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.