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Circle K 1650 S Kentucky Avenue, Evansville, IN 47714 OFFERING MEMORANDUM ™ CONFIDENTIALITY & DISCLAIMER STATEMENT

This Marketing Brochure contains select information pertaining to the business Like all real estate investments, this investment carries significant risks. Buyer and and affairs of Kangaroo Express located at 1650 S Kentucky Avenue, Evansville, Buyer’s legal and financial advisors must request and carefully review all legal and Indiana 47714 here to referred to as “Property”. Information in this Marketing financial documents related to the Property and tenant. While the tenant’s past Brochure is confidential and provided solely for the purpose of a review by a performance at this or other locations is an important consideration, it is not a prospective purchaser of the Property. It is not to be used for any other purpose guarantee of future performance. and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. 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 This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also or no record of actual performance, or comparable rents for the area. Returns are known as Matthews Retail Advisors) based in part upon information supplied by not guaranteed; the tenant and any guarantors may fail to pay the lease rent or the Seller and in part upon financial information obtained from sources deemed property taxes, or may fail to comply with other material terms of the lease; cash reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has flow may be interrupted in part or in whole due to market, economic, environmental not and will not verify any of this information, nor has Matthews Retail Group, Inc. or other conditions. Regardless of tenant history and lease guarantees, Buyer is conducted any investigation regarding these matters. Matthews Retail Group, Inc. responsible for conducting his/her own investigation of all matters affecting the makes no guarantee, warranty or representation whatsoever about the accuracy intrinsic value of the Property and the value of any long-term lease, including the or completeness of any information provided. 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 It is the Buyer’s responsibility to independently confirm the accuracy and a potential replacement tenant considering the location of the Property, and Buyer’s completeness of all material information before completing any purchase. This legal ability to make alternate use of the Property. Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly By accepting this Marketing Brochure you agree to release the Seller and Matthews denies any obligation to conduct a due diligence examination of this Property for Retail Group, Inc. of any and all liability and hold the parties harmless from any kind the Buyer. Any projections, opinions, assumptions or estimates used in this of claim, cost, or expense arising out of your investigation and/or purchase of this Marketing Brochure are for example only and do not represent the current or Property. future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, NON-ENDORSEMENT NOTICE financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any advisors should conduct a careful, independent investigation of any property to commercial tenant or lessee identified in this Marketing Brochure. The presence of determine to their satisfaction the suitability of the Property for their investment any corporation’s logo or name is not intended to indicate or imply affiliation with, or goals. sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ii TABLE OF CONTENTS

PRICING AND FINANCIAL ANALYSIS Investment Overview ...... 2 PRESENTED BY Financial Overview 3 Rahul Chhajed Company Overview ...... 4 Associate PROPERTY DESCRIPTION License No. 01986299 Property Overview 6 O 310.955.1775 M 818.434.1106 Bird’s Eye ...... 7 [email protected] Tenant Map ...... 8 Regional Map ...... 9

DEMOGRAPHICS Aron Cline Demographics Report 11 City Overview ...... 12 VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 [email protected]

Chris Hake Broker of Record License No. RB14047804

iii ™ PRICING AND FINANCIAL ANALYSIS ™ Investment Overview

INVESTMENT OVERVIEW Rahul Chhajed & Aron Cline of Matthews Retail Advisors are pleased to exclusively offer for sale to qualified investors a net-leased Kangaroo Express Gas Station located at 1650 S Kentucky Ave, Evansville, IN 47714. Kangaroo Express has just under 4 years remaining on its lease and has an additional five year option to renew. The Offering includes a corporately guaranteed lease as the lease was assumed by Mac’s Convenience Stores LLC, a wholly owned subsidiary of Circle K Stores Inc. The lease contains a scheduled 9% rental increase in the option period and is situated on a hard-corner location. The site has two islands and four pumps and is located right off of Hwy 41, which sees a high volume of traffic daily.

INVESTMENT HIGHLIGHTS • Two fueling stations with four gas pumps - situated on a hard signalized corner

• Highway 41 sees ±26,500 vehicles per day, driving heavy traffic to this seasoned site

• BBB Credit Rating (Standard & Poor’s)

• Kangaroo Express was recently acquired by Circle K/Alimentation Couche-Tard

• Absolute NNN property gives owner the convenience of having zero landlord responsibilities

• Potential to take advantage of accelerated depreciation (verify with CPA)

• Tenant is paying a low rental rate at only $13.41 per square foot

• Small price point deal

• Population of ±118,000 within a 5-mile radius

2 Financial Overview

EXECUTIVE SUMMARY 1650 S Kentucky Avenue Evansville, Indiana 47714 ANNUALIZED OPERATING DATA List Price ...... $365,000 Gross Leasable Area ...... 1,968 SF Monthly Rent Annual Rent Rent/SF CAP Rate CAP Rate - Current ...... 7.25 % Current - 2/28/2020 $2,200.00 $26,400.00 $13.41 7.25% Year Built ...... 1955 Option 1 - 2/28/2025 $2,398.00 $28,776.00 $14.62 7.90% Lot Size ±0.39 Acres (16,954 SF)

TENANT SUMMARY Tenant Trade Name Kangaroo Express Type of Ownership Fee Simple Lease Guarantor Corporate (Mac’s Convenience Stores) Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 5 Years Lease Expiration Date 2/28/2020 Term Remaining on Lease 3.75 Years Increases 9% Option Increase Options One (1), Five (5) Year Option

3 ™ Company Overview

Alimentation Couche-Tard Inc. operates and licenses convenience stores. The Property Name Kangaroo Express company’s convenience stores sell tobacco products, grocery items, beverages, Property Type Net Leased coffee, snacks, beer, wine, and fresh food offerings, as well as other retail products Parent Company Trade Name Alimentation Couche-Tard Inc. and services, road transportation fuel, stationary energy, marine fuel, lubricants, and Ownership Public chemicals. It operates its convenience store and road transportation fuel retailing chain under various banners, including Circle K, Statoil, Kangaroo Express, Couche-Tard, and Credit Rating BBB- Macs. The company is also involved in the sale of lottery tickets, calling cards, gift cards, Rating Agency S&P postage stamps, and bus tickets; and issuance of money orders and cashing cheques, Revenue $34.32B as well as automatic teller machines and car wash services.

Net Income $967.40M As of April 26, 2015, it operated and licensed 10,078 convenience stores located in North Stock Symbol ATD-A,ATD-B America, Scandinavia, , the Baltics, and Russia, as well as 4,700 stores, which are operated by independent operators under the Circle K banner in , , Board Toronto Stock Exchange , , , Japan, , , , the , the No. of Locations ±14,700 , and . The company was formerly known as Actidev Inc. Headquartered Laval, and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Web Site http://www.couche-tard.com Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada. Year Founded 1980

4 Representative Photo

PROPERTY DESCRIPTION ™ Property Overview

THE OFFERING Property Name ...... Circle K / Kangaroo Express Property Address 1650 S Kentucky Avenue Evansville, Indiana 47714 Assessor’s Parcel Number 82-06-33-011-032.023-027

SITE DESCRIPTION Number of Stories ...... One Year Built ...... 1955 Gross Leasable Area (GLA) ...... 1,968 SF Lot Size ...... ± 0.39 Acres (16,954 SF) Type of Ownership Fee Simple Parking ...... ±9 Surface Spaces Parking Ratio ...... 4.57: 1,000 SF Landscaping Professional Topography ...... Generally Level

CONSTRUCTION Foundation ...... Concrete Slab Framing Wood Exterior ...... Brick Parking Surface ...... Asphalt Roof ...... Pitched

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6 PROPERTY DESCRIPTION Bird’s Eye

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7 ™ Tenant Map

8 PROPERTY DESCRIPTION Regional Map

9 ™ DEMOGRAPHICS ™ Demographics Report

Population 1-Mile 3-Mile 5-Mile 2021 Projection 12,430 60,672 119,045 2016 Estimate 12,491 60,759 118,009 2010 Census 12,751 61,623 117,779 2000 Census 14,400 66,488 119,793

Households 2021 Projection 3,116 14,219 28,950 2016 Estimate 3,097 14,125 28,525 2010 Census 3,104 14,123 28,141 2000 Census 3,649 15,989 30,110

Income $0 - $15,000 22.67% 21.64% 19.25% $15,000 - $24,999 18.96% 15.75% 14.65% $25,000 - $34,999 19.03% 17.14% 15.86% $35,000 - $49,999 14.44% 16.63% 16.44% $50,000 - $74,999 14.05% 15.19% 16.09% $75,000 - $99,999 7.37% 7.02% 8.35% $100,000 - $124,999 1.99% 3.30% 4.52% $125,000 - $149,999 0.92% 1.70% 2.24% $150,000 - $199,999 0.25% 0.85% 1.51% $200,000 - $249,999 0.14% 0.32% 0.45% $250,000 - $499,999 0.14% 0.37% 0.50% $500,000+ 0.04% 0.10% 0.13% 2016 Est. Average Household Income $37,192 $42,486 $47,615 2016 Est. Median Household Income $29,397 $32,355 $35,220

11 DEMOGRAPHICS Evansville, IN

EVANSVILLE Evansville is the county seat of Vanderburgh, County, Indiana. As the state’s third-largest city and the largest city in Southern Indiana, it is the commercial, medical, and cultural hub of Southwestern Indiana and the Illinois-Indiana- Kentucky tri-state area. Situated on an oxbow in the Ohio River, the city is often referred to as the “Crescent Valley” or “River City”. ECONOMY

The broad economic base of the region has helped to build an economy which is known for its stability, diversity, and vitality. The largest industry sectors by size in Evansville are health care, finance, education, and manufacturing. Corporate headquarters located in Evansville include Accuride, Atlas Van Lines, Springlead Financial, and Vectren. Evansville has emerged as the tri-state’s major center for the health care and medical sciences industries. Deaconess Hospital and St. Mary’s Hospital and Medical Center, along with the Deaconess Gateway and Women’s Hospital, provide the anchors for a vast health care system that are also among the region’s largest employers. Educational institutions such as Evansville Vanderburgh School Corporation, Ivy Tech Community College of Indiana, University of Evansville and the University of Southern Indiana also contribute thousands of jobs to the tri-state annually. ENTERTAINMENT

In Evansville there are plenty of family attractions, exciting nightlife, and the education and culture of seven themed museums. Historic Bosse Field, a 7,180 seat baseball stadium located in Garvin Park, was built in 1915 and is the third-oldest ballpark still in regular use in the . This 100-year-old structure for America’s favorite pastime is a must see.

The Evansville Museum of Arts, History & Science is one of Southwestern Indiana’s most established cultural institutions. This general museum maintains a permanent collection of more than 30,000 objects, including fine and decorative arts and historic, anthropological, and natural history artifacts. Over twenty temporary exhibitions are displayed every year in four changing galleries.

Evansville has a long and rich history supporting athletic teams and events the University of Evansville and University of Southern Indiana regularly draw thousands of spectators to NCAA sporting events. The UE Purple Aces basketball team plays at the Ford Center. The Ford Center is a multi- use indoor arena downtown it is the city’s premier entertainment venue and is mainly used for basketball, ice hockey, and music concerts.

12 ™ Circle K 1650 S Kentucky Avenue Evansville, IN 47714 OFFERING MEMORANDUM

Rahul Chhajed Associate License No. 01986299 O 310.955.1775 M 818.434.1106 [email protected]

Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 [email protected]

Chris Hake Broker of Record License No. RB14047804

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