US Bank - Citrus Heights, CA

U.S. BANK - CITRUS HEIGHTS, CA

JAMES CAPITAL ADVISORS, INC.

JAMES CAPITAL ADVISORS

MARKETING PACKAGE CONTENTS

PAGE

Investment Summary

03

Lease Summary

04

Retail Aerial

05

Site Plan

08

Rent Schedule

09

About the Brand

10

Location Overview

11

CONTACT INFORMATION

Ryan Sobel Senior Associate (424) 325-2613

ryan@jamescapitaladvisors.com

FINANCING TEAM

brad kraus Senior Director (424) 325-2653

brad.kraus@jamescapitaladvisors.com

JORGE GOMEZ Senior Associate (424) 325-2657

jorge.gomez@jamescapitaladvisors.com

02

U.S. BANK - CITRUS HEIGHTS, CA

INVESTMENT SUMMARY $

$8,575,000

%

5.59%

$

$479,140

PURCHASE PRICE

CAP RATE

NET OPERATING INCOME

Price / SF

$1,071.88

Rent / SF

$59.89

$

$5,145,000* LOAN OPTION AMOUNT

Buyer Equity

$3,430,000

(40%)

%

3.95%

Loan Amount

$5,145,000

(60%)

INTEREST RATE

Debt Service

($292,979)

%

60%

Pre-Tax Cash Flow

$186,161

Principle Reduction

($93,260)

Total Return

$279,421

CASH ON CASH RETURN YEAR 1

LOAN TO LIST PRICE

Amortization

30 Years

Term

10 Years

(5.43%)

(8.15%)

* As of 4/15/2020 Contact Our Financing Team for a Custom Quote.

Long-Term Lease - U.S. Bank has over 10 years of guaranteed term remaining on their lease.

Passive Landlord Investment - U.S. Bank is operating under a Absolute Net-Lease with no landlord responsibilities whatsoever.

Strong Credit Tenant - The tenant has an extremely secure S&P credit rating of A+.

Huge Hedge Against Inflation - The lease calls for 4% increases annually providing a hedge against inflation and significant rental growth.

Over-Sized Parcel - The building sits on a large 2.79 acre lot providing ample room for future redevelopment or additional development.

Long-Term Occupancy - U.S. Bank has been operating at this location for nearly 50 years creating a built in generational customer base.

03

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

LEASE SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built

U.S. Bank 6199 Sunrise Blvd Citrus Heights CA

Lease Type Type of Ownership

Absolute Net (NNN) Fee Simple

Insurance

Tenant Responsible

25 Years

Roof & Structure

Tenant Responsible

Commencement Date

7/29/1971

Lease Guarantor

Corporate

Lease Expiration

12/31/2030

8,000 SF

Term Remaining

10+ Years

2007

Tenant Responsible

Original Lease Term

95610

2.79 AC

Real Estate Taxes

Increases Options

4% Annually None

Company Name U.S. Bank Nat. Association Ownership Years in Business Number of Locations

Public 51 3,067

Hard Corner Location - U.S. Bank is located on the corner of Sunrise Boulevard and Greenback Lane with over 38,000 vehicles per day passing the site.

Dense Retail Corridor - Surrounding national retailers include Sprouts Farmers Market, Lowe’s, Target, Chipotle, Walmart Neighborhood Market, Starbucks, Michaels, Best Buy and dozens of others.

Out Parcel to Sunrise Mall - Sunrise Mall is one of the largest regional shopping malls in the area. It has been in operation since 1971 and is home to numerous national retailers.

Excellent Demographics - There are over 324,000 people living within a 5-mile radius of the property with average income exceeding $85,000.

Growing Trade Area - The immediate area has experienced over 8% population growth since 2010 with another 5% projected through 2024.

04

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

RETAIL AERIAL

05

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

RETAIL AERIAL

06

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

RETAIL AERIAL

07

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

SITE PLAN

08

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

RENT SCHEDULE

09

PERIOD

TERM

ANNUAL RENT

MONTHLY RENT

INCREASE

CAP RATE

1/1/2021 - 12/31/2021

Extended Term

$479,140.30

$39,928.36

-

5.59%

1/1/2022 - 12/31/2022

Extended Term

$498,305.70

$41,525.48

4%

5.81%

1/1/2023 - 12/31/2023

Extended Term

$518,237.93

$43,186.49

4%

6.04%

1/1/2024 - 12/31/2024

Extended Term

$538,967.45

$44,913.95

4%

6.29%

1/1/2025 - 12/31/2025

Extended Term

$560,526.15

$46,710.51

4%

6.54%

1/1/2026 - 12/31/2026

Extended Term

$582,947.19

$48,578.93

4%

6.80%

1/1/2027 - 12/31/2027

Extended Term

$606,265.08

$50,522.09

4%

7.07%

1/1/2028 - 12/31/2028

Extended Term

$630,515.68

$52,542.97

4%

7.35%

1/1/2029 - 12/31/2029

Extended Term

$655,736.31

$54,644.69

4%

7.65%

1/1/2030 - 12/31/2030

Extended Term

$681,965.76

$56,830.48

4%

7.95%

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

ABOUT THE BRAND U.S. Bancorp

U.S. Bancorp operates as a bank holding company, which through its subsidiary provides banking services. It provides a full range of financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services. The company also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage and leasing.

Its subsidiaries engage in the general banking business, principally in domestic markets. The company’s subsidiaries provides a wide range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. The Bancorp’s Commercial and consumer lending services are principally offered to customers within the Company’s domestic markets, to domestic customers with foreign operations and to large national customers focusing on specific targeted industries.

Its Lending services include traditional credit products as well as credit card services, leasing, financing and import & export trade, asset-backed lending, agricultural finance and other products.

The Bancorp’s Depository services include checking accounts, savings accounts and time certificate contracts. Ancillary services such as foreign exchange, treasury management and receivable lockbox collection are provided to corporate customers. The company’s bank and trust subsidiaries provide a full range of asset management and fiduciary services for individuals, estates, foundations, business corporations and charitable organizations. U.S. Bancorp was founded in 1929 and is headquartered in Minneapolis, MN. It has 3,106 branches and 4,842 ATMs, primarily in the Western and Midwestern United States, and has approximately 74,000 employees. The company also owns Elavon, a processor of credit card transactions for merchants and Elan Financial Services, a credit card issuer that issue credit card products to US Bank and other financial institutions.

10

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

LOCATION OVERVIEW

1. Downtown Sacramento Sacramento, CA 95814 16 MILES FROM SUBJECT PROPERTY

2. Sacramento McClellan Airport 3028 Peacekeeper Way, McClellan Park, CA 95652 8 MILES FROM SUBJECT PROPERTY

3. Folsom Lake 7755 Folsom-Auburn Rd, Folsom, CA 95630 7 MILES FROM SUBJECT PROPERTY

4. Folsom Zoo Sanctuary 403 Stafford St, Folsom, CA 95630 6.5 MILES FROM SUBJECT PROPERTY

5. Aerospace Museum 3200 Freedom Park Dr, McClellan Park, CA 95652 8.5 MILES FROM SUBJECT PROPERTY

6. Stones Gambling Hall 6510 Antelope Rd, Citrus Heights, CA 95621 4.5 MILES FROM SUBJECT PROPERTY

11

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

LOCATION OVERVIEW

01

02

downtown sacramento

mcclellan airport

folsom lake

The city’s political and financial hub with a busy dining and nightlife scene.

A privately owned public-use airport located six miles northeast of the central business district of Sacramento.

Folsom Lake State Recreation Area includes an 18,000-acre lake with several opportunities for outdoor activities.

04

12

03

05

06

folsom zoo sanctuary

aerospace museum

stones gambling hall

Operating since 1963, the zoo has been the home to hundreds of animals from squirrels and deer to tigers and bears.

With over 40 aircraft and an intriguing aerospace section, our museum explores the wonders of flight and technology.

Contemporary casino open 24/7 with Western-themed card rooms, plus American food & craft beers.

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

LOCATION OVERVIEW Citrus Heights, CA

Located in the heart of California’s capital region, Citrus Heights is an established community with an estimated population of 86,291. Citrus Heights is situated in northern Sacramento County and shares borders with Roseville (north), Orangevale (east), Fair Oaks (south) and Antelope/Foothill Farms (west).

Citrus Heights offers business-friendly environment with a solid base of small businesses, retail chains and food service establishments. With an ongoing commitment to providing high-quality, economical, responsive services to the local community, Citrus Heights is well-positioned for future economic development and redevelopment opportunities.

Despite its urban proximity, Citrus Heights maintains a small-town feel, providing a strong sense of community and belonging for residents. Residents demonstrate great pride in Citrus Heights and the community regularly gathers for celebrations and events.

Sacramento, CA One of the most historic cities in California, Sacramento boasts an impressive array of landmarks, parks, amenities and other must-see points of interest. Sacramento is the fastest-growing major city in California, owing to its status as a notable financial center on the West Coast and as a major educational hub, home of California State University, Sacramento and University of California, Davis.

Similarly, Sacramento is a major center for the California healthcare industry, as the seat of Sutter Health, the world-renowned UC Davis Medical Center, and the UC Davis School of Medicine, and notable tourist destination in California, as the site of The California Museum, the Crocker Art Museum, the California State Railroad Museum, the California Hall of Fame, the California State Capitol Museum, and the Old Sacramento State Historic Park. Sacramento International Airport, located northwest of the city, is the city’s major airport. Sacramento is known for its evolving contemporary culture, dubbed the most “hipster city” in California.

13

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

DEMOGRAPHICS

POPULATION

14

1-Mile

3-Mile

5-Mile

2024 Projection

22,412

145,945

340,438

2019 Estimate

21,489

138,910

324,654

2010 Census

20,701

127,936

304,224

Growth ‘19 - ‘24

4.30%

5.06%

4.86%

Growth ‘10 - ‘19

3.81%

8.58%

6.72%

HOUSEHOLDS

1-Mile

3-Mile

5-Mile

2024 Projection

9,066

57,660

133,443

2019 Estimate

8,696

54,914

127,261

2010 Census

8,401

50,723

119,108

Growth ‘19 - ‘24

4.25%

5.00%

4.86%

Growth ‘10 - ‘19

3.51%

8.26%

6.85%

Average Income

$64,917

$83,509

$85,914

Median Income

$49,096

$64,143

$64,465

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

U.S. BANK - CITRUS HEIGHTS, CA

DEVELOPMENTS

Mitchell Farms

Construction on Watt Communities’ massive 260home development off Arcadia Drive and Fair Oaks Boulevard in Citrus Heights is anticipated to begin later this year, with completion of the first homes expected in early 2020. The 56-acre development, known as Mitchell Farms, will feature about 25 acres of open space parks and was approved by the Planning Commission and City Council last year.

Homes will be grouped in five general “villages,” with sizes ranging from around 1,400-square-feet to approximately 2,000-square-feet.. New streets will be constructed running through the development and connecting with Arcadia Drive and Fair Oaks boulevard.

Sunrise Mall Redevelopment

Within the next few months, a concept and specific plan for rethinking Sunrise Mall in Citrus Heights will begin to take shape. That process will take another step when the mall’s former Sears location will host a community workshop to start getting ideas for how best to use the mall’s 100-acre site. A critical step in Sunrise Mall’s future evolution will come this spring, when the city releases a market analysis of the site.

The study will look at potential alternative uses and how well those might do economically as well as suggest what its highest and best use would be. After that, the city will work on site design for the new mall concept, with a draft specific plan for the site due in the third quarter of this year. In June, work on an environmental impact report will get underway, with an eye toward the EIR and final specific plan being adopted and ready to put into action by the end of 2021. Some initial ideas include housing, office space, medical services, and experiential retail

15

6199 SUNRISE BLVD, CITRUS HEIGHTS, CA 95610

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation

by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

16

FOR INQUIRIES

PLEASE CONTACT ryan sobel Senior Associate

(424) 325-2613

ryan@jamescapitaladvisors.com CA RE Lic. 02005465

17