PARACHUTE (BATTLEMENT MESA) COLORADO ACTUAL SITE EXCLUSIVELY MARKETED by Employing Broker: Tony Pierangeli - SRS Real Estate Partners, LLC CO License No
SINGLE TENANT ABSOLUTE NNN Investment Opportunity
2019 CONSTRUCTION - OPENED JULY 2019 Upgraded Architecture/Building Features
119 STONE QUARRY ROAD PARACHUTE (BATTLEMENT MESA) COLORADO ACTUAL SITE EXCLUSIVELY MARKETED BY Employing Broker: Tony Pierangeli - SRS Real Estate Partners, LLC CO License No. ER40024553
JOE SCHUCHERT JIM SCHUCHERT Vice President Vice President SRS National Net Lease Group SRS National Net Lease Group
610 Newport Center Drive, Suite 1500 610 Newport Center Drive, Suite 1500 Newport Beach, CA 92660 Newport Beach, CA 92660 M: 310.971.3116 M: 310.971.3892 [email protected] | CA License No. 01973172 [email protected] | CA License No. 01969414
REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP 2 CONTENTS 5 9 INVESTMENT SUMMARY PROPERTY OVERVIEW Offering Summary | Investment Highlights Aerials | Site Plan | Location Map 18 20 AREA OVERVIEW FINANCIALS Demographics Rent Roll | Brand Profile
ACTUAL SITE NATIONAL NET LEASE GROUP 3 PROPERTY PHOTO
ACTUAL SITE NATIONAL NET LEASE GROUP 4 INVESTMENT SUMMARY
SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in a Dollar General property located in Parachute (Battlement Mesa), Colorado. The store opened for business in July 2019 and has 15 years remaining in the initial lease term with three (3) – five (5) year option periods at 10% rental increases. The lease is absolute NNN in nature with ZERO management responsibilities as Dollar General is responsible for ALL operating expenses, insurance, and property taxes. The lease is guaranteed by Dollar General Corp (NYSE: DG) with an investment grade credit rating of BBB from Standard and Poor’s. The subject property is strategically located along Stone Quarry Road across from the Grand Valley Fire Station & Kum & Go Convenience Store. Parachute is located approximately 42 Miles West of Glenwood Springs, CO; 44 miles NE of Grand Junction; 83 Miles NW of Aspen, CO; 100 Milles West of Vail, CO; 199 Miles SW of Denver, CO & 326 Miles SE of Salt Lake City, UT. The 5-mile trade area is supported by a growing population of 6,178 residents with an average household income of $74,632.
REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP 5 OFFERING SUMMARY Offering
PRICING $2,179,383
NET OPERATING INCOME $130,763
CAP RATE 6.00%
GUARANTY Corporate
TENANT Dollar General
LEASE TYPE Absolute NNN
LANDLORD RESPONSIBILITIES None
Property Specifications
RENTABLE AREA 9,100 SF
LAND AREA 1.61 Acres
PROPERTY ADDRESS 119 Stone Quary Road Parachute, CO 81635
YEAR BUILT 2019
PARCEL NUMBER 2407181-21-002
OWNERSHIP Fee Simple (Land & Building Ownership)
Parcel Map
ACTUAL SITE NATIONAL NET LEASE GROUP 6 INVESTMENT HIGHLIGHTS
DOLLAR GENERAL CORPORATE GUARANTEED LEASE TRADE AREA DEMOGRAPHICS • 15 Years of Guaranteed Lease Term • 1-Mile: • 2019 Construction Build-to-Suit Dollar General • 2,713 Residents • Three (3) – Five (5) Year Option Periods with 10% Rental Increases • $87,311 Average Household Income • 1.40% Annual Population Growth Projected over the Next 5 Years A TRUE COUPON CLIPPER | ABSOLUTE NNN LEASE | ZERO • 3-Mile: MANAGEMENT RESPONSIBILITIES • 5,974 Residents • Absolute NNN with ZERO Management Responsibilities • $74,467 Average Household Income • Tenant Pays for ALL Operating Expenses, Insurance & Property Taxes • 1.10% Annual Population Growth Projected over the Next 5 Years • Ideal, Management-Free Investment for an Out-of-State, Passive Investor • 5-Mile: • 6,178 Residents UPGRADED CONSTRUCTION BUILDING • $74,632 Average Household Income • Split Face Block on Front of Building • 1.11% Annual Population Growth Projected over the Next 5 Years • Hardie Board on All 4 Sides • EIFS Trim on Front of Building • Concrete Parking Lot TENANT • Snow Guards on Roof • Dollar General (NYSE: DG) Features Investment Grade Credit “BBB” by S&P • 15,597 Stores Located in 44 States as of May 3, 2019 PROXIMITY TO CITIES • Ranked #119 on the Fortune 500 List – Up 4 Points From 123 Last Year (Dollar • Glenwood Springs, CO – 42 Miles General Has Moved up the Fortune 500 Ranking for the 11th Consecutive Year) • Grand Junction, CO – 44 Miles • Dollar General Plans to Undertake Some 2,075 Real Estate Projects in 2019, • Aspen, CO – 83 Miles Including 975 New Store Openings (Up from 900 in 2018), 1,000 Mature • Vail, CO – 100 Miles Store Remodels, and 100 Store Relocations • Denver, CO – 199 Miles • Long Term History of Same-Store Sales Growth – 2018 Marked the • Salt Lake City, UT – 326 Miles Company’s 27th Consecutive Year
DOLLAR GENERAL NATIONAL NET LEASE GROUP 7 INVESTMENT HIGHLIGHTS
BATTLEMENT MESA BATTLEMENT MESA PUD • Located on the South Side of the Colorado River – Across from Parachute • 3,200 Acre Community Divided into Villages • Community is Nestled on a Sheltered Mesa with Views of the Roan Plateau to • Community Includes: the North, The Battlements to the South and the Colorado River to the East & • 6 Miles of Hiking & Biking Trails West • Battlement Mesa Golf Club • 53,000 SF Recreation Center PARACHUTE, CO – A SAFE PLACE TO LAND • Neighborhoods: • Located on the I-70 Corridor • Battlement Creek | 79 Single Family Homes • Located on the Western Slope of Colorado • Canyon View | 67 Single Family Homes – 4 Lots Available • Eagles Point | 29 Single Family Homes – 25 Lots Available GARFIELD COUNTY, COLORADO • Fairway Villas | 8 Single Family Homes – 35 Lots Available • Part of the Glenwood Springs, CO Micropolitan Statistical Area which is Also • Mesa Ridge | 85 Townhomes Included in the Edwards-Glenwood Springs, CO Combined Statistical Area • Monument Creek | 299 Single Family Homes • On July 16, 2019 It was Announced that the Bureau of Land Management • Saddleback Village | 318 Manufactured Homes (BLM) is Relocating its Headquarters from Washington DC to Grand Junction, • Stone Ridge Village | 60 Single Family Homes – 5 Lots Available Colorado • Tamarisk Meadows Village | 108 Single Family Homes • County Seat is Glenwood Springs • Tamarisk Village | 181 Single Family Homes • The Reserve | 31 Single Family Homes - 22 Lots Available • Valley View Village | 109 Units – 43 Homes, 50 Four-Plex Townhomes & 18 Six-Plex Condominiums • Willow Creek Village | 76 Single Family Homes – 5 Lots Available • Willow Park | 216 Apartment Units • Willow Ridge | 216 Apartment Units • Saddleback RV Park | 170 Spaces • Saddleback Creek | 282 Manufactured Homes
DOLLAR GENERAL NATIONAL NET LEASE GROUP 8 PROPERTY OVERVIEW
Location Access Traffic Counts Improvements Located in Stone Quarry Road U.S. Highway 6 / Interstate 70 There is approximately 9,100 SF Garfield County 1 Access Point 20,000 Cars Per Day of existing building area
Parking Parcel Year Built Zoning There are approximately 37 Parcel Number: 2407181-21-001 2019 PUD: Planned Unit Development parking spaces on the parcel. Acres: 1.61 The parking ratio is Square Feet: 70,132 SF approximately 4.07 stalls per 1,000 SF of leasable area.
DOLLAR GENERAL NATIONAL NET LEASE GROUP 9 20,000 CARS PER DAY
GRAND VALLEY U.S. HIGHWAY 6 / INTERSTATE 70 HIGH SCHOOL
S. BATTLEMEMT PKWY.
STONE QUARRY RD.
DOLLAR GENRERAL NATIONAL NET LEASE GROUP 10 BEA UNDERWOOD ELEMENTARY SCHOOL GARFIELD COUNTY SCHOOL DISTRICT
UNDERWOOD LN.
STONE QUARRY RD.
DOLLAR GENRERAL NATIONAL NET LEASE GROUP 11 20,000 CARS PER DAY U.S. HIGHWAY 6 / INTERSTATE 70 GRAND VALLEY HIGH SCHOOL
S. BATTLEMEMT PKWY.
STONE QUARRY RD.
DOLLAR GENRERAL NATIONAL NET LEASE GROUP 12 20,000 CARS PER DAY
U.S. HIGHWAY 6 / INTERSTATE 70
S. BATTLEMEMT PKWY.
STONE QUARRY RD.
DOLLAR GENRERAL NATIONAL NET LEASE GROUP 13 BATTLEMENT MESA PUD HOUSING MAP 1 NAME UNITS 31 Single Family Homes 1 The Reserve (22 Lots Available) 2 2 Battlement Creek Village 79 Single Family Homes COUNTY ROAD 301 3 Battlement Mesa Golf Club —
4 Willow Creek Village 76 Single Family Homes 3 (5 Lots Available) 8 Single Family Homes 5 Fairway Villas (35 Lots Available) 6 Willow Ridge Apartments 211 Apartment Units 7 Willow Park Apartments 216 Apartment Units 4 5 9 29 Single Family Homes 8 Eagles Point (25 Lots Available) 6 8 9 Grand Valley Middle School 252 Students 11 7 10 10 Mesa Ridge 85 Townhomes INTERSTATE 70 / STATE HIGHWAY 6 20,000 11 Grand Valley High School 318 Students CARS PER DAY 12 13 COUNTY ROAD 302109 Units 12 Valley View Village • 43 Single Family Homes • 50 Four-Plex Townhomes 14 • 18 Six-Plex Condominiums
13 Stone Ridge Village 60 Single Family Homes 15 (5 Lots Available) 16 67 Single Family Homes 14 Canyon View Village (4 Lots Available) 17 15 Monument Creek Village 299 Single Family Homes
21 16 Saddleback RV Park 170 Spaces 20 19 17 Bea Underwood Middle School 329 Students 18 18 Saddleback Creek 282 Manufatured Homes 19 Tamarisk Meadows 108 Single Family Homes 20 Tamarisk Village 181 Single Family Homes 21 Saddleback Village 318 Manufatured Homes
DOLLAR GENERAL NATIONAL NET LEASE GROUP 14 15
NATIONAL NET LEASE GROUP NATIONAL
STONE QUARRY RD. PYLON SIGN PYLON
ANGELICA CIR. JESSICA LN. JESSICA DOLLAR GENERAL DOLLAR U.S. HIGHWAY 6 / INTERSTATE 70 20,000 GRAND VALLEY CARS PER DAY MIDDLE SCHOOL
GRAND VALLEY HIGH SCHOOL
STONE QUARRYST. JOHN RD. ELEMENTARY SCHOOL
BEA UNDERWOOD ELEMENTARY SCHOOL
DOLLAR GENERAL NATIONAL NET LEASE GROUP 16 LOCATION MAP
DENVER 199 miles VAIL 100 Miles GLENWOOD SPRINGS 42 Miles
PARACHUTE
ASPEN 83 Miles GRAND JUNCTION 2018 ESTIMATED POPULATION 44 Miles 1 Mile 2,713 3 Mile 5,974 5 Mile 6,178 7 Mile 6,495 2018 AVERAGE HOUSEHOLD INCOME 1 Mile $87,311 3 Mile $74,467 5 Mile $74,632 7 Mile $74,845 2018 ESTIMATED TOTAL EMPLOYEES 1 Mile 447 3 Mile 1,578 5 Mile 1,729 7 Mile 1,821
DOLLAR GENERAL NATIONAL NET LEASE GROUP 17 AREA OVERVIEW Parachute, Colorado The Town of Parachute is a Statutory Town in Garfield County, Colorado, United States. The Town of Parachute had a population of 1,137 as of July 1, 2018. The town is the birthplace of Willard Libby, recipient of the 1960 Nobel Prize in Chemistry. The Town of Parachute economic development program is designed to encourage the development, redevelopment, and/or substantial expansion of sales-tax-generating businesses within the Town, provide new employment opportunities for residents of the Town, expand the goods and services available in the Town, and increase the taxes collected by the Town. These taxes will enable the Town to provide expanded and improved municipal services while also stimulating public and private improvements. StartClass evaluated 16,895 US public middle schools in the US on factors including academic performance and school environment to determine a StartClass Rating. Grand Valley Middle School receives a rating of 4 out of 10, which is slightly lower than the average rating of 6 for US public middle schools in Colorado. The average number of students for US public middle schools in Colorado is 494 students, so Grand Valley Middle School is small. The town of Parachute was first established when oil was discovered in a nearby mountain. The oil rush has passed and today an upscale residential community named Battlement Mesa and its attached golf course has marked a new era in the Parachute area. Development beyond this planned community, however, is limited, and much of the land surrounding Parachute remains cattle ranching country. Among these vast and arid hills are some guest ranches that invite visitors to spend a week in the Old West. The countryside near Parachute and the neighboring town of Rifle is also a hunter’s paradise. Horseback riding and rafting are also popular pursuits in the area. Cultural activities and attractions such as the world-famous hot springs and Colorado National Monument are located in Glenwood Springs and Grand Junction, respectively. Garfield County is one of the 64 counties in the U.S. state of Colorado. As of July 1, 2016, the population was 58,887. The county seat is Glenwood Springs. The county is named in honor of United States President James A. Garfield. Garfield County is included in the Glenwood Springs, CO Micropolitan Statistical Area, which is also included in the Edwards-Glenwood Springs, CO Combined Statistical Area.
DOLLAR GENERAL NATIONAL NET LEASE GROUP 18 AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES 7 MILES
2018 Estimated Population 2,713 5,974 6,178 6,495 2023 Projected Population 2,910 6,310 6,528 6,865 2010 Census Population 2,416 5,487 5,671 5,959 Projected Annual Growth 2018 to 2023 1.40% 1.10% 1.11% 1.03% Historical Annual Growth 2010 to 2018 1.41% 1.04% 1.04% 1.24%
2018 Estimated Households 1,036 2160 2,246 2,369 2023 Projected Households 1,104 2270 2,361 2,491 2010 Census Households 946 2027 2107 2,221 Projected Annual Growth 2018 to 2023 1.28% 1.00% 1.00% 0.92% Historical Annual Growth 2010 to 2018 1.09% 0.77% 0.78% 1.01%
2018 Estimated White 96.91% 94.70% 94.76% 94.81% 2018 Estimated Black or African American 0.37% 0.45% 0.47% 0.48% 2018 Estimated Asian or Pacific Islander 0.29% 0.64% 0.62% 0.60% 2018 Estimated American Indian or Native Alaskan 1.11% 2.16% 2.12% 2.08% 2018 Estimated Other Races 5.71% 9.73% 9.58% 9.39% 2018 Estimated Hispanic 14.04% 20.77% 20.57% 20.28%
2018 Estimated Average Household Income $87,311 $74,467 $74,632 $74,845 2018 Estimated Median Household Income $76,217 $62,361 $62,444 $62,592 2018 Estimated Per Capita Income $32,983 $26,966 $27,151 $27,392
2018 Estimated Total Businesses 54 148 161 173 2018 Estimated Total Employees 447 1578 1729 1,821
DOLLAR GENERAL NATIONAL NET LEASE GROUP 19 RENT ROLL
Lease Term Rental Rates SQUARE LEASE LEASE RECOVERY TENANT NAME BEGIN INCREASE MONTHLY PSF ANNUALLY PSF OPTIONS FEET START END TYPE Dollar General 9,100 7/192019 7/31/2034 Current - $10,897 $1.19 $130,763 $14.36 Absolute NNN 3 (5-Year) (Corporate Guaranty) 10% Increases in Options
FINANCIAL INFORMATION Price $2,179,383
Net Operating Income $130,763
Cap Rate 6.00%
Lease Type Absolute NNN
PROPERTY SPECIFICATIONS Year Built 2019
Rentable Area 9,100 SF Land Area 1.61 Acres For financing options and loan quotes: Address 119 Stone Quary Road Please contact our SRS Debt & Equity team at [email protected]. Parachute, CO 81635
ACTUAL SITE NATIONAL NET LEASE GROUP 20 BRAND PROFILE Dollar General dollargeneral.com
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General operated 15,597 stores in 44 states as of May 3, 2019. It competes in the dollar store format with national chains Family Dollar and Dollar Tree, regional chains such as Fred’s in the Southeast, and numerous independently owned stores. In addition to high quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo. Dollar General Corporation was founded in 1939.
COMPANY TYPE 2019 EMPLOYEES 2019 REVENUE Public (NYSE: DG) 135,000 $25.63 B
2019 NET INCOME 2019 ASSETS 2019 EQUITY CREDIT RATING $1.59 B $13.20 B $6.42 B S&P: BBB
REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP 21 SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.
275+ 25+ #1 1500+ $2.6B
RETAIL OFFICES LARGEST REAL ESTATE RETAIL LISTINGS TRANSACTION PROFESSIONALS SERVICES FIRM in 2018 VALUE in North America in 2018 exclusively dedicated to retail
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
*Statistics are for 2018
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