MIRACLE MILE SHOPPING CENTER MONROEVILLE (PITTSBURGH), PA | EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) is a Pennsylvania licensed real estate broker. THE OFFERING As exclusive advisor, HFF is pleased to offer the opportunity to acquire Miracle PROPERTY OVERVIEW Mile Shopping Center (the “Property” or “Miracle Mile”), a 100% leased 298,694 Address: 4100 William Penn Highway square foot market-leading retail center located in Monroeville, Pennsylvania, (Business US 22) Monroeville, PA 15146 approximately 12 miles east of Pittsburgh. Miracle Mile is anchored by a premier Rentable Area: 298,694 SF lineup of national retailers including LA Fitness, Marshall’s, DSW Shoe Warehouse, Year Built: 1954 La-Z-Boy, PNC Bank, and more. Located within the William Penn Highway Year Renovated: 2006 Retail Corridor, the Property benefits from excellent access from several major # of Stories: 1 highways: Interstate-376, which connects Monroeville to Downtown Pittsburgh, Parking Spaces: 1,458 spaces and the Pennsylvania Turnpike (I-76), which spans the entire state and is heavily Parking Ratio: 4.9 spaces / 1,000 SF trafficked. The Property is located within 0.5 miles of the intersection of these two % Leased: 100% highways, resulting in a traffic count of 28,000 vehicles per day at the Property. Major Tenants: LA Fitness (45,000 SF, Tenant Since 2008) Marshall’s (31,753 SF, Tenant Since 1996) An acquisition of the Property allows investors to take advantage of a Office Max (21,832 SF, Tenant Since 2006) core offering with some upside opportunities, favorable capital markets, PNC Bank (20,126 SF, Tenant Since 1993) DSW (20,000 SF, Tenant Since 2001) a nationally top performing retail market, and a regionally dominating La-Z-Boy (20,000 SF, Tenant Since 2012) established retail center. Traffic Count: 28,188 vehicles per day | pg 2 LEASING & EXPIRATION PLAN FORTUNE STAR FORTUNE MAD MEX LIFE UNIFORMLIFE MASSAGE ENVY GAMESTOP NAPOLI PIZZANAPOLI MATTRESS WAREHOUSE THE EYEGLASS STORE LIBERTY TRAVEL Not Part of Collateral LEGEND 2017 2018 2019 2020 2021+ pg 3 | RIDGE NATRONA HEIGHTS RUSSELLTON BRACKENRIDGE TARENTUM VAN HAMPTON CREIGHTON LOWER FRANKLIN McCANDLESS TOWNSHIP BURRELL PARK TOWNSHIP A INDIANOLA NEW KENSINGTON ALLSION PARK CHAPEL ORRVILLE DOWNS CHESWICK ROSS HARMAR TOWNSHIP GLENSHAW BARKING TOWNSHIP SHALER TOWNSHIP OAKMONT O’HARA INVESTMENT HIGHLIGHTS FOX CHAPEL SWORTH TOWNSHIP AVALON PENN HILLS PLUM RENTON BELLEVUE BRIGHTON PERRY HEIGHTS NORTH REGENCY EDY MILLVALE ALCOMA PARK SHIP DOMINANT REGIONAL RETAIL CENTER MARSHALL- LAWRENCEVILLE HOLIDAY PARK SHADELAND CENTRAL CHURCHILL SHERADEN NORTHSIDE HOMEWOOD WITH PREMIER LOCATION VALLEY FAIRYWOOD SHADYSIDE PITTSBURGH ELLIOTT CRAFTON OAKLAND The Property is the dominant retail center in the eastern suburbs of Pittsburgh, CBD SQUIRREL SBURY HILL WILKINS MURRYSVILLE AGE OAKWOOD SOUTHSIDE SWISSVALE TOWNSHIP MONROEVILLE due primarily to its location within the William Penn Highway Retail Corridor. GREENTREE DELM BEECHVIEW CARNEGIE BANKSVILLE BRADDOCK PITCAIN This corridor directly serves shoppers from Murrysville and Monroeville, which CARRICK DORMONT SOUTH MUNHALL HILLS TRAFFORD NORTH are major suburbs of Pittsburgh that surround the Property. Additionally, two VERSAILLES BRENTWOOD LINCOLN PLACE WHITEHALL WEST MIFFLIN major highways are directly accessible from the Property: Interstate-376 and ARDARA MT LEBANON HARRISON DRAVOSBURG CITY McKEESPORT LARIMER the Pennsylvania Turnpike (I-76). These two thoroughfares provide direct BALDWIN PLEASANT WHITE OAK NORTH HILLS HUNTINGDON PENN JEANNETTE BETHEL PARK LIBERTY access to the Property for shoppers traveling from the City of Pittsburgh and GLASSPORT IRWIN VERSAILLES LINCOLN HILLS all its eastern suburbs. The map at the upper left displays this accessibility. R n J d U e R ff #Propertye o rs o d n d d i R R R R d Subject Miracle Mile Shopping Center d d g d R n o F n L u 1 Jonnet Plaza r e The Property is situated on William Penn Highway, also known as y R R n d o 2 Holiday Center s CCAC p m Boyce Campus o Business US 22, the location of significant retail and commercial 3 Plaza on Mall Boulevard h T PA TurnpikePA 4 Penn Center East J R R e development through the Monroeville and Murrysville areas. Within this o o ff d d e 5 Monroeville r Hills Shopping Center i i s o R R n d d 6 Monroeville Mall*R d (enclosed regional mall) William Penn Highway Retail Corridor, the Property, although the market *Monroeville Mall is not competitive with the Property. wy n H n e O P leader, competes with several properties as noted on the map to the m ld illi a Wi d W l liam Pe n n H w y O l 1 left. The occupancy of the Property’s competitive set is over 95%, y 5 enn Hw am P illi M W o 2 s s which is evidence of the strength of the submarket and retail corridor. UPMC id e B East l v 3 d Furthermore, due to its accessibility, premier tenancy, and superior quality, d Gateway Senior y v Hw l High School W n B R n e ill e l o ia m P l the Property is the premier retail center within its competitive set. d i Forbes Monroeville vville Bl i 4 e R o Regional Mall r d d d d n R o R Hospital k 6 M k B o d o d d r o R o o R R r n r w b ir b r LifeCare l l n i a i e T c T k k A t Hospitals a i a v P m e m y y Population 3-Mile 5-Mile t S a s H e H J a m d v l 2010 Census 44,560 135,246 B e d i s d s e v v o l A B 2016 Estimate 44,597 135,979 M r e l l i v e t e o r S m n i r s o B a e M d L 2021 Projection 44,681 136,242 r o m R a w J k o n o r b A l | pg 4 i v T n n 5-Year Projected Growth 0.19% 0.19% e o o e i v s n A l Ave e e l v t x a A d E WWal n R n t r y e d r e L e v e r l k t k B 93% OF GLA LEASED TO NATIONAL RETAILERS SECURE CASH FLOW FROM NATIONAL RETAILERS AND CREDIT TENANTS The Property is 100% leased to a diverse set of retailers, with a robust weighted average lease term of 5.6 years. This is a result of the Property having very little tenant rollover in the coming years; 89% of the square footage is leased through December 2020. Furthermore, 93% of Miracle Mile is leased to national retailers. The in-place cash flow from reputable tenants and limited lease roll provides secure long-term cash flows and resulting value appreciation. LANDMARK RETAIL LOCATION FOR 63 YEARS SUPERIOR QUALITY ASSET 1954 AND LONGSTANDING RETAIL LOCATION Considered a local landmark, the Property was built in 1954 and more recently renovated in 2006. Since its construction, Miracle Mile has been maintained to institutional standards. While the Property benefits from its Class A quality, it further benefits from its 63-year tenure as a retail location and its premier visibility along William Penn Highway (Business US 22). The images to the right show Miracle Mile at its inception in 1954 as compared 2017 to its current state. As evidenced by these photographs, the Property has continuously adapted to the changing retail environment, attracting major national retailers and remaining a landmark retail location for Pittsburgh’s eastern suburbs. Several recent tenant relocations from Monroeville Regional Mall reflect the retailer preference for the open air well-established, well- located Miracle Mile Shopping Center. PREMIER RETAIL MARKET WITH 2.7% VACANCY STRONG AND INCREASING TENANT SALES AND HIGH DENSITY OF DEVELOPMENT Tenant sales at the Property have been robust, and in 2016 the average The Pittsburgh retail market is extremely competitive, with an overall vacancy occupancy cost ratio was 8.84% for all reporting tenants. Furthermore, over of 3.2% according to CoStar; the Monroeville submarket is even tighter with each of the last five (5) years, comp sales have increased steadily. These a vacancy of 2.7%. Miracle Mile directly competes with the retail properties strong sale numbers and low occupancy costs will drive tenant retention and that were displayed in the map on a previous page. The overall occupancy increasing rents as leases roll. of these competing properties is over 95%. Additionally, due to the unusual topography of the Pittsburgh region serving as a strong barrier to entry, retail Recent leasing activity has demonstrated this ability to increase rents and development is dense and there is little opportunity for new supply. Within retain tenants. The new leases and existing tenant renewals that have been the William Penn Highway Retail Corridor, there are no developable sites. This signed in the last few years, reflect rent increases averaging 9.4%. nullifies the threat of new competition coming to the market. Gateway Middle School Jonnet Plaza William Penn Highway Stroschein Road | pg 6 Monroeville Blvd UPMC EAST: A MAJOR DEMAND DRIVER LOCATION WITHIN THE DYNAMIC AND ATTRACTION TO MONROEVILLE AND THRIVING PITTSBURGH MSA Within a quarter (0.25) mile east of the Property is UPMC East, a major Over the past three decades, the Pittsburgh region has undergone a dramatic hospital facility and a part of the University of Pittsburgh Medical Center renaissance and it now stands as one of our nation’s largest and most (“UPMC”) medical network.