™o f f e r i n g m e m o r a n d u m

DOLLAR GENERAL PORTOLIO

7 5 0 1 M A B E LVA L E C U T O F F R D | L I T T L E R O C K , A R

9 6 9 2 F M 1 0 5 | O R A N G E F I E L D , T X

Representative Photo

0 3

0 4

1 1

0 6

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

Jessica DearnleyBROKER OF RECORDLIC # PB00069947 (AR)

Josh BishopVP & DirectorJOSH.BISHOP@MATTHEWS.COMDIR 214.692.2289MOB 315.730.6228LIC # 688810 (TX)

BROKER OF RECORD

CONTENTS

LISTED BY

L I T T L E R O C K , A R

3

E X E C U T I V EO V E R V I E W

I N V E S T M E N T H I G H L I G H T SL E A S E

• Newer construction buildings

• Extremely strong corporate guaranty from Dollar General

• Little Rock lease includes a 3% rent increase in September of 2019

• Dollar General extended the Orangefield lease 4 years early, proving their commitment to the site

• Fee simple deals – buyer will benefit from the ability to depreciate these assets

L O C A T I O N

LITTLE ROCK, AR

• Located in the largest city in Arkansas

• 1-mile population in excess of 9,576

• 3-mile population in excess of 35,942

• Estimated population growth of 2%

ORANGEFIELD, TX

• Located in income tax-free state

• Approximately 12 miles east of Beaumont, TX; a city with one of the nation’s largest ports

• 3-mile population in excess of 7,869

• 5-mile population in excess of 30,616

• Estimated population growth of nearly 6%

• Average household income of $73,000 annually

T E N A N T

• Strong investment grade credit tenant; Standard & Poor’s rating of BBB, which was recently upgraded from its previous rating of BBB-

• Dollar General is the only dollar store with investment grade credit

• Dollar General currently has ±13,500 locations nationwide with plans to continue expanding over the next several years

$

4

F I N A N C I A LO V E R V I E W

ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Rent/SF Cap Rate

Current - 8/31/19 $6,620.42 $79,445.04 $8.81 8.00%

9/1/19 - 8/31/24 $6,819.00 $81,828.00 $9.08 8.24%

Extension 1 $7,500.92 $90,011.04 $9.99 9.06%

Extension 2 $8,251.00 $99,012.00 $10.98 9.97%

Extension 3 $9,076.08 $108,912.96 $12.08 10.97%

Extension 4 $9,983.67 $119,804.04 $13.29 12.06%

Extension 5 $10,982.00 $131,784.00 $14.62 13.27%

EXECUTIVE SUMMARY

Tenant Dollar General

Property Street 7501 Mabelvale Cut Off Rd

City, State Little Rock, AR

GLA ±9,014 SF

Lot Size ±1.27 AC (±55,321 SF)

Year Built 2009

TENANT SUMMARY

Tenant Trade Name Dollar General Corporation

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof & Structure Owner Responsibility

Original Lease Term 15 Years

Rent Commencement Date 8/27/2009

Lease Expiration Date 8/31/2024

Term Remaining ±6.5 years

Increases3% bump in year 11; 10% at

each extemsion

Options Five, 5-Year Extensions

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,828,525 as a portfolio

CAP RATE

8.00%

TERM REMAINING

±6.5 YEARS

LITTLE ROCK, AR

$

5

ORANGEFIELD, TX

ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Rent/SF Cap Rate

Current - 3/31/25 $5,569.90 $66,838.80 $7.41 8.00%

Extension 1 $6,126.89 $73,522.68 $8.16 8.80%

Extension 2 $6,739.58 $80,874.96 $8.97 9.68%

Extension 3 $7,413.54 $88,962.48 $9.87 10.65%

EXECUTIVE SUMMARY

Tenant Dollar General

Property Street 9692 FM 105

City, State Orangefield, TX

GLA ±9,014 SF

Lot Size ±0.93 AC (±40,641 SF)

Year Built 2010

TENANT SUMMARY

Tenant Trade Name Dollar General Corporation

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof & Structure Owner Responsibility

Original Lease Term 15 Years

Rent Commencement Date 3/15/2010

Lease Expiration Date 3/31/2025

Term Remaining ±7 years

Increases 10% After 5 Years

Options Three, 5-Year Options

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,828,525 as a portfolio

CAP RATE

8.00%

TERM REMAINING

±7 YEARS

$700 / month for parking lot maintenance

T e n a n to v e r v i e w

6 L I T T L E R O C K , A R

7

Dollar General is the fast-growing retailer that boasts roughly 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 and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company doesn’t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.

OPERATIONSDollar General’s massive stores network is supported by 13 distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such as Bobbie Brooks and Fisher Price for clothing and Rexall for health and beauty aids.

L I T T L E R O C K , A R

O W N E R S H I P P U B L I C

N O . O F L O C A T I O N S± 1 3 , 0 0 0

N O . O F E M P L O Y E E S± 1 1 3 , 4 0 0

W E B S I T EW W W . D O L L A R G E N E R A L . C O M

H E A D Q U A R T E R E DG O O D L E T T S V I L L E , T N

Y E A R F O U N D E D1 9 3 9

C O M P A N Y T R A D E N A M ED O L L A R G E N E R A L C O R P O R A T I O N ( N Y S E : D G )

PARCEL MAP

8

the offering

Property Name Dollar General

Property Address7501 Mabelvale Cut Off Rd

Little Rock, AR 72209

Assessor’s Parcel Number 45L-077-08-002-00

Site DescriptionNumber of Stories One

Year Built 2009

GLA ±9,014 SF

Lot Size ± 1.27 Acres (55,321 SF)

Type of Ownership Fee Simple

Parking ± 31 Surface Spaces

Parking Ratio 3.44 : 1,000 SF

Parking Surface Asphalt

PARCEL MAP

Property Name Dollar General

Property Address9692 FM 105

Orangefield, TX 77630

Assessor’s Parcel Number 000008-001606

Site DescriptionNumber of Stories One

Year Built 2010

GLA ±9,014 SF

Lot Size ± 0.93 Acres (40,641 SF)

Type of Ownership Fee Simple

Parking ± 29 Surface Spaces

Parking Ratio 3.22 : 1,000 SF

Parking Surface Asphalt

s u r r o u n d i n g t e n a n t s 9

Little Rock, AR

10 10

Orangefield, tx

DEMOGRAPHICSLittle Rock, Arkansas sits on the banks of the Arkansas River in Pulaski County. And with a population of nearly 200,000 people, it’s the largest city in Arkansas. Little Rock is a major cultural, economic, government and transportation center within Arkansas and the South.

The list of focal points around the city includes the Clinton Presidential Center & Park, neighboring world headquarters of Heifer International with its Heifer Village, and the Central Arkansas Nature Center.

The city includes cultural institutions such as the Arkansas Arts Center, the Arkansas Repertory Theatre, and the Arkansas Symphony Orchestra, in addition to the hiking, boating, and other outdoor recreational opportunities. The Arkansas Repertory Theatre is the state’s largest nonprofit professional theatre company. A member of the League of Resident Theatres (LORT D), The Rep has produced more than 300 productions, including 40 world premieres, in its historic building located in downtown Little Rock.

POPULATION 1 Mile 3 Mile 5 Mile

2023 Projection 9,763 36,276 75,856

2018 Estimate 9,576 35,942 74,411

Growth 2018 - 2023 1.95% 0.93% 1.94%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2023 Projection 3,479 13,118 28,656

2018 Estimate 3,398 12,974 28,054

Growth 2018 - 2023 2.38% 1.11% 2.15%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$46,302.74 $42,837.16 $51,444.59

A R E AO V E R V I E W

11

Little Rock, AR

12

Orangefield, TX is part of the Beaumont-Port Arthur Metropolitan Area, about twelve miles east of Beaumont, TX. Orangefield is a farm town that has been established since before the discovery of oil.

Beaumont, TXBeaumont, TX is a city that’s economy is based around the Port of Beaumont, one of the nation’s largest ports when measured by tonnage. The Port of Beaumont, Port Arthur, and Orange make up the golden triangle in terms of being a major industrial area on the Gulf Coast. Beaumont is also one of the largest military ports in the world.

Beaumont, TX is also home to Lamar University. Various museums including The Art Museum of Southeast Texas, the Dishman Art Museum, Spindletop-Gladys City Boomtown Museum, the Edison Museum, the Fireman Museum of Texas, the McFaddin-Ward House and Beaumont Botanical Gardens bring culture to the area.

Orangefield, tx

DEMOGRAPHICSPOPULATION 3 Mile 5 Mile 10 Mile

2023 Projection 8,331 32,173 66,804

2018 Estimate 7,869 30,616 64,117

Growth 2018 - 2023 5.87% 5.09% 4.19%

HOUSEHOLDS 3 Mile 5 Mile 10 Mile

2023 Projection 3,181 12,788 26,006

2018 Estimate 2,984 12,091 24,860

Growth 2018 - 2023 6.60% 5.76% 4.61%

INCOME 3 Mile 5 Mile 10 Mile

2017 Est. Average Household Income

$78,122.18 $73,906.04 $74,388.67

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dollar General located at 7501 Mabelvale Cut Off Rd and 9692 FM 105 Orangefield, TX 77630 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TA T E M E N T

EXCLUSIVELY LISTED BY ™

Jessica DearnleyBROKER OF RECORDLIC # PB00069947 (AR)

Josh BishopVP & DirectorJOSH.BISHOP@MATTHEWS.COMDIR 214.692.2289MOB 315.730.6228LIC # 688810 (TX)

BROKER OF RECORD

DOLLAR GENERAL PORTOLIO7 5 0 1 M A B E LVA L E C U T O F F R D | L I T T L E R O C K , A R

9 6 9 2 F M 1 0 5 | O R A N G E F I E L D , T X