Net Leased CVSoffering memorandum

1541 Highway 20 neConyers, georgia 30012

This Offering Memorandum and any subsequent evaluation material you may be provided (collectively known as the “Offering Memorandum”) is intended solely for your limited use in considering whether to pursue negotiations to acquire CVS (the “Property”) located in Conyers, Georgia. The Property is being marketed for sale by Ackerman & Co. (“Broker”).

The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the Property and has been prepared by Broker. It does not, however, purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. Broker makes no representation or warranty, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal liability is assumed to be implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that the Offering Memorandum and its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not directly or indirectly disclose, or permit anyone else to disclose, the Offering Memorandum or its contents to any other person, firm, or entity (including, without limitation, any principal for whom you have been engaged), without prior written authorization of Owner or Broker and that you will not use or permit to be used the Offering Memorandum or its contents to be copied or used in any fashion or manner detrimental to the interest of Owner. Photocopy or other duplication is strictly prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from sources that are deemed reliable, but the Broker does not warrant or represent that the information is true or correct. Prospective offerors are advised to verify information independently. The Offering Memorandum is not to be construed as an offer or as any part of a contract to sell the property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or any other hazardous, toxic or dangerous chemical item, waste or substance (hereinafter collectively referred to as “Waste”) relating to the Property shall in no way be construed as creating any warranties or representations, expressed or implied by the Broker as to the existence or nonexistence or nature of Waste in, under or on the Property, it may create significant legal and/or economic obligations upon the Owner, lessee and/or other holders of interest in the Property or a part thereof and you are hereby advised to obtain professional assistance such as from a consultant, engineer and/or attorney prior to taking an interest in the Property or a part thereof.

CONFIDENTIAL INFORMATION (INFORMATION NOT WARRANTED )

01 eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview

02 TenanT oVerView Tenant overview rent roll Site Plan

03 markeT oVerView Conyers, georgia Competitive Property map detailed demographics

04 finanCiaL oVerView financial Summary

Table Of ContentsNET LEASED CVS – CONyERS, gEORgIA

ConTaCTS

JASON POWELL, CCIMVice President, Investment Sales

Ackerman & Co.770.913.3952jpowell@ackermanco.net

ACKERMAN & CO.10 Glenlake Parkway

South Tower, Suite 1000Atlanta, Georgia 30328

770.913.3900 | www.ackermanco.com

Net Leased CVS – Conyers, georgia

eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview

01

net leased cvs – conyers, georgia 5

The Conyers CVS store is located on a hard corner directly across the street from the Rockdale Medical Center (a 138-bed acute-care hospital) at a heavily traveled signalized intersection with over 30,000 vehicles per day traffic counts. In addition to outstanding proximity to the area hospital, the CVS property is located at the core of the area’s major retail corridor with major retailers such as Walgreens, Publix, Papa John’s Pizza, Subway, Wendy’s and United Community Bank surrounding the site. The property is an outparcel to the Milstead Crossing Shopping Center anchored by a Publix Supermarket. According to Costar, the Milstead Crossing shopping Center totals over 64,000 square feet of building area with a current occupancy rate of approximately 98%. The CVS store features a drive-thru pharmacy and several points of ingress / egress.

INVESTMENT HIgHLIgHTS

Proximity to Major Hospital & Medical Park: The subject, CVS property, is located directly across the street from a 138-bed hospital, the Rockdale Medical Center, and less than a half mile from Conyers Medical Park. This premium access to the Hospital and Medical Park enables CVS to pull patients and visitors looking to fill prescription orders and pick-up other non-pharmacy goods with quick access and ease.

Absolute Net Lease (NNN) Structure: Due to the absolute net lease structure, this property serves well as a passive investment. Under the terms of the lease, the tenant is responsible for all expenses on the leased premises. These responsibilities include, but not limited to, interior, exterior, roof, and structure.

INVESTMENT SUMMARY

Ackerman & Co.’s Retail Investment Sales Team is pleased to exclusively present for sale an absolute net-leased CVS located in Conyers, Georgia. The CVS property, originally constructed in 1996, includes a 9,504 square feet building on approximately 1.21 acres. The offering provides stable cash flow from an investment grade (S&P: BBB+) tenant. This asset is fee simple, and is being offered free and clear of debt.

01 Executive Summary

INVESTMENT SUMMARy

Square Footage / Acreage: 9,504 Sf

Acreage: 1.21 acres

Offering Price / Price per Square Foot : $1,935,000 ($202/Sf)

Debt Structure: market (offered free & clear)

Lease Structure: nnn

Cap Rate: 8.75%

Lease Expiration: 5/24/2016

Reported Store Sales (4/2011 - 3/2012): $592/Sf

1541 Highway 20 ne, Conyers, georgia

net leased cvs – conyers, georgia 6

INVESTMENT SUMMARY, CON’T.

01 Executive Summary

Stable Cash Flow with Appreciation: This asset should provide steady cash flow to ownership over the remainder of the current lease term. In addition, there are four (4), five (5) year tenant renewal options upon the term’s expiration with rent increases of approximately ± 2.75% at the beginning of each option period. The next scheduled rent increase would begin during the first option period if exercised by CVS in 5/2016.

Low Entry Price Point: The offering price of $1,935,000 is significantly lower than the current average price point for a CVS and Walgreens store offered fee simple. This low entry price point enables the investor to purchase the land and building at a much lower basis when compared to similar offerings.

Offered Free and Clear of Debt: With limited single tenant product in the market, this is a benefit for an investor looking for an all cash deal or market debt with low current low interest rates.

High Yield Opportunity: This investment offers the opportunity to purchase a CVS at a higher than market cap rate due to the current point within the initial lease term.

Superior Credit Tenant: CVS originated in 1963, the second largest Pharmacy presently has over 7,300 drugstores in the United States and Puerto Rico. For fiscal year ended December 31, 2012, CVS reported revenue of $123 billion with net income of $3.884 billion. Currently, CVS has a total of more than 201,000 employees and currently holds a BBB+ Investment grade rating from Standard & Poor’s.

net leased cvs – conyers, georgia 7

HRockdaleMedical Center

20

278

138

138

20

20

Sigman Rd

Old Covington Hwy

Hi Roc Rd

Old Salem R

d

Flat Shoals Rd

Klondike Rd

Irwin B

ridge Rd

Loganville H

wy

Bald Rock R d

cvs/pharmacy1541 HIGHWAY 20 NE CoNYErs, GA 30012

The subject CVS, located in Conyers, Georgia, was built in 1996 and is in excellent physical condition.

The drug store sits at a highly visible and busy intersection with approximately 33,624 vehicles per day. The site offers ample parking and good visibility from heavily traveled Sigman Road and Loganville Highway (GA Highway 20).

In 2011, total population within 5-miles was 57,887 and average household income within the 5-miles was $63,844.

LOCATION AND DEMOGRAPHICS

01 Executive Summary

DEMOgRAPHIC SUMMARy

1-MILE 3-MILES 5-MILES

Population 2011 5,150 28,869 57,887

Total Households 1,980 10,113 20,491

Average Household Income $51,918 $51,572 $63,844

Source: CoStar

TraffiC CounTS

19,338 vEHICLES Per daY on Sigman road

14,286 vEHICLES Per daY on LoganViLLe HwY (ga 20)

= 33,624 TOTAL

net leased cvs – conyers, georgia 8

Loga

nville

Hwy

Sigman Rd

cvs/pharmacy1541 GEorGIA 20 NECoNYErs, GEorGIA 30012

14,2

86 v

EHIC

LES

Per

daY

.

19,338 vEHICLES Per daY.

rockdalemedical center

close-up aerial view of the site

01 Executive Summary

net leased cvs – conyers, georgia 9

residential

rockdalemedical center

conyersmedical park

conyersmiddle school

Milstead Ave

Milstead Ave

Sigman Rd

Sigman Rd

rockdalemedical plaza

cvs/pharmacy1541 HIGHWAY 20 NECoNYErs, GEorGIA 30012

14,2

86 v

EHIC

LES

Per

daY.

19,338 vEHICLES Per daY.

11,8

62 v

EHIC

LES

Per

daY

.

AERIAL VIEW CAPTURING ThE sITE AND sURROUNDING RETAIL AND PROxImITy TO hOsPITAL AND mEDICAL PARk

01 Executive Summary

net leased cvs – conyers, georgia 10

PROPERTY OVERVIEW

01 Executive Summary

address: 1541 georgia 20 ne, Conyers, georgia 30012

Parcel id: 066006025B

County: rockdale

metro market: atlanta

Zoning: Bn (City of Conyers)

Building Size: 9,504 square feet

Land area: 1.21 acres

Year Built: 1996

Construction: Concrete block

Parking: approximately 58 spaces

Signage:Large dedicated pylon at the intersection of Sigman road ne and milstead ave (ga Highway 20)

access:There are two (2) points of ingress / egress via Sigman road ne and milstead ave (ga Highway 20)

Store number: 4694

drive-through: Yes

Pharmacy: Yes

Photo: Yes

Store Hours: Seven (7) days a week, 7:00 am - 10:00 Pm

Pharmacy Hours:monday - friday: 8:00 am - 10:00 Pm Saturday: 9:00 am - 6:00 Pm Sunday: 10:00 am - 6:00 Pm

Net Leased CVS – Conyers, georgia

TenanT oVerView Tenant overview rent roll Site Plan

02

net leased cvs – conyers, georgia 12

TENANT SUMMARY

SiZeone-Story Building

SQuare fooTage9,504

LeaSe eXPiraTion5/24/2016

CVS Caremark Corporation (NySE: CVS) operates as a pharmacy services company in the United States. Founded in 1967, it is the nation’s second largest Pharmacy company. The company’s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal government’s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2012, CVS had over 7,525 retail locations and operated 44 retail specialty pharmacy stores, 13 specialty mail order pharmacies, and 4 mail service pharmacies located in 45 states, Puerto Rico, Brazil, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. For the fiscal year ended December 31, 2012, CVS Caremark Corporation reported revenue of over $123 billion with net income of $3.884 billion.

CVS Caremark Corporation Common (NySE: CVS) S&P Rating: BBB+Headquarters: Woonsocket, Rhode Island USAStore Locations: 7,525year Founded: 1963Employees: 201,0002012 Revenue: $123 B

www.info.cvscaremark.com

02 Tenant Overview

net leased cvs – conyers, georgia 13

RENT ROLL

02 Tenant Overview

SuiTe TenanTSTarT daTe

eXPiraTion daTe

rSfannuaLiZed

renTmonTHLY

renTrenewaL

TermrenewaL inCreaSe

noTeS

1 CVS 5/1/1996 5/24/2016 9,504 $169,332 $14,111 5 years

Approximately two and three quarters percent (2.75%) rent increase during each

option period.

Tenant retains four (4) x five (5) year options after the initial twenty (20) year lease term.

RENEWAL INCREASES

option 1option 2option 3option 4

$174,108 $178,860 $183,612 $188,364

net leased cvs – conyers, georgia 14

SITE PLAN

1-STorY

ConCreTe BLoCk BuiLding

9,504 Sf1.21 aCreS

58 SPaCeS

MIL

STEA

D RO

AD

SIgMAN ROAD

cvs/pharmacy1541 HIGHWAY 20 NECoNYErs, GEorGIA 30012

driVe-THru

02 Tenant Overview

Net Leased CVS – Conyers, georgia

markeT oVerView Conyers, georgia Competitive Property Survey detailed demographics

03

net leased cvs – conyers, georgia 1603 Market Overviewconyers, georgia

Conyers, GA is the only city in Rockdale County. It is located approximately 24 miles east of the city of Atlanta and is part of the Atlanta Metro Statistical Area (MSA). Metro Atlanta is the most populous metro area in the state of Georgia and the ninth-largest MSA in the United States with close to 5.5 million residents.

Lower Cost of Living

According to a recent Bizjournals report, the Atlanta MSA is expected to reach 7.3 million residents by the year 2025. Conyers serves as a major housing area for Atlanta workers looking for a manageable commute and a lower cost of living. Compared to the rest of the country, Conyers’s cost of living is 10.50% lower than the U.S. average.

Proximity to Rockdale Medical Center

In addition to the diverse and expanding Atlanta economy, Conyers is home to a number of large employers. Rockdale Medical Center, the area’s hospital, is the largest employer in Conyers with 3,000 employees. The subject, CVS property, is situated directly across the street from this major hospital. Some of the other large employers in Conyers include Rockdale County Public Schools and AT&T.

TOP EMPLOyERS IN CONyERS, gEORgIA

Company industry # employees

rockdale medical Center Healthcare 3,000

rockdale County Public Schools

education 2,640

aT&T Communications 2,209

acuity Lighting group manufacturing 880

Hill-Phoenix manufacturing 835

Pratt industries manufacturing 800

golden State foods food wholesale/Trade 480

Solo Cup Company, inc. manufacturing 410

wal-mart Stores retail 400

Bio-Lab manufacturing 210

rockdale medical Center, Conyers, georgia

net leased cvs – conyers, georgia 17

H

20

278

138

138

20

20

Old Covington Hwy

Hi Roc Rd

Old Salem R

d

Flat Shoals Rd

Klondike Rd

Sigman Rd

3-MILE RADIUS

03 Market OverviewCOMPETITIVE PROPERTY MAP (3 MILES)

Publix Pharmacy1591 Sr-20

walmart Pharmacy1436 dogwood dr Se

walgreens1510 milstead ave ne

walgreens1738 Highway 138 Se

cvs/pharmacy1541 GEorGIA 20 NECoNYErs, GEorGIA 30012

net leased cvs – conyers, georgia 1803 Market Overviewdemographics

demograPHiCS 1-miLe 3-miLeS 5-miLeS

2011 Population 5,150 28,869 57,887

2016 Projected Population 4,980 30,437 60,323

2010 Census Population 5,418 28,707 57,631

growth 2011 - 2016 -3.30% 5.40% 4.20%

growth 2010 - 2011 -4.90% 0.60% 0.40%

2011 Households 1,980 10,113 20,491

2016 Projected Households 1,909 10,631 21,408

2010 Census Households 2,093 10,088 20,416

growth 2011 - 2016 -3.50% 5.10% 4.50%

growth 2010 - 2011 -5.40% 0.30% 0.40%

owner occupied 44.29% 49.62% 60.84%

renter occupied 55.66% 50.39% 39.16%

2011 avg Household income $51,918 $51,572 $63,844

2011 med Household income $38,482 $38,316 $47,554

2011 Per Capita income $20,686 $18,400 $23,096

CONyERS COST OF LIVINg

Compared to the rest of the country, Conyers’s cost of living is 10.50% lower than the u.S. average.

Net Leased CVS – Conyers, georgia

finanCiaL oVerView financial Summary

04

net leased cvs – conyers, georgia 2004 Financial Overviewfinancial summary

finanCiaL oVerView

Sales Price $1,935,000

Square Feet 9,504

Price Per Square Feet $203

CAP Rate 8.75%

Financing Property is offered free and clear of existing debt

BuiLding informaTion

Address 1541 georgia 20 NE, Conyers, georgia 30012

Property Type Single-tenant retail

year Built 1996

Parcel Size 1.21 acres

Type of Ownership Fee Simple

Recent Improvements CVS renovations in 2009

LeaSe deTaiLS

Commencement Date 5/1/1996

End Date 5/24/2016

Lease Term 20 years

Annual Rent $169,332

Rent Escalations (Current Term) None

Rent Per Month $14,111

Lease Type Absolute NNN

Options Four (4) x five (5) year

Option Rental Increases Approximately 2.75% during each option period

Landlord Responsibilities None

Reported Store Sales (4/2011 - 3/2012) $592/SF

© 2013 Ackerman & Co. All rights reserved.

FOR MORE INFORMATION, PLEASE CONTACT:

JaSon PoweLL, CCim | Vice President, investment Sales

770.913.3952 | jpowell@ackermanco.net