FAMILY DOLLAR 217 SPRUCE ST, LA JARA, CO 81140 OFFERING MEMORANDUM R E T A I L A D V I S O R S
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Family Dollar located at 217 Spruce St., La Jara, CO 81140 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Advisors
Table of Contents PRICING & FINANCIAL ANALYSIS Investment Overview... 2 Executive Summary...3 Company Overview...4 PROPERTY DESCRIPTION Birds Eye Map... 8 Regional Map... 9 DEMOGRAPHICS City Overview La Jara, CO...12 Demographics Report...13 EXCLUSIVELY LISTED BY: Josh Bishop VP & Director - STNL DIRECT +1.310.919.5823 MOBILE +1.315.730.6228 josh.bishop@matthews.com License No. 01940394 Peter Gonzalez Broker of Record License No. FA100003923
Matthews Retail Advisors
PRICING & FINANCIAL ANALYSIS Pricing & Financial Analysis
INVESTMENT OVERVIEW Josh Bishop and the Matthews Retail Advisors are pleased to exclusively offer for sale the Family Dollar property located in La Jara, CO. Family Dollar has recently extended their lease for an additional 5-years, proving commitment to the location and market. There are currently just under 5-years of base term remaining on the lease before the next extension option. This property benefits from its strategic location on Highway 285, which is the main thoroughfare in town. Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation s largest small-box discount retailer, with over 13,000 locations acorss the country. Investments Highlights Tenant recently exercised their first renewal option; showing commitment to the location and market Strong 9.15% cap rate on a stable investment 5-Years remaining on a NN lease (landlord responsible for roof and structure) Three - Five year extension options with 10% rent increases Larger 9,180 SF building Corporate signature lease Proven location for Family Dollar No competition for a discount retailer in the immediate trade area Family Dollar is now considered the nation s largest small-box discount retailer, with more than 13,000 locations nationwide. P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Family Dollar
PRICING ANALYSIS EXECUTIVE SUMMARY FAMILY DOLLAR 217 SPRUCE ST. LA JARA, CO 81140 List Price...$872,130 CAP Rate - Current... 9.15 % Gross Leasable Area...9,180 SF Lot Size...± 1.00 Acres (43,560 SF) Year Built... 2005 Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Current - 12/31/2020 $6,650.00 $79,800.00 $8.69 9.15% Option 2-12/31/2025 $7,315.00 $87,780.00 $9.56 10.07% Option 3-12/31/2030 $8,046.50 $96,558.00 $10.52 11.07% Option 4-12/31/2035 $8,851.15 $106,213.80 $11.57 12.18% Tenant Summary Tenant Trade Name Family Dollar Stores, Inc. Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof and Structure Landlord Responsible Original Lease Term 10 Years Rent Commencement Date December 2005 Lease Expiration Date 12/31/2020 Term Remaining on Lease ± 5.00 Years Increases 10% In Options Options Three (3) - Five (5) Year Options Family Dollar OFFERING MEMORANDUM Matthews Retail Advisors P. 3
COMPANY OVERVIEW Property Name Family Dollar Property Type Net Leased Discount Store Parent Company Trade Name Dollar Tree. Inc. Ownership Public Revenue $10.49B Net Income $284.5M Stock Symbol DLTR Board NYSE No. of Locations ± 13,000 No. of Employees ± 50,000 Headquartered Matthews, NC Web Site www.familydollar.com Year Founded 1959 Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Its merchandise assortment includes consumables, such as household chemicals, paper products, food products, health and beauty aids, hardware and automotive supplies, pet food and supplies, and tobacco; and home products comprising blankets, sheets, towels, housewares, giftware, and home décor products. The company also provides apparel and accessories consisting of men s and women s clothing products, boys and girls clothing products, infants clothing products, shoes, and ashion accessories; and seasonal and electronic products, such as toys, stationery and school supplies, and seasonal goods, as well as personal electronics, including pre-paid cellular phones and services. As of April 10, 2013, it operated approximately 7,600 stores in 45 states. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Family Dollar
PROPERTY DESCRIPTION PROPERTY DESCRIPTION
P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Family Dollar
PROPERTY PHYSICAL DESCRIPTION THE OFFERING Property Name... Family Dollar Property Address... 217 Spruce St. La Jara, CO 81140 Assessor s Parcel Number...572114316001 SITE DESCRIPTION Number of Stories...One Year Built... 2005 Gross Leasable Area (GLA)...9,180 SF Lot Size...± 1.00 Acres (43,560 SF) Type of Ownership...Fee Simple Parking...± 25 Surface Spaces Parking Ratio... 2.72 : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Exterior... Painted Stucco / Metal Parking Surface...Asphalt Roof...Slightly Pitched Family Dollar OFFERING MEMORANDUM Matthews Retail Advisors P. 7
BIRDS EYE Spruce St CPD: 5,000 P. 8 Matthews Retail Advisors OFFERING MEMORANDUM Family Dollar
PROPERTY REGIONAL DESCRIPTION MAP Family Dollar OFFERING MEMORANDUM Matthews Retail Advisors P. 9
P. Matthews 10 Matthews Retail Advisors Retail Advisors OFFERING MEMORANDUM Family Dollar
DEMOGRAPHICS Demographics
DEMOGRAPHIC ANALYSIS CITY OVERVIEW La Jara, CO La Jara is in the San Luis Valley region of Colorado. U.S. Route 285 passes through La Jara, leading north 14 miles to Alamosa and south 20 miles to the New Mexico border and beyond. La Jara traces its birth to the arrival of the Denver and Rio Grande Railroad in 1880. Located on part of the San Juan Extension between Alamosa and Silverton, the 1911 depot served as a shipping point for area ranchers and farmers. Gradually the automobile and truck replaced the railroad as the primary mode of transportation, and the railroad eventually closed the depot. In 1970, the town acquired the building and transformed it into the town hall. P. 12 Matthews Retail Advisors OFFERING MEMORANDUM Family Dollar
DEMOGRAPHICS ANALYSIS REPORT Population 3-Mile 5-Mile 10-Mile 2021 Projection 1,365 2,896 6,369 2016 Estimate 1,341 2,817 6,198 2010 Census 1,336 2,770 6,108 2000 Census 1,356 2,719 5,987 Growth 2016-2021 1.78% 2.79% 2.75% Growth 2010-2016 0.36% 1.69% 1.47% Growth 2000-2010 -1.47% 1.89% 2.03% Households 2021 Projection 528 1,092 2,393 2016 Estimate 513 1,052 2,305 2010 Census 499 1,013 2,227 2000 Census 471 932 2,055 Growth 2016-2021 3.00% 3.86% 3.80% Growth 2010-2016 2.70% 3.81% 3.50% Growth 2000-2010 6.08% 8.67% 8.36% Income $0 - $15,000 22.08% 21.28% 21.58% $15,000 - $24,999 9.74% 12.12% 11.86% $25,000 - $34,999 10.49% 10.55% 12.43% $35,000 - $49,999 15.80% 13.56% 13.25% $50,000 - $74,999 20.67% 20.01% 19.39% $75,000 - $99,999 10.49% 11.57% 10.50% $100,000 - $124,999 4.94% 5.60% 5.12% $125,000 - $149,999 3.73% 3.61% 3.38% $150,000 - $199,999 1.54% 1.18% 1.61% $200,000 - $249,999 0.33% 0.30% 0.41% $250,000 - $499,999 0.19% 0.22% 0.36% $500,000+ 0.00% 0.00% 0.11% 2016 Est. Average Household Income $50,514 $50,491 $50,670 2016 Est. Median Household Income $42,302 $41,689 $39,669 Family Dollar OFFERING MEMORANDUM Matthews Retail Advisors P. 13
FAMILY DOLLAR 217 Spruce St. La Jara, CO 81140 OFFERING MEMORANDUM Josh Bishop VP & Director - STNL DIRECT +1.310.919.5823 MOBILE +1.315.730.6228 josh.bishop@matthews.com License No. 01940394 Peter Gonzalez Broker of Record License No. FA100003923 Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com