Representative Photo Fred s Super Dollar 726 North Downing, Glennville, GA 30427 OFFERING MEMORANDUM
2 DISCLAIMER All materials and information received or derived from B Plus E LLC, its directors, officers, agents, advisors, affiliates and/ or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither B Plus E LLC, its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party B Plus E LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Contact Info Scott Scurich 415.302.6498 sscurich@benetlease.com Camille Renshaw 646.701.4536 crenshaw@benetlease.com Spencer Henderson 415.315.9287 shenderson@benetlease.com EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. B Plus E LLC makes no warranties and/ or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. B Plus E LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by B Plus E LLC in compliance with all applicable fair housing and equal opportunity laws.
3 Brokers + Engineers is pleased to offer to qualified investors the opportunity to own a sale leaseback retail store totaling +/- 16,000 SF located at 726 North Downing in Glennville, GA (the Property, Subject Property ). The Property is occupied by Fred s (NASDAQ: FRED) and subject to a long-term Absolute NNN lease. Investment Highlights Corporate Guarantee from Fred s Inc. Sale-Leaseback with New 20-Year lease Savannah, GA MSA Top Performing Location w/ Low Rent-to-Sales Absolute NNN Lease with Rent Escalations Internet Resistant Business Model Low Rent & Price/SF Can Be Purchased Individually or as Part of a Portfolio Representative Photo Asking Price $1,896,300 Cap Rate 6.7 NOI $128,000 Tenant Fred s Super Dollar Lease Structure Absolute NNN Ownership Interest Fee Simple Rent Escalations every 5 (five) years Remaining Term 20 years
4 LEASE ABSTRACT PROPERTY OVERVIEW Tenant Fred s Super Dollar Guarantor Fred s Inc. Lease Term 20 Years Renewal Options Three (3), five (5) year options Address 726 North Downing in Glennville, GA Land Area +/- 2.55 Acres Year Built/ Renovated 2002 Property Type Retail Rent $128,000 Building SF +/- 16,000 Effective Dates Annual Rent Monthly Rent Percentage Increase Years 1-5 $128,000 $10,667 Years 6-10 $134,400 $11,200 Years 11-15 $141,120 $11,760 Years 16-20 $148,176 $12,348 Option 1 $155,555 $12,965 Option 2 $163,364 $13,614
5 SITE PLAN Representative Photo Representative Photo
6 TENANT OVERVIEW Tenant Name Fred s Super Dollar Guarantor Fred s Inc. Number of Locations 601 Total Revenue $2.13 Billion Net Worth $400 Million Stock Ticker NYSE: FRED Market Cap $112.01 Million Headquarters Memphis, TN Fred s Inc. (NASDAQ: FRED, Fred s ) Tracing its history back to an original store in Coldwater, Mississippi, opened in 1947, today Fred s Inc. is headquartered in Memphis, Tennessee, and operates 601 general merchandise and pharmacy stores, including 14 franchised locations, and three specialty pharmacy-only locations. With a unique store format and strategy that combines the best elements of a value-focused retailer with a healthcare-focused drug store, Fred s stores offer more than 12,000 frequently purchased items that address the everyday needs of its customers and patients. This includes nationally recognized brands, proprietary Fred s label products, and a full range of value-priced selections. The Company has two distribution centers, one in Memphis, Tennessee, and Dublin, Georgia. Representative Photo
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8 DEMOGRAPHICS Glennville, GA
9 LOCATION OVERVIEW Glennville, GA Demographics Incorporated in 1895, Glennville has a population of 5,150 people with a median age of 35.2 and a median household income of $43,408. The population of Glennville, GA is 56% White, 36% Black, and 5.38% Hispanic. 6.42% of the people in Glennville, GA speak a non-english language, and 97.4% are U.S. citizens. The median property value in Glennville, GA is $149,700, and the homeownership rate is 57.4%. Most people in Glennville, GA commute alone, and the average commute time is 21.8 minutes. The average car ownership in Glennville, GA is 2 cars per household.