5692 RISING SUN AVENUE, PHILADELPHIA, PA 19120

Address 5692 Rising Sun Avenue, Philadelphia, PA 19120

Sale Price $5,084,000CAP Rate 6.50%Bldg SF 11,211 SFYear Built 2006Lot Size 0.82 AcresType of Ownership Fee SimpleAPN 88-2-1816-25

PROPERTY OVERVIEW

LEASE INFORMATION

INVESTMENT HIGHLIGHTS AREA HIGHLIGHTS

PROPERTY INFORMATION

Tenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type NNNLease Term 20 YearsRoof and Structure Tenant ResponsibleLease Commencement Date 5/4/2006Lease Expiration Date 5/31/2026Term Remaining on Lease 10+ yearsIncreases YesOptions 8 x 5 ROFR 20 days

EXECUTIVE SUMMARYMarcus & Millichap is pleased to present for sale a corporate guaranteed Rite Aid located in Philadelphia, Pennsylvania.

Rite Aid is well located at the signalized intersection of Rising Sun Avenue and Adams Avenue. It is located in the neighborhood of Lawncrest, in the lower Northeast section of the city. Rising Sun Avenue is a main artery through Lawncrest, with over 18,000 vehicles passing by the Rite Aid daily. Surrounding national tenants include Dunkin Donuts, Burger King, Forman Mills, McDonald’s, Wells Fargo, Walmart, Ross and Staples.

Rite Aid has 8 years left on their lease with eight, five year options. The original lease term was 20 years and is a NNN lease. Rite Aid was constructed in 2006.

Rite Aid is one of the nation’s leading drugstore chains and dominates market share in Philadelphia. Rite Aid has over 2,500 stores concentrated on the east and west coasts. It was rated a B2 by Moody’s. The company is publicly traded on the New York stock exchange.

• Rite Aid has 8 years left on their NNN lease

• Corporate guaranteed and investment credit witha credit rating of B2 by Moody’s

• Rental increases throughout the base term andfive, five year option periods

• NNN lease with no landlord responsibilities orexpenses

• Publicly traded on the New York stock exchangeunder symbol RAD

• Rite Aid is the third largest pharmacy in the UnitedStates

• Rite Aid was constructed in 2006

• Irreplaceable Philadelphia location

• Well located at the signalized intersection of RisingSun avenue and Adams Avenue

• Surrounded by national retailers such as Wendy’s,McDonald’s, Wells Fargo, Dunkin Donuts, Subway,Home Depot, Walmart, Dollar Tree, etc.

• Rite Aid is the dominant pharmacy in Philadelphia

• Dense population with a population of over peplewithin a 5-mile radius

• Rising Sun Avenue is a main arterial road throughLawncrest

TENANT INFORMATION FINANCIAL OVERVIEW

CORPORATE OVERVIEW

Tenant Trade Name Rite Aid

Ownership Public

Tenant Corporate Store

Locations 2,569

Credit Rating B

Rating Agency Moody’s

Stock Symbol RAD

Corporate Headquarters Camp Hill, PA

Website www.riteaid.com

Sales Revenue $32.8 Billion (2017)

RITE AIDRite Aid is the largest drugstore chain on the East Coast and the third-largest drugstore chain in the United States. Rite Aid has a large presence on the East and West coasts. Rite Aid sells prescription drugs and a wide assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, and photo processing.

The company is publicly traded on the New York Stock Ex-change under the ticker symbol RAD.

In 2013, Rite Aid was the #1 Fortune 500 reail stock and the #3 overall Fortune 500 stock. In 2011, Rite Aid was ranked #100 on Fortune 500 largest US corporations.

In 2018, Rite Aid is transferring 1,932 stores and three distribution centers to Walgreens for $4.4 billion cash. As a smaller phar-macy chain, Rite Aid is reducing its focus to the East and West Coasts, focusing primarily on eight states including California, Pennsylvania, Michigan, Ohio, New York, New Jersey, Washing-ton, and, Oregon.

Map represents remaining stores and distribution centers following sale to Walgreens Boots Alliance pursuant to theAmended & Restated Asset Purchase Agreement dated September 18, 2017.

• 2,569 stores in 19 states as of December 2, 2017

• Fills over 180 million scripts per year in retail pharmacy

• Full-service pharmacy benefit management company (EnvisionRx) with over 4 million lives under management

• Approximately $16.0 billion in retail pharmacy sales and $6.0 billion in PBM sales for the LTM period ended December 2, 2017

• $632 million in proforma EBIDTA for the LTM period ended December 2, 2017

RITE AID HIGHLIGHTS

PROPERTY INFORMATION FINANCIALS

LOCATION5692 Rising Sun Avenue, Philadelphia, PA 19120

SITEThe subject property is located at the signalized corner of Rising Sun Avenue and Adams Avenue.

SQUARE FOOTAGESThe building square footage is 11,211 SF on a 0.82 acre lot.

FRONTAGE AND ACCESSApproximately 145 feet of frontage on Rising Sun Avenue.

TRAFFIC COUNTSAdams Avenue: 16,607 vehicles per day

Rising Sun Avenue: 15,750 vehicles per day

RENT INCREASES ANNUAL MONTHLY

6/1/2016-7/31/2024 $330,495.00 $27,541.25 8/1/2024-5/31/2026 $340,395.00 $28,366.25 Option 1 $363,545.50 $30,295.46

$374,434.50 $31,202.88 Option 2 $374,434.50 $31,202.88

$386,413.50 $32,201.13 Option 3 $411,877.95 $34,323.16

$425,054.91 $35,421.24 Option 4 $425,054.91 $35,421.24

$439,549.47 $36,629.12 Option 5 $467,560.36 $38,963.36

$483,504.40 $40,292.03 Option 6 $483,504.40 $40,292.03

$501,042.88 $41,753.57 Option 7 $531,854.86 $44,321.24

$531,854.86 $44,321.24 Option 8 $551,147.13 $45,928.93

$551,147.13 $45,928.93

LEASE ABSTRACT

Tenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type NNNLease Term 20 YearsRoof and Structure Tenant ResponsibleLease Commencement Date 5/4/2006Lease Expiration Date 5/31/2026Term Remaining on Lease 10+ yearsIncreases YesOptions 8 x 5 ROFR 20 days

FINANCIALS

Sales Price $5,084,000Bldg SF 11,211 SFCAP Rate 6.50%Lot Size 0.82 acresNet Operating Income $330,495

YEAR BUILTThe subject property was built in 2006.

APN88-2-1816-25

RISING SUN AVENUE

ADAMS AVEN

UE

5692 RISING SUN AVENUE,

PHILADELPHIA, PA 19120

Philadelphia is the largest city in the Commonwealth of Pennsylvania and the sixth-most populous city in the United States, with an estimated population of 1,567,872 and more than 6 million in the seventh-largest metropolitan statistical area, as of 2016. Philadelphia is the economic and cultural anchor of the Delaware Valley, located along the lower Delaware and Schuylkill Rivers, within both the Mid-Atlantic region and the Northeast megalopolis. The Delaware Valley's population of 7.2 million ranks it as the eighth-largest combined statistical area in the United States.

The Philadelphia area’s many universities and colleges make it a top study destination, as the city has evolved into an educational and economic hub. According to the Bureau of Economic Analysis, the Philadelphia area had a gross domestic product of US$431 billion in 2016, the eighth-largest metropolitan economy in the United States. Philadelphia is the center of economic activity in Pennsylvania and is home to five Fortune 1000 companies. The Philadelphia skyline is expanding, with a market of almost 81,900 commercial properties in 2016, including several nationally prominent skyscrapers. Philadelphia has more outdoor sculptures and murals than any other American city. The city is known for its arts, culture, and colonial history which attracted 42 million domestic tourists in 2016 who spent $6.8 billion, generating an estimated $11 billion in total economic impact in the city and surrounding four counties of Pennsylvania. Philadelphia has also emerged as a biotechnology hub.

Philadelphia’s economic sectors include financial services, health care, biotechnology, information technology, manufacturing, oil refining, food processing, and tourism. Financial activities account for the largest economic sector of the metropolitan area, which is also one of the largest health education and research centers in the United States.

AREA OVERVIEWPHILADELPHIA

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

2016 Population 47,102 423,059 876,340

2016 Households 15,830 145,877 320,9602016 Average HH Size 2.961600 2.862000 2.6602002016 Daytime Population 27,328 292,113 673,5312016 Owner Occupied Housing Units

61.0% 57.4% 56.0%

2016 Renter Occupied Housing Units

39.0% 42.6% 44.0%

2016 Vacant 3.9% 6.7% 7.6% $ 0 - $ 14,999 17.2% 20.7% 20.9%$ 15,000 - $24,999 14.3% 13.7% 13.1%$ 25,000 - $34,999 12.3% 12.3% 11.6%$ 35,000 - $49,999 16.1% 15.6% 14.7%$ 50,000 - $74,999 19.8% 17.3% 16.5%$ 75,000 - $99,999 9.4% 9.1% 9.6%$100,000 - $124,999 6.1% 5.3% 6.0%$125,000 - $149,999 2.4% 2.4% 2.9%$150,000 - $200,000 1.4% 2.1% 2.6%$200,000 to $249,999 0.6% 0.7% 0.9%$250,000 + 0.6% 0.8% 1.3% Median HH Income $41,060 $38,100 $39,486Per Capita Income $17,571 $18,023 $20,932Average HH Income $52,218 $51,806 $56,280

Lawncrest is located in the lower Northeast section of Pennyslvania. The community has excellent public transportation with two SEPTA bus lines. Rising Sun Avenue is a main retail artery through Lawncrest. Lawncrest is a dense neighborhood with over 842,320 people within a five mile radius.

LAWNDALE

The city is home to the Philadelphia Stock Exchange and some of the area’s largest companies including cable television and internet provider Comcast, insurance companies Cigna, Colonial Penn, and Independence Blue Cross, energy company Sunoco, food services company Aramark, packaging company Crown Holdings, chemical makers FMC and Rohm and Haas, pharmaceutical company GlaxoSmithKline, Boeing Rotorcraft Systems, apparel retailer Urban Outfitters, and automotive parts retailer Pep Boys.

Philadelphia’s history attracts many tourists, with the Independence National Historical Park (which includes the Liberty Bell, Independence Hall, and other historic sites) receiving over 5 million visitors in 2016. The city welcomed 42 million domestic tourists in 2016 who spent $6.8 billion—mostly on lodging and food—generating an estimated $11 billion in total economic impact in the city and surrounding four counties of Pennsylvania

Broker of RecordMark Taylor

Marcus & Millichap Real Estate Investment Services of Seattle, Inc.

215-531-7000License #: RB062197C