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.