SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY CHESHIRE MASSACHUSETTS
EXCLUSIVELY MARKETED BY JIM SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 M: 310.971.3892 Jim.Schuchert@srsre.com CA License No. 01969414 JOE SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 M: 310.971.3116 Joe.Schuchert@srsre.com CA License No. 01973172 MATTHEW MOUSAVI MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1116 M: 714.404.8849 Matthew.Mousavi@srsre.com CA License No. 01732226 PATRICK R. LUTHER, CCIM MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com CA License No. 01209944 Broker of Record: Jonathan Lapat - MA License No. 9059918
TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING SUMMARY INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 14 AREA OVERVIEW DEMOGRAPHICS 16 FINANCIALS RENT ROLL BRAND PROFILE
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 new construction Dollar General located in Cheshire, Massachusetts (Berkshire County). After more than two years of vocal opposition and a change of location, the Cheshire Planning Board approved the plans for a Dollar General on Route 8. Built in 2017, the lease has approximately 14 years remaining in the initial 15-year lease term with four (4) five (5) year option periods at 10% rental increase. The lease is absolute NNN in nature with ZERO management responsibilities as Dollar General is responsible for ALL operating expenses, insurance, and property taxes. The lease is guaranteed by Dollar General Corp (NYSE: DG) with an investment grade credit rating of BBB from Standard and Poor s. The subject property is strategically located in the heart of Cheshire on Route 8 boasting traffic counts in excess of 13,900 vehicles per day. Cheshire is located 53 miles northwest of Springfield MA, 82 miles north of Harford CT, and 135 miles west of Boston MA. Cheshire is located in the scenic Hoosic River Valley, where vast farmlands meet the Hoosic River at the state s highest peak. Cheshire Lake, the Ashuwillticook Rail Trail, the Appalachian Trail, Cheshire Cobbles, and thousands of acres of state reservation and wildlife management area provided outdoor enjoyment for all. The Appalachian Trail, stretching over 2,000 miles, is the longest hiking-only footpath in the world. Cheshire is one of a handful of communities in the Berkshires where the Appalachian Trail travels along town-owned roadways and passes in close proximity to the village center. The 7-mile trade area is supported by a population of 23,201 residents with an average household income of $71,343. 4 INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP.
OFFERING SUMMARY OFFERING PRICING: $1,892,015 NET OPERATING INCOME: $122,981 CAP RATE: 6.50% GUARANTY: Corporate TENANT: Dollar General LEASE TYPE: Absolute NNN LANDLORD RESPONSIBILITIES: None PROPERTY SPECIFICATIONS RENTABLE AREA: 9,100 SF LAND AREA: 1.49 Acres PROPERTY ADDRESS: 236 North Street, Cheshire, MA 01225 YEAR BUILT: 2017 PARCEL NUMBER: 112-041.1 OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.
INVESTMENT HIGHLIGHTS DOLLAR GENERAL CORPORATE GUARANTEED LEASE: Approximately 14 Years Remaining in the Initial 15 Year Lease Term New Build-to-Suit Dollar General 2017 Construction Four (4) Five (5) Year Option Periods with 10% Rental Increases A TRUE COUPON CLIPPER ABSOLUTE NNN LEASE ZERO MANAGEMENT RESPONSIBILITIES: Absolute NNN with ZERO Management Responsibilities Tenant Pays for ALL Operating Expenses, Insurance & Property Taxes Ideal, Management-Free Investment for an Out-of-State, Passive Investor HIGH BARRIER TO ENTRY MARKET: Rare Northeast Dollar General Offering After More than Two Years of Vocal Opposition and a Change of Location, Dollar General was Finally Approved for its Location on Route 8 At the Cheshire Planning Board Hearing on January 22, 2018 (Post Construction), Planning Board Members Remarked About the Many Positive Comments Received on the Completed Building of the Dollar General UPGRADED CONSTRUCTION RARE COLONIAL STYLE ARCHITECTURE: At the Request of the Cheshire Planning Commission, Building Architects Added Significant Visual Improvements to the Front of the Building the Building was Covered with a More Durable and Visually Appealing Material that Dollar General Does Not Usually Use CLAY-LIKE SOIL ON SUBJECT PROPERTY HARD TO BUILD ON & COSTLY TO DEVELOP ON: At a Cheshire Planning Commission Meeting, Building Engineer Stated The Soil on the Property is Clay-Like and Hard to Build On So Much of the Financial Resources are Already Allocated to Structural Needs. CLOSE PROXIMITY TO MAJOR CITIES: Springfield, Massachusetts 53 Miles 1 Hour, 18 Minute Drive Hartford, Connecticut 82 Miles 1 Hour, 42 Minute Drive Boston, Massachusetts 135 Miles 3 Hour Drive TRADE AREA DEMOGRAPHICS: 3-Mile - 3,207 Residents; $79,890 Average Household Income 5-Mile - 11,826 Residents; $72,636 Average Household Income 7-Mile - 23,201 Residents; $71,343 Average Household Income APPALACHIAN TRAIL THE LONGEST HIKING ONLY FOOTPATH IN THE WORLD: Stretches Over 2,000 Miles Along the East Coast from Springer Mountain in Georgia to Mt. Katahdin in Maine Completed in the 1930s and is Used by Hikers for Short-Day Hikes, Longer Multi- Day Hikes, or by Thru-Hikers who Compete the Trail in a Single Journey of Several Months The Trail Passes Through Cheshire Village and Travels Along Furnace Hill Rd., Main St./Church St. and School St. Cheshire is One of a Handful of Communities in the Berkshires where the Appalachian Trail Travels Along Town-Owned Roadways and Passes in Close Proximity to the Village Center TENANT: Dollar General (NYSE: DG) Features Investment Grade Credit BBB by S&P 14,609 Stores Located in 44 States as of March 2, 2018 Ranked #123 on the Fortune 500 List Up 5 Points From 128 Last Year (Dollar General Has Moved up the Fortune 500 Ranking for the 10th Consecutive Year) Long Term History of Same-Store Sales Growth 2017 Marked the Company s 27th Consecutive Year 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.
PROPERTY OVERVIEW ACCESS North Street/ State Highway 8:... 1 Access Point TRAFFIC COUNTS North Street/ State Highway 8:...11,400 Cars Per Day South Street/ State Highway 8:...16,600 Cars Per Day IMPROVEMENTS There is approximately 9,100 SF of existing building area. PARKING There are approximately 29 parking spaces on the owned parcel. The parking ratio is approximately 3.19 stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2017 Parcel Number: 112-041.1 Acres: 1.49 Square Feet: 64,967 SF ZONING B - General Business 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP.
PROPERTY PHOTOS
PROPERTY PHOTOS 9 PROPERTY PHOTOS SRS NATIONAL NET LEASE GROUP.
Appalachian Trail 11,400 CARS PER DAY Coolidge Rd. North St. / State Highway 8 Appalachian Trail
11,400 CARS PER DAY North St. / State Highway 8 W. Mountain Rd. State Highway 8 16,600 CARS PER DAY
D NOR T. S H T 11 VP 4, 00 PYLON SIGN
2018 ESTIMATED POPULATION 3 Mile... 3,207 5 Mile... 11,826 7 Mile... 23,201 2018 AVERAGE HOUSEHOLD INCOME 3 Mile...$79,890 5 Mile...$72,636 7 Mile...$71,343 ALBANY 40 Miles CHESHIRE 2018 ESTIMATED TOTAL EMPLOYEES 3 Mile... 656 5 Mile... 2,846 7 Mile... 6,990 53 Miles 135 Miles to Boston SPRINGFIELD 82 Miles HARTFORD
AREA OVERVIEW Cheshire, Massachusetts Cheshire was first settled in 1766 and incorporated in 1793. It is named after Cheshire County in England. The valley town was founded by Baptists from Rhode Island, the first settlers in the region who were not from the established Puritan Church. The land that makes up what is now Cheshire was known as Township 6 and was later divided into portions of the towns of Savoy, Adams, Lanesborough, and Cheshire. The township was six square miles and was originally granted by the General Court of the Province of Massachusetts to the heirs of Captain Samuel Gallop for their services and sufferings in an expedition to Canada in what was known as King William s War of 1688-97. After several sales and resales, early settlers Cook and Bennet bought the New Providence portion that would become the Town of Cheshire. The early colonists were primarily descendants of those who followed Roger Williams to Rhode Island to practice their Baptist religion freely. One of the group s leaders was Colonel Joab Stafford, who built his house on Stafford Hill and led the men of Cheshire into battle during the Revolutionary War. Troops from Cheshire distinguished themselves at the Battle of Bennington in 1777. An early historical note of wide renown is the Cheshire Cheese. Cheshire was the only Berkshire town that favored Jefferson in the election of 1800. When Jefferson won the election, the town looked to show their support for the new president. Because the town specialized in dairy production and cheese making (like the original Cheshire in England), they decided to send a gift to the president of a Cheshire Cheese that used milk from each farmer in town. The resulting cheese was 4 feet in diameter, 18 inches thick and weighed over 1,200 Lbs. The cheese was inscribed with Jefferson s motto: Rebellion to tyrants is obedience to God. It was transported on a horse-drawn sled to Washington, D.C. President Jefferson responded to the town with a personal letter of thanks. Today the cheese is commemorated by a memorial located along Church St. Industry in the early town included forges, mills, and tanneries. High quality sand beds in the area led to the creation of the Cheshire Crown Glass Company in the early 1800s. The calcareous (calcium containing bedrock) found in the area led to the creation of lime kilns and eventually the US Gypsum Company, which operated in Cheshire on the western shore of Cheshire Lake until 1960. The town s proximity to North Adams and Pittsfield made it a bedroom community for many of the workers at manufacturing facilities that developed during the early half of the 20th century. 14 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.
AREA DEMOGRAPHICS DEMOGRAPHICS 3 MILE 5 MILES 7 MILES 2018 Estimated Population 3,207 11,826 23,201 2023 Projected Population 3,187 11,595 22,736 2010 Census Population 3,125 12,008 23,682 2018 Estimated Households 1,387 5,271 10,140 2023 Projected Households 1,382 5,179 9,956 2010 Census Households 1,339 5,329 10,285 2018 Estimated White 97.56% 96.80% 95.88% 2018 Estimated Black or African American 0.65% 0.85% 1.45% 2018 Estimated Asian or Pacific Islander 0.50% 0.66% 0.94% 2018 Estimated American Indian or Native Alaskan 0.16% 0.14% 0.15% 2018 Estimated Other Races 0.31% 0.27% 0.49% 2018 Estimated Hispanic 1.59% 1.62% 1.90% 2018 Estimated Average Household Income $79,890 $72,636 $71,343 2018 Estimated Median Household Income $62,020 $51,751 $52,099 2018 Estimated Per Capita Income $34,903 $32,358 $31,612 2018 Estimated Total Businesses 76 352 789 2018 Estimated Total Employees 656 2,846 6,990 15 AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.
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 9,100 9/09/2015 6/30/2032 Current - $10,248 $1.13 $122,981 $13.51 Absolute NNN 4 (5-Year) (Corporate Guaranty) Opt 1: $134,479/Yr Opt 2: $147,127/Yr Opt 3: $161,040/Yr Opt 4: $176,344/Yr FINANCIAL INFORMATION PROPERTY SPECIFICATIONS Price:...$1,892,015 Net Operating Income:...$122,981 Cap Rate:...6.50% Lease Type:... Absolute NNN For financing options and loan quotes, please contact our SRS Debt & Equity team at debtequity-npb@srsre.com. Year Built:...2017 Rentable Area:... 9,100 SF Land Area:... 1.49 Acres Address:... 236 North Street, Cheshire, MA 01225 16 RENT ROLL SRS NATIONAL NET LEASE GROUP.
BRAND PROFILE DOLLAR GENERAL Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General operated 14,761 stores in 44 states as of May 4, 2018. It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred s in the Southeast, and numerous independently owned stores. 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. Dollar General Corporation was founded in 1939. Company Type:...Public (NYSE: DG) 2018 Employees:...129,000 2018 Revenue:...$23.47 Billion 2018 Net Income:...$1.54 Billion 2018 Assets:...$12.52 Million 2018 Equity:...$6.13 Million Credit Rating:... S&P: BBB Credit Rating:... Moody s: Baa2 17 BRAND PROFILE SRS NATIONAL NET LEASE GROUP.
SRS GLOBAL STATS 1000+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR 2017. 250+ 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.