EXCLUSIVELY LISTED INVESTMENT OFFERING LOS ANGELES, CALIFORNIA

4501 WEST SLAUSON AVENUE | LOS ANGELES, CA 90043

Presented By:

JASON STUART PONGSRIKUL Managing Principal Direct: 619.297.0055 x 302 [email protected]

Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043

Property Overview 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043

Year Built: 2002 Lot Size: 33,880 Square Feet Building Size: 16,457 Square Feet

Investment Highlights

STABLE INCOME NEAR NEW LOS ANGELES RAMS/CHARGERS NFL Rental income guaranteed by CVS parent corporate STADIUM DEVELOPMENT (S&P BBB+) investment grade Fortune 500 Company The Los Angeles Stadium and Entertainment District (formerly with over 7,900 locations. the Hollywood Park Racetrack) is an 298 acre project currently under construction located two miles from Interstate 405 and RENT INCREASES 10% IN 2023 four miles from LAX. Anchoring this district is a 70,000-seat The lease allows for approximately ten percent (10%) stadium, the future shared home of the Los Angeles Chargers increases every five years in the initial term and in the and Los Angeles Rams. The stadium will host sporting events options. Rent increases to $398,840 in July of 2023. including the Super Bowl and the Opening and Closing Please see rent schedule on Page 3. ceremonies of the 2028 Olympics being held in Los Angeles, as well as major concerts and other entertainment year-round. 10.5 YEARS REMAINING WITH OPTIONS Plans for this district include: This CVS lease has 10.5 years remaining before the five • 70,000-seat (expandable to 100,000) open air stadium (5 year) options commence in July of 2028. • 6,000-seat performing arts venue • 780,000 SF of office space, 890,000 SF of retail space VERY DENSE INFILL LOS ANGELES REAL ESTATE • 300 hotel rooms Exceptional infill real estate, located just 5 miles from • 2,500 modern residences Los Angeles International Airport (LAX) and 9 miles • ±25 acres of public parks, open space, pedestrian from Downtown Los Angeles. There are approximately walkways and bicycle paths 23,394 residents in a one-mile radius, 284,338 in a • Family and fine dining three-mile radius and over 1,000,000 residents in a five- • Event, conference and meeting space mile radius. SIGNIFICANT LOS ANGELES LANDMARKS; DISTANCES HIGH TRAFFIC INTERSECTION FROM SUBJECT PROPERTY This property is located at the northwest corner of • LA STADIUM & ENTERTAINMENT DISTRICT - ±4 miles SE. West Slauson Avenue (41,689 cars per day) and Overhill • LOS ANGELES INTERNATIONAL AIRPORT - ±5 miles SE. Drive (11,490 cars per day) with a total traffic count of • UNIVERSITY OF SOUTHERN CALIFORNIA - ±5 miles NE. approximately 53,179 cars per day. The store is located • LA BREA TAR PITS - ±6 miles N about two miles directly east from Interstate 405 • STAPLES CENTER - ±8 miles NE (334,000 vehicles daily) at the West Slauson Avenue exit. • HOLLYWOOD - ±8 miles N • DOWNTOWN LOS ANGELES - ±9 miles NE. • UNIVERSITY OF CALIFORNIA LOS ANGELES - ±10 miles NW. • DODGER STADIUM - ±11 miles NE • THE GETTY MUSEUM - ±12 miles NW • DISNEYLAND RESORT - ±35 miles SE

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 2 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Lease Overview Pricing

Tenant: Price: $8,057,377 CVS PHARMACY, INC. (NYSE: CVS) CAP Rate: 4.50% CAP Price/SF: $489.60 Landlord Income: CORPORATE GUARANTEE Monthly Income: $30,215 Annual Income: $362,582 Credit Rating: INVESTMENT GRADE, BBB+ (S&P) Building Building Square Footage: 16,457 Lease Type: Land Square Footage: 33,880 NET LEASED Rent/Square Foot: $22.03 Lease Term: Year Built: 2002 10.5 YEARS REMAINING WITH FIVE (5-YEAR) OPTIONS TO FOLLOW Rent Schedule

TERM dates YEARS RENT Lease Commencement: JULY 9, 2003 Initial Term 7/9/2013 - 7/ 8/2023 11-20 $362,582 Initial Term 7/9/2023 - 7/ 8/2028 21-25 $398,840 Option 1 7/9/2028 - 7/ 8/2033 26-30 $438,724 Next Option Begins: Option 2 7/9/2033 - 7/ 8/2038 31-35 $482,596 JULY 8, 2028 Option 3 7/9/2038 - 7/ 8/2043 36-40 $530,856 Option 4 7/9/2043 - 7/ 8/2048 41-45 $583,941 Option 5 7/9/2048 - 7/ 8/2053 46-50 $642,335

Location Overview LOS ANGELES, CA

os Angeles is located in Southern California

adjacent to the Pacific Ocean with a Lpopulation of about 4,000,000 residents. The County of Los Angeles is the most populated

county in the United States with a gross domestic

metropolitan product ranked third worldwide with

approximately $900 billion annually. Los Angeles is

also known as the entertainment and tourist capital SUBJECT PROPERTY of the world with over 47.3 million visitors to the

area in 2016.

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 3 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Location Aerials

DODGER STADIUM STAPLES CENTER USC ±363,000 CARS PER DAY DOWNTOWN LOS ANGELES

RESIDENTIAL NEIGHBORHOODS

O VE RH AY IL R D L D PE RIV RS E - CA 11 89 ,49 1,6 0 C - 4 AR UE SUBJECT PROPERTY S EN PER AV DA ON Y US LA T S ES W

DODGER STADIUM HOLLYWOOD DOWNTOWN UNIVERSITY OF LOS ANGELES CALIFORNIA J. PAUL GETTY MUSEUM BEVERLY HILLS LOS ANGELES (UCLA) UNIVERSITY OF SOUTHERN CALIFORNIA (USC)

SANTA MONICA AIRPORT

SUBJECT PROPERTY LOYOLA MARYMOUNT UNIVERSITY LOS ANGELES MARINA STADIUM & ENTERTAINMENT THE VENICE DEL REY DISTRICT BEACH BOARDWALK

LOS ANGELES INTERNATIONAL AIRPORT (LAX)

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 4 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Property Photos

SOUTH & EAST BUILDING FACADES INCLUDING ROOF PARKING WITH ACCESS TO OVERHILL DRIVE

NORTH & WEST BUILDING FACADES INCLUDING COVERED ROOF PARKING WITH ACCESS ON WEST SLAUSON AVENUE PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 5 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Property Photos

DOWNTOWN LOS ANGELES ±363,000 CARS PER DAY

WEST SLAUSON AVENUE - ±41,689 CARS PER DAY

RESIDENTIAL NEIGHBORHOODS RESIDENTIAL NEIGHBORHOODS

OVERHILL DRIVE - ±11,490 CARS PER DAY

SUBJECT PROPERTY

LA STADIUM & LOS ANGELES PACIFIC OCEAN ENTERTAINMENT DISTRICT INTERNATIONAL AIRPORT

±334 ,000 CARS PER DAY

O VE RH I LL D RESIDENTIAL NEIGHBORHOODS R AY IV R D E PE - S ± AR 1 C 1 89 ,4 ,6 9 41 0 - ± C UE SUBJECT PROPERTY A EN R V S N A P O E US R LA D S A ST Y WE

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 6 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Company Summary* Tenant History CVS pharmacy is the second largest pharmacy retail chain in the United States. CVS is incorporated in Delaware and based in Woonsocket, Rhode Island. CVS was founded in 1963 under the name Consumer Value Store and later changed its name to CVS Corporation in 1996.

During the 1990’s the parent company changed its name from Melville Corporation to CVS Corporation and decided to focus entirely on CVS by selling of its non-pharmacy businesses such as Marshalls, Footaction/Footstar, Linens ‘n’ Things, and Kay-Bee Toys.

CVS used much of their capital from divesting in non-pharmacy businesses to reinvest into the pharmacy sector and have increased their national footprint primarily from acquiring competing pharmacy chains. From 1997 to 2008, CVS had purchased over 4,800 drugstore locations through acquisitions of competing pharmacy chains.

CVS has also made a concerted effort to establish strategic business units by acquiring Nashville based Caremark Rx Inc., a pharmacy benefits manager (PBM), and by acquiring Minneapolis based Minute Clinic which pioneers health clinics in over 600 of CVS stores. Its PBM wing provides $76 billion in net revenues through services to over 2,000 health plans for corporations, insurance companies, unions and government entities.

During 2014, CVS boldly announced they would cease to sell any tobacco products moving forward costing the chain roughly $2 billion in annual revenues.

Notable Acquisitions In 1990, CVS acquired the 490 store People Drug which established the company in new mid-Atlantic markets including Washington D.C., Pennsylvania, Maryland and Virginia. In 1997, CVS nearly tripled its 1,400 stores after purchasing the 2,500 store Revco chain thereby adding locations throughout Ohio, mid-Atlantic and the southeast. In 2004, CVS purchased 1,268 Eckerd drugstores throughout Florida, Texas and other southern states.

On January 23rd, 2006 CVS announced that it agreed to acquire the freestanding drugstores of Albertsons and the deal included 700 stores trading under the Osco Drug and Sav-On Drug banners located primarily in the Midwestern and southwestern United States with the concentration of stores in southern California and the Chicago area. CVS last major acquisition was in 2008 when they purchased Longs Drugs which had over 400 stores in California and Hawaii. *CVS company information received from CVS investor relations.

tenant profile Guarantor: CVS Pharmacy, Inc. Ownership: Public Stock Symbol (NASDAQ): CVS Credit Rating (S&P): BBB+ Business: Retail Pharmacy Locations: 7,998 Annual Revenue: $153 Billion Net Worth: $37.2 Billion Headquarters: Woonsocket, RI Website: www.cvshealth.com

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 7 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Location by State

WA 8 NH ME VT 40 22 MT ND 10 14 6 OR MN 0 ID 61 NY MA 0 SD WI 487 357 51 WY 0 MN RI 0 250 63 PA CT IA 153 20 410 NJ NV NE OH 87 19 IL IN 293 DE 282 320 UT 303 WV 17 12 MD CA CO 51 VA 182 878 0 KS MO KY 283 40 95 DC 68 59 NC TN 314 AZ OK 135 152 NM 62 AR SC 19 15 191 MS AL GA 52 159 312 TX 684 LA 119

FL 756

HI 63 PR 24

AK 0

US VIRGIN ISLANDS 0

Alabama 159 Idaho 0 Mississippi 51 Oklahoma 62 West Virginia 51 Alaska 0 Illinois 282 Missouri 95 Oregon 0 Wisconsin 51 Arizona 152 Indiana 303 Montana 14 Pennsylvania 410 Wyoming 0 Arkansas 15 Iowa 20 Nebraska 19 Rhode Island 63 Puerto Rico 24 California 878 Kansas 40 Nevada 87 South Carolina 191 US Virgin Islands 0 Colorado 0 Kentucky 68 New Hampshire 40 South Dakota 0 Connecticut 153 Louisiana 119 New Jersey 293 Tennessee 135 Delaware 17 Maine 22 New Mexico 19 Texas 684 Washington DC 59 Maryland 182 New York 487 Utah 12 Florida 756 Massachusetts 357 North Carolina 314 Vermont 10 Georgia 312 Michigan 250 North Dakota 6 Virginia 283 Hawaii 63 Minnesota 61 Ohio 320 Washington 8 Total 7,998

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 8 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Demographic Snapshot | 2017

Total Population Average Age 5 Miles 1 Mile 1 1 Mile 1 5 Miles 3 Miles 3 Miles 41.80 36.40 38.50 23,394 974,066 284,338

Average Household Income Total Households 5 Miles 1 Mile 1 Mile 1 5 Miles 3 Miles 3 Miles 9,046 $71,420 331,962 104,962 $70,979 $96,434

Disclaimer: 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, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.

Buyer and their representatives understands that CVS tenant information was gathered by sources deemed to be reliable including CVS public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.

By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2018 Pharma Property Group.

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 9 4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043

Investment Property Recap

4501 WEST SLAUSON AVENUE LOS ANGELES, CA 90043 Lot Size: 33,880 Square Feet Building Size: 16,457 Square Feet

Lease Overview Tenant: Lease Type: CVS Pharmacy, Inc. (NYSE: CVS) Net leased.

Landlord Income: Lease Term: Corporate Guarantee 10.5 years remaining with five (5 year) options to follow

Credit Rating: Next Option Begins: Investment Grade, BBB+ (S&P) July 9, 2028

Pricing

Asking Price: Asking CAP Rate: Monthly Income: Annual Income: $8,057,377 4.50% $30,215 $362,582

PHARMA PROPERTY GROUP| 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com page 10 JASON STUART PONGSRIKUL Managing Principal Direct: 619.297.0055 x302 [email protected] 5328 Banks Street, Suite B San Diego, California 92110 CA DRE Lic. #01918332 www.pharmapropertygroup.com

Offering Memorandum

4501 WEST SLAUSON AVENUE | LOS ANGELES, CA 90043