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C V S , A m e r i c u s G A | 1

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O F F E R I N G M E M O R A N D U M™

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E X E C U T I V E S U M M A R Y

L e a s e A b s t r a c t

F i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

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K Y L E M AT T H E W SBROKER OF RECORD

LIC # 363764

b i l l p e d e r s e n

National Drug Store Specialist

Bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

K y l e B M at t h e w s

Chairman & CEO

[email protected] (310) 919-5757MOB (310) 622-3161LIC # 01469842 (CA)



• Rare 10% Rent Increases in Initial Term CVS has 10% rent increases every 5-years in the initial term and throughout the renewal

periods – a strong hedge against inflation

• Extremely Low Rent CVS is only paying $102,850 annually in rent making this location incredibly attractive to the tenant

• Absolute NNN Ground Lease Zero landlord responsibilities

• Long Term Lease 15 years remaining on the original 25-year lease with five (5) five (5) year renewal options

• Prototype Store Format 2006 construction and the latest prototype building with a drive-thru pharmacy

• Excellent Real Estate Fundamentals Only CVS within a 21-mile radius, Americus is an established community in South Georgia and is

the home of Habitat for Humanity’s international headquarters

• Excellent Retail Synergy – Retail corridor includes: Food Lion, Walgreens, Taco Bell, Wendy’s, Subway, Krystal, Wells Fargo, Advance

Auto Parts, Hibbett Sports, Burger King, O’Reilly Auto Parts, Aaron’s, Hardee’s, McDonald’s, Rite Aid and more

• Investment Grade Credit Tenant CVS Health has investment grade credit (S&P Rated BBB+, Moody’s Baa1). CVS is the second

largest retail pharmacy in the US with over 9,600 locations, is the largest retailer of prescription drugs, and the second-largest

pharmacy benefits manager in the U.S. CVS Health is a Fortune 500 company - Ranked #7 in 2016

i n v e s t m e n t h i g h l i g h t s

Bill Pedersen and Kyle Matthews of Matthews Real Estate Investment Services are pleased to offer, to qualified investors, a long-term CVS ground lease in Americus, GA. CVS is paying low rent making the location a secure long term investment. This is one of the few CVS currently on the market with 10% rent increases in the initial term providing a strong hedge against inflation. The CVS is strategically located in the center of Americus with excellent visibility and accessibility. Americus is an established market in south Georgia and this is the only CVS within 21-miles.

o f f e r i n g s u m m a r y

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C V S1036 E Forsyth Street,Americus, GA 31709

List Price ...................................................................................................................$1,870,000

CAP Rate - Current ..........................................................................................................5.50%

Gross Leasable Area ............................................................................................± 12,206 SF

Year Built ............................................................................................................................. 2006

Store Number ...............................................................................................................4672-02

Annualized Operating DataMonthly Rent Annual Rent CAP Rate

Current $8,570.83 $102,850.00 5.50%

Years 16 - 20 $9,427.92 $113,135.00 6.05%

Years 21 - 25 $10,370.71 $124,448.50 6.66%

First Renewal Period $11,407.78 $136,893.35 7.32%

Second Renewal Period $12,548.56 $150,582.69 8.05%

Third Renewal Period $13,803.41 $165,640.95 8.86%

Fourth Renewal Period $15,183.75 $182,205.05 9.74%

Fifth Renewal Period $16,702.13 $200,425.55 10.72%

Tenant Summary

Tenant Trade Name CVS

Type of Ownership Ground Lease

Lease Guarantor Corporate

Lease Type Absolute NNN Ground Lease

Landlord Responsibilities None

Original Lease Term 25 Years

Lease Commencement Date 8/4/2006

Rent Commencement Date 1/31/2007

Lease Expiration Date 1/31/2032

Term Remaining on Lease ± 14.75 Years

Increases 10% every five (5) years

Options Five (5) five (5) year options

Drive Thru Yes



l e a s e a b s t r a c t

Tenant: CVS GA 4672 L.L.C.

Guarantor: Corporate

Store number: 4672-02

Address: 1036 E Forsyth St, Americus, GA 31709

Size: 1.66 Acres

Lease Type: Ground lease

Date of Lease: February 22, 2006, amended February 23, 2006

Lease Commencement: August 4, 2006

Rent Commencement: January 31, 2007

Lease Expiration: January 31, 2032

Lease Term: Twenty-five (25) years

Renewal Options: Five (5) five (5) year options

Current Annual Rent: $102,850.00

Rent Increases:January 31, 2022: $113,135.00

January 31, 2027: $124,448.50

Option Rent:

First renewal period: $136,893.35Second renewal period: $150,582.69

Third renewal period: $165,640.95Fourth renewal period: $182,205.05

Fifth renewal period: $200,425.55

Real Estate Taxes: Landlord pays all taxes, tenant reimburses for pro rata share

Maintenance and Repairs: Tenant, at its own cost and expense, kept and maintained in repair and good condition, all buildings and improvements upon the premises

Utilities: Tenant pays for all utilities

Tenant Assignment and Sublet-ting:

Tenant may assign, transfer, or sublease the lease (premises) upon landlord’s prior written consent

Right of First Refusal Thirty (30) days

C V S , A m e r i c u s G A | 7Te n a n t N a m e , C i t y , S t a t e | 7



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Property Name CVS

Property Type Net Leased Drug Store

Company Trade Name CVS Health Corporation (NYSE: CVS)

Ownership Public

Credit Rating (S&P) BBB+

No. of Locations ± 9,700

No. of Employees ± 243,000

Headquartered Woonsocket, Rhode Island

Website www.cvs.com

Year Founded 1963

TENANT OVERVIEWCVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. Hook-SupeRx, LLC operates as a subsidiary of CVS Health Corporation and retails drugs in the United States. It is based in Indianapolis, Indiana and does business as CVS

Pharmacy.

GEOGRAPHIC REACHCVS drugstores span across 49 U.S. states, the District of Columbia, Brazil and Puerto Rico. The company also operates Longs Drugs banner in California, Hawaii,

Nevada and Arizona. Around 1,000 store locations throughout 31 states and in Washington D.C. also have Minute Clinics.

STRATEGY

CVS continues to evolve from being a general pharmacy store, expanding into more specialty fields of the fast-growing healthcare market. The company’s Retail

Pharmacy Store Development plan, which focuses on entering new markets, adding stores in existing markets, and relocating stores to more convenient sites, has

been essential for business growth and in keeping up with Walgreens. CVS has been successful in its ventures for its store count has increased from 7,388 stores

at the end of 2011 to nearly 9,700 stores today. In addition to opening new stores, CVS has made efforts to increase sales at existing ones. Prescription drugs

account for more than two-thirds of its sales, and the retailer is attempting to grow revenues from over-the-counter medications and general merchandise through

its growing private-label product offering.

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Property Name CVS

Property Address 1036 E Forsyth Street,

Americus, GA

Assessor’s Parcel Number 063-16-6704

Site DescriptionNumber of Stories One

Year Built 2006

Gross Leasable Area (GLA) ± 12,206 SF

Lot Size 1.66 acres

Type of Ownership NNN

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A M E R I C U S d e m o g r a p h i c s

POPULATION 3 Mile 5 Mile 10 Mile

2022 Projection 21,882 23,707 26,566

2017 Estimate 22,363 24,236 27,114

2010 Census 24,085 26,137 29,189

2000 Census 23,832 25,989 28,935

HOUSEHOLDS 3 Mile 5 Mile 10 Mile

2022 Projection 8,204 8,883 9,964

2017 Estimate 8,309 9,004 10,090

2010 Census 8,772 9,527 10,670

INCOME 3 Mile 5 Mile 10 Mile

2017 Est. Average Household Income

$66,815 $67,348 $70,858

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C V S , A m e r i c u s G A | 1 3

Americus, Georgia

TOP EMPLOYERS

Americus is a c i ty in Sumter County, Georgia. Americus is an exci t ing town and is the home of Habitat for Humanity ’s Internat ional headquarters , the famous Windsor Hotel , the Ful ler Center for Housing internat ional headquarters , The Rosalynn Carter Inst i tute for Caregiv ing, Glover Foods and many more wel l -known organizat ions. Americus is r ich in history and cul ture and offers a var iety of social opportuni t ies including theaters , d in ing, sport act iv i t ies and churches for residents. The town also pr ides i tsel f in educat ion, as i t is home to two inst i tut ions of h igher learning Georgia Southwestern State Univers i ty and South Georgia Technical Col lege-Main Campus

Americus is approximately nine mi les east of Pla ins and 150 mi les south of At lanta, in the middle of a t r iangle formed by Albany, Columbus, and Macon, s ixteen mi les west of the Fl int River. Americus is decorated with histor ical archi tectural design, rows of bout ique shops and unique restaurants featur ing anything f rom f ive star cuis ines to fantast ic home-cooked tradi t ional southern fare.

attractions

Attract ions include the Andersonvi l le Nat ional Histor ic Si te, Br ickyard Plantat ion Golf Club & RV Park, Georgia Rural Telephone Museum, Habitat for Humanity/Global Vi l lage and Discovery Center, P la ins Histor ic Inn & Ant iques, Rylander Theatre, SAM Short l ine Excursion Train, Thir teenth Colony Dist i l ler ies, and the histor ic Best Western plus Windsor Hotel .

Sumter County Schools

Eaton Cooper Lighting

Habitat for Humanity

Wal-Mart

Phoebe Sumter Medical Center

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of CVS located at 1036 E Forsyth Street, Americus, GA (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

C V S , A m e r i c u s G A | 1 5

BROKER OF RECORD

e x c l u s i v e ly l i s t e d b y

™CVS1 0 3 6 E F o r s y t h S t r e e t | A m e r i c u s , G A

K Y L E M AT T H E W SBROKER OF RECORD

LIC # 363764

b i l l p e d e r s e n

National Drug Store Specialist

Bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

K y l e B M at t h e w s

Chairman & CEO

[email protected] (310) 919-5757MOB (310) 622-3161LIC # 01469842 (CA)

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