for lease CHICAGO GATEWAY 1825 & 1955 CHICAGO AVENUE RIVERSIDE, CA

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for lease CHICAGO GATEWAY 1825 & 1955 CHICAGO AVENUE RIVERSIDE, CA For information, please contact: THOMAS P. PIERIK, SIOR 951.276.3610 tpierik@lee-associates.com DRE Lic. #00982027 DAVID G.

1 for lease CHICAGO GATEWAY 1825 & 1955 CHICAGO AVENUE RIVERSIDE, CA For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic. # DAVID G. MUDGE, CCIM, SIOR DRE Lic. # RICHARD J. ERICKSON DRE Lic. # Property Features 2-story professional office buildings with high-quality finishes Flexible floorplates designed to accomodate a variety of users Strategically located in Hunter Park with great access to the CA-60, CA-91 and I-215 freeways Excellent visibility along Chicago Avenue Walking distance to numerous restaurants Abundant parking on-site 4:1,000 parking ratio Corp. ID Pierik Mudge Erickson Inland Empire Office Team Lee & Associates COMMERCIAL REAL ESTATE SERVICES LEE & ASSOCIATES COMMERICIAL REAL ESTATE SERVICES, INC MISSION INN AVENUE, RIVERSIDE, CALIFORNIA 92501

for lease 1825 & 1955 CHICAGO AVENUE RIVERSIDE, CA 2-STORY PROFESSIONAL OFFICE BUILDINGS For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic.

ERICKSON DRE Lic. #01219183 951.276.3637 rich.erickson@lee-associates.com Building A 1825 Chicago Avenue Suite # Available SF Lease Rate 100 3,346 $1.

75 FSG Building B 1955 Chicago Avenue Suite # Available SF Lease Rate 110 2,312 shell $1.75 FSG Corp. ID 01048055 www.inlandempireoffice.

2 for lease 1825 & 1955 CHICAGO AVENUE RIVERSIDE, CA 2-STORY PROFESSIONAL OFFICE BUILDINGS For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic. # DAVID G. MUDGE, CCIM, SIOR DRE Lic. # RICHARD J. ERICKSON DRE Lic. # Building A 1825 Chicago Avenue Suite # Available SF Lease Rate 100 3,346 $1.75 FSG Contiguous with Suite 130 to offer up to 6,407 SF 110 6,390 $1.75 FSG 130 3,061 $1.75 FSG Divisible to 1,287 SF and 1,774 SF 230 6,385 shell $1.75 FSG Building B 1955 Chicago Avenue Suite # Available SF Lease Rate 110 2,312 shell $1.75 FSG Corp. ID Pierik Mudge Erickson Inland Empire Office Team Lee & Associates COMMERCIAL REAL ESTATE SERVICES LEE & ASSOCIATES COMMERICIAL REAL ESTATE SERVICES, INC MISSION INN AVENUE, RIVERSIDE, CALIFORNIA 92501

office condos for sale and lease CHICAGO GATEWAY 1835, 1845, 1935 & 1945 CHICAGO AVENUE RIVERSIDE, CA For information, please contact: THOMAS P. PIERIK, SIOR 951.276.3610 tpierik@lee-associates.

3 office condos for sale and lease CHICAGO GATEWAY 1835, 1845, 1935 & 1945 CHICAGO AVENUE RIVERSIDE, CA For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic. # DAVID G. MUDGE, CCIM, SIOR DRE Lic. # RICHARD J. ERICKSON DRE Lic. # Property Features Professional mixed-use business campus with high-quality finishes and lush landscaping Flexible floorplates designed to accomodate a variety of users Strategically located in Hunter Park with great access to the CA-60, CA-91 and I-215 freeways Excellent visibility along Chicago Avenue Walking distance to numerous restaurants Abundant parking on-site 4:1,000 parking ratio Corp. ID Pierik Mudge Erickson Inland Empire Office Team Lee & Associates COMMERCIAL REAL ESTATE SERVICES LEE & ASSOCIATES COMMERICIAL REAL ESTATE SERVICES, INC MISSION INN AVENUE, RIVERSIDE, CALIFORNIA 92501

1835, 1845, 1935 & 1945 CHICAGO AVENUE RIVERSIDE, CA OFFICE CONDOS AVAILABLE FOR SALE AND LEASE For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic. #00982027 951.276.

erickson@lee-associates.com Building C 1835 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit A 4,187 improved $1.35 MGR $145.00 $607,115 Unit B 4,187 improved $1.

00 $517,875 Unit D 4,187 improved $1.35 MGR $145.00 $607,115 Building E 1935 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit A 3,856 improved N/A $147.

The front 1,974 SF of Unit A is leased. The back-half of Unit A (Unit A2) is available for lease. The entire Unit A (3,856 SF) can be purchased for $147 PSF.

4 1835, 1845, 1935 & 1945 CHICAGO AVENUE RIVERSIDE, CA OFFICE CONDOS AVAILABLE FOR SALE AND LEASE For information, please contact: THOMAS P. PIERIK, SIOR DRE Lic. # DAVID G. MUDGE, CCIM, SIOR DRE Lic. # RICHARD J. ERICKSON DRE Lic. # Building C 1835 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit A 4,187 improved $1.35 MGR $ $607,115 Unit B 4,187 improved $1.35 MGR $ $607,115 Units A and B combine for 8,374 SF Building D 1845 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit B 4,143 shell $1.60 MGR $ $517,875 Unit D 4,187 improved $1.35 MGR $ $607,115 Building E 1935 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit A 3,856 improved N/A $ $566,832 Unit A2* 1,882 shell $1.60 MGR N/A N/A Unit B 2,983 N/A $ $462,365 Unit C 3,769 shell $1.60 MGR $ $471,125 *Unit A2 is part of Unit A. The front 1,974 SF of Unit A is leased. The back-half of Unit A (Unit A2) is available for lease. The entire Unit A (3,856 SF) can be purchased for $147 PSF. Building F 1945 Chicago Avenue Unit Total SF Lease Rate Sale Price PSF Sale Price Unit A 3,769 shell $1.60 MGR $ $471,125 Unit C 3,857 improved $1.35 MGR $ $559,265 Corp. ID LEE & ASSOCIATES COMMERICIAL REAL ESTATE SERVICES, INC MISSION INN AVENUE, RIVERSIDE, CALIFORNIA 92501

for sale - owner/user opportunity CHICAGO GATEWAY 1825 Chicago Avenue, Riverside, California ±26,648-square-foot, 2-story professional office building located in the master-planned project, Chicago

5 for sale - owner/user opportunity CHICAGO GATEWAY 1825 Chicago Avenue, Riverside, California ±26,648-square-foot, 2-story professional office building located in the master-planned project, Chicago Gateway, at the very intersection of Riverside s thriving Downtown and Hunter Park. A hub for industry, technology and innovation, Hunter Park boasts excellent freeway access, numerous restaurants, and close proximity to business services, retail amenities, and the University of California-Riverside. Chicago Gateway is a professional mixed-use business campus with new, high-quality construction, lush landscaping, abundant parking, and street-front visibility along a major thoroughfare, Chicago Avenue. For information, please contact: TOTAL SQUARE FOOTAGE...±26,648 RSF PURCHASE PRICE...$3,730,000 ($140/SF) YEAR BUILT PARKING RATIO...4:1,000 THOMAS P. PIERIK, SIOR tpierik@lee-associates.com DRE License DAVID G. MUDGE, CCIM, SIOR dmudge@lee-associates.com DRE License RICHARD J. ERICKSON rich.erickson@lee-associates.com DRE License

6 for sale - owner/user opportunity Chicago Gateway 1825 Chicage Avenue, Riverside, California Suite 110 Vacant Suite 130 Vacant Suite 100 Vacant First Floor Suite 230 Vacant Suite 210 Vacant Suite 201 Leased Second Floor THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

7 1825 chicago avenue, riverside, ca ±26,648 RSF EXCELLENT OWNER/USER OPPORTUNITY

8 own vs. lease ANALYSIS CHICAGO GATEWAY 1825 CHICAGO AVEUNE, RIVERSIDE, CALIFORNIA Cost of Ownership Shell Purchase Price (psf) $ Owner Build-Out Projected Budget (psf) $0.00 Total Purchase Price $ Times: SF Purchased 26,648 Total Shell and TI Costs $3,730, Plus: Loan Financing Costs $36, Total Acquisition Costs $3,766, * There is an existing 3,287 SF tenant on the second floor who would need to be relocated if owner/user intends to occupy the entire builidng. Loan Assumptions: Total Acquisition Costs $3,766,796 Less: Percent Down 10% $(376,680) Total Amount Financed $3,390,117 Annual Interest Rate 5.00% Term (years) 25 Monthly Payment $19, Annual payment $237, Total Loan Payment (psf) $8.92 Monthly psf $0.74 Plus: CAM Charges (psf) $6.24 Monthly psf $0.52 Total Annual Payments (psf) $15.16 Monthly psf $1.26 Tax Savings: Loan Payment $237, Less: Principle Reduction (Year 1) $(69,901.05) Interest Expense ( Year 1) $167, Add: Depreciation on Improvements (75/25 over 39 years) $71, Add: CAM Charges $166, Total Tax Deductions $405, Times: Estimated Tax Rate 39.0% Estimated Tax Savings $158, Total Annual Tax Savings (psf) $5.94 Monthly psf $0.50 After Tax Ownership Cost Loan Payment $237, CAM Charges $166, Less: Tax Savings $(158,319.14) Annual After Tax Ownership Cost $245, Total Net After Tax Cost (psf) $9.22 Monthly Net After Tax Cost (psf) $0.77 THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

9 own vs. lease ANALYSIS CHICAGO GATEWAY 1825 CHICAGO AVEUNE, RIVERSIDE, CALIFORNIA Cost of Ownership Cost of Leasing Shell Purchase Price (psf) $ Square Owner Feet: Build-Out Projected Budget (psf) 26,648 $0.00 Total Purchase Price $ Lease Times: Rate SF (Annual Purchased NNN) $ ,648 Monthly psf $1.05 CAM Total Charges Shell and to TI Tenant Costs (psf) $3,730, $7.20 Monthly psf $0.60 Total Plus: Lease Loan Financing Obligations Costs (psf) $36, $19.80 Monthly psf $1.65 Total Total Lease Acquisition Obligations Costs ($) $3,766, $527, TI Cost to Tenant (psf) $0.00 Total Cost of TI's to Tenant $0.00 Landlord Financing Assumptions - Not Applicable Loan Assumptions: Annual Interest Rate Term (years) Total Acquisition Costs $3,766,796 Monthly Payment Less: Percent Down 10% $(376,680) Total Annual TI Allowance Payment to Landlord $0.00 Monthly psf $0.00 Total Amount Financed $3,390,117 Annual Interest Rate 5.00% Total Term Lease (years) Obligations, including TI Loan $527, Times: Effective Tax Rate 39.00% Monthly psf $1.65 Total Monthly Tax Payment Savings $205, $19, Annual payment Total Lease Payment $237, $527, Plus: Total Annual Loan Payment TI Payment (psf) to Landlord $8.92 Monthly $0.00 psf $0.74 Less: Plus: Annual CAM Charges Tax Savings (psf) $6.24 ($205,775.86) Monthly psf $0.52 Total Net Lease Cost $321, Total Annual Payments (psf) $15.16 Monthly psf $1.26 Total Tax Savings: Net Lease Cost (after tax; psf) $12.08 Monthly Loan Payment Net Lease Cost (after tax; psf) $237, $1.01 Less: Principle Reduction (Year 1) $(69,901.05) Interest Expense ( Year 1) $167, Add: Depreciation on Improvements (75/25 over 39 years) $71, Add: CAM Charges $166, Total Tax Deductions $405, Times: Estimated Tax Rate 39.0% Estimated Tax Savings SUMMARY $158, Total Annual Tax Savings (psf) $5.94 Monthly psf $0.50 Net After Tax Cost to Own (psf) $9.22 After Tax Ownership Cost Monthly Net After Tax Cost to Own (psf) $0.77 Loan Payment $237, Net CAM After Charges Tax Cost to Lease (psf) $166, $12.08 Less: Tax Savings $(158,319.14) Monthly Annual After Net After Tax Ownership Tax Cost to Cost Lease (psf) $245, $1.01 Total Net After Tax Cost (psf) $9.22 Monthly Net After Tax Cost (psf) $0.77 THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

10 own vs. lease ANALYSIS CHICAGO GATEWAY 1825 CHICAGO AVEUNE, RIVERSIDE, CALIFORNIA Shell Purchase Price (psf) $ Net After Tax Cost to Own (psf) Owner Build-Out Projected Budget (psf) $0.00 Total Purchase Price $ Net After Tax Cost to Lease (psf) Times: SF Purchased 26,648 Total Shell and TI Costs $3,730, Equity Build-up During Ownership Period (Net Sales Proceeds Less Loan Balance) Plus: Loan Financing Costs $36, $9.22 $12.08 $2,357,236 Total Acquisition Costs Total Cost Savings to Own $3,766, $1,726,794 First Year Savings to Own vs Lease $123,527 Loan Assumptions: Ownership Returns Cost of Ownership Sale Price (T10; before sales commissions) $5,013,776 Total Acquisition Costs $3,766,796 Annual Lease Less: Percent Down 10% $(376,680) Owner Loan Obligations Annual Down Total Amount Financed $3,390,117 (Investment)/ Advances/ (plus CAM, if Ownership Payment/Net Annual Interest Rate 5.00% Period Returns (Repayments) applicable) (1) Costs Saving Term (years) 25 Acquisition Date (T0) $(3,766,796) $3,390,117 $(376,680) Monthly 2012 (T1) Payment $527, $19, $(404,103) $123,527 Annual 2013 payment (T2) $537, $237, $(404,103) $133, (T3) $548, $(404,103) $143,976 Total 2015 Loan (T4) Payment (psf) $558, $(404,103) $8.92 Monthly $154,662 psf $0.74 Plus: CAM Charges (psf) $6.24 Monthly psf $ (T5) $569, $(404,103) $165,669 Total Annual Payments (psf) $15.16 Monthly psf $ (T6) $581, $(404,103) $177,006 Tax 2018 Savings: (T7) 2019 (T8) $592, $604, $(404,103) $(404,103) $188,683 $200,711 Loan 2020 Payment (T9) $617, $237, $(404,103) $213,099 Less: 2021 Principle (T10) Reduction (Year 1) $629, $(69,901.05) $(404,103) $225,860 Interest Expense ( Year 1) $167, Net Sale Proceeds (also T10) $4,863,362 $(2,506,126) $2,357,236 Add: Depreciation on Improvements (75/25 over 39 years) $71, Total $1,096,566 $883,991 $5,767,823 $(4,041,029) $3,707,350 Add: CAM Charges $166, Total Tax Deductions $405, Times: Estimated Tax Rate 39.0% Return (IRR) Estimated Tax Savings $158, % Total Annual Tax Savings (psf) $5.94 Monthly psf $0.50 Conclusion: If an owner makes an investment as shown in T 0, and realizes an annual savings because the cost of After ownership Tax Ownership is less than Cost the cost of leasing, it will return on the initial cash investment over the 10 year holding period as shown above. The IRR assumes that the property is sold after the 10 year holding period at the assumed rate of Loan annual Payment appreciation. $237, CAM Charges $166, Less: Tax Savings $(158,319.14) Annual After Tax Ownership Cost $245, Additional Explanation of "Return": If someone buys a residential home for $200,000 (for example), their initial Total investment Net After would Tax Cost be the (psf) cash they have to put as a downpayment on a loan (assume 10% or $20,000). If the monthly $9.22 mortgage payment is less than apartment rent, the hownowner would realize a savings each month. If the home is Monthly sold at Net the After end of Tax 10 Cost years (psf) the owner would have a certain return on their original initial investment (i.e. cash $0.77 downpayment), which would be the accumulated monthly savings versus renting plus the gain on the sale of the home once sold. THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

for sale - Investment opportunity CHICAGO GATEWAY 1955 Chicago Avenue, Riverside, California This investment offers a ±34,457-square-foot, 2-story professional office building located in the

11 for sale - Investment opportunity CHICAGO GATEWAY 1955 Chicago Avenue, Riverside, California This investment offers a ±34,457-square-foot, 2-story professional office building located in the master-planned project, Chicago Gateway, at the very intersection of Riverside s thriving Downtown and Hunter Park. A hub for industry, technology and innovation, Hunter Park boasts excellent freeway access, numerous restaurants, and close proximity to business services, retail amenities, and the University of California-Riverside. Chicago Gateway is a professional mixed-use business campus with new, high-quality construction, lush landscaping, abundant parking, and street-front visibility along a major thoroughfare, Chicago Avenue Chicago Avenue is 93% leased as of February 28, 2013, with stable occupancy and quality tenants. Priced significantly below estimated replacement cost, 1955 Chicago Avenue is an outstanding investment opportunity in this submarket. For information, please contact: TOTAL SQUARE FOOTAGE...±34,457 RSF PURCHASE PRICE...$4,970,000 ($144/SF) CAPITILIZATION RATE % CURRENT OCCUPANCY...93% MAJOR TENANTS...STATE OF CALIFORNIA PROGRESSIVE INSURANCE YEAR BUILT PARKING RATIO...4:1,000 THOMAS P. PIERIK, SIOR tpierik@lee-associates.com DRE License DAVID G. MUDGE, CCIM, SIOR dmudge@lee-associates.com DRE License RICHARD J. ERICKSON rich.erickson@lee-associates.com DRE License

12 for sale - investment OPPORTUNITY Chicago Gateway 1955 Chicage Avenue, Riverside, California Suite 100 Leased Suite 120 Leased Suite 110 Suite 110 Available 2,312 SF 2,133 SF First Floor Suite 240 Leased Suite 200 Lease expiring Feb Suite 200 Sublease Second Floor THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

13 1955 chicago avenue, riverside, ca ±34,457 RSF EXCELLENT INVESTMENT OPPORTUNITY

INCOME/EXPENSE ANALYSIS CHICAGO GATEWAY 1955 CHICAGO AVEUNE, RIVERSIDE, CALIFORNIA Asking price of $4,970,000 Commission to Procurring Broker: 2% Total Price: 4,970,000 Income Tenants Sq Feet Lease

14 INCOME/EXPENSE ANALYSIS CHICAGO GATEWAY 1955 CHICAGO AVEUNE, RIVERSIDE, CALIFORNIA Asking price of $4,970,000 Commission to Procurring Broker: 2% Total Price: 4,970,000 Income Tenants Sq Feet Lease Expiration Annual Rent Suite 100 State of Ca (IW) 5528 usf/ 12/31/ , rsf Suite 120 Progressive Ins /30/ ,817 Suite 110 Vacant Suite 200 David Evans* /28/ ,931 Suite 240 State of Ca (BOE) 8364 usf/ 8/31/ , rsf 736,127 Expenses Property Taxes 60,679 Association Dues 43,080 Business Licence 168 Insurance 800 Electrical Maintenance and Repairs 500 Hardward and Supplies 300 HVAC Maint and Repairs 2,685 Labor 435 Indoor Plat Maintenance 1,600 Plumbing Maint and Repairs 2,195 Elevator 2,700 Janitorial 22,625 Roof 0 Management Fee (5%) 36,806 Security and Fire Protection 3,000 Electricity 52,000 Telephones 1,365 Total Expenses: 230,938 Net Operating Income: 505,189 CAP Rate 10.16% * Tenant vacated and moving out on lease expiration date. 2,392 SF subleased to Simon Wang Engineering; discussing an expansion to 3,500 SF and renewal. THOMAS P. PIERIK, SIOR DAVID G. MUDGE, CCIM, SIOR RICHARD J. ERICKSON tpierik@lee-associates.com dmudge@lee-associates.com rich.erickson@lee-associates.com DRE License DRE License DRE License

717 E. Washington Street Petaluma, California

717 E. Washington Street Petaluma, California 717 E. Washington Street Property Highlights ±1,350 SF Free standing building 12 parking spaces Available for lease at $2.50/SF Gross Great visibility & Building signage Sale Price: $900,000 Adjacent to