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CLARKSVILLE, TN

Clarksville SangoShopping Center

OFFERING MEMORANDUM

CONFIDENTIALITY AND 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.

CLARKSVILLE, TN

Clarksville Sango Shopping Center

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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 ON MARKET COMPARABLES

Section 5 MARKET OVERVIEW

Section 6 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Clarksville Sango Shopping CenterCLARKSVILLE, TN


PRICING AND FINANCIAL ANALYSIS

Price $1,090,000

Down Payment 25% $272,500

Price per Square Foot (GLA) $218.00

Gross Leasable Area (GLA) 5,000

Year Built 2017

Lot Size 1.44 Acres

Parking 20

VITAL DATA

CAP Rate - Current 7.05%

Net Operating Income - Current $76,840

Net Cash Flow After Debt Service - Current $23,314

Total Return - Current 15.02% / $40,926

CAP Rate - Pro Forma 8.97%

Net Operating Income - Pro Forma $97,772

Net Cash Flow After Debt Service - Pro Forma $29,238

Total Return - Pro Forma 19.08% / $52,000

1

Major Tenants


Tenant Name


Major Employers

Employer# of

Employees

Demographics

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480157 Marcus &Millichap. All rights reserved.

1-Mile 3-Mile 5-Mile

2012 Population

2017 Population

2012 Households

2017 Households

Median HH Income

Per Capita Income

Average HH Income

OFFERING SUMMARY

2



Existing Financing

Loan Type Free and Clear


Proposed Financing

First Trust Deed

Loan Amount $817,500

Loan Type All Cash

Interest Rate 4.5%

Amortization 25 Years

Loan to Value 75/25

Debt Coverage Ratio 1.45

FINANCING

3

W. Smith Properties : 24.21%

Farmers Insurance : 25.54%

PMI Clarksville: 24.91%

McCall Contracting : 25.34%


Comments

Due to redelopment of property from land to shopping center, new assessments for real estate taxes have not posted.

Estimates given from Montgomery County Property Assessors Office.

Property Insurance listed is part of Owner's portfolio premium.


Current Per SF Pro Forma Per SF

Real Estate Taxes $7,400 $1.48 $7,400 $1.48

Insurance $2,500 $0.50 $2,500 $0.50

CAM

Utilities $528 $0.11 $528 $0.11

Contract Services $1,800 $0.36 $1,800 $0.36

TOTAL CAM $2,328 $0.47 $2,328 $0.47

Management Fee (% of EGI) $2,297 $0.46

Reserves / Replacements $500 $0.10

TOTAL EXPENSES $15,025 $3.00 $12,228 $2.45


Tenants (% OF GLA)

EXPENSES

4



Current Per SF Pro Forma Per SF

Base Rent

Occupied Space $94,706 $18.94 $110,000 $22.00

GROSS POTENTIAL RENT $94,706 $18.94 $110,000 $22.00

GROSS POTENTIAL INCOME $94,706 $18.94 $110,000 $22.00

Vacancy/Collection Allowance (% of GPR) 3% / $2,841 $0.57

EFFECTIVE GROSS INCOME $91,865 $18.37 $110,000 $22.00

Total Expenses $15,025 $3.00 $12,228 $2.45

NET OPERATING INCOME $76,840 $15.37 $97,772 $19.55

Reserves / Replacements $500 $0.10

NET CASH FLOW BEFORE DEBT SERVICE $76,340 $15.27 $97,772 $19.55


Gross Leasable Area (GLA) 5,000 SF

INCOME & EXPENSES

5




TENANT SUMMARY

Suite Tenant GLA % of

GLA

Lease

Commence

Lease

Expire

Annual

Rent

Rent/

SF

Changes

On

Changes

To

Expense

Reimbs.

Other:

Options/

% Rent

Lease

Type

100 PMI Clarksville 1,241 24.82% 2/1/17 1/31/22 $22,338.00 $18.00 7/1/2019 $27,302.00 $0.00 Negotiable Net

200 W. Smith Properties 1,206 24.12% 2/1/17 1/31/22 $21,708.00 $18.00 7/1/2019 $26,532.00 $0.00 Negotiable Net

300 Farmers Insurance 1,272 25.44% 1/1/17 12/31/21 $22,896.00 $18.00 7/1/2019 $27,984.00 $0.00 Negotiable Net

400 McCall Contracting 1,262 25.24% 9/1/2017 8/31/22 $27,764.00 $22.00 $0.00 Negotiable Net

TOTAL VACANT

TOTAL OCCUPIED 4,981 99.62% $94,706.00 $81,818.00

TOTAL 4,981 99.62% $94,706.00 $81,818.00

6



For The Year Beginning Year 1

Jan 2017

Year 2

Jan 2018

Year 3

Jan 2019

Year 4

Jan 2020

Year 5

Jan 2021

Year 6

Jan 2022

Year 7

Jan 2023

Year 8

Jan 2024

Year 9

Jan 2025

Year 10

Jan 2026

Tenant(s) Name Farmers

Insurance

PMI

Clarksville

W. Smith

Properties

McCall

Contracting

Total Number of Tenants 1 3

Total Square Feet 1,272 3,709

Total Percentage 25.4% 74.2%

Cumulative Percentage 25.4% 99.6%


Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tota

l Pro

ject

Squ

are

Foo

tage

0

1

2

3

Num

ber

of T

enan

tsJan 2017

0%Jan 2018

0%Jan 2019

0%Jan 2020

0%Jan 2021

25%Jan 2022

74%Jan 2023

0%Jan 2024

0%Jan 2025

0%Jan 2026

0%

LEASE EXPIRATION SUMMARY

Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.

Tenant Name: Farmers Insurance - Wendy Stack

Lease Commencement: 7/1/2017

Lease Expiration: 6/30/2022

Gross Leasable Area (GLA): 1,272

Original Term: Five Years

Option Term: Negotiable

Pro Rata Share of Project: 25%

Headquartered: Woodland Hills, California

No. of Locations:

Web Site: Farmers.com

This Farmers Insurance Agency is owned and operated by Wendy Stack, who serves the Sango area of the Clarksville-

Montgomery County community. Services provided include home and auto insurance.

7




TENANT & LEASE SUMMARY

2421 Highway 41A

Clarksville, TN 37043

Price $1,090,000

Down Payment 25% $272,500

Gross Leasable Area (GLA) 5,000

Price/SF $218.00

CAP Rate - Current 7.05%

CAP Rate - Pro Forma 8.97%

Lot Size 1.44 Acres

Year Built 2017

FIRST TRUST DEED

Loan Amount $817,500

Loan Type All Cash

Interest Rate 4.5%

Amortization 25 Years

Loan to Value 75/25

Annualized Operating Data

Income Current Pro Forma

Base Rent

Occupied Space $94,706 $110,000

Gross Potential Rent $94,706 $110,000

Gross Potential Income $94,706 $110,000

Vacancy/Collection Allowance 3% / $2,841

Effective Gross Income $91,865 $110,000

Total Expenses $15,025 $12,228

Net Operating Income $76,840 $97,772

Reserves / Replacements $500

Net Cash Flow Before Debt Service $76,340 $97,772

Debt Service $53,026 $68,534

Debt Coverage Ratio 1.45 1.43

Net Cash Flow After Debt Service 8.56% / $23,314 10.73% / $29,238

Principal Reduction $17,612 $22,762

Total Return 15.02% / $40,926 19.08% / $52,000

8

Location


Financing


ExpensesReal Estate Taxes $7,400 $7,400

Insurance $2,500 $2,500

CAM

Utilities $528 $528

Contract Services $1,800 $1,800

TOTAL CAM $2,328 $2,328

Management Fee (% of EGI) 2.5% / $2,297

Reserves / Replacements $500

TOTAL EXPENSES $15,025 $12,228

EXPENSES/SF $3.00 $2.45


Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap Capital

Corporation representative.

FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

Through large economic growth, Clarksville has become Tennessee's fifth largest city. In addition to the nearby presence of Ft. Campbell Army Base (estimated at 180,000 troops), Clarksville has recently landed such large companies as Google (regional fiber optic center), Handcook Tire (large Japanese based tire giant) and LG.

Investment Highlights

■ Great Visibility

■ High Traffic Counts

■ Highest Growth Submarket of Clarksville

■ Strong Rent Roll

■ Good Term on Leases

■ Brand New Construction

■ Concrete Pad Parking

10




INVESTMENT OVERVIEW

The submarket that the subject property is situated in is known as Sango. This particular submarket has the highest growth in the Clarksville marketplace.

11




INVESTMENT OVERVIEW

The Offering

Property Clarksville Sango Shopping Center

Property Address 2421 Highway 41A


Zoning C

Site Description

Number of Stories 1

Year Built 2017

Gross Leasable Area (GLA) 5,000 SF

Lot Size 1.44 Acres

Type of Ownership Fee Simple

Parking 20

Parking Ratio 4:1

Landscaping Excellent

Topography Slope - Front and Back

Construction

Foundation Concrete

Framing Metal

Exterior Brick/Metal

Parking Surface Concrete

Roof Flat

Mechanical

Fire Protection Sprinkled

Utilities Separately Metered

Interior Detail

Walls Dry Wall

Ceilings Acoustical

Floor Coverings VCT

Rest Rooms ADA Per Codes

12




PROPERTY SUMMARY

Construction

Features

■ New

■ Combo Brick and Metal Facade

■ Rear Storage

■ DI Doors

■ Glass Storefront

13




PROPERTY FEATURES

14




PROPERTY PHOTOS

15




Local Map Regional Map

AREA MAPS

16




SITE PLAN

17




AERIAL PHOTO


RECENT SALES

1)

2)

3)

4)

5)


Gateway Commons

Austin Square Shopping Center

Clarksville Goodwill Thrift Store

Campbell Corner

The Fountain at Indian Lake

19

RECENT SALES



RECENT SALES MAP

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Subject GatewayCommons

AustinSquareShoppingCenter

ClarksvilleGoodwillThriftStore

CampbellCorner

TheFountain

atIndianLake

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Subject GatewayCommons

AustinSquareShoppingCenter

ClarksvilleGoodwillThriftStore

CampbellCorner

TheFountain

atIndianLake

Average Price per Square Foot

20

RECENT SALES


Average Cap Rate


CAP RATE AND PRICE PER SF

1

2


2421 Highway 41A


Gateway Commons

110 Morris Road


Austin Square Shopping Center

2702 Wilma Rudolph Boulevard


Comments

Close proximity to Interstate 24.

Located next to Wilma Rudolph Boulevard.

Comments

Close proximity to Governor's Square Mall.

Located on major retail corridor of Clarksville.

Close of Escrow: 10/1/2016 Major Tenants

Year Built: 2014 Sport Clips

Gross Leasable Area (GLA): 7,403 SF Smoothie King

Sale Price: $2,700,000 Pie Five Pizza Company

Percent Down: 20% Moe's Southwest Grill

CAP Rate: 6.91% Panera Bread

Price/SF (GLA): $364.72

Lot Size: 1.1 Acres

Subject Property

Year Built: 2017

Gross Leasable Area (GLA): 5,000 SF

Offering Price: $1,090,000

Percent Down 25%

CAP Rate: 7.05%


Lot Size: 1.44 Acres

21


Year Built: 2013 Aspen Dental

Gross Leasable Area (GLA): 9,050 SF Noodles & Company

Sale Price: $4,200,000 Mattress Firm

Percent Down:

CAP Rate: 7.20%



RECENT SALES



RECENT SALES

5

4

3 Clarksville Goodwill Thrift Store

2001 Needmore Road


Campbell Corner

4131 Fort Campbell Boulevard

Hopkinsville, KY 42240

The Fountain at Indian Lake

200 North Anderson Lane

Hendersonville, TN 37075

Comments

On July 7, 2016 the Campbell Corner retail center located at 4131 Fort Campbell Boulevard in Hopkinsville, Kentucky sold for

$5,396,557. The Class B property built in March of 2016 and consisting of 15,518 square feet, was fully occupied at the time

of sale. The property was on the market for five months, with an initial asking price of $5,514,730. The transaction was under

Comments

Northern Nashville Retail Market


Year Built: 2007 Maggie Moo's

Gross Leasable Area (GLA): 23,205 SF Fountain Hair Salon

Sale Price: $7,075,000 Edible Arrangements

Percent Down: 100% Care Spot

CAP Rate: 6.50% The Chop Shop

Price/SF (GLA): $304.89 Nashville Apartment

Lot Size: 1.73 The Metabolic Group


Year Built: 2016 Mattress Firm

Gross Leasable Area (GLA): 15,518 SF Aspen Dental

Sale Price: $5,396,557 Vision Works

Percent Down: 100% Kay Jewelers

CAP Rate: 6.90% Saffire Vapor Retail



22


Year Built: 2015 Goodwill Thrift Store


Sale Price: $4,800,000

Percent Down:

CAP Rate: 7.02%


Lot Size: 2.98

RECENT SALES



RECENT SALES


ON MARKET COMPARABLES

1)

2)


Trenton Shopping Center

O'Reilly Auto Parts

24




ON MARKET COMPARABLES MAP

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Subject TrentonShoppingCenter

Average Price per Square Foot

25




CAP RATE AND PRICE PER SF

2

1


2421 Highway 41A


Trenton Shopping Center

3862 Trenton Road


O'Reilly Auto Parts

1821 Madison Street


Status: On Market

Year Built: 2016


List Price: $2,047,685

Percent Down:

CAP Rate:

Price/SF (GLA):

Lot Size: 3 acres

Status: On Market Major Tenants

Year Built: 2006 Mr Topples Frozen

Gross Leasable Area (GLA): 4,300 SF Michael's Pizza

List Price: $975,000 Getsome Coffee

Percent Down: Potato Bowl

CAP Rate: Yolo's Food For The


Lot Size: .5

Subject Property

26

Year Built: 2017


Offering Price: $1,090,000

Percent Down 25%

CAP Rate: 7.05%








MARKET OVERVIEW

Nashville-Davidson-Murfreesboro-Franklin, TN Metro

28

MARKET OVERVIEW


Geography

The Nashville metro is located in the north-central portion of the state of Tennessee, in what is known as the

Central Basin. The area is underlain primarily by limestone from the Ordovician Period. The Cumberland River,

which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life.


Market Highlights

Music city

■ The music industry provides jobs and supports a

large hospitality sector.

Diversifying economy

■ Other major industries in the metro include

healthcare, government, automotive, publishing,

insurance and finance.Population growth

■ The population will increase at a faster pace than the

nation over the next five years.

NASHVILLE

Largest Cities in Metro by Population

* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian

Metro

The Nashville metro, with a population of nearly 1.8

million, has 13 counties: Davidson, Smith, Macon,

Williamson, Cheatham, Sumner, Dickson, Robertson,

Cannon, Rutherford, Hickman, Trousdale, Maury and

Wilson. Nashville, the capital city, is also the largest in

the metro with 646,600 residents, followed by

Murfreesboro.

29

Infrastructure

Three major interstate highways intersect in Nashville,

I-40, I-24 and I-65. In addition, I-440 serves as an

inner beltway circling the city, and I-840 is an outer

beltway. The region is home to numerous freight

carriers and truck terminals.

Air service to the region comes through the Nashville

International Airport and several general aviation

facilities, including the John C. Tune and Smyrna

airports. Also, Nashville Air Cargo is an all-cargo

complex located at the Nashville International Airport.

The Port of Nashville, located on the Cumberland

River, provides full river barge access to the Gulf of

Mexico. CSX Transportation has a major intermodal

rail yard servicing the Southeast U.S. located nearby. In

addition, the Music City Star, a passenger commuter

rail, runs between the city of Lebanon and downtown

Nashville, and bus transit within the city is provided by

the Metropolitan Transit Authority.

MARKET OVERVIEW


Nashville 646,600

Murfreesboro 120,600

Franklin 69,300

Hendersonville 55,100

Smyrna 43,800

Brentwood 41,700


Airports

■ Nashville International Airport

■ General Aviation Airports

Major Roadways

■ Interstates 24, 40, 65, 440 and 840

■ U.S. Routes 31, 41, 70 and 431

Rail

■ Freight - CSX

■ Commuter - Music City Star Rail

Port

■ Port of Nashville

The Nashville Metro is:

■ 210 miles from Memphis

■ 249 miles from Atlanta

■ 290 miles from Indianapolis

■ 310 miles from St. Louis

NASHVILLE

* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Experian

30

Economy

For many, country music and Nashville are

synonymous. The metro is home to the Ryman

Auditorium, Grand Ole Opry, Country Music

Television and Music Row. Music and entertainment

have helped to establish a large tourism industry.

Facilities such as the Gaylord Opryland Resort &

Convention Center, the Nashville Convention Center

and the 1.2 million-square-foot Music City Center have

all played a role in expanding the hospitality and

tourism segment.

Although entertainment and tourism are vital to the

local economy, the economic base is much more diverse.

This is due, in part, to the area having one of the

nation’s lowest overall tax burdens and the availability of

incentives to attract relocating and expanding

businesses. Other major industries in the metro include

healthcare, higher education, finance and insurance,

automobile production, printing and publishing, and

technology manufacturing. There are six fortune 500

companies headquartered in the region: HCA Holdings,

Dollar General, Community Health Systems, LifePoint

Health, Delek US Holdings and Tractor Supply Co.

Institutions of higher learning in the metro include

Middle Tennessee State University, Lipscomb

University, Belmont University, Vanderbilt University

and Tennessee State University. Education, healthcare

and government employment help to diversify

Nashville’s employment base.

MARKET OVERVIEW



NASHVILLE

31

Labor

After outperforming the national rate of job growth over the past 10 years, the Nashville metro is expected to

maintain an elevated pace of growth through 2020. Many employment sectors that posted the most robust growth

during the previous five years are now decelerating to a more sustainable pace, and all sectors except for

manufacturing are forecast to expand during this period. The largest increase will be in construction, at an average

pace of 5.3 percent annually in the coming five years.

Currently, the trade, transportation and utilities sector is the largest provider of regional jobs. These industries

comprise 20 percent of Nashville’s entire employment base, or approximately 180,600 jobs. Many of these

positions are in retail. The professional and business services sector makes up another major share of Nashville

employment, representing about 16 percent of payrolls. While this sector registered impressive annual growth of

approximately 6.8 percent throughout the previous five years, jobs in this sector are now forecast to expand by 3.5

annually. The education and health services segment comprises another 16 percent of employment. Demand for

these services is expected to increase throughout the foreseeable future, as the metro continuously records

population growth well above the national average.

Other employment segments that will register impressive gains through 2020are education and health services,

leisure and hospitality, information and the financial activities sectors. All of these industries are expected to grow

jobs at a pace in excess of 1 percent annually.

MARKET OVERVIEW


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics


NASHVILLE

Major Employers

Employers

The list of major employers in Nashville is dominated

by education, healthcare and government entities. The

state of Tennessee, the Metropolitan Nashville-

Davidson County Government, which includes the

public school system, and Vanderbilt University and

Medical Center each account for nearly 20,000 jobs. St.

Thomas Health Services, MedSolutions and HCA also

contribute to the growing healthcare industry. Other

large employers are financial and insurance companies,

which employ tens of thousands of workers in the

metro. Major companies include American General Life

Companies, Hylant Group, CNA, First Tennessee

Bank, Sun Trust Bank, Primus Automotive Financial

Services and Asurion Insurance Services Inc.

Ryman Hospitality Properties, formerly Gaylord

Entertainment, is a large employer in the leisure and

hospitality sector. The company operates the Grand Ole

Opry, the Ryman Auditorium and other venues. The

entertainment industry helped to spawn a large printing

and publishing industry that focuses not only on

country-western media, but Christian media as well.

Large companies include the United Methodist

Publishing House, Ingram Content Group and R R

Donnelley & Sons Co.

Automobile production flourished when Nissan’s

Smyrna Plant began operations. The headquarters for

Nissan North American, Inc. moved to Franklin in

2006 and International Automotive Components, GM

and Bridgestone are located in the region.

Zycron, Amazon and Emma are a few of the technology

employers in the Nashville area that draws young

professionals to the region.

32

* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’sAnalytics, Experian

MARKET OVERVIEW



Vanderbilt University and Medical Center

Kroger

Community Health Systems

Saint Thomas Health Services

Nissan North America

HCA

Ryman Hospitality Properties

Electrolux Home Products

Cracker Barrel Old Country Store, Inc.

Randstad Staffing

NASHVILLE

Demographics

The Nashville metro population is expected to grow by

more than 120,000 people over the next five years. The

growth will come from both in-migration and natural

increases, as the area has a large portion of families in

their childbearing years. Accordingly, the median age, at

36.2 years, is below the U.S. median of 37.5 years. The

number of residents in the 65-plus age bracket accounts

for just 12 percent of the metro’s population, under the

average for the country. This bodes well for Nashville’s

future, as it illustrates the area’s large, available

employment pool on the verge of their most successful

earning years.

Nashville, which is home to more than 20 colleges and

universities and is the state capital, has a higher level of

education among residents than the national average.

Approximately 30.2 percent of the local population

older than age 25 have earned at least a bachelor’s

degree, as opposed to 28.8 percent for the entire

country. The metro also places high in education

attainment when compared with many other

Southeastern cities.

Elevated education levels often translate to higher

incomes. The metro’s median household income has

consistently tracks the nationwide median. Strong

incomes and the relatively affordable median home price

of $208,500 have afforded more than 65 percent of

households to own their home.

33

* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau

MARKET OVERVIEW



NASHVILLE

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.

Quality of Life

While music may be in Nashville’s blood, Music City

has a lot more to offer, including performing arts,

history, cuisine, professional sports, education

institutions, natural beauty and Southern charm.

Music is alive not only at the Grand Ole Opry, but also

at the Ryman Auditorium, Fontanel Mansion,

Schermerhorn Symphony Center and the Tennessee

Performing Arts Center. For country music fans, there is

the Country Music Hall of Fame and Museum.

Performing arts include the Nashville Ballet, Nashville

Symphony, Nashville Opera Association, Tennessee

Repertory Theatre, Nashville Children’s Theatre and

the ACT 1, Artists’ Cooperative Theatre.

Museums in the metro include the Tennessee State

Museum, the Vanderbilt University Fine Arts Gallery,

Frist Center for the Visual Arts, Cheekwood Botanical

Garden & Museum of Art and the Carl Van Vechten

Gallery at Fisk University.

Sports enthusiasts can watch the Tennessee Titans of

the NFL, the NHL Nashville Predators and the

Nashville Sounds, which are a member of baseball’s

AAA Minor League.

For those who want to spend an afternoon outdoors,

one can take in the Parthenon, the world’s only replica

of the ancient Greek temple, which is located only 2

miles from downtown Nashville or Nashville Shores

Water Park and Marina.

34

* ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors, Moodys Analytics, U.S. Census Bureau

MARKET OVERVIEW



NASHVILLE

35

Burgeoning Millennial Base Drives Occupancy

And Rent Rates to Current Cycle Highs

Healthy demographics and property performance are at a 10-year high, indicating a bright future for the Nashville

retail market. Job opportunities for young professionals and the hip, bohemian feel of the metro has led to heavy

levels of net migration, especially among millennials. Population growth for those ages 20 to 34, an incredibly

important cohort to retailers, is triple the national average, supporting annual retail-sales volume that will exceed

$32 billion by year end. The influx of new residents has ignited multi- and single-family development, which has

in turn fed the retail market. Mixed-use construction is highly prevalent as office and apartment developers look to

supplement traditional space with some retail component. Capitol View in the North Gulch is a prime example;

once completed, the project will offer both stand-alone and ground-floor retail, as well as office, multifamily and

hospitality space. Although mixed-use development is heating up, pure retail construction has faltered and will

reach the lowest level since the recession. A slowdown in new development amid robust demand will encourage

metrowide tightening with vacancy reaching the lowest point since the downturn. Rent growth will follow suit as

operators lift rents past the prior cycle’s peak.

The Nashville retail investment market is locally driven with in-state buyers dominating sales activity. Institutional

and national money, however, have begun testing the market, especially for properties with long-term leases or

corporate guarantees. Sale-lease activity among single-tenant franchisee assets has become increasingly popular, as

owners look to raise capital for reimaging or expansion efforts. Seller motivation is primarily driven by pricing as

cap rates for multi-tenant space compress to unprecedented levels. First-year yields for these assets in premier

locations average in the low- to mid-5 percent range.

MARKET OVERVIEW



* Forecast

NASHVILLE

2016 Market Forecast

36

MARKET OVERVIEW


* ForecastSources: CoStar Group, Inc.; Real Capital Analytics


NRI Rank11, up 8 places

Employmentup 2.9%

Construction371,000 sq. ft.

Vacancydown 60 bps

Rentup 4.5%

Investment

Nashville jumped eight spots this year amid tight conditions and strengthening rent gains.

Employers will hire 27,000 new workers in 2016, an increase of 2.9 percent. This is onpace with last year, when the metro added 28,900 jobs.

Nashville developers will deliver 371,000 square feet of retail space this year, growingmetro inventory 0.4 percent. This is a slowdown from 2015, when 478,000 square feetwere completed.

Following a 40-basis-point drop last year, the metrowide vacancy rate will drop 60 basispoints to 4.9 percent in 2016 on nearly 1 million square feet of net absorption.

The average asking rent will climb 4.5 percent to $16.21 per square foot this year. Lastyear, the metro recorded a jump of 6.1 percent.

Attention is focused on areas surrounding the universities, with investment activity heatingup in 12 South and Hillsboro Village.

NASHVILLE

37

MARKET OVERVIEW


Nashville-Davidson-Murfreesboro-Franklin, TN Metro


Geography

The Nashville metro is located in the north-central portion of the state of Tennessee, in what is known as the

Central Basin. The area is underlain primarily by limestone from the Ordovician Period. The Cumberland River,

which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life.

NASHVILLE

Market Highlights

Music city

■ The music industry provides jobs and supports a

large hospitality sector.

Diversifying economy

■ Other major industries in the metro include

healthcare, government, automotive, publishing,

insurance and finance.Population growth

■ The population will increase at a faster pace than the

nation over the next five years.

38

Largest Cities in Metro by Population

MARKET OVERVIEW

* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian


Metro

The Nashville metro, with a population of nearly 1.8

million, has 13 counties: Davidson, Smith, Macon,

Williamson, Cheatham, Sumner, Dickson, Robertson,

Cannon, Rutherford, Hickman, Trousdale, Maury and

Wilson. Nashville, the capital city, is also the largest in

the metro with 646,600 residents, followed by

Murfreesboro.

Infrastructure

Three major interstate highways intersect in Nashville,

I-40, I-24 and I-65. In addition, I-440 serves as an

inner beltway circling the city, and I-840 is an outer

beltway. The region is home to numerous freight

carriers and truck terminals.

Air service to the region comes through the Nashville

International Airport and several general aviation

facilities, including the John C. Tune and Smyrna

airports. Also, Nashville Air Cargo is an all-cargo

complex located at the Nashville International Airport.

The Port of Nashville, located on the Cumberland

River, provides full river barge access to the Gulf of

Mexico. CSX Transportation has a major intermodal

rail yard servicing the Southeast U.S. located nearby. In

addition, the Music City Star, a passenger commuter

rail, runs between the city of Lebanon and downtown

Nashville, and bus transit within the city is provided by

the Metropolitan Transit Authority.


Nashville 646,600

Murfreesboro 120,600

Franklin 69,300

Hendersonville 55,100

Smyrna 43,800

Brentwood 41,700

Airports

■ Nashville International Airport

■ General Aviation Airports

Major Roadways

■ Interstates 24, 40, 65, 440 and 840

■ U.S. Routes 31, 41, 70 and 431

Rail

■ Freight - CSX

■ Commuter - Music City Star Rail

Port

■ Port of Nashville

The Nashville Metro is:

■ 210 miles from Memphis

■ 249 miles from Atlanta

■ 290 miles from Indianapolis

■ 310 miles from St. Louis

NASHVILLE

39

MARKET OVERVIEW


* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Experian

Economy

For many, country music and Nashville are

synonymous. The metro is home to the Ryman

Auditorium, Grand Ole Opry, Country Music

Television and Music Row. Music and entertainment

have helped to establish a large tourism industry.

Facilities such as the Gaylord Opryland Resort &

Convention Center, the Nashville Convention Center

and the 1.2 million-square-foot Music City Center have

all played a role in expanding the hospitality and

tourism segment.

Although entertainment and tourism are vital to the

local economy, the economic base is much more diverse.

This is due, in part, to the area having one of the

nation’s lowest overall tax burdens and the availability of

incentives to attract relocating and expanding

businesses. Other major industries in the metro include

healthcare, higher education, finance and insurance,

automobile production, printing and publishing, and

technology manufacturing. There are six fortune 500

companies headquartered in the region: HCA Holdings,

Dollar General, Community Health Systems, LifePoint

Health, Delek US Holdings and Tractor Supply Co.

Institutions of higher learning in the metro include

Middle Tennessee State University, Lipscomb

University, Belmont University, Vanderbilt University

and Tennessee State University. Education, healthcare

and government employment help to diversify

Nashville’s employment base.


NASHVILLE

40

MARKET OVERVIEW


Labor

After outperforming the national rate of job growth over the past 10 years, the Nashville metro is expected to

maintain an elevated pace of growth through 2020. Many employment sectors that posted the most robust growth

during the previous five years are now decelerating to a more sustainable pace, and all sectors except for

manufacturing are forecast to expand during this period. The largest increase will be in construction, at an average

pace of 5.3 percent annually in the coming five years.

Currently, the trade, transportation and utilities sector is the largest provider of regional jobs. These industries

comprise 20 percent of Nashville’s entire employment base, or approximately 180,600 jobs. Many of these

positions are in retail. The professional and business services sector makes up another major share of Nashville

employment, representing about 16 percent of payrolls. While this sector registered impressive annual growth of

approximately 6.8 percent throughout the previous five years, jobs in this sector are now forecast to expand by 3.5

annually. The education and health services segment comprises another 16 percent of employment. Demand for

these services is expected to increase throughout the foreseeable future, as the metro continuously records

population growth well above the national average.

Other employment segments that will register impressive gains through 2020are education and health services,

leisure and hospitality, information and the financial activities sectors. All of these industries are expected to grow

jobs at a pace in excess of 1 percent annually.


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

NASHVILLE

41

MARKET OVERVIEW


Major Employers

Employers

The list of major employers in Nashville is dominated

by education, healthcare and government entities. The

state of Tennessee, the Metropolitan Nashville-

Davidson County Government, which includes the

public school system, and Vanderbilt University and

Medical Center each account for nearly 20,000 jobs. St.

Thomas Health Services, MedSolutions and HCA also

contribute to the growing healthcare industry. Other

large employers are financial and insurance companies,

which employ tens of thousands of workers in the

metro. Major companies include American General Life

Companies, Hylant Group, CNA, First Tennessee

Bank, Sun Trust Bank, Primus Automotive Financial

Services and Asurion Insurance Services Inc.

Ryman Hospitality Properties, formerly Gaylord

Entertainment, is a large employer in the leisure and

hospitality sector. The company operates the Grand Ole

Opry, the Ryman Auditorium and other venues. The

entertainment industry helped to spawn a large printing

and publishing industry that focuses not only on

country-western media, but Christian media as well.

Large companies include the United Methodist

Publishing House, Ingram Content Group and R R

Donnelley & Sons Co.

Automobile production flourished when Nissan’s

Smyrna Plant began operations. The headquarters for

Nissan North American, Inc. moved to Franklin in

2006 and International Automotive Components, GM

and Bridgestone are located in the region.

Zycron, Amazon and Emma are a few of the technology

employers in the Nashville area that draws young

professionals to the region.* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’sAnalytics, Experian


Vanderbilt University and Medical Center

Kroger

Community Health Systems

Saint Thomas Health Services

Nissan North America

HCA

Ryman Hospitality Properties

Electrolux Home Products

Cracker Barrel Old Country Store, Inc.

Randstad Staffing

NASHVILLE

42

MARKET OVERVIEW


Demographics

The Nashville metro population is expected to grow by

more than 120,000 people over the next five years. The

growth will come from both in-migration and natural

increases, as the area has a large portion of families in

their childbearing years. Accordingly, the median age, at

36.2 years, is below the U.S. median of 37.5 years. The

number of residents in the 65-plus age bracket accounts

for just 12 percent of the metro’s population, under the

average for the country. This bodes well for Nashville’s

future, as it illustrates the area’s large, available

employment pool on the verge of their most successful

earning years.

Nashville, which is home to more than 20 colleges and

universities and is the state capital, has a higher level of

education among residents than the national average.

Approximately 30.2 percent of the local population

older than age 25 have earned at least a bachelor’s

degree, as opposed to 28.8 percent for the entire

country. The metro also places high in education

attainment when compared with many other

Southeastern cities.

Elevated education levels often translate to higher

incomes. The metro’s median household income has

consistently tracks the nationwide median. Strong

incomes and the relatively affordable median home price

of $208,500 have afforded more than 65 percent of

households to own their home.

* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau


NASHVILLE

43

MARKET OVERVIEW

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.


Quality of Life

While music may be in Nashville’s blood, Music City

has a lot more to offer, including performing arts,

history, cuisine, professional sports, education

institutions, natural beauty and Southern charm.

Music is alive not only at the Grand Ole Opry, but also

at the Ryman Auditorium, Fontanel Mansion,

Schermerhorn Symphony Center and the Tennessee

Performing Arts Center. For country music fans, there is

the Country Music Hall of Fame and Museum.

Performing arts include the Nashville Ballet, Nashville

Symphony, Nashville Opera Association, Tennessee

Repertory Theatre, Nashville Children’s Theatre and

the ACT 1, Artists’ Cooperative Theatre.

Museums in the metro include the Tennessee State

Museum, the Vanderbilt University Fine Arts Gallery,

Frist Center for the Visual Arts, Cheekwood Botanical

Garden & Museum of Art and the Carl Van Vechten

Gallery at Fisk University.

Sports enthusiasts can watch the Tennessee Titans of

the NFL, the NHL Nashville Predators and the

Nashville Sounds, which are a member of baseball’s

AAA Minor League.

For those who want to spend an afternoon outdoors,

one can take in the Parthenon, the world’s only replica

of the ancient Greek temple, which is located only 2

miles from downtown Nashville or Nashville Shores

Water Park and Marina. * ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors, Moodys Analytics, U.S. Census Bureau


NASHVILLE


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 2,501 18,436 45,215

2010 Population 2,261 20,863 53,601

2014 Population 2,482 23,026 59,881

2019 Population 2,586 24,222 63,557

2000 Households 989 7,598 17,618

2010 Households 936 8,862 21,064

2014 Households 1,030 9,815 23,663

2019 Households 1,081 10,388 25,270

2014 Average Household Size 2.29 2.32 2.43

2014 Daytime Population 965 6,090 21,159

2000 Owner Occupied Housing Units 55.78% 59.05% 57.80%

2000 Renter Occupied Housing Units 39.19% 35.48% 34.62%

2000 Vacant 5.02% 5.47% 7.58%



2014 Vacant 2.26% 4.32% 5.11%



2019 Vacant 2.22% 4.20% 4.78%

$ 0 - $14,999 11.9% 12.4% 13.9%

$ 15,000 - $24,999 12.8% 12.1% 12.4%

$ 25,000 - $34,999 11.7% 11.1% 10.7%

$ 35,000 - $49,999 16.3% 14.7% 14.1%

$ 50,000 - $74,999 20.4% 20.9% 20.6%

$ 75,000 - $99,999 12.9% 12.6% 12.1%

$100,000 - $124,999 5.9% 6.7% 7.2%

$125,000 - $149,999 4.5% 3.6% 3.8%

$150,000 - $199,999 2.7% 3.3% 2.9%

$200,000 - $249,999 0.3% 0.9% 0.9%

$250,000 + 0.7% 1.7% 1.4%

2014 Median Household Income $46,619 $49,656 $48,699

2014 Per Capita Income $24,785 $28,498 $25,734

2014 Average Household Income $59,700 $66,570 $64,148

Demographic data © 2012 by Experian.

45




DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 59,880. The population has changed by 32.43% since 2000. It is estimated

that the population in your area will be 63,557 five years from now, which represents a change of 6.13% from the current year. The

current population is 48.70% male and 51.29% female. The median age of the population in your area is 34.4, compare this to the

Entire US average which is 37.3. The population density in your area is 761.90 people per square mile.

Households

There are currently 23,662 households in your selected geography. The number of households has changed by 34.31% since 2000.

It is estimated that the number of households in your area will be 25,269 five years from now, which represents a change of 6.79%

from the current year. The average household size in your area is 2.43 persons.

Income

In 2014, the median household income for your selected geography is $48,698, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 28.93% since 2000. It is estimated that the median

household income in your area will be $53,709 five years from now, which represents a change of 10.28% from the current year.

The current year per capita income in your area is $25,734, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $64,148, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 76.28% White, 16.60% Black, 0.13% Native American and 1.78%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 5.05% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 11,018 owner occupied housing units in your area and there were 6,599 renter occupied housing units in your

area. The median rent at the time was $436.

Employment

In 2014, there are 21,159 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 58.03% of employees are employed in white-collar occupations in this geography, and 42.39% are employed in blue-collar

occupations. In 2014, unemployment in this area is 7.29%. In 2000, the average time traveled to work was 25.6 minutes.


46




SUMMARY REPORT

Number of people living in a given area per square mile.


47




POPULATION DENSITY

The number of people employed in a given area per square mile.


48




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


49




AVERAGE HOUSEHOLD INCOME

CLARKSVILLE, TN

OFFERING MEMORANDUM

Clarksville Sango ShoppingCenter

Offices Throughout the U.S and Canada

www.MarcusMillichap.com

Exclusively Listed By:

Alan Treadway, Jr.Associate

Director, National Retail GroupNashville Office

License: TN: 00226652Tel: (615) 997-2856Fax: (615) 997-2910

[email protected]/WilliamTreadway

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