1106 Cornwell Street, Los Angeles, CA 90033 Exclusively Offered By

Starbucks Fully Renovated in 2017 | 10 Year NNN Lease | High Barrier to Entry Location

BRAVO MEDICALMAGNET SCHOOL

EAST LOS ANGELESOCCUPATIONAL CENTER

2

THE OFFERINGJLL is pleased to offer for sale the fee-simple interest in a single-tenant Starbucks (the “Property” or “Asset”), located in a bustling market situated around the LAC + USC Medical Center in Greater Downtown Los Angeles. Situated on the hard corner of Maren-go Street and Cornwell Street, the Asset features a full 2017 renovation, 10 years of primary term, four five-year renewal options, and rental escalations every 5 years. Starbucks (S&P: “A”) is well-positioned within a market boasting impressive and convenient access to a mix of retail, healthcare, residential, and industrial occupiers. This offering represents the opportunity to purchase a freestanding, drive-thru Starbucks location, one of the most desirable tenants in the net lease investment world.

I N V E S T M E N T H I G H L I G H TSA DJ A C E N T T O L A C + U S C M E D I C A L C E N T E R• The internationally recognized medical complex features a 600-bed hospital,

700 physicians, 900 medical interns, and 2,600 nurses• 60,000+ daytime population within a 1-mile radius

N E W 1 0 Y E A R L E A S E W I T H F I X E D R E N TA L I N C R E A S E S E V E R Y 5 Y E A R S• The tenant’s brand new 10-year lease is expected to commence in November

2017 and does not have any tenant termination options• Lease calls for absolutely no landlord responsibilities

I N V E S T M E N T- G R A D E & I N D U S T R Y- L E A D I N G T E N A N C Y• Starbucks Corporation currently holds an investment grade “A” rating by Stan-

dard & Poor’s, among the best in the retail industry

S I G N A L I Z E D CO R N E R LO C AT I O N W / D R I V E - T H R U• The Property features a modern drive-thru format, catering to traffic moving

through the area

H I G H B A R R I E R T O E N T R Y R E TA I L LO C AT I O N P R O X I M AT E T O I - 1 0 F R E E W A Y• Situated in direct proximity to Interstates 10 and 5 (235,000 and 237,000 daily

vehicles, respectively), the Property’s strategic position allows access to/from these major highways via Marengo St (30,333 CPD)

P R O P E R T Y S U M M A R Y

A D D R E S S 1106 Cornwell Street,Los Angeles, CA 90033

B U I L D I N G S I Z E 3,010 SF

PA R C E L A P N 5202-007-026

E S T I M AT E D R E N T CO M M E N C E M E N T November 2017

PA R C E L S I Z E 0.40 AC / 17,401 SF

O W N E R S H I P I N T E R E S T Fee-Simple

PA R K I N G 16 Spaces

D R I V E - T H R U W I N D O W Yes

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235,000 CPD

MARENGO ST: 30,333 CPD

BRAVO MEDICALMAGNET SCHOOL

P R O P E R T Y & L E A S E S U M M A R Y

A D D R E S S 1106 Cornwell St,Los Angeles, CA 90033

P U R C H A S E P R I C E $6,375,000

C A P R AT E 3.69%

A N N U A L R E N T/ P S F $235,000 / $78.07

B U I L D I N G S I Z E 3,010 SF

PA R C E L S I Z E 0.40 AC / 17,401 SF

O W N E R S H I P I N T E R E S T Fee-Simple

PA R K I N G 16 Surface Spaces

T E N A N T/G U A R A N T O R Starbucks Corporation

L E A S E T Y P E Absolute NNN

L A N D LO R D O B L I G AT I O N S None

R E M A I N I N G L E A S E T E R M * 10 years

L E A S E E X P I R AT I O N * 10/31/2027

R E N T E S C A L AT I O N S

6% in Year 6; 6% at First Option;12% at every option thereafter

R E N E W A L O P T I O N S 4 x 5 years

T E R M I N AT I O N O P T I O N No

R O F R No

D R I V E T H R U Yes

Y E A R B U I LT/R E N O V AT E D 1997 / 2017

*Assumes rent commencement of 11/1/2017

R E N T S C H E D U L ES TA R T D AT E

E N D D AT E

M O N T H LY R E N T

A N N U A L R E N T

R E N TP S F I N C R E A S E

11/1/2017 10/31/2022 $19,583 $235,000 $78.07 -

11/1/2022 10/31/2027 $20,758 $249,100 $82.76 6%

R E N E W A L O P T I O N S

11/1/2027 10/31/2032 $21,933 $263,200 $87.44 6%

11/1/2032 10/31/2037 $24,565 $294,784 $97.93 12%

11/1/2037 10/31/2042 $37,513 $330,158 $109.69 12%

11/1/2042 10/31/2047 $30,815 $369,777 $122.85 12%

EAST LOS ANGELESOCCUPATIONAL CENTER

4

STARBUCKS OVERVIEWAs the preeminent coffee company and coffeehouse chain in the world, Starbucks (NASDAQ: SBUX) operates over 23,000 convenient locations in more than 65 countries, and serves nearly five billion cups of coffee annually. Starbucks is the fourth largest coffee producer in the world and benefits from its strong customer loyalty and recognizable worldwide brand.

CO F F E E I N D U S T R Y O V E R V I E W• The coffee production and coffee/snack shop industries have grown 3.8% and 3.0% since 2010, respectively• The two industries combined total $51.3 billion in revenue in 2016• The coffee production industry has performed well in recent years, exhibiting growth due to several increases in coffee

commodity prices that were passed along to end customers• The coffee industry in the next five years is expected to grow with an increased emphasis from consumers for premi-

um-coffee products

CO M PA N Y O V E R V I E WCompany Name Starbucks CorporationTicker Symbol NASDAQ: SBUXHeadquarters Seattle, WAEmployees (2016) 238,000Revenue $16.84 billionAssets (2016) $14.33 billionMarket Cap (July 2017) $84.72 billion

S&P Rating A / StableNumber of Locations (2017) 23,000+Business Summary Coffee shopCompany Website www.starbucks.com

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AREA OVERVIEW

POPULATION/DEMOGRAPHICS

The Greater Downtown Los Angeles submarket is among the densest in the United States, with a population of nearly 420,000 residents. The incredible concentrated area contains the Los Angeles market’s most dense office market, including over 58.63 million square feet of office space located in the downtown district between I-10, US-110, and the I-5 Freeway.

The Greater Downtown Los Angeles continues to show signs of growth and healthy real estate fundamentals, currently un-dergoing a residential boom. With nearly 13,000 units currently under construction, the overall development surge is gearing towards high-end units to accommodate a growing demand in the market.

1106 Cornwell Street, Los Angeles, CA 90033

1 M I L E

3 M I L E

5 M I L E

POPULATION AVG HH INCOME NUMBER OF HOMES DAYTIME POPULATION

5 0 , 2 5 9 $ 4 3 , 0 9 5 1 3 , 5 9 8 6 2 , 9 2 0

3 2 7 , 9 7 9 $ 4 9 , 2 2 7 1 0 4 , 1 4 7 4 6 8 , 7 4 4

9 4 7 , 1 3 0 $ 5 7 , 1 6 9 3 2 5 , 5 9 6 1 , 1 6 1 , 9 5 6

LAC + USC Medical Center

6

PROPERTY LOCATION HIGHLIGHTSI M P R E S S I V E CO N C E N T R AT I O N I N I M M E D I AT E A R E A• With over 50,000 people residing within just one mile and over 327,000 within three miles of the Asset, the surrounding retail market is poised to

benefit greatly from this concentrated customer base.

L A C + U S C M E D I C A L C E N T E R A DJ A C E N T T O A S S E T• With a 600-bed public hospital, 700 full-time physicians, 900 medical interns, and 2,600 nurses, the LAC + USC Medical Center serves as a major cat-

alyst in the local real estate market spanning multiple sectors. The hospital is a major contributor to the 60,000+ daily population in the immediate vicinity.

S E A M L E S S R E G I O N A L A CC E S S• The Asset is situated in direct proximity to Interstates 10 and 5, boasting 235,000 and 237,000 daily vehicles, respectively. The Property’s strategic

position allows easy accessibility to and from these major highways via Marengo St (30,333 CPD).

LAC+USCMEDICAL CENTER

KECK HOSPITALOF USC

HAZARD RECREATIONCENTER

HENRY ALVAREZMEMORIAL PARK

BRAVO MEDICAL MAGNET SCHOOL

EAST LOS ANGELES OCCUPATIONAL CENTER

7

MARENGO ST —

30,333 CPD

235,000 CPD

SOTO STREETN

8

AREA MAP

SANTA MONICA

BEVERLY HILLS

GLENDALE

DOWNTOWN LOS ANGELES

LOS ANGELESINTERNATIONAL AIRPORT

INGLEWOOD

DOWNEY

9

LOS ANGELES MARKET OVERVIEWCovering approximately 470 square miles, Los Angeles County is the largest county in the United States, with a population exceeding 10 million. The City of Los Angeles totals just under four million residents, earning an average household income of $81,000. The city and its collective sprawling neigh-borhoods serve as the largest economic producers within the overall Greater Los Angeles economy, including Los Angeles, Orange, San Bernardino, Riverside, and Ventura Counties. The Greater Los Angeles five-county area would rank as the 10th-largest economy in the world on the basis of gross domestic product. The County features a highly-educated workforce situated in a concentrated area, combining to create a massive source of spending power. • Across the Los Angeles market, there are many positive indicators reaffirming the overall confidence in real estate investment. Of the 430 million

square feet in retail inventory, the Los Angeles market boast a mere 3.9 percent vacancy rate and an average NNN rental rate hovering at around the $30 per square foot mark.

• The Los Angeles economy is driven by entertainment, aerospace, technology, and industrial trade. In addition, Los Angeles has a sizable tourism industry, hosting over 45.5 million visitors in 2015.

LO S A N G E L E S E M P LO Y M E N T B R E A K D O W N

Construction3%

Manufacturing8%

Trade, Transportation, and Utilities

19%

Information5%

Financial Activities5%

Professional and Business Services

14%

Education and Health Services

18%

Leisure and Hospitality

11%

Other Services4%

Government13%

R E TA I L M A R K E T S N A P S H O T( A S O F Q 1 2 0 1 7 )

Greater Downtown(Submarket)

Los Angeles(Market)

T O TA L I N V E N T O R Y ( S F ) 24,565,195 433,273,755

T O TA L V A C A N C Y 5.1% 4.2%

1 2 M O . N E T A B S O R P T I O N ( S F )

142,284 1,462,374

GEOFF TRANCHINAExecutive Vice PresidentT +1 310 694 3180geoff.tranchina@am.jll.comLic. 1435512

JASON GRIBINVice PresidentT +1 310 694 3192jason.gribin@am.jll.com Lic. 1819611

JULY 1, 2017 DISCLAIMER: MATERIALS CONTAINED IN THIS OFFERING MEMORANDUM ARE CONFIDENTIAL, FUR-NISHED SOLELY FOR THE PURPOSE OF CONSIDERING THE PURCHASE OF 1106 CORNWELL ST (THE “PROPERTY”) LOCATED IN LOS ANGELES, CALIFORNIA; DESCRIBED HEREIN AND ARE NOT TO BE USED FOR ANY OTHER PURPOSE OR TO BE MADE AVAILABLE TO ANY OTHER PERSON WITHOUT THE EXPRESS WRITTEN CONSENT OF JLL. THE MA-TERIAL IS BASED, IN PART, UPON INFORMATION SUPPLIED BY SELLER AND, IN PART, UPON INFORMATION OBTAINED BY JLL FROM SOURCES THEY DEEM TO BE RELIABLE. SUMMARIES CONTAINED HEREIN OF ANY LEGAL DOCUMENTS ARE NOT INTENDED TO BE COMPREHENSIVE STATEMENT OF THE TERMS OF SUCH DOCUMENTS, BUT RATHER ARE OUTLINES OF SOME OF THE PRINCIPAL PROVISIONS CONTAINED THEREIN. NO WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED, IS MADE BY SELLER, JLL OR ANY OF THEIR RELATED ENTITIES AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN. PROSPECTIVE INVESTORS SHOULD MAKE THEIR OWN INVESTIGATIONS, PROJECTIONS AND CONCLUSIONS. INTERESTED BUYERS SHOULD BE AWARE THAT THE SELLER

IS SELLING THE PROPERTY IN “AS-IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. IT IS EXPECTED THAT PROSPECTIVE INVESTORS WILL CONDUCT THEIR OWN INDEPEN-DENT DUE DILIGENCE CONCERNING THE PROPERTY, INCLUDING SUCH ENGINEERING AND ENVIRONMENTAL IN-SPECTIONS AS THEY DEEM NECESSARY TO DETERMINE THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR ABSENCE OF ANY POTENTIALLY HAZARDOUS MATERIALS USED IN THE CONSTRUCTION OR MAINTENANCE OF THE PROPERTY. NO REPRESENTATIONS, EXPRESSED OR IMPLIED, ARE MADE AS TO THE FOREGOING MATTERS BY SELLER, JLL OR ANY OF THEIR OFFICERS, EMPLOYEES, AFFILIATES AND/OR AGENT. INFORMATION CONTAINED IN THIS OFFERING MEMORANDUM IS FURTHER GOVERNED BY THE CONFIDENTIALITY AGREEMENT AND SHALL NOT BE FORWARDED. © 2017 JONES LANG LASALLE LLC

MATTHEW BERRESSenior Vice PresidentT +1 424 901 8202matthew.berres@am.jll.com Lic. 1977909

ADAM FRIEDLANDERVice PresidentT +1 424 901 8201adam.friedlander@am.jll.com Lic. 1806555

RETAIL CAPITAL MARKETS NET LEASE PROPERTY GROUP