Dollar General 504 S. Eagle St Weimar, TX OFFERING MEMORANDUM Dollar General, Representative Weimar, TX Photo 1
2 Offering Memorandum Representative Photo
exclusively listed by contents 04 EXECUTIVE SUMMARY Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 (CA) 05 06 10 financial OVERVIEW tenant overview area OVERVIEW Calvin Short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) Kyle Matthews Broker of Record Lic # 9005919
executive summary Investment Highlights Dollar General exercised their 3rd option to extend this lease several years early, through March 31, 2023, showing continued commitment to this location Very attractive cap rate of 8.40% Rent set to increase on April 1, 2018 New roof installed in May 2015 with 5-year roof warranty Located conveniently between Interstate 10 & US Hwy 90, which both run through Weimar Nearest Dollar General from this location is located 8.5 miles away Dollar General holds a strong investment grade credit rating of BBB (recently upgraded from BBB-) Dollar General is the only dollar store with Investment grade credit Dollar General has more than 13,500 locations and has plans to continue expanding over the next several years 4 Offering Memorandum
financial overview Dollar General 504 S. Eagle St Weimar, TX 78962 List Price...$500,000 CAP Rate - Current... 8.40% Gross Leasable Area... ± 8,625 SF Lot Size...± 0.59 Acres Year Built... 2000 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate 4/1/2018-3/31/2023 $3,500 $42,000 $4.87 8.40% Tenant Summary Tenant Trade Name Dollar General Corporation Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof and Structure Owner Responsible Original Lease Term 8 Years Lease Commencement Date 9/24/1999 Rent Commencement Date 4/1/2000 Lease Expiration Date 4/1/2023 Term Remaining on Lease ± 5.50 Years Representative Photo
tenant 6 Offering Memorandum overview Representative Photo
Company Name Parent Company Trade Name Ownership Credit Rating (S&P) Dollar General Dollar General Corporation (NYSE: DG) Public BBB No. of Locations ± 13,500 No. of Employees ± 113,400 Headquartered Website Goodlettsville, TN www.dollargeneral.com Tenant Overview Year Founded 1939 Dollar General is the fast-growing retailer that boasts roughly 13,500 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General s customers typically live in small towns, the company doesn t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores footprint. STRATEGY With its small-box stores typically measuring some 9,100 sq. ft, Dollar General targets cost-conscious consumers that prefer easier and quicker access to items than at super-sized competitors such as Wal-Mart and Costco (which are also often much farther away). Indeed, Dollar General s strategy of catering to the value conscious has paid off big, both during and after the recession. The discount retailer boasted its 26th consecutive year of same-store sales growth in 2016 (ended January), attributable to its value and convenience proposition. OPERATIONS Dollar General s massive stores network is supported by 13 distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such as Bobbie Brooks and Fisher Price for clothing and Rexall for health and beauty aids. GEOGRAPHIC REACH Dollar General operates nearly 13,500 stores in 43 US states in 2015. About 10% of its stores are in Texas and another 20% are spread across Florida, Georgia, Ohio, and North Carolina.
property overview Representative Photo the offering Parcel Map Property Name Property Address 8 Offering Memorandum Dollar General 504 S. Eagle St Weimar, TX 78962 Assessor s Parcel Number 1394004300100 Site Description Number of Stories One Year Built 2000 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Parking Ratio Landscaping Topography ± 8,625 SF ± 0.59 Acres (25,539 SF) Fee Simple ± 33 Surface Spaces 3.83 : 1000 SF Professional Generally Level interstate 10 ± 23,000 adt S. eagle st ± 4,600 adt
surrounding tenants Dollar General, Weimar, TX 9
area overview texas hill country Weimar, TX Weimar is a city in Colorado County, Texas. Strategically located on Interstate 10 and US 90 between San Antonio, Austin, and Houston, this charming community of predominately German and Czech descendants offer a trading center to all. Throughout the 20th century, Weimar enjoyed a slow yet steady growth in population, increasing on average by 250 persons every ten years. Business establishments held their numbers steady at around 70. Local industries include meat processing, tooling and sheet-metal works, and manufacturing of gaskets. Agriculture continues to play an important role, as Weimar continues to trade in feed grain, poultry, corn, pecans, and beef. The former GH&SA railroad remains in service today as part of the Union Pacific Railroad system. A strong history of baseball exists in Weimar. Veterans Park (Strickland Field) was ahead of its time when it was built in 1948 and was the first lighted baseball field between San Antonio and Houston. Veterans Park remains a state-of-the-art baseball stadium, having hosted a Babe Ruth League World Series Tournament in 2005. Weimar s picturesque downtown bustles with businesses, shops, great eateries, drug stores with old-fashioned soda fountains, antique shops, and a tavern where locals play dominoes and German card games. weimar demographics POPULATION 3 Mile 5 Mile 7 Mile 2022 Projection 2,900 3,448 4,518 2017 Estimate 2,846 3,660 4,842 2010 Census 2,841 3,692 4,924 2000 Census 2,704 3,780 5,069 POPULATION GROWTH 3 Mile 5 Mile 7 Mile Percent Change: 2017 to 2022 1.90% 2.38% 2.94% Percent Change: 2010 to 2017 0.18% 0.87% 1.69% Percent Change: 2000 to 2010 5.07% 6.15% 7.17% 10 Offering Memorandum HOUSEHOLDS 3 Mile 5 Mile 7 Mile 2022 Projection 1,156 1,522 1,812 2017 Estimate 1,133 1,483 1,961 2010 Census 1,129 1,465 2,005 2000 Census 1,096 1,387 2,071 HOUSEHOLD GROWTH 3 Mile 5 Mile 7 Mile Percent Change: 2017 to 2022 2.03% 2.63% 3.29% Percent Change: 2010 to 2017 0.35% 1.23% 2.24% Percent Change: 2000 to 2010 3.01% 5.62% 8.22% HOUSEHOLD GROWTH 3 Mile 5 Mile 7 Mile 2017 Est. Average Household Income $69,001 $72,572 $75,161
regional map local map Dollar General, Weimar, TX 11
surrounding area texas hill country Arguably the most beautiful area in Texas, the Texas Hill Country is a 25-county region of Central and South Texas that extends from just north of Austin down south to San Antonio. Central to Texas, the Hill Country is considered the heart and soul of the state. With over 14,000 square miles of hills, lakes, live oak trees, and winding roads, this region attracts millions of people each year, be it for a weekend getaway or a vacation. Located deep in the heart of this uniquely charming area, the countryside is reminiscent of the wine growing regions of central Italy and the Rhone Valley in France. An array of visually stunning vineyards and wineries are scattered throughout the Hill Country, from downtown Austin to Fredericksburg and Lampasas to New Braunfels. Given that it is one of the fastest growing wine-producing regions in the country, the Hill Country has emerged as one of the top wine destinations in the world, drawing more than five million visitors each year to the Texas Hill Country Wineries. 12 Offering Memorandum
san antonio, tx Placed perfectly in the heart of Texas Hill Country straddling South Texas and Central Texas, San Antonio is the second-most populous city in the state of Texas. A city on the rise, San Antonio is in the center of a booming corridor with many business-friendly elements. San Antonio s historically steady population growth has established a local market of 2.3 million residents, one that is projected to increase by 28% in the coming future. Moreover, there is an increasing population of young professionals flocking to central San Antonio, enticed by areas such as Pearl Brewery, Alamo Heights and downtown, which offer an urban lifestyle with endless shopping, nightlife, cultural, fine dining, and employment opportunities. houston, tx The city of Houston, Texas is located in southeastern part of the state near the Gulf of Mexico. It is the most populous city in Texas and the fourth most populous city in the United States. Known as the Bayou City for its waterway system, Houston thrives because it is a great place to work and a great place to live. Alive with energy and rich in diversity, Houston is a dynamic mix of imagination, talent, and first-class attractions that makes it a world-class city. It exudes a cosmopolitan and down-home vibe while being nicknamed the Space City. With more than 2.2 million residents, Houston attracts visitors and transplants with a wonderful mix of world-class arts, booming business, pro sports, and award-winning cuisine. austin, tx Located in Central Texas in the foothills of Texas Hill Country, Austin is the state capital and the cultural and economic center of the Austin-Round Rock metropolitan area. Regarded by most as the best choice in Texas, the Austin area provides residents a balance of a strong economy, good education, attractive housing, a pleasant climate, and plenty to do. Visitors are welcome to indulge in the rich cultural heritage, plentiful entertainment amenities, unique attractions and outdoor recreation opportunities of this bustling, albeit laid-back, capital city. Surrounded by beautiful natural settings and abundant sunshine, Austin offers an unparalleled quality of life for its low cost of living. Defying stereotypes, Austin is hardworking and easy-going, progressive, and fiercely entrepreneurial.
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Dollar General located at 504 S. Eagle St, Weimar, TX 78962 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
exclusively listed by Jake Seijas Associate Jake.Seijas@matthews.com DIR (310) 919-5776 MOB (415) 847-0566 LIC # 01974332 (CA) Calvin Short FVP & Senior Director Calvin.Short@matthews.com DIR (949) 432-4506 MOB (310) 567-3525 LIC # 01927216 (CA) Kyle Matthews Broker of Record Lic # 9005919 Dollar General 504 S. Eagle St Weimar, TX Dollar General, Weimar, TX 15
Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords. 11-2-2015 TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/ Associate License No. Email Phone Sales Agent/Associate s Name License No. Email Phone 9/20/2017 Buyer/Tenant/Seller/Landlord Initials Date