Absolute Net (NNN) Dollar General€¦ · Strong Q2 in 2018 Dollar General’s net sales increased 10.6% to $6.4 billion in the second quarter of 2018 and same-store sales increased

Dollar General

319 W Cumberland St, Martinsville, IL 62442

James Capital Advisors

Marketing Package

Absolute Net (NNN) Dollar GeneralMartinsville, IL

Dollar General



The Offering

$1,147,435

6.65%

$76,304.04

$126.09

$8.39

Vince Saucer

(424) 325-2617

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Price / SF

Rent / SF

Listing Agent

Phone Number

Email

PROPERTY INFOTenant

Street Address

City

State

Zip

APN

GLA

Lot Size

Year Built

Dollar General

319 W Cumberland St

Martinsville

IL

62442

N/A

9,100 SF

1.24 AC

2018

National Brand RecognitionDollar General is the largest small-box discount retailer in the United States, with more than 15,000 stores in 45 states and an annual revenue of more than $23 billion.

Investment Grade GuaranteeThe lease is guaranteed by Dollar General Corporation (NYSE: DG), a Fortune 500 company with an investment grade credit rating of ‘BBB’ (S&P).

Strong Hedge Against InflationThis Absolute-Net Lease offers 10% increases in each of the five, 5-year options providing the landlord with an excellent hedge against inflation.

New 15-Year Absolute-Net LeaseThis property is subject to a 15-year Absolute-Net (NNN) Lease, which provides passive investment to the landlord and holds the tenant responsible for all maintenance and expenses.

Value-Focused Retailer with Decades of SuccessDollar General has reported growth for 28 consecutive years, most recently with a 3.7% increase in same-store sales in Q2 2018.

Recession Resistant Tenant Dollar General is a leader among low price-point retailers and thrives in middle-America markets where incomes may be modest and population density may be less infill.

INVESTMENT HIGHLIGHTS

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Dollar General



Property Image

Dollar General



Lease Summary

Tenant Reimburses

Tenant Responsible

Tenant Responsible

Corporate

Dollar General

Public (NYSE: DG)

79

14,500+

Real Estate Taxes

Insurance

Repairs & Maintenance

Lease Guarantor

Company Name

Ownership

Years in Business

Number of Locations

LEASE SUMMARYLease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

ROFR / ROFO

Absolute Net (NNN)

Fee Simple

15 Years

May 30, 2018

May 31, 2033

14.5 Years

10% In Each Option

Five, Five-Year Options

No

INVESTMENT HIGHLIGHTSBrand New Build-to-Suit LocationThis brand new build-to-suit location was completed in May 2018.

Limited Competition in Surrounding AreaBeing the largest national brand retailer in the area, Dollar General will dominant the primary market and serve as the main convenience and general store in Martinsville.

Sizable ParcelThis Dollar General was constructed on a sizable, 1.24 acre parcel, providing the investor with the benefit of more flexibility for redevelopment and an enhanced ability for future resale.

Population GrowthMartinsville’s population has grown 5.18% since 2010 and is expected to grow another 1.66% by 2023.

Dollar General



Property Image

Dollar General



Rent Schedule

6.65%

7.31%

8.05%

8.85%

9.74%

10.71%

$8.39

$9.22

$10.15

$11.16

$12.28

$13.50

-

10%

10%

10%

10%

10%

$6,358.67

$6,994.53

$7,693.99

$8,463.39

$9,309.72

$10,240.70

$76,304.04

$83,934.36

$92,327.88

$101,560.68

$111,716.64

$122,888.40

Base Term

1st Option

2nd Option

3rd Option

4th Option

5th Option

05/30/2018 - 05/31/2033

06/01/2033 - 05/31/2038

06/01/2038 - 05/31/2043

06/01/2043 - 05/31/2048

06/01/2048 - 05/31/2053

06/01/2053 - 05/31/2058

CAP RATERENT / SFINCREASEMONTHLY RENTANNUAL RENT PERIODRent Schedule

Dollar General



About the Brand

Dollar General ThrivesEven in a Hot Economy

Find Out Why

Locations Nationwide

15,000+

States

45

Fortune 500 COmpany

Ranked #123

RECENT NEWSStrong Q2 in 2018Dollar General’s net sales increased 10.6% to $6.4 billion in the second quarter of 2018 and same-store sales increased 3.7% from the previous year.

15,000th Store MilestoneOn July 14, 2018, Dollar General celebrated the grand opening of the company’s 15,000th store.

1,100 Stores Added in the Past Year“These new store openings combined with our successful remodels and relocations have allowed us to extend our runway for long-term growth.” - Todd Vasos, CEO of Dollar General

2017 SalesThe Dollar General Corporation had a total of $23.5 billion in sales in 2017.

ABOUT THE BRANDBrand HistoryFounded in 1955, Dollar General has grown from a single wholesale store to the country’s largest small-box retailer.

Brand OverviewDollar General is proud to be America’s neighborhood general store and is dedicated to providing life’s necessities at an affordable price.

Dollar General’s value-focused approach of providing customers with household necessities at a price 20-40% lower than competitors has allowed the company to excel in low-income markets.

Even in a hot economy, Dollar General’s core customers remain loyal and do not trade up, which has contributed to the company’s growth regardless of the state of the economy.

https://money.cnn.com/2018/08/30/news/companies/dollar-general-dollar-tree-walmart-target-economy/index.html

Dollar General



About the Brand

Annual JuneAgriculture Fair

Located in the heart ofMartinsville School District

MARTINSVILLE, ILMartinsville CommunityMartinsville is a part of Clark County and has a humble population of approximately 1,100 people with an average household income of $48,000 in 2018.

Ideal Market LocationBeing a small and low-income community, Martinsville ideally matches the target market that Dollar General’s have been proven to thrive in.

Near Major Traffic ArteriesJust south of Interstate 70 and near the US-Highway 40 this property is located by two major traffic arteries in the city.

LOCATION OVERVIEWCommunity EventsMartinsville is known for their Annual June Agriculture Fair, which is held for one week and attracts patrons from Champaign, IL to Bloomington, IN.

Strategic LocationLocated in the heart of Martinsville School District, this property is located across the street from Martinsville Junior and Senior High with the United States Postal Service blocks away.

Dominant Grocer in MarketThis location was strategically selected for Dollar General, with limited competition as the only discount store or grocer in Martinsville, IL.

Dollar General



Retail Aerial

Dollar General



Retail Aerial

Dollar General



Site Plan

Dollar General



Demographics

Strategic LocationLocated in the heart of Martinsville School District, this property is located across the street from Martinsville Junior and Senior High with the United States Postal Service blocks away.

22,500 VPDI-70

10 MILE

8,045

8,138

8,363

5 MILE

2,348

2,388

2,516

3 MILE

1,508

1,535

1,630

1 MILE

1,110

1,131

1,208

DEMOGRAPHICSPOPULATION

2023 Projection

2018 Estimate

2010 Census

10 MILE

3,323

3,362

3,455

$64,494

$53,835

5 MILE

973

990

1,042

$59,585

$53,170

3 MILE

638

650

689

$55,324

$49,038

1 MILE

474

483

515

$52,452

$46,617

HOUSEHOLDS

2023 Projection

2018 Estimate

2010 Census

HOUSEHOLDS

Avg. HH Income

Med. HH Income

Near Major Traffic ArteriesJust south of Interstate 70 and near the US-Highway 40 this property is located by two major traffic arteries in the city.

Dollar General



DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & Pat Weibel (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections 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 the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer

Dollar General



Contact Information

Contact Information

SUBMIT OFFER

Pat WeibelIL Real Estate Broker

IL RE Lic. 471018266

Vince SaucerSenior Associate

(424) [email protected] RE Lic. 01935636

mailto: [email protected]?subject=LOI - Dollar General - Martinsville, IL

Documents

Absolute Net (NNN) Dollar General€¦ · Strong Q2 in 2018 Dollar General’s net sales increased 10.6% to $6.4 billion in the second quarter of 2018 and same-store sales increased