21303 Highway 421 - HYDEN, KENTUCKY 41749

Rite A id Pharmacy

ACTUAL PROPERTY

offer ing memorandum

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

Investment Overv iew

• Rite Aid Located One Mile from Mary Breckenridge Hospital in Hyden, Kentucky

• There are 11 Years Remaining on a Triple Net “NNN” Lease | 10-Percent Rental Escalations Every 10 Years

• Corporate Guaranty from Rite Aid | Ranked #107 in Fortune 500 | NYSE: RAD

• Highly Visible Location on U.S. Route 421 | Highway Runs From Indiana to North Carolina Through Cities Like Indianapolis, Lexington, Richmond, Boone, and More

• Nearest Major Freestanding Pharmacy is a CVS Nearly 20 Miles Away

• Other Tenants in the Vicinity Include Dollar General, Advance Auto Parts, Save a Lot, IGA Grocery, Dairy Queen, Exxon, Hardee’s, and USPS

Marcus & Millichap is pleased to present this 14,600-square foot Rite Aid in Hyden, Kentucky. Located approximately 60 miles northwest of Kingsport, Tennessee, this Rite Aid sits on a 0.82 acre plot on U.S. Route 421. Rite Aid has 11 years remaining on a triple-net (NNN) lease with four, five-year renew-al options. The lease calls for 10 percent rental escalations every 10 years, including in the option periods. The lease is corporately guaranteed by Rite Aid Corporation, a publicly traded company (NYSE: RAD) that is ranked #107 in the Fortune 500.

This highly visible Rite Aid sits on U.S. Route 421 which runs from Indiana to North Carolina and goes through the cities of Indianapolis, Indiana, Lexing-ton, Kentucky, Richmond, Kentucky, Boone, North Carolina, and many more. Major tenants in the vicinity include Dollar General, Advance Auto Parts, Save a Lot, IGA Grocery, Dairy Queen, Exxon, Hardee’s, and USPS.

Rite Aid is located approximately one mile from Mary Breckinridge ARH Hospital, a 25- bed critical access hospital known for its long and rich history of innovative medical care. Much like the Appalachian Regional Healthcare system, Mary Breckinridge Hospital has a colorful history that has shaped medical care in Eastern Kentucky. The hospital was originally opened by midwife Mary Breckinridge who founded the Frontier Nursing Service in Leslie County to provide healthcare for mothers and babies in remote rural areas. Rite Aid benefits from being the closest major freestanding pharmacy to Mary Breckenridge Hospital, as the next closest is a CVS nearly 20 miles away. Actual Property

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

PRICE $3,536,200

CAP RATE 6.75%

NOI $238,700

PRICE PER SQUARE FOOT $242.21

RENT PER SQUARE FOOT $16.35

YEAR BUILT 2007

LOT SIZE .82 Acres

GROSS LEASEABLE AREA 14,600

TYPE OF OWNERSHIP Public

LEASE GURANTOR Corporate Guarantee

LEASE TYPE Triple-Net (NNN)

ROOF AND STRUCTURE Tenant Responsible

LEASE COMMENCEMENT DATE July 26, 2007

LEASE EXPIRATION DATE July 31, 2027

LEASE TERM 20 Years

TERM REMAINING 11 Years

INCREASES 10% Every 10 Years

OPTIONS TO RENEW Eight, Five-Year Options

FIRST RIGHT OF REFUSAL Yes

Financia l Overv iew

Offer ing Summary

Lease Summary

Actual Property

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

Tenant Overview - Rite Aid Pharmacy

TENANT TRADE NAME Rite Aid OWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 4500+

HEADQUARTERED Camphill, PA

WEB SITE www.riteaid.com

SALES VOLUME $30.7 Billion (2015)

NET WORTH $581 Million (2015)

STOCK SYMBOL RAD

BOARD New York Stock Exchange

CREDIT RATING B

RATING AGENCY Standard and Poor’s

RANK #107 in Fortune 500 (June 2016)

TENANT PROFILE

Actual Property

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, cosmet-ics, household items, beverages, convenience foods, greeting cards, seasonal mer-chandise, and other everyday and convenience products, as well as photo process-ing. 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.

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

Aer ia l Overv iew

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

9006

90063425 1096

9006

9006

1482

1482

118

257

699

699

451

699

257 80

80

80

66

66

66

15

7

421

421

421

421

4215

MILE

RADIUS

3 MILE RADIUS1 MILE

SITE

MARY BRECKENRIDGE HOSPITAL

BIG CREEKMISSIONS

BIG CREEK

PEABODY

ERILINE

ESSIE

HOSKINSTON

CINDA

SMILLAX

CUTSHIN

YEADDISS

FARLER

VIPER

FREWWOOTON

AVAWAM

HAZARD

HOMETOWNCLINIC HYDEN

THOUSANDSTICKS

SIZEROCK

Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 845 2,568 4,483

2010 Population 872 2,540 4,255

2016 Population 828 2,432 4,069

2021 Population 802 2,351 3,951

1-Mile 3-Mile 5-Mile

H o u s e h o l d s

2000 Households 332 1,008 1,772

2010 Households 328 977 1,679

2016 Households 310 932 1,602

2021 Households 300 905 1,554

1-Mile 3-Mile 5-Mile

H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $38,310 $40,806 $43,220

2016 Median HH Income $24,422 $30,300 $34,062

2016 Per Capita Income $14,343 $15,638 $17,016

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294

21303 Highway 421 - HYDEN, KENTUCKY 41749

Hyden, Kentucky is located approximately 60 miles northwest of Kingsport, Tennessee. The town is situated at the junction of U.S. Route 421 and Kentucky Route 80, along the Middle Fork of the Kentucky River. The town was established in 1878 and incorporated in 1882, and was named after John Hyden, a state senator of the time who helped form Leslie County. Today, Hyden is known for its contributions in the graduate healthcare fields and the arts. The city is home to the Frontier Nursing School, known for offering the nation’s first Family Nurse Practitioner education program. Also, located in Hyden is the Ken-tucky School of BlueGrass, which offers diploma and certificate options in Bluegrass and Traditional music – banjo, guitar, mandolin, bass, fiddle, resphonic, guitar, and vocal.

Market Overview - Hyden, Kentucky

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: X0331984 Property ID: 1697294