DOLLAR GENERAL
2832 Highway 421
Bristol, TN 37620
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.
Presented by:
2
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure 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 or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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 and improvements, the presence or absence of contaminating substances, PCB’s or asbestos,
the compliance with 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 Marketing Brochure 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-ENDORSEMENT NOTICE
Marcus & 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 marketing package. 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 CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
BROKER OF RECORD
Anne Williams | Marcus & Millichap REIS of Memphis | 5100 Poplar Avenue, Suite 2505, Memphis, TN 38137 | T:901.620.3600 F: 901.620.3610
Presented by:
3
presented by
Presented by:
Mike James
Tony Anderson
Associate Vice President
Investments
p: 818.212.2755
f: 818.212.2710
[email protected]
License: CA 01869890
Associate
Investments
p: 818.212.2760
f: 818.212.2710
[email protected]
License: CA 01936642
4
Dollar General
Investment Overview
Investment Highlights:
• Brand New 15 Year NNN Investment Opportunity
Estimated April Opening
• Investment Grade (S&P “BBB-”) Tenant
• Nation’s Largest Small-Box Discount Retailer with
Over 11,000 Locations in 40 States
• Dollar General has $17.5 Billion in Sales Volume and
is Ranked #163 in Fortune 500
• Tennessee is a No Individual State Income Tax Consult Your CPA
• Located Near King University - 2,200 Enrolled
Students
Marcus & Millichap is pleased to present a newly developed Dollar General
property at 2832 Highway 421 in Bristol, Tennessee. The subject property is
a free-standing 9,100-square foot building situated on a 2.08 acre lot. Dollar
General is operating under a new 15 year NNN lease set to commence in April
of 2015. There are five five-year options to renew with ten percent increases in
each option.
Dollar General is a growing Fortune 500 company (#183), with over $14.8 billion in revenue, and 37 percent growth since the great recession began. Dollar
General’s credit rating was recently upgraded to Investment Grade (BBB-) by
Standard & Poor’s, and it is publicly traded on the New York Stock Exchange
under the ticker symbol, “DG”. In recent years, the chain has started constructing more stand-alone stores, typically in areas not served by another general
merchandise retailer. As of February 27, 2015, it operated 11,879 stores located
in 43 states. The company was formerly known as J.L. Turner & Son, Inc. and
changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.
Bristol is a city in Sullivan County, Tennessee, United States. The population
was 26,702 at the 2010 census. It is the twin city of Bristol, Virginia, which lies
directly across the state line between Tennessee and Virginia. Bristol is probably best known for being the site of some of the first commercial recordings of
country music, showcasing Jimmie Rodgers and the Carter Family, and later
a favorite venue of the mountain musician Uncle Charlie Osborne. The U.S.
Congress recognized Bristol as the “Birthplace of Country Music” in 1998. In
addition, Bristol is the site of Bristol Motor Speedway, a NASCAR short track,
that normally sells out more than 160,000 seats twice annually, but attendance
has come up short in recent years.
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
5
Dollar General
Pricing and Financial Analysis
Offering Summary
Purchase Price
CAP Rate
Price/SF
GLA
Lot Size
Year Built
$1,299,000
6.35%
$142.74
9,100 SF
2.08 Acres
2015
Vital Data
Net Operating Income
Lease Type
Lease Term
Lease Commencement
Lease Expiration
Lease Term Remaining
Increases
Options
$82,497
Triple-Net (NNN)
15 Years
4/1/2015
4/1/2030
15 Years
10% in Option
Five Five-Year
representative photo
Tenant Overview
Tenant Trade Name
Ownership
Lease Guarantor
Credit Rating (S&P)
Years in the Business
Dollar General Corporation
Public
Corporate
BBB59 Years
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
6
Dollar General
Tenant Overview
Dollar General stands for convenience, quality brands and low prices. Dollar
General’s successful prototype makes shopping a truly hassle-free experience. We
design small neighborhood stores with carefully edited merchandise assortments
to make shopping simpler. We don’t carry every brand and size, just the most
popular ones.
Dollar General saves you time by staying focused on life’s simple necessities:
laundry detergent, toilet paper, soap, shampoo, socks and underwear...maybe a gadget or two that you just can’t live
without. The average Dollar General customer completes her shopping trip in less than 10 minutes. We promote
a spirit of involvement, and we carry Dollar General’s mission to serve deep into the communities we call home.
Through our charitable outreach, we strive for a real and lasting impact on individuals and their families.
REPRESENTATIVE PHOTO
Tenant Trade Name
Property Type
Net Income
Dollar General Corporation
Net Leased Discount Store
$1,025,116
Total Revenue
$17,504,425
Credit Rating
BBB-
Rating Agency
Stock Symbol
Board
Number of Locations
Headquarters
Website
Years in the Business
In Dollar General, you’ll find a company that embraces substance and simplicity. Our mission is to serve 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 that our customers use every day. 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.
Standard & Poor’s
DG
NYSE
11,000+
Goodlettsville, TN
http://www.dollargeneral.com/home/
index.jsp
59 Years
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
7
Dollar General
Retail Aerial
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
8
Dollar General
Recent Sales Comparables
Property: 540 Three Notch Lane, Bargersville, IN
Property: 8030 South Arlington Avenue, Indianapolis, IN
Close of Escrow:
10/17/2014
Close of Escrow:
2/25/2015
Sale Price:
$1,607,490
Sale Price:
$1,367,186
CAP Rate:
6.50%
CAP Rate:
6.50%
GLA:
9,100
GLA:
9,100
Year Built:
2014
Year Built:
2015
Property: 616 Dutch Valley Drive, Knoxville, TN
Property: 3640 North Mitthoeffer Road, Indianapolis, IN
Close of Escrow:
10/28/2014
Close of Escrow:
11/20/2014
Sale Price:
$1,538,000
Sale Price:
$1,453,765
CAP Rate:
6.50%
CAP Rate:
6.50%
GLA:
9,100
GLA:
9,100
Year Built:
2014
Year Built:
2014
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. © 2014 Marcus & Millichap
9
Dollar General
Recent Sales Comparables
Property: 830 Pacific Avenue, Bremen, GA 30110
Close of Escrow:
Property: 1001Baytree Road, Valdosta, GA
7/1/2014
3/12/2015
Close of Escrow:
Sale Price:
$1,204,000
Sale Price:
$1,858,015
CAP Rate:
6.50%
CAP Rate:
6.50%
GLA:
9,100
GLA:
8.988 SF
Year Built:
2014
Year Built:
2012
Recent Sales Map:
Average CAP Rate: 6.50%
7
6
5
4
3
2
1
0
1
2
3
4
5
6
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. © 2014 Marcus & Millichap
10
Dollar General
Demographic Report
Population
1-Mile
3-Miles
5-Miles
Population
1-Mile
3-Miles
5-Miles
2000 Population
890
8,845
34,526
$0 - $14,999
15.3%
17.0%
20.8%
2010 Population
982
9,370
36,241
$15,000 - $24,999
17.8%
16.3%
16.3%
2013 Population
973
9,309
35,947
$25,000 - $34,999
10.3%
9.7%
12.0%
2018 Population
1,003
9,556
36,246
$35,000 - $49,999
17.9%
17.8%
16.5%
1-Mile
3-Miles
5-Miles
$50,000 - $74,999
21.0%
19.6%
16.8%
2000 Households
365
3,564
14,546
$75,000 - $99,999
8.2%
8.9%
8.2%
2010 Households
415
3,856
15,198
$100,000 - $124,999
4.7%
4.4%
3.6%
2013 Households
411
3,835
15,058
$125,000 - $149,999
2.1%
2.4%
2.2%
2018 Households
427
3,957
15,252
$150,000 - $199,999
1.0%
1.5%
1.6%
2012 Average Household Size
2.41
2.41
2.32
$200,000 - $249,999
0.9%
0.9%
0.8%
2012 Daytime Population
172
1,661
13,249
$250,000 +
0.8%
1.3%
1.2%
2000 Owner Occupied Housing Units
76.58%
74.89%
64.34%
2012 Median Household Income
$41,018
$40,808
$35,736
2000 Renter Occupied Housing Units
14.09%
16.90%
26.50%
2012 Per Capita Income
$22,029
$22,885
$21,869
9.33%
8.21%
9.15%
2012 Average Household Income
$51,899
$55,171
$51,392
2013 Owner Occupied Housing Units
82.29%
78.82%
67.27%
2013 Renter Occupied Housing Units
17.71%
21.18%
32.73%
2013 Vacant
12.58%
11.26%
11.61%
2018 Owner Occupied Housing Units
82.23%
78.82%
67.30%
2018 Renter Occupied Housing Units
17.77%
21.18%
32.70%
2018 Vacant
12.99%
11.66%
11.95%
Household
2000 Vacant
Traffic Counts
Highway 421
8,860 Vehicles per Day
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. © 2014 Marcus & Millichap
11
Dollar General
Demographic Analysis
Population:
In 2014, the population in your selected geography is 35,946. The population has changed by 4.11% since 2000. It is estimated that the population
in your area will be 36,246 five years from now, which represents a change
of 0.83% from the current year. The current population is 48.48% male
and 51.51% female. The median age of the population in your area is 42.6,
compare this to the Entire US average which is 37.3. The population density
in your area is 457.36 people per square mile.
Households:
Race & Ethnicity:
The current year racial makeup of your selected area is as follows: 93.01%
White, 3.80% Black, 0.00% Native American and 0.49% 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 1.74% of the current year population in your selected
area. Compare this to the Entire US average of 17.13%.
There are currently 15,057 households in your selected geography. The number of households has changed by 3.52% since 2000. It is estimated that the
number of households in your area will be 15,252 five years from now, which
represents a change of 1.29% from the current year. The average household
size in your area is 2.31 persons.
Housing:
Income:
In 2014, there are 13,248 employees in your selected area, this is also known
as the daytime population. The 2000 Census revealed that 54.57% of employees are employed in white-collar occupations in this geography, and
49.15% are employed in blue-collar occupations. In 2014, unemployment
in this area is 6.78%. In 2000, the average time traveled to work was 22.0
minutes.
In 2014, the median household income for your selected geography is
$35,736, compare this to the Entire US average which is currently $51,972.
The median household income for your area has changed by 21.33% since
2000. It is estimated that the median household income in your area will be
$42,022 five years from now, which represents a change of 17.59% from the
current year.
In 2000, there were 10,302 owner occupied housing units in your area and
there were 4,243 renter occupied housing units in your area. The median rent
at the time was $320.
Employment:
The current year per capita income in your area is $21,869, compare this to
the Entire US average, which is $28,599. The current year average household
income in your area is $51,392, compare this to the Entire US average which
is $74,533.
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. © 2014 Marcus & Millichap
12
presented by
Presented by:
Mike James
Tony Anderson
Associate Vice President
Investments
p: 818.212.2755
f: 818.212.2710
[email protected]
License: CA 01869890
Associate
Investments
p: 818.212.2760
f: 818.212.2710
[email protected]
License: CA 01936642
13