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Home My WebLink About20111861 d CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4226 FAX: (970) 352-0242 P. O. BOX 758 GREELEY, COLORADO 80632 C. COLORADO August 3, 2011 ENTRUST RETIREMENT SERVICES INC C/O FBO HOWARD ARMSTRONG IRA 11497 11 17171 PARK ROW STE 100 HOUSTON, TX 77084 RE: THE BOARD OF EQUALIZATION, 2011, WELD COUNTY, COLORADO - ADMINISTRATIVE DENIAL OF PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE DESCRIPTION OF PROPERTY:ACCOUNT#: R4858507 PARCEL#: 121119319001 -PVI PC L1 PLATTEVILLE COMMONS Dear Petitioner: On July 29, 2011,the Board of County Commissioners of Weld County, Colorado, convened, and acting as the Board of Equalization, pursuant to Section 39-8-101, C.R.S., et.seq., considered your request for an Administrative Denial of your petition of appeal of the County Assessor's valuation of your property described above, for the year 2011. The assessment and valuation of the Weld County Assessor was affirmed as follows: ACTUAL VALUE AS ACTUAL VALUE AS DETERMINED BY SET BY BOARD ASSESSOR $910,600 $910,600 )14.71O )/k17) 2'-'B-ac// 2011-1861 AS0079 ENTRUST RETIREMENT SERVICES INC - R4858507 Page 2 A denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options; however, said appeal must be filed within 30 days of the denial: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's(CBOE's)decision to the Board of Assessment Appeals (BAA). Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals, only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10), C.R.S.) Appeals to the BAA must be made on forms furnished by the BAA, and such appeals should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 NOTE: On or after August 10, 2011, any appeal of the valuation of rent- producing commercial real property to the Board of Assessment Appeals shall provide to the County Board of Equalization the following information within ninety (90) days after the appeal is filed. For two full years, including the base year for the relevant property tax year: (1) actual annual rental income (2) tenant reimbursements (3) itemized expenses (4) rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space Fees: A taxpayer representing himself is not charged for the first two appeals to the Board of Assessment Appeals; however, a taxpayer being represented by an agent or an attorney must submit a fee of$101.25 per appeal. OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony, exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals for a review of the record. (Section 39-8-108(1), C.R.S.) OR 2011-1861 AS0079 ENTRUST RETIREMENT SERVICES INC - R4858507 Page 3 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your current valuation ends. (Section 39-8-108.5, C.R.S.) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located will make the selection. Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public, upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed $150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Very truly yours, Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DUFF & PHELPS PO BOX 260888 PLANO, TX 75026-0888 2011-1861 AS0079 r Cka01- I0 :3a 7/2 NOTICE OF DETERMINATION Christopher M. Woodruff ' t S Date of Notice: 6/22/2011 Weld County Assessor Telephone: (970) 353-3845 or (720) 652-4255 1400 N 17th Ave L. 18 A (I: (J 3Fax: (970) 304-6433 Greeley, CO 80631 E-mail: appeals@co.weld.co.us www.co.weld.co.us Office Hours: 8:00 AM -5:00 PM • 1 .d I'"L/ LEGAL DESCRIPTION/ SCHEDULEIACCOUNT NO. TAX YEAR , TAX AREA PHYSICAL LOCATION R4858507 2011 0180 PVI PC Li PLATTEVILLE COMMONS 380 JUSTIN AV,PLATTEVILLE ac W ENTRUST RETIREMENT SERVICES INC V C/O FBO HOWARD ARMSTRONG IRA 11497 11 17171 PARK ROW STE 100 1. HOUSTON,TX 77084 • ASSESSOR'S VALUATION ACTUAL-VALUE`PRIORTO PROPERTY CLASSIFICA'I ON ACTUAL VALUE AFTER REVIEW REVIEW. COMMERCIAL 910,600 910,600 TOTAL $910,600 $910,600 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: CMO5- The law requires that all of 2009 and the first 6 months of 2010 data be used to establish current values.We have considered all(3)three approaches to value in arriving at your current valuation. We have denied your appeal based upon this data. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, §39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. DUFF& PHELPS P O BOX 260888 PLANO TX 750260888 2011-1861 APPEALPROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 91510"Street, Greeley, CO To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail or deliver a copy of both sides of this form to: Weld County Board of Equalization 915 10th Street, P.O.Box 758 Greeley,CO 80632 Telephone(970)356-4000 Ext, 4225 To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 for real property and on or before July 20 for personal property—after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 12, §39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 13i3 Sherman Street, Room 315 9th Avenue and 9th Street Denver, CO 80203 P.O. Box C (303)866-5880 Greeley, Colorado 80632 www.dola.colorado.00v/baa (970) 356-4000 Ext. 4520 Binding Arbitration For a list of arbitrators,contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30,2010? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to* 39-8-106(1.5), C.R.S.) $ What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal,etc.) .1nQsQci en Calla 4 , i QS.L, O nka a,)4L, Lc)u-fl GL COmmar o AlatIZA, Ufa tacos Q_u o l O11:4 t can Calk , 513 s (fir t a ucuttAs et 611101,-06- „ . TTESTATioN 1 I, the undersigned owner or agentt of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. abb_.LL rncovi, \Ltu3 .DA 0 Signature Telephone Number Date Attach letter of authorization signed by property owner. DUFF&PHELPS May 27, 201 1 Weld County Assessor's Office 1400 N. 17th Avenue Greeley, CO 80631 Re: Parcel # 121119319001 —395 Justin Avenue We are requesting the above referenced property assessment be reviewed. Based on our review of the current market data, the market value of the subject property is approximately$762,756. The property represents a retail property occupied by Dollar General located at 395 Justin Avenue. In support of the suggested value, we have included the Income Approach to value and a copy of the most current lease with a lease term from 5/2/2008 through 5/31/2018. The rental rate us based on the actual lease rents paid by Dollar General. The rental rate of$8.53 psf. or $77,700 annual used in the analysis is for the initial term ending 5/31/2018. The subject property contains approximately 9,106 square feet and built in 2008. There were no current sales of similar type properties in the county. Market vacancy and credit loss is estimated at 5% and is deducted from the gross potential rents. The rental rate is based on NNN basis so minor expenses to the owner for management and reserves are deducted at 7%. The capitalization rate concluded in this analysis is at 9%. We were noticed for 2011 at a value of$910,600 for both land & building or$100.00 psf. Based on the attached analysis, we feel the current market value of the Dollar General at 395 Justin Avenue to be $762,756 or$83.76 psf. After your review, please call to discuss. I can be reached at 972/463-5540 or by email at debbie.moore@duffandphelps.com. Sincerely, LW- :k... Debbie Moore Senior Associate Specialty Tax CThDI" lP - Account Number RH%5`b-501 Parcel Number lam g3i9001 Owner Name En4tu54 rernQnI `)P,rl nus 3Xnc CIO DOIICi.f G-ca cJUQ-/ Phone Number q u113 X540 e-mail (: tidtE . rn ae @ ou1FGndphelP it Qt +fft Anipalarri REAL PROPERTY QUESTIONNAIRE Attach additional documents as necessary. MARKET APPROACH This approach to value uses comparable sales from the appropriate time period to determine the actual value of your property. The following items, if known, will help you estimate the market value of your property. If available, attach a copy of any appraisal or written estimate of value. Have similar properties in your immediate neighborhood sold within the 18-month data gathering period? DATE SOLD PROPERTY ADDRESS SELLING PRICE Based on these sales and accounting for differences between sold properties and your property, state the value of your property. $ COST APPROACH (For Non-Residential Properties Only) This approach to value uses replacement construction costs from the appropriate time period to determine the value of your property. The following items, if known, will help you estimate the replacement cost of your property. ORIGINAL YEAR BUILT BUILDER CONSTRUCTION COST List all changes made to your property prior to January 1 of the current year, i.e., remodeling of storefront; expansion of storage area; addition to parking, service or manufacturing area. DATE DESCRIPTION OF CHANGE COST Is your structure in typical condition for its age? If not, why? Based on the replacement cost of construction and of any changes, including depreciation, state the total value of your property. $ INCOME APPROACH (For Non-Residential Properties Only) This approach to value converts economic net income from the appropriate time period into present worth. If the property was rented or leased, attach operating statements showing rental and expense amounts for this property. Indicate square foot rental rate for all tenants. (Attach rent and lease schedule) If known, list rents of comparable properties. If available, attach operating statements showing rental and expense amounts for comparable properties. If an appraisal using the income approach was conducted, please attach. FINAL ESTIMATE OF VALUE State your final estimate of the property's value. $ 1 "D Q ,1 ¶ *o 15-AR-DPT ARL VOL 2 1-84 Rev 10-09 DOLLAR GENERAL Dollar General Corporation Company Growth Se Development 100 Mission Ridge Phone:6 t 5-865-4000 Goodlettsville,TN 87072 TO WHOM IT MAY CONCERN: This letter is to authorize Duff&Phelps,LLC,and the employees of this company to act on behalf of,and as agents, in matters pertaining to the taxation of real property owned by us or under our control. This authorization will remain in effect until such time as otherwise notified in writing. Your cooperation is requested in assuring that all notices and correspondence will be forwarded directly to: Duff&Phelps LLC P.O.Box 260888 Piano,TX 75026-0888 Sign • Printed: Vice President of Lease Administration Title: �STATE OF tQ COUNTY OF Q`(\,V\ SOt1 }� Before me, TAc'�r wt \.\ cu tct ,a notary public,on this day personally appeared 1 Net_o.c \C n K VO\i\,j C ,known to me to be the person whose name is subscribed to the foregoing statement and acknowledged to me that he/she executed with same for the purposes and consideration therein expressed. ll^^ —� GIVEN under my hand and seal of office this WI' day of c , 20AL. `,,,,iepn,,,,,,,,,�, Notary: CL'9 p H ��•`+.,� • •A•.84s% My commission expires: I S. "kV• STATE STATE •.'A • OF ; TENNESSEE • • • • NOTARY • 2 "Ore* .PUBLIC 41 .0•140't•oN�COUN��%%% skiconimisston bps NOVA 2012 • v kit rir it it ie lie R I nib"- , j 11 j s • !!r • g• 4 i k a i i. ir . • I 1 I.. . 1 • • s a w 1 . , s • s , r :' I t' a :rzs - n Rif A . ti a # f •bit Oill ELLS• t -rile. 33 tB . a r 1. ii '..r �, f� ° < > a Rkg1 otra t { Appeal u: INCOME ANALYSIS 10886 Date: 07/14/2011 395 JUSTIN AVE ,PLATTEVILLE ,CO 50201-6-0000010886 Account No:03-66-19-3 ACCOUNT#R4858507, Gross Building Area (GBA): 9,106 SF Percent Rate Income Net Rentable Area (NRA): 9,106 SF Leased Area: 9,106 SF 100 % $8.53 $77,700 Vacant Area: 0 SF 0 % $0.00 $0 Gross Potential Income (GPI): $77,700 Vacancy Loss (-) 5.0 % -$3,885 Reimbursed Expenses (+) $0 Secondary Income (+) $0 Effective Gross Income: $73,815 Minus - Real Estate Expenses: Management -5.00% of EGI -$3,691 Utilities $0.00 Per SF $0 Taxes $0.00 Per SF $0 Insurance $0.00 Per SF $0 Maintenance $0.00 Per SF $0 Administration $0.00 Per SF $0 Reserves -$0.16 Per SF -$1,476 Leasing Costs $0.00 Per SF $0 Non-Recoverable Tenant Impmts $0.00 Per SF $0 Total Expenses: -$0.57 Per SF -$5,167 Net Operating Income: $68,648 Overall Capitalization Rate: 9.0 % Value Indication: $762,756 Value Adjustments: Excess Land Value (+) $0 Personal Property Value (-) $0 Lease-up costs(-) $0 Miscellaneous (+/-) $0 Total Adjustments: $0 Adjusted Property Value: $762,756 Note: Rental rate based on actual lease rents paid by Dollar General. ASSIGNMENT AND ASSUMPTION OF LEASE& GUARANTY KNOW ALL MEN BY THESE PRESENTS that Gordon Kolacny and/or assigns,whose legal address is 514 W. 29th Street,Loveland,CO 80538,of the County of Larimer, State of Colorado(Assignor) in consideration of One Dollar and other good and valuable consideration paid to it by Entrust Retirement Services,Inc. FRO Howard Armstrong IRA#11497-11, c/o Entrust Retirement Services, Inc., 17171 Park Row, Suite 100, Houston,Texas 77084-4935 (Assignee),does hereby assign,transfer,and set over to Assignee,its successors, legal representatives and assigns, all ofAssignor's right,title and interest in and under that certain Lease dated October 24,2006,by and between DG Retail,LLC., as tenant, and Assignor,as Landlord(the"Lease")concerning premises described as follows: Dollar General Store 395 Justin Avenue Platteville,CO 80651 County of Weld Store#10886 Together with Assignor's rights and interest in that certain Lease Guaranty fully executed on November 17, 2006 and executed by Dollar General Corporation, with respect to such lease. Assignee hereby assumes as of the date hereof all of the obligations of Assignor, as Landlord, under the Lease,to the extent that such obligations arise from and after the date hereof. Assignor shall warrant and defend title to the Assignor's interest in the Lease unto Assignee against the claims and demands of all persons claiming an interest therein. This instrument may be executed in counterparts. IN WITNESS WHEREOF,Assignor and Assignee have hereunto set their hands this!"day of�ti— 20O.c\ Assn: ,6sssi /J �y �i -"Pr.0/ / /'ariaria1 /trrne.✓fr vC+ iE.i��/ BY: The Estate of Gordon S. Kolacny,deceased STATE OF COLORADO) )ss. County of Latimer ) The forego' rostrum nt w acknowledged this day of I C by CtO r Witness my hand and official seal. My commission expires . H 4 to-) Notary u lic DONNA Mr1NCI NOTARY PUBLIC; STATE Of= COLOt:;4DO ASSIGNEE: Entrus etire en Services,In O Ho strong IRA#11497-1I STATE OF TEXAS COUNTY OF /-M rri 5 a Thaforegoing instrument was acknowled d beforl me on A U f 0,2009,by ITr onc1/4 Y� qs rresidP,ii- ,on behalf of the company. Lll fV j `remenrc>erVi e --L-71C • FAO /warn 4fritsfi, x`'47 / 7-11Notary is *Pt OUOCHUYNGUYEN ": r) MY COMMISSION EXPIRES •rF Jaaay24,2010 � 'i «4“--1 —+' - It CERTIFICATIONI OF VITAL RECORD.- s.„i\ ..• ;-.-,- \..1.\7,, ? _ . � STATE OF COLORADOd' ` " ,,�t n \ kt. 5' tt'-' COLORADO DEPARTMENT OF PUBLIC HEALTH'AND ENVIRONMENT ,`,' 1 �,f HOLDTO.LIGHTTO VIEW WATERMARKYF \ ` I STATE OF COLORADO STATE FILE NUMBER CERTIFICATE OF DEATH 1 - T o ECEefnn PiP,MEv u,N zsE 1DAeEOYDUi 55005,a •rl Cordon Stone KOLACNY male January 13 2009 ' $OCALSENRm S.AOw fp uF IYEAH is UNDER I OAY a DATE OF RRIN 1 pRIMYUCE IC1Y Sl.u>rw•.v^NUMBER41 Bn 83 ,1mu. 0., at 20.,1 • Good 4 514 18 8920' `B3 'Dm• "" C °'"' 4August 20, 1925 ,Govdl'and Kaosas: - L WAS OECfeENT Eve,' I 9a.RACE OF D EAT"ICn.4 only on•I US ARMED FORCES? / OMo NOSvnAlx Mmthani •DEMO COCA J 0 Munflii"om 0...Mama aW••ISp•..'N ..4,F CIL NAME((Mot Inameaw,Om"+ uo..l a-CI-.roMTl DRLOCACONOF tAn , \ OM COUNTY Or DEATH be - ` McKee:Medical Center : ...w _J "^Loveland Lorimer: 1 . is,DECEDENTS USUALOCOJPATO4 a,YIN DOFSWWES911NDUSTNY$, - +A Ii,WRTALSIATYS-14M.t Ia&mustyl wilt pIn r.N. m.I 42-Maoism e a .s I.I.v r y WMmE.a c owner:/operator /< auto/dealership '� c-A1 divorced 'ID•RESIOfHCEdTATE Ib Cdl"lY r-_/ ]e Cltt DYM OR LOCATIO SC 5 REETANONVN0ER Colorado Larimer +,s v Loveland ', A&.Yo 516 Neat 29th.Street `Iqi 1] INSIDE lit 1M CODE l AS DECEOE TCFN$ .CORIOINi S RACE MC 541. I. TO DECEDENTS FDVGTD IYpMIY only p , \ CITTS f Mbiv1 pu I.i'l IWw# COvt Li., k EoM41,1 $111114,n,'41 [unpISST El. ty , N Iwq I1ICSIn.15 a 7.1 p .. i 1' aN �'. 805380. � "k2,--.•$2,•>:',"''4y .� � cwhito�y+x'1K\ ': 18.. I? FATHER rade-(FM(mom.:Lan a oT ER NAME it Midas 4a( 11 1T LI' "T"."-"AlUM Yo.So .•M - p'' PAPEn TS ' EA" ,h tep,S.. .r. uce i Rudolph R. Kolacny Agnee Kate Stoney _ / Bruce7Kolacny son ZO ETNoo OF D s o5cnaN{ S µ'I r DO°.mlu F O SPDTI ION W d en Nt LOC T1OM ary 81F E pb 1 •ISP• SITLN 0 Ga n[C• O .nnrl 5 / ILA y..] .} t�91B} '.lom oo u anPi' Kibbey Fishburn Crematory f Loveland Colorado 'M gFUNERAL x1.5NA%URE OF FU eW.LO RELTOfl OR En1pN ACDNe A55UL I j 36N E DAODRESSOF F/G Iry ( �''-: �' KLBBEY FISIIBURN FUNERAL NOME 1. " CS ° •e 1.102 Lincoln Ave , Loveland Co nr '80537 K .: IL REG STMASAN.MaW+1tMF EP>DArtFLEDW NWFYvI �I ^ � ' E ;✓ ISanLTary 16 20D9 / a ru DF DE.A` D An ; , � DS -CORCWER OnIFD5 + ' -.L� %' 2220 , "A Janu ry ;'3 :200494„......,.....,,,C-2-220 ,i. /% xes 5 I "TD SE COMP, .OONL p C!TI Vw0 ENYSICANt, sm.:, 4 S O% TOSE COYRETEO ST COF HER xET m G N y•nwh0D Npum y'vv.. .•M},[ uN 911 J21 n .bas I .MI n.uo IkryIn mYWSb.e x tithe / I ••W td•.. a.E , YS. / date am plea and ban* 01444 maim*, a cE nrlFn M i'n'` SlpNlun yraLimer S CO ©w? I Zd `U� .. �Fd` i , in,t,, 'Dap Coroner rl_ xi�o tEscNfDl«vn mn.n � :� DeresICNED .ar r..q t January 14, 2009 , • a vx [�v�y, TITLEANO MALL NO AOOT1Es FCERi FIER.CORO ER(T yPW 1 � ' n \` Thomas M. Blomquist, MD 1900 N. 'Boise Ave., Loveland,•Colorado •1 *1 • 8053E •\ Si. E OFARENWNO PHYSICIAN M DINE i.LAN[EM MEN C�.� \ ei MANNER OF DEATH I 5]N DATEOF INJURY 13M¶11450 SSE wIltiV Al ]St DESCWSE NOMNNRY OCCURRE r ' Y1r ..t OF ed^p — WmN 0.S YuN - T p S— Yv, , D (0Ø55• \ n liro•r.mlmp WnnN SY.MACE OF INJURY-Al home tN ..•L1.4ary.a� SE LOCp.TpH{y WNu 1.t /W.MR, HVO.‘CNF fdnry SlW ' _ wm5c. uwl o 41MEDIATEGWf1ENTERONLYO [Gi UTE IN to(,SR l4(01 AND(41 eu.M iS'T od•gtntMl iC«OEpn R•.p ryN•.•n.bn. 'Nla y1I•:M I-.n ul i - •EFTN cOHpT10Ns DVE TOQHU AFONEO A N rvY pHM IF 'r'D .pN ,d. 'S2!kett 'n i)kleaa!makic (.Pk�caCAr � �36{�I'S' i ATwo Ti1W :u Due oRASA SiIFAIc •3 in;..„...„.....,... .•M e. ea.a P uNOSRLVINOGuit'' (/ 15{1 I I ' • PA OI la 'I`'O-�..Q(t �1M•ai • wt'l1n'cO ec i _'jtQ a. _. WIT OTHER SIG MFICANT1144.. lIY -1" Nd. r(e0 ! w • 11 TOO a-NY M bMSI . p IWlll p N6VM Y�M1 nM.eM1/ IVx axpl N.nNIMM to d0•NI.T no v - i, ,JAN 6� /'� L� aeama.� � S ., z> A 1 `5' DATE ISSUED :- V 2 1', .� i " a _ ,0 5 1 `, ` E —nONALD S I IVMAN1. m r ' \t' t THIS IS A TRUE CERTIFICATION OF NAME AND FACTS AS STATE REGISTRAR" / r,;n r� 3" ,/,,et, ti c•' lt, RECORDED IN THIS OFI{ICE.Do not accept:unless prepared on 4, - 1 IIII IIII 'Igp I��I V 'III VI�III �'IIII II�� r Y{if02. f' i 41�r ",�u1wATr a dus gnatue,oftdle Registrar PENALTYaBY CAW,Sec[on 25,2 118 ;IIItl IIN.III I V�I III IIIN II III��II Ipl li ill ' \S711� vr' I •ItI 0�.�k %II ''.".11T1 r(I Q C Colorado Revised Status 1982.If a person alters uses ai[empts to UUUIIII uuu A IIgMM I1 WWW 444 NNNIII t��r % 5 3 I�logs'" l• o, " use or furnishes to another for deceptive use any veal statistics record " S L •.4 0 5 6 4' 2 4 i L°. ? . Nt1 Ce ltTa rr '42'14. NOT VALID IF PHOTOCOPIED REV UI(07 " h•s 4 w y L— Libel n PLdT1E ak( Co LEASE MODIFICATION AGREEMENT#2 Re: Dollar General Store#10886 Platteville,CO THIS LEASE MODIFICATION AGREEMENT, entered into this 11°' day of August 2008, by and between Gordon S. Kolacny, an individual, Lessor, and DG Retail, LLC, a Tennessee limited liability company,Lessee. WITNESSETH, WHEREAS,the undersigned parties now being Lessor and Lessee respectively, under the terms of a Lease dated October 24, 2006,and thereafter modified by one (1) separate letter agreement, and primarily covering a storeroom located at 395 Justin Avenue, City of Platteville, County of Weld,and State of Colorado 80651,do now desire to modify and amend such lease. . NOW, THEREFORE, for and in consideration of One Dollar ($1.00) and other good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged, and of the promises and undertakings hereinafter set forth, the parties agree that such Lease shall be and is hereby amended and modified as follows: 1. The Commencement Date as referred to in the Lease is established as May 2,2008,and the expiration date of the Lease term is established as May 31,2018. 2. The first Lease Year as referred to in the Lease in Section(C)is established as June 1,2008, ending May 31,2009. All other terms and conditions of the Lease and of any previous modifications thereof shall remain unchanged. The provisions of this Lease Modification Agreement shall bind and inure to the benefit of the parties hereto,their heirs,executors,administrators,successors and assigns. IN WITNESS WHEREOF,the parties have hereunto set their hands and seals,this /S day of 2008 (as to Lessor); and this 0/r, day of JAJA, 2008 (as to Lessee). IIJJ Signed and acknowledged in duplicate in presence of: witness for Lessor: LESSOR: GORDON S.KOLACNY BY: Gordon S.Kolacny Owner W mess for Lessee: LESSEE: �'Retail,LLC Maurice A.Laliberte Vice President of Lease Administration L-Ln1R- loge /} LESSOR AS INDIVIDUAL STATE OF 6/taIo ) ) SS COUNTY OF 1-4,ft' r( ) On this the/5—day of_ gl,2008,before me,the undersigned officer,personally appeared Gordon S. Kolacny, known to me(or satisfactorily proven)to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained. IN WITNESS WHEREOF,I hereunto set my hand and official seal. / ��o2,EMMo; �- 14 - (lo Oy�- 0TAR j, v.c My Commission Expires: 2.'- '- ...•- fi LESSEE STATE OF TENNESSEE ) SS COUNTY OF DAVIDSON ) On this the 4 ' day of n 2008,before me,the undersigned officer,personally appeared Maurice A. Laliberte, Vice President of Lease Administration of DG Retail, LLC, a Tennessee limited liability company, and that he as such officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of corporation by himself as Vice President of Lease Administration. IN WITNESS WHEREOF,I hereunto set my hand and official seal. l +'j SBUCfF`s My�Commission Expires: I11 1I It Is. STATE a r .goy 111 tha8 ;Hover �r yca,me.ewsorr,tou 2 kklacgla FS 11/00 LEASE THIS LEASE,entered into this 24th day of October 2006, by and between Houma Dollar Partners, LLC, a limited liability corporation, and/or assigns, as lessor (the "Lessor"), and DG Retail,LLC,a limited liability corporation, 100 Mission Ridge,Goodlettsville,Tennessee 37072,as lessee(the"Lessee"). WITNESSETH 1. PREMISES. Lessor represents that it is purchasing the real property described in the metes and bounds legal description and property survey collectively referred to as Exhibit"A"attached hereto and made a part hereof. Lessor anticipates receiving lawful fee simple title to such property on or before December 15, 2006. Said Exhibit "A"real property is located at 1255 US Highway 85 in the City of Platteville, County of Weld, State of Colorado 80651. Lessor hereby leases unto Lessee on the terms and conditions hereinafter set forth a building measuring 9,014 square feet, outside dimensions (the"Demised Premises"), located in and upon said Exhibit "A" real property,and as shown on the site plan attached hereto and made a part hereof as Exhibit"B", together with appurtenant rights contained in the Reciprocal Easements,Covenants and Restrictions Agreement to be placed of record upon Lessor receiving fee title to the Exhibit"A" Real Property and attached hereto as Exhibit"H",to which reference is made. 2. TERM. A. COMMENCEMENT. To have and to hold the Demised Premises with the appurtenances, unto Lessee for the term provided hereafter upon the covenants and agreements herein set forth,the term of this Lease shall commence upon: (1)that date sixty(60)days after the Lessor has completed all work and renovation required to be performed by it as described in"Scope of Work", Exhibit "C", attached hereto and made a part hereof; or (2) the date on which Lessee shall open the Demised Premises for business to the public,whichever of said date shall first occur such date being hereinafter referred to as "Commencement Date", subject, however, to the provisions of Paragraph 2-C hereof. Provided it shall not be in default hereunder, Lessee shall be entitled to extend the term of this Lease for three(3)successive periods of five(5)years each,upon the same terms and conditions as herein set forth, except as to term,rent and number of renewals. Lessee may extend this Lease by giving Lessor written notice as provided herein not less than one hundred eighty(180)days prior to the expiration of the original term,or of any renewal thereof. In the event Lessee does not give notice of exercising its right to renew this Lease, all succeeding renewals shall terminate. It is agreed between Lessor and Lessee that the Leased Premises shall be used by Lessee as a retail store for the sale of general merchandise, including,but not limited to and among other merchandise categories,the unrestricted sale of grocery and food items. B. TERM. The Primary term of this Lease shall end on the last day of the tenth(10'")consecutive full Lease Year, thereafter, as said term "Lease Year" is defined in Paragraph 2-C hereof, unless sooner terminated as provided or permitted herein. Lessor and Lessee shall enter into a Lease Modification Agreement to establish the Commencement Date and expiration date of this Lease within thirty (30) days of the Commencement Date. It is expressly agreed that such action by Lessee shall not constitute acceptance of such Demised Premises as being completed as required herein. C. LEASE YEAR DEFINED. The term "Lease Year" as used herein shall mean each twelve(12) full calendar months during the term hereof. The first Lease Year shall begin on the Commencement Date if the Commencement Date shall occur on the first (1st) day of the month; otherwise, then the first Lease Year shall commence on the first day of the first full month next following. The period prior to the Commencement Date shall be a partial month. 3. RENT. The rental during the initial term shall be six thousand four hundred seventy five and 00/100($6,475.00)dollars per calendar month payable in advance on or before the first day of each month without offset or demand,except as otherwise provided herein. The rental during the first option period shall be seven thousand one hundred twenty three and 00/100($7,123.00)dollars per calendar month payable in advance on or before the first day of each month without offset or demand,except as otherwise provided herein. The rental during the second option period shall be seven thousand eight hundred thirty five and 00/100($7,835.00)dollars per calendar month payable in advance on or before the first day of each month without offset or demand,except as otherwise provided herein. The rental during the third option period shall be eight thousand six hundred nineteen and 00/100($8,619.00)dollars per calendar month payable in advance on or before the first day of each 2 not contained in this written agreement shall be valid or binding. No waiver of any condition or covenant of this Lease by either party shall be deemed to imply or constitute a further waiver of the same or any other condition or covenant of the Lease. 36. BINDING EFFECT. This Lease shall bind and inure to the benefit of the parties hereto,their heirs,successors,executors,administrators,and assigns. 37. PARKING LOT MAINTENANCE. Lessee agrees to pay Lessor two hundred sixty two and 91/100 ($262.91) dollars per month during the initial term, three hundred thirty eight and 03/100 ($338.03) dollars per month during the first option period, four hundred thirteen and 14/100 ($413.14) dollars per month during the second option period and four hundred eighty eight and 26/100 ($488.26) dollars per month during the third option period as Lessee's sole reimbursement to Lessor for its actual cost of care and maintenance on the parking lot. Care and maintenance shall include the maintenance of any grass or landscaped area with the Exhibit"A"real property,as well as lighting,cleaning,security,striping,and repairs. 38. REAL ESTATE TAXES. Lessee shall reimburse Lessor for general real estate taxes (including special assessments) paid by Lessor for the Demised Premises and which were incurred during the actual year of Lessee's tenancy, being a tax period beginning with the date Lessee accepts possession of the Demised Premises through the termination or expiration date of this Lease. Lessor will furnish Lessee photostatic copies of any tax bills paid by it, and Lessor further agrees to join Lessee in appealing any unreasonable tax assessment. Lessor shall notify Lessee in writing within ten(10)days of receipt of any notice that real estate taxes are to be increased and, in the event Lessee so elects, Lessor shall join with Lessee in proceedings to protest such increase. Lessor agrees to pay all taxes before delinquency and shall further obtain all savings offered for early payment. Lessee shall not be obligated to pay any portion of any penalty for delinquent payment nor for a saving which could have been realized for discounted early payment. Any payment due hereunder shall be prorated as of the termination of expiration date of this Lease. Lessor's failure to submit to Lessee the request for reimbursement within six(6)months after the end of the annual tax year shall nullify Lessor's right to collect from Lessee the reimbursement for that particular tax year. 39. INSURANCE. Lessor agrees to carry comprehensive general liability insurance on the Exhibit "A" real property with a combined single limit for bodily injury, personal injury, and 17 IN WITNESS WHEREOF,the parties have executed this Lease in duplicate the day and year first above written. Witness for Lessor: LESSOR: HOUMA OLLAR PARTNERS,LLC BY: Charles W.Ree ,J . Witness tj for Lessee: LESSEE: DG RETAIL,LLC lit tn`9A-AWlr BY: a le ertker Seni Vice President Real Estate &Store Development 19 Sperry Van Ness/Fiducia Properties Blog: Recent Retail Cap Rate Trends rage 1 of 3 Share Report Abuse Next Blog0 Create Blog Sign In SPERRY VAN NESS / FIDUCIA PROPERTIES BLOG THE OFFICIAL BLOG OF KANSAS CITY AREA COMMERCIAL REAL ESTATE FIRM SPERRY VAN NESS/FIDUCIA PROPERTIES. MONDAY, JUNE 28, 2O10 ADOTHIS Recent Retail Cap Rate Trends Share I Capitalization rates for NNN retail properties _ appear to be stabilizing, according to a .* ACo TMf5 EtUG Tre MT recently published report by Washington, D.C.- ,rr Technorati FG:o.c" == based Calkain Companies, Inc. The report, entitled 20W Cap Rate Report, documents movement in transaction volume and cap �� Sperry 11Jn Ness rates over four primary retail sectors Dollar Stores, Banks, ■ ,:t Pharmacies, and Quick Serve Restaurants. Over 1,600 NNN retail transactions were studied by Calkain in the study. The Calkain report identified several factors that appear FOLLOWERS to continue to force upward pressure on cap rates. These include Follow persistently tight credit markets and lingering concerns over the Hrith Friend Conned economy. However, other factors appear to be pointing to at least Followers(7) a modest stabilization in cap rates, if not during the second half of ¢� 2010 then into 2011. These include perceived improvement in economic indicators, scarcity of quality inventory, and slight influx of 1031 tax deferred exchange money and a flight to qualityalNI investments. Already a membe 1Sign in In looking at the four studied sectors, only Quick Serve Restaurants (QSR) experienced cap rate"compression" in 2010. It is presumed SLOG ARCHIVE that this was the case due to the fact that most QSRs are located in major markets and have strong brand recognition although other ► 2011 (1) factors were cited as well. Y 2010 (12) P December (2) Apparently the largest beneficiary of recent market trends is the P November (2) Dollar Store sector. This sector is composed of three primary P October (1) tenants--Dollar General, Family Dollar, and Dollar Tree. These retailers have actually added a significant amount of new stores P July (2) over the past year, apparently due to their role as a "Substitute V June (1) Sperry Van Ness/Fiducia Properties Blog: Recent Retail Cap Kate 1 rends ragc L.vi J Good,"or more specifically a "Substitute Retailer." (See previous Recent Retail Cap Rate Trends blog post) Dollar store cap rates averaged approximately 9.5% inD. February (2) 2010, up slightly from their 2009 average of 9.2%. These higher cap rates are attributed to the fact that dollar stores are generally ► January (2) located in secondary or tertiary markets and that most of their ► 2009 (7) teases have been NN rather than NNN. Pharmacies continue to be viewed as quality investments and ABOUT ME remain stable. The perceived creditworthiness of tenants such as GREG FINLEY Walgreen's and CVS has driven demand in this sector. Watgreen's, KANSAS CITY METRO, perhaps the "flagship" pharmacy investment, had an average cap MISSOURI, UNITED rate of 7.7% in 2010, some 50 basis points below the pharmacy 8;, STATES sector average of 8.2%. Demand for pharmacy investments are Greg Finley lives in the typically driven by long lease terms, tenant stability, and strong Kansas City hinterlands where he locations/market presence. sprays Roundup under his white vinyl fence. A five tool renaissance One noteworthy issue is the continued bid-ask spread among all man, Greg is Managing Director of net leased retail sectors. We at Sperry Van Ness/Fiducia Properties Sperry Van Ness 1 Fiducia Properties have experienced this phenomenon acutely. Although the re-entry where he spends quite a bit of time of buyers into the market is noteworthy, getting those buyers to setting commercial net teased real agree with sellers as to the worth of a specific asset is extremely estate in the states of Mo, Kan., challenging. We've observed an approximate 40-60 basis point la., and Neb. He blogs about difference of opinion between buyers and setters of net leased commercial real estate at assets, specifically in the Dollar Store class. www.svnfiduciaproperties.com, writes about sports at Although the Calkain report suggests more of a return to normalcy www.righthash.com and scribbles and cap rate compression in 2011, others are not so optimistic and coffee-spitting-humor at anticipate continued upward pressure on the returns for NNN retail www.finleyriver.com. Greg has investments. Undoubtedly many factors will come into play which been published in the Wall Street wilt affect specific cap rates in specific markets for specific assets. Journal under the headline For Sale: Staples-Anchored Shopping You may review the Calkain report in its entirety at Center in Rolla, Missouri. Greg http://calkain.corn/reports/CAP-Rate-Report-2010.pdf. holds undergraduate and graduate degrees in Urban Planning from For more information on specific investment opportunities in the Missouri State and Kansas retail NNN market, please contact us at 888.879.2083 or via email Universities, respectively. While at at greg.finiey@svn,com. Missouri State, he once missed a 49'h yard field goal wide right. POSTED BY GREG FINLEY AT 5:16, PM LAI Contact him at greg.finley®svn.corn YIEW MY COMPLETE PROFILE 0 COMMENTS : Retal l Re search SINGLE - TENANT OUTLOOK Marcus&NI ill ic11(1P 2011 Outlook SINGLE-TENANT BUYERS ANTICIPATED TO BE LESS RISK-AVERSE IN 2011 Recent retail sales, excluding autos and gas,outperformed industry expectations by rising slightly above their pre- recession peak, signaling growing consumer confidence heading into 2011.The correction in consumer spending has largely run its course, and the resumption of private-sector job gains, along with the first-time homebuyer tax credit, boosted year-over-year retail spending,especially for big-ticket items.Electronics retailer Best Buy,for instance,reported a 60 percent jump in earnings during the third quarter.With the economy strengthening and payrolls forecast to expand in the coming months,consumer confidence with continue to grow,supporting a more substantial uptick in retail spend- ing through the holiday season.Consumers will remain cost-conscious,though,until housing market challenges subside. With little improvement expected in suburban housing conditions for a while longer,Walmart and Target will modify growth strategies by focusing on the urban grocery arena.Dollar stores,meanwhile,will deploy capital obtained during the recession to expand market share,opening in areas where rents previously were too high to pencil out. Single-tenant net-leased properties with national-credit retailers will remain the most sought-after deals as high-net- worth individuals and well-funded REITs compete for acquisitions.Unimpressive returns offered by alternative invest- ments and ongoing stock market uncertainty continue to heighten private buyers'appetite for low-risk,corporate-backed assets.Cap rates for these deals have already compressed 50 basis points this year.Yields will tighten further in 2011 but should stabilize by midyear as returns approach pre-recession levels.Lower cap rates and a shortage of high-quality as- sets listed will expand acquisition targets for many buyers,and properties leased to well-known franchisees will gamer more attention and dear the market faster.Cap rates for these assets will average 50 basis points to 150 basis points above those for best-in-class investment-grade deals,depending on the financial strength of the guarantor.Looking ahead,new accounting standards proposed by the Financial Accounting Standards Board could impact the single-tenant sector sig- nificantly by requiring lease liabilities to be accounted for on corporate balance sheets.If approved,the standards would likely influence businesses'decisions to buy or lease real estate. SINGLE-TENANT RETAIL MARKET OVERVIEW 7.9%cap rate Drugstores: Major drugstore chains will slow new-store openings to focus on improving down20 sales at existing locations_Waigreens,for instance,is currently remodeling 5,500 stores to 3 3Q better align its product offerings with consumers'bargain-seeking spending patterns. 7.8%cap rate Quick-Service Restaurants:Fast-food chains will continue to offer diverse value menus to down 30 draw customers.As more individuals return to work,competition for morning commuters trams point, will intensify-,resulting in more quick-service establishments that offer breakfast items. 3Qo9-3(ito 8.9%cap rate Casual Dining: Stronger job growth will gradually increase restaurant visits next year, no change. in while the Small Business Jobs Act will provide some financial relief for struggling opera- u p°"'0 tors,easing the pace of closures.Given the level of diversity among operators within the X09 X10 industry,though,cap rate trends vary widely by location and strength of aeditwor ess. 9.1%cap rate Discount Stores:Dollar store chains continue to benefit from the shift in consumer spend- no ing toward greater affordability. Major chains will extend expansion efforts into 2011 to basis points capture greater market share,as well as increase private-label offerings that provide higher 3Q09• profit margins. 8.1%cap tate Convenience Stores/Gas Stations: Convenience stores and gas stations will continue to t,change n perform well,especially as stronger job gains increase daily traffic volume.Like most other retailers,gas stations also will modify in-store product offerings to attract consumers. to DOLLAR STORES Dollar Stores Benefit from Long-Term Shift Toward Discounts Dollar Store Sales Trends Cost consciousness will benefit discount retailers even as the economy Median Price per Square Foot strengthens, as a significant share of consumers experienced lost jobs,wage 8• $120 ..m•.Average Cap Rate cuts or reduced hours through the recession.Both Dollar General and Family > Dollar have posted solid same-store sales since mid-2008. As such, leading 3 0 5100 4�...-.._-.-'-._. 9% < °� ,vsr' d extreme-value retailers will continue to expand in 2011,and many will broad- & 580 w 8% I en their lines of private-label offerings in an attempt to generate higher profit 4 margins.Family Dollar will bolster its new-store openings by 50 percent in fis- • $60 m A cal 2011 to 300 units and overhaul between 600 and 800 existing locations.The 171, company also plans to add 70 private-label food items to capture a share of • 540 6% grocery market sales.Dollar General,meanwhile,will open 600 sites in 2010,a 06 07 08 09 3Q30' pace of growth the company expects to maintain over the coming years. S Sourcetings: 12-Month&Period swrces:Marcus�Mnticnap Research Services,costar craw.Inc. Faced with a shortage of other high-quality, single-tenant, net-leased listings, more investors have returned to seeking dollar store assets, driv- ing year-to-date dollar store deals to above the level recorded in 2009.Dollar store cap rates currently average 9.1 percent, though properties in second- ary markets or less desirable locations can trade above 9.5 percent.Given the abundance of dollar stores on the market,cap rate compression will be mod- est at best in 2011 as sellers compete for buyers.The median price for these properties climbed 4 percent through the first three quarters of 2010 to$101 Monthly U.S. Retail Sales, per square foot. Excluding Auto and Gas $280 BIG-Box RETAIL Long-Term Growth Models Geared Toward Smaller, Urban Sites • $255 °. Big-box retailers continue to gear expansion efforts toward smaller for- e N 5230 mats in major urban markets,reversing a long-term trend of building in the s suburbs. Walmart and Target both plan to shrink the size of future stores to f. 3 $205 allow for greater access into high-barrier metros. Target will open its first urban prototype in Seattle in 2012,with plans to expand in 10 other markets, $180 1 02 03 04 05 06 07 08 09 10- including San Francisco and Baltimore,over the next several years.The new Through September formats will range in size from 60,000 square feet to 100,000 square feet,down Sources:Marcus&Minichap Research Se,vices,U.S.Census Bureau from the current 125,000-square foot to 180,000-square foot layouts.Walmart also will roll out an aggressive urban expansion strategy,introducing a floor plan around 20,000 square feet, a fraction the size of its Supercenter stores. Both Target and Walmart will increase their efforts to expand grocery sec- tions and capture produce-related revenue,which has fast become a source of competition as consumers prepare more meals at home.Greater emphasis on produce from these nontraditional grocers will increasingly dilute market - share from traditional supermarkets. Drugstore Sales Trends Sales volume involving big-box properties climbed 15 percent year to mi Median Price per Square Foot date,as investors acquired vacant sites for re-configuration.Primary markets $aco .=,,Average Cap Rate in California and the Northeast account for a sizable share of recent closings, 8 q• $350 __, o but sales are fairly dispersed across most primary markets.Cap rates vary -'` by location,averaging from the mid-8 percent range for sites near shopping $. $300 � � centers to above 10 percent for stores in secondary markets. • $250 6% ° DRUGSTORES Drugstores Slow New-Store Openings to Focus on Operations $2013 06 07 08 09 3Q10* 5% Major drugstore chains will decelerate new-store openings to focus on •Tralirg t2-MmthPeriod Sources:Marcus&Milltchep Research Services,Costar Group,fnc- renovating existing locations,optimizing product assortments and enacting loyalty programs. Walgreens will open fewer than 250 stores in 2011, after debuting 500 stores in 2010,as well as acquiring 258 Duane Reade stores,25 Snyder's Drug Store locations and dozens of Eaton's Apothecary sites.The company has shifted its strategies toward remodeling, with 5,500 locations under renovation at a cost of$50,000 per establishment. CVS also will slow Marcus&Millichap •Single-Tenant Research Report page 2 store openings and pursue rival buyouts,with plans to acquire 200 indepen- dent pharmacies over the next two years. Facing greater competition from convenience stores, grocery chains and discount retailers, major drugstores Quick-Service Restaurant Sales Trends will expand product offerings and amenities to drive traffic and same-store In Median Price per Square Foot y% sales.il/algreens will increase the number of stores that sell alcohol and CVS a $500 -- Average Cap Rate will introduce DVD rental kiosks, while both Rite Aid and Walgreens will m 8% launch customer Loyalty programs. c 5aso Y At the height of the recession, drugstore sales retreated due to equity a Saoo • 7% r) erosion removing a large share of 1031-exchange buyers.With more investors r pursuing low-risk investments, however, year-to-date closings have risen 6 53so , ' 6% 4 percent from the same period in 2009. As store openings ease in the corn- ing years, drugstore deal flow may subside as fewer builder-initiated deals Saoo ss emerge.Assets sold thus far in 2010 posted a median price of$316 per square 06 07 08 09 3Q10' •Railing tarMonth Period foot,down 3 percent from year-ago levels,while cap rates have compressed Sources:Marcus&Millichap Research Services.Costar Group.inc. 30 basis points year to date to the mid-to high-7 percent range. QUICK-SERVICE RESTAURANTS Fast-Food Chains Compete for Early Morning Commuters Quick-service restaurants will outperform the food industry as a whole in 2011 as consumers continue to favor bargain-priced eateries.Through the downturn,many chains sustained customer visits by aggressively marketing I new products while expanding their value menus and introducing concepts Convenience Store/Gas Station Sales Trends geared toward greater value.Taco Bell,for instance,debuted a$2 Meal Deal $300 =Median a perCap Squarefoot 9% allowing consumers to purchase three items for$2.Fast-food operators will maintain diverse menus to drive traffic, but competition will center on the b $275 8% 5 morning meal market.During the first half of 2010,quick-service chains offer- os _ i ing breakfast items recorded a 2 percent increase in morning traffic from one a Szso o year earlier. This trend should intensify as job gains help increase morning g commuter counts. e 5225 6%A Fast-food deal flow has accelerated 15 percent year to date, driven by $ El strong buyer demand for predictable cash flows and lenders' willingness to $200 06 07 08 093Q10* — 5% 3 finance assets below$2 million.With buyers preferring fast-food chains,cap -Trailing 1Z-Month Period rates fell 20 basis points to 7.8 percent during the first three quarters,though 5wrces:Marcus&Millichap Research Services.Costar Group.Inc. assets in tertiary areas or those leased to less creditworthy franchisees still trade with initial yields above 8 percent.The median price for fast-food assets climbed 5 percent in deals made so far this year, after falling more than 10 percent in 2009. CONVENIENCE STORES/GAS STATIONS Convenience Stores/Gas Stations Expand Product Lines to Rely Less an Gas Traffic Casual Dining Restaurant Sales Trends Supported by resumed job creation and less volatile gas prices,the aver- im an e r Square Foot age number of monthly convenience store visits rose through the first half of 1 5350 Average Cap Rate 2010. This trend will persist through 2011 as job growth accelerates. While _ _ __ sales will grow in step with firming economic conditions,convenience stores i $300 i' 9% and gas stations will continue to improve product offerings in an effort to rely i less on gasoline sales as the primary customer draw. Quick-service chains Szso ax a such as Quizno's,for instance,are teaming with convenience stores/gas sta- r $200 • >% s lions to operate food-service sites,while Redbox has inked agreements with several convenience stores in the Northeast,Southeast and Midwest. ` $150 6% With fewer owner-users acquiring convenience stores/gas stations,sales 06 07 08 09 3Q10* velocity has fallen 16 percent so far this year.This pullback can be attributed Trailing 12-Month Period M,n Research Services,Costar Group,Inc. partly to challenges securing small business loans. With the recent passage of a small business lending bill,however,owner-user sales could strengthen in early 2011. Cap rates for convenience stores/gas stations have stabilized in the low-8 percent range,holding the median price flat on a year-over-year basis at$203 per square foot. Marcus&Millichap• Single-Tenant Research Report page 3 CASUAL DINING RESTAURANTS Stronger job Gains to Increase Restaurant Visits in 2011 NIarcus&M illichap Payroll expansion and improving consumer confidence have moderated declines in restaurant traffic.While still-soft restaurant sales and store visits NATIONAL RETAIL GROUP will continue to pressure the industry into early 2011,re-employed consum- ers will resume eating meals away from home.As a result,the rate of store visit w�w.NationalRetarlGroup.com or call:Alan g closures should ease considerably next year, particularly among the hard- Managingn D Dir ector hit independent restaurant segment, where net store closures eclipsed full- National Retail Group service chain losses by a ratio of nearly 9-to-1 earlier in 2010.1n addition,the Tel:(415)963-3000 recently passed Small Business Jobs Act will help struggling operators make apontius@marcusmillichap.com necessary investments and payments to keep from shuttering.The volume of space left vacant through the downturn, however, will allow expanding independent restaurants,national chains and startups to lease existing sites at attractive rents.While the near-term operating climate will remain challeng- ing, the restaurant industry should demonstrate greater stability in 2011 as employment strengthens,spurring more frequent restaurant visits. National restaurant sales volume has held relatively flat in 2010, after falling more than 20 percent in 2009.Stabilization has been fueled by owner- users acquiring vacant locations in all-cash deals. Even as the economy im- proves and small business loans become more accessible,lenders will likely exercise increased scrutiny when underwriting and evaluating a restaurant's financial standing. Transactions will continue to get done throughout the country, but the Chicago, Atlanta,Los Angeles and New York City markets will account for a sizable share of deals as national chains and restaurateurs target premier areas for expansion. With economic conditions on the mend, cap rates for restaurant properties in core metros and for chains with strong balance sheets have held flat year to date in the high-8 percent range. Cap rates in tertiary locations will remain well above historical averages,however, until stronger job growth can improve restaurant performance.Nationwide, the median price for casual dining establishments decreased just 4 percent year over year to$197 per square foot,after falling 12 percent one year earlier. RECENT SALES HIGHLIGHTS Marcus Miliichap Pales isPrice lCap Property Name City,Slate P Sq. ate Real Estate Investment Services Lowe's s Shippensburg,PA $17,550,000 5103 8.3% Walgreens Hickory,NC $5,838,926 $394 7.5% Prepared and edited by PepBoys Staten Island,NY $5,775,000 $326 7.7% Michael L.Brown Research Analyst Circle K Peoria,AZ $3,383,333 $967 7.5% Research Services Jack in the Box Palm Springs,CA $1,795,960 5681 7.5% For information on national Denny's Palmdale,CA 51,760,000 $424 8.8% retail trends,contact Buffalo Wild Wings Colorado Springs,CO $1,552,000 5.272 73% John Chang Vice President,Research Services Advance Auto Parts Franklin,IN $1,461,058 5239 8.4% Tel:(602)687-6700 ext.6803 Arbys Ocoee,FL $1,451,000 5609 7.5% lohn.dnarng@usarcusmilliCbap.com7 3% Taco Bell Folsom,CA $1,200,000 $522 Burger King Eloy,AZ $1,020,009 $313 8-1% Price$150 Easy Trip Pittsburgh,PA $917,000 5181 9.2% 7-Eleven Los Angeles,CA $830,000 $409 6.4% C Marcus&Millichap 2010 wvv y.Ma rcusMrllichap.com Dollar General Eagleville,TN 5787,000 55.86 9.6% Pe arfa+adial meereee.fee more sodbMaifrom woes&md&to lobo*.furry iffirt ao mode tr"do"mote sod cont.*m/an.sbw:boeae.r.no rgr+mdr"warmly a'aoi.Me Qom`n iimpiAt say to we alca.mon&',Wet, °idy:l/.1,mA m dolled land Mown.M trrtcd a¢yee•(rood o dcaddd aft moondly mfroin mond.rdet dre oudodes tro aeeanc milked al MAW outputs,mire rirosucoctet SeemsMmm CDads.tamale Seri" "Yak g la.Caleb ,aeenstomisco W.Casd.Gm b.,&anaemic"aoro.jrXi.Wambold d Council of%wins Gnb4 Red Cqtld A& CS taisransommt sate ortaa AVG NNN CAP Rate 9.0%,our data indicates a stabilizing market. $1 invested in Walgreens beat $1 invested 10.00% in technology superstar Intel by nearly two Cap rates differed only slightly between the times, General Electric by nearly five times, major dollar store tenants. Dollar General re- and Coca-Cola by nearly eight times,and the e00% cordedan average cap rate of 9.530/o while general stock market(including the NASDAQ Family Dollar was at 9.48%.This indicates that stock run-up at the end of 1999) by over fif- ]00% cap rate fluctuations were the result of sec- teen times"(Collins). sooty tor wide influences rather than tenant spe- cific ones. It should also be noted that many Walgreens continues to perform today. Wal- 5.00% new dollar stores are to be structured as NNN greens reported an increase of 9.5%to $16.4 2001 3603 2005 2007 2009 leases,a change from the previous double net billion in Q1 2010 sales over the prior year, standard. The new lease structure and low while second quarter sales increased 3.1%to Deal flow of single-tenant net lease proper- price point will likely drive investor demand $17.0 billion. First half year sales rose 6.1%, ties has stabilized during 2010 as economic and may result in lower cap rates. totaling $33.4 billion. Prescription sales were conditions have improved. Buyers view net the dominant factor, rising by 10%and 3.2% lease investments as reasonably safe during in its fiscal year ending Jan.29,Dollar General from the year prior to account for 66.2%and all economic climates and thus their demand observed a 9.5% rise in sales at stores open 63.3%of sales in the first and second quarters remains relatively stable.Due to encouraging at least a year,an increase from 9%the previ- respectively. economic data and the return of 1031 buyers, ous year and the best showing in the sector. cap rates have begun to stabilize.Average net Fourth quarter sales for Dollar General rose If a NNN investor cannot get their hands on a lease cap rate for 2010 year-to-date is 8.10%, 7.5%,a decline from 9%last year. Family Dol- Walgreens store,there are other attractive op- only slightly up from 8.00% in 2009. In con- lar has witnessed a similar trend, its most re- tions in the Pharmacy arena.CVS net revenues trast, cap rates rose from 7.10% to 8.00% in cent quarterly sales rose 3.6% compared with increased $11.8 billion in the three months 2008-09.It should be noted that a major issue 6.4%a year ago.Only Dollar Tree bucked the ended March 31, 2010, a 2.6% increase over in 2010 will likely be a lack of quality,well-lo- trend,observing a same store sales increase of the same period in 2009.For an investor who cated properties and that may serve to further 6.6%in its most recent period,compared with likes to take on risk there is Rite Aid,who has compress cap rates as investors target what 2.2%a year earlier. reported negative growth year to date. little becomes available throughout the year. As a sector,2070 Pharmacy cap rates increased Pharmacy but at a reduced rate. The slight increase is Dollar Stores likely driven by the rising cap rates for Rite Aid Pharmacy tenants remain one of the most properties and the fact that there was an over- Dollar stores have been one of the prime ben- stable sectors in the industry.The creditwor- supply of Pharmacy properties on the market. eficiaries of the economic downturn. While thiness and lease terms for pharmacy tenants The average Pharmacy cap rate for Q1 2010 many other retail chains closed stores, dollar drive much of the demand for these net lease was 8.20%, a 50 bps rise from the 2009 aver- stores underwent unprecedented expansion. properties. Walgreens highlights this attrac- age of 7.70%.However,this 50 bps increase is Dollar General Corp., the largest chain with tive sector:considered by many the gold stan- less than the 80 bps jump in 2008-2009,when more than 8,800 stores,plans to add 600 more dard of NNN properties. cap rates moved from 6.90%to 7.70%. this year. Family Dollar and Dollar Tree, the next two largest chains with 6,600 and 3,800 AVG Pharmacy CAP Rate Unlike dollar stores, cap rates for individual locations respectively, both plan on opening Pharmacy tenants have ranged widely with 200 or more new stores this year. 1000% some certain concepts viewed more favor- ably by investors of real estate as well as eq- AVG Dollar Store CAP Rate uities. Walgreens posted an average cap rate ,000% 700% �.1 ef qual to easily the lo ratt eafera groupi 0 d 9. r 00% 1 equal to Pharmacy cap rate averages in 2009. 0.00% Given their lower credit ratings, it is not sur- e 00% s 00% prising that CVS and Rite Aid had higher aver- 500% - - age cap rates in Q12010,8.55%and 9.65%re- 7.00% spectively. Although Walgreens remains the 2001 2003 2005 2007 2009 p Y 9 9 s Doss star of this sector,the pause in expansion and Jim Collin's book Good to Great, a New York ensuing lack of product may serve to drive 500% Times #1 best seller and one of the most rec- cap rates lower. CVS in particular may benefit 2004 2006 2008 20010 ognizable business books of all time, high- as its fortunes rise on Wall Street. Real estate lights Walgreens as one of only eleven For- investors show a growing appreciation for the Dollar stores tend to be located in second- tune 500 companies to ever go from good CVS lease, which has rent increases (unlike ary and tertiary markets and carry higher cap to great. According to Collins,this requires a Walgreens)and a growing list of stores locat- rates when compared to pharmacy,bank,and Fortune 500 company to be in business for an ed in dense urban markets. These differences QSR properties.As we come to the close of the extended period while posting positive gains highlight the ever changing competitive en- second quarter of 2010, cap rates for dollar before suddenly outperforming the market vironment and investment opportunities as- stores have averaged 9.50%, a slight increase by three times over a 15-year period. sociated with the Pharmacy sector. from 9.20% in 2009. However, compared to 2008-09, when they jumped from 7.40% to "From December 31, 1975,to January 1,2000, CALKAIN COMPANIES, INC. WASHINGTON DC IFLORIDA I MARYLAND 113 M Ng). CC �o ^ fe o h- ' 4 O No ■— ai Min MN rill • d 7 p JCn O fGO C i iiima „• 0 E Ass • i l —■ a 4). J A. Qy Z O J Q D co m n ......... w x r- O O E� m m wo V �� p .k ` M1 a' d mo S Q m r O a M r-9m l0 ?0 0 ra 1- W W W W a Z ¢ p ow _ � � w�„ O p 0 LIJ u IL W W rq CC 0 N m CA p. OD' ci Mw F� U a a vi ^_ a w w c w w w (ettya CLERK TO THE BOARD f PHONE (970) 336-7215 EXT 4226 FAX: (970) 352-0242 WEBSITE: www.co.weld.co.us I915 10TH STREET P.O. BOX 758 C. GREELEY, COLORADO 80632 WI p COLORADO July 25, 2011 ENTRUST RETIREMENT SERVICES INC C/O FBO HOWARD ARMSTRONG IRA 11497 11 17171 PARK ROW STE 100 HOUSTON, TX 77084 Parcel No.: 121119319001 Account No.: R4858507 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 29, 2011, at or about the hour of 10:30 AM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, First Floor Hearing Room, 915 10th Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2011, and mailed to you on or before August 12, 2011. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. 2011-1861 1(DS \ AS0079 ENTRUST RETIREMENT SERVICES INC - R4858507 Page 2 Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION , Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor DUFF & PHELPS PO BOX 260888 PLANO TX 75026-0888 2011-1861 AS0079 Esther Gesick From: Wade Melies Sent: Thursday, July 28, 2011 9:19 AM To: Esther Gesick; Courtney Anaya Subject: FW: R4858507 Dollar Store La _ Is this good enough for an admin. deny? Wade From: Moore, Debbie fmailto:Debbie.Moore@duffandohelos.coml Sent: Thursday, July 28, 2011 9:06 AM To: Wade Melies Subject: RE: R4858507 Dollar Store Wade, Sorry for the delay. Yes,can we do an administrative delay on this one as well until I hear back from the client. At this point there is a good possibility I will be withdrawing the appeal, but I want the chance to provide the information to your client first. Thanks, Debbie Debbie Moore Senior Associate,Specialty Tax T +1 972 463 5540 M +1 214 681 4905 F +1 214 736 1757 Duff& Phelps, LLC 3701 West Plano Parkway Suite 100 Plano,TX 75075 debbie.moore@duffandphelps.com www.duffandphelps.com From:Wade Melies Jmailto:wmelies@co.weld.co.usl Sent:Thursday,July 28, 2011 9:10 AM To: Moore, Debbie Subject: R4858507 Dollar Store Debbie We are scheduled for a hearing tomorrow, 7/29/11 at 10:30 for R4858507 Entrust Retirement Services Inc,The Dollar Store in Platteville. Can we admin deny it? Do I need to prepare a packet? Thank you. Wade 1 020// —/244 Hello