Offering Memorandum. Dollar General Richmond, VA. One of A kind Construction Trophy Dollar General SITE RENDERING FOR ACTUAL PROPERTY

Transcription

1 Offering Memorandum One of A kind Construction Trophy SITE RENDERING FOR ACTUAL PROPERTY Richmond, VA

2 Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 SITE RENDERING FOR ACTUAL PROPERTY exclusively listed Exclusively listed by: Richard Vincent National Retail Group ONTARIO OFFICE Tel: (909) Fax: (909) Licenses: CA Pablo Rodriguez National Retail Group ONTARIO OFFICE Tel: (909) Fax: (909) Licenses: CA OFFICES NATIONWIDE

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5 Table of Contents EXECUTIVE SUMMARY Offering Highlights....2 Investment Overview...3 Overview...4 Highlights...5 In the News...6 Location Overview....7 Tenant Information...8 PROPERTY DESCRIPTION Regional Map Local Map Aerial Photograph...12 Site Plan COMPETITIVE PROPERTY SET Comparables...16 MARKET OVERVIEW Demographic Summary

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7 summarye XECUTIVE SUMMARY

8 EXECUTIVE SUMMARY EXECUTIVE SUMMARY PROPERTY DESCRIPTION DOLLAR GENERAL 2536 New Market Road, Richmond, VA OFFERING SUMMARY Price $1,865,000 Price/SF $ CAP Rate 5.90% Rentable Square Feet 9,100 Square Feet Year Built 2014 Lot Size 1.90 Acres SITE RENDERING FOR ACTUAL PROPERTY FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW TENANT SUMMARY Tenant Trade Name Ownership Public Tenant Corporate Store Lease Guarantor Corporate Guarantee Lease Type Absolute Net Roof and Structure Tenant Responsible Lease Term 15 Years Lease Commencement 01/01/2015 Rent Commencement 01/01/2015 Lease Expiration Date 01/01/2030 Term Remaining On 15 Years Increases Options Options Five, Five-Year VITAL DATA Net Operating Income - Current $110,000 Ownership Fee Simple Financing First Trust Deed ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL RENT MONTHLY Year One thru 15 $110, $9, Option One (2029 thru 2034) $121, $10, Option Two (2034 thru 2039) $133, $11, Option Three (2039 thru 2044) $146, $12, Option Four (2045 thru 2050) $161, $13, Option Five (2050 thru 2055) $177, $14, Base Rent ($12.09/SF) $110,000 Net Operating Income $110,000 Debt Service $70,047 Debt Coverage Ratio $1.57 Net Cash Flow After Debt Service 5.36%/$39,953 Principal Reduction $17,267 Total Return $7.67%/$57,220 2 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

9 EXECUTIVE SUMMARY Investment Overview Marcus & Millichap is pleased to exclusively market for sale a of approximately 9,100 square feet located in Richmond, Virginia. has signed a 15 year absolute net lease with 10 percent rent increases between each of the five, five-year renewal options. The lease is guaranteed by Corporation, which is publicly traded on the New York Stock Exchange under the ticker DG and has a current BBB- credit rating by Standard and Poors. Dollar General is scheduled to be completed in December 2014, wherein the lease and rent will commence on the first of January The property will feature one of a kind design elements, modeling southern style architecture and exterior. EXECUTIVE SUMMARY PROPERTY DESCRIPTION The surrounding demographics are well suited to discount retailing, with over 1,560 people within a one-mile radius and nearly 30,000 people within a fivemile radius of the property. The average household income is also well above the national average at $79,082 within a one-mile radius of the property. Moreover, the nearest to the subject property is an inline location in an aged retail strip center more than five miles north. The surrounding area has shown explosive growth (38 percent) over the past 10 years, as more and more families have moved to bedroom type communities a few miles outside of Richmond. This is evidenced by the multitude of schools (Varina Elementary, Ward Elementary, and Mehfoud Elementary) all within a few miles of the subject property. There are also multiple new home communities being developed in close proximity to the property. The Richmond Metropolitan Statistical Area is a 5,840 square-mile region located in Central Virginia. Richmond is the 45th most populous Metropolitan Statistical Area in the nation (United States Census Bureau for 2012). The city of Richmond serves as the state capital of Virginia and houses many attractions and landmarks such as the Richmond International Raceway, Richmond International Airport and numerous museums. Local university campuses include the University of Richmond, Virginia Polytechnic Institute and State University (Virginia Tech), Virginia Commonwealth University and Virginia Union University. Investment Highlights Brand New Build to Suit Location With December 2014 Delivery 15 Year Absolute Triple-Net Corporate Guaranteed Lease 10 Percent Increases in the Five, Five-Year Options Zero Landlord Responsibilities Huge 1.90 Acre Lot One of a Kind Design and Construction Average Household Income Above $79,000 in a One-Mile Radius FINANCIAL ANALYSIS COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

10 EXECUTIVE SUMMARY Dollar General EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW Overview Goodlettsville, Tennessee Tenn.-based based Corporation is is the the nation s largest small-box discount retailer. The The company seeks to to make shopping for everyday needs simpler and free by by offering offering a a carefully carefully edited edited assortment of of the the most popular brands at low everyday prices hasslefree in in small, small, convenient convenient locations. locations. Dollar Dollar General General ranks ranks among among the the largest largest retailers retailers of of top-quality top-quality brands made by America s most trusted manufacturers, such as Procter & Gamble, Kimberly- Clark, brands Unilever, made by Kellogg s, America s General most-trusted Mills, Nabisco, manufacturers, Hanes, such PepsiCo as Procter and Coca-Cola. Gamble, Kimberly- Clark, Unilever, Kellogg s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. In the 2012 fiscal year, the company had $16.02 billion in sales, over 10,700 stores in 40 states, In fiscal 10,000-12, , the comapany total stock had keeping $16.02 units billion (SKUs) in sales, per 10,700+ store from stores America s in 40 states, most 10,000 trusted - manufacturers, 12,000 total stock 12 distribution keeping units centers (SKUs) and per more store than from 90,000 America s employees. most-trusted manufacturers, 12 distribution centers, and 90,000+ employees., is a is company a company that that embraces embraces substance substance and simplicity. and simplicity. Its mission Its mission serving is Serving others and Others, company and the thinks company its customers thinks its are customers best served are best when served they when keep they it real keep and it keep real and it simple. keep it simple. builds and runs conveniently convenient-sized sized stores stores to to deliver everyday low low prices prices on on products its consumers customers need want, and and want, has successfully and has successfully done so done for many so for years. many Dollar years. General delivers delivers a smarter, a smarter, easier shopping easier shopping solution solution accessible accessible to more to consumers. more consumers. Its goal The is to company s provide customers goal is to a provide better customers life and employees with a better opportunity life, employee and a great opportunity working and environment. a great working environment. Dollar Dollar General s General s business business model model stands stands for for convenience, convenience, quality quality brands brands and and low low prices. prices. Dollar Dollar General s General s successful successful prototype prototype makes makes shopping shopping a truly hassle-free experience. The company designs small neighborhood a truly stores hassle-free with carefully experience. edited The merchandise compan designs assortments small to make neighborhood shopping stores simpler. with Dollar carefully General edited doesn t merchandise carry every brand assortments and size, to just make the shopping most popular simpler. ones. DG doesn t carry every brand and size, just the most popular ones. saves customers time by staying focused on life s simple necessities: laundry detergent, toilet paper, soap, Source: shampoo, socks and underwear...maybe a gadget or two that some just can t live without. The average customer completes his or her shopping trip in less than 10 minutes. Source:_http://newscenter.dollargeneral.com/company+facts/ 4 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

11 EXECUTIVE SUMMARY Dollar Corporation Company Highlights Headquartered Company Headquarters in Goodlettsville, Located in Tennessee Goodlettsville, Tennessee Publically Traded on the New York Stock Exchange Under Ticker Symbol DG DG Founded Company in Founded 1955 in in Springfield, 1955 Springfield, Kentucky Kentucky Mission Statement In In, General, you ll you ll find find a company company that that embraces embraces subtance substance and and simplicity. simplicity. Our mission is Serving Others, and we think our customers are best served Our mission is serving others and we think our customers are best served when we keep it real and keep it simple. We build and run convenient-sized stores to deliver everyday low when prices we keep on products it real and our keep customers it simple. want. We We build have and successfully run convenient-sized done so for stores many years. to deliver We deliver everyday a smarter, low prices easier on shopping products our solution customers accessible want. to We more have consumers. successfully goal is done to provide so for our many customers years. We a better deliver life a smarter, and our employees easier shopping opportunity solution and Our a great working enviornment. accessible to more consumers. Our goal is to provide our customers a better life and our employees opportunity and a great working environment. EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

12 EXECUTIVE SUMMARY Dollar in the News EXECUTIVE SUMMARY Takes Low Price Lead Over Wal-Mart By Marilyn Much, Investors Business Daily - April 25, 2014 Deep Deep discounter discounter Dollar Dollar General General (DG) (DG) is the is the front-runner front-runner in the in race the to race lure to consumers lure consumers with low with prices, low according prices, according to a pricing to a study pricing by Sterne study by Agee analyst Charles Grom. Sterne Agee analyst Charles Grom. The Study compares prices at, deep discounter Family Dollar Stores (FDO) and giant The discounter study compares Walmart prices Stores at (WMT)., deep discounter Family Dollar Stores (FDO) and giant discounterwal-mart Stores (WMT). Based on his recent round of price checks, is the new price leader, Grom notes, with Based the on overall his recent basket round priced of around price checks, 100 basis Dollar points General lower is than the Family new price Dollar leader, and around Grom 60 basis notes, points with lower the overall than Walmart. basket priced around 100 basis points lower than Family Dollar and around 60 basis points lower than Wal-Mart. Grom s dollar store store study study follows follows Family Family Dollar Dollar Stores Stores recent recent announcement announcement that it would that it be invsesting would be $50 investing million $50 in prices million across in 1,000 prices stock across keeping 1,000 units, stock or keeping items part units, of its or move items, back as to everday low pricing. part of its move back to everyday low pricing. Grom writes, while list-price adjustments did finally flow through the Family Dollar basket this time around, the overall basket at fell by a comparable amount, helping DG maintain its While price lead. list-price adjustments did finally flow through the Family Dollar basket this time around, the overall basket at DG () fell by a comparable amount, helping DG maintain its price lead, Grom wrote. Prices declined at at Family Family Dollar Dollar and and Dollar General but increased but increased at Walmart. at Wal-Mart. Relative to Grom s prior study a month ago, the price of his 42-item basket fell sequentially by 0.4% at Family Dollar and 0.3% at Dollar Relative General. to The Grom s overall prior basket study rose a month by 0.5% ago, the at Wal-Mart, price of his 42-item driven completely basket fell sequentially by higher prices by 0.4 in percent food, at he Family found. Dollar and 0.3 percent at Dollar General. The overall basket rose by 0.5 percent at Walmart, driven completely by higher prices in food. Meanwhile, the food and beverage category increased sequentially at all three retailers by about 2.2%, on average. Meanwhile, The price the gap food (for and Dollar beverage General) category relative increased to Wal-Mart sequentially is centered at all three in retailers the household-product by about 2.2 percent category, on average. where it is priced at a 6.1% discount, he wrote. Importantly, based on our basket, DG is lower than FDO across all three categories. However, we do point out that Wal-Mart maintains a 6.6% price advantage, on average, in the food and beverage category, compared to the two dollar stores. The price gap for relative to Walmart is centered in the household product category, where it is priced at a 6.1 percent discount, he wrote. Source: Importantly, based on our basket, is lower than Family Dollar Stores across all three categories. However, we do point out that Walmart maintains a 6.6 percent price advantage, on average, in the food and beverage category, compared to the two dollar stores. PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

13 EXECUTIVE SUMMARY LOCATION OVERVIEW - RICHMOND, VIRGINIA PROPERTY DESCRIPTION EXECUTIVE SUMMARY FINANCIAL ANALYSIS The Richmond Metropolitan Statistical Area is a 5,840 square-mile region located in Central Virginia. Richmond is the 45th most populous Metropolitan Statistical Area in the nation (United States Census Bureau for 2012). The city of Richmond serves as the state capital of Virginia and houses many attractions and landmarks such as the Richmond International Raceway, Richmond International Airport and numerous museums. Local university campuses include University of Richmond, Virginia Polytechnic Institute and State University (Virginia Tech), Virginia Commonwealth University and Virginia Union University. Attractions The Virginia State Capitol is the first public building of neo-classical style in the United States designed by Thomas Jefferson and is where Virginia s General Assembly meets. COMPARABLES Capitol Square features several monuments: Jean Antoine Houdon s life sized statue of George Washington - the only statue in existence for which Washington posed located in the Capitol Rotunda. The statue in Capitol Square depicts Washington on horseback. Virginia Museum of Fine Arts is a top museum that features 5,000 years of artistic achievement from the glories of ancient Greece and India to contemporary international art. Museum of the Confederacy holds the world s most comprehensive collection of military, political and domestic artifacts and art associated with the period of the Confederacy ( ). Richmond International Raceway is a state-of-the-art three-quarter mile track that seats more than 100,000 fans. The arena hosts four NASCAR weekends a year and the NASCAR Sprint Cup Series and the Nationwide Series. Local Shops MARKET OVERVIEW Stony Point Fashion Park, a 662,000 square-feet shopping mall, offers an eclectic merchandise mix and an intimate, park-like setting that is like nothing in the area today. With anchors Saks Fifth Avenue, Dick s Sporting Goods, Dillards and up to 90 specialty stores and full-service restaurants, Stony Point Fashion Park will deliver food, fashion, fun and convenience to sophisticated Richmond residents and visitors. Carytown, a nine-block shopping area, boasts a variety of shops, boutiques, restaurants and food stores. It is also home to the Byrd Theatre, a national historic landmark that still operates as a movie and entertainment theater today. 7 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

14 description PROPERTY DESCRIPTION

15 PROPERTY DESCRIPTION REGIONAL MAP EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

16 PROPERTY DESCRIPTION LOCAL MAP MARKET OVERVIEW COMPARABLES FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY AREA MAPS 10 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

17 EXECUTIVE SUMMARY PROPERTY DESCRIPTION S. RICHMOND APPROX. 8.8 MI MONTROSE APPROX. 7 MI Montebello/Commerce Metrolink Track Varina High School EXECUTIVE SUMMARY PROPERTY DESCRIPTION BENSELY APPROX. 7.2 MI 51,653 ADT 209,658 ADT Pocahontas Pkwy (Toll Road) 32,000 ADT Varina Elementary School FINANCIAL ANALYSIS Jefferson Davis Hwy 90,000 ADT 33,000 ADT E Washington Blvd Mehfound Elementary COMPARABLES MARKET OVERVIEW BELLWOOD APPROX. 8.9 MI CHESTERFIELD APPROX MI 209,658 ADT 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

18 PROPERTY DESCRIPTION SITE PLAN MARKET OVERVIEW COMPARABLES FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY 12 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

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20 competitive COMPETITIVE PROPERTY SET

21 COMPETITIVE PROPERTY SET Recent Sales Subject Property (Subject Property) 2536 New Market Road, Richmond, VA Sales Price: $1,865,000 Price/SF $ Cap Rate: 5.90% Rentable Square Feet: 9,100 SF Year Built: 2014 Lot Size: 1.90 Acres South S Dixie Hwy Highway, Deerfield Deerfield Beach, FL FL EXECUTIVE SUMMARY PROPERTY DESCRIPTION List Price: $2,404,300 Status Listing Percent Down: 100% Cap Rate: 6.00% Price/SF: $ Gross Leasable Area (GLA): 9,002 SF Year Built: 2014 FINANCIAL ANALYSIS 2 New 15-year 15-Year triple NNN net Lease lease Pleasant Hill Hill RD Road, Kissimmee, FL FL List Price: $2,464,272 Status: Under Contract Percent Down: 100% Cap Rate: 6.00% Price/SF: $273 Gross Leasable Area (GLA): 9,026 SF Year Built: 2014 New 15-Year triple net lease New 15-Year NNN lease COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

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23 overviewmarket OVERVIEW

24 MARKET OVERVIEW Demographic Summary Richmond, Virginia EXECUTIVE SUMMARY Population 1-Mile 3-Miles 5-Miles 2000 Population 961 6,240 20, Population 1,513 8,983 26, Population 1,559 9,304 27, Population 1,768 10,380 29,398 Households 1-Mile 3-Miles 5-Miles 2000 Households 387 2,307 7, Households 593 3,283 9, Households 610 3,396 10, Households 697 3,816 11, Average HH Size Daytime Population 135 3,447 18, Median Housing Value $0 $109,297 $107, Owner Occupied Housing Units 85.62% 84.67% 65.27% 2000 Renter Occupied Housing Units 9.06% 10.38% 30.12% 2000 Vacant 4.79% 4.70% 4.52% 2013 Owner Occupied Housing Units 88.31% 87.70% 67.05% 2013 Renter Occupied Housing Units 11.69% 12.30% 32.95% 2013 Vacant 2.95% 5.81% 6.08% 2018 Owner Occupied Housing Units 88.10% 87.60% 67.70% 2018 Renter Occupied Housing Units 11.90% 12.40% 32.30% 2018 Vacant 2.73% 6.01% 6.26% Income 1-Mile 3-Miles 5-Miles $ 0 - $ 14, % 6.1% 11.5% $ 15,000 - $24, % 6.9% 10.7% $ 25,000 - $34, % 9.0% 11.1% $ 35,000 - $49, % 12.8% 13.3% $ 50,000 - $74, % 23.0% 19.4% $ 75,000 - $99, % 18.8% 16.9% $100,000 - $124, % 12.0% 8.6% $125,000 - $149, % 4.8% 3.8% $150,000 - $200, % 4.5% 3.0% $200,000 to $249, % 0.9% 0.7% $250, % 1.4% 1.0% 2013 Median HH Income $69,040 $66,732 $54, Per Capita Income $30,962 $28,584 $25, Average Household Income $79,082 $78,235 $66,245 PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

25 MARKET OVERVIEW Demographic Summary -- 5 Miles EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES Population In 2013, the population in your selected geography was 27,010. The population has changed by percent since It is estimated that the population in your area will be 29,398 five years from now, which represents a change of 8.84 percent from the current year. The current population is 47.9 percent male and 52.0 percent female. The median age of the population in your area is 37.7, compare this to the U.S. average which is 37. The population density in your area is people per square mile. Households There are currently 10,238 households in your selected geography. The number of households has changed by pecent since It is estimated that the number of households in your area will be 11,214 five years from now, which represents a change of 9.53 percent from the current year. The average household size in your area is 2.62 persons. Income In 2013, the median household income for your selected geography is $54,527, compare this to the U.S. average which is currently $53,535. The median household income for your area has changed by percent since It is estimated that the median household income in your area will be $62,445 five years from now, which represents a change of percent from the current year. The current year per capita income in your area is $25,129, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $66,245, compare this to the U.S. average which is $75,370 Housing The median housing value in your area was $107,755 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 5,398 owner occupied housing units in the area and there were 2,491 renter occupied housing units in the area. The median rent at the time was $499. Employment In 2013, there were 18,607 employees in the area, this is also known as the daytime population. The 2000 Census revealed that 57.1 percent of employees are employed in white-collar occupations in this geography and 42.8 percent are employed in blue-collar occupations. In 2013, unemployment in this area was 4.05 percent. In 2000, the median time traveled to work was 23.3 minutes. MARKET OVERVIEW Demographic data 2010 by Experian/Applied Geographic Solutions. 19 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID V

26 SITE RENDERING FOR ACTUAL PROPERTY exclusively listed Exclusively listed by: Richard Vincent National Retail Group ONTARIO OFFICE Tel: (909) Fax: (909) Licenses: CA Pablo Rodriguez National Retail Group ONTARIO OFFICE Tel: (909) Fax: (909) Licenses: CA OFFICES NATIONWIDE