OFFERING MEMORANDUM

PRICE RITE District Heights, MD

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

Asking Price Cap Rate Rent Schedule $5,500,000 6.69% Term Increases Annual Rent Monthly Rent 12/2017-11/2022 8.00% $368,010 $30,667 12/2022-11/2027 5800 Silver Hill Road (Option 1) 8.05% $397,620 $33,135 District Heights, MD 20747 12/2027-11/2032 (Option 2) 7.92% $429,110 $35,759 Asset Summary 12/2032-11/2037 7.99% $463,420 $38,618 Annual Rent $368,010 (Option 3) 12/2037-11/2042 Rent/Month $30,667 (Option 4) 7.10% $496,320 $41,360 12/2042-11/2047 Rentable Square Feet 47,000+/- SF (Option 5) 8.90% $540,500 $45,041 Rent/SF $7.83 Investment Highlights

Land Area 3.53+/- Acres •• Washington, DC MSA; 9 miles from the US Capitol Building & the White House Tenant Wakefern Food Corp. •• Subdivided parcel within the 250,000 SF Penn Station shopping center Website www.wakefern..com •• Extremely dense retail area, surrounded by national retailers including TGI Fiday’s, Planet Fitness, Burger King, McDonald’s, Exxon, Dunkin’ Donunts, Stock Symbol NASDAQ: VLGEA Chick fil A, Wells Fargo, and anchored by Rite Aid, Shoppers Food Ware- house, CVS, and Marshall’s Guarantor Corporate •• Strong demographics with average population count of 20,000 Ownership Type Fee Simple & average hh income of $65,000 within 1 mile •• Traffic counts of 25,420 VPD Lease Type NN •• Attractive assumable financing at 4.30% interest rate Landlord Responsibilities Roof, Structure, Liability Insurance •• Below market rent, and low cost basis at $112/SF

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 Calkain Companies | 2 Price Rite | Debt Assumption

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 2018-2023

NOI $368,010

Debt Service $214,985

Cash Flow After Debt Service $153,025

Cash-on-Cash Return 5.76% (Does Not Include Amortization)

Calkain Companies | 3 Tenant Overview

About Price Rite About Wakefern Corporation The Price Rite store differentiates itself Wakefern is the nation’s largest retailer-owned from its competitors by saving its customers cooperative and is comprised of 50 member up to 50 percent off their everyday grocery companies who own and operate retail bills. By delivering a blend of variety, price, under the ShopRite, Price Rite and quality products and freshness at incredibly low prices, Price Rite’s targeted banners. With retail locations in nine states, the Wakefern cooperative reaches into the , , approach has earned it a following among a growing niche of price-conscious , , Delaware, , , consumers. and Virginia markets. The first Price Rite store opened its doors in West Springfield, MA in 1995 by In addition to servicing its cooperative members, Wakefern supplies it wholly PRRC, Inc. a wholly-owned subsidiary of Wakefern Food Corp. Today there owned subsidiaries, ShopRite Supermarkets, Inc. and PRRC, Inc. with products and are more than 50 locations throughout Connecticut, Massachusetts, New services, allowing them to operate supermarkets under the trademarked names York, Pennsylvania, Rhode Island and Maryland. Through this growth, Price ShopRite® and Price Rite®. Of the more than 250 ShopRite stores located across Rite’s mission remains the same – to offer customers Impossibly, Inconceivably, New York, New Jersey, Pennsylvania, Connecticut, Delaware, and Maryland, Incredibly Low Grocery Prices Everyday in a clean, fresh and friendly 33 of these are owned and operated by ShopRite Supermarkets, Inc. PRRC, Inc. environment. operates its more than 50 Price Rite stores in Connecticut, Massachusetts, New Price Rite supermarkets feature expansive produce departments, fresh-baked York, Pennsylvania, Rhode Island, Maryland and Virginia. There are two member- goods delivered daily, choice pre-packaged meat and seafood products and a owned Price Rite stores, located in Camden and Garfield, NJ. remarkably low-priced assortment of quality private label items. Price Rite offers In fiscal year 2015, its revenue was $15.7 billion. In 2011, News gave its customers many of the most popular grocery items on today, Wakefern its Retailer Excellence Award and The Griffin Report and Progressive including leading national brands, all at incredibly low prices. By finding the best Grocer named Wakefern its Retailer of the Year. As of 2011, Wakefern was ranked deals and limiting the number of items stocked, Price Rite passes huge savings 17th by sales among all supermarket operators in the U.S. It operates more than along to its customers, who can save up to 50% off of their grocery bills. 300 stores. 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.

Tenant # of Locations Stock Symbol 2017 Revenue Market Cap Snapshot 300+ NYSE: VLGEA 16.3Bil $363.5Mil

Calkain Companies | 4 5800 Silver Hill Road | District Heights, MD

Francis Scott Key Elementary School

Penn Station Shopping Center Oakcrest Towers Sumo Hibachi Subject Site Wings & Express

The Tire Depot

Pennsylvania Ave

25,420 VPD King Pawn

38,770 VPD Silver Hill Rd

Keep all map content Spauldings (except Pennsylvania Ave background) Branch Library above this margin for website cropping New 24 Fitness purposes 38,770 VPD and Basketball 5800 Silver Hill Road | District Heights, MD

Subject Site

Matress Man H&P Nails Wing Heaven Speedy Tax Service Silver Hill Coin Laundry Quik Mart Phone City Cleaners

25,420 VPD Silver Beauty Supply

Silver Hill Rd

9,157 VPD

Keep all map content (except Old Silver Hill Rd background) above this margin for website cropping purposes

Stre or et f V k c i Location Population w/3 miles 25,420 VPD Signalized e i

l

w

C

143,859 Pass the Site Intersection

Highlights

Site Plan

25,420 VPD

Silver Hill Road

Calkain Companies | 7 Surrounding Retail

Calkain Companies | 8 Location Overview

Baltimore, MD

95

95 Rockville, MD

Herndon, VA Bethesda, MD Annapolis, MD Hyattsville, MD

Washington, DC Subject Site District Heights, MD

495 Alexandria, VA Hollywood

Washington, DC 10 miles Bethesda, MD 28 miles Rockville, MD 34 miles Distance To Hyattsville, MD 10 miles Annapolis, MD 32 miles Herndon, VA 43 miles

Calkain Companies | 9 Location Overview, 1/3/5 Miles

1 Mile 3 Miles 5 Miles Population 2018 Population 21,812 143,859 367,584 2023 Population 22,079 150,625 382,755 2018 Median Age 34.1 36.5 36.1 Households 2018 Total Households 8,688 55,533 142,818 2023 Total Households 8,734 58,014 148,334 Median Household Income 2018 Median HH Income $57,414 $56,767 $55,562 2023 Median HH Income $65,096 $64,778 $62,831 Average Household Income 2018 Average HH Income $71,330 $70,344 $73,218 2023 Average HH Income $83,762 $83,090 $85,689

5 Mile Radius | Demographics

Population Median Age Avg HH Income 367,584 36.1 $73,218

Total Businesses Total Employees 7,980 93,772

Calkain Companies | 10 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 New York 12930 Worldgate Dr 200 SW 1st Ave 111 Village Pkwy, Bldg 2 101 Federal St 3477 Corporate Pkwy 450 Lexington Ave Ste 150 | Herndon, VA Ste 880 | Fort Lauderdale, FL Ste 202 | Marietta, GA Ste 1900 | Boston, MA Ste 100 | Center Valley, PA 4th 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.