Owensboro Strip Center

OWENSBORO STRIP CENTER

OWENSBORO, KY MULTI-TENANT STRIP CENTER THAT IS PAD TO A HOME DEPOT IN OWENSBORO’S PRIMARY RETAIL NODE 2 Overview

OWENSBORO STRIP CENTER

5220 FREDERICA ST, OWENSBORO, KY 42301

$2,973,000 8.05% PRICE CAP

LEASABLE SF PRICE PER SF LAND AREA 11,737 SF $253.30 1.33 AC

OCCUPANCY PARKING 100% 60 SPACES

Located in the main retail trade area of Owensboro

Nationally recognized Tenant line-up on NNN leases

Firehouse Subs, Mattress Firm, and Visionworks are considered

“Amazon-proof” store concepts

Avg household incomes in a 3-mile radius are above the national average

Clear visibility, and easy access to U.S. Route 60, Owensboro’s main

This information has been secured from sources we believe to be reliable but we make no thoroughfare representations or warranties, expressed or implied, as to the accuracy of the information. 3 Buyer must verify the information and bears all risk for any inaccuracies. Investment Highlights Contact the THE OFFERING provides an opportunity to acquire a multi-tenant strip center situated in the team primary retail area of Owensboro. The subject property features Corporate Guarantees for Mattress Firm and Visionworks, as well as a Firehouse Subs that is operated by an experienced Franchisee. The tenant roster offers a diversified mix of store concepts, all of which are widely CHRIS PETERS considered to be internet-resistant retailers. Each lease is on NNN terms, leaving the Landlord [email protected] with minimal responsibility and expenses. PH: 415.274.2703 CA BRE# 01339983 THE SUBJECT PROPERTY is located on the signalized corner of Frederica Street and Theater Drive, offering ease of access and clear visibility from all directions. The southern Owensboro JOE CACCAMO location is in the city’s main retail corridor, which features the Towne Square Mall and Malco [email protected] Owensboro Cinema, in addition to neighboring retailers that include The Home Depot, Target, PH: 415.274.7394 Walmart Supercenter, and Ulta Beauty. Owensboro is the 4th largest city in Kentucky, and is CA BRE# 01191110 the county seat of Daviess County. Nestled along the banks of the Ohio River, Owensboro is driving distance to Louisville, Nashville, and St. Louis. According to a recent article by USA Today, Owensboro ranks 11th in the top U.S. cities for Millennial home buyers. KENTUCKY COOPERATING BROKER STEVEN SHAFFER [email protected] PH: 502.338.4216 KY BRE# 218433

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

4 BURNS MIDDLE BURNS Zoomed-In Aerial SCHOOL ELEMENTARY

34,262 LOUISVILLE VPD 60

7,853 VPD

431 FREDERICA STREET

® 2831

OUR LADY OF LOURDES SCHOOL

259,000+ RESIDENTS WITH AVERAGE INCOMES 60

EXCEEDINGThis information has been secured from$112K sources we believe WITHIN to be reliable but weA make 5-MILE no representations orRADIUS warranties, expressed 5 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. FOUST ELEMENTARY W 2ND STREET

Zoomed-Out Aerial OWENSBORO CATHOLIC SUTTON HIGH ELEMENTARY SCHOOL CITY OF OWENSBORO

TAMARACK 60 ELEMENTARY

OWENSBORO OWENSBORO KENTUCKY MIDDLE CONVENTION INDIANA SCHOOL CENTER

KENTUCKY WESLEYAN COLLEGE

DAVIESS 161 OWENSBORO COUNTY HIGH COURTHOUSE SCHOOL

CITY OF BRESCIA OWENSBORO 431 FREDERICA STREET UNIVERSITY 2831 FREDERICA STREET CITY OF OWENSBORO OUR LADY OF LOURDES SCHOOL NEWTON PARRISH ELEMENTARY BRECKENRIDGE 22,600 MEDICAL PLAZA DAVIESS VPD COUNTY DAVIESS MIDDLE COUNTY SCHOOL

OWENSBORO COUNTRY CLUB

E 4TH STREET

ESTES 60 ELEMENTARY 2155 34,262 VPD

LOUISVILLE

DAVIESS COUNTY OWENSBORO HIGH MEDICAL OWENSBORO SCHOOL HEALTH COMMUNITY SYSTEM AND TECHNICAL COLLEGE

HILLCREST HIGHLAND GOLF 60 ELEMENTARY COURSE

NEW HARTFORD ROAD

DEER PARK 60 ELEMENTARY 2155

COLLEGE VIEW MIDDLE SCHOOL 9007

® This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 6 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Nearby Retail

7 FREDERICA STREET

[SURROUNDING RETAIL] Submarket Overview

RETAILERS IN CLOSE PROXIMITY INCLUDE:

Home Depot PetSmart Malco Owensboro Cinema Sam’s Club T.J. Maxx Shoe Carnival Olive Garden AT&T Verizon Wireless Cold Stone Creamery Walmart Supercenter Walgreens Target Ulta Macy’s Best Buy Burkes Outlet JC Penny Applebee’s JoAnn Fabrics TGI Fridays

BUSINESS SUMMARY

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 276 1,108 2,819

Employees 6,509 16,272 42,828

Residential 1,650 32,559 67,510 Population

KEY 1-MILE 3-MILES 5-MILES Subject Property

9 Surrounding Retail

10 Income & Expense

CURRENT Price: $2,973,000 Capitalization Rate: 8.05% Price Per Square Foot: $253.30 Total Leased (SF): 100.00% 11,737 Total Vacant (SF): 0.00% 0 Total Rentable Area (SF): 100.00% 11,737 INCOME PER SQUARE FOOT Scheduled Rent $22.21 $260,626 EFFECTIVE GROSS INCOME $260,626 Vacancy Factor (5%) ($13,031) EXPENSE CapEx Reserves ($0.15) ($1,761) Maintenance Expenses NNN Utility Expenses NNN

Insurance NNN

Property Taxes NNN

Non-recapture Management Fee (2.5%) ($6,516) TOTAL OPERATING EXPENSES ($0.71) ($8,276)

NET OPERATING INCOME $239,319

TENANT INFO LEASE TERMS RENT SUMMARY PERCENT OF CURRENT MONTHLY ANNUAL TENANT SQ. FT. TERM RENT/FT GLA RENT RENT RENT Firehouse Subs 2,083 17.75% 1/1/2015 6/30/2020 $47,909 $3,992 $47,909 $23.00 7/1/2020 6/30/2025 $4,392 $52,700 $25.30 Option 1 7/1/2025 6/30/2030 $4,831 $57,970 $27.83 Option 2 7/1/2030 6/30/2030 $5,313 $63,761 $30.61

VisionWorks 4,900 41.75% 1/1/2012 12/31/2016 $7,758 $93,100 $19.00 1/1/2017 12/31/2021 $102,900 $8,575 $102,900 $21.00 Option 1 1/1/2022 12/31/2026 $9,392 $112,700 $23.00 Option 2 1/1/2027 12/31/2031 $10,208 $122,500 $25.00

Mattress Firm 4,754 40.50% 1/1/2012 12/31/2017 $8,320 $99,834 $21.00 1/1/2018 12/31/2019 $109,817 $9,151 $109,817 $23.10 Option 1 1/1/2020 12/31/2024 $9,607 $115,284 $24.25 Option 2 1/1/2025 12/31/2029 $10,566 $126,789 $26.67

OCCUPIED 11,737 100.00% $260,626 $21,719 $260,626 $22.21

VACANT 0 0.00%

CURRENT TOTALS 11,737 100.00%

11,737 1.33 60 RENTABLE SF ACRES SPACES

TOWNE SQUARE MALL

ENTRANCE FOR HOME DEPOT AND 7,853 SAM’S CLUB VPD

431 FREDERICA STREET

MONUMENT SIGN

THEATER DRIVE

431 FREDERICA STREET

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13 Tenant Overview ABOUT MATTRESS FIRM

Mattress Firm is the nation’s largest multi-brand mattress retailer, and is the first chain to have store locations from border-to-border, coast-to-coast. Currently operating over 3,500 stores across 49 states, Mattress Firm offers a broad selection of mattresses and bedding accessories, including leading manufacturers and brand names.

NATION’S LARGEST 3,500 MATTRESS RETAILER #1 MATTRESS FIRM LOCATIONS

In September 2016, Mattress Firm was acquired for $3.8 billion by Steinhoff International, a German international retail holding company, and now operates as a subsidiary of Steinhoff. With operations in 30 countries, Steinhoff International Holdings is the world’s largest multi-brand/ multi-national mattress retail distribution network, and deals primarily with furniture and household goods.

STEINHOFF MARKET $2.9 CAP Billion

Brothers Chris and Robin Sorenson, both former firefighters, opened their first Firehouse Subs restaurant in Jacksonville, Florida, in 1994, and began franchising the concept just a year later.

Firehouse Subs has since become a leader in the fast casual sandwich market with more than 1,100 restaurants in 44 states, Puerto Rico, Canada and Mexico. Each Firehouse Subs franchise is decorated with firefighting memorabilia and artwork, with a menu that features hot and cold subs and salads.

In 2017, the chain was voted #1 among America’s Favorite Chains by Restaurant Business, and ranked #39 on Entreprenuer’s Fanchise 500! list.

VISIONWORKS

Visionworks is the third largest retail optical chain in the U.S., operating over 700 locations in 40 states and the District of Columbia. All Visionworks stores offer designer and exclusive brand frames, lenses, sunglasses and accessories along with leading technology in vision correction. Comprehensive service offerings include contact lens dispensing, in-store labs which provide one- hour service on many prescriptions at nearly all locations and doctors of optometry at or next to every store.

POPULATION 1-MILE 3-MILES 5-MILES 2010 1,582 31,309 63,833

2017 1,650 32,559 67,510 LOUISVILLE (1 HR 49 MIN) 2022 1,701 33,529 69,980

2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $64,751 $61,883 $58,882 OWENSBORO

Median $47,681 $46,666 $43,016

TOP EMPLOYERS EMPLOYER # OF EMPLOYEES Owensboro Health 4,125

US Bank Home Mortgage 2,120

Titan Contracting 600 Specialty Food Group 600 OWENSBORO IS THE 4TH LARGEST Glenmore Distilleries 415 CITY IN KENTUCKY.

SMOTHERS PARK

OWENSBORO is the fourth largest city in Kentucky, and county ECONOMIC In 2017, Owensboro ranked second in Site seat of Daviess County. It is located along the southern banks of GROWTH Selection Magazine’s Top Metros annual the Ohio River, 109 miles southeast of Louisville. report of high performing metros with populations less that 200,000. The region The city is the industrial, medical, retail, and cultural hub of has thriving mining, agriculture, tourism, and bourbon industries western Kentucky. In recent years the city has undertaken a which contribute to the slow, steady growth Owensboro has $270 million project to revitalize the downtown and riverfront, experienced in recent years. The region’s economic growth is including the Owensboro Convention Center, two hotels, world expected to continue in part due to the region’s low cost of doing renowned Smothers Park, and the International Bluegrass Music business and low cost of living. Center. 118,000 This information has been secured from sources we believe to be reliable but we make no representations Owensboro Health, one of the top hospitals in the nation, serves or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information 14 counties in Kentucky and Southern Indiana, and is the region’s OWENSBORO MSA and bears all risk for any inaccuracies. top employer with over 4,100 employees. POPULATION 17 (ESTIMATED) We’d love to hear from you.

CHRIS PETERS JOE CACCAMO [email protected] [email protected] PH: 415.274.2703 PH: 415.274.7394 CA BRE# 01339983 CA BRE# 01191110

KENTUCKY COOPERATING BROKER STEVEN SHAFFER [email protected] PH: 502.338.4216 KY BRE# 218433

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

ZEB RIPPLE CHRIS KOSTANECKI CHRIS PETERS

JOHN ANDREINI JOE CACCAMO DAVE LUCAS

ZANDY SMITH RICK SANNER JACK NAVARRA