Dollar General a Corporate Net Leased Dollar Store

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NOR DOLLAR GENERAL A CORPORATE NET LEASED DOLLAR STORE

PENN VALLEY, CA Overview

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17652 PENN VALLEY DR, PENN VALLEY, CA 95946

$3,046,957 5.75% PRICE CAP

LEASEABLE SF LAND AREA LEASE TYPE 9,026 SF 1.20 Acres Absolute NNN

LEASE TERMS YEAR BUILT PARKING 15 Years 2019 42 Spaces

15-year Absolute NNN corporate lease with three 5-year options

Zero Landlord maintenance or expense obligations

$23B revenue company with Investment Grade Credit Rating of S&P - BBB

Internet resistant store concept – serves daily needs of community

Driving distance from San Francisco, Sacramento, and Lake Tahoe

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. 2 Buyer must verify the information and bears all risk for any inaccuracies. Investment Highlights Contact the THE OFFERING provides an opportunity to acquire an absolute NNN Dollar General in team Penn Valley, California. The 15-year lease features a Corporate Guaranty, and includes three 5-year options, with rental increases at the start of each option period. This new JOHN ANDREINI construction build-to-suit asset has zero landlord maintenance or expense obligations. [email protected] The property has excellent visibility and curbside appeal along Penn Valley Drive, the PH: 415.274.2715 “main street” of Penn Valley. The property is located next door to the town’s post office and is surrounded by the majority of the town’s commercial establishments. Penn Valley CA DRE# 01440360 is located 60 miles northeast of Sacramento, the state capital of California. JUSTIN SHARP DOLLAR GENERAL generated $23.5 billion in sales in fiscal 2017 and in excess of $1.54 [email protected] billion in net income. Dollar General currently operates over 15,000 stores in 44 states, PH: 415.274.7392 making it the country’s largest small-box discount retailer. The company has an S&P rating CA DRE# 01895013 of BBB, which has been raised five times since 2009, and is a better credit rating than its main competitors. Dollar General’s stock is up 45% over the past 24 months.

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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. Buyer must verify the information and bears all risk for any DOLLAR GENERAL IS THE COUNTRY’S LARGEST inaccuracies. SMALL-BOX DISCOUNT RETAILER 3 PEARSON’S Zoomed-In Aerial FEED

PENN VALLEY

SACRAMENTO (62 MILES)

7,224 PENN VALLEY MINI VPD STORAGE GRASS VALLEY DRIVE (7 MILES) AUBURN CHARTER SCHOOL (30 MILES) 20 15,000 VPD

ABERCROMBIE ELEMENTARY & COMPANY GATEWAY SCHOOL STOVES PERSONAL & AWNINGS STORAGE

HIGHWAY ANYTHING 20 SELF GREEN PENN VALLEY STORAGE HYDRO- MINI MART PHONICS BLUE COW DELI EAGLE QUICK LUBE GRO TECH SYSTEMS GOLD COUNTRY DAY BREAK AUTOMOTIVE CAFE NORTHRIDGE CAFE HOSPICE GIFT & THRIFT PENN VALLEY MARKET & B LIQUOR CHINA HOUSE FLORISTICS RESTAURANT FLOWER SHOP SPENCEVILLE ROAD FOUR COTTAGE SEASONS BOUTIQUE LANDSCAPE MATERIALS TACK ROOM RESTAURANT 4,779 & BAR VPD GOLD PENN COUNTRY VALLEY RESELLERS FIRE

PLAZA TIRE AND AUTO SPENCEVILLE ROAD CALEB’S CREAMERY AND COFFEE SIMPLY YOU FOUR SALON & SPA SEASONS LANDSCAPE MATERIALS

NEVADA COUNTY 49

NEVADA COUNTY NEVADA SACRAMENTO COUNTY (62 MILES) AUBURN (30 MILES)

NEVADA COUNTY SIERRA COLLEGE SCHOOL

GOLF COURSE GRASS VALLEY NEVADA 4,779 49 COUNTY VPD AIRPORT GOLF SCHOOL COURSE SIERRA SCHOOL NEVADA HIGHWAY MEMORIAL ROUGH AND READY HOSPITAL MIDDLE SCHOOL 15,000 NEVADA VPD COUNTY ELEMENTARY 20 FAIR SCHOOL HIGH SCHOOL 20 PENN VALLEY DRIVE

ELEMENTARY SCHOOL

H&R BLOCK ROAD SPENCEVILLE

INDIAN SPRINGS ROAD ROAD MCCOURTNEY

23,400 49 VPD 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. Buyer must verify the information and bears all risk for any inaccuracies. 5 REPRESENTATIVE PHOTO Income & Expense

PRICE $3,046,957 Capitalization Rate: 5.75% Building Size (SF): 9,026 Lot Size (AC): 1.20 STABILIZED INCOME PSF Scheduled Rent $19.41 $175,200 Effective Gross Income $19.41 $175,200 EXPENSES PSF Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 NET OPERATING INCOME $175,200

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT

Dollar General 9,026 1 15 $175,200 $14,600 $175,200 $1.62 $19.41

Option 1 16 20 $16,060 $192,720 $1.78 $21.35

Option 2 21 25 $17,666 $211,992 $1.96 $23.49

Option 3 26 30 $19,433 $233,191 $2.15 $25.84

TOTALS: 9,026 $175,200 $14,600 $175,200 $1.62 $19.41

STORE OPENING AND RENT COMMENCEMENT ANTICIPATED APRIL 2019.

TENANT’S OBLIGATIONS TENANT Dollar General Tenant is responsible for all maintenance GUARANTOR Dollar General Corporation and repair to the entirety of the Premises, BUILDING SF 9,026 SF including all interior and exterior, structural LEASE TYPE Absolute NNN and nonstructural repairs and replacement. TERM 15 Years RENT COMMENCEMENT Anticipated April 2019 OPTIONS Three 5-year Options LANDLORD’S OBLIGATIONS Zero expense obligations.

INSURANCE RENT Tenant shall maintain the following insurance policies: (1) Commercial general liability insurance with a combined single limit no BASE RENT less than $1 million per occurrence and $2 DATE RANGE MONTHLY RENT ANNUAL RENT million in aggregate; and (2) a special cause of loss policy insuring all improvements on 1 - 15 $14,600 $175,200 the Premises. Landlord shall be named as additional insured. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 16 - 20 $16,060 $192,720 UTILITIES #2. 21 - 25 $17,666 $211,992 Tenant is responsible for direct payment of all #3. 26 - 30 $19,433 $233,191 utilities to the appropriate billing authority.

LEASE ESTOPPEL Tenant shall deliver an executed Estoppel to PROVISIONS Landlord within 20 business days of receipt of written notice.

9,026 1.20 42 RENTABLE SF ACRES SPACES

6,896 VPD

PENN VALLEY DRIVE

7,224 VPD

4,997 VPD

CHARTER SPENCEVILLE ROAD SCHOOL ENTRANCE FOR US POST OFFICE ELEMENTARY ILLUMINATED SCHOOL PYLON SIGN

PENN VALLEY DRIVE

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9 Tenant Overview ABOUT DOLLAR GENERAL

Dollar General (NYSE: DG) is a chain of more than 15,000 discount stores in 44 states, primarily in the South, East, Midwest, and Southwest. Offering basic household items, such as cleaning supplies, health and beauty aids, apparel, and food, it targets low, middle, and fixed-income shoppers. The company has grown to be the country’s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General’s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than any other retailer and is easily the largest dollar store chain.

$23.5 Billion in 2017 Sales 15,000+ Locations in 44 States

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DOLLAR GENERAL IS DOMINATING IN AMERICA. HERE’S HOW IT KEEPS ITS PRICES SO LOW

August 30, 2018 (Business Insider) Dollar General is taking over the United States.

This no-frills, bargain-hunters’ paradise is growing at a level that is largely “unthinkable” in retail, Credit Suisse analysts wrote in June.

In 2017, Dollar General opened new locations at a rate of around four stores a day. In 2018, 900 more stores are slated to open at a rate of about three stores a day.

While competitors have been squeezed by growing competition online and from Amazon, Dollar General and the dollar-store sector, in general, have flourished, swooping in and offering customers prices that are 20% to 40% lower than grocery and drug stores. On Thursday, it continued its 28-year long sales growth streak, reporting a 3.7% increase in same-store sales during the second-quarter of 2018.

Sales at US dollar stores grew to $45.3 billion from $30.4 billion between 2010 and 2015. Moody’s said it expects this market to grow 8% in 2018, which is about double the growth of what is expected for US retail in general during the same period.

Since it opened its first store in a small town in Kentucky in 1955, Dollar General has stayed true to its roots, predominantly serving rural and suburban low- income customers. The retailer’s target shopper comes from a household making $40,000 or less a year and is often living in areas called “food deserts,” meaning they are miles away from access to grocery stores.

In a call with investors on Thursday, Todd Vasos, CEO of the company, said that the chain is also attracting higher-income shoppers and foot traffic to its stores is improving, despite the strength of the economy and customers having more money in their pockets.

“Even in a good economy, she [the customer] is still looking for value and convenience,” he said. READ THE FULL ARTICLE

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or 11 implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. In the News

DOLLAR GENERAL PROFITS FROM A SHRINKING MIDDLE CLASS; IT’S CHEAP, AMAZON-PROOF, AND ADDING STORES

January 12, 2018 (Philly) Even the sign for Dollar General is no frills: black letters on a yellow backdrop.

Bare bones just like the stores’ aisles.

Retail analysts say consumers’ thrifty attitude from the 2008 recession has remained, propelling value dollar stores like Dollar General to expand like crazy.

But there’s another reason for the boom times of dollar stores.

“Dollar stores’ core customers are lower-income consumers, which have been unfortunately growing,” said Ken Perkins, president at Retail Metrics Inc. He noted that the American middle class has been shrinking for decades.

The Pew Research Center found that 50 percent of the adult population in 2015 was middle class, down from 61 percent in 1971. Perkins’ firm found that the middle class had decreased in 203 of 229 metropolitan areas from 2000 to 2014.

The trend has helped make dollar stores one of only five retail sectors projected to have operating income growth above 5 percent this year, a Moody’s report found. (The others are online retailers, off-price, home improvement, and supermarkets.)

Leading growth in the sector has been Dollar General, which offers an array of items from food to general merchandise, typically at $5 or less. The retailer operates about 14,600 stores nationally, including 35 in the Philadelphia region, according to its website. Longer term, it wants to reach 25,000 stores over the next decade.

Dollar General plans to open 900 stores this year, remodel 1,000 existing locations, and relocate about 100 stores, said chief executive officer Todd Vasos during a third-quarter earnings call. READ THE FULL ARTICLE

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or 12 implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. DemographicsTenant Overview

POPULATION PENN VALLEY 1-MILE 3-MILES 5-MILES 2010 1,641 7,325 14,506

2018 1,668 7,519 14,918

2023 1,694 7,687 15,283

SACRAMENTO 2018 HH INCOME (1 HR, 62 MILES) 1-MILE 3-MILES 5-MILES Average $53,876 $77,027 $82,391

NEVADA COUNTY TOP EMPLOYERS EMPLOYER # OF EMPLOYEES SAN FRANCISCO Boreal Mountain Resort 500-999 (2 HR 20 MINS, 146 MILES)

County Nevada 500-999

Clear Capital 250-499

Interfaith Food Ministry 250-499 THE AVERAGE HOUSEHOLD Lodge at Tahoe Donner 250-499 INCOME WITHIN A 5-MILE RADIUS IS OVER $82K

LAKE TAHOE

PENN VALLEY, CA sits at the base of the Sierra Nevada Mountains in ABOUT LAKE LAKE TAHOE, the largest the heart of the California Gold Rush Region. It is located in Nevada TAHOE alpine lake in North America, County 62 miles northeast of Sacramento and 82 miles west of Lake is surrounded by the Sierra Tahoe along Highway 20. The annual Penn Valley Rodeo, started Nevada Mountains on the in 1956, draws over 5,000 visitors more than doubling the town’s California-Nevada border. Known for world-class population over the course of the two day event. ski resorts, fresh water sports, hiking and mountain- biking, Tahoe offers year-round attractions in a Western Gateway Park, located on the northern edge of town, has unique scenic setting. Every year Lake Tahoe 87 acres of park lands featuring 6 bocce ball courts, a disc golf welcomes approximately 2.7 million visitors with course, 4 baseball fields, a basketball court, horse shoe pits, tennis over $2 Billion in regional economic impact. courts, picnic tables, playgrounds, creek-side swimming hole, and walking paths. NEVADA COUNTY 99,814 POPULATION (ESTIMATED) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or 14 implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. We’d love to hear from you.

JOHN ANDREINI [email protected] PH: 415.274.2715 CA DRE# 01440360

JUSTIN SHARP [email protected] PH: 415.274.7392 CA DRE# 01895013

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

ZEB RIPPLE CHRIS KOSTANECKI CHRIS PETERS

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JUSTIN SHARP 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. Buyer must verify the information and bears all risk for any inaccuracies. REPRESENTATIVE PHOTO

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