Family Dollar Offering Memorandum - 1415 Ringgold Street | Brownsville, Texas - Stan Johnson Company
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Representative Photo Offering Memorandum Family Dollar 1415 Ringgold Street | Brownsville, Texas
Confidential Disclaimer
This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished
to you solely for the purpose of your review of the commercial property located at 1415 Ringgold Street,
Brownsville, Texas (the “Property”). The material contained in this Offering Memorandum shall be used for the
purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to
any other person without the express written consent of Stan Johnson Company (“Broker”). Offered Exclusively by
By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information
contained herein and any other information you will be receiving in connection with this transaction, whether
oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the
Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return Jason W. Powell, CCIM
this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Director
Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in jpowell@stanjohnsonco.com
any manner with the foregoing agreements will require the prior written consent of SJC.
P: +1 404.823.6754
This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the
Property and any information obtained from SJC to assist interested parties in making their own evaluation of Tyler Molleson
the Property is offered on a no representation or warranty provision other than customary warranties of title
Associate
and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be
tmolleson@stanjohnsonco.com
all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data
compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to
P: +1 404.823.6760
prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by
independent investigation by prospective investors of those matters which they deem appropriate in evaluating
this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information
set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified
any of the information contained herein or in any of the Materials, and no representations or warranties as to the In Association With:
accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be Brett Butler
inferred. TX Lic #558227
SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or
representations, express or implied, contained herein or for omissions from the Materials or for any other Stan Johnson Company
written, oral or other format of communication transmitted to a prospective investor in the course of its 3340 Peachtree Road NE | Suite 650
evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial Atlanta, Georgia 30326
information contained herein are qualified in their entirety by reference to the actual documents and/or financial 404.823.6360
statements, which upon request may be made available. The terms and conditions described herein are subject
to change without notice. stanjohnsonco.com
This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely
a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does
not constitute an offer of security. The investment described herein may be financed or withdrawn from the
market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it
harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property.
SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the
right to negotiate with one or more prospective investors at any time.
The Offering Purchase Price: $1,337,837
Cap Rate: 7.40%
Stan Johnson Company is pleased to offer for sale to qualified investors,
the opportunity to purchase a Family Dollar property located at 1415
Ringgold Street, Brownsville, Texas (the “Property”). The property is Property Summary
located a few hundred feet from Interstate 69 and just blocks from
downtown Brownsville. Address: 1415 Ringgold Street | Brownsville, TX 78520
Building Size (SF): +/- 11,529 SF
The building is +/- 11,529 square feet on .28 acres of land. Family Dollar is
currently operating under a ten (10) year double-net lease with landlord Land Area (Acres): +/- .28 Acres
responsibilities of roof and structure. In addition to the primary term,
Ownership Interest: Fee Simple
the subject lease offers three (3), five (5) year option periods with rent
increases. The subject property is strategically located in Brownsville and is Encumbrances: None, Delivered Free & Clear
situated to serve the tenant’s target demographic.
NOI: $99,000
The subject building is only 83% leased to Family Dollar, meaning there
is approximately 1,979 square feet of current vacancy to be occupied by
another tenant. Occupation of this available square footage will bring in
additional rental income, increasing cash flow to the investor.
Investment Highlights
Family Dollar Credit Strength Strong Population/Economic Growth
The subject property is currently leased to Family Dollar Stores, Inc. (S&P: Based on competition in the submarket, with over 85,000 people within
BBB-). Family Dollar was just acquired by Dollar Tree for $9.2 Billion and three (3) miles of the site, this store should fill a need in the trade area.
should secure the brand’s future for years to come. Furthermore, population within three (3) miles is expected to grow at
around 4% annually between 2014 - 2019. With the recent SpaceX pad
Value-Add Opportunity announcement, Brownsville, TX could become the next Cape Canaveral for
The property has a current “in-place” NOI of $99,000 from the Family the country’s space exploration.
Dollar lease. In addition to this, there is a 1,979 SF vacant suite next to
Family Dollar. If leased at market rates, this space could add an additional Corporate Guarantee
$21,769 to the NOI bringing it to $120,769. Our asking price represents Family Dollar is one of the fastest growing discount chains in the United
a 7.40% cap to current in-place NOI and an 9.03% pro-forma cap rate to States and currently operates more than 13,000 stores in 48 states, since
“stabilized NOI”. being acquired by Dollar Tree in 2015.
Tax Free State
Texas is one of the seven states with no income tax, providing great benefit
to the investor.
Family Dollar • Brownsville, TX 2
Investment Summary Lease Abstract
Investment Details 1415 Ringgold Street | Brownsville, TX
Square Footage: 11,529 SF Property Type: Dollar Store
Occupancy: 82.83% Tenant: Family Dollar
Offering Price: $1,414,285 Guarantor: Family Dollar (NYSE: FDO)
In-place Net Operating Building Size: +/- 11,529 SF
$99,000
Income:
In-place Cap Rate: 7.40% Land Size: +/- 0.28 Acres
Year Constructed: 1991/2013
Net Operating Income: $99,000
Value-Add Opportunity Pro-Forma
Rent/SF (Market): $11.00 Primary Term: Ten (10) years
x Available SF: 1,979 SF
Term Commencement: July 1, 2013
Additional NOI: $21,769
+ In-place NOI: $99,000 Term Expiration: June 30, 2023
Potential NOI: $120,759 Three (3), five (5) year options with rent
Options:
Pro-forma Cap Rate: 9.03% increases
Lease Type: NN - Roof & structure
Rent Schedule
Year Annual Rent Monthly Rent
3 (Current) $99,000 $8,250
4 - 10 $99,000 $8,250
Actual Location
Family Dollar • Brownsville, TX 3
Tenant Overview
Family Dollar Stores, Inc. (NYSE: FDO) is a U.S. chain of variety stores headquartered in Matthews,
Tenant Profile
North Carolina.
Company: Family Dollar Stores, Inc.
Family Dollar was founded in 1959 by Leon Levine, a 21-year-old entrepreneur. In November of that Number of Locations: 8,200
year, the company’s first store was opened in Charlotte, North Carolina. In 1961, their first store in
South Carolina opened, followed by stores in Georgia and Virginia, which were opened in 1962 Credit Rating: S&P: BBB -
and 1965, respectively. During the 1960s, the store company was largely a southern United States Stock Symbol: FDO
operation. By 1969, there were fifty stores in Charlotte alone.
Exchange: NYSE
Family Dollar is not a true “dollar store” in the strict sense; while there are many items available for 2014 Year End Revenue: $10.49 Billion
$1, there are other price points as well. However, approximately 90% of the products cost less than
$10. With most locations set up like a typical supermarket, the chain deals in food items, clothing and 2014 Year End Net Income: $284.5 Million
assorted household products. 2014 Year End Net Worth: $1.66 Billion
Tenant Business: Discount, Variety store
On July 6, 2015, Family Dollar was acquired by Dollar Tree, Inc. (NASDAQ:DLTR) in a $9.2 billion
transaction. The combined company operates more than 13,000 stores in 48 states and five Canadian Founded: 1959
provinces, with sales exceeding $19 billion annually and over 145,000 associates. The organization is
Headquartered: Matthews, North Carolina
now the largest discount retailer in North America.
Website: www.familydollar.com
On August 30, 2014, in its final annual report as the publicly-traded company FDO, Family Dollar
reported total year end revenues of $10.49 billion, a net income of $284.5 million and a net worth in
excess of $1.66 billion.
Representative Photos
Family Dollar • Brownsville, TX 4
Location Overview
Brownsville is the sixteenth most populous
city in the state of Texas with a population
of 181,860. It is located on the southernmost
tip of Texas on the northern bank of the Rio
Grande. The 2013 U.S. Census Bureau estimate
places the Brownsville-Harlingen metropolitan
area population at 417,276 allotting it the
eighth most populous metropolitan area in the
state of Texas. In addition, the Matamoros–
Brownsville Metropolitan Area with a population
of 1,136,995, allotting it the fourth-largest
metropolitan area along the U.S.-Mexico border. University of Texas at Brownsville Keppel Yard
In recent times, the Port of Brownsville has
become a major economic hub for South Texas,
where shipments from Mexico, other parts of the
United States, and the world arrive. Brownsville’s
economy is mainly based on its international
trade with Mexico through the North American
Free Trade Agreement (NAFTA), and is home
to one of the fastest growing manufacturing
sectors in the nation. In addition, Brownsville’s
climate has often been recognized among the
best pro-business climates in the country.
SpaceX is building the South Texas Launch
Site, a private space launch facility east of
Brownsville on the Gulf Coast. The new launch
facility is expected to draw $85 million to the SpaceX Site
city of Brownsville and eventually generate
approximately $51 million in annual salaries from
some 500 jobs created by 2024. The facility
itself is projected to employ 75 - 100 full-time
workers in the early years with up to 150 full-
time employees/contractors by 2019.
As of October 2014, the University of Texas
at Brownsville and the Brownsville Economic
Development Council (BEDC), in collaboration
with SpaceX, are building radio-frequency (RF)
technology facilities for STARGATE — Spacecraft
Tracking and Astronomical Research into
Gigahertz Astrophysical Transient Emission. The
beach location will also include a 12,000 square
foot tracking center. STARGATE has received
several startup grants including $1.2 million from
the US Economic Development Administration.
Port of Brownsville
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Family Dollar • Brownsville, TX 7
Demographics
1415 Ringgold Street | Brownsville, TX 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
Population
2015 Population 16,167 87,564 174,159
2020 Population 16,086 90,395 182,355
2000-2010 Annual Rate -1.76% -0.20% 1.48%
2010-2015 Annual Rate -0.50% 0.42% 0.77%
2015-2020 Annual Rate -0.10% 0.64% 0.92%
Households
2015 Total Households 4,860 26,959 49,634
2020 Total Households 4,857 27,977 52,140
2000-2010 Annual Rate -0.84% 0.56% 1.96%
2010-2015 Annual Rate -0.43% 0.54% 0.89%
2015-2020 Annual Rate -0.01% 0.74% 0.99%
2015 Average Household Income $27,332 $38,013 $41,488
2015-2020 Annual Rate 2.34% 2.54% 2.61%
2015 Median Household Income $17,578 $24,866 $27,925
2015-2020 Annual Rate 0.45% 2.09% 2.25%
N
Family Dollar • Brownsville, TX 8
Offered Exclusively by
Jason W. Powell, CCIM
Director
jpowell@stanjohnsonco.com going beyond
P: +1 404.823.6754
Tyler Molleson
Associate
tmolleson@stanjohnsonco.com
P: +1 404.823.6760
In Association With:
Brett Butler
TX Lic #558227
Stan Johnson Company
3340 Peachtree Road NE | Suite 650
Atlanta, Georgia 30326
404.823.6360
stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of price or conditions, or withdrawal
without notices.Approved by the Texas Real Estate Commission for Voluntary Use
Texas law requires all real estate licensees to give the following information
about brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage Services
B efore working with a real estate broker, you should
know that the duties of a broker depend on whom
the broker represents. If you are a prospective
seller or landlord (owner) or a prospective buyer or
tenant (buyer), you should know that the broker who lists
Act. The broker must obtain the written consent of each
party to the transaction to act as an intermediary. The
written consent must state who will pay the broker and, in
conspicuous bold or underlined print, set forth the broker’s
obligations as an intermediary. The broker is required to
the property for sale or lease is the owner’s agent. A treat each party honestly and fairly and to comply with
broker who acts as a subagent represents the owner in The Texas Real Estate License Act. A broker who acts
cooperation with the listing broker. A broker who acts as as an intermediary in a transaction:
a buyer’s agent represents the buyer. A broker may act as (1) shall treat all parties honestly;
an intermediary between the parties if the parties (2) may not disclose that the owner will accept a
consent in writing. A broker can assist you in locating a price less than the asking price unless authorized in
property, preparing a contract or lease, or obtaining writing to do so by the owner;
financing without representing you. A broker is obligated (3) may not disclose that the buyer will pay a price
by law to treat you honestly. greater than the price submitted in a written offer
unless authorized in writing to do so by the buyer; and
IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or
The broker becomes the owner’s agent by entering into an any information that a party specifically instructs the
agreement with the owner, usually through a written - broker in writing not to disclose unless authorized in
listing agreement, or by agreeing to act as a subagent by writing to disclose the information or required to do so
accepting an offer of subagency from the listing broker. A by The Texas Real Estate License Act or a court
subagent may work in a different real estate office. A order or if the information materially relates to the
listing broker or subagent can assist the buyer but does condition of the property.
not represent the buyer and must place the interests of With the parties’ consent, a broker acting as an
the owner first. The buyer should not tell the owner’s intermediary between the parties may appoint a person who
agent anything the buyer would not want the owner to is licensed under The Texas Real Estate License Act
know because an owner’s agent must disclose to the and associated with the broker to communicate with and
owner any material information known to the agent. carry out instructions of one party and another person who
is licensed under that Act and associated with the broker
IF THE BROKER REPRESENTS THE BUYER: to communicate with and carry out instructions of the
The broker becomes the buyer’s agent by entering into an other party.
agreement to represent the buyer, usually through a
written buyer representation agreement. A buyer’s agent If you choose to have a broker represent you,
can assist the owner but does not represent the owner you should enter into a written agreement with the broker
and must place the interests of the buyer first. The owner that clearly establishes the broker’s obligations and your
should not tell a buyer’s agent anything the owner would obligations. The agreement should state how and by
not want the buyer to know because a buyer’s agent must whom the broker will be paid. You have the right to
disclose to the buyer any material information known to the choose the type of representation, if any, you wish to
agent. receive. Your payment of a fee to a broker does not
necessarily establish that the broker represents you. If you
IF THE BROKER ACTS AS AN INTERMEDIARY: have any questions regarding the duties and
A broker may act as an intermediary between the parties responsibilities of the broker, you should resolve those
if the broker complies with The Texas Real Estate License questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
Buyer, Seller, Landlord or Tenant Date
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question EQUAL HOUSING
OP P O RT U N I T Y
or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.
01A TREC No. OP-KYou can also read
