OFFERING MEMORANDUM

DOLLAR TREE & MAURICES 3050A & 3050B S HIGHWAY 169 GRAND RAPIDS, MN TABLE OF CONTENTS

DOLLARTREE&MAURICES

01 02 03 FINANCIAL INVESTMENT MARKET OVERVIEW OVERVIEW OVERVIEW PAGES 03-07 PAGES 08-14 PAGES 15-17

ACT ID: ZAB0260097 FINANCIAL OVERVIEW

SECTION 1 01 FINANCIAL OVERVIEW SECTION 1 SECTION EXECUTIVE SUMMARY

DOLLAR TREE & MAURICES 3050A & 3050B S Highway 169, Grand Rapids, MN 55744 PRICING Price: $1,880,000 Cap Rate: 8.50% Gross Leasable Area: 13,000 PRICE: CAP RATE: NOI: Price Per Square Foot: $144.62 $1,880,000 8.50% $159,761 Year Built: 2013 Lot Size: 1.58 Acres

INVESTMENT HIGHLIGHTS SQUARE FEET: LEASE TYPES: ACREAGE: ➢ Offering Includes Standalone Dollar Tree (NASDAQ: 13,000 Triple Net 1.58 Acres “DLTR”) & Maurices (NASDAQ: “ASNA” – Parent Co)

➢ Walmart Supercenter Outparcel DEMOGRAPHICS ➢ Built in 2013 | Build-to-Suit Construction for both Dollar 1-Mile 3-Mile 5-Mile Tree & Maurices Population 401 7,819 15,469 Repeat clients ➢ Zero Lease Rollover until April 2023 Average HH Decades worth of experience $67,202 $59,879 $63,280 Income ➢ Close ProximityHighly-focusedto Major specializationRetailers like Target, The Home Depot & Walmart

4 SECTION 1 SECTION OPERATING SUMMARY

SUMMARY PROPOSED NEW FINANCING

Price: $1,880,000 Loan Amount: $1,316,000

Down Payment (30%): $564,000 Terms 4.25% Interest Rate Current CAP: 8.50%

Cash on Cash: 12.70% 25 Year Amortization

Square Feet 13,000 5 Year Term Cost per Square Feet: $144.62

Debt Coverage Ratio: 1.87 Monthly Payment: $7,129.27

Year Built: 2013 Annual Payment: $85,551.28 OPERATING DATA EXPENSES

Scheduled Gross Income: $164,500 Taxes: $2.81 $36,556

CTI Reimbursements: $58,420 Insurance: $0.31 $4,072

Admin Reimbursements: $1,380 CAM: $1.41 $18,303

Total Income: $224,299 Management: 2.50% $5,607

Vacancy Factor: $- TOTAL EXPENSES: $64,538 Gross Operating Income: $224,299 Per RSF: $4.96 Less Expenses: $64,538

Net Operating Income: $159,761 8.50%

Capital Reserves: $2,660 ($.20)

Loan Payments: $85,551

Pre Tax Cash Flow: $71,610 12.70%

Plus Principal Reduction: $30,205

Total Return Before Taxes: $101,815 18.05%

5 SECTION 1 SECTION RENT ROLL New Sq. % of Lease Lease Monthly Annual Annual Bump Annual Lease Option Suite Tenant Rent Ft. Total Start End Rent Rent PSF Date Reimb. Type Terms PSF A Dollar Tree 8,000 61.54% 2/3/2013 4/30/2023 $7,666 $92,000 $11.50 $36,429 NNN (2) 5-Yr

Option I 6/8/2023 $12.00

Option II 6/8/2028 $12.50 B Maurices 5,000 38.46% 1/31/2013 6/30/2023 $6,041 $72,500 $14.50 $23,369 NNN (4) 5-Yr

Option I 7/1/2023 $15.00

Option II 7/1/2028 $15.50

Option III 7/1/2033 $16.00

Option IV 7/1/2038 $16.50

Current Totals 13,000 100% $13,708 $164,500 $12.65 $59,799

Occupied 13,000 100% $13,708 $164,500 $12.65 $59,799

Vacant

6 SECTION 1 SECTION TENANT PROFILES

Dollar Tree, Inc. is an American chain of discount variety Maurice's is a part of , Inc., through its stores that sells items for $1 or less. Headquartered in subsidiaries, operates as a specialty retailer of clothing, shoes, Chesapeake, Virginia, it is a member company of Fortune and accessories for missy, plus-size women, and tween girls in 500 and operates 15,155 stores throughout the 48 contiguous the United States, Canada, and Puerto Rico. The company U.S. states and Canada. Its stores are supported by a operates through five segments: , , nationwide logistics network of eleven distribution centers. Maurice's, Dressbarn, and Catherine's. The company operates The company operates one-dollar stores under the names of more than 4,900 stores. It also offers its products online. The Dollar Tree and Dollar Bills. The company also operates multi- company was formerly known as Dress Barn, Inc. and changed price-point variety chains under the names Deals and Family its name to Ascena Retail Group, Inc. in January 2011. Ascena Dollar. Retail Group, Inc. was founded in 1962 and is headquartered in Mahwah, New Jersey. Headquarters: Chesapeake, Virginia Headquarters: Duluth, Minnesota No. of Locations: 15,155+ No. of Locations: 950 Symbol: NASDAQ: “DTR” Symbol: NASDAQ: “ASNA” Website: www.dollartree.com Website: www.maurices.com Square Footage: 8,000 Square Footage: 5,000 Lease Start: February 3, 2013 Lease Start: January 31, 2013 Lease Expiration: April 30, 2023 Lease Expiration: June 30, 2023

7 INVESTMENT OVERVIEW

SECTION 2 02 INVESTMENT OVERVIEW INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS INVESTMENT WRITE-UP Marcus & Millichap is pleased to present this standalone Dollar Tree and

SECTION 2 SECTION ➢ Positioned as a Walmart Supercenter standalone Maurices located in Grand Rapids, Minnesota. Outparcel Grand Rapids is the county seat of Itasca County and is named for the ➢ Offering Includes Standalone Dollar Tree & 3.5-mile long local rapids in the Mississippi River. Grand Rapids provides Standalone Maurices small town charm whilst surrounding its residents and visitors with Minnesota’s nature. Set apart by a progressive attitude and abundant ➢ Modified NNN Leases for Both Tenants | resources, Grand Rapids is the emerging economic focus of Northcentral Minnesota. Significant increases in area employment are anticipated Tenants Reimburse Fully for Share of CTI over the next few years as the largest projects in development come Expenses online, therefore Grand Rapids is actively seeking new business and housing partners and assisting the growth of existing enterprises. ➢ Walmart, Target & The Home Depot Nearby | Close Proximity to Several Major The two buildings cover 13,000 square feet, both constructed as build-to- Retailers suit for each tenant in 2013. There is zero near-term lease rollover as each tenant has substantial lease term left. Dollar Tree and Maurices both operate under modified triple net leases, with the landlord ➢ Ideally Situated in a Rapidly Growing Trade responsible for the roof and structure and each tenant reimbursing for Area their pro-rata share of expenses. Dollar Tree is a Fortune 150 company and operates more than 14,835 ➢ Zero Lease Rollover Until April 2023 | No locations across 48 states and Canada. In July 2015, Dollar Tree completed its purchase of Family Dollar after a long-awaited Near-Term Lease Rollover Risk completion of the deal that drew close to a yearlong takeover saga that included a hostile buyout attempt from another discount retailer, ➢ Sits Less than 2 Miles from the Grand Rapids Dollar General. Itasca County Airport Maurices’s was a part of Ascena Retail Group, Inc which operates more Repeat clients than 4,900 stores across five main brands and is publically traded on the ➢ Easy DecadesHighway worthAccess of experience| Adjacent to NASDAQ under the ticker symbol “ASNA”. However, in late March 2019, Minnesota’s Highway 169 (“Connector for a majority stake in the Duluth-based retail chain was purchased in a the Midwest”)Highly-focused specialization $300 million deal by an affiliate of the London-based private equity firm, OpCapita LLP. Ascena will maintain a significant minority interest.

9 PROPERTY

PHOTOS SECTION 2 SECTION

Repeat clients Decades worth of experience Highly-focused specialization

10 DRONE

AERIAL SECTION 2 SECTION

Repeat clients Decades worth of experience Highly-focused specialization

193011 MARKET

AERIAL SECTION 2 SECTION

Repeat clients Decades worth of experience Highly-focused specialization

193012 LOCAL

MAP SECTION 2 SECTION

1.5 MILES 3.0 MILES 4.2 MILES Grand Rapids Grand Itasca Clinic Itasca Community Itasca County & Hospital College Airport

Repeat clients Decades worth of experience Highly-focused specialization

193013 REGIONAL

MAP SECTION 2 SECTION

Repeat clients 81 MILESDecades worth of experience 173 MILES 410 MILES Duluth, Minneapolis, Green Bay, Highly-focused specialization Minnesota Minnesota Wisconsin

193014 MARKET OVERVIEW

SECTION 3 03 MARKET OVERVIEW MARKET OVERVIEW

Race and Ethnicity Population The current year racial makeup of your selected area is as In 2019, the population in your selected geography is 15,469. follows: 93.47% White, 0.91% Black, 0.05% Native The population has changed by 5.28% since 2000. It is American and 0.52% Asian/Pacific Islander. Compare estimated that the population in your area will be 15,768.00 five these to US averages which are: 70.20% White, 12.89% years from now, which represents a change of 1.93% from the Black, 0.19% Native American and 5.59% Asian/Pacific current year. The current population is 48.70% male and Islander. People of Hispanic origin are counted 51.30% female. The median age of the population in your area independently of race. is 42.08, compare this to the US average which is 37.95. The population density in your area is 196.33 people per square People of Hispanic origin make up 1.91% of the current SECTION 3 SECTION mile. 2018 HOUSEHOLDS: year population in your selected area. Compare this to the Households US average of 18.01%.

There are currentlyGrowth 6,558 households in your selected Employment geography. The2018-number2023*: of households has changed by 8.33% 6.0% since 2000. It is estimated that the number of households in In 2019, there are 11,417 employees in your selected area, your area will be 6,759 five years from now, which represents a this is also known as the daytime population. The 2000 change of 3.06% from the current year. The average household Census revealed that 52.57% of employees are employed size in your area is 2.24 persons. in white-collar occupations in this geography, and 46.97% are employed in blue-collar occupations. In 2019, unemployment in this area is 6.49%. In 2000, the average Income time traveled to work was 18.00 minutes. In 2019, the median household income for your selected geography is $50,072, compare this to the US average which is currently $58,754. The median household income for your area has changed by 48.49% since 2000. It is estimated that the median household income in your area will be $55,718 five years from now, which represents a change of 11.28% from the current year. Repeat clients The current year per capita income in your area is $27,490, compareDecadesthis toworththe US of experienceaverage, which is $32,356. The current yearHighlyaverage-focusedhousehold specializationincome in your area is $63,280, compare this to the US average which is $84,609.

16 MARKET OVERVIEW

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail ▪ 2023 Projection $68,362 $60,661 $63,428 Expenditure Total Population 416 7,941 15,768 ▪ Consumer Expenditure Top 10 ▪ 2018 Estimate Categories Total Population 401 7,819 15,469 Housing $17,465 $15,527 $16,348 ▪ 2010 Census Transportation $11,749 $10,543 $10,904 Total Population 404 7,767 15,290 Shelter $10,190 $9,103 $9,528 ▪ 2000 Census Food $6,637 $5,469 $5,794 Total Population 375 7,328 14,693 Personal Insurance and Pensions $6,322 $5,622 $5,862 ▪ Current Daytime Population Health Care $5,025 $4,318 $4,710 2018 Estimate 491 12,341 23,507 Utilities $3,659 $3,267 $3,433

SECTION 3 SECTION 2018 HOUSEHOLDS HOUSEHOLDS: 1 Miles 3 Miles 5 Miles Entertainment $3,117 $2,754 $2,910 ▪ 2023 Projection Cash Contributions $3,095 $2,980 $3,130 Total Households 146 3,386 6,759 Apparel $1,739 $1,495 $1,605 ▪ 2018 Estimate 6.0% POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 139 3,303 6,558 ▪ Population By Age Average (Mean) Household Size 2.45 2.24 2.24 2018 Estimate Total Population 401 7,819 15,469 ▪ 2010 Census Under 20 25.51% 25.48% 24.32% Total Households 139 3,235 6,380 20 to 34 Years 17.25% 20.26% 17.27% ▪ 2000 Census 35 to 39 Years 5.80% 6.18% 6.14% Total Households 128 3,139 6,054 Occupied Units Growth 40 to 49 Years 11.86% 10.43% 10.84% ▪ 2018-2023*: 2023 Projection 146 3,386 6,759 50 to 64 Years 21.42% 19.30% 20.78% 2018 Estimate 158 3,537 7,072 Age 65+ 18.16% 18.35% 20.65% HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles Median Age 41.27 38.36 42.08 ▪ 2018 Estimate ▪ Population 25+ by Education Level $150,000 or More 4.39% 3.89% 4.04% 2018 Estimate Population Age 25+ 274 5,305 10,822 $100,000 - $149,000 13.89% 10.87% 12.11% Elementary (0-8) 1.14% 1.70% 1.74% $75,000 - $99,999 13.56% 11.17% 12.20% Some High School (9-11) 3.76% 3.58% 3.46% $50,000 - $74,999 22.93% 21.64% 21.71% High School Graduate (12) 29.50% 33.25% 31.10% $35,000 - $49,999 14.09% 14.02% 14.87% Some College (13-15) 32.42% 27.15% 27.04% Average Household Income $67,202 $59,879 $63,280 Associate Degree Only 11.16% 10.78% 11.46% Median Household Income $54,309 $46,721 $50,072 Bachelors Degree Only 15.51% 16.66% 17.38% Per Capita Income $23,484 $26,081 $27,490 Graduate Degree 5.98% 6.46% 7.52% 17 CONFIDENTIALITY & 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 prepare 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, not 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.

NON-ENDORSEMENT NOTICE 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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing 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 Marketing 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 Marketing 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 Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment 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. DOLLAR TREE & MAURICES | GRAND RAPIDS, MN

M i n n e s o t a BOR J o n R u z i c k a Regional Manager, Minneapolis L i c : B63379000 ACT ID: ZAB0260102 EXCLUSIVE OFFERING

PRESENTED BY: O F F I C E S NATIONWIDE www.marcusmillichap.com

ACT ID: ZAB0260102