» H I G H Q U A L I T Y I N D U S T R I A L B U I L D I N G T O TA L I N G ± 3 6 , 2 6 4 S F

» 1 0 0 % L E A S E D T O W . F. TAY L O R C O M PA N Y, I N C . T H R O U G H J A N U A R Y 2 0 2 8 AT B E L O W M A R K E T R E N T

» S T R AT E G I C I N L A N D E M P I R E W E S T L O C AT I O N W I T H I M M E D I AT E A C C E S S T O I - 1 0 , I - 1 5 A N D S R - 6 0 F R E E W AY S

A CBRE National Par tners Industrial Investment Oppor tunity

FONTANA, CALIFORNIA

11545 PACIFIC AVENUE

OFFERING SUMMARY CBRE, Inc. is exclusively offering for sale a high-quality industrial building located at 11545 Pacific Avenue in Fontana, California. The building totals 36,264 square feet and is situated on ±1.84 acres. The single-tenant facility is 100% leased to W.F. Taylor Company, Inc. d.b.a. Taylor for slightly over 8.5 years at 20% below market rents. Taylor is a committed tenant who has occupied the building for 26 years. The property is offered at a price below replacement cost, estimated to be approximately $200 PSF.

The asset is well-located in the Inland Empire West, one of the most desirable industrial markets in the country with consistently low vacancy rates and strong investor and user demand. The Inland Empire recorded the highest amount of net absorption of any U.S. market in 2018 with 22.0 MSF.

The property has direct access to various freeways including the I-10, I-15, and SR-60 and is less than 10 minutes from Ontario International Airport. Tenants also have strategic access to the Ports of Los Angeles and Long Beach, multiple airports and several major transportation routes serving Southern California and the Western United States.

The property is being offered at a price of $5.5 million ($151 PSF/4.3%).

11545 PACIFIC AVENUE, FONTANA, CA 92337

Building SF 36,264 SF

Office SF / %1st Floor – 2,229 SF Mezzanine – 2,109 SF Total – 4,338 SF / 12.0%

Occupancy 100%

Tenant (Lease Expiration) W.F. Taylor Company, Inc. (1/28)

Land Size ±1.84 AC

Clear Height 24’

Dock-High Doors 4 (9’ x 10’)

Ground Level Doors 3 (12’ x 14’)

PRICING SUMMARY

Asking Price $5,476,000

Price Per Square Foot $151 PSF

Year 1 Cap Rate 4.3%

Market Cap Rate 5.3%

Year 1 NOI ±$232,780

OFFERING HIGHLIGHTS » High-quality industrial building totaling 36,264 with dock-high and ground level loading, a fenced yard and ample parking

» Offered at a price below replacement cost, estimated to be approximately $200 PSF

» 100% leased to committed tenant W.F. Taylor Company, Inc. through January 31, 2028 providing strong long-term cash flow

» 20% below market rent offers upside to future NOI upon tenant rollover

» Immediate access to I-15, I-10 and SR-60 freeways

» Located in the Inland Empire West (IEW), one of the top performing investment markets in the country with a current vacancy rate of 1.8%

» The Inland Empire average asking lease rate is predicted to grow another 3.5% in 2019 (with even higher growth for the tighter IEW submarket)

1 11545 PACIFIC AVENUE

HIGH-QUALITY INDUSTRIAL BUILDING » Excellent 36,264 SF concrete tilt-up building with 24’ clearance and various desirable features including:

o (4) 9’x10’ dock-high doorso (3) 12’x14’ ground level doorso 1,600 Amps of Powero Fire sprinklers (0.50/2,000)o 72 car stalls

» Gated and secured yard

» Two points of ingress/egress along Pacific Avenue

WELL-ESTABLISHED, COMMITTED TENANT » Leased to W.F. Taylor Company, LLC d.b.a. Taylor through January 2028

o Taylor is a leader in advanced flooring adhesives that pioneered sustainable adhesive solutionso The company is a subsidiary of Meridian Adhesives Group which is owned by Arsenal Capital Partners (“Arsenal”)o Arsenal was established in 2000 and has closed over 100 transactions and raised more than $3 billion in institutional equity funds since its inceptiono The fund’s current portfolio includes 13 specialty industrial and healthcare brands

» Taylor is a committed tenant who has occupied the building for 26 years

» Rents are approximately 20% below market providing upside to NOI upon rollover

2 11545 PACIFIC AVENUE

THE PROPERTY IS OFFERED AT A PRICE FAR BELOW REPLACEMENT COST, WHICH IS APPROXIMATELY $200 PSF; BUILDING NEW PRODUCT IN THIS 25,000 -50,000 SF SIZE RANGE

IS DIFFICULT TO MAKE PENCIL DUE TO HIGH LAND AND CONSTRUCTION COSTS.

REPL ACEMENT COST

* finished land site ** hard costs include shell and site work

LAND/HARD COSTS

Land Acquisition Cost $29 PSF of Land* $2,324,362 $64

Offsites $3 PSF of Land* $240,451 7

Total Land/Offsites $2,564,813 $32

Shell Costs $73 PSF** 2,647,272 73

Warehouse Improvements (dock equipment, lights) $3 PSF 95,778 3

Office Improvements $110 on 4,338 SF 12% 477,180 13

Total Hard Costs $3,220,230 $89

SOFT COSTS Includes architectural, structural, civil, landscape, plumbing and mechanical, city permits and fees, financing (construction,perma-nent and carry costs)

25% of Hard Costs 805,058 22

Total Development Costs $6,590,100.30 $182

Developer Profit 10% of Development Costs $659,010 $18

TOTAL REPLACEMENT COST $7,249,110 $200

80,150 LAND SIZE (SF)

1.84ACRES

36,264 NRSF

$200 PSFTOTAL REPLACEMENT COST

3 11545 PACIFIC AVENUE

STRATEGIC FONTANA LOCATION » Strategically located within 2.0 miles of I-15, I-10 and SR-60 freeways which

connect the Inland Empire to the robust Orange and LA County populations

» Within 10 minutes of the Ontario International Airport, a medium-hub, full-service airport ideally situated as an airfreight center for Pacific Rim and European cargo

» 1.8 miles from the I-10 S. Etiwanda/Van Buren on/off ramp, 1.9 miles from the I-15 E. Jurupa Street on/off ramp, 2.0 miles from the S. Etiwanda Avenue off ramp, and 2.4 miles from the SR-60 Country Village Road on/off ramp

» Blue chip surrounding corporate users including Walmart, UPS, GM, Home Depot, 3M, Verizon and Electrolux among others

STRONG INLAND EMPIRE MARKET DYNAMICS » The Inland Empire is regarded as one of the most robust markets in the United

States in terms of population growth, job creation, construction and industrial space absorption

» Demand for new product over the last 12 months has contributed to a 24.8 MSF (5%) increase in the Inland Empire’s industrial base, now totaling 536.7 MSF (+5.2 MSF in Q1 2019)

» The Inland Empire had a strong start to 2019 with 5.9 MSF of net absorption and 9.4 MSF of gross activity; logistics and e-commerce users accounted for 67.5% of gross activity

» There was 22.0 MSF of net absorption in 2018 which set yet another record year, surpassing 19.4 MSF in 2017 and 17.1 MSF in 2016

» With an overall low vacancy rate of 3.6% (1.8% in the Inland Empire West), a lack of available land, high construction costs and limited new development, the market is poised for long-term success

» CBRE Research predicts the Inland Empire average asking lease rate will grow another 3.5% in 2019 (with even higher growth for the tighter IEW submarket)

PACIFIC AVE.

4 11545 PACIFIC AVENUE

HISTORICAL INLAND EMPIRE VACANCY RATES – 25-45K SF & OVERALL

5 11545 PACIFIC AVENUE

DEMAND FOR SMALLER BUILDINGS/UNITS IN THE IEW» The small building/unit market has seen a dramatic rise in pricing over the last 24 to 36 months» There is a limited supply of small industrial product in the Inland Empire West given the high construction cost; as a result, it is difficult for

development to pencil» Demand has outpaced existing supply of buildings and new construction» The 2.7% vacancy rate for IEW buildings in the 25,000-45,000 SF range reflects the strong user demand» Tenant mix evolving toward import/export companies supplying the larger distribution centers and smaller private e-commerce companies» Expansion of demand for e-commerce (Last Mile)» User sale prices are at an all-time high

10.0%

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02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019

IE 25-45K IE OVERALL

3.6%

IEW 25-45K

2.7%

6 11545 PACIFIC AVENUE

IN THE LAST 12 MONTHS, THE IE AND IEW HAVE SEEN 49 AND 18 DEALS IN THE 25-45K SF SIZE RANGE, RESPECTIVELY. MORE THAN A THIRD OF BOTH TOTAL DEAL COUNTS WERE EXECUTED DURING Q1 2019, SHOWING STRONG MOMENTUM HEADING INTO THE REST OF 2019.

2 5 - 4 5 K S F R A N G E

LAST 12 MONTHS # DEALS

IE 49 (42 New Deals, 7 User Sales)

IEW 35 (29 New Deals, 6 User Sales)

2 5 - 4 5 K S F R A N G E

Q1 2019 # DEALS

IE 18 (17 New Deals, 1 User Sales)

IEW 12 (11 New Deals, 1 User Sales)

DESPITE RECORD-HIGH CONSTRUCTION LEVELS IN 2017 AND 2018, LEASE RATES CONTINUED TO RISE DUE TO STRONG DEMAND FOR STRATEGIC LAST-MILE FACILTIES» Since 2012, IEW rents in this size range have grown by 141%

HISTORICAL COMPLETIONS VS. AVG. LEASE RATE (GROSS) – IEW 25-45K SF

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COMPLETIONS (SF) AVG. LEASE RATE (GROSS)

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REGIONAL MAP

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KEY DISTANCESI-10 Freeway ±1.8 milesI-15 Freeway ±1.9 milesSR-60 Freeway ±2.1 milesOntario International Airport ±4.4 milesI-215 Freeway ±11.5 milesLos Angeles International Airport ±60.5 milesPorts of Los Angeles & Long Beach ±62.5 miles

LOS ANGELES INTERNATIONAL AIRPORT

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11545 PACIFIC AVENUE

1.7 MI

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8 11545 PACIFIC AVENUE

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1 Ryder2 States Logistics Services3 Orora 4 XPO5 Nestle6 Hart & Cooley7 Cott Beverages USA8 Southwire Co.9 Knight Transportation

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10 Suez Mobile Water11 PacificCoastEnvelope12 Bimbo Bakery13 Ultimate Logistics14 Walker Bros Machinery Moving15 BWAY Corporation16 Gerald Daniel Worldwide17 All In One Furniture18 GAF

19 VPET USA20 UPS21 Home Depot22 Sears23 Toyo Tires24 Neovia Logistics25 Complete Logistics26 State’s Logistics Services27 3M

9 11545 PACIFIC AVENUE

PACIFIC AVENUE

231’

173’

W.F. Taylor Company, Inc.Exp. 1/2028

36,264 SF

O U T S I D E S T O R A G E

DOCK-HIGH DOOR

GROUND LEVEL DOOR

GATE

GATE

GATE

SITE PLAN

10 11545 PACIFIC AVENUE

AERIAL

11 11545 PACIFIC AVENUE

CAPITAL MARKE T S E XPER T S

Darla LongoCBRE | Vice Chairman/Managing DirectorL ic. 00639911+1 909 418 2105dar la.longo@cbre.com

Rebecca Perlmutter F inkel, CFACBRE | Senior Vice PresidentL ic. 01838624+1 310 922 5237rebecca.per lmut ter@cbre.com

Eric CoxCBRE | Senior As sociateL ic. 02027752+1 213 613 3210er ic.a.cox@cbre.com

Barbara PerrierCBRE | Vice ChairmanLic. 00969169+1 213 613 3033barbara.per r ier@cbre.com

Brett Har tzellCBRE | Execut ive Vice PresidentL ic. 5876 +1 206 292 6100bret t .har t zel l@cbre.com

LOCAL MARKE T E XPER T

David ConsaniCBRE | Execut ive Vice PresidentL ic. 00866234+1 909 418 2100david.consani@cbre.com

DEBT & S TRUC TURED FIN ANCE

Val AchtemeierExecut ive Vice PresidentL ic. 01868169+1 213 613 3109val.achtemeier@cbre.com

NORTHEAST Michael HinesBrian FiumaraBrad RuppelLauren Dawicki

SOUTHEAST Chris RileyFrank FallonTrey BarryJennifer Klingler

SOUTH CENTRAL Randy BairdJonathan BryanRyan ThorntonEliza BachhuberColleen Fazio

NORTH CENTRAL

Mike CaprileRyan BainZach GrahamVictoria Gomez

WEST Darla LongoBarbara PerrierRebecca PerlmutterBrett HartzellEric CoxGina Christen

DEBT & STRUCTURED FINANCE Val AchtemeierScott Lewis Steve RothSteve Kundert

GLOBAL INDUSTRIAL& LOGISTICS

Jack FrakerHeather McClain

WWW.CBRE.COM/NP

FOR MORE INFORMATION,PLEASE VISIT OUR WEBSITE ATwww.cbrenp-11545pacificavenue.com

“Offering integrated real estate capital markets solutions from strategy to execution – delivered by a seamless national partnership.”

© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guaran-tee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.