Dollar General
Subject Property
Dollar General 416 N. U.S. Highway 277 | Fletcher, OK 73541 Absolute NNN | 15-Year Lease Term | Built in 2015
Confidential Disclaimer This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
Offered Exclusively by Gill Warner, CCIM Senior Director [email protected] P: +1 918.794.9512 OK License #131858
Sharon Jordan Senior Analyst [email protected] P: +1 918.794.9513
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Stan Johnson Company 6120 S Yale Ave Suite 300 Tulsa, OK 74136
stanjohnsonco.com
The Offering
Purchase Price: $1,064,870 Cap Rate: 6.90%
Stan Johnson Company is pleased to offer for sale to qualified investors an attractive retail property 100% leased to Dollar General located in Fletcher, Oklahoma. Dollar General is operating under a Fifteen (15) year Absolute NNN lease with just under Fourteen (14) years remaining. The lease features Four (4), Five (5) year renewal options with 10% rental increases every Five (5) years in the option periods. Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. As of August 13, 2016, Dollar General operated 13,000 stores in 43 states. The company currently holds an investment grade credit rating of BBB/Stable with S&P.
Investment Highlights Long Lease Term Fifteen (15) year lease with Four (4), Five (5) year renewal options. No Landlord Responsibility Absolute Net Lease; Tenant is responsible for all expenses. Rental Increases 10% rental increases every Five (5) years in each option period. Strong Credit Tenant As of January 29, 2016, Dollar General Corporation reported total revenues of $20.36 billion, a net income of $1.16 million, and a net worth of $5.37 billion.
2
Dollar General - Fletcher, Oklahoma
N
Lease Abstract Trade Name:
Dollar General
Property Address:
416 N. U.S. Highway 277 | Fletcher, OK 73541 (Comanche County)
Building Size (SF):
+/- 9,026 SF
Land Size:
+/- 1.79 Acres
Year Constructed:
2015
Primary Term:
Fifteen (15) years
Lease Commencement:
September 17, 2015
Lease Expiration:
September 30, 2030
Lease Term Remaining:
Fourteen (14) years
Current Annual Rent:
$73,476
Rental Increases:
10% in each option
Renewal Options:
Lease Type:
3
Subject Property Photo
Rent Schedule Lease Years
Annual Rent
Monthly Rent
% Increases
1-15
$73,476
$6,123
-
16-20 (Option 1)
$80,820
$6,735
10%
21-25 (Option 2)
$88,908
$7,409
10%
26-30 (Option 3)
$97,788
$8,149
10%
31-35 (Option 4)
$107,568
$8,964
10%
Four (4), Five (5) year options
Absolute NNN
Dollar General - Fletcher, Oklahoma
Tenant Overview Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General was founded in 1939 by Cal Turner in Scottsville, Kentucky as J.L. Turner & Son, Inc. In 1968 the business changed its name to Dollar General Corporation. In 2007 the company was acquired by the private equity firm Kohlberg Kravis Roberts & Co. (KKR), which took the company public in 2009. Dollar General offers both name-brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Many of its offerings are priced at more than one dollar. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars. Dollar General has thrived during the economic recovery of the last several years and their stock has increased 21.48% in the past 12 months. They have reported a twenty-fourth consecutive year of same-store sales growth in 2015 and overall sales grew by 7.9%. As of January 2016, it operated over 13,000 stores located in 43 states. Citing Dollar General’s positive operating momentum, healthy sales and expected cash flow growth, the company currently holds an investment grade rating of BBB/Stable with Standard & Poor’s. Dollar General Corporation (NYSE: DG) reported annual total revenues of $20.36 billion, a net income of $1.16 million, and a net worth in excess of $5.37 billion.
Tenant Credit Summary
4
Dollar General - Fletcher, Oklahoma
Company: Number of Locations: Credit Rating: Stock Symbol: Exchange: YTD Total Revenue: YTD Net Income: YTD Net Worth: Tenant Business: Founded: Headquartered: Website:
Dollar General Corp. 13,000 S&P: BBB/Stable DG NYSE $20.36 Billion $1.16 Million $5.37 Billion Discount, Variety store 1939 Goodlettsville, Tennessee www.dg.com
Site Plan
N
5
Dollar General - Fletcher, Oklahoma
N
Location Overview Fletcher is a town in Comanche County, Oklahoma. The population was 1,177 at the 2010 census. It is located along the heavily trafficked Interstate 44, which connects Tulsa, in Northeastern Oklahoma to Wichita Falls and bisects Oklahoma City. It is a major route for commercial shipping in the state of Oklahoma. Oklahoma City, just 67 miles northeast of Fletcher, is the capital and largest city of Oklahoma. Oklahoma City is on the I-35 Corridor as one of the primary travel corridors into neighboring Texas and Mexico.
6
Dollar General - Fletcher, Oklahoma
Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation’s Mike Monroney Aeronautical Center. The city is headquarters to two Fortune 500 companies, Chesapeake Energy Corporation and Devon Energy Corporation, as well as being home to Love’s Travel Stops & Country Stores, which is ranked thirteenth on Forbes’ list of private companies.
Georgia-Pacific Based in Atlanta, Georgia-Pacific and its subsidiaries are among the world’s leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, office papers, cellulose, specialty fibers, nonwoven fabrics, building products and related chemicals.
IN
TE
RS
TA TE
44
Georgia-Pacific has two locations in Oklahoma, including this facility, which produces gypsum-based building products. Georgia-Pacific employs 980 people in Oklahoma.
Fletcher High School
Elgin Motor
US
Fletcher Elementary School
-2 7
7
(2
,3
98
Ozark Trail VP D) Motel & Restaurant
Trail Auto Services
Wildcat Express
N
City Hall of Fletcher
Hop & Sack Stores
Fletcher Public Park
Demographics 416 N. U.S. Highway 277 | Fletcher, OK 73541
0 - 3 mi.
0 - 5 mi.
0 - 10 mi.
Population 2015 Population
2,200
7,009
15,230
2020 Population
2,274
7,540
16,171
2000-2010 Annual Rate
1.76%
2.06%
-0.15%
2010-2015 Annual Rate
0.59%
2.77%
2.01%
2015-2020 Annual Rate
0.66%
1.47%
1.21%
2015 Total Households
817
2,536
5,766
2020 Total Households
840
2,719
6,102
2000-2010 Annual Rate
1.84%
2.09%
1.17%
2010-2015 Annual Rate
0.28%
2.43%
1.71%
2015-2020 Annual Rate
0.56%
1.40%
1.14%
2015 Average Household Income
$54,950
$54,263
$49,371
2015-2020 Annual Rate
0.97%
1.60%
1.40%
2015 Median Household Income
$69,634
$71,236
$65,193
2015-2020 Annual Rate
1.76%
1.81%
1.75%
Households
8
Dollar General - Fletcher, Oklahoma
Offered Exclusively by
Gill Warner, CCIM Senior Director [email protected] P: +1 918.794.9512 OK License # 131858
going beyond
Sharon Jordan Senior Analyst [email protected] P: +1 918.794.9513
Stan Johnson Company 6120 S Yale Ave Suite 300 Tulsa, OK 74136 stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
Dollar General 416 N. U.S. Highway 277 | Fletcher, OK 73541 Absolute NNN | 15-Year Lease Term | Built in 2015
Confidential Disclaimer This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
Offered Exclusively by Gill Warner, CCIM Senior Director [email protected] P: +1 918.794.9512 OK License #131858
Sharon Jordan Senior Analyst [email protected] P: +1 918.794.9513
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Stan Johnson Company 6120 S Yale Ave Suite 300 Tulsa, OK 74136
stanjohnsonco.com
The Offering
Purchase Price: $1,064,870 Cap Rate: 6.90%
Stan Johnson Company is pleased to offer for sale to qualified investors an attractive retail property 100% leased to Dollar General located in Fletcher, Oklahoma. Dollar General is operating under a Fifteen (15) year Absolute NNN lease with just under Fourteen (14) years remaining. The lease features Four (4), Five (5) year renewal options with 10% rental increases every Five (5) years in the option periods. Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. As of August 13, 2016, Dollar General operated 13,000 stores in 43 states. The company currently holds an investment grade credit rating of BBB/Stable with S&P.
Investment Highlights Long Lease Term Fifteen (15) year lease with Four (4), Five (5) year renewal options. No Landlord Responsibility Absolute Net Lease; Tenant is responsible for all expenses. Rental Increases 10% rental increases every Five (5) years in each option period. Strong Credit Tenant As of January 29, 2016, Dollar General Corporation reported total revenues of $20.36 billion, a net income of $1.16 million, and a net worth of $5.37 billion.
2
Dollar General - Fletcher, Oklahoma
N
Lease Abstract Trade Name:
Dollar General
Property Address:
416 N. U.S. Highway 277 | Fletcher, OK 73541 (Comanche County)
Building Size (SF):
+/- 9,026 SF
Land Size:
+/- 1.79 Acres
Year Constructed:
2015
Primary Term:
Fifteen (15) years
Lease Commencement:
September 17, 2015
Lease Expiration:
September 30, 2030
Lease Term Remaining:
Fourteen (14) years
Current Annual Rent:
$73,476
Rental Increases:
10% in each option
Renewal Options:
Lease Type:
3
Subject Property Photo
Rent Schedule Lease Years
Annual Rent
Monthly Rent
% Increases
1-15
$73,476
$6,123
-
16-20 (Option 1)
$80,820
$6,735
10%
21-25 (Option 2)
$88,908
$7,409
10%
26-30 (Option 3)
$97,788
$8,149
10%
31-35 (Option 4)
$107,568
$8,964
10%
Four (4), Five (5) year options
Absolute NNN
Dollar General - Fletcher, Oklahoma
Tenant Overview Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General was founded in 1939 by Cal Turner in Scottsville, Kentucky as J.L. Turner & Son, Inc. In 1968 the business changed its name to Dollar General Corporation. In 2007 the company was acquired by the private equity firm Kohlberg Kravis Roberts & Co. (KKR), which took the company public in 2009. Dollar General offers both name-brand and generic merchandise — including off-brand goods and closeouts of name-brand items — in the same store, often on the same shelf. Although it has the word “dollar” in the name, Dollar General is not a dollar store. Many of its offerings are priced at more than one dollar. However, goods are usually sold at set price points of penny items and up to the range of 50 to 60 dollars. Dollar General has thrived during the economic recovery of the last several years and their stock has increased 21.48% in the past 12 months. They have reported a twenty-fourth consecutive year of same-store sales growth in 2015 and overall sales grew by 7.9%. As of January 2016, it operated over 13,000 stores located in 43 states. Citing Dollar General’s positive operating momentum, healthy sales and expected cash flow growth, the company currently holds an investment grade rating of BBB/Stable with Standard & Poor’s. Dollar General Corporation (NYSE: DG) reported annual total revenues of $20.36 billion, a net income of $1.16 million, and a net worth in excess of $5.37 billion.
Tenant Credit Summary
4
Dollar General - Fletcher, Oklahoma
Company: Number of Locations: Credit Rating: Stock Symbol: Exchange: YTD Total Revenue: YTD Net Income: YTD Net Worth: Tenant Business: Founded: Headquartered: Website:
Dollar General Corp. 13,000 S&P: BBB/Stable DG NYSE $20.36 Billion $1.16 Million $5.37 Billion Discount, Variety store 1939 Goodlettsville, Tennessee www.dg.com
Site Plan
N
5
Dollar General - Fletcher, Oklahoma
N
Location Overview Fletcher is a town in Comanche County, Oklahoma. The population was 1,177 at the 2010 census. It is located along the heavily trafficked Interstate 44, which connects Tulsa, in Northeastern Oklahoma to Wichita Falls and bisects Oklahoma City. It is a major route for commercial shipping in the state of Oklahoma. Oklahoma City, just 67 miles northeast of Fletcher, is the capital and largest city of Oklahoma. Oklahoma City is on the I-35 Corridor as one of the primary travel corridors into neighboring Texas and Mexico.
6
Dollar General - Fletcher, Oklahoma
Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation’s Mike Monroney Aeronautical Center. The city is headquarters to two Fortune 500 companies, Chesapeake Energy Corporation and Devon Energy Corporation, as well as being home to Love’s Travel Stops & Country Stores, which is ranked thirteenth on Forbes’ list of private companies.
Georgia-Pacific Based in Atlanta, Georgia-Pacific and its subsidiaries are among the world’s leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, office papers, cellulose, specialty fibers, nonwoven fabrics, building products and related chemicals.
IN
TE
RS
TA TE
44
Georgia-Pacific has two locations in Oklahoma, including this facility, which produces gypsum-based building products. Georgia-Pacific employs 980 people in Oklahoma.
Fletcher High School
Elgin Motor
US
Fletcher Elementary School
-2 7
7
(2
,3
98
Ozark Trail VP D) Motel & Restaurant
Trail Auto Services
Wildcat Express
N
City Hall of Fletcher
Hop & Sack Stores
Fletcher Public Park
Demographics 416 N. U.S. Highway 277 | Fletcher, OK 73541
0 - 3 mi.
0 - 5 mi.
0 - 10 mi.
Population 2015 Population
2,200
7,009
15,230
2020 Population
2,274
7,540
16,171
2000-2010 Annual Rate
1.76%
2.06%
-0.15%
2010-2015 Annual Rate
0.59%
2.77%
2.01%
2015-2020 Annual Rate
0.66%
1.47%
1.21%
2015 Total Households
817
2,536
5,766
2020 Total Households
840
2,719
6,102
2000-2010 Annual Rate
1.84%
2.09%
1.17%
2010-2015 Annual Rate
0.28%
2.43%
1.71%
2015-2020 Annual Rate
0.56%
1.40%
1.14%
2015 Average Household Income
$54,950
$54,263
$49,371
2015-2020 Annual Rate
0.97%
1.60%
1.40%
2015 Median Household Income
$69,634
$71,236
$65,193
2015-2020 Annual Rate
1.76%
1.81%
1.75%
Households
8
Dollar General - Fletcher, Oklahoma
Offered Exclusively by
Gill Warner, CCIM Senior Director [email protected] P: +1 918.794.9512 OK License # 131858
going beyond
Sharon Jordan Senior Analyst [email protected] P: +1 918.794.9513
Stan Johnson Company 6120 S Yale Ave Suite 300 Tulsa, OK 74136 stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
