dollar tree - constant...

1300 Charles Street - Park Rapids, Minnesota 56470

Dol lar Treeoffering memorandum

Actual Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330174

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Investment Overv iew

• Dollar Tree in Park Rapids, Minnesota | 200 Miles Northwest of Minneapolis

• Over Eight Years Remaining with 5 Percent Rent Increases Every Five Years

• Lease Features Two, Five-Year Options with Five Percent Rent Increases in Each Option

• Lease is Guaranteed by Dollar Tree Stores, Incorporated | $8.6 Billion in Sales in 2015

• Strategically Located Just off Route 34 | Main East-West Corridor Through Park Rapids

• Directly Adjacent to 24-Hour Walmart Super Center with Auto Center, Pharmacy, Grocery Store, and Full Optical Center

• Other National Retailers in the Vicinity Include Pizza Hut, Burger King, McDonald’s, Walgreen’s, Dairy Queen, and Family Dollar

Marcus & Millichap is pleased to present this 8,000-square foot Dollar Tree in Park Rapids, Minnesota, located 200 miles northwest of Minneapolis and 85 miles west of Fargo, North Dakota. There are over eight years remaining on this double-net (NN) lease with minimal landlord responsibilities. Rent increases five percent every five years over the base term and in the two, five-year options. The lease is guaranteed by Dollar Tree Stores, Incorporated, which had $8.6 billion in sales during 2015. Dollar Tree has an early termination tied to sales performance in year five of the lease.

This asset is strategically located just off Route 34, which is the main east-west corridor through Park Rapids. A 24-Hour Walmart Super Center is located directly adjacent to the subject property. This Walmart is a major regional tenant with an auto center concept, a pharmacy, a grocery store, and a full optical center.

Other national retailers in the vicinity include: Pizza Hut, Burger King, McDonald’s, Walgreens, Dairy Queen, and Family Dollar.

Actual Property


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PRICE $1,021,000

CAP RATE 7.25%

NOI $74,000

PRICE PER SQUARE FOOT $127.63

RENT PER SQUARE FOOT $9.25

YEAR BUILT 2014

LOT SIZE +/- 1.53 Acres

GROSS LEASEABLE AREA 8,000 Square Feet

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guarantee

LEASE TYPE Double Net

ROOF AND STRUCTURE Landlord Responsible

LEASE COMMENCEMENT DATE January 2, 2015

LEASE EXPIRATION DATE January 31, 2025

LEASE TERM 10 Years

TERM REMAINING 8 Years

INCREASES 5% Every 5 Years

OPTIONS TO RENEW 2, 5-Year Options

OPTIONS TO TERMINATE Yes

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL None

Financia l Overv iew

Offering Summary

Lease Summary

Actual Property


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Tenant Overv iew - Dol lar Tree

Headquartered in Chesapeake, Virginia, Dollar Tree is the largest and most successful single-price-point retailer in North America, operating thousands of stores across 48 contiguous states and five Canadian provinces, supported by a solid and scalable logistics network.

At Dollar Tree, we are committed to serving the best interests of our shareholders. We seek to enhance shareholder value not only through exceptional business performance and practices, but also through responsible and effective communication. To help put Dollar Tree, Incorporated’s financial performance into perspective, our investor relations site provides the latest company information relevant to the individual. It’s all about the thrill of the hunt!

We love to hear from our customers and overwhelmingly the two comments we repeatedly receive are: “I can’t believe this cool item I just found at Dollar Tree!” and “I can’t believe it’s only $1.00!”

That’s when we know we’ve done our jobs right! We have worked hard to create an environment where shopping is fun, a place where our customers can discover new treasures every week, a store where entire families can enjoy hunting for that special something. Every Dollar Tree store is bright and well lit, clean and well organized, and stocked with endless hidden treasures!

Just as important, especially during these tough economic times, we continue to offer our customers products they need at extreme values! We carry a broad, exciting mix of merchandise that includes many trusted national and regional brands. Some of the product departments you’ll find at Dollar Tree include: housewares, glassware, dinnerware, cleaning supplies, candy, snacks, food, health and beauty, toys, gifts, gift bags and wrap, party supplies, stationery, craft supplies, teaching supplies, books, seasonal décor, and more! Everything you need for every day, every holiday, every occasion, and every single item is only $1 (or less)!

The best part is that there is probably a Dollar Tree store near you! We are a national company with thousands of stores conveniently located in shopping centers and malls in all 48 contiguous states. Plus, you can conveniently shop online with Dollar Tree Direct for case-quantities of the same items you’d find in our stores (small retailers and service industries should visit our Small Business Center for additional information).

TENANT PROFILE

TENANT TRADE NAME Dollar Tree

OWNERSHIP Public

TENANT Dollar Tree Stores, Incorporated

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 13,600

HEADQUARTERED Chesapeake, Virginia

WEB SITE www.dollartree.com

SALES VOLUME $8.6 Billion (2015)

NET WORTH $1.78 Billion (2015)

STOCK SYMBOL DLTR

BOARD NASDAQ

CREDIT RATING BB+

RATING AGENCY Standard & Poor (S&P)

RANK #180 in Fortune 500 (2016) Actual Property


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Aer ia l Overv iew

NORTH

13,600 VPD1st St

Charles St

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1300 Charles StPark Rapids, MN 56470

Park Rapids Area CenturyElmentary School

Park RapidsSenior High School

CHI St. Joseph’s Health

DOLLAR TREE

BUICK


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Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 1,068 4,818 6,512

2010 Population 1,230 5,186 6,971

2016 Population 1,251 5,475 7,329

2021 Population 1,260 5,557 7,433


H o u s e h o l d s

2000 Households 478 2,085 2,756

2010 Households 580 2,379 3,119

2016 Households 588 2,500 3,270

2021 Households 592 2,536 3,315


H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $49,560 $48,964 $53,161

2016 Median HH Income $39,796 $38,153 $41,040

2016 Per Capita Income $23,294 $22,358 $23,719


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Park Rapids is in Hubbard County, Minnesota.

Park Rapids is located 85 miles west of Fargo, North Dakota and 200 miles north of Minneapolis. It is near Itasca State Park, the source of the Mississippi River, as well as the beginning of the Heartland State Trail. The city was founded in 1890 near the Fish Hook River Rapids and is located along U.S. Highway 71 and Minnesota State Highway 34.

Transportation

Park Rapids and the surrounding Hubbard County area have three major transportation services. Highway 34 was expanded in 2008 into a five-lane route through the city. Downtown Main Avenue has street “center parking”. Highway 71 and Main Street were reconstructed during the summer of 2009. For air travel, Park Rapids is serviced by the Municipal–Konshok Field Airport. The airfield is publicly owned by the City of Park Rapids. Also serving the Park Rapids and Hubbard County area is the Hubbard County Heartland Express bus service.

Things To Do

There are over seventy lakes in the Park Rapids area, which all offer distinct fishing opportunities. Some of the notable nearby lakes include Lake Itasca (headwaters of the Mississippi River) as well as some of the numerous Crow Wing Lakes. Some of the most common fish caught within the area include largemouth, smallmouth and rock bass, bullhead, crappie, northern pike, perch, sunfish and walleye. The Heartland Trail, which is one of the oldest rail-to-trail projects in the United States, begins in Park Rapids. The 49-mile trail is open to horseback riding, hiking, snowmobiling, and biking.

Market Overview - Park Rapids, Minnesota

Actual Property


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