©2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF)

AN INTERNET-RESISTANT RETAIL CENTER ANCHORED BY CVS PHARMACY AND CRUNCH FITNESS IN COASTAL SAN DIEGO, CA

3202-3304 GREYLING DRIVE SAN DIEGO, CA

92123

HFF has been exclusively retained by Ownership to offer the opportunity to acquire Rancho Serra Mesa Center (the “Property”), a 56,395 square-foot community center located in San Diego. Anchored by CVS Pharmacy and Crunch Fitness, the Property features a diversified roster of daily-needs oriented national tenants and is currently 98.2% leased. Positioned at the intersection of Greyling Drive and Sandrock Road with over 20,000 cars per day, the Property is centrally located amidst a dense residential area within the heart of San Diego. Rancho Serra Mesa Center offers investors the opportunity to acquire a drug and fitness anchored retail center with income security from an internet-resistant income stream on long term leases in an infill Southern California location.

PRICE: $20,500,000

CAP RATE: 6.4%

YEAR ONE NOI: $1,321,687

ADDRESS: 3202-3304 Greyling Drive

San Diego, CA 92123

SQUARE FEET: 56,395

OCCUPANCY: 98.2%

YEAR BUILT: 1955, 1980, 2003

YEAR RENOVATED: 2012-2013

SITE SIZE: 4.96 acres on two parcels

PARKING: 270 spaces (4.79 per 1,000 SF)

PROPERTY SUMMARY

EXECUTIVE SUMMARY

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3 |

INCOME SECURITYOver 60% of the leased GLA is occupied by nationally recognized tenants that have a combined weighted average lease term in excess of seven years, providing investors with income security and future value appreciation.

INVESTMENT HIGHLIGHTS

INFILL NEIGHBORHOOD LOCATION IN UNDER-SERVED TRADE AREAThe Property is one of the few retail centers that serves the surrounding trade area, providing key services to the dense residential population nearby.

INTERNET RESISTANT TENANCYThe diverse tenant roster is resistant to internet/e-commerce trends by offering a variety of daily needs services and uses, including a drug store, fitness, food, health, and beauty.

FLEXIBLE EXIT STRATEGYRancho Serra Mesa Center is currently divided into two parcels, providing investors the opportunity to capture a potential cap rate arbitrage opportunity by selling CVS separately as a single tenant net-leased investment. Additionally, the center contains two multi-tenant pad buildings, that could potentially be parceled off and sold separately.

DENSE INFILL AREA WITH SUSTAINED POPULATION GROWTHThe immediate trade area surrounding Rancho Serra Mesa Center is extremely dense (population of more than 417,000 within a 5-mile radius) and is expanding – since 2000 the population within a 1-mile radius has increased over 18%.

GREYLING DR

DEMOGRAPHICS 1-MILE 3-MILE 5-MILE

2017 Population 20,090 144,555 417,717

2000-2017 Population Growth 18.43% 15.27% 7.19%

2017 Households 7,234 59,036 175,170

Average Household Income $89,815 $91,914 $92,309

LEASED TO NATIONAL TENANTS

WEIGHTED AVERAGE LEASE TERMPOPULATION GROWTH

NOI CAGR60% 3%

$500K

190,000

6.6+18%SINCE 2000

YE

AR

ANCHORED RETAIL CENTERS

I N A 1 - M I L E R A D I U S

ZERO COMPETING

MEDIAN HOUSING VALUE

WITHIN A 3-MILE RADIUS

DAYTIME POPULATION

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5 |5 |

(211,000 VPD - 0.6 MILES AWAY)

(168,000 VPD - 0.8 MILES AWAY)

GREYLING D

R (6,000 VPD)

SANDROCK RD

SANDROCK RD

THE VILLAGE AT SERRA MESA

(900 UNITS)

MIRA BELLA APARTMENTS

(293 UNITS)

OLYMPUS CORSAIR (323 UNITS)

SHARP MEMORIAL HOSPITAL

(670 BEDS)

ANGIER ELEMENTARY

SCHOOL (575 STUDENTS)

MONTGOMERY-GIBBS EXECUTIVE AIRPORT

RADY CHILDREN’S HOSPITAL

(250 BEDS)

(ATM)

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NOI GROWTH POTENTIALThere are multiple avenues to increase NOI at the Property, including lease up of existing vacant suites, mark to market rent opportunities upon lease expiration, and re-merchandising at higher rent levels.

LEASING VELOCITY AND DEMONSTRATED TENANT DEMANDSince the start of 2016, five tenants (totaling 17.4% of the leased GLA) have executed new leases, demonstrating the strong tenant demand for space in the trade area.

PROJECTED NOI

$500,000

$700,000

$900,000

$1,100,000

$1,300,000

$1,500,000

$1,700,000

$1,900,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NOI $1,322 $1,373 $1,404 $1,432 $1,462 $1,509 $1,566 $1,617 $1,661 $1,708

NOI

7 |

LAR

KD

ALE

AV

EN

UE

PALM AVENUE

SANDROCK R

OAD

GREYLING DRIVE

320

632

08

3210

3212

3232

A-B

3232 D

3236

3238

324

032

42

324

432

46

324

8

3252

3256

329

8-A

329

8-B

329

8-C

3260

3202-WAT

32703332

3232 C3202

3250-A3250-B

Potential forDrive-Through Pad

(ATM)

SITE PLAN

TENANT SF % OF GLA LEASE EXP.

CVS 14,684 26.0% Nov-28

Crunch Fitness 11,646 20.7% Aug-24

NPTI 5,135 9.5% Jul-27

Pacific Dental 2,633 4.7% Oct-28

Goodwill 2,000 3.5% Dec-19

H&R Block Enterprises 1,000 1.8% Apr-20

Subway 1,000 1.8% May-20

Wells Fargo ATM 200 0.4% Jul-20

T-Mobile N/A 0.0% Sep-21

Verizon N/A 0.0% May-20

OCCUPIED

VACANT

www.hfflp.com

BRYAN LEYManaging Director310.407.2120bley@hfflp.comCA Lic. #01458927

JUSTIN KUNDRAKDirector310.407.2145jkundrak@hfflp.comCA Lic. #01994398

DANIEL TYNERDirector949.798.4125dtyner@hfflp.comCA Lic. #01959818

TONY ENSBURYAssociate310.407.2153tensbury@hfflp.comCA License #02061712

CHRIS COLLINSDirector858.812.2353ccollins@hfflp.comCA Lic. #01927590

TODD SUGIMOTOManaging Director310.407.2111tsugimoto@hfflp.comCA Lic. #01264139

INVESTMENT ADVISORS DEBT ADVISORS

©2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses, and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

3202-3304 GREYLING DRIVE SAN DIEGO, CA

92123