OFFERING MEMORANDUM 7365 Alameda Ave, El Paso, TX 79915 Family Dollar

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EXCLUSIVELY LISTED BY

JOSH BISHOP CHAD KURZ KYLE MATTHEWS VP & Director SVP & National Director Broker of Record

[email protected] [email protected] LIC # 678067 DIR (214) 692-2289 DIR (214) 692-2927 MOB (315) 730-6228 MOB (562) 480-2937 LIC # 01940394 LIC # 01911198 EXCLUSIVELY LISTED BY

CONTENTS

4 INVESTMENT OVERVIEW Investment Highlights

6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data

8 TENANT OVERVIEW Family Dollar Overview

10 PROPERTY OVERVIEW The Offering Site Description Parcel Map Tenant Map Regional Map

14 AREA OVERVIEW Demographics

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INVESTMENT OVERVIEW

4 | Family Dollar - El Paso, TX Investment Highlights

• Ideal 1031 exchange property

• Brand new 2016 construction

• 15-Year absolute NNN lease; Zero management responsibility

• Attractive 10% rent increase in year 11 of base term; strong hedge against inflation

• Average return of 6.31% over base term of the lease; assuming a purchase at list price

• Strong average traffic counts of over 15,000 vehicles daily on Dyer Street

• 3-mile demographics in excess of 84,850 residents

• 5-mile demographics in excess of 206,400 residents

• Estimated population growth over approximately 1.50% over the next 5 years

• Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation’s “largest small-box discount retailer” with more than 13,000 locations nationwide

• Standard & Poor’s credit rating of BB+

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FINANCIAL ANALYSIS

6 | Family Dollar - El Paso, TX Family Dollar Annualized Operating Data 7365 Alameda Ave, El Paso, TX 79915 Monthly Rent Annual Rent Rent/SF List Price...... $1,916,295 Current -9/30/2036 $9,581.25 $114,975.00 $13.82 10/1/2026 - 9/30/2031 $10,539.38 $126,472.50 $15.20 CAP Rate - Current ����������������������������������������������������������������������������������� 6.10% Option 1 $11,593.31 $139,119.75 $16.72 Gross Leasable Area ���������������������������������������������������������������������� ± 8,320 SF Option 2 $12,752.64 $153,031.73 $18.39 Lot Size ��������������������������������������������������������������������������������������������� ± 1.11 Acres Option 3 $14,027.91 $168,334.90 $20.23 Year Built ������������������������������������������������������������������������������������������������������� 2016 Option 4 $15,430.70 $185,168.39 $22.26 Option 5 $16,973.77 $203,685.23 $24.48 Option 6 $18,671.15 $224,053.75 $26.93

Tenant Summary

Tenant Trade Name Family Dollar Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 15 years Rent Commencement Date 3/10/2016 Lease Expiration Date 9/30/2031 Term Remaining on Lease ± 14.50 years Increases 10% increase in year 11 & in options Options Six (6), Five Years

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TENANT OVERVIEW

8 | Family Dollar - El Paso, TX Property Name Family Dollar Property Type Net Leased Discount Store Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR) Ownership Public Credit Rating (S&P) BB+ Revenue $10.49 B Net Income $285 M No. of Locations ± 8,000 No. of Employees ± 60,000 Headquartered Matthews, North Carolina Website www.familydollar.com Year Founded 1986

TENANT OVERVIEW

When it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget.

GEOGRAPHIC OUTREACH Family Dollar serves families in more than 8,000 neighborhoods in 46 states. is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers. STRATEGY Family Dollar offers a compelling mix of merchandise for the whole family. Ranging from an expanded assortment of refrigerated and frozen foods and health and beauty items to home décor and seasonal items, Family Dollar offers the lowest possible price, the name brand and quality private-brand merchandise customers need and use every day.

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PROPERTY OVERVIEW

10 | Family Dollar - El Paso, TX The Offering

Property Name Family Dollar 7365 Alameda Ave Property Address El Paso, TX 79915 Assessor’s Parcel Number H956-999-0010-0100 Parcel Map

Site Description Number of Stories One Year Built 2016 Gross Leasable Area (GLA) ± 8,320 SF Lot Size ± 1.11 Acres (48,351 SF) Type of Ownership Fee Simple Parking ± 30 Surface Spaces Parking Ratio 3.61 : 1,000 SF Landscaping Professional N Topography Generally Level

Construction Foundation Concrete Alameda Ave ± 15,000 ADT Framing Steel Exterior Block / Metal Parking Surface Asphalt Roof Slightly Pitched

MATTHEWS RETAIL ADVISORS | 11 Tenant Map

SUBJECT PROPERTY

12 | Family Dollar - El Paso, TX Regional Map

SUBJECT PROPERTY

MATTHEWS RETAIL ADVISORS | 13 AREA OVERVIEW

14 | Family Dollar - El Paso, TX El Paso, TX El Paso is situated in the far western corner of the US state of Texas. El Paso stands on the Rio Grande river across the Mexico-United States Border from Ciudad Juarez, the largest city in the Mexican state of Chihuahua. The two Demographics cities along with Las Cruces in the neighboring state of New Mexico, form a combined international metropolitan area sometimes referred to as the Paso Population 1 Mile 3 Miles 5 Miles del Norte region. The region of over 2.7 million people constitutes the largest 2022 Projection 11,003 85,790 210,230 bilingual and binational work force in the Western Hemisphere. 2017 Estimate 10,898 84,862 206,417 2010 Census 11,281 87,579 210,154 The city is the headquarters of one Fortune 500 and three publicly traded 2000 Census 12,317 92,112 214,626 companies, as well as home to the Medical Center of the Americas., the only Growth 2017 - 2022 0.96% 1.09% 1.85% medical research and care provider complex in West Texas and Southern New Mexico, and the University of Texas at El Paso, the city’s primary university. The Households 1 Miles 3 Miles 5 Miles city hosts the annual Sun Bowl college football post-season game, the second 2022 Projection 3,795 31,272 75,385 oldest bowl game in the country. 2017 Estimate 3,697 30,420 72,891 2010 Census 3,660 30,096 71,396 El Paso has a strong federal and military presence. William Beaumont Army Medical Center, , and call the city home. Fort 2000 Census 3,706 29,450 68,052 Bliss is one of the largest military complexes of the United States Army and Growth 2017 - 2022 2.65% 2.80% 3.42% the largest training area in the United States. Also headquartered in El Paso Growth 2010 - 2017 1.01% 1.07% 2.10% are the DEA domestic field division 7, El Paso Intelligence Center, Joint Task Income 1 Miles 3 Miles 5 Miles Force North, U.S. Border Patrol El Paso Sector, and U.S. Border Patrol Special 2016 Est. Average $36,834 $44,873 $48,041 Operations Group (SOG). Household Income

There is plenty to see and do in the City of El Paso. Experience walking tours of Downtown to get a taste of history that spans 400 years, shopping, outdoor concerts at the Chamizal National Memorial, museums of every kind, the Zoo, and nature hikes through four Texas State Parks. El Paso has been ranked the safest large city in the U.S. for four consecutive years and ranked in the top three since 1997.

MATTHEWS RETAIL ADVISORS | 15 Economy El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in 2011. Over the past 15 years the city has become a significant location for American-based call centers. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum, metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego. Tourism is another major industry in El Paso, bringing in $1.5 billion-a-year and over 2.3 million visitors annually due to the city’s sunny weather, natural beauty, rich cultural history and many outdoor attractions.

Education El Paso is home to the University of Texas at El Paso, the largest public university in the region. UTEP was recently ranked as the 7th best university in Washington Monthly’s 2013 National University Rankings, just behind Stanford and ahead of Harvard. Also, the university’s School of Engineering is the nation’s top producer of Hispanic engineers with M.S. and Ph.D. degrees. El Paso is also home to Texas Tech University Health Sciences Center at El Paso, Paul L. Foster School of Medicine, Texas Tech College of Architecture at El Paso, Brightwood College, Park University, Webster University and the University of Phoenix. Also due to its proximity, many El Paso students attend New Mexico State University where the school offers in-state tuition to El Paso County residents.

16 | Family Dollar - El Paso, TX Tourism and Cultural Amenities There are many museums to visit, including the El Paso Museum of History, and the El Paso Holocaust Museum and Study Center. El Paso is a host for art and culture as well, there are a number of theaters to visit. There is the Abraham Chavez Theatre that welcomes patrons with a three-story-high glass-windowed entry and unique sombrero-shaped architecture, making it a distinct feature on El Paso’s southwestern landscape. The is a historic building and stands as one of the city’s most well-known landmarks. It shows various Broadway productions, musical concerts, and individual performers. While the art and culture draws some, the rock climbers who descend on El Paso have only one thing in mind: scaling the massive boulders of State Park. Those who prefer the ground can wander through the park’s interpretive center and see ancient Indian pictographs.

MATTHEWS RETAIL ADVISORS | 17 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Family Dollar located at 7365 Alameda Ave, El Paso, TX 79915 (“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

JOSH BISHOP CHAD KURZ KYLE MATTHEWS VP & Director SVP & National Director Broker of Record

[email protected] [email protected] LIC # 678067 DIR (214) 692-2289 DIR (214) 692-2927 MOB (315) 730-6228 MOB (562) 480-2937 LIC # 01940394 LIC # 01911198

Family Dollar ™ 7365 Alameda Ave, El Paso, TX 79915 1122015 Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .  A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.  A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):  Put the interests of the client above all others, including the broker’s own interests;  Inform the client of any material information about the property or transaction received by the broker;  Answer the client’s questions and present any offer to or counteroffer from the client; and  Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyerof any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:  Must treat all parties to the transaction impartially and fairly;  May, with the parties' written consent, appoint a different license holder associated with the broker to each party (ownerd an buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.  Must not, unless specifically authorized in writing to do so by the party, disclose: ᴑ that the owner will accept a price less than the written asking price; ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ᴑ any confidential information or any other information that a party specifically instructs the broker in writing notto disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:  The broker’s duties and responsibilities to you, and your obligations under the representation agreement.  Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Kyle Matthews 678067 [email protected] 866-889-0550 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name

Kyle Matthews 678067 [email protected] 866-889-0550 Designated Broker of Firm License No. Email Phone

Kyle Matthews 678067 [email protected] 866-889-0550 Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0