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:: OFFERING MEMORANDUM

Capital Markets | Private Client Group

Moreno Beach Plaza -


Shops & Pads
Wa l m a r t S h a d o w A n c h o r e d S h o p p i n g C e n t e r
Tr e m e n d o u s I n - P l a c e 1 0 Ye a r N o n - R e c o u r s e D e b t

12641-12831 Moreno Beach Drive


M o r e n o Va l l e y, C A 9 2 5 5 5

: : Sam Alison
Lic. 01167124
818.907.4727
sam.alison@cbre.com

: : Dan Riley
Lic. 01057519
310.765.2595
dan.riley@cbre.com

: : Danielle Bower
E Lic. 01847718
DRIV
H 818.907.4729
B EAC
O danielle.bower@cbre.com
REN
MO

MORENO BEACH
AUTO MALL

:: W W W. P C G L A R E TA I L . C O M
The Offering Moreno Beach Plaza - Shops & Pads
Property Description Regional Map
Moreno Beach Plaza – Shops & Pads offers ±30,115 SF of retail shops and restaurants Lake Castaic
138 18 247
located within a ±250,000 SF Walmart (NAP) anchored shopping center in the city of Moreno Santa Clarita 14
Apple Valley 18

Valley, California. The shopping center is well-positioned with tremendous freeway visibility, SAN BERNARDINO COUNTY
Hesperia

situated at the southwest corner of the Moreno Valley Freeway (CA Hwy 60) and Moreno 5
2

Beach Drive, with over 78,000 vehicles passing per day. Moreno Beach Plaza - Shops and 15 Summit
Wrightwood
SAN BERNARDINO 18
LOS ANGELES COUNTY Silverwood Lake NATIONAL FOREST
Pads also benefits from tremendous retail synergy from Moreno Beach Auto Mall and 1.1 118
2
ANGELES NATIONAL FOREST 138 Lake Arrowhead

million square feet of neighboring retail property including tenants such as a Super Target, Chatsworth 5 210
Burbank
Mount Baldy
215 Arrowhead

Best Buy, Kohl’s and Office Max.


Northridge Springs
405 Glendale
170 330 38
Encino Monrovia
134 Glendora 30
210
Investment Summary 27
101 5 110
39 210
Fontana 66
Hollywood
Los 10 Ontario 38 Yucaipa
10 International 10
Offering Price: .....................................................................................$13,225,000
405 Beverly Hills Angeles Redlands
60 Airport
10 57 91 MORENO
10 BEACH PLAZA
Calimesa
60
Pomona 83 Ontario SHOPS & PADS
Cap Rate: .......................................................................................................... 7.5% Santa Monica
110
19 605
Whittier 15
Riverside
Canyon Springs
Year 1 Leveraged Return: ............................................................................. 7.1% Los Angeles
International Airport
710 La Habra
57
ORANGE COUNTY
Moreno
60 10
91 111
Year One NOI:...........................................................................................$991,714 Manhattan Beach
Hermosa Beach
105
Carson
5
Fullerton Placentia 91 Corona
RIVERSIDE COUNTY
215
Valley
Lake Perris 79
Occupancy: ........................................................................................................ 96% Redondo Beach Torrance 605 Buena
Park
Lake Mathews
Perris

Ownership: ...............................................................................................Fee Simple


1 110 Long Beach Orange Nuevo San
Anaheim
Airport Jacinto
Long 22 Tustin
Building Leasable Area: ........................................................................ 30,115 SF Palos Verdes Los Angeles/
Beach 1 405 Santa
Ana 55
CLEVELAND
NATIONAL FOREST 74
San Pedro Long Beach 15
Land Area:........................................................................... 225,640 SF (5.18 Acres) Harbors
74
Seal Beach Irvine
Lake Elsinore
Year Built: ............................................................................................... 2005/2006
John Wayne
Airport 405 215
Mission 74 79
Newport
Zoning: ................................................. SP-CC (Specific Plan-Community Commercial) 73 133 Viejo
Beach 5

Parking: ............................................................................... 252 stalls (±8/1,000 SF) San Juan


Temecula
371

Debt: ....................................................................... Buyer to assume desirable existing Laguna Capistrano


Beach

non-recourse debt originated 8/1/06 at


$9,000,000, 6.17%, 30 year amortization, Local Map
due 8/1/20, $54,947/mo P&I, projected SAN T
IMO
balance of $8,665,000 as of 10/1/09, T E O CANYON R

DLA N D BLVD

D
0.5% assumption SUNN
RD

MO R N I N G RI
YM
SUNNYMEAD

STA
EAD
Investment Highlights

N VI
RANCH LAKE

PIGEON PASS RD

RE
RAN
O
NY

CH

CA
KW

P
Moreno Beach Plaza - Shops & Pads offers an investor a highly desirable retail investment BOX SPRINGS Y

DGE
MOUNTAIN

opportunity for many reasons, including: PARK

DR
MORENO VALLEY
EQUESTRIAN

HEACOCK ST
PARK

‰ Opportunity to acquire newly constructed (2005/2006) shops and pad tenants within a

REDLAND BLVD
NORTON
highly successful community shopping center shadow anchored by Walmart. IRONWOOD AVE IRONWOOD AVE IRONWOOD AVE
YOUNGLOVE
RESERVE

‰ Tremendous in place debt to assume with over 10 years remaining to loan maturity (Aug.
MORENO BEACH PLAZA
2020) and 6.17% interest rate. 60
60 SHOPS & PADS 60 M O RENO FW Y

PIGEON PASS RD
V A LLEY

PERRIS BLVD
DAY ST

MO
‰ Stable investment with 96% occupancy, 67% nationally recognized tenants including RE

NO C H DR
HEACOCK ST

GIL
Wendy’s, El Pollo Loco, Starbucks and Payless ShoeSource. MA

BEA
NS
COTTONWOOD AVE P RI
NG

NASON ST
‰ Dominant trade area location within Moreno Valley, CA with over 1.1 million SF of retailers ALESSANDRO BLVD
SR
D

adjacent to the Moreno Beach Drive/CA Hwy 60 interchange. ALESSANDRO BLVD ALESSANDRO BLVD ALESSANDRO BLVD

2009 Est. Traffic Counts Vehicles Per Day CACTUS AVE CACTUS AVE

RENO BEACH DR
DY DR
CA Highway 60 78,200 F KE
NNE

LASSELLE ST
JO HN

PERRIS BLVD
Moreno Beach Drive 16,800 MORENO

Eucalyptus Avenue 25,000


VALLEY

MO
RANCH
MARCH FIELD IRIS AVE GOLF CLUB
215 MARCH AIR PARK
RESERVE BASE
2009 Est. Demographics 3-Mile 5-Mile IR I S A V E LAKE PERRIS
STATE RECREATION AREA

Population 51,098 161,818


Households 13,919 43,453
Average Household Income $72,193 $65,729

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Aerial Photograph Moreno Beach Plaza - Shops & Pads

NEW HOME DEVELOPMENT


854 NEW HOMES

AV E
NEW HOME

LY P TU S
DEVELOPMENT
275 NEW HOMES

CA
EU
MORENO BEACH DRIVE

MORENO VALLEY
AUTO MALL

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Aerial Photograph Moreno Beach Plaza - Shops & Pads

MORENO BEACH BLVD


WOOD A
ON VE
IR
IRONWOOD AVE IRONWOOD AVE

SUNNYMEAD BLVD MORENO VALLEY FWY (CA HWY 60)


HEACOCK ST

FIR AVE FIR AVE


M
PERRIS BLVD

OR

REDLANDS BLVD
NASON ST
EN
MORENO BEACH
EUCALYPTUS AVE PLAZA

O
KITCHING ST

SHOPS & PADS

BEACH
MORRISON ST

QUINCY ST
B LVD
INDIAN ST

COTTONWOOD AVE
LASSELLE ST

ALESSANDO BLVD ALESSANDO BLVD

CACTUS AVE CACTUS AVE

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Property Photographs Moreno Beach Plaza - Shops & Pads

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Property Photographs Moreno Beach Plaza - Shops & Pads

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Site Plan Moreno Beach Plaza - Shops & Pads

60 FREEWAY Suite Tenant Sq. Ft.


12751 Moreno Beach Dr.
101 Starbucks 1,700
102 Ono Hawaiian BBQ 1,575
12761 Moreno Beach Dr.
101 Gamestop 1,510
102 4G/GSM Wireless 1,200
NOT A PART 103 Payless Shoe Source 2,882
12831 Moreno Beach Dr.
101 Mr. You’s 2,120
102 Quizno’s 1,300
103 Juice It Up 1,080
EUCALYPTUS ST 104 Sushi Palms 1,500

MORENO BEACH DR
105 Vacant 1,200
106 Angel’s Nails/Happiness Nails 1,950
107 Postal Annex 1,502
NOT 108 Service Plus Credit Union 3,150
A PART
12641 Moreno Beach Dr.
NOT A PART Del Taco 2,446
488-100-013
488-100-012 12671 Moreno Beach Dr.
±0.68
0.68 Acres
Wendy’s 2,500
12821 Moreno Beach Dr.
488-100-014
±1.06
1.06 Acres El Pollo Loco 2,500
±20.68 Total Owned GLA 30,115
Acres
Vacant 1,200
Not A Part 488-100-016
223,637 SF NOT A PART Occupied 28,915
488-100-015 ±0.75
0.75
±0.73
0.73 Acres
Acres

488-100-019
488-100-19
±0.56
0.56
Acres
488-100-018 MORENO VALLEY
1.38 Acres
±1.38
AUTO MALL
NOT
A PART

TRAIL RIDGE WAY

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Area Overview Moreno Beach Plaza - Shops & Pads

Location Riverside County


Moreno Beach Plaza - Shops & Pads is located at the Moreno Beach Drive exit of the Moreno Riverside County is the fourth largest county in terms of area in California stretching over
Valley Freeway (California Highway 60) in the City of Moreno Valley, within Riverside County. 7,200 square miles and recently moved into the 5th largest county in California based on
Moreno Beach Plaza is a ±250,000 SF shopping center anchored by Walmart, on a major population. It borders with Los Angeles, Orange, San Diego and San Bernardino counties.
retail thoroughfare also featuring Super Target, Kohl’s, Best Buy, and Office Max. Created as a county in 1893, Riverside County has grown from a primarily agricultural
region to a diversified region offering tourism, commerce, construction, manufacturing and
Inland Empire transportation. This diversity and affordability has resulted in tremendous population growth
The Inland Empire encompasses 30,000 square miles including San Bernardino and Riverside with an increase of almost 5% or approximately 79,000 new residents from July of 2005 to
counties, as well as a small portion of eastern Los Angeles County. The Inland Empire is one July of 2006, making Riverside the fastest growing county in the state of California for that
of the fastest growing metropolitan areas in the nation, with an average of almost 100,000 period. Many of the new residents are said to be from neighboring counties relocating to
residents moving to the area every year. Riverside County for its more affordable home prices and cost of living.

As California’s job creation leader for more than a decade, Southern California’s Inland With the tremendous growth in the population, Riverside County has also shown strong
Empire is attracting the interest of business, real estate, and site selection executives both growth in the nonagricultural wage and salary employment. Payroll employment for the
around the country and the world. From 1990 through 2004, the Inland Empire added Riverside/San Bernardino area is anticipated to continue to grow approximately 4% in 2008.
437,000 new jobs, which represented 21% of the total 2.1 million jobs created in California. The largest employment gain is expected in the administration and support services area,
The Inland Empire is projected to add 409,000 jobs between 2000 and 2010, with a retail trade, government, and transportation and utilities.
projected retail growth of over 20% during that period.
Moreno Valley
The retail market in the Inland Empire continued to be impacted by strong demand and Incorporated in 1984, Moreno Valley has been ranked as
limited existing inventory for retail space in 2006. The overall vacancy rate for 3rd quarter the sixth fastest growing city in California and 26th fastest
of 2007 raised slightly to approximately 6%, with 14.13 million square feet of retail space growing city in the nation for the last two years. A relatively
under construction and an additional 41.47 million square feet of space planned to be young city, its rapid growth in the 1980s and the 2000s
developed. As a result, the Inland Empire is destined to remain the driving force in the propelled it to its current status as the second-largest city in
Southern Californian economy with a 2008 projection for retail sales to be in excess of Riverside County by population. However, despite the soaring
$51.6 billion. growth over the past few years, Moreno Valley has been
successful in maintaining a small town feel while building up its big city amenities. With a
Riverside-San Bernardino Area Economic Indicators strong economic base, Moreno Valley is dedicated to businesses and families, creating a
superb quality of life, and a true sense of community.
Total Per Capita Taxable Housing Total
Population Nonfarm Unemp. Personal Personal Retail Unit Nonresid.
on July 1 of Employment Rate Income Income Sales Permits Bldg. Perm. Retail sales within Moreno Valley have moved steadily upward with a 110% increase in
(000s) (avg., 000s) (avg.,%) ($ bil.) ($) ($ bil.) Issued ($ millions) sales since 2000. In addition, Moreno Valley retailers consistently produce higher sales per
2000 3,281.4 988.4 5.3 74.787 22,791 24.992 21,990 1,536 square foot than the state average for
2001 3,393.2 1,029.7 5.5 80.406 23,696 26.699 27,541 1,423 comparable stores. One reason for $35,000
2002 3,501.6 1,064.5 6.6 84.151 24,032 28.570 33,280 1,473 the City’s strong retail performance $30,000
$30,326

2003 3,636.5 1,099.2 6.7 89.500 24,612 31.936 43,001 1,720 stems from Moreno Valley residents $24,717
2004 3,769.1 1,160.0 6.1 97.300 25,815 37.194 52,696 2,485
having an extremely high level of $25,000
2005 3,899.1 1,222.0 5.3 104.100 26,698 41.960 50,818 2,394
2006 4,020.9 1,271.2 4.9 111.900 27,830 45.820 39,156 2,852 discretionary spending compared $20,000 $17,299 $17,497

2007e 4,117.9 1,307.9 5.2 117.200 28,461 48.707 21,550 3,035 to residents of the neighboring four $15,000
2008f 4,196.9 1,344.7 5.4 122.500 29,188 51.629 19,900 3,215 counties in Southern California, as is $10,520

2009f 4,282.9 1,386.2 5.1 129.100 30,143 55.088 22,100 3,360 detailed in the graph to the right. $10,000

$5,000

$0
LA County San Diego County Orange County Inland Empire Moreno Valley

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New Business Development Map Moreno Beach Plaza - Shops & Pads

Sketchers Distribution Center


2,400,000 sq.ft.

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Retail Competition Map Moreno Beach Plaza - Shops & Pads

854 HOME
DEVELOPMENT

854 HOME
DEVELOPMENT

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New Housing Developments Map Moreno Beach Plaza - Shops & Pads

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Demographic Map Moreno Beach Plaza - Shops & Pads

2008 Population Density


estimated by block group

Blvd
Redlands Blvd
Saann
S 1 Dot = 100 People
TTiim

Redlands
mootte
Rd
Pass Rd

RRee eoo
cchhh
C
Caanny
yoonn 2008 Average Household Income
Pigeon Pass

eeeCCC R
Rdd
aannn estimated by block group
yyyoo
Pigeon

nn R $75,000 or more
Rdd
$60,000 to $75,000
$45,000 to $60,000
$30,000 to $45,000

Blvd
Manzanita Ave
Manzanita Ave

Blvd
Redlands Blvd
less than $30,000

Dr
Beach Dr

Redlands
Redlands
Moreno Beach
Avvee
odd A
wooo

Moreno
w
Iroonn
Ir

5 miles 3 miles 1 mile 



St
Heacock St

Cottonwood Ave
Cottonwood Ave
Heacock

St
Nason St

Alessandro Blvd
Alessandro Blvd
Nason

Alessandro Blvd
Alessandro Blvd

Cactus Ave
Cactus Ave Cactus Ave
Cactus Ave
St
Lasselle St

Moreno Valley
Moreno Valley
Lasselle

John FF Kennedy
John Kennedy Dr
Dr

Rd
Davis Rd

St

Miles
Miles
Miles
Miles 1.5
1.5
1.5
1.5
Kitching St

Davis Miles
Miles
Miles
Miles
Miles
Miles
Miles
Miles 1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
Blvd
Perris Blvd

KM
KM
KM
KM
KM
KM
KM
KM 2
22
222
222
22
Kitching

KM
KM
KM
KM 2
Perris

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Demographic Report Moreno Beach Plaza - Shops & Pads

1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile


Radius Radius Radius Radius Radius Radius

Population 2008 Estimated Population by Sex 2,534 51,098 161,818


2008 Estimate 2,534 51,098 161,818 Male 1,276 25,173 79,294
2013 Projection 3,141 62,096 190,002 Female 1,258 25,925 82,525
2000 Census 1,582 34,430 120,861
1990 Census 1,278 28,637 102,528 2008 Estimated Population over 15 by Marital Status 2,064 38,958 120,782
Estimated Growth 2000-2008 60.19% 48.41% 33.89% Males Never Married 309 5,937 18,596
Projected Growth 2008-2013 23.97% 21.52% 17.42% Males Married 635 11,454 34,872
Males Widowed 17 340 895
2008 Estimated Population by Race and Origin 2,534 51,098 161,818 Males Divorced 64 1,237 3,863
White Population 1,554 23,896 64,421 Females Never Married 300 5,484 17,385
Black Population 276 9,363 33,261 Females Married 636 11,527 35,457
Asian Population 205 3,474 11,952 Females Widowed 33 1,126 3,396
Pacific Islander Population 7 232 874 Females Divorced 71 1,853 6,318
American Indian and Alaska Native 17 434 1,563
Other Race Population 317 10,563 40,173 2008 Estimated Population by Age 2,534 51,098 161,818
Two or More Races Population 158 3,137 9,574 Aged 0 to 4 Years 137 3,508 12,721
Hispanic Population 753 21,416 75,169 Aged 5 to 9 Years 140 3,678 12,800
White Non-Hispanic Population 1,257 16,051 39,091 Aged 10 to 14 Years 193 4,955 15,516
Aged 15 to 17 Years 188 3,296 9,731
Households Aged 18 to 20 Years 143 2,726 8,455
2008 Estimate 706 13,919 43,453 Aged 21 to 24 Years 162 3,152 10,261
2013 Projection 866 16,676 50,160 Aged 25 to 34 Years 408 8,622 28,555
2000 Census 441 9,469 33,135 Aged 35 to 44 Years 277 6,489 21,862
1990 Census 363 8,221 30,102 Aged 45 to 49 Years 238 3,860 11,366
Estimated Growth 2000-2008 60.10% 47.00% 31.14% Aged 50 to 54 Years 191 3,409 9,861
Projected Growth 2008-2013 22.67% 19.81% 15.43% Aged 55 to 59 Years 157 2,599 7,333
Aged 60 to 64 Years 103 1,627 4,559
2008 Estimated Owner Occupied Units 626 11,244 31,675 Aged 65 to 74 Years 116 1,815 5,061
2008 Estimated Renter Occupied Units 80 2,675 11,778 Aged 75 to 84 Years 61 990 2,752
Aged 85 Years and Older 19 373 987
2008 Estimated Average Household Size 3.54 3.66 3.70
2008 Estimated Hispanic Population by Origin 753 21,416 75,169
2008 Estimated Households 706 13,919 43,453 Mexican 619 16,782 59,639
Income Less than $15,000 28 1,161 3,863 Puerto Rican 19 557 1,633
Income $15,000 to $24,999 20 1,110 4,019 Cuban 7 168 548
Income $25,000 to $34,999 43 1,125 4,360 All Others 107 3,909 13,349
Income $35,000 to $49,999 54 1,944 6,810
Income $50,000 to $74,999 173 3,271 9,911 2008 Estimated Hispanic Population by Race 753 21,416 75,169
Income $75,000 to $99,999 108 2,221 6,697 White 360 8,864 28,104
Income $100,000 to $149,999 201 2,399 6,082 Black 7 262 803
Income $150,000 to $249,999 51 511 1,411 Am. Indian or Alaska Native 8 259 1,069
Income $250,000 to $499,999 19 126 226 Asian 4 66 201
Income $500,000 and over 11 52 75 Native Haw. Or Pac. Islander 2 29 102
Other 314 10,496 39,889
2008 Estimated Median Household Income $82,296 $61,899 $56,205 Two or More 58 1,440 5,002
2008 Estimated Average Household Income $100,879 $72,193 $65,729
2008 Estimated Per Capita Income $28,597 $19,809 $17,807

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Rent Roll Moreno Beach Plaza - Shops & Pads

Effective Date: 01/01/10

Area Lease Dates Scheduled Minimum Rent Market % Rent


Suite Tenant Sq. Ft. Begin End Beginning Monthly $/SF/Mo. Rate Breakpoint Options Notes

Owned GLA
12751 Moreno Beach Dr.
101 Starbucks 1,700 03/05/06 03/31/16 Current $5,576 $3.28 $3.30 None Two 5-Year Options Includes drive thru.
04/01/11 $6,120 $3.60 1st option @ $6,698/month
2nd option @ $7,344/month
180 days notice

102 Ono Hawaiian BBQ 1,575 12/13/05 12/31/12 Current $4,174 $2.65 $3.00 None One 7-Year Option
01/01/10 $4,675 $2.97 12% increase 1/1/13 and 1/1/16
170 days notice

12761 Moreno Beach Dr.


101 Gamestop 1,510 01/24/06 01/31/13 Current $4,870 $3.23 $3.25 None None
02/01/11 $5,235 $3.47

102 4G/GSM Wireless 1,200 02/08/06 02/28/11 Current $3,037 $2.53 $2.70 None One 5-Year Option
03/01/10 $3,159 $2.63 FMV
360 days notice

103 Payless Shoe Source 2,882 03/15/06 03/31/16 Current $6,480 $2.25 $2.50 5.0% Two 5-Year Options
04/01/11 $7,452 $2.59 Natural 1st option @ $8,570.04/month
2nd option @ $9,856.80/month
90 days notice
12831 Moreno Beach Dr.
101 Mr. You’s 2,120 01/06/06 01/31/16 Current $5,898 $2.78 $2.80 None Two 5-Year Options
01/01/11 $6,311 $2.98 7% increases every 30 months
06/01/13 $6,752 $3.19 starting with the last rent increase
11/01/15 $7,225 $3.41 360 days notice

102 Quizno’s 1,300 02/09/06 02/08/16 Current $3,686 $2.84 $2.85 None One 10-Year Option
01/01/11 $3,870 $2.98 5% increases every 30 months
06/01/13 $4,063 $3.13 starting with the last rent increase
11/01/16 $4,266 $3.28 270 days notice

103 Juice It Up 1,080 01/12/06 01/31/16 Current $2,916 $2.70 $2.75 None One 10-Year Option
01/01/11 $3,149 $2.92 8% increases every 30 months
06/01/13 $3,401 $3.15 starting with the last rent increase
11/01/15 $3,673 $3.40 360 days notice

104 Sushi Palms 1,500 01/05/06 01/31/16 Current $4,217 $2.81 $2.85 None One 10-Year Option
02/01/10 $4,474 $2.98 FMV
02/01/11 $4,608 $3.07 180 days notice
02/01/12 $4,746 $3.16
02/01/13 $4,889 $3.26
02/01/14 $5,035 $3.36
02/01/15 $5,186 $3.46

105 Available/Lease Pending 1,200 01/01/10 01/01/15 Current $0 $0.00 $2.95 None Landlord negotiating with multiple tenants.
01/01/10 $3,500 $2.92
01/01/11 $3,605 $3.00
01/01/12 $3,713 $3.09
01/01/13 $3,825 $3.19
01/01/14 $3,939 $3.28

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Rent Roll (cont.) Moreno Beach Plaza - Shops & Pads

Effective Date: 01/01/10

Area Lease Dates Scheduled Minimum Rent Market % Rent


Suite Tenant Sq. Ft. Begin End Beginning Monthly $/SF/Mo. Rate Breakpoint Options Notes

106 Angel’s Nails/ 1,950 01/05/06 01/31/16 Current $5,434 $2.79 $2.80 None Two 5-Year Options
Happiness Nails 02/01/10 $5,597 $2.87 FMV
02/01/11 $5,764 $2.96 360 days notice
02/01/12 $5,937 $3.04
02/01/13 $6,116 $3.14
02/01/14 $6,299 $3.23
02/01/15 $6,488 $3.33

107 Postal Annex 1,502 01/09/06 01/31/13 Current $4,299 $2.86 $2.85 None One 7-Year Option
02/01/10 $4,428 $2.95 3% annual increases
02/01/11 $4,561 $3.04 270 days notice
02/01/12 $4,697 $3.13

108 Service Plus 3,150 02/13/06 02/28/13 Current $9,572 $3.04 $3.75 None One 7-Year Option
Credit Union 03/01/10 $9,859 $3.13 FMV
03/01/11 $10,155 $3.22 270 days notice
03/01/12 $10,459 $3.32

Service Plus 3 ATMS 02/13/06 02/28/13 Current $3,000 NA


Credit Union ATM’s 03/10/10 $3,090 NA
03/10/11 $3,183 NA
03/10/12 $3,278 NA

12641 Moreno Beach Dr.


Del Taco 2,446 2/30/06 02/28/26 Current $5,667 $2.32 $75,000.00 None Two 10-Year Options Tenant on ground lease of parcel ±30,443 SF
03/01/11 CPI not > 12% CPI not > 12% x 5 years Tenant built bldg at their expense
03/01/16 CPI not > 12% 150 days notice
03/01/21 CPI not > 12%
12671 Moreno Beach Dr.
Wendy’s 2,500 01/31/06 12/31/16 Current $6,083 $2.43 $75,000.00 None Two 10-Year Options Tenant on ground lease of parcel ±46,173 SF
01/01/11 $6,692 $2.68 1st option term Tenant built bldg at their expense
Years 1-5 @ $7,360.84/month
Years 6-10 @ $8,096.92/month
2nd option term
Years 1-5 @ $8,906.60/month
Years 6-10 @ $9,797.27/month
360 days notice
12821 Moreno Beach Dr.
El Pollo Loco 2,500 02/06/06 02/28/26 Current $7,250 $2.90 $95,000.00 None Two 10-Year Options Tenant on ground lease of parcel ±24,930 SF
03/01/11 $7,975 $3.19 Option 1 @ $10,614.73/month Tenant built bldg at their expense
03/01/16 $8,773 $3.51 Option 2 @ $11,676.20/month
03/01/21 $9,650 $3.86 365 days notice

Total Owned GLA 30,115

Non Owned GLA


12721 Moreno Beach Dr. Owns their own parcel
Walmart 223,637 Participates in CAM recovery per CC &R’s

Total GLA 253,752

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Lease Notes Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

12751 Moreno Beach Dr.


101 Starbucks 1,700 03/05/06 03/31/16 CAM: Prorata share, cap of $7/SF for the first lease year; expenses not to increase by more than 106% per year.
Cap does not include taxes, insurance, utilities, trash, painting and grinding/slurrying the parking lot.
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 10% CAM
Exclusive: Primary operation of a coffee store selling fresh ground and whole beans, espresso drinks and
gourmet-brand identified coffee (only as long as tenant operates). Does not apply to Walmart, Del Taco, Wendy’s & Arco
Kick-Out: Tenant may terminate the lease in the first month of the 6th lease year with 180 days notice and a
payment of $45,000.
Continuous Operation: None known. If tenant fails to operate for 3 months, Landlord may terminate the lease.
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: Tenant does not pay an increase in taxes during the first 5 lease years.
Co-Tenancy: None known
Estoppel: Tenant must comply within 20 days
Security Deposit: $0

102 Ono Hawaiian BBQ 1,575 12/13/05 12/31/12 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a Hawaiian BBQ/Japanese restaurant (not incl. sushi and Chinese food)
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $4,173.75

12761 Moreno Beach Dr.


101 Gamestop 1,510 04/03/06 04/29/13 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 10% CAM excl. taxes and insurance
Exclusive: Primary operation of a video game and video game operations store.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 30 days
Security Deposit: $0

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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

102 4G/GSM Wireless 1,200 02/08/06 02/28/11 CAM: Prorata share


Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a cell phone, wireless communication device and telephone store.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $2,700

103 Payless Shoe Source 2,882 03/15/06 03/31/16 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 15% CAM excl. taxes and insurance
Exclusive: Primary operation of a retail discount shoe store under 5,000 SF.
Kick-Out: None known
Continuous Operation: None known.
Sublease/Assign: Landlord consent not required
Prop 13 Tax Protection: None known
Co-Tenancy: If Walmart fails to operate for one year, tenant may cancel the lease with 90 days notice starting in the 6th
lease year, unless a suitable replacement tenant opens in Walmart’s space.
Estoppel: Tenant must comply within 20 days
Security Deposit: $0
Gross sales: Tenant must report

12831 Moreno Beach Dr.


101 Mr. You’s 2,120 01/06/06 01/31/16 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of an Asian/Chinese food restaurant.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $5,512
Gross sales: Tenant must report

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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

102 Quizno’s 1,300 02/09/06 02/08/16 CAM: Prorata share


Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a sandwich restaurant, also salads, chips and drinks not to exceed 20% of gross sales.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $7,150
Gross sales: Tenant must report

103 Juice It Up 1,080 01/12/06 01/31/16 CAM: Prorata share


Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a fruit and tea-based smoothie restaurant under 1,500 SF.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $2,700
Gross sales: Tenant must report

104 Sushi Palms 1,500 01/05/06 01/31/16 CAM: Prorata share


Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a sushi restaurant under 1,500 SF.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $3,975
Gross sales: Tenant must report

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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

106 Angel’s Nails/ 1,950 01/05/06 01/31/16 CAM: Prorata share


Happiness Nails Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a nail and spa treatment establishment.
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $4,792.50

107 Postal Annex 1,502 01/09/06 01/31/13 CAM: Prorata share


Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: None known
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 5 days
Security Deposit: $4,055.40

108 Service Plus Credit Union 3,150 02/13/06 02/28/13 CAM: Prorata share, capped at $0.55/month per square foot, with annual increases capped at 105%.
Cap does not include taxes, insurance, utilities, trash, painting and grinding/slurrying the parking lot.
Taxes: Prorata share
Insurance: Prorata share
Management Fee: 3% minimum rent
Admin. Fee: None known
Exclusive: Primary operation of a
Kick-Out: None known
Continuous Operation: Tenant must operate continuously
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 10 days
Security Deposit: $0

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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

12641 Moreno Beach Dr.


Del Taco 2,446 2/30/06 02/28/26 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 10% CAM excl. taxes and insurance
Exclusive: Primary operation of a Mexican quick-service restaurant, excl. El Pollo Loco.
Kick-Out: None known
Continuous Operation: None known
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 10 days
Security Deposit: $0

12671 Moreno Beach Dr.


Wendy’s 2,500 01/31/06 12/31/16 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: None known
Admin. Fee: 12% CAM
Exclusive: Primary operation of a hamburger, hamburger product and chicken sandwich restaurant.
Kick-Out: None known
Continuous Operation: None known
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within 15 days
Security Deposit: $0

12821 Moreno Beach Dr.


El Pollo Loco 2,500 02/06/06 02/28/26 CAM: Prorata share
Taxes: Prorata share
Insurance: Prorata share
Management Fee: Prorata share
Admin. Fee: 10% CAM excl. taxes and insurance
Exclusive: Primary operation of a fast-food restaurant deriving 15% or more of its menu from chicken or Mexican food
excl. Wendy’s and Del Taco.
Kick-Out: None known
Continuous Operation: None known
Sublease/Assign: Landlord must consent
Prop 13 Tax Protection: None known
Co-Tenancy: None known
Estoppel: Tenant must comply within a reasonable time frame
Security Deposit: $0

Total GLA 30,115

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Lease Notes (cont.) Moreno Beach Plaza - Shops & Pads

Area Lease Dates


Suite Tenant Sq. Ft. Begin End Lease Notes

Non Owned GLA


12721 Moreno Beach Dr.
Walmart 223,637 CAM: Participates in CAM reimbursements per CC&Rs as billed by the Maintenance Director.
Taxes: Pays their parcel taxes direct to Assessor
Admin Fee: 10% CAM (excl. any Bldg related expenses, taxes, 3rd party Mgmt Fee)
Management Fee: None known

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First Year In-Place Net Operating Income Moreno Beach Plaza - Shops & Pads

Potential Gross Revenue


Base Rental Revenue 1,051,282
Scheduled Base Rental Revenue 1,051,282
Absorption & Turnover Vacancy 0
Expense Reimbursement Revenue 240,661
Total Potential Gross Revenue 1,291,943
General Vacancy (46,440)
Effective Gross Revenue 1,245,503
Operating Expenses
CAM 60,230
Insurance 15,057
Management Fee 37,365
Real Estate Taxes 141,137
Total Operating Expenses 253,789
Net Operating Income $991,714

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Projected Net Operating Income Moreno Beach Plaza - Shops & Pads

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Reversion
For the Years Ending Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020

Potential Gross Revenue


Base Rental Revenue 1,051,282 1,114,873 1,136,899 1,146,593 1,163,871 1,183,116 1,233,738 1,279,207 1,311,637 1,344,280 1,378,891
Scheduled Base Rental Revenue 1,051,282 1,114,873 1,136,899 1,146,593 1,163,871 1,183,116 1,233,738 1,279,207 1,311,637 1,344,280 1,378,891
Absorption & Turnover Vacancy 0 (3,337) 0 (28,399) 0 (4,104) (45,854) (7,687) (32,922) 0 (4,757)
Expense Reimbursement Revenue 240,661 248,757 255,946 257,285 269,367 274,571 275,058 295,554 297,997 311,963 318,302
Total Potential Gross Revenue 1,291,943 1,360,293 1,392,845 1,375,479 1,433,238 1,453,583 1,462,942 1,567,074 1,576,712 1,656,243 1,692,436
General Vacancy (46,440) (45,162) (49,627) (21,694) (51,471) (48,498) (11,723) (59,166) (35,619) (70,813) (68,045)
Effective Gross Revenue 1,245,503 1,315,131 1,343,218 1,353,785 1,381,767 1,405,085 1,451,219 1,507,908 1,541,093 1,585,430 1,624,391
Operating Expenses
CAM 60,230 62,037 63,898 65,815 67,789 69,823 71,918 74,075 76,298 78,586 80,944
Insurance 15,057 15,509 15,975 16,454 16,947 17,456 17,979 18,519 19,074 19,647 20,236
Management Fee 37,365 39,454 40,297 40,614 41,453 42,153 43,537 45,237 46,233 47,563 48,732
Real Estate Taxes 141,137 143,927 146,772 149,674 152,634 155,654 158,734 161,875 165,080 168,348 171,682
Total Operating Expenses 253,789 260,927 266,942 272,557 278,823 285,086 292,168 299,706 306,685 314,144 321,594
Net Operating Income $991,714 $1,054,204 $1,076,276 $1,081,228 $1,102,944 $1,119,999 $1,159,051 $1,208,202 $1,234,408 $1,271,286 $1,302,797
Leasing & Capital Costs
Tenant Improvements 0 1,236 0 8,454 0 1,391 16,396 3,075 9,801 0 1,613
Leasing Commissions 0 4,252 0 36,184 0 5,229 58,425 9,794 41,948 0 6,062
Capital Reserves 3,012 3,012 3,012 3,012 3,012 3,012 3,012 3,012 3,012 3,012 3,012
Total Leasing & Capital Costs 3,012 8,500 3,012 47,650 3,012 9,632 77,833 15,881 54,761 3,012 10,687
Cash Flow Before Debt & Taxes $988,702 $1,045,704 $1,073,264 $1,033,578 $1,099,932 $1,110,367 $1,081,218 $1,192,321 $1,179,647 $1,268,274 $1,292,110
Financing
Debt Service 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365
Total Financing 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365 659,365
Cash Flow After Debt & Before Taxes $329,337 $386,339 $413,899 $374,213 $440,567 $451,002 $421,853 $532,956 $520,282 $608,909

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Cash Flow Assumptions Moreno Beach Plaza - Shops & Pads

Analysis Period Vacant Lease-Up


Commencement Date 1-Jan-10 Total Vacant as of September 1, 2009 1,200 SF
Term 10 Years Projected Vacant at January 1, 2010 1,200 SF
Absorption Start Date 1-Jan-10
Area Measures Absorption Period 1 Month (s)
Building Square Feet 30,115 SF Monthly Rent (CY 2010) $2.95 PSF
Rent Adjustments 3.00% Annually
Growth Rates Free Rent 0.0 Month (s)
Operating Expenses 3.00% Annually Expense Recovery Type NNN
Property Taxes 2.00% Annually Lease Term 5 Years
CPI 3.00% Annually Tenant Improvements [5] $4.00 PSF
Market Rent 3.00% Annually Leasing Commissions [5] 5.00%

Operating Expenses Second Generation Market Leasing


Total Operating Expenses (CY 2010) [1] $8.43 PSF Lease Retention Ratio 75%
Management Fee 3.0% of EGR Monthly Rent (CY 2010) See Rent Roll
Property Taxes Reassessed Yes Rent Adjustments 3.00% Annually
Millage Rate 1.054650% Free Rent (New Tenants Only) 0 Month (s)
Special Assessments $1,660 Expense Recovery Type [6] NNN
Lease Term 5 Years
Capital Reserves (CY 2010) [2] $0.10 PSF Tenant Improvements (Weighted) $1.00 PSF
New $4.00 PSF
General Vacancy Loss [3] 5.00% Renewal $0.00 PSF
Leasing Commissions (Weighted) 2.00%
Assumable Financing [4] New 5.0%
Original Loan Balance $9,000,000 Renewal 1.0%
Outstanding Balance $8,615,959 Downtime (Weighted) 1 Month(s)
Loan to Purchase Price 65% New 3 Months
Interest Rate 6.17%
Loan Constant 7.33% Notes:
Monthly Payment (Interest Only Period) $0 [1] Operating expenses are estimates based on the per square foot expenses from the
Monthly Payment $54,947 Moreno Beach Plaza Phase II analysis.
Loan Funding 8/1/2006 [2] Capital Reserves do not inflate during term of analysis.
Number of Interest Only Payments 0 Months [3] All tenants are subject to general vacancy loss, except Del Taco, El Pollo Loco, Starbucks
Loan Balance at Maturity $6,694,513 and Wendys during current and, if any, assumed exercised option term. This factor includes
Loan Maturity 8/1/2020 losses attributable to projected lease-up, rollover downtime, and fixturing downtime.
Amortization Period 30 Years [4] Existing loan matures on 8/1/20, but it is assumed buyer will be able to pay off the
Loan Fee 0.50% remaining balance at the residual sale date.
[5] All leasing costs to be paid by seller.
[6] Although some existing tenants pay admin fees, it is assumed all second generation
tenants reimburse all expenses, including management fee but excluding admin fees, on
a NNN basis.

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First Year Income Detail Moreno Beach Plaza - Shops & Pads

Year Ending December 31, 2010

Lease Base Rent Operating Expense Recoveries


Suite Tenant Size Ends Annual $/SF/Mo. CAM Insurance Taxes Mgmt. Fee Admin. Fee Total $/SF/Mo.
Owned GLA
12751-101 Starbucks Coffee 1,700 Mar-16 $66,912 $3.28 $3,400 $850 $4,891 $0 $425 $9,566 $0.47
12751-102 Ono Hawaiian BBQ 1,575 Dec-12 56,100 2.97 3,150 788 7,381 1,954 0 13,273 0.70
12761-101 Game Stop 1,510 Jan-13 58,440 3.23 3,020 755 7,077 0 302 11,154 0.62
12761-102 GSM Wireless 1,200 Feb-11 37,664 2.62 2,400 600 5,624 1,489 0 10,113 0.70
12761-103 Payless Shoe Source 2,882 Mar-16 77,760 2.25 5,764 1,441 13,507 0 865 21,577 0.62
12831-101 Mr. You’s 2,120 Jan-16 70,776 2.78 4,240 1,060 9,936 2,630 0 17,866 0.70
12831-102 Quizno’s 1,300 Jan-16 44,232 2.84 2,600 650 6,093 1,613 0 10,956 0.70
12831-103 Juice It Up! 1,080 Jan-16 34,992 2.70 2,160 540 5,062 1,340 0 9,102 0.70
12831-104 Sushi Palms 1,500 Jan-16 53,556 2.98 3,000 750 7,030 1,861 0 12,641 0.70
12831-105 New Tenant 1,200 Dec-14 42,480 2.95 2,400 600 5,624 1,489 0 10,113 0.70
12831-106 Angel’s / Happiness Nails 1,950 Jan-16 68,994 2.95 3,900 975 9,139 2,419 0 16,433 0.70
12831-107 Postal Annex 1,502 Jan-13 56,743 3.15 3,004 751 7,039 1,864 0 12,658 0.70
12831-108 Service Plus Credit Union 3,150 Feb-13 154,633 4.09 6,300 1,575 14,763 3,908 0 26,546 0.70
12641 Del Taco (Pad) 2,446 Feb-26 68,000 2.32 4,892 1,223 11,463 0 489 18,067 0.62
12671 Wendys (Pad) 2,500 Dec-16 73,000 2.43 5,000 1,250 11,717 0 750 18,717 0.62
12821 El Pollo Loco (Pad) 2,500 Feb-26 87,000 2.90 5,000 1,250 11,717 3,102 810 21,879 0.73
Total GLA 30,115 $1,051,282 $2.91 $240,661 $0.67

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Tenant Profiles Moreno Beach Plaza - Shops & Pads

Lessee: Starbucks Corporation Lessee: GSM Wireless, Inc.


No. of Locations: 16,000 locations serving 35+ countries No. of Locations: Thousands throughout the US with more
Headquarters: Seattle, WA than 80 million subscribers to their services
Use: The operation of a coffee shop serving coffee beverages as Headquarters: New York, NY
well as roasted beans, coffee accessories, and teas. Use: The operation of a Verizon store selling mobile phone,
Website: www.starbucks.com telecommunications services, and cellular accessories.
About the Company: The world’s #1 specialty coffee retailer, Website: www.verizonwireless.com
Starbucks has more than 16,000 coffee shops in more than 35 About the Company: Verizon is the second largest US
countries. Starbucks owns more than 9,000 of its shops, which are telecommunications services provider. The company’s wire-line
located in about 10 countries (mostly in the US), while licensees business provides local telephone, long-distance, and Internet
and franchisees operate more than 7,400 units worldwide access services to residential and small to midsized businesses
(primarily in shopping centers and airports). In fiscal year 2008, in 28 states and Washington, DC. It has about 40 million voice
Starbucks reported sales of over $10.3 billion. access lines in operation and it serves about 8 million broadband
Internet customers. Verizon Wireless’ joint venture with Vodafone
Group, which is known legally as Cellco Partnership, makes it the
Lessee: Ono Hawaiian BBQ, Inc. top US wireless provider, ahead of AT&T Mobility, with more than
No. of Locations: 47 80 million customers. Verizon reported over $97.3 billion in sales
Headquarters: Diamond Bar, CA for fiscal year 2008.
Use: The operation of a restaurant serving Hawaiian and Guarantor: GSM Wireless, Inc.
Japanese cuisines.
Website: www.onohawaiianbbq.com
About the Company: Ono Hawaiian BBQ is a privately owned Lessee: Payless Shoes Source, Inc.
restaurant chain operating in Northern and Southern California Headquarters: Topeka, KS
and Arizona. No. of Locations:
Guarantor: Hua Gui Liang and Mel Chan Liang Use: The operation of
Website: www.payless.com
Financials: Owned by Collective Brands Inc, the largest non-
Lessee: GameStop, Inc. dba GameStop athletic footwear company in the Western Hemisphere and the
No. of Locations: 5,550 serving 16 countries largest footwear company in the Western Hemisphere based
Headquarters: Grapevine, TX on retail stores, Payless Shoe Source specializes in fashionable
Use: The operation of a video game store selling new and used yet affordable shoes and accessories. Collective Brands, Inc is a
games, hardware, entertainment software, and accessories. publicly-traded company on the NYSE (PSS) with 2008 fiscal year
Website: www.gamestopcorp.com sales of over $3 billion.
About the Company: GameStop is the largest retailer of the
video game sales industry. A majority of sales come from new
and used video games. The company also operates e-commerce Lessee: Chhoenrn You dba Mr. You’s
Web sites (GameStop.com, ebgames.com) and publishes Game No. of Locations: 10
Informer, a video game magazine that reaches more than 2.9 MR. YOU’S Use: The operation of a Chinese cuisine restaurant that also
million subscribers. The company’s 2005 purchase of rival
CHINESE delivers food to local customers.
Electronics Boutique doubled GameStop’s size. For fiscal year About the Company: Mr. You Chinese Food is a privately
2008, GameStop reported over $7.0 billion in sales. FOOD
owned restaurant chain in Southern California.
Guarantor: Chhoenrn You and Sary Samoenm

www.pcglaretail.com 25
Tenant Profiles (cont.) Moreno Beach Plaza - Shops & Pads

Lessee: H.F.Q., Inc. Lessee: Hoi Tran dba Happiness Nails


No. of Locations: 5,000 ANGEL’S No. of Locations: 1
Headquarters: Denver, CO NAILS & SPA/ Headquarters: Moreno Valley, CA
Use: The operation of store chain selling made-to-order, oven- Use: The operation of nail and spa salon.
HAPPINESS
toasted sandwiches. About the Company: Angel’s Nails & Spa is a privately owned
Website: www.quiznos.com NAILS store.
About the Company: The Quiznos Master operates the #2 Guarantor: Hoi Tran
sub sandwich chain. The company has locations in more than
30 countries. Founder Rick Schaden and his family control the
company with backing from investment firms JPMorgan Partners Lessee: Stanley King and Corazon King
(part of JPMorgan Chase) and Cervantes Capital. No. of Locations: 400
Guarantor: Hiromi Harris Headquarters: San Diego, CA
Use: The operation of a shipping and business services
company.
Lessee/Assignor: Juice It Up Franchise, Corp. Website: www.postalannex.com
Assignee: Jignesh Patel About the Company: PostalAnnex+ is one of four brands
No. of Locations: 150 operated by Annex Brands, Inc. The others are: Handle With
Headquarters: Irvine, CA Care-Packaging Stores, Sunshine Pack & Ship and SPS Moving.
Use: The operation of smoothie stand offering customers a Started in 1985 by Jack Lentz as PostalAnnex+, Inc., Annex
variety of fruit and yogurt smoothies, juice drinks, power shakes, Brands has become the second largest shipping and business
premium coffee and herbal teas. services company in the United States, with over 400 locations
Website: www.juiceitup.com providing services throughout the world.
About the Company: Juice It Up! Franchise Corporation Guarantor: Stanley King and Corazon King
operates a chain of more than 150 franchised smoothie stands
in California and more than half a dozen states. The Juice It Up!
menu also features premium coffee and herbal teas. Larry Sidoti Lessee: Service Plus Credit Union
co-founded the chain in 1995 with three other partners. No. of Locations: 2
Guarantor: Juice It Up Franchise, Corp. SERVICE PLUS Headquarters: Riverside, CA
CREDIT UNION Use: The operation of a credit union including three ATMs.
Website: www.servicepluscu.org
Lessee: Joseph C. W. Ling dba Sushi Palms About the Company: Service Plus Credit Union was founded
No. of Locations: 1 as a not-for-profit, member-owned financial cooperative.
SUSHI Headquarters: Moreno Valley, CA
Use: The operation of a Japanese Sushi restaurant.
PALMS About the Company: Sushi Palms is a privately owned
restaurant.
Guarantor: Joseph C. W. Ling and Min Ping Chen

www.pcglaretail.com 26
Tenant Profiles (cont.) Moreno Beach Plaza - Shops & Pads

Lessee: Del Taco, Inc. Lessee: El Pollo Loco, Inc.


No. of Locations: 500 No. of Locations: 380
Headquarters: Lake Forest, CA Headquarters: Costa Mesa, CA
Use: The operation of a fast food chain serving Mexican-style Use: The operation of a fast-food/casual restaurant serving
food and traditional fast-foods such as hamburgers, French fries, Mexican style food, including chicken burritos and tacos, salads,
and shakes. and complete chicken dinners.
Website: www.deltaco.com Website: www.elpolloloco.com
About the Company: Del Taco is the #2 quick-service About the Company: El Pollo Loco Holdings operates and
Mexican chain in the US, with locations in about a dozen, mostly franchises stores under the El Pollo Loc. Most El Pollo Loco outlets
western, states. Most of Del Taco’s locations are company- are in California, while a small number can be found in more
owned. Founded in 1964, the company was acquired in 2006 than a half dozen other states including Arizona, Nevada, and
by Sagittarius Brands, parent of the Captain D’s seafood chain. It Texas. About 230 of the restaurants are operated by franchisees.
reported sales of $334.4 million in fiscal-year end 2007. Juan Francisco Ochoa started the chain in Mexico in 1975.
El Pollo Loco is owned by private equity firm Trimaran Capital
Partners.
Lessee: Wendy’s International, Inc.
No. of Locations: 6,600
Headquarters: Dublin, OH
Use: The operation of a fast food chain making made-to-order
burgers and fries as well as such alternative menu items as baked
potatoes, chili, and salads.
Website: www.wendys.com
About the Company: A leader in the fast food business,
Wendy’s International operates the world’s #3 hamburger chain
in terms of locations (behind McDonald’s and Burger King) with
its Wendy’s Old Fashioned Hamburger eateries throughout
the US and about 20 other countries. More than 1,400 of
the restaurants are owned by the company, while the rest are
franchised. Wendy’s is a subsidiary of Wendy’s/Arby’s Group
(NYSE:WEN). In fiscal year-end 2008, Wendy’s/Arby’s Group
reported total revenues of $1.8 billion.

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Moreno Beach Plaza - Shops & Pads

Exclusive Agents Confidentiality Agreement

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further
interest in the acquisition of Moreno Beach Plaza - Shops & Pads (“Property”).

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of
affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require
to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and
Sam Alison are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the
Lic. 01167124 Owner and CB Richard Ellis. Therefore, all projections, assumptions and other information provided and made herein are subject to
818.907.4727 material variation. All references to acreages, square footages and other measurements are approximations. Additional information
and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner
sam.alison@cbre.com nor CB Richard Ellis, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty,
expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or
Dan Riley obligation shall arise by reason of your receipt of this Memorandum or use of its contents. We obtained the information contained herein
Lic. 01057519 from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation
about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or
310.765.2595 financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may
dan.riley@cbre.com not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation
of the property and transaction.
Danielle Bower
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the
Lic. 01847718 Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this
818.907.4729 Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer
danielle.bower@cbre.com to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and
approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and
treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the
prior written authorization of the Owner or CB Richard Ellis. You also agree that you will not use this Memorandum or any of its contents
in any manner detrimental to the interest of the Owner or CB Richard Ellis.

In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do
CB Richard Ellis, Inc. not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to
Broker Lic. 00409987 review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum
111 Universal Hollywood Drive in any manner.
Suite 2700
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to
Los Angeles, CA 91608 CB Richard Ellis.
818.907.4720 F

September 2009

www.pcglaretail.com 28