DG RETAIL PARTNERS - INVESTMENT OPPORTUNITY

CONCEPT & INFORMATION

DG RETAIL PARTNERS - DISCLAIMER

This document and its content are proprietary & confidential
For discussion purposes only
Not an offer to sell or distribute securities

THE OPPORTUNITY- DG RETAIL PARTNERS

Investment Objective continue the proven track record of fund
partners and purchase 500 Dollar General (DG) prototype stores.
Purchase 150 stores per year for the next 3.5 years

The fund will purchase stores in bulk from DG preferred developers.

Target purchase prototype stores with 15 years on initial lease term.

10% rent increase at year 15
10% rent increase at each of five, 5 year renewals

Stores will be new construction & purpose built for DG at a location of

their choice and to their specifications. NNN leases.

DOLLAR GENERAL-OVERVIEW
Dollar General is a discount retailer
focused on delivering value to customers!
Leading Dollar store concept in the U.S.

$20.5 billion in sales in fiscal 2015 targeting $30

billion in 2020
12,800 + stores /43 states as of 02/2016
Projected 18,000+ stores in 2020
9,120 square-foot prototype stores
10,000 - 12,000 total stock keeping units (SKUs)
from Americas most-trusted manufacturers
114,000 + employees & 14 distribution centers

DOLLAR GENERAL - MARKET LEADER

IN DOLLAR SPACE 56.4% SHARE

RECENT PRESS - APRIL 2016

THE PROTOTYPE STORE

The Dollar General (DG) prototype store
has, approx. 9,100 square feet and is
operated by a store manager, one or two
assistant store managers, and three or four
sales associates.
70% of DG stores are in freestanding
buildings (prototype)and 30% are in strip
shopping centers.
The fund will focus almost exclusively on
purpose built prototype stores.

THE PROTOTYPE STORE

The DG prototype store features a low
cost, no frills building with limited
maintenance requirements, low operating
costs, and value oriented merchandise
with in select proven categories.
This formula enables DG to deliver low
retail prices to loyal customers.
Most DG customers live within three to five
miles of the store - a 10 minute drive.

DG MERCHANDISE
DG stores offer everyday life necessities,
which drive frequent customer visits.
DG product assortments provide an
opportunity for customers to address their
basic shopping needs with one trip.
DG sells high-quality national brands from
leading manufacturers such as P&G,
Coca-Cola, Nestle, General Mills, Kellogg's
and Nabisco, which are typically found at
higher retail prices elsewhere.
DG private label brands offer even greater
value.

DG MERCHANDISE
DG offers up to 11,000 SKUs.
However, the number of SKUs in a given
store will be less and vary based upon the
store's:

Geographic location
Merchandising initiatives
Seasonality
Promotional efforts
Other market factors

DG MERCHANDISE
Most SKUs are priced at $10 or less.
Over 75% of SKUs are $5 or less.
25% of SKUs are $1 or less.
DG separates merchandise into four
categories:

1)consumables - 75.3% of sales

2) seasonal - 12.5% of sales
3) home products - 6.4% of sales
4) apparel - 5.8% of sales

MASS MERCHANT PRICING SAME BASKET COMP = WALMART!

DG RETAIL PARTNERS - CURRENT PORTFOLIO

Total Value - $68,000000
Partner Capital Committed - $16,250,000
3 Funds - 77 Properties

Square Footage 685,000

Annual NOI - $5,450,000
Lease Duration 3 -15 years
Rent increase at renewal 10%

PORTFOLIO PROPERTIES

77 Stores
16 States
100% Occupancy
NNN or NN Leases
3 -15 year leases
Majority 9,100 sq. ft.
prototype stores

DOLLAR GENERAL STORE ACTIVITY

(SOURCE: DG ANNUAL REPORT)

PETER KUHN DG RETAIL PARTNERS

FUND PRINCIPAL
CEO IBP Insurance Services - 28 years

Top 100 Fastest Growing Private Company in SJBJ

Senior Vice President Benefit Commerce Groups - 4 years

INC 5000 Executive

Licenses & Certificates:

CPA State of CA (inactive)

Series 6, 7, 63, 65 (inactive)

Testified before SEC on Municipal Bond Price Transparency

Manages municipal bond fund with 350 CUSIPS
Seasoned venture, private equity and real estate investor

ERIK CONRAD DG RETAIL PARTNERS

FUND PRINCIPAL

President InCommercial, Inc 15 Years

Licensed Real Estate Broker 16 Years
Involved in over 1,200 Net-Leased Real Estate Transactions
Manage 150+ Retail Properties across 34 States
Former Board Member EO Chicago (Entrepreneurs Organization)
Owned and Operated Multiple Real Estate Asset Classes

Retail
Multi-family
Hospitality
Office

B.A. Northwestern University

INVESTMENT OPPORTUNITY
Purchase 150 stores per year for 3.5 years
Total program 500 stores approx. $550 - 600 million in assets

$30,000,000 of preferred equity per year for 3.5 years.

Total preferred equity program commitment $100,000,000 over 3.5 years
Capital Structure - 90% Preferred Equity/ 10% Sponsor Equity
10% Co-investment capital to be provided by the Fund Principals

8% -10% preferred return to preferred equity. Returns tiered as follows:

8% - for Investment of 100k - 499K
9% - for Investment of 500k - 999 k
10% - for Investment of 1,000k plus

INVESTMENT OPPORTUNITY
157 stores identified and under LOI from current and previous business
partners
Anticipated Fees / Expenses
Asset Management / Sponsor Fee 50 Basis Points
Property Management Fee 5% of Gross Rents
Contact Peter Kuhn for more information
Phone 408-363-6004 email peter@ibpis.com
Preliminary for discussion purposes only.
Note: Exact terms and structure of offering are subject to change.