Representative Photo Family Dollar - 15 Year, NNN 910 Jackson Avenue, Memphis, Tennessee 38107 OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of Family Dollar located at 910 Jackson Avenue, Memphis, Tennessee 38107 here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. It is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future performance. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii
TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview................................... 2 Financial Overview..................................... 3 Company Overview.................................... 4 PROPERTY DESCRIPTION Property Overview..................................... 6 Bird s Eye........................................... 7 Tenant Map.......................................... 8 Regional Map........................................ 9 Site Plan Map........................................ 10 DEMOGRAPHICS Demographics Report.................................. 12 City Overview....................................... 13 PRESENTED BY Chad Kurz SVP & National Director License No. 01911198 O 310.919.5850 M 562.480.2937 chad.kurz@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com James Jim Holleman Broker of Record License No. 235328 iii
Representative Photo
PRICING AND FINANCIAL ANALYSIS
Investment Highlights Brand New, High Quality, 2016 Construction 15-Year Absoulte NNN Lease (No Management Responsiblity) Attractive 10% Rent Increases every 5 years, Starting in Year 10 Average Return Of ±6.50% Over Base Term Of Lease; Assuming A Purchase At List Price Larger Format Store, Typical of High Performing Locations Strong Location Just a Mile from Downtown Memphis Located a Half-Mile from St. Jude Children s Research Hospital, the largest hospital in Memphis Extremely Strong Demographics: 3-Mile Population of ±80,000 Extremely Strong Demographics: 5-Mile Population of ±175,000 Ideal Demographics for Family Dollar, Average Household Income in 3-Mile is ±$52,000 Located next to Interstate 40 with over 120,000 Vehicles Per Day Memphis, TN is one of the 50 largest MSA s in the USA Family Dollar Was Recently Acquired By Dollar Tree, Inc. Now Considered The Nations Largest Small-Box Discount Retailer Dollar Tree Has a Market Cap of $18.3B and Revenue in Excess of $15B Dollar Tree and Family Dollar Branded Stores Have Over 13,500 Representative Photo 2
Financial Overview EXECUTIVE SUMMARY 910 Jackson Avenue Memphis, Tennessee 38107 List Price...................................... $1,689,173 Gross Leasable Area............................... 9,180 SF CAP Rate - Current..................................6.25 % Year Built.........................................2016 Price PSF........................................$184.01 Lot Size..................................... ±.92 Acres ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent PSF CAP Rate Current - 3/31/2026 $8,797.78 $105,573.36 $11.50 6.25% 4/1/2026-3/31/2031 $9,677.56 $116,130.72 $12.65 6.88% Option 1 $10,645.31 $127,743.72 $13.92 7.56% Option 2 $11,709.84 $140,518.09 $15.31 8.32% Option 3 $12,880.83 $154,569.90 $16.84 9.15% Option 4 $14,168.91 $170,026.89 $18.52 10.07% TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Family Dollar Fee Simple Corporate NNN Tenant Responsible 15 years Lease Commencement Date July 22, 2015 Rent Commencement Date July 1, 2016* Lease Expiration Date March 31, 2031 Term Remaining on Lease ±15 Years Increases 10% Options 6, 5-year 3
Company Overview Property Name Family Dollar Property Type Net Leased Discount Store Parent Company Trade Name Dollar Tree. Inc. Ownership Public Revenue $15.50 B Market Cap $18.29B Stock Symbol DLTR Board NYSE No. of Locations ± 13,600 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. 4
PROPERTY DESCRIPTION
Property Overview THE OFFERING Property Name............................... Family Dollar Property Address......................... 910 Jackson Avenue Memphis, Tennessee 38107 SITE DESCRIPTION Number of Stories.................................... One Year Built.........................................2016 Gross Leasable Area (GLA)........................... 9,180 SF Lot Size..................................... ±.92 Acres Type of Ownership............................Ground Simple Parking................................ ±32 Surface Spaces Parking Ratio................................. 3.5 : 1,000 SF Landscaping..................................Professional Topography................................ Generally Level CONSTRUCTION Foundation.................................. Concrete Slab Framing......................................... Steel Parking Surface................................... Asphalt Roof............................................ Flat 6 PROPERTY DESCRIPTION
Bird s Eye 7
Tenant Map 8 PROPERTY DESCRIPTION
Regional Map 9
Construction Photos - Actual Property 10
DEMOGRAPHICS
Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 12,874 81,579 174,030 2016 Estimate 12,837 80,476 173,809 2010 Census 12,927 80,118 176,569 2000 Census 17,760 88,441 200,590 Growth 2016-2021 0.29% 1.37% 0.13% Growth 2010-2016 -0.70% 0.45% -1.56% Growth 2000-2010 -27.21% -9.41% -11.98% Households 2021 Projection 5,350 37,727 73,956 2016 Estimate 5,263 36,772 73,014 2010 Census 5,153 35,845 72,613 2000 Census 6,542 37,446 80,081 Growth 2016-2021 1.64% 2.60% 1.29% Growth 2010-2016 2.14% 2.58% 0.55% Growth 2000-2010 -21.23% -4.27% -9.33% Income $0 - $15,000 38.97% 29.83% 29.84% $15,000 - $24,999 16.91% 14.15% 16.02% $25,000 - $34,999 12.97% 11.39% 12.91% $35,000 - $49,999 11.80% 12.62% 12.39% $50,000 - $74,999 9.81% 12.40% 12.47% $75,000 - $99,999 4.15% 6.86% 6.26% $100,000 - $124,999 1.57% 3.83% 3.45% $125,000 - $149,999 1.40% 2.33% 1.95% $150,000 - $199,999 1.67% 3.02% 2.13% $200,000 - $249,999 0.43% 1.24% 0.87% $250,000 - $499,999 0.29% 1.67% 1.15% $500,000+ 0.05% 0.67% 0.55% 2016 Est. Average Household Income $33,606 $51,958 $46,563 12 DEMOGRAPHICS
City Overview MEMPHIS, TENNESSEE Memphis, along the Mississippi River in southwest Tennessee, is known for its music and food. Blues, jazz and rock n roll spill out from the clubs along Beale Street, and restaurants dish up barbecue and soul food. Memphis is the county seat of Shelby County. Memphis had a population of 653,450 in 2013, making it the second largest city in the state of Tennessee. It is the largest city on the Mississippi River, the third largest in the greater Southeastern United States, and the 23rd largest in the United States. Tourism in Memphis includes the points of interest in Memphis, Tennessee such as museums, fine art galleries, and parks, as well as Graceland the Beale Street entertainment district, and sporting events. Graceland, the home of Rock n Roll legend Elvis Presley, is one of the most visited houses in the United States attracting over 600,000 domestic and international visitors a year. Blues fans can visit Beale Street, where a young B.B. King used to play his guitar. In his later years he occasionally still appeared there at the club bearing his name, which he partially owned. Street performers play live music, and bars and clubs feature live entertainment around the clock. Downtown Memphis rises from a bluff along the Mississippi River. The city and metro area spread out through suburbanization, and encompass southwest Tennessee, northern Mississippi and eastern Arkansas. Several large parks were founded in the city in the early 20th century, notably Overton Park in Midtown and the 4,500-acre Shelby Farms. The city is a national transportation hub and Mississippi River crossing for Interstate 40, Interstate 55, barge traffic, Memphis International Airport (FedEx s SuperHub facility) and numerous freight railroads that serve the city. In 2013 Forbes magazine ranked Memphis as one of the top 15 cities in the United States with an emerging downtown area. Also in 2013, USA Today readers voted Beale Street as America s Best Iconic Street and Graceland as the Best Iconic American Attraction. The National Civil Rights Museum ranked third in the poll of national attractions. 13
Family Dollar 910 Jackson Avenue, Memphis, Tennessee 38107 OFFERING MEMORANDUM Chad Kurz SVP & National Director License No. 01911198 O 310.919.5850 M 562.480.2937 chad.kurz@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com James Jim Holleman Broker of Record License No. 235328 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com