FOR LE ASE /SALE Offering Memorandum Valencia Restaurant Row

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1 Valencia Restaurant Row Exclusively Listed by: Executive CA BRE Lic. # CA CA NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED. 2 Restaurant/Retail Pads with Drive-Thru Potential

2 NAI Capital, Inc., is proud to present Property Highlights an excellent owner-user / development Located in a Prime Valencia Location w/freeway Visibility opportunity to lease or purchase prime Major Freeway Visibility with Immediate Freeway Access freeway visible, freestanding restaurants Signalized Intersection & Gateway to 6 Flags Magic Mountain & Hurricane Harbor and commercial pads for build-to-suit / development opportunity. w/almost 3 Million Visitors Excellent Owner-User / Development Opportunity of Prime Restaurant / Retail / Commercial Uses These prime sites are situated in an iconic Heavy Traffic Count w/almost 400,000 Cars Per Day Valencia location that is the gateway 1,600 Feet of Prime I-5 Freeway Frontage & Onramp Access to 6 Flags Magic Mountain / Hurricane Recently Renovated Freestanding Restaurant Bar/Grill Type + 47 License Harbor, Valencia Town Center and the Prime Restaurant / Retail Pads Available for Either Build-to-Suit or Ground Lease future Entrada and Newhall Hall Ranch Sites 1 and 2 can Be Combined for Larger Development Opportunity Development Sites. Close Proximity to Single & Multi Residential Neighborhoods Major Building and Pylon Signage for each of the Sites Minutes from Valencia Town Center Amenities, Hyatt Hotel and Conference Center, TPC & Valencia Country Club Executive

3 Demographics 1 Mile 3 Mile 5 Mile Daytime Population 6,325 50,473 81,094 Total Population 4,743 65, ,444 $129,712 $120,254 $118,213 $11,202,502 $127,606,582 $262,159,878 Average HH Income Food away from Home Traffic Counts The Old Road 44,363 ADT Magic Mountain Parkway 17,000 ADT I-5 Golden State Freeway 320,000 ADT Total 381,363 ADT Executive

4 27430 The Old Road SITE 1: Valencia, CA Vacant Restaurant Building Size: 7,665 SF + outdoor patio Lot Size: 98,000 SF ± Parking: 112 paved & 60 unpaved Zoning: LA - C3 Liquor License: Type 47 APN: Year Built: 1989 Property Features Freestanding Restaurant recently renovated Under the 6 Flags Magic Mountain / Hurricane Harbor Iconic Pylon Signage Freeway & Highway Visibility Building and Freeway Pylon Signage Ample Parking (22:1,000) Available for Sale or for Lease Full Service Restaurant and Sports Bar Turn Key Condition Large Kitchen Space Excellent Investment / Owner User / Development Opportunity Fully Furnished Restaurant with Furniture, Fixtures and Equipment (including Available for Immediate Occupancy walk-in freezer and cooler) Pending application to build a 121 room HiltonHome2 on the Site Over $1 M Spent on Extensive FFE with Flat Screen TVs Throughout * Can be combined with Site 2 for larger development Executive

5 27510 The Old Road SITE 2: Valencia, CA El Torito & Surplus Land Building Size: 11,057 SF + outdoor patio Lot Size: 72,000 SF ± (Surplus Land not included in the Total SF) Parking: Ample Parking Zoning: LA - C3 APN: Year Built: 1986 Property Features Freestanding Restaurant Available for Sale or for Lease Freeway & Highway Visibility Turn Key Condition Ample Parking - Surplus Land along The Old Road Lease Expires July Full Service Restuarant and Bar Excellent Investment /Owner User / Development Opportunity Under the 6 Flags Magic Mountain / Hurrican harbor Iconic Pylon Signage Development Potential with Excess Land in the Rear Building & Freeway Pylon Signage * Can be combined with Site 1 for larger development Executive

6 The Old Road SITE 1 & 2 COMBINED: Valencia, CA Development Opportunity for Restaurant Sites Opportunity to Combine Sites 1 and 2 for a Larger Development A Total 3.92 AC Developable Parcels & Surplus Land Up to 2,000 Golden State Freeway Frontage Hotel / Medical Office / Retail -Drive Through Development Opportunity Preliminary Architectural Plans for a 121 Room Hotel or a 33,100 SF Medical Office Building are Available Wendy s and Red Lobster in the Same Block is Ideal for Hotel or other Commercial Development Types Executive

7 27510 The Old Road SITE 3: Valencia, CA Northeast Corner of Magic Mountain Parkway and The Old Road (2 Retail Pads) Lot Size: 77,972 ± SF Pad A: 2,000 SF Proposed Freestanding Restaurant w/ Drive-Thru Pad B: 5,000 SF Proposed Multi-Tenant Retail/Restaurant with Drive-Thru Parking: Proposed 70 Paved APN: Pending Zoning: LA - C3 Property Features 2 Pads for Proposed Development of a Freestanding Drive-Thru and Multi-Tenant Retail and Drive-Thru Restaurants Freeway & Highway Visibility Ample Parking Under the 6 Flags Magic Mountain / Hurricane Harbor Iconic Pylon Signage Major Signage with Tremendous Visibility Signalized Intersection Available for Lease or Build-to-Suit Executive

8 Location Highlights Major Signalized Intersection Adjacent to I-5 Freeway Onramp Gateway to Valencia Town Center, Magic Mountain/Hurricane Harbor, Newhall Ranch Development: 12,000 Acres Residential and Business Development. 21,000 Residential Units and 8 9 Million Square Feet Business Development, Including 1 Million SF of 5-10 Story Office Entrada and Newhall Ranch Developments Space and High-End Retail. Strong Demographics with Substantial Consumer Spending on Food Away from Home Dedicated Traffic Light Directly into the Entire Project The Old Road Widening Project Completed to Allow for Increased Traffic Up to 2,000 Frontage on I-5 Substantial Neighborhood Growth Opportunity Across from Chevron Gas, Hotels, Restaurants, Office Buildings and Entrada Gateway center 75 Acre mixed use development including 100,000 SF Sunkist Office Campus and Future Office, Retail, Residential Condos, Townhomes. Developer: Starwood/LNR Golf Courses Planned Developments Support Substantial Increase in Daytime Employment Entrada Residential: 1,600 Residential Units. Developer: Starwood/LNR Executive

9 Valencia Town Center A Well Respected Master Planned Community Just Minutes Away 551 Luxury Apartment and Condo Units Valencia Town Center - 800,000 SF Mixed-Use Development Hyatt Valencia with Santa Clarita Conference Center Valencia Town Center Regional Mall - 790,000 SF Two Level Mall with 3 IMAX Theater Department Stores and 110 Specialty Shops with an Arcade Executive

10 Valencia The Property is located in the Valencia area in an unincorporated part of Los Angeles County adjacent to the City of Santa Clarita, which is the 3rd largest city in Los Angeles County. Since 2000, the population of the Santa Clarita Valley has grown by 37% - much faster than California as a whole. The City is now home to an estimated 289,911 residents. The Santa Clarita Valley s labor market has rebounded sharply since The City has created 55,000 new jobs since 2010, posting the largest gain in employment in Los Angeles County. Unemployment decreased to 4.5% which is 37% lower than the overall California unemployment rate at 7.2%. With an expansion of employment, the demand for commercial real estate has accelerated dramatically. The commercial market is very TOP EMPLOYERS IN SANTA CLARITA strong and the demand for retail, hotel and office spaces is expected Employer to continue to increase through The labor market is heavily concentrated in manufacturing, retail trade, hotels, tourism and restaurants, and professional services. In the Santa Clarita Valley, there are six principal sectors that have been targeted as key industries for growth and recruitment: 1. Digital media and entertainment; 2. Aerospace and defense; 3. Medical Devices; 4. Advanced manufacturing; 5. Information technology, and; 6. Tourism. William S. Hart Union School District 2,988 Six Flags Magic Mountain 2,230 Saugus Union School District 1,900 Princess Cruises 1,625 College of the Canyons 1,603 U.S. Postal Service 1,564 Henry Mayho Newhall Memorial Hospital 1,356 Newhall School District 854 Quest Diagnostics 850 The Master s College 841 Executive # of Employees

11 Valencia Santa Clarita was named: Most Business Friendly City in Los Angeles by LAEDC; Top 20 Retail Markets by California Retail Survey in 2012; Best City for Industrial Development by LA Business Journal 18th best places to live in the United States in 2006 by CNN Money Magazine #3 Safest City in America by Parenting Magazine The City attracts national homebuilders to its friendly communities: Beazer Homes has started construction on Kensington at River Village, a townhome community on Newhall Ranch Road with a starting price of $479,900. The long term economic strength of Santa Clarita is well supported by its proximity to the Los Angeles area. With over $25 Billion infrastructure and construction activity currently underway, the strength of the Los Angeles economy continues to support regional business in Santa Clarita. Due to its favorable tax and business climate and its reverse commuting pattern, Santa Clarita offers one of the most desirable business environments in the region for owner users and investors. In 2015, the retail and office market is expected to continue its strong recovery with positive net absorption, and rising rent and sale prices. The limited supply and increasing demand for high quality retail and office space signals that investor confidence will remain strong in the Santa Clarita Valley for the foreseeable future. Executive

12 Tourism The tourism industry has rebounded and job creation in leisure and recreation Similarly, the Magic Mountain and Hurricane Harbor Attendance has increased services has accelerated sharply since the great recession. sharply since the recession reaching about 3 Million visitors per year. Executive

13 Average occupancy rates for the region s hotels and motels have topped their pre-recession levels to exceed the average hotel occupancy rate in California. Executive

14 Retail Market The greater Santa Clarita retail submarket consists of 135 anchored and non-anchored retail centers totaling about 9.2 Million SF. Since the recession retail sales have increased exponentially As the above chart shows, the asking rent is $21.75/SF (or $1.81/Month) NNN with an average vacancy of about 7%. This figure includes Palmdale and Lancaster with higher than average vacancy rate. In Valencia the vacancy rate is well under 5% with higher asking rents. Average rent $2.50 per square foot Valencia is a quickly developing area with only a limited number of freestanding retail parcels available for development. Due to the economic strength of Santa Clarita, the demand for existing retail and mixed use buildings is expected to grow. Executive

15 Office Market The greater Santa Clarita Valley office submarket is one of the newest markets in the greater Los Angeles Area. It consists of approximately 210 buildings with about 4.68 M square feet rentable building area M square feet or about 60% of all properties are located within the City of Santa Clarita. As the following chart show, only a very limited amount of investment went into new office and retail buildings since However, office employment has increased at a steady rate during the same time. This created a strong demand for office space. Currently, there is approximately 400,000 SF of existing office vacancy. There are no additional newly approved construction projects in the pipeline. With an expected 3,130 jobs created in 2015, this translates into about another year of supply. According to CoStar, the average rent is $28.48/SF or $2.37 per month on a full service basis. The asking rents for newly constructed medical and dental office space are substantially higher about $3.5/SF NNN. The majority of office properties in the Santa Clarita Valley are Class B products. There are only a limited number of newer multi-tenant office buildings in the area and they are in high demand. Due to limited supply, only three (3) larger than 10,000 SF office building were sold since January 2014 for a price ranging from $300.58/SF to $423/SF. with an average sale price of $364/SF. Due to the increasing demand and low inventory, lease and sale prices are expected to rise through 2017 and beyond. All Economic Slides are provided by MARK SCHNIEPP, Ph.D. Director, California Economic Forecast Executive

16 CALIFORNIA LA North Ventura County Inland Empire Westlake Village SFV/LA-HQ Commerce Orange County Pasadena San Gabriel Valley East Simi Valley South Bay West Los Angeles Palm Desert Temecula Valley Exclusively Listed by: Commerce 500 Citadel Dr., Ste. 100 Los Angeles, CA SFV/LA-HQ Ventura Blvd., Ste. 200 Encino, CA Inland Empire 800 N. Haven Dr., Ste. 400 Ontario, CA Pasadena 225 S. Lake Ave., Ste Pasadena, CA San Gabriel Valley East E. Copley Dr., Ste. 320 Diamond Bar, CA LA North Ste. 200 Valencia, CA Temecula Valley Calistoga Dr., Ste. 150 Murrieta, CA Ventura County 300 Esplanade Dr., Ste Los Angeles, CA West Los Angeles W Olympic Blvd., Suite 700E Los Angeles, CA Executive CA BRE Lic. # CA Orange County 1920 Main St., Ste. 100 Irvine, CA Palm Desert Gerald Ford Dr., Ste. 200 Palm Desert, CA Simi Valley 2655 First Street, #250 Simi Valley, CA South Bay 970 W. 190th St. Dr., Ste. 100 Torrance, CA NAI Capital Property Management Contact: Gail Robinson-Henry 1920 Main Street, Suite 100 Irvine, CA CA No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein.