2310 WEST PATAPSCO AVENUE, BALTIMORE, MD 21230

WALGREENSG R O U P

BRANDON MICHAELS

BRANDON MICHAELSFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) 212-2794bmichaels@marcusmillichap.comLicense: CA #01434685

G R O U P

BRANDON MICHAELS

INVESTMENT ADVISORS:

This information has been secured from sources we believe to be re-liable, 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. Any projections, opinions, assump-tions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Mar-cus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap

Table of Contents

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Executive Summary

Tenant Overview

Financial Analysis

Sales Comparables

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Executive SummaryPROPERTY INFORMATION

LEASE INFORMATION

Property Address 2310 West Patapsco Avenue, Baltimore, MD 21230

Price $4,634,000

Current NOI $370,740

Cap Rate 8.00%

Building SF 15,120 SF

Total Land Size 94,089 SF (2.16 AC)

Year Built 2002

Property Type Single-Tenant Retail

Tenant Walgreens, Inc.

Lease Start Date 2/1/2002

Lease Expiration Date 1/31/2022

Original Lease Term 20 years

Remaining Lease Term 5 years

Rent Increases Fixed

Options Eight, five year options

Lease Type NN

Roof and Structure Landlord Responsible

Marcus & Millichap has been selected to exclusively market for sale the Walgreens located at 2310 West Patapsco Avenue in Baltimore, Maryland. This is an opportunity to purchase an existing prototype store in a densely populated area. Walgreens was built in 2002 with an initial 20-year lease that expires on January 31, 2022, with eight, five year options. The store is a 15,120 square foot prototype, which is the large format for Walgreens. The property is located just West of the busy signalized intersection of Patapsco Avenue and Hollins Ferry Road. The parcel is 2.16 acres. The lease structure is Double Net with the landlord being responsible for roof and structure.

The property is located in the Southwest area of Baltimore known as Lakeland, Maryland. It is an infill, high density market with a population of over 134,000 in the three-mile ring. The area is surrounded by major highways and has great access to Interstate-95, Interstate-695, and Interstate-295. There is a lack of pharmacies in the immediate market as the next closest national drugstore is a CVS/Pharmacy that is 1.2 miles away. Walgreens is located next to the Hollinswood Shopping Centr which includes major national retailers like Subway, LA Mart, Dollar Tree, Dollar General, Sonic Drive-In, and Advance Auto Parts.

INVESTMENT GRADE WALGREENS TENANT

9 Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe.

9 Investment Grade Tenant - A2 rating by Standard & Poor

9 Corporate Gurantee | Nasdaq: WBA

9 Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry of Fortune magazine’s 2017 list of the World’s Most Admired Companies.

9 Large prototype location with a drive-thru pharmacy

9 Large parcel - 2.16 acres

DENSE BALTIMORE LOCATION ADJACENT TO NATIONAL RETAILERS

9 Walgreens is located adjacent to major national retailers including Subway, Dollar Tree, Sonic Drive-In, Advance Auto Parks, Popeyes Louisiana Kitchen, Dollar General, and LA Mart

9 Located just west of the northwest signalized corner of W. Patapsco Avenue and Hollins Ferry Road

9 Dense location with a population of 134,000 in a three-mile radius

9 Traffic counts in excess of 40,000 vehicles per day at intersection

9 Close to the Baltimore-Washington Parkway (295) which travels directly into Downtown Baltimore

9 The next closest pharmacy and drugstore is CVS, which is 1.2 miles away

9 Store Sales Available Upon Request

Investment Highlights

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WALGREENSWalgreens is one of the largest drugstore chains in the U.S., with more than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging the first global pharmacy-led, health and wellbeing enterprise. The combination brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through community pharmacy care and pharmaceutical wholesaling. Both companies have more than a century’s worth of experience in customer and patient care. Walgreens is today part of the Retail Pharmacy USA division of Walgreens Boots Alliance. In addition, Walgreens is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. Its portfolio now includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty products brands such as No7, Botanics, Liz Earle and Soap & Glory.

Tenant Overview

Tenant Trade Name Walgreens

Ownership Public

Tenant Corporate Store

Number of Locations 8,126

Sales Volume $116,081,000

Lease Guarantor Walgreens Boots Alliance

Credit Rating A-2

Rating Agency Standard & Poor’s

Stock Symbol WBA

Board Nasdaq

Headquartered Deerfield, IL

Website www.walgreens.com

TENANT OVERVIEW

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WALGREENS BOOTS ALLIANCEThrough Walgreen’s strategic partnership with Alliance Boots, Walgreens Boots Alliance is now a global leader in pharmacy-led, health and well-being retail, and together have over 13,200 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and well-being products.

The company’s size, scale, and expertise help to expand the supply and address the rising cost of prescription drugs in the USA and worldwide.

WALGREENS BOOTS ALLIANCE AT A GLANCE 9 Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry of

Fortune magazine’s 2017 list of the World’s Most Admired Companies. This is the 24th consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen Co., have been named to the list.

9 Unmatched supply chain and procurement expertise, offering customers innovative solutions and optimal efficiencies

9 A portfolio of retail and business brands, including Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty product brands, such as No7, Botanics, Liz Earle, and Soap & Glory

9 A unique platform for growth in developed and emerging markets

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LEASE INFORMATION

FINANCIAL ANALYSIS

Property Address 2310 West Patapsco Avenue, Baltimore, MD 21230

Building SF 15,120 SF

Total Land Size 94,089 SF

Year Built 2002

Property Type Single-Tenant Retail

Tenant Walgreens

Lease Start Date 2/1/2002

Lease Expiration Date 1/31/2022

Rent Increases Fixed

Options Eight, five year options

Lease Type NN

Roof and Structure Landlord Responsible

Lease Term 20 years

Annualized Operating Data

2/1/2002-1/31/2022 (Monthly Income) $31,083

Annual Income $373,000

Base Rent (24.67/SF) $373,000

Capital Reserves (.15/SF) $2,260

Net Operating Income $370,740

Options to Renew Eight, five year options

Options to Terminate Yes

Options to Purchase No

First Right of Refusal Yes

Walgreens

Pricing

Price $4,634,000

Price/SF (Bldg) $306.48

Current NOI $370,740

CAP Rate 8.00%

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HOLLINS FERRY ROAD

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HOLLINSWOOD SHOPPING

CENTER

LAKELAND ELEMENTARY

MIDDLE SCHOOLCHERRY HILL

WESTBALTIMORE

W. PATAPSCO AVENUE

BALTIM

ORE WASHIN

GTON PARKWAY

HOLLIN

S FE

RRY

RD

LANSDOWNE MIDDLE SCHOOL

PATAPSCO VILLAGE SHOPPING CENTER

295

LANSDOWNE ROAD

2310 West Patapsco Avenue, Baltimore

Aerial Map

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BALTIMORE, MARYLANDBaltimore is the largest city in the U.S. state of Maryland, and the 29th-most populous city in the country. It was established by the Constitution of Maryland and is not part of any county; thus, it is the largest independent city in the United States, with a population of 621,849 as of 2015. As of 2016, the population of the Baltimore metropolitan area was estimated to be just under 2.8 million making it the 21st largest metropolitan area in the country.

Founded in 1729, Baltimore is the second-largest seaport in the Mid-Atlantic Baltimore's Inner Harbor was once the second leading port of entry for immigrants to the United States and a major manufacturing center. After a decline in major manufacturing, industrialization and rail transportation, Baltimore shifted to a service-oriented economy, with the Johns Hopkins Hospital (founded 1889), and Johns Hopkins University (founded 1876), now the city's top two employers.

With hundreds of identified districts, Baltimore has been dubbed "a city of neighborhoods". Famous residents have included the writers Edgar Allan Poe, Edith Hamilton, Frederick Douglass, and H.L. Mencken; jazz musician James "Eubie" Blake; singer Billie Holiday; actor and filmmaker John Waters; and baseball player Babe Ruth. In the War of 1812, Francis Scott Key wrote The Star-Spangled Banner, later the American national anthem, in Baltimore. Baltimore has more public monuments per capita than any other city in the country and is home to some of the earliest National Register historic districts in the nation, including Fell's Point (1969), Federal Hill (1970) and Mount Vernon Place (1971). More than 65,000 properties, or roughly one in three buildings in the city, are listed on the National Register, more than any other city in the nation.

Area Overview

1 MILE 3 MILES 5 MILES

2014 Population 19,197 137,230 403,419

2014 Households 6,961 54,296 162,665

2014 Average Household Size 2.75 2.49 2.37

2014 Daytime Population 4,435 76,455 264,792

2014 Owner Occupied Housing Units 42.15% 46.48% 43.73%

2014 Renter Occupied Housing Units 57.85% 53.52% 56.27%

2014 Vacant 7.07% 14.81% 15.91%

2014 Median Household Income $38,840 $41,098 $39,922

2014 Per Capita Income $17,562 $23,481 $24,689

2014 Average Household Income $48,431 $58,867 $59,381

DEMOGRAPHICS

LAKELANDLakeland is a neighborhood in South Baltimore, Maryland.

Population: 4,551Area: 0.555 square miles

MEDIAN HOUSEHOLD INCOME IN 2015

POPULATION DENSITY

PERCENTAGE OF FAMILY HOUSEHOLDS

MEDIAN RENT IN 2015

Area Overview

$46,233

$44,165

8,195 people per square mile7,696 people per square mile

59.8%

$925

Lakeland:

Baltimore:

Lakeland:

Baltimore:

Lakeland:

Baltimore:

Lakeland:

Baltimore:

40.1%

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2 Walgreens 939 York Road, Towson, MD 21204

Walgreens 9621 Belair Road, Nottingham, MD 21236

Close of Escrow: 1/25/2017

Year Built: 2001

Gross Leasable Area (GLA): 14,712

Sale Price: $5,440,560.00

CAP Rate: 7.00%

Price / SF (GLA): $369.80

Lot Size: 74,052

Close of Escrow: 6/21/2016

Year Built: 2012

Gross Leasable Area (GLA): 12,360

Sale Price: $12,100,000.00

CAP Rate: 5.66%

Price / SF (GLA): $978.96

Lot Size: 32,117

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Sales Comparables3 Walgreens 5657 Baltimore National Pike, Catonsville, MD 21228

Close of Escrow: 2/19/2016

Year Built: 2005

Gross Leasable Area (GLA): 14,820

Sale Price: $8,650,000.00

CAP Rate: 6.00%

Price / SF (GLA): $583.67

Lot Size: 98,881

Sales Comparables

4 Walgreens 25 High Street, Waldorf MD 20602

Close of Escrow: 12/2/2015

Year Built: 2005

Gross Leasable Area (GLA): 14,490

Sale Price: $6,225,000.00

Price / SF (GLA): $429.61

Lot Size: 57,194

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Sales Comparables

Legend1 9621 Belair Road, Nottingham2 939 York Road, Towson3 5657 Baltimore National Pike, Catonsville4 25 High Street, Waldorf

Subject Property

7.00%

5.66%6.00%

6.22%

8.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

9621 Belair Road,Nottingham, MD 21236

939 York Road, Towson,MD 21204

5657 Baltimore NationalPike, Catonsville, MD

21228

Average Subject Property

Sales Comparables

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G R O U P

BRANDON MICHAELS

BRANDON MICHAELSFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) 212-2794bmichaels@marcusmillichap.comLicense: CA #01434685

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