Rite Aid SEDRO-WOOLLEY, WASHINGTON

NNN DRIVE-THRU PHARMACY WITH NATIONAL CREDIT TENANT

Overview Rite Aid 851 MOORE ST, SEDRO-WOOLLEY, WA 98284

PAGE 5 Investment Summary LEASEABLE SF ±17,272 SF LAND AREA ±86,060 SF LEASE TYPE NNN LEASE EXPIRATION 1/9/2028 YEAR BUILT 2007 PARKING 70 Spaces; 4.1/1,000 SF $7.975,000 PRICE 6.90% CAP THE OFFERING provides an opportunity to acquire a Rite Aid pharmacy, a single tenant drive-thru pharmacy on a hard corner in Sedro-Woolley, WA. The asset is leased on a NNN expense basis and has ten years remaining on the initial lease term. Overview

Investment Highlights The Highlights TEN YEARS REMAINING ON INITIAL TERM. TRIPLE-NET STRUCTURE PROVIDES MINIMAL LANDLORD RESPONSIBILITIES. CORPORATE-BACKED LEASE BY CREDIT-RATED TENANT. HARD CORNER LOCATION BOASTING 32,000 VPD.

PAGE 7 RITE AID IS A NATIONAL CREDIT TENANT THAT HAS BEEN ISSUED A B CREDIT RATING BY STANDARD & POOR S About the Company 2017 FORTUNE 500 LIST 91 st 2,500+ TOTAL LOCATIONS B2 MOODY S CREDIT RATING 50,000+ EMPLOYEES Investment Highlights

Site CASCADE MIDDLE SCHOOL 11,000 VPD 21,000 VPD MOORE ST TOWNSHIP ST NORTHERN AVE 5,470 VPD

PAGE 9 THE PROPERTY SITS ON THE SIGNALIZED CORNER OF MOORE AND TOWNSHIP STREETS, EXPOSED TO HIGH TRAFFIC COUNTS AS THE GATEWAY TO THE NORTH CASCADES FROM INTERSTATE 5. Site

Surrounding Retail Business Summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 272 439 591 Employees 2,641 4,506 5,681 Population 9,065 16,224 24,915 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Bank of America Cascade Pasta & Pizza Co. Cascade Plaza Dairy Queen Domino s Hal s Drive In Hottie Tottie Deli Iron Skillet Les Schwab Tire Center Little Caesars Pizza Lorenzo s Lucky Teriyaki May Ya Restaurant McDonald s Mestizo Mexican Restaurant Morgan Creek Outfitters Morgan Express NAPA Auto Parts Old Timers Inn Oliver Hammer Clothes Shop O Reilly Autoparts Papa Murphy s State Street Deli Smiley s Bar & Grill Subway Three Rivers Inn Timber Coffee True Value Hardware Walgreens Wells Fargo The Woolley Market

PAGE 11 FAND S GRADE RD 21,000 VPD MOORE ST 20 CASCADE HWY 11,000 VPD TOWNSHIP ST 9 Surrounding Retail

Site Plan MOORE ST 21,000 VPD 17,272 LEASEABLE SF 11,000 VPD TOWNSHIP ST 1.98 ACRES 70 SPACES; 4.1/1,000 SF

PAGE 13 DRIVE THRU SITE PLAN NOT TO SCALE Site Plan

Financial Summary PRICE $7,975,000 CAPITALIZATION RATE 6.90% PRICE PER FOOT $462 CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 1/1/2018-12/31/2018 $31.84 $550,000 Total Effective Gross Income (EGI) $31.84 $550,000 OPERATING EXPENSES Per SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN - NET OPERATING INCOME $550,000 THE ASSET IS LEASED ON A NNN EXPENSE BASIS AND HAS TEN YEARS REMAINING ON THE INITIAL LEASE TERM 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. Buyer must verify the information and bears all risk for any inaccuracies.

PAGE 15 RITE AID - SEDRO WOOLLEY Lease Term: Size (SF): 1/10/2008-1/9/2028 17,272 RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF CAP RATE 1/10/08 $45,833 $550,000 $31.84 6.90% OPTIONS 1 1/10/2028 $48,125 5% $577,500 $33.44 7.24% 2 1/10/2033 $50,531 5% $606,375 $35.11 7.60% 3 1/10/2038 $53,058 5% $636,694 $36.86 7.98% 4 1/10/2043 $55,711 5% $668,528 $38.71 8.38% TOTALS $45,833 $550,000 $31.84 6.90% COMMENTS: LANDLORD RESPONSIBILITIES ARE EXCLUSIVE TO ROOF, BUILDING STRUCTURE, FOUNDATION AND SLAB, WHEREAS TENANT IS RESPONSIBLE FOR PROPERTY TAXES, INSURANCE, UTILITIES, AND REMAINING OPERATING EXPENSES ASSOCIATED WITH THE PROPERTY. TENANT HAS EXCLUSIVE USE WITHIN THREE MILES OF THE PROPERTY. LEASE HAS CORPORATE GUARANTEE. Financial Summary

Lease Abstract Premise & Term TENANT Rite Aid BUILDING SF 17,272 SF LEASE TYPE NNN TERM 20 Years RENT COMMENCEMENT 1/10/2008 EXPIRATION 1/9/2028 Rent BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1/10/2008-1/9/2028 Years 1-20 $45,833 $550,000 OPTION PERIOD RANGE MONTHLY RENT ANNUAL RENT Years 21-25 $48,125 $577,500 Years 26-30 $50,531 $606,375 Years 31-35 $53,058 $636,694 Years 36-40 $55,711 $668,528

Expenses PROPERTY TAXES PAGE 17 Tenant is responsible for payment of all Property Taxes for the Premises to be paid directly to the taxing authority. INSURANCE Tenant shall maintain Fire, Liability, glass, and workers compensation insurance policies throughout the entirety of the lease term. UTILITIES Tenant pays directly for all utilities servicing the Premises. MAINTENANCE Tenant is responsible for all maintenance and repairs to Premises, exclusive of roof and building structure, which are Landlord s responsibility. LANDLORD S OBLIGATIONS Zero responsibilities. EXCLUSIVE USE Rite Aid has exclusive use, meaning Landlord cannot directly or indirectly during lease and lease extensions permit the operation of general drug store and pharmacy purposes within three miles of the Premises. Lease Provisions ASSIGNMENT/SUBLETTING Tenant may assign or sublease its interest in the Lease to a qualified party with a tangible net worth of not less than $50 million, and is reasonably approved by Landlord. GUARANTY Lease has a corporate guarantee from Rite Aid Co. Lease Abstract

Featured Photography

PAGE 19 Featured Photography

Location Sedro-Woolley, Washington SEDRO-WOOLLEY S economy was originally supported by logging and coalmining, yet is currently driven by healthcare, education, manufacturing, and most recently, technology. Sedro-Woolley is located within Skagit County, just 25 miles inland from the Puget Sound and 65 miles north of Seattle in the Pacific Northwest.

Janicki Industries PAGE 21 JANICKI INDUSTRIES IS FUNDED BY THE BILL AND MELINDA GATES FOUNDATION and works on researching and developing equipment that turns human waste into drinking water and electrical energy. Janicki Bioenergy, under the umbrella of Janicki Industries, is working to locate a Janicki Manufacturing and Biotechnical Research Facility at the former Northern State Hospital site in Sedro-Woolley, which would establish the County as a world leader in public health technological research and development, as well as bring upwards of a 1,000 family-wage jobs to the County. EMPLOYER # OF EMPLOYEES Janicki Industries 706 Top 5 Employers Sedro-Woolley School District 507 PeaceHealth United General Hospital 400 Karmart 105 Snelson Company 86 Skagit County Employment THE FIVE LARGEST EMPLOYERS IN SKAGIT COUNTY are Skagit Regional Health (employment: 2,000), Mount Vernon School District (employment: 815), Shell Puget Sound Refinery (employment: 726), Island Hospital (employment: 718), and Janicki Industries (employment: 706). Location

Demographics Distance to Seattle, Washington Bellingham, Washington 72.4 MILES 1 HR 28 MINS 26.1 MILES 32 MINS

PAGE 23 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 11,598 18,917 30,186 2017 12,032 19,729 31,475 2022 12,435 20,449 32,632 2017 HH INCOME 5 MINS 10 MINS 15 MINS KEY 5 MINS 10 MINS 15 MINS Average $68,834 $71,412 $69,895 Median $55,119 $69,121 $64,665 121,846 SKAGIT COUNTY POPULATION (ESTIMATED) Demographics

We d love to hear from you. SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 DAVID GELLNER dgellner@capitalpacific.com PH: 206.693.3349 NATE FLIFLET nfliflet@capitalpacific.com PH: 206.457.8613 KEVIN ADATTO kadatto@capitalpacific.com PH: 503.675.7726 MICHAEL HORWITZ mhorwitz@capitalpacific.com PH: 503.675.8381 SEAN MACK smack@capitalpacific.com PH: 503.675.8378 SCOTT FRANK sfrank@capitalpacific.com PH: 503.675.8383 PETER DUNN pdunn@capitalpacific.com PH: 503.607.0197 The information in this Executive Summary 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. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us