)

ABSOLUTE NNN W/ RARE 10% INCREASES (NEW YORK CITY METRO)

OFFERING MEMORANDUM • WALGREENS

Actual Subject Photo 1561 John F. Kennedy Boulevard, Jersey City, NJ 07305

GOOGLE EARTH

MANHATTANPOPULATION: 1,643,734

KENNEDY GAS STATION

SEAVIEW AVENUE

COLUMBIA PARK

PARKSIDE AT COUNTRY VILLAGE RESIDENTIAL DEVELOPMENT

4 BLOCKS | 150 UNITS

*Borders Are Approximate

2017 5-MILE POPULATION

OVER 500,000

NEW YORK CITY METRO20.3 MILLION RESIDENTS

JOHN F. KENNEDY BLVD.20,000 VPD (2016)

BROOKLYNPOPULATION: 2,629,150

QUEENSPOPULATION: 2,333,054

BRONXPOPULATION: 1,455,720

SUBJECT: WALGREENS

DRONEFOOTAGE

KENNEDY GAS STATION

NEW JERSEY TURNPIKE/I-78 - 70,000+ VPD (2016)

HISTORIC LEHIGH VALLEY RAILROAD LIFT BRIDGE

PORT NEWARK

*Borders Are Approximate

PARKSIDE AT COUNTRY VILLAGE RESIDENTIAL DEVELOPMENT

4 BLOCKS | 150 UNITS

SEAVIEW

AVENUE

2017 5-MILE AVG HH INCOME

OVER $98,000

DRONEFOOTAGE

JOHN F. KENNEDY BLVD.

20,000+ VPD (2016)

SUBJECT: WALGREENS

GATES AVENUE

ADDRESS1561 JOHN F. KENNEDY BLVD

JERSEY CITY, NJ 07305

PRICE$7,290,000

NOI$378,000 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACTIVITY ID: Z0331856

VITAL DATA

Price $7,290,000

Cap Rate (Year 1) 5.19%

Gross Leasable Area 15,120 Sq. Ft.+/-

Year Built 2001

Lot Size 1.46 Acres +/-

LEASE SUMMARY

Lease Type Absolute NNN

Roof & Structure Tenant Responsible

Lease Term 60 Years

Rent Commencement 12/7/2001

Lease Expiration 12/31/2061

Option to Terminate Yes, the Tenant shall have the right and option at the end of the 25th year, and every 5 years thereafter for 55 years

Rental Increases Yes, 10.0% in Year 21, 31, 41, and 51

Right of First Refusal Yes, Tenant has 10 days to respond

RENT SCHEDULE

Term Rent/Sq. Ft.. Monthly Rent Annual Rent Cap Rate

Years 1-20 $25.00 $31,500.00 $378,000 5.19%

Years 21-30 $27.50 $34,650.00 $415,800 5.70%

Years 31-40 $30.25 $38,115.00 $457,380 6.27%

Years 41-50 $33.27 $41,920.00 $503,040 6.90%

Years 51-60 $36.59 $46,103.25 $553,239 7.59%

*If 2.0% of Gross Sales (except food and prescription sales) plus 0.5% of Gross Food and Prescription Sales exceeds $ 396,900 during the lease year, then Tenant will pay excess amount as additional percentage rent. The total of fixed rent plus additional percentage rent shall not exceed $793,800.

RARE INCREASES IN LEASE10.0%

• Corporate Guarantee with Investment-Grade Tenant Walgreens Boots Alliance (NASDAQ: WBA), The Nations Largest Drugstore Chain (Moody’s: Baa2, S&P: BBB as of 2018)

• Prime 15,120-Square-Foot, Freestanding Location on a Signalized Intersection & Main Thoroughfare That Sees Approximately 20,000 VPD

• Over 8+ Years Firm Lease Term Remaining with the First 10% Rental Increase Taking Place in 2021

• Blended 8-Year Firm Cap Rate of 5.51%

• Trophy Infill Location Includes Rare 10 Percent Increases in Years 21, 31, 41, & 51

• Huge Sales Reported at Site of Approximately $4.5 Million +/-

• Limited Competition Nearby, Low Rent Relative to Sales Especially When Compared to Any Walgreens in the Nation, Region, etc.

• Robust Demographics with Over 230,000 Households within 5-Miles Earning Well Above the National Average Household Income of Nearly $100,000 Annually

• Subject Located Only Five Miles from Lower Manhattan (NYC), Liberty State Park, Liberty National Golf Course, National Monuments, Major Interstates, & More

• Daytime Population of Nearly 1,000,000 People within 5-Miles

• New York City Metro is Experiencing Booming Growth, with Over 588,000 Estimated People within Five Miles and 16 Percent Population Growth Since 2000

• Direct Access to Major Transportation Hubs Including: Newark Liberty International Airport, JFK Airport, LaGuardia Airport, NJ Path Train, Hudson Bergen Light Rail, NJ Transit Buses, NY Waterway Ferry, the NYC City Subway, Among Others

INVESTMENT HIGHLIGHTS DEMOGRAPHICS

MAJOR AREA EMPLOYERS

Population 1 Mile 3 Miles 5 Miles

2010 Population 46,110 178,643 552,479

2017 Population Estimate 48,409 189,751 588,207

2022 Population Projection 49,472 192,384 615,130

2017 Daytime Population 28,800 156,149 967,166

Households 1 Mile 3 Miles 5 Miles

2010 Households 17,152 64,926 216,195

2017 Households Estimate 18,039 69,433 232,112

2022 Households Projection 18,692 71,510 248,049

2017 Average HH Size 2.7 2.6 2.5

Income 1 Mile 3 Miles 5 Miles

Median HH Income $53,406 $48,355 $62,845

Per Capita Income $27,741 $26,073 $39,351

Average HH Income $74,226 $69,883 $98,593

Source: Marcus & Millichap Analytics, U.S. Census Bureau 201810

Source: “Major Employers List” www.hudsonedc.org (as of January 2017)

*Borders Are Approximate

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap ACTIVITY ID: Z0331856

SITE PLAN SEAVIEW AVENUE

WALGREENS

• 15,120 SQ. FT. +/- GLA• 1.46 ACRES +/- LAND• 50 SURFACE PARKING SPOTS• HANDSOME BRICK FACADE, WALKWAY & ROADSIDE SIGNAGE• TWO-LANE DRIVE-THROUGH • THREE POINTS OF INGRESS/EGRESS

GATES AVENUE

JOH

N F. K

ENN

EDY BLV

D - 20,000 V

PD (2018)

N

PYLON SIGN

2-LANE DRIVE THRU

SUBJECT PHOTOGRAPHSSUBJECT PHOTOGRAPHS

*Borders Are Approximate

NJ TURNPIKE/TOLL ROAD I-78 - 72,000 VPD (2016)

JOHN F KENNEDY BLVD - 20,000+ VPD (2016)

MERCER PARK MCDONALD’S

MCGOVERN PARK

HISTORIC LEHIGH VALLEY RAILROAD

LIFT BRIDGE

SUBJECT: WALGREENS

STEPHEN R. GREGG PARK

MARIST HIGH SCHOOLPRIVATE CATHOLIC

300+ STUDENTS

KENNEDY GAS STATION

N

2017 5-MILE NO. OF HOUSEHOLDS

OVER 230,000

PARKSIDE AT COUNTRY VILLAGE

RESIDENTIAL DEVELOPMENT• 4 BLOCKS• 150 UNITS• SINGLE, TWO-

FAMILY HOMES & CONDOMINIUMS

ALEXANDER SULLIVAN ELEMENTARY SCHOOL

800+ STUDENTS

BAYONNE

*Borders Are Approximate �� ������������������ ��� � �������������

����THE STATUE OF LIBERTY NATIONAL MONUMENT

ELLIS ISLAND

JERSEY CITY

LIBERTY STATE PARK

LIBERTY NATIONAL GOLF COURSE

GREENVILLE

PAULUS HOOK

NEWARK B

AYNEWPORT

JOHN F. KENNEDY BLVD.20,000 VPD (2016)

BAYONNE

HACKENSACK RIVER WATERFRONT

HACKENSACK RIV

ER

NEWARK LIBERTY INTERNATIONAL AIRPORT

5 MILES

SUBJECT: WALGREENS

LIBERTY INDUSTRIAL PARK

NEW JERSEY TURNPIKE72,000 VPD (2016)

MANHATTAN

5 MILES

GREENVILLE YARD

HISTORIC LEHIGH VALLEY RAILROAD

LIFT BRIDGE

2017 5-MILE DAYTIME POPULATION

NEARLY 1 MILLION

BERGEN/LAFAYETTE

6,600 UNDERGRADS2,000 POST GRADSPUBLIC COLLEGE

2,600 UNDERGRADS900 POST GRADSPRIVATE COLLEGE

TENANT OVERVIEW

Walgreens Boots Alliance, Inc. is an American holding company headquartered in Deerfield, Illinois that owns Walgreens, Boots and a number of pharmaceutical manufacturing, wholesale and distribution companies. The company was formed on December 31, 2014 after Walgreens purchased the 55% stake in Switzerland-based Alliance Boots that it did not already own. Under the terms of the merger, the new company was organized into three divisions: Retail Pharmacy USA (Walgreens), Retail Pharmacy International (Boots), and Pharmaceutical Wholesale, incorporating Alliance Healthcare.

The new holding company began trading on the NASDAQ on December 31, 2014. The combined business has operations in over 25 countries. Walgreens had formerly operated solely within the United States and its territories, while Alliance Boots operated a more international business. In April 2015, Walgreens Boots Alliance published their first post-merger update, reporting an overall rise in sales of 35%, to $26.6 billion, and a 33% rise in profits.

WALGREENS

Walgreens Boots Alliance, Inc., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy and health and wellness services throughout drugstores, as well as through mail, by telephone and online. The company sells prescription and non-prescription pharmaceuticals; and general merchandise, including convenience and fresh foods, household items, personal care and photofinishing and candy, and beauty care. It also provides specialty pharmacy services for managing complex and chronic health conditions; customers infusion therapy services consisting of administration of intravenous medications for cancer treatments, chronic pain, heart failure and other infections and disorders; and clinical services. In addition, the company manages 400 in-store convenient care clinics (Healthcare Clinics).

Company Name Walgreens Boots Alliance

Headquarters Deerfield, Illinois

Stock Symbol NASDAQ: WBA

Revenue $118.21 Billion

Net Income $4.08 Billion

Net Worth $30.8 Billion

Credit Rating BBB (Standard & Poor’s)

Locations 13,200

Employees 385,000

Website www.walgreensbootsalliance.com

WALGREENS BOOT ALL IANCE, INC.

NEWARK

20.3 MILLIONTOTAL NUMBER OF METRO RESIDENTS US CENSUS BUREAU, 2017

5 MILES NEWARK LIBERTY

INTERNATIONAL AIRPORT43,400,000 PASSENGERS

IN 2017

OVER 20FORTUNE 500 COMPANIES

HEADQUARTERED IN METRO

3.5 MILLIONVISITORS PER YEAR TO

NEARBY FAMOUS LANDMARK STATUE OF LIBERTY

AS OF 2017

STATUE OF LIBERTY

ELLIS ISLAND

LIBERTY STATE PARK

JERSEY CITY

NEW YORK CITY

MANHATTAN

NEW

YO

RK

NEW

JER

SEY

BROOKLYN

QUEENS

NEW JERSEY

SUBJECT PROPERTY

JERSEY CITY, NEW JERSEYNEW YORK CITY METRO

An unparalleled history as the nation’s “Golden Door,” Jersey City is fittingly nestled in the shadows of the historic Ellis Island and Statue of Liberty. Located between the Hudson and Hackensack Rivers, Jersey City covers nearly 15 square miles of land at the center of the New York City metropolitan region.

Once a city driven by immigrants working in the shipping and manufacturing industries, Jersey City has transformed into a modern urban community. The region is bordered to the east by the Hudson River and New York City, to the south by Middlesex and Somerset counties, to the west by Warren and Sussex counties, and to the north by New York state. The region is a part of the New York metro and is linked to the city by the George Washington Bridge, the Lincoln Tunnel, the Holland Tunnel, several ferries and commuter rail tunnels.

New York City is the largest metro in the U.S., the New York metropolitan area remains, by a significant margin, the most populous in the United States, as defined by both the Metropolitan Statistical Area (20.3 million residents in 2017) and the Combined Statistical Area (23.7 million residents in 2016); it is also one of the most populous urban agglomerations in the world, and the single largest in North America. Limited landmass, coupled with numerous high-wage industries and international residents, drive considerable real estate values and raise the cost of living. The economy of New York City encompasses the largest municipal and regional economy in the United States. Anchored by Wall Street and the New York Stock Exchange in Lower Manhattan, New York City has been characterized as the world’s premier financial center. Manhattan is the nation’s leading center of banking, finance, and communication. Many of the world’s largest corporations are headquartered in Manhattan; the borough contained over 500 million square feet of office space in 2015, making it the largest office market in the United States. Midtown Manhattan, with nearly 400 million square feet that same year, is the largest central business district in the world. It is the top global center for the advertising industry, otherwise known as “Madison Avenue.” Silicon Alley, metonymous for New York’s broad-spectrum high technology sphere, continues to expand. The city is a hub for international travelers, professionals and students with access to more than 130 public and private universities. The area’s higher educational institutions are also fed from a number of private and public schools systems. Many college graduates find work in a variety of industries represented in the local economy, such as finance, international trade, art, real estate, entertainment, tourism, education, fashion, law, and manufacturing.

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap

and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in

the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no

warranty or representation, with respect to the income or expenses for the subject property,

the future projected financial performance of the property, the size and square footage of

the property 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. The information contained in this Marketing Brochure has been obtained from

sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any

investigation regarding these matters and makes 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. Marcus &

Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ©

2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

ACTIVITY ID: Z0331856

NET-LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

OFFICES NATIONWIDE • WWW.MARCUSMILLICHAP.COM

Subject Photo

OFFERING MEMORANDUM • WALGREENS

JESSE J. LIMONSenior Associate National Retail GroupOffice (212) 430.5291Jesse.Limon@marcusmillichap.comLicense NY 10401271892

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