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Dollar Tree & Maurices OFFERING MEMORANDUM DOLLAR TREE & MAURICES 3050A & 3050B S HIGHWAY 169 GRAND RAPIDS, MN TABLE OF CONTENTS DOLLARTREE&MAURICES 01 02 03 FINANCIAL INVESTMENT MARKET OVERVIEW OVERVIEW OVERVIEW PAGES 03-07 PAGES 08-14 PAGES 15-17 ACT ID: ZAB0260097 FINANCIAL OVERVIEW SECTION 1 01 FINANCIAL OVERVIEW SECTION1 EXECUTIVE SUMMARY DOLLAR TREE & MAURICES 3050A & 3050B S Highway 169, Grand Rapids, MN 55744 PRICING Price: $1,880,000 Cap Rate: 8.50% Gross Leasable Area: 13,000 PRICE: CAP RATE: NOI: Price Per Square Foot: $144.62 $1,880,000 8.50% $159,761 Year Built: 2013 Lot Size: 1.58 Acres INVESTMENT HIGHLIGHTS SQUARE FEET: LEASE TYPES: ACREAGE: ➢ Offering Includes Standalone Dollar Tree (NASDAQ: 13,000 Triple Net 1.58 Acres “DLTR”) & Maurices (NASDAQ: “ASNA” – Parent Co) ➢ Walmart Supercenter Outparcel DEMOGRAPHICS ➢ Built in 2013 | Build-to-Suit Construction for both Dollar 1-Mile 3-Mile 5-Mile Tree & Maurices Population 401 7,819 15,469 Repeat clients ➢ Zero Lease Rollover until April 2023 Average HH Decades worth of experience $67,202 $59,879 $63,280 Income ➢ Close ProximityHighly-focusedto Major specializationRetailers like Target, The Home Depot & Walmart 4 SECTION1 OPERATING SUMMARY SUMMARY PROPOSED NEW FINANCING Price: $1,880,000 Loan Amount: $1,316,000 Down Payment (30%): $564,000 Terms 4.25% Interest Rate Current CAP: 8.50% Cash on Cash: 12.70% 25 Year Amortization Square Feet 13,000 5 Year Term Cost per Square Feet: $144.62 Debt Coverage Ratio: 1.87 Monthly Payment: $7,129.27 Year Built: 2013 Annual Payment: $85,551.28 OPERATING DATA EXPENSES Scheduled Gross Income: $164,500 Taxes: $2.81 $36,556 CTI Reimbursements: $58,420 Insurance: $0.31 $4,072 Admin Reimbursements: $1,380 CAM: $1.41 $18,303 Total Income: $224,299 Management: 2.50% $5,607 Vacancy Factor: $- TOTAL EXPENSES: $64,538 Gross Operating Income: $224,299 Per RSF: $4.96 Less Expenses: $64,538 Net Operating Income: $159,761 8.50% Capital Reserves: $2,660 ($.20) Loan Payments: $85,551 Pre Tax Cash Flow: $71,610 12.70% Plus Principal Reduction: $30,205 Total Return Before Taxes: $101,815 18.05% 5 SECTION1 RENT ROLL New Sq. % of Lease Lease Monthly Annual Annual Bump Annual Lease Option Suite Tenant Rent Ft. Total Start End Rent Rent PSF Date Reimb. Type Terms PSF A Dollar Tree 8,000 61.54% 2/3/2013 4/30/2023 $7,666 $92,000 $11.50 $36,429 NNN (2) 5-Yr Option I 6/8/2023 $12.00 Option II 6/8/2028 $12.50 B Maurices 5,000 38.46% 1/31/2013 6/30/2023 $6,041 $72,500 $14.50 $23,369 NNN (4) 5-Yr Option I 7/1/2023 $15.00 Option II 7/1/2028 $15.50 Option III 7/1/2033 $16.00 Option IV 7/1/2038 $16.50 Current Totals 13,000 100% $13,708 $164,500 $12.65 $59,799 Occupied 13,000 100% $13,708 $164,500 $12.65 $59,799 Vacant 6 SECTION1 TENANT PROFILES Dollar Tree, Inc. is an American chain of discount variety Maurice's is a part of Ascena Retail Group, Inc., through its stores that sells items for $1 or less. Headquartered in subsidiaries, operates as a specialty retailer of clothing, shoes, Chesapeake, Virginia, it is a member company of Fortune and accessories for missy, plus-size women, and tween girls in 500 and operates 15,155 stores throughout the 48 contiguous the United States, Canada, and Puerto Rico. The company U.S. states and Canada. Its stores are supported by a operates through five segments: Justice, Lane Bryant, nationwide logistics network of eleven distribution centers. Maurice's, Dressbarn, and Catherine's. The company operates The company operates one-dollar stores under the names of more than 4,900 stores. It also offers its products online. The Dollar Tree and Dollar Bills. The company also operates multi- company was formerly known as Dress Barn, Inc. and changed price-point variety chains under the names Deals and Family its name to Ascena Retail Group, Inc. in January 2011. Ascena Dollar. Retail Group, Inc. was founded in 1962 and is headquartered in Mahwah, New Jersey. Headquarters: Chesapeake, Virginia Headquarters: Duluth, Minnesota No. of Locations: 15,155+ No. of Locations: 950 Symbol: NASDAQ: “DTR” Symbol: NASDAQ: “ASNA” Website: www.dollartree.com Website: www.maurices.com Square Footage: 8,000 Square Footage: 5,000 Lease Start: February 3, 2013 Lease Start: January 31, 2013 Lease Expiration: April 30, 2023 Lease Expiration: June 30, 2023 7 INVESTMENT OVERVIEW SECTION 2 02 INVESTMENT OVERVIEW INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS INVESTMENT WRITE-UP Marcus & Millichap is pleased to present this standalone Dollar Tree and SECTION2 ➢ Positioned as a Walmart Supercenter standalone Maurices located in Grand Rapids, Minnesota. Outparcel Grand Rapids is the county seat of Itasca County and is named for the ➢ Offering Includes Standalone Dollar Tree & 3.5-mile long local rapids in the Mississippi River. Grand Rapids provides Standalone Maurices small town charm whilst surrounding its residents and visitors with Minnesota’s nature. Set apart by a progressive attitude and abundant ➢ Modified NNN Leases for Both Tenants | resources, Grand Rapids is the emerging economic focus of Northcentral Minnesota. Significant increases in area employment are anticipated Tenants Reimburse Fully for Share of CTI over the next few years as the largest projects in development come Expenses online, therefore Grand Rapids is actively seeking new business and housing partners and assisting the growth of existing enterprises. ➢ Walmart, Target & The Home Depot Nearby | Close Proximity to Several Major The two buildings cover 13,000 square feet, both constructed as build-to- Retailers suit for each tenant in 2013. There is zero near-term lease rollover as each tenant has substantial lease term left. Dollar Tree and Maurices both operate under modified triple net leases, with the landlord ➢ Ideally Situated in a Rapidly Growing Trade responsible for the roof and structure and each tenant reimbursing for Area their pro-rata share of expenses. Dollar Tree is a Fortune 150 company and operates more than 14,835 ➢ Zero Lease Rollover Until April 2023 | No locations across 48 states and Canada. In July 2015, Dollar Tree completed its purchase of Family Dollar after a long-awaited Near-Term Lease Rollover Risk completion of the deal that drew close to a yearlong takeover saga that included a hostile buyout attempt from another discount retailer, ➢ Sits Less than 2 Miles from the Grand Rapids Dollar General. Itasca County Airport Maurices’s was a part of Ascena Retail Group, Inc which operates more Repeat clients than 4,900 stores across five main brands and is publically traded on the ➢ Easy DecadesHighway worthAccess of experience| Adjacent to NASDAQ under the ticker symbol “ASNA”. However, in late March 2019, Minnesota’s Highway 169 (“Connector for a majority stake in the Duluth-based retail chain was purchased in a the Midwest”)Highly-focused specialization $300 million deal by an affiliate of the London-based private equity firm, OpCapita LLP. Ascena will maintain a significant minority interest. 9 PROPERTY PHOTOS SECTION2 Repeat clients Decades worth of experience Highly-focused specialization 10 DRONE AERIAL SECTION2 Repeat clients Decades worth of experience Highly-focused specialization 193011 MARKET AERIAL SECTION2 Repeat clients Decades worth of experience Highly-focused specialization 193012 LOCAL MAP SECTION2 1.5 MILES 3.0 MILES 4.2 MILES Grand Rapids Grand Itasca Clinic Itasca Community Itasca County & Hospital College Airport Repeat clients Decades worth of experience Highly-focused specialization 193013 REGIONAL MAP SECTION2 Repeat clients 81 MILESDecades worth of experience 173 MILES 410 MILES Duluth, Minneapolis, Green Bay, Highly-focused specialization Minnesota Minnesota Wisconsin 193014 MARKET OVERVIEW SECTION 3 03 MARKET OVERVIEW MARKET OVERVIEW Race and Ethnicity Population The current year racial makeup of your selected area is as In 2019, the population in your selected geography is 15,469. follows: 93.47% White, 0.91% Black, 0.05% Native The population has changed by 5.28% since 2000. It is American and 0.52% Asian/Pacific Islander. Compare estimated that the population in your area will be 15,768.00 five these to US averages which are: 70.20% White, 12.89% years from now, which represents a change of 1.93% from the Black, 0.19% Native American and 5.59% Asian/Pacific current year. The current population is 48.70% male and Islander. People of Hispanic origin are counted 51.30% female. The median age of the population in your area independently of race. is 42.08, compare this to the US average which is 37.95. The population density in your area is 196.33 people per square People of Hispanic origin make up 1.91% of the current SECTION3 mile. 2018 HOUSEHOLDS: year population in your selected area. Compare this to the Households US average of 18.01%. There are currentlyGrowth 6,558 households in your selected Employment geography. The2018-number2023*: of households has changed by 8.33% 6.0% since 2000. It is estimated that the number of households in In 2019, there are 11,417 employees in your selected area, your area will be 6,759 five years from now, which represents a this is also known as the daytime population. The 2000 change of 3.06% from the current year. The average household Census revealed that 52.57% of employees are employed size in your area is 2.24 persons. in white-collar occupations in this geography, and 46.97% are employed in blue-collar occupations. In 2019, unemployment in this area is 6.49%. In 2000, the average Income time traveled to work was 18.00 minutes.
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