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(Delivery Date: Oct. 2020)
BRAND NEW CONSTRUCTION Absolute NNN Investment Opportunity
REPRESENTATIVE PHOTO
1022 HONEYCUTT ROAD
FAYETTEVILLE NORTH CAROLINA
REPRESENTATIVE PHOTO 2 NATIONAL NET LEASE GROUP
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 in Charge: Patrick Nutt, SRS Real Estate Partners – SOFLO LLC | NC Licence No. 281618
EXCLUSIVELY MARKETED BY
REPRESENTATIVE PHOTO 3 NATIONAL NET LEASE GROUP
4INVESTMENT SUMMARY
Offering Summary | Investment Highlights
7PROPERTY OVERVIEW
Aerials | Site Plan | Location Map
12AREA OVERVIEW
Demographics
14FINANCIALS
Rent Roll | Brand Profile
CONTENTS
REPRESENTATIVE PHOTO 4 NATIONAL NET LEASE GROUP
INVESTMENT SUMMARY
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, investment grade (S&P: BBB), corporate guaranteed, Dollar General investment property located in Fayetteville, North Carolina. The tenant, Dolgencorp, LLC, recently executed a brand new 15-year lease with 5 (5-year) options to extend, demonstrating their long-term 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 corporate guaranteed (S&P: BBB) and is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Dollar General is currently under construction and is estimated to open for business by Fall of 2020.
Dollar General has three stores in this submarket therefore they understand the market sales potential and strategically located this site on Honeycutt Road, a major commuter thoroughfare averaging 18,000 vehicles passing by daily and less than one mile north of Interstate 295 which averages 38,000 vehicles passing by daily. The site benefits from excellent visibility via significant street frontage and a large pylon sign, providing ease and convenience for customers. This location is approximatley 5 miles from Fort Bragg, the largest military installation in the world by population, with more than 50,000 active duty personnel. Dollar General is an American chain of variety stores that has become one of the most profitable stores in the rural United States with revenue reaching around $26 billion in 2019. The company plans to open 1,000 new stores across the U.S. in 2020, expanding its presence to 46 states throughout the country. The 5-mile trade area is supported by more than 75,000 residents and 22,000 daytime employees. Residents within 5 miles of the subject property have a $55,037 average household income.
Offering
Property Specifications
RENTABLE AREA 9,026 SF
LAND AREA 1.70 Acres
PROPERTY ADDRESS 1022 Honeycutt Road Fayetteville, NC 28311
YEAR BUILT / REMODELED 2020
PARCEL NUMBER 0521-50-7016
OWNERSHIP Fee Simple (Land & Building Ownership)
PRICING $1,860,000
NET OPERATING INCOME $106,956
CAP RATE 5.75%
GUARANTY Corporate
TENANT Dolgencorp, LLC
LEASE TYPE Absolute NNN
LANDLORD RESPONSIBILITIES None
REPRESENTATIVE PHOTO 5 NATIONAL NET LEASE GROUP
Parcel Map
OFFERING SUMMARY
REPRESENTATIVE PHOTO 6 NATIONAL NET LEASE GROUP
Brand New 15-Year Lease | Corporate Guaranteed | Investment Grade Tenant | Scheduled Rental Increases
• Corporate guaranteed by Dollar General (S&P: BBB)• Dollar General recently executed a brand new 15-year lease with 5 (5-year) option
periods to extend, demonstrating their long-term commitment to the site• The lease features 10% rental increases at the beginning of each option period,
generating NOI growth and hedging against inflation
Absolute NNN | Fee Simple Ownership | Zero Landlord Responsibilities
• Tenant pays for CAM, taxes, and insurance• No landlord responsibilities• Ideal, low-management investment for a passive investor
Close Proximity To Fort Bragg | Directly Off Interstate 295 • Located approximately 5 miles from Fort Bragg, the largest military installation in the
world by population, with more than 50,000 active duty personnel• Dollar General has three stores in this submarket therefore they understand the
market sales potential and strategically located this Honeycutt Road site• Located along Honeycutt Road (18,000 VPD), a major commuter thoroughfare serving
the immediate area and connects Fayetteville with Fort Bragg• Dollar General is less than 1 mile from the access ramp of Interstate 295 which
averages 38,000 vehicles passing by daily • The site benefits from excellent visibility via significant street frontage and a large
pylon sign
Strong Operator | 1,000 New Stores in 2020• Dollar General Stores is an American chain of variety stores that has become one of
the most profitable stores in the rural United States with revenue reaching around $26 billion in 2019
• The company plans to open 1,000 new stores across the U.S. in 2020, expanding its presence to 46 states throughout the country
Strong Demographics in 5-Mile Trade Area• Nearly 75,000 residents and 22,000 employees support the trade area• $55,037 average household income
INVESTMENT HIGHLIGHTS
Location
Parking
Access
Parcel
Traffic Counts
Year Built
Improvements
Zoning
Located inFayetteville, NC
Cumberland County
There are approximately 31 parking spaces on the
owned parcel.
The parking ratio is approximately 3.43 stalls per
1,000 SF of leasable area.
Honeycutt Road 1 Access Point
Parcel Number: 0521-50-7016
Acres: 1.70
Square Feet: 74,205 SF
Honeycutt Road 18,000 Cars Per Day
Interstate 295 38,000 Cars Per Day
2020
There will be approximately 9,026 SF of building area
Commercial
7 NATIONAL NET LEASE GROUP
PROPERTY OVERVIEW
PALM SPRING DR.
PALM SPRING DR.
MCARTHUR RD.
MCARTHUR RD.
HONEYCUTT RD.HONEYCUTT RD.
CARS PER DAY18,000
CARS PER DAY16,500
8 NATIONAL NET LEASE GROUP
HONEYCUTT RD.
HONEYCUTT RD.
SIMMONS ARMY SIMMONS ARMY AIRFIELDAIRFIELD
PINE FOREST HIGH PINE FOREST HIGH SCHOOLSCHOOL
COLLEGE LAKES COLLEGE LAKES ELEMENTARY ELEMENTARY
SCHOOL SCHOOL
FOREVER KIDS FOREVER KIDS ACADEMYACADEMY
TRINITY CHILD TRINITY CHILD CARE & CARE &
PRESCHOOLPRESCHOOL
WARRENWOOD WARRENWOOD ELEMENTARY ELEMENTARY
SCHOOLSCHOOL
METHODIST METHODIST UNIVERSITYUNIVERSITY
HOWARD HALL HOWARD HALL ELEMENTARY ELEMENTARY
SCHOOLSCHOOL HEALTH HEALTH PAVILION PAVILION NORTHNORTH
LONG HILL LONG HILL ELEMENTARY ELEMENTARY
SCHOOLSCHOOL
MCARTHUR RD.
MCARTHUR RD.
INTERSTATE 295
INTERSTATE 295
STATE HIGHWAY 210
STATE HIGHWAY 210
U.S.
HIG
HWAY
401
U.S.
HIG
HWAY
401
CARS PER DAY18,000
CARS PER DAY38,000
CARS PER DAY41,000
CARS PER DAY16,000
CARS PER DAY16,500
9 NATIONAL NET LEASE GROUP
CARS PER DAY18,000
HONEYCUTT RD.HONEYCUTT RD.
PALM SPRINGS DR.
PALM SPRINGS DR.
10 NATIONAL NET LEASE GROUP
11 NATIONAL NET LEASE GROUP
CHARLOTTE127 miles
FORT BRAGG6 miles
RALEIGH60 miles
LOCATION MAP
2019 ESTIMATED POPULATION
1 Mile 2,819
3 Mile 27,146
5 Mile 74,240
2019 AVERAGE HOUSEHOLD INCOME
1 Mile $53,638
3 Mile $62,684
5 Mile $55,037
2019 ESTIMATED TOTAL EMPLOYEES
1 Mile 1,018
3 Mile 9,355
5 Mile 21,601
FAYETTEVILLE
FORT BRAGG6 miles
12 NATIONAL NET LEASE GROUP
AREA OVERVIEW Fayetteville, North Carolina
Fayetteville is a thriving community located in the Sandhills region of southeastern North Carolina and is the seat of Cumberland County. The City is approximately 60 miles south of the State capital of Raleigh. Fayetteville is located adjacent to Interstate Highway 95, a major north-south corridor linking the City with New York to the north and Miami to the south. The City of Fayetteville is the 6th largest city in North Carolina with a population of 205,646 as of 2020.
Fayetteville has been recognized three times as an “All-America City” by the National Civic League and is known as a community of “History, Heroes and a Hometown Feeling”. The economy of Fayetteville is greatly stabilized by the presence of Fort Bragg Army Base. Approximately 55,000 uniformed soldiers and airmen are stationed at Fort Bragg, with support from an estimated 22,000 civilian employees and contractors.
In addition to Fort Bragg, substantial employment is also offered in the government sector through the public school system, community college and universities, county & city governments, and the Veterans Administration Other major employers in the area include the Cape Fear Valley Health System, manufacturers such as the Goodyear Tire & Rubber Company, which has one of the largest tire producing factories in the world, Wai-Mart through its distribution center and retail outlets, and Food Lion.
The Airborne and Special Operations Museum is a state-of-the-art educational facility whose exhibits celebrate the courage, honor, and heroism of this unparalleled sector of our armed forces. The 82nd Airborne Division War Memorial Museum houses thousands of artifacts dating back to World War I. Fayetteville’s Transportation Museum, which chronicles the story of vehicles and transportation throughout the city’s history, is located at the site of the former Cape Fear and Yadkin Valley Railroad Depot. Other points of interest in Fayetteville include the Averasboro Battlefield Museum, the Fascinate-U Children’s Museum, the Fayetteville Museum of Art, and the Museum of the Cape Fear Historical Complex. Theaters in town include the Cape Fear Regional Theatre, featuring musicals, dramas, and off-Broadwa
Cumberland County Schools’ headquarters are located in Fayetteville, and the schools serve all cities and towns of the county. CCS operates a total of 87 schools, 53 elementary schools, 16 middle schools, 15 high schools and 9 Alternative and Specialty Schools including, 1 year-round classical, 1 evening academy, 1 web academy, and 2 special schools. Cumberland County Schools is the 4th-largest school system in the state and 78th-largest in the country.
13 NATIONAL NET LEASE GROUP
AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES
2019 Estimated Population 2,819 27,146 74,240
2024 Projected Population 2,938 28,080 75,995
Projected Annual Growth 2019 to 2024 0.83% 0.68% 0.47%
2019 Estimated Households 1,123 10,732 28,394
2024 Projected Households 1,173 11,135 29,197
Projected Annual Growth 2019 to 2024 0.88% 0.74% 0.56%
2019 Estimated White 44.45% 42.69% 40.17%
2019 Estimated Black or African American 42.11% 44.25% 45.50%
2019 Estimated Asian or Pacific Islander 3.58% 3.12% 2.76%
2019 Estimated American Indian or Native Alaskan 1.24% 0.90% 0.89%
2019 Estimated Other Races 2.63% 3.23% 3.99%
2019 Estimated Hispanic 11.17% 10.59% 12.42%
2019 Estimated Average Household Income $53,638 $62,684 $55,037
2019 Estimated Median Household Income $33,516 $45,328 $39,734
2019 Estimated Per Capita Income $21,177 $25,539 $21,792
2019 Estimated Total Businesses 27 499 1,672
2019 Estimated Total Employees 1,018 9,355 21,601
REPRESENTATIVE PHOTO 14 NATIONAL NET LEASE GROUP
For financing options and loan quotes:Please contact our SRS Debt & Equity team at [email protected].
RENT ROLL
FINANCIAL INFORMATION
Price $1,860,000
Net Operating Income $106,956
Cap Rate 5.75%
Lease Type Absolute NNN
PROPERTY SPECIFICATIONS
Year Built 2020
Rentable Area 9,026 SF
Land Area 1.70 Acres
Address 1022 Honeycutt Road Fayetteville, NC 28311
Lease Term Rental Rates
TENANT NAMESQUARE
FEETLEASE START
LEASE END
BEGIN INCREASE MONTHLY ANNUALLY PSF OPTIONS
Dolgencorp, LLC 9,026 October 2020 October 2035 Current - $8,913 $106,956 $11.85 5 (5-Year)
(Corporate Gauranty) (est.) (est.)10% Increase at Beg.
of Each Option
REPRESENTATIVE PHOTO 15 NATIONAL NET LEASE GROUP
BRAND PROFILE
COMPANY TYPE 2020 EMPLOYEES 2020 REVENUE
Public (NYSE: DG) 143,000 $27.75 B
2020 NET INCOME 2020 ASSETS 2020 EQUITY CREDIT RATING
$1.71 B $22.83 B $6.70 B S&P: BBB
Dollar General
dollargeneral.com
Dollar General Corporation has been delivering value to shoppers for more than 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 16,368 stores in 45 states as of February 28, 2020. 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. Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. Dollar General Corporation was founded in 1939.
RETAIL PROFESSIONALS
275+
OFFICES
25+
LARGEST REAL ESTATE SERVICES FIRMin North America
exclusively dedicated to retail
#1
RETAIL TRANSACTIONS
in 2019 company wide
2100+
PROPERTIES SOLD
in 2019 NNLG
485
TRANSACTION VALUE in 2019 NNLG
$1.5B
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 2019
SRSRE.COM/NNLG
