INVESTMENT OPPORTUNITIES OFFERING MEMORANDUM
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Trike Property Management, LLC and should not be made available to any other person or entity without the written consent of Trike Property Management, LLC. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Trike Property Management, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Trike Property Management, LLC has not verified, and will not verify, any of the information contained herein, nor has Trike Property Management, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CONFIDENTIALITY AGREEMENT ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR TRIKE PROPERTY MANAGEMENT, LLC AGENT FOR MORE DETAILS.
SECTION ONE...PRICING & FINANCIAL ANALYSIS SECTION TWO...PROPERTY DESCRIPTION TABLE OF CONTENTS SECTION THREE...DEMOGRAPHIC ANALYSIS
PRICING AND FINANCIAL ANALYSIS
FINANCIAL OVERVIEW LOCATION Delaware Avenue and Route 130 08554 Price $7,363,000 Rentable Square Feet 13,813 Price / SF $533.00 CAP Rate 7.75% Year Built 2005 Lot Size 1.721 Acres (approx) Type of Ownership Fee Simple TENANT SUMMARY Tenant Trade Name Rite Aid Ownership Public Tenant Coporate Store Lease Guarantor Coporate Guarantee Lease Type Absolute Net Roof and Structure Tenant Responsible Lease Term 20 Years Lease Commencement 6/1/2005 Date Rent Commencement 6/1/2005 Date Lease Expiration 5/30/2025 Term Remaining on 12 Years Lease Increases Flat in base term Options Six 5-Year Options ANNUALIZED Rent Increase Annual Rent Monthly Rent 1st Option $577,539.00 $48,128.25 2nd Option $584,445.96 $48,703.83 3rd Option $591,353.04 $49,279.42 4th Option $598,260.00 $49,855.00 5th Option $605,166.96 $50,430.58 6th Option $612,074.04 $51,006.17 Base Rent ($41.31 / SF) $570,632 Net Operating Income $570,632 PRICING AND FINANCIAL ANALYSIS
TENANT OVERVIEW Rite Aid Corporation is one of the nation s leading drug store chains. With the June 4, 2007 acquisition of Brooks Eckerd, the company has annual revenues of more than $27 billion, more than 5,000 stores in 31 states and the District of Columbia, with a strong presence on both the Eastand West coasts, and approximately 116,000 associates. Rite Aid is the largest drug store chain on the East Coast and the third largest drug store chain in the U.S. The company is publicly traded on the New York Stock Exchange under the ticker RAD. Property Name Rite Aid Property Address Delaware Ave and Route 130 08554 Property Type Net Lease Drug Store Rentable Square Feet 13,813 Tenant Trade Name Ownership Sales Volume Lease Guarantor Credit Rating Stock Symbol Board Rite Aid Pubilc $26 Billion Corporate Guarantee Standard & Poors B / Stable RAD NYSE Lease Commencement Date 6/1/2005 Rent Commencement Date 6/1/2005 Lease Expiration Date 5/30/2005 Term Remaining on Lease 12 Years Lease Type Absolute Net Roof and Structure Tenant Responsible Lease Term 20 Years Increases Flat in base term PRICING AND FINANCIAL ANALYSIS Options to Renew Options to Terminate Options to Purchase First Right of Refusal Six 5-Year Options None None None No. of Locations 5,000 + Headquartered Camp Hill, PA Web Site www.riteaid.com
PROPERTY DESCRIPTION
INVESTMENT OVERVIEW Investment Highlights Absolute Net Leased Investment 12 Years remaining on original 20-year term S&P B Rated Corporate Guarantee Ideal 1031 Exchange Opportunity Outstanding Location - Bedroom Community to Philadelphia Strong demographic: 5-Mile Population is 102,000 Property can be sold individually or as part of a 3-store portfolio including Cortland NY and Conneaut Lake, PA. Trike Property Management, LLC is pleased to present a single tenant net leased Rite Aid Drug Store for your acquisition review. The subject property is located at the signalized intersection of Delaware Avenue & Route 130 in Florence, NJ. Florence (Burlington County, NJ) is part of the Philadelphia MSA, is located approximately 30 miles from both Philadelphia, PA and Trenton NJ, and continues to grow significantly as a bedroom community to Philadelphia. Rite Aid Corporation is one of the nation s leading drugstore chains and the largest drugstore chain on the East Coast. With the June 4, 2007 acquisition of Brooks Eckerd, the company has annual revenues of more than $27 billion, more than 5,000 stores in 31 states and the District of Columbia, with a strong presence on both the East and West coasts, and approximately 116,000 associates. The company is publicly traded on the New York Stock Exchange under the ticker RAD. PROPERTY DESCRIPTION
PROPERTY SUMMARY THE OFFERING Property Rite Aid Property Address Delaware Ave and Route 130 08554 SITE DESCRIPTION Year Built 2005 Rentable Square Feet 13,813 Lot Size 1.721 Acres (approx) Type of Ownership Fee Simple PROPERTY DESCRIPTION
AREA MAPS PROPERTY DESCRIPTION Local Map Regional Map
AERIAL PHOTO PROPERTY DESCRIPTION
DEMOGRAPHIC ANALYSIS
DEMOGRAPHIC REPORT 1 Miles: 3 Miles: 5 Miles: Population: 1990 Population 5,356 16,816 96,634 2000 Population 5,759 17,758 99,013 2006 Population 6,168 18,637 101,633 2011 Population 6,498 19,352 103,865 Households 1990 Households 1,983 6,223 33,905 2000 Households 2,255 6,850 36,811 2006 Households 2,405 7,145 37,742 2011 Households 2,533 7,403 38,634 2006 Average Household Size 2.56 2.60 2.67 DEMOGRAPHIC ANALYSIS Employment 2006 Daytime Population 1,256 7,201 33,112 Summary Housing Information 1990 Median Housing Value $99,527 $104,616 $97,947 2000 Median Housing Value $106,211 $113,515 $109,208 2000 Owner Occupied Housing Units 73.4% 70.8% 72.8% 2000 Renter Occupied Housing Units 21.2% 23.3% 23.1% 2000 Vacant 5.36% 5.83% 4.14% 2006 Owner Occupied Housing Units 76.7% 73.7% 74.1% 2006 Renter Occupied Housing Units 18.8% 20.6% 20.9% 2006 Vacant 4.60% 5.70% 5.66% 2011 Owner Occupied Housing Units 79.0% 75.7% 75.1% 2011 Renter Occupied Housing Units 17.0% 18.7% 19.2% 2011 Vacant 4.01% 5.58% 5.66%
DEMOGRAPHIC REPORT 1 Miles: 3 Miles: 5 Miles: 2006 Households by Income $0 - $14,999 10.5% 8.6% 9.4% $15,000 - $24,999 5.6% 7.3% 9.0% $25,000 - $34,999 10.8% 9.3% 10.7% $25,000 - $49,999 10.4% 13.0% 14.9% $35,000 - $74,999 21.3% 22.2% 23.9% $50,000 - $99,999 18.6% 18.0% 15.1% $75,000 - $124,999 11.8% 10.7% 8.7% $100,000 - $149,999 5.3% 5.2% 4.0% $150,000 - $200,000 3.0% 3.6% 2.6% $200,000 - $249,999 0.5% 0.7% 0.5% $250,000 + 2.2% 1.6% 1.2% DEMOGRAPHIC ANALYSIS 2006 Income Median Household Income $64,475 $63,408 $56,013 Per Capita Income $29,209 $26,924 $23,659 Average Household Income $75,797 $70,873 $62,327
SUMMARY REPORT Population In 2006, the population in your selected geography is 101,633. The population has changed by 2.65% since 2000. It is estimated that the population in your area will be 103,865 five years from now, which represents a change of 2.20% from the current year. The current population is 48.37% male and 51.63% female. The median age of the population in your area is 38.9, compare this to the US average which is 36.5. The population density in your area is 1,294.03 people per square mile. Households There are currently 37,742 households in your selected geography. The number of households has changed by 2.53% since 2000. It is estimated that the number of households in your area will be 38,634 five years from now, which represents a change of 2.36% from the current year. The average household size in your area is 2.67 persons. DEMOGRAPHIC ANALYSIS Income In 2006, the median household income for your selected geography is $56,013, compare this to the US average, which is currently $48,271. The median household income for your area has changed by 12.85% since 2000. Is is estimated that the median household income in your area will be $60,570 five yeras from now, which represents a change of 8.14% from the current year. The current year per capita income in your area is $23,659, compare this to the US average, which is $24,529. The current year average household income in your area is $62,327, compare this to the US average, which is $63,629. Race & Ethnicity The current year racial makeup of your selected area is as follows: 83.32% White, 10.73% Black, 0.11% Native American and 2.21% Asian / Pacific Islander. Compare this to the averages, which are: 75.86% White, 12.07% Black, 0.71% Native American and 4.51% Asian / Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.90% of the current year population in your selected area. Compare this to the US average of 14.94%. Housing The median housing value in your area was $109,208 in 2000, compare this to the US average of $115,194 for the same year. In 2000, there was 27,937 owner occupied housing units in your area and there were 8,874 renter occupied housing units in your area. The median rent at the time was $598. Employment In 2006, there are 33,112 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 58.2% of employees are employed in white-collar occupations in this geography, and 41.8% are employed in blue-collar occupations. In 2006, unemployment in this area is 5.55%. In 2000, the median time traveled to work was 21.6 minutes. Demographic data 2003 by Experian / Applied Geographic Solutions.
POPULATION DENSITY DEMOGRAPHIC ANALYSIS Demographic data 2003 by Experian / Applied Geographic Solutions. Number of people living in a given area per square mile.
EMPLOYMENT DENSITY DEMOGRAPHIC ANALYSIS Demographic data 2003 by Experian / Applied Geographic Solutions. The number of people employed in a given area per square mile.
AVERAGE HOUSEHOLD INCOME DEMOGRAPHIC ANALYSIS Demographic data 2003 by Experian / Applied Geographic Solutions. Average income of all people 15 years and older occupying a single housing unit.
TRAFFIC COUNTS DEMOGRAPHIC ANALYSIS Traffic Count data 2006 by GDT. All rights reserved. Two-way, average daily traffic
OFFERING MEMORANDUM Exclusively Listed By: Trike Property Management P.O. Box 11159 Milwaukee, WI 53211 Michael Askotzky I General Manager Tel: 414-332-5500 x101 Cel: 414-235-1113 Fax: 414-332-5511 maskotzky@trikepm.com www.trikepm.com