NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM Presented By LARNED, KANSAS OF
INVESTMENT SUMMARY PRICE $410,000 7.95% CAP Rate ADDRESS 510 East 14th Street Larned, KS 67550 NET OPERATING INCOME $32,579 ($4.07/SF) APN 108-33-0-20-03-002.00-0 LEASE TERM REMAINING 5.9 Years LEASE TYPE NN BUILDING SIZE 8,000 SF TYPE OF OWNERSHIP Fee Simple YEAR BUILT 2000 Marcus and Millichap is pleased to present Dollar General in Larned, Kansas. Located in the heart of Kansas, this community thrives on agriculture and agri-business companies in the region. Larned is home to over 20 agriculture related businesses in the immediate area. Larned is home to approximately 4,000 residents. Built in 2000, the property is a 8,000 square foot building that is 100 percent occupied by Dollar General. The property has direct access to US Highway 56, carrying over 5,000 vehicles per day. US Highway 56 is a major traffic artery that runs NE to SW across the entire state. Dollar General is being offered at a 7.95 percent cap rate and a rent of $4.46 per square foot. Dollar General currently has 5.9 years remaining on their lease. At the expiration of their current lease, Dollar General will have operated for over 20 years at this location. This operating history, along with an early lease renewal on their last extension, are clear evidence of Dollar General s success and shows their continued commitment to this location. LEASE SUMMARY Lease Type NN Roof & Structure Landlord Responsible Lease Commencement Date 5/1/2000 Lease Expiration 2/28/2023 Highlights: Early Lease Extension Direct Access to U.S. Highway 56 Located on Main East-West Retail Corridor 5.9 Years Remaining on Lease NN Lease
INVESTMENT SUMMARY ANNUALIZED OPERATING DATA Current Per SF Base Rent $35,653 $4.46 GROSS POTENTIAL RENT $35,653 $4.46 Total Expense Reimbursements $15,352 $1.92 GROSS POTENTIAL INCOME $51,005 $6.38 Total Expenses $18,426 $2.30 NET OPERATING INCOME $32,579 $4.07 EXPENSES Current Per SF Real Estate Taxes $12,303 $1.54 Insurance $4,023 $0.50 CAM TOTAL CAM $2,100 $0.26 TOTAL EXPENSES $18,426 $2.30 RENT SCHEDULE YEAR ANNUAL RENT MONTHLY RENT RENT/SF Current* $32,683 $2,724 $4.09 3/1/2018 [UNDERWRITTEN] $35,653 $2,971 $4.46 *Owner will credit Purchaser at closing the difference between the current rent being paid and the rent to be paid following the increase occurring in March 2018
TENANT SUMMARY Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The company offers consumable products, packaged food products, health and beauty products, pet products, and seasonal products. In addition, the company offers apparel for infants, toddlers, girls, boys, women, and men. As of October 2015, it operates 12,396 stores in 43 states. The company was formerly known as J.L. Turner & Son, Inc., changing its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee. TENANT SUMMARY Ownership Public Tenant Trade Name Dollar General Tenant Dollar General Sales Volume $20+ Billion Lease Guarantor Dollar General Credit Rating BBB Rating Agency Standard & Poor s No. of Locations 12,500+ Headquartered Goodlettsville, TN Years in the Business 50 Website www.dollargeneral.com In the News Dollar General Plans to Create Approximately 10,000 New Jobs in 2017 Dollar General Corporation Reports Third Quarter 2016 Financial Results Dollar General Literacy Foundation Awards $4.5 Million
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MARKET SUMMARY Founded in 1872 with the establishment of a United States Post office, Larned, Kansas is the county seat of Pawnee County. Local area attractions located in Larned include the Santa Fe Trail Center, a facility dedicated to the history of the Santa Fe Trail. Also located in Larned is the Fort Larned Historical Site consists of 9 historical buildings and is one of the best-preserved examples of Indian War-era forts in the United States. Built in 1949, the Patterson House in Larned is listed on the National Register of Historic Places. Major employers in the area include the local school district, the state hospital, the Larned Correctional Mental Health Facility, and the Larned Juvenile Correctional Facility.
DEMOGRAPHICS 1 Mile 3 Miles 5 Miles 2000 Population 3,113 4,337 5,454 2010 Population 2,993 4,277 5,447 2014 Population 2,942 4,203 5,349 2019 Population 2,875 4,145 5,305 2000 Households 1,408 1,932 2,031 2010 Households 1,332 1,910 2,011 2014 Households 1,306 1,869 1,965 2019 Households 1,287 1,874 1,971 2014 Daytime Population 1,058 1,854 2,057 2014 Owner Occupied Housing Units 65.05% 65.42% 65.84% 2014 Renter Occupied Housing Units 34.95% 34.58% 34.16% 2014 Vacant 16.45% 16.08% 16.02% 2019 Owner Occupied Housing Units 64.80% 65.03% 65.45% 2019 Renter Occupied Housing Units 35.20% 34.97% 34.55% 2019 Vacant 16.99% 16.61% 16.56% $0-$14,999 11.5% 9.6% 9.4% $15,000-$24,999 20.8% 20.1% 19.7% $25,000-$34,999 12.9% 13.8% 13.8% $35,000-$49,999 20.6% 19.7% 19.7% $50,000-$74,999 20.1% 20.0% 20.2% $75,000-$99,999 10.4% 11.4% 11.4% $100,000-$124,999 1.9% 2.7% 2.9% $125,000-$149,999 0.6% 0.7% 0.9% $150,000-$199,999 0.7% 1.3% 1.3% $200,000-$249,999 0.2% 0.3% 0.3% $250,000+ 0.3% 0.6% 0.6% 2014 Median Household Income $37,850 $39,566 $40,055 2014 Per Capita Income $21,033 $25.134 $21,020 2014 Average Household Income $45,375 $39,450 $50,062
CONTACT Presented By GRANT KALLEVIG Associate Grant.Kallevig@MarcusMillichap.com (952) 852-9747 SEAN DOYLE First Vice President Investments Sean.Doyle@MarcusMillichap.com (952) 852-9719 MATT HAZELTON Vice President Investments Matt.Hazelton@MarcusMillichap.com (952) 852-9729 ADAM AJ PRINS Vice President Investments Adam.Prins@MarcusMillichap.com (952) 852-9743 CORY VILLAUME Vice President Investments Cory.Villaume@MarcusMillichap.com (952) 852-9728 BROKER OF RECORD Marcus & Millichap REIS Greg Bates License: BR00035677 www.marcusmillichap.com www.northstarretailgroup.com OF