G R O U P

BRANDON MICHAELS

OFFERING MEMORANDUM

2200 E. HIGHLAND AVENUESAN BERNARDINO, CA 92404

PROPERTY INFORMATION

Address 2200 E. Highland Avenue, San Bernardino, CA 92404

Property Type Retail

Gross Square Feet 4,020 SF

Lot Size 19,234 SF

APN 0285-176-17

Year Built 1974

Type of Ownership Fee Simple

FINANCIAL INFORMATION

Asking Price $395,000

Price/SF $98.26

ProForma CAP Rate 12.21%

Price/SF (lot) $20.54

Marcus & Millichap has been selected to exclusively market for sale 2200 E. Highland Avenue, 4,020 SF free-standing drive-through pad situated on 19,234 SF of land in San Bernardino, CA. The subject property is ideally located directly off the Interstate 201 Foothill Freeway at the East Highland Avenue on/off-ramp, with excellent freeway visibility.

2200 E. Highland Avenue is located along East Highland Avenue, the main retail thoroughfare through San Bernardino. There are a number of national tenants in the immediate area, including Rite Aid, Chase Bank, Del Taco, Target, El Pollo Loco, Bank of America, Walmart Neighborhood Market, Taco Bell, IHOP, Weinerschnitzel, Walgreens, Stater Brothers, and Wells Fargo.

2210 E. Highland Avenue offers a unique Southern California value add opportunity or owner-use opportunity. 2210 E. Highland has excellent visibility with 125 of frontage. Th property is being offered at a low price per square foot of $98.26, priced well below replacement costs.

Property Overview Property OverviewHIGHLIGHTS

EXCLUSIVELY LISTED BY

PLAT MAP

EXECUTIVE SUMMARY

• 4,020 SF free-standing drive-through pad

• 19,233 SF of land with plenty of parking

• Unique value-add or owner-user opportunity

• Located directly off the 210 Freeway at the East Highland on/off ramp

• Multiple national tenants in the immediate area including Rite Aid, Dollar Tree, 99 Cents Only Store, Del Taco, Target, and more.

• East Highland Avenue is a main east west thoroughfare through San Bernardino

• Excellent visibility on Highland Avenue with 125 feet of frontage

• Includes a large conference room, private executive office, full kitchen, walk in bank vault, and drive-through window,

BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794bmichaels@marcusmillichap.comLicense: CA #01434685

TENANT SF % RENT/MONTH RENT/MO/SF

Vacant 4,020 100 $4,020 $1.00

Total 4,020 100% $4,020

INCOME AND EXPENSE PROFORMA

Scheduled Lease Income: $48,240

NNN Charges: $9,963

Effective Gross Income: $58,203

Vacancy: -

Expenses: $9,963

Net Operating Income: $9,963

EXPENSES ANNUAL PER SF

Taxes 1.25% $4,938 $1.23

Insurance $1,407 $0.35

Trash $1,608 $0.40

Repairs & Maintenance $2,010 $0.50

Total $9,963 $2.48

ANNUALIZED OPERATING DATA

RENT ROLL

Sales Price $395,000

ProForma CAP Rate 12.21%

Price/SF (bldg) $98.26

Price/SF (land) $20.54

PRICING

Financial Analysis

2200 East Highland Avenue

ADDRESS SALES PRICE PRICE/SF BLDG SF LOT SF CLOSE OF ESCROW

1 25740 Base Line Street $200,000.00 $83.33 2,400 8,398 7/7/2016

2 2950 Del Rosa Avenue $1,630,000.00 $118.27 13,782 50,194 6/2/2016

3 1499 East Highland Avenue $2,500,000.00 $80.84 30,927 164,657 3/3/2017

4 2045 East Highland Avenue $3,395,000.00 $77.39 43,870 154,682 6/22/2017

5 2600 East Highland Avenue $585,000.00 $104.46 5,600 20,399 2/28/2017

Average $1,662,000.00 $92.86 19,316 79,666

$83.33

$118.27

$80.84 $77.39

$104.46

$92.86

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

25740 Base LineStreet

2950 Del RosaAvenue

1499 East HighlandAvenue

2045 East HighlandAvenue

2600 East HighlandAvenue

Average

25740 Base Line StreetSales Price $200,000.00Price/SF $83.33

2045 East Highland AvenueSales Price $3,395,000.00 Price/SF $77.39

2950 Del Rosa AvenueSales Price $1,630,000.00 Price/SF $118.27

2600 East Highland AvenueSales Price $585,000.00 Price/SF $104.46

1499 East Highland AvenueSales Price $2,500,000.00 Price/SF $80.84

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SALES COMPARABLES PRICE/SF

Sales Comparables

SAN BERNARDINO

San Bernardino is a city located in the Riverside-San Bernardino metropolitan area (sometimes called the "Inland Empire"). It serves as the county seat of San Bernardino County, California, United States. As one of the Inland Empire's anchor cities, San Bernardino spans 81 square miles on the floor of the San Bernardino Valley. San Bernardino is the 17th-largest city in California and the 100th-largest city in the United States.

California State University, San Bernardino is located in the northwestern part of the city. The university also hosts the Coussoulis Arena. Other attractions in San Bernardino include ASU Fox Theatre, the McDonald's Museum, which is located on the original site of the world's first McDonald's, California Theatre, the San Bernardino Mountains, and San Manuel Amphitheater, the largest outdoor amphitheater in the United States. In addition, the city is home to the Inland Empire 66ers baseball team; they play their home games at San Manuel Stadium in downtown San Bernardino.

ECONOMY

Government, retail, and service industries dominate the economy of the city of San Bernardino. Government was both the largest and the fastest-growing employment sector, reaching close to 20,000 jobs in 2004. Other significant sectors were retail (16,000 jobs) and education (13,200 jobs).

The city’s location close to the Cajon and San Gorgonio passes, and at the junctions of the I-10, I-215, and SR-210 freeways, positions it as an intermodal logistics hub. The city hosts the Burlington Northern and Santa Fe Railway’s intermodal freight transport yard, the Yellow Freight Systems’ cross-docking trucking center, and Pacific Motor Trucking. Large warehouses for Kohl’s, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport.

EMPLOYER # OF EMPLOYEES

California State University, San Bernardino 2,500+Caltrans District 8 1,000+City of San Bernardino 1,000+Community Hospital of San Bernardino 1,000+San Bernardino City Unified School District 1,000+San Bernardino County Sheriff's Department 1,000+San Bernardino County Superintendent of Schools 1,000+San Manuel Band of Mission Indians 1,000+Stater Bros. Markets 1,000+St. Bernardine Medical Center 1,000+Wells Fargo Home Mortgage 1,000+Omnitrans 500–999San Bernardino County Public Works 500–999San Bernardino Valley College 500–999

1 MILE 3 MILES 5 MILES

2014 Population 33,908 232,514 490,816

2014 Households 16,068 114,137 237,274

2014 Average Household Size 2.04 2.00 2.03

2014 Daytime Population 12,645 135,911 351,040

2014 Owner Occupied Housing Units 39.60% 30.67% 35.46%

2014 Renter Occupied Housing Units 60.40% 69.33% 64.54%

2014 Vacant 6.67% 3.13% 2.75%

2014 Median Household Income $68,433 $63,204 $67,968

2014 Per Capita Income $52,037 $49,968 $53,598

2014 Average Household Income $109,297 $101,237 $110,077

DEMOGRAPHICS

TOP EMPLOYERS

Area Overview Area Overview

EXCLUSIVELY LISTED BY

BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710bmichaels@marcusmillichap.comLicense: CA #01434685

G R O U P

BRANDON MICHAELS