sunrise village capital markets | investment …...• huge upside; possible grocery play to replace...

Sunrise VillageSWC Rosecrans Avenue & Euclid Avenue | Fullerton, California

Cap i t a l Marke t s | I n ve s tmen t P rope r t i e s

01 Executive Summary The Offering Investment Summary & Highlights

02 Property Description Demographics Regional Map Local Map Aerial Site Plan

03 Financial Analysis Executive Summary Assumptions Schedule of Prospective Cash Flow Financial Overview Rent Roll Lease Expiration Schedule TenantProfiles

04 Competitive Property Set Sales Comparables

05 Market Overview Demographic Summary Riverside - Market Overview

Table of Contents

For more information, contact:

Alan KruegerSenior Vice PresidentLic. 00880814+1 909 418 [email protected]

Matt BurnettFirst Vice PresidentLic. 01384566+1 909 418 [email protected]

Executive Summary

4 Sunrise Village

The Offering CBRE, Inc. is exclusively offering for sale a 83% leased 114,736-square-foot shopping center, anchored by CVS. Other tenants include Del Taco and Papa John’s Pizza in Fullerton, California.

Sunrise Village stretches block to block and is on the corner of Rosecrans Avenue and Euclid Avenue at the 91 Freeway exit.

The offering is located in an established neighborhood with average household income in excess of $125,000.

Investment SummaryADDRESS ......................SWC Rosecrans Ave. & Euclid Ave, Fullerton, CA

PURCHASE PRICE ......................................................................... Unpriced

CURRENT OCCUPANCY .......................................................................83%

GROSS LEASABLE AREA (GLA) .......................................... ±114,736 Sq. ft.

LOT SIZE ............................................. (19% Coverage) ±616,196 Sq. Ft.CURRENT .................................................................................. $1,326,541

NOI - YEAR 1 ............................................................................ $1,654,396

NOI - YEAR 2 ............................................................................ $2,085,470

OWNERSHIP ............................................................................. Fee Simple

STORIES ...............................................................................................OnePARKING ............................................................................................... 524

PARKING RATIO....................................................................4.57 per 1,000

LEVERAGED IRR ........................................................................ Approx. 20%

UNLEVERAGED IRR ................................................................... Approx. 15%

APN#’s ............................................287-241-05, 287-241-04, 287-241-01

ZONING ............................................................. C-2 (General Commercial)

TRAFFIC COUNT .......................................................................35,200 ADT

EXECUTIVE SUMMARY

Investment Highlights• Strong Orange County location $125,000 average household

income.

• Value added lease up and re-tenanting opportunity.

• Huge upside; Possible grocery play to replace CVS paying $0.22 PSF with grocer. Talk to listing agent.

• In-fillOrangeCounty.

• Only 19% coverage, investor may be able to add space.

• Investor can sell off tennis court land above for multi-residential.

• Immersedinaffluentresidentialcorridor.

5 Sunrise Village

Property Description

7 Sunrise Village

8 Sunrise Village

ONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUS

POPU

LATI

ON

2014 Estimated Population 10,427 190,483 550,092

2019 Projected Population 11,251 200,554 575,066

2010 Census Population 9,688 182,739 531,613

2000 Census Population 8,239 171,689 510,411

Growth 2010-2014 7.63% 4.24% 3.48%

Growth 2014-2019 7.90% 5.29% 4.54%

2014 Estimated Median Age 46.37 37.10 34.82

2014 Estimated Average Age 44.07 38.15 36.63

HO

USE

HO

LDS

2014 Estimated Households 3,494 61,787 170,280

2019 Projected Households 3,775 65,177 178,287

2010 Census Households 3,244 59,325 164,607

2000 Census Households 2,840 56,868 161,515

Growth 2010-2014 7.70% 4.15% 3.45%

Growth 2014-2019 8.03% 5.49% 4.70%

2014 Est. Average Household Size 2.88 3.04 3.18

INC

OM

E

2014 Est. Median Household Income $94,456 $66,171 $62,020

2019 Prj. Median Household Income $104,667 $70,327 $66,191

2000 Cen. Median Household Income $87,291 $52,113 $49,264

2014 Est. Average Household Income $125,274 $87,309 $80,852

2014 Estimated Per Capita Income $41,981 $28,320 $25,028

HO

USI

NG

2014 Estimated Housing Units 3,599 64,460 178,563

2014 Estimated Occupied Units 3,494 61,787 170,280

2014 Estimated Vacant Units 104 2,673 8,282

2014 Est. Owner Occupied Units 2,801 37,790 94,502

2014 Est. Renter Occupied Units 694 23,997 75,779

2014 Est. Median Housing Value $605,687 $431,869 $417,261

2014 Est. Average Housing Value $653,341 $481,680 $462,796

2014 Estimated Households 3,494 61,787 170,280

9 Sunrise Village

MAPS

SUNRISE VILLAGE

10 Sunrise Village

AERIAL

11 Sunrise Village

SITE PLAN

N EUCLID STREET

RO

SEC

RAN

S AV

ENU

EPAS

EO

DO

RA

DO

1715Curves

1773Schutz,

DDS

1751

1885

1701Vacant

4,000 SF

CAMINO LOMA ST

American Red Cross

Tennis Courts

1801

1805

1807

1813

1815

1819

1823

1829

1833

1837

1839

1843 18

47

1855

1861

1865

1869

1875

1877

1881

1891

1895

1150

1144

CoffeeCode

N.A.P.

Financial Analysis

14 Sunrise Village

FINANCIAL ANALYSIS Sunrise VillageUNPRICED OM

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

Property Type Retail Size of Improvements 114,736 SFProperty Owner Packo Investments Currently Vacant as of 8/1/14 19,691 SFProperty Address 1801 - 1895 N Euclid St Current Occupancy as of 8/1/14 82.84%

Fullerton, CA Projected Occupancy as of 1/1/15 82.84%

ACQUISITION AND RESIDUAL SUMMARY LEVERAGE SUMMARY [1]

MARKET LOANPurchase Price as of January 1, 2015 $227 PSF $26,000,000 Initial Loan Funding (as of Jan-15) $15,000,000

Loan-To-Value Ratio (Initial Funding) 57.69%Pricing Sensitivity Matrix Funding Date Jan-15

Maturity Date Dec-24Purchase Year 1 Year 2 All Cash Leveraged Remaining Loan Term During Analysis 10.0 Years

Price PSF Cap Cap IRR IRR Amortization Period 30 Years

$26,275,000 $229.0 6.38% 8.03% 15.32% 22.88% Initial Interest Only Period (If Any) -$26,160,000 $228.0 6.41% 8.06% 15.38% 22.98% Interest Rate 4.25%$26,045,000 $227.0 6.44% 8.10% 15.45% 23.07% Loan Constant 5.90%

$26,000,000 $226.6 6.45% 8.11% 15.47% 23.11% Origination Fee on Initial Loan Funding 1.00%

$25,930,000 $226.0 6.47% 8.14% 15.51% 23.17% Initial Debt Yield 11.18%$25,816,000 $225.0 6.50% 8.17% 15.58% 23.27% Debt Service Coverage Ratio (NOI) 1.89x$25,701,000 $224.0 6.53% 8.21% 15.64% 23.37% Debt Service Coverage Ratio (CF) 1.47x

Net Residual Value as of December 31, 2024 $63,291,000 Purchase Price as of January 1, 2015 $26,000,000Net Residual Per Square Foot $552 Total Initial Loan Principal (15,000,000)Residual Capitalization Rate 5.50% Total Initial Loan Fees 150,000Residual Cost of Sale 2.00% Holdbacks and Escrows 0

Initial Equity $11,150,000

ALL CASH IRR 15.47% LEVERAGED IRR 23.11%

[1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain.

© 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the

suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making any decisions that rely upon this analysis, it should be noted that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal

7/29/2014 10:37 AM 3

This page is part of a package and is subject to the disclaimer on the Executive Summary.CBRE Financial Consulting Group

Executive Summary

Pricing Matrix

PurchasePrice

TotalPSF [1]

ActualCap Rate [2]

Year 1Cap Rate

Year 2Cap Rate

Year 3Cap Rate

All CashIRR

LeveragedIRR

Yr 1 LeveragedCash Return

$28,500,000 $248.40 4.84% 5.89% 7.40% 7.78% 14.15% 21.07% 2.71%

$28,000,000 $244.04 4.93% 5.99% 7.53% 7.92% 14.40% 21.46% 2.90%

$27,500,000 $239.68 5.02% 6.10% 7.67% 8.06% 14.66% 21.86% 3.10%

$27,000,000 $235.32 5.11% 6.21% 7.81% 8.21% 14.92% 22.27% 3.30%

$26,500,000 $230.96 5.21% 6.33% 7.96% 8.37% 15.20% 22.69% 3.52%

$26,000,000 $226.61 5.31% 6.45% 8.11% 8.53% 15.47% 23.11% 3.74%

$25,500,000 $222.25 5.41% 6.58% 8.27% 8.70% 15.76% 23.55% 3.97%

$25,000,000 $217.89 5.52% 6.71% 8.44% 8.87% 16.05% 23.99% 4.20%

$24,500,000 $213.53 5.64% 6.85% 8.61% 9.05% 16.35% 24.45% 4.45%

$24,000,000 $209.18 5.75% 6.99% 8.79% 9.24% 16.66% 24.92% 4.71%

$23,500,000 $204.82 5.88% 7.14% 8.98% 9.44% 16.97% 25.40% 4.98%

15 Sunrise Village

Sunrise VillageUNPRICED OM

SUMMARY OF FINANCIAL ASSUMPTIONS

GLOBAL VACANT SPACE LEASING SECOND GENERATION LEASING

Retail AnchorAnalysis Period Occupancy and Absorption Retention Ratio 75% 75%

Commencement Date January 1, 2015 Projected Vacant at 1/1/15 19,691 SFEnd Date December 31, 2024 Currently Vacant as of 8/1/14 19,691 SF Financial TermsTerm 10 Years Percentage Vacant at 8/1/14 17.16% 2015 Monthly Market Rent See Rent Roll $1.50 PSF

Absorption Period 11 Month(s) Rent Adjustment 3.00% Annually 10% every 5 yrsArea Measures Absorption Period Start Date January 1, 2015 Lease Term 5 Years 10 Years

Building Square Feet (NRSF) 114,736 SF First Absorption Occurs On February 1, 2015 Expense Reimbursement Type NNN NNNLast Absorption Occurs On December 1, 2015

Growth Rates Tenanting CostsConsumer Price Index (CPI) 3.00% Financial Terms Rent AbatementsOther Income Growth Rate 3.00% 2015 Monthly Market Rent See Rent Roll New 3 Month(s) 3 Month(s)Operating Expenses 3.00% Rent Adjustment 3.00% Annually Renewal 0 Month(s) 0 Month(s)Real Estate Taxes 2.00% Lease Term 5 Years Weighted Average 0.75 Month(s) 0.75 Month(s)Market Rent Growth [1] Expense Reimbursement Type NNN

CY 2016 - 3.90% Rent Abatements 3 Month(s) Tenant Improvements ($/NRSF)CY 2017 - 4.00% Tenant Improvements ($/NRSF) $10.00 PSF New $10.00 PSF $10.00 PSFCY 2018 - 3.30% Commissions 5.00% Renewal $0.00 PSF $0.00 PSFCY 2019 - 2.50% Weighted Average $2.50 PSF $2.50 PSFCY 2020 - 3.00% EXPENSESCY 2021 - 3.00% Commissions [5]CY 2022 - 3.00% Operating Expense Source 2015 Forecast New 5.00% 5.00%CY 2023 - 3.00% Renewal 2.00% 2.00%CY 2024 - 3.00% Management Fee (% of EGR) 2.00% Weighted Average 2.75% 2.75%

CY 2025+ - 3.00%Real Estate Taxes Reassessed No [4] Downtime

General Vacancy Loss 3.00% [2] Millage Rate 1.060250% New 5 Month(s) 5 Month(s)Special Assessments $76,027 Weighted Average 1 Month(s) 1 Month(s)

Capital Reserves (CY 2015 Value) $0.15 PSF

Notes:All market rates are stated on calendar-year basis.[1] Market Rent Growth projections are based upon CBRE Econometric Advisors’ 2014 Q1 Retail forecast for Orange County (Central County) through CY 2019, with 3% annual increases modeled thereafter.[2] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime.

The following tenants are excluded from this loss factor for current lease terms only: American Red Cross, CVS, Del Taco & Papa John's.[3] Real Estate Taxes in this analysis are equal to the most recent available tax bills (plus estimated inflation). It is the responsibility of the investor to reassess taxes in accordance with the projected purchase price.

The millage rate is 1.060250% and special assessments are $76,027.[4] Leasing Commissions are calculated by applying 100% of the rates shown above for lease years 1-5, and 50% of the above rates for lease years 6 and beyond.

7/29/2014 10:37 AM 4


Summary of Financial Assumptions

16 Sunrise Village

FINANCIAL ANALYSIS

Schedule of Prospective Cash FlowSunrise Village

UNPRICED OM

CASH FLOW PROJECTIONS

Calendar Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Physical Occupancy 92.62% 99.05% 100.00% 99.58% 99.93% 98.22% 98.94% 100.00% 97.61% 99.72% 98.29%

Overall Economic Occupancy [1] 84.09% 96.11% 97.37% 96.94% 97.25% 95.53% 96.12% 97.00% 95.91% 96.72% 95.67%

Weighted Average Market Rent $2.05 $2.13 $2.22 $2.29 $2.35 $2.42 $2.49 $2.57 $2.64 $2.72 $2.80

Weighted Average In Place Rent [2] $1.32 $1.55 $1.64 $1.65 $1.73 $1.80 $2.03 $2.54 $2.56 $2.62 $2.61

Total Operating Expenses PSF Per Year $4.66 $4.83 $4.94 $5.04 $5.16 $5.28 $5.43 $5.66 $5.77 $5.91 $6.02

[3]CY 2015

REVENUES $/SF/MOScheduled Base Rent

Gross Potential Rent $1.53 $2,105,581 $2,194,285 $2,263,440 $2,297,611 $2,384,829 $2,566,479 $2,846,181 $3,494,987 $3,556,377 $3,623,319 $3,688,214Absorption & Turnover Vacancy (0.20) (270,065) (37,186) 0 (16,818) (3,518) (79,465) (47,994) 0 (73,840) (17,077) (88,435)Base Rent Abatements (0.11) (148,569) (37,803) 0 (12,614) (2,639) (57,214) (38,455) 0 (47,961) (12,808) (60,995)

Total Scheduled Base Rent 1.23 1,686,947 2,119,296 2,263,440 2,268,179 2,378,672 2,429,800 2,759,732 3,494,987 3,434,576 3,593,434 3,538,784

Expense Reimbursements 0.38 524,888 577,043 596,252 604,902 615,952 613,759 647,168 714,500 711,156 743,338 747,078

TOTAL GROSS REVENUE 1.61 2,211,835 2,696,339 2,859,692 2,873,081 2,994,624 3,043,559 3,406,900 4,209,487 4,145,732 4,336,772 4,285,862General Vacancy Loss 0.00 0 (32,762) (75,344) (59,320) (76,460) (5,583) (49,045) (126,285) (52,747) (113,538) (42,794)

EFFECTIVE GROSS REVENUE 1.61 2,211,835 2,663,577 2,784,348 2,813,761 2,918,164 3,037,976 3,357,855 4,083,202 4,092,985 4,223,234 4,243,068

OPERATING EXPENSESContracted Services (0.05) (66,806) (68,810) (70,874) (73,001) (75,191) (77,446) (79,770) (82,163) (84,628) (87,167) (89,782)Material & Supplies (0.00) (591) (609) (627) (646) (665) (685) (706) (727) (749) (771) (794)Repairs & Maintence (0.02) (23,992) (24,712) (25,453) (26,217) (27,003) (27,813) (28,648) (29,507) (30,392) (31,304) (32,243)Utilities (0.04) (51,540) (53,086) (54,679) (56,319) (58,009) (59,749) (61,541) (63,388) (65,289) (67,248) (69,265)Trash (0.03) (36,297) (37,386) (38,508) (39,663) (40,853) (42,078) (43,341) (44,641) (45,980) (47,360) (48,780)Management Fee (0.03) (44,237) (53,272) (55,687) (56,275) (58,363) (60,760) (67,157) (81,664) (81,860) (84,465) (84,861)Insurance (0.02) (21,402) (22,044) (22,705) (23,387) (24,088) (24,811) (25,555) (26,322) (27,111) (27,925) (28,762)Real Estate Taxes (0.21) (289,717) (293,991) (298,350) (302,797) (307,332) (311,958) (316,677) (321,490) (326,399) (331,406) (336,514)

TOTAL OPERATING EXPENSES (0.39) (534,582) (553,910) (566,883) (578,305) (591,504) (605,300) (623,395) (649,902) (662,408) (677,646) (691,001)

NET OPERATING INCOME 1.22 1,677,253 2,109,667 2,217,465 2,235,456 2,326,660 2,432,676 2,734,460 3,433,300 3,430,577 3,545,588 3,552,067

CAPITAL COSTSTenant Improvements (0.14) (196,910) (32,990) 0 (15,785) (2,884) (68,347) (46,293) 0 (88,066) (12,476) (72,239)Leasing Commissions (0.12) (161,055) (63,966) 0 (29,118) (20,378) (132,080) (220,478) 0 (161,026) (29,567) (140,806)Capital Reserves (0.01) (17,210) (17,727) (18,259) (18,806) (19,370) (19,952) (20,550) (21,167) (21,802) (22,456) (23,129)

TOTAL CAPITAL COSTS (0.27) (375,175) (114,683) (18,259) (63,709) (42,632) (220,379) (287,321) (21,167) (270,894) (64,499) (236,174)

OPERATING CASH FLOW $0.95 $1,302,078 $1,994,984 $2,199,206 $2,171,747 $2,284,028 $2,212,297 $2,447,139 $3,412,133 $3,159,683 $3,481,089 $3,315,893

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.[3] Based on 114,736 square feet.

7/29/2014 10:37 AM 5


17 Sunrise Village

FINANCIAL ANALYSIS

Financial OverviewPROPERTY DESCRIPTION

Property Sunrise VillageProperty Address 1020-1144 Rosecrans, Fullerton, CATotal Net Rentable Area 114,736 sq. ft.Sale Price TBDPrice/Sq. ft. Mid $200’sCAP Rate - Actual Approximately 5.0%CAP Rate - Proforma Approximately 7.4%

ANNUALIZED OPERATING DATA

I N C O M E A C T U A L P R O F O R M AP R O F O R M A

( C V S @ $ 1 5 . 0 0 )Base Rent $1,442,065 $2,078,142 $2,558,862 [1]

Tenant Reimbursement [2] $446,162 $535,288 $535,288

Gross Rents $1,888,277 $2,613,430 $3,094,150

Vacancy Actual 17% 5% $130,672 5% $116,036

Adjusted Gross Income $1,888,227 $2,482,758 $2,978,114

Expenses $561,686 $561,686 $561,686

NOI $1,326,541 $1,921,072 $2,416,428 [1] Includes CVS release[2] Assumes 1% Slippage on existing lease

TI/LC $445,000CVS Buyout, drops $28,000 per mo $2,500,000

*Sell tennis courts for units: $500,000 - $650,000

DEBT FINANCINGNew Loan New Loan Amount $15,000,000 New Interest Rate 4.25%Term 10 YearsAmortization Period 30 YearLoan Constant 5.90% RETURNSAll Cash IRR Approx. 15%Leveraged IRR Approx. 20%Actual CAP Rate Approx. 5%Year 2 CAP Rate Approx. 8%

EXPENSESE X P E N S E S

Exterminator $2,448.00

Janitorial $17,547.60

Landscaping $24,000.00

Lighting Maintenance $900.00

Roof Maintenance $1,550.00

Steam Cleaning $5,226.00

Sweeping $11,244.00

Tree Trimming $1,605.00

Janitorial Mat’l & Supplies $557.34

Repairs & Maintenance $22,615.12

Utilities $48,581.62

Trash $34,212.81

General & Administrative $44,950.13

Property Taxes $326,074.22

Property Insurance $6,989.99

Liability Insurance $13,183.81

TOTAL EXPENSES $561,685.64

19 Sunrise Village

Rent Roll

FINANCIAL ANALYSIS


Rent Roll as of 1/1/2015

Market

Square % of Lease Term Rental Rates Recovery Rent Abatements Tenant Leasing Assumption /

Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Month # % Abated Improvements Commissions Market Rent

A-1020 Del Taco 2,800 2.44% Aug-1999 Aug-2019 Current $4,033 $1.44 $48,400 $17.29 - - - - Market @100%Sep-2015 $4,436 $1.58 $53,228 $19.01

Notes:Tenant has three (3) five (5) year options to renew. Rent increase is the less of 10% or CPI every 5 years. Assumed to be 10% for the 9/15 increase. Tenant has percentage rent of 6%of gross sales that is not modeled.

A-1026 Papa John's 1,481 1.29% Sep-2009 Dec-2015 Current $4,584 $3.10 $55,007 $37.14 - - - - Market @80%EXP 08/14

Notes:Tenant assumed to remain in place throughfirst year of analysis at the same terms. Tenant has two (2) five (5) year options to renew.

A-1028 Sunrise Optometry 1,130 0.98% Dec-2004 Dec-2015 Current $3,390 $3.00 $40,680 $36.00 - - - - MarketEXP 11/14

Notes:Tenant is assumed to stay in place through first year of analysis at the same rate.Tenant has one (1) five (5) year option to renew.

A-1030 Coffee Code 1,025 0.89% May-2014 Apr-2019 Current $2,050 $2.00 $24,600 $24.00 - - - - MarketMay-2015 $2,112 $2.06 $25,338 $24.72 May-2016 $2,175 $2.12 $26,097 $25.46 May-2017 $2,240 $2.19 $26,886 $26.23 May-2018 $2,307 $2.25 $27,685 $27.01

Notes:Tenant has one (1) five (5) year option to renew. 3% increase is assumed to be equal to CPI growth rate

A-1144 American Red Cross 3,919 3.42% Jul-2003 Jun-2016 Current $7,708 $1.97 $92,500 $23.60 - - - - MarketJul-2015 $7,939 $2.03 $95,271 $24.31

Notes:Tenant has one (1) five (5) year option to renew.

B-1701 VACANT (Suite 1701) 4,000 3.49% Feb-2015 Jan-2020 Feb-2015 $12,000 $3.00 $144,000 $36.00 1-3 100% $10.00 $9.11 MarketFeb-2016 $12,360 $3.09 $148,320 $37.08 $40,000 $36,426Feb-2017 $12,730 $3.18 $152,760 $38.19 5.00%Feb-2018 $13,113 $3.28 $157,360 $39.34 Feb-2019 $13,507 $3.38 $162,080 $40.52

B-1715 VACANT (Suite 1715) 2,500 2.18% Mar-2015 Feb-2020 Mar-2015 $6,250 $2.50 $75,000 $30.00 1-3 100% $10.00 $7.59 MarketMar-2016 $6,438 $2.58 $77,250 $30.90 $25,000 $18,972Mar-2017 $6,631 $2.65 $79,575 $31.83 5.00%Mar-2018 $6,829 $2.73 $81,950 $32.78 Mar-2019 $7,035 $2.81 $84,425 $33.77

B-1723 Authur Schultz, DDS 1,500 1.31% Nov-2001 Oct-2021 Current $2,721 $1.81 $32,651 $21.77 - - - - MarketNov-2015 $2,803 $1.87 $33,630 $22.42 Nov-2016 $2,886 $1.92 $34,635 $23.09 Nov-2017 $2,974 $1.98 $35,685 $23.79 Nov-2018 $3,063 $2.04 $36,750 $24.50 Nov-2019 $3,154 $2.10 $37,845 $25.23 Nov-2020 $3,249 $2.17 $38,985 $25.99

Notes:Tenant has two (2) five (5) year option to renew. Rental bump increase is between 3-5%

NNN - Schutz (10% Admin) $2.50 NNN (10%

Admin)

NNN (10% Admin) $3.00 NNN (10%

Admin)

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN - Starbucks (10%

Admin) $3.00 NNN (10%

Admin)

NNN - Red Cross (10% $2.50 NNN (10%

NNN - Papa John (5% $3.00 NNN (10%

NNN - Sunrise (15% Admin) $3.00 NNN (10%

NNN - Del Taco (10% $3.50 NNN (10%

7/28/2014 3:07 PM 14


20 Sunrise Village

Rent Roll

FINANCIAL ANALYSIS



Market



B-1751 CVS Pharmacy 38,892 33.90% Sep-1976 Sep-2021 Current $8,555 $0.22 $102,655 $2.64 - - - - Market @100%

Notes:It is assumed Tenant exercises its option until 9/21.Tenant has percentage rent of 2%of gross sales that is not modeled.

B-1801 VACANT (Suite 1801) 1,200 1.05% Apr-2015 Mar-2020 Apr-2015 $3,000 $2.50 $36,000 $30.00 1-3 100% $10.00 $7.59 MarketApr-2016 $3,090 $2.58 $37,080 $30.90 $12,000 $9,106Apr-2017 $3,183 $2.65 $38,196 $31.83 5.00%Apr-2018 $3,278 $2.73 $39,336 $32.78 Apr-2019 $3,377 $2.81 $40,524 $33.77

B-1805 Fullerton Hills Pet Clinic 1,409 1.23% Aug-2011 Jul-2016 Current $3,725 $2.64 $44,695 $31.72 - - - - MarketAug-2015 $3,874 $2.75 $46,483 $32.99

Notes:Tenant has one (1) five (5) year option to renew. Rent bump is between 4-6%, assumed 4% for anaylsis.

B-1806/1 VACANT (Suite 1806/1813) 2,657 2.32% May-2015 Apr-2020 May-2015 $6,643 $2.50 $79,710 $30.00 1-3 100% $10.00 $7.59 MarketMay-2016 $6,842 $2.58 $82,101 $30.90 $26,570 $20,163May-2017 $7,048 $2.65 $84,572 $31.83 5.00%May-2018 $7,258 $2.73 $87,096 $32.78 May-2019 $7,477 $2.81 $89,727 $33.77

B-1815 VACANT (Suite 1815) 725 0.63% Jun-2015 May-2020 Jun-2015 $2,175 $3.00 $26,100 $36.00 1-3 100% $10.00 $9.11 MarketJun-2016 $2,240 $3.09 $26,883 $37.08 $7,250 $6,602Jun-2017 $2,307 $3.18 $27,688 $38.19 5.00%Jun-2018 $2,377 $3.28 $28,522 $39.34 Jun-2019 $2,448 $3.38 $29,377 $40.52

B-1819 VACANT (Suite 1819) 1,181 1.03% Jul-2015 Jun-2020 Jul-2015 $3,248 $2.75 $38,973 $33.00 1-3 100% $10.00 $8.35 MarketJul-2016 $3,345 $2.83 $40,142 $33.99 $11,810 $9,858Jul-2017 $3,446 $2.92 $41,347 $35.01 5.00%Jul-2018 $3,549 $3.01 $42,587 $36.06 Jul-2019 $3,655 $3.10 $43,862 $37.14

B-1821 Bon Juk Restaurant 1,145 1.00% May-2008 Dec-2015 Current $3,645 $3.18 $43,741 $38.20 - - - - MarketEXP 4/13

Notes:Tenant is assumed to remain in place through the first year of the anaylsis at the same rate. Tenant has one (1) five (5) year option to renew. Tenant has percentage rent of 6% of gross sales that is not modeled.

B-1823 VACANT (Suite 1823) 1,080 0.94% Aug-2015 Jul-2020 Aug-2015 $2,970 $2.75 $35,640 $33.00 1-3 100% $10.00 $8.35 MarketAug-2016 $3,059 $2.83 $36,709 $33.99 $10,800 $9,015Aug-2017 $3,151 $2.92 $37,811 $35.01 5.00%Aug-2018 $3,245 $3.01 $38,945 $36.06 Aug-2019 $3,343 $3.10 $40,111 $37.14

B-1829 Pola Hair Salon 909 0.79% May-2004 Dec-2015 Current $1,954 $2.15 $23,452 $25.80 - - - - MarketEXP 4/14

Notes:Tenant is assumed to remain in place through the first year of the anaylsis at same rate. Tenant has percentage rent of 6% of gross sales that is not modeled.

NNN (10% Admin) $2.75 NNN (10%

Admin)

NNN - Hair Salon (15% $3.00 NNN (10%

NNN (10% Admin) $2.75 NNN (10%

Admin)

NNN - Bonjuk (15% Admin) $3.00 NNN (10%

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN (10% Admin) $3.00 NNN (10%

Admin)

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN - Pet Clinic (15% $2.50 NNN (10%

NNN - CVS (10% Admin) $1.50 NNN (Anchor)

7/28/2014 3:07 PM 15


21 Sunrise Village

Rent Roll

FINANCIAL ANALYSIS



Market



B-1833/3 Hwang Hae Do Restaurant 2,418 2.11% Apr-2008 Mar-2018 Current $7,698 $3.18 $92,372 $38.20 - - - - MarketApr-2015 $8,082 $3.34 $96,986 $40.11 Apr-2016 $8,487 $3.51 $101,846 $42.12 Apr-2017 $8,910 $3.69 $106,924 $44.22

Notes:Tenant has one (1) five (5) year option to renew. 5% increase is assumed to be min CPI growth rate. Tenant has percentage rent of 6% of gross sales that is not modeled.

B-1839 VACANT (Suite 1839) 905 0.79% Sep-2015 Aug-2020 Sep-2015 $2,715 $3.00 $32,580 $36.00 1-3 100% $10.00 $9.11 MarketSep-2016 $2,796 $3.09 $33,557 $37.08 $9,050 $8,241Sep-2017 $2,880 $3.18 $34,562 $38.19 5.00%Sep-2018 $2,967 $3.28 $35,603 $39.34 Sep-2019 $3,056 $3.38 $36,671 $40.52

B-1843 Hearing Aid Center 1,550 1.35% Aug-2013 Jul-2023 Current $3,162 $2.04 $37,944 $24.48 - - - - MarketAug-2015 $3,256 $2.10 $39,076 $25.21 Aug-2016 $3,354 $2.16 $40,254 $25.97 Aug-2017 $3,455 $2.23 $41,463 $26.75 Aug-2018 $3,559 $2.30 $42,703 $27.55 Aug-2019 $3,666 $2.37 $43,989 $28.38 Aug-2020 $3,776 $2.44 $45,307 $29.23 Aug-2021 $3,889 $2.51 $46,671 $30.11 Aug-2022 $4,005 $2.58 $48,066 $31.01

Notes:Tenant has one (1) five (5) year option to renew. 3% increase is assumed to equal the CPI growth rate. increase is between 2-5%

B-1847 VACANT (Suite 1847) 2,461 2.14% Oct-2015 Sep-2020 Oct-2015 $6,153 $2.50 $73,830 $30.00 1-3 100% $10.00 $7.59 MarketOct-2016 $6,337 $2.58 $76,045 $30.90 $24,610 $18,676Oct-2017 $6,528 $2.65 $78,334 $31.83 5.00%Oct-2018 $6,723 $2.73 $80,672 $32.78 Oct-2019 $6,926 $2.81 $83,108 $33.77

B-1855/5 Charles Kim, DDS Grace Family 2,117 1.85% Apr-2008 Mar-2018 Current $5,451 $2.58 $65,415 $30.90 - - - - MarketApr-2015 $5,615 $2.65 $67,384 $31.83 Apr-2016 $5,783 $2.73 $69,395 $32.78 Apr-2017 $5,958 $2.81 $71,491 $33.77

Notes:Tenant has one (1) five (5) year option to renew.

B-1861 Taek Bae (Se Woong) 715 0.62% Nov-2008 Dec-2015 Current $1,788 $2.50 $21,450 $30.00 - - - - MarketEXP 10/13

Notes:Tenant is assumed to remain in place through first year of the analysis at same rate. Tenant has one (1) five (5) year option to renew. Tenant has percentage rent of 6% of gross sales that is not modeled.

B-1865 Kumon 1,243 1.08% Jun-2008 May-2018 Current $3,957 $3.18 $47,485 $38.20 - - - - MarketJun-2015 $4,155 $3.34 $49,857 $40.11

Notes:Tenant has one (1) five (5) year option to renew. 5% increase is assumed to be equal to min CPI rate

B-1869 VACANT (Suite 1869) 2,082 1.81% Nov-2015 Oct-2020 Nov-2015 $5,205 $2.50 $62,460 $30.00 1-3 100% $10.00 $7.59 MarketNov-2016 $5,361 $2.58 $64,334 $30.90 $20,820 $15,800Nov-2017 $5,523 $2.65 $66,270 $31.83 5.00%Nov-2018 $5,687 $2.73 $68,248 $32.78 Nov-2019 $5,859 $2.81 $70,309 $33.77

NNN - Kumon (15% Admin) $3.00 NNN (10%

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN - Grace (10% Admin) $2.50 NNN (10%

Admin)

NNN - Taek Bae (15% $3.00 NNN (10%

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN (10% Admin) $2.50 NNN (10%

Admin)

NNN - HwangHae

(15% Admin) $2.50 NNN (10%

Admin)

NNN (10% Admin) $3.00 NNN (10%

Admin)

7/28/2014 3:07 PM 16


22 Sunrise Village



Market



B-1875 VACANT (Suite 1875) 900 0.78% Dec-2015 Nov-2020 Dec-2015 $2,700 $3.00 $32,400 $36.00 1-3 100% $10.00 $9.11 MarketDec-2016 $2,781 $3.09 $33,372 $37.08 $9,000 $8,196Dec-2017 $2,864 $3.18 $34,371 $38.19 5.00%Dec-2018 $2,951 $3.28 $35,406 $39.34 Dec-2019 $3,039 $3.38 $36,468 $40.52

B-1877 Kids Play 1,080 0.94% Apr-2013 Mar-2016 Current $1,669 $1.55 $20,023 $18.54 - - - - MarketApr-2015 $1,719 $1.59 $20,628 $19.10

Notes:Tenant has one (1) three (3) year option to renew. 3% increase is assumed to be equal to CPI growth rate.

B-1881 Subway 1,320 1.15% Aug-2009 Dec-2015 Current $3,197 $2.42 $38,368 $29.07 - - - - Market

B-1885 Imperial Spa 25,600 22.31% Mar-2008 Feb-2023 Current $39,552 $1.55 $474,624 $18.54 - - - - Market @80%Mar-2015 $40,747 $1.59 $488,960 $19.10 Mar-2016 $41,963 $1.64 $503,552 $19.67 Mar-2017 $43,221 $1.69 $518,656 $20.26 Mar-2018 $44,523 $1.74 $534,272 $20.87 Mar-2019 $45,845 $1.79 $550,144 $21.49 Mar-2020 $47,232 $1.85 $566,784 $22.14 Mar-2021 $48,640 $1.90 $583,680 $22.80 Mar-2022 $50,112 $1.96 $601,344 $23.49

Notes:Tenant has one (1) fifteen (15) year option to renew. 3% increase is assumed to be equal to the CPI growth rate.

B-1891/9 Elite 4,792 4.18% Mar-2010 Feb-2020 Current $11,326 $2.36 $135,915 $28.36 - - - - MarketMar-2015 $11,665 $2.43 $139,974 $29.21

Notes:Tenant has two (2) three (3) year option to renew.

TOTALS / AVERAGES 114,736 $120,165 $1.26 $1,441,976 $15.17

OCCUPIED SqFt 95,045 82.8%VACANT SqFt 19,691 17.2%

TOTAL SqFt 114,736 100.0%

WEIGHTED-AVERAGE LEASE TERM REMAINING: 6.02 Years

NNN - Elite (15% Admin) $3.00 NNN (10%

NNN - Subway (15% Admin) $2.75 NNN (10%

NNN - Imperial Spa (10% Admin)

$1.50 NNN (Anchor)

NNN (10% Admin) $3.00 NNN (10%

Admin)

NNN (10% Admin) $2.50 NNN (10%

7/28/2014 3:07 PM 17


Rent Roll

FINANCIAL ANALYSIS

24 Sunrise Village

FINANCIAL ANALYSIS

Established in 1963 and headquartered in Woonsocket, RI, CVS Caremark Corporation (NYSE: CVS) is a pharmacy healthcare provider. CVSCaremarkprovidespharmacyservicesthroughitspharmacybenefitmanagement (PBM), mail order and specialty pharmacy division, CVS Caremark Pharmacy Services; approximately 7,300 CVS/pharmacy retail stores; retail-based health clinic subsidiary, MinuteClinic, and its online retail pharmacy, CVS.com. The Company operates in three business segments: Pharmacy Services, Retail Pharmacy and Corporate. Its corporate segment provides management and administrative services to support the overall operations of the Company. Executive members include President & CEO Larry Merlo, CFO David Denton and Chief HR OfficerLisaBisaccia.In2013,CVSgenerated33.8billioninsalesandraked in over $1.34 billion in revenue.

COMPANY OVERVIEW

Headquarters: 1 CVS Dr, Woonsocket, Rhode Island 02895

Website: www.cvscaremark.com

Stock Symbol: CVS

Employees: 130,000+

Market Locations: Nationwide & International markets

Tenant Profiles

25 Sunrise Village

FINANCIAL ANALYSIS

Tenant Profiles

Papa John’s International, Inc. (Papa John’s), incorporated on July, 25, 1991 as an operational and franchising pizza delivery restaurant. There are currently over 4,163 Papa John’s restaurants in operation, consisting of about 696 Company owned and 3,467 franchised restaurants operating domestically in all 50 states and in 35 countries. The Company operates in six segments: domestic Company-owned restaurants, domestic commissaries (Quality Control Centers), North America franchising, international operations, variable interest entities (VIEs) and all other business units. Its Company owned restaurants includes 182 restaurants operated under four joint venture arrangements. Executive members include Founder & CEO John Schnatter, CFO, Lance Tucker and Steve Ritchie. In 2013, Papa John’s generated over $1.43 billion in revenue and saw their earnings per peak to $0.423. Currently the company has generated over $400 million with its earnings per share peaking to $0.449.

COMPANY OVERVIEW

Headquarters: 2002 Papa John’s Blvd, Louisville, Kentucky 40229

Website: www.papajohns.com

Stock Symbol: PZZA.O

Employees: 20,700+

Market Locations: Nationwide & International markets

26 Sunrise Village

FINANCIAL ANALYSIS

Del Taco’s origins lie in California’s Inland Empire, the region around San Bernardino. Del Taco, Inc. prides itself on being the second largest Mexican concept fast food chain in the United States. It is also one of the most consistently successful of all fast food companies, registering thirteen consecutive years of sales growth between 1990 and 2003. The chain has approximately 551 outlets in the United States, with a presence in most states west of the Mississippi as well as some on the Atlantic coast. In 2013, Del Taco re-launched the brand with the advertising campaign, “UnFreshingBelievable,” to communicate the lengths the company goes to in order to deliver quality, made-to-order menu items created with freshly-prepared ingredients as well as a plan to reinvigorate its image with a new store design. Executive members include Owner Kevin Moriarty, CFO Steven Brake and co-founders David Jameson and Ed Hackbarth. In 2013, Del Taco generated over $607.9 million in total sales nationwide. Average unit sales was $1.18 millionwitha26%operatingprofitof$309,653.

COMPANY OVERVIEW

Headquarters: 25521 Commercentre Dr Suite 200 Lake Forest, CA 92630

Website: www.deltaco.com

Stock Symbol: XXNCB

Employees: 5,000+

Market Locations: Nationwide

Tenant Profiles

Competitive Property Set

28 Sunrise Village© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness,completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID: L10 MapId: 1855575

COMPETITIVE PROPERTY SET-RENT

Layout ID: MapId:© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness,completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID: L10 MapId: 1855575

29 Sunrise Village

RENT COMPARABLES

ADDRESS YEAR BUILT SF OCCUPANCY RENT/SF COMMENTS

1501-507 N State College BlvdFullerton, CA

1968, Renovated

200712,226 100% $4.00 Starbucks, Chipotle

2Birch Street Promenade110-130 S. Brea BlvdBrea, CA

2000 15,558 100% $3.00 Strip

3

Brea Imperial Center311-391 S State College BlvdBrea, CA

1980 59,904 83% $2.50 Strip

4Brea Plaza415-453 Associated RoadBrea, CA

1995 150,000 100% $3.7518,000 SF Total Wine $1.33

13,000 SF Mothers market $1.58

5

Brea Union Plaza2315-2595 Imperial HighwayBrea, CA

1999 595,570 99% $3.50 Staples, Walmart

6

Crossroads Shopping Center5550-5640 East Santa Ana Canyon RoadAnaheim, CA

1980 116,506 99% $3.00 Old Vons


30 Sunrise Village

RENT COMPARABLES

ADDRESS YEAR BUILT SF OCCUPANCY RENT/SF COMMENTS

7

Fullerton MetroCenterSWC Harbor Blvd & Orangethorpe AveFullerton, CA

1965, Renovated

1989457,664 93% $2.70 Henry’s, Sports Authority

8

Harbor Town SquareNWC Harbor Blvd. &Orangethorpe AvenueFullerton, CA

1982 27,902 92% $3.00 Strip

9Orangethorpe Plaza1015-1201 E. Euclid AvenueFullerton, CA

2008 50,919 95% $3.25 Rite Aid, Fresh & Easy

10Village Center At RoseNEC Rose Dr. & Alta Vista St.Placentia, CA

1996 119,138 98% $2.85 Ralphs

AVERAGE 1987 160,539 96% $3.16


31 Sunrise Village

© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness,completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID: L10 MapId: 1850076

COMPETITIVE PROPERTY SET-SALES

Layout ID: MapId:© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness,completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID: L10 MapId: 1850076

32 Sunrise Village

S U N R I S E V I L L A G E | F U L L E R TO N , C A ( S u b j e c t Pr o p e r t y )

Sales Price: M A J O R T E N A N T S Cap Rate:

CVS Price/Sq. ft.: Papa Johns Gross Leasable Area (GLA): 114,736 Sq. ft.

Del Taco Sales Occupancy: 83%Year Built:

H U N T I N GTO N P L A Z A | M O N R O V I A , C A

Close of Escrow: 01/2014M A J O R T E N A N T S Sales Price: $25,700,000

Sprouts Cap Rate: 5.05%Price/Sq. ft.: $449.66Gross Leasable Area (GLA): 57,154 Sq. ft.Sales Occupancy: 96%Year Built: 1968

H O B B Y LO B B Y | L A G U N A N I G U E L , C A

Close of Escrow: 09/2013M A J O R T E N A N T S Sales Price: $15,100,000Hobby Lobby Cap Rate: 5.67%

Price/Sq. ft.: $193.92Gross Leasable Area (GLA): 77,867 Sq. ft.Sales Occupancy: 100%Year Built: 1994

1

2


Sales Comparables

33 Sunrise Village

Sales ComparablesE R W I N TO PA N G A S H O P P I N G C E N T E R | W O O D L A N D H I L L S, C A


Toys R Us Cap Rate: 5.70%OfficeDepot Price/Sq. ft.: $430.04

Gross Leasable Area (GLA): 109,292 Sq. ft.Sales Occupancy: 99%Year Built: 1972, Expanded 1980

D I A M O N D H I L L S P L A Z A | D I A M O N D B A R , C A

Close of Escrow: 04/2013M A J O R T E N A N T S Sales Price: $48,000,000Super H Mart Cap Rate: 6.03%

Price/Sq. ft.: $344.55

Gross Leasable Area (GLA): 139,314 Sq. ft.Sales Occupancy: 99%Year Built: 1973, Expanded 2005, 2011

P E N I N S U L A C E N T E R | R O L L I N G H I L L S E S TAT E S, C A


Vons Cap Rate: 5.81%Price/Sq. ft.: $294.91

Gross Leasable Area (GLA): 296,027 Sq. ft.Sales Occupancy: 83%Year Built: 1962

4

5

3


34 Sunrise Village

MARKET OVERVIEW

Demographic Summary (5 miles)Population

In 2014, the estimated population is 555,574. The population has changed by 3.48% since 2010. It is estimated that the population will be 580,795 in 2019, which represents a change of 4.54% from 2014. The current population is 49.4% male and 50.6% female. The median age of the population is 34.77; compare this to the U.S. average which is 36.9. The population density in your area is 3,731.0 people per square mile.

Households

There are currently 171,569 households in your selected geography. The number of households has changed by 3.44% since 2010. It is estimated that thenumberofhouseholds inyourareawillbe179,636fiveyears fromnow, which represents a change of 4.70% from the current year. The average household size is 3.19 persons.

Income

In 2013, the median household income is $61,846; compare this to the U.S. average which is currently $51,352. The median household income has changed by 25.9% since 2000. It is estimated that the median household incomewill be$66,015five years fromnow,which represents a changeof6.7% from 2014. The current year per capita income is $24,884, compare this to the U.S. average, which is $27,016. The current year average household income is $80,580; compare this to the U.S. average which is $71,318.

Race and Ethnicity

The current year racial makeup is as follows: 52.6% White, 2.7% African American,.9%NativeAmericanand17.3%Asian/PacificIslander.Comparethese to U.S. averages which are: 71.3% White, 12.7% African American, 1.0% NativeAmericanand5.2%Asian/PacificIslander.PeopleofHispanicoriginarecounted independently of race. People of Hispanic origin make up 50.1% of the current year population in your selected area. Compare this to the U.S. average of 17.6%.

Housing

The median housing value in the area is $415,519. In addition, there are 94,992 owner occupied housing units and 76,578 are renter occupied housing units.

Employment

In 2014, there are currently 264,030 employees in the area, this is also known as the daytime population. Additionally, 59.9% of employees are employed in white-collar occupations in this geography, 21.4% are employed in blue-collar occupations and 18.7% are employed in the service and farm occupations.

35 Sunrise Village

MARKET OVERVIEW

FullertonFullerton is a city located in northern Orange County, California. Fullerton was founded in 1887. Historically it was a center of agriculture, notably groves of Valencia oranges and other citrus crops, petroleum extraction, transportation and manufacturing.

It is home to several higher educational institutions, following the example set by Fullerton College, which was established in 1913, and is the oldest community college in the state still in its original location. In 1963, California State University, Fullerton moved into its own campus and was followed by Western State University College of Law, Southern California College of Optometry and Hope International University.

Top Employers in the CityCalifornia State University, FullertonSt. Jude Medical CenterRaytheonFullerton School DistrictFullerton CollegeFullerton Joint Union High School DistrictAlcoa Fastening SystemsAlbertsonsCity of FullertonKraft Foods

Orange County Orange county is comprised of a diverse economic base which includes professional & business services, tourism & hospitality, wholesale trade & logistics, direct international trade and technology. The county has over 40 miles of coast line and three small craft harbors to the west, with mountains to the east side of the county boarding neighboring Riverside county. Orange county population is 3,113,991 as of January 1, 2014. In addition, the county has an array of entertainment venues such as performing arts centers, major theme parks and sports arenas. The county also has a well-developed transit system bolstered by Amtrak and Metrolink rail. The county also offers bus services through the Orange County Transit Authority and commercial air services at the Orange County-John Wayne Airport. Lastly, the county has an extensive college and university network, including University of California-Irvine, California State University Fullerton and Chapman University.

AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER© 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Macintosh HD:Users:jmcvay:Box Sync:Southern California:GLAOC Marketing:Property Marketing:Ontario:Fullerton:Sunrise Village - SWC Rosecrans & Euclid:SunriseVillage_OM_v05JM.indd

Affiliated Business Disclosure & Confidentiality Agreement

Alan KruegerSenior Vice PresidentLic. 00880814+1 909 418 [email protected]

Matt BurnettFirst Vice PresidentLic. 01384566+1 909 418 [email protected]

CBRE, Inc.4141 Inland Empire Blvd.Suite 100Ontario, CA 91764www.cbre.com/ontario

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