Family Dollar - Single Tenant Net Leased

Retail-Commercial for Sale
Catylist Listing ID: 30181350
Property Subtypes: Free-Standing Building
Building Size (RSF): 8,056 SF
Gross Land Area: 0.79 Acres
Sale Price: $1,399,000
Unit Price: $173.66 PSF
Property Use Type: Net Leased Investment (NNN), Investment
Building Name: Family Dollar - Single Tenant Net Leased
Usable Size (USF): 8,056 SF
Sale Terms: Cash to Seller
Cap Rate: 8.2%
Average Occupancy Rate: 100
Last Updated: 9/18/2018

Overview / Comments

SVN / Investment Property Advisors is pleased to present this Net Leased
Family Dollar in Michigan's 2nd largest city-Grand Rapids MSA. Property has
240' of frontage on major commercial artery with nearby national retailers
including Walgreen's, Rite Aid, Advance Auto Parts, Chase Bank and Ace
Hardware, and close to US 131 interchange. Built to suit for Family Dollar.

10 Year Family Dollar Net Leased
Strong BB+ Grade Credit Rating
Strong Demographics
Four 5 Year Lease Renewals-Automatic Absent 6 Months Notice
Each Renewal has 10% Rent Increase

Current Tenants

Tenant Business Name Family Dollar
Contact Name Dollar Tree (Parent company) Publicly Listed Fortune 500 Company
Website URL
Industry Type Retail Trade
Is Renting? Yes
SF of Space Occupied 8,056 SF
Current Rent $114,637 PSF (Annual)
Lease Expiration 9/0030
Escalations 10% each 5 year renewal
Options Rents for option periods: Option 1- $126,100/year Option 2- $138,710/year Option 3- $152,581/year Option 4- $167,840/year
Tenant Notes Family Dollar leased properties are considered to be one of the most attractive investments available in the $1-$2 million range. Their credit is considered to be strong and banks seek out opportunities to loan money for these properties. They are considered to be “recession-resistant” investments. The Company reports that it has over 8,000 locations in 44 states and enjoys increasing sales, currently over $10 billion dollars annually. Family Dollar was acquired by Dollar Tree in 2014 and continues as a separate brand while benefitting from combined logistics and merchandising with its new parent company. Dollar Tree & Family Dollar combined have over 14,000 locations across the US. More information may be found online at Family Dollar was a Fortune 500 Company and traded as FDO on the NYSE and now trades as part of Dollar Tree (NASDAQ:DLTR). The Company’s merchandise assortment includes consumables, home products, apparel, accessories and electronics. The Company’s products include health and beauty aids, packaged food, refrigerated products, home cleaning supplies, housewares, stationery, seasonal goods and domestics. We like Family Dollar investment properties because they are critical providers of necessary family products at discount prices to people living in smaller markets. The real estate is usually well-located and the price per SF is usually very reasonable. The management is considered fairly simple and the company has a reputation of sending the rent payments to their landlords like “clockwork”.

Additional Details

Nearest MSA: Grand Rapids-Wyoming
County: Kent
Submarket/Township: 36th/44th St Corridor
Taxing Authority: Wyoming
Tax ID/APN: 41-17-24-483-023
Retail Clientele: General
Property Located Between: US 131 & Division on 44th St, SW
Property Visibility: Excellent
Largest Nearby Street: 44th St & Division
Feet of Frontage: 240
Highway Access: US 131
Airports: Gerald R Ford - Grand Rapids
Site Description: 240' Frontage on Heavily trafficked 44th St between US 131 & Division
Area Description: Strong Demographics with nearly 100,000 people in 3 mile radius. Nearby national retailers include Walgreen's, Rite Aid, Advance Auto Parts, Chase Bank and Ace Hardware, and close to US 131 interchange.
Tenancy: Single Tenant
Total Number of Buildings: 1
Number of Stories: 1
Typical SF / Floor: 8,056 SF
Property Condition: Good
Year Built: 2011
Roof Type: Gable
Construction/Siding: Block
Parking Type: Surface
Parking Description: Ample Parking
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Engineered System
Internet Access: Cable
Zoning Description: Commercial Avenue
Lot Frontage: 240
Lot Depth: 120'
Water Service: Municipal
Sewer Type: Municipal
Easements: Utilities

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 11,393 112,804 260,644
Median Age: 33.36 34.11 33.65
Households: 4,230 42,875 96,202
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