EXCLUSIVE INVESTMENT SUMMARY...Osco, Shaw’s,ACME Markets, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, and Carrs. Albertsons is committed to helping people across

S I N G L E T E N A N T , A B S O L U T E N N N G R O C E R W I T H C O R P O R A T E G U A R A N T Y L O C A T E D I N T H E U N I T E D S T A T E S C A P I T A L

EXCLUSIVE INVESTMENT SUMMARY

3830 GEORGIA AVENUE NW | WASHINGTON, DC

ACTUAL PHOTO – WASHINGTON, DC

Deal represented was secured by Holliday Fenoglio Fowler, L.P. (“HFF”) prior to being acquired by JLL. HFF is now a JLL company. Jones Lang LaSalle Americas, Inc. or Jones Lang LaSalle Americas (IL) LP for Illinois listings are providing co-brokerage services for HFF listings, and licensees may hold licenses with either HFF or such JLL entities.

© 2019 Holliday Fenoglio Fowler, L.P. (“HFF”), a Washington DC licensed real estate broker.

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders,officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation thatno change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely theresponsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in thisOfferingMemorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have nolegal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fullyexecuted, delivered andapproved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sourcesavailable to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directlyor indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be usedthis Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know partiesagree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in theproperty, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.

MARKETING ADVISORS DEBT ADVISOR

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PROPERTY VIDEO

MARC MANDEL STEVE SCHRENK BRANDON CHAVOYA JOHN OWENDOFF JORDAN LEX

Managing Director Director Managing Director Managing Director Senior Director

484.532.4212 484.532.4213 469.232.1967 202.777.2302 202.533.2517

[email protected] [email protected] [email protected] [email protected] [email protected]

LOCAL MARKETING ADVISORS

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S A F E W AY | W A S H I N G T O N , D C

INVESTMENT SUMMARY

INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

SAFEWAY | WASHINGTON, DC4

Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a net lease opportunity to acquire a single tenant, absolute NNN,

corporately guaranteed, Safeway (the “Property”), investment property in Washington DC – the United States capital that is home to more than 400,000 people

within a 3-mile radius of the Property. Safeway is operating on a brand new, 20-year lease with no landlord responsibility. The lease, which is guaranteed by

Albertsons Companies, Inc., - the second largest supermarket chain in North America - features attractive rental increases which shall continue throughout the

primary term as well the eight (8), five (5) year option periods.

The Property is conveniently situated on the corner of the fully signalized intersection of Georgia Avenue NW and Randolph Street NW. Safeway has excellent

visibility which benefits from the multitude of citizens and pedestrians that flood the area, as well as the 22,000+ VPD that pass the premises. There are 84

underground parking spaces allocated to these Safeway customers. Georgia Ave – Petworth Metro Station, which serves the Green and Yellow lines throughout

the city, is less than 500 feet from the Property. The station is a member of the greater Metrorail, which serves 91 stations and has 117 miles of track.

Albertsons is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. The Company operates more

than 2,200 stores across 35 states and the District of Columbia. It operates these stores via 20 well-known banners including Albertsons, Safeway, Vons, Jewel-

Osco, Shaw’s, ACME Markets, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, and Carrs. Albertsons is committed to helping people

across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2017 alone, along with the Albertsons Companies

Foundation, the Company gave nearly $300 million in food and financial support.

Consistently out-performing the national economy, the Washington DC metro area has sustained its remarkable performance with leading indicators such as low

unemployment and high wage job creation. The metro area is expected to gain 42,000 jobs through 2019 and the immediate area surrounding the subject

property is growing exponentially. According to Bisnow, the the mile-long stretch of Georgia Avenue from Lamont Street to Upshur Street has at least 13

multifamily projects underway and is home to 17 new bars and restaurants since 2018 (Link to article: Petworth, Park View Booming With Multifamily Projects,

Restaurant Openings). The average household income within a 3-mile radius of the Property is nearly $140,000.

$25,293,040ASKING PRICE

5.00%CAP RATE

$1,264,652NOI

20 YearsREMAINING LEASE TERM

INVESTMENT SUMMARY

REPRESENTATIVE PHOTO

https://www.bisnow.com/washington-dc/news/neighborhood/petworth-and-park-view-neighborhoods-booming-with-multifamily-projects-restaurant-openings-100272?utm_source=outbound_pub_2&utm_campaign=outbound_issue_31212&utm_content=outbound_link_1&utm_medium=email



INVESTMENT HIGHLIGHTS

Rare opportunity to purchase an

Absolute NNN Grocery Store in the

United States capital – Washington, DC

Situated in the Petworth section of

Washington, D.C., the property has excellent

visibility and is located on a busy retail

corner with a fully signalized intersection,

located in the NW section of Washington,

D.C., with 22,575 vehicles per day

Albertsons is one of the largest food

and drug retailers in the U.S., with both

a strong local presence and national

scale and operates over 2,250 stores

Albertsons guaranteed Safeway Grocery

Store with 20 years remaining on the

primary term, inclusive of attractive

rental increases throughout, and zero

landlord responsibilities

Located less than 500 feet from the

Georgia Ave – Petworth Metro Station,

serving the Green and Yellow lines

Located in a densely populated, Metro-

orientated neighborhood of Washington,

D.C. with strong demographics with a

population of 223,925 within a 2-mile radius

and a population of 405,075 within a 3-mile

radius, as well as an average household

income of $118,885 within one mile

●

S A F E W AY | W A S H I N G T O N , D C

TENANT OVERVIEW



Albertsons Companies Inc. is an American grocery company founded

and based in Boise, ID in 1939. Albertsons is one of the largest food

and drug retailers in the United States, with both a strong local

presence and national scale. The Company operates more than 2,200

stores across 35 states and the District of Columbia.

Albertsons operates 20 well-known banners including Albertsons,

Safeway, Vons, Jewel-Osco, Shaw’s, ACME Markets, Tom Thumb,

Randalls, United Supermarkets, Pavilions, Star Market, and Carrs.

In January of 2015, Albertsons acquired Safeway, Inc. for $9.2 billion,

making the company the second largest supermarket chain in North

America, trailing only Kroger. Prior to the merger, Albertsons had 1,075

supermarkets in operation. The locations were situated in 29 U.S.

states.

In July of 2019, Albertsons Companies announced an initiative to make

its online grocery shopping websites and mobile applications more

accessible and usable for shoppers with disabilities.

TENANT / GUARANTOR OVERVIEW

REPRESENTATIVE PHOTO

Corporate Overview

US Headquarters Boise, ID

Number of Stores 2,200+

Number of Banners 20

Number of Employees 265,000+

Website albertsons.com

Credit Rating B+ (S&P)

●

S A F E W A Y | W A S H I N G T O N , D C

FINANCIAL ANALYSIS



LEASE ABSTRACT

$25,293,040ASKING PRICE

5.00%CAP RATE

$1,264,652NOI

TENANT RESPONSIBILITY DETAIL

Maintenance and

Repairs

Commencing on the Effective Date, and during the Term of this Lease,

Tenant shall, at Tenant's sole cost and expense, maintain the Leased

Premises, structural and non-structural, interior and exterior, in good

condition and repair

Insurance

Tenant shall maintain commercial general and auto liability insurance

covering its obligations under Article 15 in the Lease; Tenant agrees to

carry a Special Peril Form policy outlined in Article 16.2 of the Lease

Taxes

Tenant shall be liable for and, to the extent permitted under applicable

law, agrees to pay directly to the applicable taxing authority, as they

accrue, all taxes and assessments levied or assessed against,

imposed upon or arising with respect to (i) the Leased Premises prior

to or during the Term of this Lease

Utilities

Tenant agrees to contract, in Tenant's name, for and pay directly to the

applicable service providers all charges for electricity, gas, heat, water,

telephone and other utility services used in the Leased Premises

during the Term of this Lease

CAM

Tenant shall maintain or cause to be maintained, at its sole cost and

expense, the Common Area at all times in good and clean condition

and repair

LANDLORD RESPONSIBILITY DETAIL

None

LEASE DETAIL

Tenant New Albertsons, LP

Guarantor Albertsons Companies, Inc.

Address 3830 Georgia Avenue NW, Washington, DC 20011

Branded As Safeway

Building Size 64,033 SF

Year Built 2014

Parcel Size 1.56 Acres

Annual Rent $1,264,652

Rent / SF $19.75

Lease Type Fee Simple: Absolute NNN

Roof & Structure Tenant Responsibility

Lease Commencement 7/1/2019

Lease Expiration 6/30/2039

Remaining Lease Term 20 Years

Remaining Options Eight (8), Five (5) Year Options

Right of First Refusal *Tenant shall have the right to purchase all of Landlord’s

right, title and interest in and to the Leased Premises

RENT SCHEDULE

Description Dates Annual Rent % Increase

Current Term (Year 1) 7/1/2019 - 6/30/2020 $1,264,652

Current Term (Year 2) 7/1/2020 - 6/30/2021 $1,283,622 1.50%



Current Term (Years 5-10) 7/1/2023 - 6/30/2029 $1,342,256 1.50%



Option Term 1 (Years 21-25) 7/1/2039 - 6/30/2044 $1,667,480 7.50%






Option Term 7 (Years 51-55) 7/1/2069 - 6/30/2074 TBD** -

Option Term 8 (Years 56-60) 7/1/2074 - 6/30/2079 TBD** -

* For the period commencing on the date that is four (4) years after the Effective Date and

continuing for the balance of the Primary Term and any Option Terms, Landlord grants

unto Tenant an on-going right of first refusal to purchase all of Landlord's right, title and

interest in and to the Leased Premises

** Annual Rent shall be an amount equal to the greater of (i) the Annual Rent in effect

during the immediately preceding Lease Year, or (ii) one hundred percent (100%) of fair

market value rent for a supermarket use (“FMV”) for the Leased Premises at the time

Tenant exercises such Option Term



SITE PLAN

22,575 VPD

S A F E W A Y | W A S H I N G T O N , D C

MARKET OVERVIEW

30 MILES

40 MILES



WASHINGTON, DC OVERVIEW

The Washington, DC metropolitan area remains one of the most resilient regions in the nation with an economy propelled by strong growth in the business and professional service sectors as well as substantial economic stability provided by the federal government. The region has seen the emergence of a

more diverse and dynamic economy that features the country’s largest technology cluster and rapidly growing biotech and aerospace industries. According

to the Greater Washington Initiative, approximately one-third of the DC metropolitan area workforce was employed by the federal government forty years ago. Over the past three decades, however, with the growth of the professional and business services and technology sectors, that share has been

reduced to roughly 22%. Due to the federal government’s presence and the related industries desire to be located in close proximity, the Washington, DC

metropolitan region has the highest concentration of office-using jobs in the nation.

ECONOMIC OVERVIEW

Retail in the DC metropolitan area is traditionally highlighted by the area’s regional malls. The new “Urbanist Movement” has taken retail development in new directions, perhaps more so in Washington than in other parts of the country. This movement strays away from the traditional shopping center and

towards mix-used with offices, apartments, shops and community space, all within distance of transit hubs – the Subject Property epitomizes this trend. As

of 2018, there was over 3.8 million square feet of retail within the Capitol Hill Submarket.

RETAIL

Washington, DC is home to 19 colleges and universities, including 5 research universities, 4 masters universities, and 10 special-focus institutions. These platforms of higher education yield a crop of highly educated graduates from some of the nation’s most prestigious universities each year which has

contributed to The District’s perennial consideration as the nation’s “most educated city.” Of the 19 institutions of higher education located within city limits,

16 are private, of which 3 are for-profit. Georgetown University, the oldest post-secondary institution in The District and oldest Jesuit and Catholic university in the country, has over 7,000 undergraduate and 10,000 post-graduate students from over 130 foreign countries. The largest college or university in the

city, George Washington, has over 10,000 undergraduate students and roughly 15,000 post-graduate students. In addition to Washington, DC’s colleges

and universities, Maryland and Virginia have a host of their own universities which contribute to the DC metropolitan area’s highly-educated workforce.

EDUCATION



WASHINGTON, DC OVERVIEW (CONTINUED)



SURROUNDING RETAIL AND AMENITIES



DEMOGRAPHICS: 3830 GEORGIA AVENUE NW, WASHINGTON, DC

*Rings may not be drawn to scale

1 MILE

2 MILES

3 MILES

(Environics Analytics)

POPULATION

1 MILE 2 MILES 3 MILES

2010 Census 59,436 189,473 338,538

2019 Estimate 69,748 223,925 405,075

2024 Projection 75,683 242,108 437,113

POPULATION GROWTH

Historical Growth: 2010 to 2019 17.35% 18.18% 19.65%

Projected Growth: 2019 to 2024 8.51% 8.12% 7.91%

HOUSEHOLD INCOME

2019 Average Household Income $118,885 $132,544 $137,013

2019 Median Household Income $77,310 $93,332 $95,671

HOUSEHOLDS

2010 Census 23,681 85,759 157,745

2019 Estimate 28,267 103,212 192,634

2024 Projection 30,880 112,362 209,354

HOUSEHOLD GROWTH

Historical Growth: 2010 to 2019 19.37% 20.35% 22.12%

Projected Growth: 2019 to 2024 9.24% 8.87% 8.68%

HFFLP.COM

MARKETING ADVISORS DEBT ADVISOR

MARC MANDEL STEVE SCHRENK BRANDON CHAVOYA JOHN OWENDOFF JORDAN LEX

Managing Director Director Managing Director Managing Director Senior Director

484.532.4212 484.532.4213 469.232.1967 202.777.2302 202.533.2517

[email protected] [email protected] [email protected] [email protected] [email protected]

LOCAL MARKETING ADVISORS






Documents

EXCLUSIVE INVESTMENT SUMMARY...Osco, Shaw’s,ACME Markets, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, and Carrs. Albertsons is committed to helping people across