McHenry Ave. Modesto, CA 95354

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514-520 McHenry Ave. Modesto, CA 95354 $815,000 7.

1 McHenry Ave. Modesto, CA $815, % Cap Rate Multi-Tenant Fully Leased Core, Visible Location Long Term Leases 44% IRR on 5 Yr. Hold Joe Muratore, CCIM

Investment Highlights Multi-Tenant, Core Location, Amazon Proof, Retail Asset: Highly visible on Modesto s main street (31,500 ADT) with plenty of onsite parking, this property will always be

2 Investment Highlights Multi-Tenant, Core Location, Amazon Proof, Retail Asset: Highly visible on Modesto s main street (31,500 ADT) with plenty of onsite parking, this property will always be attractive to service based tenants. The diversified current tenant roster ensure that the property is well used and built for the long term. Long Term Leases: The Running Iron and Switch to Vapor have long operating histories and new five year leases. Eyebrows by Valencia has a three year lease and End of the Trail Tattoo has six months left on their lease and prefers to go year to year. They have been in this location for decades and are paying below market rent for an extremely visible location. Excellent Return: This property, when financed at 70% LTV and a 5.25% interest rate offers a 44% IRR on a 5 year hold. This is difficult to beat.

Executive Summary Property Addresses: 514-520 McHenry Ave, Modesto, CA 95354 Property Location: East side of McHenry Ave. between E. Morris Ave.

3 Executive Summary Property Addresses: McHenry Ave, Modesto, CA Property Location: East side of McHenry Ave. between E. Morris Ave. and Baker Way Purchase Price: $815,000 Price Per Square Foot: $99 Assessor's Parcel No.s: , Zoning: Hazardous/ Toxic Conditions: (C-2) Commercial, None noted or suspected. Year Built: 1958/ 1914 Surface Parking Spaces: 30 Gross Leasable Area: Construction: Land Acres: McHenry Frontage: 8,165 Square Feet Wood Frame, Masonry Block 0.51 Acres 125 Linear Feet

Rent Roll Tenant Space Sq Ft Lease StartLease ExpirationRate PSF Rate MonthRate AnnualExpenses Increases Rate The Running Iron 516 McHenry 3,360 10/1/2012 2/28/2025 $0.

4 Rent Roll Tenant Space Sq Ft Lease StartLease ExpirationRate PSF Rate MonthRate AnnualExpenses Increases Rate The Running Iron 516 McHenry 3,360 10/1/2012 2/28/2025 $0.94 $3,145 $37,740 gross lease 3/1/2019 $ 3,224 3/1/2020 $ 3,305 3/1/2021 $ 3,386 3/1/2022 $ 3,472 3/1/2023 $ 3,559 Switch to Vapor 518 McHenry 2,145 4/1/2014 8/1/2023 $0.77 $1,650 $19,800 gross lease 9/1/2019 $ 1,700 9/1/2020 $ 1,750 9/1/2021 $ 1,800 9/1/2022 $ 1,850 End of The Trail 520 McHenry 2,260 est /1/2019 $0.62 $1,400 $16,800 gross lease Eyebrows by 514 McHenry 400 8/1/2018 7/31/2021 $1.63 $650 $7,800 gross lease 8/1/2019 $670 Valencia 8/1/2020 $689 TOTALS 8,165 $6,845 $82,140 Remaining Term Chart 6 REMAINING TERM (YEARS) The Running Iron Switch to Vapor End of The Trail Eyebrows

5 Purchase & Return STOCKTON, Metrics CALIFORNIA PURCHASE PRICE $815,000 PRICE PER SQUARE FOOT $99 CAP RATE AT PURCHASE 7.24% CASH ON CASH RETURN YR 1 (including Loan Principal Reduction) 11.99% INTERNAL RATE OF RETURN (5 Yr. Hold, 70% LTV, 5.25% Rate) 44.31% 5 Year Income and Expense Schedule Of Prospective Cash Flow Year Beginning January 2019 Year 1 Year 2 Year 3 Year 4 Year 5 Scheduled Base Rent Revenue $ 82,993 $ 84,875 $ 86,738 $ 88,360 $ 89,802 Vacancy Rate 3% 3% 3% 3% 3% General Vacancy $ (2,490) $ (2,546) $ (2,602) $ (2,651) $ (2,694) Effective Gross Revenue $ 80,503 $ 82,329 $ 84,136 $ 85,709 $ 87,108 Gross Operating Income $ 80,503 $ 82,329 $ 84,136 $ 85,709 $ 87,108 Operating Expenses Real Estate Taxes $ 9,780 $ 9,976 $ 10,175 $ 10,379 $ 10,586 Property Insurance $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 Management Fees $ 3,220 $ 3,293 $ 3,365 $ 3,428 $ 3,484 Repairs $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 Total Operating Expenses $ 21,500 $ 21,769 $ 22,041 $ 22,307 $ 22,571 Net Operating Income $ 59,003 $ 60,560 $ 62,095 $ 63,402 $ 64,537 CAP Rate (based on purchase cost) 7.24% 7.43% 7.62% 7.78% 7.92% Debt Service $ 42,040 $ 42,040 $ 42,040 $ 42,040 $ 42,040 NET CASH FLOW $ 16,963 $ 18,520 $ 20,055 $ 21,362 $ 22,497 Cash on Cash Return 6.94% 7.57% 8.20% 8.74% 9.20% Principal Reduction (PR) $ 10,936 $ 11,553 $ 13,252 $ 14,064 $ 14,925 Cash on Cash Incl Principal Reduction 11.41% 12.30% 13.62% 14.49% 15.31%

50% AMORTIZATION $ 25 ANNUAL PAYMENT $ 42,040 2023 Resale Projection PROJECTED RESALE 5 Year Sale NOI $ 64,537 CAP 7.

6 Purchase Financing FINANCING PURCHASE PRICE $ 815,000 LTV $ 1 LOAN AMOUNT $ 570,500 DOWN PAYMENT $ 244,500 INTEREST RATE 5.50% AMORTIZATION $ 25 ANNUAL PAYMENT $ 42, Resale Projection PROJECTED RESALE 5 Year Sale NOI $ 64,537 CAP 7.25% VALUE Bldg $ 890,172 DEBT PAYOFF $ 510,458 SALE EXPENSES $ 44,509 NET PROCEEDS $ 335,205 Internal Rate of Return Investor IRR Calculation 10 Year 2019 $ (185,497) 2020 $ 60, $ 62, $ 63, $ 399,743 IRR 44.19%

7 Tenant Occupancy STOCKTON, Map CALIFORNIA 95207

8 Traffic Data 5308 Average PACIFIC Daily AVENUE, Traffic Count, STOCKTON, McHenry CALIFORNIA & E. Fairmont: ,500 Cars Per Day

9 Site Map Central Location

10 Parcel Outline: Parcel Map:

It has an active shuffleboard league and, in 2008, they expanded, doubling the size of the bar to accommodate

11 Tenant Summary: THE RUNNING IRON Established in 1974, the Running Iron is one of the oldest and most established bar s in Modesto with a following spanning multiple generations. It has an active shuffleboard league and, in 2008, they expanded, doubling the size of the bar to accommodate pool tables, another shuffleboard, and entertainment. With a brand new five year lease in place, they are looking to be here for another thirty years.

12 Tenant Summary: END OF THE TRAIL TATTOO Charlie Cartwright, proprietor of the End of Trail, is a nationally recognized tattoo artist who is considered one of the two fathers of modern tattoo art. End of Trail is one of the largest and most recognized tattoo shops in Modesto. It has occupied that location for over 20 years.

The business brings many customers to the property.

13 Tenant Summary: SWITCH TO VAPOR The most popular vapor bar in Modesto, they also cater to more affluent vapor users. The business brings many customers to the property. They just signed a new five year lease and are committed to this location for the long term Pacific Ave., Stockton, CA T I naibenchmark.com

It has always been a good fit for a small salon operator.

14 Tenant Summary: EYEBROWS BY VALENCIA This space was a nail salon for several years and now is an eyebrow location. It has always been a good fit for a small salon operator. The current tenant, Valencia Febo, recently signed a three year lease and has painted and improved the space.

13,990 SF Price Per SF $142 CAP 7% Sale Date 8/2017 101 McHenry,

Price Per SF $152 CAP Not stated Sale Date 2/ 2018 1930 Crows Landing

15 Sold Comparables: 2110 College Ave., Modesto, CA Main Tenant Dog Groomer/ Cleaners Price $2,000,000 RBA 13,990 SF Price Per SF $142 CAP 7% Sale Date 8/ McHenry, Modesto, CA Main Tenant Salon/ Psychic Price $625,000 RBA 4,100 SF Price Per SF $152 CAP Not stated Sale Date 2/ Crows Landing Road Main Tenant Baskin Robbins/ Starbucks Price $1,214,438 RBA 9,525 SF Price Per SF $127 CAP Not Stated Sale Date 6/2018

16 Demographics:

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Calico Marketing Preview SOLERA APARTMENT COMPLEX ASKING PRICE $##,###,### UNITS: #### NO. OF BUILDINGS: ## APARTMENT MIX: ## Three Bedrooms ## Two Bedrooms ## One Bedrooms ## Studios ADDRESS: 1234 Address Street, City, State