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WARFIELD TOWERS329 Warfield Boulevard • Clarksville, Tennessee 37043

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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 NoticeMarcus & 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.

WARFIELD TOWERSClarksville, TNACT ID ZAA0480010

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Location Overview Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02 Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03 Sales Comparables

MARKET OVERVIEW 04 Demographic Analysis

WARFIELD TOWERS

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WARFIELD TOWERS

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INVESTMENT

OVERVIEW

WARFIELD TOWERS

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Fluor Federal Solutions LLC 2,500

Gryphon Investors Inc 2,337

Clarksville Memorial Hospital 1,000

Walmart 708

Apsu 685

U-Haul 640

Jostens Printing & Publishing 600

Akebono 515

Superior Maintenance Co 513

City of Clarksville 408

Montgomery County Sheriffs Off 400

Metalpha 375

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 3,445 25,241 80,951

2010 Census Pop 2,927 20,797 67,907

2018 Estimate HH 1,448 9,862 31,199

2010 Census HH 1,197 7,979 25,750

Median HH Income $53,527 $61,128 $60,133

Per Capita Income $26,634 $29,000 $27,996

Average HH Income $62,691 $73,944 $71,915

VITAL DATA

YEAR 1 YEAR 2

Price $2,700,000 CAP Rate 8.02% 8.02%

Down Payment 25.75% / $695,250 Net Operating Income $216,576 $216,576

Loan Amount $2,025,000 Net Cash Flow After Debt Service 10.72% / $74,521 10.72% / $74,521

Loan Type Proposed New Total Return 16.72% / $116,274 17.03% / $118,410

Interest Rate / Amortization 5.00% / 25 Years

Gross Leasable Area (GLA) 15,600 SF

Price/SF $173.08

Current Occupancy 100.0%

Year Built / Renovated 1999

Lot Size 1.99 acre(s)

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MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

Looking Glass 4,800 1/1/2024 NNN

Legacy Mortgage Services 2,400 NNN

United Chropratic 2,400 NNN

Rossview Dental 2,400 NNN

WARFIELD TOWERS

OFFERING SUMMARY

§ Value-Add Opportunity

§ Five-Lane Highway to be Completed in Front of Center Within Six Months

§ Will Be a Major Arterial Highway Perfect for National Tenants

§ Incredible Visibility from Warfield Boulevard

§ New HVAC Units

§ Potential Rent Increase for All Tenants

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present the Warfield Towers shopping center, a 15,600-square-foot strip mall located at 329 Warfield Boulevard in Clarksville, Tennessee.

Warfield Boulevard connects Wilma Rudolph and Madison Street, the two major retail corridors in the Clarksville area. Warfield Boulevard benefits from approximately

29,000 cars per day and that number will increase significantly when construction of the five-lane highway is completed. The property benefits from incredible street

visibility, making this a prime location for a national tenant. The property has a long history of being fully leased with very little tenant turnover.

Clarksville is located 45 miles northwest of Nashville and is the 19th fastest growing city in the United States. Situated on Interstate 24, the city has seen major economic

growth and is currently the fifth-largest city in the state. According to state projections, the city is poised to surpass Chattanooga and become the state's fourth-largest

city by 2020.

The major employers in the immediate area include Hankook Tire, LG Lighting, Trane, and Tennova Healthcare. Google recently positioned a major, regional fiber-optics

center in the market and AtlasBX recently announced a $75 million investment. Clarksville is also home to Austin Peay College, which is home to nearly 10,000 students. In

addition to the city's base population, the neighboring Fort Campbell Military—home to the 101st Airborne Division known as the “Screaming Eagles”—contains more than

140,000 troops. Fort Campbell Military Base is home to the fifth-largest military population in the army and the seventh-largest in the Department of Defense.

INVESTMENT OVERVIEW

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WARFIELD TOWERS

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OFFERING SUMMARY

PROPERTY OVERVIEW

Marcus & Millichap is pleased to present a 15,600-square-foot retail shopping center on 329 Warfield Boulevard.

This asset is fully leased and has a history of very little tenant turnover. The property benefits from having

incredibly high visibility from Warfield Boulevard with high traffic counts of approximately 29,000 cars per day,

which will increase significantly when construction of the five-lane highway is completed . The value-add

component of this center is its location and tenant turnover ability once the highway is completed. It is

strategically located for a multitude of national tenants with a possibility to easily convert one of the end caps

into a drive-thru.

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WARFIELD TOWERS

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $2,025,000

Loan Type Proposed New

Interest Rate 5.00%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 75%

Debt Coverage Ratio 1.52

THE OFFERING

Property Warfield Towers

Price $2,700,000

Property Address 329 Warfield Boulevard, Clarksville, TN

Assessors Parcel Number 063041 08704

SITE DESCRIPTION

Year Built/Renovated 1999

Gross Leasable Area 15,600 SF

Ownership Fee Simple

Lot Size 1.99 acre(s)

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#

LOCATION OVERVIEW

CLOSE PROXIMITY TO:

329 Warfield Boulevard, Clarksville, Tennessee 37043

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEWARFIELD TOWERS

PRICING AND VALUATION MATRIX

PROPERTY NAME

WARFIELD TOWERS

LOCATION OVERVIEW

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REGIONAL MAP

WARFIELD TOWERS

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LOCAL MAP

WARFIELD TOWERS

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AERIAL PHOTO

WARFIELD TOWERS

28,733 VPD

Future Five-Lane Highway

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12

WARFIELD TOWERS

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PROPERTY PHOTO

WARFIELD TOWERS

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

WARFIELD TOWERS

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TENANT SUMMARY

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TENANT SUMMARYFINANCIAL ANALYSIS

WARFIELD TOWERS

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FINANCIAL ANALYSIS

WARFIELD TOWERS

OPERATING STATEMENT

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FINANCIAL ANALYSIS

WARFIELD TOWERS

PRICING DETAIL

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TENANT PROFILES

WARFIELD TOWERS

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The Looking Glass

General Information

Tenant Name The Looking Glass

Website https://thelookingglassrestaurant.com/

Rentable Square Feet 4,800 SF

Percentage of RBA 30.77%

Lease Commencement 4/1/2019

Lease Expiration 4/1/2024

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WARFIELD TOWERS

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Legacy Mortgage Services Inc.

General Information

Tenant Name Legacy Mortgage Services Inc.

Website http://legacytn.com/default.aspx



Swirlz Art Studio

General Information

Tenant Name Swirlz Art Studio

Website https://www.rezclick.com/swirlzartstudio/index.php?page=calendar



TENANT PROFILES

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WARFIELD TOWERS

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Rossview Dental

General Information

Tenant Name Rossview Dental

Website https://www.rossviewdental.com/



Clarksville Reef & Reptiles

General Information

Tenant Name Clarksville Reef & Reptiles

Website http://clarksvillereefreptiles.com/



TENANT PROFILES

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WARFIELD TOWERS

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United Chiropractic

General Information

Tenant Name United Chiropractic

Website http://www.clarksvilleunitedchiro.com/



TENANT PROFILES

WARFIELD TOWERS

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MARKET

COMPARABLES

WARFIELD TOWERS

SALES COMPARABLES MAP

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WARFIELD TOWERS(SUBJECT)

Madison Square Shopping Center

Campbell Corner

Sango Marketplace

108 Morris Rd

SALES COMPARABLES

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2

3

4

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PROPERTY NAME

WARFIELD TOWERS

SALES COMPARABLES

WarfieldTowers

MadisonSquare

ShoppingCenter

CampbellCorner

SangoMarketplace

108Morris Rd

0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

8.1

9.0

Avg. 7.53%

Average Cap Rate

WarfieldTowers

MadisonSquare

ShoppingCenter

CampbellCorner

SangoMarketplace

108Morris Rd

$0.00

$40.00

$80.00

$120.00

$160.00

$200.00

$240.00

$280.00

$320.00

$360.00

$400.00

Avg. $250.84

Average Price Per Square Foot

SALES COMPARABLES

SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

WARFIELD TOWERS

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


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SALES COMPARABLES

WARFIELD TOWERS329 Warfield Boulevard, Clarksville, TN, 37043

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Annual Per SF

Expenses $17,817 $1.03

NOTESOn February 27, 2017 the 17,222-square-foot retail property at 1820 Madison Street, also known as Madison Square Shopping Center, was sold as an investment transaction for $2,684,000 or $155.85 per square foot. At the time of sale, it was a fully leased, Class B strip mall that delivered in 1988 and included tenants such as Jimmy John’s and Great Clips. Sale price, sale date and occupancy were confirmed by the seller and the buyer. The cap rate was confirmed by the buyer.

MADISON SQUARE SHOPPING CENTER1820 Madison Street, Clarksville, TN, 37043

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Annual Per SF

NOI $377,489 $24.33

NOTESOn 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 contract for 60 days. The buyer purchased to fulfill a 1031 exchange. The net operating income was reported to be $377,489 yielding a cap rate of 6.99 percent. These details have been confirmed by a source deemed reliable.

CAMPBELL CORNER4131 Fort Campbell Boulevard, Hopkinsville, KY, 42240

Tenants

Close Of Escrow: 2/27/2017 Verizon Wireless

Sales Price: $2,684,000 Jimmy John's

Price/SF: $155.85 Advance America

CAP Rate: 9.00% Sport Clips Haircuts

Year Built: 1988

Annual Per SF

Income $288,269 $18.48

Expenses $67,421 $4.32

NOI $220,848 $14.16

Occupancy 100.0%

Tenants Lease Type

Asking Price: $2,700,000Legacy Mortgage Services

NNN

Price/SF: $173.08 United Chropratic NNN

CAP Rate: 8.18% Rossview Dental NNN

Year Built: 1999 Looking Glass NNN

Clarksville Reef & Reptile

NNN

Tenants

Close Of Escrow: 7/7/2016 Mattress Firm

Sales Price: $5,396,557 Aspen Dental

Price/SF: $347.76 Vision Works

CAP Rate: 6.99% Kay Jewelers

Year Built: 2016

PROPERTY NAME

MARKETING TEAM

WARFIELD TOWERS

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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NOTESSango Village is a 25,000-square-foot retail development with space available immediately. Great visibility from Madison Street and on the corner of an entrance to a residential neighborhood. With respect to this transaction, the in-place cap rate was set at 6.5 percent for both the retail building and land. The actual cap rate is closer to 7.1 percent with a net operating income of $292,500 which was based solely on the retail building.

SANGO MARKETPLACE2690 Madison Street, Clarksville, TN, 37043

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108 MORRIS RD108 Morris Road, Clarksville, TN, 37040

Tenants

Close Of Escrow: 7/29/2016 Anytime Fitness

Sales Price: $3,907,887 Michaels Pizza

Price/SF: $150.30 Star Physical Therapy

CAP Rate: 7.10%

Year Built: 2007

Tenants

Close Of Escrow: 6/12/2018 Panera Bread

Sales Price: $2,586,986 Smoothie King

Price/SF: $349.45 Pie Five Pizza

CAP Rate: 7.03%

Year Built: 2014

WARFIELD TOWERS

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MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM

WARFIELD TOWERS

DEMOGRAPHICS

Source: © 2018 Experian

Created on March 2019

POPULATION 1 Miles 3 Miles 5 Miles§ 2023 Projection

Total Population 3,760 28,504 91,112

§ 2018 Estimate


§ 2010 Census


§ 2000 Census


§ Current Daytime Population

2018 Estimate 6,922 26,103 89,432

HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2023 Projection

Total Households 1,604 11,292 35,416

§ 2018 Estimate


Average (Mean) Household Size 2.38 2.58 2.55

§ 2010 Census


§ 2000 Census

Total Households 812 5,210 17,457

§ Occupied Units

2023 Projection 1,604 11,292 35,416

2018 Estimate 1,573 10,568 33,617

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2018 Estimate

$150,000 or More 3.24% 6.22% 5.97%

$100,000 - $149,000 13.80% 14.30% 13.54%

$75,000 - $99,999 13.79% 15.77% 15.77%

$50,000 - $74,999 23.34% 25.03% 23.96%

$35,000 - $49,999 10.87% 13.51% 13.07%

Under $35,000 34.96% 25.18% 27.69%

Average Household Income $62,691 $73,944 $71,915

Median Household Income $53,527 $61,128 $60,133

Per Capita Income $26,634 $29,000 $27,996

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $59,466 $64,311 $62,879

§ Consumer Expenditure Top 10 Categories

Housing $14,821 $16,096 $15,775

Transportation $10,850 $11,722 $11,221

Shelter $7,762 $8,247 $8,090

Food $6,438 $7,068 $6,856

Personal Insurance and Pensions $5,851 $6,667 $6,502

Utilities $3,828 $4,126 $4,031

Health Care $3,716 $4,377 $4,323

Entertainment $2,474 $2,731 $2,657

Cash Contributions $1,657 $1,974 $1,934

Household Furnishings and Equipment $1,566 $1,810 $1,754

POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age

2018 Estimate Total Population 3,445 25,241 80,951

Under 20 26.02% 27.68% 29.02%

20 to 34 Years 32.89% 28.89% 28.50%

35 to 39 Years 6.46% 7.32% 7.39%

40 to 49 Years 10.86% 11.50% 11.73%

50 to 64 Years 15.44% 15.70% 14.42%

Age 65+ 8.32% 8.93% 8.94%

Median Age 29.83 31.25 30.75

§ Population 25+ by Education Level

2018 Estimate Population Age 25+ 2,155 16,024 50,051

Elementary (0-8) 0.91% 1.46% 1.62%

Some High School (9-11) 7.45% 4.13% 4.98%

High School Graduate (12) 36.94% 31.86% 29.78%

Some College (13-15) 24.48% 26.67% 26.34%

Associate Degree Only 6.53% 7.86% 8.02%

Bachelors Degree Only 16.81% 18.84% 19.02%

Graduate Degree 6.70% 8.62% 9.33%

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IncomeIn 2018, the median household income for your selected geography is $53,527, compare this to the US average which is currently $58,754. The median household income for your area has changed by 50.99% since 2000. It is estimated that the median household income in your area will be $62,654 five years from now, which represents a change of 17.05% from the current year. The current year per capita income in your area is $26,634, compare this to the US average, which is $32,356. The current year average household income in your area is $62,691, compare this to the US average which is $84,609.

PopulationIn 2018, the population in your selected geography is 3,445. The population has changed by 75.32% since 2000. It is estimated that the population in your area will be 3,760.00 five years from now, which represents a change of 9.14% from the current year. The current population is 50.67% male and 49.33% female. The median age of the population in your area is 29.83, compare this to the US average which is 37.95. The population density in your area is 1,095.95 people per square mile.

HouseholdsThere are currently 1,448 households in your selected geography. The number of households has changed by 78.33% since 2000. It is estimated that the number of households in your area will be 1,604 five years from now, which represents a change of 10.77% from the current year. The average household size in your area is 2.38 persons.

EmploymentIn 2018, there are 4,174 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 51.67% of employees are employed in white-collar occupations in this geography, and 44.87% are employed in blue-collar occupations. In 2018, unemployment in this area is 3.47%. In 2000, the average time traveled to work was 25.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows: 66.22% White, 20.49% Black, 0.24% Native American and 4.31% Asian/Pacific Islander. Compare these to US averages which are: 70.20% White, 12.89% Black, 0.19% Native American and 5.59% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 9.91% of the current year population in your selected area. Compare this to the US average of 18.01%.

PROPERTY NAME

MARKETING TEAM

WARFIELD TOWERS

HousingThe median housing value in your area was $172,169 in 2018, compare this to the US average of $201,842. In 2000, there were 354 owner occupied housing units in your area and there were 458 renter occupied housing units in your area. The median rent at the time was $467.

Source: © 2018 Experian

DEMOGRAPHICS

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WARFIELD TOWERS

DEMOGRAPHICS

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www.MarcusMillichap.com

Alan Treadway, Jr.

Associate

Director, National Retail GroupNashville OfficeTel: (615) 997-2856

Fax: (615) 997-2910

[email protected]

License: TN 00226652

P R E S E N T E D B Y

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