Montrose Shopping Center – Gold’s Gym / Dollar General Offering Memorandum

$6,284,027 | Investment Details

❖ Located in the Heart of Montrose, Colorado

❖ Two Tenant Center – 100% Occupied

❖ Gold’s Gym to Sign a New 15 Year Lease Upon

COE

❖ Gold’s Has Occupied the Site For 10 Years and

Wishes to Extend Their Presence Thru 2032 by

Executing a New Lease, Showing Dedication to

the Region

❖ Gold’s Gym Has 2,901 Members at This Location

With Sales Exceeding $1,517,942 Annually

($523.24 Per Member)

❖ Site Was Remodeled in 2013

❖ NNN Leases – All CAM’s Pass Through to Tenants

❖ Strong Growth Area – Local Population Increased

by over 33% since 2000

❖ Traffic Count Exceeds 17,000 Vehicles Passing in

Front of Site Daily Actual Site Photo

TENANT OVERVIEW

Company Profile

Tenant Trade Name Gold’s Gym

Ownership Private - TRT Holdings is Parent Company

Site Operator Franchised 5 Unit Operator

Revenue $147 Million

Lease Guarantor Corporate

No. of Locations 700+

No. of Employees 30,000+

Headquarters Dallas, Texas

Website www.Goldsgym.com

Tenant Snapshot

Gold’s Gym stared moderately 52+ years ago when they opened their first

fitness center in Venice Beach, CA and began a tradition of passion and

dedication to physical fitness at more than 700 +/- locations across the

globe.

Located in 30 countries and 40 states, Gold’s Gym has assisted patrons in

achieving their personal physical fitness goals in strength and endurance.

Gold’s Gym’s mantra is “ Know Your Own Strength”.

Gold’s Gym is an American chain of international co-ed fitness centers. Each

location features an array of exercise equipment, group exercise classes and

personal trainers.

Gold’s Gym was purchased by Robert Rowling’s TRT Holdings in 2004 for

approximately $158(Mil). TRT also owns the Omni Hotel chain. TRT Holdings

net worth is approximately $6.7(Bil) as of May 2017.

700+Locations

$6.7 MillionParent Co Net Worth

Gold’s Gym Accelerates growth and Innovation in

Strong 2016: http://www.prnewswire.com/news-releases/golds-gym-

accelerates-growth-and-innovation-in-strong-2016-300377323.html

A b o u t t h e F r a n c h i s e e :

Utah Limited Liability Company based out of Sandy, Utah. Cascade Fitness was

formed for the ownership and operation of Gold's Gym locations in south eastern

Washington State. They currently own and operate Gold's Gym's in Kennewick,

WA, and 2 gyms in western Colorado. They have also developed and constructed

over 21 Gym's for other operators throughout the US. It is a joint venture of

Bingham Family Alaska LLC

TENANT OVERVIEW

Corporate Snap Shot

Gold's Gym International, Inc. operates a chain of fitness gyms in the United States and

internationally. It offers group exercise programs, including Zumba, yoga, group cycling,

mixed martial arts, muscle endurance training, and Pilates.

The company also provides services in the areas of strength training/cardio, diet and nutrition,

fitness related medical information, celebrity training, sports training, senior fitness, youth

fitness, pre- and post-natal, motivation, diabetes, obesity, sports psychology, and stretching

exercises.

In addition, it engages in franchising gyms. Gold's Gym International, Inc. was formerly known

as Gold's Gym Enterprises, Inc. The company was founded in 1965 and is based in Dallas,

Texas.

As of July 21, 2004, Gold's Gym International, Inc. operates as a subsidiary of TRT Holdings,

Inc.

Today, Gold’s Gym serves more than 3 million members through over 720 gyms in 38 states

and 26 countries around the world.

Franchise opportunities for gyms – estimated investment level ranges between $1.1-$3.9

million depending on size amenities and location. 30% of all franchisees own more than one

unit.

TENANT OVERVIEW

Tenant Snapshot

With 13,601 discount stores in more than 40

states, primarily in the south, eastern, Midwest,

and southwest US, this number 1 ranked retailer

thrives off of the crumbs of mega discounter

Walmart. They offer mostly basic household

products, food and discounted products. Most

products sell for less than $1. Ranked 164th in

Fortune 500, Standard & Poor’s BBB – rated, and

does approximately $20.369(Bil) in annual sales

with an average annual growth of 8.03 percent.

13,600+Locations “BBB“ Rated

Standard & Poor’s $20.369 BillionRevenue

TENANT OVERVIEW

13,600+Locations “BBB“ Rated

Standard & Poor’s $20.369 BillionRevenue

Dollar General Company

Profile

Tenant Trade

Name

Dollar General

Ownership NYSE:DG

Revenue $20.369 Billion

Lease

Guarantor

Corporate

No. of

Locations

13,600+

No. of

Employees

120,000+

Headquarters Goodlettsville, TN

Website www.Dollargeneral.com

FLOOR PLAN – GOLD’S GYM

LEASE ABSTRACTS

Lease Abstract

Lease Type NNN Fee Simple

Lease Term 10 Years

Lease Start (estimate) 10/30/2006

Lease Expiration (estimate) 3/31/2019

Renewal Options 3x5

Increases In option periods

Roof and Structure Tenant Responsible

Lease Abstract

Lease Type Modified NNN Fee Simple

Lease Term New 15 Year

Lease Start COE

Lease Expiration (estimate) COE + 15 Years

Renewal Options (estimate) 3x5

Increases 1.50% annually

Roof and Structure Tenant Responsible

Overview

Price (Combined) $6,284,027

Gross Leasable Area (Estimate)

(32,191 SF Gold’s & 9,903 SF DG)

42,094 SF Combined

Lot Size (Acres) 3.15

Year Built / Renovated 1974 / 1988 / 2013

Net Operating Income (Combined) $455,592

CAP Rate (Combined) 7.25%

THE OFFERING – GOLD’S GYM & Dollar General Center

Time Periods*

Rental

Year

Lease

Years

Dollar

General

Annual Rent

Gold's Gym

Annual Rent

Combined

Rents

BTG/BTDG 1 2017 $69,300 $386,292 $455,592

BTG/BTDG 2 2018 $69,300 $392,086 $461,386

BTG/BTDG 3 2019 $69,300 $397,968 $467,268

BTG/Opt1DG 4 2020 $79,014 $403,937 $482,951

BTG/Opt1DG 5 2021 $79,014 $409,996 $489,010

BTG/Opt1DG 6 2022 $79,014 $416,146 $495,160

BTG/Opt1DG 7 2023 $79,014 $422,388 $501,402

BTG/Opt1DG 8 2024 $79,014 $428,724 $507,738

BTG/Opt2DG 9 2025 $86,904 $435,155 $522,059

BTG/Opt2DG 10 2026 $86,904 $441,682 $528,586

BTG/Opt2DG 11 2027 $86,904 $448,308 $535,212

BTG/Opt2DG 12 2028 $86,904 $455,032 $541,936

BTG/Opt2DG 13 2029 $86,904 $461,858 $548,762

BTG/Opt3DG 14 2030 $95,592 $468,786 $564,378

BTG/Opt3DG 15 2031 $95,592 $475,817 $571,409

Opt1G/Opt3DG 16 2032 $95,592 $482,955 $578,547

Opt1G/Opt3DG 17 2033 $95,592 $490,199 $585,791

Opt1G/Opt3DG 18 2034 $95,592 $497,552 $593,144

Time Periods*

BTG = Base term Gold’s Gym (estimated on new lease)

BTDG = Base term Dollar General

Opt = Option periods

Expenses

All CAM’s pass thru to Tenant Expense Break down available upon request

RE Taxes (City of Montrose) $3,697.05

Insurance 74.00

Utilities $4,566.11

Repairs & Maintenance (May vary) $352.45

Snow Removal $500.00

Waste Management $1,231.87

Management Fee (subject to owner’s request) $7,000.00

Total Expenses $17,421.48

San Juan Cinemas

Population 1-Mile 3-Mile 5-Mile

2010 5,589 21,726 27,312

2016 5,497 21,280 26,753

2019 5,881 22,558 28,829

2016

Household

Incomes

1-Mile 3-Mile 5-Mile

Average $54,333 $57,070 $58,610

Median $42,314 $43,583 $44,613

Montrose, Colorado

Montrose, Colorado, sitting at the base of the picturesque Gunnison Gorge National Park, is

named after Sir Walter. Scott's novel A Legend of Montrose.

Montrose has been an agricultural hub for generations since its founding in 1882. Today, the

Black Canyon canal which winds its way thru Montrose is used for recreation and kayaking.

Montrose located along Route 50 is just south of Grand Junction, and south west of Denver,

Colorado off the I-70, situated just north of the New Mexico border.

The Montrose Center is home to two tenants: Dollar General and Gold's Gym. Newly renovated

in 2013 and centrally located these two tenants are some of the only few nationally known

retailers in the County as the region tries to preserve its "old" town community feel. Directly

adjacent to the site and sharing ingress/egress are a Driver's Education School, a Mexican

restaurant, and Ted Nelson's Steakhouse.

The leases are modified NNN in nature with all expenses being passed through to the tenants.

Retailers in the area include: a Kawasaki, Suzuki, Yamaha, Buick, GMC and Toyota dealerships,

Blair's truck stop, a Cinema, Best Western, Super 8, Motel 6, Arby's, Days Inn, Goodyear,

Country Lodge, a Bowling Alley, Alpine Bank a Shell Station and the Montrose

Memorial Hospital. The fairgrounds and the Chamber of Commerce are also in the immediate

area.

Confidentiality Agreement

The information contained in the following Marketing Brochure is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap

and should not be made available to any other person or entity without the written consent of

Marcus & Millichap.

This Marketing Brochure 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. Marcus & Millichap has not made any 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

Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus &

Millichap has not verified, and will not verify, any of the information contained herein, nor has

Marcus & Millichap 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.

Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable.

However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap

conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or

representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a

net leased property, 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 your

thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any

obligation to conduct a due diligence examination of this Property for 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 you depends on factors

that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent

investigation of any net leased property to determine to your satisfaction with the suitability of the property for

your needs. 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 success. 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 Marcus & Millichap Real Estate Investment Services

and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or

purchase of this net leased property.

Montrose Shopping Center – Gold’s Gym / Dollar General

EXCLUSIVELY REPRESENTED BY:

Lior Regenstreif

Senior Managing Director Investments

Senior Director Net Leased Properties Group

16830 Ventura Blvd., Suite 100

Encino, CA 91436

818.907.9525 Direct

E-mail: Lior.Regenstreif@MarcusMillichap.com