Dollar General | New Bloomfield, PAOffering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

Actual Site

EXCLUSIVE LISTINGOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

Dollar General | New Bloomfield, PA

Dollar General | New Bloomfield, PAOffering Memorandum

540 Shermans Valley Rd | New Bloomfield, PA

Asking Price $1,590,000 | Cap Rate 6.50%

Net Operating Income (NOI) $103,260

Rent/Month $8,605

Rent/SF $11.44

Rentable Square Feet 9,026+/- SF

Land Area 2.01+/- Acres

Tenant Name Dollar General

Credit Rating S&P: BBB

Stock Symbol NYSE: DG

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NNN

Landlord Responsibilities None

Year Built 2016

Lease Term Remaining 13+ Years

Rent Commencement June 24, 2016

Lease Expiration June 31, 2031

Increases 10% Every 5 Years in Option Periods

Options Three (3), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly Rent7/24/2016 – 7/31/2031 - $103,260.00 $8,605.00

8/1/2031 – 7/31/2036 (Option 1)

10% $113,586.00 $9,465.50

8/1/2036 – 7/31/2041 (Option 2)

10% $124,944.60 $10,412.05

8/1/2041 – 7/31/2046 (Option 3)

10% $137,439.06 $11,453.26

Investment Highlights • 13+ years remaining on primary lease term

• 10% structured rent increases every 5 years in the option periods

• Absolute NNN lease terms

• New 2016 construction

• Investment grade credit (S&P: BBB)

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Financial Summary

Dollar General | New Bloomfield, PAOffering Memorandum

Founded in 1939, the company first went public under the Dollar General name in 1968 and grew to more than 6,000 stores with $6 billion in sales by the early 2000’s.

Dollar General is well-positioned to serve its customers with value and convenience given its plans to open approximately 1,000 new stores in 2017. To strengthen its position for the long term, Dollar General is making significant investments, primarily in compensation and training for store managers given the critical role this position plays in their customer experience, as well as strategic initiatives.

The company ranks 159th within the Fortune 500 list. Fiscal 2016 revenues exceeded $22.0 billion with a net income of $1.17 billion, and net worth of $5.3 billion.

About Dollar GeneralDollar General (NYSE: DG) is a chain of more than 12,500+ discount stores in 43 states, offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, clothing for the family, housewares and seasonal items at low everyday prices in convenient neighborhood locations. In addition to high quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo. Dollar General has more stores than any other retailer and is easily the largest dollar store chain.

Tenant Snapshot

# of Locations 12,500+

Employees 114,000

Distrution Centers14

Fiscal 2016 Sales $22B

Stock SymbolNYSE: DG

Credit Rating S&P: BBB

On a Friday in April, Bob Tharp, the mayor of Decatur, Ark., takes me to see what used to be the commercial heart of his town. There isn’t much to look at beyond the husk of a Walmart Express: 12,000 square feet of cinder block painted in different shades of brown. The glass doors are locked, as they’ve been for 14 months. “For so many people in this town, to have to see this empty building every day, they couldn’t drive by without getting tears in their eyes,” Tharp recalls. The store had opened on a frigid morning in January 2015, just days into his mayorship. “Pinch yourself and it is true,” he’d posted on Facebook the night before. For the first time in a decade, the 1,788 residents could buy groceries in town. But the reprieve was short. The following January, word came from Wal-Mart Stores Inc.’s corporate headquarters, 18 miles to the east in Bentonville, that within the month the store would be closed...

Read Full Story Here: www.bloomberg.com

Dollar General Hits a Gold Mine in Rural AmericaIn the poorest towns, where even Wal-Mart failed, the little-box player is turning a profit. By Mya Frazier

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Tenant Overview

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Distance To:Harrisburgh, PA 26 miles

Philadelphia, PA 133 miles

Pittsburgh, PA 193 miles

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Philadelphia, PA

Baltimore, MD

Harrisburg, PA

New Bloomfield, PAPittsburgh, PA

Youngstown, OH

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Dollar General | New Bloomfield, PAOffering Memorandum

Jacksonville

Location Overview

Subject Site

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540 Shermans Valley Rd | New Bloomfield, PA

Dollar General | New Bloomfield, PAOffering Memorandum

Shermans Valley Rd 6,200 VPD

W Main St

New Bloomfield Elementary

School

New Bloomfield Public Library

PennDOT Engineering

HyTek Computer Solutions

Subject Site

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Dollar General | New Bloomfield, PAOffering Memorandum

Shermans Valley Rd 6,200 VPD

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Site Plan

Dollar General | New Bloomfield, PAOffering Memorandum

Radius 3 Miles 5 Miles 10 MilesPopulation2017 Population 3,695 9,137 32,906

2022 Population 3,825 9,368 33,286

2010-2017 Annual Rate 0.85% 0.57% 0.20%

2017-2022 Annual Rate 0.69% 0.50% 0.23%

2017 Male Population 51.6% 51.0% 50.4%

2017 Female Population 48.4% 49.0% 49.6%

2017 Median Age 42.5 43.4 42.4

Households2017 Total Households 1,342 3,443 12,733

2022 Total Households 1,394 3,536 12,887

2010-2017 Annual Rate 0.95% 0.61% 0.20%

2017-2022 Annual Rate 0.76% 0.53% 0.24%

2017 Average Household Size 2.49 2.55 2.54

Median Household Income2017 Median Household Income $60,923 $60,857 $57,744

2022 Median Household Income $70,933 $70,530 $65,896

2017-2022 Annual Rate 3.09% 2.99% 2.68%

Average Household Income2017 Average Household Income $74,902 $74,461 $69,769

2022 Average Household Income $87,302 $86,818 $81,059

2017-2022 Annual Rate 3.11% 3.12% 3.05%

Per Capita Income2017 Per Capita Income $29,411 $28,841 $27,312

2022 Per Capita Income $33,968 $33,512 $31,682

2017-2022 Annual Rate 2.92% 3.05% 3.01%

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Demographics

Demographics | 5 Mile Radius

Dollar General | New Bloomfield, PAOffering Memorandum

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AGE PYRAMID

Dollar General | New Bloomfield, PAOffering Memorandum

Quick Facts About New Bloomfield

Economy The unemployment rate in New Bloomfield (zip 17068) is 4.80 percent (U.S. avg. is 5.20%). Recent job growth is Positive. New Bloomfield (zip 17068) jobs have Increased by 1.91 percent.

Cost of Living Compared to the rest of the country, New Bloomfield (zip 17068)’s cost of living is 4.60% Lower than the U.S. average.

Population As of 2014, New Bloomfield (zip 17068)’s population is 4,489 people. Since 2000, it has had a population growth of 40.68 percent.

Transportation Average Commute time is 22 minutes. The National Average is 26 minutes.

Real Estate The median home cost in New Bloomfield (zip 17068) is $152,600. Home appreciation the last 10 years has been 1.49%.

Schools New Bloomfield (zip 17068) public schools spend $13,030 per student. The average school expenditure in the U.S. is $12,383. There are about 14.5 students per teacher in New Bloomfield (zip 17068).

New Bloomfield Ranked & Rated#1 America’s Migraine Hot Spots

#7 America’s Best and Worst Cities for Crime (Large Metro Areas)

#14 Second Annual “America’s Manliest Cities” Rankings

#19 America’s Least Manly Cities

#21 Best Green Cities

Market Overview

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Dollar General | New Bloomfield, PAOffering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Fort Lauderdale200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

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