offering memorandum - Matthews Real Estate Investment Services

Representative Photo
Dollar General Plus
915 3rd Ave W, Birmingham, AL 35204
OFFERING MEMORANDUM
™
CONFIDENTIALITY & DISCLAIMER STATEMENT
This Marketing Brochure contains select information pertaining to the business
and affairs of Dollar General located at 915 3rd Ave W, Birmingham, AL 35204
here to referred to as “Property”. Information in this Marketing Brochure is
confidential and provided solely for the purpose of a review by a prospective
purchaser of the Property. It is not to be used for any other purpose and may not
be made available to any other person without the written consent of the Seller or
Matthews Retail Group, Inc.
This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also
known as Matthews Retail Advisors) based in part upon information supplied by
the Seller and in part upon financial information obtained from sources deemed
reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has
not and will not verify any of this information, nor has Matthews Retail Group, Inc.
conducted any investigation regarding these matters. Matthews Retail Group, Inc.
makes no guarantee, warranty or representation whatsoever about the accuracy
or completeness of any information provided.
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 the Buyer’s thorough due diligence
investigation of this investment opportunity. Matthews Retail Group, Inc. expressly
denies any obligation to conduct a due diligence examination of this Property for
the 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 the
Buyer depends on factors that should be evaluated by the Buyer and their tax,
financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction
advisors should conduct a careful, independent investigation of any property to
determine to their satisfaction the suitability of the Property for their investment
goals.
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 Dollar General. While the Dollar
General’s past performance at this or other locations is an important consideration,
it is not a guarantee of future performance.
Similarly, the lease rate for some properties, including newly-constructed facilities or
newly-acquired locations, may be set based on a Dollar General’s projected sales
with little or no record of actual performance, or comparable rents for the area.
Returns are not guaranteed; the Dollar General 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 Dollar General 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 Dollar General if the current
Dollar General should default or abandon the Property, and the lease terms that
Buyer may be able to negotiate with a potential replacement Dollar General
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 the Seller and Matthews
Retail Group, Inc. of any and all liability and hold the parties harmless from any kind
of claim, cost, or expense arising out of your investigation and/or purchase of this
Property.
NON-ENDORSEMENT NOTICE
Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any
commercial Dollar General or lessee identified in this Marketing Brochure. The
presence of any corporation’s logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Matthews
Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or
commercial listing of Matthews Retail Group, Inc., and is solely included for the
purpose of providing Dollar General lessee information about this listing to
prospective customers.
TABLE OF CONTENTS
PRICING AND FINANCIAL ANALYSIS
Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PROPERTY DESCRIPTION
Property Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
DEMOGRAPHICS
Demographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
PRESENTED BY
Joe Schuchert
Associate
License No. 01973172
O 310.919.5796
M 310.971.3116
joe.schuchert@matthews.com
Josh Bishop
VP & Director
License No. 01940394
O 310.919.5823
M 315.730.6228
josh.bishop@matthews.com
Kyle Matthews
Broker of Record
License No. 00109289
™
Representative Photo
PRICING AND FINANCIAL ANALYSIS
™
Investment Overview
INVESTMENT HIGHLIGHTS
LEASE, PROPERTY & LOCATION DETAILS
Representative Photo
• Strong 6.75% cap rate on a stabilized deal
• Newer 2012 construction Dollar General Plus store
• Plus stores typically confirm extremely strong sales,
usually in excess of $2M annually
• 11-Years remaining on an absolute NNN lease
• Zero management responsibility
• Subject property is well located on Route 11, with over
22,000 vehicles per day
• 3-Mile population in excess of 79,000 residents
• 5-mile population in excess of 165,000 residents
• Located 3-miles from the University of Alabama at
Birmingham, with enrollment of over 18,500 students
• Average household incomes to support Dollar General’s
long-term success
TENANT
• Dollar General is the only investment grade credit dollar
store
• S&P credit rating: BBB (raised from BBB- in late 2015)
• Dollar General currently operates over 13,000 stores
across the U.S.
• Dollar General is among the largest discount retailers in
the country
• Plans to continue expansion with 1,000 new stores slated
for 2017
2
Financial Overview
EXECUTIVE SUMMARY
915 3rd Ave W
Birmingham, AL 35204
List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,478,133
Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . .± 10,640 SF
CAP Rate - Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.75%
Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012
Lot Size . . . . . . . . . . . . . . . . . . . . . . . .± 1.55 Acres (67,518 SF)
ANNUALIZED OPERATING DATA
Monthly Rent
Annual Rent
Rent/SF
Current - 6/30/2027
$8,314.50
$99,774.00
$9.38
Option 1 - 6/30/2032
$9,146.00
$109,751.40
$10.31
Option 2 - 6/30/2037
$10,060.58
$120,726.96
$11.35
Option 3 - 6/30/2042
$11,066.67
$132,800.04
$12.48
Option 4 - 6/30/2047
$12,173.33
$146,079.96
$13.73
DOLLAR GENERAL SUMMARY
Dollar General Trade Name
Type of Ownership
Lease Guarantor
Lease Type
Roof and Structure
Rent Commencement Date
Lease Expiration Date
Term Remaining on Lease
Increases
Options
™
Dollar General
Fee Simple
Corporate
NNN
Tenant Responsible
6/21/2012
6/30/2027
11 years
10% in options
Four (4) - Five (5) Year Options
3
Company Overview
Property Name
Dollar General
Property Type
Net Leased Discount Store
Parent Company Trade Name
Dollar General Corporation
Ownership
Credit Rating
Rating Agency
Revenue
Net Income
Stock Symbol
Board
No. of Locations
No. of Employees
Headquartered
Web Site
Year Founded
4
Dollar General is the largest discount retailer by number of stores with over
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
Public
another 10% from seasonal items. The stores also offer household products
BBB
(cleaning supplies and health and beauty aids) and apparel. Pricing its items at
Standard & Poor’s
$10 or less (and 25% of items at or under $1), Dollar General targets low-,
$20.37 B
$1.17 B
DG
NYSE
± 13,000
± 113,400
Goodlettsville, Tennessee
www.dollargeneral.com
1955
middle-, and fixed-income shoppers.
hoovers.com
PROPERTY DESCRIPTION
™
Property Overview
THE OFFERING
Property Name . . . . . . . . . . . . . . . . . . . . . . . . . Dollar General
Property Address . . . . . . . . . . . . . . . . . . . . . . . . 915 3rd Ave W
Birmingham, AL 35204
Assessor’s Parcel Number . . . . . . . . . . . . . 29-00-04-1-013-002.000
SITE DESCRIPTION
Number of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . One
Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012
Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . ± 10,640 SF
Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.55 Acres (67,518 SF)
Type of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . Fee Simple
Parking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 45 Surface Spaces
Parking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 4.23 : 1,000 SF
Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . Professional
Topography . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level
CONSTRUCTION
Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . Concrete Slab
Exterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Block / Metal
Parking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . Concrete
Roof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat
Representative Photo
6
PROPERTY DESCRIPTION
Princeton Pkwy ± 19,000 VPD
Bird’s Eye
3rd Ave W ± 22,000 VPD
™
7
Tenant Map
8
PROPERTY DESCRIPTION
Local Map
Birmingham Southern
College
Students: 1,500
University of Alabama at
Birmingham
Students: 18,568
Academic Staff: 2,044
™
9
Regional Map
10
DEMOGRAPHICS
™
Demographics Report
Population
1-Mile
3-Mile
5-Mile
2021 Projection
11,074
78,510
164,841
2016 Estimate
11,165
79,019
165,503
2010 Census
11,553
81,279
169,104
2000 Census
14,839
97,199
193,375
2021 Projection
4,365
32,485
69,809
2016 Estimate
4,372
32,558
69,723
2010 Census
4,447
33,242
70,561
2000 Census
5,575
39,078
79,749
Households
Income
$0 - $15,000
34.34%
30.58%
25.56%
$15,000 - $24,999
20.04%
17.33%
15.28%
$25,000 - $34,999
13.17%
13.64%
12.17%
$35,000 - $49,999
15.43%
13.99%
13.70%
$50,000 - $74,999
8.43%
12.29%
13.61%
$75,000 - $99,999
4.20%
6.06%
7.41%
$100,000 - $124,999
2.21%
3.23%
4.75%
$125,000 - $149,999
1.24%
1.26%
2.25%
$150,000 - $199,999
0.59%
0.75%
2.23%
$200,000 - $249,999
0.03%
0.20%
1.00%
$250,000 - $499,999
0.14%
0.37%
1.32%
$500,000+
0.20%
0.31%
0.74%
2016 Est. Average Household Income
$32,754
$38,553
$52,005
2016 Est. Median Household Income
$22,816
$26,532
$32,528
12
DEMOGRAPHICS
City Overview
BIRMINGHAM, AL
Birmingham is the most populous city in Alabama and the county seat of
Jefferson County. Birmingham has a population over 212,000. Nestled at
the foothills of the Appalachian Mountains at the cross-section of two major
railroads, the city was once the primary industrial center of the southern
United States.
Birmingham was formerly a steel and manufacturing center and was once
known as the “Pittsburgh of the South”. Recently, the city has experienced
a major economic turnaround and has come a long way. Birmingham ranks
as one of the most important business centers in the Southeastern United
States and is also one of the largest banking centers in the United States.
In addition, the Birmingham area serves as headquarters to one Fortune
500 company: Regions Financial, along with five other Fortune 1000
companies. Today, Birmingham has transformed itself into a medical
research, banking and service-based economy, making it one of the nation’s
most livable cities with a vibrant downtown, a burgeoning loft community, a
world-class culinary scene and more green space per capita than any other
city in the nation.
In higher education, Birmingham has been the location of the University of
Alabama School of Medicine and the University of Alabama School of
Dentistry since 1947. Since that time it has also obtained a campus of the
University of Alabama, University of Alabama at Birmingham one of three
main campuses of the University of Alabama System. The university is one
of the state’s largest employers and has a great economic impact on the
area. The university has more than 18,000 students and 18,000 faculty and
staff.
Birmingham offers a wealth of entertainment and cultural possibilities, from
Arts and Museums, multiple theater experiences to world class recreation
facilities and some great urban parks. Birmingham is the cultural and
entertainment capital of Alabama with numerous art galleries in the area
including the Birmingham Museum of Art, the largest art museum in the
Southeast. Birmingham is home to numerous cultural festivals showcasing
music, films, and regional heritage. Sidewalk Moving Picture Festival brings
filmmakers from all over the world to Birmingham to have their films viewed
and judged. This festival usually is scheduled in late August at eight venues
around downtown. Screenings are concentrated at the Alabama Theatre.
The Sloss Furnaces has an annual Halloween haunted attraction called
“Sloss Fright Furnace”.
™
13
Dollar General Plus
915 3rd Ave W, Birmingham, AL 35204
OFFERING MEMORANDUM
Joe Schuchert
Associate
License No. 01973172
O 310.919.5796
M 310.971.3116
joe.schuchert@matthews.com
Josh Bishop
VP & Director
License No. 01940394
O 310.919.5823
M 315.730.6228
josh.bishop@matthews.com
Kyle Matthews
Broker of Record
License No. 00109289
841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com
™