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DOLLAR GENERAL 1 1070 W. Highway 67 Alvarado, TX 76009 INVESTMENT OFFERING

Transcript of DOLLAR GENERALaios2-staging.agentimage.com/n/nnnequityadvisors.com/htdocs/wp … · DOLLAR GENERAL...

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1070 W. Highway 67Alvarado, TX 76009

INVESTMENT OFFERING

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DISCLAIMER

PrincipalsherebyadviseallprospectivepurchasersofSingleTenantNetLeasedpropertyasfollows:

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

As the Buyer of a single tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all materialinformation before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of thisinvestment opportunity. Principals expressly deny 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 futureperformance of this property. The value of a single tenant 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 single tenant propertyto 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 carefullyreview all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is animportant consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilitiesor newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents forthe 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 withother 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 intrinsicvalue of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant shoulddefault or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering thelocation of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Principals and hold them harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchase of this single tenant property.

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TABLE OF CONTENTS

Table of Contents..................................................................................................................................... 3

Pricing & Financial Analysis ..................................................................................................................... 4

Tenant Summary ..................................................................................................................................... 5

Investment & Location Overview……………………………………………………………………………………………………6

Dollar General - Corporate Description .................................................................................................... 7

Aerial, Pictures of Property, Inside Store Pictures...............................................................................8-18

Demographics........................................................................................................Will Provide Separately

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PRICING & FINANCIAL ANALYSIS

LOCATION ANNUALIZED OPERATING DATA1070 W. Highway 67Alvarado, TX 76009

Price $597,650 Rent Increase Annual RentYears 2012-2018 $48,600.00

Rentable Square Feet 8,000 SFPrice/SF $74.71 CAM Payments by DG $4,000.00CAP Rate 8.50%Year Built 2002 OptionsLot Size 0.836 Acres

Years 2018-2022 $53,460.00Type of Ownership Fee Simple Years 2022-2026 $58,806.00

Expenses:Lawn and Landscaping Maintenance – Actual #’s $1,200.00Insurance – Covered by National Insurance Program $0.00Property Reserve $200.00HVAC Reserve $200.00Parking Lot Reserve $200.00Real Estate Taxes - Fully Reimbursed by DG $0.00

Net Operating Income $50,800.00

Total Return 8.50% $50,800.00

Existing Owner will pay difference betweencurrent rent of $47,400 and increased rent of$48,860 on February 1, 2013 to Buyer($1,460 credit at closing)

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TENANT SUMMARY

Tenant Trade Name Dollar General Corp.Ownership PublicTenant CorporateLease Guarantor Corporate, Public, NYSE: DG

Lease Type Net Lease

Roof and Structure Landlord ResponsibleLease Term 6 Years*Lease Commencement Date 7/1/2012Rent Commencement Date 7/1/2012Lease Expiration Date 2/28/2018Term Remaining on Lease 5.75 YearsIncreases 10.0% Increases every Five Years during the Options Periods

Options Two, Five-Year Options

*Please Request Lease Modification Agreements for further clarification

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INVESTMENT & LOCATION OVERVIEWHighlights

• Corporate Guaranteed ($14.80 Billion Sale/ $3.3 Billion Net Worth approximately)• Dollar General: #195 in Fortune 500 – S&P BBB- Rating – Investment Grade• Proven Location• Excellent Sale – Well Above Average• Two, Five-Year Option Remaining• Alvarado is located just 10 miles south of the greater Dallas Fort Worth, TX MSA• Very Low Price per Square Foot• Located in dense retail area with retail including Whataburger, Brookshire’s (market), Exxon, KFC, Waffle

House, AutoZone, Dairy Queen, Sonic, and McDonald’s• Dollar General has enrolled this store in its national insurance program

Store Sales

• 2011-2012 - $1,584,038*

The Dollar General #9214 - is a proven location with well above average sales. The property is located at 1070 W.Highway 67 in Alvarado, TX. The property is located on a major thoroughfare with What-a-Burger, Brokshire’s & Exxonadjacent to the property. The subject property is an 8,000 Square Foot property built in 2002. The rent is a net leaseoffered at an 8.50% Cap Rate. Minimal maintenance is required with 10% increases during the two, five-year options.Alvarado, TX – Alvarado is 10 miles south of Dallas Fort Worth CBD.

*FURTHER SALES FIGURES AVAILABLE ON REQUEST

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CORPORATE DESCRIPTION

Dollar General Corporation is the nation’s largest small-box discount retailer. We make shopping foreveryday needs simpler and hassle-free by offering a carefully edited assortment of the most popularbrands at low everyday prices in small, convenient locations. Dollar General ranks among the largestretailers of top-quality brands made by America’s most-trusted manufacturers, such as Procter & Gamble,Kimberly Clark, Unilever, Kellogg’s, General Mills and Nabisco.

$14.80 billion in sales in fiscal 2011

10,100+ stores in 39 states

About 12,000 core products from America’s most-trusted manufacturers

9+ distribution centers

85,900+ employees

BBB- Rating by Standard & Poor’s

Headquarter are located at 100 Mission Ridge Goodlettsville, TN 37072

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PICTURES OF PROPERTY

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PICTURES OF PROPERTY

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PICTURES OF PROPERTY

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PICTURES OF PROPERTY

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ADJACENT RETAIL

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SURROUNDING RETAIL

Excellent Traffic Counts

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SURROUNDING RETAIL

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AERIAL

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AERIAL OF SURROUNDING RETAIL

McDonald’s Chevron, Exxon, WhataBurger, Brookshire’s

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SURROUNDING RETAIL

Newly developed Wells Fargo, Sonic and Dairy Queen

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PICTURES OF PROPERTY

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For further information, please contact:

Sumner Hollingsworth, CCIM

NNN Equity Advisors

(626) 353-5597 Cell

(213) 403-6071 Fax

[email protected]