dollar general - fair play, sc

FAIR PLAY, SC

Dollar General

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

FAIR PLAY, SC

Dollar General

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

NET LEASED DISCLAIMER

Dollar GeneralFAIR PLAY, SC

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

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Dollar General


PRICING AND FINANCIAL ANALYSIS

1



Existing Financing

Loan Type Free and Clear

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2016 Marcus &Millichap. All rights reserved.

FINANCING

Annualized Operating Data

650 E Fairplay BlvdFair Play, SC 29643

Price $1,020,889

Down Payment 100% / $1,020,889

Rentable Square Feet 9,026

Price/SF $113.11

CAP Rate 6.75%

Year Built 2012

Lot Size 9,100

Type of Ownership Fee Simple

2

Location



Rent Increases Annual Rent Monthly Rent

Years 1-10 $68,910.00 $5,742.50

Years 11-15 $70,977.00 $5,914.75

Option 1 $78,075.00 $6,506.25

Option 2 $85,881.96 $7,156.83

Option 3 $94,470.96 $7,872.58

Base Rent ($7.63/SF) $68,910

Net Operating Income $68,910

Total Return 6.75% / $68,910

Tenant Trade Name Dollar General

Ownership Public

Tenant Corporate Store

Lease Guarantor Corporate Guarantee

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible

Lease Term 15 Years

Lease Commencement Date 12/1/2012

Rent Commencement Date 12/1/2012

Lease Expiration Date 11/30/2027

Term Remaining on Lease 12 Years

Increases Year 11 and In Options

Options Three, Five-Year Options


Tenant Summary

FINANCIAL OVERVIEW

3




Property Name Dollar General

Property Address 650 E Fairplay Blvd

Fair Play, SC 29643

Property Type Net Leased Discount


Tenant Trade Name Dollar General

Ownership Public

Tenant Corporate Store

Sales Volume $18.9 Billion

Net Worth $5.7 Billion

Lease Guarantor Corporate Guarantee

Credit Rating BBB-

Valueline Financial Strength Stable

Rating Agency Standard & Poor's

Stock Symbol DG

Board NYSE

Rank #164 in Fortune 500

Lease Commencement Date 12/1/2012

Rent Commencement Date 12/1/2012

Lease Expiration Date 11/30/2027

Term Remaining on Lease 12 Years

Lease Type Triple Net (NNN)

Roof and Structure Tenant Responsible

Lease Term 15 Years

Increases Year 11 and In Options

Options to Renew Three, Five-Year Options

Options to Terminate N/A

Options to Purchase N/A

First Right of Refusal N/A

No. of Locations 11,500-Plus

Headquartered Goodlettsville, Tennessee

Web Site www.dollargeneral.com

Years in the Business 74

Other Concepts Owned Dollar General Market, Dollar General Plus

TENANT OVERVIEW

Dollar General makes shopping for everyday needs simple and hassle-free by saving customers time and money with small neighborhood stores

and carefully edited merchandise. Offering the most popular brands at everyday low prices, Dollar General ranks amongst the largest retailers of

top-quality brands including: Proctor & Gamble, Kimberly Clark, Unilever, Kellogg's, General Mills, and Nabisco. Dollar General has over 10,000

locations in 40 states, making it the nation's largest small-box discount retailer in the United States.


PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present this 11,000 square foot Dollar General located in Fair Play, South Carolina. The site is currently under an absolute net lease with 11 years left in the base term. There are increases in year 11 and each of the option periods.

Founded in 1939, Dollar General is a growing Fortune 500 company (number 164), with over $18.9 billion in revenue for 2014. Dollar General’s credit rating was recently upgraded to investment grade (BBB-) by Standard & Poor’s (S&P), and it is publicly traded on the New York Stock Exchange under the ticker symbol, "DG". Dollar General is the largest small-box discount retailer in the United States with over 11,500 stores. Dollar General stores offer convenience and value to customers by offering consumable basic items that are frequently used and replenished such as: food, snacks, health and beauty aids, cleaning supplies, basic apparel, houseware, and seasonal items at low prices.

Investment Highlights

■ Rental Escalations in Year 11 and in Option Periods

■ Absolute Net Lease with 11 Years Remaining in base Term

■ Limited Competition - Nearest Convenience/Grocery OverSeven Miles Away

■ Corporate Guarantee from Nation's Largest DiscountRetailer- Dollar General Corporation

■ Standard & Poor's Rated Investment Grade BBB- CreditTenant

5




INVESTMENT OVERVIEW

Goodlettsville, Tennessee-based Dollar General Corporation is the nation’s largest small-box discount retailer. The company seeks to make shopping for everyday needs simpler and hassle-free by offering a carefully edited assortment of the most popular brands at everyday low prices in small, convenient locations. 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.

In the 2014 fiscal year, the company had $18.9 billion in sales, over 12,100 stores in 43 states, 10,000-12,000 total stock keeping units (SKUs) per store from America’s most trusted manufacturers, 12 distribution centers and more than 105,000 employees.

Dollar General is a company that embraces substance and simplicity. Its mission is “serving others” and the company thinks its customers are best served when they “keep it real and keep it simple”.

Dollar General builds and runs conveniently sized stores to deliver everyday low prices on products consumers need and want, and has successfully done so for many years. It delivers a smarter, easy shopping solution accessible to more consumers. The company’s goal is to provide customers with a better life, employee opportunity and a great working environment.

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.

6




INVESTMENT OVERVIEW

7



The Offering

Property Dollar General

Property Address 650 E Fairplay Blvd

Fair Play, SC 29643

Site Description

Year Built 2012


Lot Size 9,100

Type of Ownership Fee Simple


PROPERTY SUMMARY

Local Map Regional Map

8




AREA MAPS

9




SITE PLAN

10




AERIAL PHOTO


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 263 2,012 5,723

2010 Population 317 2,315 6,530

2014 Population 316 2,368 6,695

2019 Population 330 2,417 6,888

2000 Households 89 884 2,309

2010 Households 105 1,018 2,670

2014 Households 105 1,047 2,746

2019 Households 110 1,066 2,838

2014 Average Household Size 2.60 2.47 2.39

2014 Daytime Population 93 328 798

2000 Owner Occupied Housing Units 61.28% 57.39% 56.25%

2000 Renter Occupied Housing Units 12.04% 10.28% 8.59%

2000 Vacant 26.68% 32.33% 35.16%



2014 Vacant 26.37% 32.47% 36.16%



2019 Vacant 26.47% 32.25% 36.24%

$ 0 - $14,999 17.7% 18.7% 17.2%

$ 15,000 - $24,999 12.7% 12.6% 11.9%

$ 25,000 - $34,999 15.8% 13.9% 12.0%

$ 35,000 - $49,999 17.6% 16.6% 15.8%

$ 50,000 - $74,999 18.7% 16.8% 17.9%

$ 75,000 - $99,999 6.4% 10.3% 11.6%

$100,000 - $124,999 4.7% 4.6% 5.5%

$125,000 - $149,999 2.0% 2.1% 2.5%

$150,000 - $199,999 1.5% 1.9% 2.9%

$200,000 - $249,999 1.1% 0.8% 1.3%

$250,000 + 2.0% 1.6% 1.5%

2014 Median Household Income $37,811 $38,942 $42,869

2014 Per Capita Income $19,265 $25,352 $25,105

2014 Average Household Income $57,328 $56,994 $61,041

Demographic data © 2012 by Experian.

12




DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 6,695. The population has changed by 16.99% since 2000. It is estimated that

the population in your area will be 6,888 five years from now, which represents a change of 2.87% from the current year. The current

population is 49.17% male and 50.82% female. The median age of the population in your area is 46.5, compare this to the Entire US

average which is 37.3. The population density in your area is 85.22 people per square mile.

Households

There are currently 2,746 households in your selected geography. The number of households has changed by 18.95% since 2000. It

is estimated that the number of households in your area will be 2,837 five years from now, which represents a change of 3.33% from

the current year. The average household size in your area is 2.39 persons.

Income

In 2014, the median household income for your selected geography is $42,868, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 11.62% since 2000. It is estimated that the median

household income in your area will be $48,897 five years from now, which represents a change of 14.06% from the current year.

The current year per capita income in your area is $25,104, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $61,040, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 93.58% White, 3.33% Black, 0.00% Native American and 0.78%

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 origin are counted independently of race. People of Hispanic origin make up 1.75% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 2,002 owner occupied housing units in your area and there were 305 renter occupied housing units in your area.

The median rent at the time was $316.

Employment

In 2014, there are 797 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that

49.76% of employees are employed in white-collar occupations in this geography, and 50.81% are employed in blue-collar

occupations. In 2014, unemployment in this area is 6.44%. In 2000, the average time traveled to work was 30.7 minutes.


13




SUMMARY REPORT

Number of people living in a given area per square mile.


14




POPULATION DENSITY

The number of people employed in a given area per square mile.


15




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


16




AVERAGE HOUSEHOLD INCOME

FAIR PLAY, SC

OFFERING MEMORANDUM

Dollar General

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www.MarcusMillichap.com

dollar general - fair play, sc

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