RITE AID - RELOCATION STORECORONA, CALIFORNIA (INLAND EMPIRE)

OFFERING MEMORANDUM

Cushman and Wakefield Inc. LIC. # 00616335 ACTUAL SITE

$ 9 , 7 0 0 , 0 0 0 | 5 . 0 0 % C A P R AT E» National Tenant with Strong Brand Recognition » Over 4,600 Locations Nationwide » No Landlord Obligations» High-Traffic Location at Signalized Hard Corner » Excellent Visibility and Access to 25,968 Vehicles Per Day » Close Proximity to Several Major Freeways» Prime Inland Empire Location with Strong Demographics » Southern California’s Fastest Growing Region » Large Population of 189,221 Within a Five-Mile Radius » Affluent Area, with Average Household Income of $105,751

Within a One-Mile Radius

Cushman & Wakefield (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.

DISCLAIMER

INVESTMENT OVERVIEW

AERIALS

SITE PLAN

TENANT SUMMARY

PROPERTY OVERVIEW

AREA OVERVIEW

LOCATION MAP

TABLE OF CONTENTS

MICHAEL T. YURAS, CCIMExecutive Managing Director 415.481.0788michael.yuras@cushwake.comCA RE License #01823291

SCOTT CROWLESenior Director 415.604.4288scott.crowle@cushwake.comCA RE License #01318288 www.YAFteam.com

INVESTMENT SUMMARYABSOLUTE NNN LEASE TO STRONG NATIONAL TENANT» Absolute NNN lease with tenant responsible for all property-related expenses and

maintenance, requiring no landlord management» Rite Aid operates over 4,600 locations nationwide

» Largest drugstore chain on the East Coast and third largest in the U.S.

CORPORATE GUARANTEED LEASE WITH SCHEDULED RENTAL INCREASES» Guaranteed by Rite Aid Corporation» 8.25% rental increase in Year 11 and 10% rental increases every 10 years

thereafter

» Fair market value rental increases in fifth and sixth option periods

CENTRAL INLAND EMPIRE LOCATION WITH STRONG DEMOGRAPHICS» 189,221 people live within a five-mile radius, providing a large customer base for

Rite Aid

» Close proximity to multiple major retail centers, including Corona Hills Plaza, featuring 50 stores and services

» Average household income is $105,751 within a one-mile radius of the site

LATEST RITE AID PROTOTYPE WITH DUAL PRESCRIPTION DRIVE-THRU» Built to Tenant’s exact specifications and features the latest Rite Aid store design

» Two prescription drive-thru lanes, providing unparalleled customer convenience

ADDRESS Ontario Avenue & Buena Vista Avenue, Corona, CAPRICE $9,700,000CAP RATE 5.00% returnNOI $485,000TERM 20 yearsRENT COMMENCEMENT March 23rd, 2017LEASE EXPIRATION March 22nd, 2037

RENTAL INCREASES

8.25% rental increase in Year 11 and 10% rental increases every 10 years thereafterYEAR1-1011-2021-25 (Option 1)26-30 (Option 2)31-35 (Option 3)36-40 (Option 4)41-45 (Option 5)46-50 (Option 6)

RENT$485,000$525,000$577,500$577,500$635,250$635,250FMV (Deemed 110% of Option 4)FMV (Deemed 110% of Option 4)

RETURN5.00%5.41%5.95%5.95%6.55%6.55%TBDTBD

YEAR BUILT 2017BUILDING SF 15,341 SF PARCEL SIZE 1.76 acres (76,575 SF)LEASE TYPE Absolute NNN

ACTUAL SITE

Buen

a Vi

sta

Aven

ue

West Ontario Avenue (21,898 AADT)

Buena Vista Park

Foothill Elementary (1,002 students)

Eisenhower Elementary(902 students)

West O

ntario Avenue (21,898 AA

DT)

Buena Vista Avenue

OntarioPark

John Adams Elementary (789 students)

Vicentia Elementary(673 students)

Wes

t Onta

rio A

venue (

21,8

98 AADT)

Santana Regional

Park

Lee Pollard High School

(816 students)

INDUSTRIAL PARKINDUSTRIAL PARK

Vulcan Materials Company and All American Asphalt have a over 1,000 employees combined

Centennial High School

(3,225 students)

Temscal Village Plaza Shopping Center

INDUSTRIAL PARK

Buena Vista Avenue

West Ontario Avenue (21,898 AADT)

Buena Vista Avenue

Vicentia Elementary (673 students)

Letha Raney Intermediate School

(838 students)

Jefferson Elementary(768 students)

Norco College(10,000+ students)

/ Highway 91 (255,000 AADT)

RIVERSIDE(16 miles)

INDUSTRIAL PARK

DRIVE-THRU

DRIVE-THRU

DRIVE-THRU

DRIVE-THRU

STOP

±15,341 SF

MONUMENT SIGNMONUMENT

SIGN

B U E N A V I S T A A V E N U E

ON

TA

RIO

AV

EN

UE

(2

1,8

98

AA

DT

)

SITE PLAN

TENANT SUMMARY LEASE ABSTRACTTENANT Thrifty Payless Inc.

GUARANTOR Rite Aid Corporation

ADDRESS Ontario Avenue & Buena Vista Avenue, Corona, California

RENT COMMENCEMENT March 23rd, 2017

LEASE EXPIRATION March 22nd, 2037

RENEWAL OPTIONS Six (6) five (5) year options

RENTAL INCREASES

YEAR1-1011-2021-25 (Option 1)26-30 (Option 2)31-35 (Option 3)36-40 (Option 4)41-45 (Option 5)46-50 (Option 6)

RENT$485,000$525,000$577,500$577,500$635,250$635,250FMV (Deemed 110% of Option 4)FMV (Deemed 110% of Option 4)

RETURN5.00%5.41%5.95%5.95%6.55%6.55%TBDTBD

COMMON AREA COSTS Tenant is responsible for all common area costs.

REAL ESTATE TAXES Tenant is responsible for all real estate taxes.

INSURANCE Tenant is responsible for all insurance.

REPAIR & MAINTENANCE Tenant is responsible for all maintenance and repair.

UTILITIES Tenant is responsible for all utilities.

MAINTENANCE BY LANDLORD None

RIGHT OF FIRST REFUSAL None

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company sells prescription drugs and a range of other merchandise, including 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. It also offers health coaching, shared decision making tools, and healthcare analytics, including health coaching for medical decisions, chronic conditions, and wellness; population analytic solutions; and consulting services, as well as various photo processing services in its stores. Rite Aid offers its healthcare products to customers covered by third party payers, such as insurance companies, prescription benefit management companies, government agencies, private employers, and other managed care providers. It has a strategic alliance with GNC. Rite Aid is the largest drugstore chain on the East Coast and the third largest in the United States, with nearly 89,000 employees. The company operates approximately 4,600 stores in 31 states across the U.S. and in the District of Columbia.

On October 27, 2015, Walgreens announced that it would acquire Rite Aid for $9.4 billion to widen its footprint in the United States and negotiate for lower drug costs. The acquisition proposal is currently pending regulatory and shareholder approval. The deal will result in a merger of two of the United States’ three largest pharmacy chains and will increase Walgreens’ footprint by half. Together, Walgreens and Rite Aid own approximately 200 million square feet of retail space, which equates to nearly 12,900 stores. Walgreens’ CEO has stated that there is potentially over $1 billion in savings to be reaped from the merger through synergies.

For the fiscal year ending February 27th, 2016, Rite Aid Corporation reported revenue of $30.74 billion, with net income of $165.5 million, and total stockholder equity of $581.4 million. Rite Aid is rated “B” by Standard & Poor’s.

For additional information, please visit www.riteaid.com.

TICKER NYSE: “RAD” # OF LOCATIONS 4,600+REVENUE $30.74B HEADQUARTERS Camp Hill, PA

PROPERTY OVERVIEWLOCATIONThe property is strategically located at the signalized hard corner of West Ontario Avenue and South Buena Vista Avenue, with excellent visibility and access to 25,968 vehicles per day. West Ontario Avenue provides convenient access to Highway 91, a major freeway serving several regions of the Greater Los Angeles area, which has an extremely high traffic count of 255,000 vehicles per day. Several shopping centers are located within walking distance of the property, including Corona Town & Country, anchored by Sprouts Farmers Market, and Corona Village, anchored by Vons. Other major retail plazas in the nearby area include Corona Hills Plaza, featuring over 50 stores and services, and Crossings at Corona, which has nearly one million square feet of retail space.

The property benefits from its prime location in an affluent, densely populated area. The property is surrounded by residential neighborhoods and several elementary, intermediate, and high schools. The average household income exceeds $105,000 within a one-mile radius of the site, with average incomes exceeding $90,000 within three- and five-mile radii. Additionally, 189,221 people live and 93,309 daytime employees work within a five-mile radius of the property, providing a strong customer base for Rite Aid.

ACCESSAccess from Buena Vista Avenue and Ontario Avenue

TRAFFIC COUNTSOntario Avenue: 21,898 AADTBuena Vista Avenue: 5,525 AADTHighway 91: 255,000 AADT

PARKING65 parking stalls, including four (4) handicap stalls

YEAR BUILT2017

NEAREST AIRPORTOntario International Airport (ONT)

FILE PHOTO

2017YEAR BUILT

21KTRAFFIC

COUNT (AADT)

NEARESTAIRPORT

ONTARIO INTERNATIONAL

AIRPORT

65PARKING STALLS

AREA OVERVIEWCorona, population 164,226, is located approximately 45 miles southeast of Los Angeles in western Riverside County. Corona is at the hub of growth within the Southern California region and has been called the Gateway to the Inland Empire. High real estate prices in Los Angeles and Orange counties made Corona's land desirable to developers and industrialists, and by the late 1990s Corona was considered a major suburb of Los Angeles. Corona has become a bedroom community for Orange County, Los Angeles, and the larger cities of the Inland Empire, while also becoming a strong industrial hub in its own right. Corona is home to the headquarters to a wide array of corporations and entrepreneurial operations, and it benefits from large industrial bases in the aeronautics, aftermarket auto, food processing, research and development, medical, and technology industries. Corona has more than 34 million square feet of industrial space and more than 3 million square feet of office space existing, under construction, or planned. The development of commerce and industry in the city has been accelerated by access to the area via Interstate 15, Highway 91, and Highway 71, making it the prime recipient of outward migration of companies from Orange and Los Angeles counties.

Riverside County has a population of 2,361,026, making it the fourth most populous county in California and the 11th most populous in the United States. Riverside County is included in the Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area, also known as the Inland Empire. The Inland Empire has a population of approximately 4.5 million. Most of the area's population is located in southwestern San Bernardino County and northwestern Riverside County, where Corona is located. Since the 1970s, a rapidly growing population, fed by families migrating in search of affordable housing, has led to large amounts of residential, industrial, and commercial development. San Bernardino and Riverside counties are primarily hosts to service and manufacturing- or warehousing-oriented industries. The area’s transport network, where many highways and railroads intersect, has made the Inland Empire a major shipping hub. Some of the nation's largest manufacturing companies have chosen the Inland Empire for their distribution facilities, and more than 80% of California’s imported cargo is shipped through the Los Angeles/Inland Empire Corridor.

» The Inland Empire has close to 4.5 million residents, making it more populous than almost half the states in the country, and federal estimates suggest the area will add more than 300,000 people every five years between 2014 and 2040.

» In 2014, Inland Empire jobs increased 2.7%, a faster rate than any part of California except the Bay Area. Jobs increased at more than double the rate of Los Angeles County and nearly triple the pace of Orange County. Reports predict the Inland Empire will add jobs at an even faster clip — about 3.4% annually — over the next five years.

» The region ranked 24th among metropolitan areas in economic output in 2013, with a higher gross domestic product than cities such as Cleveland, Kansas City, and Cincinnati.

MAJOR EMPLOYERS IN INLAND EMPIRE # OF EMPLOYEES

COUNTY OF RIVERSIDE 18,291

STATER BROS. MARKETS 18,000

ARROWHEAD REGIONAL MEDICAL CENTER 18,000

COUNTY OF SAN BERNARDINO 17,395

NATIONAL TRAINING CENTER, FORT IRWIN 13,805

U.S. MARINE CORPS AIR 12,486

ABBOTT VASCULAR 12,000

MARCH AIR RESERVE BASE 8,750

SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT 8,740

ONTARIO INTERNATIONAL AIRPORT 7,510

DEMOGRAPHIC PROFILE

AVERAGE HOUSEHOLD INCOME OF $105,751WITHIN ONE MILE

POPULATION OF 189,221WITHIN FIVE MILES

2016 SUMMARY 1 Mile 3 Miles 5 Miles

Population 22,016 116,466 189,221

Households 6,130 33,582 53,390

Families 5,189 27,019 43,249

Average Household Size 3.57 3.45 3.46

Owner Occupied Housing Units 4,821 21,373 35,673

Renter Occupied Housing Units 1,309 12,209 17,717

Median Age 35.1 32.9 33.7

Average Household Income $105,751 $91,782 $95,338

2021 ESTIMATE 1 Mile 3 Miles 5 Miles

Population 22,791 121,542 196,818

Households 6,307 34,843 55,263

Families 5,339 28,006 44,725

Average Household Size 3.59 3.48 3.48

Owner Occupied Housing Units 4,935 22,008 36,581

Renter Occupied Housing Units 1,372 12,835 18,683

Median Age 36.6 34.3 35.1

Average Household Income $115,430 $98,979 $102,690

Cushman and Wakefield Inc. LIC. # 00616335

MICHAEL T. YURAS, CCIMExecutive Managing Director 415.481.0788michael.yuras@cushwake.comCA RE License #01823291

SCOTT CROWLESenior Director 415.604.4288scott.crowle@cushwake.comCA RE License #01318288 www.YAFteam.com