Dg portfolio om rev5 2014 04-10

10 UNIT DOLLAR GENERAL PORTFOLIO

OFFERING MEMORANDUM

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SANDS INVESTMENT GROUP

SANDS-GROUP.COM 10 UNIT DOLLAR GENERAL PORTFOLIO

SANDS INVESTMENT GROUP | 2701 OCEAN PARK BLVD, SUITE 140 | SANTA MONICA, CA 90405

Table of Contents Exclusively Marketed By

Investment Summary

Tenant Profile

Portfolio Rent Roll

Portfolio Location Map

Property Overviews

Confidentiality Agreement

Sands Investment Group believes the information contained herein to be reliable. However, we make no guarantees, representations or warranties of any kind, expressed or implied regarding this information; including, but not limited to content, accuracy & reliability. Investors should consult a tax and legal advisor, as well as verify ALL information prior to the investment.

ELAN SIEDER Lic # 01928243

310.774.3753 | DIRECT

[email protected]

CHRIS SANDS Lic # 01387583

310.774.3773 | DIRECT

[email protected]

INVESTMENT SUMMARY 10 UNIT DOLLAR GENERAL PORTFOLIO

ASSUMABLE LOAN SUMMARY UNPAID PRINCIPAL BALANCE $10,121,510 ORIGINAL PRINCIPAL BALANCE $10,178,604 DOWN PAYMENT $7,278,490 INTEREST RATE 4.24% ANNUAL DEBT SERVICE $600,156 AMORTIZATION 30 Years MATURITY DATE January 1, 2018

OFFERING SUMMARY PRICE $17,400,000 NOI $1,111,803 CAP RATE 6.39% NET CASH FLOW $511,647 CASH ON CASH RETURN 7.03% COST/BUILDING SF $157.65

Sands Investment Group is pleased to exclusively offer for sale a portfolio of ten fee simple Dollar General locations located in Oklahoma, Illinois (x2), Indiana (DG Market), South Carolina, Florida (x2), Alabama, and Mississippi (x2). Each location offers an absolute triple net (NNN) lease with primary lease term of 15 years. The average remaining primary lease term of the portfolio is 12.8 years. All ten locations are new buildings with completion of construction occurring between August 2011 and December 2012. Eight of the ten locations offer base rent amount increases in year 11 of the lease. All ten locations offer 10% increases in the option periods. Each location is situated in a community that offers population and household income demographics that are ideal for Dollar General. The portfolio features existing CMBS debt at a 4.24% interest rate, 30 year amortization, maturing on January 1, 2018. The investor will make a down payment of $7,278,490. This allows the investor to capitalize on positive financial leverage that increases the current return to a 7.03% cash on cash return. Additionally, principal reduction at the end of each year will cause the investor to realize a 9.39% total return.

TENANT PROFILE

SANDS INVESTMENT GROUP | 310.774.3773 | [email protected]


Dollar General Corporation, incorporated in 1955, is a discount retailer in the United States by number of stores, with over 11,000 stores located in approximately 39 states as off 2013, primarily in the southern, southwestern, Midwestern and eastern United States.

The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company's merchandise includes national brands from manufacturers, as well as private brand selections with prices at substantial discounts to national brands. It offers its merchandise at everyday low prices through its convenient small-box (approximately 7,200 square feet) locations. During the fiscal year ended February 3, 2012 (fiscal 2011), it opened 625 stores and remodeled or relocated 575 stores, and closed 60 stores. Its small box stores offer consumable items, including packaged and refrigerated foods. The average Dollar General store has approximately 7,200 square feet of selling space. During fiscal 2011, its total store count included 69 Dollar General Market stores, which, in addition to the merchandise offering of a traditional Dollar General store, feature an expanded food section, including fresh meat and produce and more frozen and refrigerated foods. During fiscal 2011, it opened 12 Dollar General Markets, including seven as part of its initial entrance into Nevada. In addition to the Market stores, it is also testing a large format traditional store with approximately 10,000 square feet of selling space, including an expanded section of coolers and freezers.

DollarGeneral.com

RENT ROLL

TENANT NAME CITY, ST

SIZE MONTHLY RENT LEASE TERM

SQUARE FOOTAGE

% OF TOTAL

ANNUAL BASE RENT RENT / SF

% OF TOTAL

INCREASE DATES

RENTAL INCREASE LEASE BEGIN LEASE END OPTIONS

1. Dollar General

Tulsa, OK 9,026 8.18% $88,524 $9.81 7.96% 11/1/2021 $91,176 11/1/2011 10/31/2026 5 x 5 Yr

2. Dollar General

Dongola, IL 9,100 8.25% $80,928 $8.89 7.28% 9/5/2022 $83,355 9/5/2012 8/31/2027 4 x 5 Yr

3. Dollar General Coulterville, IL 9,100 8.25% $76,717 $8.43 6.90% 10/4/2021 $79,018 10/4/2011 9/30/2026 2 x 5 Yr

4. Dollar General Market

Bicknell, IN 20,707 18.76% $264,045 $12.75 23.75% 11/30/2022 $271,966 11/30/2012 10/31/2027 4 x 5 Yr

5. Dollar General Fair Play, SC 9,026 8.18% $68,910 $7.63 6.20% 12/1/2022 $70,977 12/1/2012 11/30/2027 3 x 5 Yr

6. Dollar General Holly Hill, FL 9,002 8.16% $114,903 $12.76 10.33% 10/13/2026 $126,393 10/13/2011 9/30/2026 4 x 5 Yr

7. Dollar General

Jacksonville, FL 9,002 8.16% $110,844 $12.31 9.97% 11/1/2026 $121,928 11/1/2011 10/31/2026 4 x 5 Yr

8. Dollar General

Parrish, AL 12,382 11.22% $136,838 $11.05 12.31% 8/1/2021 $140,943 8/1/2011 7/31/2026 5 x 5 Yr

9. Dollar General

Laurel, MS 12,382 11.22% $89,065 $7.19 8.01% 1/1/2022 $91,737 1/1/2012 12/31/2026 5 x 5 Yr

10. Dollar General Monticello, MS 10,640 9.64% $81,026 $7.62 7.29% 10/1/2021 $83,457 10/1/2011 9/30/2026 5 x 5 Yr

OCCUPIED SF 110,367 100% $1,111,800 $10.07 100% VACANT SF 0 0% $0 $0.00 0%

TOTAL / WTD AVG 110,367 100% $1,111,800 $10.07 100%



LOCATION MAP


LEGEND 1 Tulsa, OK 2 Dongola, IL 3 Coulterville, IL 4 Bicknell, IN 5 Fair Play, SC 6 Holly Hill, FL 7 Jacksonville, FL 8 Parrish, AL 9 Laurel, MS 10 Monticello, MS

LEASE SUMMARY

LEASE TERM 15 years

TENANT Dollar General Corporation

PREMISES A building of approximately 9,026 SF in Tulsa, OK

LEASE COMMENCEMENT November 1, 2011

LEASE EXPIRATION October 31, 2026

RENEWAL OPTIONS 5 x 5 Years

INCREASE DATE Years 11-15: $91,176 10% Increases in Option periods

LEASE TYPE Triple Net (NNN)

INSURANCE Paid by Tenant

MAINTENANCE & REPAIRS Paid by Tenant

PROPERTY TAXES Paid by Tenant

ROOF & STRUCTURE Paid by Tenant

UTILITIES Paid by Tenant

TULSA, OK

ESTIMATED OPERATING INFORMATION INCOME

GROSS POTENTIAL RENT $88,524

EXPENSE REIMBURSEMENT NNN

EFFECTIVE GROSS INCOME $88,524

LESS EXPENSES NNN

NET OPERATING INCOME $88,524


TULSA, OK


DEMOGRAPHICS 1 - MILE 3 - MILE 5 - MILE

POPULATION ESTIMATE 8048 52,964 120,639

AVERAGE H.H. INCOME $30,147 $34,928 $47,293

TRAFFIC COUNT Mohawk Blvd. 13th E. Ave.

VEHICLES PER DAY 2,600 12,400 Traffic count recorded by ©2011 MPSI Systems Inc. d.b.a. DataMetrix®

PROPERTY OVERVIEW

•  15 Year Absolute NNN Lease- Zero Landlord Responsibilities

•  Corporate Guarantee- NYSE: DG

•  S & P -“BBB-“ Investment Grade Tenant

•  5 x 5 Year Options- 3 % Increase In Rent Starting Year 11

•  10 % Increase in Rent at Each Option

•  Peoria Ave. Runs Through Gilcrease Hwy

•  Located Just West of Hwy 75

Tulsa is located close to the center of Oklahoma between the Tulsa, Osage,

Wagoner, Rogers and Creek counties. Tulsa has 196.75 square miles of

land area and 4.23 square miles of water area. As of 2010, the total Tulsa

population was 391,906, which has shrunk 0.29% since 2000. Tulsa median

household income was $40,781 in 2008-2012 and has grown by 15.47%

since 2000. The income growth rate is much lower than the state average

rate of 34.40% and is much lower than the national average rate of 26.32%.

Tulsa median house value was $121,700 in 2008-2012 and has grown by

45.57% since 2000. The house value growth rate is lower than the state

average rate of 56.72% and is lower than the national average rate of

51.67%.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 9,100 SF in Dongola, IL

LEASE COMMENCEMENT September 5, 2012

LEASE EXPIRATION August 31, 2027


INCREASE DATE Years 11-15: $83,355.96 10% increases in Option periods







DONGOLA, IL






LESS EXPENSES NNN


DONGOLA, IL



POPULATION ESTIMATE 831 831 2,248


TRAFFIC COUNT Front St. HWY 51


PROPERTY OVERVIEW





•  10 % Increase in Rent at Each Option Period

•  Located Just West of Hwy 57

Dongola is located in south Illinois in between Union, Alexander and Pulaski

counties. Dongola has 1.09 square miles of land area and 0.06 square

miles of water area. As of 2010, the total Dongola population was 726.

Dongola median household income is $40,250 in 2008-2012 and has grown

by 64.02% since 2000. The income growth rate is much higher than the

state average rate of 22.03% and is much higher than the national average

rate of 26.32%. Dongola median house value was $64,400 in 2008-2012

and has grown by 61.40% since 2000. The house value growth rate is

higher than the state average rate of 45.87% and is higher than the national

average rate of 51.67%.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 9,100 SF in Coulterville, IL

LEASE COMMENCEMENT October 4, 2011

LEASE EXPIRATION September 30, 2026


INCREASE DATE Years 11-15: $79,018 10% increases in Option periods







COULTERVILLE, IL






LESS EXPENSES NNN


COULTERVILLE, IL



POPULATION ESTIMATE 726 1,552 3,336


TRAFFIC COUNT State Rte 13 State Rte. 153


PROPERTY OVERVIEW





•  10% Increase in Rent at each Option

Coulterville is located in south Illinois in between Randolph, Perry, and

Washington counties. As of 2010, the total Coulterville population was 945.

Coulterville median household income was $33,750 in 2008-2012 and has

grown by 26.05% since 2000. The income growth rate is higher than the

state average rate of 22.03% and is about the same as the national

average rate of 26.32%. Coulterville median house value was $72,600 in

2008-2012 and has grown by 61.33% since 2000. The house value growth

rate is higher than the state average rate of 45.87% and is higher than the

national average rate of 51.67%. As a reference, the national Consumer

Price Index (CPI) inflation rate for the same period is 26.63%. On average,

the public school district that covers Coulterville is close to the state

average in quality.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 20,707 SF in Bicknell, IN











BICKNELL, IN






LESS EXPENSES NNN


701 E. 11TH ST

BICKNELL, IN


701 E. 11TH ST

PROPERTY OVERVIEW




•  4 x 5 Year Options- 3 % Increase in Rent Starting Year 11

•  10% Increase In Rent at Each Option

•  Nearby Retailers Include McDonalds and H & R Block

Bicknell is located in southwest Indiana in Knox County. Bicknell has 1.35

square miles of land area and has no water area. As of 2010, the total

Bicknell population was 2,915. Bicknell’s median household income was

$25,469 in 2008-2012 and has grown by 10.51% since 2000. The income

growth rate is much lower than the state average rate of 16.38% and is

much lower than the national average rate of 26.32%. Bicknell median

house value is $55,000 in 2008-2012 and has grown by 30.33% since

2000. The house value growth rate is about the same as the state average

rate of 30.86% and is much lower than the national average rate of 51.67%.

On average, the public school district that covers Bicknell is close to the

state average in quality.


POPULATION ESTIMATE 3,077 4,033 4,605


TRAFFIC COUNT 11th Ave. Miami St.


LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 9,026 SF in Fair Play, SC

LEASE COMMENCEMENT December 1, 2012

LEASE EXPIRATION November 30, 2027


INCREASE DATE Years 11-15: $70,977 10% increases in Options periods







FAIR PLAY, SC






LESS EXPENSES NNN


FAIR PLAY, SC



POPULATION ESTIMATE n/a 2,565 7,106

AVERAGE H.H. INCOME n/a $64,879 $59,372

TRAFFIC COUNT State Hwy 182 Fairplay Blvd.


PROPERTY OVERVIEW




•  3 x 5 Year Options- 3% Increase in Rent Starting Year 11

•  10 % Increase in Rent at Each Option Period

Fair Play is located in west South Carolina, between Oconee, Anderson

counties. Fair Play has 6.74 square miles of land area and 0.02 square

miles of water area. As of 2010, the total Fair Play population was 687. Fair

Play median household income was $57,986 in 2008-2012. Fair Play

median house value was $102,600 in 2008-2012. On average, the public

school district that covers Fair Play is much better than the state average in

quality. The Fair Play area code is 864.

LEASE SUMMARY

LEASE TERM 15 years

TENANT Dollar General Corporations

PREMISES A building of approximately 9,002 SF in Hilly Hill, FL




INCREASE DATE Option #1: $126,393







HOLLY HILL, FL






LESS EXPENSES NNN


1800 NORTH NOVA RD

HOLLY HILL, FL


1800 NORTH NOVA RD




TRAFFIC COUNT Nova Rd 15th St.


PROPERTY OVERVIEW




•  4 x 5 Year Options- 10 % Increase in Rent at Each Option Period

•  Strong Traffic Counts- Approximately 30,000 Cars Per Day

•  Alongside Holly Hill Elementary School and Riviera Country Club

Holly Hill is located close to the center of Florida and is part of Volusia

County. Holly Hill has 3.93 square miles of land area and 0.64 square miles

of water area. As of 2010, the total Holly Hill population was 11,659. Holly

Hill median household income was $26,992 in 2008-2012 and has grown by

1.28% since 2000. The income growth rate is much lower than the state

average rate of 21.87% and is much lower than the national average rate of

26.32%. Holly Hill median house value is $95,300 in 2008-2012 and has

grown by 45.94% since 2000. The house value growth rate is lower than

the state average rate of 61.90% and is lower than the national average

rate of 51.67%. On average, the public school district that covers Holly Hill

is close to the state average in quality.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 9,002 SF in Jacksonville, FL




INCREASE DATE Option #1: $121,928







JACKSONVILLE, FL






LESS EXPENSES NNN


JACKSONVILLE, FL





TRAFFIC COUNT New Kings Rd. Trout Rd.


PROPERTY OVERVIEW




•  4 x 5 year Options- 10% Increase in Rent at Each Option

•  Located a Few Blocks northeast of W Beltway 295 & Hwy 23

Jacksonville is located in north Florida in between the Duval, Saint Johns,

Baker, Clay and Nassau counties. Jacksonville has 747.00 square miles of

land area and 127.63 square miles of water area. As of 2010, the total

Jacksonville population was 821,784, which has grown 11.71% since 2000.

The population growth rate is higher than the national average rate of

9.71%. Jacksonville median household income was $48,143 in 2008-2012

and has grown by 19.41% since 2000. The income growth rate is lower

than the state average rate of 21.87% and is lower than the national

average rate of 26.32%. Jacksonville median house value is $157,200 in


rate is higher than the state average rate of 61.90% and is much higher

than the national average rate of 51.67%.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 12,382 SF in Parrish, AL

LEASE COMMENCEMENT August 1, 2011

LEASE EXPIRATION July 31, 2026









PARRISH, AL






LESS EXPENSES NNN


PARRISH, AL





TRAFFIC COUNT State Rte. 269 Coal Creek Rd.


PROPERTY OVERVIEW






•  Adjacent to Parrish High School

Parrish is located in northern Alabama in Walker County. The total Parrish

population is 982. Parrish median household income was $28,077 in

2008-2012 and has grown by 29.32% since 2000. The income growth rate

is higher than the state average rate of 26.44% and is higher than the

national average rate of 26.32%. Parrish median house value was $51,100

in 2008-2012 and has grown by 21.38% since 2000. The house value

growth rate is much lower than the state average rate of 43.71% and is

much lower than the national average rate of 51.67%. On average, the

public school district that covers Parrish is close to the state average in

quality.

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately12,382 SF in Laurel, MS

LEASE COMMENCEMENT January 1, 2012

LEASE EXPIRATION December 31, 2026









LAUREL, MS






LESS EXPENSES NNN


LAUREL, MS





TRAFFIC COUNT 16th Ave. Woodlawn Dr.


PROPERTY OVERVIEW



•  S & P -“BBB-“ Investment Grade Tenant’



•  Surrounded by Dixie Golf Club & Laurel Country Club

•  Two Freeways Within Close Proximity to the Site

•  Adjacent to Gardiner Shopping Center

Laurel is located in south Mississippi. Laurel is between the Jones, Jasper,

Wayne county. As of 2010, the total Laurel population was 18,540, which

has grown 0.80% since 2000. The population growth rate is lower than the

state average rate of 4.31% and is much lower than the national average

rate of 9.71%. Laurel median household income was $29,152 in 2008-2012

and has grown by 16.66% since 2000. The income growth rate is lower

than the state average rate of 24.10% and is much lower than the national

average rate of 26.32%. Laurel median house value is $78,700 in


rate is higher than the state average rate of 40.34% and is about the same

as the national average rate of 51.67%

LEASE SUMMARY

LEASE TERM 15 years


PREMISES A building of approximately 10,640 SF in Monticello,MS











MONTICELLO, MS






LESS EXPENSES NNN


MONTICELLO, MS





TRAFFIC COUNT Broad St. State HWY 27


PROPERTY OVERVIEW






•  Located Just South Of Hwy 84

•  Centrally Located Next to US Post Office and Fred’s

•  Rod Paige Middle School and Lawrence County High School Within a

Mile

Monticello is located in south Mississippi, in between Lawrence and Lincoln

counties. As of 2010, the total Monticello population was 1,571. Monticello

median household income was $32,727 in 2008-2012 and has grown by

20.72% since 2000. The income growth rate is lower than the state average

rate of 24.10% and is lower than the national average rate of 26.32%.

Monticello median house value was $81,100 in 2008-2012 and has grown

by 27.52% since 2000. The house value growth rate is lower than the state

average rate of 40.34% and is much lower than the national average rate of

51.67%. On average, the public school district that covers Monticello is

better than the state average in quality.

CONFIDENTIALITY AGREEMENT

310.774.3773 | [email protected] | 2701 OCEAN PARK BLVD, SUITE 140 | SANTA MONICA, CA 90405


The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, 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. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes 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.

SANDS INVESTMENT GROUP

By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

310.774.3773 | F: 844.328.5905 | In Partnership with KW Commercial | [email protected] | 2701 OCEAN PARK BLVD, SUITE 140 | SANTA MONICA, CA 90405

Exclusively Marketed By:

ELAN SIEDER CHRIS SANDS CA # 01928243

CA # 01387583

310.774.3753 | DIRECT 310.774.3773 | DIRECT

[email protected] [email protected]

Dg portfolio om rev5 2014 04-10

Real Estate