offering memorandum dollar general · 2017. 8. 21. · indeed, dollar general’s strategy of...

D o l l a r G e n e r a l9 0 4 E . M a i n S t r e e t , B l y t h e v i l l e , A R 7 2 1 3 5O F F E R I N G M E M O R A N D U M

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C O N T E N T S

INVESTMENT OVERVIEWInvestment Highl ights

6 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing Data

8 DOLLAR GENERAL OVERVIEW

1 0 PROPERTY OVERVIEWThe Offer ingSi te Descr ipt ionParcel MapTenant MapRegional Map

1 4 AREA OVERVIEWBlythevi l le, ARDemographics

E XC LU S I V E LY L I S T E D BY

JOSH BISHOPVP & Director

[email protected] (214) 692-2289MOB (315) 730-6228LIC # 688810 (TX)

StrategyOperat ionsGeographic Reach

4

Jessica DearnleyBroker of Record

LIC # PB00069947

I N V E S T M E N T O V E R V I E W

4 | D o l l a r G e n e r a l - B l y t h e v i l l e , A R


I n v e s t m e n t H i g h l i g h t s

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 5

• Brand new 2017 construction

• Premium construction building; Split Face Block and EIFS

• Rent commencement to occur in July of 2017; Purchaser will get a full 15-Year lease

• 15-Year Absolute NNN lease; Zero management responsibility

• Five 5-Year renewal options; all of which include a 10% rent increase

• Strong corporate guaranty from Dollar General Corporation

• Traffic counts on Main Street exceed 14,500 vehicles daily

• 5-mile demographics exceed 17,500 residents

• Average household income of approximately $55,000 annually; considered to be Dollar General’s “Sweet-Spot”

• Local retail tenants include Walmart, Lowe’s, Tractor Supply, Hibbett Sports, McDonald’s, Burger King, Taco Bell, Sonic, Wendy’s, Hardees, Pizza Hut, Anytime Fitness, O’Reilly Auto, AutoZone, and many more

• Blytheville is located 70 miles north of Memphis, TN

• Dollar General holds a strong investment grade credit rating of BBB (recently upgraded from BBB-)

• Dollar General is the only dollar store with investment grade credit

• Dollar General has more than 13,500 locations and has plans to continue expansion over the next several years

F I N A N C I A L A N A L Y S I S




D o l l a r G e n e r a l9 0 4 E . M a i n S t r e e t ,

B l y t h e v i l l e , A R 7 2 1 3 5List Price ........................................................................................... $1,220,860

CAP Rate - Current ...................................................................................6.50%

Gross Leasable Area ...................................................................... ± 9,002 SF

Lot Size ..........................................................................................± 0.89 Acres

Year Built ........................................................................................................2017

Tenant Summary

Tenant Trade Name Dollar General

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Dollar General Responsible

Original Lease Term 15 years

Rent Commencement Date 7/30/2017

Lease Expiration Date 7/30/2032

Term Remaining on Lease ± 15 years

Increases 10% increases in Options

Options Five (5), Five (5) Year Options

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $6,613.00 $79,356.00 $8.82 6.50%

Option 1 $7,275.00 $87,300.00 $9.70 7.15%

Option 2 $8,002.00 $96,024.00 $10.67 7.87%

Option 3 $8,802.00 $105,624.00 $11.73 8.65%

Option 4 $9,683.00 $116,196.00 $12.91 9.52%

Option 5 $10,651.00 $127,812.00 $14.20 10.47%

T E N A N T O V E R V I E W




Dollar General is the fast-growing retailer that boasts roughly 13,000 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. The retailer devotes its dollars to promotional circulars, targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company doesn’t allocate ample amounts of money to advertising. It has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.

STRATEGYWith its small-box stores typically measuring some 9,100 sq. ft, Dollar General targets cost-conscious consumers that prefer easier and quicker access to items than at super-sized competitors such as Wal-Mart and Costco (which are also often much farther away). Indeed, Dollar General’s strategy of catering to the value conscious has paid off big, both during and after the recession. The discount retailer boasted its 26th consecutive year of same-store sales growth in 2016 (ended January), attributable to its value and convenience proposition.

OPERATIONSDollar General’s massive stores network is supported by 13 distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such as Bobbie Brooks and Fisher Price for clothing and Rexall for health and beauty aids.

GEOGRAPHIC REACHDollar General operates nearly 13,000 stores in 43 US states in 2015. About 10% of its stores are in Texas and another 20% are spread across Florida, Georgia, Ohio, and North Carolina.

Company Name Dollar General

Parent Company Trade Name Dollar General Corporation (NYSE: DG)

Ownership Public

Credit Rating (S&P) BBB

No. of Locations ± 13,000

No. of Employees ± 113,400

Headquartered Goodlettsville, TN

Website www.dollargeneral.com

Year Founded 1939

P R O P E R T Y O V E R V I E W

1 0 | D o l l a r G e n e r a l - B l y t h e v i l l e , A R


T h e O f f e r i n gProperty Name Dollar General

Property Address 904 E. Main Street

Blytheville, AR 72135

Site Description

Number of Stories One

Year Built 2017

Gross Leasable Area (GLA) ± 9,002 SF

Lot Size ± 0.89 Acres (38,768 SF)

Type of Ownership Fee Simple

Parking ± 35 Surface Spaces

Parking Ratio 3.89 : 1,000 SF

Landscaping Professional

Topography Generally Level

NConstruction

Foundation Concrete Slab

Framing Steel

Exterior Block/EIFS

Parking Surface Asphalt

Roof Slightly Pitched

P a r c e l M a p

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1

Main Street ± 14,500 ADT


T e n a n t M a p


R e g i o n a l M a p

A R E A O V E R V I E W



B l y t h e v i l l e , A R

P l a c e s t o V i s i t

Blytheville, Arkansas is a place that is simple and content. Located in Mississippi County, it is the largest city within the region. Being just miles from the Mississippi River and Tennessee border, there are a variety of activities.

Nature is a key aspect, being so close to the Mississippi River. Whether it is taking a dip or adventuring through the different State Parks within the area, there is always something to do.

D e m o g r a p h i c s

Population 1 Mile 3 Mile 5 Mile

2021 Projection 5,332 13,602 16,969

2016 Estimate 5,488 14,070 17,517

2010 Census 5,834 15,139 18,788

2000 Census 6,450 18,109 21,948

Households 1 Mile 3 Mile 5 Mile

2022 Projection 2,036 5,472 6,797

2017 Estimate 2,084 5,623 6,974

2010 Census 2,189 5,961 7,380

2000 Census 2,430 6,865 8,310

Income 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$53,153 $54,953 $55,420

Blytheville is home to Arkansas Northeastern College, which is a community college that offers certificates and associate degrees. With a low cost for in-state tuition, many of Blytheville residents attend the college. The school is community oriented and just opened a child care service on campus to help their students. Many have graduated with a technical certificate or Associate in Science.

About an hour out of Blytheville is Jonesboro. It is the largest city within the Northeastern Arkansas region. Known as a college town, it has a great night life. There are many great restaurants and bars when adventuring Jonesboro.

If you are craving a little nostalgia, head down to Memphis, Tennessee. You can take a tour around Elvis Presley’s Graceland home or explore the National Civil Rights Museum. Another site seeing favorite is the Memphis and Arkansas Bridge. This has a great view of the Mississippi River while crossing the border from one state to the other.

A r k a n s a s N o r t h e a s t e r n C o l l e g e

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Dollar General located at 904 E. Main Street, Blytheville, AR 72135 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

E XC LU S I V E LY L I S T E D BY

D o l l a r G e n e r a l9 0 4 E . M a i n S t r e e t , B l y t h e v i l l e , A R 7 2 1 3 5

O F F E R I N G M E M O R A N D U M

JOSH BISHOPVP & Director

[email protected] (214) 692-2289MOB (315) 730-6228LIC # 688810 (TX)

Jessica DearnleyBroker of Record

LIC # PB00069947

offering memorandum dollar general · 2017. 8. 21. · indeed, dollar general’s strategy of...

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