Actual Site

SINGLETENANT

___________________

VAN NUYSCALIFORNIA

15 YEARABSOLUTE NNNINVESTMENT OPPORTUNITY

(LOS ANGELES COUNTY)

EXCLUSIVELY MARKETED BY

PATRICK R. LUTHER, CCIM | MANAGING PRINCIPAL610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660

DL: 949.698.1115 | M: 480.221.4221Patrick.Luther@srsre.com | CA License No. 01209944

MATTHEW MOUSAVI | MANAGING PRINCIPAL610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660

DL: 949.698.1116 | M: 714.404.8849Matthew.Mousavi@srsre.com | CA License No. 01732226

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket con-ditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

MATTHEW G. HARDKE | FIRST VICE PRESIDENT610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660

DL: 949.698.1106 | M: 949.929.0558Matt.Hardke@srsre.com | License No. 01946266

Actual Site

5EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

7PROPERTY OVERVIEW

AERIALSPARCEL MAP SITE PLANS

LOCATION MAP

13AREA OVERVIEWVAN NUYS, CA OVERVIEW

DEMOGRAPHICS

16FINANCIALS

RENT ROLL PRICING SUMMARYTENANT OVERVIEW

Actual Site

PRICING: $6,320,000

NET OPERATING INCOME: $395,000

CAP RATE: 6.25%

GUARANTY: Strong Personal Guaranty (Contact Agent For Details)

LEASE TYPE: Absolute NNN

LANDLORD RESPONSIBILITIES: None

SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple interest (land & building) in a freestanding, single tenant, absolute NNN leased, Crunch Fitness, located in Van Nuys, California. The tenant recently signed a brand new 15-year lease with 2 (5-Year) options to extend, demonstrating their commitment to the site. The lease is personally guaranteed by Crunch Fitness’s CEO/Founder, the largest Crunch franchisee operator with 20+ Crunch Fitness locations across the nation (contact Agent for more details). The lease features a 10% rental increase in 2027. Crunch Fitness ust opened this July with well over $1 million invested in the buildout and capital improvements.

The Crunch Fitness is located along Van Nuys Boulevard (37,200 vehicles per day) with excellent visibility. The gym is a co-anchor, along with Jons International Marketplace, Fallas, and Dearden’s, to an inline shopping center. Other tenants within the shopping center include Payless Shoes and MTA Thrift Store. Crunch Fitness benefits from tenant synergy and crossover traffic with the retailers such as 99 Cents Only, Bank of America, Wells Fargo, Walgreens, Starbucks, and more, located along Van Nuys Boulevard, a major thoroughfare for the city of Van Nuys. The 5-mile trade area is supported by over 741,000 residents ($81,000 AHHI) and nearly 253,000 employees.

INVESTMENT SUMMARY OFFERING

PROPERTY SPECIFICATIONS

Actual Site

RENTABLE AREA: 20,662 SF

LAND AREA: 21,911 SF / 0.50 Acres

PROPERTY ADDRESS: 6723 Van Nuys Boulevard, Van Nuys, CA 91405

YEAR BUILT / REMODELED: 1950 / 2017

PARCEL NUMBER: 2236-010-001

OWNERSHIP: Fee Simple (Land and Building)

5 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP

INVESTMENT HIGHLIGHTS

Strong National Brand - Crunch Fitness • Headquartered in New York City, Crunch Fitness serves over 650,000 members across

150+ locations throughout the United States and Australia• Strong personal guarantee from Crunch Fitness Founder/CEO, the largest Crunch

franchisee with over 20 units (contact Agent for more details)

Brand New Long-Term 15-Year Lease | Rental Increases• Brand new 15-Year lease with 2 (5-Year) options• 10% rental increase in 2027 • Just opened this July

Absolute NNN Lease | Fee Simple Ownership | Zero Responsibilities• Tenant pays for all CAM, insurance, taxes, and maintains all aspects of the building• No landlord responsibilities• Ideal, management-free investment for an out of state, passive investor

Completely Renovated Building | Tenant Buildout | $700k in Equipment• New roof installed by tenant in late 2016• Structural retrofit, including mezzanine space, performed by tenant in late 2016 and

early 2017• Tenant is currently completing new facade, signage, and exterior painting• Front and rear doors and windows will be replaced by Tenant prior to opening• Tenant spent over $700,000 on equipment alone• Crunch Fitness will have spent ±$350,000 on roof and structural upgrades (totaling

±$600,000 with seller’s share) prior to fitness center buildout

Actual Site

6 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP

Adjacent to Supermarket | Part Of Inline Shopping Center | Shared Parking

• Adjacent to Jons International Marketplace• Endcap and co-anchor a shopping center with Jons International Marketplace, Fallas,

and Dearden’s as tenants• Shared parking lot with approximately 428 spaces - no cost to Tenant or Landlord• Excellent tenant synergy with crossover traffic

Along Major Thoroughfare | Retail Corridor | Prominent Monument Signage

• The gym is located along Van Nuys Boulevard (37,200 vehicles per day) with excellent visibility, street frontage, and access

• Van Nuys Boulevard is the primary thoroughfare for the city of Van Nuys• National tenants along Van Nuys Boulevard include Wells Fargo, Bank of America,

99 Cents Only, McDonald’s, Starbucks, and more • Prominent monument signage further increases visibility for the subject property

Extremely Dense In-Fill Trade Area Supported By Affluent Population• 741,000 residents and 253,000 employees support the 5-mile trade area• $81,000 average household income

ACCESSThere are two (2) access points with one (1) along Kittridge St and one (1) along Archwood St.

TRAFFIC COUNTSVan Nuys Boulevard: ....................................................... 37,200San Diego Freeway/ Interstate 405: ............................... 212,000

IMPROVEMENTSThere is approximately 20,662 SF of existing building area.

PARKINGThere are approximately 428 shared parking stalls.

YEAR BUILT / REMODELED1950 / 2017

PROPERTY OVERVIEW

PARCEL MAP

Actual Site

7 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP

PARCELParcel: 2236-010-001 Acres: 0.50 Square Feet: 21,911 SF

ZONINGC2: Commercial

N

N

ACTUAL SITE

Van Nuys Blvd. - 37,200 VPD

Kittridge St.

Archwood St.

Residential

UNDER CONSTRUCTION

Pylon Sign

N

Shared Parking - 448 Spaces(No Cost To Tenant or Landlord)

ACTUAL INTERIOR PHOTOS

N

LOS ANGELES

2015 ESTIMATED POPULATION3 Mile ........................................................326,7155 Mile ........................................................741,388

2015 AVERAGE HOUSEHOLD INCOME3 Mile ........................................................$69,2295 Mile ........................................................$81,087

2015 ESTIMATED TOTAL EMPLOYEES3 Mile ........................................................129,5495 Mile ........................................................252,758GLENDALE

BURBANK

SANTA MONICA

BEVERLY HILLS

VAN NUYS

SAN FERNANDO

Van Nuys is a neighborhood in the central San Fernando Valley region of the city of Los Angeles, Cal-ifornia. Van Nuys is directly served by the 405 (San Diego Freeway) passing through it. Other nearby freeways include: the Route 101 (Ventura Freeway), the Route 170 (Hollywood Freeway), the Route 118 (Simi Valley Freeway), and the Golden State Freeway section of Interstate 5.

Van Nuys Boulevard has a long and diverse commercial district along it, as do other major streets crossing through Van Nuys. From 1947 until 1992, GM operated an automobile factory called Van Nuys Assembly at the location of Van Nuys Boulevard and Arminta Street. Grupo TACA operates a Van Nuys-area TACA Center at 6710 Van Nuys Boulevard

The town was founded in 1911, and named for Isaac Newton Van Nuys, one of its developers. It was annexed by Los Angeles on May 22, 1915, after completion of the Los Angeles Aqueduct, providing it with the water required for further growth. Van Nuys was the first new stop on the San Fernando Line of the Pacific Electric Railway red cars system, which boosted its early land sales and commercial success.

Van Nuys became the Valley’s satellite Los Angeles municipal civic center, with the 1932 Art Deco Valley Municipal Building (Van Nuys City Hall), a visual landmark and Los Angeles Historic-Cultural Monument starting the present day Government Center complex of government services buildings.

In 1991 Marvin Braude, a member of the Los Angeles City Council, redesignated a 45-block area from being a part of Van Nuys to being a part of Sherman Oaks. This redesignated area included the com-munity of Magnolia Woods. Some area residents had presented a petition and several original deeds that stated “Sherman Oaks” to Braude. They argued that the area was originally a part of Sherman Oaks until the 1960s, when ZIP codes labeling the area as Van Nuys were established.

In 2014, A “Great Streets” project was introduced by Mayor Eric Garcetti with Van Nuys Blvd. to be redesigned between Victory Blvd. and Oxnard Street. Also, Sepulveda Blvd. was resurfaced between Victory Blvd and Oxnard Street in May 2014. A new Los Angeles County services building is under construction on the southwest corner of Van Nuys Blvd. and Saticoy Street in 2014..

AREA OVERVIEW OF THE CITY OF VAN NUYS

13 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

AREA OVERVIEW OF THE CITY OF VAN NUYS (CONTINUED)

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2016 Estimated Population 59,961 326,715 741,3882021 Projected Population 61,983 337,312 766,3532010 Census Population 57,846 316,690 716,519Projected Annual Growth 2016 to 2021 0.67% 0.64% 0.66%Historical Annual Growth 2010 to 2016 0.58% 0.50% 0.55%

2016 Estimated Households 18,601 107,570 244,5352021 Projected Households 19,156 110,595 251,8202010 Census Households 18,074 105,188 238,366Projected Annual Growth 2016 to 2021 0.59% 0.56% 0.59%Historical Annual Growth 2010 to 2015 0.46% 0.36% 0.41%

2016 Estimated White 50.70% 53.90% 55.90%2016 Estimated Black or African American 4.90% 4.30% 3.90%2016 Estimated Asian or Pacific Islander 7.30% 9.50% 9.00%2016 Estimated American Indian or Native Alaskan 0.80% 0.60% 0.60%2016 Estimated Other Races 31.30% 26.60% 25.40%2016 Estimated Hispanic 65.70% 55.30% 53.40%

2016 Estimated Average Household Income $54,299 $69,229 $81,087 2016 Estimated Median Household Income $36,608 $46,103 $53,412 2016 Estimated Per Capita Income $17,652 $23,170 $27,065

2016 Estimated Total Businesses 2,577 14,205 30,0552016 Estimated Total Employees 18,448 129,549 252,758

14 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

Actual Site

15 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA PHOTOS / SRS NATIONAL NET LEASE GROUP

ADJACENT PROPERTIES

FINANCIAL INFORMATION PROPERTY SPECIFICATIONS

Price: .......................................................................................................................................$6,320,000Net Operating Income: ...............................................................................................................$395,000Cap Rate: ........................................................................................................................................ 6.25%Lease Type:.........................................................................................................................Absolute NNN

Address: .......................................................................... 6723 Van Nuys Boulevard, Van Nuys, CA 91405Year Built / Remodeled: ........................................................................................................ 1950 / 2017Rentable Area: ...........................................................................................................................20,662 SFParcel Number: .................................................................................................................. 2236-010-001

RENT ROLL

Actual Site

CRUNCH FITNESSCrunch Fitness owns, operates, and franchises fitness centers in the United States and Australia. It offers hip-hop aerobics, co-ed action wrestling, cyked yoga cycling, and other classes, as well as personal and treadmill training services in its corporately owned and franchised locations. Headquartered in New York City, and co-owned by New Evolution Ventures (NeV) and private-equity firm Angelo Gordon, Crunch serves over 400,000 members with both corporately owned and franchised locations (Crunch Essential) in cities throughout the U.S. and in Australia.

BRAND PROFILE

16 / CRUNCH FITNESS / VAN NUYS, CALIFORNIA RENT ROLL / SRS NATIONAL NET LEASE GROUP

LEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONSCrunch Fitness 20,662 Jan 2017 Jan 2032 Current - $32,916 $1.59 $395,000 $19.12 Absolute NNN 2 (5-Year)

Personal Guaranty* Jan 2027 10% $36,083 $1.75 $433,000 $20.96 Option 1: $497,950

Option 2: $572,643

Notes:

1) Tenant has partial rent abatement for the first 66 months of the term. Seller will credit the Buyer the difference at the close of escrow. Contact Agent for details.

2) Lease is personally guaranteed by the largest Crunch Fitness franchisee, the Founder/CEO of Crunch Fitness.

Company Type: ................................... Private

Locations: ................................................ 163

Website: .............................. www.crunch.com

500+PROPERTIES CURRENTLY

REPRESENTED

600+CLIENTS REPRESENTED

IN 2014

$180M+HOW MUCH CLIENTS

SAVED IN 2014

20+OFFICES

280+BROKERS,

PROFESSIONALS,AND STAFF

$1.8B*TRANSACTION VALUE

*STATISTICS ARE FOR 2015.

SRS GLOBAL STATS

Actual Site