OFFERING MEMORANDUM 3578 HENDERSONVILLE HWY | PISGAH FOREST, NC REPRESENTATIVE PHOTO ™ 3578 HENDERSONVILLE HWY | PISGAH FOREST, NC 3 INVESTMENT SUMMARY EXCLUSIVELY LISTED BY: WESLEY CONNOLLY Associate VIce President 4 D: +1 (949) 432-4512 FINANCIAL SUMMARY M: +1 (707) 477-7185 [email protected] License No. 01962332 (CA) 6 KYLE MATTHEWS Broker of Record TENANT PROFILE License No. C27092 (NC) 7 AREA OVERVIEW 2 Dollar General INVESTMENT SUMMARY 3578 Hendersonville Hwy ADDRESS Pisgah Forest, NC 28769 $1,360,780 6.15% $83,688 ±9,100 SF 2017 LIST PRICE CAP RATE ANNUAL RENT GLA YEAR BUILT PRICE $1,360,780 CAP RATE 6.15% NOI $83,688 INVESTMENT HIGHLIGHTS GLA ±9,100 SF Corporate Guaranteed Essential Retailer LOT SIZE ±6.72 AC • Newer construction building with long term absolute NNN Lease; No YEAR BUILT 2017 Landlord Responsibilities • Dollar General has investment grade rated corporate guarantee • Dollar General has been identified as an essential retailer and has maintained business operations throughout the Covid-19 Pandemic DEMOGRAPHICS Prototypical Dollar General Market 3-MILE 5-MILE 10-MILE • Lack of Major competition in immediate vicinity POPULATION 5,225 17,083 61,536 • 33 miles from Asheville, NC HOUSEHOLDS 2,453 7,440 27,369 • 10 Mile Population in excess of 61,615 HH INCOME $68,333 $73,778 $79,155 • Minutes to John Rock, Looking Glass Rock, and Coontree Mountain Dollar General 3 FINANCIAL SUMMARY ANNUALIZED OPERATING DATA LEASE COMMENCE MONTHLY RENT ANNUAL RENT CAP RATE Lease Type NNN Type of Ownership Fee Simple Current - 04/30/32 $6,974.00 $83,688.00 6.15% Lease Guarantor Corporate Roof and Structure Responsible Tenant Responsibility Option 1 $7,671.40 $92,056.80 6.77% Original Lease Term (Years) 15 Years Option 2 $8,438.54 $101,262.48 7.44% Lease Commencement Date 5/1/2017 Rent Commencement Date 5/1/2017 Option 3 $9,282.39 $111,388.73 8.19% Lease Expiration Date 4/30/2032 Lease Term Remaining (Years) ±11.90 Years Option 4 $10,210.63 $122,527.60 9.00% Increases 10% at every Option Option 5 $11,231.70 $134,780.36 9.90% Options 5, 5 Year Options DEBT QUOTE Loan quote provided by Barrington Capital LTV:65% based on market conditions at this time. Actual rates and terms will vary based on RATE:3.9% market conditions at closing. Please contact: AMORTIZATION: 300 Brian Krebs (818) 606-9476 TERM: 120 [email protected] 4 Dollar General TENANT MAP ASHVILLE HWY ± 24,000 VPD Dollar General 5 TENANT PROFILE Dollar General is the fastest-growing retailer which currently boasts roughly 16,300 neighborhood general stores in 44 US states, primarily in the South, East, Midwest, and the Southwest. Roughly 75% of Dollar General’s sales are derived from consumables (including refrigerated, shelf-stable, and perishable foods,) in addition to everyday household items such COMPANY NAME as paper towels, bath tissues, paper dinnerware, laundry, and home cleaning supplies. Dollar Dollar General General offers some of America’s most trusted name brands such as Clorox, Energizer, Proctor & Gamble, Hanes, Coca-Cola, Mars, Nestlé, Kimberly-Clark, Kellogg’s, General Mills, Pepsi, and many others. Over the past few years, Dollar General has started to introduce alcohol and tobacco products such as cigarettes into their product mix, which has further driven revenue and increased profitability. OWNERSHIP Public With its small-box store model typically measuring ± 9,100 sq. ft, Dollar General targets cost- conscious consumers that prefer easier and quicker access to items than at super-sized competitors such as Wal-Mart and Costco (which are also often much farther away). Indeed, Dollar General’s strategy of catering to the value-conscious has paid off big, both during and after the recession. INDUSTRY The discount retailer boasted its expectation of 29 consecutive years of same-store sales growth Dollar Stores in December 2018, attributable to its value and convenience proposition, along with strong consumables and seasonal goods sales. Click here to read about Dollar General’s ongoing efforts to provide customers and employees with exceptional service through COVID-19. HEADQUARTERS Goodlettsville, TN NO. OF EMPLOYEES ±113,400 16,300+ $27.8B 1939 LOCATIONS 2019 REVENUE FOUNDED 6 Dollar General AREA OVERVIEW PISGAH FOREST, NC Pisgah Forest is an unincorporated community in Transylvania County, North Carolina. It sits along U.S. Route 64, northeast of Brevard. It is approximately a 30-minute drive from the Asheville Regional Airport. The community lies in an area noted for its many waterfalls and white squirrels. Pisgah Forest is a popular retirement area, at least partly because of the many hiking trails and trout streams of the nearby Pisgah National Forest and the PISGAH NATIONAL FOREST DuPont State Forest. DUPONT STATE FOREST DuPont State Recreational Forest, commonly known as DuPont PISGAH NATIONAL FOREST Forest, is a 10,473-acre state forest, located in Henderson and Pisgah National Forest is a National Forest in the Appalachian Transylvania counties of North Carolina. The name originates Mountains of western North Carolina. It is administered by the from the fact that the DuPont company arranged the sale of United States Forest Service, part of the United States Department the original tract to the state. Adjacent tracts have since been of Agriculture. The Pisgah National Forest is completely contained purchased and added to the state forest. The forest was used within the state of North Carolina. The forest is managed together to shoot scenes from the 1992 film The Last of the Mohicans with the other three North Carolina National Forests (Croatan, as well as the 2012 box office hit The Hunger Games. On Nantahala, and Uwharrie) from common headquarters in February 12, 2019, the forest added 402 acres from Conserving Asheville, North Carolina. There are local ranger district offices Carolina, part of a section called the Continental Divide Tract located in Pisgah Forest, Mars Hill, and Nebo. that connects with other public lands. 314 more acres will be Pisgah National Forest is a popular place for many activities, such added to the forest by the end of 2019. as hiking, backpacking, road biking, mountain biking, fishing, and rock climbing. Popular mountain biking trails include Sycamore Nearly 83 miles of multi-use trails and roads thread through Cove Trail, and Black Mountain Loop. Farlow Gap is an expert- the forest. The forest is widely used for many recreational level trail, and considered “one of the toughest mountain bike activities, including mountain biking, hiking, horseback riding, trails in Pisgah National Forest.” swimming, wading, and kayaking.Popular mountain biking trails include Ridgeline, Big Rock, Cedar Rock, and Airstrip trails. The Ridgeline trail is particularly noted for its long continuous, DUPONT STATE FOREST winding and uninterrupted run, with a mild downhill grade. Dollar General 7 ASHEVILLE, NC Sitting atop the Blue Ridge Mountains, Asheville is a beautiful city surrounded by the Pisgah, Cherokee, and Nantahala National Forests. With over 90,000 residents, Asheville is the 12th most populous city in North Carolina, the largest city in the Western part of the state, and one of the most beloved tourist destinations in the Southeast. ECONOMY Asheville has grown from a small pioneering town into a booming metropolitan area. With an unemployment rate well below the national average and recent job growth of 2.77%, the city has a healthy and vibrant economy. Recognized worldwide for being a healthcare hub, Asheville also has booming maker economies, craft entrepreneurship, breweries, small businesses, and tourism industries. The city’s population has been growing each year for the past 40 years. The city’s population grew by almost 15% from 2000-2010, and the county’s population is expected to be 300,000 by the year 2030. AWARDS • Country’s best places to visit - TripAdvisor • The world’s best places to visit - CNN & Forbes • Top Places to Live • Most Secure U.S. Places to Live • Overall Best Cities in the United States • America’s Happiest City for Women • #1 Best Place to Retire in the U.S. • America’s Top 15 Dream Towns ±23.8 MI TO ASHEVILLE • Top 10 Music Cities • Top 10 Great Adventure Towns • Best Cities for Beer Drinkers • 30 Most Exciting Food Cities • 15 Most Romantic Cities for Winter Travel • 16 Friendliest Cities 8 Dollar General CONFIDENTIALITY AGREEMENT & DISCLOSURE This Offering Memorandum contains select information pertaining to the business and affairs of Dollar General located at 3578 Hendersonville Hwy, Pisgah Forest, NC 28769 (“Property”). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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.