• Stabilized Multi-Tenant Asset with Diversified Cash Flow

The property is currently 95.1% occupied by 31 signed tenants across approximately 47,196 SF, with no single tenant representing more than 21% of building rentable area. The anchor tenant, PF Solutions, LLC, occupies Suites 100/101/100C/102/112 (9,880 SF) under a contractual lease in-place through October 2028, with the model underwriting a 75% renewal probability that would extend the anchor relationship into the second half of the hold period. The average tenant size across the remaining 30 occupants is approximately 1,170 SF. This granular tenancy structure meaningfully reduces single-tenant concentration risk and produces a stable, diversified income stream that is characteristic of the highest-quality suburban multi-tenant office assets.

• In-Place Cash Flow with a Clear Path to Stabilization

The asset delivers $732,304 of In-Place Net Operating Income at a 6.81% Going-In Capitalization Rate at acquisition. Year 1 NOI is projected to grow to $753,419 (7.01% cap) as the three pre-close and lease-up suites totaling approximately 2,297 SF, or roughly 5% of the building, are absorbed at the underwritten Market Lease Asking rates of $2.35 per SF per month for suites under 1,500 SF and $2.25 per SF per month for suites at or above 1,500 SF.

• Below-Market In-Place Rents with Embedded Mark-to-Market Upside

The building-wide average in-place rent is approximately $2.17 per SF per month (based on $1,226,595 of annualized scheduled base rent across the 47,196 SF building), while small-suite asking rents in the Diamond Bar submarket are trending to $2.35 per SF and above per recent comparable lease transactions. This mark-to-market opportunity is captured in the underwriting as all 31 signed leases roll within the 10-year hold period, with renewals modeled at market rates and 3% annual escalators.

• Near-Term Rollover as a Value-Creation Catalyst

16 leases expire within Year 1 (May 2026 through April 2027), representing approximately 17,441 SF, or 39% of currently leased area. While concentrated near-term rollover is often characterized as risk, the efficient suite sizes and below-market in-place rents at Sunset Plaza make these renewals highly executable at current market lease asking rates. The model underwrites a conservative 75% renewal probability across the roll, and successful execution of the Year 1 renewals accelerates the conversion of in-place income to market over Years 1 through 3 of the hold.

• Investor Returns Profile

Based on the Asking Price of $10,750,000, the model produces an Unlevered IRR of 8.62%, a Levered IRR of 10.71% (at 60% LTV, 6.50% fixed rate, 25-year amortization), a stabilized 5-Year average Levered Cash-on-Cash return of approximately 4.4%, and an All-Cash Equity Multiple of 1.96x (Levered Equity Multiple of 2.53x) over the 10-year hold.