STOCKTON, CA

100% GOVERNMENT LEASED OFFICE BUILDING FOR SALE IN STOCKTON’S OPPORTUNITY ZONE

RAILROAD SQUARE

620N AURORA ST

2131 CAPITOL AVENUE, STE 100 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2021 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

SCOTT KINGSTONVICE PRESIDENT - LIC. 01485640916.573.3309SCOT TKINGSTON@TURTONCOM.COM

0 2

DAVID KHEDRYDIRECTOR - LIC. 02063469916.573.3303DAVIDKHEDRY@TURTONCOM.COM

620 N Aurora Street

540 N Aurora Street

MAHALA BURNS BROKER - LIC. 01082668

MARK HEFNER PRINCIPAL BROKER & SHAREHOLDER -LIC. 00823945

RAILROAD SQUARE

1010 E Oak Street

916.804.0262MHEFNER@MGO-REALT Y.COM

Section One: The Opportunity

0 3

3STORIES

THE OPPORTUNITY

100% GOVERNMENT LEASED DOWNTOWN STOCKTON INVESTMENT IN ANOPPORTUNITY ZONE

±112,382SF

$8,500,000 7.5%PURCHASE PRICE CAP RATE

3PARCELS

providing the next owner with tremendous rent

and yield upside through lease renegotiations.

Assuming a 6.00% cap rate disposition in 2031

based on a net operating income of $784,557,

the pro forma value of the property could exceed

$13 million providing the strategic investor with

a highly reliable income while garnering an at-

tractive 16.57% cash on cash return over the 10

year hold.

Priced at just $76 per square foot, it is diffi-

cult to describe just how rare of an opportunity

to purchase an asset of this size, location and

stability with such a strong tenancy with a tre-

mendous upside.

The Building has been completely renovated and

is currently fully occupied by the County of San

Joaquin, including their CalWorks! Division, WIC

Program and Mary Magdalene Community Ser-

vices.

Just a few minutes from the Crosstown Freeway,

Railroad Square is easily accessible from I-5 and

Hwy 99. The Property also features 88 on-site

parking spaces.

The Property features a 2021 in-place cap

rate of 7.47% based on net operating income

of $635,689.76 inclusive of pro forma property

taxes. The average in-place rent on the build-

ing is $0.67 per SF per month, modified gross,

Railroad Square, located at 620 N. Aurora

Street, is situated in a Federal Opportunity Zone

in Downtown Stockton. The Property is 3-story

(plus a lower level) low rise office building.

Constructed as a warehouse in the early 1900’s

and occupied by Sears Roebuck until 1927, Rail-

road Square was fully renovated in 1995 for the

AA-bond rated County of San Joaquin as office

and program space. The Building consists of

three above-ground floors of 33,123 SF each,

plus a basement. There is a large gated parking

lot attached to the building. Two additional gat-

ed parking lots are included with the building for

overflow parking or future development.

- ORIGINAL OAK TIMBERS- HIGH CEILINGS W/ EXPOSED BRICK

- NEW ROOF IN 2018

- TWO HIGH-SPEED ELEVATORS- LARGE FREIGHT ELEVATOR

RAILROAD SQUARE

Address: 620 N. Aurora, Stockton, CABuilding Size: ± 112,382 SFPercentage Occupied: 100%APN: 151-080-460Parcel Size: ± 2.07 acresParking Ratio: 2.03/1,000Parking Stalls: 88 stalls Zoning: IL (Industrial Limited)Year Built: Early 1900sYear Renovated: 1995 and 2018Stories: Three (plus a lower level)Elevators: YesFlood Zone: Zone X (FEMA Flood Map 06077C0460F)Electricity: Pacific Gas & ElectricWater: CalWaterSewer/Storm Drain: City of StocktonGas: Pacific Gas & Electric

Address: 540 N. Aurora Street, Stockton, CADescription: Gated and paved parking lotAPN: 151-080-430Parcel Size: ± 1.48 acresParking Stalls: 115 stallsZoning: IL (Industrial Limited)Flood Zone: Zone X (FEMA Flood Map 06077C0460F)Electricity: Pacific Gas & ElectricWater: CalWaterSewer/Storm Drain: City of Stockton

Gas: Pacific Gas & Electric

Address: 1010 E. Oak Street, Stockton, CADescription: Gated and paved parking lotAPN: 151-080-300Parcel Size: ± 1.03 acresParking Stalls: 128 potential stalls Zoning: IG (Industrial General)Flood Zone: Zone X (FEMA Flood Map 06077C0460F)Electricity: Pacific Gas & ElectricWater: CalWaterSewer/Storm Drain: City of Stockton

Gas: Pacific Gas & Electric

PROPERTY FEATURESSection One: The Property

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Section One: The Opportunity

620 N Aurora Street

540 N Aurora Street

1010 E Oak Street

0 6

RAILROAD SQUARE

Section One: The Opportunity RAILROAD SQUARE

Section Two: The Location

BUILDING LOCATION

0 9

1MIN TO

INTERSTATE 4

12MINS TO

SHERWOOD HALL

13MINS TO STOCKTON

METROPOLITAN AIRPORT

10MINS TO UNIVERSITY

OF THE PACIFIC

14MINS TO SAN

JOAQUIN DELTA COLLEGE

2MINS TO

INTERSTATE 5

15MINS TO

LINCOLN CENTER

9MINS TO STOCKTON GOLF

AND COUNTRY CLUB

3MINS TO

STOCKTON ARENA

5 MINS TO

HIGHWAY 99

THE EPICENTER OF STOCKTON, CA!

Marina

City Hall

Quacker Lake

County Administration

St. Joseph’s Medical

Weber Point Events

Superior Court

4Mexican Food BirrieriaDon Rafa’s Taco Shop

Long John Silver’sSmart & Final

La Victoria DelicatessenNeil’s BBQ

Ban VitConstitution Park

Genova BakeryTaco Bell

El Pollo LocoFood 4 LessStarbucks

Panda ExpressRabesa Mexican Products

Long John Silver’s

620 N Aurora Street

University Plaza

Stockton Arena

Courthouse PlazaKabob & Gyro House

Alfafa’s PizzaRay’s MarketYasoo Yani

Misaki SushiEmpresso Coffee

SubwayTrail Coffee

RAILROAD SQUARE

NEARBY DEVELOPMENTS

Address: 500 E Main Street

This project, originally the Avon Theater which

opened in 1882, is one of the first market-rate

apartment redevelopments in Downtown Stockton.

This project will feature 29 lofts for rent.

10 blocks from 620 N Aurora Street 8 blocks from 620 N Aurora Street 10 blocks from 620 N Aurora Street 9 blocks from 620 N Aurora Street

10 blocks from 620 N Aurora Street

8-10 blocks from 620 N Aurora Street

12 blocks from 620 N Aurora Street 1 block from 620 N Aurora Street

Cal Main Loft Apartments

Section Two: The Location

1 1

Developer Bear Paw Equity has converted the two

upper floors of this historic building into 12 market-

rate Live/Work units, as a part of the exciting new

wave of residential spaces coming to Downtown! The

Tretheway Lofts were completed in February 2020!

University Park is a campus focused on healthcare,

education and office space. The campus features

beautiful amenities throughout the park like setting

and offers easy and convenient access to Highway

99 and Interstate 5. (universityparkstockton.com)

Tretheway Live/Work Lofts University Park

64 affordable housing units coming to MIner Avenue

in Downtown Stockton.

Grand View Village

The Housing Authority of the County of San Joaquin

and DFA Development, LLC have developed 242

N. Sutter into the Medici Artist Lofts. This project

holds a mix of 34 affordable and market-rate units,

contributing to the influx of downtown residential

spaces. A portion of the building’s units are reserved

for artists, only.

Medici Artist Lofts

The Open Window Project (OWP) is a major, mixed-

use development by Ten Space. Its goal is to create

a vibrant, walkable and livable urban core within

nearly 12 acres in the heart of Downtown. Woven into

the existing urban fabric, it will include a mixture

of new construction and historic rehabilitation. Upon

full build out, it is estimated that OWP will consist of

over 1,000 residential units (lofts, townhomes, live/

work spaces) and 400,000 square feet of commercial

and retail spaces (offices, restaurants, breweries,

art galleries).

The Open Window Project

The Ruhl Building is a beautiful three-story,

23,000 square foot historic building in the heart of

Downtown Stockton. Built in 1903, it still retains

many of its original details.

The ground floor has four nicely renovated

commercial units, which are fully leased at $6,600/

mo.

The two upper floors are planned for loft conversion.

Permits for ten 2-BR lofts and two Studios have been

approved by the City and are ready to pick up.

The Ruhl Building

CalWeber 40, a residential development at the

southeast corner of California Street and Weber

Avenue provides 40 affordable units — 28

apartments with two bedrooms and one bathroom,

and 12 larger apartments with three bedrooms

and two baths. Developed by Cal Weber Associates

LP; DFA Development LLC; Riverside Charitable

Corporation, Inc.; and PNC Real Estate.

CalWeber 40

MARRS

The Property also benefits from proximity to several nearby development projects which will serve tenants of 620 N Aurora Street for years to come.

RAILROAD SQUARE

Founded in 1849 by Capt. Charles Weber, Stock-

ton began as a tent settlement and supply center

for the southern mines during the California Gold

Rush. Between Stockton’s incorporation in 1850,

and its emergence as a popular destination for

entertainment and recreation in 1900, citizens

altered the natural waterways running through the

city to alleviate devastating frequent floods. They

also coordinated interstate water and rail with lo-

cal transportation systems to facilitate the city’s

development.

Downtown Stockton is filled with signature histor-

ic architecture that will take you back to the times

when Stockton was known as “the brick city.”

Many of the oldest civic and commercial buildings

are still in use and feature the original ornate fa-

cades and classic interiors.

Stockton is the County seat for San Joaquin Coun-

ty. The City of Stockton is one of California’s fast-

est growing communities. Stockton is currently

the 13th largest city in California with a dynam-

ic, multi-ethnic and multi-cultural population of

more than 310,000. It is situated along the San

Joaquin Delta waterway which connects to the

San Francisco Bay and the Sacramento and San

Joaquin Rivers. Stockton is located 60 miles east

of the San Francisco Bay Area, 83 miles east of

San Francisco, and 45 miles south of Sacramento,

the capital of California. Stockton has an airport

offering service to Phoenix, Los Angeles, and Las

Vegas (on Allegiant Airlines). Visitors may also fly

into Sacramento, Oakland or San Francisco.

In the mid-2000’s Stockton underwent a tre-

mendous economic expansion and continues to

aggressively revitalize its downtown. Projects in

the downtown area along the waterfront include

an indoor arena, baseball stadium and waterfront

hotel. A 16-screen downtown City Centre Cinemas

was completed in December 2003. The Bob Hope

(Fox) California Theatre, listed on the National

List of Historic Landmarks recently completed a

total renovation and hosts live performances reg-

ularly. The arena hosts the Stockton Kings (NBA

G-League) basketball team, the Stockton Heat

(AHL) Hockey team, as well as year-round family

and cultural events and concerts. Adjacent to the

Stockton Arena is the Stockton Ballpark, home of

the Stockton Ports Single A Baseball Team (Oak-

land A’s affiliate).

Stockton offers an excellent quality of life for its

residents. The City has a number of beautiful

residential communities along waterways, with

single-family homes costing about one-third the

price of homes in the Bay Area. With over 100,000

STOCKTON

1 3

Section Three: Stockton

trees, Stockton has been recognized by Sunset

Magazine as the “Best Tree City” in the western

United States. In 1999, 2004, 2015, 2017, and

2018, Stockton was designated an All-America

City by the National Civic League.

Stockton also has outstanding recreational op-

portunities. Stockton is within close proximity

to world famous scenic attractions including the

California Coast, San Francisco, Lake Tahoe and

Yosemite National Park. The community offers

many local recreational opportunities such as pro-

fessional sports teams, an olympic size ice rink,

and the Delta, which provides thousands of miles

of waterways for water skiing, sailing and other

water activities. There are also many opportuni-

ties to enjoy music, theater, dance, literary events,

and other cultural and entertainment activities

throughout the year. The city also boasts the 95

year old Stockton Symphony, a nearly 70 year old

Stockton Civic Theatre, and the 90 year old Haggin

Museum.

The city is home to several well-known higher

educational institutions including the University

of the Pacific, California State University Stanis-

laus-Stockton, San Joaquin Delta Community Col-

lege, Humphreys University and School of Law, as

well as a variety of private and vocational schools.

THERE’S A REASON EVERYONE IS COMING HERE.

RAILROAD SQUARE

1 5

#1 San Joaquin County Human Services

#2 City of Stockton

#3 Stockton Police Department

#4 San Joaquin County Superior Court

#5 Stockton Fire Department

#6 San Joaquin Media Group

#7 San Joaquin Regional Transit District

#8 San Joaquin District Attorney

#9 El Concilio, Council for Spanish Speaking

#10 Bank of Stockton

#11 California State University, Stanislaus

STOCKTON’S NOTABLE EMPLOYERS

STOCKTON HOUSEHOLD INCOME WITHIN A 5 MILE RADIUS:

Over $150,000 - 9%$125,000 - $150,000 - 4%

$100,000 - $125,000- 7%$75,000 - $100,000 - 10%

$50,000 - $75,000 - 20%Under $50,000 - 49%

LARGEST EMPLOYMENT INDUSTRIES WITHIN 1 MILE RADIUS OF THE PROPERTY:

ANNUAL CONSUMER SPENDING WITHIN A 1 MILE RADIUS OF THE PROPERTY:

Entertainment

Eateries/alc.

Transport

Trade Transportation& Utilities

Education & HealthServices

Professional &Business Services

Other Services

Public Administration

Leisure &Hospitality

Health & ed.

Household

15 30 45 60*Numbers in millions0

*Based on Costar 2021

NUMBER OF EMPLOYEESWITHIN VARYING RADIUS OF THE PROPERTY:

1 MILE 2 3

27,077

47,159

62,065

STOCKTON OFFICE VACANCY:

2015 2017 2019 20215%

7%

9%

11%

13%

15%

WALKSCORE:

95BIKE

SCORE:

66TRANSITSCORE:

48

STOCKTON DATA BITESDowntown Stockton is a district in the City of Stockton and its historic civic center. Stockton is the 13th largest city

in California, an inland port, and home to regional rail, water, and street transportation (downtownstockton.org/invest/

demographics).

The market with the highest median price increase was the Stockton-Lodi, California, area at $460,000, a 51% in-

crease from January-February 2017 to the same period in 2021 (https://www.google.com/amp/s/amp.usatoday.com/

amp/7439070002).

Section Three: Stockton

0.94% ANNUAL POPULATION GROWTH

Sources: downtownstockton.org

RAILROAD SQUARE

ECONOMICS

Section Four: Economics

1 7

10 YEAR CASH FLOW:

*These numbers are estimates and projections

GROSS SCHEDULED RENT 2021 2022 2023 2024 2025 2026

BYRON LANG (PARKING LOT) $9,600.00 $9,792.00 $9,987.84 $10,187.60 $10,391.35 $10,599.18

CALWORKS! - COUNTY OF SAN JOAQUIN $639,386.76 $639,386.76 $655,371.48 $671,755.77 $688,549.66 $705,763.40

NUTRITIONAL CARE SALES, INC. $30,987.60 $30,987.60 $32,818.80 $32,818.80 $33,639.27 $34,480.25

WIC PROGRAM - COUNTY OF SAN JOAQUIN $68,805.00 $68,805.00 $68,805.00 $68,805.00 $70,525.13 $72,288.25

MARY MAGDALENE COMMUNITY SERVICES $54,000.00 $54,000.00 $55,350.00 $56,733.75 $58,152.09 $59,605.90

SUBTOTAL GROSS SCHEDULED RENT $802,779.36 $802,971.36 $822,333.12 $840,300.91 $861,257.50 $882,736.98

OPERATING EXPENSE REIMBURSEMENT $10,588.62 $10,853.34 $11,124.67 $11,402.79 $11,687.86 $11,980.05

TOTAL REVENUE $813,367.98 $813,824.70 $833,457.79 $851,703.70 $872,945.35 $894,717.03

OPERATING EXPENSES $177,678.22 $182,120.18 $186,673.18 $191,340.01 $196,123.51 $201,026.60 NET OPERATING INCOME $635,689.76 $631,704.52 $646,784.61 $660,363.69 $676,821.84 $693,690.43

2027 2028 2029 2030 2031 NOTES $10,811.16 $11,027.38 $11,247.93 $11,472.89 $11,702.35 2% per annum increases $723,407.49 $741,492.67 $760,029.99 $779,030.74 $798,506.51 2.5% per annum increase after lease expiration in 2023. $35,342.26 $36,225.81 $37,131.46 $38,059.75 $39,011.24 2.5% per annum increase after lease expiration in 2024. $74,095.46 $75,947.85 $77,846.54 $79,792.71 $81,787.52 2.5% per annum increase after lease expiration in 2024. $61,096.04 $62,623.44 $64,189.03 $65,793.76 $67,438.60 2.5% per annum increase after lease expiration in 2022. $904,752.41 $927,317.16 $950,444.95 $974,149.84 $998,446.22 $12,279.55 $12,586.54 $12,901.21 $13,223.74 $13,554.33 2.5% per annum increase $917,031.96 $939,903.70 $963,346.16 $987,373.57 $1,012,000.55 $206,052.26 $211,203.57 $216,483.66 $221,895.75 $227,443.14 2.5% per annum increases $710,979.70 $728,700.14 $746,862.50 $765,477.82 $784,557.41

NET OPERATING INCOME:

2021 20252022 2026 20292023 2027 20302024 2028 2031

$620,000

$650,000

$680,000

$710,000

$740,000

$770,000

RAILROAD SQUARE

Section Four: Economics

1 9

2021 PROFORMA:

2021 REVENUEGROSS SCHEDULED RENT SUITE/UNIT TENANT SIZE LEASE EXPIRATION1010 E OAK ST PARKING LOT Parking Lot Byron Lang - MTM FLOORS 1-3 Floors 1-3 CalWorks! - County of San Joaquin 83,843 7/14/2023Suite 2 Nutritional Care Sales, Inc. 3,038 9/30/2024Suite 2 WIC Program - County of San Joaquin 7,645 9/30/2024 ANNEX 200 Mary Magdalene Community Services 5,000 10/31/2022SUBTOTAL 99,526

MONTHLY BASE RENT PER SF MONTHLY BASE RENT ANNUAL BASE RENT NOTES - $800.00 $9,600.00 Lease of adjacent parking lot. $0.64 $53,282.23 $639,386.76 $0.85 $2,582.30 $30,987.60 $0.75 $5,733.75 $68,805.00 $0.90 $4,500.00 $54,000.00 $0.67 $66,898.28 $802,779.36

OPERATING EXPENSE REIMBURSEMENT ITEM MONTHLY MONTHLY PER SF ANNUAL ANNUAL PER SF NOTE Maintenance $235.88 $0.002 $2,830.50 $0.03 *Grossed up 2020 actuals 2% for 2021 HVAC $537.54 $0.005 $6,450.48 $0.06 *Grossed up 2020 actuals 2% for 2021 Supplies $108.97 $0.001 $1,307.64 $0.01 *Grossed up 2020 actuals 2% for 2021 SUBTOTAL $882.39 $0.009 $10,588.62 $0.11

TOTAL REVENUE $813,367.98

2021 EXPENSES ITEM MONTHLY MONTHLY PER SF ANNUAL ANNUAL PER SF NOTE Maintenance $1,844.93 $0.019 $22,139.14 $0.22 *Grossed up 2020 actuals 2% for 2021 Repairs $93.54 $0.001 $1,122.52 $0.01 *Grossed up 2020 actuals 2% for 2021 HVAC $1,328.04 $0.013 $15,936.46 $0.16 *Grossed up 2020 actuals 2% for 2021 Elevator Inspection $864.07 $0.009 $10,368.87 $0.10 *Grossed up 2020 actuals 2% for 2021 & RepairInsurance $1,960.50 $0.020 $23,526.05 $0.24 *Grossed up 2020 actuals 2% for 2021 Property Taxes $7,083.33 $0.071 $85,000.00 $0.85 *Pro forma property taxes based on $8,500,000 acquisition (Railroad Square) price @ 1%Alarm $435.29 $0.004 $5,223.42 $0.05 *Grossed up 2020 actuals 2% for 2021 Water & Sewer $236.91 $0.002 $2,842.86 $0.03 *Grossed up 2020 actuals 2% for 2021 Telephone $353.63 $0.004 $4,243.51 $0.04 *Grossed up 2020 actuals 2% for 2021 Trash Disposal $33.58 $0.000 $402.90 $0.00 *Grossed up 2020 actuals 2% for 2021 Supplies $572.71 $0.006 $6,872.49 $0.07 *Grossed up 2020 actuals 2% for 2021 SUBTOTAL $14,806.52 $0.149 $177,678.22 $1.79 ESTIMATED ACTUAL 2021 NET OPERATING INCOME $635,689.76

*These numbers are estimates and projections

RAILROAD SQUARE

2131 CAPITOL AVENUE, STE 100 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2021 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

SCOTT KINGSTONVICE PRESIDENT - LIC. 01485640916.573.3309SCOT TKINGSTON@TURTONCOM.COM

0 2

DAVID KHEDRYDIRECTOR - LIC. 02063469916.573.3303DAVIDKHEDRY@TURTONCOM.COM

MAHALA BURNS BROKER - LIC. 01082668

MARK HEFNER PRINCIPAL BROKER & SHAREHOLDER -LIC. 00823945

RAILROAD SQUARE

916.804.0262MHEFNER@MGO-REALT Y.COM