ACTUAL SITE

C A R R O L LT O N

V IRGINIA

SINGLETENANT

___________________

ABSOLUTE NNNINVESTMENT OPPORTUNITY(W/ DRIVE-THRU)

(NYSE: RAD | S&P: B)

EXCLUSIVELY MARKETED BY

ACTUAL SITE

Broker of Record: David Wirth - VA License No. 0225198340

FRANK ROGERS | FIRST VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

101 W Big Beaver Road, Suite 14 | Troy, MI 48084DL: 248.688.0631 | M: 810.348.3324

Frank.Rogers@srsre.com | MI License No. 6501170267

MICHAEL CARTER | FIRST VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

101 W Big Beaver Road, Suite 14 | Troy, MI 48084DL: 248-688-0630 | M: 586-549-4260

Michael.Carter@srsre.com | MI License No. 6501180257

ACTUAL SITE

TABLE OF CONTENTS

5INVESTMENT SUMMARY

OFFERING SUMMARY | INVESTMENT HIGHLIGHTS

8PROPERTY OVERVIEW

AERIALS | SITE PLAN | LOCATION MAP

13AREA OVERVIEW

DEMOGRAPHICS

15FINANCIALS

RENT ROLL | BRAND PROFILE

ACTUAL SITE

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building) in a newly construction absolute NNN lease Rite Aid (corporate guaranty) investment property located in Carrollton, Virginia. The tenant signed a brand new 20 year lease that commenced at the start of 2017. The lease is absolute NNN with zero responsibilities, and is an ideal, management-free investment for a passive, out-of-state investor. The lease features a 5% rental increase in Year 11 and then a 7.5% increase every 10-years throughout the 6 (five-year) option periods, steadily increasing NOI and hedging against inflation. The building is brand new high-quality brick construction with a drive-thru. There is attractive assumable debt on the property at a 4.50% fixed interest concurrent with the lease term (property can be purchased free and clear of debt).

The subject property is located at the signalized, hard corner intersection of Carrollton Boulevard and Smith’s Neck Road with more than 41,000 vehicles per day. The immediate area along Carrollton Boulevard features three traffic signals in close proximity and provides strong visibility for the subject property. Rite Aid is within walking distance to national tenants including Food Lion, Bojangles, Dunkin’ Donuts, 7-Eleven, Subway, Sonic, and more. Rite Aid is also adjacent to The Nest on 17, a 208 unit apartment community, which along with the other surrounding apartments offers a steady consistent consumer base. T The sites is located just 12 miles from Newport News, VA and just 13 miles from Hampton, VA. There are over 19,000 people within 5 miles and the average household income within 5 miles exceeds $103,000.

5 | INVESTMENT SUMMARY | SRS NATIONAL NET LEASE GROUP .

INVESTMENT SUMMARY

ACTUAL SITE

6 | OFFERING HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

OFFERING SUMMARY

RENTABLE AREA: 11,187 SF

LAND AREA: 2.74 Acres

PROPERTY ADDRESS: 13554 Carrollton Boulevard, Carrollton, VA 23314

YEAR BUILT: 2017

PARCEL NUMBER: 34-01-003V2

OWNERSHIP: Fee Simple (Land and Building)

PROPERTY SPECIFICATIONS

PRICING: $4,706,000

NET OPERATING INCOME: $294,152

CAP RATE: 6.25%

GUARANTY: Corporate

TENANT: Rite Aid

LEASE TYPE: Absolute NNN

LANDLORD RESPONSIBILITIES: None

OFFERING

7 | INVESTMENT HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

INVESTMENT HIGHLIGHTS

ACTUAL SITE

LONG TERM CORPORATE GUARANTEED RITE AID LEASE (NYSE: RAD | S&P: B) | OPTIONS TO EXTEND

• 20-year lease commenced in January, 2017• The lease features a 5% rental increase in Year 11 and then a 7.5% increase every

10-years throughout the 6 (five-year) option periods, steadily increasing NOI and hedging against inflation

• Attractive assumable in-place financing at 4.50% fixed rate concurrent with term of the lease (property can be purchased free and clear of debt)

• New 2017 High-Quality Brick Construction

ABSOLUTE NNN | FEE SIMPLE OWNERSHIP | ZERO LANDLORD RESPONSIBILITIES• Tenant pays for CAM, taxes, insurance and maintains all aspects of the premises• No landlord responsibilities• Ideal, management-free investment for an out-of-state, passive investor

HARD CORNER INTERSECTION | INTERSTATE 5• The subject property is located at the signalized, hard corner intersection of Carrollton

Boulevard and Smith’s Neck Road with more than 41,000 vehicles per day• The immediate area along Carrollton Boulevard features three traffic signals in close

proximity and provides strong visibility for the subject property • The site has excellent visibility with significant highway frontage and multiple points

of access along both adjacent streets

RETAIL CORRIDOR LOCATION | CLOSE PROXIMITY TO PAUL D CAMP D COLLEGE (1,812 STUDENTS)

• Rite Aid is within walking distance to national tenants including Food Lion, Bojangles, Dunkin’ Donuts, 7-Eleven, Subway, Sonic, and more.

• Close proximity to Paul D Camp College (1,812 Students)

AFFLUENT 5-MILE TRADE AREA | SIX FIGURE INCOMES• More than 19,800 residents support the trade area • Average household income exceeds $103,000 in 5 miles

8 | PROPERTY OVERVIEW | SRS NATIONAL NET LEASE GROUP .

PARCEL MAP

PROPERTY OVERVIEW

ACTUAL SITE

ACCESS

TRAFFIC COUNTS

IMPROVEMENTS

PARKING

YEAR BUILT

PARCEL

ZONING

Fidler Lane: ................................................................................... 2 Access Point(s)Rockash Way: ................................................................................ 1 Access Point(s)

Carrollton Boulevard: ...............................................................29,000 Cars Per DaySmith’s Neck Road: ................................................................... 12,000 Cars Per Day

There is approximately 11,187 SF of existing building area.

There are approximately 73 parking spaces on the owned parcel. The parking ratio is approximately 6.53 stalls per 1,000 SF of leasable area.

2017

Parcel Number: 34-01-003V2 Acres: 2.74 Square Feet: 119,354 SF

Commercial

Carrollton Blvd.

Rockfish Way

Smith’s Neck Rd.

12,000CARS PER DAY

29,000CARS PER DAY

THE NEST ON 17(208 APARTMENT UNITS)

EAGLE HARBORGROCERY-ANCHORED CENTER

Carrollto

n Blvd.

Rockfi

sh Way

Smith’s Neck Rd.

12,000CARS PER DAY

29,000CARS PER DAY

THE NEST ON 17(208 APARTMENT UNITS)

BRIDGE AT EAGLE HARBOR(150 HOMES)

EAGLE HARBORGROCERY-ANCHORED CENTER

26,000CARS PER DAY

29,000CARS PER DAY

Smithfield High School

Sentara St. Luke’s

Smith’s Neck Rd. / State Highway 669

U.S. Highway 17 & 258/ State Highway 32

12,000CARS PER DAY

CARROLLT

ON BLVD. - 2

9,000 VPD

SMITH’S NECK RD - 12,000 VPDROCKFISH WAY

FIDLER LANE

(DRIVE-THRU LANE)

MONUMENT SIGNAGE

THE NEST

ON 17

(208 AP

ARTMENT U

NITS)

CARROLLTON

2018 ESTIMATED POPULATION1 Mile ........................................................... 3,280 3 Mile ........................................................... 8,7955 Mile ......................................................... 19,823

2018 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$95,977 3 Mile ........................................................$97,9305 Mile ......................................................$103,639

2018 ESTIMATED TOTAL EMPLOYEES1 Mile .............................................................. 4573 Mile ........................................................... 1,2305 Mile ........................................................... 3,954

14 | AREA OVERVIEW | SRS NATIONAL NET LEASE GROUP .

AREA OVERVIEWCarrollton, VirginiaCarrollton is a census-designated place (CDP) in Isle of Wight County, Virginia, United States. The population as of July 1, 2018 was 6,220.

Carrollton is located near the southern end of the James River Bridge across from Newport News. Carrollton has recently experienced growth as a bedroom community.

Isle of Wight County is a county located in the Hampton Roads region of the U.S. state of Virginia. It was named after the Isle of Wight, in the English Channel, from where many of its early colonists had come. As of July 1, 2017, the population was 36,552. Its county seat is Isle of Wight.

Isle of Wight County is located in the Virginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area. Its northeastern boundary is on the coast of Hampton Roads waterway.

Isle of Wight County features two incorporated towns, Smithfield and Windsor. The first courthouse for the county was built in Smithfield in 1750. The original courthouse and its associated tavern (The Smithfield Inn) are still standing.

As the county population developed, leaders thought they needed a county seat near the center of the area. They built a new courthouse near the center of the county in 1800. The 1800 brick courthouse and its associated tavern (Boykin’s Tavern) are still standing, as are the 1822 clerk’s offices nearby. Some additions have been made. The 1800 courthouse is used daily, serving as the government chambers for the Board of Supervisors, as well as the meeting hall for the School Board. The chambers are sometimes used as a court for civil trials if the new courthouse is fully in use. The new courthouse opened in 2010; it is across the street from the sheriff’s office and county offices complex.

15 | AREA DEMOGRAPHICS | SRS NATIONAL NET LEASE GROUP .

AREA DEMOGRAPHICSDEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2018 Estimated Population 3,280 8,795 19,8232023 Projected Population 3,709 9,670 21,1772010 Census Population 1,833 7,191 17,757Projected Annual Growth 2018 to 2023 2.49% 1.92% 1.33%Historical Annual Growth 2010 to 2018 7.31% 2.47% 1.34%

2018 Estimated Households 1,440 3,458 7,6602023 Projected Households 1,628 3,811 8,1832010 Census Households 823 2,810 6,863Projected Annual Growth 2018 to 2023 2.48% 1.96% 1.33%Historical Annual Growth 2010 to 2018 7.02% 2.55% 1.34%

2018 Estimated White 77.25% 77.75% 79.05%2018 Estimated Black or African American 16.77% 16.44% 15.63%2018 Estimated Asian or Pacific Islander 1.86% 1.83% 1.73%2018 Estimated American Indian or Native Alaskan 0.55% 0.61% 0.44%2018 Estimated Other Races 1.07% 1.00% 0.82%2018 Estimated Hispanic 4.30% 4.32% 4.26%

2018 Estimated Average Household Income $95,977 $97,930 $103,6392018 Estimated Median Household Income $74,270 $82,428 $85,7912018 Estimated Per Capita Income $39,274 $38,656 $40,237

2018 Estimated Total Businesses 76 201 5352018 Estimated Total Employees 457 1,230 3,954

RENT ROLL

16 | RENT ROLL | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

LEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONSRite Aid 11,187 Jan-2017 Jan-2037 Current - $24,513 $2.19 $294,152 $26.29 Absolute NNN 6 (5-Year)

(Corporate Guaranty) Jan-2027 5% $25,738 $2.30 $308,859 $27.61 7.50% increases

every 10-years

FINANCIAL INFORMATION PROPERTY SPECIFICATIONS

Price: ..................................................................................................................................$4,706,000Net Operating Income: ..........................................................................................................$294,152Cap Rate: ....................................................................................................................................6.25%Lease Type:.................................................................................................................... Absolute NNN

Year Built: .....................................................................................................................................2017Rentable Area: ...................................................................................................................... 11,187 SFLand Area: ........................................................................................................................... 2.74 AcresAddress: ..................................................................13554 Carrollton Boulevard, Carrollton, VA 23314

For financing options and loan quotes, please contact our SRS Debt & Equity team at debtequity-npb@srsre.com.

ASSUMABLE DEBT (PROPERTY CAN BE PURCHASED FREE AND CLEAR OF DEBT)

Down Payment (At Asking Price): ........................................................................................$1,556,000Loan Amount (Aug-18): ......................................................................................................$3,150,000Debt Service (Annual): ...........................................................................................................$239,141Term:...................................................................................................................................... 20 YearsMaturity Date: ............................................................................................ Jan-2037 (runs with lease)Interest Rate: .................................................................................................................... 4.50% Fixed

17 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP .

BRAND PROFILE

ACTUAL SITE

RITE AIDRite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through Retail Pharmacy and Pharmacy Services segments. The Retail Pharmacy segment sells prescription drugs; and a range of other merchandise, such as over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other everyday and convenience products. The company operated 2,500 stores in 19 states of the United States and in the District of Columbia. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

Company Type: ............................................................ Public ( NYSE: RAD)2018 Employees: ............................................................................. 36,0202018 Revenue: ......................................................................$21.53 Billion2018 Net income: ...............................................................$943.47 Million2018 Assets: ............................................................................$8.99 Billion2018 Equity: ...........................................................................$1.60 MillionCredit Rating: .................................................................................... S&P: B

1000+PROPERTIES CURRENTLY

REPRESENTED

$2.6B*TRANSACTION VALUE

600+CLIENTS REPRESENTED

IN 2016

250+BROKERS,

PROFESSIONALS,AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

20+OFFICES

*STATISTICS ARE FOR 2017.

SRS GLOBAL STATS

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

ACTUAL SITE