Investment Property Offering

RITE AID 21 Columbia Street, Adams, MA 01220

$1,969,000

Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844 kase@svn.com

Offering Highlights

New 20 Year Absolute Net Lease

Zero Landlord Responsibilities

Excellent Sales History

S&P Rated B Credit

02/05/2009

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

Table of Contents

1 Financial Analysis

Executive Summary

Investment Information

Rent Roll Summary

2 Additional Information

1 . Financial Analysis

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

Executive Summary RITE AID

21 Columbia Street

Adams, MA 01220

List Price $1,969,000

Price Per GLA $187.45

Price per S.F. $187.45

CAP 8.00 %

GLA 10,504

Building S.F. 10,504

Percent Occupied 100.00 %

Land Acres 1.80

Rite Aid (NYSE: RAD)

Cross Street Valley Street Tax Parcel Number ADAM-000112-000000-000010

Market Pittsfield, MA MSA Sub Market Berkshire County

Year Built 1958 Building Class A

Location Class A No. of Buildings 1

HVAC Yes Street Frontage 215 Feet

Corner No No. of Parking Spaces 64

Parking Ratio 6/1000 No.Tenants 1

No. Stories 1

Property Descriptions

Construction Construction was completed in 1958.

Parking The asset is adequately parked with approximately 64 on-site parking spaces.

Traffic Counts Traffic counts are strong.

Major Tenants Rite Aid (NYSE: RAD) is a retail pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The company is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrifty Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Rite Aid is headquartered in Camp Hill, a suburb of Harrisburg, Pennsylvania. Rite Aid reported total sales of USD $16.5 billion in fiscal 2004. As of 2005, its market capitalization was about $2.08 billion. Rite Aid is a Fortune 500 company. Rite Aid has a Standard & Poor’s Rating B.

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

Area Adams is a town in Berkshire County, Massachusetts. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 8,809 at the 2000 census with growth since then. The town was officially incorporated in 1778 as Adams, named in honor of Samuel Adams, revolutionary leader, signer of the Declaration of Independence and later governor. In 1889, the Berkshire Cotton Manufacturing Company was founded in Adams. Berkshire Cotton later became a major part of Berkshire Hathaway, who once had a large factory in Adams. Pittsfield, the principal city in the metro area is the largest city and the county seat of Berkshire County. The MSA encompasses all of Berkshire County and continues to be one of the population centers of Western Massachusetts. In 2006, Forbes ranked Pittsfield area as #61 in its list of Best Small Places for Business. In 2005, Farmer's Insurance ranked Pittsfield 20th in the United States as Most Secure Place to Live.

Property This offering is the rare opportunity for an investor to acquire an absolute net leased Rite Aid asset with a new 20 year lease. The lease term is 20 years with a 10% bump every 10 years. The lease is net and provides for zero landlord responsibilities. The lease provides for eight five year options.

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

Investment Information RITE AID 21 Columbia Street Adams, MA 01220

Listing Price $1,969,000

Current CAP 8.00 %

Year Ten CAP 8.80 %

Price Per S.F. $187.45

Price Per GLA $187.45

GLA 10,504

Building S.F. 10,504

Percent Occupied 100.00 %

Land Acres 1.80

Estimated Annualized Operating Data Current Year Ten

$157,520 $173,272 Net Operating Income

Highlights

New 20 Year Absolute Net Lease Zero Landlord Responsibilities Excellent Sales History S&P Rated B Credit

The info

rmation lis

ted a

bove

has

been o

bta

ined f

rom

sourc

es

we b

elie

ve t

o b

e r

elia

ble

, how

eve

r, w

e a

ccept

no r

esp

onsi

bili

ty f

or

its

corr

ectn

ess

.

www.svn.com

Ren

t Rol

l Sum

mar

y T

enan

t Nam

e S

tart

Dat

e E

nd D

ate

Occ

upie

d S

.F.

Ann

ual

Ren

t S.F

. O

ccup

ied

Ren

t %

of

Tot

al E

scal

atio

ns /

Opt

ions

/ C

omm

ents

Rite

Aid

5/1

3/20

08 6

/1/2

028

10,

504

$15

.00

$15

7,52

0 1

00.0

% 1

0% in

crea

ses

ever

y 10

yea

rs.

Eig

ht 5

yea

r op

tions

to r

enew

.

Tot

al 1

0,50

4 $

157,

520

100

.0 %

2 . Additional Information

The info

rmation lis

ted a

bove

has

been o

bta

ined f

rom

sourc

es

we b

elie

ve t

o b

e r

elia

ble

, how

eve

r, w

e a

ccept

no r

esp

onsi

bili

ty f

or

its

corr

ectn

ess

.

www.svn.com

Act

ual S

ite P

hoto

The info

rmation lis

ted a

bove

has

been o

bta

ined f

rom

sourc

es

we b

elie

ve t

o b

e r

elia

ble

, how

eve

r, w

e a

ccept

no r

esp

onsi

bili

ty f

or

its

corr

ectn

ess

.

www.svn.com

Aer

ial P

hoto

The info

rmation lis

ted a

bove

has

been o

bta

ined f

rom

sourc

es

we b

elie

ve t

o b

e r

elia

ble

, how

eve

r, w

e a

ccept

no r

esp

onsi

bili

ty f

or

its

corr

ectn

ess

.

www.svn.com

Loc

atio

n M

ap

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

Tenant Overview

Rite Aid (NYSE: RAD) is a United States retailer and pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. The company is publicly traded on the New York Stock 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 name and debuted as a public company in 1968. Rite Aid is headquartered in Camp Hill, a suburb of Harrisburg, Pennsylvania.

Rite Aid reported total sales of USD $16.5 billion in fiscal 2004. As of 2005, its market capitalization was about $2 billion. Rite Aid is a Fortune 500 company.

The first store opened in September 1962. Through acquisitions and new stores, Rite Aid quickly expanded into 5 northeast states by 1965. The chain was officially named Rite Aid Corporation in 1968 and made its debut 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 third largest 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 the companies 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 Perry Drug Stores, a Michigan-based pharmacy chain. One year later, the 224-store Perry chain itself was acquired by Rite Aid. The 1,000-store West Coast chain Thrifty PayLess was later acquired in 1996. The acquisition of Thrifty PayLess included the Northwest-based Bi-Mart membership discount stores, which was sold off in 1998. 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 GNC mini-stores within the Rite Aid pharmacies. A partnership with drugstore.com in June 1999 allowed customers of 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 of prescription drugs purchased with cash, generic products, as well as other items. Additional benefits also include discounts on certain days of the week, as well as unadvertised sales on merchandise. This program is very similar to the former Revco program which was called "Senior Shoppers"; Rite Aid attempted to purchase Revco in 1996. This might be attributed to the fact that Revco's former Vice President of Marketing, James Mastrian, now holds the same position at Rite Aid.

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

Early in 2005, the UAW announced that its members' prescriptions would be filled through mail order. This decision by the union disproportionately affected Rite Aid as it has predominant market strength where the UAW 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 Pharmacy and Brooks Pharmacy chains (Brooks Eckerd Pharmacy) from the Quebec-based Jean Coutu Group for US$3.4 billion, and merging the two chains into one dominant pharmacy system. The company's shareholders overwhelmingly approved the merger on January 18, 2007.[2] After some store closures and the conversion of the two chains to Rite Aid is complete, the deal will make Rite Aid the dominating drug store retailer in the Eastern 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, the deal has left Rite Aid with some locations in close proximity to each other. (Only 23 store locations nationally were sold off to Walgreens, The Medicine Shoppe, or independent owners in order to meet federal regulations.) In many situations, especially Pennsylvania where both chains were dominant and had roots in those states (Rite Aid originated in Scranton, while Eckerd has roots in Western Pennsylvania via Erie for itself and Pittsburgh for converted Thrift Drug locations), there are now two Rite Aids as close as right next door to each other.

Rite Aid had sold some locations to J.C. Penney's Thrift Drug chain in the mid-1990s shortly before J.C. Penney's acquisition of Eckerd, and had also sold all of their Massachusetts stores to Brooks in 1995, bringing some existing Eckerds and Brooks that were once Rite Aids full circle. Because Eckerd was previously owned by J.C. Penney, Eckerd stores accepted J.C. Penney charge cards. Since the merger, all Rite Aids accept J.C. Penney charge cards.

2007 revenues were reported at $27 Billion

For more information about Rite Aid, please visit their website at www.riteaid.com.

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

Criteria Comment

Location The property is located on the east side of Columbia Street. This is a free-standing property facing west. It is north of the intersection of Columbia Street and Hoosac Street.

Roadway Columbia Street is a two-lane road leading south to downtown Adams. There are residential and commercial properties on this road, including office space, an apartment building, a middle school and two churches.

Visibility/Signage The property is set right on the road and is visible from all directions. There is signage on the east and south sides of the building.

Access There are two points on ingress/egress to the subject property. The first is directly south of the building off of Columbia Street into the parking lot shared with the Berkshire Mill office building. The second point of ingress/egress is further south, into the same parking lot.

Physical Condition

(Interior)

The interior of the property is clean and in good shape.

Physical Condition (Exterior and parking lot)

There is adequate space in the parking lot, located south of the building. The lot is shared with the Berkshire Mill office complex, located south of the subject property.

Local RE Environment The property is located in a mature real estate market with mixed-use properties along Columbia Street. Businesses in the immediate area include: Napa Auto Parts, Adams Middle School, apartment buildings and Berkshire Mill.

Position in Market /

Contiguous Properties

The property is located north of downtown Adams. North: Napa Auto Center; East: Retention Basin and residential homes; South: Berkshire Mill; West: Apartment building and Adams Mills School.

Subtenants Berkshire Mills Associates leases the entire parking lot from Rite Aid except 70 spaces reserved for Rite Aid. The lease expires on 10/31/2012 and there are two, 5-year extension options. Current annual rent is $16,200.

Alternate Uses Restaurant, retail, bank.

ww

w.s

vn

.com

Th

e in

form

atio

n lis

ted

ab

ove

ha

s b

een o

bta

ine

d f

rom

so

urc

es w

e b

elie

ve t

o b

e r

elia

ble

, h

ow

eve

r, w

e a

cce

pt

no r

espo

nsib

ility

fo

r its

corr

ectn

ess

Sale

s C

om

para

ble

s

Co

mp

ara

ble

Tra

nsacti

on

An

aly

sis

Sale

Date

Ten

an

tA

dd

ress

Cit

yS

tate

CA

PS

ale

Pri

ce

NO

IS

F$/S

FN

OI/

SF

Rit

e A

id C

om

para

ble

s

26-D

ec-0

8R

ite A

id1080 B

ald

Hill

Road

Warw

ick

RI

7.3

5%

2,7

80,0

00

204,3

30

10,8

00

$257.4

1$18.9

2

16-D

ec-0

8R

ite A

id14 C

ider

Hill

Road

York

ME

7.6

3%

6,0

50,0

00

461,6

15

14,6

80

$412.1

3$31.4

5

23-O

ct-

08

Rite A

idN

utt

Road a

nd K

imbert

on R

oad

Phoenix

vill

eP

A7.9

2%

5,5

50,0

00

439,5

60

11,1

80

$496.4

2$39.3

2

10-O

ct-

08

Rite A

id305 H

ighw

ay

64 W

est

Lexin

gto

nN

C7.6

5%

2,8

40,0

00

217,2

60

14,3

35

$198.1

2$15.1

6

10-S

ep-0

8R

ite A

id4001 B

att

legro

und A

venue

Gre

ensb

oro

NC

7.4

4%

4,2

70,0

00

317,6

88

13,8

24

$308.8

8$22.9

8

24-J

ul-

08

Rite A

id685 N

. M

ain

Str

eet

Gre

ensb

urg

PA

7.6

0%

5,4

00,0

00

410,4

00

14,5

64

$370.7

8$28.1

8

13-J

un-0

8R

ite A

id302 W

Main

St.

Hart

ford

MI

7.8

7%

1,5

70,0

00

123,5

59

10,1

67

$154.4

2$12.1

5

13-J

un-0

8R

ite A

id8 G

ayle

Dri

ve

Berk

ele

y S

pri

ngs

WV

7.7

5%

1,5

70,0

00

121,6

75

11,3

48

$138.3

5$10.7

2

19-M

ar-

08

Rite A

id325 S

. M

ain

Str

eet

Burg

ett

stow

nP

A7.8

5%

1,6

52,0

00

129,6

82

11,0

05

$150.1

1$11.7

8

15-F

eb-0

8R

ite A

id335 M

ain

Str

eet

Gre

envill

eP

A7.2

3%

4,4

00,0

00

318,1

20

11,1

57

$394.3

7$28.5

1

22-J

an-0

8R

ite A

id1470 T

itta

baw

ass

ee R

oad

Kochvill

e T

ow

nsh

ip

MI

7.1

6%

3,8

50,0

00

275,6

60

14,5

64

$264.3

5$18.9

3

14-J

an-0

8R

ite A

id5 E

ast

Main

Str

eet

Nanticoke

PA

7.6

4%

3,2

25,0

00

246,3

90

11,0

60

$291.5

9$22.2

8

Mean

7.5

9%

$3,5

96,4

17

$272,1

62

12,3

90

$286.4

1$21.7

0

Hig

h7.9

2%

6,0

50,0

00

461,6

15

14,6

80

$496.4

2$39.3

2

Lo

w7.1

6%

1,5

70,0

00

121,6

75

10,1

67

$138.3

5$10.7

2

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

Demographics Report 21 Columbia Street Adams, MA 01220

1.00 Mile Ring

3.00 Mile Ring

5.00 Mile Ring

POPULATION 1990 Population 6,815 9,902 17,686 2000 Population 6,248 9,237 16,062 % Population Change 1990-2000 -8.32 % -6.72 % -9.18 %

2007 Total Population 6,020 8,917 15,362 2012 Total Population 5,902 8,768 15,121 % Population Change 2000-2007 -3.65 % -3.46 % -4.36 % % Population Change 2007-2012 -1.96 % -1.67 % -1.57 % 2007 Total Households 3,021 4,269 6,966 2012 Total Households 3,034 4,288 7,024 % Households Change 2000-2007 2.55 % 2.35 % 1.07 % % Households Change 2007-2012 0.43 % 0.45 % 0.83 % 2007 White Population 5,847 8,645 14,666 2007 Black Population 27 39 162 2007 American Indian/Alaska Native 5 5 17 2007 Asian/Hawaiian/Pacific Islander 22 36 95 2007 Other Population (Incl 2+ Races) 119 192 423 2007 Hispanic Population 84 101 261 2007 Non-Hispanic Population 5,935 8,816 15,101 2007 Per Capita Income $23,493 $23,191 $21,640 2007 Median Household Income $30,745 $34,162 $33,283 2007 Average Household Income $46,815 $48,440 $47,722 2007 Household Income < $10,000 447 552 853 2007 Household Income $10,000-$14,999 378 446 705 2007 Household Income $15,000-$19,999 243 349 618 2007 Household Income $20,000-$24,999 210 286 492 2007 Household Income $25,000-$29,999 206 290 503 2007 Household Income $30,000-$34,999 181 254 475 2007 Household Income $35,000-$39,999 216 296 418 2007 Household Income $40,000-$44,999 158 243 449 2007 Household Income $45,000-$49,999 105 170 284 2007 Household Income $50,000-$59,999 255 366 573 2007 Household Income $60,000-$74,999 330 577 898 2007 Household Income $75,000-$99,999 184 272 445 2007 Household Income $100,000-$124,999 61 98 144 2007 Household Income $125,000-$149,999 26 30 43

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

2007 Household Income $150,000-$199,999 8 23 39 2007 Household Income $200,000-$249,999 3 3 6 2007 Household Income $250,000-$499,999 11 14 21 2007 Household Income $500,000+ 0 0 0 2007 Average Household Size 2.02 2.08 2.11 2007 Total Owner Occupied Housing Units 1,735 2,728 4,435 2007 Total Renter Occupied Housing Units 1,265 1,545 2,525 2007 Total Daytime Population 5,496 8,153 13,340 2007 Total Daytime Work Population 2,260 3,449 6,431 2007 Total Establishments 258 346 544

HOUSEHOLDS 1990 Households 3,051 4,255 7,114 2000 Households 2,946 4,171 6,892 % Households Change 1990-2000 -3.44 % -1.97 % -3.12 %