Dollar General Plus 5419 US Highway 190 E, Livingston, TX 77351

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1 Similar Property Photo Dollar General Plus 5419 US Highway 190 E, Livingston, TX OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of Dollar General located at 5419 US Highway 190 E, Livingston, TX here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. 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 the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. 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 performance. 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. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

3 TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview Financial Overview Company Overview PROPERTY DESCRIPTION Property Overview Bird s Eye Regional Map DEMOGRAPHICS Demographics Report City Overview PRESENTED BY Josh Bishop VP & Director License No O M josh.bishop@matthews.com Chad Kurz SVP & National Director License No O M chad.kurz@matthews.com Kyle Matthews Broker of Record License No

4 Similar Property Photo

5 PRICING AND FINANCIAL ANALYSIS

6 Investment Overview INVESTMENT HIGHLIGHTS PROPERTY, LEASE & LOCATION DETAILS Similar Property Photo Brand new 2016 construction Rent commencement of November 2016 Larger 10,640 square foot Dollar General Plus model store Dollar General Plus models confirm extremely strong anticipated sales, typically in excess of $2M annually 15 Year absolute NNN lease with zero management responsibility Corporate guaranty from Dollar General an investment grade credit company Three (3), Five (5) Year Options, all of which include a 10% rent increase Approximately 8,677 residents within a 3-mile radius Approximately 14,667 residents within a 5-mile radius Strong growing demographics; estimated population growth of 4.25% over the next 5 years Average household incomes considered to be in Dollar General s Sweet Spot Livingston is located in eastern Texas and is 75 miles north of Houston TENANT Similar Property Photo Investment grade credit tenant; Standard & Poor s rating of BBB (recently upgraded from BBB-) Dollar General is the only dollar store tenant with investment grade credit Dollar General currently has 13,000 stores with plans to continue expansion over the next several years 2

7 Financial Overview EXECUTIVE SUMMARY 5419 US Highway 190 E Livingston, TX List Price $1,723,228 Gross Leasable Area ,640 SF CAP Rate - Current % Year Built Lot Size ± 2.19 Acres (95,396 SF) ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF CAP Rate Current - 11/30/2031 $9, $109, $ % Option 1-11/30/2036 $10, $120, $ % Option 2-11/30/2041 $11, $132, $ % Option 3-11/30/2046 $12, $145, $ % TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Dollar General Fee Simple Corporate Absolute NNN Tenant Responsible 15 years Rent Commencement Date November 2016 Lease Expiration Date 11/30/2031 Term Remaining on Lease Increases Options 15 years 10% increase in option periods Three (3), Five (5) year Similar Property Photo 3

8 Company Overview Property Name Property Type Parent Company Trade Name Ownership Credit Rating Rating Agency Revenue Net Income Stock Symbol Board Dollar General Net Leased Discount Store Dollar General Corporation Public BBB Standard & Poor s $20.37 B $1.17 B DG NYSE Dollar General is the largest discount retailer by number of stores with over 13,000 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products (cleaning supplies and health and beauty aids) and apparel. Pricing its items at $10 or less (and 25% of items at or under $1), Dollar General targets low-, middle-, and fixed-income shoppers. hoovers.com No. of Locations ± 13,000 No. of Employees ± 113,400 Headquartered Web Site Goodlettsville, Tennessee Year Founded

9 PROPERTY DESCRIPTION

10 Property Overview THE OFFERING Property Name Dollar General Property Address US Highway 190 E Livingston, TX SITE DESCRIPTION Number of Stories One Year Built Gross Leasable Area (GLA) ,640 SF Lot Size ± 2.19 Acres (95,396 SF) Type of Ownership Fee Simple Parking ±40 Surface Spaces Parking Ratio : 1,000 SF Landscaping Professional Topography Generally Level CONSTRUCTION Foundation Concrete Slab Framing Steel Exterior Block / Metal Parking Surface Concrete Roof Slightly Pitched Similar Property Photo 6 PROPERTY DESCRIPTION

11 Bird s Eye Highway 190 ± 7,500 VPD 7

12 Regional Map 8

13 DEMOGRAPHICS

14 Demographics Report Population 3-Mile 5-Mile 10-Mile 2021 Projection 8,677 14,667 35, Estimate 8,325 14,131 34, Census 7,989 13,704 33, Census 6,673 12,235 28,541 Growth % 3.80% 4.28% Growth % 3.12% 3.66% Growth % 12.00% 15.86% Households 2021 Projection 1,709 4,103 12, Estimate 1,651 3,952 12, Census 1,615 3,851 11, Census 1,505 3,683 10,380 Growth % 3.82% 4.31% Growth % 2.63% 3.05% Growth % 4.57% 12.92% Income $0 - $15, % 9.39% 13.54% $15,000 - $24, % 14.10% 13.82% $25,000 - $34, % 16.02% 15.26% $35,000 - $49, % 15.38% 14.74% $50,000 - $74, % 20.34% 17.65% $75,000 - $99, % 11.87% 11.07% $100,000 - $124, % 5.49% 6.11% $125,000 - $149, % 2.89% 3.20% $150,000 - $199, % 1.90% 1.92% $200,000 - $249, % 0.70% 0.78% $250,000 - $499, % 1.35% 1.30% $500, % 0.57% 0.60% 2016 Est. Average Household Income $57,289 $60,503 $58, Est. Median Household Income $42,748 $45,238 $42, DEMOGRAPHICS

15 City Overview LIVINGSTON, TX Livingston is the county seat of Polk County, Texas. It is located approximately seventy-five miles north of Houston. The most common employers in Livingston are lumber operations and the Allan B. Polunsky Unit state prison in West Livingston. Lake Evelyn is within the borders of Camp Cho-Yeh, which began operation in the 1940s continues to function as a summer camp and retreat center to this day. Cho-Yeh means, land of tall pines and was labeled that because of the large pine trees on the property. 11

16 Dollar General Plus 5419 US Highway 190 E, Livingston, TX OFFERING MEMORANDUM Josh Bishop VP & Director License No O M josh.bishop@matthews.com Chad Kurz SVP & National Director License No O M chad.kurz@matthews.com Kyle Matthews Broker of Record License No Apollo Street, Suite 150 El Segundo, CA