NNN Dollar General - ctbt.com · Dollar General Bartow, Florida The information set forth herein...

NNN Dollar GeneralNEAR TAMPA – MASONRY CONSTRUCTION

RELOCATION AND EXPANSION

ONE OF THE WORLD’S MOST SUCCESSFUL RETAILERS•

— Credit Rating Increased For the 3rd Time in 24 Months!

Price: $1,850,000 — 7.40% Cap Rate•

Relocation and Expansion Store •

Best Dollar General Construction: All Masonry, Not Metal•

$4.37 Billion Net Worth — Fortune 500 NYSE Company•

DG 2010 Profi t Up 85%!!•

Bartow, Florida•

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

File Photograph

Net Lease Investment Services

201 California Street, Suite 800 | San Francisco, CA 94111 | tel 415.781.8100 | fax 415.956.3381 | www.ctbtnnn.com | Cassidy Turley Northern California | Lic #00825241



Dollar General Bartow, Florida

RCS:dkw:1011:10The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

LOCATION 1387 US Highway 98 (North Broadway Avenue), Bartow, Florida. (47 miles directly

east of Tampa). See “Relocation and Expansion.”

LOT SIZE 1.90+/- acres — 82,764+/- square feet

IMPROVEMENTS To begin construction November 1, 2011 and to be completed April 2012, a

9,100+/- square foot DOLLAR GENERAL retail store with 33 parking spaces (see

“Construction”)

LEASE Leased to a subsidiary of and guaranteed by DOLLAR GENERAL CORPORATION for 15 years from April 2012 until April 2027 at a net annual rent of $136,764.

The lease is absolute net with tenant responsible for taxes, insurance and general

maintenance expenses including roof, structure and parking lot. There are two fi ve-

year options to renew with 10% rental increases each option period. See “Unique

Lease.”

NET ANNUAL INCOME YEARS NET ANNUAL RENT CAP RATE1-15 $136,764 7.40%

16-20 (Option 1) $150,431 8.13%

21-25 (Option 2) $165,480 8.94%

PRICE $1,850,000 — 7.40% Cap Rate

PRICE PER SQUARE FOOT $203

RENT PER SQUARE FOOT $15.03 net per year — $1.25 net per month





UNIQUE LEASE This is the new 15-year NNN lease on the new DG form. By comparison, here is the

lease on another Dollar General property in the rural southeast.

SUBJECT “OTHER PROPERTY”

Location Bartow, Florida Haskell, Arkansas

Masonry

Construction ?Yes No

Lease Term 15 Years10 years

(9 years remaining)

NNN ? Yes No

Landlord

ResponsibilityNone

Roof; structure; exterior of the

property except plate glass. None

of this is reimbursed. Landlord

handles parking lot and landscape

maintenance but is reimbursed.

CONSTRUCTION This all-masonry construction, very uncommon for any“dollar store.”

RELOCATION AND EXPANSION This is designated by Dollar General as a “priority relocation.” Its current store

is about three blocks away, in-line in a grocery-anchored center which is not on

the primary street, US Highway 98. That store is 7,500 square feet, undersized

compared to the Dollar General 9,100 sf prototype which will be built at the subject

site. That store must be closed; its lease is ending mid-2012, and Dollar General

will not renew.





ABOUT THE TENANT(QUANTITATIVE INFORMATION)

DOLLAR GENERAL CORPORATION (NYSE: “DG”) has been in business since

1939. Headquartered in a suburb of Nashville, the company is a national discount

variety chain operating 9,641 stores in 35 states as of July 29, 2011. Formerly

privately held, the chain went public in November 2009. Dollar General is ranked

#188 among the 2011 Fortune 500 companies.

DG HAS MORE STORES THAN ANY OTHER RETAILER IN AMERICA.

For the six months ended July 2011, total sales were $7.03 billion (an 11.1%

increase compared to the same period in fi scal 2010) and net income was

$303 million (19.7% increase). Net worth was $4.37 billion.

For the fi scal year ended January 31, 2011, Dollar General reported annual

revenues of nearly $13.04 billion with net income of $627.9 million. For that fi scal

year, compared to the previous fi scal year, DG reported the following % increases:

Total Sales 10.5%

Same-Store Sales 4.9%

Net Income 85.3%

Net Worth 19.6%

In January 2011, DG announced it would add 625 new stores in 2011, with 6,000

new employees. Growth in 2010 added 5,000 new employees.

Dollar General is rated “BB+” by Standard & Poor’s. When it went public in late 2009, and raised equity at that time, it was upgraded by S&P to “BB–.” It was upgraded for the second time in eight months, in June 2010, to “BB.” Thirteen months later, in July 2011, Dollar General was upgraded yet again, to “BB+.”





ABOUT THE TENANT(GENERAL BACKGROUND)

The following is paraphrased from a recent company press release:

Dollar General Corporation has been delivering value to shoppers for more than

70 years. Dollar General helps shoppers “Save time. Save money. Every day!®”

by offering products that are frequently used and replenished, such as food,

snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and

seasonal items at low everyday prices in convenient neighborhood locations...In

addition to high-quality private brands, Dollar General sells products from America’s

most-trusted manufacturers such as Proctor & Gamble, Kimberly-Clark, Unilever,

Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.

Learn more about Dollar General at www.dollargeneral.com

DOLLAR STORESBEATING UP ON WAL-MART

The four largest “dollar store” chains, by market cap, and annual sales are:

APPROXIMATE MARKET CAP* ANNUAL SALES

Dollar General (tenant) $12.29 Billion $13.04 Billion

Dollar Tree $ 9.00 Billion $ 5.88 Billion

Family Dollar $6.15 Billion $ 7.87 Billion

99¢ Only $1.33 Billion $ 1.42 Billion

* As of late August 2011

All these are beating Wal-Mart handily. For the second quarter of 2010, all had

same-store sales up 6% to 7%. Wal-Mart sales were down 1.4%. Recent articles

have emphasized this fact. Wal-Mart has asked its suppliers to follow the dollar

stores and “get cheaper” by downsizing the portions. Instead of a single bag of

candy at $2.00, please package it as two bags for $1.00.

From a recent internet article:

“{The• dollar stores} have been revamping up service efforts and offerings

{such as} Kraft brands.”

“An• other [advantage]...is location and operating cost. While Wal-Mart is

mostly suburban and rural-based, {dollar stores} can be tucked into strip

malls with low rent and overhead, {while Wal-Mart} requires giant swaths of

land.”

“The• Dollar General CEO said , ‘Our difference is our low price in a convenient location.’”





DOLLAR STORESBEATING UP ON WAL-MART(CONTINUED)

From a page one article in the NY Times, September 22, 2010, entitled “In Hard

Times, $1 Items Lure Shoppers, and Retailers Scramble”:

“Dollar stores have best been able to capitalize on the downmarket trend because

of the strategies they embraced during the recession, when the stores kept things

cheap and expanded their merchandise...shoppers often could not afford regular-

size detergent [so] the [dollar] stores worked with manufacturers to create smaller

packages which cost less...[a certain Dollar General shopper said the reason she

goes to dollar stores instead of Wal-Mart is] ‘you don’t have the big crowds and it

is cheap’...same store sales at the dollar stores have increased 10 straight quarters

and declined at Wal-Mart fi ve straight quarters...dollar stores have switched out

merchandise like trinkets for necessities like food and detergent because consumers

have really curtailed discretionary spending out of necessity.”

SITE INFORMATION The area is a seasoned commercial/retail corridor north of downtown Bartow.

Surrounding retailers include Publix, Wal-Mart, Lowes, Offi ce Depot, Dollar Tree,

CVS, Walgreens, Save-A-Lot, Circle K and Winn Dixie, to name a few.

ABOUT THE AREA Bartow is 12 miles southeast of Lakeland, 47 miles east of Tampa and 50 miles

southwest of the Greater Orlando area. The primary roads in the Bartow area are

U.S. Route 17, U.S. Route 98 and State Road 60 which provide access to locations

throughout Central Florida. The city is located in the Lakeland - Winter Haven

metropolitan area. Bartow had a population of 16,959 as of the 2009 census

estimate. Lakeland has a population of about 95,000.

US Route 98, the location of the subject, is the major north-south road and goes

right through the center of Bartow.

Tampa International Airport (TPA) and Orlando International Airport (MCO) are the

two major airports.

DEMOGRAPHICS 1-MILE 3-MILE 5-MILE

Population (2009) 6,066 18,542 26,745

Avg. Household Income $48,106 $59,710 $60,678





NOTE The information set forth herein has been received by us from sources we believe

to be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

FLORIDA





CONCEPTUAL SITE PLAN





P d

James E. Stephens Elementary PK-5 | 430 students

Proposed

Priority Relo # 7648

FDOT Central office

Polk County Government Offices15,000 Polk county employees

BARTOW TRADE AREA OVERVIEW





NN

Proposed New

Davis Brothers Motor Lodge

Priority Relo # 7648

US HWY 98 ( 40,000 VPD)

FDOT 2009

US HWY 98 ( 40,000 VPD)

FDOT 2009

Car Wash

US HWY 60 ( 35,500 VPD)

FDOT 2009

US HWY 60 ( 35,500 VPD)

FDOT 2009

MID-LEVEL AERIAL WITH SITE ACCESS





NN

Proposed

New

US HWY 98 ( 40,000 VPD)

FDOT 2009

US HWY 98 ( 40,000 VPD)

FDOT 2009

Davis Brothers Motor Lodge

LOW-LEVEL AERIAL WITH SITE ACCESS





0 mi 0.5 1 1.5 2 2.5

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0 mi 5 10 15 20

MAP

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0 mi 20 40 60 80

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Updated Summary Report (%) Coordinates Longitude: -81.837483October 7, 2011 Latitude: 27.903864

1.0 Mile 3.0 Mile 5.0 Mile Ring Ring Ring

3.14 sq/mi 28.27 sq/mi 78.54 sq/mi

POPULATION 1990 Total Population 5,851 16,612 22,733 2000 Total Population 5,233 16,107 22,5352009 Total Population 6,066 18,542 26,7452014 Total Population 6,022 18,445 26,749% Population Change 1990-2000 -10.56% -3.04% -0.87%% Population Change 2000-2009 15.92% 15.12% 18.68%% Population Change 2009-2014 -0.73% -0.52% 0.01%

HOUSEHOLDS 1990 Total Households 2,035 5,763 7,874 2000 Total Households 2,028 5,825 8,0962009 Total Households 2,436 6,975 9,9392014 Total Households 2,528 7,214 10,342% Households Change 1990-2000 -0.34% 1.08% 2.82%% Households Change 2000-2009 20.12% 19.74% 22.76%% Households Change 2009-2014 3.78% 3.43% 4.05%

2009 RACE % 2009 White Population 56.71% 60.86% 64.05%% 2009 Black Population 30.56% 29.12% 25.20%% 2009 American Indian/Alaska Native 0.40% 0.53% 0.55%% 2009 Asian/Hawaiian/Pacific Islander 1.95% 1.55% 2.00%% 2009 Other Population (Incl 2+ Races) 10.39% 7.93% 8.21%

% 2009 Hispanic Population 18.10% 13.60% 14.40%% 2009 Non-Hispanic Population 81.90% 86.40% 85.60%





Updated Summary Report (%) Coordinates Longitude: -81.837483October 7, 2011 Latitude: 27.903864

1.0 Mile 3.0 Mile 5.0 Mile Ring Ring Ring

3.14 sq/mi 28.27 sq/mi 78.54 sq/mi

INCOME2009 Per Capita Income $19,319 $22,461 $22,5492009 Median Household Income $32,510 $39,275 $41,3592009 Average Household Income $48,106 $59,710 $60,678

% 2009 Household Income < $10,000 9.97% 8.93% 8.27%% 2009 Household Income $10,000-$14,999 9.23% 6.32% 5.93%% 2009 Household Income $15,000-$19,999 8.41% 9.12% 8.16%% 2009 Household Income $20,000-$24,999 10.46% 7.71% 7.07%% 2009 Household Income $25,000-$29,999 7.35% 5.82% 5.65%% 2009 Household Income $30,000-$34,999 9.11% 6.88% 6.61%% 2009 Household Income $35,000-$39,999 7.88% 6.09% 6.23%% 2009 Household Income $40,000-$44,999 7.18% 8.19% 7.64%% 2009 Household Income $45,000-$49,999 5.21% 6.11% 6.26%% 2009 Household Income $50,000-$59,999 10.83% 12.17% 12.22%% 2009 Household Income $60,000-$74,999 6.81% 9.49% 10.27%% 2009 Household Income $75,000-$99,999 4.35% 7.37% 10.09%% 2009 Household Income $100,000-$124,999 1.23% 2.42% 2.37%% 2009 Household Income $125,000-$149,999 1.19% 1.49% 1.45%% 2009 Household Income $150,000-$199,999 0.25% 0.56% 0.78%% 2009 Household Income $200,000-$249,999 0.16% 0.27% 0.20%% 2009 Household Income $250,000-$499,999 0.37% 1.00% 0.75%% 2009 Household Income $500,000+ 0.00% 0.04% 0.03%

2009 Average Household Size 2.4 2.4 2.6% 2009 Total Owner Occupied Housing Units 53.90% 65.04% 68.77%% 2009 Total Renter Occupied Housing Units 46.10% 34.96% 31.23%

2009 Total Daytime Population 9,977 23,136 30,3742009 Total Daytime Work Population 6,392 12,106 14,8932009 Total Establishments 706 1,230 1,542

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NNN Dollar General - ctbt.com · Dollar General Bartow, Florida The information set forth herein...

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