5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

Walgreens

ACTUAL PROPERTY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

Investment Overv iew

• Walgreens in Jacksonville | Most Populated City in Florida | Largest City by Contiguous Area in the United States

• Lease is Guaranteed by The Walgreen Company (NYSE: WBA) | BBB Credit (S&P) | #19 Fortune 500 (June 2016)

• Tenant Demonstrates Strong Commitment to Location | Recently Extended Lease Five Years

• Below Market Rent | Above Average Unit-Level Store Sales

• Two Miles From UF Health Jacksonville Hospital | 695-Bed Facility

• Directly in Front of Gateway Hub Bus Stop | 400,000 Riders Annually | Adjacent to Inter-state-95 | Situated on Signalized, Hard Corner

• Adjacent to The Gateway Town Center | 576,000-Square Foot Center | Anchored by Publix Supermarket

• Major Redevelopment Project Planned Behind Subject Property | 1,000 Multi-Family Rental Units

Marcus & Millichap is pleased to present this 14,000-square foot Walgreens in Jacksonville – the most populated city in Florida and the largest city by contiguous area in the United States. Located less than one mile from Interstate-95, this Walgreens is strategically located on a signalized, hard-corner inter-section with multiple points of ingress and egress. The subject property is less than two miles from UF Health Jacksonville Hospital, a 695-bed facility and the largest University of Florida campus outside of Gainesville. Additionally, directly in front of the asset is the Gateway Hub Bus Stop, one of Jacksonville’s busiest bus stops with over 400,000 riders annually.

Walgreens has been operating at this location since 1996, and recently demonstrated their commitment by exercising their first five-year renewal option, which commenced on December 1, 2016. This double net (NN) lease has five, five-year options remaining, and is guaranteed by The Walgreen Company, (S&P: BBB credit), the nation’s largest drugstore chain that ranks #19 in the Fortune 500 (2016). In 2015, the company did $103.4 billion in sales across 8,200 locations. The tenant reports above aver-age unit-level sales at this location. Additionally, Walgreens is paying below market rent at $10.30 per square foot, providing additional security should Walgreens not exercise remaining renewal options.

The Gateway Town Center, a 576,000-square foot retail center, is directly adjacent to the subject prop-erty. This retail center is anchored by a high performing Publix Supermarket. Other national retailers in the vicinity include Family Dollar, McDonald’s, Foot Locker, Firestone Auto Care, Subway, and Wendy’s. Directly behind the subject property is a 3.97-acre parcel of vacant land and a vacant 176,000-square-foot enclosed mall that is being converted to 1,000 multi-family rental units.

Actual Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

PRICE $2,325,000

CAP RATE 6.20%

NOI $144,200

PRICE PER SQUARE FOOT $166.07

RENT PER SQUARE FOOT $10.30

YEAR BUILT 1996

LOT SIZE 1.45 Acres

GROSS LEASEABLE AREA 14,000 Square Feet

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guarantee

LEASE TYPE Double-Net (NN)

ROOF AND STRUCTURE Landlord Responsible

LEASE COMMENCEMENT DATE November 18, 1996

LEASE EXPIRATION DATE November 30, 2021

LEASE TERM 20 Years

TERM REMAINING 5 Years

INCREASES Flat

OPTIONS TO RENEW 5, 5-Year Options

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL Yes

Financia l Overv iew

Offer ing Summary

Lease Summary

Actual Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

Tenant Overview - Walgreens

Founded in 1901, Walgreens Boots Alliance, Incorporated is the nation’s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug prod-ucts. By 1919 there were 20 stores, and in 1927 the Company went public. Three years later, the store count was well over 500. Today, Walgreens operates over 8,200 stores in all 50 states, DC, Puer-to Rico and the U.S. Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

In December 2014, Walgreen acquired the remaining 55 percent of European retailer and wholesal-er Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Inc., headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Incorporated.

In October 2015, Walgreens Boots Alliance announced an agreement to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of about $17.20 billion, including ac-quired net debt. The transaction is expected to close in the second half of calendar 2016. Upon com-pletion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integra-tion of the two companies. Once the acquisition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to bet-ter meet consumer needs.

TENANT TRADE NAME WalgreensOWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 8,200+

HEADQUARTERED Deerfield, IL

WEB SITE www.walgreens.com

SALES VOLUME $103.4 Billion (2015)

NET WORTH $31.3 Billion (2015)

STOCK SYMBOL WBA

BOARD NYSE

CREDIT RATING BBB

RATING AGENCY S&P

RANK #19 in Fortune 500 (June 2016)

TENANT PROFILE

Actual Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

Aer ia l Overv iew

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PROPERTY ADDRESS

5108 Norwood AveJacksonville, FL 32208

BrentwoodGolf Course

Stanton College Prep School

Darnell Cookman Middle/High School

UF Health Jacksonville 695 Bed Hospital

Redevelopment Site - 1,000 Multifamily

Units

Walgreens

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

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Jacksonville

Area Overview & Demographics

1 Mile 3 Mile 5 Mile

P o p u l a t i o n

2000 Population 12,203 82,035 182,627

2010 Population 10,762 73,989 171,078

2016 Population 10,943 80,010 182,460

2021 Population 11,335 83,714 190,559

1 Mile 3 Mile 5 Mile

H o u s e h o l d s

2000 Households 4,820 31,357 70,917

2010 Households 4,439 28,268 67,990

2016 Households 4,503 30,673 72,493

2021 Households 4,661 32,158 75,765

1 Mile 3 Mile 5 Mile

H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $32,722 $35,175 $42,516

2016 Median HH Income $22,815 $24,955 $29,828

2016 Per Capita Income $13,465 $13,485 $16,892

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255

5108 Norwood Avenue - JACKSONVILLE, FLORIDA 32208

Introduction to Jacksonville, FloridaJacksonville, located in the northeast corner of Florida, is the state’s most populated city and the nation’s largest city by contiguous area. Named after Andrew Jackson, the city was settled in 1816 and incorporated in 1832. De-stroyed during the Civil war, Jacksonville was rebuilt, becoming a major indus-trial city and a transportation hub. Three US Navy installations are in the area. Today, Jacksonville is a growing city of around 750,000, with a young popula-tion and a strong economy that is diversified among technical, manufacturing and service industries.

Jacksonville CultureIn addition to warm weather and sunshine, the Jacksonville area offers many recreational events and cultural opportunities. Jacksonville’s beach communi-ties consist of Atlantic Beach, Neptune Beach and Jacksonville Beach along 50 miles of shoreline, offering sport fishing, boating and water sport activities. The area is home to the Professional Golfers Association, the World Golf Vil-lage and the World Golf Hall of Fame. The Association of Tennis Professionals is also based in the area. Sports teams include the Jacksonville Suns, a minor league baseball team, and the Jacksonville Jaguars of the NFL. EverBank Field hosts the TaxSlayer.com Gator Bowl, and the annual matchup between Florida and Georgia. Cultural opportunities include the Museum of Science & History, Cummer Museum of Art, Mandarin Museum & Historical Society and the Museum of Contemporary Art Jacksonville. The symphony, theater, ballet and arts festivals, such as the Annual Jazz Festival, anchor a packed social and cultural calendar. Other sites of interest include the Jacksonville Zoo and the Jacksonville Landings, a mix of retail and restaurants along the St. Johns River.

Economy Once rooted in its military bases, the commercial port and paper mills, the Jacksonville economy has begun to diversify. The metro is home to three For-tune 500 companies: Fidelity National Information Services, Fidelity National Financial and CSX. The city has developed a large financial services sector, led by Bank of America, Fidelity National and Citibank. The professional and business services sector has also risen in importance, accounting for 16 per-cent of total employment. In addition, Jacksonville has an emerging industrial base in medical products research and manufacturing. JAXPORT provides a $26.9 billion annual economic impact to the Jacksonville metro. More than 8 million tons of cargo pass through the port each year and the development of cruise ship service will promote further expansion. Facilities at the port are being expanded to handle the larger ships that will pass through the widened Panama Canal. The military remains a large part of the economy, with two naval facilities and more than 25,000 people employed locally. Many of the naval personnel who retire from the military stay in the area because of its affordable housing.

Market Overview - Jacksonvi l le, Florida

Top 10 Employers 1. Jacksonville Naval Air Station2. Mayo Clinic3. Mayport Naval Station4. Blue Cross Blue Shield of Florida5. CSX6. Baptist Health System7. Citibank8. Fidelity National Financial9. Winn-Dixie10. Bank of America Corp.

Photo: James Willamor; CC BY-SA 2.0

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID - Y0330255