RARE DOLLAR GENERAL | PRIME COASTAL, AFFLUENT COMMUNITYboeveinvestmentservices.com/Properties/Dollar Generals/Offering... · RARE DOLLAR GENERAL | PRIME COASTAL, AFFLUENT COMMUNITY

North Lake Park Boulevard - 15,600 Cars Per Day

Bennet Lane

Wings

Wings

Parks & Recreationand

Police Department

RARE DOLLAR GENERAL | PRIME COASTAL, AFFLUENT COMMUNITY1136 NORTH LAKE PARK BOULEVARD, CAROLINA BEACH, NC 28428

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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 conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or 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.

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 investigation 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 expressly 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 inves-tigation and/or purchase of this net leased property.

Confidentiality Agreement

Net Leased Disclaimer

Kevin BoeveSenior Vice President Investments

ONTARIO OFFICETel: (909) 456-3450

[email protected] License: 01247016

Kyle BlattAssociate



Raj RaviBroker of Record

NORTH CAROLINA OFFICETel: (704) 831-4650NC License: 281290

P R E S E N T E D BY

TA B L E O F C O N T E N T S

EXECUTIVE SUMMARYExecutive Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Tenant Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Dollar General in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

FINANCIAL OVERVIEWFinancial Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PROPERTY DESCRIPTIONParcel Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Aerial Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-11

MARKET OVERVIEWCarolina Beach, NC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

DEMOGRAPHICSSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

executive summary

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. © 2011 Marcus & Millichap ACT ID Y0080454 2

Marcus & Millichap is pleased to exclusively market for sale an upcoming Dol-lar General store located at 1136 North Lake Park Boulevard near the coast of Carolina Beach, NC.

Brand new 15-year triple net lease includes 10 percent rent increases in each of the five, five-year renewal options. The lease is guaranteed by Dollar General Corporation, which is publicly traded on the New York Stock Exchange under the ticker “DG” and has a current “BBB” credit rating by Standard & Poors.

The location benefits from having frontage along Lake Park Boulevard, or High-way 421, a major thoroughfare in North Carolina. Nearby national credit re-tailers include CVS Pharmacy, Food Lion, Walgreens, Subway, Domino’s Pizza, McDonald’s, and more.

Carolina Beach is located 15 miles south of Wilmington, NC, on the northern end of Pleasure Island. Though arguably best known for its beaches, Carolina Beach is brimming with fantastic attractions ranging from the city’s top ranking boardwalk to its remote island reserves.

overview

investment highlights · 15-Year Triple Net Investment Opportunity With Zero Landlord Responsi-

bilities | Five, Five-Year Options With 10 Percent Rent Increases · Frontage Along Lake Park Boulevard (Highway 421) | Traffic Counts of

Over 15,600 Cars Per Day | Traffic Counts Double on Weekends and Hol-idays

· Carolina Beach is Arguably a Perfect Combination l Prime Tourist Desti-nation plus Stable and Secure Upscale City Demographics l Perfect for a Trophy Real Estate Investor.

· Housing Values Have Increased 35 Percent Over Last Five Years l Carolina Beach is Quickly Becoming One of The Region’s Primary Destinations to Relocate, Own Investment Real Estate, or a Vacation Home

· Dollar General is the Nation’s Largest Small-Box Discount Retailer With Over 13,000 Locations in 40 States

· Standard & Poor’s Investment Grade (S&P. “BBB”) Tenant | The Only Small-Box Retailer With Investment Grade Credit

· Dollar General Has $17.5 Billion in Sales Volume and is Ranked #139 in Fortune 500

tenant overview

47 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. © 2011 Marcus & Millichap ACT ID Y0080454

Dollar General (NYSE: DG) is a chain of more than 13,000 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. The target is low, middle, and fixed-income shoppers.

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 other retailers and is easily the largest dollar store chain.

The company ranks 139th on the Fortune 500 list. Fiscal 2016 revenues exceed $20.3 billion with a net income of $1.17 billion, and net worth of $5.3 billion.

In July 2015, Family Dollar was acquired by Dollar Tree and ceased to be a public company.

Dollar Tree took on billions of dollars of debt to acquire Family Dollar, and that negatively impacted the credit rating of both companies. Moreover, Family Dollar, as a subsidiary of Dollar Tree, no longer issues separate financial statements.

The best-known rating agency, Standard & Poor’s, downgraded Family Dollar in July, alongside Dollar Tree having already been downgraded.

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.

Dollar General is now the only dollar store chain with an investment grade rating. Dollar General has been credit-upgraded five times since going public in 2009, most recently in October 2015. It is now “BBB.”

DOLLAR GENERAL IS THE COUNTRY’S LARGEST SMALL-BOX DISCOUNT RETAILER

Company Type:PUBLIC (NYSE: DG)

Fiscal 2015 Sales$20.4 BILLION

S&P 500 Credit Rating“BBB”

2015 Fortune 500#139

Number of Stores13,000+

The Three Largest Discount Store Chains, Ranked by 2015 Revenue Are:Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+

8This 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. © 2011 Marcus & Millichap ACT ID Y0080277

dollar general in the news

Ranking Store Chain Revenue # 0f Stores1 Dollar General $20.3 Billion 13,000+2 Family Dollar $10.5 Billion 8,000+3 Dollar Tree $8.6 Billion 13,600+

Actual Carolina Beach Oceanfront


dollar general in the newsDollar General is Starting to Look a Lot Like Wal-MartDoling Out Pay Increases to ManagersIt’s no longer enough for retailers to compete on price alone. To improve the cleanliness and availability of products in its stores, Dollar General will take a 16 cents per share hit to boost compensation for its managers and ramp up their training. In the stores where it’s already rolled out these changes, Dollar General has seen lower turnover among managers and hourly employees, CEO Todd Vasos said on the company’s earnings call. It’s also seen higher sales in those locations. This decision follows Wal-Mart’s $2.7 billion investment into better training and pay for its employees, which it has credited for higher customer service scores.

Investing in Lower PricesThere’s an all-out price war happening across retail. That includes both Dollar General and Wal-Mart. Shortly after Wal-Mart said it would move faster to lower prices, Dollar General rolled out price cuts on hundreds of items across 17 percent of its stores. “These locations have performed better than the chain average ever since,” Vasos said. While the company will continue monitoring prices, it doesn’t anticipate further price cuts at this time, the CEO said.

Bringing in Fresh ProduceDollar General’s food offering has traditionally skewed toward packaged goods. But as its customers ask for healthier options, the retailer sees more opportunity in perishable items. The company is already testing fresh produce in some of its stores, including the 41 locations it purchased from Wal-Mart last year after it shuttered the Express format. Dollar General will now expand that pilot to some of its smaller shops. Wal-Mart has made fresh produce a key piece of its turnaround plan, as it drives more frequent visits from shoppers. While Vasos acknowledged there’s stiff competition in fresh food, he said the company’s massive fleet and small shops give it a competitive advantage.

Going Smaller Dollar stores are already a fraction the size of a Wal-Mart Supercenter. But as Dollar General peppers the U.S. with new shops, it’s making those locations smaller. The company plans to open an additional 160 small shops this year. At 6,000-square feet, these locations cater to central metropolitan and rural areas. That will bring the total number of these shops to 250. Meanwhile, Dollar General is testing an even smaller 3,600-square-foot store that serves millennials living in urban areas. The expansion of these stores comes as Wal-Mart grows its Neighborhood Market footprint.

Making a Bigger Bet on DigitalDollar General lags much of the retail industry when it comes to digital commerce, but the chain is putting a bigger em-phasis on technology. Though Vasos was mum on specifics, the decision comes as more low-income consumers purchase mobile devices, the CEO said. Becoming more digitally savvy should also help Dollar General attract millennial shoppers, whom Vasos says are playing a bigger role in its sales. Wal-Mart has also been rolling out upgrades to its website and mo-bile technologies, including the ability for shoppers to pay directly from its app.

financial overview

Rendering of Actual Building

financial overview


annualized operating dataLease Years Annual Rent Monthly Rent IncreasesYears 1-15 $152,318.28 $12,693.19Years 16-20 (Option 1) $167,550.12 $13,962.51 10%Years 21-25 (Option 2) $184,305.12 $15,358.76 10%Years 26-30 (Option 3) $202,735.68 $16,894.64 10%Years 31-35 (Option 4) $223,009.2 $18,584.10 10%Years 36-40 (Option 5) $123,818 $20,442.51 10%Net Operating Income $152,318.28

offering summaryProperty Name Dollar GeneralProperty Address 1136 North Lake Park Boulevard

Carolina Beach, NC 28428Price $2,957,636Price/SF $279.92Cap Rate 5.15%Rentable Square Feet 10,566 Square FeetYear Built December 2017Lot Size 1.98 Acres

tenant overviewTenant Trade Name Dollar GeneralOwnership PublicTenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type Absolute NetRoof and Structure Tenant ResponsibleLease Term 15 YearsLease Commencement Date 11/16/2016Rent Commencement Date 1/30/2018Lease Expiration Date 11/16/2031Term Remaining on Lease 15 YearsIncreases 10% Increase For Each OptionOptions Five, Five-Year Options

vita dataNet Operating Income - Current $152,318.28Ownership Fee Simple (Land & Improvements)Proposed Financing New First Trust Deed

financing optionsMultiple financing options are available based on buyer requirements. Please contact listing agents to discuss options in detail.

3-Year Fixed 3.70%5-Year Fixed 4.0%7-Year Fixed 4.25%10-Year Fixed 4.6%

property description

parcel overview

North Lake Park Boulevard - 15,600 CPD


location1136 North Lake Park BoulevardCarolina Beach, NC 28428

siteThe subject property has frontage on North Lake Park Boulevard with traffic counts of 15,600 cars per day.

sizeThe building square footage is 10,566-square feet and the lot size is +/- 1.98 acres.

accessAccess is from North Lake Park Boulevard.

year builtThe property was built in 2017.


North Lake Park Boulevard - 15,600 C

PD

45,000 Cars Per Day During Weekends and Holidays.

North Lake Park Boulevard is the Main Thoroughfare In and Out of Carolina Beach

Rendering of Actual Building

207,424

RESIDENTS

$72,107AVG HOUSEHOLD

INCOME

demographics within a

10-mile radius:

Parks & Recreationand

Police Department

WINNER GULFSTREAM F ISHING

MICHAEL’S

Elementary School

Kupboard Grocery


Traffic Counts Frequenty Triple During Weekends & Holidays Taking Them Above 45,000 Cars Per Day

market overview

Actual Carolina Beach Oceanfront

area overview

Fayetteville, NC2 Hour Drive

Wilmington, NC25 Min Drive

Jacksonville, NC1 Hour, 30 Min Drive

Carolina Beach, NC

Carolina Beach is a town in New Hanover County, North Carolina. It is part of the Wilmington metropolitan area.

There’s a reason why the Carolina Beach area is historically known as “Pleasure Island.” A favorite destina-tion for generations of vacationers, this coastal town is more than meets the eye, thanks to the array of activities and things to do that are sure to appeal to everyone in the vacationing party.

Carolina Beach’s old-fashioned seaside fun is centered on the vintage boardwalk dotted with pizza, dough-nut, and ice cream stands. Named one of the Top 10 Boardwalks in the country by Food & Wine magazine, the Carolina Beach Boardwalk is the pinnacle of classic beachside fun and is one of the few beach board-walks in existence along the Carolina coastline. Nearby, amusements include miniature golf, batting cages, rides, and an arcade; Enjoy live music venues, tiki bars, and fresh seafood served with views of the Atlantic Ocean. You can surf or paddleboard, hike the white sand trails of Carolina Beach State Park or just take in the sea, sun, and sights.

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. © 2011 Marcus & Millichap ACT ID Y0080454

14

Distance To From Property

demographics

21

demographics

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. © 2011 Marcus & Millichap ACT ID Y0080454

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3 Miles 5 Miles 10 Miles2016 Population 45,178 83,162 207,4242021 Population 48,360 89,082 224,117

2016 Households 19,393 35,991 89,0792016 Average Household Size 2.20 2.30 2.30

2016 Daytime Population 3,744 5,676 18,129

2016 Owner Occupied Housing Units 13,227 22,283 52,3622016 Renter Occupied Housing Units 6,167 13,709 36,716

2016 Average Household Income $80,794 $75,156 $72,107

Kevin BoeveSenior Vice President Investments



Kyle BlattAssociate



Raj RaviBroker of Record

NORTH CAROLINA OFFICETel: (704) 831-4650NC License: 281290

P R E S E N T E D BY

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