Investment Overview

NEW 20-YEAR CORPORATE GROUND LEASE – The Tenant, Wawa Inc., is subject to a new 20-year NNN ground lease expected to open in July 2025. The lease features 10 percent (10%) rental increases every five years during the base term and in each of the six, five-year options, providing revenue growth and a hedge against inflation. Wawa will operate in a 5,915-square-foot store with eight fueling pumps. Wawa is also permitted to install and operate EV Charging Stations. The Tenant boasts an investment grade shadow rating of “BBB+” by Fitch. RECENTLY COMPLETED $23 MILLION BRIDGE PROJECT DRIVES NEW DEVELOPMENTS – A new four-lane roadway and bridge known as Crossover Boulevard was opened to the public in the Fall of 2021, after about a decade of planning. The project, which cost $23.3 million, was designed to ease traffic congestion and prepare for future development in Eastern Frederick County. It provides a more direct means of access for residents on the East side of I-81 (63,000 VPD) and allows convenient access into the Southern end of Winchester’s dominant commercial cluster. A variety of new developments are abundant on the opposite side of I-81 from the site. This bridge has been the catalyst for Wawa’s selection of this site, and the various developments around it. CROSSOVER BOULEVARD’S COMMERCIAL EXPANSION – The site is part of a project called The Shoppes at Crossover. It is a new mixed-use development project immediately off the Western side of I-81 at the Crossover Boulevard bridge. Wawa will occupy a 2+ acre pad with frontage on Crossover Boulevard (16,500 VPD) at its intersection with Legge Blvd (est. 5,000 VPD). Behind the site is a soon-toopen Home2Suites by Hilton, and the business headquarters for Trex (200 employees). Adjacent to Wawa is Winchester Station, containing big box retailers such as Bob’s Discount Furniture, Petco, and Ulta, with Olive Garden occupying a pad site. Across the street is a newly opened The Learning Experience child care facility, 311 new apartments units to be constructed, a Hang 10 Car Wash, TGI Friday’s, and a newly opened Navy Federal Credit Union. RAPIDLY GROWING COMMUNITY IN THE WASHINGTON, DC METRO AREA – Winchester is an exurban community of the greater Washington, DC area. This region of Virginia has boomed over the past decades as the Base Realignment and Closure (BRAC) was authorized in 2005 by the United States Department of Defense (DoD) to reorganize its military installations outside the immediate Washington, DC area. This has led to significant housing and job relocations to areas like Winchester, which are slightly over an hour from the Capital. New infrastructure projects, such as the Crossover Bridge, have occurred to accommodate increases in traffic. STRONG DEMOGRAPHICS – Within a 5-mile radius of the property, average household income exceeds $115,000 and population growth is expected to be about 3.5% over the next 5 years. To the east of I-81 towards the regional airport, approximately 115 acres are available and approved for various further developments providing for office, multi-family, and retail uses with flexible site options and segmentation. There are three new housing projects across I-81 that were recently completed. This region has a bright future! BEST-IN-CLASS RETAILER – Wawa, Inc. is a best-in-class tenant within the highly sought-after convenience sector and a tier one retailer that is both online and recession resistant. Wawa operates over 1,000 locations in the Mid-Atlantic and Florida and reported more than $18.8 Billion in Gross Annual Sales Revenue. Wawa is currently #2 on CSP Magazine’s “Fuels 50” list which ranks convenience store brands by Market efficiency, as well as Food & Wine Magazine’s America’s Best Convenience Stores, 2nd only to Texas-based Buc-ee’s on both. In 2023, Forbes Magazine, ranked the company number 20 in its list of America’s Largest Private Companies. The company maintains a shadow credit rating from Fitch which is investment grade.