OFFERING MEMORANDUM Creation Technologies 1729 Jaggie Fox Way, Lexington, KY 40511

ACTUAL PHOTO NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and 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. © 2017 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. SUBJECT PROPERTY LEXINGTON, KENTUCKY 42,556 VPD

60,429 VPD 51,557 VPD

18,882 VPD

EMERALD 24 PHASE II COVENTRY ELEMENTARY 237 UNITS 558 STUDENTS 80,840 VPD

RESIDENTIAL RESIDENTIAL INDUSTRIAL SITES

SANDERSVILLE ELEMENTARY 739 STUDENTS 51,557 VPD

60,429 VPD SUBJECT PROPERTY

18,882 VPD

EMERALD 24 PHASE II RESIDENTIAL 237 UNITS PRICING DETAIL & OPERATING DATA Address: 1729 Jaggie Fox Way, Lexington, KY 40511

Price Market Bid Net Operating Income $625,768 Built / Renovations 1998 / 2004 and 2007 LEASE SUMMARY Gross Leasable Area (GLA) 75,000 SF Property Subtype Single Tenant Industrial Manufacturing Sublessee (GLA) 31,922 SF Tenant Creation Technologies Lot Size +/- 8.16 Acres Sublessee Hands On Originals Zoning I-2 (Heavy Industrial) Guarantor Creation Technologies International Inc. Ownership Fee Simple Lease Type Absolute Triple-Net (NNN) RENT SCHEDULE / CREATION TECHNOLOGIES Lease Commencement August 1, 2007 Lease Expiration July 31, 2022 YEAR ANNUAL RENT MONTHLY RENT RENT/SF Lease Term Fifteen-Years Current – 10/31/2019 $625,768 $52,143 $8.57 Term Remaining (Years) Three Years, Eight Months 11/01/2019 – 07/31/2022 $688,345 $57,362 $9.43 Sublessee Renewal Option 1 01/01/2019 – 12/31/2020 TOTAL: $2,518,662 Outstanding Scheduled Rent as of 11/01/2018 Sublessee Renewal Option 2 01/01/2021 – 07/31/2022 Landlord Responsibility Insurance-Reimbursed RENT SCHEDULE / HANDS ON ORIGINALS Tenant Responsibility Utilities, Taxes, Roof, Structure and Ins. YEAR ANNUAL RENT MONTHLY RENT RENT/SF Right of Refusal No Current – 12/31/2018 $127,500 $10,625 $3.99 01/01/2019 – 12/31/2020 $133,875 $11,156 $4.19 01/01/2021 – 07/31/2022 $140,569 $11,714 $4.40 Notes: Utilities Reimbursement Annual Minimum $45,000 | Taxes, Insurance and Maintenance Expenses: Maintenance Cap is $30,000 INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

➢ Absolute Triple-Net (NNN) Lease with Over Three Years Remaining | Ten Percent Rental Increase on November 1, 2019 ➢ Corporate Guarantee | Creation Technologies International Inc. | Over $500 Million in Revenue ➢ Property is Currently Leased by Creative Technologies International (Dark) ➢ 31,922 Square Feet Subleased to Hands On Originals with 41,078-Square Feet of Vacancy ➢ Versatile Building Can Be Easily Converted between Single and Multi-Tenant ➢ More Than $2,500,000 In Scheduled Rent Payments Outstanding as of November 1, 2018 ➢ Class B Industrial Building, 75,000 Square Feet | Block and Metal with E.I.F.S Construction ➢ 37,000 Square Feet Built in 1998, Expanded by 18,000 Square Feet in 2004 and 20,000 Square Feet in 2007 ➢ Approximately 8.16 Acre Lot Exceptionally Located in North of Lexington ➢ Population Growth by Eight Percent since 2010 | Exceeding 353,600 Residents, over 410,500 Employees and more than 145,500 Households ➢ Over $73,500 Average Household Incomes within Ten-Mile Radius ➢ Located One-Mile Northwest of Expressway-421 with over 60,400 Vehicles Per Day ➢ Located less than Two-Miles North of Amazon Fulfillment Center | 604,000 Square Feet ➢ Located Three-Miles Southwest of Interstate-65/75 which see over 80,800 Vehicles Per Day ➢ Eight-Miles from Bluegrass International Airport ➢ Among Other Prominent Industrial Users: UPS, FedEx, LBX, Trane, Amazon, Innovative Mattress Solutions, Rexel, Big Ass Fans, TruGreen and Averitt ➢ Surrounded by 21 Million Square Feet of Industrial Sites

# INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present the Creation Technologies International Building at 1729 Jaggie Fox Way in Lexington, Kentucky. The offering is a 75,000-square foot (8,500 square feet of office) single tenant, corporate guaranteed, absolute (triple-net) leased asset, situated on approximately 8.16 acres. There are over three years remaining on the lease with above market rents and ten percent rental increase in 2019. Currently, 31,922-square feet is subleased to Hands On Originals and 41,078-square feet is vacant.

1729 Jaggie Fox Way is well equipped for high-tech electronic manufacturing, with a versatile layout, sufficient clearance, block/metal/exterior insulation and finish system construction. The building is temperature and humidity controlled, has four docks with levelers, one drive in door, all with partitioned loading area, ample parking, wet sprinklered, twelve inch epoxy finished floors, deionized water filtration system, floor drainage, collection and treatment system, security system with exterior cameras and badge accessibility. The entire production floor of this asset has a connectivity grid for added process versatility, intra/internet connectivity, electric and water utilities, compressed air and vacuum lines.

Sixty-six percent of the U.S. population can be reached within one days drive time from this location. Lexington is strategically located at the intersection of Interstates-64 and 75 in Fayette County, Kentucky. Lexington is accessible by air with over 100 direct and nonstop flights. Nestled among world famous Thoroughbred Horse Farms and the heart of Bourbon Country, (LEX) welcomes travelers with one of the most beautiful air approaches in the nation. Lexington and Central Kentucky are anchored by the University of with more than 30,000 students and the historical with more than 23,500 seating capacity. Lexington is home to a variety of interesting attractions, including Horse Racing and Bourbon Distillery tours. www.visitlex.com. Racecourse and horse racing revenue brings over $590,000,000 of total economic impact into the area. Keeneland has been ranked the #1 track in North America and consistently in the top 10 tracks in the world. www.bloodhorse.com

The subject property is located in a premier industrial park in the desirable and convenient Northern Corridor of Lexington with excellent access to Interstate-64 and Interstate-75. This building is surrounded by other major tenants such as Crown Lift Trucks, Averitt Trucking, Big Ass Fans and Trane. The property is within two-miles of UPS, FedEx, and the Amazon Fulfillment Center. Jaggie Fox Way is between three of the most major roadways in Lexington and Central Kentucky, Citation Boulevard, Georgetown Road and with over 80,000 vehicles per day combined. This location is adaptable with surrounding industry, retail, residential housing, apartments, schools and additional development.

An incoming investor has the ability to acquire an exceptionally well positioned asset with zero landlord obligations backed by a global tenant in an exceptional location with state of the art capabilities and multiple exit strategies.

# HIGH-TECH INDUSTRIAL CAPABILITIES

INVESTMENTGRID HANGING HIGHLIGHTS FROM THE CEILING AT 10’ ❑ Used to Provide Flexible Production area for quick moves of Equipment and Production Cell ❑ Grid supports: ❑ 110 Electrical Connections throughout ❑ Internet ❑ Water Lines ELECTRICITY ❑ Compressed Air Lines (These tie into the Mechanical Room) ❑ Vacuum Air Lines (These tie into the Mechanical Room) ❑ 480 and 220 Panels throughout most of Production Space

PHYSICAL BUILDING

❑ Twenty Feet Clear Height at the Low Points ❑ Floor Drains that run to Water Treatment Pit ❑ Mezzanine Space for Offices and Storage ❑ Well Lit Production Area (Mostly 50 lumens) ❑ Breakroom with Outdoor Patio SAFETY ❑ Trash Compactor set up including Access Door and Platform ❑ Lawn Sprinkler System ❑ Sprinklered throughout ❑ Roof Top HVAC Units with Catwalks for Easy Access ❑ Security System including Doors and Motion Detectors ❑ Fire Monitoring System

SPECIALIZED ATTRIBUTES

❑ DI Water Generating System (30 gallons per minute, Heated and Softened recirculating System) ❑ HVAC throughout the Entire Facility (Gas Heat Systems) ❑ ESD (Electrostatic Discharge) Flooring to Minimize Static Electricity in the Production Area ❑ Humidity Controlled Production Area to Reduce Static Electricity during Heating Months ❑ Specifically Designed Computer Room with Fiber Optics

# ORIGINAL SITE PLAN PROPERTY PHOTOS INTERIOR/EXTERIOR

DOCKING REAR PARKING

FRONT PARKING INTERIOR TENANT OVERVIEW

ABOUT CREATION TECHNOLOGIES

Creation Technologies, a private company and 25-year leader in creating transformative design and manufacturing solutions for original equipment manufacturers (OEMs). Creation is a full-service, global EMS provider that offers integrated, transformative solutions in Product Development, Rapid Prototyping, Lean Manufacturing, Fulfillment and After-Market services. They help OEMs execute results-driven roadmaps across the product lifecycle with transparency, technology leadership, and cross-functional Creation is honored to win 2017’s ‘Highest Overall Customer collaboration so you can achieve better business results. Rating’ for EMS Providers over $500 million, as judged solely by third-party feedback from customers of all EMS Providers. Creation Technologies was founded in 1991 to help OEMs succeed in This is the third year in a row that Creation has received this providing responsive, cost-effective and customized solutions to their honor, winning ‘Highest Overall’ in 2016 and 2015 as well. customers in a changing and demanding technology landscape. Creation Technologies has 14 locations in 4 countries with 3,000 dedicated Creation ranks first overall amongst ALL companies in ALL 5 professionals. Creation has 10 Manufacturing Facilities, 2 Design Centers, categories of Responsiveness, Value for Price, Dependability, Rapid Prototyping Center and 2 Support Centers. Quality, and Technology. www.creationtech.com TENANT OVERVIEW

ABOUT HANDS ON ORIGINALS

Hands On Originals, Inc. engages in the selling of Christian, School and coming soon for Businesses apparel and promotional items. y. The company was founded in 1986 and is based in Lexington, Kentucky. MARKET OVERVIEW

POPULATION 3 Miles 5 Miles 10 Miles HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 10 Miles ▪ 2022 Projection Total Average Household Retail Expenditure $55,348 $50,906 $60,414 Total Population 54,180 141,548 376,747 ▪ Consumer Expenditure Top 10 Categories ▪ 2017 Estimate Housing $13,265 $12,466 $14,487 Total Population 48,146 134,796 353,697 Transportation $10,766 $10,008 $12,245 ▪ 2010 Census Shelter $6,698 $6,363 $7,254 Total Population 44,260 126,053 326,425 Food $6,057 $5,688 $6,738 ▪ 2000 Census Personal Insurance and Pensions $4,408 $3,931 $5,194 Total Population 30,092 110,403 282,593 Health Care $3,595 $3,355 $3,827 ▪ Current Daytime Population Utilities $3,579 $3,416 $4,097 2017 Estimate 62,753 218,696 410,589 Entertainment $2,018 $1,944 $2,343 HOUSEHOLDS 3 Miles 5 Miles 10 Miles Apparel $1,698 $1,529 $1,956 Household Furnishings and Equipment $1,401 $1,332 $1,671 ▪ 2022 Projection Total Households 20,233 57,200 156,521 POPULATION PROFILE 3 Miles 5 Miles 10 Miles ▪ 2017 Estimate ▪ Population By Age Total Households 17,681 53,806 145,559 2017 Estimate Total Population 48,146 134,796 353,697 Average (Mean) Household Size 2.40 2.27 2.32 Under 20 25.31% 24.43% 24.95% ▪ 2010 Census 20 to 34 Years 27.17% 30.08% 26.03% Total Households 16,158 50,239 134,386 35 to 39 Years 8.90% 6.77% 6.95% ▪ 2000 Census 40 to 49 Years 12.99% 11.48% 12.39% Total Households 11,275 45,012 116,460 50 to 64 Years 16.19% 16.22% 17.74% ▪ Occupied Units Age 65+ 9.44% 10.99% 11.97% 2022 Projection 20,233 57,200 156,521 Median Age 33.77 31.96 34.35 2017 Estimate 18,938 58,291 155,482 ▪ Population 25+ by Education Level HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles 2017 Estimate Population Age 25+ 31,900 81,687 228,164 Elementary (0-8) 6.40% 6.11% 3.48% ▪ 2017 Estimate Some High School (9-11) 11.70% 10.40% 6.58% $150,000 or More 4.17% 4.96% 8.55% High School Graduate (12) 28.47% 26.69% 22.66% $100,000 - $149,000 9.77% 8.23% 12.78% Some College (13-15) 20.86% 20.38% 20.62% $75,000 - $99,999 11.95% 9.92% 12.35% Associate Degree Only 7.45% 6.44% 7.69% $50,000 - $74,999 17.37% 15.71% 17.60% Bachelors Degree Only 14.78% 16.68% 21.84% $35,000 - $49,999 13.38% 12.87% 12.46% Graduate Degree 8.94% 12.02% 16.33% Under $35,000 43.36% 48.30% 36.27% Average Household Income $58,549 $56,307 $73,571 Created on January 2018 Median Household Income $42,148 $36,680 $51,702 Per Capita Income $22,215 $23,455 $30,725 # MARKET OVERVIEW MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2017, the population in your selected geography is The current year racial makeup of your selected area is as 353,697. The population has changed by 25.16% since follows: 75.98% White, 13.92% Black, 0.04% Native 2000. It is estimated that the population in your area will be American and 3.52% Asian/Pacific Islander. Compare these 376,747 five years from now, which represents a change of to US averages which are: 70.42% White, 12.85% Black, 6.52% from the current year. The current population is 0.19% Native American and 5.53% Asian/Pacific Islander. 49.04% male and 50.96% female. The median age of the People of Hispanic origin are counted independently of race. population in your area is 34.35, compare this to the US average which is 37.83. The population density in your area People of Hispanic origin make up 6.80% of the current year is 1,124.67 people per square mile. population in your selected area. Compare this to the US average of 17.88%. Households Housing There are currently 145,559 households in your selected The median housing value in your area was $176,650 in geography. The number of households has changed by 2017, compare this to the US average of $193,953. In 2000, 24.99% since 2000. It is estimated that the number of there were 65,230 owner occupied housing units in your households in your area will be 156,521 five years from area and there were 51,230 renter occupied housing units in now, which represents a change of 7.53% from the current your area. The median rent at the time was $466. year. The average household size in your area is 2.32 persons. Income Employment In 2017, the current year average household income in your In 2017, there are 410,589 employees in your selected area, area is $73,571, compare this to the US average which is this is also known as the daytime population. The 2000 $81,217. The median household income for your selected Census revealed that 65.42% of employees are employed in geography is $51,702, compare this to the US average white-collar occupations in this geography, and 34.56% are which is currently $56,286. The median household income employed in blue-collar occupations. In 2017, for your area has changed by 28.79% since 2000. It is unemployment in this area is 4.28%. In 2000, the average estimated that the median household income in your area time traveled to work was 22.00 minutes. will be $61,879 five years from now, which represents a change of 19.68% from the current year.

The current year per capita income in your area is $30,725, compare this to the US average, which is $30,982.

Source: © 2017 Experian MARKET OVERVIEW

LEXINGTON OVERVIEW

The Lexington area is known as the horse capital of the world and is home to two race tracks and the . The metro has a METRO HIGHLIGHTS population of 501,000 individuals and is composed of Bourbon, Clark, Fayette, Jessamine, Scott and Woodford counties. The market is located MANUFACTURING INDUSTRY about 70 miles east of the state capitol in Frankfort and about an hour Manufacturing serves an important role in the local economy with products south of Cincinnati. Louisville and the Kentucky Derby are approximately ranging from composite material to aromatherapy merchandise.

80 miles to the west. HIGHER-EDUCATION INSTITUTIONS Major secondary institutions in the area include the , and Bluegrass Community and Technical College.

CORPORATE PRESENCE Several headquarters are located in Lexington, including Lexmark International, A&W Restaurants and Temper Sealy International.

ECONOMY

▪ The metro has a highly educated workforce with more than a third of the population having a bachelor’s degree or higher. ▪ Manufacturing has a strong presence in Lexington. The largest is Toyota Motor, which employs 12,500 workers in their plant. Other notable manufacturers include Lockheed Martin, Hitachi Automotive Services, Webasto Roof Systems and Trane Lexington. ▪ Lexington is also home to the JIF manufacturing plant, reportedly the largest peanut butter manufacturing facility in the world. The fast-food chain Fazoli’s is also headquartered in the metro.

DEMOGRAPHICS

2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 501K 203K 35.8 $48,900 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 5.8% 6.4% 37.7 $57,200

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau PRESENTED BY:

Sal Ramundo Darpan Patel Associate – Office/Industrial Senior Associate Cincinnati Office Associate Director - Net Leased Properties Group Tel: (513) 878-7736 Cincinnati Office Fax: (513) 878-7710 Tel: (513) 878-7723 [email protected] Fax: (513) 878-7710 Licenses: KY 239856 [email protected] License: OH SAL 2012000748

Stan Falk Joel Dumes

First Vice President Investments Senior Vice President Investments Senior Director - National Retail Group Senior Director – National Retail Group Cincinnati Office Cincinnati Office Tel: (513) 878-7721 Tel: (513) 878-7720 Fax: (513) 878-7710 Fax: (513) 878-7710 [email protected] [email protected] License: OH SAL.2012001364 Licenses: OH SAL.2003013045, KY 63818 www.MarcusMillichap.com BROKER OF RECORD: COLBY HAUGNESS