Dollar General

NNN Dollar General

the strongest dollar store chain High growth metro area REPRESENTATIVE PHOTO

For more info on this opportunity please contact: very low unemployment RICK SANNER BOB SANNER [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 rent increases CA BRE# 01792433 CA BRE# 00869657 JOHN ANDREINI CHRIS KOSTANECKI just opened [email protected] | (415) 274-2715 [email protected] | (415) 274-2701 118 Riley Ave, Ogden, KS 66517 CA BRE# 01440360 CA BRE# 01002010

In conjuction with KS Licensed Broker: Phil Bundy [email protected] | (316) 686-9292 Capital Pacific collaborates.Click here to meet the rest of our San Francisco team. NNN PROPERTY IN OGDEN, KANSAS Investment Highlights New 15-year primary term lease with four (4) five-year options with a 10% rental increase at the beginning of each option period. There is also a 3% rent increase at year 11. Ogden is a suburb of Manhattan, Kansas (home of Kansas State University), and is a part of the Manhattan MSA. The subject Representative Photos property is also quite close to one of the US Army’s largest bases, Ft. Riley.

PRICE...... $1,339,308 RENTABLE SF. . . . . 9,100 SF CAP RATE...... 6.65% YEAR BUILT ...... 2014 LEASE TYPE...... NNN

INVESTMENT GRADE CREDIT Dollar General’s credit is BBB- and the company’s credit rating has been raised four times since 2009. It has a better credit rating than both of its large competitors (See more information later in this offering)

STRONG TENANT During fiscal 2014, Dollar General opened about 700 new stores

Dollar General has more stores (11,500+) than any other retailer in the US and is currently the largest dollar store chain in the country

In the 5+ years since going public in 2009, the Dollar General stock price has more than tripled (from $23 to $71)

LEASE HIGHLIGHTS Fifteen year NNN lease with options

Parent company guaranteed (NYSE: DG) REPRESENTATIVE PHOTO Guarantor is “investment grade” (see above) DOLLAR GENERAL | 2 DOLLAR GENERAL | 2 REPRESENTATIVE PHOTO Income & Expense

PRICE $1,339,308 Capitalization Rate: 6.65% Total Rentable Area (SF): 9,100 Lot Size (Acres): 1.27 Year Built: 2014 STABILIZED INCOME Per Square Foot Scheduled Rent $9.79 $89,064 LESS Per Square Foot Taxes NNN $0.00 REPRESENTATIVE PHOTO Insurance NNN $0.00 Total Operating Expenses $0.00 NET OPERATING INCOME $89,064

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 DOLLAR GENERAL | 3 FT . RILEY OGDEN GATE MANHATTAN Site Plan

114 Riley Avenue S. Elm Street

14th Street

DOLLAR GENERAL | 4 Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

Current Monthly Monthly Yearly Tenant Name Sq . Ft . Term Rent Rent Rent/FT Rent/FT Dollar General 9,100 11/30/2014 11/29/2024 $89,064 $7,422 $9.79 $0.82

11/30/2024 11/29/2029 $91,740 $7,645 $10.08 $0.84

Option 1 11/30/2029 11/29/2034 $100,920 $8,410 $11.09 $0.92

Option 2 11/30/2034 11/29/2039 $111,012 $9,251 $12.20 $1.02

Option 3 11/30/2039 11/29/2044 $122,112 $10,176 $13.42 $1.12

Option 4 11/30/2044 11/29/2049 $134,316 $11,193 $14.76 $1.23

Current Totals: 9,100 $89,064 $7,422 $9 .79 $0 .82

REPRESENTATIVE PHOTO

DOLLAR GENERAL | 5 Aerial Close 114 FT. RILEY Riley Avenue Ogden is a suburb of Manhattan, Kansas (home of Kansas State University), and is a part of the Manhattan MSA oftheManhattan State University), andisapart (homeofKansas Kansas ofManhattan, isasuburb Ogden STRONG LOCATION FLOWERS A G

COMMUNITY CENTER OGDEN

LIBERTY STORE FOOD SUNNY’S FAMILY SALON

SPORTS HOUSE BAR & ROCK S Walnut Street GRILL KANSAS CITY OF OGDEN N Walnut Street

Elementary Ogden SALES AUTO LEE’S 18

114 East Riley Avenue Riley East

Skyway Drive DOLLARGENERAL

Cimarron Trail MANHATTAN | 6 Aerial Far THE SUBJECT PROPERTY IS ONLY 7 MILES FROM FORT RILEY

FORT RILEY

Trooper Drive CUSTER HILL GOLF COURSE

Ware Elementary

Jefferson Elementary

Morris Hill Elementary 1st Division Road Fort Riley MANHATTAN Middle School

Williston Point Road FORT RILEY MANHATTAN REGIONAL AIRPORT Fort Riley Elementary 7 MILES 2.9 MILES Wildcat Creek Road

H Huebner Avenue CAMP WHITSIDE Riley Avenue

CAMP MANHATTAN FUNSTON REGIONAL AIRPORT

Henry Drive 18 MARSHALL ARMY FIELD 18

70 18

70 DOLLAR GENERAL | 7 REPRESENTATIVE PHOTO Dollar General

REPRESENTATIVE PHOTO

ABOUT DOLLAR GENERAL Dollar General (NYSE: DG) is a chain of more than 11,500 discount stores in 40 states, primarily in the South, East, Midwest, and Southwest. Offering basic household COMPANY TYPE: items, such as cleaning supplies, health and beauty aids, apparel, and food. It targets PUBLIC (NYSE: DG) DOLLAR GENERAL IS THE low-, middle-, and fixed-income shoppers. Although it has the word “dollar” in its name, Dollar General is not solely a dollar store. Dollar General offers goods sold at COUNTRY’S LARGEST 2013 SALES set price points ranging from under a dollar to $60. Some of its higher end items $16.02 BILLION SMALL-BOX DISCOUNT include over-the-counter medicines, seasonal products, pet products, prepaid cell RETAILER phones and accessories, and automotive supplies. S&P 500 CREDIT RATING BBB- (See next page) The company has grown into the country’s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of 2013 FORTUNE 500 Dollar General’s main advantages is that it offers prices as low or lower than Walmart #175 but in more convenient locations. With 11,500+ locations, Dollar General has more NUMBER OF STORES stores than any other retailer and is easily the largest dollar store chain. 11,500+ The company ranks 175th within the Fortune 500 list. Fiscal 2013 revenues exceeded $17.5 billion (up 9.23% from 2012) with a net income of $1.02 billion (up 7.60% from 2012), and net worth of $5.4 billion (up 8.43% from 2012.)

DOLLAR GENERAL | 8 REPRESENTATIVE PHOTO Dollar General Credit Rating

REPRESENTATIVE PHOTO

ABOUT THE STRONG DOLLAR GENERAL CREDIT RATING As of early March, 2015, Family Dollar formally agreed to be acquired by Dollar Tree, thus, Family Dollar THE THREE LARGEST DOLLAR will become a wholly owned subsidiary of Dollar Tree. STORE CHAINS, RANKED BY Dollar Tree will take on billions of debt to acquire Family Dollar, and, as they combine, that will negatively 2014 REVENUE, ARE: impact the credit rating of both of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, will no longer issue separate financial statements. 1 DOLLAR GENERAL The best known rating agency, Standard & Poor’s, announced in late January on its website that both 2 FAMILY DOLLAR these Family Dollar and Dollar Tree will be downgraded.

3 DOLLAR TREE With the effective date of this acquisition (probably April),both of these competitor entities will no longer be investment grade-rated . Dollar General will be the only dollar store chain with an investment grade rating . As a matter of information, after the acquisition, the combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt - hence the lower credit rating.

DOLLAR GENERAL | 9 Regional Map Ogden KS Location

DOLLAR GENERAL

REPRESENTATIVE PHOTO Ogden

DOLLAR GENERAL | 10 REPRESENTATIVE PHOTO Location and Demos

OGDEN, KS Ogden, Kansas, which has a population of approximately 2,000, is nestled between the city of Manhattan and the Fort Riley army base. Ogden is a POPULATION 3-Mile 5-Mile 10-Mile 15-Mile growing community and offers housing for people who commute to either location. 2010 2,379 4,677 83,835 106,424 2014 2,517 5,087 90,779 115,498 Fort Riley is a very large, 150-year-old Army base and Manhattan is home 2019 2,692 5,564 98,533 126,052 to Kansas State University. Residents of Ogden have a short commute, an 2015 HOUSEHOLD INCOMES easy 15 minutes or less, to either destination. Moreover, a traveler going 3-Mile 5-Mile 10-Mile 15-Mile between these two places often passes directly in front of the subject property . Average $58,872 $56,375 $54,019 $57,574 Median $51,156 $46,266 $41,533 $45,285 Within the last two years, the highway between Ogden and Manhattan, Kansas State Route 18 (“K-18”), has been completely rebuilt as a four-lane freeway. From Manhattan, a Ft. Riley-bound traveler can take the Ogden exit to enter the Fort at the “Ogden Gate.” This route goes right in front of the subject property on Riley Avenue.

K-18 is well traveled because it connects to I-70, a few miles SW of Ogden. It is the fastest route from Manhattan to west-bound I-70. DOLLAR GENERAL | 11 Manhattan, Kansas LOW UNEMPLOYMENT

In addition, the US Government reported very low POPULATION GROWTH unemployment in Manhattan in December, 2014, shown in the table below: By 2008, the Manhattan area had grown such that it was designated by the US Census Bureau as an official Metropolitan MANHATTAN MSA 3.7% Statistical Area (MSA). Ogden is part of that Manhattan MSA. KANSAS OVERALL 4.2% As an indication of the growth, below is a table showing the US OVERALL 5.6% percentage of growth in population for the city of Manhattan each decade since 1940:

MANHATTAN AIRPORT YEARS % GROWTH (ROUNDED) 1940-1950 63% The Manhattan Airport has a major new terminal 1950-1960 21% building under construction, which will be completed 1960-1970 20% by 2016. Currently there is non-stop service to Chicago 1970-1980 18% and Dallas. Projections indicate that this new terminal will attract new airlines, bigger planes, and service to 1980-1990 15% more cities, such as Atlanta, Denver, and Phoenix. 1990-2000 19% 2000-2010 17% 2010-2013 (3 years) 7% NEW GOVERNMENT FACILITY UNDER CONSTRUCTION This percentage growth has clearly surpassed the growth of both the US and Kansas. Kansas State University has about Under construction now at Kansas State is a large US 24,000 students and all of these students might not be government facility, NBAF, more fully described in the enumerated as part of the Manhattan population. For instance, link below. This highly sophisticated technological a student whose hometown is Wichita but who is studying and facility will require five years and 900 people to complete. living at Kansas State might be counted as a citizen of Wichita This is because NBAF will be working daily with lethal and not of Manhattan. Therefore, the Manhattan population is diseases agents under great security. somewhat understated. Additional NBAF Information

DOLLAR GENERAL | 12 Fort Riley, Kansas

Fort Riley was created just after the Civil War as a frontier fort, making it about 150 years old. The renowned Indian- fighter, George Custer was stationed there for a time. The Fort is 149 square miles, with more than 1,000 military buildings, totaling 12.55 million square feet. The Fort is the home of the Army’s First Infantry Division. The insignia/patch of this unit is a red “1”, therefore, it is known in American military folklore as the “Big Red One”. In the 1980’s, a movie was released titled Big Red One, it was a fictionalized version of that unit’s European battles in WWII. Almost all the 18,000+ troops at Fort Riley are part of, or are a support unit of the Big Red One, and the unofficial Fort motto is “We are One”.

POPULATION RELATED TO FORT RILEY The direct payroll is over $1.2 billion per annum. The overall direct impact (including payments to suppliers, contractors, etc.) is $1.775 billion. Military Troops 18,200 The total economic impact, direct and indirect, of the Fort is estimated to be more than Dependents of those Troops 24,000 $3.9 billion per annum. Civilian Employees & Contractors 7,100 Retirees in the Area 3,700 The majority of the military troops and civilian employees live off-base and a number TOTAL 53,000 of them are residents of Ogden.

DOLLAR GENERAL | 13

REPRESENTATIVE PHOTO A unique HUMAN THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS RESULTS-DRIVEN client experience [ www.CapitalPacific.com]

RICK SANNER BOB SANNER [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 In conjuction with KS Licensed Broker: Phil Bundy CA BRE# 01792433 CA BRE# 00869657 [email protected] | (316) 686-9292 JOHN ANDREINI CHRIS KOSTANECKI [email protected] | (415) 274-2715 [email protected] | (415) 274-2701 CA BRE# 01440360 CA BRE# 01002010