Walgreens Located in the Middle of a Master Planned Community with 10% Rental Increases Every 10-Years

EXCLUSIVELY LISTED INVESTMENT OFFERING 5585 Twin Knolls Road Columbia [Baltimore-Washington DC], MD A Rare Opportunity To Own a Strong Performing Walgreens located in the middle of a Master Planned Community with 10% Rental Increases every 10-Years EXCLUSIVELY MARKETED BY: TED DOWDING DIRECT 858.999.7431 | Broker License Number CQ1054183 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Executive Summary OMDM exclusively presents this rare opportunitity to acquire this strong performing freestanding Walgreens in Columbia, Maryland. In August, 2009, Walgreens signed a 60-year Ground Lease with 25-years on the primary term, followed by Seven 5-year renewal options. There are currently 16+ years remainig on the primary term. This lease features structured rent increases of 10% every 10 years throughout base term and all of the option periods. This site boasts outstanding residual value as it sits upon a signalized 2.62 acre parcel paired with strong local market demographics and traffic counts (58,000+ vehicles per day). Columbia has a population over 100,000 and is the most populous census designated place in Maryland. Howard County has the highest income and educational levels of any county in the State of Maryland, and is the 6th highest in the nation. This Investment is priced at $9,850,000 which represents a 4.75% capitalization rate on current income, with a blended cap rate at the asking price of 5.80% over the entirety of the lease. Financial Overview Annualized Operating Data Price $9,850,000 Rent Increases Annual Rent Price/SF $664 Years 11 thru 20 $467,500 Occupancy 100% Years 21 thru 30 $514,250 + $46,750 Rentable Square Feet 14,820 Years 31 thru 40 $565,675 + $51,425 CAP Rate 4.75% | 5.80% Blended Years 41 thru 50 $622,242 + $56,567 Year Built 2009 Years 51 thru 60 $684,466 + $62,224 Lot Size 2.62 Acres NOI $467,500 Lease Type NNN Ground Lease Total Return $467,500 Rental Income Grows 46.4% Very Rare 10% Rent Increases every 10 years (+$216,966/year + $18,080/month) over the entirety of the Lease 02 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Property Overview 5585 Twin Knolls Road, Columbia, MD Year Built: 2009 Lot Size: 2.62 Acres Building Size: 14,820 SF 18.4 Miles from Downtown Baltimore Property Highlights - Rare 10% Rental Increases Every 10-Years - High Traffic Counts. 51,500+ VPD. Affluent Growing Local Market - STRONG Store Sales History | Established, Proven Location - Absolute NNN Ground Lease - No Landlord Responsibilities - Over 2,500,000 Square Feet of Retail and Office Parks Recently Developed within 2 miles of the property. - The only free-Standing Drug Store with a Drive-thru in Columbia. - Strong Demographics; Ideal for a Pharmacy - High Average Household Income Levels of 109k-150k in a 1 to 5 Mile Radius. 03 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Lease Overview Tenant Trade Name Walgreens Ownership Public Tenant Corporate Store Lease Guarantor Corporate Guarantee Credit Rating BBB Rating Agency Standard & Poor's Stock Symbol WAG Lease Commencement Date 12/12/2007 Rent Commencement Date 08/18/2009 Lease Expiration Date 08/31/2069 Firm Term Remaining 16+ Years Lease Type Absolute NNN Ground Lease Roof and Structure Tenant Responsible Lease Term 60 Years Increases 10% Every 10 Years Options to Renew 7 x 5 Options to Terminate No Options to Purchase No First Right of Refusal No No Landlord Responsibilities 04 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Competitor Map Only Free-Standing Drug Store with a Drive-thru in Columbia 8.6 Miles from algreens closest W 05 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Demographic Overview The Mall in Columbia with 202 Stores, 6 Anchor Tenants &, 1,400,000 SF of Retail (75,022 VPD) Talbott Srings Columbia Pike Elementary School 2017 1 mile 3 mile 5 mile - Very Strong Traffic Counts Population 12,769 99,910 199,125 Households 5,481 39,787 74,900 - Affluent Local Market with Avg. HH Families 3,143 25,974 51,770 Incom of $107k-$152k/Year Average Household Size 2.33 2.51 2.65 Owner Occupied Housing Units 2,482 25,709 51,305 - Ideal Median Age For A Pharmacy 37-40 Renter Occupied Housing Units 2,999 14,078 23,595 Median Age 36.2 39.2 39.1 Oakland Mills Average Household Income $96,490 $125,635 $136,612 Middle & High Schools 2022 Popuation 13,490 105,640 213,099 Households 5,788 41,979 79,867 Families 3,290 27,220 54,924 Average Household Size 2.33 2.51 2.66 Owner Occupied Housing Units 2,603 27,089 54,701 Renter Occupied Housing Units 3,185 14,889 25,166 Median Age 36.9 40.1 39.9 Average Household Income $107,941 $139,865 $152,029 Strong Projected Market Growth Rates Over Next 5-Years 06 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Property Aerial 07 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Investment Property Recap Asking Price: Lease Overview $9,850,000 Tenant: Walgreens (NYSE: WAG) Lease Guarantor: Walgreens Corporate Guarantee Asking CAP Rate: Building SF: 14,820 Year Built 2009 4.75% Absolute NNN Ground Lease NOI: Lease Type: Zero Landlord Responsibilities Lease Term: 16 Years Remaining $467,500 Increases: 10% Every 10 years $38,958/mo. Entirety of Lease Blended Cap Rate Cap Rate 5.80% Increasing Cash Flow Rent Increases Annual Rent Rent Increase Cap Rate 8.00% 6.95% Current Rent $467,500 Current 4.75% 7.00% 6.32% 6.00% 5.74% 5.22% Years 21-30 $514,250 Years 21-30 5.22% 5.00% 4.00% Years 31-40 $565,675 Years 31-40 5.74% 3.00% 2.00% 4.75% Years 41-50 $622,242 Years 41-50 6.32% 1.00% Current Years 21-30 Years 31-40 Years 41-50 Years 51-60 Years 51-60 $684,467 Years 51-60 6.95% 08 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Walgreens Company Summary Tenant History Walgreens is the largest drug retailing chain in the United States and has grown primarily through organic growth versus how its largest competitor, CVS, has grown through chain acquisitions. Walgreens built out its national platform through its corporate real estate department heavily during the 90’s continuing through around 2008. By 2007, Walgreen had opened its 6,000th store and by 2009 they became the only national pharmacy to operate in 50 states including Puerto Rico. In 2012, Walgreens made a bold move by purchasing a 45% interest in Alliance Boots and subsequently in 2014 exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance. After the initial acquisition in 2012, Walgreens credit rating was lowered from A down to BBB due to debt it incurred during the purchase; however, Walgreens remains investment grade and property values have not been adversely affected by the lower credit rating. Walgreens stock price has actually more than doubled since its acquisition of Alliance Boots. Notable Acquisitions In 2010, Walgreens announced its largest acquisition ever of Duane Reade for $1.075 billion and established an irreplaceable footprint in the New York metropolitan area. In 2011, Walgreens made a move to purchase Drugstore.com to establish an online presence. In 2012, Walgreens purchased a mid-south drugstore chain operating under USA Drug, Super D Drug, Mays Drug, Med-X and Drug Warehouse banners which had 144 locations collectively throughout Arkansas, Kansas, Mississippi, Missouri, New Jersey, Okla- homa and Tennessee. Walgreens most recent acquisition was in September 2013 for Kerr Drug’s who operated 76 drugstores throughout North Carolina. *Walgreens company information received from Walgreens investor relations. 09 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Walgreens Locations by State 10 Walgreens 5585 Twin Knolls Rd, Columbia, MD 21045 Walgreens Locations by State 1 of 89 Walgreens in Maryland Alabama 115 Idaho 40 Mississippi 78 Oklahoma 117 West Virginia 17 Alaska 8 Illinois 610 Missouri 219 Oregon 77 Wisconsin 228 Arizona 250 Indiana 201 Montana 14 Pennsylvania 131 Wyoming 11 Arkansas 83 Iowa 70 Nebraska 60 Rhode Island 26 Puerto Rico 120 California 646 Kansas 70 Nevada 84 South Carolina 110 US Virgin Islands 1 Colorado 160 Kentucky 98 New Hampshire 32 South Dakota 14 Connecticut 95 Louisiana 154 New Jersey 191 Tennessee 254 Delaware 65 Maine 15 New Mexico 69 Texas 712 Washington DC 6 Maryland 89 New York 486 Utah 48 Florida 861 Massachusetts 168 North Carolina 263 Vermont 3 Georgia 204 Michigan 232 North Dakota 1 Virginia 141 Hawaii 19 Minnesota 154 Ohio 250 Washington 139 11 Walgreens 55585 Twin Knolls Rd, Columbia, MD 21045 Location Overview This Walgreens location is situated in the heart of Columbia at the intersection of Thunder Hill Road and Little Patuxent Parkway (Maryland Route 175). The subject property is less than one mile east of The Mall in Columbia, a premiere shopping destination. After a major expansion, The Mall in Columbia added Nordstrom and The Plaza at The Mall in Columbia. The Plaza, an outdoor complex featuring restaurants and entertainment, is home to the first L.L. Bean store in Maryland, P.F. Chang’s China Bistro, Uno Chicago Grill, Champ's Restaurant & Bar and a state-of-the-art AMC Theatres Columbia 14. To the east of the site along Route 175, an additional 2,000,000 square feet of retail and office parks have been developed. The new commercial projects at Route 175’s interchange with I-95 (about 2 miles from the subject property) have created a new node for the submarket.

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