OFFERING MEMORANDUM

Andrew FallonExecutive Managing Director

703.787.4733 | afallon@calkain.com

PRICE RITEDistrict Heights, MD

Asset Summary

Annual Rent $368,010

Rent/Month $30,667

Rentable Square Feet 47,000+/- SF

Rent/SF $7.83

Land Area 3.53+/- Acres

Tenant Wakefern Food Corp.

Website www.wakefern.shoprite.com

Stock Symbol NASDAQ: VLGEA

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NN

Landlord Responsibilities Roof, Structure, Liability Insurance

Store Opened 2012

Lease Term Remaining 4 Years of Firm Term

Rent Commencement November 28, 2012

Lease Expiration November 30, 2022

Increases Varied Every 5 Years

Remaning Options Five (5), Five (5) Year

Investment Highlights

• Washington, DC MSA; 9 miles from the US Capitol Building & the White House

• Subdivided parcel within the 250,000 SF Penn Station shopping center

• Extremely dense retail area, surrounded by national retailers including TGI Fiday’s, Planet Fitness, Burger King, McDonald’s, Exxon, Dunkin’ Donuts, Chick fil A, Wells Fargo, and anchored by Rite Aid, Shoppers Food Ware-house, CVS, Giant Food and Marshall’s

• Strong demographics with average population count of 20,000& average hh income of $65,000 within 1 mile

• Traffic counts of 25,420 VPD

• Attractive assumable financing at 4.30% interest rate

• Below market rent, and low cost basis at $112/SF

Rent ScheduleTerm Increases Annual Rent Monthly Rent

12/2017-11/2022 8.00% $368,010 $30,667

12/2022-11/2027 (Option 1) 8.05% $397,620 $33,135

12/2027-11/2032 (Option 2) 7.92% $429,110 $35,759

12/2032-11/2037 (Option 3) 7.99% $463,420 $38,618

12/2037-11/2042 (Option 4) 7.10% $496,320 $41,360

12/2042-11/2047 (Option 5) 8.90% $540,500 $45,041

Asking Price$5,500,000

Cap Rate 6.69%

5800 Silver Hill Road District Heights, MD 20747

Calkain Companies | 2

Price Rite | Financial Summary

Assumable Debt Terms

Original Loan Amount $3,290,000

Aproximate Loan Balance (11/2018) $2,845,000

Amortization 25 Years

Maturity Date 5/6/2023

Interest Rate 4.30%

Loan Balance at Maturity $2,373,496

Annual Debt Service Payment $214,985

Monthly Debt Service Payment $17,915

Est. Equity Required Over the Debt $2,655,000

Assumption Fee 1.00%

Processing Fee $25,000

Escrow/Reserves TBD

Cash Flow Analysis

2018-2023NOI $368,010

Debt Service $214,985

Cash Flow After Debt Service $153,025

Cash-on-Cash Return (Does Not Include Amortization)

5.76%

Calkain Companies | 3

Price Rite | Debt Assumption

Tenant SnapshotTenant Snapshot

# of Locations

300+

Stock Symbol

NYSE: VLGEA

2017 Revenue

16.3Bil

Market Cap

$363.5Mil

About Price RiteThe Price Rite store differentiates itself from its competitors by saving its customers up to 50 percent off their everyday grocery bills. By delivering a blend of variety, price, quality products and freshness at incredibly low prices, Price Rite’s targeted approach has earned it a following among a growing niche of price-conscious consumers.

The first Price Rite store opened its doors in West Springfield, MA in 1995 by PRRC, Inc. a wholly-owned subsidiary of Wakefern Food Corp. Today there are more than 50 locations throughout Connecticut, Massachusetts, New York, Pennsylvania, Rhode Island and Maryland. Through this growth, Price Rite’s mission remains the same – to offer customers Impossibly, Inconceivably, Incredibly Low Grocery Prices Everyday in a clean, fresh and friendly

environment.

Price Rite supermarkets feature expansive produce departments, fresh-baked goods delivered daily, choice pre-packaged meat and seafood products and a remarkably low-priced assortment of quality private label items. Price Rite offers its customers many of the most popular grocery items on the market today, including leading national brands, all at incredibly low prices. By finding the best deals and limiting the number of items stocked, Price Rite passes huge savings along to its customers, who can save up to 50% off of their grocery bills.

At an average of 35,000 square feet, Price Rite stores are smaller than traditional supermarkets, allowing customers to quickly discover the best values in the store. Our smaller size stores make your shopping easier.

About Wakefern CorporationWakefern is the nation’s largest retailer-owned cooperative and is comprised of 50 member companies who own and operate retail supermarkets under the ShopRite, Price Rite and The Fresh Grocer banners. With retail locations in nine states, the Wakefern cooperative reaches into the New Jersey, New York, Connecticut, Pennsylvania, Delaware, Maryland, Massachusetts, Rhode Island and Virginia markets.

In addition to servicing its cooperative members, Wakefern supplies it wholly owned subsidiaries, ShopRite Supermarkets, Inc. and PRRC, Inc. with products and services, allowing them to operate supermarkets under the trademarked names ShopRite® and Price Rite®. Of the more than 250 ShopRite stores located across New York, New Jersey, Pennsylvania, Connecticut, Delaware, and Maryland, 33 of these are owned and operated by ShopRite Supermarkets, Inc. PRRC, Inc. operates its more than 50 Price Rite stores in Connecticut, Massachusetts, New York, Pennsylvania, Rhode Island, Maryland and Virginia. There are two member-owned Price Rite stores, located in Camden and Garfield, NJ.

In fiscal year 2015, its revenue was $15.7 billion. In 2011, Supermarket News gave Wakefern its Retailer Excellence Award and The Griffin Report and Progressive Grocer named Wakefern its Retailer of the Year. As of 2011, Wakefern was ranked 17th by sales among all supermarket operators in the U.S. It operates more than 300 stores.

Calkain Companies | 4

Tenant Overview

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

Penn Station Shopping Center

Spauldings Branch Library

Pennsylvania Ave 38,770 VPDSilv

er Hill R

d 25,42

0 VPD

Pennsylvania Ave 38,770 VPD

King Pawn

Sumo Hibachi Wings & Express

The Tire Depot

New 24 Fitness and Basketball

Oakcrest Towers

Francis Scott Key Elementary School

Subject Site

5800 Silver Hill Road | District Heights, MD

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

Subject Site

Silver Beauty Supply

Matress Man H&P Nails

Wing Heaven Speedy Tax Service

Silver Hill Coin Laundry Quik Mart Phone City Cleaners

Silver H

ill Rd 25

,420 V

PD

Old Silver Hill Rd 9,157 VPD

5800 Silver Hill Road | District Heights, MD

Location Highlights

Population w/3 miles 143,859

25,420 VPD Pass the Site

Signalized Intersection

C

lick fo

r Street View

Site Plan

Silver Hill R

oad 25,420 VPD

Calkain Companies | 7

Surrounding Retail

Calkain Companies | 8

Hollywood

Washington, DC

Herndon, VA

Baltimore, MD

District Heights, MD

Annapolis, MD

Alexandria, VA

Rockville, MD

Hyattsville, MD

Bethesda, MD

95

Subject Site

Washington, DC 10 miles

Hyattsville, MD 10 miles

Bethesda, MD 28 miles

Annapolis, MD 32 miles

Rockville, MD 34 miles

Herndon, VA 43 miles

95

495

Calkain Companies | 9

Location Overview

Distance To

1 Mile 3 Miles 5 MilesPopulation2018 Population 21,812 143,859 367,584

2023 Population 22,079 150,625 382,755

2018 Median Age 34.1 36.5 36.1

Households2018 Total Households 8,688 55,533 142,818

2023 Total Households 8,734 58,014 148,334

Median Household Income2018 Median HH Income $57,414 $56,767 $55,562

2023 Median HH Income $65,096 $64,778 $62,831

Average Household Income2018 Average HH Income $71,330 $70,344 $73,218

2023 Average HH Income $83,762 $83,090 $85,689

Population 367,584

Median Age 36.1

Avg HH Income $73,218

Total Businesses 7,980

Total Employees 93,772

5 Mile Radius | Demographics

Location Overview, 1/3/5 Miles

Calkain Companies | 10

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. It prides itself on being an innovative leader by providing its 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 they do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of its clients.

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

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, PCB’s 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 tenant’s 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.

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