DOLLAR GENERAL INVESTMENT OPPORTUNITY

Transcription

1 DOLLAR GENERAL INVESTMENT OPPORTUNITY 11% CAP RATE PRICE: $796, OLD CAPITOL SHOPPING CENTER VANDALIA, ILLINOIS ALMOST YEARS TERM REMAIN ON LEASE MORE THAN 20 YEARS IN THIS LOCATION STABLE DEMOGRAPHICS ADDITIONAL INCOME FROM SMALL STORE RENTAL FOR MORE INFORMATION, CONTACT: BRAD BOWMAN, CCIM FIRST FEDERAL PROPERTIES, INC Bethel Church Road #202, Cornelius, NC (704) Fax: (704) brad@firstfederalproperties.com NOTE: The information contained herein is based on sources deemed reliable, but is not guaranteed. Any description of investment returns is an estimate only and is not guaranteed. Investors should consult their own financial advisor and be aware of and willing to bear the risks of any investment decision it makes without reliance upon this Summary. 1

2 OVERVIEW/SUMMARY This is an opportunity to invest in a property leased to Dollar General for more than 20 years. LOCATION: Corner of 3 rd Street and Gallatin in Vandalia, Illinois. This is the crossroads of US Highway 40 and US Highway 51. It is the eastern part of the old downtown. Vandalia is a small agricultural based town in southern Illinois off Interstate 70, approx. an hour east of St Louis, MO. The county seat of Fayette County, Vandalia s most notable for being the place where President Lincoln started his political career, speaking in the original Illinois Statehouse, just across the street from this property. DEMOGRAPHICS: See attached demographic reports. Here are highlights: - 12,478 people live within 15 minute drive time - Median household income is $46,355 within 15 minute drive time - Average household income is $59,016 within 15 minute drive time PROPERTY: The property is part of a larger shopping center known as Old Capital Center. The buildings were constructed in The condition is good to fair. The center was subdivided in December, 2016, which created a separate parcel for the Dollar General and small shop. The original tenants included Kroger, Hooks Drugs, Illinois Drivers License office, First National Bank, and a liquor store. Kroger vacated 17,000 SF in 1996 and the space has not been re-rented. Dollar General subleased from Hooks Drugs and has occupied its space since The Drivers License Office is still operating. THIS OFFERING IS FOR THE DOLLAR GENERAL PORTION ONLY. Other portions of the center may be available. Consult broker for details. Capital Expenditures include: - New roof in June, Major repairs to HVAC in March, 2014 LEASE HISTORY: Dollar General originally occupied this property under a sublease with Hooks Drug Store in When the Hooks lease expired in 1999, Dollar General executed a lease directly with the owner. Subsequently, the lease has been extended 4 times. The latest amendment extended the term to January 31, 2023, and gives Dollar General one free month (no rent) in December, This demonstrates a strong trade area and suggests this store is very profitable for Dollar General. STORE SALES ARE NOT AVAILABLE, NOR IS DG OBLIGATED TO PROVIDE. ADDITIONAL INCOME: Included in this offering is approx. 4,000 square foot shop currently rented month to month as a consignment shop. The rent is not paid timely and often a month s rent is not paid at all. The monthly rent is $500, or $6,000 per year. In 2016, 7 months rent was collected ($3500). In 2017, only two months rent was collected. On the below analysis, no rent is included for the space. This gives a new owner possible upside if the space is re-rented to a tenant who pays. 2

3 INCOME AND EXPENSES: The owner s records have income and expenses for the entire center for more than 10 years. The following projected income and expense for 2018 is based on actual 2017 numbers allocating the expenses to the Dollar General portion of the center: INCOME PROJECTED 2018 Dollar General Rent $95, Rench (Small shop) $-0- DG Tax Reimb $6, DG Insurance Reimb $2, DG CAM Reimb $1, TOTAL INCOME: $106, EXPENSE Fees and Filings Property Management 5% $5, Building Maintenance $3, CAM-Landscape $ CAM-Parking Lot $ Insurance $2, Property Taxes $6, TOTAL EXPENSES: $18, NET OPERATING INCOME $87, DOCUMENTS AVAILABLE FOR REVIEW: The following documents are available for review: 1. Lease and Modifications 2. Income and Expenses 3. Plat Map 4. Demographics FOR MORE INFORMATION, CONTACT: BRAD BOWMAN, CCIM First Federal Properties, Inc Bethel Church Road #202 Cornelius, NC Brad@FirstFederalProperties.com ***PLEASE NOTE THAT ALL FINANCIAL DATA AND PROJECTED RETURNS ARE ESTIMATES ONLY AND NOT GUARANTEED BY BROKER AND/OR OWNERS. THE PERFORMANCE OF THE INVESTMENT IS PREDICATED ON A NUMBER OF VARIABLES. ALL PROSPECTIVE INVESTORS SHOULD MAKE THEIR OWN DETERMINATION AS TO WHETHER THIS INVESTMENT IS SUITABLE FOR THEIR GOALS AND RISK LEVEL. 3

4 REGIONAL MAP AREA MAP 4

5 OLD CAPITOL CENTER VANDALIA, ILLINOIS SITE PLAN 5

6 OLD CAPITOL CENTER PLAT MAP 6