Passive, Tenant-Borne Costs

• The leasehold owner is responsible for all property taxes, insurance, repairs, and maintenance, must restore the property after a casualty with no rent abatement, and indemnifies the Landlord. This structure gives an investor a return well above the 20-year Treasury bond, which currently yields +- 5.4% (October 2026).

Contractual Ground Rent Through 2045

• Three ground leases with ±18.9 years of remaining term deliver $2,788,800 of annual minimum rent, payable monthly. The tenant may never pay less than the full scheduled minimum rent.

Built-In 20% Step-Ups Every Five Years

• Minimum rent resets to 120% of the prior period in 2030, 2035, and 2040, reaching $4,819,046 per year in the final period — a 73% increase over today’s rent.

Value Optionality at Expiration of Term

• At expiration, all four buildings and site improvements become the Landlord’s property. This allows the new owner either to maintain the existing improvements or to maximize the site’s development potential.

Established San Gabriel Valley Campus

• A master-planned office campus along the SR-60 with access to the SR-57, I-605, and I-10, walkable dining and retail, and on-site management by Arnel Commercial.

Percentage Rent Right

• The Landlord retains a contractual right to 14% of Gross Income above minimum rent, audited annually with penalty interest on understatements. A 2021 CBRE audit confirms tenant sales have not exceeded the minimum-rent breakpoint on any parcel since 2009 — minimum rent alone has captured more than the percentage formula would yield every year since.