Financial Overview - LoopNet

Financial OverviewFinancial Overview…………….……........4Tenant Overview...……………………….5Lease Abstract…………………………….6

Investment OverviewInvestment Overview……..………………8Drone Photos……………………………..9Site Aerial...…………….………………...10Market Aerials..…………………………..11-13Local & Regional Maps..…...…………….14-15

Market OverviewOwensboro, Kentucky…………………...17Demographics………..…….…………….18-19

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to squarefootage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes onlyand do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015Marcus & Millichap ACT ID Z0260049

US BANK

Table of Contents


Financial Overview

OVERVIEWFINANCIAL


Financial Overview | 4

Price $1,400,000

Gross Leaseable Area (GLA) 11,822 SF

Price/ SF $118.42

Cap Rate 10.06%

Net Operating Income $141,129

Year Built 1992

Lot Size ~1.29 Acres

Type of Ownership Fee Simple

Lease Type Modified Gross

Roof & Structure Landlord Responsible

Lease Term 5 Years

Rent Commencement 1/1/2014

Lease Expiration 12/31/2021

Term Remaining 3+ Years

Increases Increases in Options

Options Two, Five-Year

Option to Terminate None

Option to Purchase None

Right of First Refusal Yes – 30 Days

Term Annual Rent Monthly Rent

Present to 12/31/2021: $163,511.16 $13,625.93

Option I: FMV FMV

Option II: FMV FMV

CURRENT ANNUAL RENT $163,511.16

TOTAL RETURN 10.06% / $1,400,000

Expenses

Real Estate Taxes* (Adjustment) $18,268

Insurance $4,114

Total Expenses ($1.98/sf) $22,382

*Real Estate Tax Expense is based upon a sale price of $1.7M(CAM Handled Directly by the Tenant)

Current Income

Scheduled Gross Rent: $163,511

Expenses: ($22,382)

NET OPERATING INCOME $141,129 10.06%


Tenant Overview | 5

U.S. Bancorp (“US Bank”) is the 7th largest bank in the

United States. The company provides banking,

investment, mortgage, trust, and payment services

products to individuals, businesses, government entities,

and other financial institutions. It has 3,106 branches and

4,842 ATM’s, primarily in the Midwestern United States.

U.S. Bancorp operates under the second-oldest continuous

national charter, originally Charter #24, granted in 1863

following the passage of the National Bank Act. The

company is publicly traded on the New York Stock

Exchange under the stock symbol “USB” and has an

Investment Grade “A+” Credit Rating (S&P). U.S. Bank

employs over 71,191 employees.

TENANT OVERVIEW

3,106BRANCHES

HEADQUARTERED IN

MINNEAPOLIS, MN

$21.49 BILLION

2016 REVENUE

STOCK SYMBOL

NASDAQ: USB

A+S&P CREDIT

RATING

OWNERSHIP:PUBLIC

TENANT:CORPORATE

WEBSITE:WWW.USBANK.COM


Lease Abstract | 6

TAXES

Landlord agrees to pay as part of Base Rent all property taxes andassessments. For clarification purposes, this lease is intended to bea modified gross lease and the amount paid for Base Rent shallinclude all taxes.

Insurance

Landlord shall maintain and keep in force fire and extendedcoverage. For clarification purposes, this lease is intended to be amodified gross lease and the amount paid for Base Rent shallinclude Landlord Insurance.

LLResponsibilities

Landlord, at its expense, will maintain, repair and replace theroof, exterior walls, interior support walls and floor.

Tenant resp.

Tenant, at tenant’s expense shall maintain, repair and replace theinterior, all equipment including electrical, plumbing, and HVACsystems, inside and outside of doors and windows and remove thetrash.

CAMTenant shall be responsible for maintaining the grounds includingremoving the snow and maintaining the landscaping.

ROFRUS Bank shall have the right within 30 days to accept the termsof said proposed contract.

OWNERSHIP:PUBLIC

TENANT:CORPORATE

WEBSITE:WWW.USBANK.COM

Representative Photo


Investment Overview

OVERVIEWINVESTMENT

Marcus & Millichap is pleased to present for sale the fee simple interest inU.S. Bank located at 5030 Backsquare Drive, Owensboro, Kentucky.

The subject property is a freestanding, net leased U.S. Bank which was builtin 1992 and serves as the tenant’s mortgage processing branch andadministrative office for the region. U.S. Bank sits on a large 1.29 acre parcel,and is comprised of 11,822 square feet.

U.S. Bank signed a new five year lease on January 1st, 2017, modifying theformer annual written renewal lease structure, showing great commitmentto this site. The lease is corporately guaranteed with two, five-year optionswith rental escalations. The landlord is solely responsible for the roof,structure and taxes while the tenant takes care of the interior, snow removaland landscaping, insurance and utilities.

U.S. Bank is strategically located across from Town Square Mall, a regionalmall for the Tri State area, in the main retail corridor of Owensboro. Nearbynational retailers include Home Depot, Hobby Lobby, Sears, Target, Walmart,Macy’s, JCPenney, Sam’s Club, Lowe’s and more – please see aerial.

Owensboro is the County seat and serves as an economic and commerce hubfor the Tri State area, where Illinois, Indiana and Kentucky intersect.

U.S. Bancorp (NYSE:USB) is headquartered in Minneapolis, MN. It is currentlythe 5th largest commercial bank in the United States with an estimated $445Billion in assets. The lease is corporately guaranteed with both S&P A+ andMoody’s A1.


Investment Overview | 8

Investment Highlights

➢ U.S. Bancorp - NYSE: USB, S&P 500: A+ Rating

➢ Regional Loan Processing Branch – E-Commerce Proof Investment

➢ Located Across from Towne Square Mall and Macy’s, Hobby Lobby, Home Depot, Sam’s Club

➢ Tenant Requested New 5 Year Lease – Shows Commitment to the Site

➢ Large Footprint, Low Rent per Square Foot of $13.83

➢ U.S. Bank is the 5th Largest Commercial Bank in the USA

➢ Owensboro, KY –Economic Hub for Tri State Area


Drone Photos | 9

Site Aerial | 10



Market Aerial | 11

Market Aerial | 12


Market Aerial | 13


Burns Middle School

Burns ElementarySchool


Local Map | 14


Regional Map | 15


Market Overview

OVERVIEWMARKET


Owensboro, Kentucky | 17

OVERVIEW

OWENSBORO is a home rule-class city in and the county seat of Daviess County, Kentucky. It is the 4th largest city in the state by

population and is ideally positioned on U.S. Route 60 about 107 miles southwest of Louisville and is the principal city of the Owensboro

metropolitan area. Owensboro is the industrial, medical, retail and cultural hub of western Kentucky. The city is strategically located on

the southern banks of the Ohio River, which provides a majestic backdrop of the ambitious Downtown Revitalization initiative and

Riverfront Master Plan. The $270 Million project includes the Owensboro Convention Center, two hotels, world renowned Smothers

Park, and the International Bluegrass Music Center (scheduled to open in 2018).

OWENSBORO, KENTUCKY


Demographic Summary | 18

Income

In 2017, the median household income for your selected geographyis $39,688, compare this to the US average which is currently$56,286. The median household income for your area has changedby 18.44% since 2000. It is estimated that the median householdincome in your area will be $47,274 five years from now, whichrepresents a change of 19.11% from the current year.

The current year per capita income in your area is $24,979, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $58,521, compare this to the USaverage which is $81,217.

Population

In 2017, the population in your selected geography is 66,616. Thepopulation has changed by 9.30% since 2000. It is estimated that thepopulation in your area will be 67,896.00 five years from now, whichrepresents a change of 1.92% from the current year. The currentpopulation is 47.43% male and 52.57% female. The median age ofthe population in your area is 38.38, compare this to the US averagewhich is 37.83. The population density in your area is 847.36 peopleper square mile.

Households

There are currently 28,076 households in your selected geography.The number of households has changed by 11.55% since 2000. It isestimated that the number of households in your area will be 29,014five years from now, which represents a change of 3.34% from thecurrent year. The average household size in your area is 2.29 persons.

Employment

In 2017, there are 38,090 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that53.61% of employees are employed in white-collar occupations inthis geography, and 46.46% are employed in blue-collar occupations.In 2017, unemployment in this area is 6.16%. In 2000, the averagetime traveled to work was 18.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:87.37% White, 6.79% Black, 0.11% Native American and 1.25%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 3.33% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

Housing

The median housing value in your area was $113,432 in 2017,compare this to the US average of $193,953. In 2000, there were15,893 owner occupied housing units in your area and there were9,275 renter occupied housing units in your area. The median rent atthe time was $340.


Demographic Report | 19

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 3,954 35,025 67,896

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 6,308 47,294 92,750

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 1,799 15,995 29,014

▪ 2017 Estimate


Average (Mean) Household Size 2.23 2.16 2.29

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2022 Projection 1,799 15,995 29,014

2017 Estimate 1,754 16,507 29,949

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 7.17% 5.19% 4.75%

$100,000 - $149,000 10.02% 8.81% 8.33%

$75,000 - $99,999 7.91% 10.01% 9.55%

$50,000 - $74,999 20.76% 18.51% 17.85%

$35,000 - $49,999 16.69% 14.93% 14.46%

Under $35,000 37.45% 42.54% 45.09%

Average Household Income $65,884 $60,317 $58,521

Median Household Income $46,683 $41,706 $39,688

Per Capita Income $29,460 $27,370 $24,979

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

$55,959 $54,283 $52,778

▪ Consumer Expenditure Top 10 Categories

Housing $13,821 $13,182 $12,764

Transportation $10,910 $10,372 $10,171

Shelter $6,918 $6,491 $6,293

Food $6,154 $5,906 $5,814

Personal Insurance and Pensions $4,390 $4,004 $3,879

Health Care $4,052 $4,171 $3,960

Utilities $3,703 $3,595 $3,519

Entertainment $2,237 $2,192 $2,102

Apparel $1,639 $1,519 $1,514

Household Furnishings and Equipment

$1,597 $1,544 $1,471

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 3,753 34,665 66,616

Under 20 26.57% 23.94% 26.39%

20 to 34 Years 24.03% 20.05% 19.71%

35 to 39 Years 5.73% 5.39% 5.71%

40 to 49 Years 11.04% 10.95% 11.57%

50 to 64 Years 17.53% 19.52% 19.25%

Age 65+ 15.10% 20.17% 17.36%

Median Age 34.56 40.57 38.38

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 2,471 24,112 44,724

Elementary (0-8) 2.19% 3.11% 3.59%

Some High School (9-11) 6.71% 6.53% 9.16%

High School Graduate (12) 37.25% 36.70% 36.78%

Some College (13-15) 22.58% 21.82% 21.22%

Associate Degree Only 8.22% 9.07% 8.48%

Bachelors Degree Only 15.65% 13.19% 11.94%

Graduate Degree 6.95% 8.96% 7.90%

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.

NET LEASED DISCLAIMER

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.

NON-ENDORSEMENT 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 prepare 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, not 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.

Presented By:

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