900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

OFFERING MEMORANDUM

RITE AID PARKING LOT

Actual Site

CONFIDENTIALITY AND 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 purchas-ers, 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.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing pack-age. 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.

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 be-fore 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 conduct-ing 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.

EXCLUSIVELY LISTED BY

David Berookhim213.943.1893

dberookhim@marcusmillichap.comLicense CA 01984125

Yannis Papadakis213.943.1827

ypapadakis@marcusmillichap.comLicense CA 01957169

Marcus & Millichap 515 S. Flower Street

Suite 500 Los Angeles, CA 91106

213.943.1800 direct213.943.1810 fax

marcusmillichap.com

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

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AERIAL VIEW

FAIR O

AKS A

VENUE

MISSION STREET

SUBJECT PROPERTY

EL CENTRO STREET

McDonald’s

AERIAL VIEW 900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

4

MISSION STREET

FAIR OAKS AVENUE

EL CENTRO STREET

SUBJECT PROPERTY

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

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SOUTH PASADENA, CAFounded in 1888, the city of South Pasadena has managed to preserve the small town charm and character of a real “Norman Rockwell” home-town, while maintaining excellent opportunities for entrepreneurs, pro-fessionals, retail and R&D establishments. Built on a foundation of qual-ity, safety, and friendliness. South Pasadena offers a high quality of city services, an exceptional school system, a strong religious community, an extensive network of parks, a rich architectural heritage, and the serene lifestyle so many seek. All of these things combine to maintain the small town atmosphere that makes South Pasadena one of California’s most desirable locations.

Major employers include Abbott Laboratories, Bristol Farms, Daisy of California, Microdot Connectors, Orchard Supply Hardware, Pavilions, Ralph’s, Trader Joe’s Corporate Headquarters, Von’s, Bank of Ameri-ca, East- West Federal Bank, Fidelity Federal Bank, Granite State Bank, Home Savings, Sanwa Bank, Wells Fargo Bank, South Pasadena Review, The Quarterly Magazine, and American Cablevision.

Investors familiar with this market, understand that South Pasadena is one of the most stable and sought after locations in Southern California in which to own an income property. Net Leased investment properties in South Pasadena rarely come on the market for sale. This property offers an excellent opportunity for a savvy investor to acquire a well located asset in an irreplaceable South Pasadena location.

LOCATION OVERVIEW

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

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. © 2017 Marcus & Millichap.

Marcus & Millichap is pleased to offer this rare investment opportunity to acquire the fee simple interest in a 26,837 square foot parking lot in a residential community perceived by many investors to be one of the most desirable rental markets in Southern California.

The property is comprised of 66 parking spaces spread across 26,837 square feet of grade level park-ing and is located at 900 Fair Oaks Avenue in South Pasadena. Rite Aid Corporation (NYSE: RAD) recently executed a new long-term lease through December 2035.

900 Fair Oaks Avenue is situated at the intersection of South Fair Oaks Avenue and Mission Street, minutes away from transportation, schools, shopping, and restaurants.

South Pasadena encompasses 3.42 square miles in area with a population of approximately 25,600. Centrally located in the San Gabriel Valley, South Pasadena is known for its beautifully tree-lined streets, historic California Craftsman-style homes, unique small businesses and its outstanding public schools.

INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

• Rare Opportunity To Acquire A Net Leased Investment Property At “Main & Main” In South Pasadena

• Leased To Rite Aid Corporation (NYSE:RAD) Through December 2035

• Tremendous Re-Development Potential Upon Lease Expiration

• Annual Rental Increases Of 5.25 Percent - Well Above Market

• Mission Critical Parking Lot Essential To The Daily Operation Of A Trophy South-ern California Rite Aid

• Situated At “Main & Main” In The Heart Of South Pasadena’s Central Business District

• Easy Access To 110, 210 & 134 Freeways

• Walking Distance From Transportation, Schools, Shopping And Restaurants

• Surrounded By Blocks Of Multi-Million Dollar Residences

• Short Commute To Downtown Los Angeles, Pasadena, Glendale, Burbank And El Monte

• 900 Fair Oaks Avenue Has A Walk Score Of 94, Considered A Walker’s Paradise (Basically Meaning Daily Errands Do Not Require A Car)

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FAIR

OAKS

AVE

MISSION ST

7This 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. © 2017 Marcus & Millichap.

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030PRICING & LEASE SUMMARY

TERM NOI

10/18 - 9/19 Current $261,035.24 3.26%

10/19 - 9/20 $274,739.59 3.43%

10/20 - 9/21 $289,163.42 3.61%

10/21 - 9/22 $304,344.50 3.80% YEAR 5 CAP4.00%10/22 - 9/23 $320,322.59 4.00%

10/23 - 9/24 $337,139.52 4.21%

10/24 - 9/25 $354,839.35 4.44%

10/25 - 9/26 $373,468.42 4.67%

10/26 - 9/27 $393,075.51 4.91% YEAR 10 CAP5.17%10/27 - 9/28 $413,711.97 5.17%

10/28 - 9/29 $435,431.85 5.44%

10/29 - 9/30 $458,292.02 5.73%

10/30 - 9/31 $482,352.35 6.03%

10/31 - 9/32 $507,675.85 6.35% YEAR 15 CAP6.68%10/32 - 9/33 $534,328.83 6.68%

10/33 - 9/34 $562,381.10 7.03%

10/34 - 9/35 $591,906.11 7.40%

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LEASE FAVORABILITY

Tenant

• Aggressive 5.25 Percent Increases Annually• No Options to Extend at End of Lease• No Tenant Right of First Refusal

Landlord

Lease Guarantor Rite Aid

Initial Lease Term 20 Years

Guaranteed Term Remaining 16 Years

Lease Type NNN - Absolute Net

Lease Guarantor Corporate

Rent Commencement Date October 2015

Expiration Date October 2035

Options None

Increases 5.25% Minimum Annually

PRICE $8,000,000

CAP RATE 3.26%CURRENT NOI $261,035.24PRICE PER SF $298.10

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

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TENANT OVERVIEW

Tenant Rite AidOwnership PublicGuarantor CorporateTicker Symbol (NYSE) RADCredit Rating (S&P) BHeadquarters Camp Hill, PAWebsite www.riteaid.com

RITE AID OVERVIEW

Rite Aid, a Fortune 500 company, is one of the nation’s leading drugstore chains and is headquartered in Pennsylvania. It is also the largest drugstore chain on the East Coast and the third largest in the United States.

Rite Aid’s stores average 12,750 square feet and offer a professional pharmacy service, a full selection of health and personal care products, an assortment of general merchandise, and more than 1,900 Rite Aid brand products.

Through an alliance with General Nutrition Companies, Inc.(GNC), a leading retailer of specialty vitamins and supplements, more than a quarter of Rite Aid outlets in-clude a GNC “store-within-the-store.”

900 FAIR OAKS AVENUE SOUTH PASADENA, CA 91030

OFFERING MEMORANDUM

RITE AID PARKING LOT

Actual Site