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2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION2407 Brownsboro Rd • Louisville, KY 40206

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any otherperson or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, withrespect to the income or expenses for the subject property, the future projected financial performance of theproperty, the size and square footage of the property and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans orintentions to continue its occupancy of the subject property. The information contained in this Marketing Brochurehas been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will notverify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forthherein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified inthis marketing package. The presence of any corporation's logo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included forthe 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.

2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATIONLouisville, KYACT ID Y0530060

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Comparable Shopping Centers

MARKET OVERVIEW 04Demographic Analysis

2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION

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INVESTMENT

OVERVIEW


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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Norton Healthcare Foundation 9,000

Jewish Hosp Halthcare Svcs Inc 8,125

University of Louisville 4,563

Churchill Park School 4,302

Baptist Hospital East 4,000

California Square 3,900

Joseph Gilene President 3,500

Jewish Hospital & St MA 3,452

KFC 2,686

Humana 2,556

Fifteeninone Opco Group LLC 2,540

Jefferson County Board Educatn 2,044

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 15,202 88,355 242,615

2017 Census Pop 14,675 85,249 234,884

2017 Estimate HH 7,865 41,209 109,543

2017 Census HH 7,636 39,935 106,455

Median HH Income $42,685 $50,408 $45,052

Per Capita Income $33,920 $37,912 $31,716

Average HH Income $64,738 $79,786 $69,008

VITAL DATA

YEAR 1 YEAR 2

Price $690,000 CAP Rate 11.04% 13.13%

Loan Amount $483,000Net Operating Income

$76,204 $90,576

Loan Type Proposed NewNet Cash Flow After Debt Service

6.14% / $13,001 25.45% / $53,907

Interest Rate / Amortization 4.50% / 20 Years Total Return 13.33% / $28,246 32.98% / $69,853

Gross Leasable Area (GLA) 4,910 SF

Price/SF $140.53

Current Occupancy 62.73%

Year Built / Renovated 1967 / 2015

Lot Size 0.61 acre(s)

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MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

Pizza Hut 1,480 2/25/2019 NNN

Penn Station 1,600 4/30/2021 NNN


OFFERING SUMMARY

Retail Asset with Upside Potential in Highly-Desirable Clifton Submarket

Ingress/Egress Point is Signalized

Rear Building Has Recently Had $150,000 of Upgrades Performed

Parking Lot is Newly Paved and Striped

Strong Vehicle Count (15,000 Vehicles Per Day)

Great for a Possible Owner/Occupier

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to offer 2407 Brownsboro Road, a 4,910 square foot retail project in two separate buildings. Pizza Hut is in a stand-alone 1,480 square foot

building. The franchisee is one of the largest Pizza Hut franchisees in the Louisville MSA, The back building is a total of 3,430 square feet, with a 1,600 square foot Penn

Station East Coast Subs store and a vacant bay totaling 1,830 square feet, offering massive upside potential to the new owner.

The location in the Clifton Heights is ideal. It is one of the most walkable sections of the city and is densely populated, with over 86,200 people in a three-mile radius.

There is a strong retail presence in the area as well. Just across the street and a bit west is a Kroger-anchored shopping center that dates to 1964, although was recently

remodeled and updated. The nearby Pat's Steakhouse has been a Louisville tradition for nearly 60 years, and is considered by many local residents to be the best

steakhouse in the city.

INVESTMENT OVERVIEW

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OFFERING SUMMARY

PROPERTY OVERVIEW

The property consists of two buildings totaling 4,910 square feet. The Pizza Hut building is a stand-alone building

consisting of 1,480 square feet. The other building totals 3,430 square feet and is divided into two bays. One bay

is occupied by Penn Station East Coast Subs (1,600 square feet) and the other bay is currently vacant (1,830

square feet).

The property is located in Clifton, which is east of downtown Louisville and is in a mature part of the city with

residential development dating back into the 1860s. It is considered an eclectic neighborhood, and is popular for

restaurants, antique shops, and art galleries. Over one-third of the area's residents are college-educated, which

is a much-higher rate than the city overall.

The current owners have performed significant upgrades to the property since 2015 -- the rear building has a

new roof, new facade, new exterior insulation, and new glass. The electricity in the building is all new. Both

parking areas have been resurfaced.

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PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $483,000

Loan Type Proposed New

Interest Rate 4.50%

Amortization 20 Years

Loan Term 5 Years

Loan to Value 70%

Debt Coverage Ratio 2.08

THE OFFERING

Property 2407 Brownsboro Road -- Pizza Hut & Penn Station

Price $690,000

Property Address 2407 Brownsboro Rd, Louisville, KY

SITE DESCRIPTION

Year Built/Renovated 2015

Gross Leasable Area 4,910 SF

Lot Size 0.6 acre(s)

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REGIONAL MAP


9

LOCAL MAP


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AERIAL PHOTO


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PROPERTY PHOTO


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13

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


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TENANT SUMMARY

12

TENANT SUMMARYFINANCIAL ANALYSIS


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FINANCIAL ANALYSIS


OPERATING STATEMENT

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FINANCIAL ANALYSIS


NOTES

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FINANCIAL ANALYSIS


PRICING DETAIL

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MARKET

COMPARABLES


SALES COMPARABLES MAP

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(SUBJECT)

Rex Centre

1781 Sharkey Way

South Elkhorn Village

SALES COMPARABLES

1

2

3

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

Annual Per SF

Income $88,780 $18.08

Expenses $12,576 $2.56

NOI $76,204 $15.52

Occupancy 62.73%

Tenants Lease Type

Asking Price: $690,000 Pizza Hut NNN

Price/SF: $140.53 Penn Station NNN

CAP Rate: 11.04%

Year Built: 1967

PIZZA HUT, PENN STATION WITH UPSIDE2407 Brownsboro Rd, Louisville, KY, 40206

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Tenants Lease Type

Close Of Escrow:

5/15/2016 Supercuts NNN

Sales Price: $1,027,154 Sprint NNN

Price/SF: $145.90

Year Built: 1995

REX CENTRE2730 N Fairfield Rd, Beavercreek, OH, 45431

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Tenants Lease Type

Close Of Escrow:

10/4/2016 Firehouse Subs

Sales Price: $1,015,000 Orange Leaf Yogurt

Price/SF: $169.17

Year Built: 2011

1781 SHARKEY WAY1781 Sharkey Way, Lexington, KY, 40511

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

3

Tenants Lease Type

Close Of Escrow:

8/19/2016 El Charro NNN

Sales Price: $884,003 Brick Oven Pizza NNN

Price/SF: $151.58

Year Built: 2006

SOUTH ELKHORN VILLAGE4379 Old Harrodsburg Rd, Lexington, KY, 40513

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COMPARABLE SHOPPING CENTERS


(SUBJECT)

Cliffside Plaza

Brownsboro Plaza

Clifton Kroger Center

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7

8

9

11

20

12

14

15

16

17

13

18

10

1

2

3

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PROPERTY NAME2407 BROWNSBORO ROAD -- PIZZA HUT & PENN STATION


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AVERAGE OCCUPANCY

Avg. 100.00%

0

10

20

30

40

50

60

70

80

90

100

PizzaHut, Penn

Stationwith Upside

CliffsidePlaza

BrownsboroPlaza

CliftonKrogerCenter

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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MAJOR TENANTS

Pizza Hut

Penn Station

Total GLA Available SF Asking Rent/SF

4,910 SF 1,830 SF $12.22

YEAR BUILT: 1967

PIZZA HUT, PENN STATION WITH UPSIDE2407 Brownsboro Rd, Louisville, KY, 40206

OCCUPANCY: 100% | YEAR BUILT: 1976


19,334 SF 0 SF

MAJOR TENANTS

Family Dollar

Papa John's

1

CLIFFSIDE PLAZA1961 Brownsboro Rd, Louisville, KY, 40206



12,434 SF 0 SF

MAJOR TENANTS

Little Caesar's Pizza

Subway

2

BROWNSBORO PLAZA1977 Brownsboro Rd, Louisville, KY, 40206

PROPERTY NAME

MARKETING TEAM



rentpropertyname1


rentpropertyname1


rentpropertyname1


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45,627 SF 0 SF

MAJOR TENANTS

Kroger

3

CLIFTON KROGER CENTER2202 Brownsboro Rd, Louisville, KY, 40206


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MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on January 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 15,246 87,697 242,692

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 15,698 132,140 405,160

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 7,953 41,256 110,577

2017 Estimate


Average (Mean) Household Size 1.87 2.02 2.10

2010 Census


2000 Census


Occupied Units

2022 Projection 7,953 41,256 110,577

2017 Estimate 8,482 44,500 119,631

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$150,000 or More 6.30% 10.84% 7.99%

$100,000 - $149,000 9.46% 11.24% 10.29%

$75,000 - $99,999 9.22% 10.89% 10.54%

$50,000 - $74,999 17.67% 17.34% 17.05%

$35,000 - $49,999 16.51% 13.78% 14.23%

Under $35,000 40.81% 35.93% 39.91%

Average Household Income $64,738 $79,786 $69,008

Median Household Income $42,685 $50,408 $45,052

Per Capita Income $33,920 $37,912 $31,716

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$54,560 $60,216 $56,675

Consumer Expenditure Top 10 Categories

Housing $13,353 $14,585 $13,869

Transportation $10,557 $11,904 $11,006

Shelter $6,764 $7,305 $6,994

Food $5,971 $6,592 $6,209

Personal Insurance and Pensions $4,262 $5,099 $4,623

Health Care $3,678 $4,189 $4,006

Utilities $3,559 $3,799 $3,640

Entertainment $2,071 $2,385 $2,261

Apparel $1,606 $1,851 $1,689

Household Furnishings and Equipment

$1,468 $1,744 $1,610

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 15,202 88,355 242,615

Under 20 16.55% 20.04% 22.13%

20 to 34 Years 30.37% 24.91% 24.77%

35 to 39 Years 7.54% 6.89% 6.49%

40 to 49 Years 11.34% 12.03% 11.52%

50 to 64 Years 19.96% 21.50% 20.25%

Age 65+ 14.25% 14.61% 14.85%

Median Age 36.84 38.57 37.29

Population 25+ by Education Level

2017 Estimate Population Age 25+ 11,644 64,811 170,509

Elementary (0-8) 2.67% 2.04% 2.53%

Some High School (9-11) 3.73% 5.32% 7.32%

High School Graduate (12) 16.93% 18.36% 23.22%

Some College (13-15) 20.73% 19.59% 21.47%

Associate Degree Only 6.22% 6.19% 6.42%

Bachelors Degree Only 27.40% 26.32% 22.16%

Graduate Degree 21.91% 21.62% 16.09%

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Income

In 2017, the median household income for your selected geography is$42,685, compare this to the US average which is currently $56,286.The median household income for your area has changed by 29.66%since 2000. It is estimated that the median household income in yourarea will be $49,716 five years from now, which represents a changeof 16.47% from the current year.

The current year per capita income in your area is $33,920, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $64,738, compare this to the USaverage which is $81,217.

Population

In 2017, the population in your selected geography is 15,202. Thepopulation has changed by 4.07% since 2000. It is estimated that thepopulation in your area will be 15,246.00 five years from now, whichrepresents a change of 0.29% from the current year. The currentpopulation is 48.35% male and 51.65% female. The median age ofthe population in your area is 36.84, compare this to the US averagewhich is 37.83. The population density in your area is 4,833.82 peopleper square mile.

Households

There are currently 7,865 households in your selected geography. Thenumber of households has changed by 5.06% since 2000. It isestimated that the number of households in your area will be 7,953five years from now, which represents a change of 1.12% from thecurrent year. The average household size in your area is 1.87 persons.

Employment

In 2017, there are 5,234 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that68.50% of employees are employed in white-collar occupations inthis geography, and 31.61% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.29%. In 2000, the averagetime traveled to work was 20.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:81.05% White, 12.10% Black, 0.01% Native American and 2.97%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 3.55% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $175,718 in 2017,compare this to the US average of $193,953. In 2000, there were3,402 owner occupied housing units in your area and there were4,085 renter occupied housing units in your area. The median rent atthe time was $431.

Source: © 2017 Experian

DEMOGRAPHICS

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