4. a. You are considering acquiring a building with a Dollar General as tenant and the following financial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your offer, at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price SUSPROG Street Address 5 Old Route t Cap Rate G.BOX City Not Operating Income $100,337 Port Trevorton M State Price/SF 38/ Zip 1/64 Rent/SF $40 APN 05-05-003 Og 2,5% Fetty de CONTACT INFORMATION DOLLAR GENERAL GLA 9100 S Listing Agent Nina McGaughy Lot Size 131 AC Phone Number (424) 3252624 Year Built 2019 Representative Photo INVESTMENT HIGHLIGHTS Absolute Net (NNN) Investment Dollar General operates on an Absolute Not NNN Lease with tenant fully responsable for maintenance, insurance and taxes providing the landlord with a low maintenance asset DOLLAR GENERAL Corporate Guarantee Dollar General Corporation (NYSEDG is a lotune 500 company with over 80 years in business and $25.6 bion in revenue FYR Future Rent Growth 10% increases in Each Option Period Thond are 10% ortal increases but into the loase in each option period, providing the landlord with positive sont growth and a hodge against inflation Strong Tenant Commitment The loase features an inal term of 15 Yours with an additional tece 05 year options to cond the loase I b. For the same Dollar General property shown above, forecast the rent after the first 5-year option period, at the beginning of the second 5-year option period (in other words at the rent that will apply during the second 5-year option period). Explain your thought process and show your work. 4. a. You are considering acquiring a building with a Dollar General as tenant and the following financial terms and performance ratios (see graphic). You want to buy it at an 8.5 cap. What is your offer, at the 8.5 cap? Show your work. PROPERTY INFO FINANCIAL SUMMARY Tenant Dollar General Purchase Price SUSPROG Street Address 5 Old Route t Cap Rate G.BOX City Not Operating Income $100,337 Port Trevorton M State Price/SF 38/ Zip 1/64 Rent/SF $40 APN 05-05-003 Og 2,5% Fetty de CONTACT INFORMATION DOLLAR GENERAL GLA 9100 S Listing Agent Nina McGaughy Lot Size 131 AC Phone Number (424) 3252624 Year Built 2019 Representative Photo INVESTMENT HIGHLIGHTS Absolute Net (NNN) Investment Dollar General operates on an Absolute Not NNN Lease with tenant fully responsable for maintenance, insurance and taxes providing the landlord with a low maintenance asset DOLLAR GENERAL Corporate Guarantee Dollar General Corporation (NYSEDG is a lotune 500 company with over 80 years in business and $25.6 bion in revenue FYR Future Rent Growth 10% increases in Each Option Period Thond are 10% ortal increases but into the loase in each option period, providing the landlord with positive sont growth and a hodge against inflation Strong Tenant Commitment The loase features an inal term of 15 Yours with an additional tece 05 year options to cond the loase I b. For the same Dollar General property shown above, forecast the rent after the first 5-year option period, at the beginning of the second 5-year option period (in other words at the rent that will apply during the second 5-year option period). Explain your thought process and show your work
