nnn dollar general — tampa · dollar general corporation (nyse: “dg”) has been in business...

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.

For more information, please contact: In Association with:

Robert C. Sanner

Partner/Broker

415-677-0439

[email protected] LIC #00869657

Rick Sanner

Vice President

415-677-0429

[email protected] LIC #01792433

Baron Realty, Inc.

Florida Licensee LIC #BK3157275

Cassidy Turley Northern California www.ctbtnnn.com

NNN Dollar General — TAMPA TENANT IS NOW INVESTMENT GRADE

HIGH DENSITY, HIGH TRAFFIC, AND HIGH INCOME

Absolutely Superior Real Estate

ONE OF THE WORLD’S MOST SUCCESSFUL RETAILERS

— Sales and Profits are Increasing Strongly. Record Earnings Just Announced

— Credit Rating Increased Four Times in Recent Years

Price: $1,748,000 — 7.10% Cap Rate

New 15-Year NNN Lease — Soon to Open

The file photo above shows a building with 70’ width. Actual width is 130’, almost double!

Dollar General Tampa, Florida

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. RCS:dkw:0612:08:R-1

LOCATION 6508 S Dale Mabry Highway, Tampa, Florida. At the southeast corner of Interbay Boulevard and S Dale Mabry Highway, near the northern entrance to MacDill AFB.

LOT SIZE Approximately 1.08 acres – 47,045+/– square feet.

IMPROVEMENTS To be completed late July 2012, a 9,100+/– square foot DOLLAR GENERAL retail

store. See “About the Improvements.” The building footprint is notable because it

has a full 130 feet of building width on S Dale Mabry Highway, one of Tampa’s major

commercial thoroughfares.

LEASE Leased to a wholly-owned subsidiary of, and guaranteed by, DOLLAR GENERAL

CORPORATION for 15 years from August 2012 until August 2027 at the annual rent

of $124,092. The lease is absolute net with the tenant responsible for all taxes,

insurance and general maintenance including roof, structure and parking lot. The

tenant has three 5-year options to renew with 10% rental increases each option

period. See “New Lease Form.”

ANNUAL INCOME

PRICE $1,748,000 — 7.10% Cap Rate

PRICE PER SQUARE FOOT $192

RENT PER SQUARE FOOT $13.64 net per year — $1.14 net per month

YEARS ANNUAL RENT

1-15 $124,092

Option 1 $136,501

Option 2 $150,152

Option 3 $165,167



NEW LEASE FORM This is the new Dollar General lease form. By comparison, here is the lease on

another Dollar General property elsewhere.

ABOUT THE

IMPROVEMENTS

This is a “metal building,” typical for this tenant. HOWEVER, all the entire front of the

building, 130 lineal feet, is finished in stucco or concrete block, so it does not appear

from the street to be metal construction. A typical Dollar General has 70’ width and

130’ depth. The subject has 130’ width and 70’ depth. Thus it has more frontage

and visibility on the main street, Dale Mabry Highway.

SUBJECT “OTHER PROPERTY”

Location Tampa, FL ——————

Metro Area? Yes No

Lease Term 15 years 10 years

NNN? Yes No

Landlord

Responsibility None

Roof; structure; exterior of the

property except plate glass.

None of this is reimbursed.

Landlord handles parking lot and

landscape maintenance but is

reimbursed.



ABOUT THE TENANT

(QUANTITATIVE

INFORMATION)

DOLLAR GENERAL CORPORATION (NYSE: “DG”) has been in business since

1939. Headquartered in a suburb of Nashville, the company is a national discount

variety chain operating 10,052 stores in 40 states as of May 4, 2012. Formerly

privately held, the chain went public in November 2009. Dollar General is ranked

#188 among the 2011 Fortune 500 companies.

Dollar General is rated “BBB–” by Standard & Poor’s. When it went public in late

2009, it was upgraded by S&P to “BB–.” It was upgraded for the second time in eight

months, in June 2010, to “BB.” Thirteen months later, in July 2011, Dollar General

was upgraded yet again, to “BB+.” Then, in April, 2012, it was upgraded to BBB–,

which is an investment grade rating.

DG HAS MORE STORES THAN ANY OTHER RETAILER IN AMERICA.

For the quarter ended May 4, 2012, Dollar General reported sales of $3.901 billion

and net income of $213.415 million.

It was a record quarter: sales were up 13%, same store sales were up 6.7%, net

income was up 36%!! These percentages compare this quarter to the same

quarter last year.

For the fiscal year ended February 3, 2012, Dollar General reported annual revenues

of nearly $14.81 billion with net income of $766.7 million.

For that fiscal year, compared to the previous fiscal year, DG reported the following

% increases:

In January 2012, DG announced it would add 625 new stores in 2012, with 6,000

new employees. Including 2012, the company will have created more than 21,000

jobs since 2009.

In addition to the 625 new stores, the company plans in 2012 to remodel or relocate

550 stores and open an additional distribution center.

Total Sales 13.6%

Same-Store Sales 6.00%

Net Income 22.1%

Net Worth 15.1%



ABOUT THE TENANT

(GENERAL BACKGROUND)

The following is paraphrased 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

DOLLAR STORES

BEATING UP ON WAL-MART

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

* As of late May, 2012

From a recent internet article:

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

{such as } Kraft brands.

“[An advantage of dollar stores compared to Wal-Mart]...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.’”

APPROXIMATE

MARKET CAP * ANNUAL SALES

Dollar General (tenant) — “DG” $16.03 Billion $14.81 Billion

Dollar Tree — “DLTR” $11.74 Billion $ 6.63 Billion

Family Dollar — “FDO” $ 7.82 Billion $ 8.5 Billion



DOLLAR STORES

BEATING UP ON WAL-MART

(CONTINUED)

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.”

According to an item in the Wall Street Journal, December 5, 2011,

“Dollar stores have been doing well in part because they are winning market share

from Wal-Mart Stores, as lower-income shoppers switch to smaller, more frequent

shopping trips from bigger, more time-consuming ones. This trend is likely to

continue given that wage and employment gains remain generally subpar.

So budget pressures [of families] are likely to persist. And bargain-hunting clearly

gives dollar stores the edge. Recent surveys...show prices at Dollar General run 9%

to 10% below Wal-Mart’s, on average.”

The Wall Street Journal had a very recent article on this same topic. This article, from June 4, 2012, is part of this offering package.

SITE INFORMATION The subject property is located on a signalized corner with access from both South

Dale Mabry Highway and Interbay Boulevard. It is just north of the main entrance to

MacDill Air Force Base, across from a busy McDonald' s and Circle K. Traffic counts

on Dale Mabry are 34,000 AADT* (Annual Average Daily Traffic). S Dale Mabry is

two lanes each way, with an additional left turn lane at the intersection. Interbay

Boulevard is one lane each way, with an additional left turn lane at the intersection.

* Source of traffic information is Florida Department of Transportation (2010)



ABOUT THE AREA Tampa is located on the west coast of Florida, on the Gulf of Mexico. The population

of Tampa in 2010 was 335,709.

Tampa is a part of the metropolitan area most commonly referred to as the Tampa

Bay Area. Tampa is part of the Tampa-St. Petersburg-Clearwater, Florida MSA. The

four-county area is composed of roughly 2.7 million residents, making it the second

largest metropolitan statistical area in the state, and the fourth largest in the

Southeastern United States. The “Greater Tampa Bay” area has just over 4 million

residents and generally includes both the Tampa and Sarasota metro areas.

Economy

Service, retail, finance, insurance, shipping by air and sea, national defense,

professional sports, tourism, and real estate all play a vital role in the area's

economy. Many corporations, such as large banks and telecommunications

companies, maintain regional offices in Tampa. Several Fortune 1000 companies are

headquartered in the metropolitan area, including OSI Restaurant Partners (Outback

Steakhouse), WellCare Health Plans, Inc., TECO Energy, and Raymond James

Financial. MacDill Air Force Base also remains a major employer as the parent

installation for over 15,000 active uniformed military, Department of Defense (DoD)

civil service and DoD contractor personnel in the Tampa Bay area. THE MAIN

ENTRANCE TO MACDILL IS JUST SOUTH OF THE SUBJECT. A significant

majority of the civil service and contractor personnel are, in fact, themselves retired

career military personnel. In addition to the 6th Air Mobility Wing, which is "host wing"

for the base, MacDill is also home to Headquarters, United States Central Command

(USCENTCOM), Headquarters, United States Special Operations Command

(USSOCOM), the 927th Air Refueling Wing, Headquarters, United States Marine

Forces Central Command (USMARCENT), Headquarters, United States Special

Operations Command Central (USSOCCENT), and numerous other military activities

of the active and reserve components of the armed forces.

Tampa's port is the seventh largest in the nation and Florida's largest tonnage port,

handling nearly half of all seaborne commerce that passes through the state. Tampa

currently ranks second in the state behind Miami in terms of cruise ship travel.

Besides smaller regional cruise ships such as Yacht Starship and SunCruz Casino,

Tampa also serves as a regular port of call for four large cruise ships: Holland

America's MS Veendam, Royal Caribbean's Grandeur of the Seas, and Carnival's

Legend and Inspiration.

The main server farm for Wikipedia and other Wikimedia Foundation projects is

located in Tampa



ABOUT THE AREA

(CONTINUED)

Tourism and Recreation

Tampa operates over 165 parks and beaches covering 2,286 acres within the city

limits; 42 more are in surrounding suburbs covering 70,000 acres. These areas

include the Hillsborough River State Park, just northeast of the city. Tampa is also

home to a number of attractions and theme parks, including Busch Gardens Tampa

Bay, Adventure Island, Lowry Park Zoo, and Florida Aquarium.

Tampa's Lowry Park Zoo features over 2,000 animals, interactive exhibits, rides,

educational shows and more. The zoo serves as an economic, cultural,

environmental and educational anchor in Tampa.

Busch Gardens Tampa Bay is a 335-acre Africa-themed park located near the

University of South Florida. It features many thrilling roller coasters, for which it is

known. Visitors can also view and interact with a number of African wildlife.

Adventure Island is a 30-acre water park adjacent to Busch Gardens. It features

many water rides, dining, and other attractions typical to a water park.

The Florida Aquarium is a 250,000 sq ft aquarium located in the Channel District and

hosts over 20,000 species of aquatic plants and animals. It is known for its unique

glass architecture. Adjacent to the Aquarium is the SS American Victory, a World

War II Victory ship preserved as a museum.

The Tampa Bay History Center is a museum of local history located in the Channel

District. It boasts over 60,000 sq ft of exhibits through 12,000 years. It includes

theaters, a map gallery, a research center and a museum store.

Well-known shopping areas include International Plaza and Bay Street, WestShore

Plaza, SoHo district, and Hyde Park Village.

Colleges and Universities

There are a number of institutions of higher education in Tampa. The city is home to

the main campus of the University of South Florida (USF), a member of the State

University System of Florida. In 2010, it had the eleventh highest individual campus

enrollment in the US with over 46,000 students. The University of Tampa (UT) is a

private, four-year liberal arts institution. UT has over 6,500 students attending.

Other colleges and universities in the Tampa Bay Area include Eckerd College and

St. Petersburg College, both in St. Petersburg.



ABOUT THE AREA

(CONTINUED)

Sports

Tampa has a number of sports teams, such as the Tampa Bay Buccaneers of the

NFL, the Tampa Bay Lightning of the National Hockey League, the Tampa Bay

Storm of the Arena Football League, and the Tampa Bay Rowdies of the North

American Soccer League. The Tampa Bay Rays in Major League Baseball are

actually based in neighboring St. Petersburg.

Commercial Airports:

5 Miles: Tampa International Airport (TPA ) – Tampa. There are 72 non-stop

destinations.

15 Miles: St. Petersburg-Clearwater International Airport (PIE) – St. Petersburg

Seaports

The Port of Tampa is the largest port in Florida in throughput tonnage, making it also

one of the busiest commercial ports in North America. Petroleum and phosphate are

the lead commodities, accounting for two-thirds of the 37 million tons of total bulk and

general cargo handled by the port in 2009.

DEMOGRAPHICS

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

DEMOGRAPHICS 3-MILE 5-MILE 7-MILE

Population (2011) 50,120 87,679 138,189

Average HH Income $73,618 $102,751 $89,700

Growth (%)2000-2011 2.23% 2.54% 6.05%



SITE PLAN


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

AERIAL


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

MAP



Updated Summary Report (%)

May 17, 2012

Longitude: -82.505905

Latitude: 27.872504

3 mi

Ring 5 mi

Ring 7 mi

Ring

POPULATION

1990 Total Population 49,153 83,776 128,831




% Population Change 1990-2000 -.26% 2.06% 1.14%

% Population Change 2000-2011 2.23% 2.54% 6.05%

% Population Change 2011-2016 .51% .45% .68%

HOUSEHOLDS

1990 Total Households 20,986 37,302 55,277




% Households Change 1990-2000 4.68% 5.54% 5.01%



2011 RACE

% 2011 White Population 79.70% 85.29% 78.39%

% 2011 Black Population 9.26% 6.15% 12.83%

% 2011 American Indian/Alaska Native .41% .34% .32%

% 2011 Asian/Hawaiian/Pacific Islander 4.11% 3.42% 3.04%

% 2011 Other Population (Incl 2+ Races) 6.52% 4.80% 5.42%

% 2011 Hispanic Population 14.67% 13.13% 19.19%

% 2011 Non-Hispanic Population 85.33% 86.87% 80.81%



Updated Summary Report (%)

May 17, 2012

Longitude: -82.505905

Latitude: 27.872504

3 mi

Ring 5 mi

Ring 7 mi

Ring

INCOME

2011 Per Capita Income $33,156 $46,869 $39,836

2011 Median Household Income $48,685 $64,824 $53,654

2011 Average Household Income $73,618 $102,751 $89,700

% 2011 Household Income < $10,000 5.87% 4.23% 7.99%

% 2011 Household Income $10,000-$14,999 5.10% 3.77% 5.55%
















% 2011 Household Income $500,000+ .58% 1.66% 1.17%

2011 Average Household Size 2.2 2.2 2.2

% 2011 Total Owner Occupied Housing Units 55.93% 61.90% 59.33%

% 2011 Total Renter Occupied Housing Units 44.07% 38.10% 40.67%

2011 Total Daytime Population 40,246 75,634 218,193

2011 Total Daytime Work Population 14,925 33,651 149,727

2011 Total Establishments 1,450 4,032 11,704

nnn dollar general — tampa · dollar general corporation (nyse: “dg”) has been in business...

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