ACME (Albertsons Companies, Inc Guaranty)

5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260 OFFERING MEMORANDUM

ACTUAL PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 1 Financial Overview 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

PRIMARY TERM OFFERING SUMMARY Lease Year Increase Monthly Rent Annual Rent PRICE $10,003,908 11/1/2017 10/31/2018 - $45,434 $545,213 11/1/2018 10/31/2019 1.50% $46,116 $553,391 CAP RATE 5.45% 11/1/2019 10/31/2020 1.50% $46,808 $561,692 NOI $545,213 11/1/2020 10/31/2021 1.50% $47,510 $570,117 PRICE PER SQUARE FOOT $331.29 11/1/2021 10/31/2022 1.50% $48,222 $578,669 11/1/2022 10/31/2023 - $48,222 $578,669 RENT PER SQUARE FOOT $18.06 11/1/2023 10/31/2024 - $48,222 $578,669 YEAR BUILT 2006/2016 11/1/2024 10/31/2025 - $48,222 $578,669 APPROXIMATE LOT SIZE 1.88 Acres 11/1/2025 10/31/2026 - $48,222 $578,669 11/1/2026 10/31/2027 - $48,222 $578,669 GROSS LEASEABLE AREA 30,197 11/1/2027 10/31/2028 7.50% $51,839 $622,069 PARKING SPACES 91 11/1/2028 10/31/2029 - $51,839 $622,069 11/1/2029 10/31/2030 - $51,839 $622,069 TYPE OF OWNERSHIP Fee Simple 11/1/2030 10/31/2031 - $51,839 $622,069 Albertsons Companies, 11/1/2031 10/31/2032 - $51,839 $622,069 LEASE GUARANTOR Incorporated (Inc) 11/1/2032 10/31/2033 7.50% $55,727 $668,724 LEASE TYPE Absolute-Net 11/1/2033 10/31/2034 - $55,727 $668,724 11/1/2034 10/31/2035 - $55,727 $668,724 ROOF AND STRUCTURE Tenant Responsible 11/1/2035 10/31/2036 - $55,727 $668,724 11/1/2036 10/31/2037 - $55,727 $668,724 LEASE SUMMARY OPTIONS Lease Years Increase Monthly Rent Annual Rent LEASE COMMENCEMENT DATE 11/1/2017 LEASE EXPIRATION DATE 10/31/2037 11/1/2037 10/31/2042 7.50% $59,907 $718,879 11/1/2042 10/31/2047 7.50% $64,400 $772,795 LEASE TERM 20 Years 11/1/2047 10/31/2052 7.50% $69,230 $830,754 TERM REMAINING 20 Years 11/1/2052 10/31/2057 7.50% $74,422 $893,061 1.5% Years 2-5, INCREASES 11/1/2057 10/31/2062 TBD FMV/12 FMV 7.5% Every 5 Starting Year 11 11/1/2062 10/31/2067 TBD FMV/12 FMV OPTIONS TO RENEW 8, 5-Year 11/1/2067 10/31/2072 TBD FMV/12 FMV FIRST RIGHT OF REFUSAL Yes - Commencing Year 5 11/1/2072 10/31/2077 TBD FMV/12 FMV

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 2 Investment Overview 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

Marcus & Millichap is pleased to present ACME Market in Wildwood, New Jersey, the number one vacation destination in the United States according to Trip Advisor (2017). ACME Market is operating under a 20-year absolute-net lease with zero landlord responsibilities. There are 1.50 percent annual rent increases in years two through five, and 7.50 percent rent increases every five years beginning in year 11. The lease is backed by a corporate guaranty from Albertsons Companies, Incorporated (Inc), who registered more than $60 billion in revenue across 2,324 supermarkets nationwide.

The subject property sits on a large full block parcel at the signalized, hard corner intersection of Park Boulevard and West Hildreth Avenue. There is more than 200 feet of frontage along Park Boulevard. The tenant has demonstrated commitment. Safeway has been operating at this location for more than 10 years, and performed significant renovations in 2016. The tenant reports strong unit level performance with high sales per square foot and a low rent-to-sales ratio; contact the listing broker for more information.

Additional tenants are committing capital to the ACTUAL PROPERTY Wildwood market. Wharf Restaurant recently completed a $500,000 addition to their existing dining • ACME Market in Wildwood, New Jersey | The Number One Vacation Destination in the United States facility. The expansion included a new waterfront bar, According to Trip Advisor (2017) expanded outdoor seating, 32 new boat slips, parking lot improvements, and the installation of bocce ball • Brand New 20-Year Absolute-Net Lease | Zero Landlord Responsibilities and shuffleboard courts. Dollar General is also building • Strong Rent Increases | 1.50 Percent Annual Increases in Years Two Through Five | 7.50 Percent Rent a brand new 7,400-square foot retail store, valued at Increases Every Five Years Beginning in Year 11 $900,000. • Corporate Guaranty | Albertsons Companies, Incorporated (Inc) | Number 49 on June 2017 Fortune Wildwood also boasts significant entertainment venues. 500 List | Number Three on June 2017 Forbes America’s Largest Private Companies The Wildwood Convention Center is a 260,000-square foot facility. The convention center features a 7,000- • Tenant Demonstrates Commitment | More Than 10-Year Operating History | Significant Renovations seat Oceanfront Arena. Morey’s Piers, located on the Performed in 2016 Wildwood Boardwalk, operates three piers featuring more than 100 rides: Mariner’s Pier, Surfside Pier, and • Healthy Unit Level Financials | Low Rent-to-Sales | Tenant Reports High Sales Per Square Foot | Adventure Pier. Contact Listing Broker for Details

Additional tenants in the immediate vicinity include: • Large Full Block Parcel | Signalized, Hard Corner Intersection Park Boulevard and West Hildreth McDonald’s, Wawa, Walgreens, TD Bank, Domino’s, TD Avenue Bank, CVS, and many more. • Tenants Committing Capital to Wildwood Market | Wharf Restaurant Completed $500,000 Expansion ACTUAL PROPERTY | Dollar General Committing Nearly $1 Million to Build New Store

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 3 Tenant Overview - ACME 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

ACME Markets was founded in 1891, when two friends, Samuel Robinson and Robert Crawford, opened a small neighborhood grocery store at Second and Fernon Streets in South Philadelphia that emphasized quality products, low prices and friendly service. Over 125 years later, ACME remains dedicated to providing a high-quality grocery experience. Today, ACME operates 179 stores in Pennsylvania, New Jersey, Delaware, New York, Connecticut, and Maryland, employing more than 20,000 associates. ACME continues to offer consumers fresh and convenient supermarket solutions, which are all tailored to the specific needs of the neighborhoods ACME serves.

Albertsons is one of the largest food and drug retailers in the United States with a strong local presence, but on a national scale. As of February 25, 2017, the company operated 2,324 stores across 35 states and the District of Columbia under 20 well- known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Carrs and Haggen. Albertsons operates in 122 Metropolitan Statistical Areas (MSAs) in the United States. The company is ranked number one or number two by market share in 66 percent of those Metropolitan Statistical Areas (MSAs). Albertsons focuses on providing their customers with a service-oriented shopping experience, including convenient and value-added services through 1,786 pharmacies, 1,227 in-store branded coffee shops, and 385 adjacent fuel centers. The company employs nearly 273,000 talented and dedicated employees serving on average 34 million customers each week.

TENANT PROFILE TENANT TRADE NAME Acme OWNERSHIP Private TENANT New Albertson’s, Incorporate (INC) LEASE GUARANTOR Albertsons Companies, Incorporated (Inc) NUMBER OF LOCATIONS 2,324 HEADQUARTERED Boise, Idaho WEB SITE http://www.albertsons.com/#1 SALES VOLUME $59.7 Billion (2016) #49 on Fortune 500 (2017), #3 Forbes RANK America’s Largest Private Companies

ACTUAL PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 4 Aerial Overview 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

ACME Market in Wildwood, New Jersey | The Number One Vacation Destination in Brand New 20-Year Absolute-Net Lease | Zero Landlord Responsibilities the United States According to Trip Advisor (2017)

Tenant Demonstrates Commitment | More Than 10-Year Operating History | Large Full Block Parcel | Signalized, Hard Corner Intersection Park Boulevard Significant Renovations Performed in 2016 and West Hildreth Avenue

FoundedFounded in 1939 andand basedbased inin Boise,Boise, Idaho,Idaho, AlbertsonsAlbertsons Companies,Companies, Inc (“Albertsons”,LLC (“Albertsons”, or the or“Company”)the “Company”) is the 2ndis thelargest2nd traditionallargest traditional grocer in grocerthe Unitedin theStatesUnited Statesservingserving over 34over million34 millioncustomerscustomers per weekper andweek generatingand generating $60 billion$ in60 salesbillion annually.in sales Inannually January. 2015,In January Albertsons2015 merged, Albertsons with Safeway,merged withcreatingSafeway, a best-in-classcr e at ing a bestorganization-in-class organizationdedicated to bringingdedicated a betterto bringing shoppinga better experienceshopping to customersexperience acrossto customers the country.across The theCompany’scountry powerful. The Company’s combinationpowerful of strongcombination local presenceof strong and localnationalpresence scale, andvastnational range ofscale, brandsvast andrange products,of brands and service-orientedand products,and staffservice enable-oriented them to meetstaff evolvingenable them shoppingtomeet preferences.evolving shopping preferences. AsAsof of June 2017,2017, thethe CompanyCompany operatedopera ted2,3292, 329storesstores acrossacross 35 states35 states under under20 well-known20 well banners-known withbanners long operatingwi th long histories.operating Albertsonshis tori es . hasAl ber grown ts ons has grown strategicallystrategicallythrough througha as series eri es of ofstrategic strategicacquisiti acquisitions ons in inrecent recentyears yearsinto intoa a$ $2.82.8 billionbillion adjustedadjusted EBITDAEBITDA companycompany asas ofof fiscalfiscal yearyea r20162016 endedended FebruaryFebruary 25,25 2017,, 2017 , andandas asof ofQ Q11 20172017 thethe Company hadhad alreadyalready generatedgenerated $771.7$771 million.7 million in adjustedin adjusted EBITDA.EBITDA .

#1#1 // #2 By market share 2nd largest Operates in 34 million in 66% of the traditional 2,300+ $59.7 billion 122 MSAs 35 states annual sales customers grocer in the US retail stores including Washington, DC per week in which it operates

th $ 4 largest Home delivery in Ex perienced management $2.8 billion Currently ex ecuting e-commerce 8 of top 10 500 new items with 32 years adj. EBITDA launched every year $800 million platform US markets in FY 2016 in retail on average synergy realization plan in the US by end of FY 2017

One of the largest Nation’s largest brand retail employers 1,700+ in-store 380+ fuel 28 distribution 18 food and of USDA-certified 273,000 jobs pharmacies stations centers beverage plants organic products

COMPANY BANNERS

ACTUAL PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332134 Albertsons Companies, Inc 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

COMPETITIVE LANDSCAPE

Albertsons Companies, Inc is one of the largest food retailers and the second largest traditional grocers in the United States.

Note: • Store counts based on publically available information ACTUAL• Walmart, PROPERTY Costco, and Traget grocerysales based on a percentage of total sales as of the latest fiscal year. • Kroger and Albertsons sales exclude fuel sales of ~$14 billion and ~$3 billion, respectively Aerial Overview 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 8 Area Overview & Demographics 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile Population Households Household (HH) Incomes 2000 Population 15,654 24,882 60,479 2000 Households 7,065 10,582 25,282 2017 Average HH Income $63,577 $67,228 $69,870 2010 Population 14,046 24,252 59,902 2010 Households 6,495 10,327 25,352 2017 Median HH Income $44,094 $45,833 $49,017 2017 Population 13,655 23,269 59,962 2017 Households 6,329 9,934 25,284 2017 Per Capita Income $29,468 $28,701 $29,462 2022 Population 13,439 22,838 59,386 2022 Households 6,230 9,752 25,011

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 9 Market Overview - Wildwood, New Jersey 5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

Wildwood is a resort city that is very popular with vacationers and tourists mostly from New Jersey, Delaware, Maryland, Pennsylvania, New York, and even nearby parts of Canada (particularly Ontario and Quebec) during the summer months. The year-round population of 5,300 grows to more than 250,000 people during the summer.

The famous boardwalk, built at the turn of the century, stretches along the beach for more than a mile and a half. A convention center, four incredible amusement piers, two movie theaters, hundreds of souvenir and novelty shops and a variety of restaurants, ethnic food stands and salt water taffy shops, line this wooden walkway.

At night, the lights brighten the skyline and the boardwalk transforms. The combination of the flashing neon lights with lively music, the spinning of the game wheels, and the enticing aromas coming from the open air eateries create a carnival-like atmosphere and an aura of excitement that is not soon forgotten.

Beach Concerts, Hobie Cat Races, Kite Festivals, The National Marble Tournaments, Life Guard Races, Wrestling Matches and Beauty Pageants are but a few of the events scheduled throughout the summer season.

Affordable accommodations of every kind are available throughout this island resort. While traveling throughout the area, keep an eye out for the 1950s DooWop architectural style that made the Wildwoods famous. Additionally, portions of Wildwood are part of an Urban Enterprise Zone, where shoppers can take advantage of a reduced 3.5 percent sales tax (normal state sales tax is 7 percent).

The back-bay area hosts hundreds of private, charter, and party boats for daily bay and deep-sea fishing excursions. Sightseeing and whale watching trips as well as sailing, jet skiing and motor boating are available from most Wildwood docks.

As with all Jersey Cape resorts, Wildwood is especially known for its seafood restaurants and some of the finest restaurants on the east coast.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Z0330808 10 Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. ACME (Albertsons Companies, Inc Guaranty)

5300 Park Boulevard - WILDWOOD, NEW JERSEY 08260

Broker of Record Brian Hosey Marcus & Millichap Saddle Brook, NJ 07663 Tel: 201-742-6100 License: 1434917