Thorntons: Thorntons Corporate Headquarters

INVESTMENT OVERVIEW(1,2)

ASSUMABLE NON-RECOURSE DEBT WITH ONLY A 13% EQUITY REQUIREMENT
This offering allows an investor to acquire the property with just 13% cash down and by assuming the existing, non-recourse financing. The subject property is structured as a zero cash flow offering. The rent, including all scheduled increases for the remaining 22 years, match the monthly debt service from the existing financing.

NEWLY-CONSTRUCTED CLASS A BUILT-T0-SUIT OFFICE SPACE
The property consists of 88,698 square feet of class A office space on approximately 20.58 acres of land. Completed in 2017, the location serves as the new corporate headquarters and Store Support Center for the 200+ Thorntons convenience stores. Having outgrown its current facility Thorntons decided to remain in Louisville constructing its headquarters in the city’s rapidly-growing East End. “When a company that has called Kentucky home for more than 40 years decides to remain here for a major expansion, it shows that we have established a successful partnership,” said Steve Beshear, Former Governor of Kentucky. “We look forward to continued work with this rapidly growing Kentucky company.”

Consistent with the company’s dedication to the community and its involvement in many philanthropic activities, the new facility accommodates the company’s current and future expansion. “We are proud to call Louisville our hometown and we’re excited about expanding our Store Support Center in Louisville,” former CEO Matt Thornton said at the time the new facility was announced. “The Louisville community has been very good to us over the years, and we couldn’t think of a better place from which to grow our business.”

22 YEARS REMAINING ON ORIGINAL 25-YEAR ABSOLUTE NNN LEASE
The Property is 100% leased to Thorntons, Inc. on an Absolute NNN basis with 2% annual rent increases. There are currently 22 years remaining on the original 25-year lease term, which expires on April 30, 2042.

ONLY 6% BALLOON - SIGNIFICANTLY REDUCES REFINANCING RISK
In-place financing amortizes to just $19/SF, or 6% of the current debt balance, significantly reducing any refinancing risk.

ESSENTIAL RETAILER OPEN AND OPERATING DURING THE COVID-19 PANDEMIC
Convenience stores are an essential service because they provide food and gas. That means Thortons locations will remain open 24/7 to serve their guests — especially emergency service providers, health care workers, and other essential workers who are serving their communities during this time.

AFFLUENT EAST LOUISVILLE LOCATION
Thorntons has been operating in Louisville for over 47 years and is the dominant fuel retailer and convenience store brand in the Louisville MSA. The location boasts strong demographics with an average household income of $158,330 within a one-mile radius. With the advantages of world-class multimodal logistical benefits, a low cost of doing business, an educated workforce, great quality of life and support from local government, the region is an ideal place to headquarter a business.

(1) Rentable Area, Lot Size, Guarantor, Lease Terms, Building Specifications, Year Built, Total Amortization, and Percentage Amortization to Equity are estimates. Buyer is responsible for verifying during the Due Diligence process.
(2) Warning-This is a projection model only and in no way guarantees the performance of the subject property. Buyer will need to rely on their internal projections only in determining the suitability of this investment. Warning-IRS Circular 230 Disclosure: Marcus & Millichap and its affiliates do not provide tax advice and nothing contained herein including, without limitation, the provision of the following preliminary cost segregation estimate, should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (I) is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and (II) was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this marketing brochure should seek advice based on your particular circumstances from an independent tax advisor.

KY Broker of Record: Colby Haugness
License: 242197