This document provides details on a proposed retail lease up plan for a property called Montgomery Heights. It would divide the 9,178 square feet of retail space into 4 units ranging from 1,521 to 3,093 square feet. Tenants being considered include a pre-school, restaurant, and pharmacy. Financial details include projected rents, tenant start-up budgets, sources and uses of funds, and considerations around the potential pros and cons of the lease up plan.

1. Montgomery
Heights
PENNROSE PROPERTIES
RETAIL LEASE UP PROSPECTUS
March 9, 2012

7. Rentable SF’s
Retail Space Frontage Rentable SF's % of Total
A Montgomery St. 1,521 17%
B Montgomery St. 1,914 21%
C Dr. MLK Blvd 3,093 34%
D Dr. MLK Blvd 2,650 29%
9,178 100%

8. Lease Plan
POTENTIAL TENANTS
• Space A&B: Pyramid Academy Pre-
School
• Space C: Indigo Heights Restaurant
• Space D: Pharmacy/Convenience
Store

9. Indigo Heights
• Space C - Corner Montgomery & MLK (3,093 SF)
• Rent 15 PSF (11 Base + 4 CAM)
• Restaurant – sitdown/takeout, BBQ & Soul Food
• Owner Lance Knowling veteran of restaurants in
Maplewood and Montclair

10. Pyramid Academy
• Spaces A&B - Both Montgomery St (3,435 SF)
• Rent: 20 PSF (16 Base + 4 CAM)
• Daycare ~ 70 Students @ full capacity
• Would use playground
• Husband-wife owners have operated similar facility
in East Orange for 7 years

11. Koffi Pharmacy
• Space D – Dr. MLK Boulevard (2,650 SF)
• Rent 20 PSF (16 Base + 4 CAM)
• Neighborhood pharmacy with both walk-in and
mail order prescription business
• Some space dedicated to convenience items
• Proprietor has 15+ years experience managing
pharmacies, this would be his first venture

12. Start Up Budget
Sources
"Retail Fitout Budget" 300,000
Partner Equity 21,084
Rental Receipts (Year 1) + Security Deposits 62,214
TOTAL 383,298
Uses
Vbox budget 188,000
Contingency @ 5% 9,400
Construction Management Services 15,000
Broker Commissions 5% 58,898
Working Capital, Free Rent, etc
Attorney / Leasing 12,000
Additional Tenant Start Up 100,000
Daycare (Repayable) 30,000
Pharmacy
Restaurant 70,000
Funds Remaining 383,298

13. Pros & Cons
PROS CONS
• All neighborhood- • Not credit tenants
serving businesses • All need funds for fit-
• Would meet needs of out/start up
community
• Will require investment
• Retail activity will help
generate buzz & bridge from landlord beyond
to Montgomery II $300,000 “tenant fit-
• Ability to adjust out” budget included
financing model to in Montgomery St
maximize return budget