20 YEAR NNN Sale-Leaseback

OFFERING MEMORANDUM 3516 Clarks River Road, Paducah, KY 42003 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. Activity ID: Z0330781 this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the

3516 Clarks River Road, Paducah, KY 42003 Table of Contents Investment Highlights 4 Financial Analysis 5 Tenant Overview 6 Depreciation Benefits 7 Surrounding Area 8 Location Overview 9 Local Map 10 Regional Map 11 Demographics / Market Overview 12-13 Investment Highlights PRICE: $2,985,185 | CAP: 6.00% | RENT: $179,111

About the Investment ✓ 20 Year Triple-Net Lease | Zero Landlord Responsibilities ✓ Corporate Guarantee from Mammoth Holdings, LLC (32-unit Operator) ✓ There are 1.50 Percent Annual Rental Increases Beginning Year 2 ✓ There are Four (4) , Five (5)-Year Tenant Renewal Options About the Location ✓ Compelling Real Estate Fundamentals | Situated On One of the Main Arteries Leading to the Center of Paducah with the Historic Paducah Main Street ✓ Strong Traffic Counts | Clarks River Road and Wayne Sullivan Drive | Over 25,000 and 15,000 Vehicles Per Day Respectively ✓ Many National Retail Tenants in the Surrounding Area | Surrounded By: Walmart, Advance Auto Parts, Dollar General, CVS Pharmacy, Walgreens, Kroger, Lowe’s, Waffle House, Pizza Hut, Taco Bell, and Many More ✓ Strong Academic Presence in the Area | West Kentucky Community & Technical College is Located Four Miles From Subject Property | Total Enrollment Exceeds 7,000 Students

About the Tenant / Brand Representative Photos ✓ Mammoth Holdings, LLC currently operates 30 car washes under the “Ultra Car Wash” Brand among other brands. ✓ Consistent Recurring Revenue Business | Mammoth Holding’s unlimited car wash subscription model provides customers with several unlimited car wash subscription options accounting for 50% of the company’s revenue. ✓ Car Wash Industry is Experiencing Rapid Growth | In the U.S., the percentage of drivers that wash their vehicle at a professional car wash has increased from 47% in 1994 to 72% in 2014.

Mammoth Holdings Car Wash – Paducah, KY 4 Financial Analysis PRICE: $2,985,185 | CAP: 6.00% | RENT: $179,111

Property Description Rent Schedule Lease Year(s) Annual Rent Monthly Rent Rent Escalation Property Mammoth Car Wash Year 1 $179,111 $14,926 - Property Address 3516 Clarks River Road Year 2 $181,798 $15,150 1.50% Year 3 $184,525 $15,377 1.50% City, State, ZIP Paducah, KY 42003 Year 4 $187,293 $15,608 1.50% Building Size (Square Feet) 6,768 Year 5 $190,102 $15,842 1.50% Year 6 $192,954 $16,079 1.50% Lot Size +/- 1.21 Acres Year 7 $195,848 $16,321 1.50% Year 8 $198,786 $16,565 1.50% Type of Ownership Fee Simple Year 9 $201,767 $16,814 1.50% The Offering Year 10 $204,794 $17,066 1.50% Year 11 $207,866 $17,322 1.50% Purchase Price $2,985,185 Year 12 $210,984 $17,582 1.50% CAP Rate 6.00% Year 13 $214,148 $17,846 1.50% Year 14 $217,361 $18,113 1.50% Annual Rent $179,111 Year 15 $220,621 $18,385 1.50% Lease Summary Year 16 $223,930 $18,661 1.50% Year 17 $227,289 $18,941 1.50% Property Type Net-Leased Car Wash Year 18 $230,699 $19,225 1.50% Year 19 $234,159 $19,513 1.50% Tenant/Guarantor Mammoth Holdings, LLC (32-Units) Year 20 $237,672 $19,806 1.50% Lease Commencement Close of Escrow Lease Expiration 20 Years from Close of Escrow INVESTMENT SUMMARY Marcus & Millichap is pleased to present the exclusive listing for the Mammoth Lease Term Remaining 20 Years Car Wash located at 3516 Clarks River Road in Paducah, Kentucky. The site consists of 6,768 total square feet of building space and sits on 1.21 acres of Lease Type Triple Net Lease land. The site will be subject to a 20-year sale-leaseback with Mammoth Rental Increases 1.50% Annually Holdings, LLC. The lease will call for 1.50% annual rental escalations during the base term and throughout the four, five-year renewal option periods. Options to Renew Four, Five-Year Options

Mammoth Holdings Car Wash – Paducah, KY 5 Tenant Overview

Founded in 2002, Mammoth Holdings is a holding company that owns multiple car wash brands and operates 32 unit in 5 states. The company washes more than 3 million cars annually. Mammoth’s brands include Finish Line, Marc-1, Ultra, Swifty, Wash Me Fast, Pals, and QuickWash. In 2018, the company received substantial outside equity investment. This transaction will allow Mammoth to embark on a new growth strategy that will include the acquisition of existing car wash sites as well as ground-up development of new car wash sites. Mammoth’s Brands:

Mammoth Holdings Car Wash – Paducah, KY 6 Depreciation Benefits Accelerated Depreciation Bonus Depreciation Assumptions Assumptions Asset Type Car Wash Asset Type Car Wash Ownership Fee Simple Ownership Fee Simple Rent $179,111 Rent $179,111 Cap Rate 6.00% Cap Rate 6.00% Purchase Price $2,985,183 Purchase Price $2,985,183 Loan Amount $1,940,369 Loan Amount $1,940,369 LTV 65.00% LTV 65.00% Interest Rate 4.45% Interest Rate 4.45% Amortization 25 Amortization 25 Debt Service $128,762 Debt Service $128,762 Depreciable Basis for Improvements 80.00% Depreciable Basis for Improvements 80.00% Useful Life 15 Useful Life 1 Federal Tax Rate 37.00% Federal Tax Rate 37.00% Year 1 Depreciation $159,210 Year 1 Depreciation $2,388,147 Potential Tax Savings $58,908 Potential Tax Savings $883,614 Standard Depreciation Ground Lease Assumptions Assumptions Asset Type QSR Asset Type QSR Ownership Fee Simple Ownership Ground Only Rent $179,111 Rent $179,111 Cap Rate 6.00% Cap Rate 6.00% Purchase Price $2,985,183 Purchase Price $2,985,183 Loan Amount $1,940,369 Loan Amount $1,940,369 LTV 65.00% LTV 65.00% Interest Rate 4.45% Interest Rate 4.45% Amortization 25 Amortization 25 Debt Service $128,762 Debt Service $128,762 Depreciable Basis for Improvements 80.00% Depreciable Basis for Improvements 0.00% Useful Life 39 Useful Life 0 Federal Tax Rate 37.00% Federal Tax Rate 37.00% Year 1 Depreciation $61,235 Year 1 Depreciation $0 Potential Tax Savings $22,657 Potential Tax Savings $0 Mammoth Holdings Car Wash – Paducah, KY 7 Surrounding Area Property Address: 3516 Clarks River Road, Paducah, KY 42003

Mammoth Holdings Car Wash – Paducah, KY 8 Location Overview Property Address: 3516 Clarks River Road, Paducah, KY 42003

The subject property benefits from being well-positioned in a dense retail corridor close to the shoreline of the Tennessee and Ohio Rivers. Clarks River Road serves as a main artery to the center of Paducah. Major national retail tenants in the area include: Walmart, Advance Auto Parts, Dollar General, CVS Pharmacy, Walgreens, Kroger, Lowe’s, Waffle House, Pizza Hut, Taco Bell, and many more. The subject property benefits from being close to many academic institutions, most notably ADTC: 15,000 West Kentucky Community and Technical College, one of 16 two-year, open- admissions colleges of the Kentucky Community and Technical College System, which has a total enrollment of over 7,000 students.

The subject investment property is situated on Clarks River Road, which has an average daily traffic count of 25,000 vehicles. The subject property intersects with nearby Wayne Sullivan Drive, which brings an additional 15,000 vehicles into the immediate area per day. There are approximately 34,000 individuals within a five- mile radius of this property and 69,000 individuals within a ten-mile radius.

Paducah is a home rule-class city in and the county seat of McCracken County, Kentucky, United States. The largest city in the Jackson Purchase region, it is located at the confluence of the Tennessee and the Ohio rivers, halfway between St. Louis, Missouri, to the northwest and Nashville, Tennessee, to the southeast. Twenty blocks of the city's downtown have been designated as a historic district and listed on the National Register of Historic Places. Paducah is the hub of its micropolitan area, which includes McCracken, Ballard and Livingston counties in Kentucky and Massac County in Illinois. Dippin' Dots, the Paducah & Louisville Railway and several barge companies have their headquarters in Paducah. The river continues to be a prominent source of industry for Paducah. Twenty-three ADTC: 25,000 barge companies have their operating or corporate headquarters in Paducah. In 2017, the city of Paducah opened a 340-foot transient boat dock that provides space for transient boaters to enjoy Paducah by spending a few hours or spending several nights. A federal National Weather Service Forecast Office is based in Paducah, providing weather information to western Kentucky, southeastern Missouri, southern Illinois, and southwestern Indiana. Additionally, Paducah has several Museums to educate and entertain, such as the Paducah Railroad Museum, the River Discovery Museum, the Tilghman Civil War Museum, and the oldest, the William Clark Market House Museum, founded in 1968.

Mammoth Holdings Car Wash – Paducah, KY 9 Local Map Property Address: 3516 Clarks River Road, Paducah, KY 42003

Mammoth Holdings Car Wash – Paducah, KY 10 Regional Map Property Address: 3516 Clarks River Road, Paducah, KY 42003

KENTUCKY

Mammoth Holdings Car Wash – Paducah, KY 11 Demographics Property Address: 3516 Clarks River Road, Paducah, KY 42003 3 Miles 5 Miles 10 Miles POPULATION 2023 Projection 10,312 34,404 68,601 10 Miles 2018 Estimate 10,677 35,071 68,694 2010 Census 10,608 35,016 68,352 2000 Census 11,424 36,402 68,463

INCOME Average $44,006 $54,551 $66,360 5 Miles Median $31,821 $37,448 $48,147 Per Capita $18,857 $24,185 $28,751

HOUSEHOLDS 3 Miles 2023 Projection 4,411 15,185 29,797 2018 Estimate 4,530 15,341 29,548 2010 Census 4,505 15,307 29,365 2000 Census 4,855 15,845 28,966

HOUSING 2018 $72,600 $97,831 $126,485

EMPLOYMENT 2018 Daytime 11,931 47,001 81,618 Population 2018 Unemployment 11.43% 8.86% 7.44% 2018 Median Time 19 Mins 18 Mins 20 Mins Traveled

RACE & ETHNICITY White 81.78% 78.24% 85.06% Native American 0.02% 0.03% 0.04% African American 12.98% 16.36% 10.40% Asian/Pacific Islander 0.61% 0.86% 0.87%

Mammoth Holdings Car Wash – Paducah, KY 12 Market Overview City: Paducah | County: McCraken | State: Kentucky Paducah is located 115 miles from Nashville, which is located on the Cumberland River, is the capital of the state of Tennessee and the county seat of Davidson County. Located in northern middle Tennessee, Nashville is the core of the largest metropolitan area in Tennessee and ranks as the 24th largest city by population in the United States. The city is a center for music, healthcare, publishing, banking, and transportation industries. As the "home of country music", Nashville has become a major music recording and production center. The Big Four record labels, as well as numerous independent labels, have offices in Nashville, mostly in the Music Row area. Nashville has been the headquarters of guitar company Gibson since 1984. Since the 1960s, Nashville has been the second-largest music production center (after New York) in the United States. Nashville's music industry is estimated to have a total economic impact of $6.4 billion per year and to contribute 19,000 jobs to the Nashville area. Although Nashville is renowned as a music recording center and tourist destination, its largest industry is health care. Nashville is home to more than 300 health care companies, including Hospital Corporation of America (HCA), the world's largest private operator of hospitals. As of 2012, it is estimated the health care industry contributes US$30 billion per year and 200,000 jobs to the Nashville-area economy.

In recent times Nashville has been described as a "southern boomtown" by numerous publications, as evidenced by the city having the third fastest growing economy in the United States as of 2017. It has been stated by the US Census bureau that Nashville "adds an average of 100 people a day to its net population increase". The Nashville region was also stated to be the "Number One" Metro Area for Professional and Business Service Jobs in America, as well as having the “Hottest Housing Market in America“, as stated by Zillow. Major Employers Employer Estimated # of Employees Lourdes Hospital 1,530 USEC 1,510 Western Baptist Hospital Child Development 1,409 Act For Health Inc 1,165 Baptist Healthcare System Inc 1,052 National Railway Equipment Co 950 Walmart 850 Pepsi-Cola 400 Lowe’s 310 Nashville, Tennessee James Transportation LLC 300 James Built 290

Mammoth Holdings Car Wash – Paducah, KY 13 Exclusive Net-Lease Offering

Colby Haugness Marcus & Millichap 9300 Shelbyville Road, Suite 1012 Louisville, KY 40222 Tel: 513-878-7733 3516 Clarks River Road, Paducah, KY 42003 Fax: 858-332-1750 License: 242197