8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

ACTUAL PROPERTY

of fer ing memorandum

KinderCare

1This 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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

Investment Overv iew

• KinderCare in Indianapolis with Recent Capital Improvements

• Tenant has Demonstrated Commitment to Location | 20-Year Operating History | Brand New 10-Year Lease

• Rent Increases Over the Base Term and in Options

• Corporate Guaranty | KinderCare Education, Limited Liability Company | More Than 1,700 Locations

• Located Within “Woodfield at the Crossing” Office Park | Class A Mid Rise Buildings | Over 600,000 Square Feet of Office Space

• Strong Daytime Population | More Than 15,000 People in One-Mile from this Asset

• Strong Demographics: More than 25,000 Households with an Average Household Income Greater than $87,000 within Three Miles of the Asset

• Less Than One-Mile from Three Schools | Public High School, Public Elementary School, and One Private College Preparatory School

• One-Quarter Mile from 86th Street | Major Regional Retail Corridor | 5.5-Million Plus Square Feet of Retail

• Major Retailers Along the Corridor Include: Whole Foods, Kohl’s, Target, Walgreens, Kroger, CVS, J. Crew, Bed Bath & Beyond, Office Max, Nordstrom’s, PetSmart, Trader Joe’s, TJ Maxx, HomeGoods, Best Buy, Macy’s, J.C. Penny, Dick’s Sporting Goods, Lowes, and More

Marcus & Millichap is please to present this recently renovated 9,397-square foot KinderCare in Indianapolis, Indiana. KinderCare has over 20 years of operating history at this location, and has demonstrated commitment by signing a brand new 10-year lease. This double-net (NN) lease has minimal landlord responsibilities, and the new lease is set to commence May 1, 2017. The lease features 2 percent rent increases every five years over the base term and 7 percent rent increases in each of the three, five-year options. The lease is guaranteed by KinderCare Education, Limited Liability Company an operator of more than 1,700 day cares across the United States.

This asset is conveniently located within the Woodfield at the Crossing office park, which has a daytime population of more than 15,000 people in one mile. This class A office park consists of four mid-rise buildings with over 600,000 square feet of space, and features employers such as Charles Schwab, Federal Home Loan Bank of Indianapolis, CBS Outdoor, Edward Jones and many more. There are three schools in less than one mile from the subject property: Hilltop Elementary School, Northern Central High School, and Colonial Christian School. This Washington Township Neighborhood of Indianapolis boasts strong demographics: within three miles, there are over 25,000 households with an average household income greater than $87,000.

Additionally, this KinderCare is one-quarter mile from the 86th Street retail corridor that features four major shopping centers: The Fashion Mall at Keystone, Clear Water Crossing, Castleton Crossing, and Castleton Square Mall. Major tenants along this five and a half million-square foot retail corridor include: Whole Foods, Kohl’s, Target, Walgreens, Kroger, CVS, J. Crew, Bed Bath & Beyond, Office Max, Nordstrom’s, PetSmart, Trader Joe’s, TJ Maxx, HomeGoods, Best Buy, Macy’s, J.C. Penny, Dick’s Sporting Goods, Lowes, and more.

Actual PropertyThis 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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 2

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

PRICE $1,585,714

CAP RATE 7.00%

NOI $111,000

PRICE PER SQUARE FOOT $168.75

RENT PER SQUARE FOOT $11.81

YEAR BUILT/RENOVATED 1987/2008/2016

LOT SIZE 1.2 Acres

GROSS LEASEABLE AREA 9,397 Square Feet

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guarantee

LEASE TYPE Double-Net (NN)

ROOF AND STRUCTURE Landlord Responsible

LEASE COMMENCEMENT DATE May 1, 2017

LEASE EXPIRATION DATE April 30, 2027

LEASE TERM 10 Years

TERM REMAINING 10 Years

INCREASES 2% Every 5 Years

OPTIONS TO RENEW 3, 5-Year

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL None

Financia l Overv iew

Offering Summary

Lease Summary

Actual Property

Annualized Operating Data

Base Rent Start End Annual Rent Monthly Rent Increases

5/1/2017 4/30/2022 $111,000 $9,250

5/1/2022 4/30/2027 $113,220 $9,435 2%Options Start End Annual Rent Monthly Rent Increases

5/1/2027 4/30/2032 $129,374 $10,781 7%5/1/2032 4/30/2037 $129,374 $10,781 7%5/1/2037 4/30/2042 $138,430 $11,536 7%

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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 3

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

KinderCare

KinderCare (formerly Knowledge Universe) sees a world of opportunity in education. It operates more than 1,700 KinderCare, Knowledge Beginnings, Grove School, and Cambridge Schools early child care centers and more than 600 school-age extended learning and academic enrichment programs in the United States. It also offers before- and after-school care, summer camps, an online high school, and supplemental academic programs through its Champions division. Additionally, KinderCare operates Children’s Creative Learning Centers (CCLC), which manages onsite or adjacent child care centers for corporations, universities, and other entities. Investment firm Partners Group acquired the company from Knowledge Universe in 2015.

TENANT PROFILE

TENANT TRADE NAME KinderCare

OWNERSHIP Private

TENANT KinderCare Education, Limited Liability Company

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 1,700+

HEADQUARTERED Portland, Oregon

WEB SITE http://www.kindercare.com/

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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 4

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

Aer ia l Overv iew

NORTH

465

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147,180 VPD

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86th St

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Interstate 465

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8485 Wood� eld Crossing BlvdIndianapolis, IN 46240

North CentralHigh School

NorthviewMiddle School

WashingtonTownship Schools

IronWorks Hotel120-Room Luxury Hotel

With 15,000 SFof Ground Floor Retail

Wood� eld at the Crossing4-Building O� ce Park

Jordan YMCA

PROPERTY ADDRESS

THE FASHION MALLAT KEYSTONE

CLEARWATERCROSSING

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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 5

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 3,372 51,030 173,747

2010 Population 3,230 52,988 177,625

2016 Population 3,742 54,521 181,765

2021 Population 3,953 56,966 190,033

Daytime Population 15,177 150,145 279,598

1-Mile 3-Mile 5-Mile

H o u s e h o l d s

2000 Households 1,709 23,872 78,214

2010 Households 1,632 25,102 81,530

2016 Households 1,888 25,814 83,411

2021 Households 1,994 26,944 87,152

1-Mile 3-Mile 5-Mile

H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $89,155 $87,548 $82,705

2016 Median HH Income $68,853 $62,048 $58,220

2016 Per Capita Income $44,983 $41,451 $37,953

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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 6

8485 Woodfield Crossing Boulevard - Indianapolis, Indiana 46240

Introduction to Indianapolis, Indiana

Indianapolis, the largest city in Indiana and the state capital, is located in the center of the state on the White River. Settled in 1820, “Indy” was incorporated as a city in 1832 and saw tremendous growth with the advent of railroads in the 1840s and the automobile industry at the turn of the century. Today, Indianapolis is the twelfth-largest city in the United States, with a steadily-growing population of around 800,000 and a strong, diverse economy supported by manufacturing, agriculture, and the service industries. Leading employers in the area include electronics, pharmaceuticals, publishing, food processing and insurance companies. Indianapolis is one of the busiest convention centers in the country.

Indianapolis Culture

Cultural attractions in Indianapolis are plentiful. Some of the finest art and artifact collections in the country can be seen at the Eiteljorg Museum of American Indians & Western Art and at the Indianapolis Museum of Art. The latter is set on 52-acre grounds with the restored mansion of J.K. Lilly Jr., surrounded by beautiful gardens. The city is also home to the Indianapolis Symphony Orchestra, the Indiana Repertory Theatre, and Indianapolis Civic Theatre.

Indianapolis Sports and Leisure

The NBA’s Indiana Pacers (18,000-seat Conseco Fieldhouse) and the NFL’s Indianapolis Colts (56,000-seat RCA dome) bring major league sports to downtown Indianapolis. Other pro teams include the Fever (WNBA), the Indians (minor league baseball), the Firebirds (Arena Football) and Blast (USL soccer), but the area is best known as the home of the Indianapolis 500 road race and a hotbed of college basketball. A few miles west of downtown, the Indianapolis Motor Speedway (IMS) packs in more than 250,000 spectators each Memorial Day weekend for the Indy 500, a tradition since 1911. The IMS also houses a Hall of Fame Museum and part of a golf course. Within an hour’s drive are perennial NCAA basketball tournament powerhouses Indiana, Indiana State and Purdue. Within a 2-hour drive are Notre Dame, Louisville and Cincinnati.

Indianapolis Outdoors

There’s a lot to do in the Indiana outdoors. Brown County Park, just 46 miles away in Nashville (IN), is Indiana’s largest park, offering 12 miles of hiking trails, cabins and camping facilities, horseback riding, and great lakes for fishing. A 2-hour drive away, the Falls of Ohio State Park on the Ohio River in Clarksville offers fishing, hiking and 386-million-year-old fossils, which can be viewed when the Ohio River recedes in early autumn.

Indianapolis at Night

There’s always something going on at night downtown; another popular area about a mile away is Fountain Square, a renovated factory loaded with shops, restaurants, bowling alleys and a theatre. Although Indianapolis doesn’t have the large student population of comparably sized cities, it has many huge colleges within a reachable radius. Indianapolis ranks among the cleanest, safest, most affordable and easiest-to-get-to cities, making it easy to get-to-know.

Market Overview - Indianapol is, INDIANA

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 square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330321 7