RETAIL INVESTMENT OPPORTUNITY Confidential Offering Memorandum 552 State Street HAMBURG, PA Accelerating success. CONFIDENTIALITY AGREEMENT Colliers’ Confidentiality Agreement, which is available from the Listing Agents, must be completed and returned by interested principals in order to receive the Confidential Offering Memorandum. OFFERING PROCEDURE Offers may be submitted at any point during the marketing process, although a deadline for offers may be established at a later date. All submissions must be emailed to the listing agent. In addition to the terms of an offer, the Owner and Colliers International will give consideration to the CONTACT demonstrated ability of the purchaser to complete the transaction. Offers Inspections will be arranged by should be in the form of a non-binding letter of intent specifying at least the appointment only with the Owner’s following: Exclusive Agents: • Offered Price • Earnest Money Deposit(s) Scott Horner Vice President • Length of due diligence period [email protected] • Contingencies (if any) +1 610 359 5869 • Time of Closing Derek Zerfass • References Senior Vice President • List of Real Estate Owned [email protected] • Sources of Funds (Equity and Debt) +1 610 295 6125 COLLIERS INTERNATIONAL One Windsor 7535 Windsor Drive, Suite 208 Allentown, PA 18195 www.colliers.com/allentown 552 STATE STREET | OFFERING MEMORANDUM Materials contained in this Investment Offering are confidential, furnished solely for the purpose of considering the “AS IS” acquisition of 552 State Street (the“Property”) described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Colliers International and Owner. No representations, expressed or implied are made as to the foregoing matters by Owner, Owner’s property management/ leasing agent, Colliers or any of their officers, employees, affiliates and/or agents. 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 Table of Contents PROPERTY OVERVIEW LOCATION OVERVIEW 5 Property Summary 9 Property Aerial 6 Property Highlights 10 Retail Map 7 Tenant Overview 11 Regional Map 12 Area Overview 15 Demographics CONFIDENTIAL OFFERING MEMORANDUM | BRIDGEVIEW BUSINESS PARK Property Overview PROPERTY SUMMARY $2,100,000 8.25% $173,822 Asking Price Asking Cap NOI Rate PROPERTY SUMMARY 552 State Street Address: Hamburg, PA 19526 Lease Guarantor: Weis Markets, Inc Lease Expiration Date: 12/31/2022 Rentable SF: 37,840 Lot Size (AC): 2.58 Parking: 138 Year Built: 1995 Lease Type: NNN Landlord Responsibilities: None Right of First Refusal to Purchase: Yes Right of First Refusal to Lease Yes RENT SCHEDULE Monthly Annual Primary Term Rent/SF Cap Rate Rent Rent Current: 12/31/2022 $14,485 $173,822 $4.59 8.25% 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 PROPERTY HIGHLIGHTS LONG-TERM TENANT Weis Markets has been operating for over 20 years as the local grocery store to this region and signed into a master lease in 2016 that extends out through 2022 CORPORATELY GUARANTEED The Property is corporately guaranteed by Weis Markets, Inc., and has over two years remaining on the current term GROCERY-ANCHORED SHOPPING CENTER Weis Markets is a highly visible 37,840 square foot shopping center of Hamburg, PA OFFERED BELOW REPLACEMENT COST At $55.50 per square foot list price, the property offers an opportunity to acquire a master leased grocery-anchored shopping center at a price point below what it would cost to replace the building LOW PRICE POINT WITH BELOW MARKET RENTS Rare NNN master leased grocery-anchored shopping center offered at $2.1 million, with “sub-tenant” rents significantly below market (currently $12.00/SF) TENANT OVERVIEW Based in Sunbury, Pennsylvania, Weis Markets is a food retailer and supermarket chain with locations across Maryland, New York, New Jersey, Delaware, Virginia, West Virginia, and Pennsylvania. • Over 23,000 employees • 200 locations • $3.5 billion in sales in 2019 The first Weis Market was opened in 1912 in Sunbury by Harry and Sigmund Weis, two brothers with a revolutionary idea to operate their store through cash sales instead of credit – this permitted up to a 25% reduction in prices, which made the location explode in popularity. Today, Weis Markets has expanded to 200 locations. The company is 23,000 team members strong across all of its stores, corporate office, distribution center, and manufacturing facilities, including a 1.5 million square foot warehouse facility in Milton, PA. The company emphasizes locally-sourced, quality foods and sustainable farming practices, and purchases more than 20 million pounds of locally grown produce from local Pennsylvania farmers annually. Weis Markets also processes its own milk and uses the excess butterfat produce their store brand ice cream - Weis Quality Ice Cream – which has over 50 unique flavors. At its annual shareholders meeting, Weis Markets declared capital spending of $109 million for 2019, an $8 million increase from 2017. Planned investments include a new store in Bedminster, Pennsylvania, 14 store renovations, and the addition of six fuel centers. For fiscal year 2018, Weis Markets reported record sales of over $3.5 billion (a year-over-year increase of 1.2%), outpacing similar grocery stores in the region. 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7 Location Overview PROPERTY AERIAL N 5TH STREET ISLAND STREET N 4TH STREET S 3RD STREET OLD ROUTE 22 T STREE CHURCH PINE STREET 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9 100% Camera: 1,273 m 40°33'12"N 75°58'41"W 119 m RETAIL MAP 1 Hecky’s Sub Shop 2 Pizza Como 3 Creation Cabinetry 4 Hamburg Sweet Treats Adams & Bright Drug Store, 5 Hop Poh Chinese, The Blue Coast 6 Hamburg Strand Theater N 5TH STREET 7 Four Twelve ISLAND STREET 8 Hamburg Antiques Center 3 9 Wells Fargo N 4TH STREET 10 M&T Bank 11 Hello Again Boutique S 3RD STREET OLD 15ROUTE 22 12 Kurtz Florist 2 13 Necessities New & Used Furniture 14 Sabor Vapors 16 15 M&T Bank 16 Holiday Hair 17 17 Hamburg Coin Laundry 12 1 18 Fulton Bank 11 6 19 Hamburg Reptile Show 7 5 13 8 9 T 4 14 STREE 10 CHURCH PINE STREET 19 18 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10 100% Camera: 1,273 m 40°33'12"N 75°58'41"W 119 m REGIONAL MAP PORT CLINTON BLUE 78 MOUNTAIN 1.25 MILES LAKE EDENBURG HAMBURG 78 61 WEST HAMBURG 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11 100% Camera: 11,093 m 40°34'18"N 75°55'39"W 189 m AREA OVERVIEW The subject property is located in Hamburg Township, in Berks County. Industry Sector Employees The county is bordered by Schuylkill County to the north, Lebanon and Total, all industries 154,898 Lancaster Counties to the west, Lehigh County to the east, and Chester Service-providing 113,069 and Montgomery Counties to the south. Goods-producing 41,829 Berks County is centrally located within the Northeast Corridor, within an Education and health services 32,629 easy distance from New York City (125 miles), Baltimore (105 miles), and Trade, transportation, and utilities 32,322 Washington, DC (145 miles). One-third of the nation’s population resides Manufacturing 31,865 within a one-day drive of the County, making it a prime location for the Professional and business services 21,770 transport of goods and services. Leisure and hospitality 14,301 POPULATION Construction 6,877 The population of Berks County experienced strong growth in the 1990’s Financial activities 5,804 and maintained a growth rate well above the state average between 2000 Other services 5,329 and 2010. Population expansion slowed between 2010 and 2019, but Natural resources and mining 3,087 Berks County was still above the state average. Mining 914 Unemployment Rate 12.9% EMPLOYMENT & LABOR FORCE Source: Pennsylvania Department of Labor and Industry Berks County has the ninth-largest labor force in Pennsylvania. The civil- ian labor force was 225,000 as of July 2020. Unemployment, at 12.9% per- Pure manufacturing space has recently experienced a rebound in the re- cent, was still below the Pennsylvania average; unemployment rates were gion, and growth in warehouse and distribution and service sector indus- significantly higher than usual due to the COVID-19 pandemic. tries is generating substantial demand for warehouse, distribution and flex space. Berks County Pennsylvania Jul-20 Jul-20 Civilian Labor Force 225,000 6,453,000 Employment 195,900 5,567,000 Unemployment 29,100 886,000 Unemployment Rate 12.9% 13.7% Source: Pennsylvania Department of Labor and Industry The education and health services sector is the largest private employer in Berks County. Trade, transportation, and utilities are major employment sectors as well, while manufacturing services remain noticeably strong. Professional services have become increasingly important, while leisure and hospitality also serve important roles in the economy. 552 STATE STREET | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 12 LARGEST EMPLOYERS IN BERKS COUNTY TRANSPORTATION The largest sector employers represent a diversity of health care, Berks County has a superior transportation net- education services, and industrial companies. work. The Schuylkill Expressway, or Interstate 76 is a major east-west transportation link connecting Rank Name of Employer New Jersey to the beginnings of middle America, 1 East Penn Manufacturing Company and runs along its namesake river, intersecting the 2 Reading Hospital Pennsylvania Turnpike at King of Prussia and provid- 3 Carpenter Technology Corporation ing easy access to Harrisburg and other western points. 4 County of Berks The I-76 also provides access to Center City Philadelphia to 5 Reading School District the east. Interstate 78 is another east-west route stretching from Leba- 6 Wal-Mart Associates Inc non County in the west and providing easy access to New York City.