Family Dollar 7365 Alameda Ave El Paso TX
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OFFERING MEMORANDUM 7365 Alameda Ave, El Paso, TX 79915 Family Dollar Representative Photo ™ ™ EXCLUSIVELY LISTED BY JOSH BISHOP CHAD KURZ KYLE MATTHEWS VP & Director SVP & National Director Broker of Record [email protected] [email protected] LIC # 678067 DIR (214) 692-2289 DIR (214) 692-2927 MOB (315) 730-6228 MOB (562) 480-2937 LIC # 01940394 LIC # 01911198 EXCLUSIVELY LISTED BY CONTENTS 4 INVESTMENT OVERVIEW Investment Highlights 6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data 8 TENANT OVERVIEW Family Dollar Overview 10 PROPERTY OVERVIEW The Offering Site Description Parcel Map Tenant Map Regional Map 14 AREA OVERVIEW Demographics ™ Representative Photo INVESTMENT OVERVIEW 4 | Family Dollar - El Paso, TX Investment Highlights • Ideal 1031 exchange property • Brand new 2016 construction • 15-Year absolute NNN lease; Zero management responsibility • Attractive 10% rent increase in year 11 of base term; strong hedge against inflation • Average return of 6.31% over base term of the lease; assuming a purchase at list price • Strong average traffic counts of over 15,000 vehicles daily on Dyer Street • 3-mile demographics in excess of 84,850 residents • 5-mile demographics in excess of 206,400 residents • Estimated population growth over approximately 1.50% over the next 5 years • Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation’s “largest small-box discount retailer” with more than 13,000 locations nationwide • Standard & Poor’s credit rating of BB+ MATTHEWS RETAIL ADVISORS | 5 Representative Photo FINANCIAL ANALYSIS 6 | Family Dollar - El Paso, TX Family Dollar Annualized Operating Data 7365 Alameda Ave, El Paso, TX 79915 Monthly Rent Annual Rent Rent/SF List Price ............................................................................................ $1,916,295 Current -9/30/2036 $9,581.25 $114,975.00 $13.82 10/1/2026 - 9/30/2031 $10,539.38 $126,472.50 $15.20 CAP Rate - Current ................................................................................... 6.10% Option 1 $11,593.31 $139,119.75 $16.72 Gross Leasable Area ...................................................................... ± 8,320 SF Option 2 $12,752.64 $153,031.73 $18.39 Lot Size ............................................................................................. ± 1.11 Acres Option 3 $14,027.91 $168,334.90 $20.23 Year Built ....................................................................................................... 2016 Option 4 $15,430.70 $185,168.39 $22.26 Option 5 $16,973.77 $203,685.23 $24.48 Option 6 $18,671.15 $224,053.75 $26.93 Tenant Summary Tenant Trade Name Family Dollar Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 15 years Rent Commencement Date 3/10/2016 Lease Expiration Date 9/30/2031 Term Remaining on Lease ± 14.50 years Increases 10% increase in year 11 & in options Options Six (6), Five Years MATTHEWS RETAIL ADVISORS | 7 Representative Photo TENANT OVERVIEW 8 | Family Dollar - El Paso, TX Property Name Family Dollar Property Type Net Leased Discount Store Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR) Ownership Public Credit Rating (S&P) BB+ Revenue $10.49 B Net Income $285 M No. of Locations ± 8,000 No. of Employees ± 60,000 Headquartered Matthews, North Carolina Website www.familydollar.com Year Founded 1986 TENANT OVERVIEW When it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget. GEOGRAPHIC OUTREACH Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers. STRATEGY Family Dollar offers a compelling mix of merchandise for the whole family. Ranging from an expanded assortment of refrigerated and frozen foods and health and beauty items to home décor and seasonal items, Family Dollar offers the lowest possible price, the name brand and quality private-brand merchandise customers need and use every day. MATTHEWS RETAIL ADVISORS | 9 Representative Photo PROPERTY OVERVIEW 10 | Family Dollar - El Paso, TX The Offering Property Name Family Dollar 7365 Alameda Ave Property Address El Paso, TX 79915 Assessor’s Parcel Number H956-999-0010-0100 Parcel Map Site Description Number of Stories One Year Built 2016 Gross Leasable Area (GLA) ± 8,320 SF Lot Size ± 1.11 Acres (48,351 SF) Type of Ownership Fee Simple Parking ± 30 Surface Spaces Parking Ratio 3.61 : 1,000 SF Landscaping Professional N Topography Generally Level Construction Foundation Concrete Alameda Ave ± 15,000 ADT Framing Steel Exterior Block / Metal Parking Surface Asphalt Roof Slightly Pitched MATTHEWS RETAIL ADVISORS | 11 Tenant Map SUBJECT PROPERTY 12 | Family Dollar - El Paso, TX Regional Map SUBJECT PROPERTY MATTHEWS RETAIL ADVISORS | 13 AREA OVERVIEW 14 | Family Dollar - El Paso, TX El Paso, TX El Paso is situated in the far western corner of the US state of Texas. El Paso stands on the Rio Grande river across the Mexico-United States Border from Ciudad Juarez, the largest city in the Mexican state of Chihuahua. The two Demographics cities along with Las Cruces in the neighboring state of New Mexico, form a combined international metropolitan area sometimes referred to as the Paso Population 1 Mile 3 Miles 5 Miles del Norte region. The region of over 2.7 million people constitutes the largest 2022 Projection 11,003 85,790 210,230 bilingual and binational work force in the Western Hemisphere. 2017 Estimate 10,898 84,862 206,417 2010 Census 11,281 87,579 210,154 The city is the headquarters of one Fortune 500 and three publicly traded 2000 Census 12,317 92,112 214,626 companies, as well as home to the Medical Center of the Americas., the only Growth 2017 - 2022 0.96% 1.09% 1.85% medical research and care provider complex in West Texas and Southern New Mexico, and the University of Texas at El Paso, the city’s primary university. The Households 1 Miles 3 Miles 5 Miles city hosts the annual Sun Bowl college football post-season game, the second 2022 Projection 3,795 31,272 75,385 oldest bowl game in the country. 2017 Estimate 3,697 30,420 72,891 2010 Census 3,660 30,096 71,396 El Paso has a strong federal and military presence. William Beaumont Army Medical Center, Biggs Army Airfield, and Fort Bliss call the city home. Fort 2000 Census 3,706 29,450 68,052 Bliss is one of the largest military complexes of the United States Army and Growth 2017 - 2022 2.65% 2.80% 3.42% the largest training area in the United States. Also headquartered in El Paso Growth 2010 - 2017 1.01% 1.07% 2.10% are the DEA domestic field division 7, El Paso Intelligence Center, Joint Task Income 1 Miles 3 Miles 5 Miles Force North, U.S. Border Patrol El Paso Sector, and U.S. Border Patrol Special 2016 Est. Average $36,834 $44,873 $48,041 Operations Group (SOG). Household Income There is plenty to see and do in the City of El Paso. Experience walking tours of Downtown to get a taste of history that spans 400 years, shopping, outdoor concerts at the Chamizal National Memorial, museums of every kind, the Zoo, and nature hikes through four Texas State Parks. El Paso has been ranked the safest large city in the U.S. for four consecutive years and ranked in the top three since 1997. MATTHEWS RETAIL ADVISORS | 15 Economy El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in 2011. Over the past 15 years the city has become a significant location for American-based call centers. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum, metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego. Tourism is another major industry in El Paso, bringing in $1.5 billion-a-year and over 2.3 million visitors annually due to the city’s sunny weather, natural beauty, rich cultural history and many outdoor attractions. Education El Paso is home to the University of Texas at El Paso, the largest public university in the region. UTEP was recently ranked as the 7th best university in Washington Monthly’s 2013 National University Rankings, just behind Stanford and ahead of Harvard. Also, the university’s School of Engineering is the nation’s top producer of Hispanic engineers with M.S. and Ph.D. degrees. El Paso is also home to Texas Tech University Health Sciences Center at El Paso, Paul L. Foster School of Medicine, Texas Tech College of Architecture at El Paso, Brightwood College, Park University, Webster University and the University of Phoenix. Also due to its proximity, many El Paso students attend New Mexico State University where the school offers in-state tuition to El Paso County residents.