CVS PHARMACY 13 PORT WATSON ST, CORTLAND, NEW YORK & 345 MAIN ST, JOHNSON CITY, NEW YORK Lake Ontario ¤£11 FULTON

TWO SINGLE TENANT CVS PHARMACIES LOCATED IN NEW YORK

CORTLAND, NY JOHNSON CITY, NY CVS PHARMACY 13 PORT WATSON ST, CORTLAND, NEW YORK & 345 MAIN ST, JOHNSON CITY, NEW YORK Lake Ontario ¤£11 FULTON

GREECE IRONDEQUOIT ROME 81 Oneida Lake INVESTMENT ADVISORS ROCHESTER

MARC MANDEL490 BRIGHTON ONEIDA ¦¨§490 UTICA Managing Director SYRACUSE 90 484.532.4212 CORTLAND, NY BATAVIA AUBURN [email protected] FARMINGTON ¤£20

¤£20A STEVE SCHRENK ¤£20A Director 484.532.4213 [email protected] CORTLAND 390¦¨§390

DEBT ADVISOR ¦¨§8181 MIKE PAGNIUCCI ITHACA Director ONEONTA 484.532.4172 88 ¦¨§8686 [email protected]

CORNING

BINGHAMTON OLEAN ELMIRA 86 NEW YORK JOHNSONPENNSYLVANIA CITY, NY

¤£6 ¤£11 Holliday Fenoglio Fowler, L.P. (“HFF”), a New York licensed real estate broker.

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective ¤£209 equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property¤£15 or the Owner has occurred since the ¤£date220 of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. Lake Ontario ¤£11 FULTON

GREECE IRONDEQUOIT ROME 81 Oneida Lake ROCHESTER

490 BRIGHTON ONEIDA ¦¨§490 SYRACUSE UTICA 90

BATAVIA FARMINGTON AUBURN

¤£20

¤£20A

CORTLAND 390¦¨§390

¦¨§8181

ITHACA ONEONTA 88

¦¨§8686

CORNING

BINGHAMTON OLEAN ELMIRA 86 NEW YORK PENNSYLVANIA

¤£6 ¤£11

¤£209 JOHNSON CITY, NY ¤£15 ¤£220 INVESTMENT SUMMARY CVS PHARMACY | JOHNSON CITY & CORTLAND | NEW YORK · · ·

INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire Two CVS Pharmacies (the “Properties”) with 10 and 5 years of remaining lease term, located in upstate NY. Both locations have been at their respective locations since 1998 and recently both locations signed lease extensions showing long term commitment to the sites. The Properties currently have financing in place giving the purchaser an option to assume the current loan. CVS is the largest healthcare provider in the U.S. with more than 250,000 employees and over 9,700 stores. CVS Pharmacy serves over 5 million customers a day and has a market cap of over $74 billion. 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 Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 1,100 Minute Clinic medical clinics as well as their Diabetes Care Centers. Offers are encouraged on a portfolio and individual basis.

13 PORT WATSON ST 345 MAIN ST CORTLAND, NY JOHNSON CITY, NY $3,175,551 $3,488,400 ASKING PRICE ASKING PRICE CORTLAND, NY 6.15% 6.75% CAP RATE CAP RATE $195,288 $235,467 NOI NOI 10 Years 5 Years REMAINING LEASE TERM JOHNSON CITY, NY REMAINING LEASE TERM

4 Investment Summary CVS PHARMACY | · · ·

ASSUMABLE FINANCING

ASSUMABLE DEBT LENDER TYPE RATES AS OF 10/30/2018 WELLS FARGO (CMBS)

LTV/Loan Balance: $3,990,000 5 Yr. Treasury 2.921% Rate Type: Fixed-rate 7 Yr. Treasury 3.009% Monthly Debt Service Payment: $21,770 10 Yr. Treasury 3.086% Interest Rate (as of 10/30/2018): 4.695% Loan Maturity Date 8/06/2025 5 Yr. Swap 3.073% Term: 6 Yrs, 11 Mos remaining 7 Yr. Swap 3.096% Amort: 30 Years 10 Yr. Swap 3.154% Interest Calculation: Act/360 Recourse: Non-recourse Prepayment Penalty: Defeasance

INDICATIVE FINANCING TERMS

LENDER TYPE BANK CMBS

LTV/Loan Balance: 70% 70% 70% 75% Rate Type: Fixed-rate Fixed-rate Fixed-rate Fixed-rate Spread: 1.75% 1.75% 1.95% 2.00% Index: 5 Yr. Treasury 7 Yr. Treasury 10 Yr. Swap 10 Yr. Swap Interest Rate (as of 10/30/2018): 4.67% 4.76% 5.10% 5.15% Term: 5 Years 7 Years 10 Years 10 Years Interest-only: - - 2-3 Years - Amort: 30 Years 30 Years Interest Calculation: Act/360 Act/360 Recourse: Non-recourse Non-recourse Prepayment Penalty: Swap Breakage of Stepdown Defeasance

| CVS PHARMACY Investment Summary 5 CORTLAND, NY TENANT OVERVIEW CVS PHARMACY | JOHNSON CITY & CORTLAND | NEW YORK · · ·

CVS is the largest healthcare provider in the U.S. with more than 250,000 employees and over 9,700 stores. CVS Pharmacy serves over 5 million customers a day and has a market cap of over $74 billion. CVS sells prescription CORPORATE OVERVIEW 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 Headquarters Woonsocket, RI their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 1,100 Minute Clinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. The Minute Clinic boasts 34,000,000 patient visits annually and records $40 Ticker CVS (NYSE) billion in specialty drug revenue. CVS operates through the following segments: Pharmacy Services, Retail or Long Term Care, and Corporate. The company was founded by Stanley P. Goldstein and Ralph Hoagland in 1963 and is headquartered in Woonsocket, RI. In December CVS Health announced that its merger with Aetna. Aetna is one of the nation’s leading diversified Baa1 health care benefits companies. This transaction fills an unmet need in the current health care system and presents MOODY’S CREDIT RATING a unique opportunity to redefine access to high-quality care in lower cost, local settings whether in the community, at home, or through digital tools. “This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members’ 9,700 health goals, guide them through the health care system and help them achieve their best health,” said Mark T. LOCATIONS IN THE UNITED STATES Bertolini, Aetna chairman and CEO. Together, CVS Health and Aetna will be a trusted community partner who will help consumers better manage the cost of the health care they need. The combined company will also be well positioned to more effectively meet the $77.55 BILLION health needs of many more people. MARKET CAP AS OF 9/2018 www.cvs.com

| CVS PHARMACY Tenant Overview 7 CORTLAND, NY CVS PHARMACY 13 PORT WATSON STREET | CORTLAND | NEW YORK · · ·

CVS CORTLAND INVESTMENT HIGHLIGHTS

The Property is located on Port Open since 1998 at this location, Watson St with exposure to over Minimal deferred maintenance at this Corporate Guaranteed CVS 15,880 VPD and is entrenched in a the property due to the all brick Pharmacy features 10 years neighborhood with a population of construction remaining lease term over 16,300 within a 1-mile radius

The property is positioned CVS Pharmacy is an Investment approximately 0.6 miles from Grade Tenant and the largest SUNY Cortland which has a student Pharmacy Chain by market share in population of over 6,900 the US in 2017

| CVS PHARMACY Tenant Overview 9 · · ·

CVS CORTLAND MARKET AERIAL

81 81

CORTLAND COUNTY AIRPORT PORT WASHINGTON STREET - 15,880 VPD

MAIN STREE T - 3,404 VPD 3,404 - T STREE MAIN

SUNY CORTLAND 6,346 Students W ROAD 1,400 Employees

TOMPKINS STREET CORTLAND JR SENIOR HIGH SCHOOL

10 Tenant Overview CVS PHARMACY | · · ·

LEASE ABSTRACT - CORTLAND, NY

LEASE DETAIL 13 Port Watson Street $3,175,551 6.15% Address Cortland, NY Asking Price Cap Rate

Tenant CVS Pharmacy TENANT RESPONSIBILITY DETAIL

CVS Corporation Tenant agrees to at its sole cost to take good care of the premises Guarantor Maintenance and and shall replace all broken glass, and shall do all work to maintain Repairs the premises in good working order, maintain its storefront, the HVAC Lot Area 1.04 Acres system, and fire sprinkler system

Building Size 10,125 SF Parking Lot Tenant agrees to reimburse landlord for maintenance costs incurred for Maintenance maintaining the parking lot; except for capital improvements made Year Built 1998 Tenant agrees to reimburse landlord for the cost of the insurance Insurance required to be maintained under the lease. Tenant shall also carry Annual Rent $195,288 General Liability insurance throughout the term of the lease. Tenant agrees to reimburse landlord for real estate taxes and Lease Type Fee Simple: NN Taxes assessments levied against the property Tenant agrees to pay for all utilities consumed on the premises Rent Commencement 11/30/1998 Utilities In addition to annual fixed rent, if, in any calendar year, the annual gross Lease Expiration 1/31/2029 Percentage Rent sales shall exceed the breakpoint, the tenant shall pay 2% of gross sales as additional rent Remaining Lease Term 10.25 Years Tenant agrees to furnish to landlord, within 60 days immediately Sales Reporting following the end of the calendar year, a statement of gross sales for Remaining Options Three (3) Five (5) Year Options the preceding calendar year

RENT SCHEDULE LANDLORD RESPONSIBILITY DETAIL

Description Dates Annual Rent Rent Increase Landlord shall make all necessary repairs, maintenance, or replacements Maintenance and to, the exterior and structural portions of the premises; including the roof, roof supports, flashings, gutters, downspouts, footings, Current Term (Years 1-10) 2/1/2019 - 1/31/2029 $195,288 Repairs foundations, structural supports, columns, exterior walls, retaining walls, loading docks, plumbing, pipes, and utility lines. Second Option (Years 11 - 15) 2/1/2029 - 1/31/2034 $210,920 8.00% Parking Lot Landlord shall properly maintain the parking areas which shall consist Third Option (Years 16 - 20) 2/1/2034 - 1/31/2039 $227,793 8.00% of prompt repairing, re-striping, and resealing, repair of all curbing, Maintenance removal of snow and ice, landscaping, repaving or resurfacing Fourth Option (Years 21 - 25) 2/1/2039 - 1/31/2044 $246,017 8.00% Landlord shall carry All-Risk and General Liability insurance for the Insurance premises

| CVS PHARMACY Financial Analysis 11 · · ·

SITE PLAN - CORTLAND, NY

PORT WASHINGTON STREE T

Drive Thru ANSRET STREE MAIN

12 Financial Analysis CVS PHARMACY | · · ·

CLOSE UP AERIAL - CORTLAND, NY

Randall Elementary School

Cortland Repertory PORT WATSON ST - 15,880 VPD Cortland Standard Theatre

MAIN STREET - 3,404 VPD

PROPERTY LINE

| CVS PHARMACY Financial Analysis 13 · · ·

CORTLAND OVERVIEW Cortland is located in the glaciated Appalachian Plateau area of Central New York State, midway between Syracuse and Binghamton, this predominantly rural county is the southeastern gateway to the Finger Lakes Region. A handful of industry sectors are critical to Cortland County’s potential for growth and prosperity including Manufacturing that capitalizes on the county’s hardworking, educated workforce; Distribution, which relies on the county’s central location and easy access to major highway and rail infrastructure; Research and Development, which can access the surplus of technical and research expertise; Agriculture, a sector with a strong local tradition; and Tourism. Cortland is also home to SUNY Cortland which has a student population of 6,346. The University first opened in 1868 and is a four-year college with over 67 majors offered. The campus sits on over 191 acres and 50% of the student body lives on campus. The university employs 619 instructional faculty, and over 1,400 total employees. The University offers 25 intercollegiate athletic teams and have won national team championships and nearly 100 individual national titles.

CORTLAND STANDARD SUNY CORTLAND

14 Financial Analysis CVS PHARMACY | · · ·

UV11A TRADE AREA DEMOGRAPHICS ¦¨§8181

POPULATION TULLY UV41 3 MILES 5 MILES 10 MILES UV41A 2010 Census 27,720 32,881 49,602 SCOTT 2019 Estimate 26,659 31,686 48,526 UV38A 26,402 31,387 48,330 2024 Projection SEMPRONIUS 10 MILES

38 UV TRUXTON HOUSEHOLDS 3 MILES 5 MILES 10 MILES 2010 Census 10,391 12,398 18,783 UV281 2019 Estimate 9,880 11,862 18,364 5 MILESHOMER 2024 Projection 9,725 11,700 18,267 UV90 2018 Est. Average Household Income $68,053 $71,130 $74,434 3 MILES 2018 Est. Median Household Income $51,851 $54,492 $58,385 CORTLAND SOLON

UV222 MCGRAW

£¤11 FREEVILLE UV26 ¦¨§8181

DRYDEN UV392

UV34 UV38

ITHACA UV26 UV96B UV221

CORTLAND, NY

| CVS PHARMACY Financial Analysis 15 JOHNSON CITY, NY CVS PHARMACY 345 MAIN STREET | JOHNSON CITY | NEW YORK · · ·

CVS JOHNSON CITY INVESTMENT HIGHLIGHTS

The property is positioned CVS has been open for over 20 immediately off Interstate 86, Due to the all brick construction, years at this location; this store which is the main East/West this building will have minimal features a Corporate Guarantee Corridor Across Southern NY with deferred maintenance from CVS Pharmacy over 52,057 VPD

The Property is located on Main Street CVS Pharmacy is an Investment with exposure to over 12,000 VPD and Grade Tenant and the largest is directly across the street from UHS Pharmacy Chain by market share in Wilson Medical Center and surrounded the US in 2017 by various medical facilities

280 Bed Hospital with a 24 hour Trauma Center

| CVS PHARMACY FINANCIAL ANALYSIS 17 · · ·

CVS JOHNSON CITY MARKET AERIAL

TRADITIONS HARRY L DRIVE AT THE GLEN

NORTHSIDE PARK

SOUTHERN TIER EXPY

MAIN STREET - 12,000 VPD

GRAND AVENUE

18 FINANCIAL ANALYSIS CVS PHARMACY |

FLORAL AVENUE SOUTHSIDE PARK · · ·

LEASE ABSTRACT - JOHNSON CITY, NY

LEASE DETAIL 345 Main Street $3,488,400 6.75% Address Johnson City, NY Asking Price Cap Rate

Tenant CVS Pharmacy TENANT RESPONSIBILITY DETAIL

Building Size 10,125 SF Parking Lot Tenant agrees to reimburse landlord for maintenance costs incurred for Maintenance maintaining the parking lot; except for capital improvements made Year Built 1998 Tenant agrees to reimburse landlord for the cost of the insurance Insurance required to be maintained under the lease. Tenant shall also carry Annual Rent $235,467 General Liability insurance throughout the term of the lease. Tenant agrees to reimburse landlord for real estate taxes and Lease Type Fee Simple: NN Taxes assessments levied against the property Tenant agrees to pay for all utilities consumed on the premises Rent Commencement 7/12/1998 Utilities In addition to annual fixed rent, if, in any calendar year, the annual gross Lease Expiration 1/31/2024 Percentage Rent sales shall exceed the breakpoint, the tenant shall pay 2% of gross sales as additional rent Remaining Lease Term 5.25 Years Tenant agrees to furnish to landlord, within 60 days immediately Sales Reporting following the end of the calendar year, a statement of gross sales for Remaining Options Three (3) Five (5) Year Options the preceding calendar year

LANDLORD RESPONSIBILITY DETAIL RENT SCHEDULE Landlord shall make all necessary repairs, maintenance, or replacements Maintenance and to, the exterior and structural portions of the premises; including Description Dates Annual Rent Rent Increase the roof, roof supports, flashings, gutters, downspouts, footings, Repairs foundations, structural supports, columns, exterior walls, retaining walls, loading docks, plumbing, pipes, and utility lines. Current Term (Years 1 - 5) 2/1/2019 - 1/31/2024 $235,467 Parking Lot Landlord shall properly maintain the parking areas which shall consist First Option (Years 6 - 10) 2/1/2024 - 1/31/2029 $267,604 13.65% of prompt repairing, re-striping, and resealing, repair of all curbing, Maintenance removal of snow and ice, landscaping, repaving or resurfacing Second Option (Years 11 - 15) 2/1/2029 - 1/31/2034 $289,069 8.02% Landlord shall carry All-Risk and General Liability insurance for the Third Option (Years 16 - 20) 2/1/2034 - 1/31/2039 $312,154 7.99% Insurance premises

| CVS PHARMACY FINANCIAL ANALYSIS 19 · · ·

SITE PLAN - JOHNSON CITY, NY Drive Thru Drive

MAIN STREET

20 FINANCIAL ANALYSIS CVS PHARMACY | · · ·

CLOSE UP AERIAL - JOHNSON CITY, NY

280 Bed Hospital with a 24 hour Trauma Center

MAIN STREET - 12,000 VPD

PROPERTY LINE

| CVS PHARMACY FINANCIAL ANALYSIS 21 · · ·

JOHNSON CITY OVERVIEW Johnson City was originally incorporated in 1892 as the village of Lestershire, In 1916, the village was renamed Johnson City in honor of George F. Johnson, who led the company that was by then known as Endicott Johnson. The construction of Route 17 in 1967, was an important part in the development of the Village in the 1970’s and 1980’s which led to development and increased accessibility in the area. The Oakdale Mall, the first regional shopping center in Broome County comprising some 900,000 square feet of floor space, was constructed off one of the Village’s interchanges in 1975. The success of the Oakdale Mall lead to other developments in that area of the Village including the Giant Oakdale Plaza, the Johnson City Plaza, Wegmans Supermarket and the construction of four hotels. Johnson City is also the future home of the Binghamton University School of Pharmacy and Pharmaceutical Sciences which is scheduled to open in 2018 and the Decker School of Nursing. UHS Wilson Medical Center located directly across the street from the property is designated as a 24-hour trauma, stroke and chest pain center, a is a 280-bed medical clinic facility centrally located in Johnson City. It is a regional referral center for such high-level medical and surgical services as cardiac surgery, neurosurgery and neurosciences, cancer care, emergency care, maternity and high-risk obstetrics, neonatal intensive care, ambulatory surgery, diabetes education and care, blood disorders treatment, and physical therapy and rehabilitation. It trains physicians through a long-standing and highly respected Medical Residency Program.

JOHNSON CITY UHS WILSON MEDICAL CENTER

22 FINANCIAL ANALYSIS CVS PHARMACY | · UV79 · · UV41

£¤11 UV26 TRADE AREA DEMOGRAPHICS WHITNEY POINT

POPULATION 3 MILES 5 MILES 10 MILES 2010 Census 62,125 121,351 182,058 UV12 UV38 2019 Estimate 60,481 116,561 174,166 81 2024 Projection 60,122 115,216 171,791 ¦¨§81

HOUSEHOLDS 10 MILES 3 MILES 5 MILES 10 MILES NEWARK VALLEY 2010 Census 24,715 50,057 75,056 Greater Binghamton 2019 Estimate 23,862 48,031 72,140 Airport 2024 Projection 23,590 47,382 71,192 £¤11 5 MILES 2019 Est. Average Household Income $64,976 $66,559 $72,715 2019 Est. Median Household Income $45,158 $47,338 $53,805 UV26 3 MILES ¦¨§8888

JOHNSON CITY GASKILL

ENDICOTT BINGHAMTON UV7 UV17C UV17 UV434 WINDSOR

UV79

HALLSTEAD

UV267 £¤11 UV167

JOHNSON CITY, NY UV858

| CVS PHARMACY FINANCIAL ANALYSIS 23 INVESTMENT ADVISORS

MARC MANDEL CVS PHARMACY Managing Director 484.532.4212 [email protected]

STEVE SCHRENK Director 484.532.4213 [email protected]

DEBT ADVISOR MIKE PAGNIUCCI Director 484.532.4172 CORTLAND, NY [email protected]

HFF 1700 Market Street Suite 3232 Philadelphia, PA 19103 hfflp.com JOHNSON CITY, NY