New Dollar General 7% cap the only investment grade dollar store chain ONE OF THE MOST ATTRACTIVE DOLLAR GENERAL CAP RATES OFFERED IN TODAY S MARKET Rental Increase in Base Term Brand new construction corporate guarantee 1017 Pine St, Cawker City, KS 67430 For more info on this opportunity please contact: Rick Sanner rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Bob Sanner bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 Chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. In conjuction with KS Licensed Broker: Phil Bundy bundydevelopment@cox.net (316) 686-9292
New Dollar General Located in Cawker City, KS This property features one of the highest cap rates for new Dollar Generals offered in the current market. Investment Highlights Representative Photos PRICE: $1,038,000 CAP: 7.00% RENTABLE SF... 9,100 SF LOT SIZE... 1.65 AC Year Built... November 2015 LEASE type... NNN INVESTMENT GRADE credit Dollar General s credit is BBB- and the company s credit rating has been raised four times since 2009. Dollar General has a better credit rating than both of its large competitors (more information later in this offering) STRONG TENANT During fiscal 2014, Dollar General opened about 700 new stores and plans to open about 700 in fiscal 2015 Dollar General has more stores (11,700+) than any other dollar store in the country and is the country s largest dollar store chain In the 5+ years since going public in late 2009, the Dollar General stock price has more than tripled (from $23 to $80) Lease This is a standard NNN Dollar General lease guaranteed by the parent company This lease has a rent increase in the base term, as well as in the options dollar general 2 Dollar General 2
Income & Expense PRICE $1,038,000 Capitalization Rate: 7.00% Total Rentable Area (SF): 9,100 Lot Size (Acres): 1.65 Year Built: 2015 STABILIZED INCOME Per Square Foot Scheduled Rent $7.98 $72,636 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $72,636 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. The store will open in late November and a sale transaction can close in December Representative Photo dollar general 3
BOCK S GARDEN CENTER Lakeside Middle School 6th Street Lakeside Jr. High School LAKESIDE LIQUOR WINKEL BODY SHOP BOB S INC. FUEL 24 9 24 9 WACONDA FLORAL CAWKER CITY LIBRARY & CITY LAKESIDE LODGE AL S BAR& GRILL OFFICES Redwood Street Maple Street Lake Drive Holly Street dollar general 4
Site Plan 24 Wisconson Street LIGHTED SIGN Redwood Street dollar general 5
Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Yearly Rent Monthly Rent Monthly Rent/FT Yearly Rent/FT Dollar General 9,100 11/19/2015 11/18/2025 $72,636 $72,636 $6,053 $0.67 $7.98 11/19/2025 11/18/2030 $74,820 $6,235 $0.69 $8.22 Option 1 11/19/2030 11/18/2035 $82,296 $6,858 $0.75 $9.04 Option 2 11/19/2035 11/18/2040 $90,528 $7,544 $0.83 $9.95 Option 3 11/19/2040 11/18/2045 $99,576 $8,298 $0.91 $10.94 Option 4 11/19/2045 11/18/2050 $109,536 $9,128 $1.00 $12.04 Current Totals: 9,100 $72,636 $72,636 $6,053 $0.67 $7.98 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. dollar general 6
Dollar General Representative Photo dollar general is the country s largest small-box discount retailer About Dollar General Dollar General (NYSE: DG) is a chain of more than 11,700 discount stores in 43 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. Although it has the word dollar in its name, Dollar General is not solely a dollar store. Dollar General offers goods sold at set price points ranging from under a dollar to $60. Some of its higher end items include over-the-counter medicines, seasonal products, pet products, prepaid cell phones and accessories, and automotive supplies. The company has grown into the country s largest small-box 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. The company ranks 175th within the Fortune 500 list. Fiscal 2014 revenues exceeded $18.9 billion with a net income of $1.07 billion, and net worth of $5.7 billion COMPANY TYPE: PUBLIC (NYSE: DG) 2014 SALES $18.9 BILLION S&P 500 CREDIT RATING BBB- (See next page) 2014 FORTUNE 500 #164 NUMBER OF STORES 11,700+ dollar general 7
Dollar General Credit Rating The three largest dollar store chains, ranked by 2014 revenue, are: 1 2 Dollar general Family Dollar About the strong Dollar General credit rating In July, 2015, Family Dollar was acquired by Dollar Tree and ceased to be a public company. Dollar Tree took on billions of dollars of debt to acquire Family Dollar, and that negatively impacted the credit rating of both of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, will no longer issue separate financial statements. The best known rating agency, Standard & Poor s, downgraded Family Dollar in July, with Dollar Tree having already been downgraded. 3 Dollar tree The combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt, hence the lower credit rating. Dollar General is now the only dollar store chain with an investment grade rating. Dollar General has been credit-upgraded four times since going public in 2009. dollar general 8
Location & Demographics Cawker City, ks Overview Cawker City is located in Mitchell County in north central Kansas along U.S. Highway 24. Poised on the shores of Waconda Lake and near Glen Elder State Park, the area around Cawker City offers some of the finest hunting, fishing, camping, and boating in the state. Population (within 5-miles) Year Population 2010 549 2015 560 2020 574 2015 Household incomes (within 5-miles) Average $51,686 Median $38,484 Cawker city Kansas city wichita waconda lake 24 dollar general 9
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] Rick Sanner rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Bob Sanner bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 Chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 In conjuction with KS Licensed Broker: Phil Bundy bundydevelopment@cox.net (316) 686-9292 Copyright 2015 [Capital Pacific Real Estate Brokerage Company]