Single Tenant ABSOLUTE NNN INVESTMENT OPPORTUNITY Pinon Hills, California REPRESENTATIVE PHOTO
CONTENTS 2 CONTENTS INVESTMENT SUMMARY...3 HIGHLIGHTS...4 PROPERTY DESCRIPTION...5 AERIAL VIEW & SITE PLAN...6 AREA OVERVIEW...10 RENT ROLL...11 This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate EXCLUSIVELY MARKETED BY REPRESENTATIVE PHOTO 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. Developed By MATTHEW MOUSAVI Managing Principal SRS National Net Lease Group 610 Newport Center Drive, Suite 400 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 400 Newport Beach, CA 92660 DL: 949.698.1115 M: 480.221.4221 Patrick.Luther@srsre.com CA License No. 01209944
INVESTMENT SUMMARY 3 DOLLAR GENERAL PINON HILLS, CALIFORNIA SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building) in a newly constructed, freestanding, corporate guaranteed, absolute NNN, single tenant, Dollar General located in Pinon Hills, CA. The lease is guaranteed by the corporate company, Dollar General Corp. (NYSE: DG), with an S&P investment grade credit rating of BBB. The tenant recently executed a brand new long-term 15-year lease with 3 (5-year) option periods, demonstrating their longterm commitment to the location. The lease features rental increases at the beginning of each 5-year option period, which generates steady NOI growth and hedges against inflation. The Dollar General is slated to open in November 2016. The Dollar General is located along California State Highway 138 (12,000 vehicles per day) with excellent visibility. Highway 138 is the primary thoroughfare for the city of Pinon Hills, CA. This new Dollar General is poised to capture local demand as it will be the only discount store (Dollar General, Dollar Tree, Family Dollar, 99 Cents Store) in a 15-mile radius. OFFERING Pricing: $2,392,000 Net Operating Income: $143,544 Cap Rate: 6.00% Guaranty: Credit Rating: Lease Type: Landlord Responsibilities: Corporate S&P: BBB Abs. NNN None REPRESENTATIVE PHOTO PROPERTY SPECIFICATIONS Rentable Area: 9,026 SF Land Area: 1.73 Acres Property Address: Along Highway 138, Pinon Hills, CA 92372 Year Built: 2016 Parcel Number: 3068-231-38-0000 and 3068-231-39-0000 Ownership: Fee Simple (Land and Building)
HIGHLIGHTS 4 BRAND NEW 15-YEAR CORPORATE GUARANTEED LEASE / BRAND NEW BUILDING Dollar General Corp. (NYSE: DG) corporate guaranteed, 15-year lease S&P Investment Grade Credit Rating: BBB Brand new building with high quality 2016 construction ABSOLUTE NNN LEASE / FEE SIMPLE OWNERSHIP / ZERO LANDLORD RESPONSIBILITIES Tenant pays for CAM, insurance, and taxes, and maintains all aspects of building Ideal, management-free investment for an out of state, passive investor No landlord responsibilities LOCATED ALONG STATE HIGHWAY 138 / PRIMARY THOROUGHFARE / HIGHWAY WIDENING Located along State Highway 138 with 12,000 vehicles passing by each day State Highway 138 is currently being widened from 2 lanes to 4 lanes State Highway 138 is the primary thoroughfare for the city of Pinon Hills Excellent street frontage, access and visibility Large pylon sign further increases visibility for the subject property REPRESENTATIVE PHOTO CLOSE PROXIMITY TO MOUNTAIN HIGH RESORT State Highway 138 is one of the major routes connecting Los Angeles County, Orange County, and the Inland Empire to Mountain High Snow Resort Pinon Hills is located 15 miles away from Mountain High Snow Resort LIMITED COMPETITION Will be the only discount store (Dollar General, Dollar Tree, and Family Dollar, 99 Cent Store) within a 15-mile radius, allowing Dollar General to take full advantage of local demand
PROPERTY DESCRIPTION 5 PROPERTY DESCRIPTION PARCEL Parcel: 3068-231-38-0000 and 3068-231-39-0000 Acres: 1.73 Square Feet: 75,359 ZONING Commercial ACCESS There is one (1) access point along California Highway 138. TRAFFIC COUNTS California Highway 138:...12,000 IMPROVEMENTS There is approximately 9,026 SF of existing building area. PARKING There are approximately 36 parking spaces on the owned parcel. The parking ratio is approximately 4 per 1,000 SF of leasable area. REPRESENTATIVE PHOTO YEAR BUILT 2016
AERIAL VIEW 6 Pylon Sign
AERIAL VIEW 7 PINON HILLS PHELAN MOUNTAIN HIGH STATISTICS Elevation... 6600 ft - 8200 ft Trails... 60 Lifts... 14 WRIGHTWOOD
LOCATION MAP 8 LANCASTER 2015 ESTIMATED POPULATION 5 Mile... 11,127 10 Mile... 28,266 2015 AVERAGE HOUSEHOLD INCOME 5 Mile...$57,369 10 Mile...$64,395 PALMDALE PINON HILLS 28.8 Miles 30.4 Miles 20.3 Miles VICTORVILLE HESPERIA APPLE VALLEY 2015 ESTIMATED TOTAL EMPLOYEES 5 Mile... 2,787 10 Mile... 5,690 SAN BERNARDINO LOS ANGELES SANTA ANA
SITE PLAN 9 Highway 138-12,000 VPD Pylon Sign Smoke Tree Rd.
HIGHLIGHTS 1 0 CITY OF PINON HILLS Piñon Hills is a census-designated place in San Bernardino County, California, near the Los Angeles Countyline. It is located along Pearblossom Highway, 28 miles east of Palmdale, and 15 miles west of the Cajon Pass where Pearblossom Highway meets Interstate 15. The town lies within 25 miles of Hesperia and Victorville. Piñon Hills is in a tri-community that consists of Piñon Hills, Phelan and Wrightwood. The elevation is 4,173 feet (1,272 m). The population was 7,272 at the 2010 census. DEMOGRAPHICS 3 Mile 5 Miles 10 Miles 2015 Estimated Population 5,020 11,127 28,266 2020 Projected Population 5,205 11,506 28,795 2010 Census Population 4,843 10,762 27,947 2000 Census Population 3,633 8,023 21,274 Projected Annual Growth 2015 to 2020 0.73% 0.67% 0.37% Historical Annual Growth 2010 to 2015 0.69% 0.64% 0.22% DISTANCE TO POINTS OF INTEREST 1 MILE Univeristy of Tulsa 2 MILES Tulsa Zoo 3 MILES Univeristy of Tulsa 4 MILES Tulsa Zoo 2015 Estimated Households 1,774 3,865 9,771 2020 Projected Households 1,836 3,989 9,938 2010 Census Households 1,705 3,728 9,644 2000 Census Households 1,258 2,785 7,323 Projected Annual Growth 2015 to 2020 0.69% 0.63% 0.34% Historical Annual Growth 2010 to 2015 0.76% 0.69% 0.25% 2015 Estimated White 78.88% 76.91% 76.24% 2015 Estimated Black or African American 0.86% 1.09% 2.15% 2015 Estimated Asian or Pacific Islander 2.87% 3.36% 3.09% 2015 Estimated American Indian or Native Alaskan 1.02% 1.02% 0.97% 2015 Estimated Other Races 11.00% 12.20% 12.59% Estimated Hispanic 28.67% 29.40% 29.08% 1/4 MILE 1 MILE 1/2 MILE 2 MILES 2015 Estimated Average Household Income $54,505 $57,369 $64,395 2015 Estimated Median Household Income $41,141 $44,114 $50,604 2015 Estimated Per Capita Income $19,075 $19,856 $22,334 2015 Estimated Total Businesses 72 349 593 2015 Estimated Total Employees 342 2,787 5,690
RENT ROLL 1 1 Dollar General Starbucks Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in over four 12,400 segments: stores in Americas, 43 Europe, Africa, and China/Asia Pacific. Starbucks stores offer coffee and tea beverag- Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 2016, Dollar General operated Company Type:... Public (NYSE: DG) 2015 Employees:... 113,400 2015 Assets:... $11.26 Billion states in the U.S. It competes in the dollar store format with national es, packaged chains Family roasted Dollar whole and bean and ground coffees, and other bottled beverages. Its stores also provide fresh food Dollar Tree, regional chains such as Fred s in the Southeast, and offerings numerous such independently as pastries, breakfast 2015 sandwiches, Revenue:... and lunch $20.37 items. Billion As of August 201527, Equity: 2015,... Starbucks operates $5.38 Billion 21,000 owned stores. In addition to high quality private brands, Dollar stores. General Starbucks sells products was founded from in 2015 1985 Net and Income: is headquartered... $1.17 in Seattle, Billion Washington. Credit Rating:...S&P: BBB 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. Tenant Name Square Feet Lease Start Lease End Begin Monthly Annually Recovery Type Options: 3 (5-year) Dollar General 9,026 11/1/2016 11/30/2031 Year 1 $11,962 $143,544 Abs. NNN Option 1: $157,896/Yr (corporate) (est) (est) Option 2: $173,688/Yr Option 3: $191,064/Yr FINANCIAL INFORMATION Price:...$2,392,000 Net Operating Income:...$143,544 Cap Rate:...6.00% Lease Type:... Absolute NNN PROPERTY SPECIFICATIONS Address:... Along Highway 138, Pinon Hills, CA 92372 Year Built:...2016 Rentable Area:...9,026 Parcel Number:...3068-231-38-0000 and 3068-231-39-0000 REPRESENTATIVE PHOTO
REPRESENTATIVE PHOTO