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D O L L A R G E N E R A L225 E Lee Hwy, New Market , VA 22844
O F F E R I N G M E M O R A N D U M
Ac tua l P r op e r t y
81
6,258+ VPD6,258+ VPD
N CO
NGRE
SS S
TREE
T
N CO
NGRE
SS S
TREE
T
PACK’S FROZEN PACK’S FROZEN CUSTARDCUSTARD
AMERICAN AMERICAN LEGION LEGION
POST 166POST 166
NEW MARKET NEW MARKET AREA LIBRARYAREA LIBRARY
tm
LEE HIGHWAYLEE HIGHWAY
THE ITALIAN JOBTHE ITALIAN JOB
BURGER KING
MCDONALD’S
VENTURA GROCERYVENTURA GROCERY
NEW MARKET GROCERYNEW MARKET GROCERY
Kathy’s Home Cooking CafeKathy’s Home Cooking Cafe
N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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, PCB's or asbestos, the compliance with 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 Marketing Brochure 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ACTIVITY ID: ZAB0940029
A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y . P L E A S E C O N S U L T Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .
N ET- L E ASE D DI S C L A I M E R
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 investigation and/or purchase of this net leased property.
OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
Base Rent $91,875*
Square Feet 9,026 SF**
Lot Size 0.56 Acres**
Ownership Fee Simple
Year Built 2010
Total Price CAPRATE$1,225,000 7.50%
DO L L A R G EN E R A L
O F F E R I N G S U M M A R Y
225 E Lee Hwy, New Market , VA 22844
* Base Rent is calculated by the 3% rent increase to occur 11/1/2020. If close of escrow occurs prior to 11/1/2020, the Seller will credit Buyer the rent difference at closing.
**Building and lot size information per RealQuest. Buyer will need to verify the accuracy of this during the due diligence period.
F I N A N C I A L A N A L Y S I S 4
L E A S E S U M M A R Y
R E N T I N C R E A S E S
Lease Type Absolute NNN
Roof & Structure Tenant Responsible
Tenant Dollar GeneralGuarantor Dolgencorp, LLCLease Term 15 yearsLease Commencement Date October 27, 2010Lease Expiration Date October 31, 2025Term Remaining 5.5 yearsIncreases 10% in Options*Options Four, 5-year
Current - 10/31/2020 $89,19911/1/2020 - 10/31/2025 $91,87511/1/2025 - 10/31/2030 (Option 1) $101,063
11/1/2030 - 10/31/2050 (Option 2) $110,95311/1/2035 - 10/31/2040 (Option 3) $122,28611/1/2040 - 10/31/2045 (Option 4) $133,150Base Rent ($10.17/SF) $91,875NET OPERATING INCOME 7.50% | $91,875TOTAL RETURN $91,875
*Base Rent is calculated by the 3% rent increase to occur 11/1/2020. If close of escrow occurs prior to 11/1/2020, the Seller will credit Buyer the rent difference at closing.
F I N A N C I A L A N A L Y S I S 5
TENANT OVERVIEW // D OLLAR GENERAL
Dollar General Corporation has been delivering value to shoppers for over 75 years. Dollar General helps shoppers Save time. Save mon-ey. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, clothing for the family, housewares and seasonal items at low everyday prices in convenient neighborhood locations. Dollar General operated 14,609 stores in 44 states as of March 2, 2018. In addition to high quality private brands, Dollar General sells products from America’s most-trusted brands such as Procter & Gamble, Kimberly-Clark, Unilever, Kellogg’s, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.
Dollar General’s (DG) business strategy revolves around driving profitable top line growth while enhancing its low-cost op-erator position and capturing new growth opportunities. The company attempts to drive profitable top line growth through strategies like improving the in-stock position of its stores and continuously offering products at competitive prices.
14,000+ LOCATIONS
MORE THAN
129,000EMPLOYEES
$23.47Billion
SALES VOLUME
BBBSTANDARD & POOR’S
CREDIT RATING
STOCK SYMBOL
NASDAQ:DG
HEADQUARTERED IN
Goodlettsville,TN
FOUNDED IN
1955
P R O P E R T Y D E S C R I P T I O N 6
I N V E S T M E N T H I G H L I G H T S
P R O P E R T Y H I G H L I G H T S
► Absolute NNN Lease – Zero Landlord Responsibilities
► Credit-Rated Corporate Guarantor (NYSE: DG) BBB Rating by S&P
► 5.5 Years Remaining on lease
► Rare 3% rent increase in primary term (November 2020)
► Four, 5-year options with 10% increases at each option period
► Excellent visibility from Lee Hwy
► Nearest Dollar General 9 miles away
► Nearby national tenants include: McDonald’s, Quality Inn, Burger King, Dunkin Donuts,
SunTrust Bank & Days Inn
► Less than a mile from Interstate 81 – Longest highway in Virginia
► 2010 Build-To-Suit construction
► New Market is a town in Shenandoah County, VA - population approx. 43,000
► Shenandoah County offers a wide variety of attractions to suit all ages and is widely
known for their out activities such as hiking trails, river recreation, horseback riding, aerial
sports & much more
P R O P E R T Y D E S C R I P T I O N 7
ARTICLE // SHENAND OAH VALLEY IN THE NEWS
SHENANDOAH VALLEY, VA — With the iconic tourism campaign, Virginia is For Lovers, celebrating its 50th anniversary this year, now seems a good time to take stock in what tourism means to the Shenan-doah Valley.
The economic health of the Valley has long been intertwined with the tourism industry. The region is rich in natural beauty, heritage, and culture which all serve to attract visitors.
The Shenandoah Valley Travel Association was formed in 1924 (as Shenandoah Valley, Inc.) to promote tourism to the region. The 1920s and 1930s saw the construction of a number of major hotels in cities and towns like Winchester, Harrisonburg, Luray, and Staunton as well as the authorization of Shenandoah National Park.
Over the last 95 years, the tourism industry in the Valley has continued to expand and diversify. Tourism now generates a significant positive economic impact on our community.
Nearly 500 new hotel rooms have been added in the Shenandoah Val-ley over the past few years, and hundreds more will be coming on-line in 2020. The ripple effect of this lodging increase will add more tourism-related businesses and increase the number of tourism and hospitality jobs. According to the Virginia Employment Commission’s projections, the number of jobs in tourism and hospitality is expected to grow 12% between 2016 and 2026.
“While the scenic beauty is a longstanding draw for tourists, outdoor recreation and associated events are becoming more and more preva-lent. Triathlons, adventure races, cycling events, etc. bring thousands of participants to the Valley all year, benefitting both major cities and small, rural towns.
And considering the increase in vineyards and craft breweries, plus music festivals, museums, and fine restaurants, there are more reasons than ever to visit the Shenandoah Valley,” says John Robbins of the Shenandoah Valley Travel Association (SVTA).
Recent data provided by the U.S. Travel Association indicates that the Shenandoah Valley of Virginia generated $1.5 billion in direct visitor spending in 2018. And travel continues to rise. The U.S. Travel Asso-ciation’s latest Travel Trends Index (TTI) marks the industry’s 116th straight month of growth for travel to and within the United States.
Expenditures for anchor cities throughout the Shenandoah Valley con-tinue to trend up over time. In looking at the most recently available figures (2018 over 2017), the Virginia Tourism Corporation reports Staunton is up 5.8% ($51,655,044 in 2018), Harrisonburg is up 5.3% ($131,396,786 in 2018), Winchester is up 4.4% ($122,110,543 in 2018), and Lexington is up 3.9% ($35,501,401 in 2018). These expenditures represent direct spending by domestic travelers including food, ac-commodations, auto transportation, public transportation, incidental purchases, entertainment/recreation, and travel generated tax receipts.
Virginia’s tourism industry generated a record $26 billion in tourist spending in 2018. Tourists are defined as those who were either on an overnight trip or traveled 50 miles or more away from home. Domes-tic tourists spend roughly $71 million/day in Virginia. Tourism is the fifth-largest employer in Virginia, supporting 234,000 jobs statewide, according to the Virginia Tourism Corporation.
In addition to diversifying and strengthening the local economic base, tourism can also increase community visibility, add cultural and art assets, and generate new economic development inquiries.
TOURISM EXPANDS & STRENGTHENS THE SHENANDOAH VALLEY ECONOMYOCTOBER 20, 2019
VISIT: https://www.visitshenandoah.org/2019/10/20/tourism-helps-to-expand-strengthen-the-shenandoah-valley-economy/P R O P E R T Y D E S C R I P T I O N 8
P R O P E R T Y D E S C R I P T I O N 9
POPULATION 1 MILE 3 MILES 5 MILES
2023 Projection 2,109 4,261 6,724
2018 Estimate 1,978 4,017 6,373
2010 Census 1,880 3,811 6,073
2000 Census 1,575 3,258 5,336
HOUSEHOLDS 1 MILE 3 MILES 5 MILES
2023 Projection 898 1,846 2,859
2018 Estimate 833 1,720 2,677
2010 Census 777 1,601 2,510
2000 Census 649 1,362 2,161
HOUSING
2018 $195,512 $200,294 $198,815
INCOME 1 MILE 3 MILES 5 MILES
Average $68,418 $68,943 $68,230
Median $46,971 $50,284 $52,450
Per Capita $29,321 $29,988 $28,958
EMPLOYMENT 1 MILE 3 MILES 5 MILES
2018 Daytime Population 1,311 2,681 4,651
2018 Unemployment 2.28% 2.02% 2.48%
2018 Median Time Traveled 26 26 26
M A R K E T O V E R V I E W 10
