OFFERING MEMORANDUM

TRACTOR SUPPLY – HOHENWALD, TN 608 E Main Street • Hohenwald, TN 38462

Representative Photo NON- ENDORSEMENT AND DISCLAIMER NOTICE

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 substi- tute 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 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. Jody McKibben TRACTOR SUPPLY - HOHENWALD TN Hohenwald, TN Broker of Record ACT ID ZAA0560520 License: TN 307629 (615) 997-2900 2 TRACTOR SUPPLY - HOHENWALD TN

TABLE OF CONTENTS

SECTION

FINANCIAL ANALYSIS 01

INVESTMENT OVERVIEW 02

MARKET OVERVIEW 03

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FINANCIAL ANALYSIS

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OFFERINGOFFERING SUMMARY SUMMARY Offering Asking Price $1,527,000

Cap Rate Terms5.50% Available Under Confidentiality – Contact Listing Net Operating Income Agents$84,000 Property Specifications Property Address 608 E Main Street, Hohenwald, TN 38462 Rentable Area 30,595 SF Land Area 2.89 Acres Year Built 1987 Guarantor Corporate Guarantee Lease Type NN Landlord Responsibilities Roof & Structure Increases 2% Increase Every Five Years throughout Base Term Representative Photo Original Lease Term 14 Years Term Remaining 14 Years Options Two 5-Year Options Rent Commencement 1/1/2009 Lease Expiration 10/31/2034

5# PROPERTYCVSTRACTOR PHARMACY SUPPLYNAME - HOHENWALD TN

PRICINGPRICING ANDANDOFFERING VALUATIONVALUATION SUMMARY MATRIXMATRIX

Lease Term Rental Rates

TENANT NAME SQUARE FEET LEASE START LEASE END INCREASE MONTHLY ANNUALLY OPTIONS

2 (5-Year); 17% Inc. at Beg. of Tractor Supply 30,595 1/1/2009 10/31/2034 Terms$7,000 Available$84,000 Under 1st Opt. and 1% Inc. at Beg. Confidentiality – Contactof Listing 2nd Opt.

11/1/2024 Agents$7,140 $85,680

11/1/2029 $7,282 $87,384

NN Lease | Corporate Guarantee | Investment Central Location | Excellent Visibility & Grade Credit | 2% Rental Increases Frontage | National Retailers in Surrounding • The Lease is guaranteed by Tractor Supply Market Company • Outparcel to a Walmart Supercenter • Investment Grade Credit (S&P Rating: BBB) • Centrally located on East Main Street (Highway • New 15-year extension as of November 1, 2019 412) boasting over 10,500 vehicles per day • 2% increases every five years throughout base • 77 miles south west of Nashville term • Retailers in the area include Walmart, Dollar Tree, • Two 5-year options with 17% increase at , Citizens Bank, AutoZone, O’Reilly beginning of first period; 1% increase at beginning Auto Parts, McDonald’s, Subway, Sonic, Hardee’s, of second period Pizza Hut, and others • TSCO lease includes excess unused leasable space • Over $75,000 invested in capital improvements over the past 5 years

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INVESTMENT OVERVIEW

7 PROPERTYCVSTRACTOR PHARMACY SUPPLYNAME - HOHENWALD TN

PRICINGPRICING ANDAND VALUATIONTENANTVALUATIONTENANT SUMMARY SUMMARY MATRIXMATRIX tractorsupplyco.com

Tractor Supply Company (TSC) does a whole lot more than its name might suggest. Besides providing agricultural machine parts, TSC offers animal feed, fencing, power tools, riding mowers, work clothing, and pet supplies, as well as tools for gardening, irrigation, welding, and towing. TSC offers both name-brand merchandise and its own crop of private-label goods. The company has nationwide scope, operating more than 1,850 stores in some 49 US states under the Tractor Supply Company, Del's Farm Supply, and Petsense banners. Stores are concentrated in rural areas and near large cities to cater to full- and part-time farmers, ranchers, and contractors. TSC also sells online. Tractor Supply is the largest rural lifestyle retailer in the . Net COMPANY TYPE PARENT # OF LOCATIONS sales increased over 30% in Q3 2020. Subsidiary Tractor Supply Co. 1,940

2018 REVENUE 2018 ASSETS STOCK TICKER CREDIT RATING $7.91 B $3.06 B TSCO S&P: BBB

8# TRACTORPROPERTYCVS PHARMACY SUPPLYNAME – HOHENWALD TN

PRICINGPRICING ANDAND VALUATIONTENANTVALUATIONTENANT SUMMARY SUMMARY MATRIXMATRIX HG bonds: Tractor Supply places debut offering for refinancing purposes; terms

October 27th, 2020

Tractor Supply Co. today completed an upsized $650 million offering of 1.75% 10-year notes due Nov. 1, 2030, at T+110, or 1.874%. The issue, which was upsized from $500 million, was printed at the firm end of guidance in the T+115 area, and through initial whispers in the T+145 area. Proceeds will be used to refinance borrowings under the company's senior credit facilities, and for general corporate purposes, according to regulatory filings. Brentwood, Tenn.–based Tractor Supply operates rural lifestyle stores. Last week, S&P Global Ratings and Moody's assigned first-time credit ratings with stable outlooks to Tractor Supply. And earlier today, both agencies assigned respective BBB/Baa3 profiles to the new bond placement. Ratings said its BBB profile reflects the company's niche merchandising strategy, solid operating track record reflecting market share gains, and conservative leverage profile. "Strong demand for pet food, animal feed, and seasonal items including power equipment and lawn tools drove comparable-store sales growth of 26.8% during the most recent quarter. Tractor Supply recently instituted a public target of maintaining a gross, lease-adjusted leverage ratio below 2.5x. We project it will sustain S&P Global Ratings-adjusted leverage, which includes operating leases and nets cash, in the 1.5x-2x range," the agency said today. Moody's assigned a Baa1 rating to the company. "The company has historically delivered consistent sales and operating income growth under various economic conditions and is expected to continue to benefit from the growing popularity of a more rural lifestyle, an increased focus on DIY home and land maintenance as well as the acceleration in pet adoption trends during the pandemic," Moody's said today.

See full article at spglobal.com https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/hg-bonds-tractor-supply-places-debut- offering-for-refinancing-purposes-terms-60946735

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TENANT SUMMARY

*Photo via seekingalpha.com

10 TRACTORPROPERTYCITIZENS SUPPLYBANKNAME - HOHENWALD TN

PRICINGPRICING ANDANDPROPERTYLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

Location Access Traffic Counts

Located in Hohenwald, TN East Main Street East Main Street (US Highway 412) Outparcel to Walmart Less than 80 miles from 10,500 Cars Per Day Supercenter Nashville,

Parcel Year Built Zoning Acres: 2.89 1987 C-3 Corridor Commercial Square Feet: 125,900 District

11# TRACTORPROPERTY SUPPLYNAME - HOHENWALD TN

PRICINGPRICINGREGIONAL ANDANDLOCATION VALUATIONVALUATIONTENANT AND LOCALOVERVIEW SUMMARY MATRIXMATRIX MAP 608 E Main Street, Hohenwald, TN 38462

12# TRACTOR SUPPLY - HOHENWALD TN AERIAL PHOTO

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MARKET OVERVIEW

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MARKET OVERVIEW NASHVILLE OVERVIEW

Known as the epicenter of country music, the Nashville metro contains a population of nearly 2 million within 14 counties: Davidson, Smith, Macon, Williamson, Cheatham, Sumner, Dickson, Robertson, Cannon, Rutherford, Hickman, Trousdale, Maury and Wilson. Davidson is the most populous county with 707,000 people and is home to Nashville, the capital city, which has 680,000 residents. The metro is located in the north-central portion of the state of Tennessee in what is known as the Central Basin. The Cumberland River, which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life. The metro has a strong multimodal infrastructure network linking the metro to markets around the world.

METRO HIGHLIGHTS

MUSIC INDUSTRY CAPITAL The metro is well known as a central location for the country music industry, which provides many local jobs and supports a large hospitality sector.

DIVERSIFYING ECONOMY Other major industries in the metro include healthcare, government, automotive manufacturing, publishing, insurance and finance.

ROBUST POPULATION GROWTH The population will increase at a faster pace than the nation over the next five years.

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MARKET OVERVIEW

ECONOMY . The entertainment and country music capital houses a number of venues such as Ryman Auditorium, Grand Ole Opry, Country Music Television and Music Row. . Low tax burdens and incentives for attract companies to the region and are assisting in diversifying the economy. . Fortune 500 companies headquartered in the region include: HCA Holdings, Dollar General, , , LifePoint Health, Delek US Holdings and Tractor Supply Co.

MAJOR AREA EMPLOYERS

Vanderbilt University and Medical Center The Kroger Co. Community Health Systems Saint Thomas Health Nissan North America HCA Healthcare Electrolux Home Products Old Country Store, Inc. * Forecast Randstad

SHARE OF 2018 TOTAL EMPLOYMENT

8% 17% 12% 11 % 7% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

19% 4% + 15% 2% 4% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

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MARKET OVERVIEW

DEMOGRAPHICS

. The metro is expected to add nearly 132,000 people over the next five years, resulting in the formation of approximately 59,000 households. SPORTS . A median home price slightly below that of the nation has allowed 65 percent of households to own their home, compared with 64 percent for the U.S. . Roughly 32 percent of residents age 25 and older hold bachelor’s degrees; of those residents, 11 percent also have obtained a graduate or professional degree.

2018 Population by Age

7% 19% 7% 29% 26% 13% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2018 2018 2018 2018 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 1.9M 744K 36.4 $60,600 Growth Growth U.S. Median: U.S. Median: 2018-2023*: 2018-2023*: 6.9% 8.0% 38.0 $58,800

QUALITY OF LIFE While music may be in Nashville’s blood, Music City has a lot more to offer, including performing arts, history, cuisine, professional sports, education institutions, natural beauty and Southern charm. Music is alive not only at the Grand Ole Opry, but also at the Ryman ARTS & ENTERTAINMENT Auditorium, Fontanel Mansion, Schermerhorn Symphony Center and the Tennessee Performing Arts Center. For country music fans, there is the Country Music Hall of Fame and Museum. Performing arts include the Nashville Ballet, Nashville Symphony, Nashville Opera Association, Tennessee Repertory Theatre, Nashville Children’s Theatre and the ACT 1 (Artists’ Cooperative Theatre). Museums in the metro include the Tennessee State Museum, the Vanderbilt University Fine Arts Gallery and Frist Center for the Visual Arts.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

17 TRACTORPROPERTY SUPPLYNAME - HOHENWALD TN

MARKETMARKETINGDEMOGRAPHICS OVERVIEW TEAM

Population 1 Mile 3 Mile 5 Mile

2018 Estimated Population 492 5,295 8,238

2023 Projected Population 483 5,316 8,387

Population Growth 2018 - 2023 -0.37% 0.08% 0.36%

Average Age 40.1 40.9 41.4 Households 1 Mile 3 Mile 5 Mile

2018 Estimated Households 184 2,137 3,244

Projected Household Growth 2018 - 2023 -0.11% 0.36% 0.67%

Average Household Income $46,445 $46,618 $49,476

Average Household Size 2.50 2.40 2.50

2018 Average Vehicles Per Household 2.00 2.00 2.00 Housing 1 Mile 3 Mile 5 Mile

Median Home Value $69,892 $76,456 $86,590

Median Year Built 1976 1974 1978

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MARKET OVERVIEW

EXCLUSIVELY LISTED BY:

Laurie Ann (L.A.) Drinkwater, CCIM Seth J. Richard

Senior Vice President Investments First Vice President Investments Senior Director - National Retail Group Senior Director – National Retail Group Boston Office Manhattan Office Tel: (617) 896-7230 Tel: (212) 430-5164 Fax: (866) 262-3242 Fax: (866) 262-3242 [email protected] [email protected] Licenses: CT REB.0751880, MA 147511, RI B 16787 Licenses: CT RES- 0764595, NY 10401275108, MA 149700