Dollar General • Absolute NNN

PHOTO
Representative Photo (Not Actual Store)
Dollar General • Absolute NNN
Calabash (Myrtle Beach MSA), NC
*Listed as a Limited Nonresident Commercial Real Estate Licensee #LC 470 in affiliation with
NC Broker Charles Neil #190508 of Divaris Real Estate.
Disclaimer | Confidentiality
This Offering Memorandum has been prepared by District Real Estate Advisors for use by a limited number of parties and does not purport to provide a
necessarily accurate summary of the Property or any of the documents related thereto, nor does it claim to be all-inclusive or to contain all the information
which prospective investors may need or desire. All projections have been developed by District Real Estate Advisors and designated sources and are based
upon assumptions relating to the general economy, competition and other factors beyond the control of the Seller, and are, therefore, subject to variation. No
representation is made by District Real Estate Advisors as to the accuracy or completeness of the information contained herein, and nothing contained herein
is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to
be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence
in verifying all such information. Further to this, District Real Estate Advisors and its employees disclaim any and all liability for representations and warranties,
expressed and implied, contained herein, or for omissions from the Memorandum or any other written or oral communication transmitted or made available to
the recipient. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest
confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject
property at this time, please return this offering memorandum to District Real Estate Advisors. The information contained in the following offering memorandum is
proprietary and strictly confidential. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective
purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property
or Seller since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are
solely the responsibility of the prospective purchaser. District Real Estate Advisors makes no warranty or representation with respect to the income or expenses
for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence
or absence of contaminating substances, PCBs or asbestos, the compliance with local, 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 the subject property. The
information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, District Real Estate Advisors has not
verified, and will not verify, any of the information contained herein, nor has District Real Estate Advisors conducted any investigation regarding these matters and
makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate
measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Table of Contents
Property Information Overview & Highlights
4
Area Overview5
Tenant Overview6
Location Map & Demographics7
Aerial8
Site Plan9
Contact10
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
*Representative Photo (not actual store)
Lease Abstract
89 Hickman Road Calabash, NC 28467
Investment Highlights
• Absolute NNN
• Brand New 15 Year Lease
• Myrtle Beach MSA
• Strong Traffic on US-17 at 22,000 ADT
• Population is 17,000+ in 5 Mile Radius
• Corporate Guarantee
• S&P Credit Rating: BBB• Ideal Investor/1031 Exchange Property
Property Overview
Brand new 2016 construction, ideally located on
a 4.06 acre parcel, directly on Hickman Road and
US-17. Traffic is strong at 22,000 ADT as US-17
serves as the main connector (from destinations
North) heading to Myrtle Beach and (from
destinations South) heading to Wilmington. The
property is surrounded by multiple top notch
residential developments and there are more
than 20 award winning golf courses within 5
miles. The Ocean Ridge Plantation, which offers
90 holes of championship golf, is southeastern
North Carolina’s most exclusive and luxurious golf
and beach community. The area is growing quickly
and the property is also within the Myrtle Beach
MSA, which in 2014 was the 2nd fastest growing
MSA in the nation.
Price
$1,872,000
CAP
6.30%
NOI
$117,927 (years 1-15)
Options
5 x 5 year options
10% Rent Increases in Each
Building Size
9,100 +/- square feet
Land Area
4.06 +/- acres
Construction Completion
6/8/16*
Lease Commencement Date 6/8/16*
Lease End Date
6/30/2031*
Tenant/Guaranty
Dollar General (NYSE: DG)
Lease Type
NNN
*Projected
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Area Overview
Calabash is a coastal community located in Brunswick County North
Carolina, on the southernmost edge of the state. Brunswick County has a
population of 118,836 had a 10.6% population growth rate between 2010
and 2014. This ranked 50 out of the top 100 counties on a nationwide
list. It is famous for its Calabash Seafood and is known as “The Seafood
Capital of the World”. Just 25 miles north of Myrtle Beach, Calabash is
part of the Myrtle Beach MSA. In 2014, Myrtle Beach MSA area ranked
as the 2nd fastest-growing MSA in the nation with a one year population
increase of more than 12,000 people. Myrtle Beach is considered the
#1 Family Beach in America and is one of the most popular destinations
on the East Coast. The metro area had 417,668 residents which was an
increase of 41,000 since 2010. The surrounding Calabash area enjoys
year round moderate temperatures and is known for its golf, beaches,
fishing and comfortable lifestyle. It has been voted on e of the Top 50 Golf
Communities in the US and there are over 20 golf courses within 5 miles.
There are several award winning gated communities in the immediate
area of the property. The Brunswick Plantation and Golf Resort is directly
across the street with over 1,000 homes and 1,800 homeowners. Carolina
Shores sits just South and has over 1,200 properties. The Ocean Ridge
Plantation, which offers 90 holes of championship golf, is southeastern
North Carolina’s most exclusive and luxurious golf and beach community.
Living Southern and Where to Retire named is “One of the Top 100
Communities in America”.
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Tenant Profile
• Ranked #159 on the Fortune 500
• “Investment Grade” S&P Credit Rating: BBB• Full Year - Net Sales Increased 7.7%, Same-Store Sales Increased 2.8%
• Fourth Quarter - Net Sales Increased 7.0%, Same-Store Increased 2.2%
• Gross Profit Rate was 31% of sales in 2015, compated to 30.7% in 2014
• Net Income was $1.17 Billion for Fiscal Year 2015, compared to net income of $1.07 Billion in 2014
Dollar General is the largest “small box” discount retailer
in the United States. Headquartered in Goodlettsville,
TN, the company was established in 1939. As of January
29, 2016, there are 12,483 stores with more than
100,000 employees, located across 43 states. Dollar
General has more retail locations than any retailer in
America. The Dollar General store format has typically
been in rural and suburban markets, now they are
expanding into more densely populated areas. Opening
over 650 stores in 2013. The Dollar General strategy
is to deliver a hassle-free experience to consumers,
by providing a carefully edited assortment of the most
popular brands in both retail and consumer products.
The company launched a successful IPO in 2009
(NYSE: DG). In March, 2014 Dollar General reported
records sales, operating profit and net income. For the
first quarter 2015 same store sales increased 3.7%, Net
Sales increased 8.8% to $4.92 Billion. Over $600 million
of capital was returned to shareholders through shares
repurchased and dividends paid in the quarter. Gross
profit as a percentage of sales was 30.5% in the 2015
first quarter. This was an increase of 45 basis points
from 2014 first quarter. In March 2015, Dollar General
reported fourth quarter results for fiscal year 2015 and
net income was $376 million, compared with $355 million
in 2014 fourth quarter. It was also the 26th consecutive
year that DG delivered positive same-store sales
growth. Net Sales increased to $5.29 Billion in fourth
quarter compared to $4.94 Billion in 2014 fourth quarter.
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
LOCATION MAP & DEMOGRAPHICS
Demographics Snapshot
Population
1 mile
3 mile 5 mile
1,557
9,579 17,365
Avg. HH Income $60,941 $58,240 $61,592
Average Daily Traffic (ADT)
US-17 (Hickman Road)
US-17 (The Farm @ Brunswick)
22,000 ADT
16,000 ADT
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Aerial
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Site Plan
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. References to square footage or
age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Tim Bulman
617.448.5616
[email protected]
Christopher Mearn
617.595.1544
[email protected]
Greg Feroli
617.943.2272
[email protected]
*Listed as a Limited Nonresident Commercial Real Estate Licensee #LC 470 in affiliation with NC Broker Charles Neil #190508 of Divaris Real Estate.
District Real Estate Advisors
867 Boylston Street | Floor 5
Boston, MA 02116
Office: 857.284.7971