CVS OFFERING MEMORANDUM 2755 Hollywood Avenue| Shreveport, LA ™ Representative Photo CVS, Shreveport, LA | 1 ™ Representative2 | Offering Photo Memorandum contents 04 investment highlights 05 financial OVERVIEW 06 tenant overview 10 area OVERVIEW exclusively listed by rahul chhajed Senior Associate [email protected] DIR (949) 432-4513 MOB (818) 434-1106 LIC # 01986299 (CA) michael moreno Senior Associate [email protected] DIR (949) 432-4511 MOB (818) 632-1497 LIC # 01982943 (CA) aron cline SVP & Senior Director [email protected] DIR (949) 432-4509 MOB (818) 632-0233 LIC # 01904371 (CA) Beau j. box BROKER OF RECORD LIC # BROK.0000072286.A-ACT CVS, Shreveport,Representative LA | 3Photo executive summary Representative Photo investment highlights • 10,908 SF Freestanding CVS (BBB+ S&P) on Approximately 1.57 Acres • Primary Lease Term Through 12/31/18 with Four Renewal Options Remaining • Hard Corner at Signalized Intersection • Excellent Signage and Visibility • ± 140,000 residents within a 5-mile radius • Building is situated on a ± 1.57 AC lot 4 | Offering Memorandum financial overview CVS Annualized Operating Data 2755 Hollywood Avenue Monthly Rent Annual Rent Cap Rate Increases Shreveport, LA 71108 Current - 12/31/2018 $25,320.93 $303,851.10 20.26% 1.70% List Price .................................................................................. $1,500,000 Option 1 $25,775.43 $309,305.10 20.60% 1.70% Option 2 $26,229.93 $314,759.10 20.95% 1.70% CAP Rate - Current ....................................................................... 20.26% Option 3 $26,684.43 $320,213.10 21.31% 1.70% Gross Leasable Area ............................................................± 10,908 SF Option 4 $27,138.93 $325,667.10 21.67% 1.70% Lot Size .................................................................................. ± 1.57 Acres * Tenant is not expected to renew the lease* Year Built ..............................................................................................1998 Tenant Summary Tenant Trade Name CVS Type of Ownership Fee Simple Lease Guarantor Eckerd Corporation Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 12/02/1998 Lease Expiration Date 12/31/2018 Term Remaining on Lease ± 1.25 Years Increases 1.70% Options Four, 5-Year Options Representative Photo CVS, Shreveport, LA | 5 tenant overview 6 | Offering Memorandum Representative Photo Property Name CVS Property Type Net Leased Drug Store Company Trade Name CVS Health Corporation (NYSE: CVS) Ownership Public Credit Rating (S&P) BBB+ No. of Locations ± 9,700 No. of Employees ± 243,000 Headquartered Woonsocket, Rhode Island Web Site www.cvs.com Year Founded 1963 TENANT OVERVIEW CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. Hook-SupeRx, LLC operates as a subsidiary of CVS Health Corporation and retails drugs in the United States. It is based in Indianapolis, Indiana and does business as CVS Pharmacy. GEOGRAPHIC REACH CVS drugstores span across 49 U.S. states, the District of Columbia, Brazil and Puerto Rico. The company also operates Longs Drugs banner in California, Hawaii, Nevada and Arizona. Around 1,000 store locations throughout 31 states and in Washington D.C. also have Minute Clinics. STRATEGY CVS continues to evolve from being a general pharmacy store, expanding into more specialty fields of the fast-growing healthcare market. The company’s Retail Pharmacy Store Development plan, which focuses on entering new markets, adding stores in existing markets, and relocating stores to more convenient sites, has been essential for business growth and in keeping up with Walgreens. CVS has been successful in its ventures for its store count has increased from 7,388 stores at the end of 2011 to nearly 9,700 stores today. In addition to opening new stores, CVS has made efforts to increase sales at existing ones. Prescription drugs account for more than two-thirds of its sales, and the retailer is attempting to grow revenues from over-the-counter medications and general merchandise through its growing private-label product offering. CVS, Shreveport, LA | 7 property overview the offering Property Name CVS 2755 Hollywood Avenue Property Address Shreveport, LA 71108 Assessor’s Parcel Number 171422-076-0001-00 parcel map Site Description Number of Stories One Gross Leasable Area (GLA) ± 10,908 SF Lot Size ± 1.57 Acres (68,346 SF) Type of Ownership NNN Hollywood Ave ±11,000 ADT Parking ± 65 Surface Spaces Parking Ratio 5.96 : 1,000 SF 8 | Offering Memorandum surrounding tenants CVS, Shreveport, LA | 9 area overview Shreveport, LA As the third-largest city in the state of Louisiana and the seat of Caddo Parish, Shreveport extends along the Red River. Shreveport was once a major player in United States oil business, and at one time could boast Standard Oil of Louisiana as a locally based company. Recently, Shreveport has largely transitioned into a service economy specifically within the gaming industry and tourism. demographics POPULATION 1 Mile 3 Mile 5 Mile HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 10,483 65,110 140,304 2022 Projection 3,716 25,699 58,859 2017 Estimate 10,691 66,619 142,389 2017 Estimate 3,771 26,036 59,258 2010 Census 11,249 70,495 148,278 INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average 2000 Census 11,277 77,821 154,820 $35,616 $48,229 $56,965 Household Income 10 | Offering Memorandum top employers 1. Barksdale Air Force Base 2. Caddo Public Schools 3. State of Louisiana 4. University Health 5. Willis-Knighton Health System 6. Bossier Parish School System 7. City of Shreveport 8. Wal-Mart/Sam’s Stores 9. Christus Schumpert Health System 10. Harrah’s/Horseshoe Casinos economic development The Shreveport-Bossier City was recently named as a growing area for the technology industry by technology magazine “Innovation and Tech Today”. The recent increase in tech industry jobs through employers such as CSRA and Eatel has put the area on a shortlist of places to watch. The growing number of technology and IT companies located in the region has created nearly 3,000 new tech jobs in the last few years. In addition to the tech growth, the region has seen an increase of Fortune 500 companies like CenturyLink and IBM to technology start-ups such as CyberReef Solutions. Shreveport allows those who live there to work virtually anywhere. Shreveport-Bossier City MSA is the commercial and cultural center of the tri-state area where Arkansas, Louisiana and Texas meet. Shreveport is home to the Barksdale Air Force base, which consists of the Air Force Global Strike Command, Eighth Air Force and Second Bomb Wing and supports the local economy with over 12,300 employees and an annual economic impact of nearly $1 billion. Home to four riverboat casinos/hotels as well as Harrah’s Louisiana Downs, providing stable employment opportunities as well as an ample tourist population. CVS, Shreveport, LA | 11 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of CVS located at 2755 Hollywood Avenue, Shreveport, LA 71108 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services