Dollar General. Significant price change High growth suburb. in the msa of fast growing little rock low unemployment

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1 Dollar General Significant price change High growth suburb in the msa of fast growing little rock low unemployment 9005 Highway 38, Ward (Little Rock), AR For more info on this opportunity please contact: RICK SANNER (415) CA BRE# JOHN ANDREINI (415) CA BRE# BOB SANNER (415) CA BRE# CHRIS PETERS (415) CA BRE# Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.

2 NEW NNN DOLLAR GENERAL IN HIGH-GROWTH SUBURB OF LITTLE ROCK Investment Highlights The subject property is located at a hard corner, SEC of State Routes 31 and 38. Population in Ward, AR was up 72% from , and Ward has been called one of the state s fastest growing cities. It is also part of the Little Rock MSA, which grew 18.7% from , higher than the national average. Representative Photos PRICE.... $1,079,000 CAP RATE % LEASE TYPE... NNN RENTABLE SF... 9,100 SF YEAR BUILT... July, 2015 INVESTMENT GRADE CREDIT Dollar General s credit is BBB- and the company s credit rating has been raised four times since Dollar General has a better credit rating than both of its large competitors (See more information later in this offering) STRONG TENANT During fiscal 2014, Dollar General opened about 700 new stores and will open about the same in fiscal year 2015 Dollar General has more stores (12,000+) than any other dollar store in the country and is currently the largest dollar store chain In the 5+ years since going public in late 2009, the Dollar General stock price has more than tripled (from $21 to $75) LEASE HIGHLIGHTS Fifteen year NNN lease with options Parent company guaranteed (NYSE: DG) Guarantor is investment grade (see above) DOLLAR GENERAL 2 DOLLAR GENERAL 2

3 Income & Expense PRICE $1,079,000 Capitalization Rate: 6.55% Total Rentable Area (SF): 9,002 Lot Size (Acres): 1.29 Year Built: 2015 (A) STABILIZED INCOME Per Square Foot Scheduled Rent $7.85 $70,656 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $70,656 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. Buyer must verify the information and bears all risk for any inaccuracies. (A): Under construction. Rent will commence July, 2015 Representative Photo DOLLAR GENERAL 3

4 Site Plan Arkansas Highway LIGHTED PYLON SIGN 31 Arkansas Highway 31 DOLLAR GENERAL 4

5 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Yearly Rent Monthly Rent Monthly Rent/FT Yearly Rent/FT Dollar General 9,002 7/15/2015 7/14/2030 $70,656 $5,888 $7.85 $0.65 Option 1 7/15/2030 7/14/2035 $77,724 $6,477 $8.63 $0.72 Option 2 7/15/2035 7/14/2040 $85,500 $7,125 $9.50 $0.79 Option 3 7/15/2040 7/14/2045 $94,044 $7,837 $10.45 $0.87 Option 4 7/15/2045 7/14/2050 $110,712 $9,226 $12.30 $1.02 Option 5 7/15/2050 7/14/2055 $103,452 $8,621 $11.49 $0.96 Current Totals: 9,002 $70,656 $5,888 $7.85 $0.65 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. Buyer must verify the information and bears all risk for any inaccuracies. DOLLAR GENERAL 5

6 HIGH VISIBLITY The subject property is located at a hard corner, SEC of State Routes 31 and LITTLE ROCK Ward Central Elementary t ee Str Cabot Middle School North ain W Main Street 2n EM 89 N et re t ds Cabot Junior High North Cabot High School Central Elementary Westside Elementary 31 t nd S ee Str Cabot Middle School South Cabot Junior High South Southside Elementary 321 Mt. Carmel Road 31 DOLLAR GENERAL 6

7 Dollar General DOLLAR GENERAL IS THE COUNTRY S LARGEST SMALL-BOX DISCOUNT RETAILER ABOUT DOLLAR GENERAL Dollar General (NYSE: DG) is a chain of more than 12,000 discount stores in 43 states, primarily in the South, East, Midwest, and Southwest. Offering basic household items, such as cleaning supplies, health and beauty aids, apparel, and food. It targets low-, middle-, and fixed-income shoppers. Although it has the word dollar in its name, Dollar General is not solely a dollar store. Dollar General offers goods sold at set price points ranging from under a dollar to $60. Some of its higher end items include over-the-counter medicines, seasonal products, pet products, prepaid cell phones and accessories, and automotive supplies. The company has grown into the country s largest small-box discount retailer. Stores are often located in small towns off the radar of giant discounters. One of Dollar General s main advantages is that it offers prices as low or lower than Walmart but in more convenient locations. Dollar General has more stores than any other retailer and is easily the largest dollar store chain. The company ranks 164th within the Fortune 500 list. Fiscal 2014 revenues exceeded $18.9 billion with a net income of $1.07 billion, and net worth of $5.7 billion COMPANY TYPE: PUBLIC (NYSE: DG) 2014 SALES $18.9 BILLION S&P 500 CREDIT RATING BBB- (See next page) 2014 FORTUNE 500 #164 NUMBER OF STORES 12,000+ DOLLAR GENERAL 7

8 Dollar General Credit Rating THE THREE LARGEST DOLLAR STORE CHAINS, RANKED BY 2014 REVENUE, ARE: 1 2 DOLLAR GENERAL FAMILY DOLLAR ABOUT THE STRONG DOLLAR GENERAL CREDIT RATING As of June, 2015, Family Dollar formally had agreed to be acquired by Dollar Tree, thus, Family Dollar will become a wholly owned subsidiary of Dollar Tree. Dollar Tree will take on billions of dollars of debt to acquire Family Dollar, and, as they combine, that will negatively impact the credit rating of both of these companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, will no longer issue separate financial statements. The best known rating agency, Standard & Poor s, announced in late January on its website that both Family Dollar and Dollar Tree will be downgraded. 3 DOLLAR TREE After the acquisition, the combined Dollar Tree-Family Dollar entity will have approximately the same amount of revenue as Dollar General, but more debt, hence the lower credit rating. With the effective date of this acquisition (probably not later than August), both of these competitor entities will no longer be investment grade-rated. Dollar General will be the only dollar store chain with an investment grade rating. Dollar General has been credit-upgraded four times since going public in DOLLAR GENERAL 8

9 Regional Map Little Rock MSA Location DOLLAR GENERAL 32 Minutes 30 Miles ward little rock DOLLAR GENERAL 9

10 Location and Demos WARD, AR Ward is the fourth most populous city in Lonoke County and is located just 30 miles from Little Rock, the state capital and most populous city. From 2000 to 2013 the population in Ward increased 72% and is considered one of the fastest growing cities in Arkansas. The demographic make-up around the site is also generally positive. For example, the ratio of homeowners to renters in the area is higher than the national average. POPULATION 3-Mile 5-Mile 7-Mile ,666 7,608 24, ,837 8,097 26, ,046 8,686 28, HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $61,660 $58,541 $60,929 Median $50,000 $48,455 $51,169 Ward is within the Little Rock - North Little Rock - Conway Metropolitan Statistical Area, which had an estimated 2013 population of nearly 725,000 residents. Compared to the 2000 census count of 610,000, the metro area had an outstanding 13-year growth of 18.7%, well above the rational rate. DOLLAR GENERAL 10

11 About Location Little and Rock Demos LITTLE ROCK, AR In April, 2015, the unemployment rate for the Little Rock metro area was 4.8%, whereas the Arkansas rate and the national rate were, respectively, 5.7% and 5.4%. Little Rock is the capital of and the largest city in Arkansas. Known as the city where America Comes Together, it is located at the crossroad of Interstate 30 and, the most heavily traveled Interstate in the nation, Interstate 40. Little Rock has seen a steady increase in economic development activities, which is due in large part to an active private sector and the strong leadership of the Little Rock Regional Chamber of Commerce. Agriculture, aviation, and healthcare are among the top industries in Little Rock, with manufacturing and the service sector growing at a steady rate. The city is also home to the headquarters of many prominent organizations such as Dillard s Department Stores, Windstream Communications, Acxiom, and Stephens, Inc. (one of the largest financial services firms in the country). The newest tourist attraction in Little Rock is the Bill Clinton Presidential Library. TOP EMPLOYERS IN LITTLE ROCK State of Arkansas Federal Government University of Arkansas for Medical Sciences Pulaski County Public School Districts Baptist Health Little Rock also benefits from two major universities that are part of the University of Arkansas System: University of Arkansas at Little Rock and University of Arkansas for Medical Sciences. Together, the two universities enroll over 15,000 students annually and have over 10,000 employees. The Little Rock Airport (LIT) has non-stop flights to about thirteen destinations. DOLLAR GENERAL 11

12 A unique HUMAN RESULTS-DRIVEN client experience THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS [ ] RICK SANNER rsanner@capitalpacific.com (415) CA BRE# JOHN ANDREINI jandreini@capitalpacific.com (415) CA BRE# BOB SANNER bsanner@capitalpacific.com (415) CA BRE# CHRIS PETERS cpeters@capitalpacific.com (415) CA BRE# Copyright 2015 [Capital Pacific Real Estate Brokerage Company]