1850 S HURSTBOURNE PARKWAY | LOUISVILLE, KENTUCKY

OFFERING MEMORANDUMCBRE | CAPITAL MARKETS

Actual Location

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Chris Bosworth Executive Vice President T +1 404 923 1486 chris.bosworth@cbre.com

Will Pike Executive Vice President T +1 404 923 1381 will.pike@cbre.com

CONTACTS

Brian Pfohl Capital Markets ManagerT +1 404 504 7893 brian.pfohl@cbre.com

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Robert SchwartzSenior Vice President T +1 502 412 7606robert.schwartz@cbre.com

Bryan Flaherty Associate T +1 502 412 7649 bryan.flaherty@cbre.com

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TABLE OF CONTENTSI. Investment Overview Investment Summary ............................................ 4 Investment Highlights ........................................... 5 II. Property Overview Aerials ............................................................. 7 Lease Summary .................................................. 8 Site Plan ........................................................... 9 Surrounding Uses ............................................. 10 Tenant Overview ............................................. 11

III. Area/Market Overview Louisville, KY Market. ........................................ 12

Actual Location

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Investment Overview

Investment Summary

ADDRESS: 1850 S. Hurstborne PkwyLouisville, KY 40220

PARCEL SIZE: 1.06 Acres

BUILDING SIZE: 21,159 Square Feet

YEAR BUILT: 1988

NOI: $252,319

CAP RATE: 6.80%

PRICE: $3,700,000

DEMOGRAPHICS

1 Mile Pop 1 Mile AHI 3 Mile Pop 3 Mile AHI 5 Mile Pop 5 Mile AHI Traffic Count

8,712 $73,985 86,274 $78,121 206,953 $78,182 53,500 VPD on S. Hurstborne Pkwy

CBRE is pleased to exclusively offer a freestanding 21,159-square-foot Liquor Barn situated on 1.06 acres in Louisville, Kentucky (MSA Population: 1.2 million). Liquor

Barn’s net lease has ±4.5 years of primary term and three 5-year renewal options remaining. The subject property is strategically positioned with excellent access and

visibility on Hurstbourne Parkway (Traffic Count: 53,500 VPD) just 0.3 miles south of I-64 (Traffic Count: 106,400 VPD) which provides direct access to Downtown

Louisville (11 miles to the west). Liquor Barn is immediately adjacent to a shopping center anchored by Office Depot and Shoe Carnival and also occupied by Dollar Tree,

Bridal Warehouse, Party Paradise, Kansai Japanese Steakhouse, BoomBozz Craft Pizza & Taphouse and others in eastern Louisville’s premier retail corridor. In all, there

is approximately 10.1 MSF of retail, 9.4 MSF of office, 11.4 MSF of industrial space and 11.3 MSF of multifamily units within a 3-mile radius. Other major retailers with

a presence in the immediate corridor include: Walmart Supercenter, Kroger, AMC Theatres, Lowe’s Home Improvement, Staples, Michaels, PetCo, Pier 1 Imports, Moe’s

Southwest Grill, McDonald’s, Jason’s Deli, Dairy Queen, Steak & Shake, O’Charley’s, Taco Bell, Dick’s Sporting Goods and Marshalls among many others. Along with

86,000 residents within 3 miles, the property is also just 0.2 miles west of the Bluegrass Commerce Park (850 businesses and 29,000 employees), providing Liquor Barn

with a substantial built-in customer base.

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• Premier Alcoholic Beverage Tenant: With 15 stores in Kentucky, Liquor Barn consists of destination/large-format stores that are dedicated to having the best selection of wine, spirits, beer, and party supplies and strong customer service. Liquor Barn is a subsidiary of Liquor Stores N.A. Ltd (TSX: LIQ).

• Industry-Leading Parent Company: Liquor Stores N.A. Ltd. (TSX: LIQ) has been a leader in the retail liquor industry since liquor privatization in 1993. Current operations include over 240 stores in Canada and the United States. As of March 2017, the company reported CAN$808 million in TTM revenue and is the largest publicly traded beverage alcohol retailer in North America.

• Recently Extended Lease: Liquor Barn recently exercised their first 5-year extension option.

• Stable Cash Flow with Upside Opportunity: Current rent of $11.92 is below the fair market value rent in this trade area which hovers between $14.00 – 15.00. The lease options are set at Fair Market Value, providing near term upside.

• Excellent Access & Visibility: The subject property is strategically positioned with excellent access and visibility on Hurstbourne Parkway (Traffic Count: 53,500 VPD) just 0.3 miles south of I-64 (Traffic Count: 106,400 VPD) which provides direct access to Downtown Louisville (11 miles to the west).

Investment Highlights• Dominant Retail & Commercial Corridor: Liquor Barn is immediately adjacent to a

shopping center anchored by Office Depot and Shoe Carnival and also occupied by Dollar Tree, Bridal Warehouse, Party Paradise, Kansai Japanese Steakhouse, BoomBozz Craft Pizza & Taphouse and others in eastern Louisville’s premier retail corridor. In all, there is approximately 10.1 MSF of retail, 9.4 MSF of office, 11.4 MSF of industrial space and 11.3 MSF of multifamily units within a 3-mile radius. Other major retailers with a presence in the immediate corridor include: Walmart Supercenter, Kroger, AMC Theatres, Lowe’s Home Improvement, Staples, Michaels, PetCo, Pier 1 Imports, Moe’s Southwest Grill, McDonald’s, Jason’s Deli, Dairy Queen, Steak & Shake, O’Charley’s, Taco Bell, Dick’s Sporting Goods and Marshalls among many others.

• Built-In Customer Base: Along with 86,000 residents within 3 miles, the property is also just 0.2 miles west of the Bluegrass Commerce Park (850 businesses and 29,000 employees), providing Liquor Barn with a substantial built-in customer base.

• Louisville Market: Louisville is the largest city in the Commonwealth of Kentucky with an MSA population of 1.2 million and is home to a dynamic, diversified economy that continues to attract companies with its central location, attractive riverfront setting and southern hospitality. Louisville is home to the legendary Kentucky Derby, the Muhammad Ali Center, KFC Yum Center Arena, the ever expanding Waterfront Park, the exciting 4th Street Live! entertainment complex downtown and beautiful, historic neighborhoods. Additionally, the city offers a nationally recognized superior quality of life, making it one of America’s best places to live and work.

Actual Location

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MIDDLETOWN

Blankenbaker Pkwy

Taylorsville Rd

N Hurstbourne Pkwy

Shelbyville Rd

SHELBYHURSTRESEARCH & OFFICE PARK

MALL ST.MATTHEWS

BLUEGRASS COMMERCE PARK850 BUSINESSES

29,000 EMPLOYEES

Breckenridge Ln

ankeanke

SOUTHEASTCHRISTIAN CHURCH

ST MATTHEWS

HIKES POINT

N Hurstbourne Pkwy

OXMOORMALL

ne Pne Pk

WALMARTNEIGHBORHOOD

MARKET

WALMART

SUBJECT

OXMOOR MALL

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OxmoorCountry Club

WALMART

HURSTBOURNE

PKWY

31,800 ADT

56,000 ADT

53,500 ADT

SWOPEAUTO

GROUP

SUBJECT

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PROPERTY: Liqour Barn

TENANT: L.S.U.S. 2, LLC

GUARANTOR: Liquor Stores USA South, Inc.

RENT COMMENCEMENT: October 22, 2009

LEASE EXPIRATION: January 31, 2022

LEASE TERM REMAINING: ±4.5 Years

LEASE TYPE: NN

RENT: Current Rent (First Extension Term): $252,319.20

CURRENT TERM RENT INCREASES: Flat for remainder of First Extension Term

OPTIONS: Three 5-year Options Remaining

OPTION RENT: Fair Market Rent, but not less than 80% of prior term

TAXES: Tenant to pay taxes directly

INSURANCE Landlord shall keep in force a policy of fire and extended coverage insuring Landlord against loss or damage from fire with extended coverage to the Building and the other improvements, with all-risk and rental interruption coverage, in reasonable amounts. Landlord shall also keep in force a policy of public liability insurance in reasonable amounts insuring Landlord and Tenant against claims for personal injury and property damage occurring on the Leased Premises. Tenant shall pay Landlord as Additional Rent the cost of such insurance.

MAINTENANCE BY LANDLORD: Landlord will promptly perform upon the Leased Premises any maintenance, management, repair, renewal or restoration becoming necessary to the building structure, parking area and landscaping areas.

MAINTENANCE BY TENANT: Tenant will promptly perform any maintenance or repair or replacement of a nonstructural nature becoming necessary upon the Leased Premises which exclusively serve the Leased Premises.

CAM: Tenant will pay, as additional rent, common area expenses.

Lease Summary

Actual Location

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- 53,500 VPD

KEY

Not a Part of Offering

Subject Site

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Surrounding Uses

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Tenant Overview

With 15 stores in Kentucky, Liquor Barn consists of destination/large-format stores that are dedicated to having the best selection of wine, spirits, beer, and party supplies and strong customer service. Liquor Barn is a subsidiary of Liquor Stores N.A. Ltd (TSX: LIQ).

Liquor Stores N.A. Ltd. (TSX:LIQ) has been a leader in the retail liquor industry since liquor privatization in 1993. Current operations include over 240 stores in Canada and the United States, with operations under the brand names Wine & Beyond, Liquor Depot, and Liquor Barn in Alberta and British Columbia; Brown Jug in Alaska, and Liquor Barn “The Ultimate Party Source” and Liquor Barn Express in Kentucky. As of March 2017, the company reported CAN$808 million in TTM revenue and is the largest publicly traded beverage alcohol retailer in North America.

Most recently, Liquor Stores N.A. has been exploring expansion opportunities in the United States, aiming to diversify its revenue base. Earlier this year, the company closed on its $15 million acquisition of a 51-percent stake in Birchfield Ventures. The operator owns the two-unit Joe Canal’s Discount Liquor Outlet in central New Jersey, and the deal gives Liquor Stores N.A. the right to acquire the remaining 49-percent interest. Further expansion in the northeastern United States is in the works. A new 20,000-square-foot store is scheduled to open in Norwalk, Connecticut, later this year, with a 17,000-square-foot unit slated for Berlin, Massachusetts, in early 2017.

Company Overview

TTM Revenue: CAN$808M

Number of Locations: 240+

Headquarters: Edmonton, Alberta

Website: www.liquorstoresna.ca

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Louisville, Kentucky MarketLouisville is the largest city in the Commonwealth of Kentucky with an MSA population of 1.2 million. In 2003, the Jefferson County and City of Louisville governments merged, elevating Louisville/Jefferson County to the nation’s 27th largest city. Louisville is home to a dynamic, diversified economy that continues to attract companies with its central location, attractive riverfront setting and southern hospitality. Louisville is home to the legendary Kentucky Derby, the Muhammad Ali Center, KFC Yum Center Arena, the ever expanding Waterfront Park, the exciting 4th Street Live! entertainment complex downtown and beautiful, historic neighborhoods.

The largest employers in Louisville are United Parcel Service (UPS) and Humana Inc. UPS has its airline headquarters and one of its largest sorting hubs located in Louisville. At a cost of $2 billion, and 5.2 million square feet, the UPS Worldport is the largest automated shipping facility in the world. The facility anchors Louisville’s position as a leader in logistics distribution, and is a strong economic engine for the region. Humana Inc. is headquartered in downtown Louisville, and has operations in both the CBD and suburbs. Humana is ranked 58 on the list of Fortune 500 companies and is the third largest health insurance provider in the country. Other Fortune 500 companies headquartered in Louisville include Yum! Brands and Kindred Healthcare.

Additionally, Louisville offers a nationally recognized superior quality of life, making it one of America’s best places to live and work. Greater Louisville boasts some of the most affordable utility rates in the nation, as well as an abundant, dependable supply of water, electricity and natural gas.

The Louisville MSA is comprised of Jefferson, Bullitt, Oldham, Henry, Nelson, Shelby, Trimble, Spencer and Meade counties in Kentucky; and Clark, Floyd, Harrison and Washington counties in Indiana.

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EconomyThe Greater Louisville region has a highly skilled workforce and is known for the

productivity of its workers. Long a center for the production of durable goods, such

as cars, trucks and appliances, the Louisville workforce is well known for its high level

of skill and experience. As the Louisville economy has diversified over the years, the

area has also developed a strong base of highly skilled office, service, medical and

technology employees. Louisville’s unemployment rate is 3.9% as of December 2016,

a decrease from 7.0% in March 2014.

CultureLouisville is home to many annual cultural events. Perhaps most well-known is the

Kentucky Derby, held annually during the first Saturday of May. The Derby is preceded

by a two-week-long Kentucky Derby Festival, which starts with the annual Thunder

Over Louisville, one of the largest annual fireworks display in North America.

Moreover, Louisville has blossomed as a booming center for independent art, music

and business. A Louisville locale that highlights this scene is Bardstown Road, an area

located in the heart of the Highlands. Bardstown Road is known for its cultural diversity

and local trade. The majority of the businesses along Bardstown Road, such as coffee

shops, clothing stores and art galleries, are locally owned and operated businesses.

Transportation & LogisticsLouisville’s primary competitive advantage is its central location and interstate

system. The interstate system (I-64, I-65, I-71) capitalizes on Louisville’s central

location to provide immediate access to most of the country’s population centers,

and ensures high-quality and well-planned growth. Louisville is within a day’s

drive to two-thirds of the country’s population.

Greater Louisville offers an advanced telecommunications infrastructure with

numerous telecommunications and internet service providers, web hosting

facilities and other application service providers.

Louisville International Airport has non-stop service to more than 25 destinations

and connection cities worldwide. The airport accommodated almost 3.4 million

passengers in 2014. Louisville International ranks third in North America and

seventh in the world in the total amount of air cargo handled as the home of the

United Parcel Service’s global air hub.

Louisville is situated on the Ohio River, one of the nation’s main routes for barge

traffic. American Commercial Barge Line Company, the world’s largest, is located

in Jeffersonville, Indiana, just across the Ohio River from Louisville.

Louisville, Kentucky Market

Louisville’s Major Employers

COMPANY PRODUCT/SERVICE EMPLOYMENT

United Parcel Service Global commerce services 22,080

Humana, Inc. Health insurance 12,900

Ford Motor Co. - Kentucky Truck Plant, Louisville Assembly Plant

Manufacturer 12,990

Norton Healthcare Health care provider 11,389

Amazon.com LLC Logistics & customer service 6,500

GE Appliances Manufacturer 6,000

Source: Business First

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CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a waythat benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions

relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’sobligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and

treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc.does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent thecurrent or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax,financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

Affiliated Business Disclosure & Confidentiality Agreement

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CONTACTS

Chris Bosworth Executive Vice President T +1 404 923 1486 chris.bosworth@cbre.com

Will Pike Executive Vice President T +1 404 923 1381 will.pike@cbre.com

Brian Pfohl Capital Markets ManagerT +1 404 504 7893 brian.pfohl@cbre.com

Robert SchwartzSenior Vice President T +1 502 412 7606robert.schwartz@cbre.com

Bryan Flaherty Associate T +1 502 412 7649 bryan.flaherty@cbre.com

CBRE CAPITAL MARKETS