Family Dollar | Corporate Guarantee | BBB- S&P Credit ... · Building Area 11,445 Square Feet Land Area 0.90 Acres Lease Commencement 7/1/2012 Lease Expiration 6/30/2022 Year Built/Renovated

Family Dollar | Corporate Guarantee | BBB- S&P Credit Rating | 6.75% Cap Rate

2151 S CHESTER AVE | BAKERSFIELD, CA

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BRETT VISINTAINER, CCIMVice President, Investment DivisionNewmark Grubb Pearson Commercial7480 N Palm Ave, Suite 101Fresno, CA 93711bvisintainer@pearsonrealty.comwww.visintainergroup.com559.447.6265 | Office559.916.0370 | CellCA BRE #01792092

TABLE OF CONTENTS

Investment Summary | Property Description

Rent Roll |

Tenant Profile

Lease Abstract

Sale Comps |

Location Maps |

Parcel Map

City of Bakersfield |

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TenantFamily Dollar

Asking Price$1,404,207

Total Building Area 11,445 SF

PSF$122.69

NOI $94,664

Cap Rate 6.75%

Lease Expiration 6/30/2022

Remaining Term Seven (7) Years

Options Six (6) – Five (5) Year Options

Lease Type NN; landlord responsible for roof and structure

Investment Summary

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2151 S CHESTER AVE | BAKERSFIELD

Property Description

Demographics

Traffic Count

Address 2151 S. Chester Avenue Bakersfield, CA 93304

Tenant Family Dollar

Building Area 11,445 Square Feet

Land Area 0.90 Acres

Lease Commencement 7/1/2012

Lease Expiration 6/30/2022

Year Built/Renovated 1955/2012

Construction Type Concrete Block

Occupancy 100%

APN 166-113-03-00-1

1 Mile 3 Miles 5 Miles

2015 Population 20,306 145,525 310,752

2015 Avg HH Income $43,725 $46,371 $55,428

15,340 VPD on South Chester Avenue

Start Exp

Family Dollar 11,445 100% 79.6% 7/1/2012 6/30/2022 $8,000 $0.70 NN 5 Yr 7/1/2022 $8,800.00 $0.77

5 Yr 7/1/2027 $9,680.00 $0.85

5 Yr 7/1/2032 $10,648.00 $0.93

5 Yr 7/1/2037 $11,712.75 $1.02

5 Yr 7/1/2042 $12,884.00 $1.13

5 Yr 7/1/2047 $14,172.42 $1.24

PSF MoOption Details

Term Rent Amount Rent PSFOption DatePSF Mo

Lease Type

Rent Increase Date

Rent Increase Amount

Tenant SF% of

BuildingLease Term July 2015

Base Rent

% of Shopping Center


Rent Roll

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Cash Flow Analysis

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APN 166-151-012,934 SF20.4%

APN 166-113-0311,445 SF

79.6%

SF % of Center APN

[1] Per lease, Family Dollar reimburses 79.6% of shopping center expenses, which includeAPN #'s 166-113-03 and 166-151-01

[2] Per lease, Family Dollar only reimburses for building insurance

[3] Taxes are re-assessed based on 1.135% of list price

Family Dollar [1] 11,445 79.6% 166-113-03Warehouse [NAP] 2,934 20.4% 166-151-01Total Shopping Center 14,379 100%

Effective Rental Income $96,000

Reimbursements 166-113-03 166-151-01

Property Tax $15,307 $12,685 $2,622 Building Insurance [2] $3,749 $2,349 $1,400 Liability Insurance - - - CAM $1,561 $1,561 -Total $20,617 $16,595 $4,022

Gross Rental Income $116,617

Expenses 166-113-03 166-151-01

Property Tax [3] $15,937 $15,937 $3,294 Building Insurance $2,951 $2,951 - Liability Insurance $984 $984 - CAM $1,961 $1,961 -Total $21,833 $21,833

NOI $94,784Cap Rate 6.75%Value $1,404,207

Not A Part[NAP]

Subject Property

Tenant Profile

Credit Rating S&P: BBB-

Founded: 1959

Headquarters: Matthews, NC

No. of Locations: 8,100+

NYSE: FDO

www.familydollar.com

With a unique merchandising concept providing consumers with convenience

and everyday low prices, Family Dollar is well positioned to move forward as

one of the fastest growing retailers in the country.


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Family Dollar, headquartered in Matthews, North Carolina, just outside of Charlotte, is the nation’s #2 dollar store, which targets women shopping for a family

earning less than $40,000 a year. It operates ten full-service, highly automated distribution facilities throughout the country. Since first opening its doors in 1959,

Family Dollar has grown to more than 8,100 stores in 46 states with sales in excess of $10 billion. Over time, the merchandise mix has evolved, but the principal

that drives the business the same – satisfy the customer and the customer will return.

One of the nation’s fastest growing retailers, 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. 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.

Family Dollar is a Fortune 300 company and has been a publicly held corporation since 1970; its Common Stock is listed on the New York Stock Exchange under

the ticker symbol FDO.


Lease Abstract

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Tenant and Landlord Information Lease Details Section

Tenant: Family Dollar, Inc pg.1

Current Landlord: ROK VENTURES, LLC

Lease Dates, Terms and Premises Lease Details Section

Lease Execution Date: February 22, 2012 pg.1

Rent Commencement Date: July 1, 2012

Term: 120 months

Expiration Date: June 30, 2022 pg.1

Premises RSF: 11,445 RSF pg.1

Rent and Additional Rent Lease Details Section

Current Rent : $8,000.00 per month - During years one (1) through ten (10) pg.1

Rent Increases: None

Option Notice:

So long as Tenant is not then in default hereunder beyond all applicable cure periods, the term of this Lease will be automatically extended one period at a time for six successive periods of five years each unless Tenant gives written notice to Landlord cancelling the next extended term at least 180 days before the extended term is scheduled to begin.

pg.5

Options and Terms:

$8,800.00 per month - First five (5) year option $9,680.00 per month - Second five (5) year option $10,648.00 per month - Third five (5) year option $11,712.75 per month - Fourth five (5) year option $12,884.00 per month - Fifth five (5) year option $14,172.42 per month - Sixth five (5) year option

pg.5

Holding Over

If Tenant remains in possesion of the Demised Premises after the expiration of the term of the Lease, then all provisions of this Lease that are applicable during the final year of the lease term will continue to apply, except that Tenant will pay, as fixed rent, an amount equal to 125% of the monthly fixed rental payment due for the last month of the lease term immediately preceding the hold over and Landlord and Tenant will each have the right to terminate this Lease by giving written notice of termination.

pg.17


Lease Abstract (continued)

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Landlord Responsibilities: Lease Details Section

Roof and Structure:Landlord will maintain and repair and replace when necessary all exterior portions of Demised Premises, including the roof, exterior walls, canopy, gutters, downspouts, and also all structural portions of the Demised Presmises whether interior of exterior.

pg.10

Exterior Responsibilities:Landlord will keep the parking, service, and access areas maintained, including removal of snow, ice, trash, weeds, and debris, and in a good state of repair and properly lighted.

pg.10

Common Area Maintenance:

Common Areas means the driveways, parking areas, service areas, Pylons, exterior sidewalks and landscaped areas. Landlord will maintain the Common Areas in good order, condition, repair. Tenant will reimburse Landlord for Tenant's proportionate share of the following direct costs paid by Landlord in connection with the maintenance and repair of the Common Areas.

pg.11

Tenant Responsibilities: Lease Details Section

Utilities:Tenant will pay directly to the utility providers all deposits required to initiate service and all charges for Utilities used by Tenant in the Demised Premises.

pg.7

Insurance:Tenant will reimburse Landlord for Tenant's proportionate share of the insurance premium for the insurance Landlord is required to carry.

pg.9

Taxes:Tenant will timely pay all operating license fees for the conduct of its business, and ad valorem taxes levied upon its trade fixtures, inventory and other personal property. Tenant will reimburse Landlord for Tenant's proportionate share of the real estate taxes on the Shopping Center.

pg.12

Maintenance of Demised Premises:

Tenant will maintain and repair all interior, non-structural portions of the Demised Premises except for repairss Landlord is required to make.Tenant will maintain, repair and replace the heating and air conditiong systems, but Tenant will not be required to replace any major components of the heating and air conditioning systems, including but not limited to, any compressor, condensor, coils, controls, motor or hear exchanger, during the last year of the lease term or the last year of any extension of the lease term.

pg.10

Miscellaneous Lease Details SectionTermination Right: NoneFirst Right of Refusal/Right of First Offer: None

Estoppel: Thirty (30) days request pg.21

Tenant will have the right to assign this Lease or sublet the Demised Premises only with the Landlord's prior written consent, which consent will not be unreasonably withheld or delayed.

Sublease/Assignments: pg.21


Family Dollar Sale Comps in the Central Valley

SUBJECT PROPERTY

Address SF Sale Price PSF Cap Rate Sale Date

1. 163 Central Valley Hwy (Shafter) 8,045 $1,840,000 $228.71 5.76% Apr-15

2. 1928 W Olive Ave (Fresno) 8,320 $2,565,466 $308.35 6.75% Apr-15

3. 2006 E Mariposa Rd (Stockton) 9,180 $2,935,000 $319.72 5.80% Jan-15

4. 1108 E Bardsley (Tulare) 8,415 $2,104,348 $250.07 5.75% Dec-14

5. 2110 Niles St. (Bakersfield) 8,107 $2,052,174 $253.14 5.75% Oct-14

6. 1420 W Tulare (Tulare) 8,406 $1,860,870 $221.37 5.75% Oct-14

7. 2120 E Pacheco Blvd (Los Banos) 8,320 $2,400,000 $288.46 6.51% Aug-14

8. 1810 E Jensen Ave (Fresno) 9,342 $2,365,000 $253.16 Feb-14

9. 501 W harding Way (Stockton) 8,320 $2,292,500 $275.54 Feb-14

10. 1715 Yosemite Pkwy (Merced) 9,180 $2,714,500 $295.70 5.80% Jan-14

11. 16044 Ave 328 (Ivanhoe) 8,431 $1,655,000 $196.30 5.80% Jan-14

Average 8,551 $2,253,169 $263.48 5.96%

Address SF Sale Price PSF Cap Rate Sale Date

2151 S Chester (Bakersfield) 11,445 $1,404,207 $122.69 6.75% List Price

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Location Map

SUBJECT PROPERTY



Location Map

SUBJECT PROPERTY


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APN Map


The Southern Gateway to the Central Valley, Bakersfield is

the 9th largest city in California and one of the fastest growing

regions in the nation. Steeped in music history, the city is the

birthplace of the country music genre known worldwide as

the Bakersfield Sound. Bakersfield is the seat of Kern County,

which generates 76 percent of the state's oil supply and ranks

third among all counties in the United States in agriculture-

related production.

Bakersfield is nestled near the southern end of the San

Joaquin Valley in Kern County, California. It is roughly equi-

distant between Fresno and Los Angeles, which are 110 miles

to the north and south, respectively. A short drive from the

city puts visitors in the Southern Sierra Nevada Mountains

where one can experience top-rated whitewater rafting,

fly-fishing and hiking.

Major employers in Bakersfield:

ARB, Inc.

Bakersfield Memorial Hospital

Bolthouse Farms

County of Kern

Grimmway Farms

Mercy Hospitals of Bakersfield

Sun World

City of Bakersfield

DISCLOSURE AGREEMENTThe information contained in this Offering Memorandum is strictly confidential, furnished solely for the purpose of review by a ProspectivePurchaser for 2151 S. Chester Ave, Bakersfield, CA (Property) and is not to be used for any other purpose or made available to any other withoutthe expressed written consent of Newmark Grubb Pearson Commercial (NGPC).

The material is based in part upon information supplied by the Owner and in part upon information obtained by NGPC from sources itdeems reasonably reliable. Summaries and documents are not intended to be comprehensive or all inclusive but rather only an outline ofsome of the provisions contained therein.

No warranty or representation, expressed or implied, is made by Owner, NGPC as to the accuracy or of the information contained hereinor any other written or oral communication transmitted to Prospective Purchaser in the course of its evaluation of the Property. No liabilityis assumed in connection with the information or such other communication limiting the generality of the foregoing, the information shallnot be deemed a representation of the state of affairs of the Property of constitute an indication that there has been no change in thebusiness or affairs of the Property since the date of the preparation of the information.

Prospective Purchaser should make their own projections and conclusions without reliance upon the materials and information containedherein and conduct their own independent due diligence, including engineering and environment inspection, to determine the condition ofthe Property and its feasibility for the intended use of Prospective Purchaser and the existence of any potentially hazardous material locatedat the site.

This Offering memorandum was prepared by NGPC and has been reviewed by the Owner. It contains select/limited information pertainingto the Property and does not purport to be all inclusive or to contain all of the information which a Prospective Purchaser may desire. Allfinancial projections are provided for general reference purposes only and are based on assumptions relating to the general economy,competition, and other beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Propertywill be made available to qualified Prospective Purchasers.

In this Offering Memorandum, certain documents and other materials are described in summary form. The summaries do not purport to benor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interestparties are expected to independently review all documents with their/its advisors.

This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitutean endorsement or advice as to the value of the own investigation, evaluation, and judgment as to the advisability of purchasing the Propertydescribe herein. Owner and NGPC expressly reserve the right, at their sole discretion, to reject any party at any time with or without notice.Owner shall have no legal commitment or obligation to any interested party reviewing this Offering Memorandum or making an offer topurchase the Property unless a written agreement for the purchase of the Property Owner’s obligations there under have been satisfied anddelivered by the Owner and such part and any conditions to Owner’s obligations there under have been satisfied or waived and then onlyto the extent expressly provided to therein. NGPC is not authorized to make any representations or agreements on behalf of the Owner.

This Offering Memorandum is the property of NGPC and may be used only by the parties approved by NGPC. By accepting delivery of thisOffering Memorandum, the party in possession hereof agrees (i) to return it to NGPC immediately upon request of NGPC or Owner and(ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. Noportion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorizationof NGPC and Owner.

The terms and conditions set forth above apply to the Offering Memorandum in its entirely.

BRETT VISINTAINER, CCIMNewmark Grubb Pearson CommercialVice President, Investment DivisionCA BRE# 01792092

2151 S CHESTER AVE | BAKERSFIELD, CA

Documents

Family Dollar | Corporate Guarantee | BBB- S&P Credit ... · Building Area 11,445 Square Feet Land Area 0.90 Acres Lease Commencement 7/1/2012 Lease Expiration 6/30/2022 Year Built/Renovated