california sale-leaseback •••

OFFERING MEMORANDUM

7 INDIVIDUAL ASSETS BELOW MARKET RENTS 15-YEAR NNN LEASES WITH INCREASES

• • • C A L I F O R N I A S A L E - L E A S E B AC K • • •

2www.hanleyinvestment.com

OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY:

Carlos J. Lopez | Senior Vice [email protected]

949.585.7657BRE License # 00980904

Lee T. Csenar | Senior [email protected]

949.585.7636BRE License # 01858335

• • • C A L I F O R N I A S A L E - L E A S E B AC K • • •

3 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

The information contained herein does not purport to provide a complete or fully accurate summary of the Properties or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Properties or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. Owner has no legal commitment or obligations to any party reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.

This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

4

TABLE OF CONTENTS

SECTION I

EXECUTIVE SUMMARY Introduction 6

Portfolio Summary 7

Locations Map 8

Tenant Profile 9

Proposed Lease Summary 10

SECTION II

PROPERTIES California City 12

Mojave 13

Huron 14

Orosi 15

Orange Cove 16

Mendota 17

Firebaugh 18

CALIFORNIA CITY

C ALIFORNIA SALE-LEASEBACK7 Individual Assets

Below Market Rent

15-Year NNN Leases with Increases

FIREBAUGHMENDOTAORANGE COVE

OROSIMOJAVE

SECTION I - EXECUTIVE SUMMARY

HURON

6

INTRODUCTION

Hanley Investment Group, on behalf of Family Dollar, Inc. and any related subsidiaries (if applicable) as its exclusive advisor, is pleased to offer for sale the fee-simple interest in 7 individual Family Dollar California Sale-Leasebacks. The Properties will be net leased (NNN) to Family Dollar, a Fortune 300 company with over 8,100 stores in the United States (NYSE: FDO; S&P: BBB-). The Properties are located throughout the central and southern portions of the State of California, with heavy concentrations in California’s central valley, where Family Dollar is the dominant retailer. This Offering provides the exceptional opportunity to acquire multiple properties net-leased to one of the world’s fastest growing retailers.

The Family Dollar California Sale-Leaseback Offering consists of 7 Individual Family Dollar Store Properties which can be purchased individually. The proposed lease terms will be net leased to Family Dollar for a primary term of fifteen years with CPI (Consumer Price Index) increases in year 11 with 10% maximum. In addition, the leases will include four, five-year renewal options (CPI increases each option with 10% maximum). The Offerings feature well below market rents with an average net rental rate of $1.00 per square foot per month.

HIGHLIGHTS

y 7 Properties Available Individually

y Investment Grade Credit (NYSE: FDO; S&P: BBB-)

y New 15-Year Sale-Leasebacks; Corporate Guaranteed Leases

y Rare Increases in Initial Term; Four 5-Year Options with Increases

y NNN Leases; Tenant Pays for Ad Valorem Taxes, Insurance, Utilities, Repairs and Maintenance (including Roof and Structure)

y Below Market Rents; Average $1.00 per Square Foot per Month

y New Construction; Pride of Ownership Opportunity


PORTFOLIO SUMMARY

ADDRESS CITY COUNTY TOTAL SF

YEAR 1 NOI NNN LEASE

TERM INCREASES OPTIONS

9567 California City Blvd. California City Kern 8,334 $105,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

2343 Highway 58 Mojave Kern 8,453 $104,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

36301 S. Lassen Ave. Huron Fresno 8,428 $93,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

12835 Avenue 416 Orosi Tulare 8,366 $103,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

1150 Park Blvd. Orange Cove Fresno 8,367 $94,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

766 Derrick Ave. Mendota Fresno 8,437 $103,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

1020 N. Street Firebaugh Fresno 8,361 $106,000 NNN 15 Year 11 - CPI Increase (10% max) Four 5-year @ CPI Increase (10% max)

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8

CALIFORNIA

ARIZONA

NEVADAUTAH

PA

CI

FI

C O

CE

AN

SAN FRANCISCO

SACRAMENTO

LOS ANGELES

PHOENIX

SAN DIEGO

STOCKTON

SAN JOSE

SANTABARBARA

LAS VEGAS

NEWPORTBEACH

YUMATIJUANA MEXICALI

BISHOP

205

205

205

208

2017

2010

2040

2015

2015

101395

395

95

6

93

89

95

93

89

101

99

99

95

SANTA CRUZ

SAN LUISOBISPO CALIFORNIA

CIT Y

MOJAVE

OROSI

FRESNO

ORANGE COVEMENDOTA

FIREBAUGH

HURON

LOCATIONS MAP

N


TENANT PROFILE

Family Dollar (NYSE: FDO; S&P: BBB-) is one of the nation’s fastest growing retailers with over 8,100 stores in rural and urban settings across 46 states. Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10. Family Dollar has recently broadened its grocery offerings, including refrigerated and frozen food, milk and other perishables, as well as more quick-prep and ready-to-eat products while also increasing the number of brand-name goods it carries.

In fiscal 2014, Family Dollar opened 26 new stores and renovated, relocated or expanded 738 stores. Going forward, the fast-growing chain plans to open 375 new stores and renovate, relocate, or expand approximately 775 stores in fiscal 2015 (ends August). Founded in 1958 and headquartered in Matthews, North Carolina, just outside of Charlotte, Family Dollar is a Fortune 300 company, and has been publicly held corporation since 1970.

Company Type: Public NYSE: FDOS&P Credit Rating: BBB- (Investment Grade)Founded: 1959 - Matthews, North CarolinaFiscal Year End: August 20152013 Revenue: $10.49 BillionFortune 500 Ranking: 271Locations: 8,100+Employees: 58,000Websites: www.familydollar.com

10

PROPOSED LEASE SUMMARY

PROPOSED LEASE SUMMARY

Tenant/Guarantor: Family Dollar, Inc.

Rent Commencement: Upon Close of Escrow

Lease Type: NNN

Initial Lease Term: 15 Years

Initial Lease Term Increases: Year 11 - CPI Increase (10% max)

Renewal Options: Four (4) Five (5) Year @ CPI Increase Each Option (10% max)

NNN SUMMARY

Property Taxes: Paid by Tenant

Insurance: Paid by Tenant

Utilities: Paid by Tenant

Repairs and Maintenance: Paid by Tenant

Roof and Structure: Paid by Tenant

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12

OFFERING SUMMARY - CALIFORNIA CITY

CALIFORNIA CITY BOULEVARD

HA

CIEND

A B

OU

LEVARD

(Contact Hanley Investment Group for Further Details)

PROPOSED LEASE SUMMARYAddress: 9567 California City Boulevard

California City, CA 93505

Lease Term: New 15 Year Sale-Leaseback

Net Operating Income (NOI): $105,000

Rent per Square Foot per Month: $1.05


Options: Four 5-year @ CPI Increase Each Option (10% max)

Lease Type: NNN


BUILDING SUMMARY Total Square Footage: 8,334

Year Built: 2011

Lot Size (Acres): 1.24

Lot Size (Square Feet): 54,014

Parcel Number (APN): 208-381-02

PROPERTY OVERVIEW y Brand New 15-Year Lease with Corporate Guaranty (NYSE: FDO; S&P: BBB-)

y Rare Increase in Year 11; CPI Increase with 10% Maximum

y NNN Lease

y Over 12,000 People within 3 Miles; Household Income Over $59,000 within 1 Mile

y Situated on California City Boulevard near the Main Retail Corridor

y Adjacent Tenants Include AutoZone, AltaOne Credit Union, Dollar General Market, McDonald’s and Rite Aid

CITY HALL

LIBRARY

POLICE DEPARTMENT


OFFERING SUMMARY - MOJAVE


PROPOSED LEASE SUMMARYAddress: 2343 Highway 58

Mojave, CA 93502






Lease Type: NNN



Year Built: 2013






y NNN Lease

y Over 25,000 People within 5 Miles; Household Income Over $45,800 within 1 Mile

y Situated at State Route 14 (Connecting to Lancaster and Santa Clarita) and State Route 58 (Connecting to Barstow and Bakersfield)

y Mojave is Home to the Mojave Air and Space Port as well as the Hyundai-Kia Motors California Testing Facilities

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14

OFFERING SUMMARY - HURON

11TH STREET

LASSEN

AVEN

UE


PROPOSED LEASE SUMMARYAddress: 36301 S. Lassen Avenue

Huron, CA 93234






Lease Type: NNN



Year Built: 2012






y NNN Lease

y Over 6,800 People with Household Income Over $34,300 within 1 Mile

y Located on Lassen Avenue (State Route 269), the Main North/South Thoroughfare in Huron, which Connects to Interstate 5

y The Population of Huron nearly Triples during Harvest Season due to Influx of Farm Workers

HURON ELEMENTARY

SCHOOL

HURON COMMUNITY

PARK

LOS AMIGOS FOOD CENTER

AMIGO MARKET

POLICE DEPARTMENT

CITY HALL

FRESNO COUNTY FIRE STATION


OFFERING SUMMARY - OROSI

AVENUE 416

ROA

D 128


PROPOSED LEASE SUMMARYAddress: 12835 Avenue 416

Orosi, CA 93647






Lease Type: NNN



Year Built: 2013






y NNN Lease

y Over 22,500 People and Household Income Over $44,300 within 5 Miles

y Situated at the Main Intersection of Orosi at Avenue 416 (El Monte Way) and Road 128 (State Route 63)

y Located Only 12 Miles from Visalia along Road 128 (State Route 63)

OROSI HIGH SCHOOL

R-N MARKET

GOLDEN VALLEY SCHOOL

EL MONTE SCHOOL

16

OFFERING SUMMARY - ORANGE COVE

PARK BOULEVARD

JACO

BS CEN

TER STREET


PROPOSED LEASE SUMMARYAddress: 1150 Park Boulevard

Orange Cove, CA 93646






Lease Type: NNN



Year Built: 2013






y NNN Lease


y Situated on Park Boulevard, the Main Thoroughfare in Orange Cove

y Located Less than 25 Miles from Both Fresno to the North and Visalia to the South

AC MARKET

12TH STREET

CITRUS MINI MART

LIBRARY

CITY HALL

UNITED HEALTH CENTERS OF SAN JOAQUIN VALLEY

MCCORD ELEMENTARY

SCHOOL


OFFERING SUMMARY - MENDOTA

BELMONT AVENUE

DERRICK

AVEN

UE


PROPOSED LEASE SUMMARYAddress: 766 Derrick Avenue

Mendota, CA






Lease Type: NNN



Year Built: 2012






y NNN Lease

y 12,500 People and Household Income of $34,000 within 3 Miles

y Situated on Derrick Avenue (State Route 33), the Main North/South Thoroughfare in Mendota, which Connects to Interstate 5

y Adjacent to Mendota High School, Located at the Signalized Intersection of Derrick Avenue and Belmont Avenue

MENDOTA HIGH SCHOOL

MCCABE ELEMENTARY

SCHOOL

MENDOTA FOOD CENTER

MENDOTA JR HIGH SCHOOL

18

OFFERING SUMMARY - FIREBAUGH

13TH STREET

N STREET


PROPOSED LEASE SUMMARYAddress: 1020 N Street

Firebaugh, CA 93622






Lease Type: NNN



Year Built: 2013



Parcel Number (APN): 008-010-23S



y NNN Lease


y Situated along N Street (State Route 33), the Main Thoroughfare in Firebaugh, which connects to Interstate 5

y Located Approximately 30 Miles from the City of Fresno

FIREBAUGH MARKET

FIREBAUGH AIRPORT

ARTHUR MILLS INTERMEDIATE

SCHOOL

Prepared for 7/18/2015

(562) [email protected]: 01430358

Properties for Sale

Presented by Jesse LeeAmerica Realty Orange County

Property Details

Price $1,808,696

Building Size 8,453 SF

Price/SF $213.97 /SF

Property Type Retail

Property Sub-type Retail Pad

Additional Sub-types Free Standing BldgRetail (Other)

Property Use Type Investment

Cap Rate 5.75%

Tenancy Single

Status Active

Property Notes

1 2343 Highway 58, Mojave, CA 93501

Property Description

New 15-Year Sale-Leaseback; Corporate Guaranteed LeaseRare Increases in Initial Term; Four 5-Year Options with IncreasesNNN Lease; Tenant Pays for AdValorem Taxes, Insurance, Utilities, Repairs and Maintenance (including Roof & Structure)Investment Grade Credit (NYSE: FDO; S&P: BBB-)Below Market Rent;Average $1.02 per Square Foot per MonthNew Construction; Pride of Ownership Opportunity

Location Description

Other California Family Dollar Sale-Leaseback Properties include: California City | 9567 California City BoulevardMojave | 2343 Highway 58 Huron | 36301 S.Lassen AvenueOrosi | 12835 Avenue 416Orange Cove | 1150 Park BoulevardMendota | 766 Derrick AvenueFirebaugh | 1020 N. Street

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california sale-leaseback •••

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