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Dollar General | Leeper, PAOffering Memorandum
ANDREW FALLONEXECUTIVE MANAGING DIRECTOR
(703) 787-4733 [email protected]
Actual Site
EXCLUSIVE LISTINGOffering Memorandum
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C A L K A I N .C O MC A L K A I N .C O M
Dollar General | Leeper, PA
Dollar General | Leeper, PAOffering Memorandum
32925 Route 66 | Leeper, PA 16233
Asking Price $1,425,000 | Cap Rate 6.65%
Net Operating Income (NOI) $94,724
Rent/Month $7,893
Rent/SF $12.57
Rentable Square Feet 9,,026+/- SF
Land Area 1.45+/- Acres
Tenant Name Dollar General
Credit Rating S&P: BBB
Stock Symbol NYSE: DG
Guarantor Corporate
Ownership Type Fee Simple
Lease Type NNN
Landlord Responsibilities None
Year Built 2016
Lease Term Remaining 13+ Years
Rent Commencement July 24, 2016
Lease Expiration July 31, 2031
Increases 10% Every 5 Years in Option Periods
Options Three (3), Five (5) Year
Rent Schedule
Term Increases Annual Rent Monthly Rent7/27/2015 – 7/31/2031 - $94,724.00 $7,893.67
8/1/2031 – 7/31/2036 (Option 1)
10% $104,196.40 $8,683.03
8/1/2036 – 7/31/2041 (Option 2)
10% $114,616.04 $9,551.34
8/1/2041 – 7/31/2046 (Option 3)
10% $126,077.64 $10,506.47
Investment Highlights • 13+ years remaining on primary lease term
• 10% structured rent increases every 5 years in the option periods
• Absolute NNN lease terms
• New 2016 construction
• Investment grade credit (S&P: BBB)
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Financial Summary
Dollar General | Leeper, PAOffering Memorandum
Founded in 1939, the company first went public under the Dollar General name in 1968 and grew to more than 6,000 stores with $6 billion in sales by the early 2000’s.
Dollar General is well-positioned to serve its customers with value and convenience given its plans to open approximately 1,000 new stores in 2017. To strengthen its position for the long term, Dollar General is making significant investments, primarily in compensation and training for store managers given the critical role this position plays in their customer experience, as well as strategic initiatives.
The company ranks 159th within the Fortune 500 list. Fiscal 2016 revenues exceeded $22.0 billion with a net income of $1.17 billion, and net worth of $5.3 billion.
About Dollar GeneralDollar General (NYSE: DG) is a chain of more than 12,500+ discount stores in 43 states, 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. 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 has more stores than any other retailer and is easily the largest dollar store chain.
Tenant Snapshot
# of Locations 12,500+
Employees 114,000
Distrution Centers14
Fiscal 2016 Sales $22B
Stock SymbolNYSE: DG
Credit Rating S&P: BBB
On a Friday in April, Bob Tharp, the mayor of Decatur, Ark., takes me to see what used to be the commercial heart of his town. There isn’t much to look at beyond the husk of a Walmart Express: 12,000 square feet of cinder block painted in different shades of brown. The glass doors are locked, as they’ve been for 14 months. “For so many people in this town, to have to see this empty building every day, they couldn’t drive by without getting tears in their eyes,” Tharp recalls. The store had opened on a frigid morning in January 2015, just days into his mayorship. “Pinch yourself and it is true,” he’d posted on Facebook the night before. For the first time in a decade, the 1,788 residents could buy groceries in town. But the reprieve was short. The following January, word came from Wal-Mart Stores Inc.’s corporate headquarters, 18 miles to the east in Bentonville, that within the month the store would be closed...
Read Full Story Here: www.bloomberg.com
Dollar General Hits a Gold Mine in Rural AmericaIn the poorest towns, where even Wal-Mart failed, the little-box player is turning a profit. By Mya Frazier
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Tenant Overview
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Distance To:Warren, PA 44 miles
Youngstown, OH 88 miles
Pittsburgh, PA 93 miles
State College, PA 106 miles
Harrisburg, PA
Pittsburgh, PA
Erie, PA
Cleveland, OHLeeper, PA
Youngstown, OH
State College, PA
Warren, PA
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76
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Dollar General | Leeper, PAOffering Memorandum
Location Overview
Subject Site
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32925 Route 66 | Leeper, PA 116233
Dollar General | Leeper, PAOffering Memorandum
Subject Site
Route 66 3,400 VPD
Farmington Township Park
Car Mate Trailers, Inc.
Borland Funeral
Home Inc
Cook Forest Sawmill
Arts Center
Kahle’s Kitchens
Farmington Fire Dept
Leeper Red & White MarketFlea Market
Leeper Carwash
Route 36
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Dollar General | Leeper, PAOffering Memorandum
Route 66 3,400 VPD
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Site Plan
Dollar General | Leeper, PAOffering Memorandum
Radius 3 Miles 5 Miles 10 MilesPopulation2017 Population 1,055 2,801 7,898
2022 Population 1,057 2,783 7,760
2017 Male Population 50.8% 50.6% 51.7%
2017 Female Population 49.2% 49.4% 48.3%
2017 Median Age 46.8 45.6 47.1
Households2017 Total Households 435 1,143 3,312
2022 Total Households 436 1,138 3,259
2017 Average Household Size 2.43 2.45 2.31
Median Household Income2017 Median Household Income $52,986 $48,006 $48,443
2022 Median Household Income $56,558 $51,699 $51,656
2017-2022 Annual Rate 1.31% 1.49% 1.29%
Average Household Income2017 Average Household Income $66,967 $63,638 $61,755
2022 Average Household Income $74,731 $71,487 $69,455
2017-2022 Annual Rate 2.22% 2.35% 2.38%
Per Capita Income2017 Per Capita Income $27,668 $26,103 $25,597
2022 Per Capita Income $30,887 $29,377 $28,821
2017-2022 Annual Rate 2.23% 2.39% 2.40%
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Demographics
Demographics | 5 Mile Radius
Dollar General | Leeper, PAOffering Memorandum
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AGE PYRAMID
Dollar General | Leeper, PAOffering Memorandum
ANDREW FALLONEXECUTIVE MANAGING DIRECTOR
(703) 787-4733 [email protected]
Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.
We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.
Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.
With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.
Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.
Client Testimonial
“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.
- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)
$11.5 Billion in Closed Transactions
$350 Million
in Active Listings
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C A L K A I N .C O MC A L K A I N .C O M
About Calkain
DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.
Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783
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