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DOLLAR GENERAL REPRESENTATIVE PHOTOS F IELDALE , V IRGINIA OFFERING MEMORANDUM
Transcript
Page 1: DOLLAR GENERAL - pabloproperties.compabloproperties.com/DGBlast/3dollar/Dollar General - Fieldale... · options . The lease is guaranteed by Dollar General Corporation, which is publicly

DOLLAR GENERAL

REPRESENTATIVE PHOTOS

F i e l d a l e , V i r g i n i a

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

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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.

Confidentiality AgreementMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as fol-lows:

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 in-formation, 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 le-gal 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 loca-tions 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, en-vironmental 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.

Net Leased Disclaimer

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Exclusively listed by:

OFFICES THROUGHOUT THE UNITED STATES AND CANADA

www.marcusmillichap.com

exclusively listed

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EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . .3Dollar General Overview . . . . . . . . . . . . . . . . . . . . . . . . .4Dollar General Highlights . . . . . . . . . . . . . . . . . . . . . . . .5Dollar General in the News . . . . . . . . . . . . . . . . . . . . . 6-7Location Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

PROPERTY DESCRIPTIONLocal Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . 12-13

COMPETITIVE PROPERTY SETRecent Sales Comparables . . . . . . . . . . . . . . . . . . . . 15-16On Market Comparables . . . . . . . . . . . . . . . . . . . . . 17-18

Table of Contents

DOLLAR GENERAL1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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

summary

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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Tenant Trade Name Dollar General

Ownership Public

Tenant Corporate Store

Lease Guarantor Corporate Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 15 Years

Lease Commencement 08/01/2016

Rent Commencement 08/01/2016

Lease Expiration Date 08/01/02031

Term Remaining On Lease 15 Years

Increases 10% (Each Option)

Options Five, Five-Year Options

LEASE YEARS ANNUAL RENT MONTHLY % INCREASE:

Lease Years 1-15 $86,147.76 $7,178.98 N/A

Lease Years 16-20 (Option 1) $94,762.56 $7,896.88 10%

Lease Years 21-25 (Option 2) $104,238.84 $8,686.57 10%

Lease Years 26-30 (Option 3) $114,662.64 $9,555.22 10%

Lease Years 31-35 (Option 4) $126,128.88 $10,510.74 10%

Lease Years 36-40 (Option 5) $138,741.84 $11,561.82 10%

Net Operating Income $86,147.76

Price $1,325,000

Price/SF $145.60

CAP Rate 6.50%

Rentable Square Feet 9,100 Square Feet

Year Built 2016

Lot Size +/- 1.985 Acres

Net Operating Income - Current $86,147.76

Ownership Fee Simple (Land & Improvements)

Proposed Financing New First Trust Deed

Overview Vital Data

Lease Summary Annualized Operating Data

DOLLAR GENERAL

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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Marcus & Millichap is pleased to exclusively market for sale a brand new Dollar General store of approximately 9,100 square feet located in Fieldale, Virginia . Dollar General has signed a 15 year Triple Net Lease with 10 percent rent increases between 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 . Dollar General will be delivered in 2017 . The property features a stylish concrete tilt-up design with modern finishes .

The surrounding demographics are well suited to discount retailing, with approximately 26,394 people within a five mile radius and within a close proximity to the Henry County Visitor Center, Iron Bridge at Fieldale Park, and the Henry County Heritage Center and Museum .

■■ Brand New Build-to-Suit | 2017 Delivery■■ 15-Year Absolute Triple-Net Corporate Guaranteed Lease■■ 10 Percent Increases in Each of The Five, Five-Year Options■■ Stable Cash Flows With Zero Landlord Responsibilities

■■ Huge 1 .98 Acre Lot | More Residual Value■■ Well-Suited For The Target Demographics■■ Within Close Proximity to the Henry County Visitor Center,

Fieldale Park, Henry County Heritage Center And Museum, and Carolina Road .

■■ Right Off Virginia State Route 57 With a Traffic Counts of Approximately 20,000 Vehicles Per Day

1 1 4 1 D i l l i o n s F o r k R o a d

EXECUTIVE SUMMARY1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

Investment Highlights

Investment Overview

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EXECUTIVE SUMMARY

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 X0080309

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Dollar General

“In Dollar General, you’ll find a company that embraces substance and simplicity . Our mission is “serving others” and we think our customers are best served when we keep it real and keep it simple . We build and run convenient-sized stores to deliver everyday low prices on products our customers want . We have successfully done so for many years . We deliver a smarter, easier shopping solution accessible to more consumers . Our goal is to provide our customers a better life and our employees opportunity and a great working environment .”

Headquartered in Goodlettsville, TennesseePublicly Traded on the New York Stock Exchange Under Ticker Symbol “DG”Founded in 1955 in Springfield, Kentucky

Company Highlights

Company Mission

Goodlettsville, Tennessee-based Dollar General Corporation is the nation’s largest small-box discount retailer . Dollar General ranks among the largest retailers of top-quality brands made by America’s most trusted manufacturers, such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola .

Dollar General’s business model stands for convenience, quality brands and low prices . Its successful prototype makes shopping a truly hassle-free experience . The company designs small neighborhood stores with carefully edited merchandise assortments to make shopping simpler . Dollar General doesn’t carry every brand and size, just the most popular ones . The average Dollar General customer completes his or her shopping trip in less than 10 minutes .

Company Profile

Source: http://www2 .dollargeneral .com/About-Us/pages/Index .aspx

EXECUTIVE SUMMARY1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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EXECUTIVE SUMMARY Dollar General

Summary of Terms

The Study compares prices at Dollar General, deep discounter Family Dollar Stores (FDO) and giant discounter Walmart Stores (WMT).

Based on his recent round of price checks, Dollar General is the “new price leader,” Grom notes, with the overall basket priced around 100 basis points lower than Family Dollar and around 60 basis points lower than Walmart.

Grom’s “dollar store” study follows Family Dollar Stores’ recent announcement that it would be investing $50 million in prices across 1,000 stock keeping units, or items part of its move back to everyday low pricing.

Deep discounter Dollar General (DG) is the front-runner in the race to lure consumers with low prices, according to a pricing study by Sterne Agee analyst Charles Grom .

Grom writes, “while list-price adjustments did finally flow through the Family Dollar basket this time around, the overall basket at Dollar General fell by a comparable amount, helping DG maintain its price lead .”

Prices declined at Family Dollar and Dollar General but increased at Walmart .

Relative to Grom’s prior study a month ago, the price of his 42-item basket fell sequentially by 0 .4 percent at Family Dollar and 0 .3 percent at Dollar General . The overall basket rose by 0 .5 percent at Walmart, driven completely by higher prices in food . Meanwhile, the food and beverage category increased sequentially at all three retailers by about 2 .2 percent on average .

“The price gap for Dollar General relative to Walmart is centered in the household product category, where it is priced at a 6 .1 percent discount,” he wrote . “Importantly, based on our basket, Dollar General is lower than Family Dollar Stores across all three categories . However, we do point out that Walmart maintains a 6 .6 percent price advantage, on average, in the food and beverage category, compared to the two dollar stores .

Dollar General Takes Low Price Lead Over WalMartBy Marilyn Much, Investors Business Daily - April 25, 2014

Dollar General in the News

1 1 4 1 D i l l i o n s F o r k R o a d

Executive SummaryEXECUTIVE SUMMARY1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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EXECUTIVE SUMMARY Dollar General

• Fourth Quarter Sales Increased 9 .9 Percent; Fourth Quarter Same-Store Sales Increased 4 .9 Percent• Fourth Quarter EPS Increased 16 Percent to $1 .17• Full Year Sales Increased Eight Percent; Full Year Same-Store Sales Increased 2 .8 Percent• Company Provides 2015 Financial Guidance And Accelerated Store Development Plans for 2016• Company Guidance Assumes Share Repurchases of $1 .3 Billion• Initiates Regular Quarterly Cash Dividend of $0 .22 Per Share

Dollar General Reports Record Fourth Quarter

Highlights

Goodlettsville, Tennessee . (BUSINESS WIRE), - Dollar General Corporation (NYSE: DG) reported record sales, net income and earnings per share for its fiscal 2014 fourth quarter (13 weeks) and full year (52 weeks) ended January 30, 2015 .

“In 2014, momentum built in our business as we moved through the year, marking our twenty-fifth year of consecutive same-store sales growth . We are pleased with our fourth quarter results which reflect accelerating same-store sales and we intend to capitalize on that momentum as we move into 2015,” said Rick Dreiling, chairman and CEO .

“As we look ahead, we have exciting operating plans that build on our competitive strengths . For 2015, we are forecasting a year of strong growth including a total sales increase of eight to nine percent, same-store sales growth of three to 3 .5 percent and EPS growth of 10 to 13 percent over 2014 adjusted EPS . Given our strong return profile for new stores, we plan to accelerate our new store openings to approximately seven percent square footage growth in 2016,” said Dreiling .

For the 2015 fiscal year, the Company expects total sales to increase eight to nine percent over the 2014 fiscal year . Same-store sales are expected to increase three to 3 .5 percent . Operating profit for 2015 is expected to increase seven to nine percent over the 2014 adjusted operating profit .

The Company expects full year interest expense to be approximately $90 million . The full year 2015 effective tax rate of approximately 37 to 38 percent assumes the reenactment of the WOTC, consistent with 2014 .

Diluted EPS for the fiscal year is expected to be approximately $3 .85 to $3 .95, based on approximately 295 million weighted average diluted shares, assuming share repurchases of approximately $1 .3 billion .

Capital expenditures are expected to be in the range of $500 million to $550 million in 2015 . The Company plans to open approximately 730 new stores in 2015, or six percent square footage growth, and relocate or remodel 875 stores . Given the Company’s strong new store returns that have been consistently proven over the last six years, Dollar General plans to accelerate new store openings to seven percent square footage growth in 2016 .

Source: http://newscenter .dollargeneral .com/news/dollar-general-reports-record-fourth-quarter-and-full-year-2014-financial-results .htm

EXECUTIVE SUMMARY1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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4 MILES - HENRY COUNTY HERITAGE CENTER AND MUSEUM

EXECUTIVE SUMMARY

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 X0080309

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Dollar General

Fieldale, Virginia, in Henrico county, is 51 miles north of Greensboro, North Carolina . The town is conveniently located inside the Martinsville Micropolitan Statistical Area . The town of Fieldale is the ideal destination for lovers of history . There are many historical sites and museums within a radius of ten miles . Among these are Carolina Road, Henry County Heritage Center and Museum, Jack Dalton Park, and the Iron Bridge at Fieldale Park . At Fieldale Park, visitors can indulge in a variety of activities, including baseball, grilling, and picnicking .

Exhibits show a timeline of the history of Martinsville and Henry County featuring artifacts, photographs and articles on Native American fish weirs, the Civil War, tobacco and local industries .

The Iron Bridge was constructed in 1931. It has been an important part of the community of Fieldale since its construction becoming a historical structure.

2 MILES - IRON BRIDGE AT FIELDALE PARK

EXECUTIVE SUMMARY1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

AboutFIELDALE

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P R O P E R T Y D E S C R I P T I O N

description

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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DOLLAR GENERAL

LOCAL MAP1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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PROPERTY DESCRIPTION

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Dollar General

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 X0080309

DOLLAR GENERAL

REGIONAL MAP1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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PROPERTY DESCRIPTION

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Dollar General

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 X0080309

15,000 CPD

3,800 CPD

ROAD CARS PER DAYHighway 220 - William F Stone 15,000Dillions Fork Road 3,800

DOLLAR GENERAL

TRAFFIC COUNTS1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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EXECUTIVE SUMMARY

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 X0080309 12

Dollar General

1 1 4 1 D i l l i o n s F o r k R o a d

AERIAL MAP1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

Demographics HighlightsPopulation: 7, 865 Average Household Income: $41,383 Resident Homeowners: 67 .85%

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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EXECUTIVE SUMMARY Dollar General52,677 ADT

Fieldale, VA

AERIAL MAP1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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PROPERTY DESCRIPTION Dollar General

1 MILE

3 MILES5 MILES

1-MILE 3-MILES 5-MILES

$ 0 - $ 14,999 27% 19.5% 22.6%

$ 15,000 - $24,999 15% 20.6% 18.4%$ 25,000 - $34,999 17.9% 17.9% 16.6%$ 35,000 - $49,999 20.4% 17.3% 16.5%$ 50,000 - $74,999 11.4% 15.4% 15.3%$ 75,000 - $99,999 4.1% 4.4% 5.0%$100,000 - $124,999 3.1% 2.5% 2.6%$125,000 - $149,999 0.5% 0.6% 1.0%$150,000 - $200,000 0.1% 0.6% 0.9%$200,000 to $249,999 0.5% 0.7% 0.6%$250,000 + 0.1% 0.6% 0.5%2014 Median HH Income $30,245 $29,681 $29,8572014 Per Capita Income $16,136 $18,257 $18,074

2014 Average Household Income $35,589 $41,383 $41,256

1-MILE 3-MILES 5-MILES2014 Population 948 7,865 26,394

2019 Population 943 7,808 26,394

1-MILE 3-MILES 5-MILES2010 Households 433 3,579 11,9902014 Households 418 3,463 11,614

2019 Households 416 3,462 11,468

2014 Average HH Size 2.23 2.24 2.282014 Daytime Population 128 2,565 13,1922000 Owner Occupied Housing Units 73.80% 60.99% 60.40%2000 Renter Occupied Housing Units 16.05% 27.94% 29.24%2000 Vacant 10.15% 11.07% 10.37%2014 Owner Occupied Housing Units 78.54% 67.85% 65.21%2014 Renter Occupied Housing Units 21.46% 32.15% 34.79%2014 Vacant 16.36% 15.16% 16.26%2019 Owner Occupied Housing Units 78.53% 67.95% 65.16%2019 Renter Occupied Housing Units 21.47% 32.05% 34.84%2019 Vacant 17.32% 16.19% 17.25%

14This 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 X0080309

Population

Household

Income

DOLLAR GENERAL

DEMOGRAPHICS1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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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 . Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc . © 2011 Marcus & Millichap ACT ID X0080309

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Demographic Summary -- 5 Miles

Demographic data © 2012 by Experian/Applied Geographic Solutions.

PopulationIn 2014, the population in your selected geography is 26,882 . The population has changed by 1 .61% since 2000 . It is estimated that the population in your area will be 26,394 five years from now, which represents a change of -1 .81% from the current year . The current population is 47 .35% male and 52 .64% female . The median age of the population in your area is 44 .0, compare this to the Entire US average which is 37 .3 . The population density in your area is 342 .03 people per square mile .

Households There are currently 11,614 households in the selected geography . The number of households has changed by 6 .26% since 2000 . It is estimated that the number of households in the area will be 11,467 five years from now, which represents a change of -1 .26% from the current year . The average household size in the area is 2 .27 persons .

Income In 2014, the median household income for your selected geography is $29,857, compare this to the Entire US average which is currently $51,972 . The median household income for your area has changed by 5 .67% since 2000 . It is estimated that the median household income in your area will be $33,490 five years from now, which represents a change of 12 .16% from the current year .

The current year per capita income in your area is $18,073, compare this to the Entire US average, which is $28,599 . The current year average household income in your area is $218,599, compare this to the Entire US average which is $74,533 .

Race & EthnicityThe current year racial makeup of the selected area is as follows: 63 .49% White, 29 .97% Black, 0 .01% Native American and 0 .55% 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 orgin are counted independently of race . People of Hispanic origin make uo 75 .80% of the current year population in the selected area . compare this to the Entire US average of 17 .13%

Housing In 2000, there were 7,364 owner occupied housing units in the area and there were 3,565 renter occupied housing units in the area . The median rent at the time was $310 .

Employment In 2014, there are 13,192 employees in the selected area, this is also known as the daytime population . The 2000 Census revealed that 48 .65% of employees are employed in white-collar occupations in the georgaphy, and 69 .95% are employed in blue-collar occupations . In 2014, unemployement in this area was 10 .16% . In 2000, the average time traveled to work was 23 .1 minutes .

DEMOGRAPHICS1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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C O M P E T I T I V E P R O P E R T Y S E T

competitive

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Dollar General

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 X0080309

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COMPETITIVE PROPERTY SET

Dollar General (Subject Property) 1141 Dillons Fork Road Fieldale, VA 24089

Sales Price: $1,325,000Price/SF $145.60Cap Rate: 6.50%Rentable Square Feet: 9,100 Square FeetYear Built: 2017Lot Size: 1.985 Acres

Dollar General 8638 Trouble Creek Road, New Port Richey, FL 34653

Dollar General 3260 Pleasant Hill Road, Kissimmee, FL 34746

Close of Escrow: 12/19/2013Sales Price: $1,727,000 Price/SF $190.00 Cap Rate: 6.35%Rentable Square Feet: 9,100 Square FeetYear Built: 2013

Close of Escrow: 6/30/2014Sales Price: $2,460,000 Price/SF $272.55 Cap Rate: 6.01%Rentable Square Feet: 9,026 Square FeetYear Built: 2014

A brand new 9,100 square foot freestanding building under a 15-year triple-net lease with 10 percent increases at the beginning of each of the four, five-year option periods .

A brand new building with 15-year triple net lease, 10 percent rent increases at the beginning of each of the four, five year option periods .

Recent SalesCOMPETITIVE PROPERTY SET1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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Dollar General

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 X0080309

COMPETITIVE PROPERTY SET

Dollar General 6576 Laurel Island Parkway, Kingsland, GA 31548

Close of Escrow: 4/30/2014Sales Price: $1,400,000 Price/SF $155.52 Cap Rate: 6.37%Rentable Square Feet: 9,002 Square FeetYear Built: 2014

Dollar General 6514 Massachusetts Avenue, New Port Richey, FL 34653

Close of Escrow: 12/19/2013Sales Price: $2,141,000 Price/SF $235.00 Cap Rate: 6.25%Rentable Square Feet: 9,100 Square FeetYear Built: 2014

A brand new 9,100-square foot freestanding building under a 15-year triple-net lease with 10 percent increases at the beginning of each of the four, five year options periods .

A brand new building with 15-year triple-net lease, 10 percent rent increases at the beginning of each of the four, five-year option periods .

Dollar GeneralCOMPETITIVE PROPERTY SET

Recent Sales

COMPETITIVE PROPERTY SET1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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Dollar General

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 X0080309

19

COMPETITIVE PROPERTY SET

Subject Property (Subject Property) 1141 Dillons Fork Road, Fieldale, VA

List Price: $1,325,000Price/SF $145.60 Cap Rate: 6.50%Rentable Square Feet: 9,100 Square FeetYear Built: 2017Lot Size: 1.985 Acres

Dollar General 1377 South Dixie Highway, Deerfield Beach, FL 33441

Dollar General 115 North Elm Street, Adel, GA 31620

Status: On MarketList Price: $2,404,300 Price/SF $267.09 Cap Rate: 6.00%Rentable Square Feet: 9,002 Square FeetYear Built: 2014

Status: On MarketList Price: $2,006,000 Price/SF $222.84 Cap Rate: 6.25%Rentable Square Feet: 9,002 Square FeetYear Built: 2014

A brand new building with a 15-year triple net-lease, 10 percent rent increases at the beginning of each of the four, five-year option periods .

Dollar General will occupy a brand new 9,002-square foot freestanding building on a 1 .42 acre lot and has agreed to a 15-year absolute triple-net lease with 10 percent increases beginning at each of the four, five year option periods .

On Market ComparablesCOMPETITIVE PROPERTY SET1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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Dollar General

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 X0080309

COMPETITIVE PROPERTY SET

Dollar General 341 7 Airport Road, Dalton, GA 30721

Status: On MarketList Price: $1,202,000 Price/SF $132.09 Cap Rate: 6.25%Rentable Square Feet: 9,100 Square FeetYear Built: 2014

Dollar General 10208 China Spring Road, Waco, TX 76708

Status: On MarketList Price: $2,272,354 Price/SF $252.48 Cap Rate: 6.25%Rentable Square Feet: 9,000 Square FeetYear Built: 2013

Dollar General is currently under a triple-net lease with 14 years remaining on the initial term . There are three, five-year options to renew .

Dollar General will occupy a brand new 9,100-square foot freestanding store operating under a 15-year triple-net lease with 10 percent increases at the beginning of each of the five, five-year option periods .

On Market Comparables

COMPETITIVE PROPERTY SET1 1 4 1 D i l l o n s F o r k R o a d , F i e l d a l e , VA

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