RITE AID. Middletown, Delaware

RITE AID Middletown, Delaware 4 5 5 W E S T M A I N S T R E E T M I D D L E T O W N, D E L A W A R E E X C L U S I V E L Y L I S T E D B Y :

RITE AID MIDDLETOWN, DELAWARE INVESTMENT OVERVIEW Marcus & Millichap is pleased to present the Rite Aid Leasehold in Middletown, Delaware, 25 miles south of Wilmington. THERE ARE MORE THAN EIGHT YEARS REMAINING ON A TRIPLE-NET (NNN) LEASE WITH ZERO LANDLORD RESPONSIBILITIES. THE LEASE IS CORPORATELY GUARANTEED BY RITE AID CORPORATION. The subject asset is located along West Main Street, a highly trafficked corridor that sees more than 17,000 vehicles per day (VPD). Rite Aid also features a drive-thru and a RediClinic which drives additional foot traffic. This area also features more than 810,000 square feet of retail, anchored by Walmart, The Home Depot, and Lowe s Home Improvement. There is also a new Amazon Fulfillment Center less than 1.3 miles south. Middletown is seeing an influx in capital as well, there is more than $150 million in development permits in 19709 zip code. The population rose 10 percent from 2010 to 2018, and a staggering 100 percent from 2000 to 2010. Additional Tenants in the immediate vicinity include: Taco Bell, KFC, McDonald s, Advance Auto Parts, Bob Evans, AutoZone, Arby s, PNC Bank, Wawa, Waffle House, ALDI, Chipotle, and many more. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332163

RITE AID MIDDLETOWN, DELAWARE

INVESTMENT HIGHLIGHTS RITE AID LEASEHOLD IN MIDDLETOWN, DE 25 MILES SOUTH OF WILMINGTON More Than Eight Years Remaining on Triple-Net (NNN) Lease with Zero Landlord Responsibilities (Ground Lease Coterminous) 8, 5-Year Options to Extend Equipped with a Drive Thru and RediClinic The Leasehold Interest is Fully Depreciable Situated on a Signalized Hard Corner More Than 17,000 Vehicles Per Day (VPD) Strong Population Growth 10 Percent Growth from 2010 to 2018 Dense Trade Area More Than 810,000 Square Feet of Retail Walmart, The Home Depot, Lowe s Home Improvement New Amazon Fulfillment Center 1.3 Miles South More Than $150 Million in Development Permits in 19709 Additional Tenants in the Immediate Vicinity Include: Taco Bell, KFC, McDonald s, Advance Auto Parts, Bob Evans, AutoZone, Arby s, PNC Bank, Wawa, Waffle House, ALDI, Chipotle, and Many More. RITE AID MIDDLETOWN, DELAWARE

RITE AID MIDDLETOWN, DELAWARE FINANCIAL OVERVIEW 455 WEST MAIN STREET MIDDLETOWN, DELAWARE 19709 PRICE $2,828,100 CAP RATE 9.50% NOI $268,670 PRICE PER SQUARE FOOT $193.41 RENT PER SQUARE FOOT $18.37 YEAR BUILT 2006 APPROXIMATE LOT SIZE 2.32 Acres GROSS LEASEABLE AREA 14,622 TYPE OF OWNERSHIP Leasehold Interest LEASE GUARANTOR Rite Aid Corporation LEASE TYPE Triple-Net (NNN) ROOF AND STRUCTURE Tenant Responsible ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT - - - - - OPTIONS 1/1/2027 12/31/2031 $295,536.00 $24,628.00 1/1/2032 12/31/2036 $295,536.00 $24,628.00 1/1/2037 12/31/2041 $325,090.00 $27,090.83 10% 1/1/2042 12/31/2046 $325,090.00 $27,090.83 1/1/2047 12/31/2051 FMV FMV/12 1/1/2052 12/31/2056 FMV FMV/12 1/1/2057 12/31/2061 FMV FMV/12 1/1/2062 12/31/2066 FMV FMV/12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332163

W MAIN ST 17,190 VPD MIDDLETOWN WARWICK RD 16,400 VPD

RITE AID MIDDLETOWN, DELAWARE LEASE SUMMARY LEASE COMMENCEMENT DATE 1/1/2007 LEASE EXPIRATION DATE 12/31/2026 LEASE TERM 20 Years TERM REMAINING 8+ Years INCREASES In Options OPTIONS TO RENEW 8, 5-Year This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332163

RITE AID MIDDLETOWN, DELAWARE TENANT OVERVIEW Rite Aid began in 1962, opening its first store in Scranton, Pennsylvania; it was called Thrift D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. In late 2015, Walgreens announced it would acquire Rite Aid for $9.4 billion pending approval. However, on June 29th, 2017, over fear of antitrust regulations, Walgreens Boots Alliance announced it would buy roughly half of Rite Aid s stores for $5.18 billion. On September 19th, 2017 the Federal Trade Commission approved a fourth deal agreement to purchase Rite Aid with 1, 932 stores for$4.38 billion total. Rite Aid Corporation is a retail drugstore chain in the United States and a Fortune 500 company. It is headquarter in East Pennsboro Township, Cumberland County, Pennsylvania, near Camp Hill. The company s segments include retail pharmacy and pharmacy services. The company operates under the Rite Aid Name. It operates approximately 2,691 stores in over 30 states across the country and in the district of Columbia. Rite Aid is the largest drugstore chain on the East coast and the third largest in the United States, employing roughly 890,000 associates. The company is publicly traded on the New York Stock Exchange under the ticker symbol RAD. TENANT PROFILE TENANT TRADE NAME Rite Aid OWNERSHIP Public TENANT Rite Aid Corporation LEASE GUARANTOR Rite Aid Corporation NUMBER OF LOCATIONS 2,600+ Locations HEADQUARTERED Camp Hill, Pennslyvania WEB SITE www.riteaid.com This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332163

RITE AID MIDDLETOWN, DELAWARE ABOUT MIDDLETOWN Middletown, Delaware, in New Castle county, is 22 miles SW of Wilmington, Delaware (center to center) and 45 miles SW of Philadelphia, Pennsylvania. The town is adjacent to the Wilmington - Newark metropolitan area. Middletown is a few miles southwest of New Castle, close to the Maryland State border. Recent annexations of land have stimulated Middletown s growth. It is known as the fastest growing area in Delaware. Many affluent housing developments surround the town s center. Additionally, Middletown s commerce has grown. National retail and food chain stores have opened locations in the area, with significant growth along the U.S. 301 corridor. Because of the rapid growth, the city has established its own police force. Middletown was originally a tavern shop on Old Cart Road. This road stretched across the peninsula between Bohemia Landing (eastern branch of Bohemia River in Maryland) and the Appoquinimink Creek in Odessa. Hence, the town was named Middletown. The town of Middletown was incorporated in the year 1861. It is also called the Diamond Town of the Diamond State because the first town council decided the town should stretch beyond one-half mile in each direction at the corner of the crossroads. There are many higher education institutes close to Middletown including Wilmington College, Delaware State University, University of Delaware, and Delaware Technical and Community College-Stanton-Wilmington. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332163

1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 2010 Population 8,085 21,010 32,743 2010 Households 2,940 7,211 10,844 2018 Population 8,769 22,983 36,134 2018 Households 3,246 7,980 12,069 2023 Population 9,013 23,654 37,241 2023 Households 3,346 8,231 12,458 2018 Average HH Income 2018 Median HH Income 2018 Per Capita Income $75,043 $102,711 $107,573 $66,053 $86,451 $91,566 $27,778 $35,663 $35,930 RITE AID MIDDLETOWN, DELAWARE

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.

RITE AID Middletown, Delaware 9 8 5 B E L M O N T S T R E E T B R O C K T O N, M A S S A C H U S E T T S 0 2 3 0 1 BROKER OF RECORD: TIMOTHY SPECK MARCUS & MILLICHAP DALLAS, TEXAS LICENSE: 432723

EXCLUSIVELY LISTED BY: - AND - 9 8 5 B E L M O N T S T R E E T B R O C K T O N, M A S S A C H U S E T T S 0 2 3 0 1 BROKER OF RECORD: TIMOTHY SPECK MARCUS & MILLICHAP DALLAS, TEXAS LICENSE: 432723