Investment Overview

Marcus & Millichap is pleased to present the Family Dollar Tree located in Redfield, South Dakota. The 10,500 square foot Family Dollar Tree combination store will be build-to-suit construction in 2023 and is part of the company’s new format specifically targeted for small towns. It was initially tested in 30 markets, and because of the incredible feedback and performance, the company has identified 3,000 market for their “Two Great Stores, 1 Big Deal!” Family Dollar Tree currently operates over 250 locations with plans to open over 400 more in 2022. The Tenant signed an original 10-year lease with no early termination clauses leaving the full lease term remaining for an incoming investor. The lease is considered modified triple net, with the landlord being responsible for the roof and structure and the tenant reimbursing for all expenses including the common area maintenance, taxes, and property insurance. There are five, five-year renewal options available, each of which having a rent increase scheduled. Dollar Tree was founded in 1986 and in 34 years has grown to more than 15,115 locations across 48 states with plans to grow their store count by over 600 stores in 2021. The company is publicly traded on the NASDAQ under the ticker “DLTR” and carries an investment grade credit rating of “BBB-” from S&P. In its 1Q22 Quarterly Earnings Report, Dollar Tree reported record earnings per share and same store sales increase of 4.4 percent.