285,981 SF ON 95.12 ACRES PRICED AT $66,323,530 · Currie, NC 35,496 sq.ft. 25.44 acres Tunnelton, WV 5,000 sq.ft. 1.20 acres The properties are owned by Triple Net Acquisitions and

TNH PORTFOLIO

CALIFORNIA • TEXAS • VIRGINIA • MARYLAND • NORTH CAROLINA • WEST VIRGINIA

285,981 SF ON 95.12 ACRESPRICED AT $66,323,530

5% to 12% CAP RateNOI of $4,209,731

1 | Triple Net Acquisitions | Holdings Portfolio

THE OFFERING

Lee & Associates, as exclusive advisor, is pleased to offer for sale a portfolio of commercial real estate assets located in 6 states across the country:

Carson, CA 29,500 sq.ft. 2.03 acres

Garden Grove, CA 18,600 sq.ft. 1.00 acre

Gardena, CA 27,620 sq.ft. 1.00 acre

Santa Clara, CA 15,744 sq.ft. 0.54 acre

Bryan, TX 26,156 sq.ft. 28.75 acres

Fort Worth, TX 48,300 sq.ft. 7.87 acres

Chester, VA 56,045 sq.ft. 11.85 acres

Winchester, VA 9,600 sq.ft. 6.99 acres

Ijamsville, MD 8,340 sq.ft. 5.47 acres

Upper Marlboro, MD 5,580 sq.ft. 2.98 acres

Currie, NC 35,496 sq.ft. 25.44 acres

Tunnelton, WV 5,000 sq.ft. 1.20 acres

The properties are owned by Triple Net Acquisitions and the portfolio was assembled over a three (3) year period, buying single-tenant NNN properties with long term leases and high yields from tenants that underwent an extensive underwriting criteria to ensure the credit worthiness of each tenant and the “stickiness” to each asset making it hard for the tenant to ever leave the properties.

The portfolio is priced at $66,323,530 which represents an initial capitalization rate of 6.4%. There is currently assumable debt in place of $24,729,313 at 5.6665% .

Each sub-portfolio within the portfolio has a lease for the properties associated with that portfolio. The Triple Net Acquisitions portfolio offers a buyer a diversified single-tenant NNN portfolio spread out in 6 different states, with average long term leases to outlast any market downturns, high CAP rates and IRR with in-place attractive financing.


INVESTMENT HIGHLIGHTS

• Diversified portfolio across 6 states.

• Long term leases to outlast next market downturn.

• In-depth underwriting of each tenant’s credit worthinessby partner that has over a billion dollars in private equitytransaction history.

• Stickiness to buildings - Each tenant has a reason to be in theproperty and would make it extremely difficult for them toleave, making retention and renewal a high probability.

• Annual increases in rent - Majority of leases have at least a 3%annual increase.

• In-place first trust deeds of $24,729,313 at 5.6665%*.

• Time savings - It would take a buyer three (3) years to assemblethis portfolio across the country. Buyer gets the benefit of allbuildings assembled in one portfolio.

*As of December 31, 2017.



• Long-Term Net Leases- Fee Simple- 15 Year Lease (12 Years Remaining) with3% - 3.5% annual increases.

• Over 1,000 specialized regulatory and site-specific permits coupled withcustomer approvals, makes it nearly impossible for the tenant to move toa new facility would take more than 2 years and cost over $16MM in LosAngeles and $7MM in Santa Clara to construct and would likely have to belocated 10 miles away (a non-starter for many customers).

• Tenant (“Valence Coast Plating” a specialized, aerospace services business)has been in this location since 1965.

• Coast has EBITDA margins of 28%; revenue has grown every year for thepast 10-years including the “Great Recession”; and the company has beenprofitable for every year for which records are available (since 1995). Coasthas locations in multiple states and over $20 million of EBITDA.

• Millions of dollars of specialized improvements make the location extremelyattractive to competing aerospace companies at current lease rates.Replacement costs of equipment and approvals in excess of $25MM.In the remote possibility of a tenant default, given Coast Plating’s criticalimportance to the supply chains of Boeing, Airbus, Northrop, Lockheed,Bombardier, Cessna and others, that the building became available, multipleparties would be interested.

• Specialized investments have been largely made by the buildings’ owner.

• Located in South Bay and Santa Clara submarket, one of the best industrialsubmarkets in Southern and Northern California.

• Private Equity Fund Owned: The lease is guaranteed by the company as TriveCapital, a private equity firm that has been in business for over 20 years andhas investments in numerous companies and over $250M cash. Since 1998,the private equity firm has successfully sourced, executed and managedmore than forty transactions across a range of industries, representing over$5 billion in aggregate revenue.

VALENCE PORTFOLIO



• Rush Enterprises is a publicly traded company on Nasdaq (RUSHA) with a $1.4 billion market cap and 2016 netincome of $40 million

• Utility Fleet Sales recently sold their business to the BlackStone Group ($40 billion market cap) making thisInstitutional Credit.

• Utility Fleet Sales is one of the fastest growing independent utility vehicle dealers in America.• Utility Fleet Sales is an industry leader in providing the highest quality new and used utility construction vehicles to

customers throughout the United States and to over two dozen foreign countries.• Fort Worth property is located in premier submarket location, surrounded by other industrial and manufacturing

properties.• Fort Worth property is served by the Dallas/Fort Worth International Airport• Bryan property is close proximity to national highways and College Station, Texas, home of Texas A&M University.

RUSH ENTERPRISES & UTILITY FLEET

PORTFOLIO



• CW Wright Construction Company, LLC provides outsourced servicesto electrical utilities for their transmission, distribution, and substationinfrastructure in the mid-Atlantic area. CW Wright has about 725employees operating out of corporate headquarters in Richmond and 6field offices in Virginia, Maryland, and West Virginia. They have been inbusiness for over 60 years.

• On October 18, 2013, CW Wright was acquired by First ReservesCorporation (www.firstreserve.com), which is a 30 year old, $24 BN world-class private equity fund invested solely in energy and energy relatedassets. This real estate sale/leaseback is part of that acquisition.

• CW Wright had revenues in its most recent fiscal year in excess of $140MM, and operating income in excess of $40 MM.

• Each property in the CW Wright Portfolio serves a specific purpose whetheris primarily used as a headquarters, satellite office or storage and repairfacility in a strategic location to their customers.

• The tenant has a 5 year option that automatically is exercised unless theyterminate the option.

• CMBS Leader did extensive market research to see viability of tenant

leasing when their lease rate expires. They felt there was very littleopportunity for them to find similar property in the same location that theyhave to be in for their customer base.

CW WRIGHT PORTFOLIO

TNH PORTFOLIO

CALIFORNIA • TEXAS • VIRGINIA • MARYLAND • NORTH CAROLINA • WEST VIRGINIA

INVESTMENT ADVISOR

BRIAN GARBUTTSenior Vice PresidentBRE# [email protected]

LOCAL MARKET CONTACTS

North Carolina PJ [email protected]

Dallas/Fort Worth Texas MARK GRAYBILL [email protected]

CONFIDENTIALITY AGREEMENT

THIS CONFIDENTIALITY AGREEMENT ("Agreement") is made and entered into as of the date set forth below, by and amongst Triple Net Holdings, LLC ("Owner"), Potential Purchaser as set forth below ("Potential Purchaser"), and Brian Garbutt of LEE & ASSOCIATES-IRVINE, INC.("Brokers").

RECITALS

A. Owner is the owner of that certain real property located at 417 & 433 w. 164th Street, Carson, CA; 7061 Patterson Drive, GardenGrove, CA; 120,124,128,132 & 150 w. 154th Street, Carson, CA; 529 Aldo Avenue, Santa Clara, CA; 2801 N. Earl Rudder Fwy, Bryan, TX; 7200 Jack Newell Blvd S., Fort Worth, TX; 11500 Iron Bridge Road, Chester, VA; 13210 Kingston Avenue, Chester, VA; 285 Independence Drive, Winchester, VA; 9750 & 9758 Doctor Perry Rd, Ijamsville, MD; 8469 Burton Lane, Upper Marlboro, MD; 4235 US Highway 421, Currie, NC; 5249 S. Preston Hwy, Tunnelton, WV; (the "Property").

B. Owner has retained Brian Garbutt of Lee & Associates-Irvine, Inc. as its exclusive advisor in the sale of the Property.

C. In connection with such proposed purchase and sale, Potential Purchaser wants to review certain documents and financial informationrelating to the Property (collectively the "Confidential Information"), and Owner and Broker desire to furnish the Confidential Information for Potential Purchaser's review.

NOW THEREFORE, in consideration of the mutual covenants and agreements described below, and for good and valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows:

1. The Confidential Information which may be furnished to Potential Purchaser by Owner/Broker shall continue to be the property ofOwner/Broker. The Confidential Information shall be used by Potential Purchaser solely for the purpose of evaluating the possible acquisition of the Property and for no other purpose. The Confidential Information may not be copied or duplicated by the Potential Purchaser without Broker's prior written consent and must be returned to Broker immediately upon (i) Broker's request; or (ii) when Potential Purchaser declines to make an offer for the Property or terminates discussions or negotiations with respect to the Property.

2. Potential Purchaser shall not make the Confidential Information available, or disclose any of the contents thereof, to any person, unlesssuch person has been notified to the Broker in writing and Broker has approved the furnishing of the Confidential Information or such disclosure to such person, and such person has entered into an agreement with Broker, the provisions of which agreement shall be substantially the same as the provisions contained in this Confidentiality Agreement; provided however, that the Confidential Information and this Confidentiality Agreement may be disclosed to the Potential Purchaser's partners, employees, legal counsel, and institutional lenders ("Related Parties") who, in the Potential Purchaser's best reasonable judgment, need to know such information for the purpose of evaluating the potential purchase and sale. Such Related Parties shall be informed by the Potential Purchaser of the confidential nature of the Confidential Information and shall be directed in writing by the Potential Purchaser to keep the Confidential Information strictly confidential in accordance with this Confidentiality Agreement. The Potential Purchaser shall be responsible for any violation of this provision by any Related Party.

3. Potential Purchaser agrees that Owner/Broker shall not have any liability for any reason to the Potential Purchaser or Related Partiesresulting from the use of the Confidential Information by any party, whether or not the potential purchase and sale is consummated.

4. Potential Purchaser acknowledges that the Property is being offered for sale subject to withdrawal from the market or rejection of anyoffer by Owner, for any other reason whatsoever, without notice.

5. Lee & Associates-Irvine, Inc., a Member of the Lee & Associates Group of Companies, is authorized to represent Owner for the purposeof effecting a sale of the Property, and all negotiations shall be conducted through Lee & Associates-Irvine, Inc. It is further understood that Lee & Associates-Irvine, Inc. may be negotiating on behalf of Owner with other prospective purchasers.

6. The undersigned Potential Purchaser agrees to indemnify, defend, and hold Owner and Brian Garbutt of Lee & Associates-Irvine, Inc.harmless against any and all claims, damages, liabilities, costs, or expenses arising in any way related to claim(s) by another broker, finder, or other Lee & Associates agent for commissions, fees, or other compensation.

7. For purpose of this Confidentiality Agreement, the terms "purchase" and "sale" of the Property or other similar language in thisConfidentiality Agreement shall be deemed to refer to the purchase and sale of all or a portion of the Property or the purchase and sale of an interest in the Property or the sale of Confidential Information of the Property.

8. This Confidentiality Agreement shall remain in effect for one (1) year following the date set forth below.

9. This Confidentiality Agreement shall be governed by the laws of the State of California.

10. This Confidentiality Agreement contains the entire understanding between the parties with respect to the subject matter hereof, and maynot be altered, varied, revised, or amended, except by an instrument in writing signed by all the parties subsequent to the date set forth below.

IN WITNESS WHEREOF, the undersigned party hereto has caused this Agreement to be executed by their duly authorized representative as of the day and year set forth below.

POTENTIAL PURCHASER/BROKER:

Company: Address:

By: City, State, Zip:

Name: Phone:

Title: Fax:

Date: E-Mail:

Please Return The Executed Copy To: Brian Garbutt, Phone: 949-790-3166 Senior Vice President Fax: 949-727-1200 Lee & Associates-Irvine, Inc. Email: [email protected] 9838 Research Drive Irvine, CA 92618

285,981 SF ON 95.12 ACRES PRICED AT $66,323,530 · Currie, NC 35,496 sq.ft. 25.44 acres Tunnelton, WV 5,000 sq.ft. 1.20 acres The properties are owned by Triple Net Acquisitions and

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