offering memorandum · 2019-12-03 · this marketing brochure is not a substitute for your thorough...

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. Â© 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

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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.


PROPERTY NAMEFOUR FAMILY DOLLAR PORTFOLIO | NEW MEXICO


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

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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


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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


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FORT SUMNER, NEW MEXICO119 SOUTH 6TH STREET, FORT. SUMNER, NM 88119


Year Built

Gross Leasable Area 8,008 Square Feet



#

119 S. 6th Street

Fort Sumner, NM 88119

OFFERING SUMMARY

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LEASE SUMMARY




Rent / SF $9.24




Lease Term 10 Years





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FORT SUMNER OFFERING SUMMARY


RENT SCHEDULE


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


*

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


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



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OFFERING SUMMARY

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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


Year Built




#

907 W 1st Street

Magdalena, NM 87825

OFFERING SUMMARY

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LEASE SUMMARY




Rent / SF $9.00




Lease Term 10 Years





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MAGDALENA OFFERING SUMMARY

RENT SCHEDULE


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


MAJOR EMPLOYERS


*

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


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



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OFFERING SUMMARY

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MAGDALENA OFFERING SUMMARY

MAGDALENA AERIAL PHOTO


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PENASCO, NEW MEXICO15052 HIGHWAY 75, PENASCO, NM 87553


Year Built



Lot Size 1.38 Acres

#

15052 Highway 75

Penasco, NM 87553

OFFERING SUMMARY

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LEASE SUMMARY




Rent / SF $9.94



Rent Increases 10% Every Five Years

Lease Term 10 Years





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PENASCO OFFERING SUMMARY

RENT SCHEDULE


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


*

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


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



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OFFERING SUMMARY

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PENASCO OFFERING SUMMARY

PENASCO AERIAL PHOTO


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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


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offering memorandum · 2019-12-03 · this marketing brochure is not a substitute for your thorough...

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