RETAIL INVESTMENT OPPORTUNITY

Confidential Offering Memorandum 552 State Street HAMBURG, PA Accelerating success. CONFIDENTIALITY AGREEMENT Colliers’ Confidentiality Agreement, which is available from the Listing Agents, must be completed and returned by interested principals in order to receive the Confidential Offering Memorandum.

OFFERING PROCEDURE Offers may be submitted at any point during the marketing process, although a deadline for offers may be established at a later date. All submissions must be emailed to the listing agent. In addition to the terms of an offer, the Owner and Colliers International will give consideration to the CONTACT demonstrated ability of the purchaser to complete the transaction. Offers Inspections will be arranged by should be in the form of a non-binding letter of intent specifying at least the appointment only with the Owner’s following: Exclusive Agents: • Offered Price • Earnest Money Deposit(s) Scott Horner Vice President • Length of due diligence period [email protected] • Contingencies (if any) +1 610 359 5869 • Time of Closing Derek Zerfass • References Senior Vice President • List of Real Estate Owned [email protected] • Sources of Funds (Equity and Debt) +1 610 295 6125

COLLIERS INTERNATIONAL One Windsor 7535 Windsor Drive, Suite 208 Allentown, PA 18195 www.colliers.com/allentown

552 STATE STREET | OFFERING MEMORANDUM

Materials contained in this Investment Offering are confidential, furnished solely for the purpose of considering the “AS IS” acquisition of 552 State Street (the“Property”) described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Colliers International and Owner. No representations, expressed or implied are made as to the foregoing matters by Owner, Owner’s property management/ leasing agent, Colliers or any of their officers, employees, affiliates and/or agents. 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 Table of Contents

PROPERTY OVERVIEW LOCATION OVERVIEW 5 Property Summary 9 Property Aerial

6 Property Highlights 10 Retail Map

7 Tenant Overview 11 Regional Map

12 Area Overview

15 Demographics

CONFIDENTIAL OFFERING MEMORANDUM | BRIDGEVIEW BUSINESS PARK Property Overview PROPERTY SUMMARY

$2,100,000 8.25% $173,822 Asking Price Asking Cap NOI Rate

PROPERTY SUMMARY 552 State Street Address: Hamburg, PA 19526 Lease Guarantor: Weis Markets, Inc Lease Expiration Date: 12/31/2022 Rentable SF: 37,840 Lot Size (AC): 2.58 Parking: 138 Year Built: 1995 Lease Type: NNN Landlord Responsibilities: None Right of First Refusal to Purchase: Yes Right of First Refusal to Lease Yes

RENT SCHEDULE Monthly Annual Primary Term Rent/SF Cap Rate Rent Rent

Current: 12/31/2022 $14,485 $173,822 $4.59 8.25%

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 PROPERTY HIGHLIGHTS

€ LONG-TERM TENANT Weis Markets has been operating for over 20 years as the local grocery store to this region and signed into a master lease in 2016 that extends out through 2022

€ CORPORATELY GUARANTEED The Property is corporately guaranteed by Weis Markets, Inc., and has over two years remaining on the current term

€ GROCERY-ANCHORED SHOPPING CENTER Weis Markets is a highly visible 37,840 square foot shopping center of Hamburg, PA

€ OFFERED BELOW REPLACEMENT COST At $55.50 per square foot list price, the property offers an opportunity to acquire a master leased grocery-anchored shopping center at a price point below what it would cost to replace the building

€ LOW PRICE POINT WITH BELOW MARKET RENTS Rare NNN master leased grocery-anchored shopping center offered at $2.1 million, with “sub-tenant” rents significantly below market (currently $12.00/SF) TENANT OVERVIEW

Based in Sunbury, , Weis Markets is a food retailer and supermarket chain with locations across Maryland, , , Delaware, Virginia, West Virginia, and Pennsylvania.

• Over 23,000 employees • 200 locations • $3.5 billion in sales in 2019

The first Weis Market was opened in 1912 in Sunbury by Harry and Sigmund Weis, two brothers with a revolutionary idea to operate their store through cash sales instead of credit – this permitted up to a 25% reduction in prices, which made the location explode in popularity. Today, Weis Markets has expanded to 200 locations. The company is 23,000 team members strong across all of its stores, corporate office, distribution center, and manufacturing facilities, including a 1.5 million square foot warehouse facility in Milton, PA.

The company emphasizes locally-sourced, quality foods and sustainable farming practices, and purchases more than 20 million pounds of locally grown produce from local Pennsylvania farmers annually. Weis Markets also processes its own milk and uses the excess butterfat produce their store brand ice cream - Weis Quality Ice Cream – which has over 50 unique flavors.

At its annual shareholders meeting, Weis Markets declared capital spending of $109 million for 2019, an $8 million increase from 2017. Planned investments include a new store in Bedminster, Pennsylvania, 14 store renovations, and the addition of six fuel centers. For fiscal year 2018, Weis Markets reported record sales of over $3.5 billion (a year-over-year increase of 1.2%), outpacing similar grocery stores in the region.

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7 Location Overview PROPERTY AERIAL

N 5TH STREET ISLAND STREET

N 4TH STREET

S 3RD STREET OLD ROUTE 22

T

STREE

CHURCH

PINE STREET

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9

100% Camera: 1,273 m 40°33'12"N 75°58'41"W 119 m RETAIL MAP

1 Hecky’s Sub Shop 2 Pizza Como 3 Creation Cabinetry 4 Hamburg Sweet Treats Adams & Bright Drug Store, 5 Hop Poh Chinese, The Blue Coast 6 Hamburg Strand Theater N 5TH STREET 7 Four Twelve ISLAND STREET 8 Hamburg Antiques Center 3

9 Wells Fargo N 4TH STREET 10 M&T Bank

11 Hello Again Boutique S 3RD STREET OLD 15ROUTE 22 12 Kurtz Florist 2 13 Necessities New & Used Furniture 14 Sabor Vapors 16 15 M&T Bank 16 Holiday Hair 17 17 Hamburg Coin Laundry 12 1 18 Fulton Bank 11 6 19 Hamburg Reptile Show 7 5 13 8 9 T

4 14

STREE 10

CHURCH

PINE STREET

19 18

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10

100% Camera: 1,273 m 40°33'12"N 75°58'41"W 119 m REGIONAL MAP

PORT CLINTON

BLUE 78 MOUNTAIN 1.25 MILES LAKE

EDENBURG

HAMBURG

78

61

WEST HAMBURG

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11

100% Camera: 11,093 m 40°34'18"N 75°55'39"W 189 m AREA OVERVIEW

The subject property is located in Hamburg Township, in Berks County. Industry Sector Employees The county is bordered by Schuylkill County to the north, Lebanon and Total, all industries 154,898 Lancaster Counties to the west, Lehigh County to the east, and Chester Service-providing 113,069 and Montgomery Counties to the south. Goods-producing 41,829 Berks County is centrally located within the Northeast Corridor, within an Education and health services 32,629 easy distance from New York City (125 miles), Baltimore (105 miles), and Trade, transportation, and utilities 32,322 Washington, DC (145 miles). One-third of the nation’s population resides Manufacturing 31,865 within a one-day drive of the County, making it a prime location for the Professional and business services 21,770 transport of goods and services. Leisure and hospitality 14,301 POPULATION Construction 6,877 The population of Berks County experienced strong growth in the 1990’s Financial activities 5,804 and maintained a growth rate well above the state average between 2000 Other services 5,329 and 2010. Population expansion slowed between 2010 and 2019, but Natural resources and mining 3,087 Berks County was still above the state average. Mining 914 Unemployment Rate 12.9% EMPLOYMENT & LABOR FORCE Source: Pennsylvania Department of Labor and Industry Berks County has the ninth-largest labor force in Pennsylvania. The civil- ian labor force was 225,000 as of July 2020. Unemployment, at 12.9% per- Pure manufacturing space has recently experienced a rebound in the re- cent, was still below the Pennsylvania average; unemployment rates were gion, and growth in warehouse and distribution and service sector indus- significantly higher than usual due to the COVID-19 pandemic. tries is generating substantial demand for warehouse, distribution and flex space. Berks County Pennsylvania Jul-20 Jul-20 Civilian Labor Force 225,000 6,453,000 Employment 195,900 5,567,000 Unemployment 29,100 886,000 Unemployment Rate 12.9% 13.7% Source: Pennsylvania Department of Labor and Industry

The education and health services sector is the largest private employer in Berks County. Trade, transportation, and utilities are major employment sectors as well, while manufacturing services remain noticeably strong. Professional services have become increasingly important, while leisure and hospitality also serve important roles in the economy.

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 12 LARGEST EMPLOYERS IN BERKS COUNTY TRANSPORTATION The largest sector employers represent a diversity of health care, Berks County has a superior transportation net- education services, and industrial companies. work. The Schuylkill Expressway, or Interstate 76 is a major east-west transportation link connecting Rank Name of Employer New Jersey to the beginnings of middle America, 1 East Penn Manufacturing Company and runs along its namesake river, intersecting the 2 Reading Hospital at King of Prussia and provid- 3 Carpenter Technology Corporation ing easy access to Harrisburg and other western points. 4 County of Berks The I-76 also provides access to Center City to 5 Reading School District the east. is another east-west route stretching from Leba- 6 Wal-Mart Associates Inc non County in the west and providing easy access to New York City. U.S. 7 Penske Truck Leasing Co LP Route 222 (US 222) is a spur of US 22. It runs for 95 miles Maryland at US 8 Tower Health Medical Group 1 northeast to Interstate 78 (I-78) and , where the US 222 right-of-way continues into Allentown as PA 222. US 222 serves 9 State Government as the principal artery between the Lancaster and Reading areas and the 10 Saint Joseph Medical Center . 11 Boscov’s Department Store LLC 12 Redner’s Tiger Markets LLC PUBLIC TRANSIT 13 Wilson School District Berks County is served by the Berks Area Regional 14 Ashley Furniture Industries Inc Transportation Authority, which operates a mass 15 Berks County Intermediate Unit transit bus system serving the city of Reading and 16 Giant Food Stores LLC its surrounding areas of the county. The organiza- 17 Federal Government tion provides 22 bus route services throughout the 18 PA State System of Higher Education county. 19 Alcon Research Ltd RAIL 20 Supportive Concepts for Families Norfolk Southern Railway is the main freight rail 21 Dolgencorp LLC provider through Berks County. Reading Blue 22 Santander Banks Mountain and Northern Railroad (RBM&N) and 23 Bear Creek Mountain Resort provide short line service. Nor- 24 The Reading Truck Group LLC folk Southern recently increased the speeds for 25 Morgan Truck Body LLC 30 miles of tracks between Muhlenberg Township Source: Pennsylvania Department of Labor and Industry and Allentown. This will enhance the efficiency of rail operations in Pennsylvania while improving the flow of vehicular traffic at the crossings. 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 13 SURROUNDED BY RESIDENTIAL HOMES WORLD’S LARGEST CABELA’S (1.2 MILES)

HAMBURG COMMERCE PARK (2.1 MILES) HAMBURG LOGISTICS PARK (2.5 MILES) The Hamburg Commerce Park is a proposed industrial campus being developed by The Situated at a prime location in the Lehigh Valley West Submarket, the proposed Hamburg Keith Corporation and Kiel Group. The 209.8-acre site plan features 2,176,880 square total Logistics Park is a 165-acre industrial park with three Class A buildings. The park is located feet of floor space, a 600,238 square foot speculative building under development, and a three miles south of Interstate 78 and over 2,000,000 square feet have been approved. The 1,000,200 square foot pad under construction. master plan provides a degree of flexibility for future tenant demand with the ability to • A signalized on Highway 61 at Logistics Drive will provide primary access provide suites with a wide range of floor space options. • Infrastructure in the park will include attractive landscaping, all utilities, street lighting, • Building 100: 336,000 SF • Building 200: 1,240,000 SF • Building 300: 324,000 SF and monument signage for each project and the park.

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14 Help DEMOGRAPHICS Feedback and support Sign Out Welcome, Virginia Chung - Sign Out HYDRA ? Feedback1 and mile support 3 miles 5 miles

2020 Total Population 4,633 8,979 15,098 +  Address Edit − POPULATION 2025 Projected Population 4,671 9,068 15,222  Radius or route options

Requests may not exceed 300 miles or 300 minutes 2020-2025 Projected (5Growth hours). 0.8% 1.0% 0.8%

2010-2020 Estimated GrowthRADIUS RINGS ROUTE1.3% OPTIONS 1.7% 1.5%

MILES 2020 Total Households 2,084 3,807 6,272

SOLID DONUTS HOUSEHOLDS 2025 Projected Households 2,099 3,840 6,318 Ring 1 Ring 2 Ring 3 2020-2025 Projected Growth1 3 0.7%5 0.9% 0.7%

2010-2020 Estimated GrowthAPPLY CLEAR 2.1%RINGS 2.6% 2.3%

2020 Average HouseholdSELECT Income REPORTS $64,839 $72,034 $75,465 INCOME 2020 Median Household Income $55,216 $60,641 $63,186  Report details 2020 Per Capita Income $28,903 $30,387 $31,279 CANCEL REPORT 2020 Total Housing Units 2,212 4,027 6,661

HOUSING 2020 Est. Owner-Occupied 59.2% 67.4% 69.8%

2020 Est. Renter-Occupied 35.0% 27.1% 24.3%

2020 Est. Vacant Housing 5.8% 5.5% 5.8%

EMPLOYMENT 2020 Est. Total Businesses 232 422 585

2020 Est. Total Employees 2,276 5,783 7,651

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 Confidentiality & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs of 552 State Street, Hamburg, PA. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. 4) If you are represented by a real estate broker, you will be responsible for their commission, if any, not Colliers International. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of 552 State Street or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 16 552 State Street

Scott Horner Derek Zerfass Vice President Senior Vice President [email protected] [email protected] +1 610 359 5869 +1 610 295 6125 COLLIERS INTERNATIONAL One Windsor This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties 7535 Windsor DriveSuite 208 of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all Allentown, PA 18195 552liability STATE for loss STREETand damages |arising OFFERING there from. ThisMEMORANDUM publication is the copyrighted property of Colliers International and/or its licensor(s). ©2019. All rights reserved. www.colliers.com/allentown COLLIERS INTERNATIONAL P. 17