dollar general 51640 state road 19 elkhart in...from shopping and dining, to watching nascar racing...

D o l l a r G e n e r a l , E l k h a r t , I N | 1Dollar General5 1 6 4 0 S t a t e R o a d 1 9 | E l k h a r t , I N 4 6 5 1 4 O F F E R I N G M E M O R A N D U M

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2 | M a t t h e w s R e a l E s t a t e I n v e s t -

m e n t S e r v i c e s ™

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E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

k y l e m at t h e w sBROKER OF RECORDLIC # RC51700140

J o s h B i s h o p

VP & Director

[email protected] (214) 692-2289MOB (315) 730-6228LIC # 688810 (TX)


a n d r e w p e a s h

Associate


c h a d k u r z

SVP & National Director

[email protected] (214) 692-2927MOB (562) 480-2937LIC # 01911198 (CA)



• Strong operating history – Dollar General has been successful at this location since opening their doors in 2008

• Early lease renewal – In 2015 Dollar General extended their lease early through May 2025

• Dollar General put this site into their National Insurance Program; proving their commitment to the location

• Three, 5-year options all of which include a 10% increase in Options

• 3-mile population in excess of 19,545 residents

• 5-mile population in excess of 67,610 residents

• Strong average household income of more than $66,000 annually

• Located on State Route 19 which is one of the main roads running north-south through Elkhart

• Excellent retail synergy – local retail tenants include CVS, Walgreens, Starbucks, Walmart, Chase, ALDI, Applebee’s, Sherwin Williams, Planet Fitness, Subway, and many more

• Elkhart is located 15 miles east of South Bend and 80 miles northwest of Fort Wayne

• Strong Corporate Guaranty from Dollar General Corporation

• Dollar General is the only dollar store with investment grade credit; S&P rated BBB

i n v e s t m e n t h i g h l i g h t s

e x e c u t i v e s u m m a r y



D o l l a r G e n e r a l51640 State Road 19Elkhart, IN 46514

List Price ...................................................................................................................... $836,129

CAP Rate - Current ...........................................................................................................7.75%

Gross Leasable Area .............................................................................................. ± 9,100 SF

Lot Size ..................................................................................................................± 1.29 Acres

Year Built .............................................................................................................................2008

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current Rent $5,400.00 $64,800.00 $7.12 7.75%

Option 1 $5,940.00 $71,280.00 $7.83 8.53%

Option 2 $6,534.00 $78,408.00 $8.61 9.38%

Option 3 $7,187.50 $86,250.00 $9.47 10.32%

Tenant Summary

Tenant Trade Name Dollar General

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Owner Responsibility

Original Lease Term 10 years

Rent Commencement Date May 2008

Lease Expiration Date May 2025

Term Remaining on Lease ± 7.75 years

Increases 10% in Options

Options Three, 5-Year Options


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Te n a n t O v e r v i e wDollar General is the fast-growing retailer that boasts roughly 13,500 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company doesn’t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.

STRATEGYWith its small-box stores typically measuring some 9,100 sq. ft, Dollar General targets cost-conscious consumers that prefer easier and quicker access to items than at super-sized competitors such as Wal-Mart and Costco (which are also often much farther away). Indeed, Dollar General’s strategy of catering to the value conscious has paid off big, both during and after the recession. The discount retailer boasted its 26th consecutive year of same-store sales growth in 2016 (ended January), attributable to its value and convenience proposition.

OPERATIONSDollar General’s massive stores network is supported by 13 distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such as Bobbie Brooks and Fisher Price for clothing and Rexall for health and beauty aids.

GEOGRAPHIC REACHDollar General operates nearly 13,500 stores in 43 US states in 2015. About 10% of its stores are in Texas and another 20% are spread across Florida, Georgia, Ohio, and North Carolina.

Company Name Dollar General

Parent Company Trade Name Dollar General Corporation (NYSE: DG)

Ownership Public

Credit Rating (S&P) BBB

No. of Locations ± 13,500

No. of Employees ± 113,400

Headquartered Goodlettsville, TN

Website www.dollargeneral.com

Year Founded 1939


Oceanside Blvd ± 31,792

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Property Name Dollar General

Property Address 51640 State Road 19

Elkhart, IN 46514

Parcel 20-02-17-47-022.000-027

Zoning ZO01

Site DescriptionNumber of Stories One

Year Built 2008

Gross Leasable Area (GLA) ± 9,100 SF

Lot Size ± 1.29 Acres (± 56,410 SF)

Type of Ownership NN

Parking ± 38 Surface Spaces

Parking Ratio 4.18 : 1,000

p r o p e r t yo v e r v i e w

state road 19

ConstructionExterior Brick / Metal

Foundation Concrete Slab

Framing Steel

Roof Flat

Landscaping Professional


T E N A N T M A P

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D o l l a r G e n e r a l , E l k h a r t , I N | 1 1

e l k h a r t d e m o g r a p h i c s

POPULATION 3 Mile 5 Mile 7 Mile

2022 Projection 20,026 69,194 122,388

2017 Estimate 19,545 67,610 119,407

2011 Census 19,004 65,836 115,887

2000 Census 17,843 64,999 109,705

Percent Change: 2017 to 2022 2.46% 2.34% 2.50%


INCOME 3 Mile 5 Mile 7 Mile

2017 Est. Average Household Income

$65,838 $64,288 $65,521

Elkhart is a city in Elkhart County, Indiana, United States. Elkhart is a safe and family-friendly community affording a leisurely lifestyle within easy access of large metropolitan populations within a couple hours. Chicago, Indianapolis, and Lake Michigan are all just a short drive away for a range of activities from shopping and dining, to watching NASCAR racing or swimming at the Indiana Dunes. Many local colleges and universities add zest to the lifestyle and culture of the region. Elkhart is a great location for business and family.

The quality of life in Elkhart is one of its main attractions for businesses and their employees and managers. Located within 2 hours of Chicago, Elkhart County offers a vibrant live-work community without the hassle of big city living, and close proximity to the I-80/90 Interstate provides easy access to a range of nearby amenities. The city features magnificent homes, with large sites or river views, and the cost of living is much more affordable than in other parts of the country.

E l k h a r t, i n

POPULATION 3 Mile 5 Mile 7 Mile

2022 Projection 7,870 26,628 45,157

2017 Estimate 7,713 26,069 44,176

2011 Census 7,575 25,504 43,148

2000 Census 7,105 25,070 41,259




The city sits on the St. Joseph and Elkhart Rivers. The Elkhart River drains into the St. Joseph at Island Park just north of downtown. There are also numerous small lakes around the city.

Due to its proximity to the South Bend metropolitan area, the commercial sectors of the city are small. The city’s main shopping mall is the Concord Mall, located on the city’s south side. A second shopping mall, Pierre Moran Mall, was torn down in 2006 for a new development called Woodland Crossing. Many residents prefer to shop and dine in neighboring Mishawaka due to that city’s larger selection of stores and restaurants.

L O C AT I O N

Elkhart is best known for two industries: recreational vehicles and musical instruments. It has been referenced as the “RV Capital of the World” and the “Band Instrument Capital of the World” for decades. Other notable industries in Elkhart include; pharmaceuticals, electronic components, manufactured housing and mobile homes. Numerous manufacturers of musical instruments and accessories, of which most of the surviving companies have been absorbed into the Conn-Selmer conglomerate, have a long history in the city. Elkhart is also home to the Robert Young Rail Yards, which are the second-largest freight classification yards in the world.

Elkhart is home to many Recreational vehicle (RV) manufacturers, boat manufacturers, and van conversion companies, including Bennington Marine, Forest River Inc Hy-Line, Keystone, Skyline, Sun Valley, Travel Supreme, Thor Motor Coach, and many other manufacturers, including Gulf Stream, and Jayco can be found nearby in Goshen, Middlebury, Nappanee, and Wakarusa.

E C O N O M Y

R E G I O N A L M A P

SUBJECT PROPERTY

SUBJECT PROPERTY

L O C A L M A P

D o l l a r G e n e r a l , E l k h a r t , I N | 1 3

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dollar General located at 51640 State Road 19, Elkhart, IN 46514 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


e x c l u s i v e ly l i s t e d b y

Dollar General5 1 6 4 0 S t a t e R o a d 1 9 | E l k h a r t , I N 4 6 5 1 4

™

k y l e m at t h e w sBROKER OF RECORDLIC # RC51700140

J o s h B i s h o p

VP & Director


A n d r e w p e a s h

Associate


c h a d k u r z

SVP & National Director

[email protected] (214) 692-2927MOB (562) 480-2937LIC # 0911198 (CA)

dollar general 51640 state road 19 elkhart in...from shopping and dining, to watching nascar racing...

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