EXCLUSIVE OFFERING | $1,859,000

Rep Photo
EXCLUSIVE OFFERING | $1,859,000
Dollar general | S&P Rating BBBUS HIGHWAY 277 & Main Street, SEYMOUR, Texas
EXP DALLAS
214.522.7200
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
property. Relocation to brand new 12,480+ SF building on 2.71+ acres. Metal building with brick and glass storefront. Concrete parking lot.
lease structure. Corporate, 15-year, NNN lease beginning July 2013 with a 3% rent increase in year-11 and 10% at the beginning of each option.
location. Dollar General is located at Main Street (7,187 Cars / Day) and US Highway 277. Main Street spans the length of the city and bisects the downtown
area. US Highway 277 provides direct access to Lubbock, TX (Population: 233,740) to the west. As a result of this desirable location a 70-acre business park has
just been constructed. Retailers near the subject property include First National Bank, Mami Chula’s Mexican Restaurant, and PC’s Body and Paint.
Table of contents | Disclaimer
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT OVERVIEW
PAGE 4:
SITE PLAN
PAGE 5:
AERIAL PHOTO
PAGE 6:
LOCATION OVERVIEW
PAGE 7-8:
LOCATION MAPS
PAGE 9:
DEMOGRAPHICS
Disclaimer
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at the SEC of US Highway 277 & Main Street, Seymour, TX by the owner
of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is”
condition and Seller and Agent make no representations or warranties as to the accuracy of
the information contained in this Offering Memorandum. The enclosed materials include
highly confidential information and are being furnished solely for the purpose of review by
prospective purchasers of the interest described herein. The enclosed materials are being
provided solely to facilitate the prospective investor’s own due diligence for which it shall be
fully and solely responsible. The material contained herein is based on information and
sources deemed to be reliable, but no representation or warranty, express or implied, is
being made by Agent or Seller or any of their respective representatives, affiliates, officers,
employees, shareholders, partners and directors, as to the accuracy or completeness of the
information contained herein. Summaries contained herein of any legal or other documents
are not intended to be comprehensive statements of the terms of such documents, but
rather only outlines of some of the principal provisions contained therein. Neither the Agent
nor the Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
Investment overview
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
PRICE:
$1,859,000
NET OPERATING INCOME:
$118,943
BUILDING AREA:
12,480+ Square Feet
LAND AREA:
2.71+ Acres
YEAR BUILT:
Lease overview
Initial Lease Term:
15-Years, Plus 3, 5-Year Options to Renew
Projected Rent Commencement:
July 2013
Projected Lease Expiration:
July 2028
Lease Type:
Absolute NNN
2013 (Under Construction)
Rent Increases:
3% in Lease Year 11, 10% in Option Periods
OWNERSHIP:
Fee Simple Interest
Year 1-10 Annual Rent (Current):
$118,943
OCCUPANCY:
100%
Year 11-15 Annual Rent:
$122,511
CONSTRUCTION TYPE:
Concrete Parking Lot
Year 16-20 Annual Rent (Option 1):
$134,762
Year 21-25 Annual Rent (Option 2):
$148,238
Year 26-30 Annual Rent (Option 3):
$163,062
Metal Building
Brick & Glass Storefront
Tenant overview
Dollar General | www.dollargeneral.com | S&P Rating BBB- (upgraded from BB+ in April, 2012)
Cal Turner founded J. L. Turner & Son, Inc. in 1939, and opened the first Dollar General store in Scottsville, Kentucky in June 1955. Today, Dollar General
Corporation operates as the country’s largest small-box discount retailer with stores in the southern, southwestern, midwestern, and eastern United States. The
stores are typically located in local neighborhoods and small communities deemed “too small” for big-box retailers. Dollar General offers both name-brand and
generic merchandise—including off-brand goods and closeouts of name-brand items. Although it has the word “dollar” in the name, Dollar General is not a dollar
store. Many of its offerings are priced at more than one dollar. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60
dollars, not counting phone cards and loadable store gift cards. The company provides paper and cleaning products (paper towels, bath tissues, paper
dinnerware, trash and storage bags, laundry, and other home cleaning supplies), packaged food and perishables (cereals, canned soups and vegetables, sugar,
flour, milk, eggs, and bread), beverages, snacks (such as candies, cookies, crackers, salty snacks, and carbonated beverages), over-the-counter medicines,
personal care products (soap, body wash, shampoo, dental hygiene, and foot care products), pet supplies and pet food products, seasonal products (decorations,
toys, batteries, small electronics, greeting cards, and stationery) prepaid cell phones and accessories, gardening supplies, hardware, automotive, home office
supplies, home products (kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, and craft supplies, as well as kitchen,
bed, and bath soft goods), and casual, everyday apparel (for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers,
shoes, and accessories). Since the turn of the century, Dollar General has added stores that carry a greater selection of grocery items, which operate under the
name “Dollar General Market”.
In 2007 Kohlberg Kravis Roberts & Co. (KKR) acquired Dollar General, privatized the company for restructuring, and took the company public again in 2009. As of
March 1, 2013, Dollar General operated 10,557 stores in 40 states. The company ranks 183rd within the Fortune 500 Companies. Fiscal 2012 revenues
exceeded $16.02 billion (up 8.21% from 2011) with profits of $952.66 million (up 24.25% from 2010). The company’s current market value is estimated to be
$16.58 billion.
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SITE PLAN
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
4
Aerial photo
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
Seymour
Middle School
Seymour
High School
Seymour
Hospital
Sacred Heart
Catholic Church
Success
Realty
Trinity
Lutheran Church
Snyder Construction
Company & Metal
Previous Site
Main Street (7,187 Cars / Day)
Baylor County
Courthouse
PC’s Paint
& Body
Mami Chula’s
Mexican Restaurant
Ernie’s
River Mill
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Location overview
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
IMMEDIATE TRADE AREA
WICHITA FALLS, TX – LAWTON, OK MARKET AREA
Dollar General is located at Main Street (7,187 Cars / Day) and US Highway
277. Main Street spans the length of the city and bisects the downtown area.
US Highway 277 provides direct access to Lubbock, TX (Population: 233,740)
to the west. As a result of this desirable location a 70-acre business park has
just been constructed.
The Wichita Falls, TX – Lawton, OK Market Area is a 19-county area in Texas
and Oklahoma that are significantly economically integrated. This area has a
combined population of 434,327 and its principal cities are Wichita Falls, TX
(Population: 104,553) and Lawton, OK (Population: 98,177).
Retailers near the subject property include First National Bank, Mami Chula’s
Mexican Restaurant, and PC’s Body and Paint. The site is also near Trinity
Lutheran Church and Sacred Heart Catholic Church as well as the Baylor
County Courthouse.
SEYMOUR, TX
Seymour, TX is the county seat of Baylor County and is located 40-miles
southwest of Wichita Falls, TX. 7 highways connect in Seymour making it a
regional crossroads. Highways 82/114, 183, 283, and 277/82 are some of the
main arteries for the D/FW Metroplex, Abilene, Lubbock, Oklahoma, and
Wichita Falls.
Local businesses and residents enjoy of the lowest tax rates in the area. The
low 0.43981/100 rate is maintained, partly because the City of Seymour owns
the electrical and water facilities and distribution systems. As a result of lower
energy costs, savings are passed on to residential and business consumers of
the city. Potential savings on electrical costs has been the deciding factor for
larger businesses moving to Seymour. Healthcare is a significant economic
driver in Seymour. The city boasts enviable rural health care facilities.
Seymour Hospital has a Trauma level 4 designation at its 49-bed hospital. The
Seymour Hospital system also has 3 rural clinics. Seymour Hospital also has
the advantage of being located adjacent to the Vernon College Licensed
Vocational Nurse training facility. This campus provides the hospital with a
pool of talented labor that is unmatched in communities of a comparable size.
Seymour is primed to attract additional residents from the region due to the
Exemplary designation given to the Seymour Independent School District
(SISD). The SISD is in the top percentile of the state’s performance
achievements criteria. It has been recognized in Texas Monthly Magazine for
its academic excellence. The SISD has built new Middle and High School
campuses and became debt free in 2009.
Wichita Falls is located on the Texas side of the Texas-Oklahoma state line
approximately 100-miles northwest of the Dallas / Fort Worth Metroplex.
Wichita Falls historically has been centered around the oil and gas industry.
Today, Wichita Falls has a more diversified economy. While agriculture and the
oil and gas industry remain cornerstones of the regional economy, Wichita
Falls has emerged as a regional hub for all forms of commerce ranging from
the strong presence of manufacturing to regional health care services and
regional retail centers.
The Wichita Falls MSA houses a robust manufacturing sector, with many of
these companies having employment in excess of 100 persons. Large durable
goods manufacturing represents a major portion of the area’s employment
base including metal fabrication, industrial and commercial equipment, and
assorted plastic, glass, and fiberglass producers. This sector of the economy
generates almost $261 million in annual payroll, includes over 9% of the area's
total employment, and accounts for more than $933 million in gross sales
annually. Sheppard Air Force Base (SAFB) is the largest employer in the area
providing 14,807 jobs. The annual estimated combined economic impact of the
base on the community is $803 million.
Lawton is primarily centered on government, manufacturing and retail trade
industries. Lawton MSA ranks 4th in Oklahoma with Gross Metropolitan Product
of $4.2 billion produced in 2008 with a majority ($2.1 billion) in the government
sector. Fort Sill is the largest employer of jobs in Lawton, employing over 5,000
full-time employees. In the private sector, the largest employer is Goodyear
Tire and Rubber Company with 2,400 full-time employees. Major employers in
the Lawton area also include: Lawton Public Schools, Comanche County
Memorial Hospital, City of Lawton, Cameron University, and Assurant
Solutions. Lawton includes 2 major industrial parks. One is located in the
southwest region of town while the second is located near the Lawton-Fort Sill
Regional Airport.
6
Location map
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
7
Location map
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
8
Demographics
Dollar General
US HIGHWAY 277 & Main Street, SEYMOUR, Texas
DEMOGRAPHIC SNAPSHOT
Radius
1 Mile
3 Mile
5 Mile
2016 Projection
2,600
3,029
3,116
2011 Estimate
2,642
3,071
3,158
Population:
2010 Census
2,633
3,057
3,143
Growth 2011-2016
-1.60%
-1.40%
-1.40%
Growth 2010-2011
0.30%
0.50%
0.50%
2016 Projection
1,140
1,338
1,384
2011 Estimate
1,154
1,352
1,397
2010 Census
1,150
1,345
1,390
Growth 2011-2016
-1.20%
-1.00%
-0.90%
Growth 2010-2011
Households:
0.40%
0.50%
0.50%
Owner Occupied
792
925
958
Renter Occupied
363
427
440
2011 Avg Household Income
$40,050
$40,081
$40,132
2011 Med Household Income
$27,505
$27,587
$27,706
2011 Per Capita Income
$18,076
$18,108
$18,152
Income Less than $15,000
291
336
344
Income $15,000 - $24,999
240
285
295
Income $25,000 - $34,999
149
170
178
Income $35,000 - $49,999
178
210
217
Income $50,000 - $74,999
150
181
188
Income $75,000 - $99,999
64
74
78
Income $100,000 - $149,999
55
63
65
Income $150,000 - $199,999
19
21
21
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11
11
Sheppard Air Force Base, Wichita Falls, TX
2011 Households by Household Inc:
Income $200,000+
Cameron University, Lawton,OK
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