Dan Cooper [email protected] (216) 562-1981 x12 Cooper Commercial Investment Group 6120 Parkland Blvd., Suite 206 Bob Havasi Cleveland, OH 44124 [email protected] (216) 562-1981 x10 www.coopergrp.com INVESTMENT SUMMARY Investment Highlights ……...……… 4 Location Overview …………………. 5 Offering Summary .……….………… 6 Tenant Overview …..……………….. 7 PROPERTY ANALYSIS Site Plan Aerial..………………….… 9 Aerial Map ..……………………...….. 10 Location Maps .…………………..… 11 Demographics ..…………………..… 12 Disclosure & Confidentiality …….… 13 2 3 INVESTMENT HIGHLIGHTS • Freestanding, Single-Tenant Absolute NNN Location with 8.5+ Years of Term Remaining: Corporately Guaranteed by Rite Aid (Dark Location) • Highly Attractive 10.25% CAP with Rent of $400,400 Through July, 2027 • Strategically Positioned at Signalized Hard Corner Intersection with Two of the Cleveland MSA’s Most Traveled Roadways, Ridge Road and Pearl Road: 87,000 VPD Surround the Property and 0.5 Miles to I-480 with 149,000 VPD • High Density Market: Largest Suburb of Cleveland and 7th Largest City in Ohio with Over 300,000 People Within a 5-Mile Radius and Over $60,000 Average Household Income • 3 Points of Ingress and Egress with Highly Visible, Prominent Signage Along Both Main Roadways • Newer (2007 Construction) High-Quality Build with Drive-Thru on 1.56 Acre Site with No Management Responsibilities • Excellent Exposure with Elevated Position and Modern Design in High Barrier to Entry Market • Immediate Area Employment Base: 1 Mile to VA Outpatient Clinic, 2 Miles from University Hospital’s Parma Medical Center (2,000 Employees, Including 500+ Physicians), KeyBank Headquarter Location (2,400 Employees) and The Cleveland Plain Dealer (700+ Employees) • Heavily Concentrated Business/Retail Corridor: Boasts Lowe’s, Ashley Homestore, Marc’s Grocery, Michael’s, Five Below, Bed, Bath & Beyond, AMC Movie Theatre, TJ Maxx, Michael’s, Best Buy, Arhaus The Loft, Value City Furniture, The BA Sweetie Candy Company Walmart Supercenter, Dick’s Sporting Goods, Panera Bread, Ulta Beauty and Various Other Complimentary Retailers • Desirable Suburban Community with Short Commute 4 (8 Miles) to Downtown Cleveland LOCATION OVERVIEW Situated in Northeast Ohio, the City of Parma is the 7th largest city in Ohio and is centrally located just 8 miles southwest of Downtown Cleveland. The property sits in close proximity to I-480; an auxiliary interstate of I-80 (Ohio Turnpike) that bypasses the City of Cleveland. Starting east through suburban Lorain County, I-480 enters Cuyahoga County. I-480 then approaches the Cleveland Hopkins International Airport (3 miles), which serves as the primary airport for the Greater Cleveland area. On its route, I-480 crosses interstates I-71, I-77 and I-271. Parma is home to over 5,000 businesses. The area is also densely populated with over 300,000 people within 5-miles of the featured asset. Its geographic position places Parma within 500 miles of 50% of the population of the U.S. and Canada, 50% of retail sales, and over 65% of all U.S. payroll dollars. Rite Aid’s position on the intersection of Ridge Road and Pearl Road could be considered one of the best locations in all of Parma. Both roadways are some of the heaviest traveled roadways in the Cleveland MSA. Traffic counts surrounding the property total 87,000 vehicles per day and I-480 just 0.5 miles north of the property reports traffic counts of 149,000 vehicles per day. With the constant flurry of activity on all of the main roads surrounding the property, the building is inundated with heavy traffic. The property also benefits being surrounded by complimentary retailers in the business corridor that is surrounded by rooftops. Just 0.5 miles from the property, Ridge Park Square can be found that hosts Lowe’s, Ashley Homestore, Marc’s Discount, Michael’s, Five Below, Bed, Bath & Beyond, AMC Movie Theatre, TJ Maxx, Michael’s and many more. Just south of Ridge Park, the business and retail corridor continues with additional highly-recognizable retailers, including: Best Buy, Arhaus The Loft, Dollar Tree, AT&T, Savers, Value City Furniture, The BA Sweetie Candy Company and a host of others. Continuing south just 2 miles, the redeveloped Shoppes of Parma can be found, which is a 756,000 S.F. shopping center featuring an inviting new town center for shopping, dining and entertainment. The mixed-use development includes a power center, grocery anchored center, outparcels and an office building. The featured retailers include a Walmart Supercenter, Dick’s Sporting Goods, Panera Bread and Ulta Beauty. Furthermore, the property is just 1-mile from a VA Outpatient Clinic and 2 miles from University Hospital’s Parma Medical Center. The medical center is a 332-bed acute care facility employs 2,000, including more than 500 physicians. The area also boasts in close proximity a KeyBank headquarter location with 2,400 employees and The Cleveland Plain Dealer who employs 700. Parma presents an overall arena, including its demographic profile, geographic location, community setting and business development. Being located as a suburb of Cleveland, many people commute to Downtown Cleveland for work and pleasure. Cleveland is the county seat of Cuyahoga County; the most populous county in Ohio. The region’s businesses have diversified from the manufacturing sector into the service economy; particularly the financial services, insurance, and healthcare sectors. Northern Ohio boasts many headquarter locations for major corporations such as The Cleveland Clinic, University Hospitals, American Greetings, Eaton Corp., Sherwin-Williams, KeyBank, Progressive Insurance, First Energy, TRW, Goodyear Tire, RPM International, Diebold, Parker-Hannifin, A. Schulman, Timken, J.Smuckers, Nestle, Cliffs Natural Resources and Travel Centers of America. Additionally, Cleveland is home to main operating facilities for NASA, Glenn Research Center, and Jones Day. The area is also within close proximi- ty to several higher education facilities: Cuyahoga Community College (Middleburg Heights Branch 4 miles), Cleveland State University (13 miles), Baldwin-Wallace College (7 miles) and Case Western Reserve University (13 miles). Furthermore, the property is within just a few short minutes to Cleveland’s Downtown area, which includes: The Gateway Complex, consisting of Progressive Field and Quicken Loans Arena, and near North Coast Harbor, including: The Rock and Roll Hall of Fame, First Energy Stadium, 5 and the Great Lakes Science Center. 6 OFFERING SUMMARY Price: $3,905,000 Gross Leasable Area: 14,753 S.F. NOI: $400,400 CAP Rate: 10.25% Year Built: 2007 Lot Size: 1.56 Acres Parking: Approx. 41 Spaces Ingress/Egress: 3 Exterior: Brick/Concrete/Steel HVAC: (4) 4-Ton Rooftop Mounted Financial Data Rental Income: $400,400 Tenant Reimbursements: $0 Effective Gross Income: $400,400 Expenses: ($0) NOI: $400,400 7 TENANT SUMMARY Lease Type: Absolute Triple Net (NNN) Remaining Lease Term: 8.5+ Years Tenant Since: 2007 Rent Commencement: 7/26/2007 Lease Expiration Date: 7/31/2027 Option to Extend: (4) 5-Yr. Options Rental Increase (s): None Options to Terminate: None Roof: Tenant Responsibility HVAC: Tenant Responsibility Parking Lot Repair & Maintenance: Tenant Responsibility Common Area Maintenance: Tenant Responsibility Real Estate Taxes: Tenant Handles Directly Insurance: Tenant Handles Directly Rite Aid Corporation is one of the nation's leading drugstore Structure: Tenant Responsibility chains and Fortune 500 company. With approximately 2,550 Right of First Refusal: 20 Days stores in 19 states, the company has a strong presence on both the East and West Coasts, employing more than 60,000 Tenant Base Rent Schedule associates. Rite Aid is publicly traded on the New York Stock Exchange under the ticker symbol RAD. The Retail Pharmacy Monthly Annual PSF segment sells prescription drugs and over-the-counter Current: $33,366.67 $400,400.00 $27.14 medications, health and beauty aids, personal care items, Option 1 (2028): $36,703.33 $440,440.00 cosmetics, household items, food/beverages, greeting cards, $29.85 seasonal merchandise, and other every day and convenience Option 2 (2033): $36,703.33 $440,440.00 $29.85 products. Option 3 (2038): $40,373.67 $484,484.00 $32.84 Option 4 (2044): $40,373.67 $484,484.00 $32.84 8 9 10 11 5455 Ridge Rd 1 mi radius 3 mi radius 5 mi radius Parma, OH 44129 2018 Estimated Population 18,785 125,664 304,628 POPULATION 2018 Median Age 37 39.2 38.7 2018 Estimated Households 8,094 57,084 132,446 HOUSEHOLDS 2010 Census Households 8,069 56,984 132,733 2018 Estimated White 89.8% 83.8% 76.3% 2018 Estimated Black or African American 3.9% 7.1% 11.4% RACE 2018 Estimated Asian or Pacific Islander 2.1% 2.8% 2.6% AND 2018 Estimated American Indian or Native Alaskan 0.2% 0.3% 0.3% ETHNICITY 2018 Estimated Other Races 4.0% 6.1% 9.4% 2018 Estimated Average Household Income $61,720 $60,050 $60,531 2018 Estimated Median Household Income $51,123 $47,710 $46,674 INCOME 2018 Estimated Per Capita Income $26,633 $27,348 $26,410 2018 Estimated Elementary (Grade Level 0 to 8) 2.3% 3.5% 4.3% 2018 Estimated Some High School (Grade Level 9 to 11) 8.8% 8.6% 10.2% 2018 Estimated High School Graduate 34.6% 35.9% 34.9% EDUCATION 2018 Estimated Some College 24.7% 24.1% 22.7% (AGE 25+) 2018 Estimated Associates Degree Only 9.7% 8.6% 8.1% 2018 Estimated Bachelors Degree Only 14.3% 13.5% 13.4% 2018 Estimated Graduate Degree 5.6% 5.8% 6.4% 2018 Estimated Total Businesses 864 4,025 10,776 2018 Estimated Total Employees 7,773 52,023 156,046 BUSINESS 2018 Estimated Employee