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FLORIDA DOLLAR GENERAL PORTFOLIO 2 LOCATIONS | ABSOLUTE NNN LEASES | 11.5 YEARS REMAINING Actual Photo
FLORIDA DOLLAR GENERAL PORTFOLIO2 L O C A T I O N S | A B S O L U T E N N N L E A S E S | 1 1 . 5 Y E A R S R E M A I N I N G
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2 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
Moving Capital , Making Markets , Maximizing Value
BRETT CHETEK SENIOR MANAGING DIRECTOR Office: (786) 522-7091Cell: (314) [email protected]
Exclusively Presented by:
www.chetekgroup.com
ALEX PEREZSENIOR DIRECTOR Office: (314) 889-2517Cell: (314) [email protected]
CHRIS GARAVAGLIASENIOR INVESTMENT ADVISOR Office: (314) 889-2562Cell: (314) [email protected]
RYAN BRIGGSSenior AnalystOffice: (786) 522-7126Cell: (314) [email protected]
Actual Photo
3 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
The Chetek Group of Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a two-unit portfolio of single tenant absolute net leased Dollar General properties totaling 18,004-square feet (the “Portfolio”) strategically located throughout Florida. The Portfolio features two 2015 construction Dollar General locations comprised of the retailer’s latest and most efficient 9,002-square foot prototype store. Each location is identical in building area with slightly staggered initial term lease expirations in the second half of 2030. The average term remaining is 11.5 years as of January 2019. The leases are all structured absolute triple-net and include four, five-year renewal options providing an additional 20 years of option term – rent increases 10% in each five-year option period. In addition, the leases are all corporately guaranteed by Dolgencorp, LLC, a publicly traded company (NYSE: “DG”) with an investment grade S&P rating of “BBB”. The subject properties are strategically located throughout Florida in under-served, high-growth submarkets which were identified and carefully vetted as significant areas of opportunity for the retailer to achieve long term success. In addition, the properties maintain similar geographic profiles with “bedroom” proximity to major cities and possess strong real estate fundamentals; ideal positioning with direct street frontage off primary thoroughfares serving the surrounding communities, ample parking, and prominent visibility. The Portfolio of properties offers investors ease of scalability to satisfy a range of 1031 exchange needs of different sizes. The Portfolio is being offered free and clear of debt for a total purchase price of $3,596,400 at a 6.5% cap rate.
PORTFOLIO OVERVIEWPortfolio Purchase Price: $3,596,400
Cap Rate: 6.5%
Net Operating Income: $233,766
Total Portfolio Rentable S.F.: 18,004
Price Per Square Foot: $199.76
Percent Leased: 100%
Total Land Area: 3.2 Acres
Year Built: 2015
Number of Properties: 2
» 2015 Construction | Dollar General’s latest and most efficient prototype
» 15-year initial term | 4, 5-Year options
» 11.5 years current term remaining (as of 1/1/2019)
» 10% rent increases in each option term
» Absolute triple-net leases
» Passive Investment | Zero Landlord Responsibilities
» Investment Grade Tenant | S&P Rating: “BBB”
» Corporate Guaranteed Leases by Dolgencorp, LLC.
» Strategic locations in underserved, high-growth Florida submarkets.
» In December 2018, Dollar General announced plans to open 975 new locations in 2019 and remodel 1,000 locations
» Recession-proof, internet-resistant retailer that continues to execute growth strategies to meet rising demand
» Scalability to satisfy a range of 1031 exchange needs
» Ease of transaction – opportunity to acquire a 2-unit portfolio from a seasoned, organized seller with recent and clean third-party reports
DOLLAR GENERAL FLORIDA PORTFOLIOTwo Absolute NNN Locations with 11.5 Years Remaining
LAKE PLACID
POINCIANA
4 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
COMPANY OVERVIEWDollar General (NYSE: “DG”) is a Tennessee-based
discount retailer with more than 75 years of successful
operating history. The company was founded in 1939 and
incorporated on May 29, 1998. Dollar General is widely
recognized to have founded the “Dollar Store” concept in
1955 and is the nation’s top Dollar Store. As of July 2018,
the company operates more than 15,000 stores located
in 45 of 48 contiguous states in the United States. The
company’s operations are supported by more than 129,000
employees with 15 distribution centers across 14 states.
The company is currently adding 2 additional distribution
centers which are under construction as of 2018.
COMPANY GROWTH & REAL ESTATEDollar General has large-scale plans to open hundreds
more stores call for high speed again in 2019 as it aims to
accomplish a long-held goal of setting up sites within five
miles of more than three-quarters of the U.S. population.
As of December 4, 2018, Dollar General announced plans
to open 975 new stores and remodel 1,000 locations. This
2019 assignment comes on the heels of three straight years
of store openings and remodeling at near-identical paces.
Through the end of the third quarter, Dollar General
opened the doors to 750 new stores and remodeled 925
locations. The company is on pace to meet its 2018 target
of 900 store openings. Dollar General’s most efficient and
standard spec store is a +/- 9,100 SF building positioned
in a highly visible and accessible location on the primary
thoroughfare in the heart of the community.
TENANT OVERVIEW
Tenant Name: Dollar General
Website: www.dollargeneral.com
Stock Symbol: NYSE: "DG"
Headquarters: Goodlettsville, TN
Number of Locations:15,000+ stores in 45 states (as of July 2018)
Revenue (2/2/2018): $23.5 Billion
Gross Profit (2/2/2018): $7.2 Billion
Credit Rating: S&P: "BBB"
Rank: #123, Fortune 500
Year Founded: 1939
Number of Employees: 129,000
PRODUCT OFFERINGSDollar General offers basic household items including
cleaning supplies, health and beauty aids, as well as some
apparel and food. Although it has the word “Dollar” in
its name, Dollar General is not solely a dollar store. The
company offers some goods that range in price points
starting as low as penny up to $60 dollars. Traditionally,
the company targeted low, middle, and fixed-income
shoppers. The company has evolved and expanded its
reach drastically over the past few years and caters to a
wide array of consumers all over the United States.
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TENANT: LOCATION YEARBUILT GLA %
LEASE DATES MINIMUM RENT TOTAL REVENUE
LEASEYEARSSTART END ANNUAL MONTHLY PSF
Dollar General Poinciana, FL 2015 9,002 50% 8/18/15 8/31/30 $115,928 $9,661 $12.88 49.6% 11.4 yrs
Dollar General Lake Placid, FL 2015 9,002 50% 9/12/15 9/30/30 $117,838 $9,820 $13.09 50.4% 11.5 yrs
TOTAL 18,004 100.0% $233,766 $19,481 $12.98 100.0% 11.5 YRS
PORTFOLIO - TENANT RENT ROLL
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TENANT LOCATION GLA %SHARE
LEASE DATES PAYMENT DATES MINIMUM RENT %CHANGE OPTION NOTICE
RECOVERIES
START END START END ANNUAL MONTHLY PSF CAM TAXES INS.
DOLLAR GENERAL Poinciana, FL 9,002 8/18/15 8/31/30 8/18/15 8/31/30 $115,928.04 $9,660.67 $12.88 ---Absolute Net---
1.67 Acres 9/1/30 8/31/35 $127,521.00 $10,626.75 $14.17 10.00% Option #1 180 days
8500 Marigold Avenue 9/1/35 8/31/40 $140,273.04 $11,689.42 $15.58 10.00% Option #2 180 days
Poinciana, FL 34759 9/1/40 8/31/45 $154,299.96 $12,858.33 $17.14 10.00% Option #3 180 days
County: Polk 9/1/45 8/31/50 $169,730.04 $14,144.17 $18.85 10.00% Option #4 180 days
Lease Comments: Tenant shall, at all times during the term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept or maintained in good repair and condition to the Demised Premises and all buildings and improvements. Landlord shall not be required to furnish any maintenance, service or facilities or to make any improvements, repairs or alterations in or to the Demised Premises during the term of this Lease. Taxes: Tenant shall reimburse Landlord for the taxes payable with respect to the Demised Premises.Landlord is responsible for payment of all impact fees, special assessments and any other taxes or assessments levied or assessed. Tenant shall reimburse Landlord for any sales tax on rents paid.
DOLLAR GENERAL Lake Placid, FL 9,002 9/12/15 9/30/30 9/12/15 9/30/30 $117,837.96 $9,819.83 $13.09 ---Absolute Net---
1.61 Acres 10/1/30 9/30/35 $129,621.96 $10,801.83 $14.40 10.00% Option #1 180 days
16454 Sand Oak Court 10/1/35 9/30/40 $142,584.00 $11,882.00 $15.84 10.00% Option #2 180 days
Lake Placid, FL 33852 10/1/40 9/30/45 $156,842.04 $13,070.17 $17.42 10.00% Option #3 180 days
County: Highlands 10/1/45 9/30/50 $172,526.04 $14,377.17 $19.17 10.00% Option #4 180 days
Lease Comments: Tenant shall, at all times during the term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept or maintained in good repair and condition to the Demised Premises and all buildings and improvements. Landlord shall not be required to furnish any maintenance, service or facilities or to make any improvements, repairs or alterations in or to the Demised Premises during the term of this Lease. Taxes: Tenant shall reimburse Landlord for the taxes payable with respect to the Demised Premises.Landlord is responsible for payment of all impact fees, special assessments and any other taxes or assessments levied or assessed. Tenant shall reimburse Landlord for any sales tax on rents paid.
PORTFOLIO - LEASE SUMMARY
7 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
8500 MARIGOLD AVENUE | POINCIANA, FLORIDA 34759
ABSOLUTE NNN LEASE - 11.4 YRS REMAINING
8 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
The Chetek Group of Marcus & Millichap is pleased to
present the opportunity to acquire this brand new 9,002 SF
Dollar General store, located in Poinciana, FL. The property is
encumbered with a Fifteen (15) Year Absolute NNN Lease,
leaving zero landlord responsibilities. The lease contains five
(5) Year options of renewal, each with 10% rent increases.
The lease is corporately guaranteed by Dollar General
Corporation which holds a credit rating of “BBB-”, and is
classified Investment Grade. The new owner will take pride in
the upgraded architecture and construction, with the building
being constructed with EIFS Stucco material and Split Brick
Block.
This Dollar General is strategically positioned on the main
thoroughfare within Poincana, Poinciana Parkway. The
population within a 5 mile radius is greater than 27,500, with the
average household income within a one mile radius exceeding
$52,000. The Subject offering represents and ideal opportunity
for a 1031 exchange buyer or a “passive” investor to a attain
the fee simple ownership of a Brand New Dollar General. This
investment will offer a new owner continued success due to
the financial strength and the proven profitability of the tenant>
the nation’s top dollar store. List price reflects a 6.5% cap rate
based on NOI of $117,837.
» Brand New Absolute NNN Dollar General (Zero Responsibilities).
» 15 Year Term | Four (5 Yr.) Options, 10% Bumps at each option.
» Population Within a Five Mile Radius Exceeds 27,500 people.
» Household Income in a One Mile Radius Exceeds $52,000.
» Corporate Guarantee by Dollar General which carries a S&P “BBB-” Rating.
» Upgraded Architecture (Brick & EIFS Stucco).
PROPERTY HIGHLIGHTS:
POINCIANA, FLORIDAAbsolute NNN with 11.4 Years Remaining
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INVESTMENTHIGHLIGHTS
PROPERTY OVERVIEW
Purchase Price: $1,783,508
Cap Rate: 6.5%
Net Operating Income: $115,928
Total Rentable Square Footage: 9,002
Price Per Square Foot: $198
Initial Term Expiration: 8/31/30
Total Land Area: 1.59 Acres
Year Built: 2015
LEASE OVERVIEW
Tenant: Dollar General
Lease Guarantor: Corporate
Lease Type: Absolute NNN
Lease Commencement: 8/8/15
Original Lease Term: 15 Years
Lease Expiration: 8/31/30
Term Remaining on Lease: 11.67 Years
Renewal Options: Four 5-Year Renewals
Rent Increases: 10% each option
Annual Base Rent: $115,928
First Right Of Refusal: None
1 1 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
The Associaton of Poinciana Villages (APV), is made up of 26,000 homes, 200 businesses and over a dozen parks for leisure and recreation. The Association is a nonprofit civic organization that focuses on the health, safety, and wellness of homeowners in the Poinciana Subdivision. Poinciana, FL is part of the Orlando-Kissimmee-Sanford Metro Area. The villages of Poinciana have been growing since the 1960s and currently has 10 communities. APV had proven to be one of the fastest growing area in Florida in the past 10 years.
KISSIMMEE, FLKissimmee is the county seat of Osceola County and a primary city in the Orlando-Kissimmee-Sanford, Florida Metropolitan Statistical Area. Downtown Kissimmee is made up of restaurants, shops, and historic residences. The University of Central Florida has a business incubator located in the area and it plays a major role in the economy of downtown Kissimmee. While Kissimmee is just minutes from various theme parks including Walt Disney World Resort, Universal Orlando Resort, and SeaWorld Orlando, the area is also a great place for outdoor family adventure. Various parks and activities including Zip-lining, hot air balloon rides, and lakeside watersports can all be found in Kissimmee. Kissimmee is known as “the Gateway to the Everglades,” because of its unique wilderness sights including airboat tours through marshes. On these tours, visitors get a chance to see natural wildlife including exotic birds, turtles, and alligators.
ORLANDO, FL Orlando is a city in the U.S. state of Florida, and the county seat of Orange County. Located in Central Florida, it is the center of the Orlando metropolitan area, making it the 26th largest metropolitan area in the United States, the sixth largest metropolitan area in the Southern United States, and the third largest metropolitan area in the state of Florida. The City of Orlando is nicknamed “The City Beautiful” and its symbol is the fountain at Lake Eola. Orlando is also known as “The Theme Park Capital of the World.” Orlando’s famous attractions form the backbone of its tourism industry: Walt Disney World Resort, located approximately 21 miles (34 km) southwest of Downtown Orlando in Lake Buena Vista, opened by the Walt Disney Company in 1971; the Universal Orlando Resort, opened in 1999 as a major expansion of Universal Studios Florida; SeaWorld; Gatorland; and Wet ‘n Wild. With the exception of Walt Disney World, most major attractions are located along International Drive. The city is also one of the busiest American cities for conferences and conventions.
RADIUS FROM PROPERTY 3 MILE 5 MILE 10 MILE
POPULATION
2023 PROJECTION 16,684 30,438 139,693
2018 ESTIMATE 14,654 27,071 124,518
2010 CENSUS 9,685 20,098 105,892
GROWTH 2018 - 2023 13.85% 12.44% 12.19%
GROWTH 2010 - 2018 51.31% 34.69% 17.59%
HOUSEHOLDS
2023 PROJECTION 5,158 10,311 47,473
2018 ESTIMATE 4,544 9,205 42,550
2010 CENSUS 3,045 6,954 36,366
GROWTH 2018 - 2023 13.51% 12.02% 11.57%
GROWTH 2010 - 2018 49.23% 32.37% 17.00%
OWNER OCCUPIED 3,262 6,828 31,319
RENTER OCCUPIED 1,283 2,376 11,231
2018 HOUSEHOLDS BY HH INCOME
<$25,000 1,257 2,347 11,008
$25,000 - $50,000 1,468 2,888 13,495
$50,000 - $75,000 876 1,754 8,527
$75,000 - $100,000 487 867 4,271
$100,000 - $125,000 168 708 2,780
$125,000 - $150,000 74 183 892
$150,000 - $200,000 207 350 853
$200,000+ 8 106 722
2018 AVG HH INCOME $51,512 $56,456 $55,288
TRADE AREA DEMOGRAPHICSPOINCIANA, FLORIDATRADE AREA DEMOGRAPHICS
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16454 SAND OAK COURT | LAKE PLACED, FLORIDA 33852
ABSOLUTE NNN LEASE - 11.5 YRS REMAINING
1 3 D O L L A R G E N E R A L P O R T F O L I O | F L O R I D A
The Chetek Group of Marcus & Millichap is pleased to
present the opportunity to acquire this brand new 9,002 SF
Dollar General store, located in Lake Placid, FL. The property
is encumbered with a Fifteen (15) Year Absolute NNN Lease,
leaving zero landlord responsibilities. The lease contains five
(5) Year options of renewal, each with 10% rent increases.
The lease is corporately guaranteed by Dollar General
Corporation which holds a credit rating of “BBB-’: and is
classified Investment Grade. The new
owner will take pride in the upgraded architecture and
construction, with the building being constructed with EIFS
Stucco material and Split
Brick Block.
This Dollar General is strategically positioned on the main
thoroughfare within Lake Placid, US Highway 27. The
population within a 5 mile radius is greater than 16,500, with the
average household income within a one mile radius exceeding
$30,500. The Subject offering represents and ideal opportunity
for a 1031 exchange buyer or a “passive” investor to a attain
the fee simple ownership of a Brand New Dollar General. This
investment will offer a new owner continued success due to
the financial strength and the proven profitability of the tenant,
the nation’s top dollar store. List price reflects a 6.5% cap rate
based on NOI of $117,837.
» Brand New Absolute NNN Dollar General (Zero Responsibilities).
» 15 Year Term I Four (5 Yr.) Options, 10% Bumps at each option.
» Population Within a Five Mile Radius Exceeds 16,500 people.
» Household Income in a One Mile Radius Exceeds $30,500.
» Corporate Guarantee by Dollar General which carries a S&P “BBB-” Rating.
» Upgraded Architecture (Brick & EIFS Stucco).
PROPERTY HIGHLIGHTS:
LAKE PLACID, FLORIDAAbsolute NNN with 11.5 Years Remaining
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PROPERTY OVERVIEW
Purchase Price: $1,812,892
Cap Rate: 6.5%
Net Operating Income: $117,838
Total Rentable Square Footage: 9,002
Price Per Square Foot: $201
Initial Term Expiration: 9/30/30
Total Land Area: 1.61 Acres
Year Built: 2015
LEASE OVERVIEW
Tenant: Dollar General
Lease Guarantor: Corporate
Lease Type: Absolute NNN
Lease Commencement: 9/12/15
Original Lease Term: 15 Years
Lease Expiration: 9/30/30
Term Remaining on Lease: 11.75 Years
Renewal Options: Four 5-Year Renewals
Rent Increases: 10% each option
Annual Base Rent: $117,837
First Right Of Refusal: None
INVESTMENTHIGHLIGHTS
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LAKE PLACID, FL One of Florida’s prettiest small towns, Lake Placid boasts nearly 50 outdoor murals adorning its downtown buildings.
Found in the lake-intensive center of the state and known
as the Caladium Capital of the World, Lake Placid has 27
freshwater lakes, beautiful murals around town depicting its
history, Toby’s Clown School and the historical Happiness
Tower which rises 270 feet above ground. The lake is a year-
round multi-use lake with recreational activities such as
power boating, water skiing, and jet skiing taking place. The annual Caladium Festival is held the end of July, Henscratch Farms Vineyard & Winery hosts an annual Grape Stomp in August, and a Saturday Morning Market is held on the second Saturday of each month October through March. Enjoy the area’s unique ecosystem at Archbold Biological Station, as well as a historically good time at the Depot Museum, home of the red caboose and local history artifacts displayed by the Lake Placid Historical Society. In 2012, Reader’s Digest named Lake Placid “America’s Most Interesting Town.”
RADIUS FROM PROPERTY 3 MILE 5 MILE 10 MILE
POPULATION
2023 PROJECTION 9,021 20,061 26,193
2018 ESTIMATE 8,524 19,093 24,863
2010 CENSUS 7,719 18,060 23,154
GROWTH 2018 - 2023 5.83% 5.07% 5.35%
GROWTH 2010 - 2018 10.43% 5.72% 7.38%
HOUSEHOLDS
2023 PROJECTION 3,833 8,357 11,111
2018 ESTIMATE 3,610 7,944 10,537
2010 CENSUS 3,204 7,464 9,767
GROWTH 2018 - 2023 6.18% 5.20% 5.45%
GROWTH 2010 - 2018 12.67% 6.43% 7.88%
OWNER OCCUPIED 2,612 6,184 8,455
RENTER OCCUPIED 997 1,760 2,082
2018 HOUSEHOLDS BY HH INCOME
<$25,000 1,520 3,052 3,661
$25,000 - $50,000 1,097 2,341 3,169
$50,000 - $75,000 618 1,449 2,106
$75,000 - $100,000 161 564 882
$100,000 - $125,000 113 287 320
$125,000 - $150,000 15 61 140
$150,000 - $200,000 59 137 200
$200,000+ 25 53 60
2018 AVG HOUSE-HOLD INCOME
$40,837 $44,035 $46,181
TRADE AREA DEMOGRAPHICSLAKE PLACID, FLORIDATRADE AREA DEMOGRAPHICS
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The information contained in the following Offering Memorandum ("OM") is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person, entity, or affiliates 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 OM has
been prepared to provide summary, unverified 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, 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 OM 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.
NON-DISCLOSURE NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this OM. The presence of any corporation’s logo or name is not intended to
indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant
lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THEMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
CONFIDENTIALITYAND DISCLOSURE
Moving Capital , Making Markets , Maximizing Value
BRETT CHETEK SENIOR MANAGING DIRECTOR Office: (786) 522-7091Cell: (314) [email protected]
Exclusively Presented by:
www.chetekgroup.com
ALEX PEREZSENIOR DIRECTOR Office: (314) 889-2517Cell: (314) [email protected]
CHRIS GARAVAGLIASENIOR INVESTMENT ADVISOR Office: (314) 889-2562Cell: (314) [email protected]
RYAN BRIGGSSenior AnalystOffice: (786) 522-7126Cell: (314) [email protected]
