Investment Opportunity - Rhetson Companiesrhetsoncompanies.com/.../2020/01/Pembroke-NC-Dollar-General-OM … · The lease is absolute NNN in nature with ZERO management responsibilities

SINGLE TENANT ABSOLUTE NNN Investment Opportunity

3151 UNION CHAPEL ROAD

PEMBROKE NORTH CAROLINAACTUAL SITE

REPRESENTATIVE PHOTO 2 NATIONAL NET LEASE GROUP

EXCLUSIVELY MARKETED BY

BRITT RAYMONDVice PresidentSRS National Net Lease Group

366 Madison Avenue, 5th FloorNew York, NY 10017D 929.229.2614 M [email protected] NY License No. 10401234463

KYLE FANTFirst Vice PresidentSRS National Net Lease Group

366 Madison Avenue, 5th FloorNew York, NY 10017D 929.229.2613 M [email protected] NY License No. 10401281546

Broker of Record: Ray Uttenhove, SRS Real Estate Partners-Southeast, LLC | NC License #267848


CONTENTS

5INVESTMENT SUMMARY

Offering Summary | Investment Highlights

8PROPERTY OVERVIEW

Aerials | Site Plan | Location Map

13AREA OVERVIEW

Demographics

15FINANCIALS

Rent Roll | Brand Profile

ACTUAL SITE 4 NATIONAL NET LEASE GROUP

PROPERTY PHOTO


INVESTMENT SUMMARY

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building ownership) in a newly constructed, corporate guaranteed, Dollar General investment property located in Pembroke, NC. The tenant, Dolgencorp, LLC, recently signed a brand new 15-year lease with 5 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is absolute NNN in nature with ZERO management responsibilities as Dollar General is responsible for ALL operating expenses, insurance, and property taxes. The lease is guaranteed by Dollar General Corp (NYSE: DG) with an investment grade credit rating of BBB from Standard & Poor’s.

The subject property is strategically positioned at the intersection of Union Chapel Rd. and State Highway 72 (7,100 combined VPD), the main thoroughfare in town. It is located near the Union Chapel Elementary School and within 3 miles of the University of North Carolina at Pembroke (7,137 students), increasing consumer draw to the immediate trade area. The site benefits from the extremely limited amount of competition, being the only major grocery/variety store within 4 miles. The subject’s surrounding area is an ideal location for the Dollar General prototype business model, featuring a relatively low population with middle-level incomes. Specifically, the 5-mile trade area is supported by 21,400 residents with a healthy average income of $51,200.


Offering

Property Specifications

PRICING $1,500,000

NET OPERATING INCOME $93,738

CAP RATE 6.25%

GUARANTY Corporate

TENANT Dolgencorp, LLC

LEASE TYPE Absolute NNN

LANDLORD RESPONSIBILITIES None

RENTABLE AREA 9,100 SF

LAND AREA 1.14 Acres

PROPERTY ADDRESS 3151 Union Chapel Road Pembroke, NC 28372

YEAR BUILT 2019

PARCEL NUMBER 40903020

OWNERSHIP Fee Simple (Land & Building)

Parcel Map

OFFERING SUMMARY


Corporate Guaranteed Lease | Options To Extend | Scheduled Rental Increases

• Dollar General corporate guaranteed lease (S&P: BBB) with 15 years in the initial lease term

• 5 (5-year) option periods to extend• 10% rental increase at the beginning of each option period, growing

NOI and hedging against inflation

Absolute NNN | Fee Simple Ownership | Zero Landlord Responsibilities

• Tenant reimburses for CAM, taxes, insurance and maintains all aspects of the premises

• No landlord responsibilities• Ideal, management-free investment for an out-of-state, passive

investor

Located along State Highway 72 | Large Pylon Sign | Limited Competition

• Dollar General is strategically positioned at the intersection of Union Chapel Rd. and State Highway 72

• Pylon sign provides excellent visibility for the site • Extremely limited amount of competition, being the only major

grocery/variety store within 4 miles

University of North Carolina at Pembroke | Local Demographics In 5-mile Trade Area

• Located near the Union Chapel Elementary School and, increasing consumer draw to the immediate trade area

• Dollar General is located within 3 miles of the University of North Carolina at Pembroke (7,137 students currently enrolled)

• Over 21,400 residents with an average household income of $51,200• Sparse population and low to middle level incomes are ideal

demographics for the Dollar General brand

INVESTMENT HIGHLIGHTS

8 NATIONAL NET LEASE GROUP

Location

Parking

Access

Parcel

Traffic Counts

Year Built

Improvements

Zoning

Located inPembroke, NC

Robeson County

There are approximately 30 parking spaces

on the owned parcel.The parking ratio is

approximately 3.30 stalls per 1,000 SF of leasable area.

State Highway 72 / Union Chapel Rd1 Access Point

Parcel Number: 40903020 Acres: 1.14

Square Feet: 49,658 SF

Union Chapel Road 4,000 Cars Per Day

State Highway 72 3,100 Cars Per Day

2019

There is approximately 9,100 SF of

existing building area

H1: Highway District

PROPERTY OVERVIEW


UNION CHAPEL RD.

UNION CHAPEL RD.

MISSION CHURCH RD.

MISSION CHURCH RD.

CHAPELWOOD CIR.

CHAPELWOOD CIR.STATE HIGHW

AY 72

STATE HIGHWAY 72

CARS PER DAY4,000

CARS PER DAY3,100

THE UNIVERSITY OF NORTH CAROLINA AT PEMBROKE (7,137 STUDENTS)

5 min 3 miles



UNION CHAPEL ROAD

UNION CHAPEL ROAD

CARS PER DAY4,000


2019 ESTIMATED POPULATION

1 Mile 1,557

3 Mile 9,143

5 Mile 21,446

2019 AVERAGE HOUSEHOLD INCOME

1 Mile $52,936

3 Mile $48,741

5 Mile $51,182

2019 ESTIMATED TOTAL EMPLOYEES

1 Mile 111

3 Mile 1,887

5 Mile 5,958

CHARLOTTE130 min 112 miles

COLUMBIA210 min 233 miles

RALEIGH110 min 106 miles

PEMBROKE

LOCATION MAP


Pembroke, North Carolina

The town of Pembroke, North Carolina established in 1895, is located in Robeson County in Southeastern North Carolina, along the Lumber River. It is approximately seven miles east of Highway 74 and Interstate 95 intersection, two hours south of Raleigh, two hours east of Charlotte and just a little over an hour from several North and South Carolina beaches. The town of Pembroke had a population of 3,318 as of July 1, 2019.

Pembroke is a growing community regarded as the social, politcal, cultural and commercial center for the Lumbee Tribe, the largest American Indian tribe east of the Mississippi River. The largest industries in Pembroke, NC are Health Care & Social Assistance, Educational Services, and Retail Trade, and the highest paying industries are Manufacturing, Transportation & Warehousing, & Utilities, and Transportation & Warehousing.

The nearest major airport is Fayetteville Regional Airport. This airport has domestic flights from Fayetteville, North Carolina and is 39 miles from the center of Pembroke, NC.

Robeson County is the largest county in the state of North Carolina by land area, having 949 sq mi in total. Robeson County was incorporated in 1787 from Bladen County and was named for Col. Thomas Robeson of the Revolutionary War.

The beautiful black water Lumber River ambles through the county and is a wonderful recreational resource for citizens. Located approximately 1.5 hours from the beaches and 3 hours from the mountains, Robeson County is situated perfectly for day trips and family excursions. I-95 runs North-South on the Eastern Seaboard, directly through County. It had population of 131,831 as of July 1, 2018.

AREA OVERVIEW


1 MILE 3 MILES 5 MILES

2019 Estimated Population 1,557 9,143 21,446

2024 Projected Population 1,576 9,207 21,585

2010 Census Population 1,460 8,738 20,508

Projected Annual Growth 2019 to 2024 0.24% 0.14% 0.13%

Historical Annual Growth 2010 to 2019 0.76% 0.55% 0.53%

2019 Estimated Households 555 3,101 7,058

2024 Projected Households 563 3,129 7,123

2010 Census Households 517 2,949 6,712

Projected Annual Growth 2019 to 2024 0.29% 0.18% 0.18%

Historical Annual Growth 2010 to 2019 0.83% 0.61% 0.60%

2019 Estimated White 5.68% 9.00% 11.15%

2019 Estimated Black or African American 6.87% 10.10% 11.08%

2019 Estimated Asian or Pacific Islander 0.64% 0.80% 0.75%

2019 Estimated American Indian or Native Alaskan 80.67% 74.68% 70.18%

2019 Estimated Other Races 3.02% 2.26% 3.13%

2019 Estimated Hispanic 4.95% 4.10% 5.46%

2019 Estimated Average Household Income $52,936 $48,741 $51,182

2019 Estimated Median Household Income $40,120 $34,682 $35,425

2019 Estimated Per Capita Income $18,744 $16,646 $16,978

2019 Estimated Total Businesses 17 187 460

2019 Estimated Total Employees 111 1,887 5,958

AREA DEMOGRAPHICS


FINANCIAL INFORMATION

Price $1,500,000

Net Operating Income $93,738

Cap Rate 6.25%

Lease Type Absolute NNN

For financing options and loan quotes:Please contact our SRS Debt & Equity team at [email protected].

PROPERTY SPECIFICATIONS

Year Built 2019

Rentable Area 9,100 SF

Land Area 1.14 Acres

Address 3151 Union Chapel Road Pembroke, NC 28372

RENT ROLL

Lease Term Rental Rates

TENANT NAMESQUARE

FEETLEASE START

LEASE END

BEGIN INCREASE MONTHLY PSF ANNUALLY PSFRECOVERY

TYPEOPTIONS

Dolgencorp, LLC 9,100 Sep 2019 Sep 2034 Current - $7,812 $0.86 $93,738 $10.30 Absolute NNN 5 (5-Year)

(Corporate Guaranty)10% Increases at Beg. of Each Opt.


BRAND PROFILE Dollar General dollargeneral.com

Dollar General Corporation has been delivering value to shoppers for 80 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 everyday low prices in convenient neighborhood locations. Dollar General operated 16,000 stores in 44 states as of September 28, 2019. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo.

COMPANY TYPE 2019 EMPLOYEES 2019 REVENUE

Public (NYSE: DG) 135,000 $25.63 B

2019 NET INCOME 2019 ASSETS 2019 EQUITY CREDIT RATING

$1.59 B $13.20 B $6.42 B S&P: BBB

RETAIL PROFESSIONALS

OFFICES LARGEST REAL ESTATE SERVICES FIRMin North America

exclusively dedicated to retail

RETAIL LISTINGSin 2018

TRANSACTION VALUEin 2018

275+ 25+ #1 1500+ $2.6B

SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made

available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not

purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified

purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*Statistics are for 2018

SRSRE.COM/NNLG

Investment Opportunity - Rhetson Companiesrhetsoncompanies.com/.../2020/01/Pembroke-NC-Dollar-General-OM … · The lease is absolute NNN in nature with ZERO management responsibilities

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