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1 RITE AID 535 Portland Avenue Rochester, NY Rite Aid #03597 Rochester Click here to view drone video footage of the property! DRONE FOOTAGE AVAILABLE Click here to view drone photos of the property!

2 TABLE OF CONTENT INVESTMENT HIGHLIGHTS PROPERTY PHOTOS PROPERTY AERIALS AMENITIES MAP AREA OVERVIEW DEMOGRAPHICS TENANT PROFILE CONTACT

3 INVESTMENT HIGHLIGHTS Expiration Date: May 31, 2020 (Currently in 1st Option) Annual Rent: $111,857 Lease Type: Net - Net (Landlord Responsible for Roof and Structure) Building Size: 9,028 Sq. Ft. Lot Size:.5 Acres REMAINING OPTIONS: 5 YEARS OPTION 2: $116,370 OPTION 3: $120,885 OPTION 4: $125,399 Asking Price: $1,355,850 - Cap Rate: 8.25% Reported Store Sales: $5,032,093 After Deducting for Exclusion

4 PROPERTY PHOTOS 04

5 PROPERTY AERIALS 05

6 AMENITIES MAP RIDGE RD W KODAK CENTER GENESSEE RIVER KEELER ST EXPY PORTLAND AVE INNER LOOP MAIN ST DOWNTOWN ROCHESTER 06

7 REGIONAL AREA OVERVIEW Rochester is a city on Lake Ontario, in New York State. Old industrial buildings cluster near the Genesee River s High Falls. A vast collection of toys and dolls forms the core of the Strong National Museum of Play. The George Eastman Museum, on the early- 1900s estate of the Kodak founder, has photography exhibits, film archives and gardens. Rochester Museum & Science Center has hands-on displays and a planetarium. Compared to other major metropolitan areas and against national averages, businesses in the Greater Rochester, NY region benefit from a highly competitive commercial real estate market. The region's outstanding infrastructure supports the diverse real estate available to service providers and manufacturers of all sizes. TRANSPORTATION Get in and out of the area by plane, train, car or even boat. Ground transportation is readily available and affordable. Traffic is rarely a problem; Rochester was listed as the shortest commute in America. Average travel time is about minutes in and around the city and neighborhoods. The Greater Rochester International Airport is a comfortable and affordable way to travel. Less than 1.5 miles to the Inner Loop Less than 2 miles to Interstate miles away from Niagra Falls 07

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9 LOCAL DEMOGRAPHICS 317,857 POPULATION 133,785 HOUSEHOLDS 70,648 FAMILIES 2.28 AVERAGE HOUSEHOLD SIZE Greater Rochester is the third-largest metropolitan area in New York State. It includes six counties: Genesee, Livingston, Monroe, Ontario, Orleans, and Wayne. The City of Rochester is the 79th largest city in the U.S.A. Labor Force: 624,657 Employed: 597,590 (95.67%) Unemployed: 26,682 (4.27%) In Armed Forces: 385 Not In Labor Force: 371, MEDIAN AGE $39,620 MEDIAN HOUSEHOLD INCOME $59,255 AVERAGE HOUSEHOLD INCOME * STATISTICS FROM A 5 MILE RADIUS 09

10 TENANT PROFILE Rite Aid is a drugstore operator. Rite Aid is currently in a state of flux while being purchased by the Walgreens Boots Alliance. This merger may mean divestiture of up to 1,200 stores. Although Rite Aid faces many challenges, they remain a popular asset in the net lease market due to strong fundamentals: highly demanded corner locations and long-term NNN leases. The overall stability of the pharmacy sector also creates interest and demand for Rite Aid net lease properties. With their acquisition of pharmacy chains Brooks, in the northeast, and Eckerd's, in the Carolina's and Georgia, Rite Aid has been able to remain as one of the largest pharmacy chains in the nation in regards to market presence. These acquisitions have been weighing heavily on their balance sheet. In lieu of a merger with Walgreens, Rite Aid has agreed to sell over 2,100 locations for $5.175 billion. When the deal is finalized, this infusion of capital can be used to relieve some financial pressures. Between the acquisition of rival chains and its financial woes, Rite Aid has been selling corporate owned sites through sale leaseback transactions, and in the process they have been willing to provide more favorable lease terms than their competitors. Rite Aid has been offering a 20-year primary term with 10% rental increases every ten (10) years. Rite Aid would often agree to lease rates that are in-line with the local market rather than using their size and strong credit to negotiate a low rent. New store openings have diminished and most of the newly leased Rite Aid-occupied properties have been generated through these sale leaseback transactions. These sale leasebacks offer an investor a look at historical store sales, potentially alleviating some of the risk. The re-use or redevelopment of these net-leased assets is of utmost importance to current investors when evaluating Rite Aid investments. The underlying real estate asset may be the driving force behind these investment decisions. Allowing investors to purchase a location with great real estate fundamentals at a high cap rate. The typical Rite Aid operates in a 11,000-15,000 square foot building, sitting on 1.00 acre of land. Rite Aid Corporation is one of the leading drugstore chains in the United States and a Fortune 500 company, #107 in As of 3/4/2017, Rite Aid operated 4,536 stores in 31 states across the country and in the District of Columbia. Headquartered in Camp Hill, a suburb of Harrisburg, Pennsylvania, Rite Aid is publicly traded company, NYSE: RAD. Rite Aid stores service prescription drug customers and offer an assortment of other general merchandise, which it calls front-end products. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and other everyday and convenience products, as well as photo processing. It offers approximately 3,300 products under the Rite Aid private brand. The overall average size of each store in the Company's chain is approximately 12,500 square feet. Over 50% of its stores are freestanding and approximately 50% of its stores include a drive-thru pharmacy. Many locations also feature one-hour photo shops and include a GNC store-within-rite Aid-store. RITE AID TICKER NYSE: RAD LOCATIONS 4,536 MARKET CP 1.772B CREDIT MOODY S B2 REPRESENTATIVE PHOTO 10

11 CONTACT Silber Investment Properties