REPRESENTATIVE PHOTO DOWNTOWN METRO PHOENIX DOLLAR GENERAL COMCAST & BANNER HEALTHCARE

Transcription

1 REPRESENTATIVE PHOTO DOWNTOWN METRO PHOENIX DOLLAR GENERAL COMCAST & BANNER HEALTHCARE TUCSON, PHOENIX, AZ

2 Overview REPRESENTATIVE PHOTO DOLLAR GENERAL 520 N 35TH AVE, PHOENIX, AZ $2,116,000 PRICE 5.75% CAP LEASEABLE SF 7,500 SF LEASE TERMS 15 Years LAND AREA 0.73 Acres YEAR BUILT 2018 (Under Construction) LEASE TYPE Absolute NNN PARKING 26 Spaces New 15-year Absolute NNN lease with three 5-year options Corporate Guaranty from investment grade company New urban Dollar General prototype (features beer & wine, grab & go items, smaller footprint) Just off I-10 with traffic counts of 253,500+ Phoenix MSA - over 4.66 Million population This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 2

3 Investment Highlights THE OFFERING provides an opportunity to acquire a new construction Absolute NNN Dollar General in Phoenix, AZ. The 15-year lease term includes a corporate guaranty, and three 5-year extension options, with rental increases at the start of each option period. The subject property is located just off of Van Buren Street, which sees traffic counts of 29,348 vehicles per day, and is easily accessible from Interstate 10, which benefits from traffic counts in excess of 253,500 vehicles per day. This store is one of Dollar General s new urban prototypes, which features beer and wine, has a Grab & Go section of snacks, beverages and fresh foods, and has a smaller footprint than the more rural locations. With a population exceeding 383,000 within a 5-mile radius, Dollar General benefits from a more densely-populated area than what other locations are accustomed to. Contact the team JOHN ANDREINI jandreini@capitalpacific.com PH: CA BRE# DOLLAR GENERAL generated $23.5 billion in sales in fiscal 2017 and in excess of $1.54 billion in net income. Dollar General currently operates over 14,609 stores in 44 states, making it the country s largest small-box discount retailer. The company has an S&P rating of BBB, which has been raised five times since 2009, and is a better credit rating than its main competitors. REPRESENTATIVE PHOTO DOLLAR GENERAL IS THE COUNTRY S LARGEST SMALL-BOX DISCOUNT RETAILER This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3

4 Zoomed-Out Aerial 51 PHOENIX COLLEGE N 35TH AVENUE HIGH , ,522 HIGH BANNER UNIVERSITY MEDICAL CENTER PHOENIX INTEGRATED HEALTH SYSTEM ELEMENTARY ELEMENTARY N 35TH AVENUE S 35TH AVENUE PHOENIX CHILDREN S HOSPITAL GOLF COURSE ELEMENTARY 38,493 GOLF COURSE HIGH MIDDLE MIDDLE ST. JOSEPH HOSPITAL AND MEDICAL CENTER 167,000 DOWNTOWN THE PHOENIX UNIVERSITY OF ST. LUKES MEDICAL CENTER ARIZONA COLLEGE OF MEDICINE ARIZONA STATE PREPARATORY ACADEMY ARIZONA STATE UNIVERSITY MERCADO ARIZONA STATE UNIVERSITY DOWNTOWN PHOENIX STATE OF ARIZONA ELEMENTARY , PHOENIX SKY HARBOR INTERNATIONAL AIRPORT ELEMENTARY ELEMENTARY STATE OF ARIZONA MARICOPA COUNTY MARICOPA COUNTY MARICOPA COUNTY This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies ,

5 Income & Expense REPRESENTATIVE PHOTO PRICE $2,116,000 Capitalization Rate: 5.75% Building Size (SF):* 7,500 Lot Size (SF): 0.73 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $16.22 $121,644 Effective Gross Income $16.22 $121,644 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $121,644 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5

6 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT NAME SQ. FT. CURRENT RENT MONTHLY RENT YEARLY RENT MONTHLY RENT/FT YEARLY RENT/FT Dollar General 7, $121,644 $10,137 $121,644 $1.35 $16.22 Option $11,151 $133,812 $1.49 $17.84 Option $12,266 $147,192 $1.64 $19.63 Option $13,493 $161,916 $1.80 $21.59 TOTALS: 7,500 $121,644 $10,137 $121,644 $1.35 $16.22 The subject property is currently under construction* This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6

7 Lease Abstract PREMISE & TERM TENANT GUARANTOR BUILDING SF LEASE TYPE TERM OPTIONS RENT BASE RENT Dollar General Dollar General Corporation 7,500 SF Absolute NNN 15 Years Three 5-year Options DATE RANGE MONTHLY RENT ANNUAL RENT 1-15 $10,137 $121,644 OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $11,151 $133,812 # $12,266 $147,192 # $13,493 $161,916 EXPENSES LEASE PROVISIONS TAXES Tenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property. TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural and nonstructural repairs and replacement. LANDLORD S OBLIGATIONS Zero expense obligations. INSURANCE Tenant shall maintain the following insurance policies: (1) Commercial general liability insurance with a combined single limit no less than $1 million per occurrence and $2 million in aggregate; and (2) a special cause of loss policy insuring all improvements on the Premises. Landlord shall be named as additional insured. UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. ESTOPPELS Tenant shall deliver an executed Estoppel to Landlord within 20 business days of receipt of written notice. Landlord shall pay Tenant $500 for administrative costs associated with each request. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7

8 Site Plan N 35TH AVENUE 7,500 RENTABLE SF 0.73 ACRES 26 SPACES W TAYLOR STREET HIGH N 35TH AVENUE 38,493 W TAYLOR STREET 29,348 W VAN BUREN STREET This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8

9 Tenant Overview ABOUT DOLLAR GENERAL Dollar General (NYSE: DG) is a chain of more than 14,600 discount stores in 44 states, primarily in the South, East, Midwest, and Southwest. Offering basic household items, such as cleaning supplies, health and beauty aids, apparel, and food, it targets low, middle, and fixed-income shoppers. The company has grown into the country s largest smallbox discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than any other retailer and is easily the largest dollar store chain. 14,600+ LOCATIONS IN 44 STATES INVESTMENT GRADE CREDIT Dollar General s credit is BBB and the company s credit rating has been raised five times since 2009, most recently in October, Dollar General has a better credit rating than both of its large competitors. REPRESENTATIVE PHOTO This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. $23.5B 2017 SALES 9

10 Dollar General Rolls Out Urban Prototype DOLLAR GENERAL HAS RECENTLY INTRODUCED to the market an urban prototype, which will be featured in more densely populated areas, and is slightly smaller in size than the traditional stores found in more rural settings. This new store concept takes the convenience store approach, featuring a Grab & Go section with snacks and perishable items, as well as self-checkout kiosks and other convenience items. With a more modern interior layout, and easy-to-shop format, the urban prototype caters to consumers living in a metro area who are more likely to be on the go. This site information plan is a rendering has been that secured has been from created sources based we believe on sources to be we reliable believe but to be we reliable. make no We representations make no or representations warranties, expressed or warranties, or implied, expressed as to the or accuracy implied, of as the to the information. accuracy of Buyer the information. must verify the Buyer information must verify and bears the all risk information any inaccuracies. and bears all risk for any inaccuracies.

11 In the News DOLLAR GENERAL PROFITS FROM A SHRINKING MIDDLE CLASS; IT S CHEAP, AMAZON-PROOF, AND ADDING STORES January 12, 2018 (Philly) Even the sign for Dollar General is no frills: black letters on a yellow backdrop. Bare bones just like the stores aisles. Retail analysts say consumers thrifty attitude from the 2008 recession has remained, propelling value dollar stores like Dollar General to expand like crazy. But there s another reason for the boom times of dollar stores. Dollar stores core customers are lower-income consumers, which have been unfortunately growing, said Ken Perkins, president at Retail Metrics Inc. He noted that the American middle class has been shrinking for decades. The Pew Research Center found that 50 percent of the adult population in 2015 was middle class, down from 61 percent in Perkins firm found that the middle class had decreased in 203 of 229 metropolitan areas from 2000 to The trend has helped make dollar stores one of only five retail sectors projected to have operating income growth above 5 percent this year, a Moody s report found. (The others are online retailers, off-price, home improvement, and supermarkets.) Leading growth in the sector has been Dollar General, which offers an array of items from food to general merchandise, typically at $5 or less. The retailer operates about 14,600 stores nationally, including 35 in the Philadelphia region, according to its website. Longer term, it wants to reach 25,000 stores over the next decade. Dollar General plans to open 900 stores this year, remodel 1,000 existing locations, and relocate about 100 stores, said chief executive officer Todd Vasos during a third-quarter earnings call. READ THE FULL ARTICLE REPRESENTATIVE PHOTO This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies

12 Demographics POPULATION 1-MILE 3-MILES 5-MILES , , , , , , , , , HH INCOME 1-MILE 3-MILES 5-MILES Average $44,916 $44,455 $49,830 DOWNTOWN PHOENIX (3 MILES) SCOTTSDALE (15 MILES) TOP EMPLOYERS EMPLOYER # OF EMPLOYEES State of Arizona 49,800 Wal-Mart Stores, Inc. 30,634 Banner Health 24,825 City of Phoenix 15,100 Wells Fargo 13,308 THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $49K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12

13 Location Overview PHOENIX, ARIZONA PHOENIX, also known as the Valley of the Sun, is the state capital and largest city in Arizona. It is the economic hub of the state, and a major tourism and recreation destination. The city has a robust arts scene, many museums, over 200 golf courses, a zoo, botanical garden, hundreds of annual events and so much more. In 2016, Phoenix hosted nearly 18.2 million visitors, including more than 1.4 million international visitors. Estimated direct spending contributes over $3.3 billion to the local economy and impacts over 52,000 jobs in Phoenix. Phoenix proper has a population of 1.6 million and is the fifth largest city in the U.S. The Phoenix metro is the 14th largest metro area by population in the U.S., with approximately 4.6 million people. The Census Bureau estimates that by 2030 the population of the metro area will reach 6.3 million. ABOUT PHOENIX METRO AREA 4,661,537 PHOENIX MSA POPULATION (ESTIMATED) PHOENIX METRO AREA includes over 35 incorporated and 50 unincorporated towns and cities. The city has become a hub for construction, high-tech manufacturing, healthcare and tourism. The city claims five Fortune 500 headquarters, including Freeport-McMoRan, Republic Services, Insight Enterprises, Avnet and PetSmart. The local economy has seen continued growth since the 2008 recession, with retail sales over 8 percent this year and hotel occupancy levels rising. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13

14 REPRESENTATIVE PHOTO