332 South Laurel RoadLondon, KY 40744

Offering Memorandum

Broker of RecordColby HaugnessKentucky License # 242197 (513) 878-7700

S. Laurel Rd.

21,852 CPD

2

KY Hwy. 192

. 27,479 CPD

IH-75 2,000 ft.

PRICING

List Price $1,222,213.00

CAP 7.5.%

Price/SF $148.80

PROPERTY DESCRIPTION

Gross Leasable Area 8,214 SF

Lot Size 0.54 Acre

Ownership Type Fee Simple

Year Built 2008

LEASE SUMMARY

Lease Type Absolute Net (NNN)

Landlord Responsibility None

Lease Term 10 Years

Lease Commencement Close of Escrow

Rent Increases 7.5% Every 5 Years

Remaining Lease Term 10 Years

Renewal Options Two 5-Year options

Right of First Refusal No

Lease Guarantor Franchise Guarantee

ANNUALIZED OPERATING DATA

Annual Rental Income $91,666.00

Taxes Tenant Responsibility

Insurance Tenant Responsibility

Maintenance Tenant Responsibility

Monthly Rent $7,638.83

Annual Rent / SF $11.16 RENT SCHEDULE

Years 1-5 $91,666.00

Years 6-10 $98,540.00

Option 1 $105,931.00

Option 2 $113,876.00

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Location

Located along one of the most highly trafficked corridors in London, KY, the subject property is strategically situated in close proximity to multiple national brands, South Laurel High School, London-Corbin Airport, and multiple places of employment that support the 27,000 people who reside within a 5-mile Radius of the site.

Strong Franchise Guarantee

Fairway Leasing, LLC. is regarded as the Top Performing Franchisee in the Aaron's system nationwide. All 15 Locations will guarantee the 10-Year Absolute Net Lease that will be signed upon close of escrow.

History

Aaron's has successfully operated out of this location since 2008. This location has regularly performed well above the national average for an Aaron's, and has proven to be a recession-resistant business model that is supported by the local demographics.

Strong Fundamentals

The proposed 10-Year Absolute Net Lease will set rent at a very sustainable 6% Rent-to-Sales Ratio. Additionally, the annual rental rate of $11.15/ft. is extremely sustainable for the London Market.

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Fairway Leasing, LLC – Franchisee

* Forecast

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

Nearest Market

Lexington, KY

The Lexington area is known as the horse capital of the world and is home to two racetracks and the Kentucky Horse Park. The metro has a population of 513,000 individuals and is composed of Bourbon, Clark, Fayette, Jessamine, Scott and Woodford counties. The market is located about 70 miles east of the state capitol in Frankfort and about an hour south of Cincinnati. Louisville and the Kentucky Derby are approximately 80 miles to the west.

• The metro has a highly educated workforce with more than a third of the population having a bachelor’s degree or higher.

• Manufacturing has a strong presence in Lexington. The largest is Toyota Motor, which employs over 8,000 workers in its plant. Other notable manufacturers include Lockheed Martin, Hitachi Automotive Services, Webasto Roof Systems and Trane Lexington.

• Lexington is also home to the JIF manufacturing plant, reportedly the largest peanut butter manufacturing facility in the world. The fast-food chain Fazoli’s is also headquartered in the metro.

ECONOMY

MANUFACTURING INDUSTRY

Manufacturing serves an important role in the local economy with products ranging from composite material to aromatherapy merchandise.

HIGHER-EDUCATION

Major post-secondary institutions in the area include the University of Kentucky, Transylvania University and Bluegrass Community and Technical College.

CORPORATE PRESENCE

Several headquarters are located in Lexington, including Lexmark International, A&W Restaurants and Temper Sealy International.

METRO HIGHLIGHTS

35.8

2018MEDIAN AGE:

U.S. Median:

38.0

513 K

2018POPULATION:

Growth2018-2028*:

6.5%

$55,200

2018MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$58,800

207 K

2018HOUSEHOLDS:

Growth2018-2023*:

7.5%

DEMOGRAPHICS

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London, Kentucky

1 mi3 mi5 mi

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1 Mile 3 Miles 5 MilesPOPULATION

2023 Projection 1,915 17,254 28,8982018 Estimate 1,860 16,537 27,4622010 Census 1,835 16,141 26,6232000 Census 1,706 14,279 22,946

INCOMEAverage $57,140 $57,658 $58,754Median $43,458 $42,004 $42,793Per Capita $25,039 $23,797 $23,477

HOUSEHOLDS2023 Projection 839 7,094 11,5922018 Estimate 812 6,726 10,8752010 Census 807 6,610 10,6142000 Census 755 5,815 9,055

HOUSING2018 $113,280 $125,370 $120,036

EMPLOYMENT2018 Daytime Population

4,980 27,402 36,244

2018 Unemployment

9.28% 7.39% 7.18%

2018 Median Time Traveled

19 21 23

RACE & ETHNICITYWhite 95.55% 95.12% 95.73%Native American 0.00% 0.04% 0.03%

African American 1.37% 1.14% 0.94%

Asian/Pacific Islander

0.52% 0.95% 0.89%

Prepared March 29, 2019

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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 SUBSTITUTE 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 BUSINESS 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. © 2018 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.

AARON’SLondon, KYACT ID ZAA0160118

Net-Leased Disclaimer

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.

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