auto, home, property, business, life, health, pet and more.

Panda Express www.pandaexpress.com Founded in 1983, Panda Express is an American fast food restaurant chain that serves American Chinese cuisine. The chain operates over 2,200 locations and reported over $1.5 billion in revenue for 2021.

Palladio Day Spa www.palladiodayspa.com A local salon that offers a range of services including nail, hair, facial and many others.

Ro Co Wine & Spirits www.rocospirits.com A premier wine and spirit shop that offers award winning beer, wine, and spirits.

Great Clips www.greatclips.com A hair salon franchise with over 4,100 locations throughout the United States and Canada.

OneMain Financial www.onemainfinancial.com OneMain Financial is one of the leading personal installment loan companies in the United States.

Their team offers help for financial needs such as debt consolidation, home and auto repair, medical procedures, and other major expenses.

Yolo Federal Credit Union www.yolofcu.com Established in 1954, Yolo Federal Credit Union is a full-service financial institution for all banking needs. They have been voted Yolo County’s Best Credit Union for the last 21 years.

Pacific Gas & Electric Company (PG&E) www.pge.com PG&E is one of the largest combined natural gas and electric energy companies in the nation.

They employ an estimated 23,000 people with a territory that stretches from Eureka, CA in the north, to Bakersfield, CA in the south, and from the Pacific Ocean in the west, to the Sierra Nevada Mountains in the east. They service accounts for approximately 5.5 million electricity customers and 4.5 million natural gas customers.

Sydnee’s Pet Grooming www.sydneespetgrooming.com Originating approximately 6 years ago, Sydnee’s Pet Grooming offers all grooming services for domesticated pets and they have even developed their own line of all-natural and locally made grooming products. Sydnee’s has quickly grown to 20 locations, over 4 states, 13 of which are in California.

Marco’s Pizza www.marcos.com Founded in Oregon, Ohio in 1978, Marco’s Pizza has become one of the fastest growing pizza brands in the United States. They were ranked No. 2 in the Pizza category on Entrepreneur Magazine’s 2020 “Franchise 500”, and No. 6 in the Largest Pizza Chain category in Restaurant Business’ 2020 “Top 500 Chains”. They now operate over 1,000 locations across 34 states, with locations in Puerto Rico and the Bahamas.

Savoury Deli www.savoury.us A locally owned and operated deli store that specializes in sandwiches, salads, and coffee.

Savoury Deli also holds a license agreement to sell Peet’s Coffee.

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LEASE SUMMARY | GALLELLI REAL ESTATE

Lease Detail Summary Bldg

Suite Tenant Name

2200 100

The Streets of London Pub

Area

Initial Occ.

Lease Start

Lease Expire

Rent Adj Dates

Monthly Rent

4,240

2008

02/01/15

01/31/25

2/1/2020

$9,328.00

Monthly Rent SF

Annual Rent

Annual Rent SF

Renewal Options

NNN Admin Fee

$2.20 $111,936.00

$26.40

2 - 5 Yr

15.00%

None

15.00%

Option Rent is at Fair Market Value for each option term.

Rollover Assumption - Exercised option at $2.39 SF month Tenant shall derive more than 50% of its revenue from the sale of food as required by the CC&Rs. 2200 110

Pure-N-Fit Training

1,760

2021

05/01/21

06/30/23

2/1/2020

$3,080.00

$1.75

$36,960.00

$21.00

5/1/2022

$3,168.00

$1.80

$38,016.00

$21.60

9/1/2018

$5,739.81

$2.21

$68,877.72

$26.49

1 - 5 Yr

15.00%

Rollover Assumption - Market rollover $1.75 2210 100

Tsuki Sushi

2,600

2007

08/22/08

08/31/23

Option Rent is at Fair Market Value for each option term.

Rollover Assumption - Market rollover $2.25, flat for five years.

2210 110

Alterations & Design

900

2010

01/01/16

12/31/22

1/1/2021

$900.00

$1.00

$10,800.00

$12.00

None

15.00%

1,083

2019

02/01/19

04/30/22

5/1/2021

$1,732.80

$1.60

$20,793.60

$19.20

1 - 3 Yr

15.00%

None

15.00%

2 - 5 Yr

7.50%

Rollover Assumption - Market rollover $1.75 2210 120

State Farm

Option Rent is at Fair Market Value.

Rollover Assumption - Exercised option at 3.0% annual increase over prior rent, market rollover thereafter 2210 130

Maximize Chiropractic

1,400

2015

05/01/15

04/30/25

5/1/2021

$2,423.93

$1.73

$29,087.16

$20.78

5/1/2022

$2,496.65

$1.78

$29,959.80

$21.40

5/1/2023

$2,571.55

$1.84

$30,858.60

$22.04

5/1/2024

$2,468.70

$1.76

$29,624.40

$21.16

10/1/2018

$8,470.00

$4.24 $101,640.00

$50.82

2nd Option Rent

$9,317.00

$4.66 $111,804.00

$55.90

3rd Option Rent

$10,248.70

$5.12 $122,984.40

$61.49

Rollover Assumption - Market rollover $1.75 2220 100

Panda Express

2,000

2008

09/01/08

09/30/23

Rollover Assumption - Exercised option at current rent, flat for five years Admin fee applies to CAM, does not apply to taxes, insurance or utilities, Tenant does not reimburse property management.

CAM not to increase more than 5% annually over prior year (excludes taxes, insurance & utilities), non-cumulative cap

20

Bldg

Suite Tenant Name

2220 105

Palladio Day Spa

Area

Initial Occ.

Lease Start

Lease Expire

Rent Adj Dates

Monthly Rent

Monthly Rent SF

Annual Rent

Annual Rent SF

Renewal Options

NNN Admin Fee

1,600

2010

08/02/10

12/31/25

1/1/2022

$2,307.20

$1.44

$27,686.40

$17.30

1 - 5 Yr

15.00%

1/1/2023

$2,376.42

$1.49

$28,517.04

$17.82

1/1/2024

$2,447.71

$1.53

$29,372.52

$18.36

1/1/2025

$2,521.14

$1.58

$30,253.68

$18.91

1 - 5 Yr

15.00%

None

0.00%

Option rent to be negotiated at time option is exercised Rollover Assumption - Market rollover $2.00 2220 115

Ro Co Wine & Spirits

2,400

2010

06/30/10

10/31/25

11/1/2021

$5,562.00

$2.32

$66,744.00

$27.81

11/1/2022

$5,728.86

$2.39

$68,746.32

$28.64

11/1/2023

$5,900.73

$2.46

$70,808.76

$29.50

11/1/2024

$6,077.76

$2.53

$72,933.12

$30.39

Option rent to be negotiated at time option is exercised Rollover Assumption - Market rollover $2.25 2230 100

Great Clips

1,202

2014

06/01/14

05/31/24

6/1/2021

$2,584.30

$2.15

$31,011.60

$25.80

6/1/2022

$2,644.40

$2.20

$31,732.80

$26.40

6/1/2023

$2,704.50

$2.25

$32,454.00

$27.00

Rollover Assumption - Market rollover $2.00 Co-tenancy - Lowe’s or more than 50% of the Shopping Center GLA is vacant, Tenant may pay 50% of the Minimum Rent as Alternative Rent until the Occupancy Failure is cured, after 6 months Tenant may terminate Lease if the Occupancy Failure is not cured, if termination notice is not given, then lease continues for remainder of term, if Tenant has paid Alternative Rent for more than 6 months, Landlord shall have right to terminate lease with written notice to Tenant.

2230 110

OneMain Financial

1,202

2017

02/24/18

02/28/23

Option 1 Rent

Option 2 Rent

3/1/2021

$2,283.80

$1.90

$27,405.60

$22.80

3/1/2022

$2,343.90

$1.95

$28,126.80

$23.40

3/1/2023

$2,416.02

$2.01

$28,992.24

$24.12

3/1/2024

$2,488.14

$2.07

$29,857.68

$24.84

3/1/2025

$2,560.26

$2.13

$30,723.12

$25.56

3/1/2026

$2,632.36

$2.19

$31,588.32

$26.28

3/1/2027

$2,716.52

$2.26

$32,598.24

$27.12

3/1/2028

$2,800.66

$2.33

$33,607.92

$27.96

3/1/2029

$2,884.80

$2.40

$34,617.60

$28.80

3/1/2030

$2,968.94

$2.47

$35,627.28

$29.64

3/1/2031

$3,053.08

$2.54

$36,636.96

$30.48

3/1/2032

$3,149.24

$2.62

$37,790.88

$31.44

2 - 5 Yr

15.00%

Rollover Assumption - Exercised option per lease terms Tenant may provide Termination Notice during months 37, 97 or 157, if delivered during the initial Term Tenant to pay unamortized TI’s and commission as a Termination Fee. Termination Notice date during initial term has expired. Termination Date shall be at lease 120 days after Landlord’s receipt of the Termination Notice. If Tenant is dark for a minimum of 30 consecutive days, or 45 days in any 90 day period, Landlord may recapture space with 30 days prior notice, Tenant to pay unamortized TI’s and commission.

21

LEASE SUMMARY | GALLELLI REAL ESTATE LEASE DETAIL SUMMARY CONTINUED

Bldg

Suite Tenant Name

2230 120

PG&E

Area

Initial Occ.

Lease Start

Lease Expire

Rent Adj Dates

Monthly Rent

Monthly Rent SF

Annual Rent

Annual Rent SF

Renewal Options

NNN Admin Fee

1,802

2016

12/16/16

12/31/26

1/1/2022

$3,083.81

$1.71

$37,005.72

$20.54

2 - 5 Yr

5.00%

1/1/2023

$3,145.48

$1.75

$37,745.76

$20.95

1/1/2024

$3,208.39

$1.78

$38,500.68

$21.37

1/1/2025

$3,272.56

$1.82

$39,270.72

$21.79

1/1/2026

$3,338.01

$1.85

$40,056.12

$22.23

2 - 5 Yr

15.00%

Option rent to be 95% of Fair Market Rent Rollover Assumption - Market rollover $1.75 Admin fee only applies to CAM, excludes taxes, insurance, does not reimburse property management.

2230 130

Marco's Pizza

1,800

2018

07/17/18

04/30/29

Option 1 Rent

Option 2 Rent

11/1/2021

$3,978.00

$2.21

$47,736.00

$26.52

5/1/2024

$4,176.00

$2.32

$50,112.00

$27.84

11/1/2026

$4,374.00

$2.43

$52,488.00

$29.16

5/1/2029

$4,590.00

$2.55

$55,080.00

$30.60

11/1/2031

$4,824.00

$2.68

$57,888.00

$32.16

5/1/2034

$5,058.00

$2.81

$60,696.00

$33.72

11/1/2036

$5,310.00

$2.95

$63,720.00

$35.40

Rollover Assumption - Market rollover $2.50 Controllable CAM cost increases are capped at 5.0% over prior years Common Area Cost Cap, first full calendar year establishes Base Expense Year, second full calendar year establishes Common Area Cost Cap which is the Base Expense Year increased by 5.0%; Controllable Common Area Costs excludes taxes, insurance and utilities.

Admin fee applies to CAM, admin fee excludes taxes and insurance.

22

Bldg

Suite Tenant Name

2240 100

Yolo Federal Credit Union

Area

Initial Occ.

Lease Start

Lease Expire

Rent Adj Dates

Monthly Rent

Monthly Rent SF

Annual Rent

Annual Rent SF

Renewal Options

NNN Admin Fee

2,081

2013

07/01/14

06/30/24

7/1/2021

$3,798.41

$1.83

$45,580.84

$21.90

None

10.00%

7/1/2022

$3,874.38

$1.86

$46,492.45

$22.34

7/1/2023

$3,951.87

$1.90

$47,422.30

$22.79

12/1/2021

$2,157.75

$1.75

$25,893.00

$21.00

2 - 5 Yr

15.00%

12/1/2022

$2,219.40

$1.80

$26,632.80

$21.60

12/1/2023

$2,281.05

$1.85

$27,372.60

$22.20

12/1/2024

$2,342.70

$1.90

$28,112.40

$22.80

12/1/2025

$2,404.35

$1.95

$28,852.20

$23.40

12/1/2026

$2,466.00

$2.00

$29,592.00

$24.00

12/1/2027

$2,539.98

$2.06

$30,479.76

$24.72

12/1/2028

$2,613.96

$2.12

$31,367.52

$25.44

Rollover Assumption - Market rollover $2.00 2240 105

Sydnee's Pet Grooming

1,233

2019

11/30/29

12/31/25

Rollover Assumption - Market rollover $1.75 Controllable CAM cost increases are capped at 10.0% over prior years Common Area Cost Cap, first full calendar year establishes Base Expense Year, second full calendar year establishes Common Area Cost Cap which is the Base Expense Year increased by 10.0%; Controllable Common Area Costs excludes taxes, insurance and utilities.

2240 120

Savoury Deli

1,202

2015

05/03/16

08/31/22

9/1/2021

$1,803.00

$1.50

$21,636.00

$18.00

None

15.00%

Rollover Assumption - Renewed at current rent for 1 year, vacate year 2, market rollover $1.75 2240 130

Vacant

1,500

15.00%

Rollover Assumption - Market rollover $1.75

Occupied SF Vacant SF Total SF

28,505

95.00%

1,500

5.00%

30,005

100.00%

23

PROFORMA & ASSUMPTION TABLE | GALLELLI REAL ESTATE

Proforma Assumptions EXPENSES

GENERAL PROPERTY ASSUMPTION Analysis Start Date Years Reporting Building Square Feet Occupancy Available Square Feet Price

July 1, 2022 5 30,005 95.00% 1,500

Tenant Improvements New

$1.75 - $3.75 $20.00 $2.50

Tenant Improvement Weighted Average

$6.00

Commissions New

6.00%

Commissions Renewal

3.00%

Commissions Weighted Average

3.60%

Downtime Months Weighted Average Retention Rate Lease Term Years Lease Type

3.00% of EGI

Real Estate Taxes Reassessed

Yes

Tax Rate

1.1397%

Special Assessments

$9,631

GROWTH / RATE ASSUMPTIONS

Tenant Improvements Renewal

Downtime Months

Historical Actuals

Management Fee

$12,000,000

MARKET LEASING ASSUMPTIONS Market Rent Monthly

Expense Source

Market Rent

3.00%

Expenses/Tenant Improvements

3.00%

Property Taxes

2.00%

General Vacancy

2.50%

Cost of Sale (end of year 5)

4.00%

9 2.0 80% 5 NNN

PROPOSED FINANCING Loan Amount

$7,200,000

Annual Interest Rate

3.60%

Years Amortized

30

Annual Debt Service Notes: (1) Unless otherwise stated in the tenant’s lease summary, the admin fee is applied to CAM, taxes and insurance. Existing tenant’s current admin fee was applied through the hold period, vacant space applied a 15% admin fee.

(2) Ownership currently does not apply an admin fee to property taxes for any of the tenants.

Our interpretation of the tenant leases, unless specifically excluded, is that applying an admin to property taxes is allowed. Our pro forma underwriting applied an admin fee to property taxes for those tenants. Actual NOI does not reflect an admin fee applied to property taxes.

(3) Market Rollover Rent on Lease Summary reflects year 1 assumption of market rent, market rollover rent grows annually by market rent growth rate and is applied at the end of the contractual rent term.

24

$392,814

FINANCING For a personalized debt quotation please contact: Kristopher Krise

(916) 784-2700

Capital Markets Advisor

KKrise@gallellire.com

Gallelli Real Estate

DRE Lic #01910534

Proforma FINANCING

CAPITAL INVESTMENT Estimated Value

$12,000,000

Loan Amount

LTV 60%

$7,200,000

Annual Interest Rate Current Occupancy

95.00%

Actual Cap Rate

6.03%

Year 1 Pro Forma Cap Rate

6.13%

Rentable Square Feet

30,005

Offering Price/Rentable Sqft

$399.93

Actual NOI

723,875

ESTIMATED INCOME Total Potential Rental Income Rental Income PSF Potential Operating Pass Throughs & Other Income

YEAR ENDED

3.60%

Years Amortized

30

Annual Debt Service

$392,814

DCR Yr 1

1.87

INITIAL EQUITY INVESTED Equity to Loan

$4,800,000

Total Equity

$4,800,000

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

754,407

774,777

795,379

817,595

837,306

851,925

2.10

2.15

2.21

2.27

2.33

2.37

382,861

392,347

403,159

413,458

424,310

454,025

1,137,268

1,167,124

1,198,538

1,231,054

1,261,615

1,305,951

Re-tenant Downtime

(34,650)

(44,408)

(18,051)

(18,795)

(7,099)

0

NNN Re-tenant Downtime

(21,853)

(25,819)

(10,399)

(9,536)

(3,568)

0

0

0

(1,513)

(2,445)

(20,873)

(32,649)

1,080,765

1,096,896

1,168,575

1,200,277

1,230,075

1,273,302

Total Income

Vacancy & Collection Reserve Effective Gross Income

25

PROFORMA | GALLELLI REAL ESTATE

ESTIMATED RECOVERABLE OPERATING EXPENSES

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

Property Taxes

136,764

139,499

142,289

145,135

148,038

167,536 10,633

Direct Levies/Assessments

9,631

9,824

10,020

10,220

10,425

Insurance

11,485

11,830

12,185

12,550

12,927

13,314

Utilities

97,320

100,240

103,247

106,344

109,535

112,821

Fire & Safety / Sec

11,152

11,487

11,831

12,186

12,552

12,928

Porter/Steam Cleaning/Sweeping

20,174

20,779

21,403

22,045

22,706

23,387

Repair & Maintenance

28,000

28,840

29,705

30,596

31,514

32,460

Management Fee Total Recoverable Operating Expenses

31,028

31,586

33,240

34,136

35,337

36,750

345,555

354,084

363,920

373,213

383,033

409,829

0.96

0.98

1.01

1.04

1.06

1.14

735,210

742,812

804,655

827,064

847,042

863,472

6.13%

6.19%

6.71%

6.89%

7.06%

(392,814)

(392,814)

(392,814)

(392,814)

(392,814)

342,397

349,999

411,841

434,250

454,229

7.13%

7.29%

8.58%

9.05%

9.46%

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

35,400

59,134

29,052

26,225

12,169

Operating Costs Per Sqft/Mo Net Operating Income Yield Annual Debt Service Net Cash Flow (After Debt Service) Cash on Cash After Debt Service

ESTIMATED CAPITAL EXPENSES Tenant Improvements Leasing Commissions Total Capital Expenses Net Cash Flow (After Debt Serv/Capital Exp) Cash on Cash Return (After Debt Serv/Capital Exp)

13,647

35,057

20,700

21,553

8,140

49,047

94,191

49,752

47,779

20,309

293,350

255,807

362,090

386,471

433,919

6.11%

5.33%

7.54%

8.05%

9.04%

SELL PROPERTY END OF YEAR 5 CAP RATE

CASH FLOWS CAP RATE

5.50%

5.75%

6.00%

6.25%

(4,800,000)

(4,800,000)

(4,800,000)

(4,800,000)

Year 1

293,350

293,350

293,350

293,350

255,807

255,807

255,807

255,807 362,090

SALE PRICE

PRICE / SF

NET TO OWNER

IRR

5.50%

15,699,496

523.23

8,608,685

18.03%

Total Investment

5.75%

15,016,910

500.48

7,953,402

16.43%

6.00%

14,391,205

479.63

7,352,725

14.89%

Year 2

6.25%

13,815,557

460.44

6,800,103

13.39%

Year 3

362,090

362,090

362,090

Year 4

386,471

386,471

386,471

386,471

Year 5

9,042,604

8,387,321

7,786,644

7,234,022

26

PROJECTED INCOME BLDG

SUITE

TENANT NAME

LEASE EXP

AREA

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

2200

100

Streets of London Pub

01/31/25

4,240

111,936

111,936

115,901

121,452

121,452

121,452

2200

110

Pure-N-Fit Training

06/30/23

1,760

38,016

38,069

39,211

40,387

41,599

42,847

2210

100

Tsuki Sushi

08/31/23

2,600

68,878

71,735

72,306

72,306

72,306

72,306

2210

110

Alterations & Design

12/31/22

900

14,850

19,184

19,759

20,352

20,962

21,591

2210

120

State Farm Insurance

04/30/22

1,083

21,524

22,170

23,050

24,249

24,976

25,725

2210

130

Maximize Chiropractic

04/30/25

1,400

30,110

31,013

31,685

31,346

32,287

33,255

2220

100

Panda Express

09/30/23

2,000

101,640

101,640

101,640

101,640

101,640

101,640

2220

105

Palladio Day Spa

12/31/25

1,600

28,102

28,945

29,813

36,107

42,590

43,868

2220

115

Ro Co Wine & Spirits

10/31/25

2,400

68,079

70,121

72,225

71,517

72,933

74,392

2230

100

Great Clips

05/31/24

1,202

31,793

32,226

29,788

30,681

31,602

32,550

2230

110

OneMain Financial

02/28/23

1,202

28,415

29,281

30,146

31,012

31,925

32,935

2230

120

PG&E

12/31/26

1,802

37,376

38,123

38,886

39,663

41,324

43,230

2230

130

Marco's Pizza

04/30/29

1,800

47,736

48,132

50,112

51,894

52,488

52,488

2240

100

Yolo Federal Credit Union

06/30/24

2,081

46,493

47,422

52,986

54,575

56,212

57,899

2240

105

Syndee's Pet Grooming

11/30/29

1,233

26,325

27,064

27,804

28,544

29,284

30,110

2240

120

Savoury Deli

08/31/22

1,202

21,636

25,272

26,649

27,449

28,272

29,120

2240

130

Vacant

-

1,500

31,500

32,445

33,418

34,421

35,454

36,517

30,005

754,407

774,777

795,379

817,595

837,306

851,925

LEASE EXP

AREA

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

Totals PROJECTED INCOME PER SQUARE FOOT BLDG

SUITE

TENANT NAME

2200

100

Streets of London Pub

01/31/25

4,240

$2.20

$2.20

$2.28

$2.39

$2.39

$2.39

2200

110

Pure-N-Fit Training

06/30/23

1,760

$1.80

$1.80

$1.86

$1.91

$1.97

$2.03

2210

100

Tsuki Sushi

08/31/23

2,600

$2.21

$2.30

$2.32

$2.32

$2.32

$2.32

2210

110

Alterations & Design

12/31/22

900

$1.38

$1.78

$1.83

$1.88

$1.94

$2.00

2210

120

State Farm Insurance

04/30/22

1,083

$1.66

$1.71

$1.77

$1.87

$1.92

$1.98

2210

130

Maximize Chiropractic

04/30/25

1,400

$1.79

$1.85

$1.89

$1.87

$1.92

$1.98

2220

100

Panda Express

09/30/23

2,000

$4.24

$4.24

$4.24

$4.24

$4.24

$4.24

2220

105

Palladio Day Spa

12/31/25

1,600

$1.46

$1.51

$1.55

$1.88

$2.22

$2.28

2220

115

Ro Co Wine & Spirits

10/31/25

2,400

$2.36

$2.43

$2.51

$2.48

$2.53

$2.58

2230

100

Great Clips

05/31/24

1,202

$2.20

$2.23

$2.07

$2.13

$2.19

$2.26

2230

110

OneMain Financial

02/28/23

1,202

$1.97

$2.03

$2.09

$2.15

$2.21

$2.28

2230

120

PG&E

12/31/26

1,802

$1.73

$1.76

$1.80

$1.83

$1.91

$2.00

2230

130

Marco's Pizza

04/30/29

1,800

$2.21

$2.23

$2.32

$2.40

$2.43

$2.43

2240

100

Yolo Federal Credit Union

06/30/24

2,081

$1.86

$1.90

$2.12

$2.19

$2.25

$2.32

2240

105

Syndee's Pet Grooming

11/30/29

1,233

$1.78

$1.83

$1.88

$1.93

$1.98

$2.04

2240

120

Savoury Deli

08/31/22

1,202

$1.50

$1.75

$1.85

$1.90

$1.96

$2.02

2240

130

Vacant

-

1,500

$1.75

$1.80

$1.86

$1.91

$1.97

$2.03

4647

100

Mattress Firm

02/01/27

3,319

3.00

3.00

3.27

3.30

3.30

3.30

30,005

$2.10

$2.15

$2.21

$2.27

$2.33

$2.37

Totals / Average

Projected Income reflects current contract rent then rolls to Monthly Market Rent at expiration of lease term.

27

PROFORMA | GALLELLI REAL ESTATE

PROJECTED MONTHLY MARKET RENT PER SQUARE FOOT BLDG

SUITE

TENANT NAME

2200

100

Streets of London Pub

LEASE EXP

AREA

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

01/31/25

4,240

2.25

2.32

2.39

2.46

2.53

2.61

2200

110

Pure-N-Fit Training

06/30/23

1,760

1.75

1.80

1.86

1.91

1.97

2.03

2210

100

Tsuki Sushi

08/31/23

2,600

2.25

2.32

2.39

2.46

2.53

2.61

2210

110

Alterations & Design

12/31/22

900

1.75

1.80

1.86

1.91

1.97

2.03

2210

120

State Farm Insurance

04/30/22

1,083

1.75

1.80

1.86

1.91

1.97

2.03

2210

130

Maximize Chiropractic

04/30/25

1,400

1.75

1.80

1.86

1.91

1.97

2.03 4.35

2220

100

Panda Express

09/30/23

2,000

3.75

3.86

3.98

4.10

4.22

2220

105

Palladio Day Spa

12/31/25

1,600

2.00

2.06

2.12

2.19

2.25

2.32

2220

115

Ro Co Wine & Spirits

10/31/25

2,400

2.25

2.32

2.39

2.46

2.53

2.61

2230

100

Great Clips

05/31/24

1,202

2.00

2.06

2.12

2.19

2.25

2.32

2230

110

OneMain Financial

02/28/23

1,202

2.00

2.06

2.12

2.19

2.25

2.32

2230

120

PG&E

12/31/26

1,802

1.75

1.80

1.86

1.91

1.97

2.03

2230

130

Marco's Pizza

04/30/29

1,800

2.50

2.58

2.65

2.73

2.81

2.90 2.32

2240

100

Yolo Federal Credit Union

06/30/24

2,081

2.00

2.06

2.12

2.19

2.25

2240

105

Syndee's Pet Grooming

11/30/29

1,233

1.75

1.80

1.86

1.91

1.97

2.03

2240

120

Savoury Deli

08/31/22

1,202

1.75

1.80

1.86

1.91

1.97

2.03

2240

130

Vacant

-

1,500

1.75

1.80

1.86

1.91

1.97

2.03

30,005

2.13

2.20

2.26

2.33

2.40

2.47

3.00%

3.00%

3.00%

3.00%

3.00%

Totals / Average Projected Market Rent Increases

28

MARKET TURNOVER

BLDG

SUITE

TENANT NAME

LEASE EXP

OPTIONS

AREA

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

2200

100

Streets of London Pub

01/31/25

2 - 5 Yr

4,240

0

0

0

0

0

0

2200

110

Pure-N-Fit Training

06/30/23

-

1,760

0

1,760

0

0

0

0

2210

100

Tsuki Sushi

08/31/23

1 - 5 Yr

2,600

0

2,600

0

0

0

0

2210

110

Alterations & Design

12/31/22

-

900

900

0

0

0

0

0

2210

120

State Farm Insurance

04/30/22

1 - 3 Yr

1,083

0

0

1,083

0

0

0

2210

130

Maximize Chiropractic

04/30/25

-

1,400

0

0

1,400

0

0

0

2220

100

Panda Express

09/30/23

2 - 5 Yr

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

1 - 5 Yr

1,600

0

0

0

1,600

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

1 - 5 Yr

2,400

0

0

0

2,400

0

0

2230

100

Great Clips

05/31/24

-

1,202

0

1,202

0

0

0

0

2230

110

OneMain Financial

02/28/23

2 - 5 Yr

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

2 - 5 Yr

1,802

0

0

0

0

1,802

0

2230

130

Marco's Pizza

04/30/29

2 - 5 Yr

1,800

0

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

-

2,081

0

0

2,081

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

2 - 5 Yr

1,233

0

0

0

0

0

0

2240

120

Savoury Deli

08/31/22

-

1,202

0

0

0

0

0

0

2240

130

-

-

Vacant Total SF Market Lease Expirations % of rentable space incurring market turnover

1,500

0

0

0

0

0

0

30,005

900

5,562

4,564

4,000

1,802

0

3.0%

18.5%

15.2%

13.3%

6.0%

29

PROFORMA | GALLELLI REAL ESTATE

VACANT SPACE LEASED AT 100% NEW LEASE TERMS YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

4,240

0

0

0

0

0

0

1,760

0

0

0

0

0

0

1 - 5 Yr

2,600

0

0

0

0

0

0

12/31/22

-

900

0

0

0

0

0

0

State Farm Insurance

04/30/22

1 - 3 Yr

1,083

0

0

0

0

0

0

Maximize Chiropractic

04/30/25

-

1,400

0

0

0

0

0

0

100

Panda Express

09/30/23

2 - 5 Yr

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

1 - 5 Yr

1,600

0

0

0

0

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

1 - 5 Yr

2,400

0

0

0

0

0

0

2230

100

Great Clips

05/31/24

-

1,202

0

0

0

0

0

0

2230

110

OneMain Financial

02/28/23

2 - 5 Yr

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

2 - 5 Yr

1,802

0

0

0

0

0

0

2230

130

Marco's Pizza

04/30/29

2 - 5 Yr

1,800

0

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

-

2,081

0

0

0

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

2 - 5 Yr

1,233

0

0

0

0

0

0

2240

120

Savoury Deli

08/31/22

-

1,202

0

1,202

0

0

0

0

2240

130

Vacant

-

-

1,500

1,500

0

0

0

0

0

Total Vacant Space Leased at 100% New Lease Terms

1,500

1,202

0

0

0

0

% of rentable space incurring 100% turnover assumptions

5.0%

4.0%

0.0%

0.0%

0.0%

BLDG

SUITE

TENANT NAME

LEASE EXP

OPTIONS

AREA

2200

100

2200

110

Streets of London Pub

01/31/25

2 - 5 Yr

Pure-N-Fit Training

06/30/23

-

2210

100

Tsuki Sushi

08/31/23

2210

110

Alterations & Design

2210

120

2210

130

2220

Total Occupied Space Total Vacant Space Total Square Feet

30

95.00% 5.00%

28,505 1,500 30,005

COMMISSION EXPENSE LEASE EXP

AREA

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

Streets of London Pub

01/31/25

4,240

Pure-N-Fit Training

06/30/23

1,760

0

0

0

0

0

0

0

7,276

0

0

0

0

100

Tsuki Sushi

08/31/23

110

Alterations & Design

12/31/22

2,600

0

13,820

0

0

0

0

900

3,612

0

0

0

0

2210

120

State Farm Insurance

0

04/30/22

1,083

0

0

4,612

0

0

2210

130

0

Maximize Chiropractic

04/30/25

1,400

0

0

5,961

0

0

2220

0

100

Panda Express

09/30/23

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

1,600

0

0

0

8,020

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

2,400

0

0

0

13,534

0

0

2230

100

Great Clips

05/31/24

1,202

0

5,679

0

0

0

0

2230

110

OneMain Financial

02/28/23

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

1,802

0

0

0

0

8,140

0

2230

130

Marco's Pizza

04/30/29

1,800

0

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

2,081

0

0

10,127

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

1,233

0

0

0

0

0

0

2240

120

Savoury Deli

08/31/22

1,202

0

8,282

0

0

0

0

2240

130

Vacant

-

1,500

10,034

0

0

0

0

0

30,005

13,647

35,057

20,700

21,553

8,140

0

BLDG

SUITE

TENANT NAME

2200

100

2200

110

2210 2210

Total Commissions

31

PROFORMA | GALLELLI REAL ESTATE

TENANT IMPROVEMENTS BLDG

SUITE

TENANT NAME

LEASE EXP

OPTIONS

AREA

YR-1

YR-2

YR-3

YR-4

YR-5

YR-6

JUN 23

JUN 24

JUN 25

JUN 26

JUN 27

JUN 28

2200

100

Streets of London Pub

01/31/25

2 - 5 Yr

4,240

0

0

0

0

0

0

2200

110

Pure-N-Fit Training

06/30/23

-

1,760

0

10,877

0

0

0

0

2210

100

Tsuki Sushi

08/31/23

1 - 5 Yr

2,600

0

16,068

0

0

0

0

2210

110

Alterations & Design

12/31/22

-

900

5,400

0

0

0

0

0

2210

120

State Farm Insurance

04/30/22

1 - 3 Yr

1,083

0

0

6,894

0

0

0

2210

130

Maximize Chiropractic

04/30/25

-

1,400

0

0

8,912

0

0

0

2220

100

Panda Express

09/30/23

2 - 5 Yr

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

1 - 5 Yr

1,600

0

0

0

10,490

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

1 - 5 Yr

2,400

0

0

0

15,735

0

0

2230

100

Great Clips

05/31/24

-

1,202

0

7,428

0

0

0

0

2230

110

OneMain Financial

02/28/23

2 - 5 Yr

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

2 - 5 Yr

1,802

0

0

0

0

12,169

0

2230

130

Marco's Pizza

04/30/29

2 - 5 Yr

1,800

0

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

-

2,081

0

0

13,246

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

2 - 5 Yr

1,233

0

0

0

0

0

0

08/31/22

-

1,202

0

24,761

0

0

0

0

-

-

1,500

30,000

0

0

0

0

0

30,005

35,400

59,134

29,052

26,225

12,169

0

2240

120

Savoury Deli

2240

130

Vacant Total Tenant Improvements

32

VACANT SPACE MONTHS DOWNTIME

RENT DOWNTIME

BLDG

SUITE

TENANT NAME

LEASE EXP

YEAR 1

YEAR 2

AREA

YR-1

YR-2

YR-3

YR-4

YR-5

YR-6

JUN 23

JUN 24

JUN 25

JUN 26

JUN 27

JUN 28

2200

100

Streets of London Pub

01/31/25

0

0

4,240

0

0

0

0

0

0

2200

110

Pure-N-Fit Training

06/30/23

0

0

1,760

0

6,345

0

0

0

0

2210

100

Tsuki Sushi

08/31/23

0

0

2,600

0

12,051

0

0

0

0

2210

110

Alterations & Design

12/31/22

0

0

900

3,150

0

0

0

0

0

2210

120

State Farm Insurance

04/30/22

0

0

1,083

0

0

4,021

0

0

0

2210

130

Maximize Chiropractic

04/30/25

0

0

1,400

0

0

5,198

0

0

0

2220

100

Panda Express

09/30/23

0

0

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

0

0

1,600

0

0

0

6,993

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

0

0

2,400

0

0

0

11,801

0

0

2230

100

Great Clips

05/31/24

0

0

1,202

0

4,952

0

0

0

0

2230

110

OneMain Financial

02/28/23

0

0

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

0

0

1,802

0

0

0

0

7,099

0 0

2230

130

Marco's Pizza

04/30/29

0

0

1,800

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

0

0

2,081

0

0

8,831

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

0

0

1,233

0

0

0

0

0

0

08/31/22

0

10

1,202

0

21,060

0

0

0

0

-

12

0

1,500

31,500

0

0

0

0

0

30,005

34,650

44,408

18,051

18,795

7,099

0

2240

120

Savoury Deli

2240

130

Vacant Total Rent Downtime

Vacant space downtime is at 100% of new lease terms.

Existing tenants and second term expirations assumes market rollover assumptions.

33

PROFORMA | GALLELLI REAL ESTATE

NNN DOWNTIME

VACANT SPACE MONTHS

BLDG

SUITE

TENANT NAME

LEASE EXP

2200

100

Streets of London Pub

2200

110

Pure-N-Fit Training

2210

100

Tsuki Sushi

08/31/23

YR-1

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

0

0

0

0

3,981

0

5,881

0

YEAR 1

YEAR 2

AREA

01/31/25

0

0

4,240

06/30/23

0

0

1,760

0

0

2,600

0

JUN 23

YR-5 JUN 27

YR-6 JUN 28

0

0

0

0

0

0

0

0

0

2210

110

Alterations & Design

12/31/22

0

0

900

1,987

0

0

0

0

0

2210

120

State Farm Insurance

04/30/22

0

0

1,083

0

0

2,518

0

0

0

2210

130

Maximize Chiropractic

04/30/25

0

0

1,400

0

0

3,255

0

0

0

2220

100

Panda Express

09/30/23

0

0

2,000

0

0

0

0

0

0

2220

105

Palladio Day Spa

12/31/25

0

0

1,600

0

0

0

3,814

0

0

2220

115

Ro Co Wine & Spirits

10/31/25

0

0

2,400

0

0

0

5,722

0

0

2230

100

Great Clips

05/31/24

0

0

1,202

0

2,364

0

0

0

0

2230

110

OneMain Financial

02/28/23

0

0

1,202

0

0

0

0

0

0

2230

120

PG&E

12/31/26

0

0

1,802

0

0

0

0

3,568

0

2230

130

Marco's Pizza

04/30/29

0

0

1,800

0

0

0

0

0

0

2240

100

Yolo Federal Credit Union

06/30/24

0

0

2,081

0

0

4,627

0

0

0

2240

105

Syndee's Pet Grooming

11/30/29

0

0

1,233

0

0

0

0

0

0

2240

120

Savoury Deli

08/31/22

0

10

1,202

0

13,594

0

0

0

0

2240

130

Vacant

-

12

0

1,500

19,866

0

0

0

0

0

30,005

21,853

25,819

10,399

9,536

3,568

0

Total NNN Downtime

34

PROJECTED NNN INCOME (EXCLUDING PROPERTY MANAGEMENT FEE) BLDG

SUITE

TENANT NAME

AREA

PAD PRO RATA SHARE

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

2200

100

Streets of London Pub

4,240

14.13%

44,446

45,572

46,728

2200

110

Pure-N-Fit Training

1,760

5.87%

18,449

18,917

19,397

2210

100

Tsuki Sushi

2,600

8.67%

27,254

27,945

28,654

2210

110

Alterations & Design

900

3.00%

9,434

9,673

2210

120

State Farm Insurance

1,083

3.61%

11,353

2210

130

Maximize Chiropractic

1,400

4.67%

14,675

2220

100

Panda Express

2,000

6.67%

20,965

21,496

2220

105

Palladio Day Spa

1,600

5.33%

16,772

2220

115

Ro Co Wine & Spirits

2,400

8.00%

25,158

2230

100

Great Clips

1,202

4.01%

12,600

2230

110

OneMain Financial

1,202

4.01%

12,600

2230

120

PG&E

1,802

6.01%

18,889

2230

130

Marco's Pizza

1,800

6.00%

18,868

2240

100

Yolo Federal Credit Union

2,081

6.94%

21,814

2240

105

Syndee's Pet Grooming

1,233

4.11%

12,925

2240

120

Savoury Deli

1,202

4.01%

12,600

2240

130

Vacant

1,500

5.00%

4647

100

Mattress Firm

3,319 30,005

Total Sq. Ft. Inline / CAM

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

47,915

49,133

52,720

19,889

20,395

21,884

29,382

30,129

32,328

9,919

10,171

10,429

11,191

11,640

11,936

12,239

12,550

13,466

15,047

15,429

15,821

16,223

17,407

22,042

22,601

23,176

24,868

17,197

17,633

18,081

18,541

19,894

25,796

26,450

27,122

27,811

29,841

12,919

13,247

13,583

13,929

14,946

12,919

13,247

13,583

13,929

14,946

19,368

19,860

20,364

20,881

22,406

19,347

19,837

20,341

20,858

22,381

22,367

22,934

23,517

24,114

25,875

13,252

13,589

13,934

14,288

15,331

12,919

13,247

13,583

13,929

14,946

15,724

16,122

16,531

16,951

17,382

18,651

43.30%

27,959

28,652

29,363

30,093

30,841

31,908

100.00%

314,526

322,498

330,680

339,077

347,696

373,079

35

PROFORMA | GALLELLI REAL ESTATE

PROJECTED NNN / WITH RECOVERY MANAGEMENT & ADMIN FEE RECOVERY

BLDG

SUITE

TENANT NAME

AREA

ADMIN FEE

YR-1 JUN 23

YR-2 JUN 24

YR-3 JUN 25

YR-4 JUN 26

YR-5 JUN 27

YR-6 JUN 28

2200

100

Streets of London Pub

4,240

15.0%

56,155

57,541

59,139

60,649

62,245

66,600

2200

110

Pure-N-Fit Training

1,760

15.0%

23,310

23,885

24,548

25,175

25,838

27,645

2,600

15.0%

34,435

35,284

36,265

37,191

38,169

40,840

900

15.0%

11,920

12,214

12,553

12,874

13,212

14,137

2210

100

Tsuki Sushi

2210

110

Alterations & Design

2210

120

State Farm Insurance

1,083

15.0%

14,343

14,697

15,106

15,491

15,899

17,011

2210

130

Maximize Chiropractic

1,400

15.0%

18,542

18,999

19,527

20,026

20,553

21,991

2220

100

Panda Express

2,000

5.0%

21,163

21,700

22,251

22,817

23,398

25,097 25,132

2220

105

Palladio Day Spa

1,600

15.0%

21,190

21,714

22,317

22,887

23,489

2220

115

Ro Co Wine & Spirits

2,400

15.0%

31,786

32,570

33,475

34,330

35,233

37,698

2230

100

Great Clips

1,202

0.0%

13,843

14,185

14,579

14,951

15,344

16,418

2230

110

OneMain Financial

1,202

15.0%

15,919

16,312

16,765

17,194

17,646

18,880

2230

120

PG&E

1,802

5.0%

19,360

19,853

20,359

20,878

21,411

22,951

2230

130

Marco's Pizza

1,800

15.0%

22,419

22,978

23,626

24,237

24,883

26,550

2240

100

Yolo Federal Credit Union

2,081

10.0%

26,363

27,013

27,764

28,473

29,222

31,266

2240

105

Syndee's Pet Grooming

1,233

15.0%

16,330

16,733

17,198

17,637

18,101

19,367

2240

120

Savoury Deli

1,202

15.0%

15,919

16,312

16,765

17,194

17,646

18,880

2240

130

1,500

15.0%

Vacant Total NNN/Mgmt/Admin Fee

30,005

19,866

20,356

20,922

21,456

22,021

23,561

382,861

392,347

403,159

413,458

424,310

454,025

Admin fee includes CAM, property management, taxes and insurance unless otherwise stated in lease summaries.

36

37

Adam Rainey | Associate CA DRE # 02113888 | 916 784 2700 | ARainey@Gallellire.com Gary Gallelli | Principal CA DRE # 01099383 | 916 784 2700 | Gary@Gallellire.com

Gallelli Real Estate 3005 Douglas Blvd #200 Roseville, CA 95661 916 784 2700 www.GallelliRE.com

Kristopher Krise | Capital Markets Advisor CA DRE # 01910354 | 916 784 2700 | KKrise@Gallellire.com Gallelli Real Estate 3005 Douglas Blvd, Ste 200, Roseville, CA 95661 916 784 2700 | GallelliRE.com