4.9% CAP RATE • $8,700,000 • Land and building lease • 23 ......Today, Albertsons operates as a banner of Albertsons Companies, one of the largest food and drug retailers in

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ALBERTSON’S LLC – 3500 Panama LaneBakersfield, CA 93313

FOR SALE

Independently Owned and Operated / A Member of the Cushman & Wakefield AlliancePACCOM Realty Advisors, Inc., Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Property Information

• 4.9% CAP RATE

• $8,700,000

• Land and building lease

• 23 years remaining with 1.75% annual increases in rent

• Tenant pays expenses direct

Rudy BlankenshipSenior DirectorLic. #00515550+1 559 433 3525 [email protected]

9 River Park Place ESuite 101Fresno, CA 93720phone: +1 559 433 3500

paccra.com

Real Property Photo

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AGENDA

CONFIDENTIALITY AGREEMENT Pg. 2

EXECUTIVE SUMMARY Pg. 3• Offering Summary• Bank of America Lease Abstract• Site Description

ALBERTSON’S LLC TENANT OVERVIEW Pg. 4

AERIALS• Map of Bakersfield & Site Location Pg. 5

• Birds Eye Site Location & Immediate Area Amenities Pg. 6

DEMOGRAPHICS Pg. 7

PHOTOS• Albertson’s (Real property photos) Pg. 8

• Surrounding Retailers Pg. 9 - 10

BAKERSFIELD• Overview, Economy, Top Employers Pg. 11

BROKER BIOGRAPHY Pg. 12

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CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition ofthe property located at 3500 Panama Lane, Bakersfield, CA 93313, Kern County (“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 Owner or theProperty, 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 financialprojections 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 Cushman & Wakefield | Pacific Commercial Realty Advisors. Therefore, all projections,assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and othermeasurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospectivepurchasers. Neither the Owner or Cushman & Wakefield | Pacific Commercial Realty Advisors, nor any of their respective directors, officers, affiliates orrepresentatives are any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and nolegal 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 andinspections of the Property in evaluation 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 terminatediscussions 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 commitmentor 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 theProperty 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 confident nature, that you will hold and treat it in the strictest confidenceand 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 Cushman &Wakefield | Pacific Commercial Realty Advisors. You also agree that you will not sue this Memorandum or any of its contents in any manner detrimental to theinterest of the Owner or Cushman & Wakefield | Pacific Commercial Realty Advisors.

In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nornecessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatevernature independently and not rely on the contents of this Memorandum in any manner.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Cushman & Wakefield | PacificCommercial Realty Advisors.

Page | 2Back to Agenda

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EXECUTIVE SUMMARY

OFFERING SUMMARY

ALBERTSON’S LLC LEASE ABSTRACT

The Albertson’s investment offers an investor the second largest grocery producer located in a regional retail area of Bakersfield, California with surrounding tenants like Taco Bell,Carls Jr., Wells Fargo, Walgreens, Pizza Hut, Rite Aid, House of Wings, McDonald’s, and AutoZone. The average household income within a five-mile radius is about $74,709 peryear. The lease has approximately 23-years remaining with stepped increases in the rent every year beginning March 2019.

PRICE $8,700,000

NET INCOME $427,690 (03.01.2018)

CAP RATE 4.9%

LEASE Land and building lease

COMMENCEMENT March 2015 INSURANCE Lessee

LEASE TERM 25 Years – 23 years remaining, plus 2, 10 yr renewal terms CAM CHARGES Lessee

MARCH 2019 RENT $35,640 per month / $427,690 per year ** INSURANCE Lessee

RENT INCREASES 1.75% every year (beginning March 1, 2019) TAXES Lessee

** Landlord will supplement the rent difference between today’s rent and February 28, 2018


SITE DESCRIPTIONLOCATION 3500 Panama Lane, Kern County, Bakersfield, CA 93313

SITE SIZE Land: ±5 acres | Building: ±51,000

ZONING C-1, Neighborhood Commercial

FLOOD ZONE INFORMATION According to panel 06029C2300E (effective on 09/25/2008) the property is not located in a Special Flood Hazard Area on the Federal Emergency Management Agency (FEMA) “Flood Map Service Center”. Web Site: https://msc.fema.gov/portal/search

FLOOD ZONE X

https://msc.fema.gov/portal/search

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ALBERTSON’S LLC – Tenant OverviewIn 1939, Joe Albertson, a former Safeway district manager, took $5,000 he saved and $7,500he borrowed from his wife’s Aunt Bertie, and partnered with L.S. Skaggs to open his firstAlbertsons store on 16th and State Streets in Boise, Idaho. Joe knew the keys of running areally great store, and it was all about working hard for the customers: give them the productsthey want, at a fair price, with lots of tender, loving care. Joe was innovative, too. He had oneof the first in-store magazine racks in the country along with a scratch bakery and fresh icecream made in store. He worked hard, seven days a week on his vision to build his company,and through his inspiring work ethic and tireless determination to run the best store, the firststore thrived. Just two years later, he had opened two other stores in neighboringcommunities, and grew the fledgling company’s sales to over $1 million by the end of 1941.

Today, Albertsons operates as a banner of Albertsons Companies, one of the largest food anddrug retailers in the United States. With both a strong local presence and national scale, thecompany operates stores across 35 states and the District of Columbia under 19 well-knownbanners. Albertsons Companies is dedicated to helping people across the country live betterlives. In 2015 alone, with the help of generous customers, Albertsons Companies and theAlbertsons Companies Foundation gave more than $270 million in food and financial supportto the more than 2,300 communities they serve.

See the Albertson’s timeline: http://www.albertsons.com/wp-content/uploads/2015/07/Albertsons-75-Anniversary-Timeline.pdf


Albertson’s LLC Quick Stats

Type Private

Industry Retail / Grocery

Founded July 21, 1939, Boise, Idaho

Founders Joe Albertson

Headquarters Boise, Idaho, US

Number of locations 2,206 (2015, includes Safeway)

Services Supermarket

Revenue US $58.7 billion (2016)

Net Income US $409.9 billion (2016)

# of Employees 164,000 (2016)

Subsidiaries Safeway Inc., & Acme Markets

Source: https://en.wikipedia.org/wiki/Albertsons

http://www.albertsons.com/wp-content/uploads/2015/07/Albertsons-75-Anniversary-Timeline.pdf

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FOR SALE

Independently Owned and Operated / A Member of the Cushman & Wakefield AllianceCushman & Wakefield Copyright 2016. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

MAP OF BAKERSFIELD & SITE LOCATION


SITE

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BIRDS EYE SITE LOCATION & IMMEDIATE AREA AMENITIES


Panama Ln.

Campbell Rd.

Wible R

d.

Howard’s Mini Market

SITE

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DEMOGRAPHICS

Average Household Income ($): $71,827 $74,709$65,984


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PHOTOS – ALBERTSON’S LLC – REAL PROPERTY PHOTOS


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PHOTOS – SURROUNDING RETAILERS


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PHOTOS – SURROUNDING RETAILERS


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BAKERSFIELD CALIFORNIA – Overview

Bakersfield is a city in California and the county seat of Kern County. It covers about 142square miles (370 km2) near the southern end of the San Joaquin Valley and the CentralValley region. Bakersfield's population is approximately 365,000, making it the ninth-mostpopulous city in California and the 52nd-most populous city in the nation. TheBakersfield–Delano Metropolitan Statistical Area, which includes all of Kern County, had a2010 census population of 839,631, making it the 62nd largest metropolitan area in theUnited States. The more built-up urban area that includes Bakersfield and areasimmediately around the city, such as East Bakersfield and Rosedale, has a population ofapproximately 464,000.

The city is a significant hub for both agriculture and oil production. Kern County is themost productive oil producing county, and the fourth most productive agricultural county(by value) in the United States. Industries include natural gas and other energy extraction,aerospace, mining, petroleum refining, manufacturing, distribution, food processing, andcorporate/regional headquarters. The city is also the birthplace of the country music genreknown as the Bakersfield sound.

Economy

Bakersfield's historic and primary industries have related to Kern County's two mainindustries, oil and agriculture. Kern County in 2013 was the most oil productive county inAmerica. Kern County is a part of the highly productive San Joaquin Valley, and ranks inthe top five most productive agricultural counties in the nation. Major crops for KernCounty include: grapes, citrus, almonds, carrots, alfalfa, cotton, and roses. The city servesas the home for both corporate and regional headquarters of companies engaged in theseindustries.

Bakersfield also has a growing manufacturing and distribution sector. Several companieshave moved to Bakersfield because of its inexpensive land and access to the rest ofAmerica, as well as international ports in both Los Angeles and Oakland. Othercompanies have opened regional offices and non-oil/agricultural businesses because ofBakersfield's and Kern County's business friendly policies, such as having no local utilityor inventory taxes. Products manufactured in the city include: ice cream (world's largestice cream plant), central vacuums, highway paint, and stock racing cars.

Bakersfield is the largest city with the lowest sales tax in California at the state minimumof 7.25%.


BAKERSFIELD TOP EMPLOYERS

# Employer # of Employees

1 County of Kern 7,475

2 The Giumarra Companies 4,200

3 Grimmway Farms 3,500

4 Bolthouse Farms 2,000

5 Bakersfield Memorial Hospital 1,400

6 City of Bakersfield 1,300

7 Mercy Hospitals of Bakersfield 1,200

8 ARB 1,200

9 Kern Medical Center 1,200

10 State Farm Insurance 1,045

11 Sun World 1,025

12 Chevron 1,000

13 Clinica Sierra Vista 1,000

14 San Joaquin Community Hospital 880

15 AndrewsAg 800

16 Sun Pacific 800

17 Paramount Farms 800

18 California State University, Bakersfield 600

19 Aera Energy 600

20 Kaiser Permanente 500

Source: https://en.wikipedia.org/wiki/Bakersfield

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FOR SALE


BROKER BIOGRAPHY

RUDY BLANKENSHIPLic., #00515550Senior DirectorInvestment Properties Specialist

ROLE & RESPONSIBILITIESRudy Blankenship is an investment specialist concentrating on single-tenant, net-leased investments throughout the United States, Rudy joined Cushman & Wakefield | Pacific in April2013. Over his 40-year career, Rudy has been affiliated with CBRE, Grubb & Ellis, and CB Commercial.

WORK EXPERIENCERudy has closed over $800 million of investment real estate throughout the United States. He has generated significant relationships with real estate developers; real estate investmentcompanies, and insurance and financial institutions. Rudy diligently provides his clients with sophisticated skills in both Buyer and Seller representation. He is focused on qualityrepresentation with attention to client concerns.

EDUCATION, MEMBERSHIPS AND AWARDS

• International Council of Shopping Centers (ICSC)• United States Navy/United State Marine Corps• Fresno City College, Fresno, CA• Arizona State University, Tempe, AZ


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FOR SALE


Rudy BlankenshipSenior DirectorLic. #00515550+1 559 433 3525 [email protected]

9 River Park Place ESuite 101Fresno, CA 93720phone: +1 559 433 3500

paccra.com

Back to Agenda Page | 13

Real Property Photo

Documents

4.9% CAP RATE • $8,700,000 • Land and building lease • 23 ......Today, Albertsons operates as a banner of Albertsons Companies, one of the largest food and drug retailers in