INVESTMENT HIGHLIGHTS

• 8 Years Remain on Low $2.00 PSF Rental Rate Lease
• Rental Increase of 25% forthcoming will boost average cap rate over base term to 6%
• Investment Grade Tenant; Rated “BBB” by Standard & Poor’s
• Phillipsburg Mall benefits from anchors including Bon Ton and Sears
• Major Shopping Destination in Warren County, New Jersey
• LEED Certified Building (Silver Level)
• Strong Traffic Counts on Highway 22 of 37,000 Vehicles Per Day
• Major Shopping Destination in Warren County, New Jersey

Fee simple Kohl’s Department store, attached to the Phillipsburg Mall in Phillipsburg (Warren County), New Jersey. The tenant leases a 82,825-square foot building, which was recently condominimized off from the mall. The lease is backed by Kohl’s Department Stores, Inc., rated “BBB” by Standard and Poor’s. While there are currently 8 years remaining on the lease, the investor has the benefit of a strong rent to sales (there is sales reporting in this location) and an exceptionally low rental rate. It is estimated that the rental rate in this box today could be two to four times the current rate the tenant is paying. This provides immense intrinsic value to the investor focused on the real estate’s fundamentals. However, the investor will also benefit from a rental increase of 25% to occur in year 16 of the lease. At the asking price, an investors yield will increase to 6.67% in a few years and on average an investor will benefit from a 6.00% cap rate over the base term. With the low rent to sales ratio that Kohl’s boasts in this location and possibility of the Mall’s redevelopment, it is highly likely Kohl’s will renew in this location.