NNNDollar General

For more info on this opportunity please contact:

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JOHN ANDREINIjandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360

RICK SANNERrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA BRE# 01002010

BOB SANNERbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

In conjuction with KS Licensed Broker: Phil Bundybundydevelopment@cox.net | (316) 686-9292

118 Riley Ave, Ogden, KS 66517

the strongest dollar store chain High growth metro area

very low unemploymentrent increasesjust opened

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NNN PROPERTY IN OGDEN, KANSASInvestment Highlights

New 15-year primary term lease with four (4) five-year options with a 10% rental increase at the beginning of each option period. There is also a 3% rent increase at year 11. Ogden is a suburb of Manhattan, Kansas (home of Kansas State University), and is a part of the Manhattan MSA. The subject property is also quite close to one of the US Army’s largest bases, Ft. Riley.

RENTABLE SF . . . . . . . . . 9,100 SF

YEAR BUILT . . . . . . . . . . 2014

PRICE . . . . . . . . . . . .$1,339,308CAP RATE . . . . . . . . . . . . 6.65%

LEASE TYPE . . . . . . . . . . NNN

INVESTMENT GRADE CREDIT Dollar General’s credit is BBB- and the company’s credit rating has been raised four times since 2009. It has a better credit rating than both of its large competitors (See more information later in this offering)

STRONG TENANT During fiscal 2014, Dollar General opened about 700 new stores Dollar General has more stores (11,500+) than any other retailer in the US and is currently the largest dollar store chain in the country In the 5+ years since going public in 2009, the Dollar General stock price has more than tripled (from $23 to $71)

LEASE HIGHLIGHTS Fifteen year NNN lease with options Parent company guaranteed (NYSE: DG) Guarantor is “investment grade” (see above)

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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.

Income & Expense

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PRICE $1,339,308

Capitalization Rate: 6.65%

Total Rentable Area (SF): 9,100

Lot Size (Acres): 1.27

Year Built: 2014

STABILIZED INCOME Per Square Foot

Scheduled Rent $9.79 $89,064

LESS Per Square Foot

Taxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses $0.00

NET OPERATING INCOME $89,064

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Site Plan

14th Street

S. E

lm S

treet

Riley Avenue114

FT . RILEY OGDEN GATE MANHATTAN

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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.

Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq . Ft . Term Current Rent

Monthly Rent

Monthly Rent/FT

Yearly Rent/FT

Dollar General 9,100 11/30/2014 11/29/2024 $89,064 $7,422 $9.79 $0.82

11/30/2024 11/29/2029 $91,740 $7,645 $10.08 $0.84

Option 1 11/30/2029 11/29/2034 $100,920 $8,410 $11.09 $0.92

Option 2 11/30/2034 11/29/2039 $111,012 $9,251 $12.20 $1.02

Option 3 11/30/2039 11/29/2044 $122,112 $10,176 $13.42 $1.12

Option 4 11/30/2044 11/29/2049 $134,316 $11,193 $14.76 $1.23

Current Totals: 9,100 $89,064 $7,422 $9 .79 $0 .82

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S W

alnu

t Stre

etN W

alnut

Stre

et

Cimarron Trail

Skyway Drive

Riley AvenueEast Riley Avenue

18

114114

Ogden Elementary

CITY OF OGDEN

KANSAS

OGDEN COMMUNITY

CENTER

LIBERTY FOOD

STOREA G

FLOWERS

LEE’S AUTO SALES

ROCK HOUSE SPORTS BAR & GRILL

SUNNY’S FAMILY SALON

MANHATTAN

FT. RILEY

Aerial Close STRONG LOCATION Ogden is a suburb of Manhattan, Kansas (home of Kansas State University), and is a part of the Manhattan MSA

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Henr

y Driv

e

Huebner Avenue

Trooper Drive

Wild

cat Creek R

oad

1st Divis

ion Road

70

70

18

18

18

Williston

Point Road

Riley Avenue

FORT RILEY

MANHATTAN REGIONAL AIRPORT

MARSHALL ARMY FIELD

CAMP FUNSTON

CAMP WHITSIDE

MANHATTAN REGIONAL AIRPORT

2.9 MILES

FORT RILEY 7 MILES

CUSTER HILL GOLF COURSE

Fort Riley Elementary

Ware Elementary

Jefferson Elementary

Morris Hill Elementary

Fort Riley Middle School

H

MANHATTAN

THE SUBJECT PROPERTY IS ONLY 7 MILES FROM FORT RILEY Aerial Far

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Dollar General

DOLLAR GENERAL IS THE COUNTRY’S LARGEST

SMALL-BOX DISCOUNT RETAILER

COMPANY TYPE: PUBLIC (NYSE: DG)

2013 SALES $16.02 BILLION

S&P 500 CREDIT RATING BBB- (See next page)

2013 FORTUNE 500 #175

NUMBER OF STORES 11,500+

ABOUT DOLLAR GENERALDollar General (NYSE: DG) is a chain of more than 11,500 discount stores in 40 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. Although it has the word “dollar” in its name, Dollar General is not solely a dollar store. Dollar General offers goods sold at set price points ranging from under a dollar to $60. Some of its higher end items include over-the-counter medicines, seasonal products, pet products, prepaid cell phones and accessories, and automotive supplies.

The company has grown into 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. With 11,500+ locations, Dollar General has more stores than any other retailer and is easily the largest dollar store chain.

The company ranks 175th within the Fortune 500 list. Fiscal 2013 revenues exceeded $17.5 billion (up 9.23% from 2012) with a net income of $1.02 billion (up 7.60% from 2012), and net worth of $5.4 billion (up 8.43% from 2012.)

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Dollar General Credit Rating

THE THREE LARGEST DOLLAR STORE CHAINS, RANKED BY 2014 REVENUE, ARE:

ABOUT THE STRONG DOLLAR GENERAL CREDIT RATING

As of early March, 2015, Family Dollar formally agreed to be acquired by Dollar Tree, thus, Family Dollar will become a wholly owned subsidiary of Dollar Tree.

Dollar Tree will take on billions of debt to acquire Family Dollar, and, as they combine, that will negatively impact the credit rating of both of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, will no longer issue separate financial statements.

The best known rating agency, Standard & Poor’s, announced in late January on its website that both these Family Dollar and Dollar Tree will be downgraded.

With the effective date of this acquisition (probably April), both of these competitor entities will no longer be investment grade-rated . Dollar General will be the only dollar store chain with an investment grade rating .

As a matter of information, after the acquisition, the combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt - hence the lower credit rating.

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DOLLAR GENERAL

FAMILY DOLLAR

DOLLAR TREE

2

3

1

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Regional MapOgden KS Location

DOLLAR GENERAL

OgdenREPRESENTATIVE PHOTO

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OGDEN, KS

Ogden, Kansas, which has a population of approximately 2,000, is nestled between the city of Manhattan and the Fort Riley army base. Ogden is a growing community and offers housing for people who commute to either location.

Fort Riley is a very large, 150-year-old Army base and Manhattan is home to Kansas State University. Residents of Ogden have a short commute, an easy 15 minutes or less, to either destination. Moreover, a traveler going between these two places often passes directly in front of the subject property .

Within the last two years, the highway between Ogden and Manhattan, Kansas State Route 18 (“K-18”), has been completely rebuilt as a four-lane freeway. From Manhattan, a Ft. Riley-bound traveler can take the Ogden exit to enter the Fort at the “Ogden Gate.” This route goes right in front of the subject property on Riley Avenue.

K-18 is well traveled because it connects to I-70, a few miles SW of Ogden. It is the fastest route from Manhattan to west-bound I-70.

2015 HOUSEHOLD INCOMES

POPULATION

Location and DemosREPRESENTATIVE PHOTO

3-Mile 5-Mile 10-Mile 15-Mile

2010 2,379 4,677 83,835 106,4242014 2,517 5,087 90,779 115,4982019 2,692 5,564 98,533 126,052

3-Mile 5-Mile 10-Mile 15-Mile

Average $58,872 $56,375 $54,019 $57,574Median $51,156 $46,266 $41,533 $45,285

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Manhattan, Kansas

YEARS % GROWTH (ROUNDED)1940-1950 63%1950-1960 21%1960-1970 20%1970-1980 18%1980-1990 15%

1990-2000 19%2000-2010 17%

2010-2013 (3 years) 7%

MANHATTAN MSA 3.7%KANSAS OVERALL 4.2%

US OVERALL 5.6%

The Manhattan Airport has a major new terminal building under construction, which will be completed by 2016. Currently there is non-stop service to Chicago and Dallas. Projections indicate that this new terminal will attract new airlines, bigger planes, and service to more cities, such as Atlanta, Denver, and Phoenix.

By 2008, the Manhattan area had grown such that it was designated by the US Census Bureau as an official Metropolitan Statistical Area (MSA). Ogden is part of that Manhattan MSA. As an indication of the growth, below is a table showing the percentage of growth in population for the city of Manhattan each decade since 1940:

This percentage growth has clearly surpassed the growth of both the US and Kansas. Kansas State University has about 24,000 students and all of these students might not be enumerated as part of the Manhattan population. For instance, a student whose hometown is Wichita but who is studying and living at Kansas State might be counted as a citizen of Wichita and not of Manhattan. Therefore, the Manhattan population is somewhat understated.

In addition, the US Government reported very low unemployment in Manhattan in December, 2014, shown in the table below:

Under construction now at Kansas State is a large US government facility, NBAF, more fully described in the link below. This highly sophisticated technological facility will require five years and 900 people to complete. This is because NBAF will be working daily with lethal diseases agents under great security.

Additional NBAF Information

POPULATION GROWTH

LOW UNEMPLOYMENT

MANHATTAN AIRPORT

NEW GOVERNMENT FACILITY UNDER CONSTRUCTION

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Fort Riley, Kansas

Fort Riley was created just after the Civil War as a frontier fort, making it about 150 years old. The renowned Indian- fighter, George Custer was stationed there for a time.

The Fort is 149 square miles, with more than 1,000 military buildings, totaling 12.55 million square feet.

The Fort is the home of the Army’s First Infantry Division. The insignia/patch of this unit is a red “1”, therefore, it is known in American military folklore as the “Big Red One”. In the 1980’s, a movie was released titled Big Red One, it was a fictionalized version of that unit’s European battles in WWII. Almost all the 18,000+ troops at Fort Riley are part of, or are a support unit of the Big Red One, and the unofficial Fort motto is “We are One”.

The direct payroll is over $1.2 billion per annum. The overall direct impact (including payments to suppliers, contractors, etc.) is $1.775 billion.

The total economic impact, direct and indirect, of the Fort is estimated to be more than $3.9 billion per annum.

The majority of the military troops and civilian employees live off-base and a number of them are residents of Ogden.

Military Troops 18,200Dependents of those Troops 24,000Civilian Employees & Contractors 7,100Retirees in the Area 3,700TOTAL 53,000

POPULATION RELATED TO FORT RILEY

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Copyright © 2015 [Capital Pacific Real Estate Brokerage Company]

JOHN ANDREINIjandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360

RICK SANNERrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA BRE# 01002010

BOB SANNERbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

In conjuction with KS Licensed Broker: Phil Bundybundydevelopment@cox.net | (316) 686-9292

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