2024 Built-to-Suit Construction with Roof Warranty
– The subject property is brand-new, 2024 construction featuring the latest built-to-suit design for Dollar Tree.
– The newly built asset comes with a 20-year roof warranty, which is transferrable to a new owner.
Brand-New, 10-Year Lease
– Dollar Tree has entered into a brand-new, 10-year lease at the subject property.
– The lease is Double Net in nature, with the landlord being responsible for the roof, structure, and parking lot (excluding re-striping).
– Providing a hedge against inflation, the lease also calls for rental increases of $.50/sf in each of the five, five-year options.
Corporate Guarantee from Dollar Tree (NASDAQ: DLTR)
– With an S&P “BBB” credit rating, Dollar Tree is recognized as the second largest discount retailer in the United States with more than 16,000 locations.
– In 2015, Dollar Tree acquired Family Dollar in a deal valued at roughly $9.2 Billion, further expanding their North American footprint and capturing more market share within the growing discount retail sector.
– Dollar Tree generated $30.6 Billion in revenue in 2023, which was an 8% increase over 2022 revenue ($28.33 billion).
Internet-Resistant and Essential Business Model
– Dollar Tree is one of the few retailers that thrived through the COVID pandemic and witnessed a sharp increase in same-store sales and profitability.
– Dollar Tree’s same-store net sales increased by 5.8% in 2023 and gross profit’s increased by 4.3% to $9.31 Billion.
– Dollar Tree continues to expand their footprint nationwide, opening 641 new stores in 2023. In addition, the brand also continues to evolve their business model through new offerings such as frozen and refrigerated items in 6,500+ stores and with initiatives like the “More Choices” Program in 3,000+ locations.
Madison, WI MSA
– The subject property is just 20-miles from Madison, WI, which is the second largest city in the state of Wisconsin with 280k+ residents.
– The property is situated directly off of US Hwy 151, which connects Madison to the entire Northeastern portion of Wisconsin. The property is also surrounded by a number of national retailers including: Walgreens, McDonald’s, O’Reilly Auto Parts, Taco Bell, Burger King, Kwik Trip, Jimmy John’s, Subway, Arby’s, Culver’s, Pick ‘n Save and more.
