EXCLUSIVE INVESTMENT SUMMARY 1016 RT 40 WOODSTOWN, NJ

EXCLUSIVE INVESTMENT SUMMARY 1016 RT 40 WOODSTOWN, NJ

EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK Managing Director Director 484.532.4212 484.532.4213 mmandel@hfflp.com sschrenk@hfflp.com Investment Advisory Investment Advisory 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

INVESTMENT SUMMARY DOLLAR GENERAL 3

INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) Net Lease Advisory is pleased to exclusively offer a net lease opportunity to acquire a single tenant Dollar General located in Woodstown, NJ, a historic Salem County town in the Southern New Jersey retail submarket. Dollar General is a discount retailer with over 14,000 locations throughout the United States offering a variety of discount merchandise ranging from house supplies to apparel. Dollar General has been open at this location since 2002, and has a very strong operating history. The immediate area is surrounded by family oriented communities and limited shopping thus bringing more customers to this location. The property is positioned on the Route 40 corridor with over 15,000 VPD, and located within 20 miles of Wilmington, DE. $950,000 Asking Price $76,481* NOI 8.05% Cap Rate 1.00 Acre Jun 30 2023 Lease Expiration * Pricing based off NOI of $76,481 **Three year percentage rent average of $25,481 DOLLAR GENERAL 4

INVESTMENT HIGHLIGHTS THE WILLOWS AT BAILEY CORNER APARTMENTS HILLCREST GARDEN APARTMENTS Prime location on Rt 40 with 15,100+ VPD Strong Operating History and Store Sales Surrounded by strong national retailers such as McDonald s, Acme, Rite Aid, and Tractor Supply Located 32 miles from the Philadelphia CBD and 21 miles from Wilmington 40 15,100+ VPD DOLLAR GENERAL 5

MARKET AERIAL Woodstown Diner Taylor s Florist 40 DiBella s Market WOODSTOWN 40 WOODSTOWN HIGH SCHOOL Joe s Pizza 45 Bank of Elmer Memorial Lake DOLLAR GENERAL 6

TENANT OVERVIEW DOLLAR GENERAL 7

TENANT OVERVIEW Dollar General was founded in 1955 by J.L. Turner who opened the first store in Springfield, Ky. By 1957, annual sales of Dollar General s 29 stores topped $5 million. Four years later, the company went public as Dollar General Corporation, with annual sales over $40 million and net income more than $1.5 million. Since then the company which specializes in discount products has grown to operate more than 14,000 stores in 44 states. Their convenient, everyday low-price model has survived through the decades. About a quarter of Dollar General s merchandise still sells for a dollar or less. In 2017 Dollar General reported sales of $23.5 billion and have approximately 130,000 + employees. The company also ranked #128 on the Fortune 500 list as of June 2017. The Company s merchandise includes national brands from manufacturers, as well as private brand selections. The Company offers its merchandise through its small-box locations. As of March 3, 2017, the Company s stores averaged approximately 7,400 square feet of selling space. As of March 3, 2017, the Company s stores were supported by 15 distribution centers located strategically throughout its geographic footprint. BBB Standard & Poor s 14,600+ Locations CORPORATE OVERVIEW Headquarters Goodlettsville, TN Stock Ticker DG Stock Exchange NYSE Market Cap $26.12 B Website www.dollargeneral.com DOLLAR GENERAL 8

FINANCIAL ANALYSIS DOLLAR GENERAL 9

LEASE ABSTRACT LEASE DETAIL Tenant Dollar General Size 9,040 Lot Area 1.00 Acre Year Built 2002 NOI $76,481* Lease Type NN Lease Commencement 6/6/2002 Remaining Lease Term 5 Years Lease Expiration 6/30/2023 Guarantor Corporate Guarantee Options One (1) Five (5) year Percentage Rent 2.5% of Sales over $1,700,000 *NOI includes three year average percentage rent of $25,481 RENT SCHEDULE Description Dates Annual Rent Current Term 7/1/2016-6/30/2023 $51,000 Option Period 1 7/1/2023-6/30/2028 $51,000 LANDLORD RESPONSIBILITY DETAIL Maintenance TENANT RESPONSIBILITY DETAIL Maintenance Sales Reporting Taxes Insurance Utilities PERCENTAGE RENT Landlord shall maintain at its cost and expense in good condition and shall perform all necessary maintenance, repair, and replacement to the exterior of the premises including but not limited to, the roof, all paved areas, foundations, floors, walls, all interior and exterior utility lines and pipes, and all structural portions of the building Tenant shall maintain the interior of the premises and shall keep in force during the term a maintenance contract covering the heating, ventilating and air conditioning system. Tenant shall also reimburse landlord for the actual cost of snow removal. Tenant is to report sales to the landlord within sixty (60) says after the close of the preceding lease year Tenant shall pay a pro rata share of any general real estate taxes for the complete shopping center. Tenant shall reimburse Landlord for its pro rata share of Landlord's insurance premiums for the premises Tenant shall pay all utilities direct to the service provider Year Sales Percentage Sales Rent 2015 $2,681,026.80 $24,526 2016 $2,708,386.00 $25,210 2017 $2,768,253.60 $26,706 DOLLAR GENERAL 10

MARKET OVERVIEW DOLLAR GENERAL 11

LOCATION HIGHLIGHTS Woodstown Overview Woodstown is a hidden gem within Salem County, New Jersey. Located less than 5 miles from the NJ Turnpike residents are afforded easy access to cities such as Wilmington, Philadelphia, and Atlantic City are all within a hour drive. The main employment sectors in Woodstown are education, utility services; agriculture, forestry, healthcare and social assistance and wholesale trade. Woodstown is also located within 35 miles to the Philadelphia airport allowing for easy access throughout the United States. MAJOR EMPLOYERS: WOODSTOWN PHILADELPHIA Philadelphia MSA The Philadelphia MSA has over 6 million permanent residents, as well as 39 million tourists yearly, making it the 6th largest MSA in the country. With a robust economy supported by a thriving tourist industry, 11 Fortune 500 companies headquartered throughout, and numerous medical, research, and education institutions, Philadelphia has recovered from the recession with strength and is poised for continued growth. With 101 degree-granting institutions, Greater Philadelphia ranks as one of the nation s leading centers for higher education with a total of 91,844 degrees and certificates awarded annually. This provides a steady pipeline of highly-educated people who enter the workforce or launch startup companies in the Greater Philadelphia region. More than 20 universities in the region sponsor technology and science incubators, allowing new science and IT businesses access to university talent and equipment. Wilmington MSA WILMINGTON The Wilmington MSA is bordered by Pennsylvania to the north, the Delaware River to the east, Kent County to the south, and Maryland to the west. New Castle County is the northern most of Delaware s three counties, and although the smallest in terms of land area, has the largest population. The county occupies 494 square miles and has an approximate population of 550,000 residents with over 2,200,000 people living within a 25-mile radius. New Castle County offers a perfect blend of metropolitan atmosphere and small town charm. The county is home to world-class museums, art collections, theatre, music, and award-winning hotels and restaurants, all enjoyed tax-free. New Castle County provides proximity for their residents and a highly educated employee population. As of the 2010 census, 32.1% of the county population age 25+ has achieved a Bachelor s Degree or higher. Companies have taken advantage of this highly educated workforce by creating jobs, resulting in additional demand for multi-housing. New Castle County is home to several large companies including Dow, DuPont, De Nemours and the Christiana Care Health System. DOLLAR GENERAL 12

DEMOGRAPHICS POPULATION 3 mile 5 mile 10 mile 2010 Census 6,610 11,272 85,515 2018 Estimate 6,460 11,409 86,695 2023 Projection 6,382 11,468 87,534 POPULATION GROWTH 3 mile 5 mile 10 mile Historical Growth: 2010 to 2018-2.27% 1.22% 1.38% Projected Growth: 2018 to 2023-1.21% 0.52% 0.97% HOUSEHOLD INCOME 3 mile 5 mile 10 mile 2018 Average Household Income $116,880 $123,418 $113,492 2018 Median Household Income $96,887 $102,304 $90,119 HOUSEHOLDS 3 mile 5 mile 10 mile 2010 Census 1,691 2,984 22,625 2018 Estimate 1,648 3,007 22,907 2023 Projection 1,625 3,015 23,107 DOLLAR GENERAL 13

EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK Managing Director Director 484.532.4212 484.532.4213 mmandel@hfflp.com sschrenk@hfflp.com Investment Advisory Investment Advisory