www.ngcip.com | Broker # 01910787T (209) 477-4400 | F (209) 476-7344

Single-tenant Net Leased Investment3197-3199 Jefferson StreetNapa, CA

FOR SALE Chris Santana | Vice President(925) 203-1106

chris.santana@ngcip.comLicense # 01868378

Xavier Santana| President(925) 226-2455

xavier@ngcip.comLicense # 01317296

Bill Johnson| Investments Partner(209) 546-6051

bill.johnson@ngcip.comLicense # 01992157

Confidentiality & Disclosure Agreement

Sacramento, California Reno, Nevada

Northgate Commercial Real Estate (“Broker”) has been authorized by the Seller of the Property (“Seller”) to prepareand distribute the enclosed information for the purpose of soliciting offers to purchase from interested parties.Additional information in the possession of the Seller including but not limited to financial, tenant, title, and buildingcan be made available upon request following the mutual execution of letter of intent (LOI) and/or Purchase andSale Agreement (PSA). All prospective Buyers may at the request of Seller, be required to submit financials andreferences to demonstrate Purchasers ability to close on the purchase of the property. The eventual Purchaser shallbe selected on the Sellers assessment of the price, terms, and the ability to close the transaction and such conditionsas set for in the contract. Seller, reserves the right to simultaneously negotiate with multiple Purchasers at Seller’s solediscretion. Prospective purchasers and their agents may not enter the property or disturb the tenant without Brokersconsent. All property tours shall be conducted by appointment only and must be coordinated by Broker. All theinformation contained in this offering memorandum has been obtained by sources deemed reliable but are notguaranteed. Prospective Purchasers shall bear the responsibility of conducting their own investigations on theproperty and review of the due diligence materials as provided by the Seller.

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PROPERTY SUMMARY727 South Broadway

Table of Contents

© 2017 Northgate Commercial Real Estate. We obtained the information above fromsources we believe to be reliable. However, we have not verified its accuracy and makeguarantee, warranty or representation about it. It is submitted subject to the possibility oferrors, omissions, change of price, rental or other conditions, prior sale, lease or financing,or withdrawal without notice. We include projections, opinions, assumptions or estimatesfor example only, and they may not represent current or future performance of theproperty. You and your tax an legal advisors should conduct your own investigation of theproperty and transaction.

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Investment SummaryExecutive & Investment SummaryLeasing Abstract

Marketing InformationMarket Profile

Market View

Property OverviewProperty Summary

Tenant ProfileKelly-Moore Paints

Demographics

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Exclusively Listed By:

Chris Santana | Vice President(925) 203-1106

chris.santana@ngcip.comLicense # 01868378

Xavier Santana | President(925) 226-2455

xavier@ngcip.comLicense # 01317296

Bill Johnson| Investments Partner(209) 546-6051

bill.johnson@ngcip.comLicense # 01992157

INVESTMENT SUMMARY

Austin, Texas

MARKET VALUE: $4,612,000

CAP RATE: 5.25%

NOI: $242,112

OCCUPANCY: 100%

GLA: ±6,208 SQ FT

LOT SIZE: ±0.41 Acre

PROPERTY SUMMARY3600 Sisk Road · Modesto, California

EXECUTIVE & INVESTMENT SUMMARY3197-3199 Jefferson Street Napa, California

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Investment Summary:

Asset Highlights:

• Corporate guarantee by Kelly-Moore Paint Company

• New Ten (10) Year Net Lease commencing upon close of escrow

• Building and grounds in good condition

• Close proximity to Downtown Napa, hotels, and retail centers

• Area Co-Tenants include Safeway, Whole Foods, Ross, Petco, Target, Dollar Tree, Walgreens, CVS, Orchard Supply Hardware, Benjamin Moore/Dunn Edwards Paints, Trader Joes + more

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SINGLE-TENANT NET LEASED INVESTMENT

Napa, California

LEASING ABSTRACT3197-3199 Jefferson Street

LEASE COMMENCEMENT: Close of Escrow

TERMS: 10 years

OPTIONS: 4 Options – 5 years each

RENT COMMENCEMENT: Close of Escrow

RENTAL INCREASES: 8% Every 5 years (base & option terms)

LEASE EXPIRATION: 10 years following Lease Commencement

DEPOSIT: None

LEASE TYPE: NNN

LANDLORD RESPONSIBILITES:Maintenance/replacement of the roof, structure, parking lot, exterior walls, utilities, HVAC (replacement only). Amortization of capital expenditures allowed subject to Lease Terms

TENANT RESPONSIBILITIES: Taxes, Insurance, and maintenance of the grounds, including the landscaping, glass replacement, and HVAC repairs/service contracts

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Kelly-Moore Paints

SINGLE-TENANT NET LEASED INVESTMENT

MARKET INFORMATION

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PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaMARKET INFORMATION3197-3199 Jefferson Street Napa, California

Napa, CaliforniaThe city of Napa is considered the Wine Capital of the World –known for its acclaimed vineyards, restaurants, and luxury hotels across the valley. Napa is also the home of an estimated 80,000 residents and 4,000 businesses that contribute to the growth of its community.

• Approximately 4,000 businesses and nearly 29,000 employees contribute to the service and economical growth of the city of Napa

• Average household income exceeded in $111,000 2017

• An estimated 30,000 households within the city limits and expected to exceed by 0.7% in 2022

Organization Product/Service Employees

Napa Valley Unified School District Public Education >1,900

Queen of the Valley Hospital Hospital >1,365

County of Napa Gov’t/Municipality >1,248

City of Napa Gov’t/Municipality >458

Meritage Resort & Spa Hospitality >447

Top Employers:

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SINGLE-TENANT NET LEASED INVESTMENT

PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaMarket View – Northern View3197-3199 Jefferson Street Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaMarket View – Southern View3197-3199 Jefferson Street Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

PROPERTY OVERVIEW

PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaPROPERTY SUMMARY3197-3199 Jefferson Street Napa, California

Location: 3197-3199 Jefferson Street | Napa, CA

APN: 001-304-013

GLA: 6,208 SQ FT

Lot Size: ± 0.41 ACRE (18,295 SQ FT)

Year Built: 1960

Zoning: General Commercial (GC)

Traffic Counts: Jefferson Street @ Site: ± 30,000 ADT

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SINGLE-TENANT NET LEASED INVESTMENT

TENANT PROFILE

Mission

To provide high quality, innovative products with exceptionalserviceat a fair value.

History

In 1946, William H. Kelly and William E. Moore recognized theunique needs of professional painting contractors for top-quality paint products and knowledgeable, efficient service ata fair price. This philosophy has allowed Kelly-Moore to growfrom a single manufacturing facility and store in San Carlos,California, to one of the largest employee-owned paintcompanies in the United States. Its reputation for qualityproducts is unsurpassed in the industry. The company producessome of the most technologically advanced paint productsand sets the industry standard for new product developmentand quality control, and retains the reputation of "The Painter'sPaint Store.”

About Kelly-Moore Paints

TENANT PROFILE3197-3199 Jefferson Street Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

Not Just Your Neighborhood Paint Store

Kelly Moore has approximately 1,300 employees with nearly 150retail paint stores and 120 Independent Dealers.

Employee Owned – You are working with an owner. In 1998,Mr. and Mrs. William E. Moore established the Kelly-Moore PaintCompany Employee Stock Ownership Program (ESOP).Creating this program ensured the Moore Family tradition ofproviding only the highest level of service will continue for yearsto come.

Each employee-owner is committed to offering the best paintproducts along with exceptional customer service everyday.

PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaTENANT PROFILE3197-3199 Jefferson Street

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About Kelly-Moore Paints

Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

Manufacturing - Made in America Since 1946

Kelly-Moore has two strategically located, state-of-the-artmanufacturing facilities in key markets: San Carlos, Californiaand Hurst, Texas (outside Dallas). Our reputation for qualityproducts is unsurpassed in the industry. Kelly-Moore producessome of the most technologically advanced paint productsand sets the industry standard for new product developmentand quality control.

Our manufacturing facility in San Carlos is also the recipient offive widely recognized green business awards from the State ofCalifornia and San Mateo County for outstanding efforts toreduce pollution and solid waste and conserve water, energyand other natural resources.

PROPERTY SUMMARY3600 Sisk Road · Modesto, CaliforniaTENANT PROFILE3197-3199 Jefferson Street

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About Kelly-Moore Paints

Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

Austin, Texas

DEMOGRAPHICS

1 MI RADIUS 3 MI RADIUS MI RADIUS

POPULATION

2017 Estimated Population 21,741 83,003 92,169

2022 Projected Population 22,089 84,164 93,430

2010 Census Population 21,028 79,658 88,930

Projected Annual Growth 2017 to 2022 348 0.3% 1,161 0.3% 1,261 0.3%

Historical Annual Growth 2010 to 2017 713 0.5% 3,345 0.6% 3,239 0.5%

HOUSEHOLDS

2017 Estimated Households 7,753 30,744 33,989

2022 Projected Households 8,032 31,812 35,154

2010 Census Households 7,417 29,176 32,276

Projected Annual Growth 2017 to 2022 279 0.7% 1,067 0.7% 1,165 0.7%

Historical Annual Growth 2000 to 2017 1,114 1.0% 2,781 0.6% 2,995 0.6%

AVERAGE HOUSEHOLD INCOME

Estimated Average Household Income (2017) $95,395 $111,637 $115,225

Projected Average Household Income (2022) $118,205 $138,879 $144,124

Census Average Household Income (2010) $61,590 $78,728 $81,954

Projected Annual Change (2017-2022) $22,810 4.8% $27,242 4.9% $28,900 5.0%

Historical Annual Change (2000-2017) $39,759 4.2% $44,604 3.9% $46,680 4.0%

MEDIAN HOUSEHOLD INCOME

Estimated Median Household Income (2017) $73,330 $73,331 $73,332 $86,754

Projected Median Household Income (2022) $85,838 $99,245 $101,455

Census Median Household Income (2010) $55,234 $64,980 $66,549

Projected Annual Change (2017-2022) $12,507 3.4% $14,585 3.4% $14,701 3.4%

Historical Annual Change (2000-2017) $28,201 3.7% $32,551 3.7% $33,561 3.7%

Austin, TexasDemographics3197-3199 Jefferson Street Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

1 MI RADIUS 3 MI RADIUS 5 MI RADIUS

RACE AND ETHNICITYTotal Population (2017) 21,741 83,003 92,169White (2017) 14,606 67.2% 60,674 73.1% 67,755 73.5%Black or African American (2017) 198 0.9% 712 0.9% 848 0.9%American Indian or Alaska Native (2017) 180 0.8% 657 0.8% 730 0.8%Asian (2017) 730 3.4% 2,690 3.2% 3,109 3.4%Hawaiian or Pacific Islander (2017) 52 0.2% 148 0.2% 161 0.2%Other Race (2017) 5,116 23.5% 14,856 17.9% 15,963 17.3%Two or More Races (2017) 859 4.0% 3,267 3.9% 3,603 3.9%EDUCATIONAL ATTAINMENT (2017)Adult Population Age 25 Years or Over 14,523 57,323 64,046Elementary (Grade Level 0 to 8) 2,101 14.5% 6,539 11.4% 7,096 11.1%Some High School (Grade Level 9 to 11) 1,226 8.4% 3,527 6.2% 3,958 6.2%High School Graduate 2,710 18.7% 11,322 19.8% 12,758 19.9%Some College 3,289 22.6% 12,346 21.5% 13,699 21.4%Associate Degree Only 1,363 9.4% 5,114 8.9% 5,744 9.0%Bachelor Degree Only 2,442 16.8% 11,998 20.9% 13,539 21.1%Graduate Degree 1,392 9.6% 6,476 11.3% 7,252 11.3%Any College (Some College or Higher) 8,486 58.4% 35,934 62.7% 40,234 62.8%College Degree + (Bachelor Degree or Higher) 3,834 26.4% 18,474 32.2% 20,791 32.5%HOUSING Total Housing Units (2017) 8,120 32,454 35,967Total Housing Units (2010) 8,039 31,957 35,419Historical Annual Growth (2011-2017) 81 0.1% 497 0.2% 547 0.2%Housing Units Occupied (2017) 7,753 95.5% 30,744 94.7% 33,989 94.5%Housing Units Owner-Occupied 3,781 48.8% 17,949 58.4% 20,280 59.7%Housing Units Renter-Occupied 3,973 51.2% 12,796 41.6% 13,709 40.3%Housing Units Vacant (2017) 366 4.7% 1,710 5.6% 1,978 5.8%BusinessTotal Businesses 1,400 4,221 4,634Total Employees 11,248 33,578 40,905

Demographics727 South Broadway Napa, California

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SINGLE-TENANT NET LEASED INVESTMENT

Information About Brokerage Services

Sacramento, California Reno, Nevada

1. DUTIES AND RESPONSIBILITIES: A BROKER who provides Brokerage Services to oneor both parties shall describe and disclose in writing the BROKER’s duties andresponsibilities prior to the party or parties signing a contract to sell, purchase,option, or exchange real estate. BROKERS shall have the following duties andresponsibilities which are mandatory and may not be abrogated or waived by aBROKER, whether working with one party, or working with both parties:

A. Treat all parties to the transaction with honesty and exercise reasonable skilland care;

B. Unless specifically waived in writing by a party to the transaction:1) receive all written offer and counteroffers;2) reduce offers or counteroffers to a written form upon request of anyparty to a transaction; and3) present timely all written offers and counteroffers

C. Inform, in writing, the party for whom the BROKER is providing Brokerage Serviceswhen an offer is made that the party will be expected to pay certain closing costsand the approximate amount of the costs;

D. Keep the party for whom the BROKER is providing Brokerage Servicesinformed regarding the transaction;

E. Timely account for all money and property received by the BROKER;

F. Keep confidential information received from a party or prospectiveparty confidential. The confidential information shall not be disclosed by aBROKER without the consent of the party disclosing the informationunless consent to the disclosure is granted in writing by the party orprospective party disclosing the information, the disclosure is required bylaw, or the information is made public or becomes public as the result ofactions from a source other than the BROKER. The following informationshall be considered confidential and shall be the only informationconsidered confidential in a transaction:

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The following information shall be considered confidential and shall be the onlyinformation considered confidential in a transaction:

1) that a party or prospective party is willing to pay more or accept lessthan what is being offered,2) that a party or prospective party is willing to agree to financing termsthat are different from those offered,3) the motivating factors of the party or prospective party purchasing,selling, optioning or exchanging the property, and4) information specifically designated as confidential by a party unlesssuch information is public.

G. Comply with all requirements of the Oklahoma Real Estate Code and allapplicable statutes and rules;

H. When working with one party or both parties to a transaction, the duties andresponsibilities set forth in this section shall remain in place for both parties.

2. BROKERAGE SERVICES: Services are provided to both parties to the transaction.The Oklahoma BROKER Relationships Law (Title 59, Oklahoma Statutes, Section 858-351 – 858-363) allows a real estate BROKER to provide brokerage services to bothparties to the transaction. If the prospective BUYER wants to make an offer on theproperty, the BROKER must now provide a written notice to both the BUYER andSELLER that the BROKER is now providing brokerage services to both parties to thetransaction. The law states that there are mandatory duties and responsibilities thatmust be performed by the BROKER for each party.

3. CONFIRMATION OF DISCLOSURE OF DUTIES AND RESPONSIBILITIES: The duties andresponsibilities disclosed by the BROKER shall be confirmed in writing by each partyin a separate provision, incorporated in or attached to the contract to purchase,option or exchange real estate.

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