RITE AID RELOCATION STORE MCFARLAND, CALIFORNIA (BAKERSFIELD MSA)

RITE AID RELOCATION STORE MCFARLAND, CALIFORNIA (BAKERSFIELD MSA) OFFERING MEMORANDUM $4,662,800 5.00% CAP RATE» New 20-Year NNN Lease with Corporate Guarantee» Guaranteed by Rite Aid Corporation» Fixed Rental Increases in Primary Term and Options» No Landlord Obligations» Central Location in Downtown McFarland» Immediate Access to Highway 99-59,000 AADT» Rare 2016 Built-to-Suit Construction» New Prototype Design with Smaller Store Footprint» First Store of Its Kind in California Cushman and Wakefield Inc. LIC. # 00616335 ACTUAL SITE

TABLE OF CONTENTS DISCLAIMER INVESTMENT OVERVIEW AERIALS SITE PLAN TENANT SUMMARY PROPERTY OVERVIEW AREA OVERVIEW LOCATION MAP Cushman & Wakefield ( Broker ) has been retained on an exclusive basis to market the property described herein ( Property ). Broker has been authorized by the Seller of the Property ( Seller ) to prepare and distribute the enclosed information ( Material ) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be allinclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. SCOTT CROWLE Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 MICHAEL T. YURAS, CCIM Executive Managing Director 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 www.yafteam.com

INVESTMENT SUMMARY ADDRESS PRICE $4,662,800 CAP RATE 150 West Kern Avenue, McFarland, California 5.00% return NOI $233,139 TERM 20 years RENT COMMENCEMENT August 8th, 2016 LEASE EXPIRATION August 7th, 2036 RENTAL INCREASES 10% rental increases every 10 years YEAR 1-10 11-20 21-25 (Option 1) 26-30 (Option 2) 31-35 (Option 3) 36-40 (Option 4) 41-45 (Option 5) 46-50 (Option 6) YEAR BUILT July 2016 BUILDING SF PARCEL SIZE LEASE TYPE 10,559 SF 0.89 acres (38,768 SF) Absolute NNN RENT $233,139 $256,453 $282,098 $282,098 $310,308 $310,308 FMV (Deemed 110% of Option 4) FMV (Deemed 110% of Option 4) RETURN 5.00% 5.50% 6.05% 6.05% 6.65% 6.65% TBD TBD RARE CALIFORNIA 2016 BUILT-TO-SUIT PHARMACY» New 20-year NNN lease» 10% rental increases every 10 years, providing a hedge against inflation» Corporate guarantee - NYSE: RAD» No landlord responsibilities, providing an investor with a completely passive investment CENTRAL LOCATION IN DOWNTOWN MCFARLAND» Excellent location at base of pedestrian bridge connecting East and West McFarland» Near several schools, with over 3,300 students enrolled in schools within a half-mile radius» Immediate access to Highway 99-59,000 AADT» Close proximity to major national retailers, including McDonald s, AutoZone, Dollar General, MetroPCS, and others RARE 2016 BUILT-TO-SUIT CONSTRUCTION WITH NEW PROTOTYPE DESIGN» Brand new 10,559 SF prototype store» First smaller footprint store in California» Brand new construction, limiting near-term deferred maintenance or capital costs for tenant ACTUAL SITE

/ Highway 99 (59,000 AADT) Frontage Road McFarland High School (860 Students) West Kern Avenue PREVIOUS LOCATION Kern Avenue Elementary (1,100 Students)

Kern Avenue Elementary (1,100 Students) West Kern Avenue PREVIOUS LOCATION / Highway 99 (59,000 AADT) Frontage Road

DOWNTOWN DELANO (7 Miles) / Highway 99 (59,000 AADT) Frontage Road West Kern Avenue PREVIOUS LOCATION

Browning Road Elementary (647 Students) / Highway 99 (59,000 AADT) Frontage Road PREVIOUS LOCATION West Kern Avenue

SITE PLAN ALLEY 2ND STREET ± 10,559 SF DRIVE- THRU FRONTAGE ROAD MCFARLAND BRIDGE STOP STOP STOP KERN AVENUE STOP

TENANT SUMMARY LEASE ABSTRACT TENANT Rite Aid GUARANTOR Rite Aid Corporation Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other everyday and convenience products. It also offers health coaching, shared decision making tools, and healthcare analytics, including health coaching for medical decisions, chronic conditions, and wellness; population analytic solutions; and consulting services, as well as various photo processing services in its stores. Rite Aid offers its healthcare products to customers covered by third party payers, such as insurance companies, prescription benefit management companies, government agencies, private employers, and other managed care providers. It has a strategic alliance with GNC. Rite Aid is the largest drugstore chain on the East Coast and the third largest in the United States, with nearly 89,000 employees. The company operates approximately 4,600 stores in 31 states across the U.S. and in the District of Columbia. On October 27, 2015, Walgreens announced that it would acquire Rite Aid for $9.4 billion to widen its footprint in the United States and negotiate for lower drug costs. The acquisition proposal is currently pending regulatory and shareholder approval. The deal will result in a merger of two of the United States three largest pharmacy chains and will increase Walgreens footprint by half. Together, Walgreens and Rite Aid own approximately 200 million square feet of retail space, which equates to nearly 12,900 stores. Walgreens CEO has stated that there is potentially over $1 billion in savings to be reaped from the merger through synergies. ADDRESS RENT COMMENCEMENT 150 West Kern, McFarland, California August 8th, 2016 LEASE EXPIRATION August 7th, 2036 RENEWAL OPTIONS RENTAL INCREASES COMMON AREA COSTS REAL ESTATE TAXES INSURANCE Six (6) five (5) year options YEAR 1-10 11-20 21-25 (Option 1) 26-30 (Option 2) 31-35 (Option 3) 36-40 (Option 4) 41-45 (Option 5) 46-50 (Option 6) RENT $233,139 $256,453 $282,098 $282,098 $310,308 $310,308 FMV (Deemed 110% of Option 4) FMV (Deemed 110% of Option 4) Tenant is responsible for all common area costs. Tenant is responsible for all real estate taxes. Tenant is responsible for all insurance. RETURN 5.00% 5.50% 6.05% 6.05% 6.65% 6.65% TBD TBD For the fiscal year ending February 27th, 2016, Rite Aid Corporation reported revenue of $30.74 billion, with net income of $165.5 million, and total stockholder equity of $581.4 million. Rite Aid is rated B by Standard & Poor s. For additional information, see www.riteaid.com. TICKER RAD # OF LOCATIONS 4,600+ REVENUE $30.74B HEADQUARTERS Camp Hill, PA REPAIR & MAINTENANCE UTILITIES MAINTENANCE BY LANDLORD RIGHT OF FIRST REFUSAL Tenant is responsible for all maintenance and repair. Tenant is responsible for all utilities. None None

PROPERTY OVERVIEW LOCATION The property is strategically located at the hard corner of West Kern Avenue and Frontage Road. Access to Highway 99 is conveniently located a few blocks from the site. Highway 99 is the main freeway through the San Joaquin Valley, and connects McFarland to Bakersfield to the south and Delano to the north. A heavily traveled route, Highway 99 experiences a high traffic count of 59,000 vehicles per day near the property. The site is centrally located in downtown McFarland, which is tenanted by a mix of local retailers and national chains. The property benefits from its close proximity to several nationally-recognized retailers, including McDonald s, NAPA Auto Parts, Dollar General, Subway, MetroPCS, Boost Mobile, Cricket Wireless, and AutoZone. Several schools are near the property. McFarland High School and Kern Avenue Elementary are both within a few blocks of the property, while Browning Road Elementary and McFarland Middle School are less than half a mile away. Overall, more than 3,300 students are enrolled in schools within a half mile of the property. ACCESS Access from Kern Avenue and Frontage Road TRAFFIC COUNTS Highway 99: 59,000 AADT ACTUAL SITE - OPENING DAY PARKING 35 parking stalls, including three (3) handicapped stalls YEAR BUILT July 2016 35 2016 PARKING STALLS YEAR BUILT

AREA OVERVIEW McFarland is a city in Kern County, located in the San Joaquin Valley. McFarland is approximately 26 miles north of Bakersfield along Highway 99. Bakersfield is a city in and the county seat of Kern County and is the focal point of the Bakersfield-Delano MSA. Metro Bakersfield is home to more than half a million people, while the Bakersfield MSA, which is encompassed by Kern County, has a population of 882,179. Bakersfield s historic and primary industries have related to Kern County s two main industries, oil and agriculture. Bakersfield serves as the home for both corporate and regional headquarters of companies engaged in these industries. Bakersfield also has a growing manufacturing and distribution sector. Several companies have moved to Bakersfield because of its inexpensive land and access to the rest of America, as well as international ports in both Los Angeles and Oakland. Other companies have opened regional offices because of Bakersfield s and Kern County s business friendly policies, such as having no local utility or inventory taxes. Located at the southern end of California s San Joaquin Valley, Kern County is the nation s leading petroleum producing county and consistently ranks among the top three most-productive agricultural counties in the United States. Because of its unique geographical positioning, Kern County has also become the distribution center for some of the world s largest companies. Edwards Air Force Base and China Lake Naval Air Weapons Station, also located in Kern County, give the region a strong aerospace and military presence. To accommodate this thriving business community, there are major freeway systems, providing access across California and beyond. MAJOR EMPLOYERS IN KERN COUNTY # OF EMPLOYEES EDWARDS AIR FORCE BASE 9,774 COUNTY OF KERN 9,300 CHINA LAKE NAVAL WEAPONS CENTER 7,000 GRIMMWAY 4,130 KERN HIGH SCHOOL DISTRICT 3,604 DIGNITY HEALTH 3,200 BOLTHOUSE FARMS 2,800 SAN JOAQUIN COMMUNITY HOSPITAL 2,100 SUN WORLD 1,600 CHEVRON 1,600» Bakersfield is the 11th fastest growing city in the U.S. with a population of over 100,000, and the fastest growing city in the U.S. with a population of over 250,000. It is estimated by local officials that Bakersfield and its outlying suburbs will reach a population of over one million people by 2020. Additionally, Kern County s population is projected to almost double by 2040.» Highway 58 and Highway 99, Bakersfield s major freeways, have both been considered for conversion to interstates due to high traffic volumes. In 2005, Highway 99 was added to the FHWA list of high priority corridors as a California farm to market route and designated a Future Interstate.» Bakersfield is within a four hour drive of 90% of California s population.» The Kern County High School District is the largest high school district in California, with nineteen campuses and more than 35,000 students.» The Bakersfield MSA ranks #1 for fastest-growing workforce and #4 for most industrial variety, according to WalletHub s 2014 Best U.S. Cities to Find a Job list.

DEMOGRAPHIC PROFILE 2016 SUMMARY 1 Miles 3 Miles 5 Miles Population 13,964 14,752 15,110 Households 2,895 3,083 3,174 Families 2,632 2,800 2,881 Average Household Size 4.46 4.44 4.43 Owner Occupied Housing Units 1,590 1,676 1,716 Renter Occupied Housing Units 1,305 1,407 1,458 Median Age 26.2 26.2 26.2 Average Household Income $42,343 $43,040 $43,594 2021 ESTIMATE 1 Miles 3 Miles 5 Miles Population 15,137 16,007 16,393 Households 3,138 3,344 3,441 Families 2,853 3,038 3,125 Average Household Size 4.49 4.47 4.46 Owner Occupied Housing Units 1,695 1,787 1,829 Renter Occupied Housing Units 1,443 1,557 1,612 Median Age 26.9 26.9 27.0 Average Household Income $43,675 $44,441 $45,065

SCOTT CROWLE Senior Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 MICHAEL T. YURAS, CCIM Executive Managing Director 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Cushman and Wakefield Inc. LIC. # 00616335 www.yafteam.com