dollar general - nnn - ctbt.com · dollar general - nnn high-growth (753%) florida suburb rent...

Net Lease Investment Services

201 California Street, Suite 800 | San Francisco, CA 94111 | tel 415.781.8100 | fax 415.956.3381 | www.ctbtnnn.com | Lic #00825241

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

Dollar General - nnnHIGH-GROWTH (753%) FLORIDA SUBURBRENT INCREASES

One Of the WOrld’s MOst successful retailers •

- sales and Profits are skyrocketing

- credit rating Just increased - again

Price: $1,786,000 • — 7.75% cap rate

Best dollar General construction: all Masonry, not Metal•

New 15-Year NNN Lease, NOT A FLAT LEASE•

$73K Average Incomes•

File Photograph




Dollar General Lehigh Acres, Florida

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lOcatiOn Southeast corner of Lee Boulevard and Dallas Street, Lehigh Acres (Fort Myers),

Florida

lOt size Approximately 1.00 acres — 43,560+/- square feet

iMPrOveMents To be completed August 2011, a 9,100+/- square foot dOllar General retail

store. This is non-typical construction for this tenant; it is an all-masonry building.

lease Leased to dOllar General cOrPOratiOn for 15 years from August 1, 2011

until July 31, 2026. The annual net rent of $138,427 increases by 3% in Year 11.

The lease is absolute net with tenant responsible for taxes, insurance and general

maintenance expenses including roof, structure and parking lot. The tenant has

three 5-year options to renew with 10% rental increases each option period.

annual incOMe Years annual rent1-10 $138,427

11-15 $142,58016-20 (Option 1) $156,63821-25 (Option 2) $172,30226-30 (Option 3) $189,532

Price $1,786,000 — 7.75% cap rate

Price Per square fOOt

$196

rent Per square fOOt

$15.43 net per year - $1.29 net per month





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aBOut the tenant (financial)

dOllar General cOrPOratiOn has been in business since 1939 and its stock

is traded on the NYSE (Symbol: “DG”). Headquartered in a suburb of Nashville,

the company is a national discount variety chain operating 9,273 stores in 35

states as of October, 2010. Formerly privately held, the chain went public in

November, 2009. Dollar General is ranked #259 among Fortune 500 companies.

DG HAS MORE STORES THAN ANY OTHER RETAILER IN AMERICA.

For the fiscal year ended January 31, 2010, Dollar General reported annual

revenues of nearly $11.8 billion and net income of $339.4 million.

Net earnings in 2009 more than TRIPLED from the previous year. Same store sales

were up 9.5%(!!) in 2009, compared to 2008. And this was on top of a 9.0%

same store sales increase in 2008 compared to 2007.

For the nine months ended October 29, 2010, Dollar General’s revenue increased

10.9% to $9.54 billion (compared to the 39 weeks ended October 30, 2009), net

income increased 61% to $405.4 million and net worth was $3.82 billion.

In January 2011, DG announced it would add 625 new stores in 2011, with 6,000

new employees. Growth in 2010 added 5,000 new employees.

Dollar General is rated “BB” by Standard & Poor’s. It was upgraded for the second

time in eight months, in June 2010, to this rating.

aBOut the tenant (General BackGrOund)

The following is summarized from a recent company press release:

Dollar General Corporation has been delivering value to shoppers for more than

70 years. Dollar General helps shoppers ‘Save time. Save money. Every day!®’

by offering products that are frequently used and replenished, such as food,

snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and

seasonal items at low everyday prices in convenient neighborhood locations. In

addition to high quality private brands, Dollar General sells products from America’s

most-trusted manufacturers such as Proctor & Gamble, Kimberly-Clark, Unilever,

Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more

about Dollar General at www.dollargeneral.com





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dOllar stOres BeatinG uP On Wal-Mart

The four largest “dollar store” chains, by market cap, and annual sales are:

MARKET CAP ANNUAL SALESDollar General (tenant)• $10.15 billion $11.8 billionDollar Tree• $ 6.24 billion $ 5.2 billionFamily Dollar• $ 5.75 billion $ 7.4 billion99¢ Only• $ 1.31 billion $ 1.3 billion

All these are beating Wal-Mart handily. For the second quarter of 2010, all had

same-store sales up 6-7%. Wal-Mart same-store sales were down 1.4%. Recent

articles have emphasized this fact. Wal-Mart has asked its suppliers to follow the

dollar stores and “get cheaper” by downsizing the portions. Instead of a single bag

of candy at $2.00, please package it as two bags for $1.00.

From a recent internet article:

“{The dollar stores} have been revamping up service efforts and offerings •

{such as} Kraft brands.”

“• Another [advantage]...is location and operating cost. While Wal-Mart is

mostly suburban and rural-based, {dollar stores} can be tucked into strip

malls with low rent and overhead, {while Wal-Mart} requires giants swaths of

land.”

“• The Dollar General CEO said , ‘our difference is our low price in a convenient location.’”

From a page one article in the NY Times, September 22, 2010, entitled “In Hard Times, $1 Items Lure Shoppers, and Retailers Scramble”:

“Dollar stores have best been able to capitalize on the downmarket trend because of the strategies they embraced during the recession, when the stores kept things cheap and expanded their merchandise...shoppers often could not afford regular-size detergent [so] the [dollar] stores worked with manufacturers to create smaller packages which cost less...[a certain Dollar General shopper said the reason she goes to dollar stores instead of Wal-Mart is] ‘you don’t have the big crowds and it is cheap’...same store sales at the dollar stores have increased 10 straight quarters and declined at Wal-Mart five straight quarters...dollar stores have switched out merchandise like trinkets for necessities like food and detergent because consumers have really curtailed discretionary spending out of necessity.”





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site infOrMatiOn The site is located on the southeast corner of Lee Boulevard and Dallas Street, 1.5

miles east of State Route 82. It is about three blocks east of Alvin Avenue and

Westgate Boulevard. Lee Boulevard is a major east-west traffic commercial artery

connecting Fort Myers with Lehigh Acres.

One mile east of the site is a Publix anchored shopping plaza. Five miles west is

I-75, north to Tampa and south to Naples.

Other retailers in the area include Advance Auto Parts, Sweetbay Supermarket,

Walgreens, CVS, Blimpie's Sub, Subway, Dairy Queen, Wachovia and Fifth Third

Bank, to name a few.

Southwest Florida Airport is six miles south of the subject property. See below.

aBOut the area Lehigh Acres is a suburban community of approximately 80,000 residents, located

adjacent to the east soide of Fort Myers.

Located near Sanibel and Captiva Islands, this suburban community offers easy

access to the international airport, beaches, and a myriad of southwest Florida

attractions. With 175 miles of canals and 16 lakes, Lehigh Acres offers year-round

golf, freshwater fishing and other outdoor activities. The Gulf of Mexico and its

nearby barrier islands provide spectacular saltwater fishing.

Lehigh Acres is a part of the Cape Coral-Fort Myers Metropolitan Statistical Area,

which had an estimated 2009 population of 586,908.

The nearest major airport to Lehigh Acres is Southwest Florida International

Airport (RSW) located in Fort Myers. RSW is 20 minutes south of the subject

property. The airport serves the Fort Myers MSA and surrounding communities.

Southwest Florida Airport is served by a host of major and minor airlines. The major

connecting city is Atlanta, with 11 non-stop departures daily.





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deMOGraPhics 2009 estiMate 3-Mile 5-Mile 7-Mile

Population 29,736 56,792 122,771

Average HH Income $73,520 $68,262 $60,617

Growth 1990-2009 753% 357% 121%

The overall growth rate in the U.S. from 2000-2010 was 9.7%. This is a high

growth area!!!

nOte The information set forth herein has been received by us from sources we believe

to be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

flOrida





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5520 LEE BLVD & 801 ALASKA AVE LEHIGH ACRES FL 33971

Updated Summary Report (%) December 16, 2010

Coordinates Longitude: -81.745250

Latitude: 26.621070

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring

28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

Source: Pitney Bowes Business Insight Page 1 © 2010 Pitney Bowes Business Insight Copyright Troy, New York. All rights reserved. http://www.anysiteonline.com

POPULATION 1990 Total Population 3,486 12,421 55,675 2000 Total Population 8,168 20,986 72,5172009 Total Population 29,736 56,792 122,7712014 Total Population 34,151 63,744 129,941% Population Change 1990-2000 134.31% 68.96% 30.25%% Population Change 2000-2009 264.05% 170.62% 69.30%% Population Change 2009-2014 14.85% 12.24% 5.84%

HOUSEHOLDS 1990 Total Households 974 4,200 20,109 2000 Total Households 2,786 7,317 26,5542009 Total Households 11,307 21,415 48,1512014 Total Households 13,628 25,185 53,370% Households Change 1990-2000 186.04% 74.21% 32.05%% Households Change 2000-2009 305.85% 192.67% 81.33%% Households Change 2009-2014 20.53% 17.60% 10.84%

2009 RACE % 2009 White Population 74.95% 74.55% 64.86%% 2009 Black Population 12.91% 12.54% 19.44%% 2009 American Indian/Alaska Native 0.65% 0.61% 0.55%% 2009 Asian/Hawaiian/Pacific Islander 1.45% 1.49% 1.56%% 2009 Other Population (Incl 2+ Races) 10.04% 10.81% 13.60%

% 2009 Hispanic Population 19.42% 20.71% 23.58%% 2009 Non-Hispanic Population 80.58% 79.29% 76.42%





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5520 LEE BLVD & 801 ALASKA AVE LEHIGH ACRES FL 33971

Updated Summary Report (%) December 16, 2010

Coordinates Longitude: -81.745250

Latitude: 26.621070

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring

28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

Source: Pitney Bowes Business Insight Page 2 © 2010 Pitney Bowes Business Insight Copyright Troy, New York. All rights reserved. http://www.anysiteonline.com

INCOME2009 Per Capita Income $27,956 $25,740 $23,7742009 Median Household Income $47,749 $45,176 $39,9982009 Average Household Income $73,520 $68,262 $60,617

% 2009 Household Income < $10,000 3.13% 4.12% 6.54%% 2009 Household Income $10,000-$14,999 3.13% 4.32% 5.97%% 2009 Household Income $15,000-$19,999 4.27% 4.77% 6.49%% 2009 Household Income $20,000-$24,999 6.15% 6.26% 7.47%% 2009 Household Income $25,000-$29,999 6.38% 7.42% 8.23%% 2009 Household Income $30,000-$34,999 5.96% 6.55% 7.34%% 2009 Household Income $35,000-$39,999 9.35% 8.52% 7.95%% 2009 Household Income $40,000-$44,999 7.35% 7.77% 7.86%% 2009 Household Income $45,000-$49,999 7.79% 7.86% 6.71%% 2009 Household Income $50,000-$59,999 11.22% 11.92% 11.09%% 2009 Household Income $60,000-$74,999 15.41% 13.36% 11.39%% 2009 Household Income $75,000-$99,999 17.16% 13.92% 9.63%% 2009 Household Income $100,000-$124,999 1.11% 1.56% 1.59%% 2009 Household Income $125,000-$149,999 1.00% 0.89% 0.87%% 2009 Household Income $150,000-$199,999 0.19% 0.25% 0.28%% 2009 Household Income $200,000-$249,999 0.06% 0.12% 0.16%% 2009 Household Income $250,000-$499,999 0.34% 0.38% 0.41%% 2009 Household Income $500,000+ 0.00% 0.01% 0.01%

2009 Average Household Size 2.6 2.6 2.5% 2009 Total Owner Occupied Housing Units 82.00% 81.77% 71.11%% 2009 Total Renter Occupied Housing Units 18.00% 18.23% 28.89%

2009 Total Daytime Population 23,319 53,040 121,4272009 Total Daytime Work Population 10,522 25,573 59,9692009 Total Establishments 1,419 3,069 6,754

dollar general - nnn - ctbt.com · dollar general - nnn high-growth (753%) florida suburb rent...

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