Leased Investment Offering

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1 Leased Investment Offering 1005 Cleveland Ave. Santa Rosa, CA Price $2,795,000 CAP 6.1% Alex Tannous Investment Advisor Lic # Rami Batarseh Senior Advisor ramibatarseh1@gmail.com Lic # The above information, while not guaranteed, has been secured from sources we believe to be reliable. An interested party should verify the status of the property and the information herein.

2 Industrial / Retail Center Prime location within city downtown limits ±1.14 acre lot ± 22,646 Sq.ft. of total building area Three detached structures : o o o 1005 Cleveland Ave Santa Rosa, CA ± 12,524 sf Building #1 (Quonset Hut) ± 9,650 sf Building #2 (Concrete Tilt Up) ± 2,830 sf Building #3 (Wood Frame) APN # : CG Zoning Year built 1972 Adjacent to new SMART train tracks Fire sprinklers in hut & concrete tilt up Various ADA compliance upgrades Environmentally clean High ceilings 14ft 18ft Plenty of electrical power, 3 phase Newly paved parking lot Good upside potential / below market rents Substantial improvements over the last 7 years Desired spaces with great rental history For Sale $2,795,000

3 Rent Roll Tenant Suite Sq.ft Rent/sf/mo Lease Exp. Mo. Rent Base CAM Mo. TTL Yearly TTL Wolverton Baily, Inc. Computers & parts A & B 2,541 $ /5/2017 $3,000 $ 405 $ 3,405 $ 40, Smog C & D 2,050 $ /31/2018 $2,652 $ 340 $ 2,992 $ 35,904 Bruno's Auto Repair E 3,500 $ /31/2016 $2,635 $ 320 $ 2,955 $ 35,460 Ed Davis automotive F 3,700 $ /31/2018 $2,472 $ 305 $ 2,777 $ 33,324 King's Appliances G,H,I & J 6,750 $ /28/2017 $5,480 $ 475 $ 5,955 $ 71,456 Home Staging K 2,600 $ /31/2018 $2,026 $ 135 $ 2,161 $ 25,932 Artist Studio L 500 $ /30/2016 $500 $ 25 $ 525 $ 6,300 Total / Avg 21,641 $ 0.93 $18,765 $ 2,005 $20,770 $ 249,236

4 Operating Expenses Expenses - projected Monthly Yearly Insurance $ 416 $ 4,994 Water/Trash/Sewer $ 700 $ 8,400 Management $ 1,038 $ 12,462 Electricity & Gas (common area only) $ 623 $ 7,477 Landscaping/cleaning/Janitorial $ 208 $ 2,492 Maintenance/repairs $ 623 $ 7,477 Prop. tax (% of purchase price) $ 2,911 $ 34,938 Total Operating expenses $ 6,520 $ 78,240 CAP Rate Calculations NOI = $170,996 ($249,936 $78,240) Asking Price : $2,795,000 CAP Rate: NOI/Price = 6.1% CAP

5 Purchase Information Purchase price $ 2,795,000 Dow n payment 40% $ 1,118,000 Loan Amount $ 1,677,000 loan fees 0.5% $ 8,385 Closing fees 0.5% $ 13,975 Total cash down $ 1,140,360 Rent Roll Tenant Suite Sq.ft Re nt/sf /mo Lease Exp. Mo. Rent Base CAM Mo. TTL Yearly Wolverton Baily, Inc. A & B 2,541 $ /5/2017 $ 3,000 $ 405 $ 3,405 $ 40,860 Executive Summary Investment Analysis GRM Calculated CAP rate 6.12% Cash on Cash 5.39% Debt service ratio 1.46 Price / sq.ft. $ 129 Rent / sq.ft. / mo $ 0.87 Expenses/sq.ft/year $ Smog C & D 2,050 $ /31/2018 $ 2,652 $ 340 $ 2,992 $ 35,904 Bruno's Auto Repair E 3,500 $ /31/2016 $ 2,635 $ 320 $ 2,955 $ 35,460 Ed Davis automotive F 3,700 $ /31/2018 $ 2,472 $ 305 $ 2,777 $ 33,324 King's Appliances G,H,I & J 6,750 $ /28/2017 $ 5,480 $ 475 $ 5,955 $ 71,456 Home Staging K 2,600 $ /31/2018 $ 2,026 $ 135 $ 2,161 $ 25,932 Ow ner's storage L 500 $ /30/2016 $ 500 $ 25 $ 525 $ 6,300 Total / Avg 21,641 $ 0.93 $ 18,765 $ 2,005 $ 20,770 $ 249,236 Vacancy 0% $ - $ - $ - $ - Gross Effective Income $ 18,765 $ 20,770 $ 249,236 ` Expenses Monthly Yearly Insurance $ 416 $ 4,994 Water/Trash/Sew er $ 700 $ 8,400 Management 5.0% $ 1,038 $ 12,462 Electricity & Gas (common area only) 3.0% $ 623 $ 7,477 Landscaping/cleaning/Janitorial 1.0% $ 208 $ 2,492 Maintenance/repairs 3.0% $ 623 $ 7,477 Prop. tax (% of purchase price) 1.25% $ 2,911 $ 34,938 Total Operating expenses $ 6,520 $ 78,240 Expense PSF/year $ 3.62 Net operating income (NOI) $ 14,250 $ 170,996 Debt Servicing (loan information) Loan Amount $ 1,677,000 Interest rate 5.00% Amortization years 30 Principle & Interest $9,002 $108,030 Net Cash Flow $ 5,247 $ 62,966

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9 1005 Cleveland Ave. Santa Rosa CA 95404

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13 SANTA ROSA ECONOMIC AND DEMOGRAPHIC PROFILE Just 55 miles north of San Francisco, you ll find a vibrant city overflowing with all you love about California. Welcome to Santa Rosa, where everything comes together. Wine country and farm country, redwood forests and rivers, lakes and ocean. And in the center, our charming, thriving downtown, lined with intriguing shops and restaurants that delight casual diners and epicureans alike. The largest city between Portland and San Francisco, Santa Rosa serves a four county region as the hub for technology and entrepreneurial businesses, retail, banking and employment. Santa Rosa has a dynamic and well balanced economy, anchored by strengths in tourism, high tech manufacturing and retail. Residents enjoy a superb quality of life while employers benefit from a skilled workforce. As the county seat, Santa Rosa is the heart of Sonoma County, one of the world's leading wine regions. The city is also home to the region's state and federal offices and to California's latest Welcome Center, where millions of visitors a year discover what residents already know. Santa Rosa is the place to shop, dine, spend a long weekend or grow a business.

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