Golden Center Plaza

Golden
C e n t e r P l a z a 4340 & 4370 Golden Center Drive

Placerville, CA

Multi-Tenant - Net Leased Retail Investment

$5,400,000 / 6.23% Cap Rate

PRESENTED BY

Tom Conwell Jr. Kelly Rivett
Managing Director Senior Managing Director
916.569.2380 916.569.2385
[email protected] [email protected]

CA RE License #01394155 CA RE License #01249433

17-1290 • 11/17

Terms of Offering Golden
Center Plaza

On behalf of the Owner of the property referenced herein (“Property”) present this Confidential Offering Memorandum (“Memorandum”) to
assist the recipient(s) (“You” or “Your”) in evaluating the Property and it is intended for Your use only. This Memorandum contains brief, selected
information pertaining to the Property and should not be considered all-inclusive or permanent. The information in this Memorandum has been
obtained from sources believed to be reliable, but has not been verified and is not guaranteed. You should independently verify each item of
information and have the same reviewed by Your tax advisor and/or legal counsel. Assumptions, projections, estimates and/or opinions are
provided as examples only and all information is subject to changes, errors, omissions and/or withdrawal without notice. Broker and Owner
assume no responsibility for and make no warranty as to the accuracy or completeness of any information in this Memorandum. Broker and
Owner expressly disclaim any implied or expressed warranties of merchantability, fitness for a particular purpose or non-infringement of
intellectual property relating to this Memorandum. In no event shall Broker or Owner be liable for any damages resulting from the reliance
on or use of any information in this Memorandum, including but not limited to direct, special, indirect, consequential or incidental damages.
By accepting receipt of this Memorandum, You agree to the following: (a) This Memorandum is of a highly confidential nature, will be held in
the strictest confidence and shall be returned to Broker upon request; (b) You shall not contact any property manager, employee or tenant of
the Property regarding the Property or this Memorandum, without prior approval of Broker or Owner; and (c) You understand and agree that
Broker represents Owner and not You. Neither Broker nor Owner shall have any obligation to pay any commission, finder’s fee, or any other
compensation to any broker or other person. By accepting receipt of this Memorandum, you agree to defend, indemnify and hold harmless
Broker and Owner (including all of their agents, employees, subsidiaries, affiliated entities, successors and assigns) from and against any and all
claims, disputes, litigation, demands, damages, liabilities, losses, judgments, expenses, fines, contributions, charges, injuries and/or costs and
expenses, including reasonable attorneys’ fees, arising or resulting from acts by You.

Legal documents and reports summarized in this brochure are not intended to be comprehensive statements of the terms and contents of such
documents and reports. Although Broker and Owner believe the information to be accurate, no warranty or representation is made as to its
accuracy or completeness. Interested parties should conduct independent investigations and reach conclusions without reliance on materials
contained herein.

The Property shall be sold AS-IS, WHERE-IS, WITH ALL FAULTS, and Seller makes no warranties, representations, certifications nor “to the best
of my knowledge” type statements to the status of the Property, the improvements thereon, potential use, economic feasibility, environmental
matters, the availability of development rights or permits or any other matters. Seller will not incur any obligations that extend beyond the Closing.

OFFERING PROCESS To facilitate analysis of offers, prospective
buyers are encouraged to provide information
Offers should be delivered to the office of the Exclusive Listing relative to: funding sources, experience in
Broker, Newmark Knight Frank, by fax at (916) 920-0854, or by owning and operating similar properties,
contacting: familiarity with the market and any other
information which is likely to favorably reflect
TOM CONWELL KELLY RIVETT on the offerer’s ability to close this proposed
916 569 2380 916 569 2385 transaction in a timely manner.
[email protected] [email protected]
CA RE License #01394155 CA RE License #01249433

Procuring broker shall only be entitled to a commission, calculated in accordance with the rates approved by our principal only if such procuring broker executes a brokerage agreement acceptable to us and our principal
and the conditions as set forth in the brokerage agreement are fully and unconditionally satisfied. Although all information furnished regarding property for sale, rental, or financing is from sources deemed reliable, such
information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior
sale, lease or financing, or withdrawal without notice and to any special conditions imposed by our principal.

4340 & 4370 Golden Center Drive [2] 2

Table of Contents Golden
Center Plaza
EXECUTIVE SUMMARY 4
OFFERING SUMMARY 5
BUILDING INFORMATION 6
PROPERTY SUMMARY 7
INVESTMENT HIGHLIGHTS 8
RENT ROLL 9
INVESTING INFORMATION 10
CASH FLOW 11
PARCEL MAP 12
REGIONAL MAP 13
TENANT MAP 14
AMENITIES MAP 15
LOCATION SUMMARY 16

4340 & 4370 Golden Center Drive [3] 3

Executive Summary Golden
Center Plaza

Newmark Knight Frank, as an exclusive advisor, is pleased to present for sale an opportunity to acquire a
Multi-Tenant Net Leased Investment located in Placerville, California. Golden Center Plaza is an 18,046
square foot retail center. This property was built in 2006 on 1.71 acres and is 100% occupied with 11
long-term tenants. This center was designed to capture the high traffic corridor of Missouri Flat Road (a
major trade area arterial ) and neighboring national tenants such as Walmart, Walgreens, McDonald’s,
Panda Express, Subway, Goodwill, Supercuts, T-Mobile, Pizza Guys, and AutoZone.

This asset is offered at a price of $5,400,000 which equates to an acquisition Cap rate of 6.23% on current
2018 income. A 10 year cash flow analysis projects an unleveraged IRR of 8.69% and a leveraged IRR
of 14.85%. With a limited amount of retail investment opportunities available, Golden Center Plaza
represents a stable investment with solid tenants in the golden foothills of El Dorado County.

4340 & 4370 Golden Center Drive [4] 4

Offering Summary Golden
Center Plaza

Property Name: Golden Center Plaza
Property Type: Neighborhood Retail Center
Address: 4340 & 4370 Golden Center Drive, Placerville, CA 95667
Net Rentable SF: ±18,046
Current Occupancy: 100% (Seller to guarantee vacancy space for 1 year)
Offering Price: $5,400,000
Yields: Cap Rate: 6.23%
Unleveraged IRR: 8.69%
Leveraged IRR: 14.85%
Year Built: 2006
Zoning: CC (Community Commercial)

4340 & 4370 Golden Center Drive [5] 5

Building Information Golden
Center Plaza

Construction Utilities

Roof Composition Water El Dorado Irrigation District
Sewer El Dorado Irrigation District
Structure Wood Frame Electricity PG&E
Garbage El Dorado Disposal
Exterior Stucco, Stone Veneer

Foundation Concrete Slab

Mechanical Central

Heat

Air Central

4340 & 4370 Golden Center Drive [6] 6

Property Summary Golden
Center Plaza

Property Name: Golden Center Plaza

Address: 4340 & 4370 Golden Center Drive, Placerville, CA 95667

County: El Dorado

Parcel Number: 327-212-22 and 327-212-23

Building SF: 18,046

Land Area: 1.71 Acres

Construction: Wood frame

Exterior: Stucco/stone veneer

Foundation: Concrete Slab

Roof: Pitched composite

4340 & 4370 Golden Center Drive [7] 7

Investment Highlights Golden
Center Plaza

• Attractive yield: 6.23% cap rate, unleveraged IRR: 8.69%, leveraged IRR: 14.85%
• 3% annual rent increases (9 of 11 tenants)
• High traffic location in dense retail corridor
• 18,046 rentable square feet
• 100% occupancy with long term tenants
• Great tenant mix (national and local)
• Neighboring tenants: McDonald’s, AutoZone, Subway, Supercuts, T-Mobile and Pizza Guys
• Average daily traffic count: 27,679 (Fed 2016 DOT) at Forni Road and Missouri Flat Road
• Missouri Flat Road is a major trade area arterial
• Across from Walmart, Walgreens, and Goodwill
• Easy access to Highway 50

4340 & 4370 Golden Center Drive [8] 8

Rent Roll Golden
Center Plaza

4340 Golden Center SF Monthly Rent $/SF Lease Expires Options
Tenant 831 $1,306.06 $1.56 1/31/2025 Yes
3564 $5,576.65
AccuQuest 1,820 $3,090.09 $1.56 10/31/2018 Yes
Grand China Chinese Cuisine 2,200 $4,335.68
1,546 $1,792.25 $1.70 6/30/2022 Yes
Lyon Real Estate 9,961 $16,100.73
Taqueria El Carnival $1.97 1/31/2020 Yes
SF
EC Health 1,200 $1.16 7/1/2019 No
1080
4370 Golden Center 1,920 Monthly Rent $/SF Lease Expires Options
Tenant 1,200 $2,025.90 $1.69 1/31/2020 Yes
Subway 1,020 $2,005.65 $1.86 1/31/2023 Yes
1,665
Supercuts 8,085 $2,768.64 $1.44 5/31/2022 Yes
T-Mobile
Golden Nails $1,890.85 $1.57 1/31/2021 No
Pizza Guys
Seller (1 yr) $1,951.06 $1.91 2/28/2022 No

$2,747.25 $1.65 1 yr @ COE No

$13,389.35

* Rent roll reflects 2018 rent increases
*All tenants have 3% annual rent increase except EC Health, they have a 2% annual rent increase

4340 & 4370 Golden Center Drive [9] 9

Investing Information Golden
Center Plaza

INCOME & EXPENSES 2018 PROFORMA

Price: $5,400,000

Down Payment: 30%/$1,620,000 Current

Number of Tenants: 11 Scheduled Gross Income: $353,880

Approx Net RSF: 18,046 CAM Reimbursements: NNN

Cap Rate: 6.23%

Price/SF: $299.24 Adjusted Scheduled
Gross Income: $353,880
Unleveraged IRR: 8.69% Less Vacancy (5%): ($17,694)

Leveraged IRR: 14.85%

NEW LOAN Effective Gross Income: $336,186
Loss Operating Expenses: NNN
Loan Amount: $3,780,000

Down Payment: $1,620,000 Net Operating Income: $336,186

Interest Rate: 4.5% Estimated Debt Service: ($252,125)

Amortization: 25 Years Pre-Tax Cash Flow: $84,061

Term: 7 Year Fixed Cash/Cash Return: 5.2%

Monthly P&I: $21,010 Cash IRR: 8.69%

Yearly P&I: $252,125 Leveraged IRR: 14.85%

4340 & 4370 Golden Center Drive [ 10 ] 10

Cash Flow Golden
Center Plaza

10 Year Cash Flow Analysis

Rental Income Growth 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Vacancy & Concession Rate 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Other Income Growth 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Operating Expenses Growth 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Property Taxes Growth 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Terminal Cap Rate 6.50% Year 7 Year 8
Cost of Sale 5.00%
Sales Price, End of Year 10 $6,727,652 $422,551 $435,228
(21,128) (21,761)
INCOME Per Unit / Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 181,763 187,216 Year 9 Year 10 Year 11
Rental Revenue [1] $32,171 583,187 600,683
(1,609) $353,880 $364,496 $375,431 $386,694 $398,295 $410,244 $448,285 $461,733 $475,585
Vacancy & Concessions 13,839 (17,694) (18,225) (18,772) (19,335) (19,915) (20,512) $76,692 $78,225 (22,414) (23,087) (23,779)
44,401 $152,224 156,791 161,494 166,339 171,329 176,469 9,552 9,839 192,833 198,618 204,576
(CAM Reimbursement) $488,410 503,062 518,154 533,699 549,710 566,201 618,703 637,264 656,382
Effective Gross Income 39,404 40,586
1,194 1,230
EXPENSES $6,191 $68,100 $69,462 $70,851 $72,268 $73,714 $75,188 $79,790 $81,386 $83,014
Property Taxes 727 8,000 8,240 8,487 8,742 9,004 9,274 16,984 17,494 10,134 10,438 10,751
Ins urance 33,314 34,313 41,803 43,058 44,349
Utilities 3,000 33,000 33,990 35,010 36,060 37,142 38,256
Adm inis trative 91 1,000 1,030 1,061 1,093 1,126 1,159 - - 1,267 1,305 1,344
Managem ent 177,140 181,687 18,019 18,559 19,116
Maintenance and Repairs 1,293 14,224 14,651 15,090 15,543 16,009 16,490 35,343 36,403 37,495
0 2,536 27,900 28,737 29,599 30,487 31,402 32,344 $406,047 $418,995
- - -
Total Expenses - - - - - - - - - 186,356 191,149 196,069
13,839 $152,224 156,110 160,098 164,193 168,396 172,711
Net Operating Income - - $432,347 $446,116 $460,313
$30,562 $336,186 $346,953 $358,056 $369,506 $381,314 $393,490 - -
Capital Upgrades $406,047 $418,995 ---
(5,400,000) - - - - - -
Purchase / Sales Price - (252,125) (252,125) - 7,081,739 All-Cash
Cost of Sale - - - - - - $153,922 $166,870 - (354,087) IRR
Total Cash Flow (5,400,000) - - - - - - $432,347 $7,173,768
$336,186 $346,953 $358,056 $369,506 $381,314 $393,490 7.52% 7.76% 8.69%
7.52% 7.76%
Loan Amount $3,780,000 - (252,125) (252,125) (252,125) (252,125) (252,125) (252,125) ($2,746,490) Leveraged
Debt Service [2] - (252,125) $94,828 $105,931 $117,381 $129,189 $141,365 8.94 8.68 $180,222 (252,125) IRR
Cash Flow After Deb t
All-Cash Returns ($1,620,000) $84,061 6.43% 6.63% 6.84% 7.06% 7.29% 9.50% 10.30% $4,175,153 14.85%
Capitalization Rate 6.43% 6.63% 6.84% 7.06% 7.29% 1.61 1.66
Cas h-on-Cas h 6.23% 10.36 10.06 8.01%
Gross Rent Multiplier 6.23% 9.76 9.48 9.20 8.01%
Leverage Returns 10.67 5.85% 6.54%
Cas h-on-Cas h 1.38 1.42 7.25% 7.97% 8.73% 8.42
Debt Coverage 5.19% 1.47 1.51 1.56
1.33 11.12%
1.71

[1] Rental income based on Market Rent Assumptions.
[2] Loan set to 70% LTV, 4.5% interest rate with a 25 year amortization period.

This information was obtained from sources believed to be reliable. All information, while supplied by Broker and Seller, is not warranted by either. BROKER and/or SELLER make no rep-
resentations or warranties whatsoever, written or implied, regarding the physical condition or economic feasibility of the property. Any references to income, expenses, age, square footage,
number of units, current rents, market rents, or specific location, are estimates only. Buyer must verify all information and bears the risk of any and all inaccuracies.

4340 & 4370 Golden Center Drive [ 11 ] 11

Parcel Map Golden
Center Plaza

4340 & 4370 Golden Center Drive [ 12 ] 12

Regional Map Golden
Center Plaza

DISTANCE TO 23 Miles Golden Center Drive
Folsom: 29 Miles Missouri Flat Road
Rancho Cordova: 41 Miles
Sacramento: 37 Miles [ 13 ]
Roseville: 126 Miles
San Francisco: 70 Miles
Lake Tahoe:

4340 & 4370 Golden Center Drive 13

Tenant Map Golden
Center Plaza
er Drive
Golden Cent

4340

(Not a part) 4370

(Not a part)

Missouri Flat Road

4340 TENANT LIST 4370 TENANT LIST
AccuQuest Subway
Grand China Chinese Cuisine Supercuts
Lyon Real Estate T-Mobile
Taqueria El Carnival Golden Nails
EC Health Pizza Guys
Seller

4340 & 4370 Golden Center Drive [ 14 ] 14

Amenities Map Golden
Center Plaza

4340 & 4370 Golden Center Drive [ 15 ] 15

Location Summary Golden
Center Plaza

PLACERVILLE EL DORADO COUNTY

Placerville is centrally located between With its western border touching California’s
Sacramento, the State capitol, and South Lake Central Valley, and its eastern boundary meeting
Tahoe, world-famous recreation center. Situated Nevada high in the Sierra Nevada mountains
above the fog line and below the snow line, overlooking Lake Tahoe, El Dorado County
Placerville boasts an ideal climate with four stretches across 90 miles of foothills, valleys and
distinct seasons. Accessibility to Placerville is via mountain peaks.
State Highway 49 and U.S. Highway 50, along
one of the most traveled corridors in California. Two major highways, U.S. 50 and State Route
Placerville’s treasured heritage is reflected in 49, intersect the county while State Route 88
the historical, nineteenth century architecture establishes the county’s southern border with
of its downtown core. In addition, Placerville Amador and Alpine Counties. Interstate 5 and
is the County seat and the center of financial, Interstate 80 are within 25 minutes of El Dorado
commercial, civic, and Government activity. Hills. This central west coast location offers one
day automobile access to a variety of cities,
Serving as a “hub” for many nearby destinations including San Francisco (2.5 hours), San Jose
and activities, Placerville is well situated. Premier (3.9 hours), Los Angeles (8.0 hours), Portland
wineries, Apple Hill Ranches, Historic Coloma, (8.0 hours), and Reno (1.5 hours).
the American River, and the El Dorado National
Forest are all located within minutes of downtown Since the early 1980’s, El Dorado County has
Placerville. The future of Placerville’s business been included in the Sacramento Metropolitan
economy will continue to be strengthened Statistical area. Major residential communities
and infused by these established and newly (El Dorado Hills, Cameron Park, and Diamond
developing areas of opportunity surrounding the Springs) in the western part of the county serve
hub. as suburban areas to the booming Sacramento
metropolitan region.
Source: Wikipedia

4340 & 4370 Golden Center Drive [ 16 ] 16

Golden
Center Plaza

4340 & 4370 Golden Center Drive, Placerville, CA

PRESENTED BY Kelly Rivett
Senior Managing Director
Tom Conwell Jr. 916.569.2385
Managing Director [email protected]
916.569.2380
[email protected] CA RE License #01249433

CA RE License #01394155