110 NEWTOWNE BLVD Pocomoke City MD 21851-2703

The Dowd Companies is pleased to offer for sale the fee simple interest (land & building) in a Free Standing, newly leased, Harbor Freight Tools building. The property is located near a Wal-Mart Supercenter and Lowe’s Home Improvement Store just off Ocean Highway on Newtowne Blvd. in Pocomoke City, Maryland in Worchester County. 9 years remain on the original base lease term which commenced in June 2021. Although it is a modified gross lease the tenant is paying well below market rent of $6.46 PSF and an effective rent of $4.59. The lease features favorable rental increases at the beginning of each 5-Year option period, which generates long-term steady NOI growth and hedges against inflation.

Harbor Freight Tools is a privately owned discount tool and equipment retailer, headquartered in Calabasas, CA., that has been in operation since 1977 and which

currently has over 1100 stores in 48 states. Privately-held Harbor Freight Tools has a Ba3 rating from Moody’s and a BB- rating from Standard & Poors. Harbor Freight Tools is considered to be the leading discount tool retailer in the United States with over 40 million customers and 21,000 employees. Harbor Freight Tools buys tools and equipment directly from manufacturers and sells those items under privately- labeled in-house brands as a way to pass on savings to its customers.

Corporate Guaranteed Lease | Options To Extend | Scheduled Rental Increases

• Harbor Freight Tools Usa, Inc. - Corporate Guaranteed Lease

• 10 Years Remaining On Original Lease Term With 5 (5-Year) Option Periods To Extend

• Lease Features Rental Increases At The Beginning Of Each Option Period

• Tenant Is Paying Well Below Market Rent

Modified Gross Lease Structure | Fee Simple Ownership | Landlord Responsibilities | New Lease

• Tenant Responsible For Hvac And Premises Interior

• Roof, Structure, And Common Areas Landlord Responsibilities

Major Retail Corridor W/ National Tenants

• The Subject Property Is Located Just Off Ocean Drive (19,186 Vpd)

• In The Major Retail Node With Wal-Mart Supercenter And A Lowe’S Home Improvement Store

Solid Local Demographics In The Trade Area

• 14,792 Residents And 7,498 Employees Support The 10-Mile Trade Area

• Residents Within 10-Miles Of The Site Boast A Healthy Average Household Income Of $65,838