OFFERING MEMORANDUM

SINGLE TENANT GROCERY FOOD GIANT PADUCAH, KY NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com TENANT PROFILE // Food Giant

Houchens Industries is an American employee-owned company, founded in 1918 by Ervin Houchens in rural Barren County, . The company is headquartered in Bowling Green, Kentucky. The company runs about 425 grocery and convenience stores. Houchens owns 24 companies, 8 brands with approximately 18,000 employees.

The company is best known as a grocer, owning and operating convenience stores (Jr. Food Stores, Tobacco Shoppe) and (Houchens Markets, IGA, Save-A-Lot, Mad Butcher and most recently Price Less Foods/ Price Less IGA). In 2004, Houchens acquired Food Giant supermarkets, which operates stores under the Food Giant, Market Place and name.

In recent years, Houchens Industries has diversified greatly, with acquisitions of a Bowling Green-based construction company, as well as recycling, , cigarette manufacturing, and warehousing.

Price Less Foods/Price Less IGA is the newest brand of stores to join Houchens.

PROPERTY PHOTOS 3 4 PROPERTY PHOTOS PROPERTY PHOTOS 5 6 MARKET AERIAL 184 Miles 287 Miles 305 Miles

PADUCAH, KENTUCKY

200 Miles 248 Miles

130 Miles

170 Miles

MARKET AERIAL 7 INVESTMENT OVERVIEW 6135 Benton Road Paducah, Kentucky 42003

Marcus & Millichap is pleased to present the exclusive listing for the Food Giant located at 6135 Benton Road in Paducah, Kentucky. The property consists of a 27,371 square-foot building on approximately a 2.63-acre parcel.

Food Giant has operated at this location since 2003. The tenant has approximately four (4)-years remaining on the absolute-net lease with no options remaining. Food Giant currently pays $132,000 in annual rent, which equals $4.82 per square foot.

The property is within proximity to multiple local schools with over 880 combined students. The property is located on Benton road with over 7,200 vehicles per day and is near Interstate 24 with over 34,300 vehicles per day. The local market consists of over 16,900 residents and over 6,900 households with an AHHI in excess of $65,600 per year within five (5)-miles. INVESTMENT HIGHLIGHTS Absolute-Net (NNN) Lease | Long-Term Occupancy

Tenant Remodeled Ace Hardware Department in 2018 | Tenant Installed New Roof in 2010

Approximately Four-Years Remaining with No Options | Low Rent Per Square Foot

Situated Along KY 284 with Great Visibility, Signage and Easy Access

Positioned Near Multiple Schools and I-24 with Over 34,000 VPD

Just Over Two-Miles from a New Mercy Health Development

Average Household Incomes Exceed $82,000 within Three-Miles

Located within County Seat | 130- Miles Northwest of Nashville, TN

8 INVESTMENT OVERVIW PRICING DETAILS // Food Giant

THE OFFERING LEASE SUMMARY

Tenant Food Giant Property Subtype Net Leased Grocery Store Property Address 6135 Benton Road Paducah, Kentucky 42003 Guarantor Food Giant Supermarkets, Inc. Price $1,389,000 Operator 100+ Units Cap Rate 9.50% Lease Type Absolute-Net (NNN)

PROPERTY DESCRIPTION Lease Commencement November 1, 2003

Year Built / Renovated 1975 / 2003 Lease Expiration November 31, 2023 Gross Leasable Area 27,371 SF Term Remaining on Lease Over Four (4)-Years Zoning Retail Renewal Options Zero Type of Ownership Fee Simple

Lot Size 2.63 +/- Acres Landlord Responsibilities None Right of First Refusal/Offer No LEASE SUMMARY

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

Current - November 1, 2023 $132,000 $11,000 $4.82

FINANCIAL SUMMARY 9 SUBJECT DEMOGRAPHICS // Food Giant PROPERTY

49.3%

16,959 GENDER Total Daytime Population Within 5-Mile Radius 50.7%

3-Mile Radius 6,976 Average$65,635 Household Income within Total Households within 5-Mile Radius 5-Miles Radius 5-Mile Radius

10-Mile

10 DEMOGRAPHICS POPULATION 3 Mile 5 Miles 10 Miles HOUSEHOLD EXPENDITURE 3 Mile 5 Miles 10 Miles 2023 Projection Total Average Household Retail Expediture $67,001 $58,278 $56,829 Total Population 7,538 16,887 66,740 Consumer Expenditure Top 10 Catgories 2018 Estimate Housing $15,388 $13,387 $13,258 Total Population 7,519 16,959 66,937 Transportation $14,758 $12,716 $12,133 2010 Census Shelter $7,775 $6,752 $6,762 Total Population 7,516 16,889 66,693 Food $7,157 $6,341 $6,145 2000 Census Personal Insurance and Pensions $5,355 $4,291 $4,168 Total Population 7,348 16,969 67,016 Health Care $4,926 $4,240 $4,115 Current Daytime Population Utilities $4,253 $3,778 $3,679 2018 Estimate 7,272 14,689 79,003 Entertainment $2,713 $2,344 $2,273 HOUSEHOLDS 3 Mile 5 Miles 10 Miles Cash Contributions $2,478 $1,972 $1,902 2023 Projection Household Furnishings and Equipment $1,686 $1,412 $1,372 Total Households 3,144 6,998 28,896 POPULATION PROFILE 3 Mile 5 Miles 10 Miles 2018 Estimate Population By Age Total Households 3,114 6,976 28,720 2016 Estimate Total Population 7,519 16,959 66,937 Average (Mean) Household Size 2.44 2.42 2.29 Under 20 23.80% 24.07% 24.02% 2010 Census 20 to 34 Years 15.53% 16.46% 17.44% Total Households 3,105 6,937 28,590 35 to 39 Years 5.90% 6.10% 6.08% Occupied Units 40 to 49 Years 12.41% 12.55% 12.16% 2023 Projection 3,144 6,998 28,896 50 to 64 Years 22.77% 22.61% 21.51% 2018 Estimate 3,454 7,897 32,309 Age 65+ 19.61% 18.21% 18.80% HOUSE HOLDS BY INCOME 3 Mile 5 Miles 10 Miles Median Age 43.73 42.71 42.06 2018 Estamate Population 25+ by Education Level $150,000 or More 9.11% 5.45% 6.18% 2018 Estimate Population Age 25+ 5,338 11,988 47,217 $100,000 - $149,000 15.88% 10.91% 11.71% Elementary (0-8) 3.36% 3.88% 3.53% $75,000 - $99,999 14.54% 11.46% 10.67% Some High School (9-11) 6.80% 9.83% 8.12% $50,000 - $74,999 22.16% 22.52% 19.73% High School Graduate (12) 29.91% 35.69% 32.80% $35,000 - $49,999 12.40% 14.10% 12.95% Some College (13-15) 24.67% 23.54% 23.90% Under $35,000 25.90% 35.57% 38.76% Associate Degree Only 11.31% 9.55% 10.52% Average Household Income $82,346 $65,635 $64,773 Bachelors Degree Only 15.39% 10.57% 12.15% Median Household Income $60,936 $50,366 $47,733 Graduate Degree 8.09% 5.98% 7.87% Per Capita Income $34,155 $27,082 $27,998

DEMOGRAPHICS 11 Broker of Record: Josh Caruana

EXCLUSIVELY LISTED BY

DARPAN PATEL First Vice President Cincinnati Office Direct: (513) 878-7723 [email protected] License: OH SAL 2012000748

FRANK SIMCIC Associate Cincinnati Office Direct: (513) 878-7745 [email protected] License: OH SAL 2015005386

Broker of Record: Colby Haugness