Single-Tenant Net Lease BJ's Wholesale Club

Single-Tenant Net Lease BJ’s Wholesale Club 3805 HARTZDALE DRIVE, CAMP HILL, PA 17011

Offering Memorandum BJ’S WHOLESALE CLUB 3805 HARTZDALE DRIVE, CAMP HILL, PA 17011

Single-Tenant Net Lease BJ’s Wholesale Club The Offering Newmark Net Lease Capital Markets, as an exclusive advisor, is pleased to present the opportunity to acquire a single-tenant, net leased BJ’s Wholesale Club located in Camp Hill, Pennsylvania. $8,400,000 7.00% NN 4.1 Years Fee Simple 4 (5-Year) ASKING PRICE CAP RATE LEASE STRUCTURE WALT OWNERSHIP INTEREST REMAINING OPTIONS

Net Lease Capital Markets

Matt Berres Samer Khalil Karick Brown Executive Managing Director Director Associate t 949-608-2066 t 949-608-2042 t 949-608-2175 [email protected] [email protected] [email protected] CA RE Lic. #01977909 CA RE Lic. #02002301 CA RE Lic. #02071955

Broker of Record: Michael Margolis | Senior Managing Director | PA RE Lic. #RB065561 NEWMARK 2 BJ’S WHOLESALE CLUB Investment Highlights

BJ’S WHOLESALE CLUB (NYSE: BJ) | 221 LOCATIONS NATIONWIDE | 5.5+ MILLION MEMBERS | (S&P: BB) CREDIT RATING | CORPORATE LEASE BJ’s Wholesale Club (NYSE: BJ), an essential retailer, is a membership-only warehouse club chain which operates on the US East Coast as well as Michigan and Ohio. The chain is ranked 221st on the Fortune 500 list, and recently reported $3.78 Billion in Net Sales for the thirteen-week period ending May 1, 2021. BJ’s Wholesale Club operates 221 clubs / 151 gas stations and has grown their membership base to over 5.5+ million individuals. The retailer received two credit rating improvements during the pandemic and currently carries a ‘BB’ rating from S&P.

31 YEAR OPERATING HISTORY AT SUBJECT PROPERTY | 4.1 YEARS REMAINING | 4 (5-YEAR) OPTIONS WITH RENTAL INCREASES | MINIMAL LANDLORD RESPONSIBILITIES BJ’s Wholesale Club has operated at this location since 1990 demonstrating a deep commitment to the site. Currently, there are approximately 4.1 years of firm term and four (4) 5-year options remaining with fixed rental increases at the start of each option. The double-net (NN) lease structure requires minimal landlord responsibilities, which are limited to roof and structure.

STRATEGICALLY LOCATED NEAR THE HWY 15 & HWY 581 INTERCHANGE | ADJACENT TO CAPITAL CITY MALL The subject property is strategically positioned less than 1 mile from the highway interchange between Highways 15 and 581 (111,114 VPD @ the Interchange) providing convenient access for BJ’s members. The subject property features one (1) point of ingress/egress located on Hartzdale Drive. The sub-street connects the subject property with the nearby Capital City Mall. Located less than a quarter mile from the subject property, Capital City Mall is a 620,000+ SF Regional Mall that features name brands such as DSW, Field & Stream, Forever 21, Dave & Busters, Dick’s Sporting Goods, JC Penney, Macy’s & PA Fine Wine & Good Spirits.

CARLISLE-HARRISBURG MSA LOCATION | DIVERSIFIED EMPLOYMENT BASE | STRONG DEMOGRAPHICS Camp Hill is part of the Carlisle-Harrisburg MSA which is home to more than 580,000 residents making it the 4th largest MSA in Pennsylvania. Major industries in the city include government, education, heavy manufacturing, agriculture, and food services. Harrisburg/Camp Hill was ranked one of the most recession proof MSAs due to its high concentration of state and federal government agencies. The trade area is home to a population of 157,197 with average household incomes of $89,152 within 5 miles of the subject property.

REPRESENTATIVE PHOTO

NEWMARK 3 BJ’S WHOLESALE CLUB Investment Overview

Price/Cap Rate

Price (PSF) $8,400,000 ($79 PSF) Cap Rate 7.00% Annual Base Rent $588,209 ($5.50 PSF)

Executive Summary

3805 Hartzdale Drive, Address Camp Hill, PA 17011 BJ’s Wholesale Club / Tenant / Lease Entity BJ’s Wholesale Club, Inc. (Corporate) Use Retail Rentable Building Area (SF) 106,947 Acreage 11.409 Expense Structure NN (Roof & Structure) Option 1: $641,682 ($6.00 PSF) Option 2: $673,766 ($6.30 PSF) Rent Increases Option 3: $711,198 ($6.65 SF) Option 4: $748,629 ($7.00 PSF) Lease Commencement September 1, 2015 Lease Expiration August 31, 2025 Lease Term Remaining 4.1 Years Renewal Options Remaining 4 (5-Year) Ownership Interest Fee Simple (Land & Building)

NEWMARK 4 Site Aerial North

LOWER ALLEN DRIVE US US US 39,410 VPD 89 189 15

4,917 VPD

GAS Not a Part

HARTZDALE DRIVE Site Aerial Northeast

SCI Camp Hill

US US US 89 189 15

LOWER ALLEN DRIVE

HARTZDALE DRIVE

4,917 VPD

GAS Not a Part Site Aerial East

SCI Camp Hill

GAS Not a Part

HARTZDALE DRIVE 4,917 VPD Site Aerial Southwest

US US US 89 189 15 39,410 VPD

GAS Not a Part

HARTZDALE DRIVE

4,917 VPD Site Aerial West

39,410 VPD US US US 89 189 15 GAS Not a Part

HARTZDALE DRIVE 4,917 VPD Site Aerial West

Corporate Services

US US US 39,410 VPD 89 189 15 LOWER ALLEN DRIVE

HARTZDALE DRIVE

4,917 VPD The Investment

NEWMARK 12 BJ’S WHOLESALE CLUB Lease Abstract & Property Details

Property Overview Rent Schedule

Rentable Building Area (SF) 106,947 Annual Increase Lease Year Cap Rate Acreage 11.409 Rent % Year Built/Renovated 1990/2005 9.1.2015 - 8.31.2020 $577,514 - -

Parcel 13-24-0799-178A 9.1.2020 - 8.31.2025 $588,209 1.85% 7.00%

Option 1: $641,682 9.09% 7.64% 9.1.2025 - 8.31.2030 Lease Abstract Option 2: $673,766 5.00% 8.02% 9.1.2030 - 8.31.2035 3805 Hartzdale Drive, Address Option 3: Camp Hill, PA 17011 $711,198 5.56% 8.47% 9.1.2035 - 8.31.2040 Tenant Trade Name BJ’s Wholesale Club Option 4: $748,629 5.26% 8.91% Lease Entity BJ’s Wholesale Club, Inc. (Corporate) 9.1.2040 - 8.31.2045 Lease Commencement September 1, 2015 Bold = Current Period Lease Expiration August 31, 2025 Initial Term 10 Years Lease Term Remaining 4.1 Years Renewal Options Remaining 4 (5-Year) Annual Base Rent (PSF) $588,209 ($5.50 PSF) Option 1: $641,682 ($6.00 PSF) Option 2: $673,766 ($6.30 PSF) Rent Increases Option 3: $711,198 ($6.65 SF) Option 4: $748,629 ($7.00 PSF) Lease Structure NN Landlord Responsibilities Roof & Structure Utilities Tenant Responsibility Taxes Tenant Responsibility HVAC Tenant Responsibility Insurance Tenant Responsibility Common Area Tenant Responsibility ROFR Yes - Thirty (30) Days

NEWMARK 13 PhotosProperty Photos

NEWMARK 14 BJ’S WHOLESALE CLUB Market Overview - Camp Hill, PA

Harrisburg/Camp Hill MSA Harrisburg, PA is the capital city of the Commonwealth of Pennsylvania and the county seat of Dauphin Demographics 1 Mile 3 Mile 5 Mile County. The Carlisle-Harrisburg MSA is home to more than 580,000 residents making it the 4th largest MSA in Pennsylvania. The city sits on the east bank of the Susquehanna River in southeastern 2021 Estimated Population 7,347 56,632 157,197 Pennsylvania, 10 miles from Hershey, 92 miles west of Philadelphia and 165 miles east of Pittsburgh. Major industries in the city include government, education, heavy manufacturing, agriculture, and food 2026 Estimated Population 7,883 59,550 163,521 services. Harrisburg/Camp Hill was ranked one of the most recession proof MSAs due to its high 2021 Avg. Household concentration of state and federal government agencies. $78,737 $89,522 $89,152 Income

Pennsylvania Economy Largest Universities in Pennsylvania Pennsylvania is the 6th largest economy in the U.S. and is home to nearly 50 of the 1,000 largest public University Number of Students companies in the country. The state’s GDP is estimated at $815 Billion, with a population of over 13.01 million. The state has numerous top-caliber schools including Swarthmore, Haverford, and the University Pennsylvania State University 46,810 of Pennsylvania. Pennsylvania was ranked America’s most diverse economy by Bloomberg News, with Temple University 39,740 an economy that includes a robust real estate, agriculture, finance, health care, government, education, University of Pittsburgh 28,673 and mining/energy sectors. The State is home to Philadelphia and Pittsburgh, the 6th and 66th largest University of Pennsylvania 25,860 cities in the U.S., respectively. These two cities are the economic powerhouses of the West and East halves of the state and play an outsized role in the overall state’s GDP. Drexel University 24,634 West Chester University of Pennsylvania 17,527

Fortune 500 Companies in Pennsylvania Carnegie Mellon University 14,029 (Partial List 22 Total) Indiana University of Pennsylvania 11,483 Company Rank Villanova University 11,030 1) AmerisourceBergen No. 10 Duquesne University 9,274 2) Comcast No. 28 3) Rite Aid No. 107 4) PNC Financial Services Group No. 151 5) Lincoln National No. 188 6) Aramark No. 200 7) PPG Industries No. 209 8) Howmet Aerospace No. 226 9) United States Steel No. 247 10) Crown Holdings No. 272 11) Universal Health Services No. 281 12) Alcoa No. 302 13) Air Products & Chemicals No. 355 14) Dick’s Sporting Goods No. 362 15) Erie Insurance Group No. 376 PENN STATE UNIVERSITY

NEWMARK 15 Trade Area Photos

DOWNTOWN HARRISBURG

DOWNTOWN HARRISBURG PA STATE CAPITAL BJ’S WHOLESALE CLUB Tenant Synopsis

Tenant / Guarantor Synopsis BJ’S BJ’s Wholesale Club is a leading membership-only warehouse club operator on the East Coast, as well as Michigan and Ohio. BJ’s is committed to delivering value to their members Trade Name BJ’s Wholesale Club and consistently offers 25% or more savings on a representative basket of manufacturer- branded groceries compared to a traditional supermarket. Credit Rating S&P: BB / Stable

BJ’s Wholesale Club’s credit rating was upgraded to BB- in in June of 2020 and subsequently Number of Locations 221 Clubs / 151 Gas Stations received another upgrade in December 2020, currently carrying a BB rating from S&P, (As of May 1, 2021) exemplifying the retailer’s positive outlook moving forward. Geographic Dispersion 17 States BJ’s Wholesale Club Financials: (Thirteen Weeks Ended May 1, 2021)

– Net Sales: $3.78 Billion Fortune 500 No. 221 – Membership Fee Income: $86.39 Million Number of Members 5.5 Million – Total Assets: $5.41 Billion – Adjusted EBITDA: $202.41 Million – Free Cash Flow: $190.9 Million

YEAR FOUNDED COMPANY TYPE HEADQUARTERS 1984 Public (NYSE: BJ) Westborough, MA

WEBSITE LOCATIONS S&P CREDIT RATING bjs.com 221 Clubs / BB REPRESENTATIVE PHOTO 151 Gas Stations NEWMARK 17 Single-Tenant Net Lease BJ’s Wholesale Club

Net Lease Capital Markets:

Broker of Record: Michael Margolis | Senior Managing Director | PA RE Lic. #RB065561

18401 Von Karman Ave, Suite 150 Irvine, CA 92612

The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

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