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SINGLE TENANT ABSOLUTE NNN Investment Opportunity

4433 HIGHWAY 35 SOUTH

ROCKPORT TEXASACTUAL SITE

ACTUAL SITE 2 NATIONAL NET LEASE GROUP

EXCLUSIVELY MARKETED BY

JIM SCHUCHERTVice PresidentSRS National Net Lease Group

610 Newport Center Drive, Suite 1500Newport Beach, CA 92660M: [email protected] | CA License No. 01969414

JOE SCHUCHERTVice PresidentSRS National Net Lease Group

610 Newport Center Drive, Suite 1500Newport Beach, CA 92660M: [email protected] | CA License No. 01973172

Broker/Designated Officer: Will Majors - SRS Real Estate Partners-Austin, LLC| TX License No. 508128


CONTENTS

5INVESTMENT SUMMARY

Offering Summary | Investment Highlights

9PROPERTY OVERVIEW

Aerials | Site Plan | Location Map

18AREA OVERVIEW

Demographics

20FINANCIALS

Rent Roll | Brand Profile


PROPERTY PHOTO


INVESTMENT SUMMARY

SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in a Dollar General property located in Rockport, Texas. Built in 2015, the subject property is consistent with Dollar General’s current prototype size of 9,026 SF. The lease has approximately 12 years remaining in the initial 15-year lease term with five (5) – five (5) year option periods at 10% rental increases. The lease is absolute NNN in nature with ZERO management responsibilities as Dollar General is responsible for ALL operating expenses, insurance, and property taxes. The lease is guaranteed by Dollar General Corporation (NYSE: DG) with an investment grade credit rating of BBB from Standard & Poor’s.

The subject property is strategically located in the heart of Rockport on Highway 35 South with traffic counts of 8,591 vehicles per day. Rockport is located 33 miles east of Corpus Christi, TX; 151 miles south of San Antonio, TX; 188 miles south of Austin, TX; and 189 miles southwest of Houston, TX. Rockport is located in Aransas County known for its laid back quality of life of a coastal community. In 2019, Rockport took the title as the second Best Coastal Small Town by USA Today. The 5-mile trade area is supported by a growing population of 15,739 residents with an average household income of $62,346.


Offering

Property Specifications

PRICING $1,197,520

NET OPERATING INCOME $74,845

CAP RATE 6.25%

GUARANTY Dollar General Corporation (Corporate)

TENANT Dolgencorp of Texas, In.

LEASE TYPE Absolute NNN

LANDLORD RESPONSIBILITIES None

Parcel Map

OFFERING SUMMARY

RENTABLE AREA 9,026 SF

LAND AREA 1.55 Acres

PROPERTY ADDRESS 4433 Highway 35 South Rockport, TX 78382

YEAR BUILT 2015

PARCEL NUMBER 4925-175-185-000

OWNERSHIP Fee Simple (Land & Building)

7 NATIONAL NET LEASE GROUP

INVESTMENT HIGHLIGHTS

DOLLAR GENERAL CORPORATE GUARANTEED LEASE:• Approximately 12 Years Remaining in the Initial 15 Year Lease Term• Newer Build-to-Suit Dollar General – 2015 Construction• Five (5) – Five (5) Year Option Periods with 10% Rental Increases

A TRUE COUPON CLIPPER | ABSOLUTE NNN LEASE | ZERO MANAGEMENT RESPONSIBILITIES:

• Absolute NNN with ZERO Management Responsibilities• Tenant Pays for ALL Operating Expenses, Insurance & Property Taxes• Ideal, Management-Free Investment for an Out-of-State, Passive Investor

ROCKPORT, TEXAS:• Located and in Aransas County and is the County Seat• The Charming Fish Village of Rockport has Been a Favorite Coastal Hideaway for

Wealthy Texans Since the 1800s• It was Named for the Rock Ledge Underlying its Shore and was Founded Just After

the Civil War as a Cattle Slaughtering, Packing and Shipping Port• Rockport is Known for Its Endless Recreational Possibilities and Mild Weather• In 2019, Rockport Took the Title as the Second Best Coastal Small Town by

USA Today 10 Best Readers’ Choice Travel Awards – Up 12 Spots from LastYear

• Rockport Beach was Rated the #1 Beach in Texas – the First DesignatedBlue Wave Beach in the State that Prides Itself on Its Clean, Crescent-ShapedStretch of Sand and is Popular with Families Thanks to Its Calm and ShallowWater

ARANSAS COUNTY:• Located on the Gulf of Mexico and Offers the Relaxed, Laid Back Quality of Life of a

Coastal• Local Business Includes Environmentally Friendly Industries of Seafood, Oil

Production, Tourism, Sport Hunting and Fishing, Boating and Water Sports, FineArt and Sculptures, and Bird Watching.

• The Population is Three-Fold from Local Residents, Summer Vacationers and WinterResidents

• The Largest and Fastest Growing Population is Retirees Relocating to the Area

CLOSE PROXIMITY TO MULTIPLE RV PARKS AND RESORTS (795 SITES WITHIN A 2.5 MILE RADIUS OF SUBJECT PROPERTY:

• Drifters Resort (78 Sites) – 0.2 Miles from Subject Property• The Last Resort RV Park (90 Sites) – 0.3 Miles from Subject Property• Salt Water Flats RV Resort (55 Sites) – 0.5 Miles from Subject Property• Majestic Oak Resort (151 Sites) – 0.5 Miles from Subject Property• Estes RV Park (28 Sites) – 0.6 Miles from Subject Property• Indian Oaks RV Park – 0.6 Miles from Subject Property• Mid-Cities RV Park – 0.8 Miles from Subject Property• Egret Bay RV Park (36 Sites) – 1.2 Miles from Subject Property• Marshall’s Landing RV Resort (12 Sites) – 1.2 Miles from Subject Property• RV Haven (13 Sites) – 1.2 Miles from Subject Property• Palm Harbor RV Park (103 Sites) – 1.4 Miles from Subject Property• Rockport Retreat RV Resort (16 Sites) – 1.5 Miles from Subject Property• Paradise Lagoons RV Resort (162 Sites) – 1.8 Miles from Subject Property• Big Fish RV Park (51 Sites) – 2.4 Miles from Subject Property


INVESTMENT HIGHLIGHTS

PROXIMITY TO MAJOR CITIES:• Corpus Christi, Texas | 33 Miles – 34 Minute Drive• San Antonio, Texas | 151 Miles – 2 Hour: 25 Minute Drive• Austin, Texas | 188 Miles – 3 Hour: 25 Minute Drive• Houston Texas | 189 Miles – 3 Hour: 6 Minute Drive

TRADE AREA DEMOGRAPHICS:1-Mile

• 894 Residents• Projected Annual Population Growth in Excess of 1.75% Over the Next 5 Years• $53,453 Average Household Income

3-Mile• 4,297 Residents• Projected Annual Population Growth in Excess of 1.69% Over the Next 5 Years• $63,972 Average Household Income

5-Mile• 15,739 Residents• Projected Annual Population Growth in Excess of 1.13% Over the Next 5 Years• $62,346 Average Household Income

TENANT:• Dollar General (NYSE: DG) Features Investment Grade Credit “BBB” by

Standard & Poor’s• 15,836 Stores Located in 44 States as of August 2, 2019• Dollar General Plans to Undertake Some 2,075 Real Estate Projects in 2019,

Including 975 New Store Openings (Up from 900 in 2018), 1,000 Mature StoreRemodels, and 100 Store Relocations

• Ranked #123 on the Fortune 500 List – Up 5 Points From 128 Last Year (DollarGeneral Has Moved up the Fortune 500 Ranking for the 10th ConsecutiveYear)

• Long Term History of Same-Store Sales Growth – 2018 Marked theCompany’s 27th Consecutive Year


PROPERTY OVERVIEW

Location

Parking

Access

Parcel

Traffic Counts

Year Built

Improvements

Zoning

Located inAransas County

There are approximately 28 parking spaces

on the owned parcel.

The parking ratio is approximately 3.10 stalls per

1,000 SF of leasable area.

Old Schoolhouse Road 1 Access Point

Parcel Number: 4925-175-185-000

Acres: 1.55 Square Feet: 67,649 SF

State Highway 35 South 8,600 Cars Per Day

State Highway 35 South 11,700 Cars Per Day

2015

There is approximately 9,026 SF of existing

building area

PUD - Planned Unit Development

STATE HIGHWAY 35 NORTH

OLD SCHOOLHOUSE RD.

STATE HIGHWAY 35 SOUTH

CARS PER DAY8,600

CARS PER DAY11,700


OLD SCHOOLHOUSE RD.

STAT

E HI

GHW

AY 3

5 SO

UTH

CARS PER DAY8,600

STATE HIGHWAY 188



CARS PER DAY8,600

OLD SCHOOLHOUSE RD.


OLD SCHOOLHOUSE RD.

STAT

E HIG

HWAY

35 S

OUTH

CARS PER DAY8,600


STATE HIGHWAY 188

FARM

TO

MAR

KET

ROAD

1069

DRIFTERS RESORT (78 SITES)

THE LAST RESORT RV PARK (90 SITES)

SALT WATER FLATS RV RESORT (55 SITES)

PALM HARBOR RV PARK (103 SITES)

ESTES RV PARK (28 SITES)

EGRET BAY RV PARK (36 SITES)

ROCKPORT RETREAT RV RESORT (16 SITES)

BIG FISH RV PARK (51 SITES)

PARADISE LAGOONS RV RESORT (162 SITES)

MAJESTIC OAK RESORT (151 SITES)

RV HAVEN (13 SITES)

MID-CITIES RV PARK

MARSHALL’S LANDING RV RESORT (12 SITES)

INDIAN OAKS RV PARK

STAT

E HIG

HWAY

35 S

OUTH

STAT

E HIG

HWAY

35 N

ORTH

OLD SCHOOLHOUSE RD.

CARS PER DAY

8,600

CARS PER DAY11,700



PYLON SIGN

OLD SCHOOLHOUSE RD.

CARS PER DAY8,600

STAT

E HIG

HWAY

35 S

OUTH

2019 ESTIMATED POPULATION

1 Mile 894

3 Mile 4,297

5 Mile 15,739

2019 AVERAGE HOUSEHOLD INCOME

1 Mile $53,453

3 Mile $63,972

5 Mile $62,346

2019 ESTIMATED TOTAL EMPLOYEES

1 Mile 36

3 Mile 371

5 Mile 3,823


SAN ANTONIO151 Miles – 2 Hour: 25 Minutes

CORPUS CHRISTI33 Miles – 34 Minutes

AUSTIN188 Miles – 3 Hour: 25 Minutes

HOUSTON189 Miles – 3 Hour: 6 Minutes

LOCATION MAP

ROCKPORT


AREA OVERVIEW Rockport, Texas

The City of Rockport is the county seat for Aransas County and is located 30 miles northeast of Corpus Christi. There are approximately 20.3 square miles of land within the City’s corporate boundary. Services provided by the City under the general governmental functions include police, street maintenance, public improvements, planning and zoning, engineering, traffic control, parks operation and maintenance, code enforcement, building permits, floodplain management, building, plumbing, electrical inspections and general and administrative services. The City of Rockport had a population of 11,091 as of July 1, 2019.

Rockport is a unique community Rockport made up largely of second homes. Rockport is a destination point for tourists and seasonal visitors. The largest industries in Rockport, TX are Retail Trade, Accommodation & Food Services, and Health Care & Social Assistance, and the highest paying industries are Wholesale Trade, Transportation & Warehousing & Utilities, and Finance & Insurance. Principal Employers of the City are Aransas County ISD, Wal-Mart, Care Regional Medical Center, Wood Group Production Service, H.E.B., Aransas County, City of Rockport, State of Texas, Gulf Pointe Plaza and Rockport Coastal Care Center.

The Blue Wave beach is litter free and accessible to handicapped people. There is a water skiing basin close to the beach. The nearby Texas Maritime Museum houses exhibits related to the growth of the maritime community and the exploration of oil and gas in the region. Visitors may enjoy fishing, camping, and boating at the Goose Island State Park, which is situated upon 321 acres, and is enclosed by the St. Charles and Aransas bays. The Fannin Battleground State Historic Site marks where Col. J.W. Fannin laid down his arms and surrendered to the Mexican General Jose Urrea. Among other popular places to visit are Copano Bay State Fishing Pier, Fulton Mansion State Historical Park, Corpus Christi Botanical Gardens, Texas State Aquarium, and Texas Zoo. Residents of Rockport also celebrate several annual events like the Seafair, Fiesta en la Playa, Rockport Art Festival, and Oktoberfest. Rockport and Nearby Attractions, Texas Maritime Museum, Blue Wave Beach, Connie Hagar Wildlife Sanctuary, Presidio La Bahia and Texas State Aquarium.

Nearby colleges include the Del Mar College, Texas A&M University - Corpus Christi, and University of Houston - Victoria.

The closest major airport to Rockport, Texas is Corpus Christi International Airport. This airport is in Corpus Christi, Texas and is 38 miles from the center of Rockport, TX.


AREA DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

2019 Estimated Population 894 4,297 15,739

2024 Projected Population 975 4,672 16,649

2010 Census Population 547 3,494 14,082

Projected Annual Growth 2019 to 2024 1.75% 1.69% 1.13%

Historical Annual Growth 2010 to 2019 5.61% 2.33% 1.24%

2019 Estimated Households 439 1,808 6,377

2024 Projected Households 481 1,972 6,759

2010 Census Households 262 1,462 5,668

Projected Annual Growth 2019 to 2024 1.84% 1.75% 1.17%

Historical Annual Growth 2010 to 2019 5.90% 2.39% 1.32%

2019 Estimated White 86.70% 87.10% 83.10%

2019 Estimated Black or African American 0.80% 0.90% 2.60%

2019 Estimated Asian or Pacific Islander 0.70% 0.70% 1.10%

2019 Estimated American Indian or Native Alaskan 1.50% 1.30% 1.30%

2019 Estimated Other Races 7.60% 7.00% 8.90%

2019 Estimated Hispanic 34.60% 32.50% 39.10%

2019 Estimated Average Household Income $53,453 $63,972 $62,346

2019 Estimated Median Household Income $43,561 $46,685 $41,026

2019 Estimated Per Capita Income $22,393 $26,480 $25,023

2019 Estimated Total Businesses 9 82 520

2019 Estimated Total Employees 36 371 3,823

ACTUAL SITE20 NATIONAL NET LEASE GROUP

FINANCIAL INFORMATION

Price $1,197,520

Net Operating Income $74,845

Cap Rate 6.25%

Lease Type Absolute NNN

For financing options and loan quotes:Please contact our SRS Debt & Equity team at [email protected].

RENT ROLL

PROPERTY SPECIFICATIONS

Year Built 2015

Rentable Area 9,026 SF

Land Area 1.55 Acres

Address 4433 Highway 35 South Rockport, TX 78382

Lease Term Rental Rates

TENANT NAMESQUARE

FEETLEASE START

LEASE END

BEGIN INCREASE MONTHLY PSF ANNUALLY PSFRECOVERY

TYPEOPTIONS

Dollar General 9,026 05/09/2016 09/30/2031 Current - $6,237 $0.69 $74,845 $8.29 Absolute NNN 5 (5-Year)

(Corporate Guaranty) 10% Increases

ACTUAL SITE21 NATIONAL NET LEASE GROUP

BRAND PROFILE

COMPANY TYPE 2019 EMPLOYEES 2019 REVENUE

Public (NYSE: DG) 135,000 $25.63 B

2019 NET INCOME 2019 ASSETS 2019 EQUITY CREDIT RATING

$1.59 B $13.20 B $6.42 B S&P: BBB

Dollar General dollargeneral.com

Dollar General Corporation has been delivering value to shoppers for 80 years. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 15,836 stores in 44 states as of August 2, 2019. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo.

RETAIL PROFESSIONALS

OFFICES LARGEST REAL ESTATE SERVICES FIRMin North America

exclusively dedicated to retail

RETAIL LISTINGSin 2018

TRANSACTION VALUEin 2018

275+ 25+ #1 1500+ $2.6B

SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made

available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not

purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified

purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*Statistics are for 2018

SRSRE.COM/NNLG

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