Dollar General in Howe, IN
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The document presents a commercial real estate opportunity involving a Dollar General property located at 5580 North State Road 9, Howe, IN, available for purchase at $968,107 with a 7.50% cap rate. The property features a 15-year lease with 8 years remaining and three additional five-year options, with the tenant being a nationally recognized retailer with a strong financial profile. The investment is offered as an all-cash transaction with various financing options available, and interested buyers are advised to conduct their due diligence regarding the information provided.
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Dollar General in Howe, IN
- 1. PLAY VIDEO 7.50% Cap | Established & Successful Location 5580 North State Road 9, Howe, IN 46746 Subject Property
- 2. Presented ByLead Agent Kevin Boeve Senior Vice President Investments ONTARIO OFFICE Tel: (909) 456-3450 [email protected] CA License: 01247016 Kyle Blatt Associate ONTARIO OFFICE Tel: (909) 456-3475 [email protected] CA License: 02017976 Josh Caruana Broker of Record INDIANAPOLIS OFFICE Tel: (317) 218-5300 [email protected] IN License: RB14034355
- 3. Financial Overview annualized operating data Lease Year Annual Rent Monthly Rent Year 1 - 10 $72,608 $6,051 Year 11 - 15 $74,786 $6,232 Option 1: Year 16-20 $82,265 $6,855 Option 2: Year 21 - 25 $90,491 $7,541 Option 3: Year 26 - 30 $99,540 $8,295 Net Operating Income $72,608 pricing Property Name Dollar General Property Address 5580 North State Road 9 Howe, IN 46746 Price $968,107 Cap Rate 7.50% Gross Leasable Area 9,026 SF Year Built 2011 Lot Size 1.61 Acres tenant summary Tenant Trade Name Dollar General Lease Commencement 2011 Lease Expiration 2026 Original Term 15-Year Lease Option Term Three, Five-Year Options Increases 10 Percent Per Option Period Guarantee Corporate Lease Type Double-Net (NN) Lease Term Remaining 8 Years Left Parking Lot Reimbursement $300 a Month The asset will be delivered free and clear of debt and is offered as an all cash transaction. Multiple financing options are available. Contact the listing team to discuss. financing options Multiple financing options are available based on buyer requirements. Please contact listing agents to discuss options in detail. 3-Year Fixed 3.95% 5-Year Fixed 4.35% 7-Year Fixed 4.55% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 2
- 4. ·· 15-Year Lease With 8 Years Remaining | Three, Five-Year Options With 10 Percent Rent Increases ·· Tenant is Nation’s Largest Small-Box Discount Retailer With Over 13,500 Locations in 44 States ·· Standard & Poor’s Investment Grade (S&P. “BBB”) Tenant | The Only Small-Box Retailer With Investment Grade Credit ·· Dollar General Has $23.5 Billion in Sales Volume and is Ranked #128 in Fortune 500 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 3 HighlightsDemographics 3 Miles 5 Miles 10 Miles 2018 Population 3,086 9,408 40,066 2018 Households 1,005 3,298 13,632 2018 Average Household Income $48,843 $46,250 $48,766 Actual Location
- 5. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 4 Minimal Landlord Responsibilities Multiple Competitive Financing Options 79 Successful Years in Business $23.5 Billion in Annual Revenue | More Than Starbucks and Very Close to McDonald’s 28 Straight Years of Sales Growth Best in Class Industry Leader Direct Deposit Rental Payments Organized and Automated Landlord Communication WHY INVESTORS & LENDERS DOLLAR GENERAL Currently Dollar General could quite possibly be the most desired net leased investment. From 2015 to 2017, including portfolio sales, on average five newly constructed Dollar General locations were purchased by investors every week! 1#
- 6. Revenue in Billions Years in Business # of Locations S&P Rating Average Cap Rate Dollar General $23.5 78 14,383 BBB 6.75% Walmart $486 55 11,695 AA 5.00% Target $69 115 1,802 A 5.00% McDonald’s $25 77 36,900 BBB+ 4.00% Starbucks $21 46 24,464 A 5.00% Jack in the Box $1.6 66 2,200 BB- 5.50% Taco Bell $6 55 7,000 BBB 5.50% Autozone $11 38 6,000 BBB 4.00% Wells Fargo $88 165 8,700 A 4.00% Bank of America $90 112 4,600 BBB+ 4.00% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 5 Dollar General Overview Founded 1939 (78 Years Ago) Type Public Number of Locations 14,383 Headquarters Tennessee, United States Website www.dollargeneral.com Dollar General (NYSE: DG) is a chain of more than 14,380 discount stores in 44 states, primarily in the South, East, Midwest, and Southwest, offering basic household items, such as cleaning supplies, health, and beauty aids, apparel, and food. The target is low, middle, and fixed-income shoppers. The company has grown into the country’s largest small-box discount retailer. One of Dollar General’s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Rating: BBB Ranking: #128 Revenue: $23.5 Billion (2017) # of Locations: 14,383 Dollar General Competitors Tenant Overview Number of Units 10,502 11,132 11,789 12,483 13,383 14,383 2012 2013 2014 2015 2016 2017 $22 $16 $17.5 $18.9 $20.4 2012 2013 2014 2015 2016 Dollar General has more locations than Target and Walmart Combined Annual Revenue (In Billions) $23.5 2017 Dollar General Just Keeps on Growing
- 7. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 6 Distance Walmart 5 Miles Family Dollar 5 Miles Dollar Tree 5 Miles Nearest Competitors State Road 9 Howe MILITARY SCHOOL Type: Private, Boarding, JROTC Enrollment: 60 Students Faculty: 16 Staff Members
- 8. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0080326 7 Indianapolis, IN Largest City in Indiana ( Population: 855,200) 189 Miles Away Detroit, MI Largest City on the U.S.-Canada Border ( Population: 672,800) 175 Miles Away Chicago, IL 3rd Largest City in the U.S. ( Population: 2,700,000) 138 Miles Away Milwaukee, WI Largest City in Wisconsin ( Population: 2,026,200) 238 Miles Away Cleveland, OH 2nd Largest City in Ohio ( Population: 388,000) 211 Miles Away Fort Wayne, IN 2nd Largest City in Indiana ( Population: 264,500) 54 Miles Away U.S. - Canada Border
- 9. Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyor completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Net-Leased Disclaimer Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investi- gation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap ex- pressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
- 10. Presented ByLead Agent Kevin Boeve Senior Vice President Investments ONTARIO OFFICE Tel: (909) 456-3450 [email protected] CA License: 01247016 Kyle Blatt Associate ONTARIO OFFICE Tel: (909) 456-3475 [email protected] CA License: 02017976 Josh Caruana Broker of Record INDIANAPOLIS OFFICE Tel: (317) 218-5300 [email protected] IN License: RB14034355