nwc highway 210 and highway 421 currie, north carolina … › d2 › hrjjl81ic532cnxww4...s&p...

Dollar General Coming 2017NWC Highway 210 and Highway 421Currie, North Carolina 28435

BRAND NEW DOLLAR GENERAL WITH 15-YEAR CORPORATE LEASE

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.

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.

Confidentiality Agreement

Net Leased Disclaimer

Kevin BoeveSenior Vice President Investments

ONTARIO OFFICETel: (909) 456-3450

[email protected] License: 01247016

Pablo RodriguezSenior Associate



NV License: NV S. 0175422

Kyle BlattAssociate



P R E S E N T E D BY

TA B L E O F C O N T E N T S

EXECUTIVE SUMMARYExecutive Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Tenant Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Dollar General in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

FINANCIAL OVERVIEWFinancial Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PROPERTY DESCRIPTIONParcel Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Aerial Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

MARKET OVERVIEWCurrie, North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

COMPARABLESSold and On Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-16

COMPARABLESSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

executive summary

New 15-Year Triple Net Investment Opportunity With Zero Landlord Responsibilities

Five, Five-Year Options With 10 Percent Rent Increases

New 2017 Construction | Slated for June 2017 Delivery

Frontage at Intersection of Highway 210 and Highway 421 With Traffic Counts of More Than 10,800 Cars Per Day | Highest Traffic Location in Currie, NC

Virtually Zero Nearby Competition | Walmart, Family Dollar, and Dollar Tree More Than 10 Miles Away

Tenant is Nation’s Largest Small-Box Discount Retailer With Over 13,000 Locations in 40 States

Standard & Poor’s Investment Grade (S&P. “BBB”) Tenant | The Only Small-Box Retailer With Investment Grade Credit

Dollar General Has $17.5 Billion in Sales Volume and is Ranked #139 in Fortune 500

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 Y0080274 2

Intersection of Highway 210 and Highway 421

10,800 CPD

Marcus & Millichap is pleased to exclusively market for sale a Dollar Gen-eral store of approximately 9,100 square feet located in Currie, North Car-olina. The Dollar General is located on the intersection of Highway 210 and Highway 421, the highest traffic location in the entire town of Currie, North Carolina.

The Dollar General is currently under a brand new, 15-year Triple Net Lease with 10 percent rent increases in 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.

Currie is part of Pender County, North Carolina; a county poised to develop and recruit business and industry to the area. With infrastructure and a job-ready workforce, Pender County takes a progressive and business-friendly approach to companies that create jobs and investment in the county. A variety of local and state economic incentive programs are available.

overviewinvestment highlights

tenant overview

43 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 Y0080274

Dollar General (NYSE: DG) is a chain of more than 13,000 discount stores in 43 states, primarily in the South, East, Midwest, and Southwest, offering basic household items, such as cleaning supplies, health, and beauty aids, apparel, and food. The target is 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 other retailers and is easily the largest dollar store chain.

The company ranks 139th on the Fortune 500 list. Fiscal 2016 revenues exceed $20.3 billion with a net income of $1.17 billion, and net worth of $5.3 billion.

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 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, alongside 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.

Dollar 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 “BBB.”

DOLLAR GENERAL IS THE COUNTRY’S LARGEST SMALL-BOX DISCOUNT RETAILER

Prototype Dollar Generals have a standard box structure with a flat roof.

Company Type:PUBLIC (NYSE: DG)

Fiscal 2015 Sales$20.4 BILLION

S&P 500 Credit Rating“BBB”

2015 Fortune 500#139

Number of Stores12,483

The Three Largest Discount Store Chains, Ranked by 2015 Revenue Are:Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+

8This 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 Y0080274

dollar general in the newsRepresentative Photo

Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+


dollar general in the newsDollar General is Starting to Look a Lot Like Wal-MartDoling Out Pay Increases to ManagersIt’s no longer enough for retailers to compete on price alone. To improve the cleanliness and availability of products in its stores, Dollar General will take a 16 cents per share hit to boost compensation for its managers and ramp up their training. In the stores where it’s already rolled out these changes, Dollar General has seen lower turnover among managers and hourly employees, CEO Todd Vasos said on the company’s earnings call. It’s also seen higher sales in those locations. This decision follows Wal-Mart’s $2.7 billion investment into better training and pay for its employees, which it has credited for higher customer service scores.

Investing in Lower PricesThere’s an all-out price war happening across retail. That includes both Dollar General and Wal-Mart. Shortly after Wal-Mart said it would move faster to lower prices, Dollar General rolled out price cuts on hundreds of items across 17 percent of its stores. “These locations have performed better than the chain average ever since,” Vasos said. While the company will continue monitoring prices, it doesn’t anticipate further price cuts at this time, the CEO said.

Bringing in Fresh ProduceDollar General’s food offering has traditionally skewed toward packaged goods. But as its customers ask for healthier options, the retailer sees more opportunity in perishable items. The company is already testing fresh produce in some of its stores, including the 41 locations it purchased from Wal-Mart last year after it shuttered the Express format. Dollar General will now expand that pilot to some of its smaller shops. Wal-Mart has made fresh produce a key piece of its turnaround plan, as it drives more frequent visits from shoppers. While Vasos acknowledged there’s stiff competition in fresh food, he said the company’s massive fleet and small shops give it a competitive advantage.

Going Smaller Dollar stores are already a fraction the size of a Wal-Mart Supercenter. But as Dollar General peppers the U.S. with new shops, it’s making those locations smaller. The company plans to open an additional 160 small shops this year. At 6,000-square feet, these locations cater to central metropolitan and rural areas. That will bring the total number of these shops to 250. Meanwhile, Dollar General is testing an even smaller 3,600-square-foot store that serves millennials living in urban areas. The expansion of these stores comes as Wal-Mart grows its Neighborhood Market footprint.

Making a Bigger Bet on DigitalDollar General lags much of the retail industry when it comes to digital commerce, but the chain is putting a bigger em-phasis on technology. Though Vasos was mum on specifics, the decision comes as more low-income consumers purchase mobile devices, the CEO said. Becoming more digitally savvy should also help Dollar General attract millennial shoppers, whom Vasos says are playing a bigger role in its sales. Wal-Mart has also been rolling out upgrades to its website and mobile technologies, including the ability for shoppers to pay directly from its app.

financial overview

Representative Photo

financial overview


annualized operating dataLease Years Annual Rent Monthly Rent IncreasesYears 1-15 $90,232 $7,519 N/AYears 16-20 (Option 1) $99,256 $8,271 10%Years 21-25 (Option 2) $109,181 $9,098 10%Years 26-30 (Option 3) $120,099 $10,008 10%Years 31-35 (Option 4) $132,109 $11,009 10%Years 36-40 (Option 5) $145,320 $12,110 10%Net Operating Income $90,232

offering summaryProperty Name Dollar GeneralProperty Address NWC Highway 210 and Highway 421

Currie, NC 28435Price $1,398,950Price/SF $153.73Cap Rate 6.45%Rentable Square Feet 9,100 Square FeetYear Built June 2017Lot Size 2.07 Acres

tenant overviewTenant Trade Name Dollar GeneralOwnership PublicTenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type Absolute NetRoof and Structure Tenant ResponsibleLease Term 15 YearsLease Commencement Date 6/30/2017Rent Commencement Date 8/29/2017Lease Expiration Date 6/30/2032Term Remaining on Lease 15 YearsIncreases 10% (Each Option)Options Five, Five-Year Options

vita dataNet Operating Income - Current $90,232Ownership Fee Simple (Land & Improvements)Proposed Financing New First Trust Deed

financing optionsMultiple financing options are available based on buyer requirements. Please contact listing agents to discuss options in detail.

3-Year Fixed 3.70%5-Year Fixed 4.0%7-Year Fixed 4.25%10-Year Fixed 4.6%

property description

4

parcel overviewlocationNWC Highway 210 and Highway 421Currie, NC 28435

siteThe subject property has frontage Highway 210 and Highway 421.

square footageThe building square footage is 9,100-square feet and the lot size is +/- 2.07 acres.

year builtThe property will be delivered by June 2017.


10This 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 Y0080274

Johnson’s CornerGROCERY & GRILL

The Nearest Soft Goods Retailers/ Grocery Stores:Walmart - 12 Miles AwayFamily Dollar - 11 Miles AwayDollar Tree - 12 Miles Away

22,449

RESIDENTS

$53,767AVG HOUSEHOLD

INCOME

5 YEARPOPULATION GROWTH

8%

demographics within a 10-mile radius:

Intersection of Highway 210 and Highway 421

10,800 CPD

market overview

area overview

Fayetteville, Arkansas2 Hour, 30 Minute Drive

Harrison, Arkansas1 Hour Drive

Springfield, Missouri2 Hour Drive

Currie, NC

Currie is an unincorporated community in Pender County, North Carolina. Pender County, one of the fastest growing counties in North Carolina, has a population of more than 52,000 residents. The county is positioned for growth and development with strategic priorities related to economic development, expansion of public infrastructure, growth management, quality of life and education.

Pender County is home to beautiful beaches along the Atlantic Ocean and miles of Intracoastal Waterway. The county is often called the Land of History, the home of a national Revolutionary battlefield of Civil War struggles, and the New Deal settlement called Penderlea. The county is home to family farms, small businesses, corporations, and a growing retail market.

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 Y0080274

12

Distance To From Property

comparables



14

comparables

Close of Escrow 12/2016Sales Price $1,670,000Cap Rate 6.50%Gross Leasable Area 9,100Year Built 2016Years Left on Lease 15 Years Remaining

Asking Price 1,398,950Price/SF $153.73Cap Rate 6.45%Gross Leasable Area 9,100 SFYear Built 2017

Subject Property: Dollar General Dollar General of Leland

3660 Old Maco Road NE, Leland, NC 2046 Salisbury Highway, Statesville, NC

Dollar General of Statesville

NWC Corner of Highway 210 and Highway 421Currie, NC

Close of Escrow 8/2016Sales Price $1,449,500Cap Rate 6.50%Gross Leasable Area 9,100 SFYear Built 2016Years Left on Lease 15 Years Remaining

1 2

Average Cap Rate 6.50%

Comparables


comparablesDollar General of Taylorsville

6059 NC 16 Highway, Taylorsville, NC 9817 NC Highway 210, Four Oaks, NC

Dollar General of Four Oaks

2046 Salisbury Highway, Statesville, NC

Dollar General of Statesville

Close of Escrow 6/2016Sales Price $1,449,500Cap Rate 6.50%Gross Leasable Area 9,100 SFYear Built 2016Years Remaining on Lease 15 Years Remaining

On MarketList Price $1,548,810Cap Rate 6.45%Gross Leasable Area 9,100 SFYear Built 2016Years Remaining on Lease 15 Years Remaining


3 4 5

Dollar General of Albemarle

24132 Highway 73, Albemarle, NC 4276 Wilkesboro Highway, Statesville, NC

Dollar General of Stateville

123 Ridge Street, Ronda, NC

Dollar General of Ronda




6 7 8

comparables


16

demographics

23


demographics


18

3 Miles 5 Miles 10 Miles2016 Population 1,846 4,010 22,449

2016 Households 712 1,580 8,1412016 Average Household Size 2.58 2.60 2.61

2016 Daytime Population 238 540 3,835

2016 Owner Occupied Housing Units 79.94% 79.75% 75.17%2016 Renter Occupied Housing Units 20.06% 20.25% 24.83%

2016 Average Household Income $53,819 $53,980 $53,7672016 Median Household Income $43,293 $43,713 $44,017

Subject Property

Kevin BoeveSenior Vice President Investments



Pablo RodriguezSenior Associate



NV License: NV S. 0175422

Kyle BlattAssociate



P R E S E N T E D BY

nwc highway 210 and highway 421 currie, north carolina … › d2 › hrjjl81ic532cnxww4...s&p...

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