Offering Memorandum - Matthews Real Estate Investment Services

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
C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T
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 t he 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
EXC LUS I V ELY L I ST ED BY:
Josh Bishop
VP & Director - STNL
DIRECT +1.310.919.5823
MOBILE +1.315.730.6228
[email protected]
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
Current - 12/31/2020
Monthly Rent
Annual Rent
$6,650.00
$79,800.00
Rent/SF CAP Rate
$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
Roof and Structure
Original Lease Term
Rent Commencement Date
Lease Expiration Date
Term Remaining on Lease
Increases
Options
Family Dollar | OFFERING MEMORANDUM
NN
Landlord Responsible
10 Years
December 2005
12/31/2020
± 5.00 Years
10% In Options
Three (3) - Five (5) Year Options
Matthews Retail Advisors
P. 3
COMPANY OVERVIEW
Property Name
Property Type
Parent Company Trade Name
Ownership
Revenue
Net Income
Family Dollar
Net Leased Discount Store
Dollar Tree. Inc.
Public
$10.49B
$284.5M
Stock Symbol
DLTR
Board
NYSE
No. of Locations
No. of Employees
Headquartered
Web Site
Year Founded
P. 4
Matthews Retail Advisors
± 13,000
± 50,000
Matthews, NC
www.familydollar.com
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.
OFFERING MEMORANDUM | Family Dollar
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
™
P. 6
Matthews Retail Advisors
OFFERING MEMORANDUM | Family Dollar
PROPERTY
PHYSICAL DESCRIPTION
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
P. 8
Matthews Retail Advisors
St
CPD: 5
,000
OFFERING MEMORANDUM | Family Dollar
PROPERTY
REGIONAL DESCRIPTION
MAP
Family Dollar | OFFERING MEMORANDUM
Matthews Retail Advisors
P. 9
Matthews
Retail Advisors
P.
10 Matthews
Retail Advisors
OFFERING MEMORANDUM | Family Dollar
DEMOGRAPHICS
Demographics
™
DEMOGRAPHIC
CITY OVERVIEWANALYSIS
| 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.
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Matthews Retail Advisors
OFFERING MEMORANDUM | Family Dollar
DEMOGRAPHICS
REPORT
DEMOGRAPHIC
ANALYSIS
Family Dollar | OFFERING MEMORANDUM
Population
2021 Projection
2016 Estimate
2010 Census
2000 Census
Growth 2016-2021
Growth 2010-2016
Growth 2000-2010
3-Mile
1,365
1,341
1,336
1,356
1.78%
0.36%
-1.47%
5-Mile
2,896
2,817
2,770
2,719
2.79%
1.69%
1.89%
10-Mile
6,369
6,198
6,108
5,987
2.75%
1.47%
2.03%
Households
2021 Projection
2016 Estimate
2010 Census
2000 Census
Growth 2016-2021
Growth 2010-2016
Growth 2000-2010
528
513
499
471
3.00%
2.70%
6.08%
1,092
1,052
1,013
932
3.86%
3.81%
8.67%
2,393
2,305
2,227
2,055
3.80%
3.50%
8.36%
Income
$0 - $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $499,999
$500,000+
2016 Est. Average Household Income
2016 Est. Median Household Income
22.08%
9.74%
10.49%
15.80%
20.67%
10.49%
4.94%
3.73%
1.54%
0.33%
0.19%
0.00%
$50,514
$42,302
21.28%
12.12%
10.55%
13.56%
20.01%
11.57%
5.60%
3.61%
1.18%
0.30%
0.22%
0.00%
$50,491
$41,689
21.58%
11.86%
12.43%
13.25%
19.39%
10.50%
5.12%
3.38%
1.61%
0.41%
0.36%
0.11%
$50,670
$39,669
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
[email protected]
License No. 01940394
Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com
™
Peter Gonzalez
Broker of Record
License No. FA100003923