Offering Memorandum Representative Photo Dollar Tree 153 South Main Street Calais, Maine 04619
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 The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time.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: John Golden ME License #BR907565 Stan Johnson Company 10333 Richmond Avenue Suite 740 Houston, Texas 77042 P: 832.476.3440 stanjohnsonco.com
Investment Summary Purchase Price: $1,726,666 Cap Rate: 7.50% Stan Johnson Company is pleased to offer for sale to qualified investors a fee simple interest in a free standing Dollar Tree in Calais, Maine. Calais is located in far-eastern Maine, less than 400 meters from the US-Canadian border into Saint Stephen, New Brunswick. Dollar Tree is operating under a new Ten (10) year NN lease offering Two (2), Five (5) year renewal options. The lease offers attractive rental escalations in each option period. This newly-developed property was constructed in 2016 and offers 10,000 SF on 0.58 Acres. The property is strategically located at the intersection of Main Street and Union Street, adjacent to Marden's, Maine's leading surplus and salvage retailer. This highlyvisible thoroughfare offers convenient access and visibility to a combined 11,000 VPD. Nearby national and regional tenants include, O'Reilly Auto Parts, Dunkin' Donuts, Camden National Bank, McDonald's, Rite Aid, and Tim Horton's. Investment Highlights Newly-Developed Building The Property was constructed in 2016 and offers 10,000 SF on 0.58 Acres. Long Term Lease New, Ten (10) year lease term with 9.5 years remaining, offering Two (2), Five (5) year option periods. Highly-Visible Location The property is strategically located along a highly-visible thoroughfare offering convenient access and excellent visibility. Industry Leading Tenant Dollar Tree, Inc. (NYSE: DLTR, Ratings: S&P: BB+, Moody s: Ba2) is recognized as the #1 Value retailer in the dollar store space. Incredible Revenue Growth Dollar Tree acquired Family Dollar in 2015. Since then, they have seen 2016 Total Revenue grow to $20.7 billion, which was up 33.5% over the prior year. Even more importantly was that Net Income grew to just under $900 million and is up 217% year-over-year as well. The merger was a complete success. E-Commerce Protection Dollar stores are one of the few retailers protected by e-commerce. They continue to expand in a time other retailers are wary. The lowpriced goods are just as inexpensive in the store as online and they offer customers immediate availability. Dollar stores are here to stay. Offering Memorandum Dollar Tree Calais, Maine 3
Lease Abstract Rent Schedule 153 South Main Street Calais, ME 04619 Years Annual Rent RPSF Tenant: Dollar Tree Current - 12/31/2026 $129,500 $12.95 Guarantor: Corporate Guarantee Option 1 (Years 11-15) $139,500 $13.95 Building Size: ± 10,000 SF Option 2 (Years 16-20) $149,500 $14.95 Acreage: ± 0.58 Acres Year Constructed: 2016 Lease Commencement: November 2, 2015 Rent Commencement: December 1, 2016 Lease Expiration: December 31, 2026 Base Lease Term: Ten (10) Years Annual Base Rent: $129,500 Base Rent PSF: Rent Increases: Renewal Options: Landlord Responsibilities: Ownership Interest: $12.95 PSF Flat in base lease term, increases of $1.00 PSF in each option period Two (2), Five (5) year options NN - Landlord is responsible for roof and structure Fee Simple Representative Location Offering Memorandum Dollar Tree Calais, Maine 4
Representative Photos Tenant Overview Dollar Tree, Inc. (NASDAQ: DLTR), founded in 1986, is the nation s leading operator of discount retail stores. The company sells a variety of merchandise including candy, food, health and beauty items, paper products, frozen and refrigerated food, toys, housewares, stationary, party goods, greeting cards, and seasonal goods including holiday themed items. The average Dollar Tree location carries approximately 7,200 items in-store at any given time, allowing for a wide array of different products at each location. Dollar Tree primarily serves low-to middle-income customers in a variety of markets including small towns, mid-sized cities, and metropolitan areas. On July 6th, 2015, Dollar Tree, Inc. completed their acquisition of Family Dollar Stores, Inc., bringing Dollar Tree s total store count to 14,334 and making it the largest discount retailer by store count in North America. This strategic acquisition will allow 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 its goods for $10.00 or less. In FY2016, Dollar Tree, Inc. earned total revenue of $20.7 billion, representing an impressive 33.5% yearover-year increase. The company also reported net income of $896.2 million and a year-end net worth of $5.4 billion. As of April 6, 2017, Dollar Tree s market cap was $18.4 billion. The company has 55,300 full-time and 121,500 part-time employees for a total employee count of 176,800 and maintains a BB+/Stable credit rating with S&P. ACCOLADES Largest Discount Store in North America 180th on Forbes Fortune 500 33% Revenue Growth Year-Over-Year (2016) 80% Revenue Growth Prior Year (2015) 217% Growth in Net Income (2016) Company Name: Founded: 1986 Headquartered: No. of Locations: 14,334 Entity Type: Stock Symbol: Exchange: Credit Rating: COMPANY PROFILE Dollar Tree, Inc. Chesapeake, VA Public DLTR NASDAQ BB+/Stable (S&P) FYE: Jan 2017 Jan 2016 Jan 2015 Total Revenue: $20.7 B $15.5 B $8.6 B YOY Change: 33.55% 80.23% 10.26% Net Income: $896 M $282 M $599 M YOY Change: 217.73% ($52.92%)* Net Worth: $5.4 billion FYE: 1/28/2017 Source: Website: Yahoo! Finance www.dollartree.com *Dollar Tree purchased Family Dollar on July 6, 2015. Decline in Net Income was due to merger. Offering Memorandum Dollar Tree Calais, Maine 5
Location Overview Calais is a city in Washington County, Maine, United States. As of the 2010 census, it had a population of 3,123. The city has three Canada US border crossings over the St. Croix River connecting to St. Stephen, New Brunswick, Canada. Calais is located at the junction of U.S. 1, a major north-south highway that runs along the Eastern Seaboard, and Route 9, which crosses the state from east to west. The city also has direct access to New Brunswick Route 1, a controlled-access freeway that begins at the Canada US border and runs east through Saint John to a junction with the Trans-Canada Highway. Calais, Maine Historic District Calais, Maine Calais has historically been a city of commerce and is recognized as the primary shopping center of eastern Washington County and Charlotte County, New Brunswick. Calais has worked to bolster its economy by the revitalization of its downtown and development of an industrial park complete with sewer, water, three phase power and transportation facilities. Calais is designated as a HUB zone for economic development. Calais has a remarkable endowment of historic buildings and natural beauty. The quality of life is further enhanced by the availability of an array of community facilities including a regional hospital, Washington County Community College (formerly WCTC), numerous parks and recreational facilities. Calais, Maine 3,030 Total Population within 5-Mile Radius of Subject Property $47,153 Avg HHI within 5-Mile Radius of Subject Property 1,374 Total Households within 5-Mile Radius of Subject Property ± 1 Miles The Subject Property will benefit from limited competition with one other Family Dollar in the local market Offering Memorandum Dollar Tree Calais, Maine 6
Site Plan Offering Memorandum Dollar Tree Calais, Maine 7
Pat's Plus Dairy Cafe Eastern Maine Electric Cooperative CANADA UNITED STATES BORDER +/- 0.2 MILES FROM SUBJECT PROPERTY MAIN ST (+/- 5,300 VPD) State Cinemas Just South of the Border Restaurant Marden's Surplus & Salvage Eastern Maine Appliances VIP Tires & Services Motor Vehicle Registry Calais Rec Center NORTH ST (+/- 5,839 VPD) N
Able Taxi Gateway Cathedral Tacks N Tapestry Calais Elementary School NORTH ST (+/- 5,839 VPD) Holy Rosary Parish St Stephen Middle School Royal Canadian Legion Branch Charlie's Cafe Calais Regional Hospital ±200 employees St Joseph's Church MAIN ST (+/- 5,300 VPD) UNITED STATES CANADA St Stephens Garcelon Civic Inn Center Blair House Heritage Inn Shore Trail Apartments Charlotte County Hospital St Stephen Elementary N
Demographic Profiles Dominant Profiles within 5-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: Hometown Small Town Simplicity Avg. Household Size: 2.25 Median Age: 40.0 Median HHI: $27,000 12C Small Town Simplicity includes young families and senior householders that are bound by community ties. The lifestyle is down-to-earth and semirural, with television for entertainment and news, and emphasis on convenience for both young parents and senior citizens. LifeMode Group: Cozy Country Living Heartland Communities 6F 1 Mile Avg. Household Size: 2.38 Median Age: 41.5 Median HHI: $39,000 Well settled and close-knit, Heartland Communities are semirural and semiretired. These older householders are primarily homeowners, and many have paid off their mortgages. Their children have moved away, but they have no plans to leave their homes. 3 Miles LifeMode Group: Rustic Outposts Rooted Rural 10B 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 www.esri.com. Avg. Household Size: 2.47 Median Age: 44.1 Median HHI: $38,000 Rooted Rural is heavily concentrated in the Appalachian mountain range as well as in Texas and Arkansas. Employment in the forestry industry is common, and Rooted Rural residents live in many of the heavily forested regions of the country. Nearly 9 of 10 residents are non-hispanic whites.
Demographics 153 South Main Street Calais, ME 0-1 mi. 0-3 mi. 0-5 mi. Population 2016 Population 1,512 2,386 3,030 2021 Population 1,463 2,315 2,944 Households 2016 Total Households 709 1,098 1,374 2021 Total Households 690 1,071 1,343 Median Household Income 2016 Median Household Income $37,571 $34,238 $33,497 Average Household Income 2016 Average Household Income $48,056 $47,147 $47,153
Offered Exclusively by Marc Peeler Associate Director mpeeler@stanjohnsonco.com Jim Gibson Regional Director jgibson@stanjohnsonco.com going beyond Todd Moore Director tmoore@stanjohnsonco.com Marshall Thompson Associate mthompson@stanjohnsonco.com Jaime Patteson Research Analyst jpatteson@stanjohnsonco.com In Association With: John Golden ME License #BR907565 Stan Johnson Company 10333 Richmond Avenue Suite 740 Houston, Texas 77042 P: +1 832.476.3440 F: +1 832.476.3449 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.