1500 BEAR MOUNTAIN BLVD. ARVIN, CA 93203

Transcription

1 1500 BEAR MOUNTAIN BLVD. ARVIN, CA EXCLUSIVELY LISTED BY 1 High-Quality, Single-Tenant, Net-Leased Dollar General in Arvin CA. Built in 2015, It is a Unique Opportunity for an Investor to Acquire a Well-Located, Investment-Grade, Credit-Tenant Asset in a Desirable California Geography.

2 N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, 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. DOLLAR GENERAL Arvin, CA ACT ID Y

3 N E T L E A S E D D I S C L A I M E R 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.

4 1500 BEAR MOUNTAIN BLVD. ARVIN, CA SECTION 1: INVESTMENT OVERVIEW SECTION 2: MAPS & AERIALS SECTION 3: RECENT SALES EXCLUSIVELY LISTED BY 4

5 Dollar General INVESTMENT OVERVIEW The Offering Subject property is 9,026-square foot Dollar General located in Arvin, CA. This is an Absolute Net Lease with a corporate guarantee and no landlord responsibilities. This investment offers a long term stability of Dollar General Corporate Guarantee with attractive returns (above 6 percent Cap rate). The lease features a ten percent (10%) increase for each of the three 5-year options periods. Dollar General (NYSE:DG) is a publicly traded company with a current BBB investment grade credit rating by Standard & Poor s that operates over 12,483 stores across 43 states. Overview Price $2,465,000 Gross Leasable Area Approximately 9,026 SF Lot Size 1.38 Acres +/- Year Built 2015 Net Operating Income $148,574 Cap Rate 6.03% Lease Summary Tenant Dolgen California, LLC Initial Lease Term 15 Years Guarantor Dollar General Corporation Lease Type Absolute Net Roof & Structure Responsibility Tenant Responsible Rent Commencement Date January 10 th 2015 Expiration Date January 31 st 2030 Remaining Lease Term Approximately 12.5 Years Increases 10% at Each Option Renewal Options Three 5-Year Annualized Operating Data Lease Term Current January 31 st 2030 Annual Rent $148,574 Options 1-3 (5 Years Each) 10% Increase at Each Option Base Rent /SF $16.46 Guarantor Profile Guarantor Name Dollar General Corporation Ownership Public Sales Volume $20.37 Billion Net Worth $5.38 Billion Stock Symbol (NYSE) Stock Symbol (NYSE) Credit Rating (S&P) BBB Number of Locations 12,483 Headquarters Goodlettsville, TN Website CLOSE PROXIMITY TO: Dollar General operates a chain of over 12,483 discount stores in about 43 states as of March 23, 2016, primarily in the Southern and Eastern US, the Midwest, and the Southwest. The company offers basic household supplies including cleaning supplies, health and beauty aids, food and apparel. Most on f the merchandise which is carried in the Dollar General stores is priced between $1 and $35. 5

6 Dollar General INVESTMENT OVERVIEW LOCATION OVERVIEW Nestled against Bear Mountain, the city of Arvin depicts a small town atmosphere that is driven by its agricultural community. Arvin is located in Kern County about 15 miles southeast of Bakersfield, California and 86 miles northwest of Los Angeles. The city is part of the Bakersfield Metropolitan Statistical Area with a population of about 16,200. Quiet residential areas, clean streets, low crime rate, a first class fire station and a well kept City Hall, all add to Arvin s appeal and livability. In addition the city boasts a Department of Motor Vehicles office, a Veteran s Hall for community gatherings, and a library which houses a wonderful collection of local art by artist Roberta Jean Owens. Poised to expand and develop, Arvin is primarily an agricultural-based economy with a growing manufacturing presence. Strong leadership in the community for water rights and water supply over the years has set the stage for the growth and vitality of the agricultural industry. Just to the east of Arvin, the Arvin Edison Canal ends a fluid journey from the high Sierras mid-state to percolation ponds which continually recharge the underground aquifers. Water is then pumped when needed for irrigation of the many crops. Investment Highlights Built in Absolute Net Lease (Zero Landlord Responsibilities) Long Term Corporate Guaranteed and Strong National Tenant. Dollar General (NYSE: DG) with Investment Grade Credit Rating "BBB" by Standard & Poor's and Annual Revenue Exceeding $20.37 Billion. Arvin is Located in Kern County, about 15 Miles Southeast of Bakersfield, California and 86 Miles Northwest of Los Angeles. Arvin is Part of the Bakersfield Metropolitan Statistical Area. Across the Road From Kern Transit Lines 140 and 142. In Close Proximity to Villa Del Comanche Apartments, Walnut Apartments, Arvin Apartments, Arvin High School and Grimmway Academy. Features Excellent Visibility, and Dual Access from Bear Mountain Boulevard and North Comanche Drive. Along the railroad tracks from the many packing houses, fresh fruits and vegetables are shipped world wide. Well known names such as Grimmway carrots, Gold Ribbon potatoes, and in the old days Di Giorgio grapes, peaches, and plums were and are often seen in markets all across America. In the case of Grimmway Farms, it is the largest producer of carrots in the world. CLOSE PROXIMITY TO: Dollar General operates a chain of over 12,483 discount stores in about 43 states as of March 23, 2016, primarily in the Southern and Eastern US, the Midwest, and the Southwest. The company offers basic household supplies including cleaning supplies, health and beauty aids, food and apparel. Most on f the merchandise which is carried in the Dollar General stores is priced between $1 and $35. 6

7 Dollar General INVESTMENT OVERVIEW Dollar General Corporation CREDIT RATING: B1 May 05, 2017 Address General Information Phone Website 100 Mission Ridge, Goodlettsville, Tennessee, 37072, United States Chairman Chief Merchandising Officer Chief Financial Officer & Executive Vice President Executive Vice President Key Personnel Michael M Calbert Jason Reiser John W. Garratt Jason Reiser Store Base Store Count 13,601 TTM Sales $22,330,791,000 Financial Markets Stock Ticker DG Current Price $72.54 as of 9/3/17 52 Week High/Low $80.67 / $65.97 Dollar General commands the field of discount general merchandise. The fastgrowing retailer boasts more than 13,000 discount stores in some 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 76% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 12% from seasonal items. The stores also offer household products (cleaning supplies and health and beauty aids) and apparel. Dollar General targets low-, middle-, and fixed-income shoppers pricing items at $10 or less (and 25% of items at or under $1. The no-frills stores typically measure about 7,400 sq. ft. and are located in small towns that are off the radar of giant discounters. Fiscal Year Ended February 03,

8 1500 BEAR MOUNTAIN BLVD. ARVIN, CA SECTION 1: INVESTMENT OVERVIEW SECTION 2: MAPS & AERIALS SECTION 3: RECENT SALES EXCLUSIVELY LISTED BY 8 8

9 Dollar General LOCAL MAP Collection Street Cross Street Cross St Dist/Dir Traffic Volume Count Year Dist from Subject N Comanche Dr S Comanche Dr 0.08 S 10, S Comanche Dr Shane Ct 0.04 S 8, Bear Mountain Blvd Walnut Dr 0.05 E 10, N Comanche Dr Packard Dr 0.11 S 7, Bear Mountain Blvd S Hill St 0.01 W 10, Bear Mountain Blvd N Rancho Dr 0.15 E 5, Bear Mountain Blvd B St 0.04 E 12, Bear Mountain Blvd C St 0.05 W 10, N Derby St S Derby St 0.03 S 5, Franklin St Stockton Ave 0.02 E 1, # 9

10 Dollar General PROPERTY NAME REGIONAL MAP Click to play aerial video # 10

11 . Dollar General BAKERSFEILD BAKERSFIELD OVERVIEW The Bakersfield metro lies near the southern end of the San Joaquin Valley and encompasses all of Kern County. The Kern River flows through the region, which includes parts of three mountain ranges that limit development: the Sierra Nevadas to the east, the Tehachapis to the south and the Tremblor to the west. The city of Bakersfield, which is the county seat, is located at the foot of the Greenhorn Mountain Range and contains roughly 368,900 residents. METRO HIGHLIGHTS CENTRAL CALIFORNIA LOCATION An expanding transportation network provides convenient access to California ports, major cities and recreation areas. NATURAL RESOURCES Kern County is one of the most oil productive counties in the nation and the Elk Hills field is the state s top natural-gas producer. LOW COST OF LIVING AND DOING BUSINESS Favorable home prices, relatively lower land costs than nearby markets and a pro-business environment attract employers and residents to the area. ECONOMY Agriculture still accounts for a major portion of the local economy with the presence of companies that include Giumarra Cos., Grimmway Farms and Bolthouse Farms. Oil and natural gas deposits attract companies such as Aera Energy, Chevron, Ensign United States Drilling, and Pacific Gas and Electric to the metro. The alternative-energy sector is growing; the largest wind farm and solar array in the state are located here. The metro also has a strong aviation, space and military presence. Edwards Air Force Base, Halliburton and the China Lake Naval Air Weapons Station are all located here. DEMOGRAPHICS 2016 POPULATION: 887K Growth *: 7.4% 2016 HOUSEHOLDS: 273K Growth *: 7.6% 2016 MEDIAN AGE: 31.1 U.S. Median: MEDIAN HOUSEHOLD INCOME: $48,400 U.S. Median: $57,200 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 11

12 1500 BEAR MOUNTAIN BLVD. ARVIN, CA SECTION 1: INVESTMENT OVERVIEW SECTION 2: MAPS & AERIALS SECTION 3: RECENT SALES EXCLUSIVELY LISTED BY 12

13 Dollar General COMPARABLE SALES Dollar General Pioneer Dollar General Frazier Park Dollar General Valley Springs Dollar General Etna Dollar General Calipatria Dollar General Modesto Average Cap Rate Avg. 6.05% Dollar General Arvin Dollar General Pioneer Dollar General Frazier Park Dollar General Valley Springs Dollar General Etna Dollar General Calipatria Dollar Genral Modesto 13 13

14 COMPARABLE SALES DOLLAR GENERAL PIONEER Meadow Vista Dr, Pioneer, CA, DOLLAR GENERAL FRAZIER PARK 3521 Mt Pinos Way, Frazier Park, CA, DOLLAR GENERAL VALLEY SPRINGS 116 Riley Way, Valley Springs, CA, Close Of Escrow 2/23/2017 Sales Price $2,757,600 Price/SF $ rentpropertyname1 CAP Rate 6.00% GLA 9,100 SF Lot Size 3.86 acre(s) Year Built 2017 Close Of Escrow 4/28/2017 Sales Price $2,643,678 Price/SF $ rentpropertyname1 CAP Rate 6.10% GLA 9,026 SF Lot Size 0.87 acre(s) Year Built 2017 Close Of Escrow 4/4/2017 Sales Price $2,425,000 Price/SF $ rentpropertyname1 CAP Rate 6.10% GLA 9,002 SF Lot Size 1.35 acre(s) Year Built 2017 DOLLAR GENERAL ETNA 15 Telco Way, Etna, CA, DOLLAR GENERAL CALIPATRIA 701 N Sorenson Ave, Calipatria, CA, DOLLAR GENERAL MODESTO Kansas Ave, Modesto, CA, rentpropertyaddress1 Close Of Escrow 12/13/2016 Sales Price $1,870,000 Price/SF $ CAP Rate 6.03% GLA 9,100 SF Lot Size 1.50 acre(s) Year Built 2016 rentpropertyaddress1 Close Of Escrow 11/4/2016 Sales Price $2,199,000 Price/SF $ CAP Rate 6.08% GLA 9,100 SF Lot Size 1.43 acre(s) Year Built 2016 rentpropertyaddress1 Close Of Escrow 1/26/2017 Sales Price $2,443,000 Price/SF $ CAP Rate 6.00% GLA 9,100 SF Year Built

15 1500 BEAR MOUNTAIN BLVD. ARVIN, CA Presented By Harris K. Niazi License: OR Tel: (503) Fax: (503) Nicholas Bushong License: OR Tel: (503) Fax: (503) James Markel License: CA Ventura Boulevard Suite 100 Encino, CA Broker Of Record Encino, CA Tel: Fax: EXCLUSIVELY LISTED BY