OFFERING MEMORANDUM

WALGREENS , MD

Actual Site

Andrew Fallon Executive Managing Director 703.787.4733 | [email protected] Walgreens | Financial Summary

Asking Price Cap Rate Investment Highlights $3,335,000 6.00% •• Historic trophy building recognized as the Chicago Title Building •• Ground floor retail condo; Walgreens responsible for 100% of unit costs 17 E Fayette Street •• Irreplaceable real estate; high barriers to entry, corner location Baltimore, MD 21202 •• Recent 7 year lease extension shows tenant’s commitment to the location •• Long-term occupancy & operating history since 2000 Asset Summary •• Investment “BBB” grade credit rating •• Hard corner, signalized intersection with traffic counts of 10,781 VPD Annual Rent $200,000

Rent/Month $16,666.67

Rent/SF $17.75

First Floor 9,452+/- SF

Basement 1,817+/- SF

Total Square Feet 11,270+/- SF

Land Area 10,058+/- SF

Stock Symbol NYSE: WBA

Guarantor Corporate

Ownership Type Fee Simple Condo

Lease Type NN

Landlord Responsibilities Roof & Structure

Store Opened 2000

Lease Term Remaining 9 Years

Rent Commencement December 2, 2000 Lease Expiration December 31, 2027 (New 7 Year Extension) Options Eight (8), Five (5) Year

Increases Rent Remains Constant

Calkain Companies | 2 Tenant Overview

About Walgreens Walgreens is an American pharmaceutical company which operates the largest drug retailing chain in the United States of America. It specializes in serving prescriptions, health & wellness products, health information and photo services. As of June 28, 2018, the company operated 9,800 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office is in the •• Walgreens filled 990 million prescriptions Chicago suburb of Deerfield, Illinois. (including immunizations) on a 30-day ad- justed basis in fiscal 2017 In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging the first •• Total number of Walgreens employees are global pharmacy-led, health and wellbeing enterprise. The combination brought more than 235,000 people together two leading companies with iconic brands, complementary geographic •• Walgreens has more than 78,000 healthcare footprints, shared values and a heritage of trusted health care services through service providers, including pharmacists, community pharmacy care and pharmaceutical wholesaling. Both companies pharmacy technicians, nurse practitioners have more than a century’s worth of experience in customer and patient care. and other health-related professionals Walgreens is today part of the Retail Pharmacy USA division of Walgreens •• As of August 2017, approximately 76% of Boots Alliance. Walgreens provides access to consumer goods and services, the population of the USA lives within five plus pharmacy, photo studio, health and wellness services in the United States miles of a Walgreens or Duane Reade store through its retail drugstores, Walgreens Health Services division, and Walgreens Health and Wellness division.

Tenant # of Locations Stock Symbol Credit Rating 2017 Revenue 9,800 NYSE: WBA S&P: BBB $27.51B Snapshot Calkain Companies | 3 Location Overview

Subject Site

95 Frederick, MD

Baltimore, MD

270 Columbia, MD 695

95

Annapolis, MD Herndon, VA Washington, DC 66

Hollywood

Columbia, MD 21 miles Washington, DC 32 miles Distance To Annapolis, MD 32 miles Frederick, MD 50 miles

Calkain Companies | 4 17 E Fayette Street | Baltimore, MD 21202

Subject Site

83 Jo ne s Fa ll E x p y 5 6 , 0 0 0 Paterson Park V P D

Inner Harbor

Keep all map content (except background) above this margin for website cropping purposes 395 Federal Hill Fells Point

Stre or et f V k c i Location Hard Corner 20,000 VPD 1,500+ Revitalized e i

l

w

C

Location Pass the Site Apartment Units

Highlights

17 E Fayette Street | Baltimore, MD 21202

395

Baltimore Harbor

Subject Site

Lexington Market

Holocaust 10,000 VPD Memorial Park E Fayette St N Calvert St Keep all N Charles St map content (except background) 19.911VPD above this margin for City Hall 10,781 VPD website cropping purposes

Jone s Falls Expy 56,4 50 VPD Location Overview, 1/3/5 Miles

1 Mile 3 Miles 5 Miles Population 2018 Population 44,199 272,870 551,501 2023 Population 44,710 273,241 550,970 2017 Median Age 32.4 33.8 35.1 Households 2018 Total Households 20,526 113,278 220,477 2023 Total Households 20,881 113,848 220,489 Median Household Income 2018 Median HH Income $40,639 $40,639 $40,375 2023 Median HH Income $48,513 $48,513 $42,474 Average Household Income 2018 Average HH Income $64,610 $59,984 $60,106 2023 Average HH Income $77,295 $69,366 $68,210

5 Mile Radius | Demographics

Population Median Age Avg HH Income 551,501 35.1 $60,106

Total Businesses Total Employees 18,841 330,727

Calkain Companies | 7 Market Overview

Baltimore, MD Growth and Development 225 N Calvert St (346 units) Strategically located in the Mid-Atlantic region, and accessible by port, rail, air and Introducing Baltimore’s newest high-rise apartments, 225 highway, Baltimore City is a dynamic urban center fueled by a diverse economy. N Calvert has impressive amenities from the lobby to the Among major U.S. metros, Baltimore ranks 9th in downtown population and 12th rooftop, offering open layouts with views of the cityscape in downtown employment, and has experienced rapid growth in the well-educated from your private balcony. It is an ideal, central location that young-adult population. puts you within easy reach of the city’s exciting restaurants, lively nightlife, sporting events, museums, and more. Baltimore is a city of 80 square miles and accounts for 23 percent of the region’s total population. The city is home to 13 colleges and universities, including The Equitable Building (189 units) internationally recognized Johns Hopkins and University of Baltimore. The Equitable Building is the oldest skyscraper in Professional sports teams, historic and cultural resources, and major employers and is now the newest. The in the health care, information and cybersecurity, finance and banking, and offices-to-apartment conversion cost $30 million. The hospitality and entertainment industries also call the city home. building now offers elegant and innovative apartments with a sense of history as colorful and intriguing as Baltimore itself. Major Office-to-Apartment Conversions within a few blocks of the property One Light Street (419 Units) The 28-story mixed-use tower is being developed by Madison Marquette and combines luxury residential apartments, Class-A office space and 5,000 square feet ground floor retail space. Sheathed in a dramatic glass curtain-wall, the development offers nine floors of modern, virtually column-free office space topped by280 luxury apartments with sweeping views of the Inner Harbor and Baltimore skyline. The building is designed to achieve a LEED Silver designation for new construction.

2 Hopkins Plaza (182 Luxury Apartments) The luxury apartments at 2 Hopkins Plaza are a brand-new residence inspired by Baltimore’s long history of boldness and optimism. It represents the best of what Baltimore has been and the best of what it will become. The Residences at 300 St. Paul (280 Units) Adjacent to Preston Gardens Park, it is a quick walk to the and MICA, Peabody Institute, and Mercy Hospital, and is convenient to Baltimore’s famed Inner Harbor, Camden Yards, M&T Bank Stadium, Penn Station, and other forms of public transportation. Additionally, St. Paul is steps away from Starbucks and nearby dining choices include Maisy’s, Cazbar, Lumbini, and Ban Thai. 26 Calvert (168 Units) 26 Calvert is ideally situated just minutes from Baltimore’s Inner Harbor and the city’s best shopping, restaurants, nightlife, and employers. Calkain Companies | 8 Market Overview

Baltimore, MD Founded in 1729, Baltimore is the second-largest seaport in the Mid- Baltimore - the colorful, diverse city Atlantic. The city’s Inner Harbor that is Maryland’s largest city and was once the second leading port of economic hub, is known for its beautiful entry for immigrants to the United harbor; quirky, distinct neighborhoods; States and a major manufacturing unique museums and the world- center. After a decline in major renowned Johns Hopkins Hospital to manufacturing, industrialization, and the east and the University of Maryland rail transportation, Baltimore shifted Medical Center to the west. With the to a service-oriented economy, with rich history the city boasts however, Johns Hopkins Hospital (founded it’s amazing that Baltimore hasn’t been 1889) and Johns Hopkins University deemed one of America’s greatest (founded 1876), now the city’s top two historical destinations. Metropolitan Population employers. Baltimore’s population of 611,648 With hundreds of identified districts, 2.8Million in 2017, Baltimore is the largest Baltimore has been dubbed a “city of 20th Largest Metro Area independent city in the United neighborhoods”. Famous residents States. As of 2017, the population have included writers Edgar Allan Poe, of the Baltimore metropolitan area Edith Hamilton, Frederick Douglass, was estimated to be just under 2.808 Attractions Sports and H. L. Mencken; jazz musician James million, making it the 20th largest “Eubie” Blake; singer Billie Holiday; Baltimore’s Inner Harbor is an Peanut butter and jelly, apple pie and metropolitan area in the country. actor and filmmaker John Waters; and attraction in itself. But, surrounding this ice cream, Baltimore and sports – some Baltimore is located about 40 miles baseball player Babe Ruth. In the War urban waterfront park, you’ll discover things just go together. Baltimoreans (60 km) northeast of Washington, of 1812, Francis Scott Key wrote The a number of family-friendly places to take their sports seriously. Today, D.C., making it a principal city in the Star-Spangled Banner, which later visit. The National Aquarium features sports fans flock to Oriole Park at Washington-Baltimore combined became the American national anthem, more than 16,000 animals, from sharks Camden Yards, the first of the new statistical area (CSA), the fourth largest in Baltimore. to a giant sea turtle, while the Maryland breed of retro ballparks, to cheer on CSA in the nation with a calculated Science Center’s highlights include the O’s or the Birds as they are known 2017 population of 9,764,315. two-story dinosaurs and interactive locally. exhibits to keep the kids busy. The Port The city’s love affair certainly extends Discovery Children’s Museum features to the NFL’s Baltimore Ravens. You also more activities for the little ones, and, can catch indoor soccer’s Baltimore a short ride away, the Maryland Zoo Blast, wildly popular collegiate lacrosse Median Property Value in Baltimore’s Druid Hill Park engages (you’ll find the National Lacrosse Hall of young and young at heart with the Fame here); the , the $569,700 giraffe-feeding station and much more. middle jewel of racing’s Triple Crown; 5.83% Growth And, if it’s the unexpected you seek, collegiate football, and international you’ll be talking about the oddities in soccer “friendlies.” Ripley’s Believe or Not! for weeks!

Calkain Companies | 9 About Us Calkain 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.

$12 Billion $400 Million Building a solid foundation for your investment portfolio in Closed Transactions in Active Listings calkain.com

Washington, DC Fort Lauderdale Atlanta Boston Philadelphia New York 12930 Worldgate Dr 200 SW 1st Ave 111 Village Pkwy, Bldg 2 101 Federal St 3477 Corporate Pkwy 205 E 42nd St Ste 150 | Herndon, VA Ste 880 | Fort Lauderdale, FL Ste 202 | Marietta, GA Ste 1900 | Boston, MA Ste 100 | Center Valley, PA 14th Fl | New York, NY Tel: 703.787.4714 Tel: 813.282.6000 Tel: 404.900.5629 Tel: 617.261.8584 Tel: 610.410.5410 Tel: 646.736.5783

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.