DOWNTOWN OFFICE PORTFOLIO 1527 – 1539 Greenup Avenue & 131 16Th Street, Ashland, KY 41100 NON - ENDORSEMENT and DISCLAIMER NOTICE

OFFERING MEMORANDUM

DOWNTOWN OFFICE PORTFOLIO 1527 – 1539 Greenup Avenue & 131 16th Street, Ashland, KY 41100 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. Â© 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.

DOWNTOWN ASHLAND GOVERNMENT OFFICE Ashland, KY ACT ID Y0360263

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01

MARKET OVERVIEW 02

FINANCIAL ANALYSIS 03

MAKET COMPARABLES 04

MARKET DEMOGRAPHICS 05

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INVESTMENT OVERVIEW

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OFFERING SUMMARY INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS ▪ Five Story Government Office | Two Story Mixed-Use Building | 80+ Parking Spaces ▪ Turn Key Class B Office Spaces | Low Average Rent $10.47 Per Square Foot ▪ 93.84 Percent Economic Occupancy | Strong Credit Tenancy | State of Kentucky Rated: Aa3 (Moody’s) ▪ Strong Historical Occupancy | 63 Percent of GLA Leased Since 2001 ▪ Strong Leasing Activity | 14% of GLA Leased Since 2014 | Recent Tenant Extensions and Expansions ▪ Limited Rollover Risk | Only Five Percent of Income Expires Prior to 2020 ▪ Priced Below Replacement Cost | $61.49 Per Square Foot ▪ Located on Greenup Avenue Which Sees 13,200+ Vehicles Per Day

Marcus & Millichap is pleased to present the Office Portfolio, located on the corner of Greenup Avenue and 16th Street in Ashland, Kentucky. This portfolio consists of three adjoining buildings with a combined gross leasable area of 60,089-square feet, situated on approximately 0.59 acres, encompassing an entire city block within the epicenter of downtown Ashland. The main structure is a 51,691- square foot, five story office building built in 1930 and completely renovated in 1997, leased to various State Government entities. Adjacent to that is a 7,104-square foot, two story mixed-use building with two Lamar billboards and over 80 parking spaces. The third building is a 700 square-foot structure, located behind the five story office building.

The city of Ashland is located in Boyd county Kentucky and is the second largest city in the Huntington-Ashland MSA. The Huntington- Ashland MSA consists of seven counties throughout Kentucky, Ohio and West Virginia with a 2015 population of 361,580 residents. Ashland is also the eighteenth largest community in the Commonwealth of Kentucky. Ashland serves as the main employment hub on the Kentucky side of the tri-state area, while also providing a regional shopping, restaurant and entertainment hub for the county and other municipalities in the region.

The subject property is centrally located in a region with strong demographics. There are over 120,700 residents with average incomes exceeding $55,500 within ten-miles. The market area boasts over 131,000 employees with over 23 percent of those employees having an Associate Degree or higher education. The offering sits between 15th street and 16th street on the main thoroughfare of Greenup Avenue, which sees over 13,200 vehicles per day.

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OFFERING SUMMARY INVESTMENT OVERVIEW

MARKET HIGHLIGHTS ▪ Central Government Office Market | Multiple County, State and Federal Agencies ▪ 120,700+ Population | Average Household Income $55,500 | 131,000+ Employees | Ten Mile Radius ▪ Near the New Delta Hotel by Marriot Development | $12 Million Renovations ▪ Near Braidy Industries HQ | 2018 Groundbreaking on $1.3B State of the Art Aluminum Mill (Boyd County)

There are multiple complementary offices nearby that create drivers for the tenants occupying the subject property such as The Mayor’s Office, Social Security Administration, Ashland City Finance Department, Ashland City Police Department, City of Ashland and more are located within blocks of the property. There are several schools and universities in the area, within one-mile is Fairview High School, Ashland Independent Schools, Russell High School, Morehead State University with 200 students enrolled, Ashland Community Technical College with more than 2,700 students enrolled. Ohio University Southern sits within four-miles. The subject property is located within close proximity of two of Ashland’s largest employers. One being King’s Daughters Medical Center which has 465 beds and over 3,700 employees. The second is Our Lady of Bellefonte Hospital, an 214-bed facility, which has more than 1,250 employees. Other major employers in the area are Marathon Petroleum and Boyd County Schools, with more than 3,000 combined employees. The region boasts a 650-acre refining facility that produces more than 242,000 barrels per day and is the 31st largest American refining facility less than eight miles away in Catlettsburg, Kentucky. There are four major shopping centers nearby. The major of the four being the 425,000-square foot Ashland Town Center with major tenants such as TJ Maxx, JC Penney and Belk. The other three make up more than 500,000-square feet of retail space with major tenants such Kroger, Walmart Supercenter, Dick’s Sporting Goods, Big Lots, Lowe’s and Hobby Lobby, all within ten minutes of the subject property.

In September 2017, the Ashland Plaza Hotel, which is 800 feet from the subject property, sold for $3,600,000. The hotel will undergo $12,000,000 in renovations and will be rebranded as a Delta Hotel by Marriott, it will also include a convention center and parking garage.

Another major local and regional impact will be created by Braidy Industries, which recently located their headquarters nearby the subject property. Braidy Industries was created by Craig T. Bouchard to lead a national transformation in the use of efficient, eco-friendly aluminum alloys that are also lighter and stronger. The goal of the company is to lead the generational shift in materials science that is currently underway. Braidy plans to break ground on a revolutionary, one of a kind 2.5M-square foot $1.3B Aluminum Mill, which is expected to create 1,000 construction jobs and 500 full-time positions upon completion. The expected ground breaking is late 2018 and completion projected for 2020. (www.braidyindustries.com)

This Office Portfolio provides an incoming investor the ability to acquire a stabilized asset with minimal rollover and prominent location within a complimentary market.

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PROPERTY PHOTOS

7 DOWNTOWNPROPERTY NAMEOFFICE PORTFOLIO

SURROUNDINGMARKETING PROPERTY TEAM

Looking East from Greenup Avenue at Subject Property East of the Subject Property

North of the Subject Property Northeast of the Subject Property

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LOCAL AERIAL

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REGIONAL AERIAL

119 Miles to Columbus, OH 294 Miles to Pittsburgh 136 Miles to Subject Property Cincinnati, OH Ashland, Kentucky

Huntington, West Virginia

$1.3B Aluminum Mill Brand New Development

68 Miles to Charleston, WV

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MARKET OVERVIEW

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MARKET OVERVIEW ASHLAND PROFILE LIVING IN ASHLAND

Ashland is the second-largest city in the Huntington-Ashland metropolitan area, which serves as an important economic and medical center for northeast Kentucky and is part of the fifth-largest metropolitan area in Kentucky. With a population of 21,108 people and ten constituent neighborhoods, Ashland is the 18th largest community in Kentucky.

Unlike some cities where white-collar or blue-collar occupations dominate the local economy, Ashland is neither predominantly one nor the other. Instead, it has a mixed workforce of both white and blue collar jobs. Overall, Ashland is a city of professionals, sales and office workers, and service providers. There are especially a lot of people living in Ashland who work in healthcare (12.07%), office and administrative support (11.91%), and sales jobs (9.92%).

Residents of the Ashland have the good fortune of having one of the shortest daily commutes compared to the rest of the country. On average, they spend only 18.92 minutes getting to work every day. The citizens of Ashland are slightly better educated than the national average of 21.84% for all cities and towns, with 21.14% of adults in Ashland having a bachelor's degree or advanced degree.

The northeastern Kentucky area boosts several high-quality high schools and universities, providing a wide range of academic excellence.

There are six K-12 public school systems in the region – three each in Boyd and Greenup counties – each committed to ensuring students a comprehensive education in a positive and nurturing environment. All are accountable to the high standards of the Kentucky Educational Reform Act, which is one of the country’s most comprehensive educational reform efforts.

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MARKET OVERVIEW 1. Subject Property

2. Ashland Hotel Plaza- 3. Ashland Town 4. Kings Daughter’s 5. Braidy Industries- New Development Center Medical Center Brand New Development

4. Braidy Industries

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MARKET OVERVIEW Ashland Hotel Plaza (NEW DEVELOPMENT) Andrew Adkins | The Daily Independent, Ashland, Ky. | September 22, 2017 3:17pm

Two businessmen officially bought the Ashland Plaza Hotel and announced Thursday how they plan to revamp it into a 4-star Delta Hotel by Marriott, a move city officials hope will energize a struggling downtown.

Nizzo and his partner Andy Spiros announced the purchase alongside city officials and Ashland Community and Economic Development Director Chris Pullem, who spearheaded efforts to entice the developers. The deal was finalized Wednesday afternoon. Dr. Prakash Patel, an oncologist from Portsmouth, was the seller. Nizzo and Spiros who also own the Bellefonte Center and Hobby Lobby shopping center in Greenup County, bought the hotel for $3.6 million.

The renovation will be top to bottom. Every room will be gutted, the lobby staircase will be knocked out and a new restaurant and two cocktail bars will be opened based on design plans. The Delta Hotel will have 152 rooms – three more than the Ashland Plaza Hotel. The new owners plan to employ between 115 and 125 people. The average pay scale is yet to be determined, he added.

The businessmen intended to make the buy in May. The initial closing date for the sale was set for June 30 but pushed back multiple times while the City of Ashland worked to shore up an incentive package for the project.

The city will provide about $4.6 million to the business developers through bonds to help with construction costs, about 1/4th of the developers’ total investment in the project. Funding for the incentive is set to come from a 20-year Tax Increment Financing, or TIF, program launched in downtown Ashland this summer by the city and the Boyd Fiscal Court. A Lexington-based financial 800 Feet from Subject consulting firm hired by the city projects the TIF program will allow the city to capture about $16.5 Property million in TIF-eligible funds over the 20-year life of the program. But that total is merely a projection. Those funds will rely on an influx of new tax revenue flowing out of the TIF district, which is called the Ashland Plaza Development Area and exists between 14th Street, Bath Avenue, 16th Street and Greenup Avenue.

City officials are expecting property values to rise and more money to circulate inside the TIF district. They’re also counting on more payroll tax money flowing in from new employees at the hotel and any new restaurants and stores that may follow. Nizzo and Spiros hope to fill the majority of Delta’s rooms on a daily basis. The Ashland Plaza Hotel filled 30 percent of its beds on most nights, based on data provided to the developers. The starting nightly rate for the Delta Hotel will likely be $115. The hotel’s conversion to Delta Hotel by Marriott is set for completion next summer. For Full Article Please Visit www.dailyindependent.com

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MARKET OVERVIEW

0.8 Miles from Subject Property

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MARKET OVERVIEW

1.2 Miles from Subject Property

465 Beds | 3,700 Employees

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MARKET OVERVIEW

10.4 Miles from Subject Property “Over $1.3 billion will be spent on the mill located in Greenup County Kentucky, close to the city of Ashland.”

Jaunique Sealey and Robert Cavosi | Braidy Industries, Ashland, Ky. | Wurtland, KY April 26, 2017 The transformation in material sciences and advanced manufacturing was evidenced today during a joint announcement by Kentucky Governor Matt Bevin and Craig Bouchard, Chairman and CEO of Braidy Industries, Inc. The Governor and Mr. Bouchard announced that Braidy, in partnership with the State of Kentucky and the Ashland Alliance, will construct the nation’s first Greenfield aluminum rolling mill in over three decades.

The Braidy rolling mill seeks to become the nation’s low cost producer of high quality auto body sheet aluminum, plate and ultra-high strength alloys for the Aerospace industry. The mill will open with capacity of 370,000 tons per annum, producing series 5000, 6000, and 7000 aluminum sheet and plate products. Braidy is also exploring new scientific nano-crystaline technical advances capable of improving molten metal-based manufacturing.

Braidy Industries decision to locate in Eastern Kentucky has the potential to be as significant as any economic deal ever made in the history of Kentucky. This $1.3 billion investment will create enormous opportunity for people in the region, and would not have been possible without our recently passed right-to-work legislation. Eastern Kentucky’s South Shore chosen over 24 proposed sites in two states,1000 construction jobs, 550 permanent highly skilled jobs and another 1000 supporting services jobs to the Appalachian area.

Ground breaking at the 370 acre South Shore site will occur in the first quarter of 2018. Over $1.3 billion will be spent on the mill located in Greenup County Kentucky, close to the city of Ashland. The mill will be 2.5 million square feet under roof, with an ideal location on the great Ohio River, and already-permitted barge capacity. The CSX railroad runs through the property, and highway I-64 connects the mill site to some of the nation’s largest auto-making and aerospace customers. The State of Kentucky exports more than $10 billion per year in aerospace products, ranking it second among all states in the U.S.

Craig Bouchard is joined on the Braidy Board of Directors by Dr. Michael Porter of the Harvard Business School, the world’s foremost expert on competitive advantage, Dr. Chris Schuh, Head of Materials Science at MIT and one of the worlds most accomplished metallurgists, John Preston, renowned technologist who commercialized intellectual property at MIT for nearly 30 years, and Charles Price, a well known industrialist from the State of Kentucky.

Braidy’s second investment will be a soon-to-be-announced acquisition putting it on the forefront of the advanced manufacturing of ultra-high strength and light weight parts for the inside of cars and airplanes, and for defense purposes. The company intends to lead the development of science applying nano-crystaline technologies to the rapid implementation of high-strength and lightweight alloys. For Full Article Please Visit www.braidyindustries.com

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MARKET OVERVIEW ASHLAND PROFILE

COLLEGES & UNIVERSITIES (WITH APPROXIMATE MILES FROM ASHLAND)

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS EXECUTIVE SUMMARY

MAJOR EMPLOYERS

# OF EMPLOYER EMPLOYEES King's Daughters Medical Center 3,753 Marathon Petroleum 1,554 Our Lady of Bellefonte Hospital 1,259 Boyd County Schools 572

Ashland Independent Schools 510 AT&T Mobility 493 Greenup Public Schools 475 City of Ashland 307 Pathways, Inc. 294 THE OFFERING Russell Independent Schools 290 Property Downtown Ashland Government Office 1527-1539 Greenup Avenue & 131 16th Street Cintas/Ashland-East Park 278 Property Address Ashland, Kentucky 41101 Ashland Community College 219 SITE DESCRIPTION Built/Renovated 1930/1997 DEMOGRAPHICS Gross Leasable Area 60,089 SF Current Economic Occupancy 93.76% 3-Miles 5-Miles 10-Miles Lot Size +/- 0.59 Acres 2016 Estimate Pop 33,876 59,935 120,988 Ownership Fee Simple 2010 Census Pop 34,070 60,433 122,534 2016 Estimate HH 14,257 24,263 48,861 2010 Census HH 14,428 24,639 49,752 Average HH Income $53,862 $55,375 $55,497 Daytime Employees 44,889 71,755 131,856

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FINANCIAL ANALYSIS PRICING DETAIL & OPERATING DATA

Operating Data Current PRICING & FINANCING Scheduled Base Rental Income $583,092 Utility Reimbursement Income (1) $15,124 List Price $3,695,000 Additional Parking Income (3) $2,700 Effective Gross Income $600,916 Cap Rate | Price/SF 10.35% | $61.49 Less: Operating Expenses ($218,354) Net Operating Income $382,562 Net Operating Income $382,562 Debt Service (197,030) Loan Type Proposed New Net Cash Flow After Debt Service 20.08% $185,532 Principal Reduction $56,030 Down Payment 25% / $923,750 Total Return 26.15% $241,562 Operating Expenses Current Per/SF Loan Amount $2,771,250 Electric $41,777 $0.70 Interest Rate 5.135% Gas $2,666 $0.04 Term / Amortization 10 Year Fixed / 25 Year Water/Sewer $7,437 $0.12 Trash Removal $985 $0.02 Snow Removal $325 $0.01 General Repairs & Maintenance $20,738 $0.35 $6,133 Maintenance (CAM) Maintenance Janitorial Services $0.10

Financing Quote Provided 3/7/2019* Area CommonEstimated Elevator Contract $3,168 $0.05 Contact Agent For Details and Total Estimated CAM $83,229 $1.39 Insurance Premiums $12,018 $0.20 Options. Estimated Real Estate Taxes ($3.695M) $65,039 $1.08 Management Fee (5% of EGI) $30,046 $0.50 Owner Expense for Parking Contract (4) $13,000 $0.22 Reserves $15,022 $0.25 Operating Expenses $218,354 $3.63

Financial Notes: (1) Comprehensive Health Management, Inc. Provides reimbursement of 55% of Utilities (2) Landlord has agreement with City to rent 100 parking spaces nearby at Amtrak Station, $13,000 Annually (3) Landlord collects $2,700 annually from tenants renting parking spaces (4) Owner Spent $20,665 on Buildouts for new tenants in 2018 (Not Included in NOI Calculation since it’s not a routine expense) (5) Owner Spent $9,875 on two new HVACs (Not Included in expenses since it’s not a routine expense) (6) Taxes are estimated at the $3.695M purchase price (1.76019 – 2018 Tax Rate) (7) Lot Sweeping, Fire Protection, Legal/Professional fees are assumed to be included in General R&M / Janitorial services (8) Elevator Contract and Snow Removal expenses were extracted from General R&M on the 2018 P&L Statement – Refer to R&M Ledger for details

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FINANCIAL ANALYSIS TENANT SUMMARY

% Annual Square Lease Dates Total Rent Total Rent Lease Tenant Name Bldg. Rent per Renewal Options Feet Per Month Per Year Type Share Comm. Exp. Sq. Ft. Comprehensive Health Management Inc. 4,800 9.29% 12/14/2011 03/31/2022 $15.57 $6,229 $74,745 Modified Gross 1 x 5, 5% Increase Department of Juvenile Justice 6,240 12.07% 09/01/1993 06/30/2025 $8.02 $4,168 $50,016 Gross None Cabinet Health & Family Services 31,411 60.77% 12/20/2001 06/30/2025 $10.54 $27,585 $331,023 Gross None Regional Kentucky Works Program 1,000 1.93% 07/01/2016 06/30/2019 $10.56 $880 $10,557 Gross 2 x 2, 3.5% Increase Department of Revenue 3,740 7.23% 06/24/2014 06/30/2021 $14.97 $4,666 $55,988 Gross None *Oley & James Exec. Mgmt. Group 4,500 8.70% 7/20/2018 12/31/2023 $8.00 $3,000 $36,000 Modified Gross 4x5, with Increases 1539 Greenup Avenue 51,691 86.02% $46,528 $558,329 CityReach Network 3,120 5.29% 09/01/2017 08/31/2019 $3.27 $850 $10,200 Modified Gross 2 x 3, 10% Increase Department of Workers Claims 874 1.48% 06/30/2018 06/30/2025 $14.97 $1,090 $13,084 Gross 7 x 1 1527 Vacant (1st Floor) 2,120 3.59% 1527 Vacant (Unfinished Rear Storage) 1,584 2.69% Lamar Sign 0 0% 05/01/2009 MTM $123 $1,470 1527 Greenup Avenue 7,698 13.05% 2,063 $24,754 Vacant 700 1.19% 131 16th Street 700 1.19% Total Occupied 55,685 92.67% Total Vacant 4,404 7.33% Total 60,089 100% $48,590 $583,083

*Oley & James Executive Management Group has August, September, October, November and December of 2018 rent free in exchange for accepting premise “as is” and for renovation and cleaning cost of premise. There is a 6.25% rental increase during the first option, 5.88% rental increase during the second option, 5.56% during the third option, and 5.26% during the fourth option.

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Comprehensive Health Management, Inc. operates as a licensed Lease Summary third-party administrator that provides administrative services for health maintenance organizations including claims, billing, Tenant Comprehensive Health - Management Inc. customer service, quality assurance, utilization management, Ticker WCG (NYSE) appeals and grievances and regulatory reporting. The company was founded in 2002 and is based in Tampa, Florida. Gross Leasable Area (GLA) 4,800 Comprehensive Health Management, Inc. operates as a subsidiary Pro Rata Share of Project 8.14% of WellCare Health Plans, Inc. Current Monthly/Annual Rent $6229/$74,745

WellCare Health Plans, Inc. (NYSE: WCG) began operations in Rent/SF $15.57 1985 and is based in Tampa, Florida. WellCare provides Medicare and Medicaid managed care health plans for more than 4.1 million Lease Commencement December 14, 2011 members as of March 2017, partners with over 91,000 physicians, Lease Expiration March 31, 2022 and employs over 6,000 associates. WellCare second quarter total revenues were $4.2M. WellCare Health Plans, Inc. is the holding Lease Term Ten Years, Three Months company for several subsidiaries, including WellCare, Staywell, Term Remaining on Lease (Years) Four Years, Five Months HealthEase, Harmony, and 'Ohana. Regional offices are located in Miami, Florida; Manhattan, New York; New Haven, Connecticut; Website www.wellcare.com Baton Rouge, Louisiana; Marietta, Georgia; Houston, Texas; and Chicago, Illinois.

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Department of Juvenile Justice Prevention, Rehabilitation and Community Protection

The Kentucky Department of Juvenile Justice is one of five Lease Summary departments under the Kentucky Justice and Public Safety Tenant Kentucky Department of Juvenile Justice Cabinet. The department is responsible for prevention programs for at-risk youth, court intake, pre-trial detention, residential Gross Leasable Area (GLA) 6,240 SF placement/treatment services, probation, community Pro Rata Share of Project 10.58% aftercare/reintegration programs and youth awaiting adult placement or court. Current Monthly/Annual Rent $4,168/$50,016

Rent/SF $8.02 The Kentucky Department of Juvenile Justice was established in 1996 with the passage of HB 117 by Kentucky's General Lease Commencement September 1, 1993 Assembly. Kentucky Department of Juvenile Justice strives to Lease Expiration June 30, 2025 promote a comprehensive array of cost-effective services for at- risk youth directed toward preventing delinquency, providing Lease Term Thirty-one Years, Nine Months efficient rehabilitation services, and altering the rate of Term Remaining on Lease (Years) Seven Years, Seven Months recidivism with appropriate aftercare, while minimizing risk to the community. In providing services, the Department supports and Website Djj.ky.gov believes in the complete involvement of both the family and the community in the rehabilitation process.

Kentucky has been nationally recognized for the continuum of care it provides for rehabilitating delinquent youth. While many state's out-of-home placement options are limited to two or three large institutions, Kentucky is able to serve youth in a variety of small programs designed to meet specific treatment needs.

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Lease Summary The Cabinet for Health and Family Services (CHFS) is home to Tenant Cabinet for Health and Family Services most of the state's human services and health care programs, Gross Leasable Area (GLA) 31,411 SF including Medicaid, the Department for Community Based Services Pro Rata Share of Project 53.25% and the Department for Public Health. CHFS is one of the largest Current Monthly/Annual Rent $27,585/$331,023 agencies in state government, with nearly 8,000 full and part-time Rent/SF $10.54 employees. Lease Commencement December 20, 2001

Lease Expiration June 30, 2025

Lease Term Twenty-three Years, Six Months

Term Remaining on Lease (Years) Seven Years, Eight Months

Website Chfs.ky.gov

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KentuckyWorks is a regional job portal, built and maintained by Kwantek, which makes searching for career opportunities and/or Lease Summary searching for qualified candidates easier than ever. This site offers Tenant Regional KentuckyWorks Program a solution for the biggest concern about on-line job posting systems - locality of interest. Gross Leasable Area (GLA) 1,000 SF Pro Rata Share of Project 1.70% The portal provides real-time job matching against skills required for a position, eliminates duplication of resumes submitted for a Current Monthly/Annual Rent $880/$10,557 particular job, protects the privacy of the recruiter, notifies job Rent/SF $10.56 seekers when a position for which they have applied has been filled, and many other features intended to save both "hunter and Lease Commencement July 1, 2016 hirer" time and trouble. Lease Expiration June 30, 2019

Lease Term Two Year, Eleven Months 1) Employer Complete online Job Wizard: Term Remaining on Lease (Years) One Year, Eight Months - Job Description - Salary Range Website www.kentuckyworks.com - Job Type, Schedule and Location Job Candidates 2) Complete Professional Profile online: - Upload Resume - Job Type & Schedule - Salary Requirements - Desired Location 3) Our Matching Engine goes to work finding relevant candidates. 4) All candidates pass through the Matching Engine and are asked of their interest in the position. 5) The Result. Qualified, interested candidates who fit your needs are now ready to interview and hire.

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Lease Summary

Tenant Kentucky Department of Revenue

Gross Leasable Area (GLA) 3,740 SF

Pro Rata Share of Project 6.34%

Current Monthly/Annual Rent $4,666/$55,988

Kentucky Department of Revenue Mission Statement Rent/SF $14.97

As part of the Finance and Administration Cabinet, the mission of Lease Commencement June 24, 2014 the Kentucky Department of Revenue is to administer tax laws, Lease Expiration June 30, 2021 collect revenue, and provide services in a fair, courteous, and Lease Term Seven Years efficient manner for the benefit of the Commonwealth and its Term Remaining on Lease (Years) Three Years, Eight Months citizens. Website Revenue.ky.gov

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G4S Secure Solutions (G4S) counters the perils of modern life by providing a full slate of security services to corporate, industrial, and government organizations. The company's offerings include armed guards, background investigations, program development, and Tenant G4S Secure Solutions (USA) security consulting. G4S also provides fire and rescue services, as well as specialized Inc. security for airports, nuclear power plants, and US embassies. The company markets Gross Leasable Area (GLA) 700 SF security services to federal, state, and local government agencies via its Wackenhut Services subsidiary. Formerly known as Wackenhut Corporation, G4S is the US business Pro Rata Share of Project 1.19% unit of UK-based G4S plc, one of the world's largest security companies. Current Monthly/Annual Rent $700/$8,400

G4S plc (formerly Group 4 Securicor) is a British multinational security services company Rent/SF $12.00 headquartered in Crawley, England. The company was set up in 2004 when London- based company Securicor amalgamated with Danish business Group 4 Falck. The Lease Commencement January 1, 2016 company offers a range of services, including the supply of security personnel, monitoring equipment, response units and secure prisoner transportation. G4S also works with Lease Expiration March 31, 2019 governments overseas to deliver security. Lease Term Three Years, Three Months

It is the world's largest security company measured by revenues and has operations in Term Remaining on Lease One Year, Five Months around 125 countries. With 585,000 employees, it is the world's third-largest private (Years) employer, the largest European and African private employer, and among the largest on Website www.g4s.us the London Stock Exchange (GFS). G4S was founded in 2004 by the merger of the UK- based Securicor plc with the Denmark-based Group 4 Falck.

CONSULTING ELECTRONIC SECURITY ACCESS CONTROL OVER 57,000 HOURS ON DUTY CUSTOMERS SERVICES SYSTEMS SYSTEMS

EMPLOYEES MORE THAN 76 MILLION OVER 7,400 IN OVER 100 COUNTRIES OVER 1,500 COMPLETED OVER 45,000 INSTALLED SECURITY OFFICER CONSULTING SYSTEMS SOFTWARE & TECHNOLOGY SERVICES SERVICES INTEGRATION

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MARKET COMPARABLES

30 DOWNTOWN ASHLAND GOVERNMENT OFFICE

8 LEASE COMPARABLES MAP

DOWNTOWN ASHLAND GOVERNMENT OFFICE (SUBJECT PROPERTY) 1 Camayo Arcade Building

2 The Skytower

3 Downtown Ashland Office

4 Putnam Building

5 Downtown Ashland Retail

6 Greater Ashland Retail

31 PROPERTYDOWNTOWNNAME ASHLAND GOVERNMENT OFFICE

LEASE COMPARABLES

100 OCCUPANCY AVERAGE OF 62% 90

0 Downtown Camayo The Downtown Putnam Downtown Greater Ashland Arcade Skytower Ashland Building Ashland Ashland Government Building Office Retail Retail Office

$16

$14

$13 AVERAGE ASKING RENT OF $11 PER SQUARE FOOT

$11

$10

$0 Downtown Camayo The Downtown Putnam Downtown Greater Ashland Arcade Skytower Ashland Building Ashland Ashland Government Building Office Retail Retail Office

32 PROPERTYDOWNTOWNNAME ASHLAND GOVERNMENT OFFICE

LEASEMARKETING COMPARABLES TEAM

DOWNTOWN ASHLAND GOVERNMENT OFFICE CAMAYO ARCADE BUILDING THE SKYTOWER 1539 Greenup Ave, Ashland, KY, 41101 1536 Winchester Ave, Ashland, KY, 41101 1212 Bath Ave, Ashland, KY, 41101

1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Rentable SF 58,989 Survey Date 10/20/2017 Survey Date 10/20/2017 Available SF 7,104 Rentable SF 29,356 Rentable SF 114,000 Average Rent/SF $10.71 Available SF 14,470 Available SF 31,920 Year Built 1930 Asking Rent/SF $11.00 Asking Rent/SF $10.00 Occupancy 88% Year Built 1929 Year Built 1976 Lease Type Gross Occupancy 51% Occupancy 72% Lot Size 0.59 acre(s) Lease Type Gross Lease Type Gross 3.2* (Additional Parking 100 Parking Ratio Lot Size 0.3271 Lot Size 0.3558 Spaces Off Site) Parking Ratio 0.81 Parking Ratio 2.9

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

33 PROPERTYDOWNTOWNNAME ASHLAND GOVERNMENT OFFICE

LEASEMARKETING COMPARABLES TEAM

DOWNTOWN ASHLAND OFFICE PUTNAM BUILDING DOWNTOWN ASHLAND OFFICE 1700 Winchester Ave, Ashland, KY, 41101 1557 Winchester Ave, Ashland, KY, 41101 1510 Greenup Ave, Ashland, KY, 41101

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Survey Date 10/20/2017 Survey Date 10/20/2017 Survey Date 10/20/2017 Rentable SF 49,000 Rentable SF 24,000 Rentable SF 31,434 Available SF 36,795 Available SF 17,300 Available SF 850 Asking Rent/SF $11.00 Asking Rent/SF $10.00 Asking Rent/SF $10.00 Year Built 1929 Occupancy 28% Occupancy 97% Occupancy 25% Lease Type Modified Gross Lease Type Modified Gross Lease Type Modified Gross Lot Size 0.6428 Lot Size 0.4645 Lot Size 0.1722 Parking Ratio 1.02

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

34 PROPERTYDOWNTOWNNAME ASHLAND GOVERNMENT OFFICE

LEASEMARKETING COMPARABLES TEAM

GREATER ASHLAND OFFICE 2025 13th St, Ashland, KY, 41101

rentpropertyname1 rentpropertyname1 rentpropertyname1

Survey Date 10/20/2017 Rentable SF 5,813 Available SF 1,046 Asking Rent/SF $14.44 Occupancy 82% Lease Type Modified Gross Lot Size 0.43 Parking Ratio 3.51

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

35 DOWNTOWN OFFICE PORTFOLIO

MARKET DEMOGRAPHICS

36 DOWNTOWN OFFICE PORTFOLIO

8 DEMOGRAPHICS

Downtown Ashland Government Office

37 PROPERTYDOWNTOWNNAME OFFICE PORTFOLIO

MARKETINGDEMOGRAPHICS TEAM CreatedPOPULATION on October 2017 3 Miles 5 Miles 10 Miles ▪ 2021 Projection Total Population 33,474 59,606 120,294 POPULATION PROFILE 3 Miles 5 Miles 10 Miles ▪ 2016 Estimate ▪ Population By Age Total Population 33,876 59,935 120,988 2016 Estimate Total Population 33,876 59,935 120,988 ▪ 2010 Census Under 20 23.67% 23.19% 23.50% Total Population 34,070 60,433 122,534 20 to 34 Years 18.36% 18.15% 17.77% ▪ 2000 Census 35 to 39 Years 5.62% 6.13% 6.06% Total Population 34,539 60,759 123,845 40 to 49 Years 12.77% 13.23% 13.18% ▪ Current Daytime Population 50 to 64 Years 20.72% 21.05% 21.23% 2016 Estimate 44,889 71,755 131,856 Age 65+ 18.86% 18.26% 18.27% HOUSEHOLDS 3 Miles 5 Miles 10 Miles Median Age 41.92 41.95 42.08 ▪ 2021 Projection ▪ Population 25+ by Education Level Total Households 14,157 24,278 48,837 2016 Estimate Population Age 25+ 23,779 42,510 85,475 ▪ 2016 Estimate Elementary (0-8) 4.34% 4.24% 4.31% Total Households 14,257 24,263 48,861 Some High School (9-11) 9.95% 9.83% 9.71% Average (Mean) Household Size 2.33 2.37 2.41 High School Graduate (12) 35.84% 37.35% 38.02% ▪ 2010 Census Some College (13-15) 23.93% 23.56% 23.35% Total Households 14,428 24,639 49,752 Associate Degree Only 8.87% 8.30% 8.24% ▪ 2000 Census Bachelors Degree Only 9.46% 9.39% 9.68% Total Households 14,694 24,864 50,421 Graduate Degree 6.47% 6.44% 5.93% HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles ▪ 2016 Estimate $200,000 or More 2.13% 2.16% 1.83% $150,000 - $199,999 1.95% 2.00% 2.07% $100,000 - $149,000 7.85% 8.40% 8.26% $75,000 - $99,999 8.46% 9.51% 10.46% $50,000 - $74,999 17.50% 17.14% 18.48% $35,000 - $49,999 14.39% 14.19% 14.55% $25,000 - $34,999 12.46% 11.77% 11.65% $15,000 - $24,999 14.56% 14.84% 14.11% Under $15,000 21.23% 20.50% 19.25% Average Household Income $53,862 $55,375 $55,497 Median Household Income $37,170 $38,526 $41,016 Per Capita Income $22,867 $22,853 $22,708

38 PROPERTYDOWNTOWN NAME OFFICE PORTFOLIO

MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2016, the population in your selected geography is The current year racial makeup of your selected area is as 120,988. It is estimated that the population in your area will follows: 94.91% White, 2.47% Black, 0.01% Native be 120,294.00 five years from now. The current population American and 0.46% Asian/Pacific Islander. Compare these is 48.76% male and 51.24% female. The median age of the to US averages which are: 70.77% White, 12.80% Black, population in your area is 42.08, compare this to the US 0.19% Native American and 5.36% Asian/Pacific Islander. average which is 37.68. The population density in your area People of Hispanic origin are counted independently of race. is 384.68 people per square mile. People of Hispanic origin make up 1.26% of the current year population in your selected area. Compare this to the US average of 17.65%.

Households Housing There are currently 48,861 households in your selected geography. It is estimated that the number of households in The median housing value in your area was $97,284 in your area will be 48,837 five years from now. The average 2016, compare this to the US average of $187,181. In 2000, household size in your area is 2.41 persons. there were 36,881 owner occupied housing units in your area and there were 13,540 renter occupied housing units in your area. The median rent at the time was $324.

Income Employment In 2016, the median household income for your selected In 2016, there are 131,856 employees in your selected area, geography is $41,016, compare this to the US average this is also known as the daytime population. The 2000 which is currently $54,505. The median household income Census revealed that 56.13% of employees are employed in for your area has changed by 34.07% since 2000. It is white-collar occupations in this geography, and 43.86% are estimated that the median household income in your area employed in blue-collar occupations. In 2016, will be $48,688 five years from now, which represents a unemployment in this area is 6.26%. In 2000, the average change of 18.70% from the current year. time traveled to work was 22.00 minutes.

The current year per capita income in your area is $22,708, compare this to the US average, which is $29,962. The current year average household income in your area is $55,497, compare this to the US average which is $78,425.

39 PRESENTED BY Darpan Patel Nicholas Andrews Senior Associate Senior Associate Cincinnati Office Cincinnati Office Tel: (513) 878-7723 Tel: (513) 878-7741 Fax: (513) 878-7710 Fax: (513) 878-7710 [email protected] [email protected] License: OH SAL 2012000748 License: OH SAL.2013003546

Joel Dumes Stan Falk Jordan Dickman Senior Vice President Investments First Vice President Investments Senior Associate Senior Director – National Retail Group Senior Director – National Retail Group Cincinnati Office Cincinnati Office Cincinnati Office Tel: (513) 878-7735 Tel: (513) 878-7720 Tel: (513) 878-7721 Fax: (513) 878-7710 Fax: (513) 878-7710 Fax: (513) 878-7710 [email protected] [email protected] [email protected] License: OH SAL.2014001272 Licenses: OH SAL.2003013045, KY 63818 Licenses: OH SAL.2012001364