CVS Pharmacy (Brand New 20-Year Lease Extension) 976 Main Street, Yarmouth, Massachusetts 02664

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OFFERING MEMORANDUM EXCLUSIVE NET - LEASE OFFERING 976 Main Street, Yarmouth, MA 02664 FINANCIAL OVERVIEW PRICE: $5,971,961 | 5.15% CAP | NOI: $307,556

PROPERTY DESCRIPTION HIGHLIGHTS Property CVS Pharmacy Property Address 976 Main Street ➢ Brand New 20-Year Lease Extension | 20+ Years Remaining on City, State, ZIP Yarmouth, MA 02664 the Lease Building Size (SF) 9,975 ➢ Long Term Commitment to the Site | CVS has Operated this Lot Size (Acres) +/- 2.04 THE OFFERING Location Since 1998 Rent $307,556 ➢ CVS Corporate Guaranty | Investment Grade Credit | “BBB+” CAP Rate 5.15% S&P Credit Rating Purchase Price $5,971,961 ➢ Ideally Located Just Minutes from the Famous Cape Cod Price / SF $598.69 Rent / SF $30.83 Beaches with Nearly Six Million Visitors Each Year LEASE SUMMARY Property Name CVS Pharmacy Property Type Net-Leased Pharmacy Tenant / Guarantor CVS Corporation Lease Term 20 Years Rent Commencement January 1, 1998 Lease Expiration January 31, 2039 Lease Term Remaining 20.5 Years Lease Type Double-Net (NN) Roof & Structure Landlord Responsible Option Period One, 10 Year Renewal Option Rent Increases Rare 10% Increase in Option

This information has Thisbeen securedinformationfrom sourceshas beenwesecuredbelieve tofrombe reliable,sourcesbutwewebelievemake notorepresentationsbe reliable, butor warranties,we make noexpressedrepresentationsor implied, asortowarranties,the accuracyexpressedof the informationor implied,. Referencesas to theto squareaccuracyfootageof theor ageinformationare approximate. References. Buyer mustto squareverify thefootageinformationor age are and bears all risk forapproximateany inaccuracies. Buyer. Any projections,must verifyopinions,the informationassumptionsandorbearsestimatesall riskusedforhereinanyareinaccuraciesfor example. Anypurposesprojections,only and opinions,do not representassumptionsthe currentor estimatesor future performanceused hereinofarethe forpropertyexample. Marcuspurposes& MillichaponlyRealandEstatedo notInvestmentrepresentServicesthe currentis a or 2 service mark of Marcusfuture& MillichapperformanceReal Estateof theInvestmentpropertyServices,. MarcusInc.&©Millichap2013 MarcusReal& MillichapEstate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap Y0331740 2 INVESTMENT SUMMARY FINANCIAL OVERVIEW The subject investment is a CVS Pharmacy located at 976 Main Street in Yarmouth, MA. This site was a built to suit for CVS in 1998 and they have ANNUALIZED OPERATING DATA operated at this location ever since. The location is compromised of Annual Rent $307,556 approximately 9,975 square feet of building space and sits on roughly 2.04 acres of land. RENT SCHEDULE CVS recently extended their lease early, showing their commitment to this Lease Year Annual Rent Monthly Rent site. As a result, there are more than 20 years remaining on the double net lease where the landlord is responsible for the roof and structure, as well as 8/1/2019 – 1/31/2039 $307,556 $25,630 parking lot maintenance. The tenant is responsible for non-structural Tenant Renewal Option repairs, utilities, HVAC system, CAM expenses, plus a 10% administration fee. Following the base term, the tenant shall have one, ten year renewal 2/1/2039 – 1/31/2049 $338,312 $28,193 option where the rent will increase by 10%.

TENANT SUMMARY Rent $307,556 CVS/Pharmacy is one of the nation's largest retail pharmacy chains, with CAP Rate 5.15% 7,700 stores located in 42 states, the District of Columbia, and Puerto Rico. With more than 40 years in the retail pharmacy industry, CVS/pharmacy Purchase Price $5,971,961 generates over 68 percent of its revenue from the pharmacy business. CVS/pharmacy fills more than one of every seven retail prescriptions in America and one of every five in their own markets. Their ExtraCare program boasts over 70 million cardholders, making it the largest retail loyalty program in the country.

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CVS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards, and convenience foods through their CVS/pharmacy and Long Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 1,100 MinuteClinic medical clinics as CVS Pharmacy is a subsidiary of the American retail and Health care well as their Diabetes Care Centers. Most of these clinics are company CVS Health, headquartered in Woonsocket, Rhode Island. It located within CVS stores. was also known as, and originally named the Consumer Value Store and was founded in Lowell, Massachusetts, in 1963. The chain was owned by its original holding company Melville Corporation since its inception until its current parent company CVS Health was spun off into its own company in 1996. CVS Pharmacy is currently the largest pharmacy chain in the United States by number of locations (over 9,600 as of 2016) and total prescription revenue. As the retail pharmacy division of CVS Health, it ranks as the 7th largest U.S. corporation according to Fortune 500 in 2016. CVS/pharmacy's leading competitor Walgreens Boots Alliance is ranked 37th.

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MinuteClinics are staffed by nurse practitioners and physician assistants who specialize in family health care, and are trained to diagnose, treat, and write prescriptions for minor acute illnesses such as strep throat and ear, eye, sinus, bladder, skin, Representative Photo Representative Photo and lung infections. Vaccinations, such as influenza, tetanus- pertussis, pneumovax, and Hepatitis A & B are available at all locations.

About the Area Located on Cape Cod, Massachusetts, the Town of Yarmouth is home to many beautiful salt water and fresh water beaches. During the summer season, the beaches are open and crowded everyday. The town of Yarmouth has a vibrant and exciting culture, there are always festivities to attend, such as art shows, concerts, museums and historical site showings. From souvenirs to essentials, collectibles to consumables, and items for home and hearth, visitors can find a variety of stores in downtown Yarmouth to satisfy their shopping needs.

Cape Cod is a well-traveled tourist and vacation area, featuring miles of beaches, natural attractions, historic sites, art galleries and many four star restaurants. With over six million visitors each year, Cape Cod is home to numerous opportunities including golfing, fishing, biking, relaxing, hiking, and many other outdoor activities.

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10 Miles 3 Miles 5 Miles 10 Miles POPULATION 2022 Projection 18,739 36,753 90,635 2017 Estimate 18,538 36,346 89,746 2010 Census 18,907 36,916 90,790 2000 Census 20,223 39,155 95,873 5 Miles INCOME Average $81,760 $79,569 $82,061 3 Miles Median $64,519 $61,555 $62,416 Per Capita $38,917 $37,245 $37,719

HOUSEHOLDS 2022 Projection 8,948 17,259 41,854 2017 Estimate 8,800 16,958 41,088 2010 Census 8,961 17,191 41,462 2000 Census 9,372 17,804 42,234

HOUSING 2017 $353,196 $350,019 $360,084

EMPLOYMENT 2017 Daytime Population 19,229 36,713 98,506 2017 Unemployment 6.58% 7.50% 7.08% 2017 Median Time 25 Mins 25 Mins 24 Mins Traveled

RACE & ETHNICITY White 94.16% 92.16% 89.31% Native American 0.07% 0.04% 0.05% African American 1.81% 2.42% 3.28% Asian/Pacific Islander 0.95% 1.13% 1.44%

This information has been secured from sources we believe to be reliable, 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, assumptions or estimates used herein are for example purposes only and do not represent the current or 10 future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap Y0331740 Marcus & Millichap hereby advises all prospective purchasers be set based on a tenant’s projected sales with little or no asbestos, the compliance with State and Federal regulations, of Net Leased property as follows: record of actual performance, or comparable rents for the the physical condition of the improvements thereon, or the area. Returns are not guaranteed; the tenant and any financial condition or business prospects of any tenant, or any The information contained in this Marketing Brochure has guarantors may fail to pay the lease rent or property taxes, or tenant’s plans or intentions to continue its occupancy of the been obtained from sources we believe to be reliable. may fail to comply with other material terms of the lease; cash subject property. The information contained in this Marketing However, Marcus & Millichap has not and will not verify any of flow may be interrupted in part or in whole due to market, Brochure has been obtained from sources we believe to be this information, nor has Marcus & Millichap conducted any economic, environmental or other conditions. Regardless of reliable; however, Marcus & Millichap has not verified, and investigation regarding these matters. Marcus & Millichap tenant history and lease guarantees, Buyer is responsible for will not verify, any of the information contained herein, nor makes no guarantee, warranty or representation whatsoever conducting his/her own investigation of all matters affecting has Marcus & Millichap conducted any investigation regarding about the accuracy or completeness of any information the intrinsic value of the property and the value of any long- these matters and makes no warranty or representation provided. term lease, including the likelihood of locating a replacement whatsoever regarding the accuracy or completeness of the tenant if the current tenant should default or abandon the information provided. All potential buyers must take As the Buyer of a net leased property, it is the Buyer’s property, and the lease terms that Buyer may be able to appropriate measures to verify all of the information set forth responsibility to independently confirm the accuracy and negotiate with a potential replacement tenant considering the herein. completeness of all material information before completing location of the property, and Buyer’s legal ability to make any purchase. This Marketing Brochure is not a substitute for alternate use of the property. NON-ENDORSEMENT NOTICE your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services, Inc. obligation to conduct a due diligence examination of this Marcus & Millichap Real Estate Investment Services and hold it (“M&M”) is not affiliated with, sponsored by, or endorsed by Property for Buyer. harmless from any kind of claim, cost, expense, or liability any commercial tenant or lessee identified in this marketing arising out of your investigation and/or purchase of this net package. The presence of any corporation’s logo or name is Any projections, opinions, assumptions or estimates used in leased property. not intended to indicate or imply affiliation with, or this Marketing Brochure are for example only and do not sponsorship or endorsement by, said corporation of M&M, its represent the current or future performance of this property. CONFIDENTIALITY AND DISCLAIMER affiliates or subsidiaries, or any agent, product, service, or The value of a net leased property to you depends on factors commercial listing of M&M, and is solely included for the that should be evaluated by you and your tax, financial and The information contained in the following Marketing purpose of providing tenant lessee information about this legal advisors. Brochure is proprietary and strictly confidential. It is intended listing to prospective customers. to be reviewed only by the party receiving it from Marcus & Buyer and Buyer’s tax, financial, legal, and construction Millichap and should not be made available to any other ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. advisors should conduct a careful, independent investigation person or entity without the written consent of Marcus & PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR of any net leased property to determine to your satisfaction Millichap. This Marketing Brochure has been prepared to MORE DETAILS. with the suitability of the property for your needs. provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest Like all real estate investments, this investment carries in the subject property. The information contained herein is significant risks. Buyer and Buyer’s legal and financial advisors not a substitute for a thorough due diligence investigation. must request and carefully review all legal and financial Marcus & Millichap has not made any investigation, and documents related to the property and tenant. While the makes no warranty or representation, with respect to the tenant’s past performance at this or other locations is an income or expenses for the subject property, the future important consideration, it is not a guarantee of future projected financial performance of the property, the size and success. Similarly, the lease rate for some properties, including square footage of the property and improvements, the newly-constructed facilities or newly-acquired locations, may presence or absence of contaminating substances, PCB’s or CVS – 976 Main Street, Yarmouth, Massachusetts 02664

Tim Thompson Title: Broker of Record M&M REIS of Atlanta Inc 100 High Street, Suite 1025 Boston, MA 02110 Tel: 617-896-7200 Fax: 617-896-7210 License: 151664