TWOTENANT

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INVESTMENTOPPORTUNITY

San Marcos, CA

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Outparcel To

TABLE OF CONTENTS | 2 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

CONTENTSINVESTMENT SUMMARY ...................... 3

HIGHLIGHTS ......................................... 4

PROPERTY DESCRIPTION ...................... 5

AERIAL VIEW & SITE PLAN ..................... 6

AREA OVERVIEW ................................. 11

RENT ROLL ......................................... 12

PRICING SUMMARY ............................ 13

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MATTHEW MOUSAVI | Managing PrincipalSRS National Net Lease Group610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.698.1116 | M: 714.404.8849

Matthew.Mousavi@srsre.com | CA License No. 01732226

EXCLUSIVELY MARKETED BY

MATTHEW G. HARDKE | First Vice President610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.698.1106 | M: 949.929.0558Matt.Hardke@srsre.com | License No. 01946266

PATRICK R. LUTHER, CCIM | Managing PrincipalSRS National Net Lease Group610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.698.1115 | M: 480.221.4221

Patrick.Luther@srsre.com | CA License No. 01209944

This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

INVESTMENT SUMMARY | 3 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIAAC

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OFFERINGPricing: $4,000,000Net Operating Income: $213,925 Cap Rate: 5.35%

PROPERTY SPECIFICATIONSRentable Area: 8,060 SFLand Area: 0.82 AcresProperty Address: 702 Center Drive, San Marcos, CA 92069Year Built / Remodeled: 1991Parcel Number: 2261117600Ownership: Fee Simple (Land and Building)

SRS Real Estate Partners is pleased to offer for sale Nordahl Marketplace Shops, a 8,060 square foot, 100% leased two-tenant retail pad in San Marcos, CA. The property has been well-maintained and is being offered free and clear of existing debt. The current tenants have between four and seven years remaining on NNN leases with 1 (5-year) option period, but there is long-term upside in breaking up the space to increase rents or reposition as a single tenant asset for ease of management. Both leases feature increases in their option period, which generates NOI growth and hedges against inflation.

The subject property is strategically located as an outparcel to Walmart, Costco, and Kohls, centrally located within the power center, just off the signalized, hard corner intersection of Nordahl Road and Montiel Road with a combined traffic count approaching 50,000 vehicles per day. It is situated immediately north of the CA-78 Freeway with 159,000 vehicles per day with direct on/off-ramp access. The Nordahl Marketplace boasts prominent freeway and pylon signage with five points of ingress and egress. Nordahl Marketplace Shops features attractive signage on all four sides of the building, contributing to exceptional visibility throughout the center.

Nordahl Marketplace Shops features a strong synergy with national/credit tenants within the Nordahl Marketplace such as Starbucks, McDonalds, KFC, Taco Bell, Panda Express, Cold Stone, Pizza Hut, Hooters, Guitar Center, Verizon, T-Mobile, SuperCuts, H&R Block, and Navy Federal Credit Union. The trade area demonstrates strong demographics with a high average household income over $78,000 and population of 232,655 within a five mile radius.

*Tenants not to be disturbed. All property tours to be arranged through listing agents.

NORDAHL MARKETPLACE SHOPS - SAN MARCOS, CALIFORNIA

HIGHLIGHTS | 4 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIAAC

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100% Leased PAD / Fee Simple Ownership • Tenants include Lakeshore Learning and King Massage• Limited landlord management• Tenants reimburse for CAM, insurance, and taxes

Outparcel to Walmart & Costco / Within Power Center• Outparcel to Nordahl Marketplace, a power center anchored by Walmart, Costco, and Kohls• Other national/credit tenants within the power center include: Starbucks, McDonalds, KFC,

Taco Bell, Panda Express, Cold Stone, and more• Strong tenant synergy with crossover traffic

Synergy With Two Nearby Elementary Schools• The subject property is located near two elementary schools: Rob Springs and Knob Hill• Close proximity to these schools increases consumer draw for subject property

Interstate Access / Near Signalized, Hard Corner Intersection / Excellent Visibility

• Near the signalized, hard corner intersection of Nordah Road and Montiel Road (50,000 vehicles per day) with excellent visibility, access, and street frontage

• Just north of California Highway 78 (159,000 vehicles per day) with direct on/off-ramp access

• Signage on all four sides of the building further increases visibility for the property

Strong Demographics Within 5-Mile Trade Area• Over 232,000 residents and 93,000 residents support the trade area• $78,000 average household income

PROPERTY DESCRIPTION | 5 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIAAC

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PROPERTY DESCRIPTION

PARCELParcel: 2261117600 Acres: 0.82 Square Feet: 35,719

ZONINGSPA: Specific Plan Area

ACCESSThere are two access points with one (1) along Center Drive and one (1) along M. Lane.

TRAFFIC COUNTSCenter Drive: .........................................................................................................................................................................10,500Ronald Packard Parkway/ State Highway 78: ......................................................................................................................159,000

IMPROVEMENTSThere is approximately 8,060 SF of existing building area.

PARKINGThere are approximately 51 parking spaces on the owned parcel. The parking ratio is approximately 6.32 per 1,000 SF of leasable area.

YEAR BUILT1991

AERIAL VIEW | 6 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

AERIAL VIEW | 7 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

LOCATION MAP | 8 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

SAN MARCOS

2015 ESTIMATED POPULATION3 Mile ........................................................115,8485 Mile ........................................................232,655

2015 AVERAGE HOUSEHOLD INCOME3 Mile ........................................................$70,0075 Mile ........................................................$78,813

2015 ESTIMATED TOTAL EMPLOYEES3 Mile ......................................................... 56,1235 Mile ......................................................... 93,328

SAN DIEGO

SAN CLEMENTE

OCEANSIDE

WALMART & COSTCO OUTPARCEL

SITE PLAN | 9 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIANo

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M Ln.

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Monument Sign

SUITE NAME SQ FT

1 Lakeshore Learning Store 7,000

2- King Massage 1,060

Center Dr. 10,500 VPD

M Ln

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AREA OVERVIEW | 11 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

CITY OF SAN MARCOSSan Marcos is a city in the North County region of San Diego County in the U.S. state of California. The city’s population was 92,929 as of 2014. It is the site of California State University San Marcos. The city is bordered by Escondido to the east, Encinitas to the southwest, Carlsbad to the west, and Vista to the northeast.

The city is located in the center of North County’s Highway 78 transportation corridor, San Marcos easily connects to the region’s two major north-south freeways (Interstate 5 and Interstate 15) and also offers transit via the Sprinter light rail line, which has three stations in the City and links with the Coaster line, as well as Amtrak. The city’s major employers reflect its economic strengths and diversity. Education employment dominates, with Cal State University San Marcos, Palomar College and the San Marcos School District providing more than 15,000 jobs while teaching about 60,000 students. Key employers include global leaders in irrigation, flow measurement, and electronic manufacturing technologies, a custom athletic uniform manufacturer, a farm-fresh dairy distributing products throughout Southern California and several specialty wholesale bakeries.

DEMOGRAPHICS 1 Mile 3 Miles 5 Miles2015 Estimated Population 10,977 115,848 232,6552020 Projected Population 11,712 121,598 244,3862010 Census Population 10,287 111,493 223,3352000 Census Population 8,754 100,197 191,675Projected Annual Growth 2015 to 2020 1.30% 0.97% 0.99%Historical Annual Growth 2010 to 2015 1.24% 0.73% 0.78%

2015 Estimated Households 3,849 37,369 73,4772020 Projected Households 4,113 39,251 77,0942010 Census Households 3,616 36,093 71,0632000 Census Households 3,032 32,785 62,850Projected Annual Growth 2015 to 2020 1.34% 0.99% 0.97%Historical Annual Growth 2010 to 2015 1.20% 0.66% 0.64%

2015 Estimated White 65.27% 59.52% 60.15%2015 Estimated Black or African American 2.73% 2.61% 2.37%2015 Estimated Asian or Pacific Islander 8.47% 6.66% 7.19%2015 Estimated American Indian or Native Alaskan 1.03% 0.98% 0.92%2015 Estimated Other Races 16.61% 24.94% 24.21%2015 Estimated Hispanic 33.67% 48.16% 46.55%

2015 Estimated Average Household Income $78,465 $70,007 $78,813 2015 Estimated Median Household Income $59,409 $51,115 $56,290 2015 Estimated Per Capita Income $27,289 $23,072 $25,313

2015 Estimated Total Businesses 790 5,155 9,0482015 Estimated Total Employees 7,990 56,123 93,328

RENT ROLL | 12 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIAAC

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EXPENSE LEASE LEASETENANTNAME

SIZESF

PRO RATA(SF)

RENTMONTHLY

RENT$/SF/MO

RENTANNUAL

RENT$/SF/YR

PRO RATA($)

INCREASEDATE

INC. RENTMONTHLY

RENT$/SF/MO

RENTANNUAL

RENT$/SF/YR

RECOVER TYPE

STARTDATE

ENDDATE

LEASE OPTIONS

LAKESHORE LEARNING 7,000 87% $15,750 $2.25 $189,000 $27.00 86% - - - - - - NET LEASE 2007 2022 1 (5-YEAR)

OPT 1: $16,403/YR

KING MASSAGE 1,060 13% $2,544 $2.40 $30,528 $28.80 14% - - - - - - NET LEASE OCT 2013 SEP 2018 1 (5-YEAR)

OPT 1, YEARS 6-7: $33,072

OPT 1, YEARS 8-10: $35,616

TOTAL OCCUPIED 8,060 100% $18,294 $2.27 $219,528 $27.24 100%

TOTAL VACANT 0 0% $0 $0 0%

TOTAL / WTD. AVG: 8,060 100% $18,294 $2.27 $219,528 $27.24 100%

Notes:

1) Lakeshore Learning does not reimburse for management.

PRICING SUMMARY | 13 NORDAHL MARKETPLACE SHOPS | SAN MARCOS, CALIFORNIA

PRICING SUMMARYPrice: $4,000,000

PSF: $496

Net Operating Income: $213,925

Cap Rate: 5.35%

OPERATING EXPENSES PSF/YRTaxes (1.118%): 1 $44,720 $5.55

Special Assessments: 1 $527 $0.07

Insurance: 2 $2,067 $0.26

CAM: 2 $16,987 $2.11

Management: 3 $8,605 $1.07

Total: $72,905 $9.05

OPERATING CASH FLOW IN-PLACEPotential Rental Revenue: $219,528

Potential Reimbursement Revenue: $67,302

Effective Gross Revenue (GOI): $286,830

Less Expenses: ($72,905)

Net Operating Income: $213,925

NOTES(1) Tax rate and special assessments are per 2015 tax bill.(2) Insurance and CAM are per 2015 operating statement.(3) Management is estimated at 3% of EGR.

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