PROPERTY INFOTenantStreet AddressCityStateZipAPNGLALot SizeYear BuiltFINANCIAL SUMMARYDollar GeneralPurchase Price$1,519,661*511 Old Route 15Cap Rate6.80%Port TrevortonNet Operating Income$103,337PAPrice / SF$1671/864Rent/SF$4005-05-003*Offering 2.5% Fee to Buy-Side BrokerCONTACT INFORMATION9,100 SFListing AgentNina McGaughy1.31 ACPhone Number(424) 325-26242019INVESTMENT HIGHLIGHTSAbsolute Net (NNN) InvestmentDollar General operates on an Absolute Net (NNN) Lease with tenant fully responsible for maintenance,insurance and taxes providing the landlord with a low maintenance assetDOLLAR GENERALCorporate GuaranteeDollar General Corporation (NYSEDG) is a fortune 500 company with over 80 years in business and $25.6billion in revenue FY'18.w Open!Future Rent Growth-10% Increases In Each Option PeriodThere are 10% rental increases built into the lease in each option period, providing the landlord with positiverent growth and a hedge against inflation..Strong Tenant CommitmentThe lease features an initial term of 15 Years with an additional three (3) 5-year options to extend the leaseb. For the same Dollar General property shown above, forecast the rent after the first 5-yearoption period, at the beginning of the second 5-year option period (in other words at therent that will apply during the second 5-year option period). Explain your thought processand show your work.ERALDOLLAR GENERALRepresentative Photo

Rent refers to the payment made by a tenant to a landlord or property owner in exchange for the use…

Answered: For the same Dollar General property…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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you are pricing a property and found four suitable comparables (I,II,III and IV) with the following adjusted sales prices I. 127,000 II. 131,000 III. 133,000 IV. 128,000 In your opinion, property II was the most similar to you decided to "weoght" it with 60% of the total value estimate. accordingly you decide to "weight" property I with 20%. Properties II and IV were least like the subject property and you gave them each 10% for a total of 100%. what is your estimate of what the property is worth? A. 129,750 B. 131,000 C. 133,000 D. 130,100
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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.