OFFERING MEMORANDUM

NILES RIDGE PLAZA3900 NILES STREETBAKERSFIELD | CALIFORNIA

THIS IS A CONFIDENTIAL MEMORANDUM intended solely for your own limited use in considering whether to pursue negotiations to purchase Niles Ridge Plaza (the“Property”) owned by the owner (the “Owner”). The Owner has Pacific Commercial Realty Advisors|Cushman and Wakefield (“Brokers”) as the exclusive sales brokers tosell the Property. No other agent or broker is authorized to offer the Property unless and until that agent or broker has executed a written agreement with Brokers and thatagreement has been executed by their interested purchaser.

This confidential memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Brokers. Although thisconfidential memorandum has been reviewed by representatives of the Owner, it does not purport to be all-inclusive or to contain all of the information which a prospectivepurchaser may desire. Neither the Owner nor Brokers, nor any of their partners, officers, employees or agents have independently verified the information contained hereinand they are not responsible for any errors or inaccuracies in the information. No representation or warranty, express or implied, is made as to the accuracy orcompleteness of this confidential memorandum or any of its contents, or any other written or oral communication transmitted to a prospective purchaser in the course of itsevaluation of the proposed sale of the Property. There is no representation as to the environmental condition of the Property.

You agree that the memorandum and its contents are confidential, that you will hold and treat it in confidence and that you will not disclose this memorandum or itscontents to any other firm or entity without prior written authorization. Photocopying or other duplication is prohibited. You will use this confidential memorandum only forthe purpose of evaluating the possible acquisition of the Property. All prospective purchasers agree that they will conduct their own independent investigation of thosematters which they deem appropriate in order to evaluate this offering.

Owner and Brokers expressly reserve the right at their sole discretion to reject any or all proposals, offers, or expressions of interest in the Property and to terminatediscussions with any party at any time with or without notice.

This confidential memorandum shall not be deemed a representation of the state of affairs of the Property or imply that there has been no change in the business or affairsof the Property since the date of preparation of this memorandum. The Property is submitted for sale subject to the right to makechanges in any of the terms without notice.

NILES RIDGE PLAZABAKERSFIELD | CALIFORNIA

INVESTMENT ADVISORS

VINCENT ROCHESenior Director | PrincipalT +1 661 633 3817vincent.roche@paccra.comCA RE #01155079

DUANE KEATHLEYSenior Director | PrincipalT +1 661 633 3816duane.keathley@paccra.comCA RE #00935011

TABLE OF CONTENTS

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EXECUTIVESUMMARY

PROPERTYDESCRIPTION

FINANCIAL ANALYSIS

MARKETOVERVIEW

JOSH SHERLEYDirectorT +1 661 633 3840josh.sherley@paccra.comCA RE #01876855

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OFFERING TERMS

$2,975,000

asking price

$230,643.48

NOI

7.75%

cap rate

11,223sf

total rentable area

77.8%

current occupancy

1.04 acres

total land area

EXECUTIVE SUMMARY

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Pacific Commercial Realty Advisors|Cushman & Wakefield are pleased to present the opportunity to acquire Niles Ridge Plaza, a shopping center located in Kern County in the city of Bakersfield. The offering consists of approximately 11,223sf of retail.

Situated on 1.04 acres of land, Niles Ridge Center is located at the intersection of Niles Street and Sterling Street in the Northeast quadrant of Bakersfield. Niles Street is a main east/west arterial serving Northeast Bakersfield.

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• Newer construction, built in 2009

• Located across street from two grocery anchored shopping centers anchored by Vallarta Supermarket and Food Maxx,

the primary grocery stores serving this area.)

• Located on Niles Street a major east/west arterial with over 17,500 cars per day

• Highly visible, situated at signalized intersection

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INVESTMENT HIGHLIGHTS

NEWER CONSTRUCTION

Center was constructed in 2009

TENANT MIX

Niles Ridge Plaza features a mixture of service and retail tenants that serve the surrounding residential area.

NILES STREET LOCATION

Located on Niles Street with excellent street visibility. Niles is a main east/west arterial.

EXCELLENT NEIGHBORING TENANTS

Located across from two grocery anchored shopping

centers anchored by Vallarta Supermarket and Food

Maxx, the primary grocery stores serving the area.

Other neighboring tenants include Fallas Discount

Stores, Aarons Rental, CVS and Dollar Tree.is area.)

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SUITE TENANT SF

100 T-Mobile USA 2,402

101 Vacant 1,298

102 Alex’s Barber Shop 1,000

103 Adriana’s Insurance 936

104 Coughy Shop Express 1,032

105 Vacant 1,192

106 & 107 Quickeroo Nutrition 2,277

108 Papa Murphy’s Pizza 1,086

TOTAL 11,223

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Niles Street

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2,402 Sq.Ft. 1,086 Sq.Ft.

Vacant1,298 Sq.Ft.

Vacant1,192 Sq.Ft.

CoughyShop Express1,032 Sq.Ft.936 Sq.Ft.

Alex’sBarber Shop1,000 Sq.Ft.

2,277 Sq.Ft.

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PROPERTY DESCRIPTION

LOCATION

Niles Ridge Plaza is located at the north east quadrant of Niles Street and Sterling Road in the City of Bakersfield in Kern County, California.

ADDRESS

3900 Niles StreetBakersfield, California 93306

ASSESSOR’S PARCELNUMBERS AND SITE AREA134-300-201.04 acres

SQUARE FOOTAGE

11,233 square feet

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FRONTAGE

290.4+ linear feet along Niles Street

YEAR BUILT

2009

TRAFFIC COUNTS

Approximately 13,621 cars daily on Niles Street and 3,915 daily on Sterling Road.

ACCESS

There are two entry points to the property. One on Niles Street offering right-in/right-out driveways and one on Sterling offering a right-in/right out left-in/left out driveway.

PARKING

The center provides striped surface parking for approximately 58 vehicles including 3 disabled accessible for a ratio of 5.16/1000.

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AREA AERIAL

Niles Street

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APN: 134-300-201.04 acres

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SUBJECT

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FINANCIAL ANALYSIS

$2,975,000

asking price

$230,643.48

NOI

7.75%

cap rate

11,233sf

total rentable area

77.8%

percentage leased

FINANCIAL SUMMARY

The following information is provided to assist investors in their initial underwriting:

• Rent Roll• Financial Analysis• Tenant Summary• Lease Comparables

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UNIT NAME S.F. MONTHLY RENT*

NNN ANNUAL

RENT*DEPOSIT

100 T-Mobile USA 2,402 $.55 0

101 Vacant 1,298 - -

102 Alex’s Barber Shop 1,000 $.55 $1,550.00

103 Adriana’s Insurance 936 $.55 $3,250.00

104 Coughy Shop Express 1,032 $.55 $6,000.00

105 Vacant 1,192 - -

106-107 Quickeroo Nutrition 2,277 $.55 $3,800.00

108 Papa Murphy’s Pizza 1,086 $.55 0

TOTALS 11,223 $21,063.40* $252,760.80*

RENT ROLL

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*Detail to be provided in response to all offers.

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SIS Base Rent $252,760.80

NNN Reimbursement (2018) $51,954.48

Gross Income $304,715.28

Operating Expenses $(74,071.80)

Net Operating Income $230,643.48

ROI 7.75%

FINANCIAL ANALYSIS

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Actual Income

Base Rent $293,952.00

NNN Reimbursement (2017) $63,916.08

Gross Income $357,868.08

Operating Expenses $(74,071.80)

Net Operating Income $283,796.28

ROI 10%

Stabilized Income

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TENANT PROFILES

Square Feet 2,402

% of Building NRA 21.4%

Annual Rent $89,280.00

Company Website www.t-mobile.com

NASDAQ TMUS

As America's Un-carrier, T-Mobile US, Inc. is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 69.6 million customers. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS.

Square Feet 1,086

% of Building NRA 9.67%

Annual Rent $24,528.00

Company Website www.papamurphys.com

NASDAQ FRSH

Papa Murphy's Holdings, Inc. (“Papa Murphy’s” or the “Company”) is a franchisor and operator of the largest Take ‘n’ Bake pizza brand in the United States, selling fresh, hand-crafted pizzas ready for customers to bake at home. The company was founded in 1981 and currently operates more than 1,500 franchised and corporate-owned fresh pizza stores in 39 states, Canada and United Arab Emirates. In addition to scratch-made pizzas, the Company offers a growing menu of grab 'n' go items, including salads, sides and desserts.

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Square Feet 2,300

% of Building NRA 20.28%

Annual Rent $35,880.00

Company Website www.nfiptn.com

Nutricion Fundamentals, Inc. was established in 1994 as a specialized grocery store focusing on supporting women, infants and children (families) participating in the WIC program. Nutricion Fundamentals, Inc. company brands include Prime Time Nutrition and Quickeroo.

Square Feet 936

% of Building NRA 8.34%

Annual Rent $18,045.60

Company Website www.adrianasinsurance.com

Adriana’s Insurance, licensed by the State of California and now to sell On-Line Auto Insurance in Texas, Arizona and Nevada – is the fastest growing insurance agency in Southern California. With over 20 years of experience and more than 60 Offices in Southern California.

108,258.96

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MARKETOVERVIEW

BAKERSFIELD OVERVIEWBakersfield is the retail trade center for Kern County’s 891,995 residents. Bakersfield is California’s 9th most populous city with over 379,000people. It ranks 6th in population and density growth, and is 1st in population and wealth growth in the state. The median age is 30.7,offering the right balance of young and older professionals.

BAKERSFIELD’S ECONOMYThe Bakersfield retail market is comprised of just over 13.1 million square feet (msf) of space (excluding the 1.15-msf valley Plaza RegionalMall) The 2016 year-end estimated vacancy rate recorded 12.7%, a slight up-tick from 2015.

Bakersfield reported over $8 Billion in retail sales in 2014 (More than any other city in LA County and Orange County besides Los Angeles.)The Bakersfield median household income is 5.5% higher than the nation’s.

KERN COUNTY’S ECONOMYLocated at the southern end of California’s Central Valley, Kern County consistently ranks among the top five most-productive agriculturalcounties in the U.S. and is one of the nation’s leading petroleum-producing counties. Kern County is geographically the center of California’spopulation, making it accessible to 38 million consumers. Because of its unique geographical positioning, Kern County has also become thedistribution center for some of the world’s largest companies.

Additionally, with more than 8,000 square miles, Kern offers everything from big city amenities to small town friendliness, along withoutstanding recreational opportunities and easy access to ocean, alpine, and desert.

DEMOGRAPHICS

1-Mile 3-Mile 5-Mile

2022 Projection 23,158 120,202 186,524

2017 Population 22,199 114,752 177,773

2010 Census 21,398 108,601 167,281

Growth 2017-2022 .9% .9% 1.0%

Growth 2000-2017 .9 1.4% 1.4%

1-Mile 3-Mile 5-Mile

2022 Projection 6,489 35,502 57,233

2017 Total Households 6,184 33,654 54,137

2010 Census 5,815 30,918 49,343

Growth 2017-2022 1.0% 1.1% 1.1%

Growth 2000-2017 .6% 1.2% 1.3%

1-Mile 3-Mile 5-Mile

2017 Average Household Income $61,005 $55,216 $52,720

2017 Median Household Income $51,820 $46,707 $44,480

2017 Est. Per Capita Income $17,018 $16,315 $16,200

Some Recent Headlines about Bakersfield and Kern County:

• Bakersfield Most Affordable Large Housing Market in California• Bakersfield #2 for Fastest Growing Millennial Population in U.S.• Kern County is Listed in the Top 10 for Fastest-Growing GDP’s.• Bakersfield MSA No. 2 For Most Diversified Large Metro Economy• Bakersfield #1 for Housing Affordability in California• Kern County #5 Metro in U.S. for Upward Mobility • Bakersfield No. 1 in Retail Growth in California • Bakersfield No. 1 in CA for retail job growth • Kern’s 110 Year Job Growth Among Highest in California• Kern is the #2 Oil-Producing County in the U.S.• Kern County Ranks #2 in Agriculture Production in the U.S. 17

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