SINGLE TENANT INVESTMENT OPPORTUNITY NORTH CAROLINA CONNELLY SPRINGS ACTUAL SITE

Transcription

1 SINGLE TENANT INVESTMENT OPPORTUNITY CONNELLY SPRINGS NORTH CAROLINA

2 EXCLUSIVELY MARKETED BY JIM SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No JOE SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No Broker of Record: Robby Petty - NC License No

3 TABLE OF CONTENTS 5 INVESTMENT SUMMARY OFFERING HIGHLIGHTS INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 12 AREA OVERVIEW DEMOGRAPHICS 14 FINANCIALS RENT ROLL BRAND PROFILE

4 INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in a Dollar General located in Connelly Springs, NC. Built in 2002, the lease has approximately 4.5 years remaining in the current term (second option period) with zero options to renew the lease. Dollar General has exercised both of its renewal options as per the lease agreement, at a 10% increase in rent. The lease is NN in nature with landlord responsibilities limited to roof, structure, parking lot, and HVAC. The Tenant is responsible for any repairs to the HVAC system costing less than one thousand dollars per occurrence. 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 along U.S. Highway 70 boasting traffic counts in excess of 9,000 vehicles per day. Connelly Springs is located 63 miles northwest of Charlotte, 65 miles east of Ashville, and 12 miles west of Hickory. The 5-mile trade area is supported by a population of more than 25,910 residents with an average household income of $51, INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP.

5 OFFERING HIGHLIGHTS OFFERING PRICING: $799,950 NET OPERATING INCOME: $70,080 CAP RATE: 8.75% GUARANTY: Corporate TENANT: Dollar General (S&P: BBB) LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof, Structure, Parking Lot*, & HVAC *Tenant Reimburses Up to $5,360 per Year for Parking Lot Maintenance. PROPERTY SPECIFICATIONS RENTABLE AREA: 8,000 SF LAND AREA: 2.56 Acres PROPERTY ADDRESS: 990 US-70, Connelly Springs, NC YEAR BUILT: 2002 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

6 INVESTMENT HIGHLIGHTS PROPERTY DETAILS: 4.5 Years Remaining on NN Lease Tenant Has Zero Options to Renew Lease Tenant Has Exercised All Renewal Options as Per the Original Lease Agreement at a 10% Increase in Rent Upgraded Construction Brick Veneer Facade Oversized Lot Totaling 2.56 Acres NN LEASE MINIMAL LANDLORD RESPONSIBILITIES: Landlord Responsibilities Limited to Roof, Structure, Parking Lot and HVAC Tenant Responsible for Any Repairs to the HVAC System Costing Less than $1,000 per Occurrence Tenant Provides Up to $5,360 per Year for Parking Lot Maintenance (Lighting, Cleaning, Snow Removal and Striping) In 2016, Tenant Added this Location to Its National Insurance Program (NIP) LOCATION Strategically Located on U.S. Highway 70, the Main Thoroughfare in Town, Boasting Traffic Counts in Excess of 9,000 VPD Connelly Springs is Located 63 Miles Northwest of Charlotte, 65 Miles East of Ashville, and 12 Miles West of Hickory The 5-Mile Trade Area is Supported by a Population of More Than 25,910 Residents with an Average Household Income of $51,445 TENANT: Strong Investment Grade Credit Tenant Dollar General is a Fortune 200 Company with a Market Cap of $22.41 Billion S&P Credit Rating (BBB) Only Dollar Store Retailer with an Investment Grade Credit Rating Long Term History of Same-Store Sales Growth 2017 Marked the Company s 28th Consecutive Year 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

7 PROPERTY OVERVIEW ACCESS U.S. Highway 70:... 1 Access Point TRAFFIC COUNTS U.S. Highway 70:... 9,000 VPD Interstate 40:... 42,000 VPD IMPROVEMENTS There is approximately 8,000 SF of existing building area. PARKING There are approximately 44 parking spaces on the owned parcel. The parking ratio is approximately 5.5 stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2002 Parcel Number:13308 Acres: 2.56 Square Feet: 111,514 SF ZONING N-B: Neighborhood Business 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP.

8 Shady Grove Road 9,000 CARS PER DAY 70 U.S. Highway Connelley Springs Fire Department Connelley Springs Town Hall

9 9,000 CARS PER DAY 70 U.S. Highway Shady Grove Road 42,000 CARS PER DAY Interstate 40

10 9,000 VPD PYLON SIGN OLD WYE TRAIL Connelley Springs Fire Department Connelley Springs Town Hall OLD 70 LOOP

11 CONNELLY SPRINGS 2017 ESTIMATED POPULATION 1 Mile... 1,248 3 Mile... 8,700 5 Mile... 25, AVERAGE HOUSEHOLD INCOME 1 Mile...$50,695 3 Mile...$53,009 5 Mile...$51, ESTIMATED TOTAL EMPLOYEES 1 Mile Mile... 3,200 5 Mile... 7,701 CHARLOTTE

12 AREA OVERVIEW Connelly Springs, North Carolina Connelly Springs is a town in Burke County, North Carolina, United States.It is part of the Hickory Lenoir Morganton Metropolitan Statistical Area.The Town of Connelly Springs had a population of 1,755 as of July 1, Connelly Springs ranks in the lower quartile for Diversity Index when compared to the other cities, towns and Census Designated Places (CDPs) in North Carolina. Connelly Springs is a small but ever growing town located in eastern Burke County between Hickory, NC to the East and Morganton, NC to the West. The natural beauty surrounding Burke County and the small community of Connelly Springs includes the South Mountains, The Blue Ridge Mountains of North Carolina, Table Rock, Lake James, and The Catawba River Valley. Burke County is a county located in the U.S. state of North Carolina. Its county seat is Morganton. Burke County is part of the Hickory Lenoir Morganton, NC Metropolitan Statistical Area. Population estimates on July 1, 2016 was 88, AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.

13 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 1,248 8,700 25, Projected Population 1,227 8,595 25, Census Population 1,275 8,894 26, Estimated Households 514 3,401 10, Projected Households 505 3,353 10, Census Households 524 3,479 10, Estimated White 91.70% 92.40% 92.00% 2017 Estimated Black or African American 1.00% 0.70% 1.10% 2017 Estimated Asian or Pacific Islander 4.30% 4.00% 3.60% 2017 Estimated American Indian or Native Alaskan 0.20% 0.10% 0.30% 2017 Estimated Other Races 1.60% 1.50% 1.60% 2017 Estimated Hispanic 3.10% 2.60% 3.10% 2017 Estimated Average Household Income $50,695 $53,009 $51, Estimated Median Household Income $34,366 $38,350 $37, Estimated Per Capita Income $20,432 $21,349 $20, Estimated Total Businesses Estimated Total Employees 177 3,200 7, AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.

14 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 8,000 11/16/2001 9/30/2022 Current - $5,840 $0.73 $70,080 $8.76 NN None (Corporate Guaranty) FINANCIAL INFORMATION Price:...$799,950 Net Operating Income:...$70,080 Cap Rate: % Lease Type:... NN PROPERTY SPECIFICATIONS Year Built: Rentable Area:... 8,000 SF Land Area: Acres Address: US-70, Connelly Springs, NC RENT ROLL SRS NATIONAL NET LEASE GROUP.

15 BRAND PROFILE DOLLAR GENERAL Dollar General Corporation is an American chain of variety stores, The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee. Dollar General Corporation has been delivering value to shoppers for over 75 years. Dollar General helps shoppers Save time. Save money. Dollar General operated 14,321 stores in 44 states as of November 3, 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. Company Type:...Public (NYSE: DG) 2017 Employees:...121, Revenue:...$21.99 Billion 2017 Net Income:...$1.25 Billion 2017 Assets:...$11.67 Billion 2017 Equity:...$5.41 Billion Ranking:... #128 in FORTUNE BRAND PROFILE SRS NATIONAL NET LEASE GROUP.

16 SRS GLOBAL STATS 800+ 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 National Net Lease Group (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.