Net Leased CVSoffering memorandum

100 S Cushing avenue Kaplan, Louisiana 70548

This Offering Memorandum and any subsequent evaluation material you may be provided

(collectively known as the “Offering Memorandum”) is intended solely for your limited use in

considering whether to pursue negotiations to acquire CVS (the “Property”) located in, Kaplan,

Louisiana. The Property is being marketed for sale by Ackerman & Co. (“Broker”).

The Offering Memorandum contains brief, selected information pertaining to the business and

affairs of the Property and has been prepared by Broker. It does not, however, purport to be

all-inclusive or to contain all of the information that a prospective purchaser may desire. Broker

makes no representation or warranty, express or implied, as to the accuracy or completeness

of the Offering Memorandum or any of its contents, and no legal liability is assumed to be

implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that the Offering

Memorandum and its contents are confidential, that you will hold and treat it in the strictest

of confidence, that you will not directly or indirectly disclose, or permit anyone else to disclose,

the Offering Memorandum or its contents to any other person, firm, or entity (including,

without limitation, any principal for whom you have been engaged), without prior written

authorization of Owner or Broker and that you will not use or permit to be used the Offering

Memorandum or its contents to be copied or used in any fashion or manner detrimental to the

interest of Owner. Photocopy or other duplication is strictly prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE OF

AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO

CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION

OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from sources that

are deemed reliable, but the Broker does not warrant or represent that the information is true

or correct. Prospective offerors are advised to verify information independently. The Offering

Memorandum is not to be construed as an offer or as any part of a contract to sell the property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating

to asbestos or any other hazardous, toxic or dangerous chemical item, waste or substance

(hereinafter collectively referred to as “Waste”) relating to the Property shall in no way be

construed as creating any warranties or representations, expressed or implied by the Broker as

to the existence or nonexistence or nature of Waste in, under or on the Property, it may create

significant legal and/or economic obligations upon the Owner, lessee and/or other holders of

interest in the Property or a part thereof and you are hereby advised to obtain professional

assistance such as from a consultant, engineer and/or attorney prior to taking an interest in the

Property or a part thereof.

CONFIDENTIAL INFORMATION (INFORMATION NOT WARRANTED )

Co

nTa

CTS

01 eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview

02 TenanT oVerView Tenant overview rent roll Site Plan

03 marKeT oVerView CVS Comparable Sales detailed demographics

04 finanCiaL oVerView Loan and Lease abstract

JASON POWELL, CCIMVice President, Investment Sales

770.913.3952 | jpowell@ackermanco.net

SEAN PATRICK Vice President, Investment Sales

770.913.3946 | spatrick@ackermanco.net

Table Of ContentsNET LEASED CVS

Net Leased CVS

eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview

01

net leased cvs 5

The offering includes a zero cash flow (ZCF) structure with the annual debt service and annual rent both equaling $193,375. The Kaplan, LA CVS Zero Cash Flow structure offers many benefits including the following:

INVESTMENT HIgHLIgHTS

Fully Amortizing Assumable Loan: This offering includes a twenty-two (22) year self-amortizing loan which means the debt on the property is scheduled to be completely paid off from the CVS rental payments in year twenty-two (22) of the twenty-five (25) year initial lease term for CVS.

Absolute Net Lease: This offering includes an absolute net lease structure with zero landlord responsibilities. All expenses, including repairs to the building, roof, and parking lot are borne by CVS.

Low Equity Requirement: The ZCF structure enables an investor to utilize the tenant’s investment grade tenant with a high leverage, non-recourse fully amortizing loan. It also allows an investor to purchase a premier drugstore tenant using a significantly lower amount of equity than what is usually required.

Long term “bond style” Investment: This structure fits well for 1031 exchange needs and estate planning goals – ideal asset to form a trust with.

Benefits of Tax Deductions: The ZCF structure enables qualified investors to take deductions for depreciation and interest and offset other income using a relatively small amount of equity.

Low Purchase Price: This offering includes a purchase price per square foot that is significantly lower than most of the recently sold CVS and Walgreens stores built during this timeframe.

Superior Credit Tenant: CVS originated in 1963, the second largest U.S. Pharmacy presently has over 7300 drugstores in the United States and Puerto Rico. Currently, CVS has a BBB+ Investment grade rating from Standard & Poor’s with a market capitalization value of approximately $61BB.

INVESTMENT SUMMARY

Ackerman & Co’s Retail Investment Sales team is pleased to exclusively present for sale a net-leased CVS located in Kaplan, Louisiana. This recently constructed CVS property includes an absolute net lease structure with zero landlord responsibilities. The store, built in late 2006, features CVS’ newer store model prototype. The store is located at a signalized intersection in the heart of Kaplan’s retail corridor.

01 Executive Summary

INVESTMENT SUMMARY

Square Footage: 9,800

Acreage: 1.32

Offering Price: $2,282,599 ($232/Sf)

Loan Balance (as of 2/2013): $1,962,579

CAP Rate: 8.47%

Equity Requirement: $320,000 (14%)

Debt Structure: assumable/non-recourse

Initial Term Lease Expiration: 1/31/2032

Lease Type: absolute net (Zero LL responsibilities)

Balloon Payment: none (Self-amortizing Loan)

net leased cvs 6

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35

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696

699

724

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14

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167

167

167

Lafayette

Abbeville

KaplanVeterans Memorial Dr

Main St

E Whitney St

S Jack

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Ave

E Texas Ave

John

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Golden Grain Rd

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wy

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Cameron St

cvs/pharmacy100 S. CuShing Avenue KAplAn, louiSiAnA 70548

The subject CVS, located in Kaplan, LA, was built in 2006 and is in excellent physical condition.

The drug store sits at a highlly visible and busy intersection with over 9,600 vehicles per day. The site offers ample parking and good visibility off from heavily traveled Veterans Memorial Drive.

In 2011, total population within 5 miles was 8,730 and average household income within the 5 miles was $43,308.

LOCATION AND DEMOGRAPHICS

01 Executive Summary

Source: 2011 MPSI Systems Inc. d.b.a. DataMetrix®

TraffiC CounTS

2,234 vEhICLES Per daY on S. CuShing aVe

9,634 vEhICLES Per daY on w. VeTeranS memoriaL dr

DEMOgRAPHIC SUMMARY

1 MILE 3 MILES 5 MILES

Population 2011 4,153 6,372 8,730

Total households 1,759 2,606 3,444

Average household Income $40,419 $43,638 $48,308

net leased cvs 7

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cvs/pharmacy100 S. CuShing Avenue KAplAn, louiSiAnA 70548

close-up aerial view of the site

01 Executive Summary

net leased cvs 8

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9,634 vEhICLES Per daYW Veterans Memorial Dr

cvs/pharmacy100 S. CuShing Avenue KAplAn, louiSiAnA 70548

AERIAL VIEW CAPTURING ThE sITE AND sURROUNDING RETAIL

01 Executive Summary

net leased cvs 9

PROPERTY OVERVIEW

01 Executive Summary

address: 100 S. Cushing avenue Kaplan, La 70548

County: Vermilion (Parish)

municipality: City of Kaplan

Building Size: 9,800 / one-story Building

Land area 1.32 acres

Parcel id: 13310106

Year Built: 2006

Construction: Brick

Zoning: C-3

Signage: Pylon sign at the corner of S. Cushing ave and Veterans memorial drive

access: There are points of ingress/egress via w. Veterans memorial drive and S. Cushing ave

Store number: 5282

drive-through Yes

health Center no

Store hours monday - Sunday, 7 am - 10 Pm

Net Leased CVS

TenanT oVerView Tenant overview rent roll Site Plan

02

net leased cvs 11

TENANT SUMMARY

SiZeone-Story Building

SQuare fooTage9,800

LeaSe eXPiraTion2032

CVS Caremark Corporation (NYSE: CVS ) operates as a pharmacy services company in the United States. Founded in 1967, it is the nation’s second largest Pharmacy company. The company’s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal government’s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, had over 7300 retail locations and it operated 44 retail specialty pharmacy stores, 13 specialty mail order pharmacies, and 4 mail service pharmacies located in 44 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. For the fiscal year ended December 31, 2010, CVS Caremark Corporation reported revenue of $96.413 billion with net income of $3.424 billion.

CVS Caremark Corporation Common (NYSE: CVS) S&P Rating: BBB+Headquarters: Woonsocket, Rhode Island USAStore Locations: 7,300Year Founded: 1963Employees: 201,0002011 Revenue: $96.413 B

www.info.cvscaremark.com

02 Tenant Overview

net leased cvs 12

RENT ROLL

02 Tenant Overview

SuiTe TenanTSTarT daTe

eXPiraTion daTe

rSf raTe/SfannuaLiSed

renTmonThLY

renTCommenTS

1 CVS 12/10/2006 1/31/2032 9,800 $19.73 $193,375 $16,114.66

Tenant retains Ten (10) x Five (5) year options.

[*] Tenant’s lease includes a 3 year “rent holiday” from 12/10/2028 to 1/31/2032. The current loan will be fully amortized on 12/10/2028.

General Property Notes

net leased cvs 13

SITE PLAN

cvs/pharmacy100 S. CuShing Avenue KAplAn, louiSiAnA 70548

02 Tenant Overview

Net Leased CVS

marKeT oVerView CVS Comparable Sales detailed demographics

03

net leased cvs 1503 Market OverviewCVS Comparable SaleS

addreSS Year BuiLT STaTuS SaLe daTeSQuare

fooTagePriCe PriCe Per Sf

QuoTed CaP raTe

Walgreens - 6111 Hickory Flat Hwy, Canton, gA 2005 Sold Mar-12 14,820 $4,700,000 $317.14 6.80%

Walgreens - 303 Charlie Watts Blvd, Dallas, gA 2011 Sold Feb-12 14,820 $7,500,000 $506.07 6.80%

CVS - 55 goodman Rd. Southave, MS 2009 Sold Dec-10 13,938 $6,800,000 $487.87 7.30%

Walgreens - 7030 Hacks Cross Rd., Olive Branch, MS 2007 Sold Dec-11 14,750 $5,200,000 $352.54 6.65%

CVS - 418 W Valley Ave, Birmingham, AL 1999 Sold Jan-12 10,125 $3,700,000 $365.43 7.30%

CVS - 1037 Main Street, Chipley, FL 2011 Sold Nov-11 13,225 $3,800,000 $287.33 6.80%

Walgreens - 2500 gallatin Ave, Nashville, TN 2003 Sold Nov-11 15,120 $5,100,000 $337.30 7.30%

Averages (Competitive Set) $5,257,143 $379.10 6.99%

CVS - 100 S. Cushing Ave, Kaplan, LA (Subject Property)

2006 9,800 $2,282,599 $232.00 8.47%

[*] Cap rate for CVS, Kaplan is higher than recent sales and the price per square foot is lower than recent sales.

General Property Notes

net leased cvs 1603 Market Overview

demograPhiCS 1 miLe 3 miLeS 5 miLeS

2011 Population 4,290 6,532 8,849

2016 Projected Population 4,153 6,372 8,730

2000 Census Population 4,494 6,729 8,895

1990 Census Population 4,414 6,524 8,422

growth 2000 - 2011 -4.54% -2.93% -0.52%

growth 2011 - 2016 -3.19% -2.45% -1.34%

2011 median age 36.39 36.68 36.58

Total employees 3,308 5,069 6,882

2011 households 1,759 2,606 3,444

2016 Projected households 1,720 2,564 3,423

2000 Census households 1,796 2,621 3,383

1990 Census households 1,722 2,467 3,093

growth 2000 - 2011 -2.06% -0.57% 1.80%

growth 2011 - 2016 -2.22% -1.61% -0.61%

2011 average household Size 2.40 2.46 2.52

2011 median household income $28,946 $32,858 $37,569

2011 average household income $40,419 $43,638 $48,308

2011 Per Capita income $16,645 $17,499 $18,883

2011 housing units 1,759 2,606 3,444

2011 owner occupied units 67.65% 69.57% 73.40%

2011 renter occupied units 32.35% 30.39% 26.60%

DETAILED DEMOGRAPHICS

Net Leased CVS

finanCiaL oVerView Loan and Lease abstract

04

net leased cvs 18

loan and lease abstract

04 Financial Overview

LeaSe aBSTraCT

Purchase Price $2,282,599

Cap Rate 8.47%

Equity Requirement $320,000 (14.0%)

Annual Rent $193,375

Building Square Footage 9,800

Land Acre (s) 1.37

Lease/Rent Commencement Date 12/1/2006

Lease Expiration Date 1/31/2032

Renewal Options Ten (10) x five (5) year

Renewal Rent (two fixed options) $174,036

Landlord Responsibilities None

Rent Holiday 12/10/2028- 1/31/2032

Loan aBSTraCT

Original Principal Loan Balance $2,351,806

Current Loan Balance (as of 2/2013) $1,962,579

Loan Commencement Date 12/10/2006

Loan Maturity Date 12/10/2028

Amortization Schedule 22 Years

Balloon Payment None

Annual Debt Service $193,375

Recourse Requirement None

© 2012 Ackerman & Co. All rights reserved.

FOR MORE INFORMATION, PLEASE CONTACT:

JaSon PoweLL, CCim | Vice President, investment Sales

770.913.3952 jpowell@ackermanco.net

Sean PaTriCK | Vice President, investment Sales 770.913.3946 spatrick@ackermanco.net