DOLLAR TREE plaza - LoopNetimages4.loopnet.com/d2/zwwsMHa7rcqHZARh9Q-2HFYOLVm... · Dollar Tree recently acquired Family Dollar in 2015, creating the largest dollar store chain nationwide.

G R O U P

BRANDON MICHAELS

5117 Atlantic Avenue, Long Beach, CA 90805

DOLLAR TREEplaza

2

16830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

INVESTMENT ADVISORS

BRANDON MICHAELSSenior Managing Director InvestmentsSenior Director, National Retail GroupTel: (818) [email protected]: CA #01434685

1 2 3 4Executive Summary

InvestmentHighlights

FinancialAnalysis

SalesComparables

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Marcus & Millichap has been selected to exclusively to market for sale Dollar Tree Plaza, a 20,250 square foot retail property ideally situated on 54,450 square feet of land located at 5117 Atlantic Avenue in Long Beach, CA. Dollar Tree Plaza consists of two free-standing buildings, one building consists of 13,000 square feet and is currently occupied by Dollar Tree on a NNN basis through 2025, and the other of which is a 7,250 square foot building that is vacant with a lease that is currently pending. Dollar Tree Plaza is ideally located on Atlantic Avenue, one of the main thoroughfares through Long Beach. The subject property benefits from excellent street frontage on Atlantic Avenue, abundant parking, a dense immediate population, and high daily traffic rates. Dollar Tree Plaza is located in close proximity to major national retailers including Aldi, CVS, Vons, Marshalls, and Jack in the Box.

Dollar Tree recently signed a brand new 10 year lease in January 2015. The lease is backed by a corporate guarantee with Dollar Tree. Dollar Tree has rental increases every five years, and two, five year options to extend the lease. Dollar Tree offers an investor investment grade credit with a Standard & Poors BB+ rating, thus offering an investor a stable and secure income stream. Dollar Tree has over 14,330 locations in US and Canada, and is a publicly traded company trading under DLTR. Dollar Tree recently acquired Family Dollar in 2015, creating the largest dollar store chain nationwide.

Long Beach is the 36th most populous city in the United States and the 7th most populous in California. It is located on the Pacific Coast of the United States, within the Greater Los Angeles area of Southern California. Long Beach is the second largest city in the Los Angeles metropolitan area, and the third largest in Southern California behind Los Angeles and San Diego.

Property Address 5117 Atlantic Avenue, Long Beach, CA 90805

Price $5,800,000

Price/SF (bldg) $286.42

Dollar Tree CAP Rate 3.16% (64% Occupancy)

Fully Stabilized CAP Rate 6.26% (100% Occupancy)

Building SF 20,250 SF

Lot SF 54,450 SF

Dollar Tree SF 13,000 SF (64%)

Year Built 1955

Property Type Retail Plaza

APN 7130-010-017

PROPERTY INFORMATION

EXECUTIVE SUMMARY

TENANTS

LEASE PENDING

BUILDING SF:13,000 SF (64%)

BUILDING SF:7,250 SF (36%)

5117 Atlantic Avenue, Long Beach, CA 90805

DOLLAR TREEplaza

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INVESTMENT HIGHLIGHTS

DOLLAR TREE CORPORATE GUARANTEED LEASE• Dollar Tree just signed a brand new 10 year lease that expires in 2025

• Investment grade credit tenant with a Standard & Poor’s credit rating of BB+

• Rental increases every 5 years

• Largest dollar store chain nationwide

• Dollar Tree now has over 14,330 locations in the United States and Canada following its acquisition with Family Dollar

• Dollar Tree is a publicly traded Fortune 200 company

• Dollar Tree occupies 64% of the property

DENSE LONG BEACH LOCATION• Located on Atlantic Boulevard, one of the main thoroughfares

through Long Beach with 21,180 vehicles per day

• 312 feet of frontage along Atlantic Avenue

• Close proximity to major national retailers including O’Reilly Auto Pars, Aldi, CVS, Vons, Marshalls, and Jack in the Box.

• Easy acess to the 710 Freeway and the 405 Freeway

• Close proximity to the Long Beach Airport, which serves 16 nonstop destinations through four carriers

• Strong demographics and dense population – population of 699,584 within a 5 mile radius

• 54,450 square feet of land (1.25 acres)

5117 Atlantic Avenue

LOCATION5117 Atlantic Avenue, Long Beach, CA 90805

SITEThe subject property is located just north of the northwest corner of Atlantic Avenue and E 51st Street.

SQUARE FOOTAGESThe Subject Property consists of two free-standing buildings totaling 20,250 SF on a 54,450 SF lot. (1.25 acres)

FRONTAGE AND ACCESSApprximately 312 feet of frontage on Atlantic Avenue

YEAR BUILTThe property was built in 1932.

ZONINGThe property is zoned LBCCA.

PARKING45 surface spaces

PROPERTY OVERVIEW

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SITE PLAN

LEASE PENDING

ATLANTIC AVENUE

7,250 SF

13,000 SF

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LINDBERGH MIDDLE SCHOOL

CARMELITOS HOUSING PROJECT

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BARTON ELEMENTARY

SCHOOL

PERRY LINDSEY MIDDLE SCHOOL 5117 Atlantic Avenue, Long Beach, CA 90805

DOLLAR TREEplaza

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FINANCIAL ANALYSIS

TENANT SQUARE FEET

% OF PROPERTY

LEASE START

LEASE EXP OPTIONS RENT PER

MONTHRENT

PER SFSTABILIZED

RENT/MONTHSTABILIZED

RENT/SF LEASE TYPE

Dollar Tree 13,000 64% 1/13/2015 1/13/2025 2 - 5 year $17,552.00 $1.35 - - NNN

Lease Pending 7,250 36% - - - - - $12,687.50 $1.75 NNN

Total 20,250 100%

EXPENSES

$/YEAR $/SF

Taxes 1.20% $69,600 $3.44

Insurance $6,075 $0.30

Business License $700 $0.03

Total $76,957 $3.80/$0.32

INCOME AND EXPENSE

CURRENT PROFORMA

Scheduled Lease Income: $210,624 $362,874

NNN Charges: $49,404 $76,957

Effective Gross Income: $260,028 $439,831

Vacancy: - -

Expenses: $76,957 $76,957

Net Operating Income: $183,071 $362,874

RENT ROLL

GLA BREAKDOWNANNUALIZED OPERATING DATA

Dollar Tree

64%

Lease Pending

36%

Tenant Trade Name Dollar Tree, Inc.

Lease Guarantor Dollar Tree, Inc.

Building Size 13,000 SF

Lot Size 54,450 SF

Net Operating Income $210,324

Lease Type NNN

Rent Increases As per below

Lease Start Date 1/13/2015

Lease Expiration Date 1/13/2025

Options Two, five year options

TENANT SUMMARY

TERM SF/MONTH MONTHLY SF/ANNUAL ANNUAL

Years 1 - 5 $1.35 $17,552 $16.00 $210,624Years 6 - 10 $1.43 $18,649 $17.00 $223,788First Renewal Term $1.52 $19,746 $18.00 $236,952Second Renewal Term $1.60 $20,843 $19.00 $250,116

DOLLAR TREE RENT MONTHLY ANNUAL

Average Rent 9/1/2017-1/31/2025 $18,307 $219,680

Average Projected CAP Rate Dollar Tree Only 3.79%Fully Stabilized 6.04%

LEASE ABSTRACT

RENT TABLE

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TENANT OVERVIEW

Dollar Tree, Inc. is an American chain of discount variety stores that sells items for $1 or less. Headquartered in Chesapeake, Virginia, it is a Fortune 500 company and operates 13,600 stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of eleven distribution centers. The company operates one-dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates a multi-price-point variety chain under Family Dollar. Dollar Tree now operates across 48 contiguous states and 5 provinces in Canada, employing over 145,000 people.

In January 2015, Family Dollar shareholders voted overwhelmingly to approve the $8.5 billion merger with Dollar Tree. In July 2015, Dollar Tree, Inc. completed the acquisition of Family Dollar Stores Inc., creating the largest dollar store chain nationwide with more than 14,334 locations generating over $20.7 billion annually.

Soon after acquiring Family Dollar Stores, Inc. Dollar Tree Inc. announced it would be investing in a new $104.4 million distribution center to broaden its capabilities. In June 2016, the 1.5 million square foot facility opened in Cowpens, South Carolina’s Upstate Corporate Park. The new facility will employ over 350 people and ship merchandise to 500 Dollar Tree stores.

• Net sales increasing 33.7% to $20.7 billion.

• Processing more than 2.2 billion customer transactions.

• Same-store sales, on a constant-currency basis, increasing 1.8% on top of a 2.1% same-store sales increase in the prior year.

• Delivering our 36th consecutive quarter of positive same-stores sales.

• Operating income improving 62.4% to a record $1.70 billion.

• Earnings increasing to a record $3.78 per diluted share.

• Opening 584 new stores, expanding or relocating 184 stores, re-bannering 96 Family Dollar stores to Dollar Tree stores, and increasing selling square footage by 3.7% to 112.4 million square feet. Ending the year with 14,334 stores.

• Successfully completing the planned conversions of our Deals and Family Dollar stores.

• And, at year-end, employing more than 176,000 associates across North America

DOLLAR TREE, INC. 2016 RESULTS

Name Dollar Tree

Type Public

Traded ASNasdaq: DLTRNasdaq-100 ComponentS&P 500 Component

Number of Locations 14,334 locations across US and Canada

Net Sales 20.7 Billion

Number of Employees 176,000

Website www.dollartree.com

Credit Rating BB+

Credit Rating Agency Standard & Poor’s

FORTUNE

2002015 - Dollar Tree

completed acquisiton of Family Dollar and joined

Fortune 200 (ranked #180)

COMPANY OVERVIEW

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SALES COMPARABLES-DOLLAR TREE

Address 8908-8936 Glenoaks Boulevard, Sun Valley

Sales Price $12,125,000 Price/SF $387.73 Bldg SF 31,272 Lot SF 100,262 CAP Rate 4.60%Close of Escrow 10/25/2016

Major Tenant Grocery Outlet, Dollar Tree

Address 811 N. La Brea Avenue, Inglewood

Sales Price $4,125,000 Price/SF $337.53 Bldg SF 12,221 Lot SF 36,691 CAP Rate -Close of Escrow For saleMajor Tenant Dollar Tree

Address 3138-3148 W. Pico Boulevard, Los Angeles

Sales Price $6,712,000 Price/SF $442.28 Bldg SF 15,176 Lot SF 26,293 CAP Rate 5.36%Close of Escrow 5/31/2016Major Tenant Dollar Tree

1 2 3

Address 6104-6108 Sepulveda Boulevard, Van Nuys

Sales Price $4,300,000 Price/SF $490.20 Bldg SF 23,897 Lot SF 84,864 CAP Rate 5.23%Close of Escrow 2/6/2017Major Tenant Staples, Dollar Tree

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SALES COMPARABLES - DOLLAR TREE

2

1

3

4

$337.53

$387.73

$442.28

$490.20

$440.07

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

811 N. La BreaAvenue, Inglewood

8908-8936 GlenoaksBoulevard, Sun Valley

3138-3148 W. PicoBoulevard, Los

Angeles

6104-6108 SepulvedaBoulevard, Van Nuys

Average

SALES COMPARABLES PRICE/SF

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SALES COMPARABLES - LONG BEACH

Address 3849-3853 Atlantic Avenue, Long Beach

Sales Price $2,100,000 Price/SF $333.33 Bldg SF 6,300 Lot SF 19,153 Close of Escrow 1/31/2017

Address 5150 Atlantic Avenue, Long Beach


Address 15 W Del Amo Boulevard, Long Beach


1 2 3

Address 4200 Long Beach Boulevard, Long Beach

Sales Price $3,650,000 Price/SF $1,520.83 Bldg SF 2,400 Lot SF 17,424 Close of Escrow 8/19/2016

Address 1030-1034 E. South Street, Long Beach


4 5

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SALES COMPARABLES - LONG BEACH

1

2

3

4

5

$333.33

$741.16 $830.80

$1,520.83

$476.19

$780.46

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

3849-3853Atlantic Avenue,

Long Beach

5150 AtlanticAvenue, Long

Beach

15 W Del AmoBoulevard, Long

Beach

4200 LongBeach

Boulevard, LongBeach

1030-1034 E.South Street,Long Beach

Average

SALES COMPARABLES PRICE/SF

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LONG BEACH Long Beach is the 36th most populous city in the United States and the 7th most populous in California. It is located on the Pacific Coast of the Unit-ed States, within the Greater Los Angeles area of Southern California. Long Beach is the second largest city in the Los Angeles metropolitan area, and the third largest in Southern California behind Los Angeles and San Diego.

The Port of Long Beach is the second busiest container port in the United States and is among the world’s largest shipping ports. The city also main-tains a progressively declining oil industry with minor wells located both di-rectly beneath the city as well as offshore. Manufacturing sectors include those in aircraft, automotive parts, electronic equipment, audiovisual equip-ment, petrochemicals, precision metals and home furnishings.

Long Beach lies in the southeastern corner of Los Angeles County and bor-ders Orange County. Downtown Long Beach is approximately 22 miles south of Downtown Los Angeles, though the two cities share an official border for several miles.

# EMPLOYER # OF EMPLOYEES

1 Long Beach Unified School District 12,1432 Long Beach Memorial Medical Center 5,1463 City of Long Beach 5,0744 Boeing 4,2035 California State University, Long Beach 2,8816 VA Long Beach Healthcare System 2,4807 Long Beach City College 2,456

8 California State University, Long Beach Foundation 1,420

8 St. Mary Medical Center 1,4209 Molina Healthcare 861

• Long Beach is a major economic center. The Port supports more than 30,000 jobs in Long Beach, 316,000 jobs in Southern California.

• Long Beach is home to California State University, Long Beach, which is the third largest campus of the California State University System

• Long Beach coasts world class attractions like the Long Beach Aqurium of the Pacific, Queen Mary, Grand Prix, and Shoreline Village

• Ranked as one of the Most Bicycle-Friendly Cities in America

• The Long Beach Airport provides commercial service to 12 nonstop destinations

TOP LONG BEACH EMPLOYERS

AREA OVERVIEW

DEMOGRAPHICS

TOP ATTRACTIONS

Aquarium of the Pacific Downtown Long Beach Queen Mary The Pike

1 MILE 3 MILES 5 MILES

2014 Population 47,949 214,807 699,584

2014 Households 14,642 65,967 204,370

2014 Average Household Size 3.25 3.21 3.35

2014 Daytime Population 4,190 82,751 212,817

2014 Owner Occupied Housing Units 41.35% 52.88% 49.12%

2014 Renter Occupied Housing Units 58.65% 47.12% 50.88%

2014 Vacant 2.33% 2.31% 2.40%

2014 Median Household Income $41,564 $51,521 $48,306

2014 Per Capita Income $17,349 $22,062 $19,721

2014 Average Household Income $56,487 $71,372 $66,885

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DOLLAR TREE plaza - LoopNetimages4.loopnet.com/d2/zwwsMHa7rcqHZARh9Q-2HFYOLVm... · Dollar Tree recently acquired Family Dollar in 2015, creating the largest dollar store chain nationwide.

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