frazier park, california

CONFIDENTIAL OFFERING MEMORANDUM
FRAZIER PARK, CALIFORNIA
● SINGLE-TENANT NNN INVESTMENT
● NEW 15-YEAR LEASE TERM
● NEW 2016 CONSTRUCTION
EXCLUSIVELY LISTED BY:
JOSIAH BYRNES
+1.719.243.6569
[email protected]
KLINTON LEWIS
+1.512.819.4729
[email protected]
- DOLLAR GENERAL OFFERING MEMORANDUM - FRAZIER PARK, CALIFORNIA
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CONTENT
3
PROPERTY AND LEASE DETAILS
4
TENANT PROFILE
12
DEMOGRAPHICS
5
PROPERTY PHOTOGRAPHS
13
CONTACT
7
ELEVATIONS & SITE PLANS
9
LOCATION OVERVIEW
CONFIDENTIALITY
The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Embree Group and should
not be made available to any other person or entity without the written consent of Embree Group (the Embree Group collectively refers to Embree Capital Markets
Group, Inc., Embree Asset Group, Inc., Embree Healthcare Group, Inc., and Embree Construction Group, Inc.). This Brochure has been prepared to provide summary
information to prospective investors and to establish a preliminary level of interest in establishing an investment relationship with Embree, which may or may not
include the sale or purchase of any specific property referenced herein. Several Embree Group employees are licensed real estate agents and brokers in various states.
The subject property is currently under construction and photos shown herein are representative only. The information contained herein is not a substitute for a thorough due
diligence investigation. Embree Group has supplied information in this Brochure from sources we believe are reliable; however, all potential Buyers and Investors must take
appropriate measures to investigate and verify the income and expenses for any specific property, the future projected financial performance of any specific property, the size and
square footage of any specific property and its improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal
regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continue its
occupancy of any specific property.
Embree Group reserves the right to withdraw this solicitation at any time without prior notice. The information contained herein is based upon sources deemed to be reliable, but
the accuracy of the information is not guaranteed, nor should the information contained herein be considered all inclusive. Statements contained herein which involve matters of
opinion, whether or not identified to be that only, are not representations of fact. The price and terms of this offering may be subject to change at any time.
- DOLLAR GENERAL OFFERING MEMORANDUM - FRAZIER PARK, CALIFORNIA
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PROPERTY AND LEASE DETAILS
THE OFFERING
PROPERTY ADDRESS
3521 Mt. Pinos Way, Frazier Park, California, 93225
TENANT
Dolgen California, LLC
GUARANTOR
Dollar General Corporation
SITE DESCRIPTION
BUILDING SIZE
Approximately 9,026 rentable square feet
LAND SIZE
CONSTRUCTION TYPE
PROTOTYPE PHOTO
Approximately 0.87 acres
Structural steel and split-face concrete masonry
INVESTMENT SUMMARY
OFFERING OVERVIEW
ASSET CLASS
Embree Capital Markets Group is pleased to offer for sale a high-quality, singletenant, net-leased discount retail asset. The property will be newly built in 2016
and is being offered free and clear of any debt. It is a unique opportunity for
an investor to acquire a well-located, investment-grade, credit-tenant asset in a
desirable California geography.
AREA DESCRIPTION
Frazier Park is located in Kern County in California, approximately 80 miles
Northwest of Los Angeles, California and 45 miles south of Bakersfield, California.
According to the 2010 United States Census Bureau, the city has a total area of
5.07 square miles and a population of approximately 2,691 citizens. Frazier Park
sits just 10 miles West of Interstate 5, within Cuddy Canyon in the San Emigdio
Mountains. Frazier Park attracts visitors with its scenic trails for hiking, biking,
and off-road vehicles. Just minutes away from the subject property, a recent
beautification project has been completed in the center of downtown Frazier
Park and a new 10,000 square foot public library opened in October of 2011.
ANNUAL RENT
CAP RATE
PURCHASE PRICE
Single-tenant, net-leased retail
$140,412
6.00%
$2,340,000
EST. COMMENCEMENT
July 18, 2016
EST. LEASE END
July 31, 2031
PRIMARY LEASE TERM
LEASE TYPE
LEASE ESCALATIONS
RENEWAL OPTIONS
- DOLLAR GENERAL OFFERING MEMORANDUM - FRAZIER PARK, CALIFORNIA
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15 years
NNN (no landlord responsibilities)
10% during each option period
Three 5-year options
TENANT PROFILE
•
Dollar General Corporation (NYSE: DG) is the nation’s largest “smallbox” discount retailer, operating over 12,480 stores in 40 states as of
March 2016.
•
Based in Goodlettsville, Tennessee, the company was founded in 1939
and has weathered 12 technical recessions.
•
The company makes shopping for everyday needs simpler and hassle
free by offering a carefully edited assortment of the most popular
brands at low everyday prices in small, convenient locations. Dollar
General ranks among the largest retailers of top-quality brands made
by America’s most-trusted manufacturers, such as Procter & Gamble,
Kimberly Clark, Unilever, Kellogg’s, General Mills and Nabisco.
•
Most of the company’s products are priced at $10 or less, with
approximately 25% priced at $1 or less. Consumables is their largest
category and includes paper and cleaning products, food (including
packaged and perishables), beverages and snacks, health and beauty
products, and pet supplies.
•
Dollar General Corporation (NYSE: DG) has experienced 26 consecutive
years of same-store sales growth (2.8% over 2014).
•
Dollar General was ranked #139 in the Fortune 500 in 2016 (#159 in
2015), with over $22.4 billion in sales (7.7% increase from 2014).
•
Moody’s recently upgraded Dollar General Corporation’s credit rating
from Baa3 to Baa2 on June 1, 2016.
PROTOTYPE PHOTO
INVESTMENT SUMMARY
COMPANY TYPE
PUBLIC (NYSE: DG)
2014 REVENUE
$22.4 billion+
STORE COUNT
12,480+
EMPLOYEES
113,400+
S&P CREDIT RATING
BBB
WEBSITE
www.dollargeneral.com
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PROPERTY PHOTOGRAPHS
EXTERIOR PROTOTYPE
PROTOTYPE
PROTOTYPE PHOTO
PHOTO
- DOLLAR GENERAL OFFERING MEMORANDUM - FRAZIER PARK, CALIFORNIA
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PROPERTY PHOTOGRAPHS
PROTOTYPE PHOTO
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INTERIOR PROTOTYPE
ELEVATIONS & SITE PLANS
SITE PLANS
9,026 SF
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ELEVATIONS & SITE PLANS
ELEVATIONS
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LOCATION OVERVIEW
STATE CONTEXT
REGIONAL CONTEXT
FRAZIER PARK, CA
FRAZIER PARK, CA
DISTANCE FROM
FRAZIER PARK TO:
LOS ANGELES
75 miles
SANTA BARBARA 108 miles
BAKERSFIELD
46 miles
VENTURA
77 miles
LAS VEGAS
291 miles
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LOCATION OVERVIEW
AREA CONTEXT
LEBEC
67K VPD
3.8 Miles
FRAZIER PARK
4K VPD
2K VPD
5K VPD
1K VPD
Martin’s Garage
Alpine Ready Mix
JTS Truck Repair
Starcycle USA
FAS Automotive
Alice’s Attic
Los Pinos Mexican
K = Thousand
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VPD = Vehicles Per Day
LOCATION OVERVIEW
CITY CONTEXT
3.8 Miles
FRAZIER PARK
2K VPD
1K VPD
4K VPD
5K VPD
1K VPD
K = Thousand
Interstate Auto Center
Cendecon
Frazier Park Public Utility
Frazier Park Public Library
US Post Office
Frazier Park Market
Don’s Liquor Mart
Good Neighbor Pharmacy
La Siena Mexican
Frazier Park Hardware & Lumber
Frazier Park Elementary
Falcon’s Nest
The Red Dot Vegetarian Kitchen
Big John’s
Teaya Feed & Animal Supply
Caterpillar Toy’s, Gifts & Balloons
Coffee Cantina
Phantom Screens
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VPD = Vehicles Per Day
DEMOGRAPHICS
Estimated Population (2016)
2,942
3,555
5,664
Projected Population (2021)
3,155
3,814
6,073
Census Population (2010)
2,707
3,299
5,320
Projected Annual Growth (2016-2021)
213 (1.5%)
259 (1.5%)
408 (1.4%)
Historical Annual Growth (2010-2016)
235 (1.4%)
256 (1.3%)
344 (1.1%)
Estimated Households (2016)
1,215
1,474
2,298
Projected Households (2021)
1,299
1,575
2,454
Census Households (2010)
1,102
1,348
2,129
Projected Annual Growth (2016-2021)
84 (1.4%)
102 (1.4%)
156 (1.4%)
Historical Annual Change (2000-2016)
286 (1.9%)
338 (1.9%)
536 (1.9%)
2.4
2.4
2.5
Housing Units Owner-Occupied
758 (62.4%)
935
1,516
Housing Units Renter-Occupied
457 (37.6%)
538
782
Average Household Size
Total Population
2,942
3,555
5,664
White
2,430
2,946
4,621
Black or African American
29 (1.0%)
33 (0.9%)
52 (0.9%)
American Indian or Alaska Native
39 (1.3%)
50 (1.4%)
97 (1.7%)
Asian
45 (1.5%)
55 (1.5%)
94 (1.7%)
3 (0.1%)
3 (0.1%)
3 (0.1%)
Other Race
257 (8.7%)
301 (8.5%)
522 (9.2%)
Two or More Races
139 (4.7%)
168 (4.7%)
274 (4.8%)
Hawaiian or Pacific Islander
HOUSEHOLD INCOME
5 MILE
HH INCOME DIST.
3 MILE
DAYTIME
RACE/ETHNICITY
HOUSEHOLDS
POPULATION
1 MILE
1 MILE
3 MILE
5 MILE
Est. Average HH Income (2016)
$55,950
$56,641
$57,500
Projected Average HH Income (2021)
$62, 453
$63,252
$64,511
Est. Median HH Income (2016)
$43, 048
$42,211
$40,194
Projected Median HH Income (2021)
$46,382
$45,596
$43,584
Est. Per Capita Income (2016)
$23,107
$23,477
$23,325
Projected Per Capita Income (2021)
$25,719
$26,126
$26,067
HH Income $200,000 or More
33 (2.7%)
37 (2.5%)
59 (2.6%)
HH Income $150,000 to $199,999
23 (1.9%)
27 (1.8%)
42 (1.8%)
HH Income $125,000 to $149,999
55 (4.5%)
85 (5.8%)
132 (5.7%)
HH Income $100,000 to $124,999
55 (4.5%)
71 (4.8%)
130 (5.7%)
HH Income $75,000 to $99,999
82 (6.8%)
106 (7.2%)
187 (8.2%)
HH Income $50,000 to $74,999
306 (25.2%) 341 (23.1%) 469 (20.4%)
HH Income $25,000 to $49,999
342 (28.1%) 397 (27.0%) 609 (26.5%)
HH Income $0 to $24,999
320 (26.2%) 409 (27.8%) 668 (29.1%)
Total Businesses
98
123
224
Total Employees
432
639
2,318
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FRAZIER PARK, CALIFORNIA | OFFERING MEMORANDUM
EXCLUSIVELY LISTED BY:
JOSIAH BYRNES | VICE PRESIDENT
[email protected] | +1.719.243.6569 | www.EmbreeGroup.com
KLINTON LEWIS | ASSOCIATE NET LEASE SERVICES
[email protected] | +1.512.819.4729 | www.EmbreeGroup.com
ABOUT EMBREE
The Embree Group of Companies provides nationwide turnkey real estate services, specializing
in build-to-suit development, design/build, general construction, program management, and
capital markets for specialty retail, financial, automotive, restaurant, pharmacy, and medical
facilities. Embree’s fully integrated, in-house services allow us to become an extension of
the tenant’s organization. Since 1979, Embree’s foundation has been built on developing
tailored programs for 300+ national clients. The firm is headquartered near Austin, Texas,
with regional offices located in Arizona, Colorado, and California. Over the past 35 years,
Embree’s executive team has developed, built, or transacted more than 10,000 assets in
all 50 states, Canada, and Puerto Rico with a total market value in excess of $10 billion.
- DOLLAR GENERAL OFFERING MEMORANDUM - FRAZIER PARK, CALIFORNIA
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