NNN Dollar General — TAMPA TENANT IS NOW INVESTMENT GRADE HIGH DENSITY, HIGH TRAFFIC, and HIGH INCOME
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The file photo above shows a building with 70’ width. Actual width is 130’, almost double! NNN Dollar General — TAMPA TENANT IS NOW INVESTMENT GRADE HIGH DENSITY, HIGH TRAFFIC, AND HIGH INCOME Absolutely Superior Real Estate ONE OF THE WORLD’S MOST SUCCESSFUL RETAILERS — Sales and Profits are Increasing Strongly. Record Earnings Just Announced — Credit Rating Increased Four Times in Recent Years Price: $1,748,000 — 7.10% Cap Rate New 15-Year NNN Lease — Soon to Open For more information, please contact: In Association with: Robert C. Sanner Rick Sanner Baron Realty, Inc. Partner/Broker Vice President Florida Licensee 415-677-0439 415-677-0429 LIC #BK3157275 [email protected] [email protected] LIC #00869657 LIC #01792433 Cassidy Turley Northern California www.ctbtnnn.com The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. Dollar General Tampa, Florida LOCATION 6508 S Dale Mabry Highway, Tampa, Florida. At the southeast corner of Interbay Boulevard and S Dale Mabry Highway, near the northern entrance to MacDill AFB. LOT SIZE Approximately 1.08 acres – 47,045+/– square feet. IMPROVEMENTS To be completed late July 2012, a 9,100+/– square foot DOLLAR GENERAL retail store. See “About the Improvements.” The building footprint is notable because it has a full 130 feet of building width on S Dale Mabry Highway, one of Tampa’s major commercial thoroughfares. LEASE Leased to a wholly-owned subsidiary of, and guaranteed by, DOLLAR GENERAL CORPORATION for 15 years from August 2012 until August 2027 at the annual rent of $124,092. The lease is absolute net with the tenant responsible for all taxes, insurance and general maintenance including roof, structure and parking lot. The tenant has three 5-year options to renew with 10% rental increases each option period. See “New Lease Form.” ANNUAL INCOME YEARS ANNUAL RENT 1-15 $124,092 Option 1 $136,501 Option 2 $150,152 Option 3 $165,167 PRICE $1,748,000 — 7.10% Cap Rate PRICE PER SQUARE FOOT $192 RENT PER SQUARE FOOT $13.64 net per year — $1.14 net per month The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0612:08:R-1 Dollar General Tampa, Florida NEW LEASE FORM This is the new Dollar General lease form. By comparison, here is the lease on another Dollar General property elsewhere. SUBJECT “OTHER PROPERTY” Location Tampa, FL —————— Metro Area? Yes No Lease Term 15 years 10 years NNN? Yes No Roof; structure; exterior of the property except plate glass. Landlord None of this is reimbursed. None Responsibility Landlord handles parking lot and landscape maintenance but is reimbursed. ABOUT THE This is a “metal building,” typical for this tenant. HOWEVER, all the entire front of the IMPROVEMENTS building, 130 lineal feet, is finished in stucco or concrete block, so it does not appear from the street to be metal construction. A typical Dollar General has 70’ width and 130’ depth. The subject has 130’ width and 70’ depth. Thus it has more frontage and visibility on the main street, Dale Mabry Highway. The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0612:08:R-1 Dollar General Tampa, Florida ABOUT THE TENANT DOLLAR GENERAL CORPORATION (NYSE: “DG”) has been in business since (QUANTITATIVE 1939. Headquartered in a suburb of Nashville, the company is a national discount INFORMATION) variety chain operating 10,052 stores in 40 states as of May 4, 2012. Formerly privately held, the chain went public in November 2009. Dollar General is ranked #188 among the 2011 Fortune 500 companies. Dollar General is rated “BBB–” by Standard & Poor’s. When it went public in late 2009, it was upgraded by S&P to “BB–.” It was upgraded for the second time in eight months, in June 2010, to “BB.” Thirteen months later, in July 2011, Dollar General was upgraded yet again, to “BB+.” Then, in April, 2012, it was upgraded to BBB–, which is an investment grade rating. DG HAS MORE STORES THAN ANY OTHER RETAILER IN AMERICA. For the quarter ended May 4, 2012, Dollar General reported sales of $3.901 billion and net income of $213.415 million. It was a record quarter: sales were up 13%, same store sales were up 6.7%, net income was up 36%!! These percentages compare this quarter to the same quarter last year. For the fiscal year ended February 3, 2012, Dollar General reported annual revenues of nearly $14.81 billion with net income of $766.7 million. For that fiscal year, compared to the previous fiscal year, DG reported the following % increases: Total Sales 13.6% Same -Store Sales 6.00% Net Income 22.1% Net Worth 15.1% In January 2012, DG announced it would add 625 new stores in 2012, with 6,000 new employees. Including 2012, the company will have created more than 21,000 jobs since 2009. In addition to the 625 new stores, the company plans in 2012 to remodel or relocate 550 stores and open an additional distribution center. The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0612:08:R-1 Dollar General Tampa, Florida ABOUT THE TENANT The following is paraphrased from a recent company press release: (GENERAL BACKGROUND) Dollar General Corporation has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers “Save time. Save money. Every day!®” by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at low everyday prices in convenient neighborhood locations...In addition to high-quality private brands, Dollar General sells products from America’s most- trusted manufacturers such as Proctor & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola. Learn more about Dollar General at www.dollargeneral.com DOLLAR STORES The four largest “dollar store” chains, by market cap and annual sales are: BEATING UP ON WAL-MART APPROXIMATE ANNUAL SALES MARKET CAP * Dollar General (tenant) — “DG” $16.03 Billion $14.81 Billion Dollar Tree — “DLTR” $11.74 Billion $ 6.63 Billion Family Dollar — “FDO” $ 7.82 Billion $ 8.5 Billion * As of late May, 2012 From a recent internet article: “{The dollar stores} have been revamping up service efforts and offerings {such as } Kraft brands. “[An advantage of dollar stores compared to Wal-Mart]...is location and operating cost. While Wal-Mart is mostly suburban and rural based, {dollar stores] can be tucked into strip malls with low rent and overhead, {while Wal- Mart} requires giants swaths of land.” “The Dollar General CEO said, ‘Our difference is our low price in a convenient location.’” The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0612:08:R-1 Dollar General Tampa, Florida DOLLAR STORES From a page one article in the NY Times, September 22, 2010, entitled “In Hard BEATING UP ON WAL-MART Times, $1 Items Lure Shoppers, and Retailers Scramble”: (CONTINUED) “Dollar stores have best been able to capitalize on the downmarket trend because of the strategies they embraced during the recession, when the stores kept things cheap and expanded their merchandise...shoppers often could not afford regular-size detergent [so] the [dollar] stores worked with manufacturers to create smaller packages which cost less...[a certain Dollar General shopper said the reason she goes to dollar stores instead of Wal-Mart is] ‘you don’t have the big crowds and it is cheap’...same store sales at the dollar stores have increased 10 straight quarters and declined at Wal-Mart five straight quarters...dollar stores have switched out merchandise like trinkets for necessities like food and detergent because consumers have really curtailed discretionary spending out of necessity.” According to an item in the Wall Street Journal, December 5, 2011, “Dollar stores have been doing well in part because they are winning market share from Wal-Mart Stores, as lower-income shoppers switch to smaller, more frequent shopping trips from bigger, more time-consuming ones. This trend is likely to continue given that wage and employment gains remain generally subpar. So budget pressures [of families] are likely to persist. And bargain-hunting clearly gives dollar stores the edge. Recent surveys...show prices at Dollar General run 9% to 10% below Wal-Mart’s, on average.” The Wall Street Journal had a very recent article on this same topic. This article, from June 4, 2012, is part of this offering package. SITE INFORMATION The subject property is located on a signalized corner with access from both South Dale Mabry Highway and Interbay Boulevard. It is just north of the main entrance to MacDill Air Force Base, across from a busy McDonald' s and Circle K. Traffic counts on Dale Mabry are 34,000 AADT* (Annual Average Daily Traffic). S Dale Mabry is two lanes each way, with an additional left turn lane at the intersection. Interbay Boulevard is one lane each way, with an additional left turn lane at the intersection. * Source of traffic information is Florida Department of Transportation (2010) The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.