Dollar General - Berryville, AR

BERRYVILLE, AR

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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. 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. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

Offering Summary

Price $1,138,000

Cap Rate 7.25%

Net Operating Income (NOI) $82,495

Year Built 2009

Gross Leasable Area (GLA) 9,014 SF

Lot Size 0.86 Acres

LeaSe Summary

Lease Term 15 Years

Lease Commencement 10/1/2009

Lease Expiration 9/30/2024

Remaining Term 8.5 Years

Lease Type NN

Roof & Structure Landlord

Increases Every 5 Years

Options 5 x 5 Year

Options to Purchase None

AnnuAlized OperAting dAtA

Years Commencement Annual Rent Increase

1-10 10/1/2009 $82,495 -

11-15 10/1/2019 $84,970 3.00%

Option 1: 16-20 10/1/2024 $92,261 8.58%

Option 2: 21-25 10/1/2029 $101,487 10.00%

Option 3: 26-30 10/1/2034 $111,636 10.00%

Option 4: 31-35 10/1/2039 $122,800 10.00%

Option 5: 36-40 10/1/2044 $135,080 10.00%

net OperAting incOme $82,495

Dollar General102 Eureka AvenueBerryville, AR 72616


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TENANT & LEASE INFORMATION

TenanT Summary

Tenant Name Dollar General

Ownership Public

Agency Standard & Poor’s

Rating BBB

Ticker Symbol DG

Exchange NYSE

Market Cap $20.0 Billion

Sales Volume $19.7 Billion

Number of Locations 12,198+

Years In Business 76 Years

Headquarters Goodlettsville, TN

Website www.dollargeneral.com

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. Dollar General’s successful prototype makes shopping a truly hassle-free experience, by designing small neighborhood stores that offer the most popular brands. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general-merchandise retailer. Dollar General offers both name brand and generic merchandise in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Most of its products are priced at more than $1.00. It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred’s in the southeast, and numerous independently owned stores.

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INVESTMENT HIGHLIGHTS



• 2009 Construction with Concrete Parking Lot

• Minimal Landlord Responsibility - NN Lease

• Tyson Foods has a 32-Acre Poulty Plant Just Down

the Road from Subject Property - Major Employer

for Berryville

• Minimal Competition in the Immediate Area

• Strong Corporate Guaranty - Over $19 Billion in

Sales in 2014

• Dollar General Has 12,300+ stores in 43 States and

Over 109,000 Employees

• Dollar General (DG) (XLY) had a strong 7.9%

growth in its sales in 2Q15. When compared to

the retailer’s peers in the industry, this is on the

higher side, as the industry of discount retailers

itself is growing at a pace of 5% to 6% annually

in recent times. Dollar General’s (DG) top line has

grown ~10% annually on an average over the last

five years.

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AERIAL MAP

Tyson Foods Plant


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LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

BENTONVILLE, AR

Bentonville is the tenth-largest city in Arkansas and the county seat of Benton County. The city is centrally located in the county with Rogers adjacent to the east. The city is the headquarters of Walmart, which is the world’s largest retailer. It is one of the four main cities in the four-county Northwest Arkansas Metropolitan Statistical Area.

The Northwest Arkansas economy was historically based upon agriculture and poultry. In recent decades, NWA has seen rapid growth and diversification of its economy based upon the three Fortune 500 companies based there, Walmart, Tyson Foods, and J.B. Hunt, while also seeing a growing University of Arkansas and cultural amenities sector. Although impacted by the Great Recession, NWA’s economy fared better than most peer metropolitan areas, the state of Arkansas and the United States overall. Between 2007 and 2013, the region saw unemployment rates significantly below those of peer regions and the national average; while also seeing a 1% net growth of jobs. The NWA gross domestic product

grew 7.0% over the aforementioned time period, and bankruptcies, building permits and per capita incomes are returning to pre-Recession rates.

Bentonville has been home to Walmart since Sam Walton purchased a store on the town square in 1950 and renamed it Walton’s 5 & 10. The retailer continued a rapid growth, but Helen Walton wished to remain in Bentonville to raise the family, and thus by the time Walmart became the #1 Fortune 500 in 2002, it was still based in Bentonville. The impact from the Walmart Home Office is multiplied by the over 1100 prospective Walmart vendors who have established sales offices in the region. The large number of satellite offices for companies of almost every industry means a large number of transplants from around the United States can be found in Bentonville. This phenomena impacts the culture of Bentonville in addition to the city’s economy..

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2010 by Experian/Applied Geographic Solutions.

PoPulationIn 2015, the population in your selected geography is 8,374. The population has changed by 14.10% since 2000. It is estimated that the population in your area will be 8,588 five years from now, which represents a change of 2.49% from the current year. The current population is 48.7% male and 51.3% female. The median age of the population in your area is 35.1, compare this to the Entire US average which is 37.9.

HouseHolds There are currently 3,139 households in your selected geography. The number of households has changed by 13.53% since 2000. It is estimated that the number of households in your area will be 3,235 five years from now, which represents a change of 2.96% from the current year. The average household size in your area is 2.62 persons.

income In 2015, the median household income for your selected geography is $34,503, compare this to the Entire US average which is currently $53,217. It is estimated that the median household income in your area will be $39,610 five years from now, which represents a change of 12.89% from the current year. The current year per capita income in your area is $17,411, compare this to the Entire US average, which is $28,597. The current year average household income in your area is $45,624, compare this to the Entire US average which is $74,699.

Race and etHnicity The current year racial makeup of your selected area is as follows: 81.0% White, 0.9% Black, 1.0% Native American and 1.5% 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 23.6% of the current year population in your selected area. Compare this to the Entire US average of 17.6%.

Housing In 2015, there were 1,975 owner occupied housing units in your area and there were 1,163 renter occupied housing units in your area.

emPloyment In 2014, there are 3,925 employees in your selected area, this is also known as the daytime population. The 2015 Census revealed that 37.3% of employees are employed in white collar occupations in this geography, and 40.3% are employed in blue-collar occupations. In 2015, unemployment in this area is 4.7%.

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DEMOGRAPHIC STATISTICS

Traffic cOunTS

12,350

incOme 1 mile 3 mileS 5 mileS

$ 0 - $14,999 16.6% 16.4% 16.1%

$ 15,000 - $24,999 24.7% 24.0% 22.7%

$ 25,000 - $34,999 11.1% 11.4% 11.6%

$ 35,000 - $49,999 16.6% 16.0% 16.0%

$ 50,000 - $74,999 16.3% 16.7% 16.6%

$ 75,000 - $99,999 9.4% 10.3% 10.9%

$100,000 - $149,999 2.8% 3.1% 3.6%

$150,000 - $199,999 1.4% 1.3% 1.6%

$200,000+ 1.0% 0.9% 0.9%

2015 Median Household Income $32,365 $33,078 $34,503

2015 Per Capita Income $16,626 $16,795 $17,411

2015 Average Household Income $43,698 $44,275 $45,624

POPulaTiOn 1 mile 3 mileS 5 mileS

2000 Population 3,129 5,537 7,193

2010 Population 3,678 6,398 8,135

2015 Population 3,794 6,587 8,374

2020 Population 3,894 6,755 8,588

HOuSeHOldS 1 mile 3 mileS 5 mileS

2000 Households 1,222 2,088 2,714

2010 Households 1,403 2,360 3,036

2015 Households 1,450 2,437 3,139

2020 Households 1,495 2,510 3,235

2015 Average Household Size 2,57 2,65 2,62

Daytime Population 1,751 3,006 3,925

2010 Owner Occupied Housing Units 56.2% 57.6% 59.2%

2010 Renter Occupied Housing Units 34.2% 33.4% 30.9%

2010 Vacant 9.5% 9.1% 9.9%



2015 Vacant 8.8% 8.4% 9.3%



2020 Vacant 8.4% 8.1% 9.1%

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 Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. 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 Vitorino Group.

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. Vitorino Group 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, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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 VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group 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, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group 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. The Vitorino Group 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 The Vitorino Group 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.

Net Lease Disclaimer

exclusively listed

469.844.8880 | VITORINOGROUP.COM

Date post:	30-Jul-2016
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Dollar General - Berryville, AR

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