Dollar Tree Recently Exercised Option – Proven Location – Corporate Guarantee
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DOLLAR TREE RECENTLY EXERCISED OPTION – PROVEN LOCATION – CORPORATE GUARANTEE ARVIN, CA Overview DOLLAR TREE 904 BEAR MOUNTAIN BLVD, ARVIN, CA 93203 $1,328,000 7.00% PRICE CAP LEASABLE SF LAND AREA LEASE TYPE 9,000 SF 1.34 Acres NN (See page 9) LEASE EXPIRATION PARKING NOI 7/31/2024 Ample & $92,962 Reciprocal Located within the Bear Mountain Retail Center – Co-tenants include DaVita and AutoZone Investment grade tenant with an S&P BBB- / $22.8 B in 2017 Revenue Recently exercised first option signifying strong store sales along with limited market area competition Discount model provides security in “Amazon Era” of online shopping Located along the main retail corridor with a dynamic tenant mix This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. and limited competition 2 Investment Highlights Contact the THE OFFERING is an investment grade (S&P BBB-) rated Dollar Tree with a 10-year team operating history at this location. Dollar Tree recently exercised their first 5-year renewal option demonstrating strong store sales and profitability at this location. The lease provides for two additional 5-year options with $.50 per square foot rental escalations RICK SANNER at the onset of each. [email protected] PH: 415.274.2709 THE PROPERTY is located within Bear Mountain Retail Center which boasts an CA DRE# 01792433 exceptional, diverse tenant roster of everyday needs, service and e-commerce resistant tenants. Some of the surrounding retail includes Vallarta Supermarkets, AutoZone, CVS, McDonald's, and DaVita, among others. The subject property is located 10 miles east of Freeway 99 on State Highway 223 in Kern County approximately 15 miles southeast of Bakersfield and 86 miles northwest of Los Angeles. DOLLAR TREE is an experience driven retailer, offering every item at one dollar or less, and has thousands of stores across all 48 contiguous states. A Fortune 200 Company, Dollar Tree has served North America for more than 30 years. Dollar Tree has experienced continued success due to the financial strength and the proven profitability of their business model as one of the nation’s top dollar concepts with more than 15,000 stores and 176,000 associates. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any DOLLAR TREE IS THE WORLD’S LEADING inaccuracies. OPERATOR OF $1 PRICE POINT VARIETY STORES 3 Aerial 223 SCHOOL ARVIN POLICE DEPT SYCAMORE ROAD SYCAMORE SCHOOL BEAR MOUNTAIN BOULEVARD BEAR MOUNTAIN ELEMENTARY SCHOOL 3,900 VPD ACADEMY CITY OF ARVIN CITY OF MEYER STREET ARVIN CITY OF CAMPUS DRIVE ARVIN 5,900 VPD MIDDLE SCHOOL ELEMENTARY SCHOOL TEJON HIGHWAY BAKERSFIELD 3,825 (21 MILES) VPD 12,000 VPD SYCAMORE ROAD SYCAMORE BEAR MOUNTAIN BOULEVARD BEAR MOUNTAIN This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 223 4 Retail Aerial 5,900 VPD CHINA GRADE LOOP N CHESTER AVENUE 12,000 VPD This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5 Submarket Overview RETAILERS IN CLOSE PROXIMITY INCLUDE: Vallarta Supermarkets McDonald's Taco Bell AutoZone USPS Dollar General DaVita Dialysis CVS 7-Eleven O'Reilly Auto Part Little Caesars Pizza ARCO T-Mobile Subway NAPA Auto Parts Bank of America Burger King Chevron This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. LARMONT BUSINESS SUMMARY TOTAL 1-MILE 3-MILES 5-MILES Residential 14,724 22,079 23,765 Population Businesses 171 214 271 ARVIN Employees 2,714 4,359 5,923 BEAR VALLEY SPRINGS KEY 1-MILE 3-MILES 6 5-MILES Income & Expense PRICE $1,328,000 Capitalization Rate: 7.00% Total Rentable Area (SF) 9,000 Lot Size 1.34 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $10.75 $96,750 CAM Reimbursement $0.83 $7,468 Insurance Reimbursement $0.38 $3,395 Tax Reimbursement $1.44 $12,954 Fire & Alarm Reimbursement $0.22 $1,948 EFFECTIVE GROSS INCOME $122,515 ACTUAL EXPENSES PER SQUARE FOOT CAM $1.00 ($8,963) Insurance $0.43 ($3,828) Tax $1.44 ($12,954.14) Fire & Alarm $0.22 ($1,948.17) Management Fee $0.21 ($1,860.25) TOTAL OPERATING EXPENSES ($29,553) EQUALS NET OPERATING INCOME $92,962 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. TERM RENT RENT RENT RENT/FT RENT/FT Dollar Tree 9,000 08/26/09 07/31/19 $7,500 $90,000 $0.83 $10.00 Option 1 08/01/19 07/31/24 $96,750 $8,063 $96,750 $0.90 $10.75 Option 2 08/01/24 07/31/29 $8,438 $101,250 $0.94 $11.25 Option 3 08/01/29 07/31/34 $8,813 $105,750 $0.98 $11.75 TOTALS: 9,000 $96,750 $8,063 $96,750 $0.90 $10.75 1 - As of December 31st, 2018 Dollar Tree has elected to exercise their first option. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8 I Lease Abstract EXPENSES TENANT’S OBLIGATIONS Tenant must maintain HVAC and signage. TAXES Tenant shall pay for all real property taxes PREMISE assessed against parcel. & TERM LANDLORD’S OBLIGATIONS Landlord shall keep the foundations, roof, floor TENANT Dollar Tree slab, and structural portion of the outer walls of BUILDING SF 9,000 SF the Premises in good repair. LEASE TYPE NN INSURANCE TERM 10 Years Landlord, at Landlord's expense, shall carry OPTIONS Three 5-year Options general commercial liability insurance covering the Shopping Center and Common Areas with a minimum limit of $1,000,000 for any casualty resulting in bodily injury, death, or property damage for each occurrence and a minimum limit of $2,000,000 general aggregate. RENT CAM Tenant pays pro rata share of 23.23%. BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT LEASE ASSIGNMENT AND SUBLEASE 08/26/09 - 07/31/19 $7,500 $90,000 Requires written consent of Landlord. PROVISIONS EARLY TERMINATION None. OPTION RENTS RIGHT TO FIRST OFFER/REFUSAL DATE RANGE MONTHLY RENT ANNUAL RENT None. #1. 08/01/19 - 07/31/24 $8,063 $96,750 #2. 08/01/24 - 07/31/29 $8,438 $101,250 ESTOPPELS #3. 08/01/29 - 07/31/34 $8,813 $105,750 Tenant shall provide estoppel certificates upon not less than twenty (20) days written notice from landlord. CO-TENANCY This information has been secured from sources we believe to be reliable but we make no representations or None. warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears 9 all risk for any inaccuracies. Site Plan 9,000 1.34 RENTABLE SF ACRES HIGH SCHOOL 2,900 VPD CAMPUS DRIVE CAMPUS NOT A PART NOT A PART 2,700 VPD N WALNUT STREET 12,000 VPD BEAR MOUNTAIN 223 BEAR MOUNTAIN BOULEVARD BOULEVARD 223 BEAR MOUNTAIN BOULEVARD This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10 Tenant Overview Dollar Tree, Inc. is the world’s leading operator of $1 price point variety stores. The company also operates more than 8,200 stores under the Family Dollar banner, which provides customers with a broad selection of competitively-priced merchandise in convenient neighborhood store locations. Overall, Dollar Tree Inc. operates more than 15,000 stores across the 48 contiguous states and five Canadian provinces, supported by a coast-to-coast logistics network and more than 176,000 associates. A Fortune 200 company, Dollar Tree has served North America for more than thirty years. In 2018, Dollar Tree Inc’s net sales reached $22.8 Billion. The company plans to open 350 new Dollar Tree stores and 200 new Family Dollar stores in 2019. LOCATIONS IN 48 STATES, AND 5 15,000+ CANADIAN PROVINCES DOLLAR TREE INC. $22.8 2018 NET SALES Billion S&P RATING This information has been secured from sources we believe BBB- to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 11 In the News ARE DOLLAR STORES THE TRUE RETAIL DISRUPTERS? July 22, 2018 (Forbes) Lost in all the news this past week about Amazon’s massive Prime Day results, Walmart WMT -0.24%’s multi-pronged effort to stay competitive and assorted Chinese e-commerce shenanigans was perhaps the single most important statement about the current state of American retailing.