Offering Memorandum. Representative Photo. Dollar Tree. 140 Curtis Liles Court Sylacauga (Birmingham), Alabama 35151

Transcription

1 Offering Memorandum Representative Photo Dollar Tree 140 Curtis Liles Court Sylacauga (Birmingham), Alabama 35151

2 Confidentiality and Restricted Use Agreement This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described 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 contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not 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 The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time.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 and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such 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 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. Offered Exclusively by Marc Peeler Associate Director mpeeler@stanjohnsonco.com Jim Gibson Regional Director jgibson@stanjohnsonco.com Todd Moore Director tmoore@stanjohnsonco.com Marshall Thompson Associate mthompson@stanjohnsonco.com In Association With: Ryan Butler AL Broker Lic. # Stan Johnson Company Richmond Avenue Suite 740 Houston, Texas P: stanjohnsonco.com

3 The Offering Stan Johnson Company is pleased to present to qualified investors a 100% fee-simple Dollar Tree store located in Sylacauga (Birmingham MSA), Alabama, a growing community with a strong local culture and a diversified business climate. The Subject Property is 100% backed by a full guaranty from Dollar Tree, Inc. (NASDAQ: DLTR). The offering consists of a ± 9,997 SF build-to-suit building, completed late Dollar Tree Inc. will be operating under a brand new Ten (10) year base lease term with Three (3), Five (5) year options with rental increases at the start of each option period. The NN lease features landlord responsibilities limited to roof, structure, floor, slab, foundation and general commercial aggregate investment at $2 million. The Subject Property will benefit from both limited dollar store competition in the area and ideal dollar store demographics. The 2016 average household income is $47,626 within a 5-mile radius of the Subject Property. Located within a booming retail market, the Subject Property is in close proximity to national retailers such as Walmart Supercenter, The Home Depot, Hibbett Sports, Subway, among others, in addition to a brand new retail shopping center in close proximity, anchored by Hobby Lobby and TJ Maxx. The brand new, build-to-suit location will greatly benefit from high visibility and ease of access situated along US Highway 280 (16,607 VPD). Purchase Price: $1,774,281 Cap Rate: 6.75% Representative Photos Offering Memorandum Dollar Tree Sylacauga, AL 3

4 Tenant Lease Trade Area Dollar Tree, Inc. (NASDAQ: DLTR, Ratings: S&P: BB, Moody s: Ba2) is recognized as the Number 1 Value Retailer in the dollar store space. Its acquisition of Family Dollar in 2015 allowed the company to expand its offerings beyond single-price stores, while maintaining the Everything s $1 value proposition in the flagship Dollar Tree Stores. The Subject Property will operate under a brand new ten (10) year term with three (3), five (5) year options with rental increases in the beginning of each option. Nearby national retailers include Walmart Supercenter, The Home Depot, Hibbett Sports, Subway, Region's Bank, Popeye's, Zaxby's and many more. Demographics Best-in-Class Operator Brand New Ten (10) Year Lease Excellent Retail Trade Area Ideal Demographics Brand New Build-to-Suit Store This location opened earlier this year. High Visibility and Accessibility The Subject Property will greatly benefit from high visibility and ease of access along US Highway 280 (16,607 VPD). The Subject Property will benefit from both limited dollar store competition in the area and ideal dollar store demographics. The 2016 average household income is $47,626 within a 5-mile radius of the Subject Property. Offering Memorandum Dollar Tree Sylacauga, AL 4

5 Lease Abstract Rent Schedule 140 Curtis Liles Court Sylacauga, Alabama Years Annual Rent RPSF Tenant/Guarantor: Dollar Tree 1-10 $119,764 $12.00 Building Size: ± 9,997 SF First Option Period (11-15) $124,712 $12.50 Acreage: ± 1.86 Acres Second Option Period (16-20) $129,701 $13.00 Year Constructed: 2017 Third Option Period (21-25) $134,689 $13.50 Opening Date: January 12, 2017 Delivery Date: October 31, 2016 Base Lease Term: Ten (10) Years Annual Base Rent: $119,764 Base Rent PSF: $12.00 Rent Increases: See Rent Schedule Renewal Options: Three (3), Five (5) Year Options Landlord Responsibilities: NN Ownership Interest: Fee Simple Representative Location Offering Memorandum Dollar Tree Sylacauga, AL 5

6 Tenant Overview Headquartered in Chesapeake, Virginia, Dollar Tree (NASDAQ: DLTR) operates more than 14,000 Dollar Tree, Deal$, Dollar Bills, and Family Dollar discount stores in 48 US states and the District of Columbia, and in five provinces in Canada. At Dollar Tree shops most goods are priced at $1 or less while Family Dollar merchandise is usually less than $10. The stores are located in high-traffic strip centers and malls often in small towns. Dollar Tree purchased fellow discounter Family Dollar in 2015, bolstering their competitive position against Dollar General. Operations and Strategy bought Family Dollar Stores, the operator of some 8,200 stores in 46 states. Combined, the two chains operate more than 14,000 stores and ring up more than $15 billion in sales annually. Dollar Tree and its rivals have transformed and expanded their businesses over the past decade or so by offering more consumables, including frozen and refrigerated foods, thereby stealing sales from convenience and grocery stores. Indeed, consumables account for 50% of Dollar Tree's annual sales. TENANT PROFILE Company: Dollar Tree Entity Type: Public Stock Symbol: DLTR Exchange: NASDAQ Fortune 500 Rank: 180 (2016) No. of Locations: 14,000+ Total Revenue: $20.7 billion (as of 01/28/17) Net Income: $896 million (as of 01/28/17) Market Cap: $18.03 billion (as of 04/17/17) Founded: 1986 The fast-growing chain has added about 1,500 stores since 2009, both through acquisitions and opening new locations. In 2015 Dollar Tree Headquarters: Website: Chesapeake, VA

7 Location Overview Sylacauga is a city in Talladega County, Alabama with a population of 12,749. The town is known for its fine white marble bedrock that was discovered shortly after settlers moved into the area and has been quarried ever since. Recently, Sylacauga was named as one of the "100 Best Communities for Young People" by America's Promise Alliance. Top occupational categories in Sylacauga: Sylacauga Marble Quarry Downtown Sylacauga 22% Manufacturing 20% Educational services and health care 12% Retail Trade Sylacauga supports jobs in the service industry, manufacturing, and retail. Major employers include Blue Bell Creameries, IMERYS, Nemak Alabama, Omya Alabama Inc., Pursell Technologies, Wal-Mart, Home Depot, and Farm Links. More than 140 manufacturers draw employees from the Sylacauga area. Sylacauga Municipal Complex 20,278 Total Population within 5-Mile Radius of Subject Property $47,626 Avg HHI within 5-Mile Radius of Subject Property 8,367 Total Households within 5-Mile Radius of Subject Property ± 3 Miles The Subject Property will benefit from limited competition with one other Dollar Store in the local market Offering Memorandum Dollar Tree Sylacauga, AL 7

8 Site Plan CURTIS LILES CT Offering Memorandum Dollar Tree Sylacauga, AL 8

9 Brand New Retail Shopping Center Adjacent to Subject Property US HI GH W AY 28 0 (1 6, 60 7 VP D)

10 US HIGHWAY 280 (16,607 VPD) Brand New Retail Center (Under Construction) 3 Vacant Retail Spaces 2 Vacant Shop Spaces 3 Vacant Outparcels

11 BB COMER MEMORIAL HIGH SCHOOL ENROLLMENT: 490 Brand New Retail Center (Under Construction) US HIGHWAY 280 (16,607 VPD) 3 Vacant Retail Spaces 2 Vacant Shop Spaces 3 Vacant Outparcels

12 Demographic Profiles Dominant Profiles within 3-Mile Radius Tapestry segmentation (as seen below) provides an accurate, detailed description of America s neighborhoods - U.S. residential areas are divided into 67 distinctive segments based on their socioeconomic and demographic composition - then further classified into LifeMode and Urbanization Groups. The result is a detailed picture of the socioeconomics and demographics as well as attitudes and brand preferences of people in a given area. LifeMode Group: Middle Ground Hardscrabble Road Avg. Household Size: 2.64 Median Age: 31.7 Median HHI: $26,000 8G Hardscrabble Road neighborhoods are in urbanized areas within central cities, with older housing, located chiefly in the Midwest and South. This slightly smaller market is primarily a family market, married couples (with and without children) and single parents. They work mainly in service, manufacturing, and retail trade industries. LifeMode Group: GenXurban Midlife Constants 5E 1 Mile Avg. Household Size: 2.30 Median Age: 45.9 Median HHI: $48,000 Midlife Constants residents are seniors, at or approaching retirement, with below average labor force participation and above average net worth. Although located in predominantly metropolitan areas, they live outside the central cities, in smaller communities. Their lifestyle is more country than urban. They are generous, but not spendthrifts. 3 Miles LifeMode Group: Senior Styles Social Security Set 9F 5 Miles Esri is an international supplier of Geographic Information System (GIS) software, web GIS and geodatabase management applications. The company was founded in 1969 and has 40% of the global GIS market share. Learn more at Avg. Household Size: 1.72 Median Age: 44.2 Median HHI: $16,000 Social Security Set is an older market located in metropolitan cities across the country. With fixed incomes, consumers remain price sensitive. Wages and salary income are still earned by almost half of all households. Rather than eat out, Social Security Set residents prefer to have their meals at home, whether they order takeout or warm up a frozen dinner.

13 Demographics 140 Curtis Liles Court, Sylacauga, AL 0-1 mi. 0-3 mi. 0-5 mi. Population 2016 Population 1,225 12,620 20, Population 1,214 12,631 20,220 Households 2016 Total Households 560 5,284 8, Total Households 557 5,308 8,377 Median Household Income 2016 Median Household Income $30,701 $32,490 $34,131 Average Household Income 2016 Average Household Income $41,131 $45,373 $47,626

14 Offered Exclusively by Marc Peeler Associate Director Jim Gibson Regional Director going beyond Todd Moore Director Marshall Thompson Associate Jaime Patteson Research Analyst In Association With Ryan Butler AL Lic # Stan Johnson Company Richmond Avenue Suite 740 Houston, Texas P: F: stanjohnsonco.com The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.