new nnn dollar general - capital pacific · the now combined dollar tree-family dollar entity has...

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New NNN Dollar General metro area For more info on this opportunity plse conct: Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. JOHN ANDREINI jandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360 RICK SANNER rsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433 BOB SANNER bsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657 342 US-6, Ashland, NE 68003 the only investment grade dollar store chain CHRIS PETERS cpeters@capitalpacific.com | (415) 274-2703 CA BRE# 01339983 In conjunction with NE Licensed Broker: Jamison Whiston, WRK Real Estate, LLC 402-817-4486| [email protected] $70K incomes Brand new construction rent increase in base term omaha msa REPRESENTATIVE PHOTO

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New NNNDollar Generalmetro area

For more info on this opportunity please contact:

Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.

JOHN [email protected] | (415) 274-2715 CA BRE# 01440360

RICK [email protected] | (415) 274-2709 CA BRE# 01792433

BOB [email protected] | (415) 274-2717 CA BRE# 00869657

342 US-6, Ashland, NE 68003

the only investment grade dollar store chain

CHRIS [email protected] | (415) 274-2703 CA BRE# 01339983

In conjunction with NE Licensed Broker: Jamison Whiston, WRK Real Estate, LLC402-817-4486| [email protected]

$70K incomesBrand new constructionrent increase in base termomaha msa

REPRESENTATIVE PHOTO

Representative Photos

DOLLAR GENERAL | 2

NEW NNN DOLLAR GENERAL IN ASHLAND, NE Investment HighlightsThe recently opned subject property is located in Ashland, Nebraska. It is about 30 miles from downtown Omaha and part of the Omaha MSA. It is also just 30 miles from Lincoln, the location of the state capital and the University of Nebraska. There is a significant US Air Force museum in Ashland.

RENTABLE SF . . . . . . . . . 9,002 SF

YEAR BUILT . . . . . . . . . . September 2015

PRICE . . . . . . . . . . . .$1,400,000CAP RATE . . . . . . . . . . . . 6.50%

LEASE TYPE . . . . . . . . . . NNN

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INVESTMENT GRADE CREDIT

Dollar General’s credit is BBB- and the company’s credit rating has been raised four times since

2009. Dollar General has a better credit rating than both of its large competitors (See more

information later in this offering)

STRONG TENANT

During fiscal 2014, Dollar General opened about 700 new stores and will open about

730 in fiscal year 2015. In 2016, Dollar General anticipates more openings than 2015;

probably more than 800

Dollar General has more stores (12,200+) than any other dollar store in the country and

is currently the largest dollar store chain

In the 6 years since going public in late 2009, the Dollar General stock price has more

than tripled (from $21 to $70)

LEASE HIGHLIGHTS

Fifteen year NNN lease with options with rent increase in intial term

Parent company guaranteed (NYSE: DG)

Guarantor is “investment grade” (see above) DOLLAR GENERAL | 2

Income & Expense

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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. Buyer must verify the information and bears all risk for any inaccuracies.

PRICE $1,400,000

Capitalization Rate: 6.50%

Total Rentable Area (SF): 9,002

Lot Size (Acres): 0.79

Year Built: 2015

STABILIZED INCOME Per Square Foot

Scheduled Rent $10.11 $90,972

LESS Per Square Foot

Taxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses $0.00

EQUALS NET OPERATING INCOME $90,972

DOLLAR GENERAL | 3

Aerial

Silver Street

Furnas Street

N 1

4th

Stre

et

66

66

6

6

JACK ANDERSON BALL PARK

IRON HORSE GOLF CLUB

Ashland Greenwood Elementary

Ashland Greenwood

Jr./Sr. High School

SILVER STREET COMPOUNDINGWILLOW POINT GALLERY

BITTERSWEET BAKERY

GIFT NICHEBLOOMS FLORAL &

GIFTSCHERI O’S

FRICKE & ASSOCIATES INSURANCE

THE COLLISION CENTER

6 CYCLE

ASHLAND CARE CLINIC

ASHLAND CARE CENTER

DONCO TOOLS

COOPER STUDIO & GALLERY

LINCOLN

6

OMAHA

6

DOLLAR GENERAL | 4

Site Plan

LIGHTED PYLON SIGN

Highway 66

DOLLAR GENERAL | 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. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

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TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq . Ft . Term Current Rent Yearly Rent

Monthly Rent

Yearly Rent/FT

Monthly Rent/FT

Dollar General 9,002 9/25/2015 9/24/2025 $90,972 $90,972 $7,581 $10.11 $0.84

9/25/2016 9/24/2030 $93,696 $7,808 $10.41 $0.87

Option 1 9/25/2031 9/24/2035 $103,068 $8,589 $11.45 $0.95

Option 2 9/25/2036 9/24/2040 $113,376 $9,448 $12.59 $1.05

Option 3 9/25/2041 9/24/2045 $124,716 $10,393 $13.85 $1.15

Option 4 9/25/2046 9/24/2050 $137,184 $11,432 $15.24 $1.27

Current Totals: 9,002 $90,972 $7,581 $10 .11 $0 .84

DOLLAR GENERAL | 6

REPRESENTATIVE PHOTO

Dollar General

DOLLAR GENERAL IS THE COUNTRY’S LARGEST

SMALL-BOX DISCOUNT RETAILER

COMPANY TYPE: PUBLIC (NYSE: DG)

2014 SALES $18.9 BILLION

S&P 500 CREDIT RATING BBB- (See next page)

2014 FORTUNE 500 #164

NUMBER OF STORES 12,200+

ABOUT DOLLAR GENERALDollar General (NYSE: DG) is a chain of more than 12,200 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. It targets low-, middle-, and fixed-income shoppers. Although it has the word “dollar” in its name, Dollar General is not solely a dollar store. Dollar General offers goods sold at set price points ranging from under a dollar to $60. Some of its higher end items include over-the-counter medicines, seasonal products, pet products, prepaid cell phones and accessories, and automotive supplies.

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 any other retailer and is easily the largest dollar store chain.

The company ranks 164th within the Fortune 500 list. Fiscal 2014 revenues exceeded $18.9 billion with a net income of $1.07 billion , and net worth of $5.7 billion

See next page about the Dollar General credit rating.

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DOLLAR GENERAL | 7

Dollar General Credit Rating

THE THREE LARGEST DOLLAR STORE CHAINS, RANKED BY 2014 REVENUE, ARE:

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DOLLAR GENERAL

FAMILY DOLLAR

DOLLAR TREE

2

3

1

ABOUT THE STRONG DOLLAR GENERAL CREDIT RATING

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 of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, will no longer issue separate financial statements.

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

The now combined Dollar Tree-Family Dollar entity has 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 four times since going public in 2009 .

DOLLAR GENERAL | 8

Regional Map

DOLLAR GENERAL

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31 Minutes27 Miles

Ashland Location

ASHLAND

LINCOLN

OMAHA

32 Minutes23 Miles

DOLLAR GENERAL | 9

ASHLAND, NE

Ashland (2010 population: 2,453) is in Saunders County, Nebraska. Ashland benefits from its proximity to Interstate 80 and the state’s two largest cities, Omaha and Lincoln. A mere 30-minute drive to the state’s two economic hubs, Ashland is best known as the home of the “Strategic Air and Space Museum.” See: www.sasmuseum.com. This 17-year-old museum (300,000 SF under roof ), features dozens of the aircraft used by the Strategic Air Command over the last decades.

Employers in the Ashland area include Innovative Laboratory Systems, Linoma Software, Camp Ashland, and Trade Well Pallet.

Omaha is the largest city in Nebraska and the county seat of Douglas County, and has a metro population of 408,958. Greater Omaha is home to the headquarters of nine Fortune 1000 companies. Those include five on the Fortune 500 list — Berkshire Hathaway, Inc., Union Pacific, ConAgra Foods, Peter Kiewit Sons, Inc. and Mutual of Omaha. Ashland is part of the Omaha MSA .

Lincoln is the state capital and the second most populous city in Nebraska. It had a population of over 272,000 in 2014. Lincoln is also the county seat of Lancaster County, and home to the University of Nebraska.

2015 HOUSEHOLD INCOMES

POPULATION

Location and DemosREPRESENTATIVE PHOTO

3-Mile 5-Mile

2010 3,326 3,9962014 3,583 4,2742019 3,814 4,530

3-Mile 5-Mile

Average $67,373 $71,516

DOLLAR GENERAL | 10

Omaha Key InformationOmaha is the focal point for health care in the state of Nebraska, making medicine one of the city’s most prominent industries . Some of the biggest employers in Greater Omaha include:

Cost of doing business is 14% lower in Greater Omaha compared to the national metro average.

Nebraska manufacturing labor productivity is 14.9% higher than that of the nation (based on manufacturing shipments per dollar of production workers’ wages).

Wages are 4% to 18% lower in key occupations like management, business, finance, computer science, architecture, and engineering.

The Greater Omaha area is the hub of the nation’s fiber connectivity, which is located at the convergence of major north, south, east, and west fiber optic telecommunications networks. More than twenty carriers have fiber entrances into the metro area, offering redundancy and a wide variety of routing options. Accordingly, there are many employers and buildings devoted to telecommunications. There are also quite a few “telecom hotels,” which are buildings filled with computer servers and telecom equipment.

There is a strategic central trucking location at the intersection of I-80 and I-29 in Omaha. The majority of US destinations can be reached within two to three days by truck from this location.

The median age of Omaha residents is 35.2 (below the US average of 37.5)

Greater Omaha’s employment base is diversified and highly educated. More than 90% of adults 25 and older are high school graduates, compared to the national average of 85%. 31.4% of adults possesses a bachelor’s degree or higher, compared to the national average of 27.9%.

Omaha is ranked #1 as the greatest city to raise children and Nebraska is ranked #2 in the top pro-business state, based on various surveys.

There are 9 “Fortune 1000” companies headquartered in Omaha. The most prominent business name in the city is Warren Buffet, the “Oracle of Omaha.” His company, Berkshire Hathaway, has always been headquartered in Omaha. Buffet has lived in the same Omaha home since 1958 and is a graduate of the University of Nebraska.

Employer # of EmployeesAlegent Creighton Health 7,500Methodist Health System 5,000The Nebraska Medical Center 5,000University of Nebraska Medical Center 2,500

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OMAHA - CITY POPULATION OF 434,000, METRO POPULATION OF

925,000

DOLLAR GENERAL | 11

A unique HUMANRESULTS-DRIVEN client experience

THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS

[ www.CapitalPacific.com ]

Copyright © 2015 [Capital Pacific Real Estate Brokerage Company]

JOHN [email protected] | (415) 274-2715 CA BRE# 01440360

RICK [email protected] | (415) 274-2709 CA BRE# 01792433

BOB [email protected] | (415) 274-2717 CA BRE# 00869657

REPRESENTATIVE PHOTO

CHRIS [email protected] | (415) 274-2703 CA BRE# 01339983

In conjunction with NE Licensed Broker: Jamison Whiston, WRK Real Estate, LLC402-817-4486| [email protected]