FOR SALE Six Property Portfolio Illinois, Iowa & Wisconsin Available individually or as a portfolio Representative Photo Available individually or as a portfolio I N V E S T M E N T S A L E S G R O U P Zach Wright, Associate Advisor Jeff Johnson, Principal One Broadway #A300 Denver, CO 80203 303.962.9555 www.pinnaclerea.com
DISCLOSER This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC ( Pinnacle REA ) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the properties described herein as Portfolio located in various locations throughout the U.S. (the Properties ) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Pinnacle REA or its brokers. Pinnacle REA makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Pinnacle REA has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Pinnacle REA shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request. This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Pinnacle REA. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Pinnacle REA at your earliest convenience. Zach Wright, Associate Advisor 720.638.5404 ZWright@PinnacleREA.com Jeff Johnson, Principal 303.962.9556 JJohnson@PinnacleREA.com 2
TABLE of Contents Executive Summary Portfolio Property Beloit, Wisconsin Bushnell, Illinois Cambridge, Illinois Okawville, Illinois Wapello, Iowa Wilton, Iowa Tenant Exclusively Listed by: Zach Wright, Associate Advisor 720.638.5404 ZWright@PinnacleREA.com Jeff Johnson, Principal 303.962.9556 JJohnson@PinnacleREA.com One Broadway, Suite 300A Denver, CO 80203 303.962.9555 www.pinnaclerea.com 2016 Pinnacle Real Estate Advisors, LLC. All information contained herein has been obtained from sources we believe to be reliable. However, we accept no responsibility for its accuracy and encourage verification of all information prior to making financial decisions. 3
EXECUTIVE Summary The Wright Johnson National Net Lease Group of Pinnacle Real Estate Advisors is pleased to exclusively market for sale a six-property single tenant net lease portfolio. The offering presents an investor with the rare opportunity to acquire a portfolio of established strong performing Dollar General properties. is committed to these locations as evidenced by their execution of early lease extensions at each of the properties. All six of the s boast exceptional sales histories with very high store sales. Five of the locations feature a rent-to-sales ratio below 3.5%. Four of the six leases contain rental escalations in the current term and all six of the leases feature rental escalations in the renewal option periods. is a discount retailer with over 12,500 locations in 43 states. is the only investment grade rated dollar store with a Standard and Poor s rating of BBB. is a publicly traded company (NYSE: DG) with a market capitalization in excess of $22 billion. This portfolio is being offered free and clear of any financing. The Dollar General properties can be purchased individually or as a portfolio. Investment Highlights is an investment grade rated tenant (S&P: BBB) and the only dollar store company currently investment grade rated is publicly traded on the New York Stock Exchange (DG) with a market capitalization in excess of $22 billion Rare opportunity to acquire a portfolio of established strong performing Dollar General properties in a central geographical location is committed to each location as evidenced by their execution of early lease extensions All six of the properties have an exceptional sales history with strong reported store sales Portfolio features extremely low rent-to-sales ratios with five of the six properties having a rent-to-sales ratio below 3.5% Four of the six leases feature rental escalations in the current term All six of the leases feature rental escalations in the renewal options periods Low rent per square foot with a portfolio average of approximately $6 Tenant reimburses for CAM 4
PORTFOLIO Six Property Portfolio Illinois, Iowa & Wisconsin 13075 IL Highway 81 Cambridge, IL 61238 18245 US Highway 41 Bushnell, IL 61422 ILLINOIS 900 Hen House Road Okawville, IL 62271 IOWA 1200 W 5th Street Wilton, IA 52778 702 US Highway 61 Wapello, IA 52653 WISCONSIN 1520 S Madison Road Beloit, WI 53511 Tenant City State Building SF Lease Expiration NOI Cap Rate Price Beloit WI 9,014 2/28/2021 $61,800 7.75% $797,419 Bushnell IL 8,125 9/30/2023 $42,000 7.60% $552,632 Cambridge IL 8,125 10/31/2024 $49,200 7.60% $647,368 Okawville IL 8,125 2/29/2024 $42,900 7.60% $564,474 Wapello IA 8,125 8/31/2024 $53,820 7.60% $708,158 Wilton IA 8,125 8/31/2024 $49,200 7.60% $647,368 Totals 49,639 $298,920 7.63% $3,917,419 Available individually or as a portfolio 5
PORTFOLIO Six Property Portfolio Illinois, Iowa & Wisconsin 6
1520 Madison Road Beloit, WI 53511 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 38,858 61,722 76,131 Total Households 14,648 23,474 28,894 Average HH Income $46,823 $56,326 $62,436 Purchase Price: $797,419 Cap Rate: 7.75% Net Operating Income: $61,800 Rent Commencement: March 1, 2006 Lease Expiration: February 28, 2021 Rental Escalations: In Renewal Options Renewal Options: Five 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 9,014 SF Year Built: 2006 Store Number: 10069 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $61,800 $341/month Current $66,000 $417/month 3/1/2021 (Option 1) $72,600 $493/month 3/1/2026 (Option 2) $79,860 $568/month 3/1/2031 (Option 3) $86,760 $644/month 3/1/2036 (Option 4) $96,624 $730/month 3/1/2041 (Option 5) 7
1520 Madison Road Beloit, WI 53511 MADISON ROAD Beloit is a city in Rock County located in southern Wisconsin. Beloit was one of Travel & Leisure s top 20 Greatest American Main Streets for 2014. The 2015 Milken Institute Best-Performing Cities Index ranked the Janesville- Beloit metropolitan area #4 by how well they created and sustained jobs and economic growth. As of the 2010 US Census, Beloit had a population of 37,000 people. The town is home to Beloit College which is a private liberal arts college with a total enrollment of 1,300 students. Beloit is home to a professional minor league baseball team, the Beloit Snappers. The Snappers are a part of the Oakland Athletics organization. Beloit is strategically located at the intersection of Interstate 43 and Interstate 90. Beloit is positioned approximately 15 miles north of Rockford, IL, 50 miles south Madison, WI and 95 miles northwest of Chicago, IL. WHIPPLE STREET 8
18245 US Highway 41 Bushnell, IL 61422 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 3,122 3,746 4,769 Total Households 1,292 1,524 1,945 Average HH Income $47,904 $49,382 $51,435 Purchase Price: $552,632 Cap Rate: 7.60% Net Operating Income: $42,000 Rent Commencement: October 1, 2003 Lease Expiration: September 30, 2023 Rental Escalations: In Current Term and Renewal Options Renewal Options: Two 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 8,125 SF Year Built: 2003 Store Number: 9734 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $42,000 $231/month Current $45,600 $255/month 10/1/2019 $49,248 $280/month 10/1/2024 (Option 1) $54,168 $305/month 10/1/2029 (Option 2) 9
18245 US Highway 41 Bushnell, IL 61422 Bushnell is a city in McDonough County, Illinois. Bushnell is home to a solid core of manufacturing businesses, from metal working to food and feed processing. In all, Bushnell s home-grown manufacturing businesses employ over 550 people across seven different facilities. Amtrak passenger service is available three times a day each way between Galesburg and Chicago, and once a day each way between Macomb and Chicago. Bushnell, Illinois was founded in 1854 when the Northern Cross Railroad built a line through the area. Nehemiah Bushnell was the President of the Railroad, and townspeople honored him by naming their community after him. The railroad later became part of the Chicago, Burlington and Quincy Railroad, which continues to operate through Bushnell under the name Burlington Northern Santa Fe. Bushnell is located in central Illinois approximately 50 miles west of Peoria and 80 miles northwest of Springfield. COLE STREET 10
13075 IL Highway 81 Cambridge, IL 61238 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 2,404 2,896 4,155 Total Households 939 1,109 1,615 Average HH Income $62,300 $63,667 $63,415 Purchase Price: $647,368 Cap Rate: 7.60% Net Operating Income: $49,200 Rent Commencement: November 1, 2004 Lease Expiration: October 31, 2024 Rental Escalations: In Current Term and Renewal Options Renewal Options: Two 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 8,125 SF Year Built: 2004 Store Number: 6381 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $49,200 $231/month Current $54,000 $255/month 11/1/2019 $58,800 $280/month 11/1/2024 (Option 1) $64,680 $305/month 11/1/2029 (Option 2) 11
13075 IL Highway 81 Cambridge, IL 61238 SE ROAD N 1025th AVENUE Cambridge is a city in and the county seat of Henry County, Illinois. Henry County has a population of approximately 50,000 people. Henry County is included in the Davenport-Moline-Rock Island, IA-IL Metropolitan Statistical Area. Cambridge is located within a thirty minute drive from Illinois Quad Cities, Galesburg, and Kewanee which provides access to a wide pool of skilled labor. As the county seat of Henry County, Illinois, Cambridge hosts the county government. The Henry County Court House is the key architectural landmark of the village. The courthouse was listed on the National Register of Historic Places in 2004. Cambridge has two public parks. Hand Park on the west side of town hosts little league baseball and football, while College Square is the central park in the work with tennis courts, softball field, and pavilion. Valley View Country Club, just outside town, provides an 18-hole golf course. Cambridge is located approximately 30 miles southeast of Davenport, IA, and 60 miles northwest of Peoria, IL. 12
900 Hen House Road Okawville, IL 62271 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 1,868 2,520 3,996 Total Households 762 1,037 1,558 Average HH Income $61,961 $63,247 $68,872 Purchase Price: $564,474 Cap Rate: 7.60% Net Operating Income: $42,900 Rent Commencement: March 1, 2004 Lease Expiration: February 29, 2024 Rental Escalations: In Current Term and Renewal Options Renewal Options: Two 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 8,125 SF Year Built: 2004 Store Number: 9637 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $42,900 $231/month Current $47,400 $255/month 3/1/2019 $54,504 $280/month 3/1/2024 (Option 1) $62,676 $308/month 3/1/2029 (Option 2) 13
900 Hen House Road Okawville, IL 62271 HEN HOUSE ROAD E HIGH STREET Okawville is a village in Washington County, Illinois. Okawville has long enjoyed its reputation as home to the only remaining mineral springs resort in Illinois. For many years excursion trains brought guests to the baths for the therapeutic effects of the mineral water. Originally founded as Bridgeport in 1838, it wasn t until the mid 1870 s that Germans immigrated, renaming the community Okawville. Okawville features Roland Barkau Memorial Golf Course, Rainbow Ranch, The Steam Pipe, and Heritage House Historic Sites and Museum. The Original Springs Mineral Spa and Hotel, established in 1867, features a springfed spa with waters containing minerals such as calcium, magnesium, potassium, zinc, iodine, iron, and sulfur. Okawville is located approximately 35 miles east of St. Louis along Interstate 64. 14
702 US Highway 61 Wapello, IA 52653 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 2,457 3,083 5,072 Total Households 980 1,226 1,996 Average HH Income $52,579 $55,268 $58,962 Purchase Price: $708,158 Cap Rate: 7.60% Net Operating Income: $53,820 Rent Commencement: September 1, 2004 Lease Expiration: October 31, 2024 Rental Escalations: In Renewal Options Renewal Options: One 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 8,125 SF Year Built: 2004 Store Number: 6380 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $53,820 $231/month Current $53,820 $255/month 9/1/2019 $58,800 $280/month 9/1/2024 (Option 1) 15
702 US Highway 61 Wapello, IA 52653 US HIGHWAY 61 Wapello is a city in and the county seat of Louisa County, IA. Wapello is part of the Muscatine Micropolitan Statistical Area. The community was formed on the banks of the Iowa River in 1836 and was chartered as a City by the State legislature in 1856. Wapello is the site of several manufacturing companies which offer employment, and is located in close driving distance to larger communities like Muscatine, Burlington, and Mt. Pleasant. Wapello has Interstate 80 and Highway 218 within close driving distance. Wapello is located along Highway 61 which is to become a four-lane highway. Wapello, IA is a one of Iowa s small treasures, a cozy community in Louisa County located among a vast array of natural resources. A small community of caring people all working together to make their town safe, beautiful and filled with great opportunity. Wapello is located in eastern Iowa approximately 25 miles north of Burlington, 50 miles southwest of The Quad Cities and 50 miles southeast of Iowa City. PLEASANT STREET 16
1200 W 5th Street Wilton, IA 52778 Area Demographics: 3 Mile 5 Mile 7 Mile Total Population 3,609 4,309 7,150 Total Households 1,462 1,740 2,907 Average HH Income $68,872 $68,717 $67,505 Purchase Price: $647,368 Cap Rate: 7.60% Net Operating Income: $49,200 Rent Commencement: September 1, 2004 Lease Expiration: August 31, 2024 Rental Escalations: In Current Term and Renewal Options Renewal Options: Two 5-Year Lease Type: NN Tenant: Investment Grade: Investment Grade (S&P: BBB) Building Size: 8,125 SF Year Built: 2004 Store Number: 6522 NOI Schedule: Rent: CAM Reimbursement: Escalation Date: $49,200 $231/month Current $54,000 $255/month 9/1/2019 $58,800 $280/month 9/1/2024 (Option 1) $64,680 $305/month 9/1/2029 (Option 2) 17
1200 W 5th Street Wilton, IA 52778 NICOLAUS STREET HISTORIC US 6 Wilton is a city in Cedar and Muscatine counties in Iowa. Wilton is a community whose residents have the opportunity to enjoy the many advantages of Iowa s larger cities, as well as the comforts and security of Eastern Iowa. Despite being an idyllic and safe community with small town values, Wilton has numerous amenities including an indoor swimming pool, four parks, a country club, and numerous other events and attractions. In terms of industry, Wilton is currently developing a new industrial park, contains numerous large-scale employers such as Gerdau Ameristeel, GDS Global, and Wilton Precision Steel, and has a city-wide tax rate less than nearby communities, West Liberty and Muscatine. Additionally, Wilton has competitive public schools characteristic of the State of Iowa, with a student-teach ratio of 14 to 1, and a high school graduation rate of nearly 92%. Wilton is also fortunate to have numerous historical attractions, including the former Chicago, Rock Island, and Pacific Railroad Depot and the Wilton Candy Kitchen, one of the oldest ice cream parlors in the world. Wilton is located just south of Interstate 80 approximately 30 miles east of Iowa City and 30 miles west of The Quad Cities. 18
TENANT is a discount retailer that provides everyday low prices on name-brand products that are frequently used and replenished, such as food, snacks, health and beauty aids, as well as cleaning supplies, family apparel, housewares and seasonal items. offers both name brand and generic merchandise including off-brand goods and closeouts of namebrand items in the same store, often on the same shelf. Although it has the word dollar in the name, is not a dollar store by the strict definition of that term as most of its products are priced at more than $1.00. However, goods are usually sold at set price points in the range of.50 to 60 dollars, excluding articles such as phone cards and loadable store gift cards. was originally founded in 1939 by Cal Turner Sr. and his father J.L. Turner in Scottsville, Kentucky as J.L. Turner & Son, Inc. The company changed its name to Corporation in 1968. Today, operates over 12,500 stores in 43 states. is headquarted in Goodlettsville, TN. is an investment grade rated company with a Standard & Poor s rating of BBB. is currently the only dollar store company to be investment grade rated. is publicly traded on the New York Stock Exchange as DG with a market capitalization in excess of $22 billion. Website: www.dollargeneral.com Credit Rating: Investment Grade (S&P: BBB) Stock Symbol: NYSE: DG Market Capitalization: $22 billion Number of Locations: 12,500+ Headquarters: Goodlettsville, TN 19
Representative Photo I N V E S T M E N T S A L E S G R O U P One Broadway, Suite 300A Denver, CO 80203 303.962.9555 www.pinnaclerea.com Zach Wright, Associate Advisor Jeff Johnson, Principal