Dollar General 2337 US-231 Panama City FL - Matthews … · Year 1-15 $10,277 $123,321 $13.55...

O F F E R I N G M E M O R A N D U M™

Dollar General2 3 3 7 U S - 2 3 1 | PA N A M A C I T Y, F LO R I DA

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E XC L U S I V E LY L I S T E D BY

Contents04

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EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

K Y L E M AT T H E W SBROKER OF RECORD

LIC # BK3367365

A L E X H A R R O L DAssociate

[email protected] (310) 919-5790MOB (310) 977-1651LIC # 02009656 (CA)

G A R Y C H O UFVP & Senior Director


Ideal 1031 Exchange Property

• 11 years remaining on corporate lease

• Newly constructed in 2013

• Absolute NNN lease - Zero management responsibilities

• 10% increases in option periods

• With over $1,350,000 in cash flow remaining over the 11 years on the original lease, investors receive over 70% of their initial investment; tenant additionally has 4, 5-year options to extend the lease thereafter

Strong Location - Florida

• Panama City, FL was named “The Best Place to Invest in Real Estate in the U.S.” by CNN Business Magazine

• The Property is located along the heavily trafficked US-231 seeing 33,000 vehicles per day. The US-231 is the main arterial highway out of Panama City towards Interstate-10 and Tallahassee – the capital of Florida

• 5 mile population of ± 100,000 with ± 5% projected growth over the next 5 years.

• Major Retail Corridor – Located less than a mile from Panama City Mall and the remaining main retail corridor of Panama City including McDonalds, Starbucks, Panera Bread, Chili’s, Best Buy, Lowe’s, Home Depot, Bed Bath and Beyond, Walmart Supercenter and many more.

Strong Tenant

• Dollar General is the only investment grade credit dollar store

• S&P credit rating: BBB (raised from BBB- in late 2015)

• Dollar General is among the largest discount retailers in the country

I N V E S T M E N T H I G H L I G H T S

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

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

Dol lar General2337 Hwy 231 Panama City, FL

List Price ............................................................................................$1,897,000

CAP Rate - Current ...................................................................................6.50%

Gross Leasable Area ....................................................................... ± 9,100 SF

Lot Size ............................................................................................. ± 1.5 Acres

Year Built ........................................................................................................2013

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Increases

Year 1-15 $10,277 $123,321 $13.55

Option 1 $11,304 $135,653 $14.91 10%

Option 2 $12,435 $149,218 $16.40 10%

Option 3 $13,678 $164,140 $18.04 10%

Option 4 $15,046 $180,554 $19.84 10%

Tenant Summary

Tenant Trade Name Dollar General

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date 6/1/2013

Lease Expiration Date 5/31/2028

Term Remaining on Lease ± 11 Years

Increases 10% in each Option

Options Four, 5-Years

P A N A M A C I T Y , F L - 5

F I N A N C I A L O V E R V I E W

T E N A N T O V E R V I E W

Dollar General is the fast-growing retailer that boasts roughly 13,000 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company doesn’t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.

STRATEGYWith its small-box stores typically measuring some 9,100 sq. ft, Dollar General targets cost-conscious consumers that prefer easier and quicker access to items than at super-sized competitors such as Wal-Mart and Costco (which are also often much farther away). Indeed, Dollar General’s strategy of catering to the value conscious has paid off big, both during and after the recession. The discount retailer boasted its 26th consecutive year of same-store sales growth in 2016 (ended January), attributable to its value and convenience proposition.

OPERATIONSDollar General’s massive stores network is supported by 13 distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such as Bobbie Brooks and Fisher Price for clothing and Rexall for health and beauty aids.

GEOGRAPHIC REACHDollar General operates nearly 13,000 stores in 43 US states in 2015. About 10% of its stores are in Texas and another 20% are spread across Florida, Georgia, Ohio, and North Carolina.

Company Name Dollar General

Parent Company Trade Name Dollar General Corporation (NYSE: DG)

Ownership Public

Credit Rating (S&P) BBB

No. of Locations ± 13,000

No. of Employees ± 113,400

Headquartered Goodlettsville, TN

Website www.dollargeneral.com

Year Founded 1939



Oceanside Blvd ± 31,792

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6

T H E O F F E R I N G

Property Name Tenant Name

Property Address2337 Hwy 231 Panama

City, FL 32405

Site DescriptionNumber of Stories One

Year Built 2013

Gross Leasable Area (GLA) ± 9,100 SF

Lot Size ± 1.5 Acres

Type of Ownership Fee Simple

Parking ± 38 free Surface Spaces

Parking Ratio 4.17: 1,000 SF

Landscaping Professional

PA R C E L M A P

ConstructionFoundation Concrete Slab

Framing Steel

Exterior Block/Metal

Roof Slightly Pitched

S U R R O U N D I N G T E N A N T S



PA N A M A C I T Y D E M O G R A P H I C S

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 4,189 48,880 98,336

2017 Estimate 3,966 46,385 93,691

2010 Census 3,694 43,390 88,266

2000 Census 2,843 38,203 81,145

Growth 2017 - 2022 5.62% 5.38% 4.96%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,609 19,546 39,947

2017 Estimate 1,536 18,534 38,021

Growth 2017 - 2022 4.75% 5.46% 5.07%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$55,031 $58,652 $61,197

A R E A O V E R V I E W

1 0 - O F F E R I N G M E M O R A N D U M

As the largest c i ty in northern Flor ida between Tal lahassee and Pensacola, Panama City is located along the Flor ida “panhandle” on St . Andrews Bay. St . Andrews Bay surrounds much of Panama City, providing a protected harbor for faci l i t ies at the growing Port of Panama City complex.

PA N A M A C I T Y, F L O R I D A

B e st P l a c e to I nve st i n Re a l E s tate i n t h e U. S .- C N N ’ S B u s i n e s s 2 . 0 M a ga z i n e

B e st P l a c e to I nve st i n Re a l E s tate i n t h e U. S .

P A N A M A C I T Y , F L - 1 1

Alive with activity, Panama City houses quaint specialty shops and superb local dining establishments all within close proximity to some of the nation’s most enticing beaches. The city has been listed as one of the best small art towns in America, consequently housing the Marina Civic Center and the Visual Arts Center, which provide a wide variety of cultural and entertainment opportunities for Panama City residents. With numerous city parks hosting festivals, musical and theatrical performances, and markets, Panama City also hosts a multitude of other year-round events, including The Blessing of the Fleet, The Annual Spring Boat Show, A Classic Car Show, Spring Festival of the Arts, The Annual Independence Day Celebration, Oktoberfest, First Friday, and Concerts in the Park.

Furthermore, Panama City boasts rich opportunities for fishing, boating and all varieties of water sports thanks to its Gulf Coast location. The Northwest Florida city also offers several golf courses and other opportunities for sports activities. The almost-perfect weather, friendly atmosphere, numerous activities and exciting possibilities combine to make Panama City a great place to visit and an even better place to call home.

Q U A L I T Y O F L I F E

Protected by St . Andrews Bay, Port Panama City is a growing port that handles a wide var iety of cargo ranging f rom standard shipping containers to del icate cargo. Port Panama City is perfect ly s i tuated along Northwest F lor ida’s Emerald Coast , providing a Gulf Coast gateway to shippers in Georgia, Alabama, Flor ida, Tennessee and the Carol inas.

I t is the northernmost port in the Gulf of Mexico. Port Panama City ’s Foreign-Trade Zone (FTZ) #65 is an integral part of i ts infrastructure of services. Represent ing a major incent ive for the establ ishment of new industry in the area, FTZ has made Port Panama City the center for nat ional and internat ional companies with manufactur ing, large assembly and product modif icat ion. Combined with the incent ives avai lable through FTZ #65, rates at the port are among the most economical on the Gulf of Mexico and East Coast region; Port Panama City of fers an at t ract ive al ternat ive to industr ies seeking to expand or relocate to the Gulf Coast region.

More than ever, Panama City is booming with events and act iv i t ies. As the county seat of Bay County, Panama City encourages new or relocat ing industr ies and businesses to consider the area for there are many opportuni t ies for growth and development. Panama City ’s main retai l center is Pier Park on the beach and Panama City Mal l across the Hathaway Br idge in town.

Home to Tyndal l Air Force Base and the U.S. Navy’s Naval Support Act iv i ty Panama City, two mi l i tary bases, Panama City has a large federal government presence with i t being the area’s s ingle largest employer. Other major industr ia l employers include Eastern Shipbui ld ing Group, Gul f Power, WestRock, Trane, L-3 Communicat ions, ARINC, and JENSEN-GROUP. Cont inued economic growth and success can be att r ibuted to the Port of Panama City and the Panama City and St . Andrew’s Marinas.

L O C A L E C O N O M Y

P O R T PA N A M A C I T Y

$1.4 Bi l l ionEst. Total Economic Value of Port

Panama City ’s Act iv ity

1 2 - O F F E R I N G M E M O R A N D U M

There are several opportuni t ies for Panama City locals to engage in higher learning with the proximity to Flor ida State Univers i ty – Panama City Campus, Troy Univers i ty and Gulf Coast State Col lege.

Si tuated on a beachside campus in Panama City, Gul f Coast State Col lege of fers more than 150 opt ions to i ts students at some of the lowest tu i t ion rates in the ent i re state. The col lege emphasizes providing students a f i rst -c lass educat ion geared towards their success.

Commonly referred to as FSU Panama City, F lor ida State Univers i ty, Panama City is located 100 mi les f rom the or iginal Tal lahassee campus. FSU Panama City gives students the advantages of a large publ ic univers i ty in a smal l , f r iendly environment. Located on a 26-acre waterfront campus along North Bay, FSU Panama City is a fu l l -service regional F lor ida State Univers i ty campus.

Troy Univers i ty, F lor ida Region at Tyndal l Air Force Base is a global campus of the Troy, Alabama based Troy Univers i ty. This teaching s i te provides undergraduate degree programs to Panama City-Bay County area residents in 19 f ie lds as wel l as those serving in the mi l i tary.

H I G H E R E D U C AT I O N

G U L F C O A S T S TAT E C O L L E G E

F L O R I D A S TAT E U N I V E R S I T Y – PA N A M A C I T Y C A M P U S

TROY UNIVERSITY, FLORIDA REGION AT TYNDALL AIR FORCE BASE

P A N A M A C I T Y , F L - 1 3

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S T A T E M E N T

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dollar General located at 2337 Hwy 231, Panama City, FL 32405. I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property . I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

E XC L U S I V E LY L I S T E D BY

A L E X H A R R O L D

Associate


K Y L E M AT T H E W SBROKER OF RECORD

LIC # BK3367365

Dollar General2 3 3 7 U S - 2 3 1 | PA N A M A C I T Y, F LO R I DA

™

G A R Y C H O UFVP & Senior Director


Dollar General 2337 US-231 Panama City FL - Matthews … · Year 1-15 $10,277 $123,321 $13.55...

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Transcript of Dollar General 2337 US-231 Panama City FL - Matthews … · Year 1-15 $10,277 $123,321 $13.55...