COEBURN VIRGINIA ACTUAL SITE EXCLUSIVELY MARKETED by Broker of Record: David Wirth, SRS Real Estate Partners-Northeast, LLC | VA License No
SINGLE TENANT Investment Opportunity Relocation Store 2019 Store Remodel
202 FRONT STREET EAST COEBURN VIRGINIA ACTUAL SITE EXCLUSIVELY MARKETED BY Broker of Record: David Wirth, SRS Real Estate Partners-Northeast, LLC | VA License No. 0225198340
JIM SCHUCHERT JOE 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: 310.971.3892 M: 310.971.3116 [email protected] | CA License No. 01969414 [email protected] | CA License No. 01973172
2 ACTUAL SITE NATIONAL NET LEASE GROUP 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
3 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP PROPERTY PHOTO
4 ACTUAL SITE NATIONAL NET LEASE GROUP 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 Family Dollar property located in Coeburn, Virginia. Built in 2014, the subject property was a relocation of an existing store down the street demonstrating Family Dollar’s long-term commitment to the Coeburn market. In January 2019, the subject property underwent extensive renovations at the sole cost and expense of Family Dollar; further demonstrating their commitment to this location. The lease has approximately 4.75 years remaining in the initial 10-year lease term with six (6) – five (5) year options at 10% rent increases. The NN+ lease has minimal landlord responsibilities limited to roof and parking lot – Family Dollar is solely responsible for the repair/replacement of the HVAC and is responsible for the first $2,500.00 in asphalt/concrete repairs to the parking lot in any lease year. The subject property is strategically located in the heart of Coeburn on Front Street East with traffic counts in excess of 4,500 vehicles per day. Coeburn is nested in the mountains of Southwest Virginia and is situated in the southeastern portion of Wise County, just off Route 58. Coeburn is also widely known today for its beautiful downtown, complete with antique lamps, brick sidewalks and pedestrian bridges. Coeburn is located 40 miles north of Kingsport, TN; 54 miles north of Bristol, VA; and 63 miles north of Johnson City, TN. The 7-mile trade area is supported by a population of 19,071 residents with an average household income of $51,321.
5 ACTUAL SITE NATIONAL NET LEASE GROUP OFFERING SUMMARY Offering
PRICING $1,315,152
NET OPERATING INCOME $108,500
CAP RATE 8.25%
GUARANTY Corporate
TENANT Family Dollar Stores of Virginia, Inc.
LEASE TYPE NN+
LANDLORD RESPONSIBILITIES Roof (20 Year Warranty) & Parking Lot*
*Tenant is Responsible for the First $2,500 in Parking Lot Repairs in Any Lease Year
Property Specifications
RENTABLE AREA 8,400 SF
LAND AREA 1.74 Acres
PROPERTY ADDRESS 202 Front Street E Coeburn, VA 24230
YEAR BUILT 2014
PARCEL NUMBER 51195C0255D
OWNERSHIP Fee Simple (Land & Building)
Parcel Map
6 ACTUAL SITE NATIONAL NET LEASE GROUP INVESTMENT HIGHLIGHTS
FAMILY DOLLAR CORPORATE GUARANTEED LEASE PROXIMITY TO MAJOR CITIES • Approximately 4.75 Years Remaining in the Initial 10 Year Lease Term • Kingsport, Tennessee | 40 Miles – 1 Hour Drive • 2014 Upgraded Construction (Brick Front Exterior) • Bristol, Virginia | 54 Miles – 1 Hour Drive • Six (6) – Five (5) Year Options with 10% Rent Increases • Johnson City, Tennessee | 63 Miles – 1 Hour 20 Minute Drive
NN+ LEASE | MINIMAL LANDLORD RESPONSIBILITIES JANUARY 2019 STORE REMODEL • Landlord Responsibilities Limited to Roof and Parking Lot • In January 2019, Family Dollar Celebrated its Grand Re-Opening After • Roof is Warranted for a Period of 20 Years Extensive Renovations at the Sole Cost and Expense of Family Dollar • Tenant is Responsible for Maintaining, Repairing & Replacement of HVAC Units • Further Signifies Family Dollar’s Commitment to the Location • Tenant Responsible for Lawn and Landscape Maintenance (Snow & Trash Removal), Repairing Parking Area Lights; and Restriping the Parking Lot FAMILY DOLLAR “H2” REMODEL • Tenant is Responsible for Parking Lot Repairs Until the Aggregate Costs Equal • After Continued Development, Experimentation and Testing, Family Dollar $2,500.00 in any Lease Year Recently Rolled Out a New Model for Both New and Renovated Family Dollar Stores Known as “H2” RELOCATION STORE | LONG TERM COMMITMENT TO MARKET • At the End of 2018, Family Dollar had Approximately 200 Stores with This • In 2014, Family Dollar Relocated to its Current Location from an Older Format Location Down the Street • This New “H2” Model has Significantly Improved Merchandise Offerings, • Former Family Dollar was Located Less than 0.5 Miles Away at 603 Front Including Dollar Tree $1.00 Merchandise Sections and Establishing a Minimum Street Number of Freezer and Cooler Doors, Throughout the Store • The Stores with the “H2” Format Have Increased Traffic and Provided an Average Comparable Store Net Sales Lift in Excess of 10% • In 2019, Family Dollar Plans to Renovate at Least 1,000 Stores to this Format
7 NATIONAL NET LEASE GROUP INVESTMENT HIGHLIGHTS
COEBURN, VIRGINIA TRADE AREA DEMOGRAPHICS • Nestled in the Mountains of Southwest Virginia • 3-Mile • Originally, the Town was Named Guest Station After Christopher Gist • 5,552 Residents • When the Town Was Incorporated in 1894, The Name Was Changed to • $44,988 Average Household Income Coeburn in Honor of W.W. Coe, Chief Engineer of the N&W Railroad, and Judge • 5-Mile W.E. Burns • 10,166 Residents • Camping is Available Nearby at Bark Camp Lake in the Jefferson National • $46,909 Average Household Income Forest with Other Activities Including Boating and Fishing • 7-Mile • 19,071 Residents TENANT • $51,321 Average Household Income • Dollar Tree, Inc. (NASDAQ: DLTR) Features Investment Grade Credit (BBB-) by Standard & Poor’s • 15,264 Stores in 48 States as of May 4, 2019 • Ranked #135 on the Fortune 500 List • High Growth Tenant – in 2019 Family Dollar/Dollar Tree Plans to Open 550 New Stores and Have Identified the Additional Market Opportunities to Support a Total of at Least 26,000 Stores Across North America
8 NATIONAL NET LEASE GROUP PROPERTY OVERVIEW
Location Access Traffic Counts Improvements Located in Front Street E / Front Street E / There is approximately Wise County State Highway 158 & 72 State Highway 158 & 72 8,400 SF of existing 1 Access Point 4,500 Cars Per Day building area
U.S. Highway 58 Alternate 7,800 Cars Per Day
Parking Parcel Year Built Zoning There are approximately Parcel Number: 51195C0255D 2014 Commercial 22 parking spaces Acres: 1.74 on the owned parcel. Square Feet: 75,707 SF
The parking ratio is approximately 2.61 stalls per 1,000 SF of leasable area.
9 NATIONAL NET LEASE GROUP 4,500 CARS PER DAY
TATE AVE. NE. FRONT STREET EAST / STATE HIGHWAY 158 & 72
10 NATIONAL NET LEASE GROUP 7,800 CARS PER DAY
U.S. HIGHWAY 58 ALTERNATE
4,500 CARS PER DAY
FRONT STREET EAST / STATE HIGHWAY 158 & 72 TATE AVE. NE.
11 NATIONAL NET LEASE GROUP FRONT STREET EAST / STATE HIGHWAY 158 & 72 4,500 CARS PER DAY
12 NATIONAL NET LEASE GROUP 7,800 CARS PER DAY
U.S. HIGHWAY 58 ALTERNATE
4,500 EASTSIDE CARS PER DAY FRONT STREET EAST / STATE HIGHWAY 158 & 72 HIGH SCHOOL
TATE AVE. NE.
13 NATIONAL NET LEASE GROUP 2ND ST. N.E.
TATE AVE. N.E.
4,500 CARS PER DAY
FRONT STREET EAST / STATE HIGHWAY 158 & 72
14 NATIONAL NET LEASE GROUP EASTSIDE HIGH TATE AVE. N.E. SCHOOL 4,500 CARS PER DAY
MARTY SHOPPING CENTER & 72 F 158 RONT ST AY REET E/ HW STATE HIG
ATE U.S. HIGHWAY 58 ALTERN
7,800 CARS PER DAY
COEBURN AIRPORT
15 NATIONAL NET LEASE GROUP 4,500 CARS PER DAY
FROSTY BOSSIE
FRONT ST. E
TATE AVE. NE
PYLON SIGN
BIG BOY'S PIZZA
16 NATIONAL NET LEASE GROUP LOCATION MAP CHARLESTON 2019 ESTIMATED POPULATION 215 min 202 miles 3 Mile 5,552 5 Mile 10,166 LEXINGTON 7 Mile 19,071 207 min 215 miles 2019 AVERAGE HOUSEHOLD INCOME 3 Mile $44,988 5 Mile $46,909 7 Mile $51,321 2019 ESTIMATED TOTAL EMPLOYEES 3 Mile 1,727 5 Mile 2,392 7 Mile 4,725
COEBURN
KINGPORT 66 min 56 miles
WINSTON-SALEM 182 min 196 miles KNOXVILLE 145 min 139 miles
CHARLOTTE 226 min 234 miles
17 NATIONAL NET LEASE GROUP AREA OVERVIEW Coeburn, Virginia Coeburn is a town in Wise County, Virginia, along the Guest River. The Town of Coeburn had a population of 2,184 as of July 1, 2019. With many small peaceful wooded communities in the outskirts. Camping is available nearby at Bark Camp Lake in the Jefferson National Forest with other activities including boating and fishing. The Guest River Gorge Trail, built along the Guest River on what was formerly the Interstate Railroad, is also located in the Jefferson National Forest and is a popular place to walk or ride a bicycle. Recently Coeburn joined with neighboring town Saint Paul on the Mountain View Trail System for ATVs. The Town of Coeburn is nestled in the mountains of Southwest Virginia and is situated in the southeastern portion of Wise County, just off Route 58. Originally, the town was named Guest Station after Christopher Gist. When the town was incorporated in 1894, the name was changed to Coeburn in honor of W. W. Coe, Chief Engineer of the N&W Railroad, and Judge W. E. Burns. The home of Jim & Jesse and Ralph Stanley II, Coeburn is also widely known today for its beautiful downtown, complete with antique lamps, brick sidewalks, and pedestrian bridges. The town spans 1.9 square miles and is home to approximately 2,000 people. We are conveniently located within a 10 minute drive of lodging, restaurants and shopping. Wise County is a county located in the U.S. state of Virginia. As of July 1, 2018, the population was 38,012. Its county seat is Wise. The county was formed in 1856 from Lee, Scott, and Russell Counties and named for Henry A. Wise, who was the Governor of Virginia at the time. A large portion of the Jefferson National Forest is contained within Wise County, and the Clinch River winds through the county. These two factors, combined with Wise County’s location in the Appalachian Mountains, mean that Wise County offers many opportunities for outdoor recreation. In addition to many trails connecting to and surrounding the Appalachian Trail system, Wise county is home to many parks, including Miners’ Park in Big Stone Gap and the Louis E. Henegar Miners’ Memorial Park in Appalachia. Among the unique features of Wise County are High Knob, a mountain which featured one of the last remaining Appalachian Fire Towers until its destruction by arson on October 31, 2007, and Wetlands Estonoa, an Appalachian Wetland and part of the Clinch River Watershed.
18 NATIONAL NET LEASE GROUP AREA DEMOGRAPHICS
3 MILE 5 MILES 7 MILES
2019 Estimated Population 5,552 10,166 19,071 2024 Projected Population 5,521 10,150 19,079 2010 Census Population 5,332 9,633 17,990 Historical Annual Growth 2010 to 2019 0.44% 0.58% 0.63%
2019 Estimated Households 2,252 4,097 7,550 2024 Projected Households 2,246 4,103 7,565 2010 Census Households 2,146 3,839 7,058 Historical Annual Growth 2010 to 2019 0.52% 0.71% 0.73%
2019 Estimated White 95.85% 94.39% 94.76% 2019 Estimated Black or African American 2.38% 3.70% 3.06% 2019 Estimated Asian or Pacific Islander 0.22% 0.36% 0.64% 2019 Estimated American Indian or Native Alaskan 0.18% 0.20% 0.16% 2019 Estimated Other Races 0.65% 0.59% 0.63% 2019 Estimated Hispanic 1.39% 1.41% 1.57%
2019 Estimated Average Household Income $44,988 $46,909 $51,321 2019 Estimated Median Household Income $30,717 $32,653 $36,061 2019 Estimated Per Capita Income $18,273 $18,580 $20,427
2019 Estimated Total Businesses 182 243 446 2019 Estimated Total Employees 1,727 2,392 4,725
19 NATIONAL NET LEASE GROUP RENT ROLL
Lease Term Rental Rates SQUARE LEASE LEASE RECOVERY TENANT NAME BEGIN INCREASE MONTHLY PSF ANNUALLY PSF OPTIONS FEET START END TYPE Family Dollar 8,400 09/30/2013 06/30/2024 Current - $9,042 $1.08 $108,500 $12.92 NN+ 6 (5-Year)
(Corporate Guaranty) 10% Increase At Option Periods
FINANCIAL INFORMATION Price $1,315,152
Net Operating Income $108,500
Cap Rate 8.25%
Lease Type NN+
PROPERTY SPECIFICATIONS Year Built 2014
Rentable Area 8,400 SF
Land Area 1.74 Acres For financing options and loan quotes:
Address 202 Front Street E Please contact our SRS Debt & Equity team at [email protected]. Coeburn, VA 24230
20 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP BRAND PROFILE Family Dollar familydollar.com Family Dollar Stores, Inc. operates a chain of general merchandise retail discount stores primarily for low- and middle-income consumers in the United States. For more than 55 years, Family Dollar has been providing value and convenience to customers in easy-to-shop neighborhood locations. Family Dollar’s mix of name brands, and quality, private brand merchandise appeals to shoppers in more than 8,200 stores in rural and urban settings across 46 states. Helping families save on the items they need with everyday low prices creates a strong bond with customers who refer to their neighborhood store as “my Family Dollar.” Family Dollar, headquartered in Matthews, North Carolina, is a wholly-owned subsidiary of Dollar Tree, Inc. of Chesapeake, Virginia.
COMPANY TYPE PARENT 2019 EMPLOYEES Subsidiary Dollar Tree 57,200
2019 REVENUE 2019 ASSETS 2019 EQUITY CREDIT RATING $22.82 B $13.5 B $5.64 B S&P: BBB-
21 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP 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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