Actual Site

OFFERING MEMORANDUM

CVS PHARMACY(Ground Lease)Gaithersburg, MD

Jonathan W HippPresident & CEO703.787.4725 | jhipp@calkain.com

Natalia NunnoAssociate Director703.787.4715 | nnunno@calkain.com

Asset Summary

Net Operating Income (NOI) $450,000

Rent/Month $37,500

Rentable Square Feet 13,013+/- SF

Land Area 1.25+/- Acres

Tenant CVS Pharmacy

Credit Rating S&P: BBB

Stock Symbol NYSE: CVS

Guarantor Corporate

Ownership Type Ground Lease

Lease Type Absolute NNN

Landlord Responsibilities None

Year Built 2008

Lease Term Remaining 11 Years, 10 Months

Rent Commencement Ocober 8, 2005

Lease Expiration January 31, 2031

Increases 10% Every 5 Years in Options

Options Four (4), Five (5) Year

Investment Highlights

New revitalization project approved and underway, estimated completion is 2020

Corporate CVS ground lease with 11 years, 10 months remaining in firm term

Hard corner, signalized intersection

Multiple points of ingress/egress

Washington, DC MSA, located in affluent Montgomery County

Rare 10% increases in options

24-hour store

Dense retail corridor with combined traffic counts of 58,000 VPD

Rent ScheduleTerm Increases Annual Rent Monthly Rent

Current 1/31/2030 - $450,000 $37,500.00

2/1/2030 1/31/2035* 10% $495,000 $41,250.00

2/1/2035 1/31/2040* 10% $544,500 $45,375.00

2/1/2040 1/31/2045* 10% $598,950 $49,912.50

2/1/2045 1/31/2050* 10% $658,845 $54,903.75

Asking Price$7,650,000

Cap Rate 5.90%

19100 Montgomery Village AvenueGaithersburg, MD 20886

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CVS Pharmacy | Financial Summary

About CVS PharmacyCVS Pharmacy is one of the nations largest retail pharmacy chains, with 9,803 stores located in 42 states, the District of Columbia, and Puerto Rico. With more than 40 years in the retail pharmacy industry, CVS Pharmacy generates over 68% of its revenue from the pharmacy business. CVS Pharmacy fills more than one of every seven retail prescriptions in America and one of every five in their own markets. Their ExtraCare program boasts over 70 million cardholders, making it the largest retail loyalty program in the country.

CVS Pharmacy stores dispense more prescriptions than any other drugstore chain. Each day, their pharmacists help drive medication adherence, close gaps in care, and recommend more cost-effective drug therapies, all through face-to-face interactions.

Tenant SnapshotTenant Snapshot

# of Locations

9,803

Stock Symbol

NYSE: CVS

Credit Rating

S&P: BBB

2017 Revenue

$184.8 Bil

Stores Opened in 2017: 175

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Tenant Overview

Site Photos

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Surrounding Retail

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Montgomery Village

Montgomery Village Revitalization Projects

Atlantic Realty Companies

(ARC) purchased the Village

Center in December 2015 and

has been busy planning for the

future of the site.

On April 26, the planning

board approved Atlantic Realty

Companies (ARC) plans to

renovate and add some retail

density and new housing to the

18-plus acre property. This plan

includes 49 townhouses, 34 two-over-two condos and 32 condos/apartments,

but only the 32 condos/apartments are included in the Site Plan, for which ARC

received approval from the Planning Board. The remaining housing units will be

included in a future Site Plan for the property.

The retail redevelopment will be phased in and will include the creation of three

new pad sites on the front of the property and the extension of Centerway Road

through to Watkins Mill Road, which creates a connection between the residential

development and new retail.

Atlantic Realty Companies (ARC) recently received their Certified Site Plan

to proceed to building permit to build new pad sites along Montgomery Village

Avenue, perform faade improvements, extend Centerway access road to the rear

of the shopping center, build apartments above the retail across from the rear of

the McDonalds and build the public green space at the rear of the shopping center.

The county has informed MVF that ARC has applied for a minor amendment to

the preliminary plan and site plan to allow for minor changes to the foot prints

of the pad site buildings to accommodate tenants needs. Bank of America will be

relocating to the old Village Caf location while a new pad site is constructed for

them, and it has been reported that Aldi will be the grocery store anchor for the

site and be located next to Big Lots.

New Retail

It has been reported that Aldi will be the grocery store anchor for the site.

ARC is looking for a high-end coffee shop and other healthy and convenient

establishments that would boost the centers clientele. Suggestions from the

community at the meeting included a 5 Guys Burger and Fries, Starbucks and a

bike shop.

Timeframe (Project Completion Summer 2020)

While ARC is excited to get renovations started, Ross noted the reality of the

process involved to make that happen. He said they are hopeful to be done sooner,

rather than later, but the overall timeframe for the project will be dictated by

ARCs work with tenants, the community, the county and resources available. In

closing the presentation, Ross said, ARC saw an opportunity, similar to Hunters

Woods, to be part of change and help revitalize an aging facilitywe can provide

the support this center needs. The bones of the center are good, but the time is

now to fix the face and move forward for the community.

Learn More >>

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Montgomery Village

Montgomery Village is a 2,435-acre

planned community that was created

in 1965 based on new town principles

and the Countys General Plan, which

identified the Gaithersburg area as a

corridor city. Montgomery Village is

located in the center of Montgomery

County, east of I-270 and north of I-370,

adjacent to the City of Gaithersburg.

Montgomery Village is served by

several roadways, including its Main

Street, Montgomery Village Avenue

and is a well-establish community

with 40,000 residents. The Village is

primarily a residential community with

several locally serving retail centers.

One of its most unique aspects is the

extensive recreational opportunities,

which are available to all Montgomery

Village residents by virtue of automatic

membership in the Montgomery Village

Foundation. Prior to 2015 all applications

for rezoning were explicitly prohibited.THE VISIONDuring the course of the Master Plan, four themes emerged from the community as the most prevalent and compelling issues. These four themes, summarized below, represent the Plans vision. The Montgomery Village community and this plan seek to: Preserve the character of the Village Maintain the public recreation and open spaces Encourage reinvestment Enhance connectiviy

Subject Site

GMC Nail & Spa

SparkleCleaners

Eddies Carry Out

Mont

gom

ery

Villa

ge A

venu

e 37,

000 V

PD

Revitalization Overview

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Revitalization Renderings

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Hollywood

Washington, DC495

97

66

270

395Alexandria, VA

Baltimore, MD

81

Frederick, MD

Reston, VABethesda, MD

95

70

Subject Site

Bethesda 16 miles

Washington, DC 24 miles

Frederick 24 miles

Reston 29 miles

Alexandria 39 miles

Baltimore 45 miles

795

895

695

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Location Overview

Distance To

270Keep all map content (except background) above this margin for website cropping purposes

Montgomery Village Center

Montgomery Village PlazaLake Forest Mall

Mon

tgom

ery

Villa

ge A

ve 3

7,00

0 VP

D

Subject Site

Midcounty Highway 23,000 VPD

N Frederick Ave 35,000 VPD

19100 Montgomery Village Avenue | Gaithersburg, MD

Keep all map content (except background) above this margin for website cropping purposes

58 ACRE MONTGOMERY VILLAGE CENTER

Stedwick Rd 9,000 VPD

Wat

kins M

ill Rd

12,0

00 V

PD

Mon

tgom

ery

Villa

ge A

ve 3

7,00

0 VP

D

GMC Nail & Spa

SparkleCleaners

Montgomery Village Middle School

Stedwick Elementary

School

Centerway Road 9,000 VPD

Eddies Carry Out

Club House Rd 5,000 VPD

Subject Site

19100 Montgomery Village Avenue | Gaithersburg, MD

Location Highlights

Accessible from I-270

37,000 VPD Pass the Site

Big Lots Outparcel

C

lick

for Street V

iew

https://www.google.com/maps/@39.1703366,-77.2042844,3a,75y,255.6h,102.13t/data=!3m7!1e1!3m5!1swamXJzIMKsjRoJI5FV28jg!2e0!6s%2F%2Fgeo0.ggpht.com%2Fcbk%3Fpanoid%3DwamXJzIMKsjRoJI5FV28jg%26output%3Dthumbnail%26cb_client%3Dmaps_sv.tactile.gps%26thumb%3D2%26w%3D203%26h%3D100%26yaw%3D83.174126%26pitch%3D0%26thumbfov%3D100!7i13312!8i6656

Subject Site

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Site Plan

Bethesda

Rockville

Gaithersburg

1 Mile 3 Miles 5 MilesPopulation2018 Population 26,890 138,679 286,037

2023 Population 28,212 144,868 298,170

2018 Median Age 35.8 35.1 35.8

Households2018 Total Households 9,840 46,314 99,077

2023 Total Households 10,458 48,976 104,507

Median Household Income2018 Median HH Income $84,778 $90,528 $105,856

2023 Median HH Income $96,657 $103,456 $122,052

Average Household Income2018 Average HH Income $96,290 $111,085 $128,785

2023 Average HH Income $112,362 $133,148 $156,404

Population 286,037

Median Age 35.8

Avg HH Income $128,785

Total Businesses 10,952

Total Employees 135,489

Net Worth $753,858

5 Mile Radius | Demographics

Germantown

270

Location Overview, 1/3/5 Miles

270

270

270

270

370

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Gaithersburg, MD

With over 69,000 residents located in the heart of Montgomery County,

Gaithersburg is one of the largest cities in Maryland. In Gaithersburg youll find

an excitingly diverse population living in a mixture of housing types in warm,

welcoming neighborhoods. Gaithersburg combines a respect for its heritage,

demonstrated by the revitalization efforts in our Olde Towne residential and

commercial district, with thoughtful planning for new communities.

Gaithersburg began in 1765 as a small agricultural settlement known as Log Town.

In 1850, the post office was named Forest Oak. The town officially became

Gaithersburg when it was incorporated on April 5, 1878.

Gaithersburg has undergone significant changes in recent years. The City is now

an urban area and a suburb of Washington, D.C. It has become a major regional

location for high-technology companies while commercial agriculture is close to

non-existent. The rolling fields of wheat are now roads, housing developments and

commercial enterprises, but at the same time a number of historic communities

and traditions have been preserved. In the 21st century Gaithersburg continues

to grow while retaining many of the qualities of a small town that cherishes its rich,

diverse heritage.

Gaithersburg is conveniently located along I-270, which connects I-495 (the

Washington Beltway) to the south with I-70 to the north. The City is also

bisected by Rt. 355, known as Frederick Avenue in Gaithersburg, which runs

from Washington, DC to just beyond Frederick, Maryland. MD Rt. 200 (toll),

the InterCounty Connector, links I-270 to the busy I-95 corridor near Laurel,

Maryland.

Number of Employees

35,0592.66% Growth

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Market Overview

Building a solid foundation for your investment portfoliocalkain.com

Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCBs 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 tenants plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

$12 Billion in Closed Transactions

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About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.

Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each clients individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.

At Calkain, our foresight and innovation are leading the net lease investment industry.

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