Investment Overview

INVESTMENT SUMMARY: Marcus & Millichap is pleased to present Waterford Place, a 7,637-square-foot retail center located in the McKees Rocks area of Pittsburgh, Pennsylvania. Originally constructed in 2005, the property is 100% occupied by a complementary mix of service- oriented and e-commerce-resistant tenants, including DaVita Dialysis, Bruster’s Real Ice Cream, and Burgh’s Bagels. Waterford Place has demonstrated exceptional tenant stability, with approximately 80% of its gross leasable area occupied by tenants that have operated at the property for more than 10 years. This established operating history, combined with the necessity- and service-based nature of the tenancy, provides investors with durable cash flow and reduced exposure to discretionary retail trends. Despite its strong occupancy and positioning within an undersupplied submarket, Waterford Place’s rents average just $18.68 per square foot—well below prevailing market levels. This favorable basis creates a clear path to meaningful rental growth while also providing a substantial hedge against tenant relocation. Approximately 80% of the GLA is subject to contractual rent increases during the current lease terms and renewal options, while the remaining space has no renewal options, allowing ownership to negotiate market- based rents upon lease expiration. The property has a weighted-average lease term of over 3.5 years. All leases are structured on a landlord-favorable triple-net basis, with tenants reimbursing real estate taxes, insurance, common-area maintenance expenses, and the majority of third-party management costs. This structure limits expense leakage and provides investors with stable, passive income and operational simplicity through the property’s low-tenant-count configuration. DaVita Dialysis: is the property’s corporate-operated anchor, occupying 3,593 square feet and operating since 2014. DaVita recently extended its lease for an additional five years through 2029 and currently pays a modest rent of $14.29 per square foot, with 2.5% annual increases during the existing term and 10% increases throughout its renewal options. The property houses the only DaVita location within approximately a 12-minute drive, reinforcing the site’s importance within the company’s local treatment network. DaVita Inc. is publicly traded under the ticker NYSE: DVA, has a market capitalization exceeding $12.37 billion, and is one of the world’s largest providers of kidney- care services, operating more than 2,657 outpatient centers in the United States and approximately 585 international locations. Bruster’s Real Ice Cream: recently exercised a new five-year renewal extending its lease through 2032, demonstrating its continued commitment to the property. The tenant has operated at Waterford Place since 2016, and its renewed term includes two contractual rent increases. Bruster’s also retains two additional five-year renewal options with 2% annual rent escalations. The company operates more than 220 independently owned locations across 25 states, and Waterford Place is its only location within approximately a 15-mile radius. The lease is personally guaranteed by an established local franchisee, providing an additional layer of security for ownership. Burgh’s Bagels: joined Waterford Place in 2022 under a six- year lease extending through 2028. The tenant currently pays $23.00 per square foot, providing tangible evidence of achievable rental growth at the property and supporting the opportunity to mark the center’s legacy rents closer to market over time. Burgh’s has no remaining renewal options, allowing ownership to negotiate market-based terms upon lease expiration. The restaurant has quickly established itself as a popular local concept and maintains a 4.5-star rating based on more than 200 customer reviews LOCATION SUMMARY: Waterford Place is strategically positioned along Steubenville Pike, a primary east- west commercial thoroughfare which sees over 22,369 vehicles per day. The property serves as an important connection between the established Robinson retail corridor and the area’s densely populated residential communities, allowing it to draw from a broad and consistent customer base. The Robinson retail corridor is one of the Pittsburgh region’s most prominent shopping and dining destinations, encompassing more than five million square feet of retail space. The corridor features a substantial concentration of national retailers, including Costco, IKEA, Walmart, Target, Home Depot, Giant Eagle Market District, Home Depot, Sam’s Club, majority of national small shop brands, and renowned restaurant brands such as Chick Fil-A, Shake Shack, Eat’n Park, McDonald’s, Wendy’s, Mission BBQ Beyond its significant retail concentration, the surrounding area includes more than 15.6 million square feet of office, industrial, and medical space, generating a substantial daytime population. Major employment drivers include the FedEx Ground headquarters, numerous regional businesses, and Pittsburgh International Airport. Waterford Place is positioned to capture consistent demand from nearby residents, daily commuters, destination-oriented retail customers, airport-related traffic, and the area’s sizable daytime workforce. The surrounding trade area is both affluent and well populated, with 4,514 residents within one mile, 25,844 residents within three miles, and 111,485 residents within five miles. Average household income within the surrounding area exceeds $131,408. McKees Rocks is an established Allegheny County community located just west of Downtown Pittsburgh, with convenient access to Route 51, Interstate 79, Interstate 376, Pittsburgh International Airport, and the broader regional transportation network. The community benefits from its position within the Pittsburgh MSA, the nation’s 28th-largest metropolitan area, with approximately 2.42 million residents. The regional economy is supported by a diverse mix of healthcare and life sciences, higher education and research, financial and business services, advanced manufacturing, energy, technology, artificial intelligence, and robotics. Major institutions and employers—including UPMC, Allegheny Health Network, PNC Financial Services, Carnegie Mellon University, and the University of Pittsburgh—provide the region with a large, highly skilled, and diversified employment base.