Offering Memorandum

Dollar General 48350 Highway 9 | Earlsboro, OK 74840 Corporate Guaranty | New Construction

Representative Photo

Stan Johnson Company6120 S Yale Ave Suite 300 Tulsa, Oklahoma 74136

www.stanjohnsonco.com

Gill Warner, CCIM Senior Director gwarner@stanjohnsonco.com P: +1 918.494.2690 OK Lic #131858

Sharon Jordan Senior Analyst sharon@stanjohnsonco.com P: +1 918.494.2690

Offered Exclusively by

Confidentiality and Restricted Use Agreement

This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

Dollar General | Earlsboro, OK 3

The Offering

Investment HighlightsPurchase Price: $1,049,829 Cap Rate: 7.00%

Investment-Grade Credit The lease is guaranteed by Dollar General Corporation (S&P: BBB/Stable). As of February 3, 2017, Dollar General Corporation reported total revenues of $21.9 billion, a net income of $1.2 billion and a net worth in excess of $5.4 billion.

New Construction with Long-Term Lease The property is a brand new construction with new fifteen (15) year lease terms with approximately 14 years remaining on the lease term.

Renewal Options with Increases The lease has four (4), five (5) year renewal options with 10% increases in each option.

Good Demographics The property is in Earlsboro, Oklahoma and has a population of +/- 3,984 and household income of +/- $68,192 within a 5-mile radius, which is good for this type property.

Unique Competitive Advantage The property is the only major grocery-related retailer in its location and has a traffic count of over 5,000 VPD.

Stan Johnson Company Company is pleased to offer for sale a Dollar General property located in Earlsboro, Oklahoma.

The lease is triple net and guaranteed by Dollar General Corporation. It is a new construction with a 15-year lease term that has four (4), five (5) year renewal options with 10% increases in each option period.

As of February 3, 2017, Dollar General Corporation (NYSE: DG) reported total revenues in excess of $21.9 billion, a net income in excess of $1.2 billion, and a net worth in excess of $5.4 billion. Dollar General Corporation currently holds a Standard & Poor’s credit rating of BBB/Stable.

Subject Property, Earlsboro, OK

Advance Auto Parts | Portfolio of 3 | OK 4

Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General was founded in 1939 by Cal Turner in Scottsville, Kentucky as J.L. Turner & Son, Inc. In 1968 the business changed its name to Dollar General Corporation. In 2007 the company was acquired by the private equity firm Kohlberg Kravis Roberts & Co. (KKR), which took the company public in 2009.

Dollar General offers both name-brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Many of its offerings are priced at more than one dollar. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars.

Dollar General has thrived during the economic recovery of the last several years and their stock has increased 21.48% in the past 12 months. They have reported a twenty-fourth consecutive year of same-store sales growth in 2015 and overall sales grew by 7.9%.

As of February 3, 2017, it operated 13,320 stores located in 43 states. Citing Dollar General’s positive operating momentum, healthy sales and expected cash flow growth, the company currently holds an investment grade rating of BBB/Stable with Standard & Poor’s.

Dollar General Corporation (NYSE: DG) reported annual total revenues of $21.98 billion, a net income of $1.25 billion, and a net worth in excess of $5.41 billion.

Tenant Overview

Tenant Credit Summary

Company: Dollar General Corp.Number of Locations: 13,320Credit Rating: S&P: BBB/StableStock Symbol: DGExchange: NYSEYTD Total Revenue: $21.98 BillionYTD Net Income: $1.25 BillionYTD Net Worth: $5.41 BillionTenant Business: Discount, Variety storeFounded: 1939Headquartered: Goodlettsville, TennesseeWebsite: www.dg.com

Dollar General | Earlsboro, OK 5

Earlsboro, Oklahoma

Lease Abstract

Address: 48350 Highway 9 | Earlsboro, OK 74840

Guarantor: Dollar General Corporation

Store Number: 48350

Store Type: Free Standing

Bldg. Size: 9,100 SF

Year Built: 2016

Land Area: 1.80 acres

Lease Term: 15 Years

Remaining Lease Term: +/- 14 Years

Lease Commencement: May 11, 2016

Lease Expiration: May 31, 2031

Renewal Options: Four (4), Five (5) Year Renewal Options

Expenses: NNN

Rent Schedule

Period Annual Amount % Increase

Years 1-15 (Current) $73,488 N/A

Years 16-20 (Option 1) $80,844 10%

Years 21-25 (Option 2) $88,932 10%

Years 26-30 (Option 3) $97,824 10%

Years 31-35 (Option 4) $107,604 10%

Subject Property

Earlsboro, Oklahoma

Cincinnati, Ohio

Earlsboro is a town in Pottawatomie County, Oklahoma and the population was 628 at the 2010 census. The cost of living in Earlsboro is 19.9% lower than the U.S. average.

Shawnee is a city in Pottawatomie County, the population was 31,543 in 2014. The city is part of the Oklahoma City-Shawnee Combined Statistical Area; it is also the county seat of Pottawatomie County and the principal city of the Shawnee Micropolitan Statistical Area. With access to Interstate 40, Shawnee is about 45 minutes east of the attractions in downtown Oklahoma City.

Shawnee is the home of St. Gregory's University, a Benedictine Catholic institution founded in 1875. Oklahoma Baptist University was founded in 1910. The city was also chosen by the founders of OBU in part because two Baptist Conventions (one in Indian Territory and one in Oklahoma Territory) had merged in the period of Oklahoma being admitted as a state to the Union.

The Heart of Oklahoma Exposition Center, opened in 1981, now boasts 152,400 square feet of exhibit space, a 19,200-square-foot indoor arena that seats 1,000, an outdoor arena seating 7,500, and an RV park, all on 72 acres. Since 1993, the O.E. Center has been the host of the International Finals Youth Rodeo (IFYR), the "richest youth rodeo in the world," with a total prize payout of over $250,000; over 1,100 young riders register for the event each year.

The Citizen Potawatomi Nation, the ninth largest Native American tribe in the United States with 26,000 members, is headquartered between Shawnee and Tecumseh. Their Firelake Casino features over 125,000 square feet of gaming space and employs 1,800 people.

Santa Fe Depot Shawnee OK

Dollar General | Earlsboro, OK 7

US HWY 270 (+/- 5,023 VPD)

ST

HW

Y 9

A (+

/- 850

VP

D)

EARLSBORO ELEMENTARY

SCHOOL

POTTAWOTOMIE TELEPHONE

EARLSBORO TAG AGENCY

EARLSBORO KWICK STOP

DAVID'S CAFE

N

SEMINOLE, OK +/- 8 MILES

SHAWNEE, OK +/- 12 MILES

Dollar General | Earlsboro, OK 8

Demographics 48350 Highway 9, Earlsboro, OK 74840 0 - 3 mi. 0 - 5 mi. 0 - 10 mi.

Population

2016 Population 1,434 3,984 49,464

2021 Population 1,562 4,271 51,039

2010-2016 Annual Rate 3.28% 1.73% 0.59%

2016-2021 Annual Rate 1.72% 1.40% 0.63%

Households

2016 Total Households 527 1,495 19,362

2021 Total Households 577 1,607 19,994

2010-2016 Annual Rate 3.46% 1.85% 0.60%

2016-2021 Annual Rate 1.83% 1.46% 0.64%

2016 Average Household Income $71,322 $68,192 $54,103

2016 Median Household Income $55,241 $52,857 $39,112

Dollar General | Earlsboro, OK 9

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company6120 South Yale Avenue | Suite 300Tulsa, Oklahoma 74136 P: 918.494.2690

www.stanjohnsonco.com

Gill Warner, CCIMSenior Directorgwarner@stanjohnsonco.com

P: 918.494.2690

OK Lic #131858

Sharon JordanSenior Analystsharon@stanjohnsonco.com

P: 918.494.2690