offering memorandum · 2019-12-03 · this marketing brochure is not a substitute for your thorough...
TRANSCRIPT
Offering Memorandum
FAMILY DOLLAR PORTFOLIODULCE, FORT SUMNER, MAGDALENA, PENASCO NEW MEXICO
Representative Photo
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding
these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth
herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017
Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
Dulce, NM
ACT ID Y0490224
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N E T L E A S E D D I S C L A I M E R
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will
not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,
warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before
completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &
Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance
of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to
your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal
and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not
a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based
on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any
guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in
whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting
his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a
replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,
expense, or liability arising out of your investigation and/or purchase of this net leased property.
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FAMILY DOLLAR PORTFOLIO | NEW MEXICO
OFFERING SUMMARY
Minimized Rollover Risk - Staggered NN Leases
Stores Benefit from Minimal Competition in the Grocer and Retailer
Markets
Largest National Discount Retailer following Merger with Dollar Tree
INVESTMENT HIGHLIGHTS
Marcus & Millichap exclusively presents a Net-Leased Portfolio of four freestanding Family Dollar Stores, located in various
locations throughout New Mexico. Almost all of the stores are located in areas where Family Dollar is the main provider of daily
necessity consumer goods.
Established in 1959, Family Dollar has been in business for more than 50 years. One of the nations' fastest growing retailers,
Family Dollar offers a compelling assortment of merchandise for the whole family. Dollar Tree, America's leading operator of
discount variety stores announced in July 2015 that it merged with Family Dollar Stores, Inc. creating the leading discount retailer
in North America.
The combines organization will operate more than 13,000 stores in fourty eight states and five Canadian provinces, with sales
exceeding $19 billion annually. This acquisition of the leading fixed price point stores, Dollar Tree and the leading operator of
multi-price point stores, Family Dollar will provide enhanced financial performance and improved growth prospects.
INVESTMENT OVERVIEW
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Representative Photo
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FAMILY DOLLAR PORTFOLIO
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEFOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
PRICING AND VALUATION MATRIX
PROPERTY NAMEFAMILY DOLLAR PORTFOLIO | NEW MEXICO
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PORTFOLIO MAP
TENANT SUMMARY
#
Fiscal Year Ended January 28, 2017
Dollar Tree, Inc.
CREDIT RATING: B1 www.fdreports.com | www.creditntell.com | July 29, 2017
Dollars may not grow on trees, but Dollar Tree stores work hard to bring in the green.
The company operates more than 14,000 Dollar Tree, Deal$, Dollar Bills, and Family
Dollar discount stores in 48 US states and the District of Columbia, and in five
provinces in Canada. Stores carry a mix of housewares, toys, seasonal items, food,
health and beauty aids, gifts, and books. At Dollar Tree shops most goods are priced
at $1 or less while Family Dollar merchandise is usually less that $10. The stores are
located in high-traffic strip centers and malls often in small towns. It purchased fellow
discounter Family Dollar in 2015, bolstering competitive position against Dollar
General.
PRICING AND VALUATION MATRIX
PROPERTY NAMEFOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
PRICING AND VALUATION MATRIX
PROPERTY NAMEFAMILY DOLLAR PORTFOLIO | NEW MEXICO
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TENANT SUMMARY
General Information
Address500 Volvo Pkwy , Chesapeake, Virginia, 23320, United States
Phone 757-321-5000
Website www.dollartree.com
Store Base
Store Count 14,482
TTM Sales $21,205,400,000
Key Personnel
Executive Chariman Bob Sasser
Chief Financial Officer Kevin S. Wampler
President & CEO Gary Philbin
Financial Markets
Stock Ticker DLTR
Current Price $83.70 as of 9/20/17
52 Week High/Low $91.41 / $65.63
DULCE, NEW MEXICO13813 US HIGHWAY 64, DULCE, NM 87528
PROPERTY DESCRIPTION
Year Built
Gross Leasable Area 9,180 Square-Foot
Type of Ownership Fee Simple
Lot Size 0.21 Acre(s)
#
13813 US Highway 64
Dulce, NM 87528
OFFERING SUMMARY
#
LEASE SUMMARY
Tenant Family Dollar
Guarantor Corporate Guaranty
Rental Income $87,000
Rent / SF $9.48
Lease Commencement 4/1/2000
Lease Expiration 1/31/2020
Rent Increases 10 Percent Every Five Years
Lease Term 20 Years
Term Remaining on Lease (Years) 2.3
Renewal Options 5 – Five Year Options
Landlord Responsibilities Roof, Structure and Parking Lot
FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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DULCE OFFERING SUMMARY
* # of Employees based on 5 mile radius
RENT SCHEDULE
YEAR ANNUAL RENT MONTHLY RENT RENT / SF
Current $87,000 $7,250 $9.48
1st Option $95,700 $7,975 $10.42
2nd Option $105,270 $8,773 $11.47
3rd Option $115,797 $9,650 $12.61
4th Option $127,376 $10,615 $13.88
5th Option $140,114 $11,676 $15.26
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
JICARILLA SHOPPING CENTER 250
Jicarilla Apache Nation 151
County of Archuleta 101
Dulce Phs Indian Health Center 100
Jicarlla Child Fmly Edcatn Ctr 78
Best Wstn Jicarilla Inn Casino 71
Jicarilla Super Market 60
Jicarilla Agency 50
Dulce Elementary School 45
Pagosa Springs High School 40
Jicarilla Police Dept 36
Dulce Middle School 35
DEMOGRAPHICS
5-Miles 10-Miles 20-Miles
2016 Estimate Pop 3,194 3,608 5,030
2016 Census Pop 3,079 3,506 4,913
2016 Estimate HH 1,008 1,143 1,824
2016 Census HH 967 1,106 1,775
Median HH Income $38,825 $39,644 $42,718
Per Capita Income $16,088 $16,976 $23,061
Average HH Income $50,246 $52,908 $63,066
DULCE AERIAL PHOTO
FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FORT SUMNER, NEW MEXICO119 SOUTH 6TH STREET, FORT. SUMNER, NM 88119
PROPERTY DESCRIPTION
Year Built
Gross Leasable Area 8,008 Square Feet
Type of Ownership Fee Simple
Lot Size 0.18 Acre(s)
#
119 S. 6th Street
Fort Sumner, NM 88119
OFFERING SUMMARY
#
LEASE SUMMARY
Tenant Family Dollar
Guarantor Corporate Guaranty
Rental Income $74,000
Rent / SF $9.24
Lease Commencement 11/4/2009
Lease Expiration 6/30/2020
Rent Increases 10 Percent Every Five Years
Lease Term 10 Years
Term Remaining on Lease (Years) 2.3
Renewal Options 6 – Five Year Options
Landlord Responsibilities Roof, Structure and Parking Lot
FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FORT SUMNER OFFERING SUMMARY
* # of Employees based on 5 mile radius
RENT SCHEDULE
YEAR ANNUAL RENT MONTHLY RENT RENT / SF
Current $74,000 $6,167 $9.24
1st Option $81,400 $6,783 $10.16
2nd Option $89,540 $7,462 $11.18
3rd Option $98,494 $8,208 $12.30
4th Option $108,343 $9,029 $13.53
5th Option $119,178 $9,932 $14.88
6th Option $131,096 $10,925 $16.37
NOTES
Percentage Rent: Years 1-10 3 Percent Over $2,466,667. Option 1: 3 Percent Over $2,713,333. Option 2: 3 Percent Over $2,984,667. Option 3: 3 Percent Over $3,283,133. Option 4: 3 Percent Over $3,611,433.
Option 5: 3 Percent Over $3,972,600. Option 6: 3 Percent Over $4,369,867.
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
Nick Griego & Sons Cnstr Inc 78
Ft Sumner High School 50
Fort Sumner Fire Department 36
Ft Sumner Municipal Schools 35
Fort Sumner Elementary School 32
Debaca Family Practice Clinic 24
County of De Baca 23
Fort Sumner City Hall 20
Moyer Masonry 20
Sheriffs Office 20
City Hall 19
De Baca Family Practice 18
DEMOGRAPHICS
5-Miles 10-Miles 20-Miles
2016 Estimate Pop 8 559 1,730
2016 Census Pop 9 615 1,889
2016 Estimate HH 5 197 762
2016 Census HH 6 218 838
Median HH Income $42,094 $41,901 $34,576
Per Capita Income $34,979 $19,064 $22,600
Average HH Income $54,260 $54,160 $51,139
#
OFFERING SUMMARY
#
FAMILY DOLLAR
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FAMILY DOLLAR
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FORT SUMNER OFFERING SUMMARY
FORT SUMNER AERIAL PHOTO
FAMILY DOLLAR
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MAGDALENA, NEW MEXICO907 WEST 1ST STREET, MAGDALENA, NM 87825
PROPERTY DESCRIPTION
Year Built
Gross Leasable Area 8,000 Square Feet
Type of Ownership Fee Simple
Lot Size 0.18 Acre(s)
#
907 W 1st Street
Magdalena, NM 87825
OFFERING SUMMARY
#
LEASE SUMMARY
Tenant Family Dollar
Guarantor Corporate Guaranty
Rental Income $72,000
Rent / SF $9.00
Lease Commencement 6/1/2009
Lease Expiration 1/31/2020
Rent Increases 10 Percent Every Five Years
Lease Term 10 Years
Term Remaining on Lease (Years) 2.4
Renewal Options 5 – Five Year Options
Landlord Responsibilities Roof, Structure and Parking Lot
FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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MAGDALENA OFFERING SUMMARY
RENT SCHEDULE
YEAR ANNUAL RENT MONTHLY RENT RENT / SF
Current $72,000 $6,000 $9.00
1st Option $79,200 $6,600 $9.90
2nd Option $87,120 $7,260 $10.89
3rd Option $95,832 $7,986 $11.98
4th Option $105,415 $8,785 $13.18
5th Option $115,956 $9,663 $14.49
* # of Employees based on 5 mile radius
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
Alamo Navajo School Board Inc 250
National Radio Astrnmy Obsrvtr 250
Socorro General Hospital 132
Magdalena School District 78
Good Samaritan Soc - Socorro 74
Alamo Navajo Community School 73
Magdalena Municipal 37
Socorro Mental Health Inc 32
A-1 Quality Redi-Mix Inc 30
Magdalena Ranger District 29
Bureau of Indian Affairs 24
M A C D C 22
DEMOGRAPHICS
5-Miles 10-Miles 20-Miles
2016 Estimate Pop 1,042 1,109 4,863
2016 Census Pop 1,082 1,151 5,003
2016 Estimate HH 427 458 1,799
2016 Census HH 450 482 1,870
Median HH Income $32,090 $33,080 $36,177
Per Capita Income $19,093 $19,780 $19,451
Average HH Income $46,611 $47,892 $52,336
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OFFERING SUMMARY
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FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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MAGDALENA OFFERING SUMMARY
MAGDALENA AERIAL PHOTO
FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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PENASCO, NEW MEXICO15052 HIGHWAY 75, PENASCO, NM 87553
PROPERTY DESCRIPTION
Year Built
Gross Leasable Area 9,180 Square Feet
Type of Ownership Fee Simple
Lot Size 1.38 Acres
#
15052 Highway 75
Penasco, NM 87553
OFFERING SUMMARY
#
LEASE SUMMARY
Tenant Family Dollar
Guarantor Corporate Guaranty
Rental Income $91,267
Rent / SF $9.94
Lease Commencement 9/1/2009
Lease Expiration 1/31/2020
Rent Increases 10% Every Five Years
Lease Term 10 Years
Term Remaining on Lease (Years) 2.4
Renewal Options 5 – Five Year Options
Landlord Responsibilities Roof, Structure and Parking Lot
FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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PENASCO OFFERING SUMMARY
RENT SCHEDULE
YEAR ANNUAL RENT MONTHLY RENT RENT / SF
Current $91,267 $7,606 $9.94
1st Option $100,393 $8,366 $10.94
2nd Option $110,433 $9,203 $12.03
3rd Option $121,476 $10,123 $13.23
4th Option $133,624 $11,135 $14.56
5th Option $146,986 $12,249 $16.01
NOTES
Percentage Rent: Years 1-10 3 Percent Over $2,500,000. Option 1: 3 Percent Over $2,750,000. Option 2: 3 Percent Over $3,025,000. Option 3: 3 Percent Over $3,327,500. Option 4: 3 Percent Over $3,660,250.
Option 5: 3 Percent Over $4,026,275.
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
US Post Office 771
HOLY CROSS HOSPITAL 344
Knights of Templer 200
Carson National Forest 171
El Monte Sagrado Resort & Spa 150
Youth & Family Center 150
Taos Mountain Casino 130
Taos Ski & Boot Company 120
College and Career High School 119
United States Outfitters Inc 110
Taos Living Ctr A Ltd Lblty Co 100
Historic Taos Inn 99
DEMOGRAPHICS
5-Miles 10-Miles 20-Miles
2016 Estimate Pop 1,959 4,988 33,578
2016 Census Pop 2,013 5,137 34,348
2016 Estimate HH 799 2,087 14,572
2016 Census HH 832 2,166 15,031
Median HH Income $26,141 $30,874 $35,279
Per Capita Income $16,130 $18,197 $22,121
Average HH Income $39,478 $43,099 $50,609
#
OFFERING SUMMARY
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FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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PENASCO OFFERING SUMMARY
PENASCO AERIAL PHOTO
FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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MARCUS & MILLICHAP CAPITAL CORPORATION
CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.
We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.
Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.
National platform
operating
within the firm’s
brokerage
offices
$5.1 billion
total national
volume in 2016
Access to
more capital
sources than
any other firm
in the industry
Optimum financing solutions
to enhance value
Our ability to enhance
buyer pool by expanding
finance options
Our ability to enhance
seller control
• Through buyer
qualification support
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
set of debt/equity sources
and presenting a tightly
underwritten credit file
WHY MMCC?
Closed 1,651
debt and equity
financings
in 2016
ACQUISITION FINANCING
FAMILY DOLLAR PORTFOLIO | NEW MEXICO
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