Rite Aid Saw Mill Run Blvd - PITTSBURGH, PENNSLYVANIA offering memorandum ACTUAL PROPERTY

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1 Rite Aid offering memorandum ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 1

2 Investment Overview Marcus and Millichap is pleased to present this 10,908-square foot Rite Aid Pharmacy in Pittsburgh, Pennsylvania; which was ranked the 11th Most Livable City in the world by Metropolis Magazine in Rite Aid has two years remaining on an original 20-Year Triple-Net (NNN) Lease. There are four, five-year renewal options with 1.5 percent rent increases in each option. The lease is backed by a corporate guaranty from the Eckerd Corporation, which is a wholly owned subsidiary of the Rite Aid Corporation. In June 2007, the Rite Aid Corporation acquired the Eckerd Corporation, and converted all Eckerd locations to Rite Aid by September Rite Aid Corporation came in at number 91 on the June 2017 Fortune 500 List, and registered more than $32-billion in revenue in This highly visible asset sits on the signalized intersection of Saw Mill Run Boulevard and Glenbury Street, which sees more than 23,500 vehicles per day. Saw Mill Run Boulevard provides direct access to downtown Pittsburgh. This Rite Aid also benefits from strong demographics: There are more than 300,000 people with an average household income greater than $69,000 within five miles. Neighboring major tenants include a Ford Dealership, Advance Auto Parts, Auto Zone, Dunkin Donuts, Burger King, Dollar General, PNC Bank, Dollar Tree, McDonald s, and more. Rite Aid in Pittsburgh, Pennsylvania Ranked 11th Most Livable City in the World by Metropolis Magazine in 2015 More Than Two Years Remaining on Original 20-Year Triple-Net (NNN) Lease Zero Landlord Responsibilities Lease is Backed by Corporate Guaranty from the Eckerd Corporation Wholly-Owned Subsidiary of Rite Aid Corporation Four, Five-Year Options Renewal Options With Increases Highly Visible Location Asset is Situated at the Signalized Intersection of Saw Mill Run Boulevard and Glenbury Street More Than 23,500 Vehicles Per Day Strong Demographics More Than 300,000 People With an Average Household Income Greater Than $69,000 Within Five Miles Neighboring Major Tenants Include a Ford Dealership, Advance Auto Parts, Auto Zone, Dunkin Donuts, Burger King, Dollar General, PNC Bank, Dollar Tree, McDonald s, and More ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 2

3 Financial Overview Offering Summary PRICE $4,563,107 CAP RATE 7.50% NOI $342,233 PRICE PER SQUARE FOOT $ RENT PER SQUARE FOOT $31.37 YEAR BUILT 1999 APPROXIMATE LOT SIZE 1.48 Acres GROSS LEASEABLE AREA 10,908 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Eckerd Corporation LEASE TYPE Triple-Net (NNN) ROOF AND STRUCTURE Tenant Responsible Lease Summary LEASE COMMENCEMENT DATE 7/31/1999 LEASE EXPIRATION DATE 7/30/2019 LEASE TERM 20 Years TERM REMAINING 2 Years INCREASES 1.5% in Options OPTIONS TO RENEW Four, Five-Year Options OPTIONS TO TERMINATE None OPTIONS TO PURCHASE None FIRST RIGHT OF REFUSAL None FILE PHOTO ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 3

4 Tenant Overview - Rite Aid ACTUAL PROPERTY Rite Aid is one of the nation s leading drugstore operating 4,536 stores in 31 states and in the District of Columbia, as of March Rite Aid sells prescription drugs and a wide assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, and photo processing. Rite Aid posted 2016 fiscal year revenues of approximately $32.8-billion. It is a Fortune 500 company and is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid stores service prescription drug customers and offer an assortment of other general merchandise, which it calls front-end products. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and other every day and convenience products, as well as photo processing. It offers approximately 3,300 products under the Rite Aid private brand. Many locations also feature one-hour photo shops and include a GNC store-within-rite Aid-store. In October 2015, Walgreens Boots Alliance announced an agreement to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of about $17.20 billion, including acquired net debt. After failure to obtain Federal Trade Commission approval, Walgreens announced in June 2017 to formally end the merger agreement, and will instead pay $5-Billion to purchase 2,186 Rite Aids. After the new transaction closes, the company will convert most of those Rite Aids to the Walgreens brand. TENANT PROFILE TENANT TRADE NAME Rite Aid OWNERSHIP Public TENANT Thrift Drug, Incorporated LEASE GUARANTOR Eckerd Corporation NUMBER OF LOCATIONS 4,536 (March 2017) HEADQUARTERED Camp Hill, Pennsylvania WEB SITE SALES VOLUME $32.8-Billion (2016) NET WORTH $614-Million (2016) STOCK SYMBOL RAD BOARD New York Stock Exchange (NYSE) CREDIT RATING B RATING AGENCY Standard & Poor (S&P) Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 4

5 Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 5

6 Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 16, , , Population 15, , , Population 15, , , Population 15, , ,787 Daytime Employment 2,500 32,479 14,743 1-Mile 3-Mile 5-Mile Households 2000 Households 7,444 62, , Households 7,108 60, , Households 7,046 60, , Households 7,048 60, ,199 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $58,146 $65,251 $69, Median HH Income $47,698 $50,992 $52, Per Capita Income $26,492 $28,271 $30,244 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 6

7 Market Overview - Pittsburgh, Pennslyvania Pittsburgh is a city in the Commonwealth of Pennsylvania in the United States, and is the county seat of Allegheny County. As of 2017, a total population of 305,704 lives within the city limits, making it the 63rd-largest city in the country. The metropolitan population is 2,353,045, making Pittsburgh MSA the largest in both the Ohio Valley and Appalachia and the second-largest Metropolitan Statistical Area in Pennsylvania (behind Philadelphia). Located at the confluence of the Allegheny, Monongahela, and Ohio Rivers, Pittsburgh is known as both the Steel City for its more than 300 steel-related businesses, and as the City of Bridges for its 446 bridges. The city features 30 skyscrapers, two inclines, a pre-revolutionary fortification and the Point State Park at the confluence of the rivers. The city developed as a vital link of the Atlantic coast and Midwest, as the mineralrich Allegheny Mountains made the area coveted by the French and British empires, Virginians, Whiskey Rebels, and Civil War raiders. Aside from steel, Pittsburgh has led in manufacturing of aluminum, glass, shipbuilding, petroleum, foods, transportation, computing, autos, and electronics. For part of the 20th century, Pittsburgh was behind only New York and Chicago in corporate headquarters employment; it had the most United States stockholders per capita. This heritage left the area with renowned museums, medical centers parks, research centers, libraries, a diverse cultural district and the most bars per capita in the United States. Today, Google, Apple, Bosch, Facebook, Uber, Nokia, Autodesk, and IBM are among 1,600 technology firms generating $20.7 billion in annual Pittsburgh payrolls. The area has served as the long-time federal agency headquarters for cyber defense, software engineering, robotics, energy research and the nuclear navy. Pittsburgh is home to 68 colleges and universities, including research and development leaders Carnegie Mellon University and the University of Pittsburgh. The nation s fifth-largest bank, eight Fortune 500 companies, and six of the top 300 United States law firms make their global headquarters in the Pittsburgh area. Additionally, RAND, BNY Mellon, Nova, FedEx, Bayer and NIOSH have regional bases that helped Pittsburgh become the sixth-best area for United States job growth. In 2015, Pittsburgh was listed among the eleven most livable cities in the world ; The Economist s Global Livability Ranking placed Pittsburgh as the first- or second-most livable city in the United States in 2005, 2009, 2011, 2012 and The region is a hub for Leadership in Energy and Environmental Design, sustainable energy, and energy extraction. Photo: VISITPITTSBURGH.COM Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. 7

8 Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

9 Rite Aid Broker Of Record Brenton Baskin Title: Regional Manager 2005 Market Street, Suite 1510 Philadelphia, PA Tel: (215) Fax: (215) License: RM423071