107 I-55 Frontage Road Terry, MS 39170 $486,500 8.00% $38,926
107 I-55 Frontage Road Terry, MS 39170 PRICE
NOI
$486,500
$38,926
CAP RATE
SQ FT
8.00%
8,088
CURRENT LEASE
9/15/2007 to 9/14/2017 Two 5-Year Option
1071-55 Frontage Road Terry, MS 39170
LEASE TERMS
Dollar General TENANT OVERVIEW General Information Nation’s Largest Small-Box Discount Retailer Publicly Traded, BBB- Credit Tenant 9,300+ Stores in 35 States 2010 Results 13+ Billion in Sales Same-Store Sales Increase of 5% Net Income Increase of 85% Profit Increase of 34% 2011 Plans Opening 625 Stores Relocating or Renovating 550 Stores Expanding into Connecticut, Nevada and New Hampshire
Initial Term
September 15, 2000
to
September 14, 2007
Current Term
September 15, 2007
to
September 14, 2017
1st Option
September 15, 2017
to
September 14, 2022
2nd Option
September 15, 2022
to
September 14, 2027
Rent Increases Current Term 1st Option 2nd Option
Annual Rent $44,808.72 $50,196.00 $56,208.00
Monthly Rent $3,734.06 $4,183.00 $4,684.00
Dollar General reimburses for taxes up to $.40/SF and pays up to $.05/SF for common area maintenance. Dollar General pays for insurance premiums. Dollar General responsible for mechanical items under $500
1071-55 Frontage Road Terry, MS 39170
PROPERTY HIGHLIGHTS
Build-To-Suit in 2000 2011 Sales $2,219,757
Income Dollar General Rental Income Tax Contribution CAM Contribution
44,808.72 3,235.00 404.40
Gross Effective Income
48,448.12
Operating Expenses Repairs and Maintenance School District Lease Taxes Total Operating Expenses NET OPERATING INCOME
1,000.00 2,065.00 6,456.34 9,521.34 38,926.78
1071-55 Frontage Road Terry, MS 39170
INVESTMENT ASSUMPTIONS Investment Price NOI (Year 1) Cap Rate Total Rentable Square Feet Purchase Price per Rentable Square Foot PRO-FORMA ASSUMPTIONS Vacancy Factor/Credit Loss Value/Rent Increases Cost Increases Selling Costs Capital Reserves
$486,500 38,927 8.00% 8,088 $60.15
0% 0% 0% 0% $0.00
FINANCING TERMS Initial Outlay Initial Loan Amount Loan Amortization Term Interest Rate on Loan Debt Service Loan to Value
$97,300 $389,200 20 5.25% $31,471 80%
TAX ASSUMPTIONS Allocated Land Cost Beginning Tax Basis Depreciation Years Marginal Tax Bracket
$97,300 $389,200 39.0 30%
RETURN MEASURES Internal Rate of Return Before Tax Year 1 19.28% Year 5 26.16% Year 10 22.12% RETURN MEASURES Cash on Cash Return Before Tax Year 1 7.66% Year 5 13.20% Year 7 13.20% Year 10 19.38%
(1031) After Tax 16.58% 23.33% 19.22%
After Tax 4.95% 8.02% 7.54% 11.06%
Income Dollar General Rental Income Taxes Reimbursed up to $.40/SF CAM Reimbursed up to $.05/SF Insurance Reimbursed % Rent Other (-) Vacancy Factor Gross Effective Income
2016 44,808 3,235 404 0 0 0 0 48,448
2017 44,808 3,235 404 0 0 0 0 48,448
2018 50,196 3,235 404 0 0 0 0 53,836
2019 50,196 3,235 404 0 0 0 0 53,836
2020 50,196 3,235 404 0 0 0 0 53,836
2021 50,196 3,235 404 0 0 0 0 53,836
2022 50,196 3,235 404 0 0 0 0 53,836
2023 56,208 3,235 404 0 0 0 0 59,848
2024 56,208 3,235 404 0 0 0 0 59,848
2025 56,208 3,235 404 0 0 0 0 59,848
Operating Expenses Taxes Insurance Repairs and Maintenance School District Lease Total Operating Expenses
2016 6,456 0 1,000 2,065 (9,521)
2017 6,456 0 1,000 2,065 (9,521)
2018 6,456 0 1,000 2,065 (9,521)
2019 6,456 0 1,000 2,065 (9,521)
2020 6,456 0 1,000 2,065 (9,521)
2021 6,456 0 1,000 2,065 (9,521)
2022 6,456 0 1,000 2,065 (9,521)
2023 6,456 0 1,000 2,065 (9,521)
2024 6,456 0 1,000 2,065 (9,521)
2025 6,456 0 1,000 2,065 (9,521)
NET OPERATING INCOME Debt Service PRETAX CASH FLOW
38,927
38,927
44,315
44,315
44,315
44,315
44,315
50,327
50,327
50,327
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
7,455
7,455
12,843
12,843
12,843
12,843
12,843
18,855
18,855
18,855
NOI
$486,500
$38,926
CAP RATE
SQ FT
8.00%
8,088
CURRENT LEASE
9/15/2007 to 9/14/2017 Two 5-Year Option
1071-55 Frontage Road Terry, MS 39170
LEASE TERMS
Dollar General TENANT OVERVIEW General Information Nation’s Largest Small-Box Discount Retailer Publicly Traded, BBB- Credit Tenant 9,300+ Stores in 35 States 2010 Results 13+ Billion in Sales Same-Store Sales Increase of 5% Net Income Increase of 85% Profit Increase of 34% 2011 Plans Opening 625 Stores Relocating or Renovating 550 Stores Expanding into Connecticut, Nevada and New Hampshire
Initial Term
September 15, 2000
to
September 14, 2007
Current Term
September 15, 2007
to
September 14, 2017
1st Option
September 15, 2017
to
September 14, 2022
2nd Option
September 15, 2022
to
September 14, 2027
Rent Increases Current Term 1st Option 2nd Option
Annual Rent $44,808.72 $50,196.00 $56,208.00
Monthly Rent $3,734.06 $4,183.00 $4,684.00
Dollar General reimburses for taxes up to $.40/SF and pays up to $.05/SF for common area maintenance. Dollar General pays for insurance premiums. Dollar General responsible for mechanical items under $500
1071-55 Frontage Road Terry, MS 39170
PROPERTY HIGHLIGHTS
Build-To-Suit in 2000 2011 Sales $2,219,757
Income Dollar General Rental Income Tax Contribution CAM Contribution
44,808.72 3,235.00 404.40
Gross Effective Income
48,448.12
Operating Expenses Repairs and Maintenance School District Lease Taxes Total Operating Expenses NET OPERATING INCOME
1,000.00 2,065.00 6,456.34 9,521.34 38,926.78
1071-55 Frontage Road Terry, MS 39170
INVESTMENT ASSUMPTIONS Investment Price NOI (Year 1) Cap Rate Total Rentable Square Feet Purchase Price per Rentable Square Foot PRO-FORMA ASSUMPTIONS Vacancy Factor/Credit Loss Value/Rent Increases Cost Increases Selling Costs Capital Reserves
$486,500 38,927 8.00% 8,088 $60.15
0% 0% 0% 0% $0.00
FINANCING TERMS Initial Outlay Initial Loan Amount Loan Amortization Term Interest Rate on Loan Debt Service Loan to Value
$97,300 $389,200 20 5.25% $31,471 80%
TAX ASSUMPTIONS Allocated Land Cost Beginning Tax Basis Depreciation Years Marginal Tax Bracket
$97,300 $389,200 39.0 30%
RETURN MEASURES Internal Rate of Return Before Tax Year 1 19.28% Year 5 26.16% Year 10 22.12% RETURN MEASURES Cash on Cash Return Before Tax Year 1 7.66% Year 5 13.20% Year 7 13.20% Year 10 19.38%
(1031) After Tax 16.58% 23.33% 19.22%
After Tax 4.95% 8.02% 7.54% 11.06%
Income Dollar General Rental Income Taxes Reimbursed up to $.40/SF CAM Reimbursed up to $.05/SF Insurance Reimbursed % Rent Other (-) Vacancy Factor Gross Effective Income
2016 44,808 3,235 404 0 0 0 0 48,448
2017 44,808 3,235 404 0 0 0 0 48,448
2018 50,196 3,235 404 0 0 0 0 53,836
2019 50,196 3,235 404 0 0 0 0 53,836
2020 50,196 3,235 404 0 0 0 0 53,836
2021 50,196 3,235 404 0 0 0 0 53,836
2022 50,196 3,235 404 0 0 0 0 53,836
2023 56,208 3,235 404 0 0 0 0 59,848
2024 56,208 3,235 404 0 0 0 0 59,848
2025 56,208 3,235 404 0 0 0 0 59,848
Operating Expenses Taxes Insurance Repairs and Maintenance School District Lease Total Operating Expenses
2016 6,456 0 1,000 2,065 (9,521)
2017 6,456 0 1,000 2,065 (9,521)
2018 6,456 0 1,000 2,065 (9,521)
2019 6,456 0 1,000 2,065 (9,521)
2020 6,456 0 1,000 2,065 (9,521)
2021 6,456 0 1,000 2,065 (9,521)
2022 6,456 0 1,000 2,065 (9,521)
2023 6,456 0 1,000 2,065 (9,521)
2024 6,456 0 1,000 2,065 (9,521)
2025 6,456 0 1,000 2,065 (9,521)
NET OPERATING INCOME Debt Service PRETAX CASH FLOW
38,927
38,927
44,315
44,315
44,315
44,315
44,315
50,327
50,327
50,327
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
(31,471)
7,455
7,455
12,843
12,843
12,843
12,843
12,843
18,855
18,855
18,855
