DOLLAR TREE & MAURICES - 3050A & 3050B S HIGHWAY 169 GRAND RAPIDS, MN - OFFERING MEMORANDUM
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OFFERING
MEMORANDUM
DOLLAR TREE & MAURICES
3050A & 3050B S HIGHWAY 169
GRAND RAPIDS, MN
TABLE OF
CONTENTS
DOLLARTREE&MAURICES
01 02 03
FINANCIAL INVESTMENT MARKET
OVERVIEW OVERVIEW OVERVIEW
PAGES 03-07 PAGES 08-14 PAGES 15-17
ACT ID: ZAB0260097
FINANCIAL OVERVIEW SECTION 1 01 FINANCIAL OVERVIEW
EXECUTIVE
SECTION 1
SUMMARY
DOLLAR TREE & MAURICES
3050A & 3050B S Highway 169, Grand Rapids, MN 55744
PRICING
Price: $1,880,000
Cap Rate: 8.50%
Gross Leasable Area: 13,000 PRICE: CAP RATE: NOI:
Price Per Square Foot: $144.62 $1,880,000 8.50% $159,761
Year Built: 2013
Lot Size: 1.58 Acres
INVESTMENT HIGHLIGHTS SQUARE FEET: LEASE TYPES: ACREAGE:
➢ Offering Includes Standalone Dollar Tree (NASDAQ: 13,000 Triple Net 1.58 Acres
“DLTR”) & Maurices (NASDAQ: “ASNA” – Parent Co)
➢ Walmart Supercenter Outparcel
DEMOGRAPHICS
➢ Built in 2013 | Build-to-Suit Construction for both Dollar 1-Mile 3-Mile 5-Mile
Tree & Maurices
Population 401 7,819 15,469
Repeat clients
➢ Zero Lease Rollover until April 2023 Average HH
Decades worth of experience $67,202 $59,879 $63,280
Income
➢ Close Proximity to Major
Highly-focused Retailers like Target, The
specialization
Home Depot & Walmart
4
OPERATING
SECTION 1
SUMMARY
SUMMARY PROPOSED NEW FINANCING
Price: $1,880,000 Loan Amount: $1,316,000
Down Payment (30%): $564,000
Terms 4.25% Interest Rate
Current CAP: 8.50%
Cash on Cash: 12.70% 25 Year Amortization
Square Feet 13,000
5 Year Term
Cost per Square Feet: $144.62
Debt Coverage Ratio: 1.87 Monthly Payment: $7,129.27
Year Built: 2013 Annual Payment: $85,551.28
OPERATING DATA EXPENSES
Scheduled Gross Income: $164,500 Taxes: $2.81 $36,556
CTI Reimbursements: $58,420 Insurance: $0.31 $4,072
Admin Reimbursements: $1,380 CAM: $1.41 $18,303
Total Income: $224,299 Management: 2.50% $5,607
Vacancy Factor: $- TOTAL EXPENSES: $64,538
Gross Operating Income: $224,299
Per RSF: $4.96
Less Expenses: $64,538
Net Operating Income: $159,761 8.50%
Capital Reserves: $2,660 ($.20)
Loan Payments: $85,551
Pre Tax Cash Flow: $71,610 12.70%
Plus Principal Reduction: $30,205
Total Return Before Taxes: $101,815 18.05%
5
RENT
SECTION 1
ROLL
New
Sq. % of Lease Lease Monthly Annual Annual Bump Annual Lease Option
Suite Tenant Rent
Ft. Total Start End Rent Rent PSF Date Reimb. Type Terms
PSF
A Dollar Tree 8,000 61.54% 2/3/2013 4/30/2023 $7,666 $92,000 $11.50 $36,429 NNN (2) 5-Yr
Option I 6/8/2023 $12.00
Option II 6/8/2028 $12.50
B Maurices 5,000 38.46% 1/31/2013 6/30/2023 $6,041 $72,500 $14.50 $23,369 NNN (4) 5-Yr
Option I 7/1/2023 $15.00
Option II 7/1/2028 $15.50
Option III 7/1/2033 $16.00
Option IV 7/1/2038 $16.50
Current Totals 13,000 100% $13,708 $164,500 $12.65 $59,799
Occupied 13,000 100% $13,708 $164,500 $12.65 $59,799
Vacant
6
TENANT
SECTION 1
PROFILES
Dollar Tree, Inc. is an American chain of discount variety Maurice's is a part of Ascena Retail Group, Inc., through its
stores that sells items for $1 or less. Headquartered in subsidiaries, operates as a specialty retailer of clothing, shoes,
Chesapeake, Virginia, it is a member company of Fortune and accessories for missy, plus-size women, and tween girls in
500 and operates 15,155 stores throughout the 48 contiguous the United States, Canada, and Puerto Rico. The company
U.S. states and Canada. Its stores are supported by a operates through five segments: Justice, Lane Bryant,
nationwide logistics network of eleven distribution centers. Maurice's, Dressbarn, and Catherine's. The company operates
The company operates one-dollar stores under the names of more than 4,900 stores. It also offers its products online. The
Dollar Tree and Dollar Bills. The company also operates multi- company was formerly known as Dress Barn, Inc. and changed
price-point variety chains under the names Deals and Family its name to Ascena Retail Group, Inc. in January 2011. Ascena
Dollar. Retail Group, Inc. was founded in 1962 and is headquartered in
Mahwah, New Jersey.
Headquarters: Chesapeake, Virginia Headquarters: Duluth, Minnesota
No. of Locations: 15,155+ No. of Locations: 950
Symbol: NASDAQ: “DTR” Symbol: NASDAQ: “ASNA”
Website: www.dollartree.com Website: www.maurices.com
Square Footage: 8,000 Square Footage: 5,000
Lease Start: February 3, 2013 Lease Start: January 31, 2013
Lease Expiration: April 30, 2023 Lease Expiration: June 30, 2023
7
INVESTMENT OVERVIEW SECTION 2 02 INVESTMENT OVERVIEW
INVESTMENT
OVERVIEW
INVESTMENT HIGHLIGHTS INVESTMENT WRITE-UP
➢ Positioned as a Walmart Supercenter Marcus & Millichap is pleased to present this standalone Dollar Tree and
standalone Maurices located in Grand Rapids, Minnesota.
SECTION 2
Outparcel
Grand Rapids is the county seat of Itasca County and is named for the
➢ Offering Includes Standalone Dollar Tree & 3.5-mile long local rapids in the Mississippi River. Grand Rapids provides
Standalone Maurices small town charm whilst surrounding its residents and visitors with
Minnesota’s nature. Set apart by a progressive attitude and abundant
resources, Grand Rapids is the emerging economic focus of Northcentral
➢ Modified NNN Leases for Both Tenants | Minnesota. Significant increases in area employment are anticipated
Tenants Reimburse Fully for Share of CTI over the next few years as the largest projects in development come
Expenses online, therefore Grand Rapids is actively seeking new business and
housing partners and assisting the growth of existing enterprises.
➢ Walmart, Target & The Home Depot
Nearby | Close Proximity to Several Major The two buildings cover 13,000 square feet, both constructed as build-to-
suit for each tenant in 2013. There is zero near-term lease rollover as
Retailers
each tenant has substantial lease term left. Dollar Tree and Maurices
both operate under modified triple net leases, with the landlord
➢ Ideally Situated in a Rapidly Growing Trade responsible for the roof and structure and each tenant reimbursing for
Area their pro-rata share of expenses.
Dollar Tree is a Fortune 150 company and operates more than 14,835
locations across 48 states and Canada. In July 2015, Dollar Tree
➢ Zero Lease Rollover Until April 2023 | No
completed its purchase of Family Dollar after a long-awaited
Near-Term Lease Rollover Risk completion of the deal that drew close to a yearlong takeover saga
that included a hostile buyout attempt from another discount retailer,
➢ Sits Less than 2 Miles from the Grand Rapids Dollar General.
Itasca County Airport Maurices’s was a part of Ascena Retail Group, Inc which operates more
Repeat clients than 4,900 stores across five main brands and is publically traded on the
➢ Easy Decades
Highway Access
worth | Adjacent to
of experience NASDAQ under the ticker symbol “ASNA”. However, in late March 2019,
Minnesota’s Highway 169 (“Connector for a majority stake in the Duluth-based retail chain was purchased in a
Highly-focused specialization
the Midwest”) $300 million deal by an affiliate of the London-based private equity firm,
OpCapita LLP. Ascena will maintain a significant minority interest.
9
PROPERTY
PHOTOS
SECTION 2
Repeat clients
Decades worth of experience
Highly-focused specialization
10DRONE
AERIAL
SECTION 2
Repeat clients
Decades worth of experience
Highly-focused specialization
30
19
11MARKET
AERIAL
SECTION 2
Repeat clients
Decades worth of experience
Highly-focused specialization
30
19
12LOCAL
MAP
SECTION 2
1.5 MILES 3.0 MILES 4.2 MILES
Grand Rapids Grand Itasca Clinic Itasca Community
Itasca County & Hospital College
Airport
Repeat clients
Decades worth of experience
Highly-focused specialization
30
19
13REGIONAL
MAP
SECTION 2
Repeat clients
81 MILES
Decades worth of experience 173 MILES 410 MILES
Duluth, Minneapolis, Green Bay,
Highly-focused specialization
Minnesota Minnesota Wisconsin
30
19
14MARKET OVERVIEW SECTION 3 03 MARKET OVERVIEW
MARKET
OVERVIEW
Race and Ethnicity
Population
The current year racial makeup of your selected area is as
In 2019, the population in your selected geography is 15,469.
follows: 93.47% White, 0.91% Black, 0.05% Native
The population has changed by 5.28% since 2000. It is
American and 0.52% Asian/Pacific Islander. Compare
estimated that the population in your area will be 15,768.00 five
these to US averages which are: 70.20% White, 12.89%
years from now, which represents a change of 1.93% from the
Black, 0.19% Native American and 5.59% Asian/Pacific
current year. The current population is 48.70% male and
Islander. People of Hispanic origin are counted
51.30% female. The median age of the population in your area
independently of race.
is 42.08, compare this to the US average which is 37.95. The
population density in your area is 196.33 people per square
People of Hispanic origin make up 1.91% of the current
mile. 2018
SECTION 3
HOUSEHOLDS: year population in your selected area. Compare this to the
Households
US average of 18.01%.
There are currently
Growth 6,558 households in your selected Employment
2018-2023*:
geography. The number of households has changed by 8.33%
6.0%
since 2000. It is estimated that the number of households in In 2019, there are 11,417 employees in your selected area,
your area will be 6,759 five years from now, which represents a this is also known as the daytime population. The 2000
change of 3.06% from the current year. The average household Census revealed that 52.57% of employees are employed
size in your area is 2.24 persons. in white-collar occupations in this geography, and 46.97%
are employed in blue-collar occupations. In 2019,
Income
unemployment in this area is 6.49%. In 2000, the average
time traveled to work was 18.00 minutes.
In 2019, the median household income for your selected
geography is $50,072, compare this to the US average which is
currently $58,754. The median household income for your area
has changed by 48.49% since 2000. It is estimated that the
median household income in your area will be $55,718 five
years from now, which represents a change of 11.28% from
the current year.
Repeat clients
The current year per capita income in your area is $27,490,
Decades
compare worth
this to of experience
the US average, which is $32,356. The current
yearHighly-focused
average household income in your area is $63,280,
specialization
compare this to the US average which is $84,609.
16MARKET
OVERVIEW
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
▪ 2023 Projection Total Average Household Retail
$68,362 $60,661 $63,428
Expenditure
Total Population 416 7,941 15,768
▪ Consumer Expenditure Top 10
▪ 2018 Estimate Categories
Total Population 401 7,819 15,469 Housing $17,465 $15,527 $16,348
▪ 2010 Census Transportation $11,749 $10,543 $10,904
Total Population 404 7,767 15,290 Shelter $10,190 $9,103 $9,528
▪ 2000 Census Food $6,637 $5,469 $5,794
Total Population 375 7,328 14,693 Personal Insurance and Pensions $6,322 $5,622 $5,862
▪ Current Daytime Population Health Care $5,025 $4,318 $4,710
2018 Estimate 491 12,341 23,507 Utilities $3,659 $3,267 $3,433
2018
SECTION 3
HOUSEHOLDS HOUSEHOLDS: 1 Miles 3 Miles 5 Miles Entertainment $3,117 $2,754 $2,910
▪ 2023 Projection Cash Contributions $3,095 $2,980 $3,130
Total Households 146 3,386 6,759
Apparel $1,739 $1,495 $1,605
▪ 2018 Estimate
6.0% POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Total Households 139 3,303 6,558
▪ Population By Age
Average (Mean) Household Size 2.45 2.24 2.24
2018 Estimate Total Population 401 7,819 15,469
▪ 2010 Census
Under 20 25.51% 25.48% 24.32%
Total Households 139 3,235 6,380
20 to 34 Years 17.25% 20.26% 17.27%
▪ 2000 Census
35 to 39 Years 5.80% 6.18% 6.14%
Total Households 128 3,139 6,054
▪ Occupied Units Growth 40 to 49 Years 11.86% 10.43% 10.84%
2018-2023*:
2023 Projection 146 3,386 6,759 50 to 64 Years 21.42% 19.30% 20.78%
2018 Estimate 158 3,537 7,072 Age 65+ 18.16% 18.35% 20.65%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles Median Age 41.27 38.36 42.08
▪ 2018 Estimate ▪ Population 25+ by Education Level
$150,000 or More 4.39% 3.89% 4.04% 2018 Estimate Population Age 25+ 274 5,305 10,822
$100,000 - $149,000 13.89% 10.87% 12.11% Elementary (0-8) 1.14% 1.70% 1.74%
$75,000 - $99,999 13.56% 11.17% 12.20% Some High School (9-11) 3.76% 3.58% 3.46%
$50,000 - $74,999 22.93% 21.64% 21.71% High School Graduate (12) 29.50% 33.25% 31.10%
$35,000 - $49,999 14.09% 14.02% 14.87% Some College (13-15) 32.42% 27.15% 27.04%
Average Household Income $67,202 $59,879 $63,280 Associate Degree Only 11.16% 10.78% 11.46%
Median Household Income $54,309 $46,721 $50,072 Bachelors Degree Only 15.51% 16.66% 17.38%
Per Capita Income $23,484 $26,081 $27,490 Graduate Degree 5.98% 6.46% 7.52%
17CONFIDENTIALITY & DISCLAIMER
The 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 prepare 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, not 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.
NON-ENDORSEMENT NOTICE
Marcus & 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.
NET LEASED DISCLAIMER
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.DOLLAR TREE & MAURICES | GRAND RAPIDS, MN
Minnesota BOR
Jon Ruzicka
Regional Manager, Minneapolis
Lic: B63379000
ACT ID: ZAB0260102
EXCLUSIVE OFFERING
PRESENTED BY:
OFFICES
NATIONWIDE
www.marcusmillichap.com
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