2024 Built-to-Suit Construction with Transferrable Roof Warranty
– The subject property is brand-new, 2024 construction featuring the latest built-to-suit design for the tenant.
– The newly built asset also comes with a 20-year roof warranty that is transferrable to a new owner.
– The property opened for business and rent commenced in July of 2024.
New, 10-Year Lease
– The tenant has entered into a new, 10-year lease with five, five-year options to extend.
– The lease is Double Net in nature, with the tenant being responsible for parking lot maintenance, HVAC, utilities, insurance and taxes. The landlord is responsible for the roof, structure, and parking
lot replacement.
– Providing a hedge against inflation, the lease also calls for rental increases of $5,250 ($.50/sf) in each of the five, five-year options.
Investment Grade Credit
– Dollar Tree/Family Dollar is a publicly traded (NASDAQ: DLTR) Fortune 500 company with an S&P investment grade credit rating of ‘BBB’.
– In 2015, Dollar Tree (NASDAQ: DLTR) acquired Family Dollar in a deal valued at roughly $9.2 Billion, making them the second-largest discount retailer in the United States with more than 16,000 locations.
– Dollar Tree/Family Dollar generated $30.6 Billion in revenue in 2023, which was an 8% increase over 2022 revenue ($28.33 billion).
– Dollar Tree has been in business for 70+ years with a current net worth of over $33 billion.
Internet-Resistant and Essential Business Model
– Family Dollar/Dollar Tree are amongst the few retailers that thrived through the COVID pandemic and witnessed a sharp increase in same-store sales and profitability.
– Dollar Tree/Family Dollar same-store net sales increased by 5.8% in 2023 and gross profit’s increased by 4.3% to $9.31 Billion. Dollar Tree/Family Dollar continues to expand their footprint nationwide, opening 641 new stores in 2023.
– 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.
