95 7th Street N, Northwood, IA 9.3% CAP RATE $322,000 - Bull Realty

Nancy Miller, CCIM/MBA 

V.P. National Net Lease Investment Group 

404.876.1640 ext. 118 

Nancy@BullRealty.com 

GA License #126108 

95 7th Street N, Northwood, IA 

9.3% CAP RATE 

$322,000 

Sheree Strome, CCIM 

V.P. National Net Lease Investment Group 

404.876.1640 ext. 122 

Sheree@BullRealty.com 


Marketed in conjunction with: Richard Ryan, REMAX Best Commercial, Iowa License #B13530000 

Bull Realty, Inc. 

1801 Piedmont Avenue 

Atlanta, GA 30324 

www.BullRealty.com 

GA License #H-20209

2 

2 

95 7th Street N 

Northwood, IA 50459 


National Net Lease Investment Group 

404.876.1640 ext. 118 



Disclaimer 

The Confidential Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain 

all of the information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and 

are based upon assumptions relating to the general economy, competition and other factors, which therefore, are subject to material 

change or variation. Prospective purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect 

the Property will be made available to qualified prospective purchasers. 

In this Confidential Memorandum, certain documents, including financial information, are described in summary form and do not purport to 

be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested 

parties are expected to review independently all documents. 

This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute 

a recommendation, endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective 

purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. 

Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/ 

or to terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to 

any purchaser reviewing this Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the purchase 

of the Property has been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obligations 

therein have been satisfied or waived. 

This Confidential Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this 

Confidential Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Confidential Memorandum and 

its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum 

may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The 

terms and conditions set forth above apply to this Confidential Memorandum in its entirety and all documents, disks and other information 

provided in connection therewith. 


404.876.1640 ext. 122 

Sheree@BullRealty.com

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Disclaimer 2 

Table of Contents 3 

Executive Summary 4 

Investment Overview 5-6 

Aerials 7 

Location Maps 8 

Demographics 9 

Tenant Description 10 

Comparables 11 

Broker Profiles 12 

Confidentiality Agreement 13 

Table of Contents 



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Highlights 

� Offered at $322,000 

� 9.3% Cap Rate 

� Lease term recently 

extended through 

Apr 2018 

� One 5 year renewal 

option 

� 10% rent increase at 

renewal 





404.876.1640 ext. 118 


Executive Summary 

Bull Realty is pleased to present this single tenant, net lease Dollar General, located in Northwood, 

IA, four miles from the Iowa-Minnesota border. This +/- 7,656 sq ft store is situated in the 

heart of town just north of State Hwy 105 (Central Ave), the main east-west artery through 

Northwood. 

The corporate guaranteed double net lease commenced in May 2003 for a 5 year initial term 

which was renewed in May 2008. Earlier this year, the first renewal option was exercised and 

extends to 2018. There is an additional 5-year renewal option with a 10% rent increase. Annual 

rents are $30,000. Landlord responsibility is limited and Dollar General provides full reimbursement 

of the taxes and insurance. They also pay the Landlord an annual parking lot 

maintenance fee of $1,608 for exterior grounds care. 

Northwood is the county seat of Worth County located six miles east of Interstate 35 midway 

between Minneapolis (113 miles north) and Des Moines (140 miles south). The population 

within a 5 mile radius is 2,564 with an average household income of $49,801. 

This is a solid investment for an investor looking for a proven, “vintage” Dollar General, with 

higher returns, minimal landlord responsibilities, good real estate, and a successful national 

credit tenant. 

Dollar General is the largest “small box” discount retailer in the US. Headquartered in Goodlettsville, 

TN, (Nashville) the company was established in 1939. In April of 2012, Standard & 

Poor’s upgraded the company’s rating from BB+ to BBB-, reflecting their sustained success 

and performance with over 10,000 stores in 39 states. Dollar General continues to also ex- 



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5 

Property Information 

5 



Subject Property: Single Tenant 

Property Address: 95 7th Street N 


Worth County 

Price: $ 322,000.00 

Rentable Square Feet: +/- 7,656 

Price Per Square Foot: $42.06 

Current Annual NOI: $30,000 

Base Rent: $3.92 /sq ft 

Cap Rate: 9.3% 

Construction Year: 2003 

Lot Size: +/- 7,656 sq ft 

Type of Ownership: Fee Simple 

Lease Summary 



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Investment Overview 

Tenant Trade Name: Dollar General 

Tenant: Dolgencorp, Inc. 

Ownership: Public 

Lease Type: Double Net Lease* 

Lease Commencement: May 1, 2003 

Lease Expiration: April 30, 2018 ** 

Renewal Options / Rent Increases: One 5 year with 10% increase 

Rent & CAM Schedule: 

Annual Annual 

Term Dates Rent CAM 

Option 1 7.1.12—4.30.13 $30,000 $1,608 

Ext Term 5.1.13—4.30.18 $30,000 $1,689 

Option 2 5.1.18—4.30.23 $33,000 $1,854 

Expenses: 

* Landlord responsible for roof, structure, parking lot, landscaping and repairs 

costing $500 or more per occurrence. Tenant must have HVAC preventative 

maintenance contract. 

** On May 30, 2012, the term of the first renewal option was extended. 

Expenses information on next page 



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Property Information 

6 



Subject Property: Single Tenant 

Property Address: 95 7th Street N 


Worth County 

Price: $ 322,000.00 

Rentable Square Feet: +/- 7,656 

Price Per Square Foot: $42.06 

Current Annual NOI: $30,000 

Base Rent: $3.92 /sq ft 


Construction Year: 2003 

Lot Size: +/- 7,656 sq ft 

Type of Ownership: Fee Simple 

Lease Summary 

Investment Overview (continued) 

Tenant Trade Name: Dollar General 

Tenant: Dolgencorp, Inc. 

Ownership: Public 

Lease Type: Double Net Lease* 

Lease Commencement: May 1, 2003 

Lease Expiration: April 30, 2018 ** 

Renewal Options / Rent Increases: One 5 year with 10% increase 

Expenses: 

Taxes: Actual taxes for 2011 were $3,516. Maximum reimbursement by Tenant is 

$0.60 per sq ft = $4,594. Reimbursement shall not increase more than1% over previous 

year’s payment. 

Insurance: Actual insurance premium for 2011 was $1,458. Maximum reimbursement 

by Tenant is $0.20 per sq ft = $1,531. Reimbursement shall not increase more 

than1% over previous year’s payment. 

Parking Lot Maintenance/CAM Reimbursement: Effective 5/30/2012, the Tenant 

reimbursements increased to $133.98 per month. 

Rent information on previous page 



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To I-35 and 

Diamond Jo 

Casino 

High School 



404.876.1640 ext. 118 


Worth Brewing 

Company 

Northwood Foods - 

Pork Processing 

Community 

School 


Aerials 

Advanced 

Component 

Technologies 


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Location Maps 



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9 

2011 Demographics (STDB) 

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1mile 

Population 1,954 

Households 863 

Average Household Income $48,759 

Median Age 44.1 

3 mile 

Population 2,157 

Households 944 



5 mile 

Population 2,564 

Households 1,106 



Demographics and Traffic Count 



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Minnesota 

Iowa 

3,910 VPD 



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Dollar General is the largest “small box” discount retailer in the US. Now 

headquartered in Goodlettsville, TN, the company was established in 

Scottsville, KY in 1939. Today, with 10,000 stores in 39 states, Dollar 

General, whose store format is generally in suburban markets, is expanding 

into more densely populated areas and often “re-using” vacant retail 

locations. On January 3rd Dollar General announced plans to open 625 

new stores in 2012 thereby creating over 6,000 new jobs. These new stores 

include the company’s initial expansion into the states of California and 

Massachusetts. 

Their strategy is to deliver a wide variety of brand name retail and 

consumer products at value. Dollar General’s mission is for convenience, 

quality brands and low prices! 

The company launched a successful IPO in 2009 (Symbol "DG"). For the 

first quarter of 2012, DG reported a 20% increase in net sales from $3,486 

million a year ago to $4,185 million. 

In April of 2012, Dollar General’s S & P rating was upgraded from “BB+” to 

“BBB-” . According to Standard & Poor’s credit analysis, Ana Lai, “The 

ratings on Dollar General reflect our expectation that the company’s 

value-focused merchandising strategy and continued store expansion will 

sustain the positive operating momentum and contribute to further 

improvement in credit measures.” 



404.876.1640 ext. 118 


Tenant Description 

Dollar General Historical Growth Chart (DG) 

July 2011 to June 2012 



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SUBJECT PROPERTY 

Asking Price: $322,000 

Price per Sq Ft: $42.06 

Sq Ft: +/- 7,656 

Year Built: 2003 

Lease Expires: 4/30/2018 






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Comparables 

Property Address 2813 1st Ave SW | Hickory, NC 

Price Sold | PSF $663,500 | $65.00 

Date Sold May 2011 

Sq Ft | Year Built 8,000 | 2003 


Property Address 103 Bralick Way | Oconto, WI 

Price Sold | PSF $557,000 | $63.60 

Date Sold Apr 2012 

Sq Ft | Year Built 8,758 | 2004 


Property Address 6950 S Hwy 45 | Ramer, TN 


Date Sold May 2012 

Sq Ft | Year Built 8,190 | 2004 


Property Address 315 N Main St | Sigourney, IA 


Date Sold Oct 2011 

Sq Ft | Year Built 8,000| 2000 

Lease Expires: Not available 



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Sheree Strome has been in the commercial real 

estate business for more than twenty-five years 

from the financing side of the business. She has 

underwritten more than five hundred million dollars 

of commercial properties establishing strong 

relationships with lenders, brokers and principals 

throughout the Southeast. Obtaining the best 

financing and dealing with existing financing issues 

has proven to be a major benefit for her clients in 

this cycle. 

Sheree utilizes her relationships and extensive knowledge of financing 

to help clients with existing financing issues and help structure the best 

possible transaction to maximize investment goals. 

Broker Profile 

Nancy Miller joined Atlanta based Bull Realty in 

2001. Nancy has held a Georgia real estate sales 

license for over 25 years and is licensed in several 

Southeastern states. She brings experience from 

both sides of the table as a real estate investor and 

broker. Nancy personally owns several investment 

properties, including a net leased Dollar General. 

Since joining Bull Realty, Nancy has brokered well 

over one hundred million dollars in investment sales 

and leasing transactions. 

Nancy‘s personalized approach includes indentifying client goals, 

priorities and timeframes. She will develop a game plan designed to 

exceed expectations which translates into adding value and maximizing 

returns. 

National Net Lease Team 

The National Net Lease Team works with developers, buyers and sellers throughout the US. They are an excellent resource for current market 

trends, cap rates, lender resources, and off as well as on-market net lease opportunities. They are both active members of ICSC and are CCIM’s. 

They are supported by a full time licensed assistant, Holly Hollinger, and an outstanding marketing and research team. 

About Bull Realty 

Bull Realty is a commercial real estate brokerage firm headquartered in Atlanta, Georgia. The firm is best known for their successful national 

marketing platform to ensure that available properties are marketed aggressively to the buyer and broker community. They also feature: 

• Broker specialization by commercial property type 

• REO and troubled asset marketing for over 74 lenders, nationwide 

• Google consistently chooses BullRealty.com as the number one website for the most often used search phrase used by people looking for 

commercial real estate in Georgia, “Commercial Real Estate Georgia”. 

• Comprehensive marketing services which include video, social media and radio for appropriate properties. 

• Founder, Michael Bull hosts a national weekly Commercial Real Estate Show, talk radio show about commercial real estate which airs on radio 

stations and on-line at www.CREshow.com. 



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This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit 

of the undersigned party (“Prospect”), the owner of the subject property (the 

“Seller”) and undersigned agent Bull Realty Incorporated (“Broker”). 

Now therefore in consideration of the privileges granted to Prospect with respect to 

receiving certain confidential information, and other good and valuable consideration, 

the Prospect hereby agrees to the following: 

I. Confidential Information: 

Prospect will receive confidential information regarding property referred to as Dollar 

General, 95 7th Street N, Northwood, IA Prospect agrees to not disclose to any 

person that the Property or the note may be available for sale or lease, or that discussions 

or negotiations are taking place concerning a possible purchase of the 

Property or the note, nor any terms, conditions, or other facts with respect to the 

Property or the note, including but not limited to tenant information, lease rates, 

lease expirations, income and expenses, and any such possible purchase, including 

the status thereof. The term “person” used in this agreement shall be interpreted 

broadly and shall include, without limitation, any corporation, company, partnership 

or individual other than parties to which Broker approves in writing. Prospect agrees 

to not contact the Seller, the management, the tenants, the lender, the vendors, 

the insurers, the employees or the customers of any business at the site. 

II. Acting as a Principal: 

Prospect hereby warrants that it is acting as a principal only, and not as a broker or 

agent, regarding this contemplated transaction. Prospect acknowledges and 

agrees that Bull Realty, Inc., will act in an agency capacity on behalf of the Seller, 

and will be used as the sole broker or agent in connection with the purchase of the 

property. Bull Realty, Inc. will be paid a commission by the Seller. Prospect agrees to 

not be involved in any arrangement to lease or purchase the property, in whole or in 

part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy 

court, or in any other manner acquire an investment in or control of the property, 

unless Bull Realty, Inc. is included as the selling agent and is compensated as 

described herein. Prospect reserves the right to involve any lender, underwriter, equity 

partners, attorney or other advisor in the transaction provided said party is paid 

by the Prospect, and said party has agreed in writing to this confidentiality agreement. 

III. Governing Law 

Confidentiality Agreement 

This Agreement shall be governed and construed in accordance with the laws of the State 

of Iowa. 

Accepted and agreed to this _______ day of ___________________, 2012. 

Prospect 

Signature ___________________________________________________________________ 

Printed Name _______________________________________________________________ 

Title _________________________________________________________________________ 

Company Name ____________________________________________________________ 

Address _____________________________________________________________________ 

____________________________________________________________________ 

Email _______________________________________________________________________ 

Phone ______________________________________________________________________ 

Fax _________________________________________________________________________ 

You may return the executed agreement by fax (404.876.7073) or email. 

Bull Realty, Inc. , 1801 Piedmont Ave, Atlanta, GA 30324 (GA License #H-20209) 

Broker of Record: Richard Ryan, REMAX Best Commercial, IA License #B13530000 

2322 E Kimberly Rd, Ste 140N, Davenport, IA 52807 



404.876.1640 ext. 118 





404.876.1640 ext. 122 

Sheree@BullRealty.com 

GA License #341202

95 7th Street N, Northwood, IA 9.3% CAP RATE $322,000 - Bull Realty

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