FAMILY DOLLAR 601 N 2ND AVE AJO, AZ Paul Borgesen III Advisor

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1 601 N 2ND AVE AJO, AZ Paul Borgesen III Advisor paul.borgesen@svn.com Jonathan Eckerd Associate Advisor jonathan.eckerd@svn.com Justin Horwitz Senior Advisor justin.horwitz@svn.com SVN Desert Commercial Advisors 5343 N. 16th Street, Suite 100, Phoenix, AZ OFFERING MEMORANDUM

2 Executive Summary OFFERING SUMMARY Sale Price: $1,046,000 Price/SF: $104 Cap Rate: 6.5% NOI: $68,005 Lot Size: 1.52 Acres Year Built: 1986 Building Size: 10,044 Renovated: 2004 Zoning: Market: Submarket: CB-1, County Arizona Ajo PROPERTY OVERVIEWVIEW The subject offering consists of a Triple Net r investment Opportunity with limited Landlord responsibilities. The building is ±10,044 SF building on ±1.52 AC. r has shown a commitment to this location by investing over $100K to update the building interior and exterior in 2011 and extending the initial 10 year term an additional 3 years. r has recently executed their first option providing a new owner just over 5 years of income with an S&P BB+ rated tenant. Roof recently repaired in 2014 with 10 year warranty. PROPERTY HIGHLIGHTS Stable NNN Tenant - Minimal Landlord Responsibilities Corporate Guaranteed by r Stores, Inc. S&P Rating - BB+ Over 6,000 Stores in U.S. Outstanding 4.3% Rent to Sales Ratio for 2016 Increasing Annual Gross Sales Potential for Additional Income Based off Store Sales Below Market Rents for r Ideal Demographic Sub Market for Tenant Recession Resistant Concept 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 2

3 r Tenant Profile COMPANY OVERVIEWVIEW Parent Company Trade Name: Property Name Property Type Ownership: Credit Rating (S&P) Revenue: Net Income: Dollar Tree, Inc. (NASDAQ: DLTR) r Net Leased Discount Store Public BB+ $10.49 B $285 M Headquarters: 1032 Monroe Road, Matthews. NC Website: TENANT HIGHLIGHTS r serves families in more than 8,000 neighborhoods in 46 States Nations 2nd largest dollar store July 2015 acquisition by Dollar Tree, Inc r & Dollar Tree net sales were $20.7 billion in 2016 ABOUT r is the nation s #2 dollar store, which targets lower income demographics. It operates more than 8,000 stores in some 46 states and the District of Columbia. r operates nine distribution centers to keep product stock in their stores. These warehouses feature over 900,000 square feet of room and over nine miles of conveyor. Consumables (food, health and beauty aids, and household items) account for about two-thirds of sales; the stores also sell apparel, shoes, and linens. r emphasizes small-format neighborhood stores near its low- and middle-income customers in rural and urban areas. Most merchandise (national brands, r private labels, and unbranded items) costs less than $10. r, founded in 1959 by the father of CEO Howard Levine, is reviewing an unsolicited takeover offer from Trian Fund Management, run by investor Nelson Peltz. 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 3

4 r Rent Roll TENANT NAME UNIT SIZE (SF) LEASE START LEASE END ANNUALAL PER SF/YR Current 10,044 8/1/ /31/2017 $62,310 $6.20 1/1/ /31/2022 $68,005 $6.77 Option 2 1/1/ /31/2027 $81,070 $8.07 Option 3 1/1/ /31/2032 $89,177 $8.88 Option 4 1/1/ /31/2037 $98,095 $9.77 Totals/Averages 10, $79, $ N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 4

5 Additional Photos 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 5

6 Location Maps 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 6

7 Demographics Map POPULATION 1 MILE 10 MILES 30 MILES Total population ,850 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 1 MILE 10 MILES 30 MILES Total households ,686 # of persons per HH Average HH income $44,852 $40,906 $39,541 Average house value $120,929 $114,375 $114,163 * Demographic data derived from 2010 US Census 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 7

8 Sale Comps Map SUBJECT PROPERTY 601 N 2nd Ave Ajo, AZ Los Angeles Ave Wellton, AZ W Ajo Way Tucson, AZ W Rex Allen Dr Wilcox, AZ S Dobson Rd Mesa, AZ N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 8

9 Sale Comps Summary SUBJE SUBJECT CT PROPER PROPERT TY PRICE BLDG SF PRICE/SF CAP /SF /SF 601 N 2nd Ave Ajo, AZ $1,046,000 10,044 SF $ % $6.77 SALE C COMPS OMPS PRICE BLDG SF PRICE/SF CAP /SF /SF CL CLOSE OSE Los Angeles Ave Wellton, AZ $1,762,500 9,180 SF $ % $ /12/ W Ajo Way Tucson, AZ $2,372,300 9,105 SF $ % $ /29/ W Rex Allen Dr Wilcox, AZ $1,362,587 8,359 SF $ % $ /12/ S Dobson Rd Mesa, AZ $2,540,580 9,180 SF $ % $ /25/2016 PRICE BLDG SF PRICE/SF CAP /SF /SF CL CLOSE OSE $2, $2, ,492,492 8, 8, SF $22 $ % 96% $13. $ Totals/A tals/av ver erages ages 601 N 2ND AVE, AJO, AZ SVN Desert Commercial Advisors Page 9