CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408

www.TheKaseGroup.com

$25,800,000 Long Term Absolute Bond Net Lease Zero Landlord Responsibilities Investment Grade Credit | S&P Rating of BBB+ Washington D.C. Metropolitan Area

Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Table of Contents

1 Financial Analysis

2 Tenant Corporate Stock Information

3 Tenant Corporate Growth Summary

4 Area Demographics Summary

5 Additional Site Information

6 Property Photos

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1 . Financial Analysis Executive Summary CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408 List Price $25,800,000 Price per S.F. $52.88 CAP 6.01 %

Building S.F. 487,897 No. of Dock High Doors 65 Land Acres 39.40

CVS Distribution Center Cross Street Shannon Drive Tax Parcel Number 024-A-00-102A Market Washington D.C. MSA Sub Market Spotsylvania County Year Built 1985 Year Renovated 1995 Roof Type Standing Seam Roof Zoning Type Commercial No. of Buildings 1 Percent Office Space 3.00 % Mezzanine Yes HVAC Yes Freeway Access Yes Rail Access Yes Airport Access Yes No. of Stories 1 Clear Height 39 Feet Sprinkler Type Wet Pipe ESFR

Property Descriptions Area The property is located immediately south of the City of Fredericksburg in Spotsylvania County. Spotsylvania is one of Virginia's fastest-growing counties, largely because of its location along Interstate 95, midway between the United States capital of Washington D.C. and the state capital of Richmond. Both capital cities are about 50 miles distant. Interstate Highway 95 is the major north/south freeway through the Fredericksburg area and provides direct access to Washington, D.C., New York and New England to the north, and Richmond and Miami to the south. Another major north/south thoroughfare serving Fredericksburg is U.S. Highway 1, which generally parallels Interstate Highway 95. The major southeast/northwest freeway is U.S. Highway 1, which generally parallel Interstate Highway 95. Three major airports are within a 60-minute drive of the Fredericksburg Region- Dulles International, Ronald Reagan Washington National and Richmond International.

Construction The construction includes insulated metal panels and concrete tilt-wall exterior walls and reinforced steel framing. There are adequate driveways, parking and loading areas. The property is attractively landscaped compared to other properties in the area. The superstructure for both phases of the facility consists of open web joist girders.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Electrical Exterior lighting is provided by 1000 watt or equivalent metal halide wall pack fixtures mounted on the building at 200 foot intervals and pole lights mounted at 500 foot intervals around the perimeter of the site. All electrical wiring is assumed to be in compliance with local codes. Property The subject property is an improved a single-tenant warehouse/distribution building that comprises of a gross building area of 487,897 square feet. The gross building area includes a finished-out mezzanine area and a second story office area. The majority of the building is utilized for warehouse or distribution space. Approximately 13,858 square feet (or 3% of the total square footage) are utilized for either office or cafeteria space. The original portion of the facility, comprising of approximately 478,697 square feet, was constructed in 1985. The addition was completed in 1995. According to the existing survey, the subject land parcel has a frontage of 1,474.64 lineal feet along the east side of Lansdowne Road. The site has average visibility from Lansdowne Road, and has adequate access to the local highway system. Access to the property is provided via a single curb cut along Lansdowne Road. The site also features 2,194.94 lineal feet of frontage along the west side of the CSX Railroad right-of-way.

Renovation There was a 9,200 square-foot addition to the structure in 1995. Parking There are adequate driveways, parking and loading areas. The facility has 65 truck doors associated with bays. On-site parking includes 436 automobile spaces, as well as 106 trailer spaces. Major Tenants CVS Corporation (NYSE: CVS) signed a Bond Net Lease with an initial term of 22 years commencing on November 29, 2001 and expiring on January 31, 2024. CVS has been in operation for over 40 years. There are about 6,200 stores in 43 states, 14 distribution centers (including the subject property), regional business offices, and a Store Support Center in Woonsocket, RI which is also the site of CVS corporate headquarters. The CVS Corporation is well positioned to continue that growth and introduce quality service to a diverse group of new customers in communities and neighborhoods across the country.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Investment Information

CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408 Listing Price $25,800,000 Building S.F. 487,897 Actual CAP 6.01 % No. of Dock High Doors 65 Land Acres 39.40

Annualized Operating Data Actual Net Income $1,549,566

Highlights

Long Term Absolute Bond Net Lease Zero Landlord Responsibilities Investment Grade Credit | S&P Rating of BBB+ Washington D.C. Metropolitan Area

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Rent Roll Summary

Tenant Name Start Date End Date Occupied Annual Occupied Escalations / Options / Comments S.F. Rent S.F. Rent CVS Corporation 11/29/2001 1/31/2024 487,897 $3.18 $1,549,566 There are ten renewal options. Lease rate is flat for the initial term. Annual rent for first two option periods (2/1/2024-5/31/2033) is $1,394,609. The next eight renewal options have terms of five years each and fixed annual rent of $1,394,609 as long as building satisfies 80% economic life test and 20% fair market value test. If either test fails, annual rent is set at 101% of fair market rent for the then current and one subsequent renewal term and at 100% of fair market rent for any remaining renewal terms.

Total 487,897 $1,549,566

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1 . Financial Analysis 2 . CVS Corp. Stock Information Company Stock Information

CVS Corporation (Public, NYSE:CVS)

$30.04 Open: 29.83 Mkt Cap: 24.74B P/E: 18.62 High: 30.53 52Wk High: 36.14 F P/E: 15.18 +0.43 (1.45%) Low: 29.66 52Wk Low: 26.06 Beta: 1.06 Dec 6, 4:01PM ET Vol: 16.23M Avg Vol: 18.13M EPS: 1.59

Related Companies

Caremark Rx, Inc. CMX 49.59 +0.71 (1.45%) BioScrip Inc. BIOS 3.75 -0.31 (-7.64%) Longs Drug Stores Corp. LDG 41.97 +0.13 (0.31%) Nyer Medical Group, Inc. NYER 2.28 -0.16 (-6.56%) Familymeds Group Inc. FMRX 2.69 +0.04 (1.40%) Allion Healthcare, Inc. ALLI 5.80 -0.10 (-1.69%) Walgreen Company WAG 43.66 +0.50 (1.16%) drugstore.com, inc. DSCM 3.44 -0.05 (-1.43%) Option Care, Inc. OPTN 14.51 -0.07 (-0.48%) Rite Aid Corporation RAD 5.11 +0.31 (6.46%)

Financials

(In millions of USD) Quarterly Annual Annual Income Statement (Sep '06) (2005) (2005) Total Revenue 11,206.90 37,006.20 30,594.30 Gross Profit 3,080.30 9,901.20 8,031.20 Operating Income 536.80 2,019.50 1,454.70

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Net Income 284.20 1,224.70 918.80 Balance Sheet Total Current Assets 9,943.10 8,392.70 7,919.50 Total Assets 21,127.40 15,283.40 14,546.80 Total Current Liabilities 7,616.20 4,583.90 4,858.80 Total Liabilities 11,693.00 6,952.20 7,559.60 Total Equity 9,434.40 8,331.20 6,987.20 Cash Flow Net Income/Starting Line 284.20 1,224.70 918.80 Cash from Operating 269.60 1,612.10 914.20 Cash from Investing -658.60 -911.60 -3,163.30 Cash from Financing 251.30 -579.40 1,798.20 Net Change in Cash -137.70 121.10 -450.90

Key Stats & Ratios

Quarterly Annual Annual

(Sep '06) (2005) (TTM) Net Profit Margin 2.54% 3.31% 3.27% Operating Margin 4.79% 5.46% 5.53% EBITD Margin - 7.05% 7.19% Return on Average Assets 5.50% 8.21% 7.47% Return on Average Equity 12.45% 16.29% 15.86% Employees 148,000 - -

Summary

CVS Corporation operates in the retail drugstore industry in the United States with 5,471 retail and specialty pharmacy stores in 37 states and the District of Columbia. The Company sells prescription drugs and an assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photofinishing services, seasonal merchandise, greeting cards and convenience foods, through its CVS/pharmacy retail stores and online through CVS.com. It also provides pharmacy benefit management, mail order services and specialty pharmacy services through PharmaCare Management Services and PharmaCare Pharmacy stores. CVS operates in two segments: Retail Pharmacy and Pharmacy Benefit Management (PBM). In September 2006, the Company acquired the Minneapolis-based MinuteClinic. In June 2006, the Company acquired approximately 700 standalone Sav-On and Osco drugstores, and a distribution center in La Habra, California from Albertson's, Inc.

Headquarters: One CVS Drive Woonsocket, RI 02895 USA www.cvs.com

Data supplied by Reuters Fundamentals

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 3 . CVS Company Growth Company Growth

Some highlights of the growth of CVS Corporation:

2006: CVS acquires 700 stand-alone Sav-On and Osco drugstores from Albertsons, making CVS/pharmacy #1 in fast-growing Southern California and enhancing its presence in key Midwest markets.

2005: CVS/pharmacy ends the year as the largest pharmacy retailer in America, with more than 5,400 locations in 34 states and Washington D.C.

CVS/pharmacy serves more than 400 million customers.

2004: CVS completes its acquisition of 1,268 Eckerd Stores and Eckerd Health Services, Eckerd’s PBM/Mail-order pharmacy business, increasing its store count to more than 5,000 locations and becoming America’s leading pharmacy retailer.

CVS/pharmacy announces entry into California.

CVS ProCare becomes part of PharmaCare.

2003: CVS celebrates its 40th anniversary, and announces its planned entry into the Minneapolis / St. Paul, Minn. Market.

The company’s Extra Care loyalty card program ends the year with more than 44 million cardholders.

2002: CVS continues to grow, announcing its plans to enter the Texas market with stores targeted for high-population-growth markets such as Dallas and Houston. Also in the plans — the company’s first locations in Phoenix and Las Vegas.

2001: CVS/pharmacy introduces the ExtraCare Card, becoming the first national pharmacy retailer to launch a loyalty card program.

CVS records annual sales exceeding $22 billion, and continues to expand into diverse, high-growth markets in Central and South Florida.

2000: CVS announces plans to enter the Chicago market and continue expansion in Florida with stores slated for Fort Lauderdale and Orlando.

The company acquires Stadtlander pharmacy, making CVS ProCare the largest specialty pharmacy in the U.S. at the time.

1999: Tom Ryan is named chairman of CVS Corporation, succeeding company co- founder Stanley Goldstein.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. The company announces its intentions to enter Florida, with stores initially planned for the Tampa market.

CVS/pharmacy launches CVS.com, the first fully integrated online pharmacy in the U.S.

1998: CVS acquires 200 stores from Arbor Drugs of Michigan to bring its store total to 4,100 across 24 states. The transaction gives our company its first stores in Michigan and the instant lead in the highly competitive Detroit market. In addition, the deal gives CVS/pharmacy a 450,000-square-foot distribution center in Novi, Mich.

1997: CVS completes its acquisition of more than 2,500 stores from Revco — the largest acquisition in the history of the U.S. retail pharmacy industry. The acquisition of Revco gives CVS key drugstore locations primarily in the Midwest and Southeast.

CVS ProCare is established as a specialty pharmacy subsidiary of CVS.

1996: Following the restructuring of Melville, CVS Corporation becomes a standalone company trading on the New York Stock Exchange under the CVS ticker. Stanley Goldstein is the company's first chairman.

1994: In January, Tom Ryan is named president and CEO of CVS/pharmacy. Ryan began working for CVS/pharmacy in 1978 as a pharmacist.

CVS launches PharmaCare, a pharmacy benefit management company providing a wide range of services to employers and insurers.

1993: CVS/pharmacy completes the chain-wide transition to point-of-sale scanning.

1990: CVS acquires 500-store Peoples Drug, which establishes the company in new mid-Atlantic markets including Washington, D.C., Pennsylvania, Maryland and Virginia.

1988: CVS/pharmacy celebrates its 25th anniversary, finishing the year with nearly 750 stores and sales of about $1.6 billion.

1987: Stanley Goldstein takes over as chairman and CEO of Melville Corporation.

1986: CVS co-founder Stanley Goldstein is named president and COO of Melville Corporation.

1985: CVS reaches $1 billion in annual sales.

1984: Senior vice president of marketing Harvey Rosenthal is named president and CEO of CVS. He succeeds Stan Goldstein, who is named executive vice president of Melville Corporation.

CVS serves more than 178 million customers.

1981: CVS breaks ground on the Store Support Center in Woonsocket, RI.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1980: CVS/pharmacy becomes the 15th largest pharmacy chain in the U.S. with 408 stores and $414 million in sales.

1978: CVS finds success and differentiates itself from the competition by opening small health and beauty aids stores in enclosed shopping malls.

1977: CVS acquires the 36-store New Jersey-based Mack Drug chain.

1974: CVS achieves $100 million in annual sales.

1972: CVS nearly doubles in size with its acquisition of 84 Clinton Drug and Discount Stores. The purchase introduced CVS to the Midwest with stores in Michigan and Indiana.

1970: CVS operates 100 stores in New England and the Northeast.

1969: CVS is sold to Melville Corporation.

1967: CVS begins operation of its first stores with pharmacy departments, opening locations in Warwick and Cumberland, R.I.

1964: The chain grows to 17 stores. The original CVS logo is developed (CVS banner inside a shield, with the words “Consumer Value Stores” below) and displayed on store exteriors for the first time.

1963: The first CVS store, selling health and beauty products, is founded in Lowell, Mass. by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland. CVS stands for Consumer Value Stores.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 4. Demographics Summary Demographics Report 500 Lansdowne Road Fredericksburg, VA 22408 1.00 Mile 3.00 Mile 5.00 Mile Ring Ring Ring

POPULATION 1990 Population 2,396 27,830 57,305 2000 Population 2,430 34,813 73,864 % Population Change 1990-2000 1.42 % 25.09 % 28.90 %

2005 Total Population 2,673 40,603 89,144 2010 Total Population 3,099 46,428 105,673 % Population Change 2000-2005 10.00 % 16.63 % 20.69 % % Population Change 2005-2010 15.94 % 14.35 % 18.54 % 2005 Total Households 1,011 15,120 32,858 2010 Total Households 1,197 17,676 39,783 % Households Change 2000-2005 8.24 % 14.15 % 18.02 % % Households Change 2005-2010 18.40 % 16.90 % 21.08 % 2005 White Population 1,558 33,095 72,482 2005 Black Population 999 5,368 11,799 2005 American Indian/Alaska Native 8 140 297 2005 Asian/Hawaiian/Pacific Islander 14 631 1,446 2005 Other Population (Incl 2+ Races) 93 1,369 3,119 2005 Hispanic Population 90 1,497 3,522 2005 Non-Hispanic Population 2,583 39,106 85,623 2005 Per Capita Income $24,100 $24,555 $24,917 2005 Median Household Income $52,135 $49,920 $53,774 2005 Average Household Income $63,718 $65,938 $67,599 2005 Household Income < $10,000 20 588 1,197 2005 Household Income $10,000-$14,999 108 937 1,761 2005 Household Income $15,000-$19,999 67 923 1,733 2005 Household Income $20,000-$24,999 64 934 1,840 2005 Household Income $25,000-$29,999 45 873 1,746 2005 Household Income $30,000-$34,999 51 955 2,005 2005 Household Income $35,000-$39,999 29 840 1,838 2005 Household Income $40,000-$44,999 56 726 1,615 2005 Household Income $45,000-$49,999 42 796 1,561 2005 Household Income $50,000-$59,999 110 1,325 3,001 2005 Household Income $60,000-$74,999 147 1,816 4,281 2005 Household Income $75,000-$99,999 148 2,124 5,000 2005 Household Income $100,000-$124,999 52 1,026 2,492 2005 Household Income $125,000-$149,999 32 516 1,290

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2005 Household Income $150,000-$199,999 11 311 687 2005 Household Income $200,000-$249,999 7 114 222 2005 Household Income $250,000-$499,999 21 303 567 2005 Household Income $500,000+ 1 12 22 2005 Average Household Size 2.64 2.50 2.63 2005 Total Owner Occupied Housing Units 694 9,581 21,609 2005 Total Renter Occupied Housing Units 304 5,473 11,254 2005 Total Daytime Population 3,662 46,178 89,319 2005 Total Daytime Work Population 1,645 26,334 45,438 2005 Total Establishments 119 2,601 4,341

HOUSEHOLDS 1990 Households 849 10,189 20,506 2000 Households 934 13,246 27,841 % Households Change 1990-2000 10.01 % 30.00 % 35.77 %

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 5. Additional Site Information Aerial Photo

Aerial Photo

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Location Map

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Property Site Plan

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Parcel Map

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Property Survey

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 6 . Property Photos The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.