Montgomery Heights

RETAIL LEASE UP PROSPECTUS

March 9, 2012

PENNROSE PROPERTIES

Rentable SF’s

Retail Space Frontage Rentable SF's % of Total

A Montgomery St. 1,521 17%

B Montgomery St. 1,914 21%

C Dr. MLK Blvd 3,093 34%

D Dr. MLK Blvd 2,650 29%

9,178 100%

Lease PlanPOTENTIAL TENANTS • Space A&B: Pyramid Academy Pre-

School• Space C: Indigo Heights Restaurant• Space D: Pharmacy/Convenience

Store

Indigo Heights• Space C - Corner Montgomery & MLK (3,093 SF)

• Rent 15 PSF (11 Base + 4 CAM)

• Restaurant – sitdown/takeout, BBQ & Soul Food

• Owner Lance Knowling veteran of restaurants in

Maplewood and Montclair

Pyramid Academy• Spaces A&B - Both Montgomery St (3,435 SF)

• Rent: 20 PSF (16 Base + 4 CAM)

• Daycare ~ 70 Students @ full capacity

• Would use playground

• Husband-wife owners have operated similar facility

in East Orange for 7 years

Koffi Pharmacy• Space D – Dr. MLK Boulevard (2,650 SF)

• Rent 20 PSF (16 Base + 4 CAM)

• Neighborhood pharmacy with both walk-in and

mail order prescription business

• Some space dedicated to convenience items

• Proprietor has 15+ years experience managing

pharmacies, this would be his first venture

Start Up BudgetSources

"Retail Fitout Budget" 300,000

Partner Equity 21,084

Rental Receipts (Year 1) + Security Deposits 62,214

TOTAL 383,298

Uses

Vbox budget 188,000

Contingency @ 5% 9,400

Construction Management Services 15,000

Broker Commissions 5% 58,898

Working Capital, Free Rent, etc

Attorney / Leasing 12,000

Additional Tenant Start Up 100,000

Daycare (Repayable) 30,000

Pharmacy

Restaurant 70,000

Funds Remaining 383,298

Pros & ConsPROS CONS

• All neighborhood-serving businesses

• Would meet needs of community

• Retail activity will help generate buzz & bridge to Montgomery II

• Ability to adjust financing model to maximize return

• Not credit tenants

• All need funds for fit-

out/start up

• Will require investment

from landlord beyond

$300,000 “tenant fit-

out” budget included

in Montgomery St

budget