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Developer, Southwest General Development of Scottsdale (Beau Woodring, managing partner) finished construction and sold two Dollar General stores. The stores are identical, both 9,100 sq. ft. (70' x 130') were completed this year. The store at 3130 S Kinney Road in Tucson sold for[mepr-show rules="58038"]$1.535 million ($169 PSF) to HWB Holdings of Pauma Valley, CA and the store at 1335 W Ajo Way in Tucson sold for $1.79 million ($197 PSF) to DSR Tucson of Los Angeles, CA. Both were all-cash deals. Both stores held Grand Openings in May. Dollar General stores have been attractive investments for some time, with investors waiting for construction to be completed, for these above average investment returns.
Dave Hammack of Volk Company in Tucson represented the developer in the site acquisitions of both locations. Woodring told us Southwest General is actively looking for more Dollar General sites of 1-1.25 acres in size and preferably already zoned commercial in Tucson and around the state.
Southwest General Development, the designated developer for Dollar General stores for the state of Arizona and southern Nevada, plans to construct 12 new stores this year. This is the third and final planned store in the Tucson area for 2013. In March, the store in Three Points was completed and sold for $1.47 million ($162 PSF). Southwest General Development is one of two developers of Dollar Generals in the Tucson area, the other being DCM Development Company of Tucson (Chris Lechner, manager) an affiliate of Lechner Construction that currently has another two stores under construction.
Dollar General Corporation of Goodlettsville, TN (NYSE:DG) has stated the company intends to continue its consistent record of positive growth in 2013 with the creation of 6,000 new jobs and the planned addition of 635 new stores and 550 relocations nationally. Each store employs 8-12 people and bring $50,000 - $70,000 in tax revenues to the community per year. With the addition of these news stores, Dollar General will have created approximately 30,000 new jobs over the last six years.
Dollar General Corporate recently announced the completion of $200 million in share repurchase of its common stock in the open market, indicating its commitment toward utilizing cash flow to enhance stakeholders' return.
These repurchases are part of the existing Board authorized share repurchase program. Year-to-date, Dollar General has repurchased approximately $220 million of its common stock and has approximately $424 million remaining in the existing authorization. Dollar General has repurchased approximately $1.1 billion, or 23.6 million shares of its common stock since the inception of its current share repurchase program in December 2011.
"The strength of our balance sheet coupled with out strong cash flow generation makes this an opportune time to return cash to our shareholders. We are committed to optimizing our capital structure, while increasing shareholder value, " said Rick Dreiling, Dollar General's chairman and CEO.
Dollar General Corporation has been delivering value to shoppers for more than 70 years, selling products from American's most trusted manufacturers such as Proctor & Gamble, Kimberly-Clark, Unilever, Kellogg's, General Mills, Nabisco, Hanes, PepsiCo and Coca-Cola.
Woodring can be reached at (646) 734-2654. Lechner is at (520) 888-1212. Dollar General's Media Department can be contacted at (615) 855-5210 and Hammack is at (520) 326-3200.[/mepr-show]