Representative Photo or Actual Site

OFFERING MEMORANDUM

Jonathan W Hipp, President & CEO703.787.4725 | jhipp@calkain.com

GROUND LEASE NNN ROYAL FARMS Elkridge (Jessup), MD

Under Construction

Asset Summary

Net Operating Income (NOI) $210,000

Rent/Month $17,500

Rent/SF $71.43

Rentable Square Feet 2,940+/- SF

Land Area 1.75+/- Acres

Tenant Royal Farms

Website royalfarms.com

Guarantor Corporate

Ownership Type Ground Lease/Fee Simple

Lease Type NNN

Landlord Responsibilities None

Store Opening July 1, 2019

Lease Term Remaining 20 Years

Rent Commencement July 1, 2019

Lease Expiration July 1, 2039

Increases 10% Every 5 Years Including Options

Options Four (4), Five (5) Year

Investment Highlights

• Brand new construction

• 1,057 new apartment units being developed across the street at Ryan Homes at Howard Square

• Long 20-year lease term with four, 5-year options to renew

• 10% increases every 5 years including options

• Signalized hard corner intersection

• Frontage along busy US Route 1 (30,000 VPD), adjacent to a new CVS

• 8 miles from Columbia, MD

• Rapidly growing affluent population (183,347 people within 5 mile radius)

Rent ScheduleTerm Increases Annual Rent Monthly Rent

Years 1-5 - $210,000.00 $17,500.00

Years 6-10 10% $231,000.00 $19,250.00

Years 11-15 10% $254,100.00 $21,175.00

Years 16-20 10% $279,510.00 $23,292.50

Years 21-25 (Option 1) 10% $307,461.00 $25,621.75

Years 26-30 (Option 2) 10% $338,207.10 $28,183.93

Years 31-35 (Option 3) 10% $372,027.81 $31,002.32

Years 36-40 (Option 4) 10% $409,230.59 $34,102.55

7136 Montevideo RdElkridge, MD 21075

Asking Price$4,285,714

Cap Rate 4.90%

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Royal Farm | Financial Summary

About Royal FarmsRoyal Farms opened its first store in 1959 in Baltimore, which remains the company’s headquarters. As of November 2018, Royal Farms has 205 locations throughout the Mid-Atlantic states. More than 100 are in the home state of Maryland. The chain sells many typical, convenience store items such as coffee, candy, soft drinks, bagels and donuts, lotto tickets, and other basic groceries. All locations also offer a kitchen serving hot food items such as chicken, Western Fries, along with sandwiches. Their current slogan is “Real Fresh. Real Fast. Real Green.” Royal Farms’ major competitors include Wawa, Sheetz, Rutter’s, High’s, and 7-Eleven.

Since 1959, they’ve been satisfying the Mid-Atlantic area’s hunger for real fresh food served real fast! Royal Farms is your go-to place day or night for breakfast, lunch, snacks, dinner, gasoline and diesel fuel, and all the things you need!

Tenant SnapshotTenant Snapshot

# of Locations

205

Founded

1959

# of Employees

1,000

Region

Mid-Atlantic

Headquarters

Baltimore, MD

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Tenant Overview

95

270

95

97

895Baltimore, MD

14 miles

Columbia, MD8 miles

Gaithersburg, MD

32 miles

Jessup, MD2 miles

Bethesda, MD

25 miles

Washington, DC28 miles

Subject Site

Columbia, MD

Gaithersburg, MD Jessup, MD

Baltimore, MD

Washington, DC

Alexandria, VA

Bethesda, MDDulles, VA

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Location Overview

Distance To

Washingto

n Blvd 30

,000 V

PD

197,00

0 VPD

Troy Hill Business Park

1

Columbia East Marketplace

Columbia CrossingDobbin Center

Snowden Square

Arundel Mills

Gateway Outlook

Keep all map content (except background) above this margin for website cropping purposes

7136 Montevideo Rd | Elkridge, MD 21075

Subject Site

95

Subject Site

Dorset Gardens at Blue Stream

Luxury Garage TownhomesModel Home

InteriorsAlarm Line Mr

Tire HQ

Maryland StatePolice

Howard County Department of

Corrections

Soccer Dome

Elite Spice

Village Towns

Chateau Communities

Washington Blvd 30,000 VPD

Port Capital Dr

Montevideo Rd

1

1

Columbia East Marketplace

1057 Apartment Units

Keep all map content (except background) above this margin for website cropping purposes

7136 Montevideo Rd | Elkridge, MD 21075

Subject Site

Location Highlights

Signalized Corner Location

30,000 VPD Pass the Site

Brand New Construction

Washington Blvd 30,000 VPD

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Site Plan

Surrounding Retail

Calkain Companies | 8

Calkain Companies | 9

Site Rendering

Jessup

Elkridge

1 Mile 3 Miles 5 MilesPopulation2018 Population 9,449 62,493 183,347

2023 Population 11,271 69,326 198,798

2018 Median Age 32.7 36.2 36.2

Households2018 Total Households 3,087 21,449 65,052

2023 Total Households 3,663 23,832 70,415

Median Household Income2018 Median HH Income $107,222 $105,448 $104,117

2023 Median HH Income $120,627 $114,524 $113,061

Average Household Income2018 Average HH Income $129,492 $123,103 $123,471

2023 Average HH Income $153,825 $141,777 $141,739

Location Overview, 1/3/5 Miles

95

95

1 Mile

3 Mile

5 Mile

Jessup, MDJessup is an unincorporated town and census-designated place in Howard County, Maryland and Anne Arundel County, Maryland. Jessup’s population is 8,392 people. Since 2000, it has had a population growth of 6.70%.

Jessup is a town of sales and office workers, managers and professionals. There are especially a lot of people living in Jessup who work in sales jobs (20.91%), business and financial occupations (12.80%) and office and administrative support (10.65%).

Also of interest is that Jessup has more people living here who work in computers and math than 95% of the places in the US.

Jessup contains many warehouse delivery facilities. Due to its geographically central location in the state, Jessup is also home to the Maryland Food Center, which includes the Maryland Produce Market and the Maryland Seafood Market.

The major highways that run through Jessup are Interstate 95, U.S. Route 1 and Maryland Route 175. Exit 41 off I-95 provides access via MD 175 east.

Calkain Companies | 10

About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.

Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.

At Calkain, our foresight and innovation are leading the net lease investment industry.

To learn more about how to build a solid foundation for your investment portfolio, visit calkain.com or call us at:

Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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