Build Out - LoopNet...Rite Aid NNN Leased Offering ... General Motors has an assembly plant in...

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Offering Highlights

$4,165,459For Sale

Kase AbusharkhManaging [email protected]

Jacob AbusharkhManaging [email protected]

New Long Term Absolute Net Lease

10% Increases in Rent Every 10 Years

NYSE: RAD - Credit Rating Recently Upgraded by S&P

Main & Main Location with Neighboring RetailersIncluding Kroger, Big Lots, Dollar General, Walgreens,Starbucks and Many Others

Rite Aid NNN Leased Offering | Bowling Green, KY

The material contained in this Investment Offering Brochureis furnished solely for the purpose of considering thepurchase of the property within and is not to be used forany other purpose. This information should not, under anycircumstances, be photocopied or disclosed to any thirdparty without the written consent of Sperry Van Ness orOwner, or used for any purpose whatsoever other than toevaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner(“Owner”) in connection with the sale of the Property is theSperry Van Ness Advisor listed in this proposal, and noother person is authorized by the Owner to provide anyinformation or to make any representations other thancontained in this Investment Offering Brochure. If theperson receiving these materials does not choose to pursuea purchase of the Property, this Offering Brochure must bereturned to Sperry Van Ness.

Neither the Sperry Van Ness Advisor nor the Owner makeany representation or warranty, express or implied, as tothe accuracy or completeness of the information containedherein, and nothing contained herein is or shall be reliedupon as a promise or representation as to the futureperformance of the Property. This Offering Brochure mayinclude certain statements and estimates by Sperry VanNess with respect to the projected future performance ofthe Property. These Assumptions may or may not be provento be correct, and there can be no assurance that suchestimates will be achieved. Further, the Sperry Van NessAdvisor and the Owner disclaim any and all liability forrepresentations or warranties, expressed or implied,contained in or omitted from this Investment OfferingBrochure, or any other written or oral communicationtransmitted or made available to the recipient. Therecipient shall be entitled to rely solely on thoserepresentations

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The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Rite Aid NNN Leased Offering

and warranties that may be made to it in any final, fullyexecuted and delivered Real Estate Purchase Agreementbetween it and Owner.

The information contained herein is subject to changewithout notice and the recipient of these materials shall notlook to Owner or the Sperry van Ness Advisor, nor any oftheir officers, employees, representatives, independentcontractors or affiliates, for the accuracy or completenessthereof. Recipients of this Investment Offering Brochure areadvised and encouraged to conduct their owncomprehensive review and analysis of the Property.

This Investment Offering Brochure is a solicitation ofinterest only and is not an offer to sell the Property. TheOwner expressly reserves the right, at its sole discretion, toreject any or all expressions of interest to purchase theProperty and expressly reserves the right, at its solediscretion, to terminate negotiations with any entity, for anyreason, at any time with or without notice. The Owner shallhave no legal commitment or obligation to any entityreviewing the Investment Offering Brochure or making anoffer to purchase the Property unless and until the Ownerexecutes and delivers a signed Real Estate PurchaseAgreement on terms acceptable to Owner, in Owner’s solediscretion. By submitting an offer, a prospective purchaserwill be deemed to have acknowledged the foregoing andagreed to release the Owner and the Sperry Van NessAdvisor from any liability with respect thereto.

To the extent Owner or any agent of Owner correspondswith any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statementsas binding Owner. Only a fully executed Real EstatePurchase Agreement shall bind the property and eachprospective purchaser proceeds at its own risk.

Disclaimer | Confidentiality




Table of Contents

1. PROPERTY OVERVIEW 4

Executive Summary 5

Tenant Summary 6

2. FINANCIAL OVERVIEW 7

Financial Summary 8

Rent Roll 9

3. LOCATION OVERVIEW 10

Location Maps 11

Aerial Photo 12

Site Plan 13

4. DEMOGRAPHICS 14

Demographics Report 15

Demographics Map 16

1




Property Overview

Property This offering is the rare opportunity for an investor to acquire an absolute net leased Rite Aid assetwith a brand new 20 year lease. The lease term is 20 years with a 10% bump in year 11 years. Thelease is net and provides for zero landlord responsibilities. The lease provides for six 5 year options torenew. There is a 10% increase at each of the first 5 options. Main & Main location with neighboringretailers including Kroger, Big Lots, Dollar General, Walgreens, Starbucks and many others.

Location Bowling Green is the third-most populous city in the state of Kentucky after Louisville and Lexington,with a population of 58,067 as of the 2010 Census. It is the county seat of Warren County and theprincipal city of the Bowling Green, Kentucky Metropolitan Statistical Area with an estimated 2009population of 120,595. General Motors has an assembly plant in Bowling Green in which all ChevroletCorvettes have been built since 1981. Other significant businesses in Bowling Green include Fruit ofthe Loom, Houchens Industries, Holley Performance Products, and Camping World. The third largestKentucky public university, Western Kentucky University, is situated upon a hill in central BowlingGreen.





Property Overview

Executive Summary

Investment Overview

2380 Nashville Road • Bowling Green, KY 42101

Sale Price $4,165,459

CAP Rate 8.50 %

Lot Size 1.80 Acres

Building Size 14,564 SF

Year Built 2007

Market Kentucky

Cross Street Campbell Lane

Parking Spaces 74

Parking Ratio 5.08/1000

Traffic Count 20,000 ADT


Tenant OverviewRite Aid is a retailer and pharmacy chain, operating over 4,700 stores in 31 states and the District of Columbia.Rite Aid the third largest drugstore chain in the United States. The company is publicly traded on the New YorkStock Exchange under the ticker RAD. Rite Aid began in 1962 as a single store opened in Scranton,Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current nameand debuted as a public company in 1968. Rite Aid is headquartered in Camp Hill, a suburb of Harrisburg,Pennsylvania.

Rite Aid reported total revenue of $25.2 billion for the fiscal year 2011. As of 2012, its market capitalizationwas $1.3 billion. Rite Aid is a Fortune 500 company.

The first store opened in September 1962. Through acquisitions and new stores, Rite Aid quickly expandedinto 5 northeast states by 1965. The chain was officially named Rite Aid Corporation in 1968 and made itsdebut on the American Stock Exchange. It moved to the New York Stock Exchange in 1970.

Just ten years after its first store opened, Rite Aid operated 267 locations in 10 states. It was named the thirdlargest drugstore in the United States by 1981; shortly thereafter, 1983 marked a sales milestone of $1 billion.A 420-store acquisition along the east coast expanded Rite Aid's holdings beyond 2,000 locations. Among thecompanies acquired was Baltimore, Maryland's Read's Drug Store.

Rite Aid acquired twenty-four Hooks Drug stores from Revco in 1994, selling nine of those stores to PerryDrug Stores, a Michigan-based pharmacy chain. One year later, the 224-store Perry chain itself was acquiredby Rite Aid. The 1,000-store West Coast chain Thrifty PayLess was later acquired in 1996. The acquisition ofThrifty PayLess included the Northwest-based Bi-Mart membership discount stores, which was sold off in1998. Acquisitions of Harco, Inc. and K & B Inc. brought Rite Aid into the Gulf Coast area.

General Nutrition Companies (GNC) and Rite Aid formed a partnership in January 1999, bringing GNCmini-stores within the Rite Aid pharmacies. A partnership with drugstore.com in June 1999 allowed customersof Rite Aid to place medical prescription orders online for same-day, in-store pickup.

Beginning in March 2005, Rite Aid introduced Living More, a seniors' loyalty program; offering 10% off ofprescription drugs purchased with cash, generic products, as well as other items. Additional benefits alsoinclude discounts on certain days of the week, as well as unadvertised sales on merchandise. This program isvery similar to the former Revco program which was called "Senior Shoppers"; Rite Aid attempted to purchaseRevco in 1996. This might be attributed to the fact that Revco's former Vice President of Marketing, JamesMastrian, now holds the same position at Rite Aid.

Early in 2005, the UAW announced that its members' prescriptions would be filled through mail order. Thisdecision by the union disproportionately affected Rite Aid as it has predominant market strength where theUAW has its highest union density nationally.

In July 2005, Rite Aid completed its acquisition of Shelley's Pharmacy, a chain pharmacy in Philadelphia.

On August 23, 2006, the Wall Street Journal announced that Rite Aid would be buying the Eckerd Pharmacyand Brooks Pharmacy chains (Brooks Eckerd Pharmacy) from the Quebec-based Jean Coutu Group for US$3.4billion, and merging the two chains into one dominant pharmacy system. The company's shareholdersoverwhelmingly approved the merger on January 18, 2007.[2] After some store closures and the conversion ofthe two chains to Rite Aid is complete, the deal will make Rite Aid the dominating drug store retailer in theEastern U.S., and secures its place as the third largest drug retailer nationwide.

Similar to what CVS has gone through in Chicagoland after its purchase of Albertson's drug store chains, thedeal has left Rite Aid with some locations in close proximity to each other. (Only 23 store locations nationallywere sold off to Walgreens, The Medicine Shoppe, or independent owners in order to meet federalregulations.) In many situations, especially Pennsylvania where both chains were dominant and had roots inthose states (Rite Aid originated in Scranton, while Eckerd has roots in Western Pennsylvania via Erie for itselfand Pittsburgh for converted Thrift Drug locations), there are now two Rite Aids as close as right next door toeach other.



Corporate Information

Ticker Symbol NYSE: RAD

No. of Locations 4,703 (2011)

Revenue $25.2 Billion (FY 2011)

Net Income $555 Million (FY 2011)

Employees Approx. 91,800

Founded 1962, as Thirf D

Headquarters East Pennsboro Township,PA

Website www.RiteAid.com

Tenant HighlightsNYSE: RAD

Fortune 500 Company

Credit Rating Recently Upgraded by S&P

Tenant Summary

2




Financial Overview

Land Acres 1.80

Percent Occupied 100 %

Lease Type NNN

Landlord Expenses Zero

Type of Ownership Fee Simple

Year Built 2007


Price $4,165,459

Current CAP 8.50 %

Blended CAP 8.92 %

2018 CAP 9.35 %

Building SF 14,564

Price Per SF $286.01

Estimated Annualized Operating Data Current Blended 2018

Net Operating Income $354,064 $371,767 $389.470

2380 Nashville Road | Bowling Green, KY 42101 For Sale | $4,165,459

Financial Summary






TenantName GLA

LeaseBegin

LeaseEnd

AnnualRent

AnnualRent/SF Increases Options

Rite Aid 14,564 SF 12/1/2007 11/30/2027 $354,064 $24.31 Rentincreases

10% in year11

Tenant has six5 year

options torenew with a

10% increaseat each of thefirst 5 options

2380 Nashville Road | Bowling Green, KY 42101 For Sale | $4,165,459

Rent Roll Summary

3



Location Overview


Rite Aid NNN Leased Offering Location Maps



Rite Aid NNN Leased Offering Aerial Photo



Rite Aid NNN Leased Offering Site Plan



4 Demographics Analysis




Total Number of Households

Total Number of Persons per Household

Average House Value

Average Household Income

Median Age

Median Age - Male

Median Age - Female

Total Population

Total Population - White

Total Percent - White

Total Population - Black

Total Percent - Black

Total Population - Hispanic

Total Percent - Hispanic

Total Population - Asian

Total Percent - Asian

Total Population - Hawaiian

Total Percent - Hawaiian

Total Population - Indian

Total Percent - Indian

Total Population - Other

Total Percent - Other

0 8 310.0% 0.1% 0.1%

23 85 2131.0% 0.7% 0.9%

* Demographic information provided by BuildOut, LLC

2380 Nashville Road | Bowling Green, KY 42101

943 4,845 9,255

2.3 2.4 2.5

$0 $291,269 $291,927

$57,636 $66,196 $71,752

40 41 4139 40 40

41 42 42

1, 3, 5 Mile Demographics Report

116 477 7365.2% 4.1% 3.2%

58 250 3802.6% 2.1% 1.7%

0 0 00.0% 0.0% 0.0%

1,953 10,561 20,97888.4% 90.1% 91.4%

2,210 11,715 22,943

131 498 7065.9% 4.3% 3.1%

1 Mile 3 Miles 5 Miles

Rite Aid NNN Leased Offering Demographics Analysis



* Demographic information provided by BuildOut, LLC

2380 Nashville Road | Bowling Green, KY 42101


1, 3, 5 Mile | Radius Map

Demographics Analysis

1 Mile 3 Mile 5 Mile

Total Population 2,210 11,715 22,943

Total Number of Households 943 4,845 9,255

Average Household Income $57,636 $66,196 $71,752

Median Age 40 41 41



Presented by |

[email protected]

Kase AbusharkhManaging Director

925.348.1844

[email protected]

Jacob AbusharkhManaging Director

415.269.2474

All Sperry Van Ness® Offices Independently Owned & Operated. | © 2011 All rights reserved. |www.svn.com

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