fee simple - nnn – dollar general portfolio · fee simple - nnn – dollar general portfolio....

OFFERING MEMORANDUM

Fee Simple - NNN – Dollar General Portfolio

Adam C. English Jordan A. Shtulman Jonathan M. WolfeManaging Director Managing Principal Managing Principal205.490.2823 847.226.4133 [email protected] [email protected] [email protected]

STREAM Capital PartnersNet Lease & Sale Leaseback Advisors

LA Broker of Record Robert Jolly Lic. #: 00995680026PA Broker of Record Mike AntonoplosLic. #: PA-RB 063105

OFFERING MEMORANDUM

Fee Simple - NNN – Dollar General Portfolio

Transaction Summary 4

Tenant Overview 5

Aerial & Street Maps 6-12

Plat Survey 13-16

Demographics 17-19

STREAM Capital PartnersNet Lease & Sale Leaseback Advisors

OFFERING MEMORANDUM – DOLLAR GENERAL PORTFOLIO | 3

Dollar General Portfolio – Various Locations

This Offering Memorandum (“Memorandum”) is intended solely for the use of prospective investors in determining whether or notto pursue the possible acquisition of the Retail Properties (“the Properties”) located at 481 N. First St, Lehighton, PA, Hwy 339 &West St., Mifflinville, PA, 3194 New Castle Road, Birmingham, AL, and 2424 Westwood Road, Westlake, LA, This Memorandum isof a proprietary and confidential nature. Prospective investors and/or their advisors are expressly forbidden from sharing thisinformation with any individuals or organizations that are not directly connected with the analysis of this investment opportunity.STREAM Capital Partners, LLC (“SCP”) has been retained as the exclusive advisor for this investment opportunity. Any and allinquiries are to be directed to SCP.

By accepting this Memorandum, the recipient agrees that it will cause its directors, officers, employees and representatives to usethe Memorandum and all of the information contained therein only to evaluate this specific investment opportunity and for no otherpurpose and shall return this Memorandum together with any copies to SCP upon request. This Memorandum contains confidentialmaterial which is non-public information. Receipt of this Memorandum constitutes your acknowledgment that you will maintain theinformation contained herein in strict confidence.

All information contained herein has been provided by the Organization, its affiliates or other sources that SCP deems reliable;however, SCP has not independently verified any of the information, including the financial estimates and projections and selectedreal estate information, contained herein. This Memorandum includes information about the Organization, including selectedfinancial information, estimates and projections that reflect various assumptions concerning anticipated results, which may or maynot prove to be correct and selected real estate information which may or may not prove to be correct. Such projections andestimates may or may not be indicative of future performance, which may be significantly more or less favorable than that asreflected herein.

In furnishing this Memorandum, none of the Organization, its affiliates or SCP undertakes any obligation to provide additionalinformation or to correct or update any of the information set forth in the Memorandum. None of the Organization, its affiliates orSCP makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information containedherein in this Memorandum, or made available in connection with any further investigation of the Organization, and nothingcontained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The recipientshould rely solely on the representations and warranties made to it by the Organization or its affiliates in any executed definitiveagreement.

Under no circumstances should the Organization, its affiliates or any of their management, directors, shareholders,employees, customers or vendors be contacted directly.


NOI: $407,300

Cap Rate: 6.35%

Purchase Price: $6,415,000

Location:481 North First St.Lehighton, PA 18235

Lease Type: Fee Simple - NNN

Rent Commencement Date:

1/11/2014

Initial Term: 15 Years

Base Rent:$119,000escalating 3% in Year 11

Options:

Three (3), five (5) year options -10% increases every five (5) years

Rentable SF: 9,100 SF

Transaction Summary

Location:2424 Westwood RdWestlake, LA 70669



1/10/2015


Base Rent: $95,844

Options:

Four (4), five (5) year options -10% increases every five (5) years


Location:3194 New Castle RdBirmingham, AL 35217



2/4/2015


Base Rent: $94,025

Options:

Four (4), five (5) year options -10% increases every five (5) years


Location:Hwy 339 & West StMifflinville, PA 18631



12/15/2015


Base Rent: $98,431

Options:

Three (3), five (5) year options -10% increases every five (5) years



Tenant Overview

Dollar General Corporation based in Goodlettsville, Tennessee is the nation's largest small-box discount retailer. Dollar General ranks among the largest retailers of top-quality brands made by America's most-trusted manufacturers, such as Procter & Gamble, Kimberly Clark, Unilever, Kellogg's, General Mills and Dollar General Corporation (NYSE: DG) has approximately 11,500 store locations within 40 states with over $16 billion in sales.

Dollar General Fiscal 2013 Fourth Quarter Highlights

As of August 2014, Dollar General holds a BBB- credit rating from S&P and a Baa2 rating from Moody's.

Net income for the 2013 fourth quarter was $322 million compared to net income of $317 million in the fourth quarter of fiscal 2012.

Net sales increased 6.8 percent to $4.49 billion in the 2013 fourth quarter compared to $4.21 billion in the 2012 fourth quarter.

For the 2014 fiscal year, the Company expects total sales to increase 8 to 9 percent over the 2013 fiscal year.


Subject Property – 481 First St., Lehighton, PA

Aerial Map – Lehighton, PA

Robin’s Nest Early Learning

Lehighton Middle School

Lehighton High School

Subject Property

Gnaden HuettenMemorial Hospital


Subject Property – Hwy 339 & West St., Mifflinville, PA

Aerial Map – Mifflinville, PA


Subject Property – 3194 New Castle Road, Birmingham, AL

Aerial Map – Birmingham, AL

Mt. Olive Academy

Fultondale High School

Subject Property


Aerial Map - Westlake, LA

Subject Property – 2424 Westwood Road, Westlake, LA

Subject Property

Westlake High School

Crawfish To Go

Coffee Cup DinerCampbell Tony

El Tapatio Dos

Rudy’s Corner Store


Street Map – Pennsylvania Locations

Subject Properties– 481 First St., Lehighton, PA and Hwy 339 & West St., Mifflinville, PA

Allentown 25 milesPhiladelphia 86 miles

Harrisburg 86 miles


Street Map – Birmingham, Alabama Location

Subject Property –3194 New Castle Road, Birmingham, AL

Birmingham 10 miles


Street Map – Westlake, Louisiana Location

Subject Property –2424 Westwood Road, Westlake, LA

Lafayette - 78 miles


Plat Survey - 481 First St., Lehighton, PA


Plat Survey - Hwy 339 & West St., Mifflinville, PA


Plat Survey - 3194 New Castle Road, Birmingham, AL


Plat Survey - 2424 Westwood Road, Westlake, LA


Demographics – Lehighton, PA and Mifflinville, PA

Lehighton is a borough in Carbon County, in Northeast Pennsylvania, 86 miles northwest of Philadelphia, 26miles north/northwest of Allentown and 45 miles south of Scranton/Wilkes-Barre or the Wyoming Valley.Moreover, it is the most populous borough in Carbon County and still the business hub of the county.

Mifflinville is located in Columbia County, PA in eastern Pennsylvania. As of the 2010 census the populationwas 67,295 and its county seat is Bloomsburg. Columbia County is centrally located on the east coast of thestate, with I-80 running through the middle of the county. Columbia County offers many incentives for newand expanding businesses and is currently home to national brands, Wise Potato Chips and Big Heart PetBrands.

Demographics 1 mile 3 miles 5 miles

POPU

LATI

ON 2019 Population Projection 4,710 14,279 25,218

2010 Census Population 4,633 14,043 24,800

Projected Annual Growth 2014 to 2019 0.2% 0.2% 0.2%

Historical Annual Growth 2000 to 2014 -0.1% -0.1% 0.3%

2014 Est. Median Age 42.2 43.0 43.6

2014 Est. Average Household Income $52,628 $62,853 $64,870


POPU

LATI



Projected Annual Growth 2014 to 2019 -0.1% -0.1% -0.1%

Historical Annual Growth 2000 to 2014 0.1% 0.1% 0

2014 Est. Median Age 47.5 46.1 43.4



Demographics – Birmingham, AL

The Birmingham Metropolitan Area, sometimes known as Greater Birmingham, is a metropolitan area incentral Alabama centered on the city of Birmingham.

As of 2013, the federal government defines the Birmingham-Hoover, AL Metropolitan Statistical Area asconsisting of seven counties (Bibb, Blount, Chilton, Jefferson, St. Clair, Shelby, and Walker) centered onBirmingham. The population of this metropolitan statistical area as of the 2010 census was 1,130,047, making itthe 49th largest metropolitan statistical area in the United States as of that date. According to the United StatesCensus 2013 estimate, the metro area has a population of 1,140,300.

The seven counties in the Birmingham–Hoover metropolitan statistical area are combined with the Cullmanmicropolitan area (Cullman County) and the Talladega-Sylacauga micropolitan area (Talladega County andCoosa County) to form the federally defined Birmingham-Hoover-Talladega, AL Combined Statistical Area.

According to the United States Census 2013 estimate, the combined statistical area has a population of1,313,105. It is the 42nd largest population sub-region in the United States, and the largest population region inAlabama, constituting roughly ¼ of the state's population. Nearby counties Tuscaloosa, Etowah, and Calhoun,while not officially a part of Greater Birmingham, contribute significantly to the region's economy.


POPU

LATI




Historical Annual Growth 2000 to 2014 0.6% 0.3% 0.1%

2014 Est. Median Age 36.4 38.8 36.6



Demographics – Westlake, LA

Westlake is a city in Calcasieu Parish, Louisiana, United States, and is part of the Lake Charles MetropolitanStatistical Area. It is considered a suburb of Lake Charles. The population was 4,568 at the 2010 census.Westlake was incorporated in 1945. Westlake is located in east-central Calcasieu Parish on the west bank of theCalcasieu River, just north of that river's entry into the water body of Lake Charles. Westlake has a total area of3.71 square miles most of which is land.


POPU

LATI




Historical Annual Growth 2000 to 2014 0.4% 0.2% 0.2%

2014 Est. Median Age 35.9 36.9 36.9


INCO

ME

Under $15,000 11.2% 11.3% 15.5%

$15,000 to $34,999 22.0% 22.9% 26.9%

$35,000 to $49,999 12.6% 16.3% 14.8%

$50,000 - $74,999 21.4% 18.8% 15.6%

$75,000 - $99,900 14.0% 11.8% 10.6%

$100,000 - $149,999 10.9% 10.8% 9.5%

Over $150,000 7.8% 8.1% 7.1%

RACE

White 87.1% 78.8% 61.6%

Black 10.3% 17.9% 34.3%

Asian or Pacific Islander 0.2% 0.4% 0.8%

American Indian or Alaska Native 0.5% 0.6% 0.5%

Other Races 1.9% 2.3% 2.8%

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