JACK IN THE BOX

& CHEVRON

MULTI -TENANT RETAIL PADABSOLUTE NNN INVESTMENT

OPPORTUNIT Y

O F F E R I N G M E M O R A N D U M

7110 CAMINO ARROYO | GILROY, CA 95020

INVESTMENT GRADE RATED TENANTS

FAST-GROWING RESIDENTIAL COMMUNITY

EXCELLENT VISIBILITY AND CURB APPEAL

CAPITAL MARKETS | INVESTMENT PROPERTIES

S U B J E C T P R O P E R T Y P H OTO S

MIKE PHILBINVICE PRESIDENT

+1 818 907 4691LIC. 01922822

MIKE.PHILBIN@CBRE.COM

AMAR GOLIVICE PRESIDENT

+1 818 907 4692LIC. 01883944

AMAR.GOLI@CBRE.COM

SAM ALISONSENIOR VICE PRESIDENT

+1 818 907 4690LIC. 01167124

SAM. ALISON@CBRE.COM

RICK SHAFFERSENIOR VICE PRESIDENT

+1 408 453 7430LIC. 00853889

RICK.SHAFFER@CBRE.COM

MILES WATERSANALYST

+1 818 907 4694LIC. 02047288

MILES.WATERS@CBRE.COM

CBRE, INC.234 SOUTH BRAND AVENUE

GLENDALE, CA 91204 P: +1 818 502 6700

CBRE.COM

CONTACT US

Executive Summary

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA4

$3,499,108 Offering Price

Property Summary Investment Highlights

4.15% Cap Rate

Absolute NNN Investment

Best-In-Class Corporate Guarantee

20-Year Tenancy • Proven Commitment To Location

Close Proximity To Silicon Valley

Fast-Growing Residential Community

Dominant Retail Corridor Location

Attractive Rental Increases

Excellent Access & Visibility

Ideal 1031 Exchange Property

7110 Camino Arroyo | Gilroy, CA 95020

Offering Price $3,499,108

Offering Cap Rate 4.15%

Lease Type Absolute NNN

Building SF ±4,985 SF

Yr. Constructed 2004

Acreage ±1.40 acres

Current Annual Rent $145,200

Options Four (4), Five-Year Options

Ownership Fee Simple

CBRE is of fer ing to qual i f ied investors the oppor tunity to acquire a fee s imple interest in the Jack in the Box and Chevron retai l pad located at 7110 Camino Arroyo in Gi l roy, Cal i fornia 95020 (the “Proper ty”) . The Proper ty is being of fered free and clear of any debt . Ownership ant ic ipates investors consider the strong real estate fundamentals and Tenant’s creditwor thiness when evaluat ing the Proper ty.

Income Overview

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA6

Lease Abstract

Rent Schedule

7110 Camino Arroyo |Gilroy, CA 95020

Tenant Jack in the Box & Chevron

Guarantor Jack in the Box Inc. and Chevron USA Inc.

Lease Date June 21, 2004

Lease Type Absolute NNN

Building SF ±4,985 Square Feet

Yr. Constructed 2004

Acreage ±1.40 AC

Rent Commencement June 1, 2005

Term Expiration May 31, 2025

Primary Term 20 Years

Options Four (4), 5-Year Options

Rent Increases 10% every 5 Years

Building Use Retail - QSR & Fuel Station

Roof, Parking, Structure, Taxes, Insurance, HVAC, Utilities

Tenant Responsibility

Lease Term Start - End Date Annual Rent

Rental Increases

CURRENT 6/1/2015 – 5/31/2020 $145,200 -

Years 16 - 20 6/1/2020 – 5/31/2025 $159,720 10%

Option PeriodsOpt 1: Years 21 - 25 6/1/2025 – 5/31/2030 $175,692 10%

Opt 2: Years 26 - 30 6/1/2030 – 5/31/2035 $193,261 10%

Opt 3: Years 31 - 35 6/1/2035 – 5/31/2040 $212,587 10%

Opt 4: Years 36 - 40 6/1/2040 – 5/31/2045 $233,846 10%Subject Proper ty Photos

Chevron is operating under a sublease concurrent with Jack in the Box

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA7

Subject Proper ty Photos

CAMINO ARROYO (±20,994 VPD)

Tenant Overviews

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA9

Jack in the Box, (NASDAQ: JACK) is an American fast-food restaurant chain founded in 1951 by Robert O. Peterson. It is headquartered in San Diego, California, and operates over 2,250 locations across 21 states, primarily on the West Coast. Jack in the Box is one of the nation’s largest hamburger chains and, based on number of restaurants, is the second or third largest fast food hamburger chain in each of their top 10 major markets.

Founder Robert O. Peterson was already an owner of several successful restaurants when he opened Topsy’s Drive-In at 6270 El Cajon Boulevard in

San Diego in 1941. Several more Topsy’s were opened and eventually renamed Oscar’s, a chain with circus-like décor featuring drawings of a starry-eyed clown. This clown would eventually become the face of Jack in the Box when the El Cajon Boulevard restaurant was converted in 1951 to a hamburger stand focused on drive-through service. While the drive-through concept was not new, Jack in the Box of fered the innovation of a two-way intercom system, a device Peterson had obtained the rights for in 1947. The company would become the first major chain to use the system, making drive-through service the focus of operations. With the success derived from such operations, all of the Oscar’s locations were redesigned with intercoms and rechristened as Jack in the Box restaurants. Peterson’s holding company for the Jack in the Box brand was called Foodmaker Company, which in 1966 became Foodmaker, Inc. All Jack in the Box locations at this time were company-owned, and all decisions related to location sites, food preparation, quality control and the hiring and training of on-site managers and staff was subject to rigorous screening processes and strict per formance standards.

In 1968, Peterson sold Foodmaker to Ralston Purina Company and locations began to be franchised. However, in 1985, Ralston Purina decided it was a non-core asset and elected to sell it to management af ter 17 years. Management subsequently took the company public, and today it trades on the NASDAQ exchange under ticker symbol "JACK." As of October 2, 2016, there were 2,250 Jack in the Box locations, of which roughly 81.6% were franchise operations.

For FY2017 ended October 1, 2017, Jack in the Box reported total revenue of $1.55 bill ion and net income of $135.07 million.

Tenant Overview

Guarantor ProfileCompany Jack in the Box, Inc.

Type Public

Exchange NASDAQ

Stock Symbol JACK

Total Revenue (FY2017) $1.55 billion

Net Income (FY2017) $135.32 million

Total Assets (FY2017) $1.37 billion

No. of Employees ±20,000

Tenant Business Retail/Quick Service Restaurant

Founded 1951

Headquarters San Diego, CA

Website www.jackinthebox.com

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA10

Chevron Corporation, (NYSE: CVX) through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations world wide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the extrapolation, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and

manufacturing and marketing commodity petrochemicals, and fuel and lubricant additive, as well as plastics for industrial uses.

Chevron Corporation was founded in 1879 and is headquartered in Sam Ramon, California and active in more than 180 countries. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron is one of the world's largest oil companies; as of 2017, it ranked nineteenth in the Fortune 500 list of the top 500 US closely held and public corporations and sixteenth on the Fortune Global 500 list of the top 500 corporations worldwide. It was also one of the original Seven Sisters (Anglo-Iranian Oil Company - now BP; Gulf Oil - later part of Chevron; Royal Dutch Shell; Standard Oil Company of California - originally SoCal, now Chevron; Standard Oil Company of New Jersey - Esso, later Exxon, now part of ExxonMobil; Standard Oil Company of New York - Socony, later Mobil, now part of ExxonMobil; and Texaco - later merged into Chevron) that dominated the global petroleum industry from the mid-1940s to the 1970s. Publicly traded on the New York Stock Exchange, Chevron Corporation employs approximately 55,200 people, and earned 2017 revenue and net income of $141.72 billion and $9.2 billion, respectively. It is an investment grade rated company with a Standard & Poor’s rating of “AA-”.

Subtenant Profile

Company Chevron

Type Public

Exchange NYSE

Stock Symbol CVX

Total Revenue (FY2017) $141.72 billion

Net Income (FY2017) $9.195 billion

Total Assets (FY2017) $253.80 billion

Total Equity (FY2017) $148.12 billion

No. of Employees ±51,900

Industry Oil & Gas

Founded 1879

Headquarters San Ramon, CA

Website http://www.chevron.com/

Tenant Overview

Location Overview

N

±80 miles

SAN FRANCISCO

±150 miles

SACRAMENTO

±110 miles

STOCKTON

±25 miles

±47 miles

±41 miles

±88 miles

SAN JOSE

PALO ALTO

MONTEREY

MODESTO

±120 miles

FRESNO

SANTA CRUZ MOUNTAINS

GILROY

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA13

DOWNTOWN GILROY, CA

Location OverviewGilroy is strategically located in the southern por tion of Silicon Valley, and is approximately 25 miles south of San Jose, California. Over the past decade, Gilroy has been diversifying its economy to become a major retail and employment destination. 30% of Gilroy’s residents presently commute daily to the high-tech companies in nearby San Jose and the metropolitan San Francisco area. The interchange of US Highway 101 and CA Route 152 is adjacent to the shopping center and the Caltrain rail station is less than one mile away. Freeways and commuter rail provide access to San Jose, the peninsula, San Francisco, and the entire Bay Area; and, of fer a reverse commute for nor th Santa Clara County residents working at technology and manufacturing firms with operations in Morgan Hill and Gilroy.

Already considered a major center for regional shopping, Gilroy of fers three large retail complexes with a vast array of products and services. Gilroy's retail market share attracts well over 200,000 shoppers and taxable retail sales exceed $1 Bill ion annually. It also has a historic downtown with retail and service oriented businesses. The City of Gilroy is business-friendly and offers a wide range of incentive programs to businesses that generate sales tax or provide new jobs for the area.

Gilroy is an affordable family-friendly community and is one of the most sought-af ter locations in south Silicon Valley for residential and industrial sites. The high-speed rail l ine currently under construction includes a Gilroy station.

Unlike other locations in the Bay Area, Gilroy has an abundance of land ready for development, including parcels zoned for commercial, industrial, or residential use. The City's infrastructure is strong and ready to accommodate new growth. Gilroy has a very talented workforce; area colleges and local education centers tailor innovative programs training future employees to meet specific employer needs. The area enjoys abundant regional venture capital opportunities with the most productive workforce in the nation.

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA14

N

Gilroy Crossing Shopping Center

CAMINO ARROYO (±20,994 VPD)

RENZ LANE

PACHECO PASS HWY. (±47,754 VPD)

PACHECO PASS REGIONAL CENTER RETAILER

Gilroy Crossing Shopping Center

South Valley Plaza Shopping Center

Gilroy Premium Outlets

Walmart Supercenter

PACHECO PASS SHOPPING

CENTER

Subject Property

N

US HWY 101 - S VALLE

Y FWY (±72,000 VPD)

SOUTH VALLEY MIDDLE SCHOOL

GILROY UNIFIED SCHOOL DISTRICT

GILROY UNIFIED SCHOOL DISTRICT

RAP4 - AIRSOFT & PAINTBALL

ELIOT ELEMENTARY SCHOOL

GILROY PREP SCHOOL

CAMINO ARROYO

PAC

HEC

O P

ASS

HW

Y

PACHECO PASS SHOPPING

CENTER

Subject Property is one of ten (10) parcels total. See next page for site

details.

Walmart Supercenter

NCAM

INO

ARROYO

(±20,994 VPD

)

APN: 841-18-075 ±3.94 ACRES

APN: 841-18-077 ±1.4 ACRES

SUBJECT PROPERTY PARCEL

Additional Parcels Available - Ask Broker for Details

APN: 841-18-071 ±2.39 ACRES

APN: 841-18-072 ±1.33 ACRES

APN: 841-18-070 ±2.9 ACRES

APN: 841-18-079 ±7.63 ACRES

APN: 841-18-078 ±1.84 ACRES

APN: 841-18-061 ±0.7 ACRES

APN: 841-18-062 ±1.03 ACRES

APN: 841-18-59 ±3.62 ACRES

PACHECO PASS HWY (±47,754 VPD)

US H

WY 101 - S V

ALLEY FW

Y (±72,000 V

PD)

PACHECO PASS SHOPPING

CENTER

PARCEL MAP

SUBJECT PROPERTY

N

CAMINO ARROYO (±20,994 VPD)

RENZ LA

NE

PAC

HEC

O P

ASS

HW

Y (±

47,7

54 V

PD)

US HWY 101 - S VALLEY FWY (±72,000 VPD)

PACHECO PASS SHOPPING

CENTER

SITE PLAN

STARBUCKS

Walmart Supercenter

N

CAM

INO

ARROYO

(±20,994 VPD

)

PACHECO PASS HWY (±47,754 VPD)

PACHECO PASS HWY (±47,754 VPD)

Additional Properties Available - Ask Broker for Details

Subject Property

PACHECO PASS SHOPPING

CENTER

MAJOR TENANTS

US H

WY 101 - S V

ALLEY FW

Y (±72,000 V

PD)

JACK IN THE BOX & CHEVRON | PACHECO PASS | GILROY, CA19 GILROY, CA: AERIAL VIEW

1 MI

3 MI

5 MI

N

GILROY

AREA DEMOGRAPHICS

POPULATION

2022 POPULATION* 5,791 51,218 64,393

2017 POPULATION 5,426 48,372 60,775

2010 POPULATION 4,808 45,040 56,370

2017-2022 GROWTH* 6.73% 5.88% 5.95%

2010-2017 GROWTH 12.85% 7.40% 7.81%*Projected

HOUSEHOLDS

2022 HOUSEHOLDS* 1,355 14,934 19,050

2017 HOUSEHOLDS 1,267 14,072 17,945

2010 HOUSEHOLDS 1,105 12,930 16,452

2017-2022 GROWTH* 6.95% 6.13% 6.16%

2010-2017 GROWTH 14.66% 8.83% 9.07%*Projected

HOUSEHOLD INCOME

2017 AVERAGE INCOME $60,060 $99,601 $112,255

2017 MEDIAN INCOME $35,580 $78,984 $88,895

0–1 MI 0–3 MI 0–5 MI

CBRE, Inc. operates within a global family of companies with many subsidiaries and 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, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALIT Y AGREEMENT Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

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

DISCLAIMER This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves 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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2018 CBRE, Inc. All Rights Reserved.

SANTA CLARA COUNTY, CA

CBRE © 2018 All Rights Reserved. All information included in this proposal pertaining to CBRE including but not limited to its operations, employees, technology and clients are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.

This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. 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. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

EXCLUSIVELY REPRESENTED BY

MIKE PHILBIN Vice President +1 818 907 4691 CA Lic. 01922822 mike.philbin@cbre.com

RICK SHAFFER Senior Vice President +1 408 453 7430 CA Lic. 00853889 rick.shaffer@cbre.com

MILES WATERS Analyst +1 818 907 4694 CA Lic. 02047288 miles.waters@cbre.com

SAM ALISON Senior Vice President +1 818 907 4690 CA Lic. 01167124 sam.alison@cbre.com

AMAR GOLI Vice President +1 818 907 4692 CA Lic. 01883944 amar.goli@cbre.com

CAPITAL MARKETS | INVESTMENT PROPERTIES