dollar general - Capital...

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[ REPRESENTATIVE PHOTO ] new 15-year absolute net lease zero landlord responsibilities 49964 Twentynine Palms Hwy, Morongo Valley, CA 92256 dollar general BRAND NEW CONSTRUCTION www.CapitalPacific.com

Transcript of dollar general - Capital...

RENTABLE SF . . . . . . . . . . . 9,026 SFPRICE PER SF . . . . . . . . . . . $258.39CURRENT RENT . . . . . . . . $15.50/SFYEAR BUILT . . . . . . . . . . . 2017

PRICE: $2,332,200CAP: 6.00%

Listing Team Contact Info

BRAND NEW DOLLAR GENERAL IN MORONGO VALLEY, CA - 17 MILES FROM PALM SPRINGS.

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Investment highlights

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. Buyer must verify the information and bears all risk for any inaccuracies.

John [email protected] | (415) 274-2715CA BRE# 01440360

The subject property is a new construction free-standing Dollar General store located in Morongo Valley, CA. Population growth is projected in one, three and five mile radii and the average household income is over $64,000. The property is located on Twentynine Palms Highway benefitting from over 29,000 VPD.

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Core characteristics

STRONG TENANTDollar General generated almost $22 billion in gross revenue in fiscal 2016 and an excess of $1.25 billion in net income. As of August 19, 2017, Dollar General operated 14,000 stores in 44 US states. Since going public in 2009, the stock has more than tripled in value as of the end of Q1, 2017. Dollar General is ranked #128 on the Fortune 500 list as of June 2017.

INVESTMENT GRADE CREDITDollar General’s credit is BBB and the company’s credit rating has been raised five times since 2009, most recently in October, 2015. Dollar General has a better credit rating than both of its large competitors.

LEASE HIGHLIGHTS• New 15-year NNN lease with three 5-year options.• Brand new construction.• Corporate guaranteed lease.• Store is projected to open in December 2017.

PROPERTY HIGHLIGHTSHighway 62 (Twentynine Palms Highway) is the main thoroughfare for the more than 60,000 residents of the High Desert spread throughout the cities of Morongo Valley, Joshua Tree, Twentynine Palms and Yucca Valley. Highway 62 also services two of the three entrances to Joshua Tree National Park, which saw record visitation of over 2.5 million people in 2016.

The highway also is the primary route to the Twentynine Palms Marine Corps Air Ground Combat Center, a massive military base that is home to more than 13,500 troops, and trains another 40,000 each year.

The Big Morongo Canyon Preserve is a popular desination offering some of the most beautiful hiking in the Palm Springs area. The 31,000 acre wildlife preserve is located off Highway 62 in Morongo Valley.

Benefitting from traffic counts in excess of 29,000 VPD along Twentynine palms highway

[ REPRESENTATIVE PHOTO ]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. Buyer must verify the information and bears all risk for any inaccuracies.

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aerialBENEFITTING FROM TRAFFIC COUNTS IN EXCESS OF 29,000 VPD

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Twentyn

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ighway

62

Pioneer Drive

Mojave Drive

Park Avenue

Vale Drive

Senilis Avenue Senilis Avenue

WILLE BOYS SALOON &

DANCE HALL

BIG MORONGO FEED & TACK

MORONGO FRUIT MARKET

VILLAGE FOOD MART & DELI

LIBERTY AUTOMOTIVE

REPAIR

LEO’S AUTO REPAIR

SAND TO SNOW MONUMENT BAR

CACTUS MART

DOWN THE ROAD MOTORS

MORONGO VALLEY CAFE

HOLLY’S TRADING POST

GET DIRTY DIRT BIKES

MORONGO TIRES

C&J FEED BARN

PALM SPRINGS

HOUSING(4,558 RESIDENTS WITHIN 5 MILES)

Morongo Valley Elementary

COVINGTON PARK

COMMUNITY CENTER

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. Buyer must verify the information and bears all risk for any inaccuracies.

29,000 VPD

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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. Buyer must verify the information and bears all risk for any inaccuracies.

Income & expense

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PRICE $2,332,200 Price Per Square Foot: $258.39

Capitalization Rate: 6.00%

Total Rentable Area (SF): 9,026

Lot Size (AC): 1.32

STABILIZED INCOME Per Square FootScheduled Rent $15.50 $139,932

Effective Gross Income $15.50 $139,932

LESS Per Square FootTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $139,932

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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. Buyer must verify the information and bears all risk for any inaccuracies.

Rent roll

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TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT

Dollar General 9,026 1 15 $139,932 $11,661 $139,932 $1.29 $15.50

Option 1 16 20 $12,827 $153,924 $1.42 $17.05

Option 2 21 25 $14,110 $169,320 $1.56 $18.76

Option 3 26 30 $15,521 $186,252 $1.72 $20.64

Totals: 9,026 $139,932 $11,661 $139,932 $1.29 $15.50

*Projected Store Opening December 2017

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Site plan

SITE PLAN KEY

PARCEL OUTLINE:

RENTABLE AREA: 9,026 SF

INGRESS/EGRESS:

29,500 DAILY

Twentynine Palms Highway

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LIGHTED PYLON SIGN

This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. DOLLAR GENERAL | 7

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Tenant overview

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. Buyer must verify the information and bears all risk for any inaccuracies.

COMPANY TYPE: PUBLIC (NYSE: DG)

FISCAL 2016 REVENUE $22 BILLION

S&P 500 CREDIT RATING BBB (See next page)

2017 FORTUNE 500 #128

NUMBER OF STORES 14,000

dollar general is the country’s largest

small-box discount retailer

ABOUT DOLLAR GENERALDollar General (NYSE: DG) is a chain of more than14,000 discount stores in 44 states, primarily in the South, East, Midwest, and Southwest. Offering basic household items, such as cleaning supplies, health and beauty aids, apparel, and food, it targets low, middle, and fixed-income shoppers.

The company has grown into the country’s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General’s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than any other retailer and is easily the largest dollar store chain.

The company ranks 128th within the Fortune 500 list. Fiscal 2016 revenues exceeded $22 billion with a net income of $1.25 billion. Since going public in 2009, the stock has more than tripled in value as of the end of Q1, 2017.

Dollar General enjoys a strong credit rating, see next page for details.

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Tenant credit rating

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. Buyer must verify the information and bears all risk for any inaccuracies.

THE THREE LARGEST DOLLAR STORE CHAINS, RANKED BY 2016 REVENUE, ARE:

DOLLAR GENERAL

FAMILY DOLLAR

DOLLAR TREE

2

3

1

ABOUT THE STRONG DOLLAR GENERAL CREDIT RATINGDollar General is now the only dollar store chain with an investment grade rating. Dollar General has been credit-upgraded five times since going public in 2009, most recently in October, 2015. It is now rated “BBB” by Standard & Poor’s, and it has an equivalent rating from Moody’s.

In July, 2015, Family Dollar was acquired by Dollar Tree and ceased to be a public company.

Dollar Tree took on billions of dollars of debt to acquire Family Dollar, and that negatively impacted the credit rating of both of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, no longer issues separate financial statements.

The best known rating agency, Standard & Poor’s, downgraded Family Dollar in July, with Dollar Tree having already been downgraded.

The combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt, hence the lower credit rating.

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2017 HOUSEHOLD INCOMES

POPULATION

ABOUT MORONGO VALLEY, CA

Demographics & map

Morongo Valley is a census-designated place on State Route 62 in San Bernardino County, CA. Morongo Valley lies along the western edge of the Mojave Desert and near the northern edge of the Coachella Valley. Nearby Palm Springs, Coachella Valley, Joshua Tree National Park, and the Big Morongo Canyon Preserve bring millions of tourists to the region annually.

29,50

0 DAILY

DOLLAR GENERAL LOCATION

REGIONAL MAP

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. Buyer must verify the information and bears all risk for any inaccuracies.

PALM SPRINGS

24 MIN17 MILES

1 HR 2 MIN59 MILES

1-Mile 3-Mile 5-Mile

2010 1,249 2,955 4,3402017 1,337 3,131 4,5582021 1,400 3,266 4,753

1-Mile 3-Mile 5-Mile

Average $65,773 $64,448 $64,544Median $51,621 $50,594 $50,053 MORONGO

VALLEYSAN BERNADINOLOS ANGELES

2 HRS 33 MIN111 MILES

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[ REPRESENTATIVE PHOTO ]

JOHN [email protected] | (415) 274-2715 CA BRE# 01440360

CHRIS KOSTANECKI

CHRIS PETERS

DAVE LUCAS

ZANDY SMITH

JACK NAVARRA

ZEB RIPPLE

Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team.

RICK SANNER

JOE CACCAMO

AARON SUSMAN