Union Bank SDA Package

OFFERING MEMORANDUM

CONFIDENTIALITY AND CONDITIONS Tririver Investment LLC (“Seller”) has retained Strategic Development Advisors, Inc. (\"SDA\") as exclusive advisor for the sale of the free-standing building at 20254 Highway 18, Apple Valley, CA (“Property”). This Offering Memorandum has been prepared by SDA for use by prospective purchasers and their advisors. It is not necessarily an all-inclusive or entirely accurate summary of the Property or any of the documents related thereto. All projections have been developed by Seller, SDA or affiliated sources and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller and SDA, and therefore are subject to variation. No representation is made by Seller or SDA as to the accuracy or completeness of the information contained herein and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller, SDA and their employees, disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, SDA, Seller and their employees, disclaim any all liability for representations and warranties, expressed and implied, contained in, or for omission from, the Offering Memorandum, or any other written or oral communication transmitted or made available to the recipient. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Seller and SDA each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel and any conditions to Seller’s obligations hereunder have been satisfied or waived. This Offering Memorandum and the contents, except for such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality and that you will not use the Investment Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or SDA. CONTACT Ielen Sarkisian President dir: 626.243.5290 [email protected] DRE License: 01798055 2

TABLE OF CONTENTS 4 INVESTMENT HIGHLIGHTS 18 28 PROPERTY OVERVIEW SAN BERNARDINO COUNTY TOWN OF APPLE VALLEY APPLE VALLEY, CA AT A GLANCE APPLE VALLEY COMMONS MONUMENT SIGN PRICING & FINANCIAL ANALYSIS INVESTMENT OVERVIEW BRIGHTLINE WEST DEMOGRAPHICS

INVESTMENT HIGHLIGHTS

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PROPERTY OVERVIEW Location: 6,000 20258 CA-Highway 18 Square Feet Strategic Development Advisors is proud to present this owner-user opportunity at the Apple Valley Commons. A unique opportunity to acquire the best located free-standing building at 43 Parking Total Land Area a fully signalized hard corner with double drive-thru ATMs. Located at 20524 Highway 18, in Spaces Available ±.81 acres the City of Apple Valley and County of San Bernardino. The property is prominently located at the NE corner of Bass Hill Road and Highway 18, with prime visibility to over 36,000 CPD. (±35,223 SF) There are several access points into the Apple Valley Commons including one entrance from Highway 18, three from Dale Evans Pkwy, and five from Bass Hill Road. Double ATM Double Available Drive Thru The building is approximately 6,000 square feet with 43 parking stalls and situated on Available approximately 35,223 square feet of land. The property is zoned General Commercial, CG and it is identified with APN# 3112-251-64.The building was constructed in 2017 as a part of the 424,000 SF Target anchored Apple Valley Commons project which is occupied by a popular mix of tenants that draw from the greater Victor Valley trade area. The tenants at and adjacent to Apple Valley Commons include Walmart, Albertson’s, Ross Dress For Less, Old Navy, Dollar Tree, Starbucks, Panda Express, Carl’s Jr., Del Taco, Round Table Pizza, Waba Grill, Wing Stop, Subway, Verizon, T-Mobile and others. This diverse and dynamic cluster of tenants represents an effective and powerful draw in a growing trade area. The property is located within Inland Empire, one of the fastest growing regions in the United States. More than 85,000 people reside in a 5 mile radius with an Average Household income exceeding $82,000. The future Brightline West is planned at Dale Evans Parkway for a high- speed rail station which will connect Southern California to Las Vegas. The construction is expected to bring more than 10,000 construction related jobs in addition to more than 500 permanent jobs that will be created once the line is in operation. The Apple Valley station is expected to attract transit oriented commercial and residential development in the surrounding area. The subject property is a versatile building with high quality construction which has been professionally managed with little to no deferred maintenance. The current ownership acquired the property from the original developer and with Union Bank transitioning out, this offers an exceptional opportunity for an owner-user in a growing trade area. 6



San Bernardino County is located in southeastern California, with Inyo and Tulare counties to the north, Kern and Los Angeles counties to the west, and Orange and Riverside counties to the south. The county is bordered on the east by the states of Nevada and Arizona. The county’s diverse geography and extensive natural resources, as well as its proximity to major economic and population centers, provide unique opportunities for varied industry sectors to thrive, including commerce, education, tourism and recreation. At the heart of Southern California, San Bernardino County is one of the world’s most dynamic and diverse economies. With a regional population expected to nearly double in the next 30 years, access to 6.5 million workers, and a population younger than California and the national average, it’s no wonder why Fortune 500 firms and innovative startups call San Bernardino County home. Among San Bernardino County’s 24 unique and vibrant cities you’ll find a local population of more than 2.1 million and a regional market access of over 23 million people. There are many measurable cost advantages to doing business in San Bernardino County. A young, skilled, and educated workforce of nearly a million. 20+ area colleges, universities, and technical schools make San Bernardino a region for top talent. The County has global transportation infrastructure, is L.A. County adjacent, has room to grow, significant international investment, an ethnically diverse culture, housing within reach of local families and so much more! There are more than 100 diverse outdoor and indoor recreational opportunities, including regional and local parks, museums, and sports venues. Locals enjoy an attainable Southern California lifestyle that includes mountains, deserts, and beaches. San Bernardino County (January 18, 2015), In Wikipedia. en.wikipedia.org/wiki/San_Bernardino_County,_California 8

SAN BERNARDINO COUNTY 9

The Town of Apple Valley is located in the heart of the Victor Valley in the County of San Bernardino, at an elevation of 3,000 feet. Known as the “High Desert”, Apple Valley is strategically located 95 miles northeast of the Los Angeles metropolitan area, 140 miles north of San Diego, and 185 miles south of Las Vegas. The Town has 78 square miles in its incorporated boundaries, and a sphere of influence encompassing 200 square miles. Currently, 75,362 (2021) residents make Apple Valley their home. Once a playground of movie stars, Apple Valley continues to provide a wide range of reasons for families to make Apple Valley their home. The average household income is $81,662 and our taxable sales for a year period have reached $388.6 million. The population of the entire Victor Valley region is now more than 443,000. Apple Valley is laying a foundation for future prosperity through its overall economic development program. Current plans include recruiting businesses to the new industrial park surrounding the Apple Valley Airport, and to the commercial locations in Town having the highest potential for development. Apple Valley offers both established and new businesses an unequaled climate for success. Lifestyle is unique in Apple Valley ranging from affordable housing for the first-time buyer, to affordable equestrian estates and executive manors. A 1,400-acre master planned retirement community offers a wide range of senior housing. Clean air, low crime rates, and open spaces permits Apple Valley to be the land of opportunity for those who are seeking a better place to live, work and play. (City of Apple Valley web page. www.applevalley.org) 10

TOWN OF APPLE VALLEY APPLE VALLEY 11

APPLE VALLEY, CALIFORNIA AT A GLANCE City Incorporated 75,362 Population $81,622 Average 2.87 - Average in 1988 (2021) Household Income Household Size (2021) (2021) 26,135 38.5 Average of 350 days .60% Population Households Median Age of sunshine per year Growth Rate (2021) (2021) 2017-2022 12

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FUTURE SUPER CENTER APPLE VALLEY CIVIC CENTER Neil’s Rainbow Fresh Donuts Yogurt Wok Happy Life Lo Martial Arts Alaza Studio Red Persimmon Spa Eyebrows A+ Strategic Development Advisors, Inc. The Information above has been obtained from sources believed reliable. While we do not doubt it’s accuracy, we have not verified it and make no guarantee, warranty or representation about it.

APPLE VALLEY COMMONS Apple Valley Commons is conveniently positioned off Highway 18 and directly across from Town of Apple Valley Civic Center. Located in the beautiful city of Apple Valley, this exciting retail plaza has over 54 tenants in over 424,000 square footage of shopping space. Apple Valley Commons boasts a Target, Old Navy, Ross, Dollar Tree, Starbucks, multiple restaurants and more! os anes 15

BASS HILL ROAD CA HIGHWAY 18 16

MONUMENT SIGN BASS HILL ROAD BASS HILL ROAD WESTLUND WAY CA HIGHWAY 18 DALE EVANS PKWY 20254 CA HIGHWAY 18 NAILS & SPA Historic Apple Valley Apple Valley Inn Town Hall 17

PRICING & FINANCIAL ANALYSIS





SITE PLAN

INVESTMENT OVERVIEW INVESTMENT OFFERING Offering Price $5,000,000 Current NOI (Until April 30,2023) $300,712 Per Forma NOI $288,000 Per Forma CAP Rate 1.575% Total Building Area ±6,000 SF Total Land Area Occupancy ±0.81 acres (±35,223 SF) Ownership Available May 2023 Year Built Fee Simple 2007 INVESTMENT HIGHLIGHTS • Perfect owner-user opportunity or re-tenant • Located at the high traffic retail intersection of CA-Highway 18 and Bass Hill Road • Prime corner visibility from Highway 18 with over 36,085 cars per day • Building is situated at the corner of the Apple Valley Commons, a 424,000 sf Super Target anchored shopping center • Co-tenants include: Ross, Dollar Tree, Starbucks, Panda Express, Del Taco, Carl’s Jr., Pacific Dental, Verizon, Sally Beauty, UPS, T-Mobile, Waba Grill, Wing Stop, Round Table Pizza, Subway, Juice It Up • Directly adjacent to existing Walmart, CVS and Albertsons • In walking proximity to the Town of Apple Valley Civic Center 22

CURRENT LEASE ABSTRACT (EXPIRING APRIL 30, 2023) Total Building Area ±6,000 SF Year Built 2007 Total Land Area Type of Ownership ±.81 acres (±35,223 SF) Tenant/Guarantor Fee Simple Lease Type Structure Union Bank of California. Roof Net Lease HVAC CAM Landlord Responsibility Insurances Landlord Responsibility Utilities Property Taxes Tenant Responsibility Lease Term Tenant Pays 100% NOI Tenant Pays 100% Term Remaining in Lease Tenant Pays Direct Renewal Options Tenant Pays 100% Increases 10 Years Parcel $300,712 19 Months Four (3) Five (5) year Option 10% Every 5 years 3112-251-64 23



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BRIGHTLINE WEST 26

Brightline West has acquired property in the newly 40,000+ 1,000+ $9 Billion+ annexed area of Apple Valley near Dale Evans Parkway Construction Jobs Permanent Jobs Economic Impact for a high-speed rail station that will connect Southern California to Las Vegas. Construction of the rail line is expected to bring more than 10,000 jobs in addition to more than 500 permanent jobs that will be created once the line is established. Similar to their south Florida rail stations, the Apple Valley station is expected to attract transit- oriented commercial and residential development in the surrounding area. Additionally, California State Treasurer Fiona Ma indicates the project will create more than 1,200 housing units; and O’Malley estimates it will inject $2.13 billion into California’s economy including $275 million in federal, state and local tax revenue. The high-speed electric train will move passengers from Apple Valley to Las Vegas in about 90 minutes at speeds greater than 150 miles per hour removing as many as 4.5 million cars from traveling 811 million miles on Interstate 15 annually. “This is one of those once in a lifetime projects that will bring jobs and economic growth to not only Apple Valley but the entire Victor Valley region and help expand infrastructure into north Apple Valley, paving the way for residential, commercial and industrial growth at the north end of town along the I-15 corridor in exciting new ways,” said Apple Valley Town Manager Doug Robertson. (City of Apple Valley web page. www.applevalley.org) 27

DEMOGRAPHICS



DEMOGRAPHICS Total Population 36,686 CPD Total Population 39,664 (3 Mile) CA Highway 18 at Daytime Workers 85,783 (5 Mile) Dale Evans Pkwy 11,505 (3 Mile) 26,783 (5 Mile) Avg Household Size Median Age Avg HH Income CarMa 3.00 (3 Mile) 37.2 (3 Mile) $89,161 (3 Mile) Now Op 2.93 (5 Mile) 36.8 (5 Mile) $82,860 (5 Mile) CarNoXwcOhpaCennNagroXewcOhapnegne Avg Home Value Total Households 2017-2022 Growth Rate $452,719 (3 Mile) 13,568 (3 Mile) 0.60 % (3 Mile) Bear Valley $442,145 (5 Mile) 29,832 (5 Mile) 0.57 % (5 Mile) Commons 100% Leased 30

Brightline West High speed rain to Las Vegas. Maintenance facility to be built in Apple Valley, station will be in Victorville. $9 billion in economic impact, the project will generate over 10,000 construction jobs and 500 permanent jobs in Apple Valley Apple Valley Road/ Hwy 18 Dorada at Vista Del Sol Estates LEGEND Realignment Project Now selling, build-to-suit, 96 lots available Expected completion: Selected Tenants 4Q 2021 The Gym Arts & Crafts 12,000 sf concept at Big Box Nico Plaza Department Store Opened July 2020. Rancheria Plaza Discount Store Starbucks and Jersey Drug Store Mike’s Subs now open Electronics Fitness Center ax Western Grocery Dental Office Home Furnishings pen Home Improvement Office Supply Under Construction Pet Store Sporting Goods Quick Quack Town’s End Theater Car Wash Stillhouse & Grill Now Open Area Housing Under Development Construction XX XX - # of Dwelling Units Bear Valley Mojave Plaza Proposed/ In Application Commercial Center Tenants include: ALDI, Planet Fitness, Approved Castaneda’s AutoZone, Wendy’s, Quick Quack Mexican Food Under Development y d Strategic Development Advisors, Inc. The Information above has been obtained from sources believed reliable. While we do not doubt it’s accuracy, we have not verified it and make no guarantee, warranty or representation about it.

Ielen Sarkisian President 626.243.5290 [email protected] DRE License: 01798055 Strategic Development Advisors, Inc. The Information above has been obtained from sources believed reliable. While we do not doubt it’s accuracy, we have not verified it and make no guarantee, warranty or representation about it.