Actual Site

OFFERING MEMORANDUM

Andrew FallonExecutive Managing Director703.787.4733 | afallon@calkain.com

CHANCELLOR SHOPPING CENTERTractor Supply / Aldi / Paragon GymnasticsFredericksburg, VA

Asset Summary

Annual Base Rent (2019) $788,996

Rent/Month $65,750

Rentable SF 102,548+/- SF

Avg. Rent/SF $7.69

Land Area 8.5+/- Acres

Tenants Tractor Supply Co./Aldi/Paragon Gymnastics

Guarantor Corporate & Franchisee

Ownership Type Fee Simple

Lease Type NN

Landlord Responsibilities Roof, Structure & Parking Lot

Investment Highlights

• 100% stabilized shopping center; early lease renewals

• Recent lease extensions by Aldi and Tractor Supply Co.

• Structured rent growth in all leases

• Additional value-add potential on 2 pad sites (separately available)

• 102,548 SF of retail on 8.5+/- acres

• Interstate location with 53,000 VPD

• Long-term leases with rent increases in the primary lease term & options

• Washington, DC MSA; Fredericksburg is one of the fastest growing regions in Virginia

Rent Schedule

Tenant Building SF

AnnualRent

Monthly Rent

Lease Term

RentCommencement

Lease Expiration Options Increases

Tractor Supply Co. 47,548 $436,996.20 $36,416.35 10+ Yrs 3/1/2014 03/31/2029 One (1), Five (5) Year See Page 3

Aldi Inc. 24,200 $120,999.96 $10,083.33 7 Yrs 11/4/2010 11/30/2025 Three (3), Five (5) Year See Page 3

Paragon Gymnastics, Inc. 30,800 $231,000.00 $19,250.00 3+ Yrs 7/1/2017 06/30/2022 Two (2), Five (5) Year See Page 4

Total 102,548 $788,996 $65,750

Asking Price$11,275,000

Cap Rate 7.00%

4171-4179 Plank RdFredericksburg, VA 20170

Calkain Companies | 2

Chancellor Shopping Center | Financial Summary

* Options * Options

About Tractor Supply Co.Tractor Supply Company is the largest operator of rural lifestyle retail stores in America. Founded in 1938 as a mail order tractor parts business, Tractor Supply Company (also referred to as TSC) owns and operates over 1,853 stores in 49 states, including 1,685 Tractor Supply stores and 168 Petsense pet specialty stores and e-commerce websites at TractorSupply.com and Petsense.com. Based in Brentwood, Tenn., Tractor Supply is a public company whose stock is traded on The Nasdaq National Market under the symbol TSCO.

At TSC, customers find everything they need to maintain their farms, ranches, homes and animals. As the inventors of the “do it yourself” trend, their customers handle practically every chore themselves, from repairing wells to building fences, welding gates together, constructing feed bins, taking care of livestock and pets, repairing tractors and trucks and building trailers for hauling.

TSC’s products include: clothing, equine and pet supplies, tractor/trailer parts and accessories, lawn and garden supplies, sprinkler/irrigation parts, power tools, fencing, welding and pump supplies, riding mowers and more.

Rent ScheduleTerm Increases Annual Rent Monthly Rent Rent/SF

6/1/2014 – 3/31/2022 - $436,996.20 $36,416.35 $9.19

4/1/2022 – 3/31/2029 5.26% $459,996.00 $38,333.00 $9.67

4/1/2029 – 3/31/2034* 12.35% $516,800.04 $43,066.67 $10.87

About Aldi Inc.Aldi is the common brand of two German discount supermarket chains with over 11,234 stores in 20 countries (1,750 store in the U.S.), and an estimated combined turnover of more than €50 billion.

Aldi stores display a variety of items at discount prices, specializing in staple items, such as food, beverages, toilet paper, sanitary articles, and other inexpensive household items. Many of its products are own brands, with the number of other brands usually limited to a maximum of two for a given item. This increases sales for each article, and lets Aldi shops be smaller than stores with more brand choice. This practice let Aldi avoid price tags, even before the introduction of barcode scanners. On many of its own brands, Aldi will place multiple barcodes on products to speed the check out process. In addition to its standard assortment, Aldi has weekly special offers, some of them on more expensive products such as electronics, tools, appliances, or computers, usually from in-house electronics brand Medion and workzone brand for tools.

Rent ScheduleTerm Increases Annual Rent Monthly Rent Rent/SF

11/4/2010 – 11/30/2020 - $120,999.96 $10,083.33 $5.00

12/1/2020 – 11/30/2025 21% $146,410.00 $12,200.83 $6.05

12/1/2025 – 11/30/2030* 10% $160,930.00 $13,410.83 $6.65

12/1/2030 – 11/30/2035* 10% $177,144.00 $14,762.00 $7.32

12/1/2035 – 11/30/2040* 10% $194,810.00 $16,234.16 $8.05

Actual Site

Actual Site

Calkain Companies | 3

Tenant Overview

* Options

Actual Site

Actual Site

Calkain Companies | 4

About Paragon GymnasticsParagon Gymnastics was established in 1993 in Fredericksburg, VA. Paragon offers gymnastics classes to children of all ages, tumbling for cheer and trampoline classes, boys and girls’ competitive gymnastics team, home school fitness, birthday parties, open gym, summer camps, and more special events.

The location at Chancellor Center has allowed Paragon to double the size of their preschool gym, have more space for recreational and competitive gymnastics, and add a ninja course, which combines elements of gymnastics, martial arts and freestyle movements.

Paragon Gymnastics is estimated to generate $1.3 million in annual revenues, and employs approximately 75 people at this location.

Rent ScheduleTerm Increases Annual Rent Monthly Rent Rent/SF

7/1/2018 – 6/30/2019 - $215,600.00 $17,966.67 $7.00

7/1/2019 – 6/30/2020 7.14% $231,000.00 $19,250.00 $7.50

7/1/2020 – 6/30/2021 6.67% $246,400.00 $20,533.33 $8.00

7/1/2021 – 6/30/2022 6.25% $261,800.00 $21,816.67 $8.50

7/1/2022 – 6/30/2023* 3% $269,654.00 $22,471.17 $8.75

7/1/2023 – 6/30/2024 3% $277,743.62 $23,145.30 $9.01

7/1/2024 – 6/30/2025 3% $286,075.93 $23,839.66 $9.28

7/1/2025 – 6/30/2026 3% $294,658.21 $24,554.85 $9.56

7/1/2026 – 6/30/2027 3% $303,497.95 $25,291.49 $9.85

7/1/2027 – 6/30/2028* 3% $312,602.89 $26,050.24 $10.15

7/1/2028 – 6/30/2029 3% $321,980.98 $26,831.75 $10.45

7/1/2029 – 6/30/2030 3% $331,640.41 $27,636.70 $10.76

7/1/2030 – 6/30/2031 3% $341,589.62 $28,465.80 $11.09

7/1/2021 – 6/30/2032 3% $351,837.31 $29,319.77 $11.42

Tenant Overview

4

95

64

Washington, DCAlexandria, VA

Baltimore, MD

Fredericksburg, VA

Richmond, VA

9581

64

66

Charlottesville, VA

Manassas, VA

Stafford, VA

Stafford 13 miles

Manassas 41 miles

Alexandria 50 miles

Washington 55 miles

Richmond 58 miles

Baltimore 100 milesDistance To

Subject Site

Calkain Companies | 5

Distance To

Keep all map content (except background) above this margin for website cropping purposes

Salem Elementary School

95

Subject Site

I-95

147,

000

VPD

Plank Rd 53,000 VPD

Spotsylvania Towne Centre

Spotsylvania Mall

1.2Mill SF

Central Park Shopping Center

Central Park200+

Retailers

4171-4179 Plank Rd | Fredericksburg, VA 20170

Keep all map content (except background) above this margin for website cropping purposes

Subject Site

Plank Rd 53,000 VPD

Sale

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hurc

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4171-4179 Plank Rd | Fredericksburg, VA 20170

Location Highlights

Avg HH Income $81,835 w/ 1 mile

53,000 VPD Pass the Site

100% Stabilized Shopping Center

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r Street View

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Market Overview

Fredericksburg, VA

Fredericksburg is an independent city in the Commonwealth of Virginia. Located 49 miles south of Washington, D.C. and 58 miles north of Richmond, Fredericksburg is part of the Northern Virginia region and is included in the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area.

Located near where the Rappahannock River crosses the Fall Line, Fredericksburg was a prominent port in Virginia during the colonial era. During the Civil War, the town, located halfway between the capitals of the opposing forces, was the site of the Battle of Fredericksburg and Second Battle of Fredericksburg, preserved in part as the Fredericksburg and Spotsylvania National Military Park. Tourism is a major part of the economy, with approximately 1.5 million people visiting the Fredericksburg area annually, including the battlefield park, the downtown visitor center, events, museums and historic sites.

Today, Fredericksburg is a thriving municpality and serves as the commercial center for the rapidly growing counties that surround it, which together is known as the Fredericksburg Region. Within the city of Fredericksburg itself major employers includethe University of Mary Washington, Mary Washington Healthcare, Geico and FBI National crime lab.

The City also is home to a highly successful, 2.4 million square foot open-air shopping center complex know an Central Park which is considered as one of largest shopping centers on the east coast. Across the street from Central Park , in Spotsylvania County, is a 1.7 million square foot, largely enclosed regional mall known as the Spotsylvania Town Center. Together these two centers, which are complimentary to each other in terms of merchandising, along with other retail in the immediate vicinity, represent a 4.5 million square foot retail district that reigns dominant within the Fredericksburg Region as the primary destination for shopping, dining and entertainment. It also represents one of the largest centers of commercial retail in the Washington DC Metropolitan Area.

Fredericksburg RegionIn addition to the City of Fredericksburg, the Fredericksburg Region, includes Spotsylvania, Stafford, King George and Caroline Counties. The current population of the Region is approximately 340,000 which has been growing at a rate roughly triple the national average ranking it as the fastest growing area in Virginia for the past 8 years. Its high rate of growth is expected to continue well into future causing its population by some estimates to swell to over 560,000 by the year 2030, which make it one of the fastest growing areas in the country.

A major driver of growth in the Fredericksburg Region is its appeal as a bedroom community. With the lure of affordable housing, high-quality public schools and an array of nearby recreational destinations, the area has and continue to attract residents from the densely populated and increasingly expensive “close-in” Virginia jurisdictions including Arlington, Fairfax and Prince William Counties and the City of Alexandria. In-migration to the area has been largely comprised of highly educated and relatively affluent households headed by individuals holding managerial and executive level positions.

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Market Overview

Fredericksburg, VAIn 2015, the median income within the Fredericksburg region was $84,791 which was 28% higher than the median for the state for and 52% higher than the median for the U.S. as a whole. 2015 average household income in the region was just over $100,000, with over 46% of the household earning more than $100,000 per year. Characteristic of bedroom communities, more than half the resident workforce commutes to jobs outside the Fredericksburg region, however because of its distance to the major employment centers in the Washington DC, and Richmond Metropolitan Areas, the average commuting time of residents in the Fredericksburg region ranks among the longest in the country. Fredericksburg is an independent city in the The Fredericksburg, VA region is one of the fastest growing areas in the U.S., with a highly educated and affluent population.

• The City of Fredericksburg, where the Chancellor Shopping Center is located, serves as the commercial center for the prospering four-county region.

• The I-95/Plank Road interchange where the Chancellor Shopping Center is located, serves as a major commercial center for the prospering four-county region.

• The Fredericksburg Region is home to 3 technology driven military bases including Dahlgren Naval Surface Warfare Center, Fort A.P. Hill, and Marine Corps Base Quantico.

Fredericksburg Region - 10 Largest Employers

• U.S Department of Defense

• Geico, Government Employees Insurance

• Stafford County Schools

• Spotsylvania County School Board

• U.S. Federal Bureau of Investigation

• Walmart

• Mary Washington University

• County of Spotsylvania

• County of Stafford

• University of Mary Washington

1 Mile 3 Miles 5 MilesPopulation2018 Population 8,272 51,667 113,905

2023 Population 8,639 54,736 122,215

2018 Median Age 39.8 34.9 35.2

Households2018 Total Households 2,956 18,459 40,700

2023 Total Households 3,078 19,463 43,507

Median Household Income2018 Median HH Income $64,916 $71,419 $75,648

2023 Median HH Income $74,094 $80,910 $84,755

Average Household Income2018 Average HH Income $81,835 $88,212 $94,176

2023 Average HH Income $94,498 $103,023 $110,349

Population 113,905

Median Age 35.2

Avg HH Income $94,176

Total Businesses 4,937

Total Employees 63,412

Net Worth $152,781

5 Mile Radius | Demographics

95

Location Overview, 1/3/5 Miles

Calkain Companies | 10

About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.

Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.

At Calkain, our foresight and innovation are leading the net lease investment industry.

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Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

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