Walgreens Net LeaseInvestment Offering

2646 Darlington RoadBeaver Falls, PA 15010

Photo is for representation only

NAI James E. Hanson (“Broker”) has been appointed as the exclusive broker for this investment opportunity.

This Offering Memorandum has been prepared by Broker for use by the principal (“Principal”) to whom Broker has provided this Offering Memorandum. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by Broker and executed by Principal prior to delivery of this Offering Memorandum.

Although the information contained herein is based upon sources believed to be reasonably reliable, Owner and Broker, on their own behalf, and on behalf of their respective officers, employees, shareholders, partners, directors, members and affiliates, disclaim any responsibility or liability for inaccuracies, representations and warranties (expressed or implied) contained in, or omitted from, the Offering Memorandum or any other written or oral communication or information transmitted or made available to the recipient of this Offering Memorandum. In amplification of and without limiting the foregoing, summaries contained herein of any legal or other documents are not intended to be comprehensive statements of

the terms of such documents but rather only outlines of some of the principal provisions contained therein, and no representations or warranties are made as to the completeness and/or accuracy of the projections contained herein. Prospective purchasers of the Property should make their own investigations and conclusions without reliance upon this Offering Memorandum, the information contained herein or any other written or oral communication or information transmitted or made available. Additional information and an opportunity to inspect the Property will be made available upon written request by interested and qualified prospective purchasers.

Owner expressly reserves the right, exercisable in Owner’s sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Owner and Broker each expressly reserves the right, exercisable in their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. Broker is not authorized to make any representations or agreements on behalf of Owner. Owner shall not have any legal commitment or obligation to

any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed, delivered and approved by Owner and the other party thereto and any conditions to Owner’s obligations hereunder have been satisfied or waived. If you have no interest in the Property at this time, return this Offering Memorandum immediately to:

NAI James E. Hanson 235 Moore Street Hackensack NJ 07601

Disclaimer

Section 01Executive Summary

Section 02Property Overview

Section 03Lease & Option TermsLL & Tenant Responsibilities

Section 04Area Information/Demographics

Section 05 About Walgreens

Section 06 Contact Information

Table of Contents

NAI James E. Hanson is exclusively offering for sale this Walgreens facility at 2646 Darlington Road in Beaver Falls, Pennsylvania. This represents a unique investment opportunity to own a fee-simple (land and building) NNN Walgreens. The lease is absolute triple-net with no landlord obligations, and is corporately guaranteed by Walgreen Co. The passive nature of this lease combined with the credit-worthy corporate guaranty make this an ideal 1031 replacement property or acquisition for an investor desiring a passive real estate investment. Walgreens commenced rent in February of 2008 and has approximately 15 years of guaranteed lease term remaining prior to entering option periods.

The property is located on heavily trafficked Darlington Road in the retail center of Beaver Falls, and is directly across the street from Walmart and Home Depot (see retail map in Section 04).

Term: 75 Years - Tenant has termination rights at the end of 25 years and each 5 years thereafter.Start Date: 2/1/2008 First Right of Termination: 1/31/2033 Remaining Term: 15NOI: $395,000

Executive Summary

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Address 2646 Darlington RoadCity/State Beaver Falls, PA 15010Ownership Fee SimpleLot Size (Acres) 1.8Building Size (Sq. Ft.) 14,490Lease Beginning September 1, 2008Lease Expiration August 31, 2033Rent Commencement September 1, 2008Renewal Options 10 @ 5 YrsCredit Rating BBBLease Type NNNAnnual Base Rent $395,000Operating Expenses $0.00Net Operating Income $395,000

Rent Escalations $395,000 (flat)

Additional Income:

Percentage Rent: A calculation of percentage rent which is 2% of gross sales except gross sales on food items and prescriptions; plus a 0.5% of gross sales on food items and prescriptions…to the extent that such calculations exceed the fixed rent any year then the Landlord will get same. Tenant has the obligation within 45 days at the end of each lease year to provide a statement of the total amount of gross sales for the lease year.

Address2646 Darlington RoadBeaver Falls, PA

Year Constructed2008

Rentable Square Feet14,490

Lot Size1.8 acres

Type of LeaseNNN

NOI$395,000

Cap Rate6%

Offered At$6,583,334

Property Overview

Photo is for representation only

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Property Aerial

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Beaver County Airport

retailers logos are approximate

Property Map

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Pharmacies In the Area

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MAP# COMPANY NAME ADDRESS CITY1 Beaver Falls Health Mart Pharmacy 1314 7th Ave Beaver Falls2 Brighton Health Mart Pharmacy 525 5th Ave New Brighton3 Brighton Pharmacy 1314 7th Ave Beaver Falls4 CVS/Pharmacy 2556 Constitution Blvd # 3 Beaver Falls5 Giant Eagle Pharmacy 2650 Constitution Blvd Beaver Falls6 Giant Eagle Pharmacy 289 Route 288 Ellwood City7 Giant Eagle Pharmacy 111 W Madison St Rochester8 Hometown Apothecary 807 3rd Ave New Brighton9 Rite Aid 115 5th St Ellwood City

10 Rite Aid 351 Brighton Ave Rochester11 Rite Aid GNC Live Well Store 813 3rd Ave New Brighton12 Walgreens 2646 Darlington Rd Beaver Falls13 Walgreens 100 Rhode Island Ave Rochester14 Walmart Pharmacy 100 Chippewa Town Ctr Beaver Falls

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About Beaver Falls, PA

Beaver Falls is a city in Beaver County, Pennsylvania, United States. The population was 8,987 at the 2010 census. It is located 31 miles northwest of Pittsburgh. The city has a total area of 2.3 square miles.

The closest airport to the city is Beaver County Airport. Though located in Allegheny County, Pittsburgh International Airport is within close proximity of Beaver Falls, and is easily accessible by way of I-376 (former PA 60).

I-376 is located just west of the city, and is accessible from Beaver Falls via PA 51, PA 551, and PA 588. PA 18 is the main road through Beaver Falls, and becomes the city’s Main Street when going through downtown. PA 65 is located southeast of Beaver Falls in New Brighton. Plus, the Pennsylvania Turnpike is located just north of Beaver Falls, providing access to the entire state. PA 251 is a small highway located on the western edge of the city in the borough of West Mayfield.

Major freight haulers CSX Transportation and the Norfolk Southern Railway (NS) both have mainlines running through Beaver Falls. NS also has a subsidiary line along the east side of Beaver River. Amtrak’s Capitol Limited passes through the city via NS tracks without stopping. Amtrak’s Broadway Limited and successor Three Rivers also passed through town until 2005.

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1-3-5 mile Demographics

DEMOGRAPHICS

Population

Households

Avg. Income

1 Mile 3 Mile

s

5 Mile

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2,637 19,754 39,361

1,105 7,993 40,216

$79,329 $79,632 $72,090

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1 Mile 3 Miles 5 Miles

1-3-5 mile Demographics

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© 2012-2017 Digital Map Products. All rights reserved. 1

Demographics 2646 DARLINGTON RD BEAVER FALLS, PA 15010-1240

Description 1 Mile 3 Mile 5 MileArea & Density :

Area (Square Miles) : 4.002862 45.345504 107.930042

Density(Population Per Square Mile) : 659 433 362.8 31 Arbusto 31 Arbusto 31 Arbusto

Population By YearPopulation (1990) : 2,996 20,054 43,616

Population (2000) : 2,586 19,776 41,007

Population (2010) : 2,637 19,754 39,361

Population (Current) : 2,638 19,633 39,154

Population (5 Yr. Forecast) : 2,712 20,154 40,216

Percent Growth (Current Yr./Previous Yr.) : -.01 -.51 -.5

Percent Forecast (5 Yr. Forecast/Current Yr.) : 2.86 2.69 2.76 31 Arbusto 31 Arbusto 31 Arbusto

Households By YearHouseholds (1990) : 1,109 7,673 16,787

Households (2000) : 1,046 7,598 15,951

Households (2010) : 1,105 7,993 16,022

Households (Current) : 1,100 7,919 15,879

Households (5 Yr. Forecast) : 1,144 8,230 16,508

Percent Growth (Current Yr./Previous Yr.) : -.49 -.88 -.9

Percent Forecast (5 Yr. Forecast/Current Yr.) : 4.02 3.91 3.97 31 Arbusto 31 Arbusto 31 Arbusto

© 2012-2017 Digital Map Products. All rights reserved. 2

Description 1 Mile 3 Mile 5 MileGeneral Population CharacteristicsMale : 1,270 9,471 18,934

Female : 1,368 10,162 20,220

Density : 659 433 362.8

Urban : 2,135 14,824 29,425

Rural : 503 4,809 9,729 31 Arbusto 31 Arbusto 31 Arbusto

General Household CharacteristicsHouseholds (Current) : 1,100 7,919 15,879

Families : 695 4,986 9,853

Average Size of Household : 2.35 2.34 2.36

Median Age of Householder : 57 57 56

Median Value Owner Occupied ($) : 152,115.69 125,921.99 112,525.31

Median Rent ($) : 559.99 565.85 527.91

Median Vehicles Per Household : 2 2 2 31 Arbusto 31 Arbusto 31 Arbusto

General Housing CharacteristicsHousing Units : 1,180 8,490 17,487

Owner Occupied Units : 781 5,641 10,764

Renter Occupied Units : 319 2,278 5,115

Vacant Units : 80 571 1,608 31 Arbusto 31 Arbusto 31 Arbusto

Population By RaceWhite Alone : 2,538 18,358 34,940

Black Alone : 32 688 2,744

Asian Alone : 13 162 268

Native American and Alaska Native Alone : 2 11 51

Other Race Alone : 12 64 119

Two or More Races : 41 350 1,032 31 Arbusto 31 Arbusto 31 Arbusto

Population By EthnicityHispanic : 32 213 436

White Non-Hispanic : 2,515 18,228 34,677 31 Arbusto 31 Arbusto 31 Arbusto

General Income CharacteristicsMedian Household Income ($) : 63,170.48 64,349.61 58,355.90

Total Household Income ($) : 87,262,095 630,601,858 1,144,716,202

Average Household Income ($) : 79,329 79,632 72,090

Per Capita Income ($) : 33,079 32,119 29,236 31 Arbusto 31 Arbusto 31 Arbusto

Consumer ExpendituresTotal Consumer Expenditures ($) : 67,559 472,715 906,745

Total Retail Sales ($) : 1,036 44,280 88,01131 Arbusto 31 Arbusto 31 Arbusto 31 Arbusto

Employment By Place Of BusinessTotal Employees : 1,057 7,546 14,366

Total Establishments : 2 109 267

The Walgreen Company is the largest drug retailing chain in the United States. Currently, the company operated 8,175 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office is in the Chicago suburb of Deerfield, Illinois.

Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 400,000* people. The company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has over 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

On September 19th, 2017 Walgreens Boots Alliance announced it received final approval for the acquisition of over 1,900 Rite Aid stores.

Source: seeking alpha.com

About Walgreens

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NASDAQ: WBA

$78.15OCT 3, 2017

Daily High: $77.07 Low: $75.08

52-Week High: $88.00 Low: $75.18

+$1.11(1.42%)

Contact Information

For more information call 201-488-5800

Darren M. Lizzack, msre Associate Vice President x104 dlizzack@naihanson.com

Randy Horning, msre Senior Associate x123 rhorning@naihanson.com

Mike Guerra Sales Associate x196mguerra@naihanson.com

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235 Moore Street • Hackensack, NJ • 201 488 5800 | 10 Lanidex Plaza West • Parsippany • 973 463 1011 | naihanson.comTHE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES CONSIDERED TO BE RELIABLE, BUT NO GUARANTEE OF ITS ACCURACY IS MADE BY NAI JAMES E. HANSON

Peter O. Hanson Chairman x128phanson@naihanson.com