NOR DOLLAR GENERALPENN VALLEY, CA

A CORPORATE NET LEASED DOLLAR STORE

DOLLAR GENERAL

6.00%CAP

$2,920,000 PRICE

LEASEABLE SF9,026 SF

LAND AREA1.20 Acres

LEASE TYPEAbsolute NNN

LEASE TERMS15 Years

YEAR BUILT2019

PARKING42 Spaces

17652 PENN VALLEY DR, PENN VALLEY, CA 95946

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

15-year Absolute NNN corporate lease with three 5-year options

Zero Landlord maintenance or expense obligations

$23B revenue company with Investment Grade Credit Rating of S&P - BBB

Internet resistant store concept – serves daily needs of community

Driving distance from San Francisco, Sacramento, and Lake Tahoe

2

Overview

THE OFFERING provides an opportunity to acquire an absolute NNN Dollar General in Penn Valley, California. The 15-year lease features a Corporate Guaranty, and includes three 5-year options, with rental increases at the start of each option period. This new construction build-to-suit asset has zero landlord maintenance or expense obligations. The property has excellent visibility and curbside appeal along Penn Valley Drive, the “main street” of Penn Valley. The property is located next door to the town’s post office and is surrounded by the majority of the town’s commercial establishments. Penn Valley is located 60 miles northeast of Sacramento, the state capital of California.

DOLLAR GENERAL generated $23.5 billion in sales in fiscal 2017 and in excess of $1.54 billion in net income. Dollar General currently operates over 15,000 stores in 44 states, making it the country’s largest small-box discount retailer. The company has an S&P rating of BBB, which has been raised five times since 2009, and is a better credit rating than its main competitors. Dollar General’s stock is up 45% over the past 24 months.

Contact the team

DOLLAR GENERAL IS THE COUNTRY’S LARGEST SMALL-BOX DISCOUNT RETAILER

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360

JUSTIN SHARP jsharp@capitalpacific.comPH: 415.274.7392CA DRE# 01895013

3

Investment Highlights

DRIV

ED

RIVE

PENN

VALLEY

PENN

VALLEY

SPENCEVILLE ROAD

SPENCEVILLE ROAD

20

20

ELEMENTARY SCHOOL

CHARTER SCHOOL

PENN VALLEY

FIRE

DAY BREAK CAFE

NORTHRIDGE CAFEHOSPICE GIFT & THRIFTPENN VALLEY MARKET

& B LIQUORCHINA HOUSE RESTAURANT

PLAZA TIRE AND AUTO

CALEB’S CREAMERY AND

COFFEESIMPLY YOU SALON & SPA

FLORISTICS FLOWER SHOP

COTTAGE BOUTIQUE

PENN VALLEY MINI MART

BLUE COW DELIEAGLE QUICK

LUBE

TACK ROOM RESTAURANT

& BAR

PEARSON’S FEED

ANYTHING GREEN

HYDRO- PHONICS

ABERCROMBIE & COMPANY

STOVES & AWNINGS

FOUR SEASONS

LANDSCAPE MATERIALS

FOUR SEASONS

LANDSCAPE MATERIALS

GATEWAY PERSONAL STORAGE

HIGHWAY 20 SELF

STORAGE

GOLD COUNTRY

AUTOMOTIVE

GRO TECH SYSTEMS

GOLD COUNTRY

RESELLERS

PENN VALLEY MINI

STORAGE

7,224 VPD

15,000VPD

4,779 VPD

SPENCEVILLE ROADSPENCEVILLE ROAD

4

SACRAMENTO(62 MILES)

GRASS VALLEY(7 MILES)

AUBURN(30 MILES)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Zoomed-In Aerial

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

20

20

49

49

49

MCC

OURT

NEY

MCC

OURT

NEY

ROAD

ROADSP

ENCEV

ILLE

SPEN

CEVILL

E

ROADROAD

PENN VALLEY

PENN VALLEY DRIVEDRIVE

INDIAN SPRINGS ROAD

INDIAN SPRINGS ROAD

ROUGH AND READY

ROUGH AND READY

HIGHWAY

HIGHWAY

ELEMENTARY SCHOOL

SCHOOL

SCHOOL

NEVADA COUNTY

NEVADA COUNTY NEVADA

COUNTY

NEVADA COUNTY

MIDDLE SCHOOL

SCHOOL

NEVADA COUNTY

FAIR

NEVADA COUNTY AIRPORT

HIGH SCHOOL

GOLF COURSE

GOLF COURSE

ELEMENTARY SCHOOL

H&R BLOCK

SIERRA NEVADA

MEMORIAL HOSPITAL

SIERRA COLLEGE

®

23,400 VPD

4,779VPD

15,000 VPD

5

Zoomed-Out Aerial

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

GRASS VALLEY

AUBURN(30 MILES)

SACRAMENTO(62 MILES)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

6

PRICE $2,920,000 Capitalization Rate: 6.00%

Building Size (SF): 9,026

Lot Size (AC): 1.20

STABILIZED INCOME PSFScheduled Rent $19.41 $175,200

Effective Gross Income $19.41 $175,200

EXPENSES PSFTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

NET OPERATING INCOME $175,200

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7

Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT

Dollar General 9,026 1 15 $175,200 $14,600 $175,200 $1.62 $19.41

Option 1 16 20 $16,060 $192,720 $1.78 $21.35

Option 2 21 25 $17,666 $211,992 $1.96 $23.49

Option 3 26 30 $19,433 $233,191 $2.15 $25.84

TOTALS: 9,026 $175,200 $14,600 $175,200 $1.62 $19.41

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

1 - 15 $14,600 $175,200

OPTION RENTSDATE RANGE MONTHLY RENT ANNUAL RENT

#1. 16 - 20 $16,060 $192,720#2. 21 - 25 $17,666 $211,992#3. 26 - 30 $19,433 $233,191

RENT

TENANT Dollar GeneralGUARANTOR Dollar General CorporationBUILDING SF 9,026 SFLEASE TYPE Absolute NNNTERM 15 YearsRENT COMMENCEMENT Anticipated April 2019OPTIONS Three 5-year Options

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Lease Abstract EXPENSES

LEASEPROVISIONS

8

TAXESTenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property.

TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural and nonstructural repairs and replacement.

LANDLORD’S OBLIGATIONSZero expense obligations.

INSURANCETenant shall maintain the following insurance policies: (1) Commercial general liability insurance with a combined single limit no less than $1 million per occurrence and $2 million in aggregate; and (2) a special cause of loss policy insuring all improvements on the Premises. Landlord shall be named as additional insured.

UTILITIESTenant is responsible for direct payment of all utilities to the appropriate billing authority.

ESTOPPELTenant shall deliver an executed Estoppel to Landlord within 20 business days of receipt of written notice.

PENN VALLEY DRIVE

PENN VALLEY DRIVE

SPEN

CEV

ILLE

RO

AD

PEN

N V

ALLE

Y D

RIVE

ILLUMINATED PYLON SIGN

ENTRANCE FOR US POST OFFICE

7,224 VPD

4,997 VPD

6,896 VPD

ELEMENTARY SCHOOL

CHARTER SCHOOL

Site Plan

9This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

42SPACES

9,026RENTABLE SF

1.20ACRES

Dollar General (NYSE: DG) is a chain of more than 15,000 discount stores in 44 states, primarily in the South, East, Midwest, and Southwest. Offering basic household items, such as cleaning supplies, health and beauty aids, apparel, and food, it targets low, middle, and fixed-income shoppers.

The company has grown to be the country’s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General’s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than any other retailer and is easily the largest dollar store chain.

$23.5 Billion in 2017 Sales15,000+ Locations in 44 States

ABOUT DOLLAR GENERAL

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10

Tenant Overview

11

DOLLAR GENERAL IS DOMINATING IN AMERICA. HERE’S HOW IT KEEPS ITS PRICES SO LOW

August 30, 2018 (Business Insider) Dollar General is taking over the United States.

This no-frills, bargain-hunters’ paradise is growing at a level that is largely “unthinkable” in retail, Credit Suisse analysts wrote in June.

In 2017, Dollar General opened new locations at a rate of around four stores a day. In 2018, 900 more stores are slated to open at a rate of about three stores a day.

While competitors have been squeezed by growing competition online and from Amazon, Dollar General and the dollar-store sector, in general, have flourished, swooping in and offering customers prices that are 20% to 40% lower than grocery and drug stores. On Thursday, it continued its 28-year long sales growth streak, reporting a 3.7% increase in same-store sales during the second-quarter of 2018.

Sales at US dollar stores grew to $45.3 billion from $30.4 billion between 2010 and 2015. Moody’s said it expects this market to grow 8% in 2018, which is about double the growth of what is expected for US retail in general during the same period.

Since it opened its first store in a small town in Kentucky in 1955, Dollar General has stayed true to its roots, predominantly serving rural and suburban low-income customers. The retailer’s target shopper comes from a household making $40,000 or less a year and is often living in areas called “food deserts,” meaning they are miles away from access to grocery stores.

In a call with investors on Thursday, Todd Vasos, CEO of the company, said that the chain is also attracting higher-income shoppers and foot traffic to its stores is improving, despite the strength of the economy and customers having more money in their pockets.

“Even in a good economy, she [the customer] is still looking for value and convenience,” he said.

READ THE FULL ARTICLE

11

In the News

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

In the News

1212

DOLLAR GENERAL PROFITS FROM A SHRINKING MIDDLE CLASS; IT’S CHEAP, AMAZON-PROOF, AND ADDING STORES

January 12, 2018 (Philly) Even the sign for Dollar General is no frills: black letters on a yellow backdrop.

Bare bones just like the stores’ aisles.

Retail analysts say consumers’ thrifty attitude from the 2008 recession has remained, propelling value dollar stores like Dollar General to expand like crazy.

But there’s another reason for the boom times of dollar stores.

“Dollar stores’ core customers are lower-income consumers, which have been unfortunately growing,” said Ken Perkins, president at Retail Metrics Inc. He noted that the American middle class has been shrinking for decades.

The Pew Research Center found that 50 percent of the adult population in 2015 was middle class, down from 61 percent in 1971. Perkins’ firm found that the middle class had decreased in 203 of 229 metropolitan areas from 2000 to 2014.

The trend has helped make dollar stores one of only five retail sectors projected to have operating income growth above 5 percent this year, a Moody’s report found. (The others are online retailers, off-price, home improvement, and supermarkets.)

Leading growth in the sector has been Dollar General, which offers an array of items from food to general merchandise, typically at $5 or less. The retailer operates about 14,600 stores nationally, including 35 in the Philadelphia region, according to its website. Longer term, it wants to reach 25,000 stores over the next decade.

Dollar General plans to open 900 stores this year, remodel 1,000 existing locations, and relocate about 100 stores, said chief executive officer Todd Vasos during a third-quarter earnings call.

READ THE FULL ARTICLE

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

12

NEVADA COUNTY TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

Boreal Mountain Resort 500-999

County Nevada 500-999

Clear Capital 250-499

Interfaith Food Ministry 250-499

Lodge at Tahoe Donner 250-499

2018 HH INCOME

1-MILE 3-MILES 5-MILES

Average $53,876 $77,027 $82,391

PENN VALLEY

SACRAMENTO (1 HR, 62 MILES)

THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS

IS OVER $82K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

SAN FRANCISCO (2 HR 20 MINS, 146 MILES)

Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 1,641 7,325 14,506

2018 1,668 7,519 14,918

2023 1,694 7,687 15,283

13

Demographics

Location Overview

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PENN VALLEY,CALIFORNIA

PENN VALLEY, CA sits at the base of the Sierra Nevada Mountains in the heart of the California Gold Rush Region. It is located in Nevada County 62 miles northeast of Sacramento and 82 miles west of Lake Tahoe along Highway 20. The annual Penn Valley Rodeo, started in 1956, draws over 5,000 visitors more than doubling the town’s population over the course of the two day event.

Western Gateway Park, located on the northern edge of town, has 87 acres of park lands featuring 6 bocce ball courts, a disc golf course, 4 baseball fields, a basketball court, horse shoe pits, tennis courts, picnic tables, playgrounds, creek-side swimming hole, and walking paths.

LAKE TAHOE, the largest alpine lake in North America, is surrounded by the Sierra Nevada Mountains on the

California-Nevada border. Known for world-class ski resorts, fresh water sports, hiking and mountain-biking, Tahoe offers year-round attractions in a unique scenic setting. Every year Lake Tahoe welcomes approximately 2.7 million visitors with over $2 Billion in regional economic impact.

ABOUT LAKE TAHOE

LAKE TAHOE

99,814NEVADA COUNTY POPULATION (ESTIMATED) 14

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715

CA DRE# 01440360

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JUSTIN SHARP jsharp@capitalpacific.comPH: 415.274.7392

CA DRE# 01895013

JUSTIN SHARP

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