Investment Highlights

15-YEAR ABSOLUTE NNN GUARANTEED GROUND LEASE
» 15-year absolute NNN ground lease to ARCO
» Leased to and guaranteed by BP Corporation North America Inc., rated “A-” by Standard & Poor’s
» 10% fixed rental increases every five years in initial term and extension terms, providing a hedge against inflation
» ARCO has more than 1,500 gas stations in the western U.S.
» U.S. retail presence consists of approximately 7,200 BP and ARCO-branded sites, along with more than 1,000 ampm convenience stores in California, Oregon, Washington, Arizona, and Nevada

HIGH-TRAFFIC LOCATION IN NEW RETAIL CORRIDOR
» Located within Merced Gateway Retail Center, a new 77-acre mixed-use commercial development to feature several shops, restaurants, entertainment venues, a fire station, and approximately 200 apartment units
» Merced Gateway Retail Center is expected to create approximately 2,700 new jobs and generate $30 million a year in sales tax revenue
» High-visibility location at the four-way intersection of South Coffee Street and Campus Parkway with immediate access to State Route 99/Golden State Highway(42,500 AADT)
» Located on Campus Parkway, providing direct access to UC Merced and State Route 140, Yosemite’s all-weather route from State Route 99

STRONG CUSTOMER BASE NEAR UC MERCED POISED FOR FUTURE GROWTH
» 20 minutes from UC Merced (9,000+ students, 1,500 employees)
» UC Merced’s 2020 Project, a massive $1.3 billion expansion initiative, is expected to bring an additional 3,500 college students to Merced over the next three years
» Within walking distance of Golden Valley High School (1,716 students)
» Population of 82,913 within a five-mile radius
» Poised to benefit from growing and expanding retail trade area
» Merced’s population has grown faster than the state average since 1980

Property Description

SOLD

The property is strategically located just off the signalized intersection of South Coffee Street and Campus Parkway. The site is less than a mile from State Route 99 (42,500), which provides convenient access to Downtown Merced just four miles northwest of the property, and Golden Valley High School, located less than two miles north (1,716 students). Golden Valley Health Centers is also located less than five miles from the site and features 850 employees.

The property is located within Merced Gateway Retail Center, a 77-acre property that once completed will include several shops, restaurants, entertainment venues, a fire station, and approximately 200 apartment units. The project is expected to create approximately 2,700 new jobs and generate $30 million annually in sales tax revenue. Additionally, 82,913 people live within a five-mile radius of the property, providing a large customer base. UC Merced’s 2020 Project, a massive $1.3 billion expansion initiative that will more than double the size of the university’s campus, is expected to bring an additional 3,500 college students to Merced over the next three years. This, combined with Merced’s long history of faster-than-average population growth, creates an ideal situation for an explosive increase in the size of the property’s customer base in upcoming years.