Family Dollar Tree

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Family Dollar Tree Offering Memorandum Family Dollar Tree 1960 Veterans Memorial Boulevard, Eupora, MS 39744 Representative Photo Offered exclusively by Confidentiality & Restricted Use Agreement Point of Contact Jim Gibson This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), Regional Director and Partner solely for your consideration of the opportunity to acquire the commercial property described [email protected] herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment In Association with contract. This COM contains descriptive materials, financial information and other data compiled by Jeff McKinney SJC for the convenience of parties who may be interested in the Property. Such information is not MS Broker #B-15504 all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents Stan Johnson Company and principals, from and with respect to any and all claims and liabilities arising from or related 800 Gessner Rd. | Suite 950 to the receipt or use of this COM and/or any other Information concerning the Property; (5) you Houston, TX 77024 will not provide this COM or any of the Information to any other party unless you first obtain such P: +1 832.485.7301 party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be stanjohnsonco.com an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Executive Summary Representative Photo Property Summary Offering Price: $1,492,887 Memphis Cap Rate: 6.65% Stan Johnson Company is pleased to offer for sale to qualified investors, the opportunity to purchase a fee simple interest ins the Family Dollar Tree property located at 1960 Veterans Memorial Boulevard, Eupora, MS 39744 (the “Property”). Family Dollar Tree is operating under a NN lease with little landlord Representative Photo responsibilities, allowing investors the opportunity to acquire a passive asset with 10 years of base term remaining. The lease features rent increases in each of the 3, 5-year option periods. The lease is fully guaranteed Eupora by Family Dollar’s parent company: Dollar Birmingham Tree, Inc., a publicly traded entity. The Property is located in the city of Eupora, a town located Mississippi. The Property benefits from a combined traffic count of ±13,000 VPD. Family Dollar, a wholly owned subsidiary of Dollar Tree, Inc., is a market leading operator in the discount retail industry. Despite the rise of online shopping and the struggles of traditional retail, the Dollar and Variety industry has flourished and expanded. Analysts have estimated that the Dollar and Variety store industry revenues have Jackson increased at a rate of 4.0% over the past 5 years, and have reached over $827 million in net income. Family Dollar Tree | Eupora, MS 4 Investment Highlights Top Ranked National Tenant Dollar Tree is the largest and most successful single-price-point retailer in North America Strong Corporate Guarantee The lease is backed by Dollar Tree, Inc. (NASDAQ: DLTR), which has reported total annual sales exceeding $23 billion and carries investment grade credit ratings of BBB/Stable and Baa2/Stable from S&P and Moody’s, respectively Essential Retailer | Recession Proof Customers rely on Dollar Tree and Family Dollar as an essential retailer for their shopping needs Brand New Lease The lease features a brand new 10 year base term with 3, Five-Year options to follow with rent increasing $0.50/sf at each option New Concept Family Dollar | Dollar Tree The new combination store of these two tenants features to best of Dollar's Trees $1 seasonal items along with Family Dollar's food and essentials for more than $1 Superior Visibility The Property is strategically positioned directly off of Veterans Memorial Blvd with excellent visibility and easy access from all directions Representative Photos Family Dollar Tree | Eupora, MS 5 About The Property Representative Photo Lease Abstract Address 1960 Veterans Memorial Boulevard Rent Schedule Rent City Eupora Term (Years) Estimated Dates Annual Monthly PSF Increases Base 9/3/2021 9/2/2031 $99,250 $8,271 $6.35 - State MS (1-10) Option 1 9/3/2031 9/2/2036 $107,066 $8,922 $6.85 $0.50 PSF Zip 39744 (11-15) Option 2 9/3/2036 9/2/2041 $114,881 $9,573 $7.35 $0.50 PSF Year Built/Renovated 1972/2021 (16-20) Option 3 9/3/2041 9/2/2046 $122,696 $10,225 $7.85 $0.50 PSF RBA 15,630 (21-25) Land Acres 2.07 Family Dollar Stores of Mississippi, Inc Tenant Family Dollar Stores of Alabama, LLC Tenant DBA Family Dollar Tree Guarantor Dollar Tree, Inc Credit BBB Initial Term 10 Estimated Rent Commencement 9/3/2021 Estimated Lease Expiration 9/2/2031 LTR 10 Renewal Options 3, 5yr Current Rent $99,250 Increases $0.50 PSF at each option Lease Type NN Parking 50+ Spaces Representative Photo Family Dollar Tree | Eupora, MS 7 Tenant Overview Representative Photo Tenant Overview Dollar Tree, Inc. (NASDAQ: DLTR), a Fortune 200 company, is a leading Company Profile operator of discount variety stores that has served North America for more than 30 years. The Company is headquartered in Chesapeake, Company Family Dollar Virginia and operates 15,000+ stores across the 48 contiguous states and Parent Company Dollar Tree, Inc. five Canadian provinces, supported by a coast-to-coast logistics network Entity Type Public and more than 193,000 associates. Stores operate under the brands of Stock Symbol DLTR Dollar Tree, Family Dollar, and Dollar Tree Canada. Dollar Tree, Inc. has a Exchange NASDAQ BBB/Stable credit rating with Standard & Poor’s and Baa2/Stable with Credit Rating BBB/Stable (S&P) Moody's. Business Use Discount Retail Dollar Tree was founded in 1986 and is the nation’s leading operator Total Locations 15,288 of discount retail stores. The company sells a variety of merchandise FY 19 Net Sales $23.6B including candy, food, health and beauty items, paper products, frozen YTD Net Income (02/19) $827M and refrigerated food, toys, housewares, stationery, party goods, greeting Founded 1991 cards, and seasonal goods, including holiday themed items. The average Headquartered Chesapeake, VA Dollar Tree location carries approximately 7,200 items in-store at any Website www.familydollar.com, www.dollartree.com given time, allowing for a wide array of different products at each location. Source www.familydollar.com, www.dollartree.com Dollar Tree primarily serves low to middle income customers in a variety of markets including small towns, mid-sized cities, and metropolitan areas. In July 2015, Dollar Tree, Inc. completed their acquisition of Family Dollar Stores, Inc., making it the largest discount retailer by store count in North America. This strategic acquisition allowed the company to achieve meaningful synergies, with an estimated $300 million annual benefit. The company continues to operate both the Family Dollar and Dollar Tree banners, with Dollar Tree selling goods at $1.00 or less, and Family Dollar selling the majority of their goods for $10.00 or less. This "new concept" Family Dollar | Dollar Tree features elements of the Dollar Tree and Family Dollar outlets and sell a mix of Dollar Tree's typical $1 seasonal items plus Family Dollar's food and essentials for more than $1. Source: Dollar Tree, Inc. | 2019 Annual Report Representative Photo Family Dollar Tree | Eupora, MS 9 Location Overview Eupora, MS Location Overview Eupora Eupora, MS is a town of 2,327 people and is the largest town in Webster Memphis County.
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