Walgreens 7118 Southside Drive Louisville, Kentucky 40214 Louisville, 7118 Southside Drive

Financial Lease Tenant Investment Financial Lease Tenant Market OverviewFinancial SummaryLease Overview Overview OverviewOverview SummarySummary Overview InvestmentInvestmentOverview OverviewOverview LOUISVILLE, KY offering memorandum Acquired Rite Aid)

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WALGREENS 7118 SOUTHSIDE DRIVE LOUISVILLE, KENTUCKY 40214 LOUISVILLE, 7118 SOUTHSIDE DRIVE

InvestmentInvestment Financial Lease Tenant Market

OverviewOverview Overview Summary Overview Overview

Marcus & Millichap is pleased to present this recently converted Walgreens (Former Rite Aid) in Louisville, Kentucky, the largest city in the state. The lease has eight yearseight has lease The state. the in city largest the Kentucky, Louisville, in Aid) Rite (Former Walgreens converted recently this present to pleased is Millichap & Marcus America.in chain store drug largest the now guaranty, Co. Walgreen full the receiving is property The responsibilities. landlord zero with lease, absolute-net an on remaining 2017 ranking. came in at #17 on the Fortune 500 Walgreens Boots Alliance 39,000 than more sees thoroughfare trafficked heavily this Turnpike, National and Drive Southside of corner hard signalized the along located ideally is property subject The vehicles per day (VPD). This Walgreens is equipped with a drive-thru and located only 3 miles southeast of Sts. Mary & Elizabeth Hospital, a significantis there 331-bed Louisville Within 2016. in passengers million 3.3 than more had which (SDF) Airport primary International Louisville nearby, also is Kentucky in airport largest The care facility. building totaling $75 million in development permits. center, and medical office this includes a new hotel, industrial development underway, The area also features dense demographics, within the five-mile radius there is more than 184,000 residents, thisBell,Taco McDonald’s, Silver’s, John Long Domino’s, Parts, Auto O’Reilly Kroger, BB&T, Queen, Dairy Castle, White include: vicinity immediate the within tenants Additional was a two and a half percent rise from 2010 to 2017. and many more. Pizza Hut, Burger King, INVESTMENT OVERVIEW INVESTMENT

Overview Overview Summary Overview Overview

Ideally Located Along the Signalized Nearby Louisville International Capital Commitment to Louisville Dense Demographics | More Than Walgreens (Former Rite Aid) in (Former Rite Walgreens With Eight Absolute-Net Lease | Zero Landlord Years Remaining Responsibilities by Walgreens | Recently Acquired Co. Guaranty Receiving Full Walgreen 500 (2017) | #17 in Fortune Drive-Thru | Three Equipped With a Miles Southeast of KentuckyOne Health Sts. Mary & Elizabeth Hospital | 331 Bed Primary Care Facility Airport (SDF) | The Largest Airport in Kentucky | More Than 3.3 Million Passengers in 2016 in Market | More Than $75 Million Active Development Permits | New Hotel, Industrial Center, and Medical Office Building 184,000 Residents Within Five Miles | Two and a Half Percent Growth from 2010 to 2017 Louisville, Kentucky | The Largest City Largest City Kentucky | The Louisville, in Kentucky and Hard Corner of Southside Drive 39,000 National Turnpike | More Than Vehicles Pass This Asset Daily INVESTMENT INVESTMENT HIGHLIGHTS

• • • • • • • • Investment Financial Lease Tenant Market Overview Overview Summary Overview Overview 7118 SOUTHSIDE DRIVE SOUTHSIDE 7118 LOUISVILLE, KENTUCKY 40214 KENTUCKY LOUISVILLE, $3,609,517 $3,609,517 7.25% $261,690 $329.61 $23.90 1999 1.90 Acres Feet 10,951 Square Simple Fee Co Walgreen (NNN) Triple-Net Responsible Tenant

CAP RATE NOI FOOT PRICE PER SQUARE FOOT RENT PER SQUARE YEAR BUILT SIZE LOT APPROXIMATE GROSS LEASEABLE AREA TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE

PRICE

FINANCIAL OVERVIEW

the information and bearsthe information inaccuracies. all& Millichap risk & Millichap. for any Marcus is of © 2016 a trademark Activity Marcus ID: Z0330938 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, verify expressed must Buyer approximate. or implied, are or age no representations References been but be reliable, footage has square the accuracy of the information. to we make sourcesThis secured we believe from to as to information 4 Investment Financial Lease Tenant Market Overview Overview Summary Overview Overview RENT FMV/12 2% FMV/12 2% MONTHLY MONTHLY FMV FMV RENT ANNUAL ANNUAL 5/10/2055 5/10/2035 $287,859.00 $23,988.25 2% 5/10/2025 $261,690.00 $21,807.50 5/10/2065 5/10/2045 $316,644.90 $26,387.08 2% ANNUALIZED OPERATING DATA OPERATING ANNUALIZED OPTIONS BASE RENT 5/11/2055 CURRENT 5/11/2035 5/11/2025 5/11/2045

5/11/2005 5/10/2025 20 Years 7 Years Options In 8, 5-Year Yes

LEASE EXPIRATION DATE LEASE EXPIRATION LEASE TERM TERM REMAINING INCREASES RENEW OPTIONS TO FIRST RIGHT OF REFUSAL LEASE COMMENCEMENT DATE LEASE COMMENCEMENT

LEASE SUMMARY LEASE

Investment Financial Lease Tenant Market Overview Overview Summary Overview Overview Walgreens Boots Alliance, Incorporated Incorporated Alliance, Boots Walgreens (Inc) Walgreens Public 13,200+ Illinois Deerfield, (2016) $117.3-Billion (2016) $30.2-Billion TENANT PROFILE

TENANT TRADE NAME TENANT OWNERSHIP LEASE GUARANTORNUMBER OF LOCATIONS Co. Walgreen HEADQUARTERED SALES VOLUME NET WORTH

TENANT OVERVIEW TENANT largest Boots is the nation’s Alliance, Incorporated Walgreens 1901, in Founded chain. Charles built a single the chaindrugstore drugstore from R. Walgreen his ownwhere created he products. drug 20 stores, and were in there By 1919 well over was count 1927 store the public. the Company went Three years later, DC, in all states, 50 8,200 stores Puerto over Rico operates Walgreen Today, 500. Islands. 400 than of its Virgin offer medical More States and the United stores servicesitsthrough Healthcare Clinics. the Company operates Additionally, digital include: businesses that drugstore.com, Walgreens.com, Beauty.com, SkinStore.com and VisionDirect.com. of European acquired 55 Percent the remaining DecemberIn 2014, Walgreen retailerand wholesaler Alliance Boots,and reorganized under a holding company Bootsheadquartered Alliance,calledIncorporated; Chicago. in Walgreens The chain now constitutes Retail the of America Pharmacy States United Walgreen Boots Alliance,Division Incorporated. of Walgreens stores of the 2,186 1,651 itRite Aid transferred has that 2018 said in March includedcountry’sthe of one dealthe in with Illinois-based largest Walgreens, pharmacy operators. by the spring. expected are be transferred The stores to remaining The store-saleannouncedfollowing deal by was summer faileda last attempt Aid deal was RiteAidbuy to outright. Walgreens-Rite The original Walgreens in 2015unveiled but came apart amid regulatory scrutiny.

Investment Financial Lease Tenant MarketMarket Overview Overview Summary Overview OverviewOverview

Louisville is the largest city Commonwealth in the and the 29th-most populous city of Kentucky States. is in the United one of two It cities in Kentucky second-largest first-class, as citydesignated of Lexington. Louisville being the other and, of the state’s is since seat seat the historical 2003, the nominal Jefferson County. business Thedowntown Louisvilledistrictof immediately south is Ohiothe of located Ohio.the of extend roads River and Major southeast Falls the of outwards area in all the downtown directions, from of a wheel. spokes the like The airport is about 6.75 miles south area. downtown of the The industrial the southsections and to west are of the airport, of town while areas most of the residential city of the the southwest, to are south, and of downtown. east feet Louisville. 300 in downtown are over of the 15 buildings in Kentucky completed. was Center the 22,000-seat Twelve 2010, In KFC Yum! Ohio,the of Falls the at location classifications. companiesof dozens Louisvilleis industrial to home and across organizations today strategic several Its 60% of the cities to U.S.) the continental in itand its location practical a (within make travel States unique United road one day’s position in the central of cargo its along destinations. other The Louisville to for the transfer route and Portland and Canal the Louisville important Railroad were and Nashville transportation. and rail links in water Louisville is a significant of manufacturing, center with plants, two Ford and major the headquarters home appliance and major factoryGE Appliances of subsidiary (a of Haier). The city of the American is center also a major with whiskey about industry, one-third of all bourbon coming Louisville. from Brown- is of American headquartered makers one of the major Forman, whiskey, in Louisville a distillery and operates The in the Louisville of Shively. suburb primarycurrent distillery Hill, called by Heaven distillery. the Bernheim site operated distillery, in Louisville is also located near Brown-Forman’s Google Fiber confirmed Louisville that will developments. AprilThe city In 2017, high-tech-related of some or near been has the forefront in the 2010s at be wired network. for its been Fiber has ultrafast building out its similar service Meanwhile, since October 2016, AT&T in the city as well as neighboring counties in Indiana. Beyond networking, through its the city, partnership public–private called Code Louisville, recognized Barack Obama, by President is aiding area residents in the learning coding skills. of software

ABOUT LOUISVILLE ABOUT

Investment Hills Douglass Financial Lease Tenant Market 150 Overview Overview Summary Thixton Overview Overview Jeffersontown 155 Ashville 60 Forest Hill Forest 1065 265 2053 1747 864 150 1 Mile 3 Mile 5 Mile $94,677 $88,710 $93,922 $47,982 $46,949 $46,110 $117,225 $115,349 $121,835 264 Estates Hollow Creek 1116 Spring Mill St Matthews St Meadowview 2052 265 61 West Buechel 150 61 864 Seneca 1747 Gardens Knopp 2017 Average HH Income 2017 Median HH Income 2017 Per Capital Income Hillview Pioneer Village Hollow 1703 Hunters 61 Lynnview 864 1065 Knopp SITE Heritage Creek 1526 1020 Airport Louisville Village Parkway International Hollyvilla 1020 841 10,031 48,458 75,471 10,404 50,915 73,608 10,760 52,781 75,418 1 Mile 3 Mile 5 Mile 1020 Louisville

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M E I L 1865 907 31W 1931

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Parkwood 3

U I I L D E

A 264 R 2010 Households 2017 Households 2022 Households Shively 31W 264 Prairie Village

841

S 111 M U I I L D E

A 31W R 1934 Orell 1934 31W 11,179 63,323 182,748 11,408 62,729 180,471 11,565 63,418 184,761 1934 1 Mile 3 Mile 5 Mile 111 Greenwood 111 Fishtown 111

11 211 11

2000 Population

2010 Population

2017 Population 62 11 Elizabeth Lanesville 11 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. Overview Tenant

Investment Overview Investment Overview LOUISVILLE, KY

WALGREENS (Acquired Rite Aid) offering memorandum

7118 SOUTHSIDE DRIVE LOUISVILLE, KENTUCKY 40214

BROKER OF RECORD: AARON JOHNSON | MARCUS & MILLICHAP | KENTUCKY | LICENSE: 60872