DOLLAR GENERAL 316 West 103Rd Street | Chicago, Illinois 60628 AFFILIATED BUSINESS DISCLOSURE and CONFIDENTIALITY AGREEMENT

NET LEASE PROPERTY GROUP — MIDWEST OFFERING MEMORANDUM

DOLLAR GENERAL 316 West 103rd Street | Chicago, Illinois 60628 AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

AFFILIATED BUSINESS DISCLOSURE interest in the acquisition of the Property, (ii) you will not be complete nor accurate descriptions of the CBRE, Inc. operates within a global family of hold it in the strictest confidence, (iii) you will not full agreements referenced. Additional information companies with many subsidiaries and related entities disclose it or its contents to any third party without and an opportunity to inspect the Property may be (each an “Affiliate”) engaging in a broad range of the prior written authorization of the owner of the made available to qualified prospective purchasers. commercial real estate businesses including, but Property (“Owner”) or CBRE, Inc., and (iv) you will You are advised to independently verify the accuracy not limited to, brokerage services, property and not use any part of this Memorandum in any manner and completeness of all summaries and information facilities management, valuation, investment fund detrimental to the Owner or CBRE, Inc. contained herein, to consult with independent legal management and development. At times different and financial advisors,and carefully investigate If after reviewing this Memorandum, you have no Affiliates, including CBRE Global Investors, Inc. or the economics of this transaction and Property’s further interest in purchasing the Property, kindly Trammell Crow Company, may have or represent suitability for your needs. ANY RELIANCE ON THE return it to CBRE, Inc. clients who have competing interests in the same CONTENT OF THIS MEMORANDUM IS SOLELY AT transaction. For example, Affiliates or their clients may DISCLAIMER YOUR OWN RISK. have or express an interest in the property described This Memorandum contains select information The Owner expressly reserves the right, at its sole in this Memorandum (the “Property”), and may be the pertaining to the Property and the Owner, and does discretion, to reject any or all expressions of interest successful bidder for the Property. Your receipt of this not purport to be all-inclusive or contain all or part or offers to purchase the Property, and/or to terminate Memorandum constitutes your acknowledgment of of the information which prospective investors may discussions at any time with or without notice to you. that possibility and your agreement that neither CBRE, require to evaluate a purchase of the Property. The All offers, counteroffers, and negotiations shall be Inc. nor any Affiliate has an obligation to disclose to information contained in this Memorandum has been non-binding and neither CBRE, Inc. nor the Owner you such Affiliates’ interest or involvement in the sale obtained from sources believed to be reliable, but shall have any legal commitment or obligation except or purchase of the Property. In all instances, however, has not been verified for accuracy, completeness, as set forth in a fully executed, definitive purchase CBRE, Inc. and its Affiliates will act in the best interest or fitness for any particular purpose. All information and sale agreement delivered by the Owner. of their respective client(s), at arms’ length, not in is presented “as is” without representation or concert, or in a manner detrimental to any third warranty of any kind. Such information includes © 2017 CBRE, Inc. All Rights Reserved. party. CBRE, Inc. and its Affiliates will conduct their estimates based on forward-looking assumptions respective businesses in a manner consistent with the relating to the general economy, market conditions, ALL PARCEL LINES ON SITE PLAN AND AERIALS ARE law and all fiduciary duties owed to their respective competition and other factors which are subject to APPROXIMATE. client(s). uncertainty and may not represent the current or future performance of the Property. All references to CONFIDENTIALITY AGREEMENT acreages, square footages, and other measurements Your receipt of this Memorandum constitutes are approximations. This Memorandum describes your acknowledgment that (i) it is a confidential certain documents, including leases and other Memorandum solely for your limited use and benefit materials, in summary form. These summaries may in determining whether you desire to express further

2 DOLLAR GENERAL – CHICAGO, IL TABLE OF CONTENTS

4 EXECUTIVE SUMMARY The Offering Financial Overview Investment Highlights Aerial 9 PROPERTY DESCRIPTION Tenant Overview Property Overview Site Plan 12 MARKET OVERVIEW Chicago MSA Overview Demographic Maps

PRIMARY CONTACTS DEBT & STRUCTURED FINANCE

Michael Kaider Jennifer Sampson Geoffrey Harris +1 630 573 7015 +1 630 573 7075 +1 602 735 5615 [email protected] [email protected] [email protected]

CBRE 700 Commerce Drive CBRE Suite 450 2575 East Camelback Road Oak Brook, IL 60523 Suite 500 Phoenix, AZ 85016

DOLLAR GENERAL – CHICAGO, IL 3 THE OFFERING

CBRE’s Net Lease Property Group is pleased to exclusively present the opportunity to acquire 100% fee simple interest in a single tenant 12,128 square foot Dollar General located less than 14 miles south of Chicago’s Central Business District. The lease has over 5 years of term remaining and includes a corporate guaranty, strong rental increases, and four 5-year options to extend.

The Property is well located on 103rd Street (10,650 VPD), a heavily trafficked thoroughfare serving the densely populated south Chicago neighborhood of Roseland. There are over 100,500 residents living within two miles from the Property. Customers are drawn to this location due to its proximity to public transportation and abundant on-site parking. The site includes 57 parking spaces (4.7 per 1,000 SF).

Dollar General is a discount retailer of quality general merchandise at everyday low prices. With over $23.35 billion in sales for fiscal year ending February 2017, Dollar General is the largest discount retailer in the United States. Dollar General’s products consist of branded and private label merchandise typically priced at $10 or less. Stores offer an assortment of consumable basic merchandise including food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, seasonal items, and paper products among others. As of November 2017, the company operated 14,321 stores in 44 states. Dollar General was founded 78 years ago and is headquartered in Goodlettsville, Tennessee.

4 DOLLAR GENERAL – CHICAGO, IL FINANCIAL OVERVIEW

Offering Price $1,465,600 In addition to Landlord’s maintenance Cap Rate 7.3% and repair responsibilities, Landlord shall maintain, repair and replace all aspects Current Annual Rent $106,590 of the Parking Areas. Tenant will reimburse Parking Lease Structure Net Landlord for the actual, reasonable costs Lot Size ±0.86 Acres / 37,500 Square Feet of the maintenance and repair (but not replacement) of certain aspects of the Building Size 12,128 Square Feet Parking Areas. Tenant DG Retail, LLC dba Dollar General Tenant shall be solely responsible for all Guarantor Corporate utilities required, used or consumed in the Lease Commencement August 1, 2013 Premises, including, but not limited to gas, Utilities Lease Expiration July 31, 2023 water, telephone, electricity, sewer service, garbage collection services, or any similar Lease Term Remaining 5 Years, 6 Months service. 10% in Year 6 of base term and in each Rental Increases Tenant shall, at its sole cost, carry and option period. Insurance maintain comprehensive general liability Renewal Options Four, 5-Year Options insurance. Landlord shall, at Landlord’s sole cost and expense, maintain in clean condition and RENT SCHEDULE good repair all items for which Tenant is not Monthly Annual responsible including, but not limited to, the Lease Dates exterior walls, foundations, roof, gutters, Rent Rent Landlord downspouts, exterior and all structural Year 1 to 5 $8,882.50 $106,590.00 Responsibilities portions of the Premises, and all plumbing, Year 6 to 10 $9,770.75 $117,249.00 electrical, gas, sprinkler and sewage systems Option 1: Year 11 to 15 $10,747.83 $128,973.90 located below or within the floor slab of the Premises, inside the walls, above the ceiling Option 2: Year 16 to 20 $11,822.61 $141,871.29 or not exclusively serving the Premises. Option 3: Year 21 to 25 $13,004.87 $156,058.42 Tenant shall pay, on an annual basis in Option 4: Year 26 to 30 $14,305.36 $171,664.26 Taxes arrears, any Real Estate Taxes relating to the Premises.

EXECUTIVE SUMMARY 5 INVESTMENT HIGHLIGHTS

EXCELLENT OPPORTUNITY: The opportunity to acquire fee interest in a net leased Dollar General located less than 14 miles south of Chicago’s Central Business District. The lease has 5 years and 6 months of term remaining and includes strong 10% rental increases and four 5-year extension options.

CORPORATE GUARANTY: Dollar General is a discount retailer of quality general merchandise at everyday low prices. With sales in excess of $23.35 billion, Dollar General is the largest discount retailer in the United States. As of November 2017, the company operated 14,321 stores in 44 states. Dollar General has a Standard & Poor’s rating of BBB/Stable.

TRANSIT ORIENTED WITH RARE ON-SITE PARKING: This location offers abundant parking (57 spaces) on-site, allowing customers to easily visit the store. Dollar General is also well located near public transportation with numerous CTA bus routes within short walking distance. The CTA 95/Dan Ryan red line station is located just over one mile northwest of the site and provides excellent access to the city.

CONVENIENT LOCATION: Dollar General is located at the corner of Princeton Avenue and 103rd Street (10,650 VPD). The site has over 400 feet of uninterrupted frontage and this intersection and benefits from four access points. Additionally, the site is approximately two miles from the Interstate 57/94 interchange (276,900 VPD).

DENSE, URBAN INFILL REAL ESTATE: Located in Chicago’s Roseland neighborhood, Dollar General serves a densely populated trade area that benefits from incredible traffic on both weekdays and weekends. Within one mile of the Property is a population over 29,656 residents and approximately 196,852 residents live within the three-mile extended trade area.

ROBUST CHICAGO MSA: Chicago is one of the most dynamic markets in the nation with a population near 9.68 million. Chicago boasts an attractive retail market, with the third largest economy in the nation, and over $121.9 billion in annual retail sales (2016 metro Chicago sales; Melaniphy).

6 DOLLAR GENERAL – CHICAGO, IL AERIAL VIEW LOOKING NORTH

EXECUTIVE SUMMARY 7 REGIONAL MAP

8 DOLLAR GENERAL – CHICAGO, IL TENANT PROFILE

Dollar General is a discount retailer of quality general merchandise at everyday low prices and is the largest discount store retailer in the United States in terms of sales. Dollar General’s products consist of branded and private label merchandise typically priced at $10 or less. The company offers an assortment of consumable basic merchandise including food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares, seasonal items, and paper products among others. In addition to private brands, products, trusted brands such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Nestle, Kellogg’s, General Mills, and PepsiCo. As of November 2017, the company operated 14,321 stores in 44 states. Dollar General (NYSE: DG) had fiscal year ending February 2017 sales are in excess of $23.35 billion and is ranked #128 on Forbes Fortune 500 List. The company was founded 78 years ago and is headquartered in Goodlettsville, Tennessee.

44 14,321 Total Revenue Stock Symbol States Locations $23.35 Billion NYSE: DG

Employees Founded in Headquarters Website 130,000+ 1939 Goodlettsville, TN www.dollargeneral.com

PROPERTY DESCRIPTION 9 PROPERTY DESCRIPTION

Location: 316 West 103rd Street, Chicago (Cook County), Illinois 60628 GLA: 12,128 Square Feet Parcel Size: ± 0.86 Acres / ± 36,500 Square Feet Site Shape: Rectangular Visibility/Frontage: South: 299 feet along the north side of 103rd Street / East: 123 feet along the west side of Princeton Avenue Parcel Number 25-09-424-061-0000 Zoning: B3-1 Community Shopping District Access: Access to the site can be made from two points of ingress/egress on 103rd Street and two on Princeton Avenue. According to the flood hazard maps published by the FEMA, the site is within Zone X as indicated on Community Map Flood Zone: Panel No. 17031C0635J dated August 19, 2008. Zone X, an area that is determined to be outside the 100-and 500-yearflood plains. Surrounding Land Uses: Primarily residential with some retail, educational, and general commercial buildings. Topography: The entire site is generally level and at grade with the surrounding improvements.

10 DOLLAR GENERAL – CHICAGO, IL PROPERTY DESCRIPTION

Framing: Steel and masonry frame with brick walls and large windows along the southern potion of the building Roof: Arched roof with built-up composition cover Parking: 57 parking spaces. Asphalt parking lot to the east of the building with abundant parking spaces HVAC: Rooftop units Utilities: All standard utilities such as water, sewer, gas, electric, and telephone are available to the site. Suspended acoustical ceiling tile, laminate tile and exposed concrete flooring, fluorescent lighting, exposed brick walls Interior Finishes: with advertising materials and a drywall partition for the rear storage and office area.

PROPERTY DESCRIPTION 11 CHICAGO MSA OVERVIEW

Chicago is one of the most attractive and dynamic markets in the one business sector or industry, Chicago’s economy is like a well- nation. Chicago boasts an attractive retail market, with the third balanced portfolio and is better equipped than most cities to weather largest economy in the nation and over $121.9 billion in annual retail a slowdown in any particular industry. The Chicago MSA has a highly sales (2016 metro Chicago sales; Melaniphy). The market’s vibrant diversified economic base and is home to more than 400 major business climate, central geographic location, diversified economy corporate headquarters, including 33 Fortune 500 headquarters. and available human resources have helped Chicago achieve a prominent position as a world-class city in finance, international The Windy City, as it has been nicknamed, welcomes in nearly 40 trade, manufacturing, transportation, culture and the arts. million international and domestic visitors each year who come to see attractions including Chicago’s numerous parks, art galleries, One of Chicago’s biggest commercial advantages is its diversified architectural wonders, professional sports teams, universities, and economy and deep labor pool. With no single emphasis on any more.

12 DOLLAR GENERAL – CHICAGO, IL CHICAGO MSA OVERVIEW

TRANSPORTATION Chicago is one of the primary transportation hubs in the United States. Chi- WHY CHICAGO? cago is home to O’Hare International Airport, the 3rd busiest airport in the • Chicago has a strong, globally diverse economy larger than nation. According to the Chicago Department of Aviation, in 2016 the airport that of many countries. serviced nearly 78 million passengers to and from 208 destinations around the • Chicago’s industry mix most closely matches that of the nation, world via more than 48 passenger carriers. Chicago is also home to Midway with no single industry employing more than 20% of the work- International Airport, which serviced more than 22 million passengers via five force. passenger carriers to 75 destinations in the US, Mexico, Jamaica, the Domin- ican Republic and Canada. • Chicago is one of the most cost-effective cities in the world for doing business, ahead of New York and Los Angeles, according Several major interconnected expressways and interstate highways pass though to KPMG. the Chicago area. Interstates 80, 88 and 290 are the main east/west routes. Interstates 55 and 57 provide access to the south and southwestern suburban • Chicago’s affordable cost of living and world-class cultural and recreational opportunities make it an excellent value for the areas. Communities to the north and northwest are accessed via Interstates city’s vibrant and diverse workforce. 90 and 94. North/south travel between the western suburbs is facilitated by Interstates 294 and 355. • Chicago is a central transportation hub with direct flights between more than 200 cities worldwide, and direct connections to six major U.S. Interstates.

• Chicago is hub of international business activity, with more than 1,800 foreign-based companies and more than $100 billion in foreign direct investment.

DEMOGRAPHICS The Chicago metropolitan statistical area is home to over 9.68 million residents, making it the third most populous MSA in the nation. The population is projected to grow 0.32% over the next five years to 9.83 million. Residents earn an average household income of $92,004; more than 8% higher than the state average of $84,983 and nearly 14% higher than the national average of $80,675.

MARKET OVERVIEW 13 CHICAGO MSA OVERVIEW

TOP EMPLOYERS

COMPANY TOTAL EMPLOYEES

Advocate Health Care System...... 18,308 University of Chicago...... 16,197 Northwestern Memorial Healthcare...... 15,317 JPMorgan Chase & Co...... 14,158 United Continental Holdings Inc...... 14,000 Walgreen Co...... 13,006 Health Care Service Corp...... 13,006 Presence Health...... 10,500 Abbott Laboratories...... 10,000 JUNE 2017 ESTIMATED EMPLOYED POPULATION BY Northwestern University...... 9,708 OCCUPATION Jewel-Osco Stores...... 9,660

2% Chicago Transit Authority...... 9,510 3% Professional & Business Services 4% 18% Education & Health Services University of Illinois...... 9,212 5% Retail & Wholesale Trade American Airlines...... 8,900 7% Government Rush University Medical Center...... 8,273 Leisure & Hospitality AT&T...... 8,000

8% 16% Manufacturing Allstate Insurance Co...... 7, 8 0 0 Finance, Insurance & Real Estate Wal-Mart Stores Inc...... 7,70 0 Transportation & Utilities Emloyco USA Inc...... 7, 4 0 9 10% Other Services Archdiocese of Chicago...... 7, 376

15% Construction & Mining 12% Source: Moody’s Analytics, Precis U.S. Metro, Chicago MSA, June 2017 Information

14 DOLLAR GENERAL – CHICAGO, IL CHICAGO MSA OVERVIEW

FORTUNE 500 COMPANIES IN THE CHICAGO MSA

RANK COMPANY SECTOR REVENUES ($M) 17 Walgreens Boots Alliance Food and Drug Stores $117,351 24 Boeing Aerospace and Defense $94,571 45 Archer Daniels Midland Food Production $62,346 83 United Continental Holdings Airlines $36,556 84 Allstate Insurance: Property and Casualty (Stock) $36,534 89 Exelon Utilities: Gas & Electric $31,360 109 Mondelez International Food Consumer Products $25,923 111 AbbVie Pharmaceuticals $25,638 112 McDonald’s Food Services $24,622 124 US Foods Holding Wholesalers: Food and Grocery $22,919 127 Sears Holdings General Merchandisers $22,138 135 Abbott Laboratories Medical Products and Equipment $20,853 197 Conagra Brands Food Consumer Products $14,134 199 CDW Information Technology $13,982 202 Illinois Tool Works Industrial Machinery $13,599 277 Discover Financial Services Commercial Banks $10,497 CHICAGO ACCOLADES 281 Baxter International Medical Products and Equipment $10,163 282 W.W. Grainger Wholesalers: Diversified $10,137 Top 10 Most Competitive City for Business in the World 304 LKQ Wholesalers: Diversified $9,082 The Economist Intelligence Unit 322 Tenneco Motor Vehicles & Parts $8,599 337 Navistar International Motor Vehicles & Parts $8,111 Top 10 Best City for Building Wealth 338 Univar Wholesalers $8,074 Bankrate.com, October 2015 359 Anixter International Wholesalers: Diversified $7,625 388 R.R. Donnelley & Sons Publishing, Printing $6,896 #1 Top Metro in the U.S. for Corporate Investment 391 Jones Lang LaSalle Real Estate $6,804 Site Selection, March 2016 392 Dover Industrial Machinery $6,794 427 TreeHouse Foods Food Consumer Products $6,175 #1 North American city for foreign direct investment 433 Motorola Solutions Network & Other Communications Equipment $6,038 IBM, Global Location Trends 439 Old Republic International Insurance: Property and Casualty (Stock) $5,901 450 Packaging Corp. of America Packaging, Containers $5,779 #2 Top Metro in the United States for the Number of Fast 456 Ingredion Food Production $5,704 Growing Small Businesses 462 Arthur J. Gallagher Diversified Financials $5,595 Inc. 5000 List, 2015 487 Essendant Wholesalers: Electronics and Office Equipment $5,369

MARKET OVERVIEW 15 POPULATION CONCENTRATION MAP

2017 POPULATION

1 Mile 2 Mile 3 Mile 29,656 100,578 196,852

DAYTIME POPULATION

2 MILE 18,546

POPULATION PER SQUARE MILE - 2017

Over 7,500 5,000 to 7,500 2,500 to 1,000 1,000 to 2,500 Less than 1,000

16 DOLLAR GENERAL – CHICAGO, IL HOUSEHOLD INCOME MAP

2017 AVERAGE HOUSEHOLD INCOME

1 Mile 2 Mile 3 Mile $51,593 $55,304 $60,903

HOUSEHOLDS EARNING OVER $50,000 ANNUALLY

1 Mile 2 Mile 3 Mile 4,120 15,021 31,866

AVERAGE HOUSEHOLD INCOME - 2017

Over $80,000 $60,000 to $80,000 $50,000 to $60,000 $40,000 to $50,000 Less than $40,000

MARKET OVERVIEW 17 PRIMARY CONTACTS FINANCING CONTACT

Michael Kaider Jennifer Sampson Geoffrey Harris +1 630 573 7015 +1 630 573 7075 +1 602 735 5615 [email protected] [email protected] [email protected]

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.