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 $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 17864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003 DOLLAR GENERAL CONTACT INFORMATION GLA 9,100 SF Listing Agent Nina McGaughy Lot Size 1.31 AC Phone Number (424) 325-2624 Year Built 2019 INVESTMENT HIGHLIGHTS Absolute Net (NNN) Investment Dollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance, insurance and taxes providing the landlord with a low maintenance asset DOLLAR GENERAL Corporate Guarantee Dollar General Corporation (NYSE:DG) is a fortune 500 company with over 80 years in business and $25.6 billion in revenue FY'18. Future Rent Growth-10% Increases In Each Option Period There are 10% rental increases built into the lease in each option period, providing the landlord with positive rent growth and a hedge against inflation.. Strong Tenant Commitment The lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the lease w Opan NERAL Representative Photo 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 $1,519,661* Street Address 511 Old Route 15 Cap Rate 6.80% City Port Trevorton Net Operating Income $103,337 State PA Price / SF $167 Zip 17864 Rent/SF $40 *Offering 2.5% Fee to Buy-Side Broker APN 05-05-003 DOLLAR GENERAL CONTACT INFORMATION GLA 9,100 SF Listing Agent Nina McGaughy Lot Size 1.31 AC Phone Number (424) 325-2624 Year Built 2019 INVESTMENT HIGHLIGHTS Absolute Net (NNN) Investment Dollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance, insurance and taxes providing the landlord with a low maintenance asset DOLLAR GENERAL Corporate Guarantee Dollar General Corporation (NYSE:DG) is a fortune 500 company with over 80 years in business and $25.6 billion in revenue FY'18. Future Rent Growth-10% Increases In Each Option Period There are 10% rental increases built into the lease in each option period, providing the landlord with positive rent growth and a hedge against inflation.. Strong Tenant Commitment The lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the lease w Opan NERAL Representative Photo
