SINGLE TENANT NNN LEASE INVESTMENT OFFERING

SINGLE TENANT NNN LEASE
INVESTMENT OFFERING
VICTORVILLE, CA
DOLLAR TREE
1 4 3 2 5 STAT E R O U T E 3 9 5 , V I CTO R V I L L E , C A 9 2 3 0 1
Statement of
D i s c l a i m e r/Co nf i d e nt i a l i t y
The material contained in this Investment Offering
Brochure is furnished solely for the purpose of considering
the purchase of the property within and is not to be
used for any other purpose. This information should not,
under any circumstances, be photocopied or disclosed
to any third party without the written consent of Jones
Lang LaSalle (“JLL”) or Owner, or used for any purpose
whatsoever other than to evaluate the possible purchase
of the Property.
The only party authorized to represent the Property Owner
(“Owner”) in connection with the sale of the Property is
“JLL”, and no other person is authorized by the Owner
to provide any information or to make any representations
other than contained in this Investment Offering Brochure.
If the person receiving these materials does not choose to
pursue a purchase of the Property, this Offering Brochure
must be returned to Jones Lang LaSalle.
Neither “JLL”, nor the Owner make any representation
or warranty, expressed or implied, as to the accuracy or
completeness of the information contained herein, and
nothing contained herein is or shall be relied upon as a
promise or representation as to the future performance of
the Property. This Offering Brochure may include certain
statements and estimates by “JLL” with respect to the
projected future performance of the Property. These
assumptions may or may not be proven to be correct,
and there can be no assurance that such estimates will
be achieved. Further, “JLL” and the Owner disclaim
any and all liability for representations or warranties,
expressed or implied, contained in or omitted from this
Investment Offering Brochure, or any other written or
oral communication transmitted or made available to the
recipient. The recipient shall be entitled to rely solely on
those representations and warranties that may be made
to it in any final, fully executed and delivered Real Estate
Purchase Agreement between it and Owner.
The information contained herein is subject to change
without notice and the recipient of these materials shall not
look to Owner, “JLL”, nor any of their officers, employees,
representatives, independent contractors or affiliates, for
the accuracy or completeness thereof. Recipients of this
Investment Offering Brochure are advised and encouraged
to conduct their own comprehensive review and analysis
of the Property.
This Investment Offering Brochure is a solicitation of
interest only and is not an offer to sell the Property. The
Owner expressly reserves the right, at its sole discretion,
to reject any or all expressions of interest to purchase
the Property and expressly reserves the right, at its sole
discretion, to terminate negotiations with any entity, for
any reason, at any time with or without notice. The Owner
shall have no legal commitment or obligation to any entity
reviewing the Investment Offering Brochure or making an
offer to purchase the Property unless and until the Owner
executes and delivers a signed Real Estate Purchase
Agreement on terms acceptable to Owner, in Owner’s sole
discretion. By submitting an offer, a prospective purchaser
will be deemed to have acknowledged the foregoing and
agrees to release the Owner and “JLL” from any liability
with respect thereto.
To the extent Owner or any agent of Owner corresponds
with any prospective purchaser, any prospective purchaser
should not rely on any such correspondence or statements
as binding Owner. Only a fully executed Real Estate
Purchase Agreement shall bind the property and each
prospective purchaser proceeds at its own risk.
Ta b l e O f C o n t e n t s
Investment Highlights
4
Rent Roll
5
Financial Summary
6
Tenant Overview
7
Visuals
Retailer Aerial
8
Retail Site Plan
9
Site Aerial
10
Site Plan
11
Nearby Retailers
12
Regional Maps
13-14
Demographics
15
Contact
16
The Offering
4
Jones Lang LaSalle is pleased to offer for sale the fee simple interest in a freestanding,
single tenant NNN leased Dollar Tree located within “The Crossroads at 395” shopping
center in Victorville, California. The Wal-Mart Supercenter anchored center is West
Victorville’s newest and most high-profile retail project, encompassing 40 acres with
a GLA of approximately 280,000 square feet of retail. The Crossroads at 395 is
positioned to be the dominant retail center in West Victorville, with retailers that include
Wal-Mart, Walgreens, Dollar Tree, McDonald’s, Panda Express, AutoZone, Sally Beauty,
Great Clips, Domino’s, GNC, El Pollo Loco and Chevron, among others.
The NNN lease is corporately executed by Dollar Tree Stores, Inc., a publicly traded
company (NASDAQ: DLTR), reporting 2013 revenues of $7.84 billion, 2013 equity of
$1.303 billion, a market cap of $11.1 billion, 4,500 store locations and ranked #342
in Fortune 500 (June 2014). Dollar Tree has executed a rare 10 year lease term
with 2 (5-year) options to extend, with scheduled rental increases every 5 years. The
building has been delivered to the tenant and grand opening/lease commencement is
anticipated for October, 2014.
The asset is strategically located, offering excellent exposure along two of the trade
area’s busiest thoroughfares, U.S. Route 395 & State Route 18 (Palmdale Road),
averaging approximately 96,000 vehicles per day. The property is adjacent to an
established and underserved residential base. With 62,321 people with an average
household income of $66,079 within a three-mile radius, the property is well positioned
to take advantage of the trade area’s future residential growth, with approximately
19,000 units in various stages of the entitlement process (City of Victorville, 2014).
Investment Summary
NNN LEASE STRUCTURE AND BEST IN CLASS TENANT
Offering Price: $3,195,500
Cap Rate: 4.75%
Address:
Submarket:
Year Built:
Site Area:
Net Rentable Area:
Percent Leased:
APN:
Ownership:
Investment Highlights
10 year lease guaranteed by Dollar Tree, Inc. (NASDAQ: DLTR)
Dollar Tree reported 2013 revenues of $7.84 Billion, 2013 equity of $1.303 Billion, a market
cap of $11.1 Billion, and is ranked #342 in Fortune 500.
14325 State Rte 395
Victorville, CA 92301
Inland Empire
2014 (Delivered 4Q)
0.79 Acres
9,637 SF
100%
3103-561-042
Fee Simple
PROMINENT RETAIL HUB
The Walmart Supercenter and Walgreens anchored center offers great retail synergy with traffic
in all directions; high traffic counts of 22,000 VPD along State Route 395 and 15,000 VPD
along Palmdale Rd.
QUALITY OF FACILITY
The newly constructed building incorporates high quality finishes and construction materials, as
well as a 20 year roof warranty.
EXPANDED DEMOGRAPHICS
The region experienced a recent 200% growth, and is projected to continue.
Rent Roll
TENANT INFO
Tenant Name
Dollar Tree
Size
9,637 SF
5
RENT SCHEDULE
LEASE TERMS
Lease Starts
10/1/14
Lease Ends
9/31/24
Lease Years
Year 1-5
Year 6-10
Option 1
Option 2
Term
10/1/14-9/31/19
10/1/19- 9/31/24
10/1/24-9/31/29
10/1/29-9/31/34
$/SF
$15.75
$16.75
$18.09
$19.54
LEASE
Monthly Base Rent
$12,648.56
$13,451.65
$14,527.78
$15,692.25
Annual Base Rent
$151,782.75
$161,419.75
$174,333.33
$188,306.98
The information herein has been secured from sources we believe to be reliable; however, +POFT-BOH-B4BMMF makes no guarantees, warranties or representations as to the completeness or
accuracy thereof. The presentation of this property is submitted subject to errors, omissions, changes of price or conditions prior to the sale or lease, or withdrawal without notice.
NNN
6
Financial Summary
OPERATING STATEMENT
LEASE ABSTRACT
Tenant:
DBA:
Property Address:
Year Built:
Building Size:
Lot Size:
Rent Commencement:
Lease Expiration:
Term Remaining:
Rent Increases:
Renewal Options:
Option Increases:
Lease Type:
Roof/Structure:
Parking Lot:
HVAC:
Dollar Tree Stores, Inc.
(Corporate Lease)
Dollar Tree
14325 State Route 395
Victorville, CA 92301
2014
±9,637 SF
±0.79 Acres
10/1/2014
9/31/2024
10 Years
$1.00 PSF on 10/1/2020
Two (2), Five (5) year options
(12 months’ notice required)
8.00% (1st); 8.00% (2nd)
NNN
20 year warranty
Landlord maintains and repairs
Tenant maintains and replaces
Gross Potential Rent:
Vacancy
Effective Gross Income:
Less Expenses
Net Operating Income:
0%
$151,783
$0
$151,783
NNN
$151,783
Note: In addition to base rent Tenant pays a CAM expense of $2.28 PSF which shall increase by a fixed 4%
per annum
Note: Landlord bills Tenant fixed CAM of $2.28 PSF (CAM expense increases annually
by 4%) which are anticipated to exceed actual expenses. These expenses are not
reconciled, which should create positive slippage to Landlord. Taxes and insurance
are reconciled annually, first being paid by Landlord and then reimbursed 100% by
tenant.
The information herein has been secured from sources we believe to be reliable; however, +POFT-BOH-B4BMMF makes no guarantees, warranties or representations as to the completeness or
accuracy thereof. The presentation of this property is submitted subject to errors, omissions, changes of price or conditions prior to the sale or lease, or withdrawal without notice. notice.
Te n a n t O v e r v i e w
7
Dollar Tree is the #1 discount retailer
in America by any measure.
Dollar Tree Inc. is an American chain of discount variety stores that sells every item for $1.00
or less. Dollar Tree Stores, Inc., a publicly traded company (NASDAQ: DLTR) reported 2013
revenues of $7.84 Billion, 2013 equity of $1.303 Billion, a market cap of $11.1 Billion, and
ranked #342 in Fortune 500 (June 2014).
Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a
variety of products including national, regional, and private-label brands. Departments found in a
Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares,
glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap,
stationery, craft supplies, teaching supplies, automotive, electronics, pet supplies, and books.
Dollar Tree is headquartered in Chesapeake, VA, and operates 4,500 stores throughout the 48
continguous states and Canada. Its stores are supported by a nationwide logistics network of
nine distribution centers. As a whole, the discount store sector is extremely strong, with Dollar
General recently being added to the Standard & Poor’s 500.
As of January 2015, market competitor Family Dollar approved a proposed merger with Dollar
Tree for $8.5 billion, rejecting a $9.1 billion offer from rival Dollar General. Following FTC
approval in March 2015, the merger is expected to create 13,000 new stores and generate $18
billion in annual revenue. It also puts Dollar Tree in a position to acquire Family Dollar’s foothold
in rural and urban markets, which would diversify Dollar Tree’s portfolio of primarily suburban
locations. The merger solidifies Dollar Tree as a dominant name in the low-cost retail world, as it
captures the multi-price point business model from Family Dollar. Market response to the merger
has been favorable, with a 3% growth in DLTR shares following the January announcement.
Corporate Information
Ticker Symbol: NASDAQ: DLTR
Founded: 1986, Norfolk, VA
Revenue: $7.84 Billion (FY 2013)
Net Worth: $596.7 Million
Credit: S&P Investment Grade
Employees: 87,400
No. of Locations: 4,500
Website: www.dollartree.com
Tenant Highlights
S&P Rated Investment Grade Credit
4,500 locations in 48 states
$7.84 Billion in Annual Sales
$596.7 Million Net Worth
Ranked #342 in Fortune 500
8
Retail Aerial
CAN
TINA
ST
ALE
MD
RD
HIGH
PAL
WAY
39
5
PAL
ALE
MD
RD
15
0
,00
D
CP
HIGH
WAY
39
5- 2
2,00
0 CP
D
Retail Site Plan
9
LOADING DOOR
Site Aerial
10
Site Plan
11
Nearby Retai lers
12
13
Regional Map
SITE
BARSTOW
ANTELOPE VALLEY
VICTORVILLE
SAN BERNARDINO
LOS ANGELES
RIVERSIDE
14
D o l l a r Tr e e a n d Wa l - M a r t
Lo cations in the H igh De sert
2051 Hwy 18
Apple Valley, CA
10 miles
SITE
12234 Palmdale Rd
Victorville, CA
On Site
14792 La Paz Dr
Victorville, CA
4.8 miles
12160 Hesperia Rd
Victorville, CA
6.5 miles
11896 Amargosa Rd
Victorville, CA
4 miles
13401 Main St
Hesperia, CA
5.8 miles
15759 Main St
Hesperia, CA
7.5 miles
20346 Hwy 18
Apple Valley, CA
10.5 miles
15
Lo c at i o n O ve r v i e w / D e m o g ra p h i c s
Victorville and the Inland Empire:
A New Direction for Retail Growth
The city of Victorville, “Key City of the High Desert,” is located
at the southwestern edge of the Mohave Desert, 90 miles
northeast of Los Angeles. With numerous manufacturing
facilities drawn by the area’s low land coast and superb
accessibility, the High Desert region has enjoyed a boom in
industrial development.
Victorville serves a constantly increasing population, with
19,000 residential units planned. This growth calls for ever
growing retail services, particularly in the western region of the
city where the Crossroads at 395 is located.
2014 POPULATION & INCOME
3 Mile Radius
Population – 63,160
Avg. household income - $69,144
3 MILES
$
5 Mile Radius:
Population – 117,483
Avg. household income - $63,199
$
5 MILES
10 Mile Radius
Population – 284,608
Avg. household income - $62,968
$
10 MILES
16
Broker Information
Geoff Tranchina
Executive Vice President
+1 310 694 3180
Geoff.Tranchina@am.jll.com
Lic: 01435512
Jason Gribin
Vice President
+1 310 694 3192
Jason.Gribin@am.jll.com
Lic: 01819611
Elizabeth Hewson
Senior Associate
+1 310 694 3196
Elizabeth.Hewson@am.jll.com
Lic: 01956413
l
n
w
11620 Wilshire Boulevard | Suite 1150
Los Angeles, CA 90025
jllretail.com
Although information has been obtained from sources deemed reliable, Owner, Jones Lang LaSalle,
and/or their representatives, brokers or agents make no guarantees as to the accuracy of the
information contained herein, and offer the Property without express or implied warranties of any
kind. The Property may be withdrawn without notice. If the recipient of this information has signed
a confidentiality agreement regarding this matter, this information is subject to the terms of that
agreement. ©2015. Jones Lang LaSalle. All rights reserved.