The Kase Group

CVS Distribution Center 43800 Gen Mar Novi, MI 48375

$22,875,000 22 Yr Absolute Bond Net Lease with 16+ Yrs Left Zero Landlord Responsibilities Investment Grade Credit Tenant S&P Rated BBB+ Credit - NYSE: CVS

Presented By: Kase Abusharkh Brian Gordon 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 Executive Summary Investment Information Rent Roll Summary

2 Tenant Overview

3 Additional Information Pictures

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 43800 Gen Mar Novi, MI 48375 List Price $22,875,000 Price per S.F. $52.09 CAP 6.15 %

Building S.F. 439,150 Land Acres 22.32

CVS Distribution Center Cross Street Novi Drive Tax Parcel Number 22-22-276-008 Market Detroit MSA Sub Market Oakland County Year Built 1987 Year Renovated 1996 No. of Buildings 2 HVAC Yes Freeway Access Yes Rail Access Yes Airport Access Yes No. of Stories 1

Property Descriptions Area Novi, Michigan is located in southeastern Michigan in Oakland County, and just 25 minutes from downtown Detroit. Novi is one of the fastest-growing cities in Michigan. The construction of Twelve Oaks Mall in the 1970s made the city a major shopping destination in the Detroit metropolitan area and is often credited with ushering in an era of growth that continues to this day. This growth has led to substantial increases in the city's population, as well as commercial and industrial developments in the city. Novi is well-connected to highway, rail and air transportation. Major highways including I-96, 275, 696 and the newer M-5 are all accessible. Novi is a rail hub connecting Detroit to many mid-west destinations. Detroit's Metropolitan Airport and Oakland County International are both in close proximity.

Construction There are 2 buildings, the first was built in 1987 and the second in 1996. Property This is an opportunity to purchase the fee simple interest in this 439,150+/- square-foot regional distribution center sitting on a 22+ acres site leased to CVS Corporation. The long-term bond net lease requires absolutely zero landlord responsibilities. There are successive lease renewal options. The property is being offered free and clear of existing debt. Parking There is abundant on-site parking on this 22+ acre site for both cars and semi trucks with in and out-bound shipments.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Major Tenants CVS Corporation (NYSE: CVS) signed a Bond Net Lease with an initial term of 22 years commencing on September 20, 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 43800 Gen Mar Novi, MI 48375 Listing Price $22,875,000 Building S.F. 439,150 Actual CAP 6.15 % Land Acres 22.32

Price Per S.F. $52.09

Estimated Annualized Operating Data Actual Net Operating Income $1,406,571

Highlights

22 Yr Absolute Bond Net Lease with 16+ Yrs Left Zero Landlord Responsibilities Investment Grade Credit Tenant S&P Rated BBB+ Credit - NYSE: CVS

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 % of Escalations / Options / Comments S.F. Rent S.F. Rent Total CVS Corporation 9/20/2001 1/31/2024 439,150 $3.20 $1,406,571 100.0 % Lessee has a right of first refusal during the option periods only. Rent is flat through initial lease term. There are ten (5) year options to renew, except 2nd option which is 4 yrs and one month. Annual rent for first two option periods (2/1/2024-2/28/2033) is $1,265,913. Rent is flat through all of the option periods. The next eight renewal options have terms of five years each and fixed annual rent of $1,265,913 as long as building satisfies 80% economic life test and 20% fair market value test.

Total 439,150 $1,406,571 100.0 %

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2 . Tenant Overview FINANCIAL HIGHLIGHTS

Fiscal Year WOONSOCKET, RI - March 22, 2007 CVS Fiscal Year Ends: 30-Dec Corporation and Caremark Rx, Inc. today Most Recent Quarter (mrq): 30-Dec-06 announced that they have formally closed their transformative merger of equals, creating the Profitability Profit Margin (ttm): 3.12% nation's premier integrated pharmacy services Operating Margin (ttm): 5.57% provider. The combined company, renamed CVS/Caremark Corporation (NYSE: CVS) Management Effectiveness Return on Assets (ttm): 8.76% unifies the nation's largest pharmacy chain with Return on Equity (ttm): 15.00% a leading pharmaceutical services company, Income Statement creating the opportunity to deliver unique Revenue (ttm): 43.81B products and services that will help manage Revenue Per Share (ttm): 53.392 costs for employers and improve access and choice for consumers. Qtrly Revenue Growth (yoy): 24.00% Gross Profit (ttm): 11.94B EBITDA (ttm): 3.24B The combined company will trade on the New Net Income Avl to Common (ttm): 1.36B York Stock Exchange under the symbol Diluted EPS (ttm): 1.6 "CVS." Qtrly Earnings Growth (yoy): 2.70% xxxxx

CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country's largest pharmacy chain. The company fills or manages more than one billion prescriptions per year, more than any other pharmacy services provider. CVS/Caremark drives value for pharmacy services customers by effectively managing pharmaceutical costs and improving healthcare outcomes through its 6,200 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com.

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

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.

© Copyright 1999-2006 CVS/pharmacy

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 3 . Additional Information Property Description

Two Warehouse Distribution Buildings

The subject property is improved with a single-tenant warehouse/distribution building that comprises a gross building area of 439,150 square feet. The gross building area includes one finished-out mezzanine area. The majority of the building is utilized for warehouse or distribution space. Approximately 5,575 square feet (or approximately 1% of the total square footage) are utilized for office space. The construction includes a combination of concrete masonry units and insulated metal panels with structural steel framing. The original portion of the facility, comprising approximately 221,150 square feet, was constructed in 1987. The remaining 218,000 square feet were completed in 1996. The superstructure for both phases the facility consists of open web joists and joist girders. Structural steel columns support the roof structure. There are adequate driveways, parking and loading areas; the facility has 43 truck doors and associated bays. On-site parking includes 209 automobile spaces, but on-site truck parking space is limited. The property is attractively landscaped with grass, shrubs, and trees.

Basic Construction

Foundation and Floors In the absence of structural drawings, the foundation appears to be a concrete slab-on-grade with the columns supported on drilled piers or spread footings. The floor comprises a reinforced 8" concrete slab placed over fill. Structural framing is made of steel. The exterior walls are a combination of concrete masonry units and insulated metal panels. The front (eastern) elevation of the facility comprises concrete masonry units. The southern, western and northern elevations feature a concrete masonry unit base to a typical height of eight feet with then insulated metal panels from that point upward. The facility features 30-foot clear heights in the original section and 29-foot clear heights in the 1996 portion.

Roof

The roof system is built-up over a metal deck. The 1986 construction comprises a rubberized membrane. The 1996 construction features a Firestone membrane overlaid with aggregate ballast. The 1996 roof system has a Red Shield 10-year-limited warranty against leakage and material defects. Roof drains connect to interior or concealed downspouts and roof water is discharged away from the building.

Exterior Doors

The entry doors are storefront, transom and sidelight assemblies. Overhead doors are vertical lift, 24- gauge sectional galvanized steel with vision panels. There are 43 dock-high loading doors and three overhead doors with ramp access.

Interior Walls

The office areas feature painted gypsum board over metal studs. The warehouse areas are open. Clear height for the building is 29 to 30 feet in the storage areas and 20 feet in the speed bays. The restrooms have ceramic tile and vinyl wall coverings.

Interior Doors

Solid core veneer doors set in hollow painted metal frames.

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

Office areas contain average-quality commercial carpeting and vinyl tile. The warehouse floor is unsealed concrete. The restrooms have ceramic tile floor coverings.

Ceilings

Office area ceilings are typically 9-foot-high with suspended acoustical tile in a standard T bar grid. Warehouse ceilings are typically unfinished.

Restrooms

Adequate restroom facilities are provided in the subject building. Partitioning in the restrooms is floor- mounted plastic laminate. Lavatory counters are also plastic laminate. All plumbing fixtures are assumed to be to local standards and building codes.

HVAC

The office areas of this facility are climate controlled with rooftop air conditioning units with natural gas heating. The warehouse areas are ventilated for cooling and heated with large gas fired air handlers. A small portion (approx. 30,000SF) of the warehouse is air conditioned via roof top air conditioners.

The warehouse areas are ventilated by large supply fans on the rear of the facility and relief hoods on the roof. These items are in good condition and provide adequate ventilation. The warehouse is primarily heated with four large gas-fired air handlers. There are supplemental electric heating units serving the dock areas.

Lighting

Warehouse lighting utilizes high pressure sodium high-bay fighting fixtures with fluorescent strip fixtures in pick modules. Two Allen Bradley Light Logix panels control the warehouse lighting intensity. These panels help to reduce voltage to the warehouse lighting circuits, reduce lighting intensity and reduce power consumption. The original building contains fifty skylights which also serve as meltaway smoke and heat vents. The office areas are illuminated with recessed fluorescent fixtures along the east side of the facility.

Electrical

The utility company’s primary service enters the property along the east side of the facility. It is then distributed to two pad-mounted transformers via an exterior 15 KV switchboard with a 400-amp and 600- amp fused switch. The older portion of the facility has a 2000 amp switchboard. The newer part of the building has a switchboard with three 800-amp fused service entrance switches. The electrical distribution system is in good working order and has sufficient available space for future loads and expansion. Emergency power for egress lighting and other critical systems is provided by an Onan 600 KW diesel- powered generator located near the service entrance of the newer portion of the facility. From the automatic transfer switch power is distributed to the older portion of the facility. The generator is in good condition and has sufficient capacity for the facility.

Parking

There are adequate driveways, parking and loading areas. The facility has 43 truck doors and associated bays. On-site parking includes 209 automobile spaces, but on-site truck parking space is limited.

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

The entire facility is protected from fire by fully automatic sprinkler systems. The sprinkler system designs consist of traditional ceiling and in-rack systems within the original 1987 construction. The ceiling and in rack sprinkler systems are fed directly by the City of Novi city water distribution system. The 1996 addition features Early Suppression Fast Response (ESFR) systems. The new ESFR sprinkler systems hydraulic demands required the installation of a fire pump to boost the city water pressure and volume available at the site. The fire pump provides a pressure boost for only the sprinkler systems within the 1996 addition. A diesel-driven fire pump rated for 1500 GPM at 80 PSI was installed in 1996 with the new building addition.

Other

The property features an eight-foot high chain link fence around the perimeter of the site, and one non- motorized access gate. Landscaping Attractive landscaping is located throughout the property consisting of trees, shrubs and natural grass. Landscaping is irrigated with a fully automatic sprinkler system.

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

Additional Photo

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

Additional Photo

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

Additional 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 Wide Aerial

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

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

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 Parcel Map

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Demographics Report 43800 Gen Mar Novi, MI 48375 1.00 Mile 3.00 Mile 5.00 Mile Ring Ring Ring

POPULATION 1990 Population 4,253 36,519 103,392 2000 Population 5,465 46,716 132,163 % Population Change 1990-2000 28.50 % 27.92 % 27.83 %

2006 Total Population 5,676 48,712 137,213 2011 Total Population 5,915 50,436 140,745 % Population Change 2000-2006 3.86 % 4.27 % 3.82 % % Population Change 2006-2011 4.21 % 3.54 % 2.57 % 2006 Total Households 2,044 19,394 59,538 2011 Total Households 2,159 20,400 62,524 % Households Change 2000-2006 7.13 % 7.88 % 7.54 % % Households Change 2006-2011 5.63 % 5.19 % 5.02 % 2006 White Population 4,716 42,858 119,059 2006 Black Population 68 880 4,223 2006 American Indian/Alaska Native 9 92 304 2006 Asian/Hawaiian/Pacific Islander 750 3,930 10,599 2006 Other Population (Incl 2+ Races) 133 952 3,028 2006 Hispanic Population 147 1,181 3,261 2006 Non-Hispanic Population 5,529 47,531 133,952 2006 Per Capita Income $40,888 $49,058 $48,475 2006 Median Household Income $90,719 $91,822 $78,491 2006 Average Household Income $113,543 $123,220 $111,716 2006 Household Income < $10,000 10 157 1,231 2006 Household Income $10,000-$14,999 77 410 1,583 2006 Household Income $15,000-$19,999 46 476 2,301 2006 Household Income $20,000-$24,999 69 552 2,231 2006 Household Income $25,000-$29,999 67 463 1,925 2006 Household Income $30,000-$34,999 29 522 2,351 2006 Household Income $35,000-$39,999 43 568 1,953 2006 Household Income $40,000-$44,999 23 587 2,309 2006 Household Income $45,000-$49,999 38 537 2,220 2006 Household Income $50,000-$59,999 140 1,105 3,894 2006 Household Income $60,000-$74,999 190 2,057 6,489 2006 Household Income $75,000-$99,999 462 3,363 9,181 2006 Household Income $100,000-$124,999 323 2,389 5,834 2006 Household Income $125,000-$149,999 254 2,495 6,075

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2006 Household Income $150,000-$199,999 176 1,712 4,671 2006 Household Income $200,000-$249,999 25 616 1,519 2006 Household Income $250,000-$499,999 69 1,321 3,594 2006 Household Income $500,000+ 4 64 178 2006 Average Household Size 2.64 2.46 2.28 2006 Total Owner Occupied Housing Units 1,406 14,570 38,105 2006 Total Renter Occupied Housing Units 640 4,821 21,396 2006 Total Daytime Population 9,573 62,336 163,862 2006 Total Daytime Work Population 7,058 41,341 101,198 2006 Total Establishments 655 4,232 10,079

HOUSEHOLDS 1990 Households 1,416 13,864 41,962 2000 Households 1,908 17,978 55,365 % Households Change 1990-2000 34.75 % 29.67 % 31.94 %

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