SINGLE TENANT Investment Opportunity Relocation Store 2019 Store Remodel 202 FRONT STREET EAST COEBURN VIRGINIA ACTUAL SITE EXCLUSIVELY MARKETED BY Broker of Record: David Wirth, SRS Real Estate Partners-Northeast, LLC | VA License No. 0225198340 JIM SCHUCHERT JOE SCHUCHERT Vice President Vice President SRS National Net Lease Group SRS National Net Lease Group 610 Newport Center Drive, Suite 1500 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 Newport Beach, CA 92660 M: 310.971.3892 M: 310.971.3116 [email protected] | CA License No. 01969414 [email protected] | CA License No. 01973172 2 ACTUAL SITE NATIONAL NET LEASE GROUP CONTENTS 5 9 INVESTMENT SUMMARY PROPERTY OVERVIEW Offering Summary | Investment Highlights Aerials | Site Plan | Location Map 18 20 AREA OVERVIEW FINANCIALS Demographics Rent Roll | Brand Profile 3 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP PROPERTY PHOTO 4 ACTUAL SITE NATIONAL NET LEASE GROUP INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in a Family Dollar property located in Coeburn, Virginia. Built in 2014, the subject property was a relocation of an existing store down the street demonstrating Family Dollar’s long-term commitment to the Coeburn market. In January 2019, the subject property underwent extensive renovations at the sole cost and expense of Family Dollar; further demonstrating their commitment to this location. The lease has approximately 4.75 years remaining in the initial 10-year lease term with six (6) – five (5) year options at 10% rent increases. The NN+ lease has minimal landlord responsibilities limited to roof and parking lot – Family Dollar is solely responsible for the repair/replacement of the HVAC and is responsible for the first $2,500.00 in asphalt/concrete repairs to the parking lot in any lease year. The subject property is strategically located in the heart of Coeburn on Front Street East with traffic counts in excess of 4,500 vehicles per day. Coeburn is nested in the mountains of Southwest Virginia and is situated in the southeastern portion of Wise County, just off Route 58. Coeburn is also widely known today for its beautiful downtown, complete with antique lamps, brick sidewalks and pedestrian bridges. Coeburn is located 40 miles north of Kingsport, TN; 54 miles north of Bristol, VA; and 63 miles north of Johnson City, TN. The 7-mile trade area is supported by a population of 19,071 residents with an average household income of $51,321. 5 ACTUAL SITE NATIONAL NET LEASE GROUP OFFERING SUMMARY Offering PRICING $1,315,152 NET OPERATING INCOME $108,500 CAP RATE 8.25% GUARANTY Corporate TENANT Family Dollar Stores of Virginia, Inc. LEASE TYPE NN+ LANDLORD RESPONSIBILITIES Roof (20 Year Warranty) & Parking Lot* *Tenant is Responsible for the First $2,500 in Parking Lot Repairs in Any Lease Year Property Specifications RENTABLE AREA 8,400 SF LAND AREA 1.74 Acres PROPERTY ADDRESS 202 Front Street E Coeburn, VA 24230 YEAR BUILT 2014 PARCEL NUMBER 51195C0255D OWNERSHIP Fee Simple (Land & Building) Parcel Map 6 ACTUAL SITE NATIONAL NET LEASE GROUP INVESTMENT HIGHLIGHTS FAMILY DOLLAR CORPORATE GUARANTEED LEASE PROXIMITY TO MAJOR CITIES • Approximately 4.75 Years Remaining in the Initial 10 Year Lease Term • Kingsport, Tennessee | 40 Miles – 1 Hour Drive • 2014 Upgraded Construction (Brick Front Exterior) • Bristol, Virginia | 54 Miles – 1 Hour Drive • Six (6) – Five (5) Year Options with 10% Rent Increases • Johnson City, Tennessee | 63 Miles – 1 Hour 20 Minute Drive NN+ LEASE | MINIMAL LANDLORD RESPONSIBILITIES JANUARY 2019 STORE REMODEL • Landlord Responsibilities Limited to Roof and Parking Lot • In January 2019, Family Dollar Celebrated its Grand Re-Opening After • Roof is Warranted for a Period of 20 Years Extensive Renovations at the Sole Cost and Expense of Family Dollar • Tenant is Responsible for Maintaining, Repairing & Replacement of HVAC Units • Further Signifies Family Dollar’s Commitment to the Location • Tenant Responsible for Lawn and Landscape Maintenance (Snow & Trash Removal), Repairing Parking Area Lights; and Restriping the Parking Lot FAMILY DOLLAR “H2” REMODEL • Tenant is Responsible for Parking Lot Repairs Until the Aggregate Costs Equal • After Continued Development, Experimentation and Testing, Family Dollar $2,500.00 in any Lease Year Recently Rolled Out a New Model for Both New and Renovated Family Dollar Stores Known as “H2” RELOCATION STORE | LONG TERM COMMITMENT TO MARKET • At the End of 2018, Family Dollar had Approximately 200 Stores with This • In 2014, Family Dollar Relocated to its Current Location from an Older Format Location Down the Street • This New “H2” Model has Significantly Improved Merchandise Offerings, • Former Family Dollar was Located Less than 0.5 Miles Away at 603 Front Including Dollar Tree $1.00 Merchandise Sections and Establishing a Minimum Street Number of Freezer and Cooler Doors, Throughout the Store • The Stores with the “H2” Format Have Increased Traffic and Provided an Average Comparable Store Net Sales Lift in Excess of 10% • In 2019, Family Dollar Plans to Renovate at Least 1,000 Stores to this Format 7 NATIONAL NET LEASE GROUP INVESTMENT HIGHLIGHTS COEBURN, VIRGINIA TRADE AREA DEMOGRAPHICS • Nestled in the Mountains of Southwest Virginia • 3-Mile • Originally, the Town was Named Guest Station After Christopher Gist • 5,552 Residents • When the Town Was Incorporated in 1894, The Name Was Changed to • $44,988 Average Household Income Coeburn in Honor of W.W. Coe, Chief Engineer of the N&W Railroad, and Judge • 5-Mile W.E. Burns • 10,166 Residents • Camping is Available Nearby at Bark Camp Lake in the Jefferson National • $46,909 Average Household Income Forest with Other Activities Including Boating and Fishing • 7-Mile • 19,071 Residents TENANT • $51,321 Average Household Income • Dollar Tree, Inc. (NASDAQ: DLTR) Features Investment Grade Credit (BBB-) by Standard & Poor’s • 15,264 Stores in 48 States as of May 4, 2019 • Ranked #135 on the Fortune 500 List • High Growth Tenant – in 2019 Family Dollar/Dollar Tree Plans to Open 550 New Stores and Have Identified the Additional Market Opportunities to Support a Total of at Least 26,000 Stores Across North America 8 NATIONAL NET LEASE GROUP PROPERTY OVERVIEW Location Access Traffic Counts Improvements Located in Front Street E / Front Street E / There is approximately Wise County State Highway 158 & 72 State Highway 158 & 72 8,400 SF of existing 1 Access Point 4,500 Cars Per Day building area U.S. Highway 58 Alternate 7,800 Cars Per Day Parking Parcel Year Built Zoning There are approximately Parcel Number: 51195C0255D 2014 Commercial 22 parking spaces Acres: 1.74 on the owned parcel. Square Feet: 75,707 SF The parking ratio is approximately 2.61 stalls per 1,000 SF of leasable area. 9 NATIONAL NET LEASE GROUP 4,500 CARS PER DAY TATE AVE. NE. FRONT STREET EAST / STATE HIGHWAY 158 & 72 10 NATIONAL NET LEASE GROUP 7,800 CARS PER DAY U.S. HIGHWAY 58 ALTERNATE 4,500 CARS PER DAY FRONT STREET EAST / STATE HIGHWAY 158 & 72 TATE AVE. NE. 11 NATIONAL NET LEASE GROUP FRONT STREET EAST / STATE HIGHWAY 158 & 72 4,500 CARS PER DAY 12 NATIONAL NET LEASE GROUP 7,800 CARS PER DAY U.S. HIGHWAY 58 ALTERNATE 4,500 EASTSIDE CARS PER DAY FRONT STREET EAST / STATE HIGHWAY 158 & 72 HIGH SCHOOL TATE AVE. NE. 13 NATIONAL NET LEASE GROUP 2ND ST. N.E. TATE AVE. N.E. 4,500 CARS PER DAY FRONT STREET EAST / STATE HIGHWAY 158 & 72 14 NATIONAL NET LEASE GROUP 4,500 CARS PER DAY EASTSIDE HIGH SCHOOL 2 TATE AVE. N.E. 7 8 & 15 AY W GH FRONT STREET E/ STATE HI MARTY SHOPPING CENTER E NAT LTER Y 58 A U.S. HIGHWA 7,800 CARS PER DAY COEBURN AIRPORT 15 NATIONAL NET LEASE GROUP 4,500 CARS PER DAY FROSTY BOSSIE FRONT ST. E TATE AVE. NE PYLON SIGN BIG BOY'S PIZZA 16 NATIONAL NET LEASE GROUP LOCATION MAP CHARLESTON 2019 ESTIMATED POPULATION 215 min 202 miles 3 Mile 5,552 5 Mile 10,166 LEXINGTON 7 Mile 19,071 207 min 215 miles 2019 AVERAGE HOUSEHOLD INCOME 3 Mile $44,988 5 Mile $46,909 7 Mile $51,321 2019 ESTIMATED TOTAL EMPLOYEES 3 Mile 1,727 5 Mile 2,392 7 Mile 4,725 COEBURN KINGPORT 66 min 56 miles WINSTON-SALEM 182 min 196 miles KNOXVILLE 145 min 139 miles CHARLOTTE 226 min 234 miles 17 NATIONAL NET LEASE GROUP AREA OVERVIEW Coeburn, Virginia Coeburn is a town in Wise County, Virginia, along the Guest River. The Town of Coeburn had a population of 2,184 as of July 1, 2019. With many small peaceful wooded communities in the outskirts. Camping is available nearby at Bark Camp Lake in the Jefferson National Forest with other activities including boating and fishing. The Guest River Gorge Trail, built along the Guest River on what was formerly the Interstate Railroad, is also located in the Jefferson National Forest and is a popular place to walk or ride a bicycle. Recently Coeburn joined with neighboring town Saint Paul on the Mountain View Trail System for ATVs. The Town of Coeburn is nestled in the mountains of Southwest Virginia and is situated in the southeastern portion of Wise County, just off Route 58. Originally, the town was named Guest Station after Christopher Gist. When the town was incorporated in 1894, the name was changed to Coeburn in honor of W. W. Coe, Chief Engineer of the N&W Railroad, and Judge W. E. Burns. The home of Jim & Jesse and Ralph Stanley II, Coeburn is also widely known today for its beautiful downtown, complete with antique lamps, brick sidewalks, and pedestrian bridges.