Dollar General Orangfield, TX
offering memorandum ™ DOLLAR GENERAL PORTOLIO
7501 MABELVALE CUT OFF RD | LITTLE ROCK, AR
9692 FM 105 | ORANGEFIELD, TX
Representative Photo CONTENTS
03 EXECUTIVE SUMMARY
04 FINANCIAL OVERVIEW
06 TENANT OVERVIEW
11 AREA OVERVIEW
LISTED BY
Josh Bishop VP & Director [email protected] DIR 214.692.2289 MOB 315.730.6228 LIC # 688810 (TX)
Clay Smith Associate LIC # 693140 (TX)
BROKER OF RECORD
Jessica Dearnley BROKER OF RECORD LIC # PB00069947 (AR)
LITTLE ROCK, AR EXECUTIVE OVERVIEW
INVESTMENT HIGHLIGHTS LEASE • Newer construction buildings • Extremely strong corporate guaranty from Dollar General • Little Rock lease includes a 3% rent increase in September of 2019 • Dollar General extended the Orangefield lease 4 years early, proving their commitment to the site • Fee simple deals – buyer will benefit from the ability to depreciate these assets
LOCATION
LITTLE ROCK, AR • Located in the largest city in Arkansas • 1-mile population in excess of 9,576 • 3-mile population in excess of 35,942 • Estimated population growth of 2%
ORANGEFIELD, TX • Located in income tax-free state • Approximately 12 miles east of Beaumont, TX; a city with one of the nation’s largest ports • 3-mile population in excess of 7,869 • 5-mile population in excess of 30,616 • Estimated population growth of nearly 6% • Average household income of $73,000 annually
TENANT • Strong investment grade credit tenant; Standard & Poor’s rating of BBB, which was recently upgraded from its previous rating of BBB- • Dollar General is the only dollar store with investment grade credit • Dollar General currently has ±13,500 locations nationwide with plans to continue expanding over the next several years
3 $ FINANCIAL OVERVIEW
LITTLE ROCK, AR
EXECUTIVE SUMMARY
Tenant Dollar General FINANCIAL HIGHLIGHTS Property Street 7501 Mabelvale Cut Off Rd City, State Little Rock, AR GLA ±9,014 SF Lot Size ±1.27 AC (±55,321 SF) LIST PRICE CAP RATE TERM REMAINING Year Built 2009 $1,828,525 8.00% ±6.5 YEARS as a portfolio TENANT SUMMARY
Tenant Trade Name Dollar General Corporation ANNUALIZED OPERATING DATA Type of Ownership Fee Simple Lease Guarantor Corporate Monthly Rent Annual Rent Rent/SF Cap Rate Lease Type NN Current - 8/31/19 $6,620.42 $79,445.04 $8.81 8.00% Roof & Structure Owner Responsibility 9/1/19 - 8/31/24 $6,819.00 $81,828.00 $9.08 8.24% Original Lease Term 15 Years Extension 1 $7,500.92 $90,011.04 $9.99 9.06% Rent Commencement Date 8/27/2009 Extension 2 $8,251.00 $99,012.00 $10.98 9.97% Lease Expiration Date 8/31/2024 Extension 3 $9,076.08 $108,912.96 $12.08 10.97% Term Remaining ±6.5 years Extension 4 $9,983.67 $119,804.04 $13.29 12.06% 3% bump in year 11; 10% at Increases Extension 5 $10,982.00 $131,784.00 $14.62 13.27% each extemsion Options Five, 5-Year Extensions
4 $
ORANGEFIELD, TX
EXECUTIVE SUMMARY
Tenant Dollar General FINANCIAL HIGHLIGHTS Property Street 9692 FM 105 City, State Orangefield, TX GLA ±9,014 SF Lot Size ±0.93 AC (±40,641 SF) LIST PRICE CAP RATE TERM REMAINING Year Built 2010 $1,828,525 8.00% ±7 YEARS as a portfolio TENANT SUMMARY
Tenant Trade Name Dollar General Corporation ANNUALIZED OPERATING DATA Type of Ownership Fee Simple Lease Guarantor Corporate Monthly Rent Annual Rent Rent/SF Cap Rate Lease Type NN Current - 3/31/25 $5,569.90 $66,838.80 $7.41 8.00% Roof & Structure Owner Responsibility Extension 1 $6,126.89 $73,522.68 $8.16 8.80% Original Lease Term 15 Years Extension 2 $6,739.58 $80,874.96 $8.97 9.68% Rent Commencement Date 3/15/2010 Extension 3 $7,413.54 $88,962.48 $9.87 10.65% Lease Expiration Date 3/31/2025 $700 / month for parking lot maintenance Term Remaining ±7 years Increases 10% After 5 Years Options Three, 5-Year Options
5 Tenant overview
6 LITTLE ROCK, AR COMPANY TRADE NAME DOLLAR GENERAL CORPORATION (NYSE: DG)
OWNERSHIP Dollar General is the fast-growing retailer that boasts roughly PUBLIC 13,000 discount stores in over 40 US states, mostly in the South, East, the Midwest, and the Southwest. It generates about 75% of its sales from consumables (including refrigerated, shelf-stable, and perishable foods) and another 10% from seasonal items. NO. OF LOCATIONS The stores also offer household products and apparel. Pricing its items at $10 or less, Dollar General targets low-, middle-, ±13,000 and fixed-income shoppers while selling brand-name products from manufacturers such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo, and Coca-Cola. NO. OF EMPLOYEES The retailer devotes its dollars to promotional circulars, ±113,400 targeted circulars that support new stores, television and radio advertising, in-store signage, and costs associated with the sponsorship of certain auto racing activities. Because Dollar General’s customers typically live in small towns, the company WEBSITE doesn’t allocate ample amounts of money to advertising. It WWW.DOLLARGENERAL.COM has spent increasingly more on advertising in recent years, however, as the company expands its stores’ footprint.
OPERATIONS HEADQUARTERED Dollar General’s massive stores network is supported by 13 GOODLETTSVILLE, TN distribution centers that are strategically located throughout its geographic footprint. Dollar General owns several trademarks, including Dollar General, Dollar General Market, Clover Valley, DG, DG Deals, Smart & Simple, trueliving, Forever Pals, I*Magine, OT Sport, and Sweet Smiles. It also boasts a few licenses, such YEAR FOUNDED as Bobbie Brooks and Fisher Price for clothing and Rexall for 1939 health and beauty aids.
LITTLE ROCK, AR 7 the offering
Property Name Dollar General Property Name Dollar General 7501 Mabelvale Cut Off Rd 9692 FM 105 Property Address Property Address Little Rock, AR 72209 Orangefield, TX 77630 Assessor’s Parcel Number 45L-077-08-002-00 Assessor’s Parcel Number 000008-001606
Site Description Site Description Number of Stories One Number of Stories One Year Built 2009 Year Built 2010 GLA ±9,014 SF GLA ±9,014 SF Lot Size ± 1.27 Acres (55,321 SF) Lot Size ± 0.93 Acres (40,641 SF) Type of Ownership Fee Simple Type of Ownership Fee Simple Parking ± 31 Surface Spaces Parking ± 29 Surface Spaces Parking Ratio 3.44 : 1,000 SF Parking Ratio 3.22 : 1,000 SF Parking Surface Asphalt Parking Surface Asphalt
PARCEL MAP PARCEL MAP
8 Little Rock, AR
surrounding tenants 9 Orangefield, tx
10 10 AREA OVERVIEW
Little Rock, AR Little Rock, Arkansas sits on the banks of the Arkansas River in Pulaski DEMOGRAPHICS County. And with a population of nearly 200,000 people, it’s the largest POPULATION 1 Mile 3 Mile 5 Mile city in Arkansas. Little Rock is a major cultural, economic, government and transportation center within Arkansas and the South. 2023 Projection 9,763 36,276 75,856 2018 Estimate 9,576 35,942 74,411 The list of focal points around the city includes the Clinton Presidential Center & Park, neighboring world headquarters of Heifer International with Growth 2018 - 2023 1.95% 0.93% 1.94% its Heifer Village, and the Central Arkansas Nature Center. HOUSEHOLDS 1 Mile 3 Mile 5 Mile
The city includes cultural institutions such as the Arkansas Arts Center, the 2023 Projection 3,479 13,118 28,656 Arkansas Repertory Theatre, and the Arkansas Symphony Orchestra, in 2018 Estimate 3,398 12,974 28,054 addition to the hiking, boating, and other outdoor recreational opportunities. Growth 2018 - 2023 2.38% 1.11% 2.15% The Arkansas Repertory Theatre is the state’s largest nonprofit professional INCOME 1 Mile 3 Mile 5 Mile theatre company. A member of the League of Resident Theatres (LORT 2017 Est. Average D), The Rep has produced more than 300 productions, including 40 world $46,302.74 $42,837.16 $51,444.59 Household Income premieres, in its historic building located in downtown Little Rock. 11 Orangefield, tx
Orangefield, TX is part of the Beaumont-Port Arthur Metropolitan Area, about twelve miles east of Beaumont, TX. Orangefield is a farm town that has been established since before the discovery of oil. Beaumont, TX
Beaumont, TX is a city that’s economy is based around the Port of Beaumont, one of the nation’s largest ports when measured by tonnage. The Port of Beaumont, Port Arthur, and Orange make up the golden triangle in terms of being a major industrial area on the Gulf Coast. Beaumont is also one of the largest military ports in the world.
Beaumont, TX is also home to Lamar University. Various museums including The Art Museum of Southeast Texas, the Dishman Art Museum, Spindletop- Gladys City Boomtown Museum, the Edison Museum, the Fireman Museum of Texas, the McFaddin-Ward House and Beaumont Botanical Gardens bring culture to the area.
DEMOGRAPHICS
POPULATION 3 Mile 5 Mile 10 Mile 2023 Projection 8,331 32,173 66,804 2018 Estimate 7,869 30,616 64,117 Growth 2018 - 2023 5.87% 5.09% 4.19% HOUSEHOLDS 3 Mile 5 Mile 10 Mile 2023 Projection 3,181 12,788 26,006 2018 Estimate 2,984 12,091 24,860 Growth 2018 - 2023 6.60% 5.76% 4.61% INCOME 3 Mile 5 Mile 10 Mile 2017 Est. Average $78,122.18 $73,906.04 $74,388.67 Household Income 12 CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of Dollar General located at 7501 Mabelvale Cut Off Rd and 9692 FM 105 Orangefield, TX 77630 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. EXCLUSIVELY LISTED BY ™
Josh Bishop VP & Director [email protected] DIR 214.692.2289 MOB 315.730.6228 LIC # 688810 (TX)
Clay Smith Associate
LIC # 693140 (TX)
BROKER OF RECORD
Jessica Dearnley BROKER OF RECORD LIC # PB00069947 (AR)
DOLLAR GENERAL PORTOLIO 7501 MABELVALE CUT OFF RD | LITTLE ROCK, AR 9692 FM 105 | ORANGEFIELD, TX