BENSALEM SQUARE

2506 KNIGHTS ROAD | BENSALEM, PA 19020 GROCERY-ANCHORED SHOPPING CENTER PROPERTY OVERVIEW

2506 Knights Road Address Bensalem, PA 19020 ABOUT THE CENTER Gross Leasable Area 70,378 Anchor Tenant Redner's Bensalem Square is grocery-anchored retail center having 70,378 square feet of Gross Leasable Area. The Property is positioned within the highly populated Bucks County market, which boasts a very dense population of 18,000+ within one- Land Area 12.25 Acres mile radius and 100,000+ within a three-mile radius. The Lower Bucks County retail submarket has an impressive low Year Built 1983 vacancy rate of 6.4% in a submarket with over 26M square feet of retail inventory. The center is located at the intersection of Knights Road and Dunksferry road; and is the only retail center on Knights Road between high street and Franklin Mills Parking 572 spaces (8.12/1,000 SF) mall. The center features three entrance driveways and two traffic light intersections. The center enjoys 35 years of goodwill among the community; and features Redner's Supermarket and Outpatient facilities of St Mary's Hospital. This particular Redner's store is the most trending store of all, drawing its customer base even from nearby County because of Redner's lower price offerings. St Mary's Hospital - with its maternity center, adult care and pediatric care facilities - pull its customers from all far away areas.

EXECUTIVE SUMMARY DUNKS FERRY ROAD

KNIGHT ROAD i ons - Dense demographics, surrounded by apartments and residences, of above average household incomes CENTER HIGHLIGHTS - A busy shopping center anchored by Redner's Groceries Supermarket and St Mary's Hospital - Only retail center on Knights Road that is located between Street and Franklin Mills mall - Located along Knights Road a busy 4-lane primary corridor of Bensalem - It is the only retail center located between Street Road and Franklin Mills mall - Three entrance driveways and Two traffic light intersect -Enjoys 35 years of goodwill in the community RITA’S WATER ICE HQ Bens

al Old Lincoln Hwy Bristol Rd Trevose Rd LOCATION SUEZ WATER NESHAMINY MARKETPLACE TECHNOLOGIES TARGET, HOME DEPOT Trevose Rd 276 ¦¨§276 HIGHLIGHTS NESHAMINY INTERPLEX

STRONG POSITIONING WITHIN Street Rd PRIMARY RETAIL CORRIDOR PARX CASINO

The Property’s location along Knights Road, just 0.25 PhiladelphiaBucks 1 ROTHMAN ORTHOPAEDIC miles from the intersection of Street Road, positions it Byberry Rd HOSPITAL within a major regional retail corridor, which has attracted BENSALEM GIANT HIGH SCHOOL many of the nation’s top retailers due to the market’s wide STREET RD PLAZA trade radius and growth profile. ’s GOODWILL, DOLLAR TREE KNIGHTSBRIDGE FRANKLIN BUCKS Philadelphia Mills is located 0.5 miles from the property PEPSI APARTMENTS COMMONS MEADOWS along Knights Road. BOTTLING CO HILL BROOK THE HUB PROPOSED 32 ACRE APARTMENTS MIXED-USE DEVELOPMENT elt Blvd v NORTHBROOK REGENCY WITH ~400,000 SF OF RETAIL/OFFICE APARTMENTS APARTMENTS & 165 RESIDENTIAL UNITS BENSALEM PLAZA CREEKSIDE AC MOORE $12.42 B $12.16 B $258 M APARTMENTS BROOKWOOD PLAZA NORTHEAST BENSALEM PLANET FITNESS PHILADELPHIA Bucks County Bucks County Opportunity / AIRPORT COUNTRY CLUB Retail Demand Retail Supply Surplus UV63 ALDI PHILADELPHIA MILLS OUTLET SHOPPING MALL WITH 200+ STORES PEIRCE-PHELPS BENEFITS FROM CLOSE PROXIMITY DISTRIBUTION TO PHILADELPHIA COUNTY LINE Academy Rd NORTHEAST Given its proximity to Philadelphia County and the recent PLASTIC SUPPLY implementation fo the Philadelphia Soda Tax, Bensalem ADI GLOBAL Square is primed to attract city resident consumers. This DISTRIBUTION 9595 Knights Rd ¦¨§ is a real phenomenon and has hit all Philadelphia County River grocers. Being this close to the Philadelphia border allows JEFFERSON TORRESDALE for optimum consumer aggregation. In addition to dense Grant Ave HOSPITAL residential areas, there are seven apartment complexes within 2 miles, adding over 3,200 units to the immediate trade area.

Coo

pe UV543 BENSALEM SQUARE

Rd STRONG DEMOGRAPHICS WITH ACCESS TO MAJOR EMPLOYMENT HUBS Part of the Greater Philadelphia MSA, Bucks County has a population which garners some of the highest incomes in the state, ranking third highest among all counties in based on per capita income. Within three miles of the Property, average household income is $79,840, over 45% more than the state average of $55,000. Philadelphia has one of the strongest “Eds and Meds” economies in the Country with a high concentration of health resources including 120 hospitals, 200 pharmaceutical and biotech firms with 132 medical manufacturers, while the Lehigh Valley is one of Pennsylvania’s fastest growing economies, with over 22,000 net new jobs added over the last five years and a $35 billion annual GDP.

DEMOGRAPHICS 202

1 MILE 3 MILES 5 MILES BUCKS CO. 206 Population 18,467 109,288 299,999 628,341 1 Households (#) 7,111 37,980 117,710 250,646 PRINCETON 20 MILES Median Age 38.4 40.8 42.0 43.5

Average HH Income $75,957 $79,840 $79,201 $101,384

Median HH Income $59,085 $62,742 $61,833 $82,031

202 295 476 295 10 MILES 195

276 ¦¨§276 95 1 5 MILES

95 BENSALEM SQUARE KING OF PRUSSIA

295 76 95

30 JOINT BASE MCGUIRE-DIX-LAKEHURST

PHILADELPHIA

1

EXECUTIVE SUMMARY TENANT SF

1 Redner's 47,638 SITE PLAN & 2A CHINA CAFE 1,200 2 DENTAL PRACTICE 1,120 TENANT ROSTER 3 Yashoda's Indian Kitchen 1,600 4 Final Score Sports Bar & Grill 3,200 5 / ' $' 2,000 Doral Garden Drive 6-7 St. Mary Medical* 2,240 8 D's Laundromat 1,480 12A St. Mary Medical* 9,900 Totals 70,378 1

12A 8 6-7 2345 2A

St. Mary’s Medical expanded its operations Dunks Ferry Road to two non-contigous spaces

EXTRA SPACE STORAGE (NOT OFFERED)

PYLON SIGN Knights Road

 BENSALEM SQUARE ABOUT ANCHOR TENANTS

REDNER’S WAREHOUSE MARKETS ST. MARY MEDICAL CENTER Founded in 1970, Redner’s Warehouse Markets is an employee-owned American St. Mary Medical Center is a primary healthcare provider for children through supermarket chain that currently operates 42 Redner’s Markets and 21 Redner’s seniors. St. Mary has a 371-bed hospital in Bucks County and provides care through Quick Shoppe convenience stores located throughout Pennsylvania, Delaware and numerous office locations throughout nearby communities. A member of Trinity Maryland. The Company’s grocery stores average 45,000 – 50,000 square feet and Health, St. Mary operates on a Christian based philosophy and has operated in are typically found in smaller rural towns or the outskirts of urban areas. As part of Bucks County since 1973. St. Mary Medical offers numerous services at Bensalem the Company’s business plan, they implement minimal marketing expenses in an Square including: Mother Bachmann Maternity Center, St. Mary Children’s Health attempt to manage controllable operating costs. Redner’s has its headquarters in Center, St. Mary Adult Health Center and St. Mary Family Resource Center. Reading, PA, its main distribution warehouse is located in Maidencreek, PA, and employs over 4,000 people. The Company is 100% employee owned, which gives it a ST. MARY MEDICAL CENTER COMPANY PROFILE competitive advantage in customer service and store performance. No. of Beds 371 No. of Physicians 700 RENDER’S MARKET COMPANY PROFILE No. of Employees 3,200 No. of Supermarkets 42 Website stmaryhealthcare.org No. of C-Stores 21 Trailing Sales (2017) $870M TRINITY HEALTH COMPANY PROFILE Headquarters Reading, PA No. of Hospitals 94 Store Locations PA, MD, DE No. of Outpatient Facilitates 109 Website www.rednersmarkets.com No. of Physicians 7,800 No. of Employees 133,000 2018 Revenue $18.3 Billion 2018 Operating Income $408.3 Million Website trinity-health.org

PROPERTY OVERVIEW 13 Retail Market Overview POSITIONED WITHIN BUCKS COUNTY’S PRIMARY RETAIL NODE Bensalem Square’s location along Knights Road, just 0.25 miles from the intersection of Street Road, positions it within a major regional retail corridor, which has attracted many of the nation’s top retailers due to the market’s wide trade radius and growth profile. Simon Property Group’s Philadelphia Mills is located 0.5 miles from the property along Knights Rd. Kohl’s and Ross are located at the intersection of Street Road and Knights Road (0.25 miles away). Other notable retailers in the immediate area are Giant (0.9 miles), A.C. Moore (1.2 Miles) and Dick’s (1.25 Miles).

BUCKS COUNTY RETAIL TRENDS & STATISTICS The Lower Bucks County retail market, made up of approximately 26 million SF in 2018, experienced a 70 basis point decrease in vacancy since 2013. Over the last ten years, the submarket has experienced net absorption of over 1.1 million square feet of retail despite delivering nearly 1.3 million square feet of retail over this same time period. Of the 26 million square feet of retail within Lower Bucks County, more than 15.7 million square feet are located within shopping centers. The average vacancy rate for shopping centers within the submarket is 7.3%, an improvement of 120 basis points from the ten year high in 2013.

RETAIL MARKET SNAPSHOT RETAIL CENTERS SNAPSHOT

Total Retail Inventory 2018 26,427,757 Total Retail Inventory 2018 15,716,061

Occupancy as of Q3 2018 93.70% Occupancy as of Q3 2018 92.70%

2018 Net Absorption 118,974 2018 Net Absorption -115,043

8.00% 400,000 10.00%10.00% 300,000300,000 7.10% 9.00%9.00% 250,000250,000 7.00% 300,000 8.60%8.60% 6.30% 200,000 8.00%8.00% 200,000 6.00% 5.90% 200,000 7.30% 7.40% 7.30%150,000 7.10% 7.40% 150,000 5.60% 7.00%7.00% 7.10% 100,000 5.00% 100,000 100,000 5.10% 6.00% 6.10% 6.00% 6.10% 50,000 4.00% 0 5.00% 50,000 5.00% 0 0 3.00% 4.00% -100,000 4.00% -50,000 -50,000 3.00% 2.00% -200,000 3.00% -100,000 -100,000 2.00% 2.00% -150,000 1.00% -300,000 -150,000 1.00% -200,000 1.00% -200,000 0.00% -400,000 0.00% -250,000 2011 2012 2013 2014 2015 2016 2017 2018 0.00% 2011 2012 2013 2014 2015 2016 2017 2018 -250,000 Net Absorption Vacancy 2011 2012Net 2013 Absorption 2014 2015 2016Vacancy 2017 2018 Net Absorption Vacancy

MARKET OVERVIEW Bucks County Overview Bensalem Square is situated in Bucks County, the third wealthiest county in the state of Pennsylvania and part of the demographically institutional marketplace of the Philadelphia MSA. Located approximately 15 miles north of Center City Philadelphia, encompassing 608 square miles, and home to more than 628,000 residents with a work force population greater than 325,000 it is strategically located in the Northeastern Corridor. The County is supported by a mature, multi modal transportation system, catering to the expanding population and developing economy. Bucks County is known for its growing biotechnology industry, robust tourism sector, and strong consumer demographics, with a county-wide median household income of over $82,000, approximately 36% higher than the median household income nationally at $60,300.

BENSALEM TOWNSHIP OVERVIEW Long NEW YORK ¦¨§495 The Township is an emerging leader in environmental, technological, and economic practices. Located in Bucks 78 ELIZABETH LEHIGH County, Pennsylvania, Bensalem Township is a vibrant 95 VALLEY ¦¨§95 community consisting of approximately 60,000 residents ¦¨§ and more than 900 commercial businesses. Accessibility to nearly all major forms of transportation including the Pennsylvania Turnpike, I-95, and major regional bus and train corridors provide easy access to employment hubs 202 and have enabled the area to flourish. 476 276 95

422 PRINCETON ADVANTAGEOUSLY POSITIONED 195 ¨§95 BENSALEM ¦ Benefitting from its central location between Philadelphia 76 BENSALEMKING SQUARE OF 95 (15 miles) and New York City (82 miles), Bucks County has PRUSSIA 295 76 30 become the 4th fastest growing county in Pennsylvania and 130 the third wealthiest county in Pennsylvania. Bucks County’s PHILADELPHIA transportation network has had an enormous impact on its 1 economic, cultural, and social characteristics. The network CHERRY 206 95 consists of an assortment of transportation modes with 295 HILL direct and multiple access points to both the Pennsylvania WILMINGTON

30 Turnpike (I-76) and I -95, access to the major north south 40 route of America’s rail system, a deep water port combined with international and regional air access (Philadelphia Airport 25 miles), Bucks County enjoys a competitive advantage with ready access to markets of both producers and consumers, resources that are increasingly vital to companies competing in a global economy. ATLANTIC CITY

MARKET OVERVIEW MAJOR TOURISM ECONOMY BURGEONING BIO SCIENCE INDUSTRY Tourism is a main driver of the Bucks County economy, combining to produce an economic Bucks County along with neighboring Montgomery County have helped the Philadelphia impact of nearly $1 billion in 2015. The tourism industry supports 12,000 jobs and grosses MSA achieve the #6 ranking on Genetic Engineering and Biotechnology News annual more than $126 million in federal, state, and local taxes. Sesame Place, a family theme list of Top Biopharma Clusters in the country. The County is home to the Pennsylvania park with 25 rides based on the Sesame Street television series attracts thousands of Biotechnology Center of Bucks County, which hosts 38 companies and approximately families per year. Lower Bucks County is also home to Parx Casino and Race Course, a 12 research organizations and generates an economic impact of $1.8 billion state wide. 260,000 square foot gaming and entertainment destination in Bensalem Township. The Additionally, According to the Milliken Institute, it is projected that by 2020, one out of complex features an expansive casino, live horse racing, and a synergistic mix of dining four people in Bucks County will work in biotechnology. As Bucks County experiences and nightlife options Parx Casino and Race Course is the second highest grossing casino rapid growth in biotechnology, they also continue to be an industrialized focal point with in the state, and is a major economic driver for the county, bringing in more than $603 large scale employers including U.S. Steel in Falls Township, and the Vulcanized Rubber million dollars in 2018. & Plastics and Robertson Tile companies in Morrisville.

Parx Casino NOTABLE BUCKS COUNTY TOP EMPLOYERS

Company Industry Parx Casino Tourism & Leisure Comcast Telecommunications & Cable Doylestown Hospital Healthcare Saint Mary Medical Center Healthcare Grand View Health Healthcare Pennsbury School District Education Council Rock School District Education Sesame Place Tourism & Leisure Excel Home Care Healthcare Bucks County Government

Sesame Place Peddler’s Village Covered Bridge Road

BENSALEM SQUARE Mercer Mansion

SUPERIOR QUALITY OF LIFE AND ACCESS TO PREMIER ACADEMIC INSTITUTIONS Situated within close proximity to Philadelphia, and New York, the County is strategically positioned, enabling residents to easily commute to major employment hubs while enjoying the amenities and space offered by the suburbs. Home to 5 colleges, 15 public school districts and 8 private schools, Bucks County offers residents an abundance of high-quality educational options. Time Magazine recently ranked 5 Bucks County public high schools within the top 500 in the country for 2016, further increasing its appeal. The County also offers plentiful outdoor activities with 16 county and state parks totaling 7,500 acres allowing hikers to enjoy the 475 miles of trails. Further enhancing the quality of life residents and tourists enjoy, the rolling hills, deep well-drained soils, and moderate climate combine to make Bucks County one of the premier grape growing regions of the East Coast and is home to the Bucks County Wine Trail, comprised of 9 wineries. Bucks County has a distinguished history and natural beauty that create an ideal setting in which to live, work, and play. Collectively, historic, natural, and scenic resources contribute to the county’s Bucks County Playhouse unique identity and sense of place.

BUCKS COUNTY DEMOGRAPHICS

Radius 1 MILE 3 MILES 5 MILES BUCKS COUNTY Population 18,467 109,288 299,999 628,341

Households (#) 7,111 37,980 117,710 250,646

Median Age 38.4 40.8 42.0 43.5

Average HH Income $75,957 $79,840 $79,201 $101,384

Median HH Income $59,085 $62,742 $61,833 $82,031

Bucks County Winery Washington’s Crossing

MARKET OVERVIEW