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Dollar General354 Duff-Patt Road, Duffield, VA 24244

OFFERING MEMORANDUM

Representative Photo

This Marketing Brochure contains select information pertaining to the business and affairs of Dollar General located at 354 Duff-Patt Road, Duffield, VA 24244 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

It is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future performance.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer’s legal ability to make alternate use of the Property.

By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Andy KnightBroker of Record License No. 0225214094

Josh BishopVP & Director

License No. 01940394O 310.919.5823M [email protected]

Joe SchuchertAssociate


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Representative Photo ™PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

PROPERTY, LEASE & LOCATION DETAILS

• +8.25 years remaining on a NN lease• Dollar General has been operating at this site since 2000,

displaying a strong commitment to the location• Tenant recently extended the term of the lease early, proving

their desire to operate at this location• Extremely cheap rent, only $5.10 / SF• Attractive 2.50% rent increase in 2020• 2 - 5 year options (7.50% rent increase in Option 1 and 10% rent

increase in Option 2)• Duffield is home to the Tempur-Pedic mattress production plant• Average Household Income in Dollar General’s “Sweet-Spot”• Ideal demographics for a discount retailer such as Dollar General

TENANT

• Dollar General is the only investment grade credit dollar store• S&P credit rating: BBB (raised from BBB- in late 2015)• Dollar General currently operates over 13,000 stores across the

U.S.• Dollar General is among the largest discount retailers in the

country



2

Investment Overview

EXECUTIVE SUMMARY354 Duff-Patt Road Duffield, VA 24244List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $578,300Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . ± 10,000 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.00 Acres (43,560 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 12/31/2019 $4,250.00 $51,000.00 $5.10 8.00%

1/1/2020 - 12/31/2024 $4,350.00 $52,200.00 $5.22 8.21%

Option 1 - 12/31/2029 $4,675.00 $56,100.00 $5.61 8.88%

Option 2 - 12/31/2034 $5,142.50 $61,710.00 $6.17 9.85%

Gross Potential Rent $51,000.00

Base Year Taxes (2000) $2,708

Base Year Insurance (2000) $2,028

Total Expenses $4,736

Net Operating Income $46,264


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Financial Overview

TENANT SUMMARYTenant Trade Name Dollar General

Type of Ownership Fee Simple

Lease Signature Corporate

Lease Type Base Year

Roof and Structure Landlord Responsible

Original Lease Term 8 Years

Lease Commencement Date 3/29/2000

Lease Expiration Date 12/31/2024

Term Remaining on Lease + 8.25 Years

Increases 2.50% in 2020, 7.50% in Option 1, 10% in Option 2

Options Two (2), Five (5) Year Options

Dollar General is the fast-growing retailer that boasts roughly 13,000 discount stores in over 44 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola.

The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company doesn’t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.

Property Name Dollar General

Parent Company Trade Name Dollar General Corporation

Ownership Public

Credit Rating BBB

Rating Agency Standard & Poor’s

Revenue $20.37 Billion

Net Income $1.17 Billion

Stock Symbol DG

Board NYSE

No. of Locations ± 13,000

No. of Employees ± 119,000

Headquartered Goodlettsville, TN

Web Site www.dollargeneral.com

Year Founded 1939

4

Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . Dollar GeneralProperty Address . . . . . . . . . . . . . . . . . . . . . 354 Duff-Patt Road Duffield, VA 24244

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . ± 10,000 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 1.00 Acres (43,560 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 30 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brick/MetalParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pitched


6

Property Overview

PROPERTY DESCRIPTION

Sta te Rte T 864 ± 12,000 ADT

Duff-Patt Road


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Bird’s Eye

8

Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 2,273 3,823 14,265

2016 Estimate 2,246 3,813 14,376

2010 Census 2,257 3,889 14,868

2000 Census 2,011 3,723 14,195

Households

2021 Projection 789 1,468 5,618

2016 Estimate 791 1,473 5,634

2010 Census 808 1,510 5,766

2000 Census 771 1,469 5,650

Income

$0 - $15,000 21.35% 20.48% 20.61%

$15,000 - $24,999 17.45% 17.36% 17.09%

$25,000 - $34,999 8.93% 9.59% 10.48%

$35,000 - $49,999 20.52% 19.96% 16.42%

$50,000 - $74,999 12.59% 13.64% 15.97%

$75,000 - $99,999 12.40% 11.98% 10.81%

$100,000 - $124,999 5.07% 4.90% 4.53%

$125,000 - $149,999 1.15% 1.37% 2.22%

$150,000 - $199,999 0.40% 0.38% 0.69%

$200,000 - $249,999 0.01% 0.09% 0.37%

$250,000 - $499,999 0.14% 0.24% 0.63%

$500,000+ 0.00% 0.03% 0.18%

2016 Est. Average Household Income $43,775 $44,686 $47,759

2016 Est. Median Household Income $36,663 $36,931 $36,665

11 DEMOGRAPHICS

Demographics Report

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City Overview

DUFFIELD, VIRGINIAJust north of the Virginia-Tennessee border, Duffield is a town situated along the Daniel Boone Wilderness Trail in Scott County, Virginia. The town is also conveniently located off of Route 23, making it easily accessible from anywhere in the tri-state area. While it has been a stopping point for travelers for centuries, Duffield also attracts visitors due to its proximity to Natural Tunnel State Park and Devil’s Bathtub.

Approximately a half hour drive southeast lies the city of Kingsport, Tennessee, which is commonly included in the Mountain Empire of Southwest Virginia.

KINGSPORT, TENNESSEE Kingsport, a typical Southern center in northeastern Tennessee, supports an assortment of industrial and agricultural activities. The area produces chemicals, forest products, glass, textiles and metal products. Holding the largest single industrial employer in the state, Eastman Chemical, Kingsport is also the largest city in the Kingsport-Bristol-Bristol, TN-VA metropolitan area.

Kingsport is a planned city with ample parkland and greenbelts as well as a fairly appealing downtown. The city strives to offer a quality atmosphere for its families and community, thereby making it a great place for families to live. Additionally, the city’s schools are among the best in Tennessee.

TOP EMPLOYERS - SCOTT COUNTY1. Scott County School Board

2. Joy Technologies

3. Tempur-Production

4. Food City

5. County of Scott

6. Videll Healthcare Duffield

7. VFP Inc.

8. Mountain Region Personal Care

9. Southwest Virginia Regional Jail Authority

10. Atwork Personnel Service

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

Dollar General354 Duff-Patt Road, Duffield, VA 24244

OFFERING MEMORANDUM

Andy KnightBroker of Record License No. 0225214094

Josh BishopVP & Director


Joe SchuchertAssociate


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