dollar general with corporate guarantee ......play video actual building 2281 az-260, overgaard,...

PLAY VIDEOACTUAL BUILDING

2281 AZ-260, Overgaard, Arizona 85933

DOLLAR GENERAL WITH CORPORATE GUARANTEE LEASE | VERY STRONG REPORTED SALES

http://videos.boeveinvestmentservices.com/video/223656741

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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 Marcus & Millichap.

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. Marcus & Millichap has not made any investigation, and 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and

the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Confidentiality Agreement

Net Leased Disclaimer

P R E S E N T E D BY

L E A D B R O K E RKyle Blatt

AssociateONTARIO OFFICE

Tel: (909) [email protected]

CA License: 02017976

Kevin BoeveSenior Vice President Investments

ONTARIO OFFICETel: (909) 456-3450

[email protected] License: 01247016

Cliff DentonBroker of Record

PHOENIX OFFICETel: (602) 687-6700

AZ License: BR024565000

1 FINANCIAL OVERVIEWREPRESENTATIVE PHOTO

financial overviewannualized operating dataRent Increases Annual Rent Monthly Rent8/1/15 - 7/31/17 $67,605 $5,6348/1/17 - 7/31/20 (Current Rent) $69,405 $5,784Option 1 (5 Years) $81,780 $6,815Option 2 (5 Years) $89,964 $7,497Option 3 (5 Years) $98,964 $8,247Tenant Reimbursement $909Base Rent ($0.79/SF) $69,405Net Operating Income $69,405

pricingProperty Name Dollar GeneralProperty Address 2281 AZ-260

Overgaard, AZ 85933Price $770,000Cap Rate 9.01%Gross Leasable Area 9,014 SFYear Built 2005Lot Size 1 Acres

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0080538 2

tenant overviewTenant Trade Name Dollar GeneralOwnership PublicTenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type Modified Net LeaseRoof and Structure Landlord ResponsibleLease Term 5 YearsLease Commencement Date 8/1/2005Rent Commencement Date 8/1/2005Lease Expiration Date 7/31/2020Term Remaining on Lease 3 YearsIncreases 10% Increase For Each OptionOptions Three, Five-Year Options

financing optionsMultiple financing options are available based on buyer requirements. Please contact listing agents to discuss options in detail.

3-Year Fixed 3.70%5-Year Fixed 4.0%7-Year Fixed 4.25%10-Year Fixed 4.6%

2 EXECUTIVE SUMMARYACTUAL BUILDING


Marcus & Millichap is pleased to exclusively market for sale a Dollar General in Overgaard, Arizona. The Dollar General has been a staple in the town since 2005 and is showing commitment to the location through a recent extension to the lease, which expires July 31, 2020. It is the only Dollar General in town and the next Dollar General is 29 miles away.

With no nearby competition within 30 miles, this is a unique opportunity to acquire an investment with high return and strong corporate guarantee. The lease is guaranteed by Dollar General Corporation, which is publicly traded on the New York Stock Exchange under the ticker “DG” and has a current “BBB” credit rating by Standard & Poors.

Situated 144 miles north of Phoenix, Arizona, Heber-Overgaard is a census-designated place in Navajo County, Arizona. Tourism, retirement, and timbering are the foundations of Heber-Overgaard’s economy.

· Virtually Zero Nearby Competition Nearby | Nearest Competitor is 30 Miles Away

· Location Has Been in Successful Operation For 12 Years

· Modified Net Leased Investment Opportunity With Minimal Landlord Responsibilities | Two, Five-Year Options With 10 Percent Rent Increases Remaining

· Excellent Street Visibility | Dollar General Site is Located on Arizona State Route 260, Major East-West State Highway in Arizona

· Dollar General is the Nation’s Largest Small-Box Discount Retailer With Over 13,000 Locations in 40 States

· Standard & Poor’s Investment Grade (S&P. “BBB”) Tenant | The Only Small-Box Retailer With Invest-ment Grade Credit

· Dollar General Has $17.5 Billion in Sales Volume and is Ranked #128 in Fortune 500

· Perfect Investment For First Time Investor | Seasoned Investor Adding to a Portfolio | Local or Re-gional Investor or 1031 Investor From Out of The Area

investment highlights

investment overview

5 MILES 10 MILES 15 MILES2016 Population 3,735 4,037 4,6422016 Households 1,679 1,837 2,2072016 Average Household Size 2.17 2.21 2.26

2016 Owner Occupied Housing Units 84.10% 83.82% 83.50%2016 Renter Occupied Housing Units 4.93% 5.05% 5.16%

2016 Average Household Income $49,255 $48,995 $48,951

ACTUAL BUILDING

5 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0080538

dollar general

Dollar General (NYSE: DG) is a chain of more than 13,000 discount stores in 43 states, primarily in the South, East, Midwest, and Southwest, offering basic household items, such as cleaning supplies, health, and beauty aids, apparel, and food. The target is low, middle, and fixed-income shoppers.

The company has grown into the country’s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General’s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than other retailers and is easily the largest dollar store chain.

The company ranks 139th on the Fortune 500 list. Fiscal 2016 revenues exceed $20.3 billion with a net income of $1.17 billion, and net worth of $5.3 billion.

In July 2015, Family Dollar was acquired by Dollar Tree and ceased to be a public company.

Dollar Tree took on billions of dollars of debt to acquire Family Dollar, and that negatively impacted the credit rating of both companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, no longer issues separate financial statements.

The best-known rating agency, Standard & Poor’s, downgraded Family Dollar in July, alongside Dollar Tree having already been downgraded.

The combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt, hence the lower credit rating.

Dollar General is now the only dollar store chain with an investment grade rating. Dollar General has been credit-upgraded five times since going public in 2009, most recently in October 2015. It is now “BBB.”

DOLLAR GENERAL IS THE COUNTRY’S LARGEST SMALL-BOX DISCOUNT RETAILER

Company Type:PUBLIC (NYSE: DG)

Fiscal 2016 Sales$22 BILLION

S&P 500 Credit Rating“BBB”

2017 Fortune 500#128

Number of Stores13,000+

The Three Largest Discount Store Chains, Ranked by 201 Revenue Are:Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+

dollar general in the newsDollar General is Starting to Look a Lot Like WalmartDoling Out Pay Increases to ManagersIt’s no longer enough for retailers to compete on price alone. To improve the cleanliness and availability of products in its stores, Dollar General will take a 16 cents per share hit to boost compensation for its managers and ramp up their training. In the stores where it’s already rolled out these changes, Dollar General has seen lower turnover among managers and hourly employees, CEO Todd Vasos said on the company’s earnings call. It’s also seen higher sales in those locations. This decision follows Walmart’s $2.7 billion investment into better training and pay for its employees, which it has credited for higher customer service scores.

Investing in Lower PricesThere’s an all-out price war happening across retail. That includes both Dollar General and Walmart. Shortly after Walmart said it would move faster to lower prices, Dollar General rolled out price cuts on hundreds of items across 17 percent of its stores. “These locations have performed better than the chain average ever since,” Vasos said. While the company will continue monitoring prices, it doesn’t anticipate further price cuts at this time, the CEO said.

Bringing in Fresh ProduceDollar General’s food offering has traditionally skewed toward packaged goods. But as its customers ask for healthier options, the retailer sees more opportunity in perishable items. The company is already testing fresh produce in some of its stores, including the 41 locations it purchased from Walmart last year after it shuttered the express format. Dollar General will now expand that pilot to some of its smaller shops. Walmart has made fresh produce a key piece of its turnaround plan, as it drives more frequent visits from shoppers. While Vasos acknowledged there’s stiff competition in fresh food, he said the company’s massive fleet and small shops give it a competitive advantage.

Going Smaller Dollar stores are already a fraction the size of a Walmart Supercenter. But as Dollar General peppers the United States with new shops, it’s making those locations smaller. The company plans to open an additional 160 small shops this year. At 6,000-square feet, these locations cater to central metropolitan and rural areas. That will bring the total number of these shops to 250. Meanwhile, Dollar General is testing an even smaller 3,600-square-foot store that serves millennials living in urban areas. The expansion of these stores comes as Walmart grows its Neighborhood Market footprint.

Making a Bigger Bet on DigitalDollar General lags much of the retail industry when it comes to digital commerce, but the chain is putting a bigger em-phasis on technology. Though Vasos was mum on specifics, the decision comes as more low-income consumers purchase mobile devices, the CEO said. Becoming more digitally savvy should also help Dollar General attract millennial shoppers, whom Vasos says are playing a bigger role in its sales. Walmart has also been rolling out upgrades to its website and mo-bile technologies, including the ability for shoppers to pay directly from its app.


Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+

3 PROPERTY DESCRIPTIONACTUAL BUILDING

terrace eateries

location2281 AZ-260Overgaard, Arizona 85933

siteThe subject property has frontage along Trevor Way and Ari-zona State Route 260.

square footageThe building square footage is-square feet and the lot size is two acres.

year builtThe property was built in 2005.

traffic countsArizona State Route 260 has traffic counts of over 7,000 cars per day.

Arizona Sta

te Route 26

0


parcel overview


site plan

11 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0080538

BIG PINE RESORTVACATION RENTALS OF LOG CABINS

Trevor

Way

MOGOLLON

Arizona State Route 260 - 7,058 Cars Per Day

PINE MEADOWSCOUNTRY CLUB

Within Five-Mile Radius3,873 Residents1,744 Households$44,059 - Average Household Income

terrace eateries


Arizona State Route 260 - 7,058 Cars Per Day

BIG PINE RESORTVACATION RENTALS OF LOG CABINS

MOGOLLON

PINE MEADOWSCOUNTRY CLUB

Nearest Competitors to Dollar General Location:Walmart - 33 Miles AwayDollar General - 29 Miles AwayDollar Tree - 35 Miles Away

3-Star Hotel With 18 Rooms

55+ Community With60 Units

P R E S E N T E D BY

L E A D B R O K E RKyle Blatt

AssociateONTARIO OFFICE

Tel: (909) [email protected]

CA License: 02017976

Kevin BoeveSenior Vice President Investments

ONTARIO OFFICETel: (909) 456-3450

[email protected] License: 01247016

Cliff DentonBroker of Record

PHOENIX OFFICETel: (602) 687-6700

AZ License: BR024565000

ACTUAL BUILDING

dollar general with corporate guarantee ......play video actual building 2281 az-260, overgaard,...

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