DOLLAR GENERAL
DOLLAR GENERAL
3505 Lovett Rd | Waresboro (Waycross), Georgia 31564
Representative Photo
CONFIDENTIAL OFFERING MEMORANDUM
STANJOHNSONCO.COM
Tulsa Atlanta Chicago New York
Houston Los Angeles Phoenix San Francisco
NET LEASED INVESTMENT OFFERING
CONFIDENTIAL DISCLAIMER This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 3505 Lovett Rd, Waycross, Georgia 31503 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of SJC. By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC. This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The materials do not purport to be all-inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating the materials without reliance upon SJC, or any of its affiliates or any of the information set out in the Materials. Neither SJC nor any of its affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. 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. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 2
NET LEASED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
Purchase Price: $1,089,000 Cap Rate: 7.00%
• Brand new Fifteen (15) year lease with Four (4), Five (5) year renewal options with 10% rent increases in each option • Absolute Triple-Net (NNN) - Tenant is responsible for all expenses including roof, structure, taxes, insurance and common area maintenance • 100% leased and guaranteed by Dollar General
Representative Photo
OFFERED EXCLUSIVELY BY Brett Butler | Director [email protected] Andrew Peeples | Associate [email protected] Stan Johnson, Georgia #348269 Stan Johnson Company 10333 Richmond Ave | Suite 740 Houston, Texas 77042
Stan Johnson Company is pleased to offer for sale to qualified investors a brand new Dollar General property located in Waresboro (Waycross), Georgia. Dollar General will be operating under a NNN lease with a new Fifteen (15) year base lease term. The lease features Four (4), Five (5) year renewal options with a 10% rent increase in each option. The subject property is located directly on the corner of US Route 82 (8,630 VPD) and Lovett Rd. Waresboro is located just over 7 miles from the city of Waycross, Georgia. Waycross is the principal city of the Waycross micropolitan area, a micropolitan area that covers Pierce and Ware counties and had a combined population of 51,119 at the 2000 Census.
• The subject property is located directly on the corner of US Route 82 (8,630 VPD) and Lovett Road and serves as a primary convenience shopping destination within the community • Located just seven miles west of Waycross, Georgia micropolitan area (Pop: 51,119) • Dollar General currently holds an investment grade credit rating of BBB-/Stable with S&P
P: 832.476.3440| F: 832.476.3449 www.stanjohnsonco.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 3
NET LEASED INVESTMENT OFFERING
LEASE ABSTRACT
INVESTMENT SUMMARY
Location:
Lovett Road Waresboro, GA 31564
Building Size:
+/- 9,100 SF
Offering Price:
$1,089,000
Lot Size:
+/- 1.81 Acres
Offering Cap Rate:
7.00%
Year Built:
2013
Current Annual Rent:
$76,230
Lease Commencement:
January 25, 2013
Tenant Trade Name:
Dollar General
Lease Expiration:
January 31, 2028
Base Lease Term:
Fifteen (15) Years
Lease Term Remaining:
Fifteen (15) Years
Renewal Options:
Four (4), Five (5) year renewal options
Annual Rent:
$76,230
Rental Increases:
10% increases in each option
Expenses:
NNN - Absolute net lease. Tenant is responsible for all expenses including roof, structure, taxes, insurance and common area maintenance.
Lovett Road | Waresboro, GA 31564
RENT SCHEDULE Years
Rent
1-15
$76,230 (Current)
15-19 (Option 1)
$83,886
19-23 (Option 2)
$92,274
23-27 (Option 3)
$101,501
27-31 (Option 4)
$111,651
Representative Photo
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 4
NET LEASED INVESTMENT OFFERING
TENANT OVERVIEW Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. As of March 2012, Dollar General operated 10,000+ stores in 39 states. 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 in the recession of the past several years. Dollar General’s stock has increased by 46% in the past 12 months, recent Q4 earnings increased by 31%, and its most recent fiscal year same-store sales rose by 6% (compared to a 1.6% increase by Wal-Mart). Citing Dollar General’s positive operating momentum, healthy sales and expected cash flow growth, Standard & Poor’s
recently upgraded Dollar General’s corporate credit rating to an investment grade BBB- with a stable outlook. As of May 3, 2012, Dollar General Corporation reported total revenues of $15.26 billion, a net income of $823 million and a net worth in excess of $4.59 billion. The company currently holds an investment grade credit rating of BBB-/Stable with S&P.
TENANT PROFILE Company:
Dollar General
Number of Locations:
10,000 +
Credit Rating:
S&P : BBB -/Stable
Stock Symbol:
DG
Exchange:
NYSE
FY 2012 Revenue:
$15.26 Billion
Net Worth as of 2/2/2012:
$4.59 Billion
Tenant Business: Discount, Variety store Founded:
1939
Headquartered:
Goodlettsville, Tennessee
Website:
www.dg.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 5
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW Waresboro is an unincorporated community in Ware County, Georgia, United States. It is located 7 miles west of Waycross and is part of the Waycross Micropolitan Statistical Area. It was the first County Seat of Ware County. Waycross is the county seat of, and only incorporated city in, Ware County in the U.S. state of Georgia. Waycross is the principal city of the Waycross micropolitan area, a micropolitan area that covers Pierce and Ware counties and had a combined population of 51,119 at the 2000 Census. The area now known as Waycross was first settled around 1820, locally known as “Old Nine” or “Number Nine” and then Pendleton. It was renamed Tebeauville in 1857, incorporated in 1866 and designated county seat of Ware County in 1873. Then it was incorporated as “Way Cross” on March 3, 1935.
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 6
NET LEASED INVESTMENT OFFERING
AREA MAP
E LOV TT R
HIGHWAY HEAVEN TRUCK STOP
OA D
WAYCROSS, GA MICROPOLITAN AREA POPULATION: 51,119
30 2 (8,6
U S -8
VPD)
AL
AV E NY BA AL
US
-8
2(
8,
)
63
PD
0V
8V
PD
)
06
(6,
(2,
57
E AV
0V
PD
NY
)
BA WARESBORO ELEMENTARY SCHOOL
SANKOFA HEALING & ENRICHMENT
WAYCROSS, GA
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 7
NET LEASED INVESTMENT OFFERING
DEMOGRAPHICS LOVETTE RD | WARESBORO, GA 31564
0-1 Mile
%
0-3 Miles
%
0-5 Miles
%
0-7 Miles
%
0-10 Miles
%
Population 2018 Projection
152
1,118
6,252
18,515
36,064
2013 Estimate
147
1,095
6,060
18,082
35,222
2010 Census
145
1,087
5,963
17,915
34,908
2000 Census
139
1,056
5,057
16,783
33,352
Growth 2000 - 2010
4.32%
2.94%
17.92%
6.74%
4.67%
2018 Projection
56
399
1,621
6,325
13,391
2013 Estimate
54
392
1,574
6,202
13,097
2010 Census
54
391
1,556
6,173
13,014
2000 Census
49
364
1,388
6,010
12,634
Growth 2000 - 2010
10.20%
7.42%
12.10%
2.71%
3.01%
147
1,095
6,060
18,082
35,222
Households
2013 Est. Population by Single Classification Race White Alone
137
93.20
1,004
91.69
4,555
75.17
11,817
65.35
22,987
65.26
Black or African American Alone
4
2.72
51
4.66
1,324
21.85
5,548
30.68
10,656
30.25
American Indian and Alaska Native Alone
0
0.00
2
0.18
13
0.21
58
0.32
124
0.35
Asian Alone
1
0.68
5
0.46
18
0.30
68
0.38
255
0.72
Native Hawaiian and Other Pacific Islander Alone
0
0.00
2
0.18
6
0.10
9
0.05
13
0.04
Some Other Race Alone
3
2.04
26
2.37
100
1.65
275
1.52
583
1.66
Two or More Races
1
0.68
6
0.55
45
0.74
308
1.70
602
1.71
2013 Est. Average Household Income
$52,657
$51,989
$53,343
$45,448
$46,502
2013 Est. Median Household Income
$46,235
$46,227
$45,244
$35,430
$34,241
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 8
NET LEASED INVESTMENT OFFERING
OFFERED EXCLUSIVELY BY Brett Butler | Director [email protected] Andrew Peeples | Associate [email protected] Stan Johnson, Georgia #348269 Stan Johnson Company 10333 Richmond Ave | Suite 740 Houston, Texas 77042 P: 832.476.3440| F: 832.476.3449 www.stanjohnsonco.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 9
3505 Lovett Rd | Waresboro (Waycross), Georgia 31564
Representative Photo
CONFIDENTIAL OFFERING MEMORANDUM
STANJOHNSONCO.COM
Tulsa Atlanta Chicago New York
Houston Los Angeles Phoenix San Francisco
NET LEASED INVESTMENT OFFERING
CONFIDENTIAL DISCLAIMER This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 3505 Lovett Rd, Waycross, Georgia 31503 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of SJC. By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC. This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The materials do not purport to be all-inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating the materials without reliance upon SJC, or any of its affiliates or any of the information set out in the Materials. Neither SJC nor any of its affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. 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. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 2
NET LEASED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
Purchase Price: $1,089,000 Cap Rate: 7.00%
• Brand new Fifteen (15) year lease with Four (4), Five (5) year renewal options with 10% rent increases in each option • Absolute Triple-Net (NNN) - Tenant is responsible for all expenses including roof, structure, taxes, insurance and common area maintenance • 100% leased and guaranteed by Dollar General
Representative Photo
OFFERED EXCLUSIVELY BY Brett Butler | Director [email protected] Andrew Peeples | Associate [email protected] Stan Johnson, Georgia #348269 Stan Johnson Company 10333 Richmond Ave | Suite 740 Houston, Texas 77042
Stan Johnson Company is pleased to offer for sale to qualified investors a brand new Dollar General property located in Waresboro (Waycross), Georgia. Dollar General will be operating under a NNN lease with a new Fifteen (15) year base lease term. The lease features Four (4), Five (5) year renewal options with a 10% rent increase in each option. The subject property is located directly on the corner of US Route 82 (8,630 VPD) and Lovett Rd. Waresboro is located just over 7 miles from the city of Waycross, Georgia. Waycross is the principal city of the Waycross micropolitan area, a micropolitan area that covers Pierce and Ware counties and had a combined population of 51,119 at the 2000 Census.
• The subject property is located directly on the corner of US Route 82 (8,630 VPD) and Lovett Road and serves as a primary convenience shopping destination within the community • Located just seven miles west of Waycross, Georgia micropolitan area (Pop: 51,119) • Dollar General currently holds an investment grade credit rating of BBB-/Stable with S&P
P: 832.476.3440| F: 832.476.3449 www.stanjohnsonco.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 3
NET LEASED INVESTMENT OFFERING
LEASE ABSTRACT
INVESTMENT SUMMARY
Location:
Lovett Road Waresboro, GA 31564
Building Size:
+/- 9,100 SF
Offering Price:
$1,089,000
Lot Size:
+/- 1.81 Acres
Offering Cap Rate:
7.00%
Year Built:
2013
Current Annual Rent:
$76,230
Lease Commencement:
January 25, 2013
Tenant Trade Name:
Dollar General
Lease Expiration:
January 31, 2028
Base Lease Term:
Fifteen (15) Years
Lease Term Remaining:
Fifteen (15) Years
Renewal Options:
Four (4), Five (5) year renewal options
Annual Rent:
$76,230
Rental Increases:
10% increases in each option
Expenses:
NNN - Absolute net lease. Tenant is responsible for all expenses including roof, structure, taxes, insurance and common area maintenance.
Lovett Road | Waresboro, GA 31564
RENT SCHEDULE Years
Rent
1-15
$76,230 (Current)
15-19 (Option 1)
$83,886
19-23 (Option 2)
$92,274
23-27 (Option 3)
$101,501
27-31 (Option 4)
$111,651
Representative Photo
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 4
NET LEASED INVESTMENT OFFERING
TENANT OVERVIEW Dollar General is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. As of March 2012, Dollar General operated 10,000+ stores in 39 states. 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 in the recession of the past several years. Dollar General’s stock has increased by 46% in the past 12 months, recent Q4 earnings increased by 31%, and its most recent fiscal year same-store sales rose by 6% (compared to a 1.6% increase by Wal-Mart). Citing Dollar General’s positive operating momentum, healthy sales and expected cash flow growth, Standard & Poor’s
recently upgraded Dollar General’s corporate credit rating to an investment grade BBB- with a stable outlook. As of May 3, 2012, Dollar General Corporation reported total revenues of $15.26 billion, a net income of $823 million and a net worth in excess of $4.59 billion. The company currently holds an investment grade credit rating of BBB-/Stable with S&P.
TENANT PROFILE Company:
Dollar General
Number of Locations:
10,000 +
Credit Rating:
S&P : BBB -/Stable
Stock Symbol:
DG
Exchange:
NYSE
FY 2012 Revenue:
$15.26 Billion
Net Worth as of 2/2/2012:
$4.59 Billion
Tenant Business: Discount, Variety store Founded:
1939
Headquartered:
Goodlettsville, Tennessee
Website:
www.dg.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 5
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW Waresboro is an unincorporated community in Ware County, Georgia, United States. It is located 7 miles west of Waycross and is part of the Waycross Micropolitan Statistical Area. It was the first County Seat of Ware County. Waycross is the county seat of, and only incorporated city in, Ware County in the U.S. state of Georgia. Waycross is the principal city of the Waycross micropolitan area, a micropolitan area that covers Pierce and Ware counties and had a combined population of 51,119 at the 2000 Census. The area now known as Waycross was first settled around 1820, locally known as “Old Nine” or “Number Nine” and then Pendleton. It was renamed Tebeauville in 1857, incorporated in 1866 and designated county seat of Ware County in 1873. Then it was incorporated as “Way Cross” on March 3, 1935.
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 6
NET LEASED INVESTMENT OFFERING
AREA MAP
E LOV TT R
HIGHWAY HEAVEN TRUCK STOP
OA D
WAYCROSS, GA MICROPOLITAN AREA POPULATION: 51,119
30 2 (8,6
U S -8
VPD)
AL
AV E NY BA AL
US
-8
2(
8,
)
63
PD
0V
8V
PD
)
06
(6,
(2,
57
E AV
0V
PD
NY
)
BA WARESBORO ELEMENTARY SCHOOL
SANKOFA HEALING & ENRICHMENT
WAYCROSS, GA
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 7
NET LEASED INVESTMENT OFFERING
DEMOGRAPHICS LOVETTE RD | WARESBORO, GA 31564
0-1 Mile
%
0-3 Miles
%
0-5 Miles
%
0-7 Miles
%
0-10 Miles
%
Population 2018 Projection
152
1,118
6,252
18,515
36,064
2013 Estimate
147
1,095
6,060
18,082
35,222
2010 Census
145
1,087
5,963
17,915
34,908
2000 Census
139
1,056
5,057
16,783
33,352
Growth 2000 - 2010
4.32%
2.94%
17.92%
6.74%
4.67%
2018 Projection
56
399
1,621
6,325
13,391
2013 Estimate
54
392
1,574
6,202
13,097
2010 Census
54
391
1,556
6,173
13,014
2000 Census
49
364
1,388
6,010
12,634
Growth 2000 - 2010
10.20%
7.42%
12.10%
2.71%
3.01%
147
1,095
6,060
18,082
35,222
Households
2013 Est. Population by Single Classification Race White Alone
137
93.20
1,004
91.69
4,555
75.17
11,817
65.35
22,987
65.26
Black or African American Alone
4
2.72
51
4.66
1,324
21.85
5,548
30.68
10,656
30.25
American Indian and Alaska Native Alone
0
0.00
2
0.18
13
0.21
58
0.32
124
0.35
Asian Alone
1
0.68
5
0.46
18
0.30
68
0.38
255
0.72
Native Hawaiian and Other Pacific Islander Alone
0
0.00
2
0.18
6
0.10
9
0.05
13
0.04
Some Other Race Alone
3
2.04
26
2.37
100
1.65
275
1.52
583
1.66
Two or More Races
1
0.68
6
0.55
45
0.74
308
1.70
602
1.71
2013 Est. Average Household Income
$52,657
$51,989
$53,343
$45,448
$46,502
2013 Est. Median Household Income
$46,235
$46,227
$45,244
$35,430
$34,241
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 8
NET LEASED INVESTMENT OFFERING
OFFERED EXCLUSIVELY BY Brett Butler | Director [email protected] Andrew Peeples | Associate [email protected] Stan Johnson, Georgia #348269 Stan Johnson Company 10333 Richmond Ave | Suite 740 Houston, Texas 77042 P: 832.476.3440| F: 832.476.3449 www.stanjohnsonco.com
BRETT BUTLER | ANDREW PEEPLES | 832.476.3440 | PAGE 9
