Family Dollar - Offering Memorandum

Family Dollar - Offering Memorandum

Family Dollar 1415 Ringgold Street | Brownsville, Texas Offering Memorandum Representative Photo

Family Dollar - Offering Memorandum

Confidential Disclaimer 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 Offered Exclusively by 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”).

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 this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC.

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 the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be 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 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 accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.

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 written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available.

The terms and conditions described herein are subject to change without notice.

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.

Jason W. Powell, CCIM Director jpowell@stanjohnsonco.com P: +1 404.823.6754 Tyler Molleson Associate tmolleson@stanjohnsonco.com P: +1 404.823.6760

Family Dollar - Offering Memorandum
  • Family Dollar
  • Brownsville, TX 2 The Offering 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 located a few hundred feet from Interstate 69 and just blocks from downtown Brownsville. 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 responsibilities of roof and structure. In addition to the primary term, the subject lease offers three (3), five (5) year option periods with rent increases. The subject property is strategically located in Brownsville and is situated to serve the tenant’s target demographic. 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 Purchase Price: $1,337,837 Cap Rate: 7.40% Property Summary Address: 1415 Ringgold Street | Brownsville, TX 78520 Building Size (SF - 11,529 SF Land Area (Acres ___ 28
    Acres Ownership Interest: Fee Simple Encumbrances: None, Delivered Free & Clear NOI: $99,000 Family Dollar Credit Strength The subject property is currently leased to Family Dollar Stores, Inc. (S&P: BBB-). Family Dollar was just acquired by Dollar Tree for $9.2 Billion and should secure the brand’s future for years to come. Value-Add Opportunity The property has a current “in-place” NOI of $99,000 from the Family 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 $21,769 to the NOI bringing it to $120,769. Our asking price represents a 7.40% cap to current in-place NOI and an 9.03% pro-forma cap rate to “stabilized NOI”. Tax Free State Texas is one of the seven states with no income tax, providing great benefit to the investor. Strong Population/Economic Growth Based on competition in the submarket, with over 85,000 people within three (3) miles of the site, this store should fill a need in the trade area. Furthermore, population within three (3) miles is expected to grow at around 4% annually between 2014 - 2019. With the recent SpaceX pad announcement, Brownsville, TX could become the next Cape Canaveral for the country’s space exploration. Corporate Guarantee Family Dollar is one of the fastest growing discount chains in the United States and currently operates more than 13,000 stores in 48 states, since being acquired by Dollar Tree in 2015.
Family Dollar - Offering Memorandum
  • Family Dollar
  • Brownsville, TX 3 Investment Summary Investment Details Square Footage: 11,529 SF Occupancy: 82.83% Offering Price: $1,414,285 In-place Net Operating Income: $99,000 In-place Cap Rate: 7.40% Value-Add Opportunity Pro-Forma Rent/SF (Market): $11.00 x Available SF: 1,979 SF Additional NOI: $21,769 + In-place NOI: $99,000 Potential NOI: $120,759 Pro-forma Cap Rate: 9.03% Lease Abstract 1415 Ringgold Street | Brownsville, TX Property Type: Dollar Store Tenant: Family Dollar Guarantor: Family Dollar (NYSE: FDO) Building Size - 11,529 SF Land Size - 0.28 Acres Year Constructed: 1991/2013 Net Operating Income: $99,000 Primary Term: Ten (10) years Term Commencement: July 1, 2013 Term Expiration: June 30, 2023 Options: Three (3), five (5) year options with rent increases Lease Type: NN - Roof & structure Year Annual Rent Monthly Rent 3 (Current) $99,000 $8,250 4 - 10 $99,000 $8,250 Rent Schedule Actual Location
Family Dollar - Offering Memorandum
  • Family Dollar
  • Brownsville, TX 4 Tenant Overview Representative Photos Family Dollar Stores, Inc. (NYSE: FDO) is a U.S. chain of variety stores headquartered in Matthews, North Carolina. Family Dollar was founded in 1959 by Leon Levine, a 21-year-old entrepreneur. In November of that 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 and 1965, respectively. During the 1960s, the store company was largely a southern United States operation. By 1969, there were fifty stores in Charlotte alone.

Family Dollar is not a true “dollar store” in the strict sense; while there are many items available for $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 assorted household products. 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 provinces, with sales exceeding $19 billion annually and over 145,000 associates.

The organization is now the largest discount retailer in North America.

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. Tenant Profile Company: Family Dollar Stores, Inc. Number of Locations: 8,200 Credit Rating: S&P: BBB - Stock Symbol: FDO Exchange: NYSE 2014 Year End Revenue: $10.49 Billion 2014 Year End Net Income: $284.5 Million 2014 Year End Net Worth: $1.66 Billion Tenant Business: Discount, Variety store Founded: 1959 Headquartered: Matthews, North Carolina Website: www.familydollar.com

Family Dollar - Offering Memorandum

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. 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 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 fulltime 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.

Location Overview University of Texas at Brownsville SpaceX Site Port of Brownsville Keppel Yard

Family Dollar - Offering Memorandum

DOWNTOWN BROWNSVILLE GLADYS PORTER ZOO GLADYS PORTER HIGH SCHOOL US -77 & US -83 (34 ,50 2 VP D) BOCA CHICA BLVD 14TH STREET INTERNATIONAL BLVD (31,344 VPD) N ST JOSEPH ACADEMY FIRST BAPTIST CHURCH JT CANALES ELEMENTARY SCHOOL

Family Dollar - Offering Memorandum
  • Family Dollar
  • Brownsville, TX 7 N
Family Dollar - Offering Memorandum
  • Family Dollar
  • Brownsville, TX 8 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 - Offering Memorandum

going beyond 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. Offered Exclusively by 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 Jason W. Powell, CCIM Director jpowell@stanjohnsonco.com P: +1 404.823.6754 Tyler Molleson Associate tmolleson@stanjohnsonco.com P: +1 404.823.6760

EQUAL HOUSING OPPO RTU N ITY Approved by the Texas Real Estate Commission for Voluntary Use efore working with a real estate broker, you should Bknow 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 the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing.

A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License 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 treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid.

You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960. 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 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 01A TREC No.

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