Citadel Plaza

A 1 5 , 7 1 1 - Square Foot Retail Center Located in Louisville, Kentucky

THE KLINK GROUP of Marcus & Millichap OFFERING MEMORANDUM CITADEL PLAZA 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. Activity ID: ZAA0260529

Presented By: TABLE OF CONTENTS THE KLINK GROUP of Marcus & Millichap OFFERING SUMMARY Jordan Klink INDIANAPOLIS OFFICE First Vice President of Investments L O C A T I O N OVERVIEW [email protected] P (317) 218-5316 FINANCIAL ANALYSIS Ben Sullivan INDIANAPOLIS OFFICE Investment Associate [email protected] MARKET DEMOGRAPHICS P (317) 218-5333 OFFERING SUMMARY THE OPPORTUNITY

The Klink Group of Marcus Millichap is pleased to present for sale Citadel Plaza, a 15,711 square-foot 100% occupied retail strip center, located in Louisville, Kentucky. PROPERTY SUMMARY

Address 8603 Citadel Way Louisville is the largest city in Kentucky and is situated along the Ohio River in the Louisville, KY 40220 northern region of the state on the Indiana border. The city is the seat of Jefferson Offering Price: $2,075,000 County and is the 29th most-populous city in the United States. Louisville has recently seen steady growth, with its population increasing from 1,241,373 to 1,301,790 between Cap Rate: 8.17% 2010 and 2018. A large portion of Louisville’s local economy is driven by healthcare, distribution/logistics and manufacturing, with major employers that include Humana, Year Built: 2008

Norton Healthcare, UPS, Amazon, General Electric, and Ford Motor Company. Size (Square Feet): 15,711

Lot Size: 1.24 Acres Citadel Plaza is situated on 1.24 acres just off of Hurstbourne Parkway, one of the busiest retail corridors in the Louisville Metropolitan Statistical Area. The property benefits from daily Ownership Interest: Fee Simple traffic counts of 55,993 vehicles-per-day and an affluent five-mile population of 229,626 Zoning: Commercial people earning an average of $84,395 annually per household. The property’s submarket includes 5,800,000 square feet of retail inventory that includes retailers such as Target, Kroger, Home Depot, AMC, LA Fitness, Chick-fil-A, McDonald’s, Walgreens, Taco Bell, Panera Bread, and many more in the immediate area.

The property is 100% occupied with six internet resistant, service-oriented tenants. Five of the six tenants are on NNN leases, providing the landlord with expense reimbursements for common area maintenance, property taxes, insurance, and part of the management fee. In addition to the NNN leases, more than 70% of the building is leased thru April 2024, providing the landlord with strong lease longevity. The building was constructed in 2008 and the roof was recently replaced in 2018. THE OPPORTUNITY

INVESTMENT HIGHLIGHTS

• Excellent Location just off of Hurstbourne Parkway with daily traffic counts of 55,993 vehicles per day

• Attractive Demographics with an affluent five-mile population of 229,626 people earning an average of $84,395 annually per household

• Internet resistant, service-oriented tenants that fit the mold of the ever evolving retail landscape, offering a secure and viable long term investment

• 100% occupied with NNN leases for five of six tenants, providing for attractive expense insulation and opportunity for passive income

• 70% of the leasable area is occupied by tenants that have more than four and a half years remaining on their lease, translating into significantly less lease rollover risk in the near term

• 2018 roof replacement with 15-year warranty, limiting exposure to major capital expenses for more than a decade

• Almost 12% cash-on-cash return and 16.5% return with principal pay down at list price with current financing available

LOCATION OVERVIEW LOCATION OVERVIEW

LOUISVILLE’S CONVENIENT TRANSPORTATION INFRASTRUCTURE

Louisville’s road, rail and air transportation offer convenient travel options both regionally and internationally. The city has an inner and outer interstate beltway, I-264 and I-265, providing road transportation around Louisville. The city is also served by I-65 and I-64, providing transportation north to south and east to west. The I-65, I-64 and I-71 all intersect at Spaghetti Junction, which was part of the Ohio River Project. The project’s scope included building the Abraham Lincoln Bridge, Lewis & Clark Bridge and renovating Spaghetti Junction and John F. Kennedy Memorial Bridge. Louisville’s freeway system puts the city within a one-day drive of about 50% of the United States

The Louisville Airport is a logistics hub for the city, providing 28 nonstop flights serving 3.4 million passengers in 2017. During that same year, the airport ranked third in North America and seventh in the world for total air freight cargo, handling 5.7 billion pounds. Louisville’s public transportation is provided by Louisville’s Transit Authority of River City (TARC), serving Louisville, the largest city in Kentucky, sits along the Ohio River in the northern 45,000 passenger a day. Two public inland ports operate in the region of the state, on the Indiana border. The city is the seat of Jefferson metropolitan area with 48 private terminals on the Ohio River, offering County and is the 29th most-populous city in the United States. Louisville has convenient access to the U.S. inland waterway system from the St. recently seen steady growth, with its population increasing from 1,241,373 to Lawrence Seaway to the Gulf of Mexico. The area is also served by three 1,301,790 between 2010 and 2018. major railroad companies, Canadian Pacific, CSX, and Norfolk Southern (NS). The CSX and NS railroads provide direct rail services to all markets east of the Mississippi River, with connecting service to the West Coast. LOCAL ECONOMY DRIVEN BY HEALTHCARE, DISTRIBUTION/ LOGISTICS AND MANUFACTURING LOUISVILLE’S LARGEST ATTRACTIONS AND ENTERTAINMENT DESTINATIONS Four of Louisville’s largest employers are in the healthcare sector and include KentuckyOne Health and its subsidiary Jewish Hospital & St. Mary’s Health Care; Louisville has several world-renowned attractions including sports arenas, Humana; and Norton Healthcare, totaling approximately 36,247 employees. museums and attractions. Louisville is home to the Kentucky Derby, the The United Parcel Service and Amazon have large distribution and logistical world’s most popular horse race, known as “The Most Exciting Two presences in Louisville, accounting for 27,733 employees. Ford Motor Company Minutes in Sports.” The derby occurs every first weekend in May at and General Electric Appliances have manufacturing plants in Louisville that Churchill Downs. The city’s notable museums include the Frazier History total 18,600 employees. Ford’s assembly plant has 3,154,173 square feet Museum, the Louisville Slugger Museum & Factory, the Kentucky Science spanning 180 acres. General Electric’s Appliance Park is a 2.5 million-square Center and the Muhammad Ali Center. Louisville’s entertainment hub is foot corporate campus spanning 1,000 acres. located at Fourth Street Live!, which is within walking distance of historic downtown hotels, the Kentucky International Convention Center, Waterfront Park, the KFC YUM Center, and Slugger Field. Louisville has also earned the moniker of the bourbon capital of the world as home to more than a dozen craft and heritage distillers and distillery head - quarters. LOCATION OVERVIEW

Kentucky is known for its bourbon, horse races and the music scene, but even a short visit to Louisville makes it clear that the state's greatness is not necessarily confined to whiskey and honky- tonk country music.

Downtown Louisville has an incredible art scene and is booming with independent businesses and charming shops. There is much to discover: from an art gallery and hotel hybrid to must-try restaurants and a museum dedicated to America’s sport, baseball, one of the greatest music festivals in the country. So, whether you're a local looking for a fun night out or planning a trip to discover all of the area's cultural gems, you'll want to consult our list of very fun things to do in Louisville, KY while in town. Downtown Louisville, Kentucky

Destinations

Point of Interest Distance Travel Time

Louisville International 11.5 miles 15 min. Airport

Downtown Louisville 11.8 miles 21 min.

Cincinnati, Ohio 109 miles 2 hrs. 56 min.

Indianapolis, Indiana 124 miles 2 hrs.

St. Louis, Missouri 272 miles 4 hrs.

Fourth Street Live, Louisville, Kentucky LOCATION OVERVIEW

Burger King

Subject Property FINANCIAL ANALYSIS FINANCIAL ANALYSIS

F i n a n c i a l S u m m a r y N e w Financing Summary

Price $2,075,000 Original Loan Amount $1,452,500

Down Payment $622,500 Interest Rate 4.50%

Price/SF $132.07 Amortization 300

Parcel Size 1.24 Acres Annual Debt Service $96,882

Year Built/Renovated 2008 Principal Reduction $32,177

Ownership Interest Fee Simple

I n c o m e

Net Operating Income $169,553

Cap Rate: 8.17% FINANCIAL ANALYSIS

C u r r e n t For the Months J a n - D e c Current Operating Expenses 2 0 2 0 Common Area Maintenance $2.00 $31,500 Potential Gross Rent $12.11 $190,297

Expense Reimbursements $58,772 Real Estate Taxes $1.46 $22,970

Misc. Income $0 Insurance $0.20 $3,142

Potential Gross Income $249,069 Management Fee 4.00% $9,450 Vacancy 5.00% $12,453 Total $4.27 $67,062 Effective Gross Income $236,615

Operating Expenses $67,062

Net Operating Income 8.17% $169,553

Replacement Reserves $0.10 $1,571

Net Cash Flow Before Debt $167,982

Annual Debt Service $96,882

Net Cash Flow After Debt 11.42% $71,101

Principal Reduction $32,177

Total Return 16.59% $103,278 FINANCIAL ANALYSIS

CITADEL PLAZA RENT ROLL

TOTAL PRO- LEASE LEASE RENT RENT RENT PER TENANT GLA CAM TAXES INSURANCE MGMT. TOTAL RATA START END PER MO. PER YR. PER SF. SF.

J. Gumbos 2,074 13.20% 10/01/10 10/31/20 $3,111.00 $37,332.00 $18.00 $4,158.30 $3,032.26 $414.77 $0.00 $7,605.33 $3.67

Karen Foot 1,650 10.50% 05/01/16 12/31/20 $1,950.00 $23,400.00 $14.18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Wright Steps 3,737 23.79% 05/20/19 05/31/24 $4,126.27 $49,515.24 $13.25 $7,492.55 $5,463.62 $747.35 $2,247.77 $15,951.29 $4.27 Academy

Lovely Nails Spa 950 6.05% 03/01/16 02/28/21 $1,200.00 $14,400.00 $15.16 $1,904.72 $1,388.93 $189.99 $571.41 $4,055.05 $4.27

Elevate Salon 2,400 15.28% 04/15/19 04/30/24 $2,000.00 $24,000.00 $10.00 $4,811.92 $3,508.88 $479.97 $1,443.57 $10,244.34 $4.27

Under LOI 4,900 31.19% TBD TBD $3,470.83 $41,650.00 $8.50 $9,824.33 $7,163.96 $979.94 $2,947.30 $20,915.52 $4.27

Rent Income Total

Total 17,258 100.00% Gross $190,297 $249,069 $28,192 $20,558 $2,812 $7,210 $58,772

Vacant 0 0.00% Vacant $0 $0 $0 $0 $0 $0 $0

Occupied 17,258 100.00% Scheduled $190,297 $249,069 $28,192 $20,558 $2,812 $7,210 $58,772

Fourth Street Live, Louisville, Kentucky MARKET DEMOGRAPHICS DEMOGRAPHICS

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles . 2023 Projection Total Average Household Retail $65,851 $66,378 $66,695 Total Population 12,427 93,159 237,593 Expenditure . 2018 Estimate . Consumer Expenditure Top 10 Categories Total Population 11,755 90,797 229,743 Housing $15,556 $15,677 $15,703 . 2010 Census Transportation $14,589 $14,543 $14,607 Total Population 11,419 88,057 221,176 Shelter $8,081 $8,125 $8,128 . 2000 Census Food $7,107 $7,081 $7,103 Total Population 11,854 84,653 206,605 Personal Insurance and Pensions $5,504 $5,468 $5,531 . Current Daytime Population Health Care $4,497 $4,680 $4,681 2018 Estimate 11,134 102,592 266,824 Utilities $4,187 $4,212 $4,227 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $2,586 $2,636 $2,644 . 2023 Projection Cash Contributions $2,309 $2,402 $2,467 Total Households 5,373 41,199 103,499 Household Furnishings and Equipment $1,632 $1,640 $1,644 . 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 5,034 39,835 99,346 . Population By Age Average (Mean) Household Size 2.23 2.27 2.29 2018 Estimate Total Population 11,755 90,797 229,743 . 2010 Census Under 20 20.93% 22.25% 23.37% Total Households 4,904 38,720 95,968 20 to 34 Years 24.72% 21.60% 20.91% . 2000 Census 35 to 39 Years 6.49% 6.51% 6.60% Total Households 4,890 36,394 88,188 40 to 49 Years 10.42% 11.66% 11.85% . Occupied Units 50 to 64 Years 20.50% 19.93% 19.99% 2023 Projection 5,373 41,199 103,499 Age 65+ 16.95% 18.07% 17.28% 2018 Estimate 5,299 42,033 104,753 Median Age 38.23 39.71 39.29 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles . Population 25+ by Education Level . 2018 Estimate 2018 Estimate Population Age 25+ 8,429 65,316 163,013 $150,000 or More 6.96% 8.63% 9.84% Elementary (0-8) 2.24% 1.88% 1.58% $100,000 - $149,000 16.22% 15.76% 16.24% Some High School (9-11) 3.76% 4.05% 4.15% $75,000 - $99,999 15.51% 14.52% 14.20% High School Graduate (12) 22.42% 22.31% 21.42% $50,000 - $74,999 22.21% 22.68% 21.11% Some College (13-15) 23.60% 22.96% 22.60% $35,000 - $49,999 13.89% 14.49% 13.69% Associate Degree Only 8.21% 8.55% 8.22% Under $35,000 25.21% 23.93% 24.95% Bachelors Degree Only 24.00% 24.36% 25.27% Average Household Income $77,688 $81,284 $84,379 Graduate Degree 15.27% 15.43% 16.20% DEMOGRAPHICS

Population Race and Ethnicity The current year racial makeup of your selected area is as In 2018, the population in your selected geography is 90,969. follows: 76.99% White, 13.80% Black, 0.03% Native American The population has changed by 7.28% since 2000. It is and 3.87% Asian/Pacific Islander. Compare these to US averages estimated that the population in your area will be 93,349.00 which are: 70.20% White, 12.89% Black, 0.19% Native American five years from now, which represents a change of 2.62% and 5.59% Asian/Pacific Islander. People of Hispanic origin are from the current year. The current population is 48.07% counted independently of race. male and 51.93% female. The median age of the population in your area is 39.70, compare this to the US average which is People of Hispanic origin make up 6.20% of the current year 37.95. The population density in your area is 3,213.90 people population in your selected area. Compare this to the US per square mile. average of 18.01%.

Households Housing There are currently 39,868 households in your selected The median housing value in your area was $186,330 in 2018, geography. The number of households has changed by 9.49% compare this to the US average of $201,842. In 2000, there since 2000. It is estimated that the number of households in were 24,532 owner occupied housing units in your area and your area will be 41,238 five years from now, which there were 11,882 renter occupied housing units in your area. represents a change of 3.44% from the current year. The The median rent at the time was $545. average household size in your area is 2.27 persons.

Income Employment In 2018, the median household income for your selected In 2018, there are 73,719 employees in your selected area, this is geography is $62,155, compare this to the US average which also known as the daytime population. The 2000 Census revealed is currently $58,754. The median household income for your that 71.74% of employees are employed in white-collar area has changed by 24.76% since 2000. It is estimated that occupations in this geography, and 28.34% are employed in blue- the median household income in your area will be $71,490 collar occupations. In 2018, unemployment in this area is 3.14%. five years from now, which represents a change of 15.02% In 2000, the average time traveled to work was 23.00 minutes. from the current year.

The current year per capita income in your area is $35,757, compare this to the US average, which is $32,356. The current year average household income in your area is $81,315, compare this to the US average which is $84,609. Citadel Plaza

A 1 5 , 7 1 1 - Square Foot Retail Center Located in Louisville, Kentucky

EXCLUSIVELY LISTED BY: JORDAN KLINK BEN SULLIVAN Indianapolis Office Indianapolis Office First Vice President of Investments Associate [email protected] [email protected] P (317) 218-5316 P (317) 218-5333

Colby Haugness Nicholas Weaver David Klink Jason Dean Richard Niewiadomski Broker of Record, Kentucky Indianapolis Office Indianapolis Office Indianapolis Office Indianapolis Office RE License #: 242197 Senior Associate Associate Director of Finance Financial Analyst 513-878-7700

THE KLINK GROUP of Marcus & Millichap OFFERING MEMORANDUM