OFFERING MARCUS & MILLICHAP MEMORANDUM Activity#ZAA0380512 Representation Photo D O L L A R G E N E R A L 5841 ANN ARBOR ROAD, JACKSON, MI 49201 OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 INVESTMENT OVERVIEW OFFERING SUMMARY PRICE $1,200,000 NOI $81,552 C A P R A T E 6.80% Y E A R B U I L T 2015 L E A S E T Y P E NNN BUILDING SIZE 9,442 SF INVESTMENT HIGHLIGHTS INVESTMENT SUMMARY • Absolute NNN with Zero Landlord Responsibilities The Conway Group at Marcus & Millichap is pleased to present the sale of this 9,442 square foot Dollar General property located • Corporate Guarantee in Jackson, MI. Recently built in 2015, the subject property is • Strategically located off HWY 94 which exceeds 50,000+ strategically located off I-94 which sees over 50,000+ vehicles per vehicles per day day. • Five (5 Year) Options | 10% Rental Increases At Each Option Dollar General is the only dollar store with investment grade credit. • Recently Constructed in 2015 It is one of the largest dollar store chains in the US, offering deep • Investment Grade Credit Rated “BBB” by S&P discounts on a wide array of products. Dollar General’s standard store model is approximately 9.100 square feet • Dollar General Reported 29 Consecutive Quarter of Same Store Sale Growth OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 TENANT PROFILE TENANT PROFILE Tenant Dollar General Lease Guarantor Corporate Ownership Public Years in Business 79 Years Credit Rating B1 Number of Locations 14,321 Headquarters Goodlettsville, Tennessee Website www.dollargeneral.com ABOUT THE TENANT Dollar General commands the field of discount general merchandise. The fast-growing retailer boasts more than 14,300 discount stores in some 45 US states, mostly in the South, East, the Midwest, and the Southwest. It generates more than 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 12% from seasonal items. The stores also offer household products (cleaning supplies and health and beauty aids) and apparel. Dollar General targets low-, middle-, and fixed-income shoppers pricing items at $10 or less. The no-frills stores typically measure about 7,400 sq. ft. and are located in small towns that are off the radar of giant discounters. OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 LEASE SUMMARY LEASE SUMMARY P R O P E R T Y SUMMARY Property Subtype Net-Leased Right of First Refusal/Offer No Tenant Dollar General Property Dollar General Rent Increases 10% in Option Periods Address 5841 Ann Arbor Rd, Jackson, MI 49201 Guarantor Corporate Guarantee Price/SF $127.09 Lease Type NNN Rent/SF $8.63 Master Lease Commencement August 31, 2015 CAP Rate 6.80% Current Lease Expiration August 31, 2030 Year Built 2015 Term Remaining on Lease 10+ Years Gross Leasable Area 9,442 SF Renewal Options Five, 5-year Options Lot Size 1.37 Acres Landlord Responsibility None Type of Ownership Fee Simple Tenant Responsibility Repairs & Maintenance, Credit BBB Insurance and Property Taxes OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 RENT SCHEDULE YEAR ANNUAL RENT MONTHLY RENT CAP RATE Current $81,552 $6,796 6.80% 9/1/2030 – 8/31/2035* $89,707 $7,476 7.48% 9/1/2035 – 8/31/2040* $98,678 $8,223 8.22% 9/1/2040 – 8/31/2045* $108,546 $9,045 9.05% 9/1/2045 – 8/3/2050* $119,400 $9,950 9.95% 9/1/2050 – 8/31/2055* $131,340 $10,945 10.95% * DENOTES OPTION 5 OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 L O C A T I O N OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 LOCATION OVERVIEW JACKSON COUNTY, MICHIGAN Jackson County is a county located in the U.S. state of Michigan. The county seat is Jackson. The county was set off in 1829 and organized in 1832. It is named for U.S. President Andrew Jackson and considered to be one of Michigan's "Cabinet counties", named for members of Jackson's Cabinet. Jackson County comprises the Jackson, MI Metropolitan Statistical Area. The Jackson County Courthouse was designed by Claire Allen, a prominent southern Michigan architect. Jackson County is also home to the Michigan Whitetail Hall of Fame. According to the U.S. Census Bureau, the county has a total area of 723 square miles, of which 702 square miles is land and 22 square miles is water. OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 AREA DEMOGRAPHICS DOLLAR GENERAL CREATED ON AUGUST 22, 2019 1 Miles 3 Miles 5 Miles POPULATION 2023 Projection 1,963 9,703 42,523 2018 Estimate 1,892 9,395 41,973 2010 Census 1,899 9,418 43,477 2000 Census 1,848 10,800 43,525 INCOME Average $57,794 $56,652 $49,513 Median $50,419 $49,377 $38,570 Per Capita $22,895 $22,923 $18,654 HOUSEHOLDS 2023 Projection 790 3,996 14,431 2018 Estimate 749 3,796 13,960 2010 Census 753 3,816 14,331 2000 Census 688 3,482 13,954 HOUSING 2018 $149,193 $128,891 $95,176 EMPLOYMENT 2018 Daytime 1,300 9,358 45,082 Population 2018 Unemployment 8.80% 5.63% 6.32% 2018 Median Time 22 24 22 Traveled RACE & ETHNICITY White 92.51% 93.12% 76.36% Native American 0.04% 0.06% 0.02% African American 2.42% 2.31% 16.94% Asian/Pacific Islander 0.48% 0.46% 0.62% OFFERING MEMORANDUM | DOLLAR GENERAL | 5841 ANN ARBOR RD, JACKSON, MI 49201 Confidentiality and 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 prepared 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, nor 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. 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. 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.