SINGLE TENANT ARIZONA INVESTMENT OPPORTUNITY GOLDEN VALLEY (NYSE: DG) ACTUAL SITE

Transcription

1 SINGLE TENANT INVESTMENT OPPORTUNITY (NYSE: DG) GOLDEN VALLEY ARIZONA

2 EXCLUSIVELY MARKETED BY SRS REAL ESTATE PARTNERS-WEST, LLC ED BEEH EVP & MARKET LEADER 3131 E. Camelback Road, Suite 110 Phoenix, AZ DL: M: AZ License No. BR JIM SCHUCHERT FIRST VICE PRESIDENT 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No JOE SCHUCHERT FIRST VICE PRESIDENT 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No PATRICK R. LUTHER, CCIM MANAGING PRINCIPAL 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: AZ License No. BR

3 TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING SUMMARY INVESTMENT HIGHLIGHTS 8 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 15 AREA OVERVIEW DEMOGRAPHICS 17 FINANCIALS RENT ROLL BRAND PROFILE

4 INVESTMENT SUMMARY SRS is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in a Dollar General property located in Golden Valley, Arizona. Built in 2004, the lease has approximately 10 years remaining in the current term with two (2) five (5) year options. Dollar General recently committed to a 10-year extension of the lease, reflecting their strong commitment to this location. In addition, the store underwent an extensive interior remodel further signifying Dollar General s commitment to this location. The lease is guaranteed by Dollar General Corp (NYSE: DG) with an investment grade credit rating of BBB from Standard & Poor s. The subject property is strategically located on the main thoroughfare in town, U.S. Highway 68 (four-lane highway), boasting traffic counts in excess of 11,495 vehicles per day. Golden Valley is located 24 miles east of Laughlin NV, 27 miles east of Bullhead City AZ, 46 miles west of the California state line, 68 miles north of Lake Havasu AZ, and 98 miles south of Las Vegas NV. Golden Valley is located in Mohave County which is Home to Lake Havasu City, Arizona s premier vacation spot, boasting in excess of 775,000 visitors a year. The 5-mile trade area is supported by a growing population of more than 7,549 residents with an average household income of $41, INVESTMENT SUMMARY SRS.

5 OFFERING SUMMARY OFFERING PRICING: $857,143 NET OPERATING INCOME: $60,000 CAP RATE: 7.00% GUARANTY: Corporate TENANT: Dollar General LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof, Structure, and HVAC PROPERTY SPECIFICATIONS RENTABLE AREA: 9,014 SF LAND AREA: 3.32 Acres PROPERTY ADDRESS: 5181 AZ-68, Golden Valley, AZ YEAR BUILT: 2004 PARCEL NUMBER: B OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS.

6 INVESTMENT HIGHLIGHTS DOLLAR GENERAL CORPORATE GUARANTEED LEASE: 10 Years Remaining in the Current Lease Term Tenant Recently Committed to a Rare 10-Year Lease Extension 2004 Construction Current Dollar General Prototype 9,014 SF Two (2) Five (5) Year Option Periods with Increases; 18.7% at Option 1 and 12% at Option 2 NN LEASE MINIMAL LANDLORD RESPONSIBILITIES: Landlord Responsibilities Limited to Roof, Parking Lot and HVAC Tenant Contributes $338 per Month ($4,056 per Year) as Tenant s Sole Contribution to Landlord for its Cost of Care and Maintenance of the Common Area Tenant Required to Carry a Maintenance Contract Covering the HVAC System which Includes Quarterly Servicing All Four (4) HVAC Units Replaced in 2015 PROXIMITY TO MAJOR CITIES: Laughlin, NV = 24 Miles West; 29 Minute Drive Bullhead City, AZ = 27 Miles West; 31 Minute Drive California State Line = 46 Miles West; 49 Minute Drive Lake Havasu, AZ = 68 Miles South; 1 Hour: 13 Minute Drive Las Vegas, NV = 98 Miles North; 1 Hour: 40 Minute Drive RECENT LONG-TERM LEASE EXTENSION RECENT INTERIOR STORE REMODEL: Dollar General Recently Committed to a Rare 10-Year Lease Extension In 2018, the Interior of the Subject Property was Remodeled at the Sole Cost and Expense of Dollar General GOLDEN VALLEY, ARIZONA: Located in Mohave County Named After a Company from Hollywood CA, that Went Into Partnership with Crystal Collins to Develop Most of the Land South of Highway 68 into 2.5 Acre Parcels Golden Valley Development Lies in the Sacramento Valley, Separated from the Neighboring Cities of Kingman and Bullhead City by the Surrounding Mountain Ranges Arizona State Route 68 Runs Through the Heart of Golden Valley, Connecting it to Kingman and Bullhead City, Which Lie at the End of Each Route MOHAVE COUNTY: The County Seat is Kingman and the Largest City is Lake Havasu City Comprises the Lake Havasu City-Kingman, AZ Metropolitan Statistical Area, which is also Included in the Las Vegas-Henderson, NV-AZ Combined Statistical Area SUBJECT PROPERTY CONSISTENT WITH CURRENT DG PROTOTYPE 9,100 SF LOW RENT: Square Footage of Subject Property is Consistent with Dollar General s Current Prototype of 9,100 SF Low Rent Tenant Paying Just $6.66 PSF 6 INVESTMENT HIGHLIGHTS SRS.

7 INVESTMENT HIGHLIGHTS LAKE HAVASU 68 MILES FROM SUBJECT PROPERTY (1 HOUR: 15 MINUTE DRIVE): The Area Attracts 775,000 Visitors a Year Thanks to its Calm Waters, Beautiful Beaches, and Desert Weather with More than 300 Sunny Days a Year Centrally Located Along 60 Continuous Miles of Lake and River Waterways that Start from Where the Colorado River Meets Parker Dam All the Way Through Needles CA to Laughlin NV More than 400 Miles of Stunning Coastline Offer Exceptional Watersports, Including Fishing, Skiing, Kayaking and House Boating The Lake is Ideal for Large and Small-Mouth Bass and Striper Dishing as Lake Havasu is Rated as One of the Top 100 Best Bass Fishing Lakes in America TENANT: Dollar General (NYSE: DG) Features Investment Grade Credit BBB by S&P - Other Tenants with a BBB Credit Rating Include: AutoZone AZO, FedEx FDX, Walgreens WBA, and Delhaize DEG (Food Lion, Stop & Shop, Hannaford) 15,015 stores in 44 states as of August 3, 2018 Ranked #123 on the Fortune 500 List Up 5 Points From 128 Last Year (Dollar General Has Moved up the Fortune 500 Ranking for the 10th Consecutive Year) 7 INVESTMENT HIGHLIGHTS SRS.

8 PROPERTY OVERVIEW ACCESS State Highway 68:... 1 Access Point TRAFFIC COUNTS State Highway 68:...11,500 Cars Per Day IMPROVEMENTS There is approximately 9,014 SF of existing building area. PARKING There are approximately 31 parking spaces on the owned parcel. The parking ratio is approximately 3.44 stalls per 1,000 SF of leasable area. YEAR BUILT 2004 PARCEL MAP PARCEL Parcel Number: B Acres: 3.32 Square Feet: 144,619 SF ZONING Commercial 8 PROPERTY OVERVIEW SRS.

9 Black Mountain Elementary School (225 Students) 11,500 CARS PER DAY State Highway 68 Mayer Rd.

10 11,500 CARS PER DAY State Highway 68 Mayer Rd. Future Development Opportunity

11 11,500 CARS PER DAY Mobile Rd. State Highway 68 Future Development Opportunity

12 Mobile Rd. Future Development Opportunity State Highway 68 11,500 CARS PER DAY

13 MAYER RD. PYLON SIGN MOBILE RD. 11,500 VPD

14 GOLDEN VALLEY KINGMAN 2018 ESTIMATED POPULATION 1 Mile Mile... 4,299 5 Mile... 7, AVERAGE HOUSEHOLD INCOME 1 Mile...$38,915 3 Mile...$41,230 5 Mile...$41, ESTIMATED TOTAL EMPLOYEES 1 Mile Mile Mile BULLHEAD CITY

15 AREA OVERVIEW Golden Valley, Arizona Golden Valley is an unincorporated community and a census-designated place (CDP) in Mohave County, Arizona, United States. The population was 9,055 as of July 1, Golden Valley, Arizona was named after a company from Hollywood, California, that went into partnership with Crystal Collins to develop most of the land south of Highway 68 into 2.5 acre parcels. Golden Valley is situated in the middle of Mohave County; it is a central point for many transportation arteries. The unincorporated community of Golden Valley is separated from the larger neighboring cities of Kingman and Bullhead City by the surrounding mountain ranges. Arizona State Route 68 runs through the heart of Golden Valley, connecting it to Kingman and Bullhead City which lie on each end of the route. State Highway 68, U.S. Route 93, and Interstate 40 are easily accessible from this area. The completion of the new U.S. Route 93 Bridge makes for a quick and easy drive to and from the Las Vegas, NV area. Veteran s Community Park was established in 1979 and is located in Golden Valley on the corner of Chino and Verde, just north of Highway 68. Approximately ten acres in size, the park offers a lighted ramada with picnic tables, barbecue, walking path, baseball fields, basketball court and a playground area for the children. A sliver of the Colorado River where Arizona and Nevada meet has been transformed into a fastgrowing tourist and gambling destination in a few short decades. Today there are nine hotel/ casinos in Laughlin providing over 10,000 rooms, 94,000 square feet of meeting space, 60 restaurants, two museums, a 34-lane bowling center, and a variety of boutiques, spas, and salons. More than 14,000 casino workers now cross the Colorado River by shuttle boat or the Laughlin Bridge daily. The area attracts nearly 3 million visitors annually who visit to gamble, enjoy water sports on the Colorado and attend concerts and special events hosted in the region. Mohave County is in the northwestern corner of the U.S. state of Arizona. As of July 1, 2017, its population was 207,200. The county seat is Kingman, and the largest city is Lake Havasu City. Mohave County comprises the Lake Havasu City-Kingman, AZ Metropolitan Statistical Area, which is also included in the Las Vegas-Henderson, NV-AZ Combined Statistical Area. Mohave County contains parts of Grand Canyon National Park and Lake Mead National Recreation Area and all of the Grand Canyon-Parashant National Monument. The Kaibab, Fort Mojave and Hualapai Indian Reservations also lie within the county. 15 AREA OVERVIEW SRS.

16 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2018 Estimated Population 773 4,299 7, Projected Population 800 4,463 7, Census Population 725 4,001 6,950 Projected Annual Growth 2018 to % 0.75% 0.80% Historical Annual Growth 2010 to % 0.87% 0.96% 2018 Estimated Households 333 1,869 3, Projected Households 345 1,943 3, Census Households 310 1,731 2,993 Projected Annual Growth 2018 to % 0.78% 0.83% Historical Annual Growth 2010 to % 0.93% 1.01% 2018 Estimated White 93.98% 94.04% 93.89% 2018 Estimated Black or African American 0.26% 0.47% 0.49% 2018 Estimated Asian or Pacific Islander 0.65% 0.86% 0.98% 2018 Estimated American Indian or Native Alaskan 2.46% 2.02% 1.89% 2018 Estimated Other Races 4.79% 3.75% 3.72% 2018 Estimated Hispanic 12.03% 11.47% 11.77% 2018 Estimated Average Household Income $38,915 $41,230 $41, Estimated Median Household Income $33,424 $33,901 $34, Estimated Per Capita Income $16,517 $17,725 $18, Estimated Total Businesses Estimated Total Employees AREA DEMOGRAPHICS SRS.

17 RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Dollar General 9,014 5/1/2005 4/30/2028 Current - $5,000 $0.55 $60,000 $6.66 NN 2 (5-Year) (Corporate Guaranty) Opt. 1: $71,220 Opt. 2: $79,740 FINANCIAL INFORMATION PROPERTY SPECIFICATIONS Price:...$857,143 Net Operating Income:...$60,000 Cap Rate: % Lease Type:... NN For financing options and loan quotes, please contact our SRS Debt & Equity team at debtequity-npb@srsre.com. Year Built: Rentable Area:... 9,014 SF Land Area: Acres Address: AZ-68, Golden Valley, AZ RENT ROLL SRS.

18 BRAND PROFILE DOLLAR GENERAL Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General operated 15,015 stores in 44 states as of August 3, It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred s in the Southeast, and numerous independently owned stores. In addition to high quality private brands, Dollar General sells products from America s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg s, General Mills, and PepsiCo. Dollar General Corporation was founded in Company Type:...Public (NYSE: DG) 2018 Employees:...129, Revenue:...$23.47 Billion 2018 Net Income:...$1.54 Billion 2018 Assets:...$12.52 Billion 2018 Equity:...$6.13 Billion Credit Rating:... S&P: BBB Credit Rating:... Moody s: Baa2 18 BRAND PROFILE SRS.

19 SRS GLOBAL STATS PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.