family dollar 184 main street woodville, ms

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OFFERING MEMORANDUM

Representative Photo

Marcus & Millichap hereby advises all prospectivepurchasers of Net Leased property as follows:

The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verifyany of this information, nor has Marcus & Millichapconducted any investigation regarding these matters.Marcus & Millichap makes no guarantee, warranty orrepresentation whatsoever about the accuracy orcompleteness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information beforecompleting any purchase. This Marketing Brochure is nota substitute for your thorough due diligence investigationof this investment opportunity. Marcus & Millichapexpressly denies any obligation to conduct a due diligenceexamination of this Property for Buyer.

Any projections, opinions, assumptions or estimates usedin this Marketing Brochure are for example only and donot represent the current or future performance of thisproperty. The value of a net leased property to youdepends on factors that should be evaluated by you andyour tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independentinvestigation of any net leased property to determine toyour satisfaction with the suitability of the property foryour needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financialadvisors must request and carefully review all legal andfinancial documents related to the property and tenant.While the tenant’s past performance at this or otherlocations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for

some properties, including newly-constructed facilities ornewly-acquired locations, may be set based on a tenant’sprojected sales with little or no record of actualperformance, or comparable rents for the area. Returnsare not guaranteed; the tenant and any guarantors mayfail to pay the lease rent or property taxes, or may fail tocomply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of allmatters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihoodof locating a replacement tenant if the current tenantshould default or abandon the property, and the leaseterms that Buyer may be able to negotiate with apotential replacement tenant considering the location ofthe property, and Buyer’s legal ability to make alternateuse of the property.

By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services andhold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchaseof this net leased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving itfrom Marcus & Millichap and should not be made availableto any other person or entity without the written consentof Marcus & Millichap. This Marketing Brochure has beenprepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The informationcontained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not madeany investigation, and makes no warranty orrepresentation, with respect to the income or expenses for

the subject property, the future projected financialperformance of the property, the size and square footageof the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos,the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, orany tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in thisMarketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conductedany investigation regarding these matters and makes nowarranty or representation whatsoever regarding theaccuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verifyall of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsedby any commercial tenant or lessee identified in thismarketing package. The presence of any corporation’slogo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, saidcorporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M,and is solely included for the purpose of providing tenantlessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENTONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAPAGENT FOR MORE DETAILS.

CONFIDENTIALITY AND DISCLAIMER

Table of Contents

Investment Overview

Investment Overview 5

Family Dollar Overview 6

Family Dollar Fact Sheet 7

Family Dollar Stock Information 8

Pricing and Financial Analysis

Financial Overview 10

Recent Sales Comparables 11

Property Overview

Location Overview 13

Aerial Photo 14

Property Photos 15

Regional Map 16

State Map 17

Demographics

Demographic Report 19

I N V E S T M E N T O V E R V I E W

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap Activity ID Number W0331079 5

Investment Grade Credit

Family Dollar has a Standard & Poor Investment Grade Rating of BBB- andis ranked number 301 in Fortune 500. They have proven success that can beseen with their stock finishing as the top performer on the S&P 500 with$8.5 billion in sales in 2008 and more than $388 million in earnings in fiscal2011.

Property Name Family Dollar

Location184 Main Street

Woodville, MS

Price $794,286

CAP Rate 8.75%

NOI $69,500

Price/SF $99.29

Building Size 8,000 SF

Lot Size 0.91 Acres

Year Built/Renovated 2010 Renovation

Executive Summary | Investment Highlights

Marcus & Millichap is pleased to present the exclusive listing for aFamily Dollar located at 184 Main Street in Woodville, Mississippi.The property consists of 8,000 square feet of building space andsits on 0.91 acres of land.

The property is subject to a double net (NN) lease. The base rent is$69,500 with over six years remaining in the original lease term andsix, five-year option periods.

Family Dollar is one of the fastest growing discount store chains inthe United States. Their merchandising strategy is what drives theirgrowth and provides customers with attractive values on basicgoods for the family and home in a small-box, neighborhoodformat. The company has been a publicly held corporation since1970 and its common stock is listed on the New York StockExchange under the ticker symbol FDO.

Investment Overview

6

Executive Summary

Family Dollar Overview

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap Activity ID Number W0331079

When it comes to getting value for everydayitems for the entire family in an easy to shop,neighborhood location, Family Dollar is thebest place to go. One of the nation’s fastestgrowing retailers, Family Dollar offers acompelling assortment of merchandise for thewhole family ranging from household cleanersto name brand foods, from health and beautyaids to toys, from apparel for every age tohome fashions, all for everyday low prices.While shoppers can find many items at $1 orless, most items in the store are priced below$10, which makes shopping fun withoutstretching the family budget.

When the company opened its first store in November 1959 in Charlotte,North Carolina, nothing sold for more than $2. Now, more than 50 yearslater; Family Dollar has grown to more than 8,100 stores in 46 states withsales in excess of $10 billion. Over time, the merchandise mix has evolved,but the principal that drives the business the same – satisfy the customerand the customer will return.

As shoppers enter their neighborhood Family Dollar, they’ll find great valueson the name brands they trust in a clean, well-organized store staffed withfriendly team members who are members of the local community. Theaverage size of a Family Dollar store is approximately 7,000 square feet, andmost stores are operated in leased facilities. This relatively small footprintallows the company to open new stores in rural areas and small town, aswell as in large urban neighborhoods. Within these markets, the stores arelocated in shopping centers or as free-standing building and all areconvenient to the company’s customer base.

Concept Overview

Family Dollar is headquartered in Matthews, North Carolina, just outside ofCharlotte and has been a publicly held corporation since 1970. Its commonstock is listed on the New York Stock Exchange under the ticker symbolFDO. The stores generally serve customers who live within three to fivemiles of the store. Approximately 24 percent of Family Dollar stores arelocated in large urban markets, while roughly 20 percent of its stores arelocated in small urban markets or suburban areas. Family Dollar’s targetcustomer is women in their forties shopping for a family earning less than$40,000 a year.

The company sells brands from leading manufacturers including Procter &Gamble, Coca-Cola, Unilever, Nestle, Kimberly Clark, Clorox, ColgatePalmolive, Georgia Pacific, Frito-Lay, and PepsiCo, which are sold at higherprices elsewhere. During fiscal 2014, nationally advertised brand namemerchandise accounted for approximately 71 percent of sales. Merchandisesold under the Company’s private brands program, across all merchandisecategories, accounted for approximately 29 percent of sales. During fiscal2014, closeout merchandise accounted for approximately three percent oftotal sales.

Executive Summary

Family Dollar Facts

FAMILY DOLLAR FACTS

Our History:Founded in 1959 in Charlotte, North Carolina by entrepreneur, Leon Levine

Our Mission:To be a compelling place to shop for our customersTo be a compelling place to work for our team membersTo be a compelling place to invest for our shareholders

Our Vision:To be the best small-format convenience and value retailer serving the needs of families in our neighborhoods

Our Core Customer:Female head of household in her mid forties making less than $40,000 per year

Out Product Mix:We offer our customers a mix of quality name brand products they use everyday; from consumable products such as household paper productsand expanded food assortment, to treasures for every home and even quality apparel for men, women, and children. We also offer a mix ofseasonal products, greeting cards, gift-wrap, and more.

Our Team and Our Culture:8,000 stores in 46 states; 50,000 team members

By attracting and retaining team members who are committed to the ideals of an achievement-focused culture and who participate in decision-making through open lines of communication, Family Dollar will stride into the next 50 years as a world-class organization.

Our Investor Information:The company’s stock went public in 1970 at $14.50 per share. In 2008, the stock finished as the top performer on the S&P 500 with $8.5 billion in sales and more than $388 million in earnings in fiscal 2011.

7This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap Activity ID Number W0331079

Executive Summary

Family Dollar Stock Information

Stock Information*Ticker Symbol (NYSE) FDOPrice ($) 78.7252 Week High ($) 80.9752 Week Low ($) 55.64Market Cap. (Mil) $ 9.0BShares Out (Mil) 114.4M

Key FundamentalsP/E Ratio 28.0xEarnings per share $2.81Revenue $10.55B Profit Margin 2.35%Return on Equity 15.37%

For more than 50 years, Family Dollar has been providing value andconvenience to customers in easy-to-shop neighborhood locations. Helpingfamilies save on the items they need with everyday low prices creates astrong bond with customers who refer to their neighborhood store as “myFamily Dollar.” Family Dollar is a ranked as number 301 in Fortune 500,publicly held company with common stock traded on the New York StockExchange under the symbol FDO. They have a Standard & Poor InvestmentGrade Rating of BBB- .

In 2014, Family Dollar invested significantly to lower prices on nearly 1,000basic items to deliver more compelling value to their customers. As a resultof customer demand, they have expanded and refined their food andhousehold assortments. In fiscal 2014, they added approximately 400 newfood items to expand their assortment of key national brands to attractcustomers and build customer loyalty. They also reduced shelf space incategories where customer response has not met their expectations, andthey improved product adjacencies to make it easier for their customers toshop.

The majority of Family Dollar’s products are priced at $10 or less, withapproximately 22 percent priced at $1 or less. The stores operate on a self-service basis, and their low overhead enables them to sell merchandise at arelatively moderate markup.

In fiscal 2014 , Family Dollar consumables sales increased 2.4 percent to 73.4percent of total sales, as compared to fiscal 2013. Family Dollar plans tocontinue to optimize their consumables assortment, and they expect thistrend will continue in fiscal 2015. During fiscal 2014, nationally advertisedbrand name merchandise accounted for approximately 71 percent of sales.Merchandise sold under Family Dollar’s private brands program, across allmerchandise categories, accounted for approximately 29 percent of sales.During fiscal 2014, closeout merchandise accounted for approximately threepercent of total sales.

Family Dollar Mission:Our mission is to provide our customers with a compelling place to shop, our team members with a compelling place to work, and our shareholders with a compelling place to invest. Our strategy is to provide consumers with value and convenience in a small, easy-to-shop environment in the neighborhoods we serve.

*According to Bloomberg dated March 4th, 2015

8This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap Activity ID Number W0331079

P R I C I N G A N D F I N A N C I A L A N A LY S I S

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Property Name Family Dollar

Property Type Discount Dollar Store

Ownership Fee Simple

Tenant Family Dollar

Guarantor Corporate

Lease Term Six Years

Lease Commencement 1/5/2012

Rent Commencement 1/5/2012

Lease Expiration 6/30/2021

Lease Type Double Net (NN)

Roof & Structure Landlord

Options to Renew Six, Five-Year Renewal Options

Rental Increases

Annualized Operating Data

Financial Analysis

Financial Offering Summary


Rent Increases Annual Rent Monthly Rent

6/24/2023 - 6/23/2024 $69,500.00 $5,791.67

$69,5008.75%

Annual RentCap RatePrice $794,286

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Financial Analysis

Recent Sales Comparables


Family Dollar | 15-Year Lease | Seffner, Florida

Close of Escrow 1/29/2015 Square Feet 8,320 SF

Price $1,711,217 Price / SF $205.68

CAP Rate 6.25% Term Remaining 14.75 Years

Net Operating Income $106,951 Rental Increases Every Three Years

Option Periods Four, Five-Year Options Other

Family Dollar | 15-Year Lease | Tampa, Florida

Close of Escrow 2/26/25 Square Feet 8,320SF

Price $2,036,467 Price / SF $245

CAP Rate 6.00% Term Remaining 14.75 Years

Net Operating Income $122,188 Rental Increases Two Percent Annually

Option Periods Six, Five-Year Options OtherTriple Net Corporate

Guarantee

Dollar General | 15-Year Lease | Mobil, Alabama

Close of Escrow 8/29/2014 Square Feet 12,480 SF

Price $2,200,000 Price / SF $176

CAP Rate 6.34% Term Remaining 14 Years

Net Operating Income $139,404 Rental Increases10 Percent at the Start of

Each Option Period

Option Periods Five, Five-Year Options Other

P R O P E R T Y O V E R V I E W

The subject property is located at 184 Main Street in Woodville,Mississippi and has limited competition as it is one of only twodollar markets in the city. Woodville is a town in South EasternMississippi. It is currently the County Seat of Wilkinson County,and has a famous historic background as it is host to theWoodville Republican, which is the oldest surviving business inMississippi.

Woodville brings many visitors because of its National RegisterHistoric District, which is made up of over 100 buildings includingstructures surviving from the early 1800s. It is also home to theWilkinson County Museum, which is an old railroad station thathas been dedicated to remembering the area’s history. The areais home to many industries, with timber being one of the largest.Netterville Lumber, Big River Timber, Georgia Pacific andKAPAQ industries are some of the largest employers in the area.Woodville, MS is located just South West of the HomochittoNational Forest, North East of Lafayette, Mississippi and SouthWest of Jackson, Mississippi. The nearest airport is the Natchez-Adams County Airport, located under an hour’s drive away to theNorth. The nearest hospital is only 28 minutes away, located inSaint Francisville, Louisiana. There are three educationalinstitutions in the area: Wilkinson County Elementary School,Winkinson County high school, and Wilkinson County PrivateChristian academy, all of which are served by the WilkinsonCounty School District.

Surrounding retailers to the subject property include SonicDrive-in, Treppendahl Super Foods, Variety Shack, Rosemary’s,and Dollar General.

30 Minutes Away from Natchez-Adams County Airport

Only 55 Miles Away from Baton Rouge, Louisiana

Surrounding Retailers in the Immediate Area Include: SonicDrive In, Dollar General, Shell Gas Station, United States PostOffice, Concordia Bank and Trust, and United Mississippi Bank

13

Property Overview

Location Highlights | Property Description


ADTC 55,000

ADTC 22,000

14

Property Overview

Aerial Photo | Surrounding Area


Wilkinson CountyHigh School

15

Property Overview

Property Photo


Representative PhotoRepresentative Photo

16

Property Overview

Regional Map


17

Property Overview

State Map


M A R K E T O V E R V I E W A N D D E M O G R A P H I C S

PopulationIn 2014, the population in your selected geography is 4,111. The population has changed by -9.61%since 2000. It is estimated that the population in your area will be 3,978 five years from now, whichrepresents a change of -3.23% from the current year. The current population is 59.62% male and40.37% female. The median age of the population in your area is 35.6, compare this to the Entire USaverage which is 37.3. The population density in your area is 52.37 people per square mile..

HouseholdsThere are currently 1,149 households in your selected geography. The number of households haschanged by -10.77% since 2000. It is estimated that the number of households in your area will be1,112 five years from now, which represents a change of -3.25% from the current year. The averagehousehold size in your area is 2.55 persons.

IncomeIn 2014, the median household income for your selected geography is $26,859, compare this to theEntire US average which is currently $51,972. The median household income for your area haschanged by 28.95% since 2000. It is estimated that the median household income in your area will be$28,738 five years from now, which represents a change of 6.99% from the current year.

The current year per capita income in your area is $14,396, compare this to the Entire US average,which is $28,599. The current year average household income in your area is $44,253, compare thisto the Entire US average which is $74,533.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 22.85% White, 75.93% Black,0.00% Native American and 0.07% Asian/Pacific Islander. Compare these to Entire US averageswhich are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

EmploymentIn 2014, there are 694 employees in your selected area, this is also known as the daytime population.The 2000 Census revealed that 48.56% of employees are employed in white-collar occupations in thisgeography, and 50.60% are employed in blue-collar occupations. In 2014, unemployment in this areais 9.88%. In 2000, the average time traveled to work was 34.4 minutes.

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Demographics

Demographic Summary Report


ADTC 31,780

ADTC 38,800

WOODVILLE, MS

Offering Memorandum | 184 Main Street, Woodville, MS

family dollar 184 main street woodville, ms

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