806 New Holland Ave Lancaster, PA 17602

Turkey Hill - Lancaster, PA | 1 TABLE OF CONTENTS Investment Analysis...... 4-6 Tenant Overviews...... 7-8 Location Overview...... 9-12

Lead Investment Advisors

Derrick Dougherty First Vice President Investments National Retail Group License: PA RS305854 Ph: (215) 531-7026

Steve Garthwaite Senior Associate National Retail Group License: PA RS332182 Ph: (215) 531-7025

Nick Geaneotes Associate National Retail Group License: PA RS350646 Ph: (215) 531-7071

Broker of Record: Sean Beuche License: PA RM424190

2 | Turkey Hill - Lancaster, PA Franklin & Marshall (2,400 Full Time Students) (6,000 Seat Baseball Park) Downtown Lancaster (59,322 Population)

1 Mile Away

Station Square

J.P. McCaskey High School (2,734 Total Enrolled) New Holland Ave (15,063 VPD)

Grandview Plaza

ation c o l

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Turkey Hill 806 New Holland Avenue Lancaster, PA 17602

Turkey Hill - Lancaster, PA | 3 INVESTMENT ANALYSIS

LEASE SUMMARY $1,409,090 5.50% $77,500 Tenant Turkey Hill PRICE CAP RENT Guarantor EG Retail Group Lease Type NNN Ground Lease ANNUALIZED OPERATING DATA Gross Leasable Area 3,483 SF Term Dates Base Rent PSF Increase Lot Size 1.5 Acres Years 1-5 11/1/1997 - 10/31/2002 $48,000 $13.78 - Year Build 1997 Years 6-10 11/1/2002 - 10/31/2007 $53,760 $15.43 12% Roof and Structure Tenant is responsible Years 11-15 11/1/2007 - 10/31/2012 $60,216 $17.29 12% Base Lease Term 20 Years Years 16-20 11/1/2012 - 10/31/2017 $67,440 $19.36 12% Lease Commencement November-97 Years 21-30 (Current) 11/1/2017 - 10/31/2027 $77,500 $22.25 15% Lease/ Rent Expiration October-27 Option Terms Term Remaining 7+ Years Years 31-35 (Option 1) 11/1/2027 - 10/31/2032 $85,250 $24.48 - Rent Increases 10% Increase in Options Years 36-40 (Option 2) 11/1/2032 - 10/31/2037 $93,775 $26.92 10% Landlord & Tenant shall provide certificates Estoppel within (20) days request Years 41-45 (Option 3) 11/1/2037 - 10/31/2042 $103,152 $29.62 10% Options Four, (5) Year Options Years 46-50 (Option 4) 11/1/2042 - 10/31/2047 $113,468 $32.58 10% Autorenewal, unless Tenant provides notice Option Notice otherwise (180) days prior to Lease expiration

PROPOSED NEW FINANCING Equity (45%) $634,091 Loan to Value (55%) $775,000 Interest Rate 3.55% Amortization 25 Years Term 7 Years Annual Debt Service ($46,808) Cash Flow After Debt Service $30,692 Debt Service Coverage Retatio 1.66 *Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative.

4 | Turkey Hill - Lancaster, PA INVESTMENT HIGHLIGHTS PRICE: $1,409,090 | CAP: 5.50% | RENT: $77,500

About The Investment: • EG Retail Group Guaranteed Lease with over (7) Years Remaining on Term • Absolute Triple Net (NNN) Ground Lease with Zero Landlord Responsibilities • Strong Roots in Submarket having Operated at this Site for over (22) Years • Essential Retailer: Tenant has been open, operating, and paying rent • Attractive Rental Increases of Ten Percent (10%) every five years in the Option Periods

• 4th Most Visited Turkey Hill in the Brand (Source: Placer.ai)

Location Highlights: • Centralized Location l Just over a mile away from Downtown Lancaster, PA (187K+ Population in a 5-mile radius) • Signalized Intersection l Turkey Hill sits on New Holland Avenue & Ross Street with Average Traffic Counts exceeding 15,000 Vehicles Per Day • Dense, Stable Middle-Class Demographics l Average Household Income is $71.5K in a 3 mile radius & 179K Residents within a 5 mile radius • Major Economic Drivers l Subject Site is located just five miles from Dutch Wonderland, a (35) ride theme park rated “Best Family Park of 2019” by Amusement Today • .90 Miles from U.S. 30 Exit (68,152 Vehicles Per Day)

Tenant and Brand Highlights: • Background – Turkey Hill was founded in 1931 and has over 260 locations across Pennsylvania, Ohio, & Indiana • Tenant Status – Parent company, EG Group, is the world’s leading independent fuel station and operator with ±1,700 locations in US, including recently acquired Cumberland Farms • Track Record – EG Group retails more than $2.5 billion gallons of fuel & $3 billion with merchandise sales on an annualized basis – The company is rated “B1” by Moody’s • 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)

Turkey Hill - Lancaster, PA | 5 LEASE ABSTRACT

Tenant Turkey Hill Minit Markets Guarantor EG Group Commencement Date November 1, 1997 Expiration Date October 31, 2027 Initial Term (20) Year Base Term

Lease Autorenewal, unless Tenant provides notice Option Notice otherwise (180) days prior to Lease expiration Landlord & Tenant shall provide certificates within (20) Estoppel/SNDA 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 Utility expenses Tenant is responsible for Roof & Structure repair and Roof & Structure replacement HVAC (Maint & Replacement) Tenant is responsible for HVAC repair & replacement

Tenant may use the Premises for any lawful purpose and Permitted Use for the operation of a Turkey Hill Minit Market Tenant has the right to assign this lease; in event of Assignment Note assignment, Tenant will remain liable for its obligations under this Lease

6 | Turkey Hill - Lancaster, PA TENANT OVERVIEW

Lancaster, PA B1 1967 260+ minitmarkets.com Headquarters Moody’s Rating Founded Locations Website

History Current Turkey Hill Dairy began in 1931 during the Great Depression, when Turkey Hill Dairy, or simply known as Turkey Hill, is an American brand of farmer Armor Frey began selling bottled milk to neighbors from his iced tea, ice cream and other beverages and frozen desserts distributed sedan. Frey’s family obtained the farm directly from Thomas and throughout the United States and internationally. The company, which Richard Penn, sons of , and the sheepskin deed to the is headquartered in Conestoga, Pennsylvania, was owned by farm refers to “turkeyhill”. Turkey Hill Ridge had been given its name since 1985 until it was sold to private equity firm Peak Rock Capital in by the Conestoga Indians for the wild turkeys found there, so the 2019. The company is operated independently from Turkey Hill Minit family decided to name their dairy after the name on the deed and Markets, a chain of more than 260 gas station convenience stores that the nearby geographical feature. carry Turkey Hill products in Pennsylvania, Ohio and Indiana.

Turkey Hill - Lancaster, PA | 7 IN THE NEWS

LANCASTER, PA — June 3, 2020 Turkey Hill LLC (“Turkey Hill” or the “Company”), a leading manufacturer and distributor of branded ice cream and refrigerated drinks, today announced that it has acquired an ice cream and novelty production facility in Searcy, Arkansas from Yarnell Ice Cream, LLC (“Yarnell’s”), a subsidiary of Schulze & Burch Biscuit Company.

The newly acquired 100,000 square foot production facility is Turkey Hill Announces Significant Ice Cream SQF-certified and manufactures high-quality ice cream and frozen Expansion With Acquisition Of Arkansas novelty products across various sizes and formats. The addition of this facility further expands Turkey Hill’s production capacity, Production Facility capabilities, and geographic reach. Published: June 3, 2020 Rob Pistilli, Managing Director of Peak Rock Capital, commented, “We are delighted that Turkey Hill has closed this acquisition. This investment comes with significant capacity expansion and novelty production capabilities that will enhance Turkey Hill’s brand appeal and ability to service and grow its loyal customer base. We are enthusiastic about Turkey Hill’s progress to-date, and this investment is a testament to Peak Rock’s support of the Company’s continued growth and expansion.”

ABSTRACT Expansion • Turkey Hill LLC announced that it has acquired an ice cream and nov- elty production facility in Searcy, Arkansas from Yarnell Ice Cream, LLC (“Yarnell’s”)

Increased Capability • The addition of this facility further expands Turkey Hill’s production capacity, capabilities, and geographic reach.

Footprint • The newly acquired 100,000 square foot production facility is in addi- https://www.turkeyhill.com/press/turkey-hill-dairy-press/news-releas- tion to Turkey Hill’s existing footprint already includes one of the largest es/2020-06-03-searcy production facilities of ice cream and refrigerated drinks in the country - a state-of-the-art facility located in Conestoga, PA

8 | Turkey Hill - Lancaster, PA GEOFENCE SURVEY - FOOT TRAFFIC

Subject Property Economic Driver #1 Economic Driver #2

Total Visits 243.8K 1.31M 1.35M

State Ranking 4 / 107 12 / 136 21 / 99

State Rank Percentile 97% 91% 79% 50 Mile Ranking 1 / 19 6 / 33 6 / 28

Local Rank Percentile 100% 84% 82% Distance From Subject Subject 1.1 Miles 1.9 Miles

Turkey Hill - Lancaster, PA | 9 COMPETITION SURVEY

Turkey Hill Turkey Hill 1004 Harrisburg Ave, 806 New Holland Avenue Lancaster, PA Lancaster, PA 17602 7/8 1/8 Local Ranking Local Ranking Within 3 Miles Within 3 Miles

Turkey Hill Turkey Hill 5 W Clay St, 1503 Columbia Ave, Lancaster, PA Lancaster, PA 3/8 6/8 Local Ranking Local Ranking Within 3 Miles Within 3 Miles

Turkey Hill Turkey Hill 936 Columbia Ave, 1562 Millport Rd, Lancaster, PA Lancaster, PA 8/8 Turkey Hill 2/8 460 S Duke St, Local Ranking Lancaster, PA Local Ranking Within 3 Miles 5/8 Within 3 Miles Local Ranking Within 3 Miles Turkey Hill 520 Hershey Ave, Lancaster, PA 4/8 Local Ranking Within 3 Miles

10 | Turkey Hill - Lancaster, PA TRADE AREA MAP

Of Site Traffic within a Of Site Traffic within a 70% 5-Mile Radius consists of: 85% 5-Mile Radius consists of:

55,581 34,674 4.79 70,775 42,976 9.63 Population Family Households SQ. Miles Population Family Households SQ. Miles Trade Area Trade Area

85% 70%

Turkey Hill 806 New Holland Avenue Lancaster, PA 17602

Turkey Hill - Lancaster, PA | 11 Golden Triangle Mall

Turkey Hill 806 New Holland Avenue Lancaster, PA 17602

Station Square

Grandview Plaza Clipper Magazine Stadium (6,000 Seat Baseball Park)

Franklin & Marshall J.P. McCaskey High School (2,400 Full Time Students) (2,734 Total Enrolled)

Downtown Lancaster (59,322 Population)

12 | Turkey Hill - Lancaster, PA LOCATION OVERVIEW

8th 101st 50 miles 75 miles 178,648 $80,390 LARGEST CITY LARGEST AWAY FROM THE AWAY FROM THE TOTAL POPULATION AVG HOUSEHOLD IN THE STATE OF METROPOLITAN STATE CAPITAL LARGEST CITY IN WITHIN A INCOME WITHIN A PENNSYLVANIA AREA IN THE USA HARRISBURG, PA PA, 5 MILE RADIUS 5 MILE RADIUS

Lancaster County is known worldwide for its rural countryside and Amish population, the City of Lancaster is the County’s urban center with its own individual history and physical environment. Lancaster’s rich architectural heritage makes the City distinctive and unique. Whether it’s Amish farmlands and fresh air with outdoor adventure or downtown energy and vibrant artistry that you’re looking for - or some combination of all, Lancaster County’s got it all. Lancaster Central Market is the nation’s oldest continuously operating farmers’ market, offering fresh meats and produce since 1730. Today, housed in a magnificent 1889 Victorian gem, Market offers locals & visitors the opportunity to buy everything from fresh-from-the-farm meats and produce to locally made artisan cheeses, and desserts. Not only is Lancaster City filled with history, attractions, shops, and restaurants, it also plays host to highly-anticipated and well attended events.

THE CENTRAL MARKET: LANCASTER GENERAL CLIPPER MAGAZINE FRANKLIN AND MARSHALL: • Central Market is a historic public HOSPITAL: STADIUM: • Franklin & Marshall College is a market located in Penn Square, in private residential liberal arts college • A 590-bed facility in Lancaster. It is • A 6,000-seat baseball park in downtown Lancaster, Pennsylvania. in Lancaster, Pennsylvania. It employs among an elite group of “Best of the Lancaster, PA. Clipper Magazine Until 2005, the market was the oldest 175 full-time faculty members and has Benchmark Hospitals”- institutions that Stadium also serves as the corporate municipally-operated market in the a student body of approximately 2,400 have achieved 100 Top Hospital honors headquarters for the Atlantic League. United States. for seven of the last nine years. full-time students.

Turkey Hill - Lancaster, PA | 13 LOCATION OVERVIEW Local Economy - Lancaster, PA Lancaster is a city located in South Central Pennsylvania which serves as the seat of Major Employers Pennsylvania’s Lancaster County and one of the oldest inland towns in the US. The city’s Organization/Company Industry Type primary industries include healthcare, tourism, public administration, manufacturing, and Lancaster General Hospital Healthcare both professional and semi-professional services. Lancaster City has been in the process of recreating itself, particularly since 2005, with a growth of specialty shops, boutiques, bars, RR Donnelley & Sons Company Communications clubs, and reinvestment in downtown institutions and locations. Giant Food Stores LLC Grocery Nordstrom Inc Retail Dart Container Corporation Manufacturing County of Lancaster Government Masonic Villages of the Grand Lodge Healthcare Lancaster School District Education Eurofins Lancaster Laboratories Inc Pharmaceutical

Submarket and Transportation Erie is well connected to the Interstate Highway System. There are six “Erie exits” along Interstate 90, a major cross-country thoroughfare running from Boston to Seattle. Erie is the northern terminus of Interstate 79, which travels south to and, ultimately, West Virginia.

Turkey Hill 806 New Holland Avenue Lancaster, PA 17602

14 | Turkey Hill - Lancaster, PA LOCATION OVERVIEW

Turkey Hill READING 806 New Holland Avenue Lancaster, PA 17602 HARRISBURG

5 0

M g i in le d s ea R to o s t Ha ile rris 35 M burg 75 Miles to Ph iladelp hia PHILADELPHIA

Lancaster, Pennsylvania

RADIUS 1 MILE 3 MILE 5 MILES Average HH Income $69,426 $71,487 $80,390

Median HH Income $52,821 $53,306 $60,827

Population 22,196 106,279 178,648

Households(#) 8,367 40,820 68,907

Turkey Hill - Lancaster, PA | 15 Investment Advisors

Derrick Dougherty Steve Garthwaite First Vice President Investments Senior Associate National Retail Group National Retail Group License: PA RS305854 License: PA RS332182 Ph: (215) 531-7026 Ph: (215) 531-7025

NON-ENDORSEMENT AND DISCLAIMER NOTICE NON-ENDORSEMENTS Scott Woodard Mark Krantz Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The Senior Associate Senior Associate presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation National Retail Group National Retail Group of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included License: PA RS329242 Lic: PA RS336064 | NJ 1863254 for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DISCLAIMER 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 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 subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, Pavan Koneru Nick Geaneotes the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition Associate Associate of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its National Retail Group National Retail Group License: PA RS350910 License: PA RS350646 occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; Ph: (215) 531-7071 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 service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. Marcus & Millichap Real Estate Investment Services of Seattle, Inc. Broker of Record: Sean Beuche License: RB062197C License: PA RM424190 16 | Turkey Hill - Lancaster, PA 806 New Holland Ave Lancaster, PA 17602

Turkey Hill - Lancaster, PA | 17