Dollar general $5.3 Billion in 2015 Revenue 15-year lease brand new construction 540 Chase Creek Street, Clifton, AZ 85533 Click for Map [ www.capitalpacific.com ]
investment highlights Listing Team Contact Info NEW NNN DOLLAR GENERAL IN CLIFTON, AZ. The store is open and performing very well. John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 PRICE: $1,821,046 CAP: 6.50% Rentable SF...9,002 SF Price per SF...$207.07 Current Rent... $13.15/SF 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. In conjunction with AZ Licensed Broker: Jessica Zahn Gibson, CIA Brokerage Company 619-863-0840 jess@ciadvisors.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. dollar general 2
core characteristics ATTRACTIVE FINANCING AVAILABLE: Up to 75% Leverage 5 Year Fixed 3.98% - 25 Year Amortization 10 year Fixed 4.58% - 25 year Amortization 0.25% Loan Fee plus 3rd party appraisal & title *Contact Agents for Details STRONG TENANT During fiscal 2015, Dollar General opened about 730 new stores and has plans to open more in fiscal year 2016. Dollar General has more stores (12,483 +) than any other dollar store in the country and is currently the largest dollar store chain. In the 6+ years since going public in late 2009, the Dollar General stock price has approximately quadrupled (from $21 to $83). In fiscal 2015, the tenant achieved its 26th consecutive year of same-store sales growth. property highlights The property has opened to very strong sales due to its central location and low cost of daily needs products. Population growth in one, three and ten mile radii. The subject property benefits from its proximity to the Freeport- McMoRan s Morenci mine site, one of the largest copper mines in the world. 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 2015. Dollar General has a better credit rating than both of its large competitors. lease highlights 15-year primary lease term with three (3) five-year options. 10% rental increases every 5 years during the option periods. Absolute net lease. Brand new 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. dollar general 3
aerial 15,436 DAILY Coronado Trail Frisco Avenue Longfellow Elementary El Corralito Burro Alley MORENCI THEATRES R&R PIZZA EXPRESS MERLE S AUTO SUPPLY GOLDEN CITY CHINESE Chase Creek Street LOS MENDOZA TACO SHOP LAW OFFICE Comb Street ANDY S ALTERATION SHOP GREENLEE FLORIST GRANNY S ATTIC CHASE CREEK MARKETPLACE RODE INN MORENCI MOTEL MORENCI LANES HARALSON AUTO SERVICES & TIRE CENTER Fairbanks Road CLIFTON TIRE & AUTO Drive Riverside THE LIQUOR STORE PJ S CAFE GREENLEE PRINTING CITY OF CLIFTON Coronado Drive Fairbanks Elementary Reservation Road Clifton High School TYLER S TASTE OF TEXAS Morenci Jr. Sr. High School Ward Canyon Road TUCSON Shannon Road dollar general 4 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.
income & expense PRICE $1,821,046 Price Per Square Foot: $202.29 Capitalization Rate: 6.50% Total Rentable Area (SF): 9,002 Lot Size (AC): 1.00 STABILIZED INCOME Per Square Foot Scheduled Rent $13.15 $118,368 Effective Gross Income $13.15 $118,368 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $118,368 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. [ REPRESENTATIVE PHOTO ] dollar general 5
rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Dollar General 9,002 4/1/2016 3/31/2031 $118,368 $9,864 $118,368 $1.10 $13.15 Option 1 4/1/2031 3/31/2036 $10,850 $130,200 $1.21 $14.46 Option 2 4/1/2036 3/31/2041 $11,935 $143,220 $1.33 $15.91 Option 3 4/1/2041 3/31/2046 $13,128 $157,536 $1.46 $17.50 Totals: 9,002 $118,368 $9,864 $118,368 $1.10 $13.15 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
site plan Site Plan Key US Highway 15,436 DAILY Parcel outline: Land Area: Building Area: Ingress/Egress: 1.00 AC 9,002 sf LIGHTED PYLON SIGN Chase Creek Street This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. dollar general 7
tenant overview dollar general is the country s largest small-box discount retailer About Dollar General Dollar General (NYSE: DG) is a chain of more than 12,483 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. 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 159th within the Fortune 500 list. Fiscal 2015 revenues exceeded $20.4 billion with a net income of $1.17 billion, and net worth of $5.3 billion. On March 10, 2016 Dollar General reported its fourth quarter and full year 2015 financial results. The report was quite good and the stock price rose on the news. The fiscal quarter reported in May 2016 was also very strong. As of June 1st, the stock price is up 20% YTD to a 52-week high. Dollar General enjoys a strong credit rating, see next page. COMPANY TYPE: PUBLIC (NYSE: DG) FISCAL 2015 SALES $20.4 BILLION S&P 500 CREDIT RATING BBB (See next page) 2015 FORTUNE 500 #159 NUMBER OF STORES 12,483 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 8
tenant credit rating [ representative photos] The three largest dollar store chains, ranked by 2015 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, no longer issues 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 five times since going public in 2009, most recently in October, 2015. It is now rated BBB by Standard & Poor s, and it has an equivalent rating from Moody s. 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 9
location & demographics dollar general market location About clifton, az Clifton is the county seat of Greenlee County, Arizona, along the San Francisco River. The city is served by U.S. Route and the Arizona Eastern Railway. Clifton and Morenci are trade centers for tourists driving the popular Coronado Trail or touring the historic Chase Creek business district. Mining and mineral processing dominate the economy in the Clifton/Morenci area. The Morenci mining district has evolved into a world class operation accounting for approximately 18% of the world copper production. The largest employer in Morenci is Freeport-McMoRan, owner of the Morenci Mine (the largest copper mining operation in North America) and one of the largest copper mines in the world. regional map Population 1-Mile 3-Mile 10-Mile phoenix 208 MILES 2010 992 4,835 5,945 2015 1,002 5,685 7,023 2020 1,030 6,492 7,909 2015 Household incomes clifton 1-Mile 3-Mile 10-Mile Average $50,584 $62,858 $61,467 Top Employers in greenlee county Freeport-McMoRan - Morenci Mine Clifton Unified School District Greenlee County Morenci Health Care Center tucson 168 MILES 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 10
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] john andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 In conjunction with AZ Licensed Broker: Jessica Zahn Gibson, CIA Brokerage Company 619-863-0840 jess@ciadvisors.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. chris kostanecki chris peters dave lucas zandy smith jack navarra zeb ripple joe caccamo gregg steele karla zens [ Copyright 2016 Capital Pacific ]