dollar generalpabloproperties.com/dgblast/3dollar/dollar general - stedman, nc (r)… · quality...

DOLLAR GENERAL

REPRESENTATIVE PHOTOS

s t e d m a n , n o r t h c a r o l i n a

O F F E R I N G M E M O R A N D U M

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality AgreementMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as fol-lows:

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 in-formation, 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 le-gal 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 loca-tions 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, en-vironmental 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.

Net Leased Disclaimer

Exclusively listed by:

OFFICES THROUGHOUT THE UNITED STATES AND CANADA

www.marcusmillichap.com

exclusively listedRaj Ravi

201 S Tryon Street Suite 1220Charlotte, NC 28202Tel: (704) 831-4650Fax: (704) 831-4610

License: 281290

EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . .3Dollar General Overview . . . . . . . . . . . . . . . . . . . . . . . . .4Dollar General in the News . . . . . . . . . . . . . . . . . . . . . . .5Location Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

PROPERTY DESCRIPTIONSite Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8Aerial Photography . . . . . . . . . . . . . . . . . . . . . . . . . . 9-10Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Demographics Map . . . . . . . . . . . . . . . . . . . . . . . . . . .12Demographics Sumnmary . . . . . . . . . . . . . . . . . . . . . .13

COMPETITIVE PROPERTY SETRecent Sales Comparables . . . . . . . . . . . . . . . . . . . . 15-16On Market Comparables . . . . . . . . . . . . . . . . . . . . . 17-18

Table of Contents

DOLLAR GENERAL2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

E X E C U T I V E S U M M A R Y

summary

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information . References to square footage or age are approximate . Buyer must verify the information and bears all risk for any inaccuracies . Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

2

Tenant Trade Name Dollar General

Ownership Public

Tenant Corporate Store

Lease Guarantor Corporate Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 15 Years

Lease Commencement 04/30/2016

Rent Commencement 04/15/2031

Lease Expiration Date 08/01/2031

Term Remaining On Lease 15 Years

Increases 10% (Each Option)

Options Five, Five-Year Options

LEASE YEARS ANNUAL RENT MONTHLY % INCREASE:

Lease Years 1-15 $90,127.80 $7,510.65 N/A

Lease Years 16-20 (Option 1) $99,140.52 $8,261.71 10%





Net Operating Income $90,127.80

,

Price $1,390,000.00

Price/SF $154.00

CAP Rate 6.48%

Rentable Square Feet 9,026 Square Feet

Year Built 2016

Lot Size 2.22 Acres

Net Operating Income - Current $90,127.80

Ownership Fee Simple (Land & Improvements)

Proposed Financing New First Trust Deed

Overview

Vital DataLease Summary

Annualized Operating Data

DOLLAR GENERAL2 2 2 0 W a d e - S t e d m a n R d

S t e d m a n , N C


3

Marcus & Millichap is pleased to exclusively market for sale a brand new Dollar General store of approximately 2 .22 Acres located in Stedman, North Carolina . Dollar General has signed a 15 year Triple Net Lease with 10 percent rent increases between each of the five, five-year renewal options . The lease is guaranteed by Dollar General Corporation, which is publicly traded on the New York Stock Exchange under the ticker “DG” and has a current “BBB-” credit rating by Standard & Poors . Dollar General will be delivered in 2016 . The surrounding demographics are well suited to discount retailing, with approximately 7,480 people within a five mile radius and within a close proximity to Cape Fear River Trail and the General William C . Lee Airborne Museum .

■■ Brand New Build-to-Suit | 2016 Delivery■■ 15-Year Absolute Triple-Net Corporate Guaranteed Lease■■ 10 Percent Increases in Each of The Five, Five-Year Options■■ Stable Cash Flows With Zero Landlord Responsibilities

■

■■ Huge 2 .22 Acre Lot | More Residual Value Inland Parcel■■ Well-Suited For The Target Demographics■■ Within Close Proximity to Cape Fear River Trail and the General

William C . Lee Airborne Museum

1 1 4 1 D i l l i o n s F o r k R o a d

EXECUTIVE SUMMARY2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

Investment Highlights

Investment Overview

EXECUTIVE SUMMARY


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Dollar General

“In Dollar General, you’ll find a company that embraces substance and simplicity . Our mission is “serving others” and we think our customers are best served when we keep it real and keep it simple . We build and run convenient-sized stores to deliver everyday low prices on products our customers want . We have successfully done so for many years . We deliver a smarter, easier shopping solution accessible to more consumers . Our goal is to provide our customers a better life and our employees opportunity and a great working environment .”

Headquartered in Goodlettsville, TennesseePublicly Traded on the New York Stock Exchange Under Ticker Symbol “DG”Founded in 1955 in Springfield, Kentucky

Company Highlights

Company Mission

Goodlettsville, Tennessee-based Dollar General Corporation is the nation’s largest small-box discount retailer . Dollar General ranks among the largest retailers of top-quality brands made by America’s most trusted manufacturers, such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola .

Dollar General’s business model stands for convenience, quality brands and low prices . Its successful prototype makes shopping a truly hassle-free experience . The company designs small neighborhood stores with carefully edited merchandise assortments to make shopping simpler . Dollar General doesn’t carry every brand and size, just the most popular ones . The average Dollar General customer completes his or her shopping trip in less than 10 minutes .

Company Profile

Source: http://www2 .dollargeneral .com/About-Us/pages/Index .aspx



5

EXECUTIVE SUMMARY Dollar General

Summary of Terms

Dollar General DG -0.43% , the largest such U.S. discount chain with 12,700 stores, said this week that young adult shoppers now account for 24% of its sales. That amounted to $1.26 billion last quarter, as total revenue rose 7%.

In even more promising news for the retailer, millennials accounted for only 12% of Dollar General’s shoppers. So, customers in that age group were spending about twice as much as the average Dollar General patron.

It’s logical that millennials would start to gravitate to dollar stores as they enter their family-founding years and need to save money. But Dollar General’s progress should be worrisome for the likes of Walmart WMT -0.24% and Target TGT -0.65% as they redouble their own efforts to win younger shoppers and replenish their customer bases.

Young adult spend twice as much as the average Dollar General customer . Millennial shoppers may be increasing scarce at shopping malls, but they are turning up at dollar stores .

Dollar General’s comparable sales rose 2.2% last quarter, compared to 1% at Walmart and 1.2% at Target. (Arch-rival Dollar Tree DLTR 0.58% reported a 2.3% gain.)

The dollar store chain put a big dent into Walmart’s business in particular in the immediate post-recession period. During that time, Dollar General expanded its fleet aggressively and attracted customers looking to cut down on longer drives when gas prices were high.

But coming out of the recession, Dollar General, along with Dollar Tree and Family Dollar, have sought to improve the look of its stores and the calibre of its food to keep the pressure on.

Dollar General has added 23,000 coolers at 9,000 of its stores to expand its grocery assortment. At about 160 Dollar General Plus stores, where the retailer goes for a higher-end presentation, it is testing a small assortment of the best-selling fresh fruits and vegetables.

This has put Dollar General on a collision course with Walmart, which is investing heavily in upgrading its fresh food selection and is looking to avoid losing shoppers making smaller grocery runs.

In the first quarter, Dollar General launched a new health-focused private brand line named Heartland Harvest, as part of its campaign to win over millennials. The retailer is also expanding its house brand offerings in beauty care and ramping up its smartphone app.

In New Challenge to Walmart, Dollar General Is Winning Over MillennialsBy Phil Wahba, Fortune - May 27, 2016

Dollar General in the News

1 1 4 1 D i l l i o n s F o r k R o a d

Executive SummaryEXECUTIVE SUMMARY2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

20 MILES - GENERAL WILLIAM C LEE AIRBORNE MUSEUM

EXECUTIVE SUMMARY


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Dollar General

Founded early in the 19th century, Stedman is located about 10 miles east of Fayetteville on Highway 24 in Cumberland County . Originally known as Blockersville, the Town was named for the family of John C . Blocker . The name was shortened to Blockers when the stagecoach station and a post office wer constructed, and remained the same until the Cape Fear and Yadkin Valley Railroad was built from Fayetteville to Wilmington .

Stedman is a growing community that incorporates elements of the past and the future into the present with a great deal of harmony, and Stedman evidences serious development in all phases of community life .

The museum tells of General Lee’s life history and of the early years of the US Army Airborne and the use of glider planes during WWII .

The trail is a 10-foot wide paved path for walkers, joggers, bicyclists and others utilizing non-motorized transportation. It winds for nearly 5.3 miles, one-way, through a beautiful blend of trees, plants and wildlife with spectacular views of the river.

14 MILES - CAPE FEAR RIVER TRAIL


AboutSTEDMAN

12 MILES - AIRBORNE & SPECIAL OPERATIONS MUSEUM

Nearly 20 years from dream to reality, the museum has become a place to honor and preserve the legendary feats of the airborne and special operations troops who have contributed so much to defending our nation’s interests . From the early days of the Parachute Test Platoon to the ongoing War on Terrorism, the Airborne & Special Operations Museum recounts the actions of heroic soldiers .

P R O P E R T Y D E S C R I P T I O N

description


SITE PLAN2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

MAXELL ROAD

WADE-S

TEDMAN R

OAD

8


LOCAL MAP2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

DOLLAR GENERAL

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InternationalMerchant Services

VFW POST9925

C&M GasAppliance Specs

Party TymeLimo

ModernMaintenanceRefrigeration

DiscountAuto Brokers

Bethany VolunteerFire Department

Bethany UnitedMethodist Church


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EXECUTIVE SUMMARY Dollar General52,677 ADT

Fieldale, VA

AERIAL MAP2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

DOLLAR GENERAL

STRICKLAND’S GROCERY


REGIONAL MAP2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

CHARLOTTE(DISTANCE: 145 MILES)

DOLLAR GENERAL

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GREENVILLE(DISTANCE: 95 MILES)

JACKSONVILLE(DISTANCE: 89 MILES)

RALEIGH(DISTANCE: 60 MILES)

WILMINGTON(DISTANCE: 83 MILES)

COLUMBIA(DISTANCE: 180 MILES)

MYRTLE BEACH(DISTANCE: 129 MILES)

GREENSBORO(DISTANCE: 106 MILES)

HICKORY(DISTANCE: 190 MILES)

FAYETTEVILLE(DISTANCE: 12 MILES)

PROPERTY DESCRIPTION Dollar General

1 MILE

3 MILES5 MILES

1-MILE 3-MILES 5-MILES

$ 0 - $ 14,999 9.6% 9.0% 10.5%

$ 15,000 - $24,999 9.8% 9.6% 10.3%$ 25,000 - $34,999 11.5% 11.2% 11.0%$ 35,000 - $49,999 12.1% 12.1% 12.7%$ 50,000 - $74,999 34.7% 28.9% 25.1%$ 75,000 - $99,999 10.8% 11.7% 12.4%$100,000 - $124,999 6.7% 8.6% 8.3%$125,000 - $149,999 1.8% 4.6% 4.8%$150,000 - $200,000 2.0% 2.5% 2.6%$200,000 to $249,999 0.3% 0.4% 0.6%$250,000 + 0.7% 1.5% 1.9%2014 Median HH Income $55,511 $57,534 $56,2122014 Per Capita Income $21,105 $25,172 $26,389

2014 Average Household Income $60,819 $68,885 $70,118

1-MILE 3-MILES 5-MILES2014 Population 863 4,632 12,812

2019 Population 870 4,854 12,812

1-MILE 3-MILES 5-MILES2010 Households 289 1,645 4,3982014 Households 299 1,692 4,557

2019 Households 305 1,782 4,838

2014 Average HH Size 2.58 2.64 2.632014 Daytime Population 65 348 1,3182000 Owner Occupied Housing Units 76.11% 77.27% 77.07%2000 Renter Occupied Housing Units 14.81% 14.07% 14.66%2000 Vacant 9.08% 8.66% 8.27%2014 Owner Occupied Housing Units 78.91% 80.49% 79.76%2014 Renter Occupied Housing Units 21.09% 19.51% 20.11%2014 Vacant 11.05% 10.36% 10.50%2019 Owner Occupied Housing Units 78.62% 80.37% 79.76%2019 Renter Occupied Housing Units 21.38% 19.63% 20.24%2019 Vacant 11.37% 10.58% 10.78%

12This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information . References to square footage or age are approximate . Buyer must verify the information and bears all risk for any inaccuracies . Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

Population

Household

Income

DOLLAR GENERAL

DEMOGRAPHICS2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C


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Demographic Summary -- 5 Miles

Demographic data © 2012 by Experian/Applied Geographic Solutions.

PopulationIn 2014, the population in your selected geography is 12,113 . The population has changed by 27 .57% since 2000 . It is estimated that the population in your area will be 12,811 five years from now, which represents a change of 5 .76% from the current year . The current population is 49 .19% male and 50 .80% female . The median age of the population in your area is 39 .5, compare this to the Entire US average which is 37 .3 . The population density in your area is 154 .17 people per square mile .

Households There are currently 4,557 households in the selected geography . The number of households has changed by 28 .28% since 2000 . It is estimated that the number of households in the area will be 4,838 five years from now, which represents a change of 6 .16% from the current year . The average household size in the area is 2 .63 persons .

Income In 2014, the median household income for your selected geography is $56,211, compare this to the Entire US average which is currently $51,972 . The median household income for your area has changed by 31 .52% since 2000 . It is estimated that the median household income in your area will be $61,454 five years from now, which represents a change of 9 .32% from the current year .

The current year per capita income in your area is $26,888, compare this to the Entire US average, which is $28,599 . The current year average household income in your area is $70,117, compare this to the Entire US average which is $74,533 .

Race & EthnicityThe current year racial makeup of the selected area is as follows: 73 .07% White, 18 .55% Black, 0 .23% Native American and 0 .76% Asian/Pacific Islander . Compare these to Entire US averages which are: 71 .60% White, 12 .70% Black, 0 .18% Native American and 5 .02% Asian/Pacific Islander .

People of Hispanic orgin are counted independently of race . People of Hispanic origin make uo 5 .54% of the current year population in the selected area . compare this to the Entire US average of 17 .13%

Housing In 2000, there were 2,984 owner occupied housing units in the area and there were 567 renter occupied housing units in the area . The median rent at the time was $343 .

Employment In 2014, there are 1,318 employees in the selected area, this is also known as the daytime population . The 2000 Census revealed that 53 .06% of employees are employed in white-collar occupations in the georgaphy, and 46 .92% are employed in blue-collar occupations . In 2014, unemployement in this area was 6 .38% . In 2000, the average time traveled to work was 27 .2 minutes .

DEMOGRAPHICS2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

C O M P E T I T I V E P R O P E R T Y S E T

competitive

Dollar General


15

COMPETITIVE PROPERTY SET

Dollar General (Subject Property) 2220 Wade-Stedman Rd, Stedman, NC 28391

Sales Price: $1,390,000Price/SF $154.00Cap Rate: 6.48%Rentable Square Feet: 9,026 Square FeetYear Built: 2016Lot Size: 2.22 Acres

Dollar General 8638 Trouble Creek Road, New Port Richey, FL 34653

Dollar General 3260 Pleasant Hill Road, Kissimmee, FL 34746

Close of Escrow: 12/19/2013Sales Price: $1,727,000 Price/SF $190.00 Cap Rate: 6.35%Rentable Square Feet: 9,100 Square FeetYear Built: 2013


A brand new 9,100 square foot freestanding building under a 15-year triple-net lease with 10 percent increases at the beginning of each of the four, five-year option periods .

A brand new building with 15-year triple net lease, 10 percent rent increases at the beginning of each of the four, five year option periods .

Recent SalesCOMPETITIVE PROPERTY SET2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

16

Dollar General



Dollar General 6576 Laurel Island Parkway, Kingsland, GA 31548


Dollar General 6514 Massachusetts Avenue, New Port Richey, FL 34653


A brand new 9,100-square foot freestanding building under a 15-year triple-net lease with 10 percent increases at the beginning of each of the four, five year options periods .

A brand new building with 15-year triple-net lease, 10 percent rent increases at the beginning of each of the four, five-year option periods .

Dollar GeneralCOMPETITIVE PROPERTY SET

Recent Sales

COMPETITIVE PROPERTY SET2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

Dollar General


17


Dollar General (Subject Property) 2220 Wade-Stedman Rd, Stedman, NC 28391

List Price: $1,390,000Price/SF $154.00 Cap Rate: 6.48%Rentable Square Feet: 9,026 Square FeetYear Built: 2016Lot Size: 2.22 Acres

Dollar General 1377 South Dixie Highway, Deerfield Beach, FL 33441

Dollar General 115 North Elm Street, Adel, GA 31620

Status: On MarketList Price: $2,404,300 Price/SF $267.09 Cap Rate: 6.00%Rentable Square Feet: 9,002 Square FeetYear Built: 2014


A brand new building with a 15-year triple net-lease, 10 percent rent increases at the beginning of each of the four, five-year option periods .

Dollar General will occupy a brand new 9,002-square foot freestanding building on a 1 .42 acre lot and has agreed to a 15-year absolute triple-net lease with 10 percent increases beginning at each of the four, five year option periods .

On Market ComparablesCOMPETITIVE PROPERTY SET2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

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Dollar General



Dollar General 341 7 Airport Road, Dalton, GA 30721


Dollar General 10208 China Spring Road, Waco, TX 76708


Dollar General is currently under a triple-net lease with 14 years remaining on the initial term . There are three, five-year options to renew .

Dollar General will occupy a brand new 9,100-square foot freestanding store operating under a 15-year triple-net lease with 10 percent increases at the beginning of each of the five, five-year option periods .

On Market Comparables

COMPETITIVE PROPERTY SET2 2 2 0 W a d e - S t e d m a n R d , S t e d m a n , N C

Exclusively listed by:

OFFICES THROUGHOUT THE UNITED STATES AND CANADA

www.marcusmillichap.com

Raj Ravi201 S Tryon Street Suite 1220

Charlotte, NC 28202Tel: (704) 831-4650Fax: (704) 831-4610

License: 281290

exclusively listed

dollar generalpabloproperties.com/dgblast/3dollar/dollar general - stedman, nc (r)… · quality...

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