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  Family Dollar


Average Property & Lease

Average Sale Price$1,787,489
CAP Rate (12mo avg with 10+ lease term)6.37%
NOI$113,421
$/Square Foot$190.00
Building Size8,500 - 9,500 sf
Lot Size.5 - 1.5 acres
Lease Term15 Years
Escalations10% Every 5 Years
CREDIT RATING
BB+
S&P
Ba2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Dollar Tree recently acquired family Dollar, Inc., now considered the nations largest small-box discount retailer with more than 13,000 stores nationwide. Family Dollar operates under a landlord friendly net lease structure. As a result, freestanding Family Dollar retail stores provide an attractive combination of a long-term lease and a growing market concept that continues to capture value conscious shoppers, which boosts store productivity.

With locations across 45 states, Family Dollar retail stores allow investors to evaluate property in metropolitan and rural settings. The typical Family Dollar net lease is 15 years with successive option periods of 5 years each. The lease also includes rent increases of 10% every five years and during the options. The Family Dollar net lease typically requires minimal responsibilities from the landlord, limited only to roof & structural maintenance while the tenant is responsible for insurance, taxes and all other maintenance and repairs.

Recently, Family Dollar has offered sale-leasebacks with 15-year NNN leases along with build-to-suit programs that are also 15-year absolute NNN lease with 10% rent increase in year 10 or every 5 years.
 

Pros

Cons

  • Corporate Guaranty
  • Increases every 5 years
  • NN Lease; minimal landlord responsibilities
  • Landlord responsibilities for roof and structure
  • Tertiary Market locations
Tenant Description

In November 1959, Leon Levine opened the first Family Dollar store in Charlotte, North Carolina, and was on his way to becoming a retailing legend. Leon Levine believed he could offer his customers a variety of high-quality, good value merchandise for under $2. The concept is a simple one, "The customers are the boss, and you need to keep them happy."

The average size of a Family Dollar store is approximately 7,000 square feet, and most stores are operated in leased facilities. This relatively small footprint allows the Company to open new stores in rural areas and small town, as well as in large urban neighborhoods. A general floor plan used in each of the stores allows customers to easily shop for their favorite products in any Family Dollar store. With the stores uniformly laid out and stocked, store managers are able to focus on providing good customer service. This concept for a self-serve, cash-and-carry neighborhood discount store in low to middle income neighborhoods proves so successful that today Family Dollar is a chain with over 8,000 stores from Maine to California.

In 2015, Family Dollar became a wholly owned subsidiary of Dollar Tree.


FAMILY DOLLAR TREND
CAP Rate

2015 avg: 6.84%

2016 avg: 6.82%

RECENT SALES

Augusta, GA

$1,490,000 | 6.35%

Winter Haven, FL

$1,645,000 | 5.90%

MORE INFO
www.familydollar.com
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