2 S Whitehorse Pike Berlin, NJ 08009

EXCLUSIVE OFFERING www.DoughertyTeam.com ROYAL FARMS | BERLIN, TABLE OF CONTENTS Lead Investment Advisors Investment Analysis...... 04 Derrick Dougherty Tenant Overview...... 09 First Vice President Investments Lic: PA RS305854 (215) 531-7026 Location Overview...... 12

Scott Woodard Senior Associate Lic: PA RS329242 (215) 531-7058

Mark Krantz Senior Associate Lic: NJ 1863254 | PA RS336064 (215) 531-7056

Steve Garthwaite Senior Associate License: PA RS332182 (215) 531-7025

Pavan Koneru Associate Lic: PA RS350910 (215) 531-7068

Nick Geaneotes Associate Lic: PA RS350646 (215) 531-7071

Colin Reder Associate (215) 531-7057

Broker of Record: Brian Hosey License: NJ 1434917 2 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM Berlin Circle Plaza Diggerland USA

ROYAL FARMS | BERLIN, NEW JERSEY

Hwy 73 (34,332 VPD)

S. Whitehorse Pike (26,310 VPD)

Berlin Farmers Market

2 S. White Horse Pike Berlin, NJ

Berlin Cross-Keys Rd (17,414 VPD)

3 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM ROYAL FARMS | BERLIN, NEW JERSEY

01 INVESTMENT ANALYSIS

4 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM INVESTMENT OVERVIEW ROYAL FARMS | BERLIN, NEW JERSEY $6,190,000 5.25% $325,000 PRICE CAP RENT LEASE SUMMARY ANNUALIZED OPERATING DATA Tenant Royal Farms Term Dates Base Rent PSF Increase Guarantor Corporate Years 1-10 (Current) 12/5/2019 - 12/31/2029 $325,000 $60.51 - Lease Type NNN Ground Lease Years 11-20 1/1/2030 - 12/31/2039 $357,500 $66.56 10% Gross Leasable Area 5,371 SF Option Terms Lot Size 2.03 Acres Years 21-30 (Option 1) 1/1/2040 - 12/31/2049 $393,250 $73.22 10% Year Build 2019 Years 31-40 (Option 2) 1/1/2050 - 12/31/2059 $432,575 $80.54 10% Roof and Structure Tenant is Responsible Years 41-50 (Option 3) 1/1/2060 - 12/31/2069 $475,832 $88.59 10% Base Lease Term (20) Year Base Term Lease Commencement December-19 Lease/ Rent Expiration December-39 Term Remaining (19) Years Rent Increases 10% Increases every 10 Years Estoppel Tenant to provide certificate within (10) days request Options Three, (10) Year Options Option Notice (90) Days Notice prior to Term Expiration

PROPOSED NEW FINANCING Equity (35%) $2,166,500 Loan to Value (65%) $4,023,500 Interest Rate 3% Amortization 30 Years Term 10 Years Annual Debt Service ($203,559) Net Cash Flow After Debt Service $121,441 Debt Service Coverage Ratio 1.60 *Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.

5 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM INVESTMENT HIGHLIGHTS ROYAL FARMS | BERLIN, NEW JERSEY PRICE: $6,190,000 | CAP: 5.25% | RENT: $325,000

About the Investment: • Long Term Corporate Lease with (19) Years Remaining on Term • Absolute Triple Net (NNN) Ground Lease with Zero Landlord Responsibilities • Significant Tenant Investment featuring (16) premium gas pumps and state-of-the-art • Essential Retailer in which Tenant has been open and operating • Attractive Rental Increases of Ten Percent (10%) in Year 11 & every Option Period

About the Location: • Primary Retail Thoroughfare l Surrounded by National Tenants such as Walmart, Chick-Fil-A, McDonald’s, CVS, Home Depot, Shop Rite, AutoZone, Advance Auto Parts, , USPS, & Meineke • Highly Trafficked Location l Royal Farms at the intersection of S. White Horse Pike & Berlin Cross-Keys Road with a combined vehicle count in excess of 43.5K cars/day • Stable Upper Middle-Class Demographics l Average Household Income is $97K in a 3-mile radius & 123.5K Residents within a 5-mile trade area • Large Parcel Size l The Subject Property sits on a (2+) Acre Parcel at a signalized intersection providing for numerous redevelopment options in the future if necessary • Centrally Located l Approximately 20 Miles from Philadelphia & 12 Miles from Cherry Hill

About the Tenant & Brand: • Chain Overview | Royal Farms has over 210 convenience store gas station locations in , , , & • Firm Status | The Company is privately held & has been expanding in the Mid-Atlantic Region since 1959 – it is estimated each new facility costs $2.5M to construct – showing the brand’s commitment to its sites • Company Growth | Royal Farms has recently constructed (71) state-of-the-art gas & convenience facilities with an additional (3) locations under development currently • Essential Retail | Convenience stores are deemed an essential business and are considered recession proof tenants as over half of convenience stores have seen an increase in sales in the current health crisis per the National Association of Convenience Stores (NACS)

6 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM LEASE ABSTRACT ROYAL FARMS | BERLIN, NEW JERSEY

Tenant TWO FARMS, INC. D/B/A ROYAL FARMS Guarantor Corporate Square Footage 5,371 SF Commencement Date December 5, 2019 Expiration Date December 31, 2039 Initial Term (20) Year Base Term

Option Notice Tenant to provide notice (90) days prior to Term expiration Estoppel/SNDA Tenant to provide certificate within (10) days request

Taxes Tenant is responsible for Real Estate Taxes Insurance Tenant is responsible for Insurance Expenses CAM Tenant is responsible for CAM Expenses Utilities Tenant is responsible for Utilities Expenses Roof & Structure Tenant is responsible for repair & replacement of Roof and Structure HVAC (Maint & Replacement) Tenant is responsible for HVAC repairs & replacement

Landlord shall not lease space or engage in a Purchase and Sale agreement within (1)-mile of the Subject Property with any gasoline or Exclusive other fuel pump operation; any quick service restaurant; quick serve coffee establishment; stand-alone convenience store; or a dollar store

Tenant may use Premises for the operation of a Royal Farms Store with Permitted Use accompanying fuel pumps & tanks, or any lawful purpose.

During the final year of any Option Term, Tenant shall have the option to purchase the Subject Property at Fair Market Value; (FMV) shall Option to Purchase be determined based on a mutually selected appraiser's Opinion of Value on the Premises, which will be without regard to the value of the improvements located thereon, but inclusive of the Land Lease value

Tenant may not assign Lease without Landlord's consent; in event of Assignment Note assignment, Tenant will remain liable for its obligations under this Lease

7 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM SITE OVERVIEW ROYAL FARMS | BERLIN, NEW JERSEY

Berlin Cross-Keys Rd (17,414 VPD) 2 S. Whitehorse Pk. Full Access (IN) Berlin, NJ Right Only (Out) ADDRESS 2019 YEAR BUILT Right Only (Out) Full Access (IN)

5,371 SF CONVENIENCE STORE AREA

2.03 Acres S. Whitehorse Pike (26,310 VPD) LAND AREA

8 PUMPS GAS STATION Full Access (IN) Right Only (Out) 43,724 VPD COMBINED TRAFFIC

MAJOR ROADWAYS White Horse Pike: 26,310 VPD Berlin Cross Keys Rd: 17,414 VPD Right Only (Out) Full Access (IN) Highway 73: 34,332 VPD

8 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM ROYAL FARMS | BERLIN, NEW JERSEY

02 TENANT OVERVIEW

9 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM TENANT DESCRIPTION ROYAL FARMS | BERLIN, NEW JERSEY

BEST MID SIZE TOP CONVENIENCE TENANT NAME: Royal Farms EMPLOYER STORES OWNERSHIP: Privately Owned 2018 2019 DESCRIPTION: Convenience Store FORBES CSP (2018) MAGAZINE AREA SERVED: Mid-Atlantic States • AWARDED BEST MID-SIZED EMPLOYER BY YEAR FOUNDED: 1959 FORBES MAGAZINE (2017 & 2018) • BEST EMPLOYER FOR DIVERSITY BY # OF LOCATIONS(2019): 214+/- FORBES MAGAZINE (2019) HEADQUARTERS: , MD • 33RD TOP CONVENIENCE STORE BY CSP MAGAZINE (2020) WEBSITE: www.RoyalFarms.com

Royal Farms is a privately-owned chain of convenience stores Royal Farms’ major competitors include Wawa, , Rutter’s, High’s, headquartered in Baltimore, Maryland. As of 2019, the company and 7-Eleven. In September 2014, Royal Farms purchased naming operates 214 stores throughout Delaware, Maryland, Pennsylvania, and rights to the Baltimore Arena. According to Royal Farm’s website the Virginia. Many of the stores also have gasoline sold on the premises, as company was awarded Best Mid-Sized Employer (2017 & 2018) and well as their famous house made fried chicken and chicken sandwiches. Best Employer for Diversity (2019).

Royal Farms opened its first store in 1959 in Baltimore, Maryland. The company is headquartered in Baltimore. The chain sells many typical, convenience store items such as coffee, candy, soft drinks, bagels and donuts, lotto tickets, and other basic groceries. All locations also offer a kitchen serving hot food items such as chicken, Western Fries, along with sandwiches. Their current slogan is “Real Fresh. Real Fast. Real Green.”

10 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM RECENTLY FEATURED ROYAL FARMS | BERLIN, NEW JERSEY

A New Rival For Wawa, Sheetz? Convenience Store Chain Royal Farms Plans To Enter Lehigh Valley Market By: Anthony Salamone

Royal Farms, the convenience store chain known around the mid- Atlantic region for its fried chicken, appears ready to flap its wings for the first time in the Lehigh Valley. Two Farms Inc., the corporate owner of the Baltimore-based Royal Farms, has acquired property near Airport Road and Route 22 for $4.5 million, according to Lehigh County property records. Royal Farms officials did not return several messages seeking comment. Assuming a Royal Farms is built, it would mark its first entry in the Valley, an area that’s seen a healthy and growing competition for consumers’ wallets.

CONVENIENCE STORE CHAIN ROYAL FARMS ROYAL FARMS, BREWERY COLLABORATE ON ROYAL FARMS DONATES 20,000 POUNDS OF PLANS TO ENTER LEHIGH VALLEY MARKET BEER CELEBRATING CHAIN’S FRIED CHICKEN FOOD TO THE FOOD BANK OF SOUTH JERSEY INFORMATIONAL ARTICLE | CLICK TO READ INFORMATIONAL ARTICLE | CLICK TO READ INFORMATIONAL ARTICLE | CLICK TO READ

11 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM ROYAL FARMS | BERLIN, NEW JERSEY

03 LOCATION OVERVIEW

12 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM Diggerland USA

ROYAL FARMS | BERLIN, NEW JERSEY

Berlin Circle Plaza

S. Whitehorse Pike (26,310 VPD) Hwy 73 (34,332 VPD)

2 S. White Horse Pike Berlin, NJ

Berlin Farmers Market

Hwy 73 (34,332 VPD)

Berlin Cross-Keys Rd (17,414 VPD) S. Whitehorse Pike (26,310 VPD)

13 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM LOCATION OVERVIEW ROYAL FARMS | BERLIN, NEW JERSEY

TOP 10 EMPLOYERS

123,508 22% $96,397 Population Population Growth AVG. HH Income within a 5 mile radius Over Two Decades within a 5 mile radius LOCAL SCHOOLS AND COLLEGES School Name Students Enrolled Camden County College 23,379

Cherokee High School 2,144

Eastern Regional High School 1,955

Williamstown High School 1,798

Shawnee High School 1,597

Camden County Technical School 1,331

Timber Creek Regional High School 1,188

Winslow Township High School 1,180

Sterling High School 978

Overbrook High School 656

14 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM REGIONAL MAP ROYAL FARMS | BERLIN, NEW JERSEY

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t o A tl an tic City Berlin, New Jersey ATLANTIC CITY RADIUS 3 MILE 5 MILE 10 MILES Average HH Income $96,693 $96,397 $108,039

Median HH Income $73,507 $75,286 $85,941

Population 41,353 123,508 507,477

Households(#) 13,536 43,369 180,436

15 ROYAL FARMS | BERLIN, NEW JERSEY DOUGHERTYTEAM.COM Derrick Dougherty First Vice President Investments Lic: PA RS305854 (215) 531-7026

Scott Woodard Senior Associate Lic: PA RS329242 (215) 531-7058

Mark Krantz Senior Associate Lic: NJ 1863254 | PA RS336064 (215) 531-7056

Steve Garthwaite Senior Associate License: PA RS332182 (215) 531-7025

Pavan Koneru Associate NON-ENDORSEMENT AND DISCLAIMER NOTICE Lic: PA RS350910 NON-ENDORSEMENTS (215) 531-7068 Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Nick Geaneotes Associate ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Lic: PA RS350646 DISCLAIMER (215) 531-7071 The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a Colin Reder preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the Associate subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the (215) 531-7057 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes 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. Marcus & Millichap is a Our Locations: service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. Philadelphia, PA King Of Prussia, PA New York, NY 2005 Market Street #1510 200 N. Warner Road 260 Madison Avenue Marcus & Millichap Real Estate Investment Services of Seattle, Inc. Broker of Record: Brian Hosey Philadelphia, PA 19103 King Of Prussia, PA 19406 5th Floor License: RB062197C License: NJ 1434917 P: 215.531.7000 P: 215.531.7000 New York, NY 10016 2 S Whitehorse Pike Berlin, NJ 08009

www.DoughertyTeam.com EXCLUSIVELY OFFERED BY: DERRICK DOUGHERTY SCOTT WOODARD MARK KRANTZ STEVE GARTHWAITE (215) 531-7026 | PA RS305854 (215) 531-7058 | PA RS329242 (215) 531-7056 | NJ 1863254 (215) 531-7025 | PA RS332182 [email protected] [email protected] [email protected] [email protected]

NICK GEANEOTES PAVAN KONERU COLIN REDER (215) 531-7071 | PA RS350646 (215) 531-7068 | PA RS350910 (215) 531-7057 [email protected] [email protected] [email protected]