1441 Montiel Road, Escondido

FINANCIAL ANALYSIS

ASSUMPTIONS

1441 Montiel OM

Analysis Date: 2/6/2019

General Assumptions

Annual Consumer Price Index

3.0%

Weighted Average

Percentage

Annual Market Rent Growth

Fiscal Year Ending Apr 30, 2020 Fiscal Year Ending Apr 30, 2021 Fiscal Year Ending Apr 30, 2022 Fiscal Year Ending Apr 30, 2023 Fiscal Year Ending Apr 30, 2024 Fiscal Year Ending Apr 30, 2025 Fiscal Year Ending Apr 30, 2026

$1.25 $1.29 $1.33 $1.37 $1.41 $1.45 $1.49

3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 5.0% 3.0% 2.0%

Beyond

Vacancy/Credit Loss [1]

Operating Disbursements Annual Growth Rate

Property Taxes Annual Growth Rate

Property Tax Rate Millage Rate

1.14060%

Fixed Charge Assessments

$122.88

Market Leasing Assumptions

Suites 115 & 141

Suite 115 B

Suite 143-145

Renewal Probability

80.0%

80.0%

80.0%

Lease Term

60 Months

60 Months

60 Months

Market Rent

$1.25 NNN

$1.25

$1.25

Recovery Type

NNN NNN (excl. Taxes)

Rent Adjustment

3.00% Annually 3.00% Annually 3.00% Annually

Tenant Improvements New

$15.00 $5.00 $7.00

$15.00 $5.00 $7.00

$15.00 $5.00 $7.00

Renewal

Weighted Average

Lease Commissions New

6.00% 4.00% 4.40%

6.00% 4.00% 4.40%

6.00% 4.00% 4.40%

Renewal

Weighted Average

Turnover Vacancy Fiscal Years 1-2

6 Months 1 Months 3 Months 1 Months

6 Months 1 Months 3 Months 1 Months

6 Months 1 Months 3 Months 1 Months

Weighted Average

Thereafter

Weighted Average

Base Rent Abatement New

2 Months 1 Months

2 Months 1 Months

2 Months 1 Months

Renewal

Vacant Space Assumptions

Square

Absorption

Start Date

End

Lease

Base Rent

Tenant

Bldg

Suite

Feet 7,182 7,182

Period

Date

Term Abatement

Improvements

1441

115 B

6 Months

11/1/2019

10/31/2024

60 Months

2 Months

$50.00

[1] General Vacancy is reduced by Absorption/Turnover Vacancy.

OFFERING MEMORANDUM

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