™Family Dollar215 Lyell Ave, Rochester, NY 14614

OFFERING MEMORANDUM

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This Marketing Brochure contains select information pertaining to the business and affairs of Family Dollar located at 215 Lyell Ave, Rochester, NY 14614 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

It is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future performance.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer’s legal ability to make alternate use of the Property.

By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Site Plan Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TABLE OF CONTENTS

PRESENTED BY

Andy Knight Broker of Record

License No. 10311206075

Josh BishopVP & Director

License No. 01940394O 214.692.2289M 315.730.6228josh.bishop@matthews.com

Chad KurzSVP & National Director

License No. 01911198O 214.692.2927M 562.480.2937chad.kurz@matthews.com

™

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PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

LEASE & PROPERTY DETAILS

• Brand new 2016 construction (Rent commencement of November 2016)

• Brand new 15 year absolute NNN lease• Zero management responsibility• 10% rent increase in year 10 of base term - strong hedge against

inflation• Cap Rate increase to 6.60% with rent increase (assuming a purchase

at list price)• 3-mile demographics in excess of 172,500 residents• 5-mile demographics in excess of 323,300 residents• Strong traffic counts; more than 20,000 average daily traffic

counts on Lyell Ave• Located adjacent to Sahlen’s Stadium; home of the MLS Rochester

Rhinos• Lease incorporates Six (6), Five (5) Year extension options, all of

which include a 10% rent increase• Rochester is the third largest city in the state of New York; the

population of the Rochester MSA is more than 1,079,671 residents

TENANT

• Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation’s largest small-box discount retailer

• Family Dollar & Dollar Tree have over 13,000 locations nationwide• Both Family Dollar & Dollar Tree have plans to continue expansion

over the next several years

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Investment Overview

EXECUTIVE SUMMARY215 Lyell Ave Rochester, NY 14614List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,228,985Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . 8,307 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.00%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016Lot Size . . . . . . . . . . . . . . . . . . . . . . . .± 0.59 Acres (25,754 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent RPSF CAP Rate

Current - 12/31/2026 $11,144.92 $133,739.04 $16.10 6.00%

1/1/2027 - 12/31/2031 $12,259.42 $147,113.04 $17.71 6.60%

Option 1 $13,485.42 $161,825.04 $19.48 7.26%

Option 2 $14,833.92 $178,007.04 $21.43 7.99%

Option 3 $16,317.34 $195,808.08 $23.57 8.78%

Option 4 $17,949.00 $215,388.00 $25.93 9.66%

Option 5 $19,743.92 $236,927.04 $28.52 10.6%

Option 6 $21,718.34 $260,620.08 $31.37 11.7%

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Financial Overview

TENANT SUMMARYTenant Trade Name Family Dollar

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 years

Rent Commencement Date November 2016

Lease Expiration Date 12/31/2031

Term Remaining on Lease ± 15 years

Increases 10% In Year 10 & In Options

Options Six (6). Five (5) Year

Property Name Family Dollar

Property Type Net Leased Discount Store

Parent Company Trade Name Dollar Tree, Inc

Ownership Public

Credit Rating BB+

Rating Agency Standard & Poor’s

Revenue $10.49 B

Net Income $285 M

Stock Symbol DLTR

Board NASDAQ

No. of Locations ± 13,000

No. of Employees (All) ± 60,000

Headquartered Matthews, North Carolina

Web Site www.familydollar.com

Year Founded 1986

Family Dollar Stores, Inc. operates a chain of general merchandise retail discount stores primarily for low- and middle-income consumers in the United States. Its merchandise assortment includes consumables, such as batteries, diapers, food products, hardware and automotive supplies, health and beauty aids, household chemicals, paper products, pet food and supplies, and tobacco; and home products, including blankets, sheets, towels, giftware home décor products, and housewares. The company also offers apparel and accessories comprising boys’ and girls’, infants’, men’s, and women’s clothing, as well as fashion accessories and shoes; and seasonal and electronic products, such as toys, stationery and school supplies, and seasonal goods, as well as personal electronics, including pre-paid cellular phones and services.

4

Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . Family DollarProperty Address . . . . . . . . . . . . . . . . . . . . . . . . 215 Lyell Ave Rochester, NY 14614

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 8,307 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 0.59 Acres ( 25,754 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 30 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . .3.61 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SteelExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Masonry BlockParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat

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Property Overview

PROPERTY DESCRIPTION

Lyell Ave ± 20,000 ADT

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Bird’s Eye

8

Tenant Map

PROPERTY DESCRIPTION

9™

Regional Map

10 PROPERTY DESCRIPTION

Site Plan Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 20,338 171,902 323,086

2016 Estimate 20,482 172,586 323,301

2010 Census 21,063 175,489 326,683

2000 Census 22,931 183,863 335,346

Households

2021 Projection 8,031 71,619 138,683

2016 Estimate 7,994 71,160 137,424

2010 Census 8,050 70,994 136,399

2000 Census 8,523 72,930 137,449

Income

$0 - $15,000 42.37% 27.76% 19.92%

$15,000 - $24,999 21.52% 16.55% 13.38%

$25,000 - $34,999 10.96% 12.60% 11.72%

$35,000 - $49,999 13.12% 14.36% 14.77%

$50,000 - $74,999 6.98% 13.47% 16.82%

$75,000 - $99,999 2.69% 7.23% 9.91%

$100,000 - $124,999 1.05% 3.68% 5.70%

$125,000 - $149,999 0.70% 1.81% 2.90%

$150,000 - $199,999 0.49% 1.43% 2.64%

$200,000 - $249,999 0.06% 0.47% 0.97%

$250,000 - $499,999 0.04% 0.48% 0.98%

$500,000+ 0.02% 0.15% 0.29%

2016 Est. Average Household Income $26,084 $42,330 $54,837

2016 Est. Median Household Income $18,545 $29,519 $40,058

12 DEMOGRAPHICS

Demographics Report

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City Overview

ROCHESTER, NYRochester is a city on the southern shore of Lake Ontario in the western portion of New York and is the seat of Monroe County. Rochester was one of America’s first boomtowns, and rose to prominence as the site of many flour mills along the Genesee River, and then as a major hub of manufacturing. Rochester is an important industrial and research center and Great Lakes shipping port.

Rochester is home to a number of Fortune 1000 and international businesses, including Eastman Kodak, as well as several national and regional companies, such as Carestream Health. Commercial and industrial activity has a strong science and technology presence, led by the Eastman Kodak Company but also including Xerox, Bausch & Lomb and even GM’s hydrogen power research labs. The scientific and industrial legacy has strengthened a set of excellent arts, cultural and educational assets including the Rochester Institute of Technology and the University of Rochester. Scientists, aspiring scientists and science buffs feel quite at home in the area.

The Lake Ontario shore offers a number of parks and waterfront amenities. Together these assets provide plenty of attractions and opportunities to visit Rochester. Rochester is also home to many local museums and art galleries, as well as local theaters that host Broadway shows. Rochester has a thriving nightlife and restaurant scene with something to do for everyone.

# Employer

1 University of Rochester

2 Rochester Regional Health

3 Wegmans Food Markets Inc.

4 Xerox Corp.

5 Paychex

6 Rochester Insititute of Technology

7 Lifetime Healthcare Cos

8 Harris Corporation

9 YMCA of Greater Rochester

10 Top Markets LLC

TOP EMPLOYERS - ROCHESTER, NY

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com

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Family Dollar215 Lyell Ave, Rochester, NY 14614

OFFERING MEMORANDUM

Josh BishopVP & Director

License No. 01940394O 214.692.2289M 315.730.6228josh.bishop@matthews.com

Chad KurzSVP & National Director

License No. 01911198O 214.692.2927M 562.480.2937chad.kurz@matthews.com

Andy Knight Broker of Record

License No. 10311206075