Family Dollar Willimantic, CT Offering Memorandum

Transcription

1 Family EXCLUSIVE Dollar LISTING Willimantic, CT Actual Site ANDREW FALLON EXECUTIVE MANAGING DIRECTOR (703) PATRICK NUTT MANAGING PARTNER (954) BROKER OF RECORD STANLEY B. WYRWICZ CALKAIN.COM 1

2 Financial Summary 165 Main St Willimantic, CT Asking Price $2,095,000 Cap Rate 6.15% Net Operating Income (NOI) $128,896 Rent/Month $10, Rent/SF $15.49 Rentable Square Feet 8,320+/- SF Tenant Name Family Dollar Website Rent Schedule Term Increases Annual Rent Monthly Rent Years $128,896 $10, Years % $141,786 $11, Years (Option 1) 10% $155,964 $12, Years (Option 2) 10% $171,561 $14, Years (Option 3) 10% $188,717 $15, Years (Option 4) 10% $207,588 $17, Years (Option 5) 10% $228,347 $19, Years (Option 6) 10% $251,182 $20, Credit Rating Stock Symbol Guarantor Ownership Type Lease Type Landlord Responsibilities S&P: BB+ NYSE: DLTR Corporate Fee Simple NNN None Store Opened February 9, 2017 Lease Term Remaining 15+ Years Rent Commencement February 9, 2017 Lease Expiration September 30, 2032 Increases 10% in Year 11 Options Six (6), Five (5) Year 2

3 Investment Highlights Lease years remaining on an absolute NNN lease with 10% rent increases in the primary lease term, commencing October 1, Location - Main street location in university town. Main Street (Route 66) is the main local east-west roads in the Willimantic-Windham area. Currently the retail trade in the immediate vicinity is limited to gas stations with convenience stores, auto parts shops and other small retail. The location has excellent visibility and access for local residents to shop at, as well as people passing on Main Street. This location is the closest and most convenient location to a number of apartment projects including the Windham Heights Apartments which are 350 units of Section 8 housing, Ivy Gardens with 100 units and others. Construction New construction, store opened in February of Upgraded front and side facade with additional windows and awnings to enhance store appearance off Main Street. Competition - Limited discount competition within the immediate trade area. Currently the majority of the retail trade in Willimantic is on the west side of the market. Included there is a Dollar Tree and an existing Family Dollar, store#3559. That Family Dollar is a relocation candidate due to a small facility and limited width, still the store performs well ($1.2M) given its restrictions. There is a Wal-Mart located about two and one quarter miles to the east. It is in a highway location and farther away from the immediate population that this store will serve. There are no national chain pharmacies in this immediate trade area. The nearest Dollar General store is more than eight miles away in Mansfield, CT. Demographics - The population counts exceed 27,500 within a 3 mile radius. 3

4 Dollar Tree Completes Acquisition of Family Dollar Creates combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian provinces CHESAPEAKE, VA July 6, 2015 Dollar Tree, Inc. (NASDAQ: DLTR), North America s leading operator of discount variety stores selling everything for $1 or less, announced today that it has completed the acquisition of Family Dollar Stores, Inc., a leading national discount retailer offering name brands and quality, private brand merchandise. About Family Dollar Tenant Overview 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. About Dollar Tree Dollar Tree, Inc. is an American chain of discount variety stores that sells items for $1 or less. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia, and operates 13,600 stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of ten distribution centers. The company operates one-dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates a multi-price-point variety chain under the name Deals. Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a variety of products including national, regional, and private-label brands. Departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, automotive, electronics, pet supplies, and books. Most Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods. Tenant Snapshot # Locations 13,600+ Stock Symbol NYSE: DLTR Credit Rating S&P: BB+ Market Cap 22.44B 4

5 Distance To: Manchester, CT Hartford, CT Providence, RI Boston, MA New York, NY 20 miles 30 miles 47 miles 91 miles 142 miles Family Dollar Willimantic, CT Location Overview Hartford, CT 84 Manchester, CT Subject Site 395 Willimantic, CT Providence, RI Boston, MA 95 New York, NY 5

6 165 Main St Willimantic, CT Colonial Townhouse Apartments Windham High School Windham Heights 350 Apartments Subject Site Bridge Street Plaza Shopping Center Natchaug Elementary School Main Street Historic District Main St 13,100 VPD Windham Recreation Park Briarwood Apartments 6

7 Site Plan 7

8 Demographics Radius 1 Mile 3 Miles 5 Miles Population 2016 Population 11,706 27,500 36, Population 11,734 27,670 36, Annual Rate 0.25% 0.40% 0.29% Annual Rate 0.05% 0.14% 0.09% 2016 Male Population 49.7% 48.7% 49.0% 2016 Female Population 50.3% 51.3% 51.0% 2016 Median Age Households 2016 Total Households 4,381 9,721 13, Total Households 4,385 9,784 13, Annual Rate 0.15% 0.32% 0.23% Annual Rate 0.02% 0.13% 0.08% 2016 Average Household Size Median Household Income 2016 Median Household Income $38,317 $42,547 $50, Median Household Income $38,442 $41,307 $47, Annual Rate 0.07% -0.59% -1.18% Average Household Income 2016 Average Household Income $55,064 $58,788 $67, Average Household Income $57,215 $61,086 $71, Annual Rate 0.77% 0.77% 0.98% Per Capita Income 2016 Per Capita Income $21,508 $23,623 $26, Per Capita Income $22,250 $24,407 $27, Annual Rate 0.68% 0.66% 0.89% 8

9 Market Overview Willimantic, CT Willimantic is a census-designated place and former city located in the town of Windham in Windham County, Connecticut. The population was at 17,737 at the 2010 census. It is home to Eastern Connecticut State University, as well as the Windham Textile and History Museum. The city was incorporated in 1893 as a section of the town of Windham. The city government was dissolved in 1983 with the area reverting back to the town. It is also the birthplace of U.S Senator Christopher Dodd of Connecticut. Willimantic is an Algonquian term for land of the swift running water. Prior to 1821, the village was known as Willimantic Falls, home to about twenty families and a single school district. In 1822, Charles Lee erected a factory on Main Street made of stone quarried from the Willimantic River. Although small shops and manufacturers had been built on the banks of the Willimantic before, this was the beginning of industrialized Willimantic. In 1825, the three Jillson brothers built a factory along the Willimantic, and in 1827, they built a second building. By 1828, there were six cotton factories in Willimantic, all built within a seven year span. Willimantic became known as Thread City because American Thread Company had a mill on the banks of the Willimantic River, and was at one time the largest employer in the state as well as one of the largest producers of thread in the world. Its factory was the first in the world to use electric lighting. In 1833, Willimantic was a borough of Windham; in 1893, it would become a city. From the end of the Civil War to the outbreak of World War II, Willimantic was a center for the production of silk and cotton thread. Immigrants from Europe arrived to work in the mills -- Irish, Italians, Polish, Germans and French Canadians. Later, Estonian, Ukraine, Latvian, Lithuanian, and Puerto Rican immigrants moved to the town in search of mill jobs. 9

10 About Calkain Who Are We? We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management. We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry. Our History Like most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in $11.5 Billion in Closed Transactions With the growth in staff, seasoned professionals have been attracted to Calkain s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment. Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America s Net Lease Company. Its countless accolades received from the world s leading business publications, including Forbes, Fortune and the New York Times have confirmed that Calkain is a true leader in triple net lease investing services. Client Testimonial USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them. - Jack Genende, Partner U.S. Realty Advisors, LLC. (USRA) $350 Million in Active Listings ANDREW FALLON EXECUTIVE MANAGING DIRECTOR (703) afallon@calkain.com PATRICK NUTT MANAGING PARTNER (954) patrick.nutt@calkain.com CALKAIN.COM 10

11 Contact Us Corporate Headquarters Washington, DC Worldgate Drive Suite 150 Herndon, VA T: (703) F: (703) Tampa 400 N. Tampa Street Suite 2660 Tampa, FL T: (813) F: (813) South Florida 300 S. Pine Island Road Suite 300 Fort Lauderdale, FL T: (954) Atlanta 111 Village Parkway, Building 2 Suite 202 Marietta, GA T: (404) Boston 101 Federal Street Suite 1900 Boston, MA T: (617) CALKAIN.COM DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.