ACADEMY SPORTS SLIDELL, LOUISIANA. offering memorandum. Investment. Overview Financial. Overview. Financial. Overview. Lease. Lease.

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6 1 1 0 7 A I R P O R T R O A D S L I D E L L, L O U I S I A N

1 A I R P O R T R O A D S L I D E L L, L O U I S I A N A ACADEMY SPORTS SLIDELL, LOUISIANA offering memorandum

INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this 68,000-Square Foot Academy Sports + Outdoors in Slidell, Louisiana; which is 39 miles north of New Orleans.

The lease is backed by a corporate guaranty from Academy, Limited; which register more than $4.7-Billion in revenue across 228 units in 2016.

This asset is located just off Air Port Road in the Stirling Slidell Centre shopping center and is highly visible from Interstate-12, which sees more than 68,000 vehicles per day.

2 INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this 68,000-Square Foot Academy Sports + Outdoors in Slidell, Louisiana; which is 39 miles north of New Orleans. Academy has five years remaining on an absolute net lease with zero landlord responsibilities, and four, five-year renewal options. The lease is backed by a corporate guaranty from Academy, Limited; which register more than $4.7-Billion in revenue across 228 units in Academy Sports + Outdoors was ranked number 87 on Forbes American s Largest Private Companies in This asset is located just off Air Port Road in the Stirling Slidell Centre shopping center and is highly visible from Interstate-12, which sees more than 68,000 vehicles per day. Stirling Slidell Centre offers optimal co-tenancy and proven sales performance of such national retailers as Academy Sports + Outdoors, Ross Dress For Less, PetSmart, Shoe Carnival, and David s Bridal. The Airport Road Retail Corridor is a regional retail trade area with more than 1.5-million square feet of retail. Major anchors along the corridor include Sam s Club, Walmart, Home Depot, Dillard s, and J.C. Penney. This asset also benefits from a growing population. From 2010 to 2016, there was an 8 percent population increase. Additional s in the Retail Trade Area Include: Ross Dress For Less, PetSmart, AT&T, Zales, Kay Jewelers, Bath & Body Works, Starbucks, Bed Bath & Beyond, Marshalls, Dollar Tree, Chase Bank, McDonald s, Burger King, Taco Bell, Wendy s, Walgreens, and More. 2 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: Z

INVESTMENT HIGHLIGHTS Academy Sports + Outdoors in Slidell, Louisiana 39 Miles North of New Orleans More Than Five Years Remaining on Absolute Net Zero Landlord Responsibilities Features Four,

3 INVESTMENT HIGHLIGHTS Academy Sports + Outdoors in Slidell, Louisiana 39 Miles North of New Orleans More Than Five Years Remaining on Absolute Net Zero Landlord Responsibilities Features Four, Five-Year Renewal Options Corporate Guaranty Academy, Limited Number 87 in Forbes Largest Private Companies (July 2016) $4.7-Billion in Revenue Across 228 Units Airport Road Retail Corridor More Than 1.5-Million Square Feet of Retail Strong National Credit Anchors Sam s Club, Walmart, Home Depot, Dillard s, J.C. Penney Direct Frontage on Interstate-12 More Than 68,000 Vehicles Per Day Strong Demographics 8 Percent Population Growth from 2010 to 2016 in the Five-Mile Radius Additional s in the Retail Trade Area Include: Ross Dress For Less, PetSmart, AT&T, Zales, Kay Jewelers. Chase Bank, McDonald s, Taco Bell, Wendy s, Walgreens, and More

FINANCIAL OVERVIEW 61107 AIRPORT ROAD SLIDELL, LOUISIANA 70460 PRICE $4,258,339 CAP RATE 8.25% NOI $351,313 PRICE PER SQUARE FOOT $62.60 RENT PER SQUARE FOOT $5.

4 FINANCIAL OVERVIEW AIRPORT ROAD SLIDELL, LOUISIANA PRICE $4,258,339 CAP RATE 8.25% NOI $351,313 PRICE PER SQUARE FOOT $62.60 RENT PER SQUARE FOOT $5.16 YEAR BUILT 2003 APPROXIMATE LOT SIZE 7.26 Acres GROSS LEASEABLE AREA 68,021 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Corporate Guaranty 4 LEASE TYPE ROOF AND STRUCTURE Absolute Net Responsible 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: Z

LEASE SUMMARY LEASE COMMENCEMENT DATE 6/1/2003 LEASE EXPIRATION DATE 5/31/2023 LEASE TERM 20 Years TERM REMAINING INCREASES 5 Years None Remaining OPTIONS TO RENEW Four, Five-Year FIRST RIGHT OF

5 LEASE SUMMARY LEASE COMMENCEMENT DATE 6/1/2003 LEASE EXPIRATION DATE 5/31/2023 LEASE TERM 20 Years TERM REMAINING INCREASES 5 Years None Remaining OPTIONS TO RENEW Four, Five-Year FIRST RIGHT OF REFUSAL Yes 5 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: Z

TENANT OVERVIEW Founded in 1938, Academy, Limited; doing business as Academy Sports & Outdoors is one of the nation s largest sporting goods and outdoor stores.

7 TENANT OVERVIEW Founded in 1938, Academy, Limited; doing business as Academy Sports & Outdoors is one of the nation s largest sporting goods and outdoor stores. At Academy Sports + Outdoors, we make it easier for everyone to enjoy more sports and outdoors. At each of our 220+ locations, we carry a wide range of quality hunting, fishing and camping equipment, patio sets and barbecue grills, along with sports and recreation products, at everyday low prices. For all. For less. Academy is currently owned by funds advised by Kohlberg Kravis Roberts & Company, Limited Partnership (together with its affiliates, KKR ), a leading global investment firm, and led by Chief Executive Officer and President J.K. Symancyk. Prior to August 2011, the company was owned by the Gochman Family and led by Chairman and Chief Executive Officer David Gochman. David s grandfather, Max Gochman, started Academy Sports + Outdoors over 75 years ago when he opened Academy Tire Shop in 1938 in San Antonio, Texas. After a few years, Max began selling military surplus, and the store continued to evolve into what it is now a premier sports, outdoor, and lifestyle retailer with a broad assortment of high-quality hunting, fishing and camping equipment and gear along with sports and leisure products, footwear, apparel and much more. Over the last several decades, the company has grown substantially from its small beginnings. Sales reached one billion dollars in 2004, two billion dollars in 2007, and three billion dollars in Today, annual sales exceed $4.6 billion. ABOUT KKR KKR is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds. Specializing in leveraged buyouts, headquartered in New York City, the firm sponsors and manages private equity investment funds. A pioneer in the leveraged buyout industry, the firm has completed over $400 billion of private equity transactions since its inception. 7 TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR TENANT PROFILE NUMBER OF LOCATIONS 228 Academy Sports + Outdoors Private Corporate Store Corporate Guarantee SALES VOLUME $4.7 Billion (2015) NET WORTH $31.3 Billion (2015) RANK Number 87 Forbes America s Largest Private Companies The firm was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. Roberts, all of whom had previously worked together at Bear Stearns, where they completed some of the earliest leveraged buyout transactions. Since its founding, KKR has completed a number of landmark transactions including the 1989 leveraged buyout of RJR Nabisco, which was the largest buyout in history to that point, as well as the 2007 buyout of TXU, which is currently the largest buyout completed to date. KKR has completed investments in over 160 companies since 1977, completing at least one investment in every year except in 1982 and in KKR has 13 additional offices in the United States, Europe and Asia. The firm is currently located in the Solow Building (9 W. 57th Street in Manhattan New York), but recently announced its intentions to occupy a newly constructed 30 Hudson Yards. In October 2009, KKR listed shares in the company through KKR & Co., an affiliate that holds 30% of the firm s ownership equity, with the remainder held by the firm s partners. In March 2010, KKR filed to list its shares on the New York Stock Exchange (NYSE), with trading commencing four months later, on July 15, 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: Z

ABOUT SLIDELL Slidell is the largest city situated on the northeast shore of Lake Pontchartrain and St. Tammany Parish, Louisiana, United States. The population was 27,068 at the 2010 census.

It is a part of the New Orleans metro area. Slidell was founded in 1882 after the New Orleans and Northeastern Railroad arrived in the area. Slidell was formally incorporated as a city in 1888.

8 ABOUT SLIDELL Slidell is the largest city situated on the northeast shore of Lake Pontchartrain and St. Tammany Parish, Louisiana, United States. The population was 27,068 at the 2010 census. Greater Slidell has a population of about 90,000. It is part of the New Orleans Metairie Kenner Metropolitan Statistical Area. The city of Slidell is in Saint Tammany Parish. It is a part of the New Orleans metro area. Slidell was founded in 1882 after the New Orleans and Northeastern Railroad arrived in the area. Slidell was formally incorporated as a city in It was named after John Slidell, an American politician. Business in the city began to develop in the early twentieth century. Slidell is the global headquarters for Automotive manufacturer and Military contractor Textron Marine & Land Systems, an American military contractor that manufactures armored vehicles, turrets, advanced marine craft, surface effects ships, and other weapon systems. Amtrak s daily Crescent train connects Slidell with New York City, Washington, D.C., Atlanta, Birmingham, and New Orleans. The Slidell Amtrak station is situated on Front Street in Olde Towne Slidell, with a beautiful view of one of the city s parks, Heritage, which is complete with playground equipment for younger children and open spaces for people to play football. There are also numerous fishing spots. Slidell is located on the southwest corner of the intersection of Interstate 10, Interstate 12, Interstate 59, and U.S. Highway 11. The I-10 Twin Span Bridge runs from Slidell over Lake Pontchartrain to New Orleans East. Slidell Airport (ICAO: KASD, FAA LID: ASD) is a city-owned public-use airport located four nautical miles (7 km) northwest of the central business district of Slidell. Higher education is available from Delgado Community College, Dillard University, Orleans Parish, Louisiana Technical College, Loyola University New Orleans and Mississippi Gulf Coast Community College. 8 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: Z

1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 2000 Population 1,974 14,556 47,747 2000 Households 720 5,192 17,220 2010 Population 2,678 16,955 50,913 2010 Households 973 6,141

9 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 2000 Population 1,974 14,556 47, Households 720 5,192 17, Population 2,678 16,955 50, Households 973 6,141 18, Population 2,884 17,899 53, Households 1,053 6,500 19, Average HH Income 2016 Median HH Income 2016 Per Capita Income $68,927 $64,565 $65,457 $60,234 $50,748 $50,523 $25,166 $23,447 $24,158

10 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing 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 ing 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 ing 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 ing Brochure you agree to release Marcus & Millichap Real Estate 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.

S I A N A 7 0 4 6 0 BROKER OF RECORD: CHRIS SHAHEEN

11 ACADEMY SPORTS SLIDELL, LOUISIANA offering memorandum A I R P O R T R O A D S L I D E L L, L O U I S I A N A BROKER OF RECORD: CHRIS SHAHEEN MARCUS & MILLICHAP LOUISIANA LICENSE: BROK ACT

NET LEASE INVESTMENT OFFERING BOOT BARN

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