offering memorandum family dollar · parent company trade name dollar tree, inc. (nasdaq: dltr)...

F a m i l y D o l l a r3193 Stone Mtn Highway Snel lv i l le, G A 3 0 0 7 8

O F F E R I N G M E M O R A N D U M

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E XC LU S I V E LY L I S T E D BY

JOSH BISHOPVP & Director

[email protected] (214) 692-2289MOB (315) 730-6228LIC # 01940394

CHAD KURZSVP & National Director


KYLE MATTHEWSBROKER OF RECORD

LIC # 363764

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C O N T E N T S4 INVESTMENT OVERVIEW

Investment Highl ights

6 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing Data

8 TENANT OVERVIEWFami ly Dol lar

1 0 PROPERTY OVERVIEWThe Offer ingSi te Descr ipt ionParcel MapTenant MapRegional Map

1 4 AREA OVERVIEWDemographics

I N V E S T M E N T O V E R V I E W

4 | F a m i l y D o l l a r - S n e l l v i l l e , G A

M A T T H E W S R E T A I L A D V I S O R S | 5

I n v e s t m e n t H i g h l i g h t s

• Ideal 1031 exchange property

• Brand new UPGRADED 2016 construction. Subject properties exterior is Brick / EIFS (no metal sides)

• Long-term absolute NNN lease; Zero management responsibility

• Attractive CPI based rent increases every 3-years (including option periods); Great hedge against inflation

• Average return of 6.32% over base term of the lease; assuming a purchase at list price

• Extremely strong average traffic counts more than 34,000 vehicles daily on Stone Mountain Hwy

• 3-mile demographics in excess of 62,800 residents

• 5-mile demographics in excess of 174,900 residents

• Estimated population growth over approximately 7.00% over the next 5 years

• Strong average household incomes of over $80,000 annually

• Snellville is located within the Atlanta MSA and only 18 miles east of downtown Atlanta

• Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation’s “largest small-box discount retailer” with more than 13,000 locations nationwide

• Standard & Poor’s credit rating of BB+

F I N A N C I A L A N A L Y S I S



F a m i l y D o l l a r3193 Stone Mtn Highway, Snel lv i l le, GA 30078List Price ............................................................................................. $1,792,125

CAP Rate - Current .................................................................................. 5.60%Gross Leasable Area ........................................................................± 8,194 SF Lot Size ............................................................................................ ± 1.18 Acres Year Built ....................................................................................................... 2016

Annualized Operating DataMonthly Rent Annual Rent Rent/SF

Years 1 - 3 $8,363.25 $100,359.00 $12.06

Years 4 - 6 $8,865.05 $106,380.54 $12.79

Years 7 - 9 $9,396.95 $112,763.37 $13.55

Years 10 - 12 $9,960.76 $119,529.17 $14.37

*Years 13 - 15 $10,558.41 $126,700.93 $15.23

Six (6) - Five (5) Year Options CPI Increases

Tenant Summary

Tenant Trade Name Family Dollar

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 years

Rent Commencement Date 8/4/2016

Lease Expiration Date 9/30/2029

Term Remaining on Lease ± 12.50 years

Increases CPI based rent increases every 3 years (6% max)

Options Six (6), Five (5) Year

*Rent increases are calculated off of the max 6% (CPI Increases)

T E N A N T O V E R V I E W



Property Name Family Dollar

Property Type Net Leased Discount Store

Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR)

Ownership Public

Credit Rating (S&P) BB+

Revenue $10.49 B

Net Income $285 M

No. of Locations ± 8,000

No. of Employees ± 60,000

Headquartered Matthews, North Carolina

Website www.familydollar.com

Year Founded 1986

TENANT OVERVIEWWhen it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget.

GEOGRAPHIC OUTREACH

Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers.

STRATEGY

Family Dollar offers a compelling mix of merchandise for the whole family. Ranging from an expanded assortment of refrigerated and frozen foods and health and beauty items to home décor and seasonal items, Family Dollar offers the lowest possible price, the name brand and quality private-brand merchandise customers need and use every day.

P R O P E R T Y O V E R V I E W

1 0 | F a m i l y D o l l a r - S n e l l v i l l e , G A

M A T T H E W S R E T A I L A D V I S O R S | 1 1

N

T h e O f f e r i n gProperty Name Family Dollar

Property Address 3193 Stone Mtn Highway Snellville, GA 30078

Assessor’s Parcel Number R6068-160

Site DescriptionNumber of Stories OneYear Built 2016Gross Leasable Area (GLA) ± 8,194 SFLot Size ± 1.18 Acres (51,400 SF) Type of Ownership Fee SimpleParking ± 30 Surface SpacesParking Ratio 3.66 : 1,000 SFLandscaping ProfessionalTopography Generally Level

ConstructionFoundation Concrete SlabFraming SteelExterior Brick / EIFSParking Surface AsphaltRoof Slightly Pitched

P a r c e l M a p

Stone Mountain Hwy ± 34,000 ADT

Highpoint Rd ± 3,000 ADT

Te n a n t M a p


SUBJECT PROPERTY


R e g i o n a l M a p

SUBJECT PROPERTY

A R E A O V E R V I E W



S n e l l v i l e , G ASnellville’s convenient location, approximately 18 miles east of Atlanta and 45 miles west of Athens at the intersection of U.S. Highway 78 and Georgia Highway 124, has allowed it to prosper and become one of Gwinnett County’s fastest growing cities for the past thirty years.

Present-day Snellville is quite a different place from the settlement that attracted James Sawyer and Thomas Snell. According to the 2000 Census, Snellville’s population is 15,351 and includes 5,391 households. Over 1,150 businesses operate in Snellville, bringing in more than $1 billion in revenue yearly. Snellville’s political system now includes a Mayor and 5 Council members. There are over 100 employees working for the City of Snellville, which operates from five departments: Administration; Parks & Recreation; Planning & Development; Public Safety; and Public Works. The city limits have now grown to 10.4 square miles and there are fourteen houses of worship located in the city limits.

Snellville’s continued prosperity stems from the southern hospitality of its residents and the versatility of its surroundings. With a variety of shops, restaurants, schools, churches, a hospital, cultural events, recreational activities, and an abundance of nearby attractions, Snellville’s residents and visitors can fulfill their entertainment and family needs close to home. From a small farming community to the prospering present-day community, Snellville continues to be one of the most successful cities in the Atlanta region.

D e m o g r a p h i c sPopulation 1 Mile 3 Miles 5 Miles2022 Projection 8,029 66,896 187,373

2017 Estimate 7,599 62,888 174,910

2010 Census 7,028 57,286 156,491

2000 Census 6,531 51,221 127,011Growth 2017 - 2022 5.66% 6.37% 7.13%Growth 2010 - 2017 8.13% 9.78% 11.77%

Households 1 Miles 3 Miles 5 Miles

2022 Projection 2,708 22,734 62,049

2017 Estimate 2,550 21,332 58,0652010 Census 2,331 19,346 52,3042000 Census 2,217 16,902 41,794Growth 2017 - 2022 6.18% 6.57% 6.86%

Income 1 Miles 3 Miles 5 Miles

2017 Est. Average Household Income $71,961 $83,842 $85,628

Atlanta is Georgia’s capital and most populous city, as well as the economic and cultural hub of the Atlanta metropolitan area. Atlanta is a rapidly growing city, and its metropolitan area exceeded 5.5 million for the first time in 2013. While the area’s growth is not as high as it was in the 1990’s and early 2000s, it’s higher than the previous year and this growth is expected to continue as Atlanta attracts new people. It’s projected that metro Atlanta’s population will reach about 5.7 million by 2020.

A t l a n t a , G A


Atlanta’s economy is considered diverse, with dominant sectors including logistics, professional and business services, media operations, and information technology. Corporate operations comprise a large portion of the Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. Atlanta contains the country’s third largest concentration of Fortune 500 companies, and the city is the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and Newell-Rubbermaid. Over 75 percent of Fortune 1000 companies conduct business operations in the Atlanta metropolitan area, and the region hosts offices of about 1,250 multinational corporations. Many corporations are drawn to Atlanta on account of the city’s educated workforce; as of 2010, nearly 43% of adults in the city of Atlanta have college degrees, compared to 27% in the nation as a whole.

E c o n o m y

Atlanta is one of the most visited cities in America, with over 37 million visitors per year. In 2015 alone, the tourism industry generated $58.9 billion in business sales. Although the most popular attraction among visitors to Atlanta is the Georgia Aquarium, the world’s largest indoor aquarium, Atlanta’s tourism industry mostly driven by the city’s history museums and outdoor attractions.

Atlanta contains a notable amount of historical museums and sites, including the Martin Luther King, Jr. National Historic Site. Atlanta also contains various outdoor attractions. The Atlanta Botanical Garden, adjacent to Piedmont Park, is home to the 600-foot-long Kendeda Canopy Walk, a skywalk that allows visitors to tour one of the city’s last remaining urban forests from 40-foot-high.

To u r i s m

# Employer Employees

1 Delta Air Lines 31,237

2 Emory University 29,937

3 Wal-Marts Stores, Inc 20,532

4 The Home Depot 20,000

5 AT&T 17,882

# Employer Employees

6 The Kroger Co. 14,753

7 Wellstar Health Systems 13,500

8 Publix Super Markets, Inc. 9,494

4 USPS- Atlanta DIstrict 9,385

5 Northside Hospital 9,016

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Family Dollar located at 3193 Stone Mtn HIghway Snellville, GA 30078 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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E XC LU S I V E LY L I S T E D BY

F a m i l y D o l l a r3193 Stone Mtn Highway, Snel lv i l le, GA 30078

O F F E R I N G M E M O R A N D U M

JOSH BISHOPVP & Director


CHAD KURZSVP & National Director


KYLE MATTHEWSBROKER OF RECORD

LIC # 363764

offering memorandum family dollar · parent company trade name dollar tree, inc. (nasdaq: dltr)...

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