DOLLAR GENERAL HOLTVILLE (IMPERIAL VALLEY), CALIFORNIA OFFERING MEMORANDUM REPRESENTATIVE PHOTO EXCLUSIVELY OFFERED BY: ANDREW BOGARDUS CHRISTOPHER SHELDON +1 415 677 0421 +1 415 677 0441 [email protected] [email protected] NET LEASE GROUP CA LIC #00913825 CA LIC #01806345 REPRESENTATIVE PHOTO Investment Offering & Highlights The Offering Demographics • Recently completed, an approximate 7,500 square foot single-story 2019 Summary 1 mile 5 miles 10 miles retail building leased to Dollar General for 15 years Population 5,577 8,193 28,019 • Price: $2,586,000 – 5.75% Cap Rate Households 1,737 2,545 7,883 Lease / Tenant Families 1,362 2,025 6,550 Average Household Size 3.20 3.21 3.53 • Build to suit construction for Dollar General Owner Occupied Housing Units 963 1,487 4,776 • Recently opened with a new 15 year triple net lease Renter Occupied Housing Units 774 1,058 3,107 • Three five-year options with 10% rental increases at the start of each Median Age 34.8 34.8 32.0 option Median Household Income $51,452 $55,535 $50,689 • Dollar General is an investment grade tenant with an S&P rating of Average Household Income $62,556 $72,567 $67,374 “BBB” Projected 2024 Summary • Dollar General has over 16,000 stores nationwide Population 5,609 8,282 29,087 Households 1,746 2,571 8,176 Real Estate/Area Strengths Families 1,368 2,044 6,795 • Tenants in the area include AutoZone, 7-Eleven, Family Dollar & Average Household Size 3.21 3.21 3.54 NAPA Auto Parts Owner Occupied Housing Units 974 1,517 5,050 • Located on the main east-west arterial through Holtville Renter Occupied Housing Units 772 1,054 3,126 • Average household income of $72,567 and a population of 8,193 with Median Age 36.9 36.5 33.4 5 miles Median Household Income $55,547 $61,036 $57,456 • Holtville is approx. 100 miles east of the San Diego International Average Household Income $71,057 $83,547 $79,361 Airport and just north of the border to Mexico and the Baja capital of Mexicali DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 2 Investment Overview Location Annual Rent 402 W 5th Street, Holtville (Imperial Valley), CA 92250 Lease Years Annual Rent Return 1-15 $148,704 5.75% Lot Size 16-20 (Option 1) $163,574 6.33% Approximately 0.96 acres – 42,000± sq. ft. 21-25 (Option 2) $179,932 6.98% 26-30 (Option 3) $197,925 7.79% Improvements Recently completed an approximate 7,500 square foot single story Dollar General retail building with 32 on-site parking spaces. Price: $2,586,000 – 5.75% Cap Rate Construction consists of concrete block in front with prefab steel on the sides and back. Lease Leased to Dolgen California, LLC, with a guaranty by Dollar General for 15 years from October 2020 to October 2035 with an annual rent of $148,704. The lease is triple net, with the tenant responsible for taxes, insurance, common area maintenance including roof, structure and parking lot. There are three five-year options to extend the lease with 10% increases at the start of each option. DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 3 Header FIFTH STREET STOP PALM AVENUE PALM APPROX 7,500 SQ FT. STOP DELIVERY RAMP DOWN OLIVE STREET PAD DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 4 Dollar General DOLLAR GENERAL (NYSE: DG) is an American chain of variety stores To strengthen its position for the long term, Dollar General is making headquartered in Goodlettsville, Tennessee. As of September 2020, significant investments, primarily in compensation and training for store Dollar General operates over 16,000 stores in the United States offering managers given the critical role this position plays in their customer products that are frequently used and replenished, such as food, snacks, experience, as well as strategic initiatives. health and beauty aids, cleaning supplies, clothing for the family, housewares and seasonal items at low everyday prices in convenient Fortune 500 recognized Dollar General in 1999 and in 2018 reached on neighborhood locations. In addition to high quality private brands, Dollar their list. Dollar General has grown to become one of the most profitable General sells products from America’s most-trusted manufacturers stores in the rural United States with revenue reaching $23.47 billion in such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, 2018. The company reported for the six months ending July 31, 2020 Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills and PepsiCo. total revenues of $17.1B and net income of $1.43B and a stockholders equity of $7.35 billion. Dollar General has more stores than any other retailer and is easily the largest dollar store chain. Founded in 1939, the company first went Company Type: Public (NYSE: DG) public under the Dollar General name in 1968 and grew to more than S&P Rating: BBB 6,000 stores with $6 billion in sales by the early 2000’s. Locations: 16,000 Website: https://www.dollargeneral.com/ 5 / CUSHMAN & WAKEFIELD REPRESENTATIVE PHOTO NE Header HOLTVILLE HOLTVILLE CITY LIBRARY HOLTVILLE CITY HALL HOLTVILLE HIGH SCHOOL FIFTH ST PALM AVE OLIVE AVE DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 6 Local Map Header Kamm Rd Site Location The approximate 7,500 sq. ft. Dollar General retail building is situated on the corner of W 5th Street & Palm Avenue (6,200 VPD). The propertySlayton Rd is located just 2.5 miles north of interstate 8, E Thiesen Rd the major east-west interstate in Southern California connecting San Diego to the major Arizona cities. National tenants located UV115 E Underwood Rd in the immediateE 10th St area include AutoZone, 7-Eleven, Family Dollar and NAPA Auto Parts. E Alamo Rd W 9th St E 9th St E Alamo Rd Holt Ave Holt W 8th St MapleAve CedarAve WalnutAve PineAve Bridenstine Rd OliveAve FernAve OrangeAve Towland Rd ChestnutAve PalmAve Melon Rd E 7th St HOLTVILLE W 6th St E 6th St Zenos Rd E 5th St UV115 CedarAve E 4th St Holton Rd UV115 E Bailey Rd De Paoli Rd Bonds Corner Rd Mets Rd Mets Orchard Rd Orchard Hoyt Rd Haven Rd N DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 7 Apple Valley Victorville Hesperia Header ¦¨§15 Twentynine Rancho Palms Highland Cucamonga Fontana El Monte Ontario Colton San Bernardino West 10 Pomona Rialto ¦¨§ Redlands Covina RIVERSIDE Yucaipa Norwalk Beaumont Fullerton Corona Moreno Valley 215 Palm Springs ¦¨§5 ANAHEIM ¦¨§ Cathedral Fountain SANTA ANA Perris Hemet City Valley San Jacinto Garden Grove Rancho Indio Santa Lake Elsinore Costa Mesa Irvine Palm Desert La Quinta Margarita ¦¨§10 Huntington Lake Forest Beach Coachella Mission Viejo Aliso Viejo Laguna Niguel Murrieta Temecula San Clemente ¦¨§15 Salton ¦¨§5 Sea Vista Oceanside Carlsbad Escondido San Marcos Encinitas HOLTVILLE Poway Santee ¦¨§805 N ¦¨§8 El Centro ¦¨§15 El Cajon La Mesa 8 Yuma ¦¨§ Calexico SAN DIEGO La Presa National City Chula Vista Tecate MEXICALI 8 / DOLLAR GENERAL, HOLTVILLE, CA ¦¨§5 TIJUANA Holtville, California Holtville is a city in Imperial County, California and is located 10.5 miles offers great outdoor recreation. Golfing, water sports, hunting, fishing and east of El Centro and 50 miles west of Yuma, AZ. The city is located in hiking are all available in the immediate area, and the beautiful beaches the large trade area of Holtville/Calexico/Mexicali inhabited by 1.8 million of San Diego and Baja California are easily accessible for day trips or residents. The city’s strategic location is seen by many as a primary link fun-filled vacations. Just across the border, Mexicali (the capital of Baja between the interior of Mexico and the major markets along the west Mexico) is a cultural and entertainment center offering ample opportunity coast of the U.S. and Canada. A delightful blend of American and Mexican for fine dining, theatre, music and more. The City of Holtville’s future cultures, Holtville’s small-town lifestyle, combined with its convenient holds economic growth unparalleled in Imperial Valley history. Holtville’s proximity to the metropolitan areas of Mexicali, Yuma and San Diego, key proximity, combined with its economic availability, have positioned make it a great place to live. Holtville’s climate is sunny year-round and the city to take advantage of all future prosperity. 9 / CUSHMAN & WAKEFIELD DOLLAR GENERAL, HOLTVILLE, CALIFORNIA / 9 Imperial Valley, California The Imperial Valley lies in California’s Imperial County. It is located displays of the Blue Angels to the Tomato Festival. From the North to in southeastern Southern California and is the site of an urban area the South, Imperial Valley offers visitors and residents a taste of many largely centered around the city of El Centro. The Valley is bordered cultures such as those from Mexico with all its sights, sounds and tastes by the Colorado River to the east and, in part, the Salton Sea to the waiting to be savored. Mexico can easily be accessed by vehicle or by west. Farther west lies the San Diego and Imperial County border. To walking due to the Valley’s proximity to the border. Major population the north is the Inland Empire’s Coachella Valley, which together form centers are Brawley, Calexico and El Centro which is the county seat. the Salton Trough, or the Cahuilla Basin, also the county line of Imperial Imperial Valley is one of the fastest growing counties in the State of and Riverside counties, and to the south the international boundary with California, offering many business opportunities along with many trade California and Baja California. The Imperial Valley is rich in natural beauty, possibilities. Being the ninth largest California County, encompassing local history, and culture.