TAKE 5 OIL CHANGE GROUND LEASE - HARRISONBURG, VA

Harrisonburg is the commercial and cultural hub of the central Shenandoah Valley in western Virginia. The city sits at the intersection of Interstate 81 and U.S. Route 33 (East Market Street), providing direct access to Staunton, Charlottesville, Richmond, and the Washington, D.C. metropolitan area. Interstate 81 serves as the primary north-south freight and commuter corridor linking the mid-Atlantic to the Southeast, carrying 48,000 vehicles per day through the Harrisonburg interchange. This connectivity positions the city as a regional gateway for both commerce and consumer spending. The Harrisonburg metropolitan area ranks as the second-fastest-growing metro in Virginia and was recognized as one of the top twenty emerging metros in the United States. Job creation, wage growth, real retail sales, and building permit activity continue to outpace most of the Commonwealth on a percentage basis. The metro area population exceeds 140,000, with an estimated market-served population of 261,000 driven by Harrisonburg’s status as a regional shopping and services destination that attracts consumers from 20 or more miles away. Four colleges and universities anchor the local economy: James Madison University (22,000 students), Blue Ridge Community College (7,315 students), Eastern Mennonite University (1,870 students), and Bridgewater College (1,800 students). This concentration of higher-education institutions contributes a stable year-round population base and a steady pipeline of consumer demand. Healthcare is another major economic driver. Sentara RMH Medical Center, a 288-bed regional hospital located less than three miles from the subject property, is one of the largest employers in the metro area. The combination of education, healthcare, agriculture, and a growing technology sector produces a diversified employment base that insulates the market from single-industry risk. Within the immediate retail corridor along East Market Street, more than 3 million square feet of retail space serves the city and the surrounding region, anchored by national tenants such as Walmart, Target, Costco, Home Depot, Lowe’s, and Kroger. This density of destination retail reinforces the subject property’s location as a high-frequency, high-visibility service site.The property sits on East Market Street (Route 33), the primary commercial corridor in the market area, with traffic counts of 29,000 vehicles per day. As an outparcel to Skyline Village Shopping Center the subject property benefits from daily traffic generators in most of the most visited centers in Harrisonburg. The tenant operates under an absolute triple-net ground lease, assuming full responsibility for real estate taxes, property insurance, utilities, maintenance, and all common area obligations. The lease features 10% rent escalations every five years through the initial term and all four renewal options, delivering predictable income growth over a potential 35-year total occupancy. The lease enters Year 5 in April 2026, with the first contractual rent increase taking effect on April 13, 2027 — lifting the annual base rent from $110,000 to $121,000, a 10% increase.