Home Depot Shadow AnchoredRetail Investment Opportunity

OFFERING MEMORANDUM

Stabilized Income & Expense Summary Rent RollOccupancy AnalysisTenant Overviews

Financial Overview19

Offering SummaryInvestment SummaryInvestment Highlights

Executive Summary3Local Map Site PlanPhysical DescriptionProperty Photos

Property Description7

Glendora OverviewLos Angeles County Overview

Area Overview13

Table of Contents

Exclusively Listed By

Senior Vice President

Retail Capital Markets

Lic. 01302079

Mobile +1 949 275 8807

Direct +1 949 724 5680

charley.simpson@colliers.com

Charley Simpson

Associate Vice President

Retail Capital Markets

Lic. 01987844

Mobile +1 760 685 6873

Direct +1 949 724 5640

caitlin.zirpolo@colliers.com

Caitlin Zirpolo

Associate Vice President

Retail Capital Markets

Lic. 02008809

Mobile +1 951 264 5994

Direct +1 949 724 5610

jordan.gomez@colliers.com

Jordan Gomez

Associate Vice President

Retail Capital Markets

Lic. 10401244229 NY

Mobile +1 917 515 9975

Direct +1 949 724 5650

david.maloy@colliers.

David Maloy

Executive Vice President

Retail Capital Markets

Lic. 01890271

Mobile +1 858 752 3078

Direct +1 949 724 5690

el.warner@colliers.com

El Warner

1331 S Lone Hi l l Avenue | Glendora, CA 1

Glendora, CA 917401331 S Lone Hill Avenue

GLENDORAMARKETPLACE

2 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 3

EXECUTIVEsummary

Offering Summary Investment Summary

Asking Price $15,250,000

Total GLA 22,046 SF

Occupancy 100%

In-Place NOI $824,440

Cap Rate 5.41%

Number of Tenants 9

Year Built 2001

Total Land Area 2.416 Acres

Financing No Existing Debt – Loan Quotes Available

Colliers Retail Capital Markets Team is pleased to present

the fee simple sale of a multi-tenant pad within Glendora

Marketplace, the dominant regional shopping center within

the Glendora community of east Los Angeles County.

Glendora Marketplace is a 500,000 SF retail development

located at the intersection of the 210 and 57 Freeways

(372,000 VPD). Strategically situated along Glendora’s major

retail corridor, Glendora Marketplace features a premier

lineup of nationally recognized brands which include Home

Depot, Sam’s Club, Kohl’s, AMC Theater, Aldi, Best Buy,

Barnes & Noble, Bed Bath & Beyond, 24 Hour Fitness and

many others. Shadow anchored by a high-performing Home

Depot and located at the entrance to this dominant regional

center, this investment offering is currently 100% occupied

by 9 quality tenants including Blaze Pizza, Fatburger, Verizon,

Gamestop, America’s Best and Ortho Mattress.

Glendora Marketplace is an exceptional opportunity to

acquire a stable cash flow with attractive growth in the

revenue from fixed annual increases and is being offered

free and clear of any debt. Combine this with historically low

interest rates which will generate strong leveraged returns for

many years to come.

Investment Highlights

1331 S Lone Hi l l Avenue | Glendora, CA 54 Col l iers International

• Strategically situated on the North West hard signalized corner of S Lone Hill Avenue and W Gladstone Street, which features major retailer brands such as Walmart Supercenter, Costco, Home Depot, Sam’s Club, Kohl’s, AMC Theater, Aldi, Best Buy, Barnes & Noble, Bed Bath & Beyond, 24 Hour Fitness and many others

• Prominently located at the heavily trafficked interchange of the 210 and 57 Freeways which see a combined 372,000 VPD

Irreplaceable Hard-Corner Location

• With long term leases and increasing cash flow, the NOI is scheduled to grow $327,462 (39%) over the anticipated holding period, providing a good hedge against inflation

Stability of Income, 100% Leased

• Property features over 80% of national food and beverage, service and “daily needs” tenants which cater to the surrounding community and prove highly resistant to internet competition

Ecommerce Proof Tenancy

• Significant daily customer traffic from a very strong performing 115,000-square-foot freestanding Home Depot

• The pad sits at the entrance to the regions dominant commercial retail corridor and is surrounded by nearly 1,000,000 square feet of globally and nationally recognized retailers

Synergistic Surrounding Tenant Mix

• The 1-mile radius features 13,774 people with an Average Household Income of $106,780 per year

• The 3-mile radius features 112,538 people with an Average Household Income of $111,057 per year

• The 5-mile radius features 291,257 people with an Average Household Income of $103,161 per year

Affluent Trade Area

• With zero deferred maintenance, recent improvements on the roof, parking lot, exterior painting, landscape and tenant build-outs prevent a new investor from spending excess capital over the next 10-15 years as compared to older centers on the market

Institutional Quality

• Stabilized and 100% leased to NNN tenants, this investment features newly executed long-term leases plus options and high-quality tenant build-outs which will eliminate any near term leasing responsibility and out of pocket capital costs

Low Management Hassle

6 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 7

PROPERTYdescription

GLADSTONE STREET

LONE

HIL

L AV

ENUE

8 Col l iers International

Site PlanTenant Roster

Unit Tenant SF % of GLA

100 Blaze Pizza 2,100 9.5%

110 Fatburger 1,500 6.8%

120 Saj Bakery 1,440 6.5%

130 America's Best 3,390 15.4%

150 Han Brothers 2,250 10.2%

160 Gamestop 2,000 9.1%

170 Verizon 4,246 19.3%

185 Dentist 1,620 7.3%

200 Ortho Mattress 3,500 15.9%

TOTALS 22,046 100.0%

2,100 SF

1,500 SF

1,440 SF

3,390 SF

2,250 SF

2,000 SF

4,246 SF

1,620 SFLONE HILL DENTAL

3,500 SF

1331 S Lone Hi l l Avenue | Glendora, CA 9

1

2

3

4 5

76

1

2

3

4

5

6

7

210 FREEWAY 245,000 VPD

57 FREEWAY 127,000 VPD

10 Col l iers International

Physical Description

AddressGlendora Marketplace1331 S Lone Hill Avenue, Glendora, CA 91740

Cross StreetS Lone Hill Ave (35,110 VPD)W Gladstone St (11,952 VPD

Square Footage (GLA)

±22,046

Land Area 105,243 SF (2.416 Acres)

APN 8642-020-043

Year Built /Renovated

2001/2018

Type ofOwnership Fee Simple

Parcel One Parcel

Zoning SP-GC (Glendora Commercial Specific Plan)

Parking Spaces 102

Parking Ratio 4.63:1,000

The Property is strategically located at the heavily trafficked interchange of the 210 and 57 Freeways with convenient access from both the Lone Hill Avenue & Auto Centre Drive on/off ramps.

The pad is located at the hard-signalized corner of the regions dominant commercial retail corridor and is surrounded by nearly 1,000,000 square feet of globally and nationally recognized retailers.

Glendora and the surrounding Eastern San Gabriel Valley communities provide a strong residential base with approximately 291,257 people living within a five-mile radius with an average household income of $103,161 and average home value of $567,057.

The premier shopping destination for a dozen major Universities & Colleges including Azusa Pacific University, Cal Poly Pomona, La Verne University and The Claremont Colleges with a total enrollment of over 130,000 students enrolled year round.

Glendora is an affluent, densely populated community with nearly 400 new units currently under construction.

The Subject is located within the established Eastern San Gabriel Valley residential & commercial community of Glendora, California.

Location Summary

1331 S Lone Hi l l Avenue | Glendora, CA 11

THE CLAREMONT COLLEGES 5 UNDERGRADUATE SCHOOLS

2 GRADUATE SCHOOLS7,750 STUDENTS ENROLLED

UNIVERSITY OF LA VERNE8,159 STUDENTS ENROLLED

CAL POLY POMONA UNIVERSITY25,894 STUDENTS ENROLLEDMT. SAN ANTONIO COLLEGE

61,962 STUDENTS ENROLLED

CITRUS COLLEGE20,002 STUDENTS ENROLLED

AZUSA PACIFIC UNIVERSITY10,095 STUDENTS ENROLLED

TOTAL POPULATION (2019 ESTIMATE)

HOUSEHOLD INCOME(ESTIMATE AVERAGE)

1

MILE

13,774

$106,780

3

MILES

112,538

$111,057

5

MILES

291,257

$103,161

12 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 13

AREAoverview

14 Col l iers International

Glendora Overview Situated in the eastern portion of Los Angeles County, Glendora is located at the base of the scenic San Gabriel Mountains, approximately 23 miles east of downtown Los Angeles. The city boasts convenient access to major commercial, cultural, educational and recreational areas within Southern California.

With more than 50,000 residents, Glendora is an appealing city to live, work and play, with excellent public private schools, family-friendly parks, extensive community services and one of the lowest crime rates in Los Angeles County. The area’s thriving business community features owner-operated retail stores in its downtown “Village” on one end of the spectrum, as well as corporate headquarters for major domestic and international firms, such as Rain Bird Sprinkler Manufacturing Company and the National Hot Rod Association.

Quality education is a focus in the community, which offers access to both public and private schools. According to state testing results, Glendora High School students scored far above state averages in reading, writing, and math. Furthermore, a recent graduate follow-up survey showed that approximately 96 percent of Glendora High School graduates go on to higher education.

Glendora is considered a haven from the fast-paced city lifestyle of the Los Angeles metropolitan area. With plenty of curbside appeal, the homes, which range from quaint turn-of-the-century cottages to prestigious executive hillside estates, make it one of the most attractive residential communities in Southern California.

Demographics

Population 1 Mile 3 Miles 5 Miles

2019 Estimate 13,774 112,538 291,257

2024 Projection 14,122 115,419 299,169

Growth 2019-2024 2.53% 2.56% 2.72%

Growth 2010-2019 2.99% 3.76% 4.33%

Households 1 Mile 3 Miles 5 Miles

2019 Estimate 4,831 39,015 91,779

2024 Projection 4,964 40,048 94,441

Growth 2019-2024 2.75% 2.65% 2.90%

Growth 2010-2019 3.56% 3.91% 4.66%

Income/Home Value 1 Mile 3 Miles 5 Miles

Average Household Income $106,780 $111,057 $103,161

Median Home Value $542,834 $599,986 $567,057

1331 S Lone Hi l l Avenue | Glendora, CA 15

16 Col l iers International

Los Angeles County OverviewLos Angeles County is the most populous county in the United States, with more than 10 million inhabitants as of 2018. As such, it is the largest non–state level government entity in the United States. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion—larger than the GDPs of Belgium, Norway, and Taiwan. It has 88 incorporated cities and many unincorporated areas and, at 4,083 square miles (10,570 km2), it is larger than the combined areas of Delaware and Rhode Island. The county is home to more than one-quarter of California residents and is one of the most ethnically diverse counties in the U.S. Its county seat, Los Angeles, is also California’s most populous city and the nation’s second largest city with about 4 million people.

Major Employers Demographics | Los Angeles County

Employer # of Employees

County of Los Angeles 107,400

Los Angeles Unified School District 104,300

UCLA 65,600

City of Los Angeles (inc. DWP) 61,900

GSA (non-DOD) 43,600

Kaiser Permanente 37,400

State of California (non-education) 29,800

USC 21,600

Northrop Grumman 16,600

Providence Health 15,900

Population

2019 Estimate 10,255,707

2024 Projection 10,565,342

Growth 2019-2024 3.02%

Growth 2010-2019 4.45%

Households

2019 Estimate 3,389,819

2024 Projection 3,494,694

Growth 2019-2024 3.09%

Growth 2010-2019 4.58%

Household Income

Average Household Income $99,923

Median Housing Value $615,514

1331 S Lone Hi l l Avenue | Glendora, CA 17

MOST POPULOUS COUNTY IN THE NATION

LOS ANGELES COUNTY

1#

RESIDENTS

OF CALIFORNIA

TO MORE THANHOME

MILLION

INHABITANTS AS OF 2018

18 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 19

FINANCIALoverview

In-Place Income & Expense Summary Rent Roll

20 Col l iers International

In-Place

Income Total $/SF

Rental Income $879,764 $39.91

Other Income (Signage) $6,000 $0.27

Expense Reimbursements $222,786 $10.11

Vacancy Factor (5%) ($55,127) ($2.50)

Effective Gross Income $1,053,422 $47.78

Expenses Total $/SF

Real Estate Taxes $128,200 $5.82

Property Insurance $12,607 $0.57

CAM/R&M $61,875 $2.81

Management $26,300 $1.19

EGI (%) 2.50%

Operating Expenses $228,981 $10.39

Net Operating Income $824,440 $37.40

Operating Expense Ratio 22%

Proposal Valuation Summary

Offering List Price

Sale Price $15,250,000

Price PSF $692

Investment Returns List Price

In Place Cap Rate 5.41%

Premise List Price

In Place Income $824,440

Building SF 22,046

Unit # Tenant Lease Start

Lease End

Square Feet

% of GLA

Contract Rental Rate Rent Per SFRent Increases Options

Year Month Year Month

100 Blaze Pizza Mar-18 Feb-28 2,100 9.5% $100,800 $8,400 $48.00 $4.00 12% increases every 5 years 3x5 years

110 Fatburger Sep-18 Sep-28 1,500 6.8% $73,520 $6,127 $49.01 $4.08 3% annual increases 2x5 years

120 Saj Bakery Dec-18 Dec-28 1,440 6.5% $71,957 $5,996 $49.97 $4.16 4% annual increases 2x5 years

130 America's Best Jun-17 Jun-27 3,390 15.4% $132,210 $11,018 $39.00 $3.25 10% increases every 5 years 2x5 years

150 Han Brothers Sep-10 Jan-22 2,250 10.2% $71,414 $5,951 $31.74 $2.64 3% annual increases 1x5 years

160 Gamestop Sep-04 Jan-22 2,000 9.1% $79,560 $6,630 $39.78 $3.32 2% annual increases 1x3 years

170 Verizon Oct-00 Mar-22 4,246 19.3% $171,491 $14,291 $40.39 $3.37 3% annual increases 2x5 years

185 Dentist Jan-06 Sep-21 1,620 7.3% $58,339 $4,862 $36.01 $3.00 3% annual increases 3x5 years

200 Ortho Mattress Sep-00 Dec-21 3,500 15.9% $120,473 $10,039 $34.42 $2.87 4% increases every 30 months 2x5 years

Totals 22,046 100.0% $879,764 $73,314 $39.91 $3.33

1331 S Lone Hi l l Avenue | Glendora, CA 21

* Rent rol l includes rent increases thru end of 2020

22 Col l iers International

Occupancy Analysis

Tenant Name In Place Rent % of Income Expiration Date

Retail

Gamestop $79,560 9.04% Jan-22

Verizon $171,491 19.49% Mar-22

Ortho Mattress $120,473 13.69% Dec-21

Subtotal/Average $371,524 42.23%

Service

Han Brothers $71,414 8.12% Jan-22

America's Best $132,210 15.03% Jun-27

Dentist $58,339 6.63% Sep-21

Subtotal/Average $261,963 29.78%

Restaurants

Blaze Pizza $100,800 11.46% Feb-28

Fatburger $73,520 8.36% Sep-28

Saj Bakery $71,957 8.18% Dec-28

Subtotal/Average $246,277 27.99%

Total $879,764 100% 100%

SERVICES30%

RETAIL42%

RESTAURANTS28%

Rent Breakdown

Rollover AnalysisTenant Profile Analysis

1331 S Lone Hi l l Avenue | Glendora, CA 23

100%

90%

80%

70%

60%

50%

40%30%

20%

10%

0%321 4 5 6 7 8 9 10 11

YEAR

ANNUAL % OF TOTAL AGGREGATE % OF TOTAL

24 Col l iers International 1331 S Lone Hi l l Avenue | Glendora, CA 25

Tenant Overviews

Blaze Pizza LLC is a Pasadena, California-based chain within the fast-casual dining restaurants category. Founded in 2011 by Elise and Rick Wetzel of Wetzel’s Pretzels, Blaze Pizza was modeled after the Chipotle concept as a made-to-order approach to serving customers. Blaze Pizza took the top spot as America’s overall favorite fast food pizza in a recent 2019 survey.

Fatburger Inc. is an American fast casual restaurant chain. Its tagline is The Last Great Hamburger Stand. While it is a fast food restaurant, the food is cooked and made to order. Some Fatburger restaurants have a liquor license, as well as Fat Bars.

America’s Best Contacts & Eyeglasses, Inc. is a discount provider of eye examinations, eyeglasses and contact lenses, with over 700 retail locations in the United States as of 2019. Headquartered in metro Atlanta, the company operates several of the highest-volume eyeglass manufacturing labs in the country.

Blaze Pizza GameStop Corp. is the largest U.S. retailer of new and used games, hardware, entertainment software, and accessories. The company boasts roughly 3,800 GameStop, EB Games, and Micromania branded stores in the U.S. and about 2,000 stores in Europe, Australia, and Canada.

GameStop

FatburgerVerizon Communications is the #1 wireless phone service in the US (ahead of rival AT&T), serving more than 118 million connections. Verizon’s wireline unit provides local telephone, long-distance, internet access, corporate networking and digital TV services to consumers, carriers, business, and government customers.

Verizon

America’s Best Contacts & Eyeglasses Ortho Mattress is an American mattress and bedding company with retail and manufacturing headquarters in La Mirada, California. It was founded in 1957 in Gardena, California. Presently, Ortho Mattress has more than 70 stores throughout Los Angeles, Orange, San Diego, Ventura and Santa Barbara counties and employs approximately 240 people.

Ortho Mattress

2011Year Founded

1952Year Founded

1997Year Founded

300No. of Locations

157No. of Locations

+700No. of Locations

$12.3 MAnnual Sales

1996Year Founded

±5,700No. of Locations

$8.2 BAnnual Sales

$29.6 MAnnual Sales

1983Year Founded

±2,330No. of Locations

$130 BAnnual Sales

$167.3 MAnnual Sales

1957Year Founded

±70No. of Locations

$7 MAnnual Sales

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Irvine, CA 92614 | United States colliers.com/greaterlosangeles

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved.

Senior Vice President Retail Capital MarketsLic. 01302079Mobile +1 949 275 8807Direct +1 949 724 5680charley.simpson@colliers.com

Charley Simpson

Associate Vice President Retail Capital MarketsLic. 01987844Mobile +1 760 685 6873Direct +1 949 724 5640caitlin.zirpolo@colliers.com

Caitlin Zirpolo

Associate Vice President Retail Capital MarketsLic. 02008809Mobile +1 951 264 5994Direct +1 949 724 5610jordan.gomez@colliers.com

Jordan Gomez

Associate Vice President Retail Capital MarketsLic. 10401244229 NYMobile +1 917 515 9975Direct +1 949 724 5650david.maloy@colliers.com

David Maloy

Executive Vice President Retail Capital MarketsLic. 01890271Mobile +1 858 752 3078Direct +1 949 724 5690 el.warner@colliers.com

El Warner