Representative Photo OFFERING MEMORANDUM PORTFOLIO OF 4 OHIO DOLLAR GENERALS NET LEASE INVESTMENT GROUP

Transcription

1 Representative Photo OFFERING MEMORANDUM PORTFOLIO OF 4 OHIO DOLLAR GENERALS NET LEASE INVESTMENT GROUP

2 TABLE OF CONTENTS OHIO DOLLAR GENERAL PORTFOLIO Executive Summary 3 Offering Highlights 4 Portfolio Location Map 5 Location Summaries Lagrange, OH Property Overview 6 Area Highlights & Demographics 7 Pioneer, OH Two Tenant Retail Property Overview 8 Area Highlights & Demographics 10 Excello (Middletown), OH Property Overview 11 Area Highlights & Demographics 12 Wakeman, OH Property Overview 13 Area Highlights & Demographics 14 Tenant Overview 15 Broker Profiles 16 Confidentiality Agreement 17 BROKER OF RECORD: Christopher Smythe, OH License # OHIO DOLLAR GENERAL PORTFOLIO Ohio NANCY MILLER x 118 NMiller@BullRealty.com GINA LOW x 154 GLow@BullRealty.com NET LEASE INVESTMENT GROUP BULLREALTY.COM PAGE 2 OF 17

3 EXECUTIVE SUMMARY THE OFFERING Bull Realty is pleased to offer this proven 4 store Dollar General Portfolio with recently extended NN leases in Ohio. This portfolio enables investors to achieve higher cap rates, averaging 7.7%, while benefitting from the current Dollar General proto-type store formats. All leases have been recently extended, with an average of 7 ½ years remaining which reflects the confidence of Dollar General in the future performance of these locations. Along with Dollar General s corporate guarantee of all leases, the locations were built, maintained and currently owned by one of Dollar General s premier developers in the US. While offered as a portfolio, each location can be purchased individually. More Highlights: Portfolio price: $3,487,866 with individual locations ranging from $749,846 to $1,080,000. Blended cap rate: 7.7% for the portfolio with individual locations ranging from 7.5% to 8% in cap rate. Leases: 4+ renewal options of five years averaging a 10% increase in each option period. Minimal landlord responsibilities. Proven locations: Backed by a corporate guarantee from Dollar General. Locations include: Lagrange, Pioneer (two tenant with Subway), Excello (Middletown), and Wakeman. All locations within easy drive of major cities including Cleveland, Toledo, Dayton, and Cincinnati. Five mile population: Depending on location, from 4,200 to 83,000. Fort Wayne Cincinnati 601 State Street Pioneer, OH Dayton Toledo 64 Hyde Street Wakeman, OH Columbus Sandusky OHIO 2380 South Main Street Excello (Middletown), OH Cleveland 714 N Center Street Lagrange, OH Akron Canton Youngstown Wheeling Pittsburgh OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 3 OF 17

4 OFFERING HIGHLIGHTS THE OFFERING 4 OHIO DOLLAR GENERAL STORES PORTFOLIO REPRESENTATIVE PHOTO REPRESENTATIVE PHOTO LOCATION PRICE CAP RATE PRICE/SF NOI Lagrange $1,080, % $ $81,000 Pioneer (Two Tenant - DG & Subway) $862, % $83.02 $69,000 Excello (Middletown) $795, % $88.25 $59,664 Wakeman $749, % $83.19 $58,488 Portfolio $3,487, % $93.18 $268,152 Dollar General, Lagrange, OH NN lease recently extended through January 2025 with four 5 year renewal options. Located thirty five miles southwest of Cleveland and eight miles from Oberlin College. Ford s Ohio Assembly Plant in Avon Lake, OH, one of the region s largest employers, is nineteen miles away. Average household income $75K + within five miles. Dollar General & Subway, Pioneer, OH Two tenant retail strip center featuring Dollar General and Subway. Dollar General s NN lease recently extended through September 2023 with four 5 year renewal options. Subway s lease was extended through December 2021 with two 5 year renewal options with rent increases. Located four miles north of I-90 and fifty six miles west of Toledo, OH. Dollar General, Excello (Middletown), OH NN lease recently extended through September 2023 with four 5 year renewal options. Located six miles west of I-75 and midway (ten miles) between Dayton and Cincinnati. Within five mile population of 83K and $57K + average household income. Area known for skydiving, many local parks and the arts. Dollar General, Wakeman, OH NN lease recently extended through January 2024 with four 5 year renewal options. Twelve miles south of Lake Erie and forty five miles west of Cleveland. Average household income $66K + within five miles. Area also noted for its vineyards. THESE PROPERTIES CAN BE PURCHASED AS A PORTFOLIO OR SEPARATELY. OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 4 OF 17

5 PORTFOLIO LOCATION MAP Toledo 601 State Street Pioneer, OH Sandusky Cleveland 714 N Center Street Lagrange, OH Fort Wayne 64 Hyde Street Wakeman, OH Akron Youngstown Canton OHIO Pittsburgh Columbus Wheeling Dayton 2380 South Main Street Excello (Middletown), OH Cincinnati PAGE 5 OF 17

6 LAGRANGE OH DOLLAR GENERAL AREA HIGHLIGHTS & DEMOGRAPHICS PROPERTY & LEASE INFORMATION Subject Property: Single Tenant Property Location: 714 N. Center Street, Lagrange, OH County: Lorain Price: $1,080, Cap Rate: 7.5% Rentable SF: 9,014 SF Current Income: $81, Base Rent/SF/YR: $8.99 Year Built: 2008 Lot Size: 1.03 acres Type of Ownership: Fee simple Tenant Trade Name: Dollar General Tenant: Dolgen Midwest, LLC Lease Type: NN Landlord Responsibilities: Roof, structure & grounds CAM: Monthly parking lot maintenance payments by Tenant. Cost of snow removal reimbursed by tenant. RE Taxes & Insurance: Tenant reimburses RE taxes. Property is on Dollar General s National Insurance Program. Lease commencement: August 1, 2008 Lease Expiration: January 31, 2025 (extended with LMA #3) Renewal Options: Four 5 year options Rent Increases: 10% at renewals RENT SCHEDULE Term Dates Monthly Rent Annual Rent Annual CAM Current Term 8/1/08 to 7/31/18 $6, $81, $4, Current Term 8/1/18 to 7/31/25 $6, $81, $5, Renewal Option 1 8/1/25 to 7/31/30 $7, $89, $6, Renewal Option 2 8/1/30 to 7/31/35 $8, $98, $7, Renewal Option 3 8/1/35 to 7/31/40 $8, $107, $8, Renewal Option 4 8/1/40 to 7/31/45 $9, $118, $9, Actual Location OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 6 OF 17

7 LAGRANGE OH DOLLAR GENERAL AREA HIGHLIGHTS & DEMOGRAPHICS Gyro House Golden Ginger No 1 Kitchen Golden Bowl Chinese Restaurant El Patron Mexican Restaurant Rubin s Restaurant Nam Wah Cinese Vietmaese Maya Mexican Restaurant DQ The Island Cage Bailey s Pizza House Rachel s Diner Bootleggers Bar & Grille Tooo Chinoise Mandarin Chinese Restaurant Quick & Delicious 714 N Center Street Lagrange, OH 2016 DEMOGRAPHICS (esri) 1 MILE Population 2,105 Households 791 Average Household Income $82,304 3 MILES Population Households Average Household Income Population Households Average Household Income 5,608 2,060 $76,483 5 MILES 15,527 5,824 $75,668 Wakeman DG Cleveland 714 N Center Street Lagrange, OH OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 7 OF 17

8 PIONEER OH DOLLAR GENERAL PROPERTY OVERVIEW (PAGE 1 OF 2) PROPERTY & LEASE INFORMATION Subject Property: Two Tenant Retail - Dollar General and Subway Property Location: 601 South State Street, Pioneer, OH County: Williams Price: $862, Cap Rate: 8.0% Rentable SF: 10,389 SF Totale Current Income: $69, Year Built: 2006 Lot Size: 1.17 acres Type of Ownership: Fee simple DOLLAR GENERAL LEASE INFORMATION SF Occupied: 9,014 Base Rent/SF/YR $6.19 Tenant Trade Name: Dollar General Tenant: Dolgen Midwest, LLC Lease Type: NN Landlord Responsibilities: Roof, structure & grounds CAM: Monthly parking lot maintenance payments by Tenant. Tenant reimburses pro-rata share of snow removal cost. RE Taxes & Insurance: Tenant reimburses pro-rata share of RE taxes and insurance (monthly payments made for both). Lease commencement: October 1, 2006 Lease Expiration: September 30, 2023 (extended with LMA dated 12/30/15) Renewal Options: Four 5 year options Rent Increases: 12% at renewals DOLLAR GENERAL RENT SCHEDULE Term Dates Monthly Rent Annual Rent Annual CAM Current Term 10/1/06 to 9/30/16 $4, $55, $4, Current Term 10/1/16 to 9/30/23 $4, $55, $5, Renewal Option 1 10/1/23 to 9/30/28 $5, $62, $6, Renewal Option 2 10/1/28 to 9/30/33 $5, $69, $7, Renewal Option 3 10/1/33 to 9/30/38 $6, $78, $8, Renewal Option 4 10/1/38 to 9/30/43 $7, $87, $9, Renewal Option 5 10/1/43 to 9/30/48 $8, $98, $10, OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 8 OF 17

9 PIONEER OH DOLLAR GENERAL PROPERTY OVERVIEW (PAGE 2 OF 2) SUBWAY LEASE INFORMATION SF Occupied: 1,375 Base Rent/SF/YR $9.60 Tenant Trade Name: Subway Tenant: Subway Real Estate Corp. Lease Type: NN Landlord Responsibilities: Roof, structure & grounds CAM: Rent includes Tenant s contribution. Insurance Rent includes Tenant s contribution. Lease commencement: January 10, 2007 Lease Expiration: December 31, 2021 (Tenant has agreed to this extension. Awaiyinh signed LMA). Renewal Options: Two 5 year options Rent Increases: 9.4% and 8% at renewals SUBWAY RENT SCHEDULE Term Dates Monthly Rent Annual Rent Current Term 1/10/07 to 12/31/21 $1, $13, Renewal Option 1 1/1/22 to 12/31/26 $1, $14, Renewal Option 2 1/1/27 to 12/31/31 $1, $15, Actual Location OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 9 OF 17

10 PIONEER OH DOLLAR GENERAL AREA HIGHLIGHTS & DEMOGRAPHICS 601 South State Street Pioneer, OH Cruisers Drive in Buckboard Bar & Grille Pizza Stop Amgos Pizza Four Season Family Restaurant Hutch s Kerrie Out Home Appliance Repair West Union Main Shop Klinger Pharmacy Jacoby s Ole Smokehouse Meats 2016 DEMOGRAPHICS (esri) 1 MILE Population 1,390 Households 594 Average Household Income $49,020 3 MILES Population Households Average Household Income Population Households Average Household Income 2,427 1,000 $52,677 5 MILES 4,193 1,681 $55, South State Street Pioneer, OH Wakeman DG Lagrenge DG OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 10 OF 17

11 EXCELLO OH DOLLAR GENERAL PROPERTY OVERVIEW PROPERTY & LEASE INFORMATION Subject Property: Single Tenant Property Location: 2380 South Main Street, Excello (Middletown), OH County: Butler Price: $795, Cap Rate: 7.5% Rentable SF: 9,014 SF Current Income: $59, Base Rent/SF/YR: $6.62 Year Built: 2006 Lot Size: 1.13 acres Type of Ownership: Fee simple Tenant Trade Name: Dollar General Tenant: Dolgen Midwest, LLC Lease Type: NN Landlord Responsibilities: Roof, structure & grounds CAM: Monthly parking lot maintenance payments by Tenant. Tenant responsible for snow removal. RE Taxes & Insurance: Tenant reimburses RE taxes (monthly payments made). Property is on Dollar General s National Insurance Program. Lease commencement: October 1, 2006 Lease Expiration: September 30, 2023 (extended with LMA #3) Renewal Options: Four 5 year options Rent Increases: 10% at renewals RENT SCHEDULE Term Dates Monthly Rent Annual Rent Annual CAM Current Term 10/1/06 to 9/30/16 $4, $59, $4, Current Term 10/1/16 to 9/30/23 $4, $59, $5, Renewal Option 1 10/1/23 to 9/30/28 $5, $65, $6, Renewal Option 2 10/1/28 to 9/30/33 $6, $72, $7, Renewal Option 3 10/1/33 to 9/30/38 $6, $79, $8, Renewal Option 4 10/1/38 to 9/30/43 $7, $87, $9, Actual Location OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 11 OF 17

12 EXCELLO OH DOLLAR GENERAL AREA HIGHLIGHTS & DEMOGRAPHICS 2380 South Main Street Excello (Middletown), 11,000 VPD 2016 DEMOGRAPHICS (esri) 1 MILE Population 4,204 Households 1,640 Average Household Income $36,973 3 MILES Population Households Average Household Income Population Households Average Household Income 41,636 15,823 $51,547 5 MILES 82,896 32,447 $57, South Main Street Excello, OH Cincinnati OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 12 OF 17

13 WAKEMAN OH DOLLAR GENERAL PROPERTY OVERVIEW PROPERTY & LEASE INFORMATION Subject Property: Single Tenant Property Location: 64 Hyde Street, Wakeman, OH County: Huron Price: $749, Cap Rate: 7.8% Rentable SF: 9,014 SF Current Income: $58, Base Rent/SF/YR: $6.49 Year Built: 2007 Lot Size: 1.17 acres Type of Ownership: Fee simple Tenant Trade Name: Dollar General Tenant: Dolgen Midwest, LLC Lease Type: NN Landlord Responsibilities: Roof, structure & grounds CAM: Monthly parking lot maintenance payments by Tenant. Tenant responsible for snow removal. RE Taxes & Insurance: Tenant reimburses RE taxes (monthly payments made). Property is on Dollar General s National Insurance Program. Lease commencement: January 9, 2007 Lease Expiration: January 31, 2024 (extended with LMA #3) Renewal Options: Four 5 year options Rent Increases: 12% at renewals RENT SCHEDULE Term Dates Monthly Rent Annual Rent Annual CAM Current Term 2/1/07 to 1/31/17 $4, $58, $4, Current Term 2/1/17 to 1/31/21 $4, $58, $5, Renewal Option 1 2/1/24 to 1/31/29 $5, $65, $6, Renewal Option 2 2/1/29 to 1/31/34 $6, $73, $7, Renewal Option 3 2/1/34 to 1/31/39 $6, $82, $8, Renewal Option 4 2/1/39 to 1/31/44 $7, $92, $9, Actual Location OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 13 OF 17

14 WAKEMAN OH DOLLAR GENERAL AREA HIGHLIGHTS & DEMOGRAPHICS 2016 DEMOGRAPHICS (esri) 1 MILE Population 1,151 Households 432 Average Household Income $60,894 3 MILES Population Households Average Household Income Population Households Average Household Income 64 Hyde Street Wakeman, OH 2,781 1,051 $63,424 5 MILES 6,425 2,412 $66,122 Pioneer DG 64 Hyde Street Wakeman, OH Lagrange Cleveland Lagrange DG OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 14 OF 17

15 ABOUT THE TENANTS DOLLAR GENERAL TENANT OVERVIEW Dollar General Corporation is the largest small box discount retailer in the U.S. by sales and number of locations. The Goodlettsville (Nashville), TN-based chain has over 12,719 stores in 43 U.S. states. Dollar General plans to continue it s growth by adding 900 stores in 2016 and 1,000 stores in Dollar General serves smaller communities that are too small for larger discount retailers. Approximately 70% of their stores serve communities of 20,000 or less population. They compete in the discount dollar store arena with national chains such as Family Dollar, Dollar Tree, regional chains such as Fred s in the southeast and numerous independent owned stores. Representative Photo The company is listed on the NYSE under the symbol DG. Dollar General is proud of its BBB Standard & Poors rating. WEBSITE SUBWAY TENANT OVERVIEW (PIONEER LOCATION) SUBWAY brand is the world s largest submarine sandwich chain with more than 44,000 locations around the world. Founded in 1965 by Fred DeLuca, who opened a sub shop to fund medical school, he changed course when the concept became an unplanned success. Joined by his friend, Dr. Peter Buck, they opened the first shop in Bridgeport CT and had a goal to open 32 stores in 10 years. By 1974, the duo owned 16 locations and realizing that they would not make their goal, they created a franchising opportunity that continues to be a great success. They are continually rated as the #1 franchise chain in the quick service restaurant industry. Their passion for serving fresh, delicious, made to order sandwiches is present today. Visit their website at WEBSITE Dollar General Historical Grown Chart (DG) Stock Growth Trajectory - Sep 2015 to Jul 2016 Sep 15 Jan 16 May 16 Jul 16 Representative Photo TENANT PROFILES OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 15 OF 17

16 BROKER PROFILES NANCY MILLER President, Net Lease Investment Group Nancy Miller joined Bull Realty in 2001 after being a client of the firm. Her brokerage practice focuses on income producing properties, primarily single and multitenant properties. She concentrates on national credit tenant investment properties. Nancy and the Net Lease Investment Group work with investors, developers and sellers of single tenant properties throughout the US. She is recognized as a savvy and knowledgeable retail net lease resource. Nancy publishes a quarterly investor newsletter, a monthly electronic newsletter, periodic retail industry surveys, and contributes to the Bull Realty retail blog. In addition, Nancy periodically appears on the Commercial Real Estate Show, a national weekly radio show hosted and produced in Atlanta by broker Michael Bull. Nancy has held a real estate license for over 25 years and is licensed in several states. She is a Life Member of the Atlanta Commercial Board of Realtors and a member of the International Council of Shopping Centers (ICSC). She holds the prestigious CCIM designation. She also holds a Bachelor of Arts degree from Tulane University and an MBA from Emory University s Goizueta Business School, where she is a guest lecturer. GINA LOW V.P., Net Lease Investment Group Gina Low s practice is focused on assisting clients with lease acquisition and disposition of sale lease back and single tenant net lease investment properties. Her attention to detail, dedication and diverse experience in the Commercial Real Estate industry are just a few factors that make Gina a key asset for clients. Ms. Low was raised in Northeast Atlanta where she played soft-ball, worked in her family s design business and spent time on Lake Lanier. She earned a Bachelor s degree in Business and Marketing from The University of North Georgia, where she was nominated by her peers to serve as Student Government Representative. Over the past 12 years, Gina has worked in multiple real estate sectors. She contributed directly to several National Development Groups in assistance with assemblage opportunities, site selection and resale of developed properties throughout Northeast Georgia. Gina also spent a portion of her career with a Texas-based Retail Firm facilitating new concept & national franchises in expansion to new markets. Additionally, she played a pivotal role in lease negotiations & renewals for Landlords of various sized shopping centers in the Dallas Metroplex. Nancy Miller, CCIM Gina Low President, Net Lease Investment Group V.P., Net Lease Investment Group x x 154 NMiller@BullRealty.com GLow@BullRealty.com PAGE 16 OF 17

17 CONFIDENTIALITY AGREEMENT This Confidentiality Agreement ( Agreement ) is made and agreed to for the benefit of the undersigned party ( Receiving Party ), the owner of the subject property (the Seller ) and undersigned broker Bull Realty Incorporated ( Broker ). Now therefore in consideration of the privileges granted to Receiving Party with respect to receiving certain confidential information, and other good and valuable consideration, the Receiving Party hereby agrees to the following: I. Confidential Information: Receiving Party will receive confidential information regarding property referred to as 2830 South Main Street, Exello, OH, 714 N Center Street, Lagrange, OH, 64 Hyde Street, Wakeman, OH and 601 State Street, Pioneer, OH. Prospect agrees to not disclose to any person that the property may be available for sale or lease, or that discussions or negotiations are taking place concerning the property, nor any terms, conditions, or other facts with respect to the property, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term person used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Receiving Party may share information with directors, officers, employees, agents, affiliates, counsel, lending sources, accountants or representatives of Receiving Party that Receiving Party notifies of the requirements of this Agreement. Receiving Party agrees to not contact the property owner, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site. II. Acting as a Principal: Receiving Party hereby warrants that it is acting as a principal only, and not as a broker, regarding this contemplated transaction. Receiving Party acknowledges that Broker is working an agency capacity as representing the Seller only in this transaction and is the only Broker involved in this potential transaction. Receiving Party agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in any other manner acquire an investment in, joint venture or control of the property, unless Bull Realty, Incorporated is paid a commission at closing as per separate agreement with Seller. This agreement will expire two years from the date hereof. III. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of Ohio. Accepted and agreed to this day of, 20. Receiving Party Signature Printed Name Title Company Name Address Phone Fax Nancy Miller President, Net Lease Investment Group x 118 NMiller@BullRealty.com Gina Low V.P., Net Lease Investment Group x 154 GLow@BullRealty.com Fax: Broker of Record: Christopher Smythe, OH License # Glenlake Parkway Suite 600 Atlanta, GA OHIO DOLLAR GENERAL PORTFOLIO Ohio PAGE 17 OF 17