Net Lease Investment Property Ludowici GA 9.4% CAP RATE … · 2013. 1. 10. · V.P. National Net Lease Investment Group (404) 876-1640 x 122 [email protected] GA License #341202

Bull Realty, Inc. 1801 Piedmont Avenue

Atlanta, GA 30324 www.BullRealty.com GA License #H20209

Sheree Strome, CCIM V.P. National Net Lease Investment Group (404) 876-1640 x 122 [email protected] GA License #341202

Net Lease Investment Property Ludowici GA 9.4% CAP RATE $365,000

Representative Photo

Nancy Miller, CCIM, MBA V.P. National Net Lease Investment Group (404) 876-1640 x 118 [email protected] GA License #126108

mailto:[email protected]�


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205 Cypress Street Ludowici, GA 31316

Sheree Strome, CCIM National Net Lease Investment Group (404) 876-1640 x 122 [email protected]

Nancy Miller, CCIM, MBA National Net Lease Investment Group (404) 876-1640 x 118 [email protected]

Disclaimer

The Confidential Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Confidential Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently all documents.

This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a rec-ommendation, endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any pur-chaser reviewing this Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obligations therein have been satisfied or waived.

This Confidential Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this Confi-dential Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Confidential Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth above apply to this Confidential Memorandum in its entirety and all documents, disks and other information provided in connection therewith.



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Table of Contents

Disclaimer 2

Table of Contents 3

Executive Summary 4

Investment Overview 5

Street View 6

Aerial & Survey 7

Aerial of Ludowici 8

Location Information 9

Demographics 10

About the Tenant 11

Broker Profiles 12

Confidentiality Agreement 13



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Executive Summary

Highlights

Priced at $365,000 9.4% cap rate $34,200 NOI Lease term extended

through Dec 2015 Large parcel for po-

tential expansion or redevelopment.

Bull Realty is pleased to offer FOR SALE this established and successful single tenant, NN lease Dollar General offering in Ludowici, GA. Located in Long County, in the southeastern portion of Georgia, the property yields current annual net operating income of $34,200 at a 9.4% cap rate. The extended lease term runs through December 2015 with one additional 5 year renewal at a +12% increase in rents. Built in 1996, the subject property is a +/- 7,500 sq ft, single tenant building, situated on a large +/-1.34 acre site adjoining an IGA grocery store, located near a busy crossroads. There is little grocery or retail store competition in the area, making this an outstanding location for continued retail demand. The advantage of this large lot is that it enables expansion or a possible future redevelopment of a new store to the east of the Dollar General. Within a 5-mile radius, the population is 4,797 and has an average household income of $45,597. Ludowici is approximately 22 miles west of I-95 and 50 miles southwest of Savannah. It is the county seat of Long County and part of the Hinesville-Fort Stewart MSA. Fort Stewart, part of the Army’s 3rd Infantry Division is 15 miles north along with Hunter Army Airfield. Together they cover roughly 280,000 acres in Long, Liberty, Tattnall, Evans and Bryan counties.

Dollar General is the largest “small box” discount retailer in the US. The company, headquartered in Goodlettsville, TN, (Nashville) was established in 1939. In April of 2012, Standard & Poor’s upgraded the company’s rating from BB+ to BBB-, reflecting their sustained success and performance with over 10,300 stores in 40 states. Dollar General continues to also expand its’ Market Store and Plus store concepts in core secondary and tertiary markets. Dollar General has opened 479 new stores to date in 2012 and is planning on opening 635 stores in 2013.

Offered at $365,000.00



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Financial Overview

Property Information Subject Property: Single Tenant Property Address: 205 Cypress Street Ludowici, GA 31316 Long County

Price: $365,000.00 Rentable Square Feet: +/- 7,500 sq ft Price per Square Foot: $48.67 Projected NOI: $34,200 Cap Rate: 9.4% Base Rent: $4.56/sq ft Year Built: 1996 Lot Size: +/- 1.34 acres Type of Ownership: Fee Simple

Lease Summary Tenant Trade Name: Dollar General Tenant: Dolgencorp, Inc. Lease Guaranty: Dolgencorp, Inc. Lease Type: Double Net Lease

Lease Commencement: July 1, 1996 Term Expiration: December 31, 2015 (extended in LMA#2)

Renewal Options: 1—five year Rent Increases: 12.3% at renewal Percentage Rent: No Rent & CAM Schedule:

Annual Annual CAM Term Dates Rent (paid monthly) Extended Term 1/1/10—12/31/15 $34,200 $1,875 Option 1 1/1/16—12/31/20 $38,400 $2,063

Expenses:

Tenant Responsibilities: Utilities, repairs under $1,500, per occurrence, parking lot maintenance fee (see CAM above), reimbursement of real estate tax & insur-ance.

Landlord Responsibilities: Roof, structure, major repairs $1,500 and over per oc-currence, parking lot maintenance with CAM reimbursements towards this as shown above..



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Street View

Source: Google Maps



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Aerial and Survey

Church

Source: Bing Maps

Area suitable for future develop-

ment



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Aerial of Ludowici

Long County

Board of Education

Lincoln Park

To I-95

Courthouse

To Fort Stewart



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Location Information

50 miles to Savannah

15 miles to Fort Stewart

22 miles to I-75

Where is Ludowici?

112 miles to Jacksonville



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Demographics

2012 Demographics (STDB) 1 mile Population 1,901

Households 685

Average Household Income $42,245

Median Age 31.7

3 mile Population 3,607

Households 1,192


Median Age 31.5

5 mile Population 4,797

Households 1,607


Median Age 31.0

Family Dollar locations

Dollar General locations

Dollar Tree locations

Fred’s Store locations

Dollar General & Family Dollar—10 Miles NE in Hines-

ville

Dollar Tree & Family Dollar—11 Miles SE in Jesup



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Tenant Description

Dollar General Historical Growth Chart (DG) 2012 YTD

Source: www.schwab.com

Dollar General is the largest “small box” discount retailer in the US. Now headquartered in Goodlettsville, TN, the company was established in Scottsville, KY in 1939. Today, with 10,371 stores in 40 states, Dollar General, whose store format is generally in suburban markets, is expanding into more densely populated areas and often “re-using” vacant retail locations. Dollar General had opened 479 stores in 2012 as of mid December and is planning on opening 635 new stores in 2013.

Their strategy is to deliver a wide variety of brand name retail and consumer products at value. Dollar General’s mission is for convenience, quality brands and low prices!

The company launched a successful IPO in 2009 (Symbol "DG"). For the third quarter of 2012, DG reported a 10.3% increase in sales from $3.60 billion a year ago to $3.96 billion for 3Q 2012 and profits increased 21.6% to $208 million.

In April of 2012, Dollar General’s S & P rating was upgraded from “BB+” to “BBB-” . According to Standard & Poor’s credit analysis, Ana Lai, “The ratings on Dollar General reflect our expectation that the company’s value-focused merchandising strategy and continued store expansion will sustain the positive operating momentum and contribute to further improvement in credit measures.”



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Nancy Miller joined Atlanta based Bull Realty in 2001. Nancy has held a Georgia real estate sales license for over 25 years and is licensed in several Southeastern states. She brings experience from both sides of the table as a real estate investor and broker. Nancy personally owns several investment properties, including a net leased Dollar General. Since joining Bull Realty, Nancy has brokered well over one hundred million dollars in investment sales and leasing transactions.

Nancy‘s personalized approach includes indentifying client goals, priorities and timeframes. She will develop a game plan designed to exceed expectations which translates into adding value and maximizing returns.

Sheree Strome has been in the commercial real estate business for more than twenty-five years from the financing side of the business. She has underwritten more than five hundred million dollars of commercial properties establishing strong relationships with lenders, brokers and principals throughout the Southeast. Obtaining the best financing and dealing with existing financing issues has proven to be a major benefit for her clients in this cycle.

Sheree utilizes her relationships and extensive knowledge of financing to help clients with existing financing issues and help structure the best possible transaction to maximize investment goals.

Broker Profile

National Net Lease Team The National Net Lease Team works with developers, buyers and sellers throughout the US. They are an excellent resource for current market trends, cap rates, lender resources, and off as well as on-market net lease opportunities. They are both active members of ICSC and are CCIM’s. They are supported by a full time licensed assistant, Holly Hollinger, and an outstanding marketing and research team.

About Bull Realty Bull Realty is a commercial real estate brokerage firm headquartered in Atlanta, Georgia. The firm is best known for their successful national marketing platform to ensure that available properties are marketed aggressively to the buyer and broker community. They also feature:

• Broker specialization by commercial property type • REO and troubled asset marketing for over 74 lenders, nationwide • Google consistently chooses BullRealty.com as the number one website for the most often used search phrase used by people looking for

commercial real estate in Georgia, “Commercial Real Estate Georgia”. • Comprehensive marketing services which include video, social media and radio for appropriate properties. • Founder, Michael Bull hosts a national weekly Commercial Real Estate Show, talk radio show about commercial real estate which airs on radio

stations and on-line at www.CREshow.com.



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Confidentiality Agreement

This Confidentiality Agreement (“Agreement”) is made and agreed to for the bene-fit of the undersigned party (“Prospect”), the owner of the subject property (the “Seller”) and undersigned agent Bull Realty Incorporated (“Broker”).

Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable considera-tion, the Prospect hereby agrees to the following:

I. Confidential Information: Prospect will receive confidential information regarding property referred to as Dol-lar General, 205 Cypress St, Ludowici, GA. Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that dis-cussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status thereof. The term “person” used in this agreement shall be interpreted broadly and shall include, without limitation, any corporation, company, partnership or individual other than parties to which Broker approves in writing. Prospect agrees to not contact the Seller, the management, the tenants, the lender, the vendors, the insurers, the employees or the customers of any business at the site.

II. Acting as a Principal: Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding this contemplated transaction. Prospect acknowledges and agrees that Bull Realty, Inc., will act in an agency capacity on behalf of the Seller, and will be used as the sole broker or agent in connection with the purchase of the property. Bull Realty, Inc. will be paid a commission by the Seller. Prospect agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bank-ruptcy court, or in any other manner acquire an investment in or control of the prop-erty, unless Bull Realty, Inc. is included as the selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, eq-uity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agree-ment.

III. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of Georgia.

Accepted and agreed to this _______ day of ___________________, 201____

Prospect Signature ___________________________________________________________________ Printed Name _______________________________________________________________ Title _________________________________________________________________________ Company Name ____________________________________________________________ Address _____________________________________________________________________ ____________________________________________________________________ Email _______________________________________________________________________ Phone ______________________________________________________________________ Fax _________________________________________________________________________

You may return the executed agreement by fax (404.876.7073) or email. Bull Realty, Inc. ,

1801 Piedmont Ave. Atlanta, GA 30324

(GA License #H-20209)



Net Lease Investment Property Ludowici GA 9.4% CAP RATE … · 2013. 1. 10. · V.P. National Net Lease Investment Group (404) 876-1640 x 122 [email protected] GA License #341202

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