The Kase Group Men’s Wearhousekaseholdings.com/properties/proposals/Men's Wearhouse Bakersfield.pdf · Rent Roll Summary 2 Property Analysis 3 Additional Information. All Sperry

Institutional Quality Asset New Long Term Net Leased Structure Zero Landlord Obligations Scheduled Increases in Rent Below Market Non-Recourse Financing NYSE: MW

Presented by: Kase Abusharkh

(925) 348-1844

[email protected]

www.TheKaseGroup.com

Men’s Wearhouse Bakersfield, CA (Southern California)

$8,125,000 7.70% CAP

The Kase Group

Professionally Owned and Managed by

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Table of Contents

1 Financial Analysis

Investment Information

Debt Summary

Rent Roll Summary

2 Property Analysis

3 Additional Information

All Sperry Van Ness® Offices Independently Owned and Operated.

1 . Financial Analysis


Investment Information MEN'S WEARHOUSE 5801 District Boulevard Bakersfield, CA 93313

Listing Price $8,125,000

Years 1-5 CAP 7.70 %

Years 6-10 CAP 8.45 %

Price Per S.F. $34.96

Building S.F. 232,396

Land Acres 15.74

Loan Amount $5,372,916

Down Payment $2,752,084

Estimated Annualized Operating Data Years 1-5 Years 6-10 Years 11-15 Option 1

Scheduled Income $606,000 $666,600 $733,260 $824,918

Other Income $19,800 $19,800 $19,800 $19,800

Net Operating Income $625,800 $686,400 $753,060 $844,718

Highlights

Net Leased Asset 10% Increases Every 5 Years Zero Landlord Obligations Below-Market Financing at 5.87% Interest Only


Debt Summary

Current Principal: $5,372,916 Interest Rate: 5.87% Maturity Date: 3/1/2017 Loan Type: Fixed Loan Payment: $381,192 Down Payment: $2,752,084 (33%)

Existing non-recourse debt is serviced by Bank of America. The rate is fixed at 5.87% interest amortized over 30 years. The Loan must be assumed unless defeased. The properties are cross-collateralized. There is a one half percent assumption fee to be paid by the Buyer. In lieu of "warm body" signature for non-recourse "bad-boy" carve-out acts, buyer may post letter of credit.

Principal Balance at maturity in 2017: $4,942,935


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Rent Roll Summary Tenant Name Start Date End Date Occupied

S.F. Annual

Rent S.F. Occupied

Rent % of Total

Escalations / Options / Comments

The Men's Wearhouse 2/23/2009 2/29/2024 232,396 $2.61 $606,000 100.0 % Rent increases by 10% every 5 years. 2014: $666,600 2019: $733,260 Three 5 year options. 12.5% increase, each option period.

Total 232,396 $606,000 100.0 %


2 . Property Analysis


Men’s Warehouse Property Overview

5801 District Boulevard, Bakersfield, California

Improvements Description: Number of Buildings: 1 Construction Type: Metal Clad Building Gross Building Area: 232,936 SF Land Area: 685,634 SF Year Built: 1981 Year Renovated: 2009 Number of Parking Spaces: 127 Foundation: Concrete

Clear Height: 22 feet Dock Height: Loading Doors: 15 Drive-In Doors: 1 HVAC: Yes Phase 1: 2007, Clean Elevators: No Sprinklers: Yes

Overview: 5801 District Boulevard in Bakersfield, California, is a 232,936 square-foot, rail served, single tenant manufacturing and distribution facility that is 100% leased to The Men’s Warehouse. The Men’s Warehouse has 13 years remaining on a 15 year lease with 10% rental escalations every 5 years. The property, originally built in 1981, is a quality, high cube (22’ clear) pre-fabricated metal building with multiple light capacity cranes throughout that sits on approximately 13.35 acres of land in the Stockdale Industrial Park. There is an additional 2.39 – acre out parcel that is adjacent to the facility that can accommodate future building or parking expansion. Highlights: The Men’s Warehouse incurred over $1,000,000 in initial tenant improvements in 2009.

The property serves as the West Coast Distribution Center for The Men’s Warehouse formal wear business.


Tenant Overview

Men's Wearhouse (NYSE: MW) is a men's dress apparel retailer. The company is based in the Westchase area of Houston, Texas, and it is publicly traded on the New York Stock Exchange. The company was founded by George Zimmer in 1973.

The company operates under the names Men's Wearhouse, K&G Superstores, Moores Clothing for Men (a Canadian chain of men's clothing stores), and Twin Hill Corporate apparel. In 1997, it purchased, then liquidated, the bankrupt Kuppenheimer chain.

The chain runs television and radio commercials featuring Zimmer, and the oft-repeated slogan, "You're going to like the way you look; I guarantee it." According to Business Week, Men's Wearhouse targets the common man, with "the neatly displayed clothes in Zimmer's stores [being] designed to cater to the unpretentious guy who wants to do as little as possible to maintain his wardrobe."

On November 17, 2006, Men's Wearhouse acquired After Hours Formalwear, a clothier specializing in black tie formalwear, from Federated Department Stores, the parent company of department store giant Macy's. After Hours Formalwear was originally rebranded MW Tux, but has now been rolled up under the Men's Wearhouse brand. The formalwear group within Men's Wearhouse specializes in tuxedo rentals for men and boys for black tie events.

In August 2010 Men's Wearhouse acquired the trade and assets of Alexandra plc, which was in administration and Dimensions Corporatewear to develop its presence in Europe.

Men’s Warehouse has a market cap of $1.75 Billion as of May 2011 and a shadow rating of BB.

For more information visit www.menswearhouse.com.


Tenant Name: THE MEN'S WEARHOUSE, INC.

Entity Type: Texas Corporation

Premises Address: 5801 District Boulevard

City/State/Zip: Bakersfield, California 93313

TENANT SPACE INFORMATION

Suite/Space # N/A Rentable Square Feet: 232,936

BASIC LEASE INFORMATION

Lease Agreement Date: February 23, 2009 (cover)

Lease Commencement Date: February 23, 2009 (4)

Rent Commencement Date: February 23, 2009 (5.1)

Lease Expiration Date: February 29, 2024 (4)

Lease Term: 15 Years with option for 3 consecutive 5 year extensions; requires 180 day advanced notice before end of term (4, 4.1)

Comments/Discrepancies:

Date Lease & Ancillary Documents

BASE RENT

Term Begin End Annual Monthly PSF Rate SqFtPrimary 2/23/2009 2/28/2014 $606,000.00 $50,500.00 $2.60 232,936

- 3/1/2014 2/28/2019 $666,600.00 $55,550.00 $2.86 232,936- 3/1/2019 2/29/2024 $733,260.00 $61,105.00 $3.15 232,936

Extended 1 3/1/2024 2/28/2029 $824,917.50 $68,743.13 $3.54 232,936Extended 2 3/1/2029 2/28/2034 $928,032.19 $77,336.02 $3.98 232,936Extended 3 3/1/2034 2/28/2039 $1,044,036.21 $87,003.02 $4.48 232,936

Free Rent/Rent Abatement:

TENANT IMPROVEMENT ALLOWANCE

T.I. Costs: "Permitted Amount" is $150,000.00 in "constant dollars" (11.7)

SECURITY INFORMATION

Security Deposit Amount: Not Reflected in The Lease

Security Deposit Type: Not Reflected in The Lease

Comments: Not Reflected in The Lease

Guarantor: Not Reflected in The Lease

Limit on Guaranty Liability: Not Reflected in The Lease

RECOVERIES/REIMBURSEMENTS

CAM/Operating Expenses: Responsibility of Tenant (7.7)

Real Estate Taxes: Responsibility of Tenant (7) Escrow required (7.2) Exclusions (7.3) Contest (7.5)

Insurance: Split cost of earthquake insurance (side letter)

Utilities: Responsibility of Tenant (7.1, 7.7)

Admin./Mgmt. Fee: Not Reflected in Lease

Other:

Recovery Notes:

OPTIONS

Renewal: Option must be exercised at least 180 days prior to the last day of the current term (4.1)

Expansion: Not Reflected in Lease

Contraction: Not Reflected in Lease

1st Right/Refusal: Article 9. of Option Agreement

Relocation: Not Reflected in Lease

Termination: Non-Terminable (6.2)

Purchase: Option Agreement. $8,000,000.00 at specified times (Article 3) 5th 10th 15th anniversary of agreement

Other:

DEFAULT

Default Terms: Failure to pay rent (10 days after due date [last day of preceding month]) , failure to perform any lease covenant (30 days) , abandonment of the premises (60 days) (20.1)

Late Fee: 5% of outstanding balance. Late interest = prime+5% (as defined in lease) on outstanding balance. (5.4, 5.5)

RESTRICTIONS

Lease Abstract


Assignments/Sublease: Written consent of Landlord (16.1) 50% of profits to landlord (16.3)

Exclusives: Not Reflected in Lease

Permitted Use: Solely for uses defined as in accordance with the law (3)

Other:

TENANT INSURANCE REQUIREMENTSLiability: Liability with mins. $1M per person, $2M per occurrence, $1M per property (12.1) Hazard a.k.a. extended coverage max deductible $50K (12.2)

Hazard: extended coverage max deductible $50K (12.2)

Environmental: Tenant responsible for pollution legal liability insurance, $5M minimum (12.3)

Waiver of Subrogation: Yes (12.7)

Additional: Worker's Comp., Auto, Flood, Earthquake min $1M per occurrence (12.4)

Self Insurance: Tenant may self insure if net worth exceeds $150M (12.5)

ADDITIONAL INFORMATION

Estoppel Certificate: Landlord and Tenant must provide within 10 days of request by other party. Tenant certificate form attached as Exhibit D (23.1, 23.2)

Subordination: (22.1, 22.2)

Holdover/Surrender: Month to month holdover at 150% of most recent rate (24.3) Surrender clause (24)

Condemnation: (14)

Environmental: (2.1)

Financial Reporting: Tenant provides audited balance sheets, income statements, cash flow statements within 75 days of year end with reliance letter (18.1)

Miscellaneous: Landlord "for sale" sign display restriction: 180 days max with 120 in between. Down within 10 days of sale (30.10)


3 . Additional Information


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Aerial Photo


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Site Plan


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Parcel Map


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Location Map


Men's Warehouse Bakersfield Demographics 5801 District Boulevard Bakersfield, CA

5.00 Mile Ring

7.00 Mile Ring

10.00 Mile Ring

POPULATION 1990 Population 147,799 206,824 319,612

2000 Population 185,382 260,966 393,816 2009 Population 233,995 329,536 491,210 % Population Change 1990-2000 25.43 % 26.18 % 23.22 %

2014 Total Population 251,629 355,304 527,875 % Population Change 2000-2009 26.22 % 26.28 % 24.73 % % Population Change 2009-2014 7.54 % 7.82 % 7.46 % 2014 Total Households 86,688 121,014 177,857 % Households Change 2000-2009 26.12 % 26.93 % 26.03 % % Households Change 2009-2014 9.34 % 9.76 % 9.47 % 2009 Household Income $200,000-$249,999 216 267 339 2009 Household Income $250,000-$499,999 544 827 1,167 2009 Household Income $500,000+ 12 19 25 2009 Average Household Size 2.93 2.96 2.99 2009 Total Owner Occupied Housing Units 48,660 68,511 101,787 2009 Total Renter Occupied Housing Units 30,611 41,807 60,632 2009 Total Daytime Population 203,801 312,086 438,365 2009 Total Daytime Work Population 87,648 140,952 182,162 2009 Total Establishments 9,854 15,694 20,458

HOUSEHOLDS 1990 Households 52,591 71,711 109,268

2000 Households 62,861 86,865 128,922 2009 Households 79,281 110,257 162,475 % Households Change 1990-2000 19.53 % 21.13 % 17.99 %


2009 RACE AND ETHNICITY White Population 139,253 203,525 315,838

Black Population 20,953 26,952 31,042 American Indian/Alaska Native Population 3,555 5,477 8,933 Asian/Hawaiian/Pacific Islander Population 15,197 17,587 20,757 Other Population (Incl 2+ Races) 55,037 75,996 114,639

2009 Hispanic Population 99,875 140,877 220,817 2009 Non-Hispanic Population 134,120 188,659 270,393

INCOME 2009 Per Capita Income $21,358 $21,426 $20,934

2009 Median Household Income $45,537 $46,051 $44,986 2009 Average Household Income $63,038 $64,038 $63,289

2009 HOUSEHOLD INCOME DISTRIBUTION Household Income < $10,000 5,455 8,312 12,202

Household Income $10,000-$14,999 4,739 6,776 10,154 Household Income $15,000-$19,999 4,684 6,712 10,173 Household Income $20,000-$24,999 4,764 6,364 10,037 Household Income $25,000-$29,999 4,473 5,907 9,142 Household Income $30,000-$34,999 5,091 6,667 10,051 Household Income $35,000-$39,999 4,840 6,368 9,561 Household Income $40,000-$44,999 4,970 6,447 9,944 Household Income $45,000-$49,999 5,794 7,488 11,261 Household Income $50,000-$59,999 10,377 13,197 18,347 Household Income $60,000-$74,999 11,767 15,853 21,458 Household Income $75,000-$99,999 7,144 12,009 17,638 Household Income $100,000-$124,999 2,457 4,076 6,490 Household Income $125,000-$149,999 1,218 1,902 2,926 Household Income $150,000-$199,999 734 1,067 1,560