Dollar General Net Leased Offering Catawissa, PAkaseholdings.com/properties/proposals/Dollar... ·...

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Offering Highlights

$1,339,583For Sale

Jacob Abusharkh BRE#01385529Managing [email protected]

Mark D. BerkManaging [email protected]

15 Year Net Lease 13+ Years Remaining

Corporate Guaranty - NYSE: DG

S&P Rated BBB- Investment Grade Credit

Scheduled 3% Increase in Rent in Year 11

Scheduled 10% Increases at Each Option

Dollar General Net Leased Offering | Catawissa, PA

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The material contained in this Investment Offering Brochureis furnished solely for the purpose of considering thepurchase of the property within and is not to be used forany other purpose. This information should not, under anycircumstances, be photocopied or disclosed to any thirdparty without the written consent of Sperry Van Ness orOwner, or used for any purpose whatsoever other than toevaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner(“Owner”) in connection with the sale of the Property is theSperry Van Ness Advisor listed in this proposal, and noother person is authorized by the Owner to provide anyinformation or to make any representations other thancontained in this Investment Offering Brochure. If theperson receiving these materials does not choose to pursuea purchase of the Property, this Offering Brochure must bereturned to Sperry Van Ness.

Neither the Sperry Van Ness Advisor nor the Owner makeany representation or warranty, express or implied, as to theaccuracy or completeness of the information containedherein, and nothing contained herein is or shall be reliedupon as a promise or representation as to the futureperformance of the Property. This Offering Brochure mayinclude certain statements and estimates by Sperry VanNess with respect to the projected future performance ofthe Property. These Assumptions may or may not be provento be correct, and there can be no assurance that suchestimates will be achieved. Further, the Sperry Van NessAdvisor and the Owner disclaim any and all liability forrepresentations or warranties, expressed or implied,contained in or omitted from this Investment OfferingBrochure, or any other written or oral communicationtransmitted or made available to the recipient. The recipientshall be entitled to rely solely on those representations

2www.TheKaseGroup.comAll Sperry Van Ness® Offices Independently Owned & Operated.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Dollar General Net Leased Offering

and warranties that may be made to it in any final, fullyexecuted and delivered Real Estate Purchase Agreementbetween it and Owner.

The information contained herein is subject to changewithout notice and the recipient of these materials shall notlook to Owner or the Sperry Van Ness Advisor, nor any oftheir officers, employees, representatives, independentcontractors or affiliates, for the accuracy or completenessthereof. Recipients of this Investment Offering Brochure areadvised and encouraged to conduct their owncomprehensive review and analysis of the Property.

This Investment Offering Brochure is a solicitation ofinterest only and is not an offer to sell the Property. TheOwner expressly reserves the right, at its sole discretion, toreject any or all expressions of interest to purchase theProperty and expressly reserves the right, at its solediscretion, to terminate negotiations with any entity, for anyreason, at any time with or without notice. The Owner shallhave no legal commitment or obligation to any entityreviewing the Investment Offering Brochure or making anoffer to purchase the Property unless and until the Ownerexecutes and delivers a signed Real Estate PurchaseAgreement on terms acceptable to Owner, in Owner’s solediscretion. By submitting an offer, a prospective purchaserwill be deemed to have acknowledged the foregoing andagreed to release the Owner and the Sperry Van NessAdvisor from any liability with respect thereto.

To the extent Owner or any agent of Owner correspondswith any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statementsas binding Owner. Only a fully executed Real EstatePurchase Agreement shall bind the property and eachprospective purchaser proceeds at its own risk.

Disclaimer | Confidentiality




Table of Contents

1. PROPERTY OVERVIEW 4

Executive Summary 5

Tenant Summary 6

2. FINANCIAL OVERVIEW 7

Financial Summary 8

Rent Roll 9

3. LOCATION OVERVIEW 10

Location Maps 11

4. DEMOGRAPHICS 12

Demographics Report 13

Demographics Map 14

1




Property Overview

Property The subject offering is a fee simple interest in a new net leased Dollar General. The 15 year net leasecommenced in 2013 calls for limited landlord obligations, including roof and structure. There are five 5year renewal options beyond the initial term. In year 11, there is a 3% increase in rent and 10% rentalincreases at each option period. This is an ideal opportunity for a passive investor looking for along-term stable investment.

Location Catawissa is just south of Bloomsburg, a strong college town built around Bloomsburg University. It isalso just south of the Susquehanna River. Catawissa is easily the largest town in 5-10 miles ring. Thereare two bridges over the Susquehanna here, the closest in either direction is about 10 miles away. Thisforces the 5-7 mile ring to drive through Catawissa (and past the Dollar General) in order to drive northto Bloomsburg, and in some cases Danville or Berwick. This part of Pennsylvania is wealthier than mostof its neighbors. The 10-15 mile stretch from Danville-Bloomsburg-Berwick houses a MerckPharmaceutical Plant, Geisinger Hospital, Bloomsburg University, and Berwick Nuclear Power Plant.





Property Overview

Executive Summary

Investment Overview

709 Mill Street • Catawissa, PA 17820

Sale Price $1,339,583

CAP Rate 6.95%

Lot Size 0.97 Acres

Building Size 9,026 SF

Year Built 2013

Market Bloomsburg–BerwickMicropolitan Area


Tenant Overview

Dollar General Corporation, incorporated in 1955, is a discount retailer inthe United States by number of stores, with 9,961 stores located in 39states as of March 2, 2012, primarily in the southern, southwestern,midwestern and eastern United States. The Company offers a selection ofmerchandise, including consumables, seasonal, home products andapparel. The Company's merchandise includes national brands frommanufacturers, as well as private brand selections with prices atsubstantial discounts to national brands. It offers its merchandise ateveryday low prices through its convenient small-box (approximately7,200 square feet) locations. During the fiscal year ended February 3,2012 (fiscal 2011), it opened 625 stores and remodeled or relocated 575stores, and closed 60 stores. Its small box stores offer consumable items,including packaged and refrigerated foods.

The Company purchases merchandise from a variety of suppliers andmaintain direct buying relationships with many producers of nationalbrand merchandise, such as Procter & Gamble, Kimberly Clark, Unilever,Kellogg's, General Mills, Nabisco, Coca-Cola and PepsiCo. Its stores aresupported by 10 distribution centers located strategically throughout itsgeographic footprint, including a distribution center in Bessemer,Alabama which began shipping to stores on March 11, 2012. TheCompany leases additional temporary warehouse space as necessary tosupport its distribution needs. In addition, it has leased a distributionfacility in Lebec, California.

The average Dollar General store has approximately 7,200 square feet ofselling space. During fiscal 2011, its total store count included 69 DollarGeneral Market stores, which, in addition to the merchandise offering of atraditional Dollar General store, feature an expanded food section,including fresh meat and produce and more frozen and refrigeratedfoods. During fiscal 2011, it opened 12 Dollar General Markets, includingseven as part of its initial entrance into Nevada. In addition to the Marketstores, it is also testing a large format traditional store with approximately10,000 square feet of selling space, including an expanded section ofcoolers and freezers.

The Company competes with Family Dollar, Dollar Tree, Fred's, 99 CentsOnly, Walmart, Target, Walgreens, CVS and Rite Aid.



Corporate Information

Ticker Symbol NYSE: DG

Founded 1939, as JL Turner & Son

Headquarters Goodlettsville, TN

No. of Locations 9,961

Revenue $14.807 Billion (2011)

Market Cap $16.11 Billion (2012)

Employees 90,000

Website www.DG.com

Tenant HighlightsS&P Rated BBB- Investment Grade Credit

NYSE: DG

Fortune 500 Company

Tenant Summary

2




Financial Overview

CAP Rate 6.95%

Building SF 9,026

Year Built 2013

Lease Type NN

Type of Ownership Fee Simple


Estimated Annualized Operating Data Year 1 Year 11 Option 1 Option 2

Net Operating Income $93,101 $95,894 $105,483 $116,032

CAP Rate 6.95% 7.16% 7.87% 8.67%

709 Mill Street | Catawissa, PA 17820 For Sale | $1,339,583

Financial Summary






TenantName GLA

LeaseBegin

LeaseEnd

AnnualRent Increases Options

DollarGeneral

9,026 SF 7/1/2013 7/1/2028 $93,101 Rentincreases 3%

in year 11and 10% ateach option

Tenant hasfive 5 yearoptions to

renew

709 Mill Street | Catawissa, PA 17820 For Sale | $1,339,583

Rent Roll Summary

3



Location Overview





Location Maps

4 Demographics Analysis




Total Population

Total Number of Households

Total Number of Persons per Household

Average House Value

Average Household Income

Median Age

Median Age - Male

Median Age - Female

Total Population - White

Total Percent - White

Total Population - Black

Total Percent - Black

Total Population - Asian

Total Percent - Asian

Total Population - Hawaiian

Total Percent - Hawaiian

Total Population - Indian

Total Percent - Indian

Total Population - Other

Total Percent - Other

Total Population - Hispanic

Total Percent - Hispanic

0 52 630.0% 0.2% 0.2%

29 199 2410.6% 0.8% 0.7%

* Demographic information provided by BuildOut, LLC

709 Mill Street | Catawissa, PA 17820

1,976 8,555 12,487

2.4 3.0 2.8

$170,360 $159,218 $156,740

$54,906 $49,248 $54,887

37.7 29.8 33.236.9 30.9 33.9

39.5 30.1 33.7

Demographics Report

9 126 2390.2% 0.5% 0.7%

47 766 9061.0% 3.0% 2.6%

0 0 00.0% 0.0% 0.0%

4,567 23,691 32,92196.4% 93.9% 94.5%

4,737 25,239 34,844

97 685 8092.0% 2.7% 2.3%

3 Miles 5 Miles 7 Miles

Dollar General Net Leased Offering Demographics Analysis



* Demographic information provided by BuildOut, LLC

709 Mill Street | Catawissa, PA 17820


Radius Map

Demographics Analysis

3 Miles 5 Miles 7 Miles

Total Population 4,737 25,239 34,844

Total Number of Households 1,976 8,555 12,487

Average Household Income $54,906 $49,248 $54,887

Median Age 37.7 29.8 33.2



Presented by |

[email protected]

Jacob Abusharkh BRE#01385529

Managing Director

415.269.2474

[email protected]

Mark D. BerkManaging Director

610.891.8988

All Sperry Van Ness® Offices Independently Owned & Operated. | © 2011 All rights reserved. |www.svn.com

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