INVESTMENT HIGHLIGHTS
Dollar Tree Recent Lease Extension and Strong Historical Occupancy
In 2022, Dollar Tree extended its lease 5 years at a 10% rent increase and added two additional 5-year options at 10% rent increases, showing strong commitment to the site. Dollar Tree has long-term historical occupancy at this property, having been a tenant since 2001.
A-1 Market Early Lease Extension with 17% Rent Increase
A-1 Market recently exercised their first 5-year option early at a 17% rent increase and 1% annual rent increases, showing strong commitment to the site. A-1 Market is a successful convenience store chain, operating 10 locations in the state of Oregon, and has been a tenant since 2021.
NNN Leases / Minimal Landlord Responsibilities
Both tenants operate on NNN leases, reimbursing the Landlord for their pro rata share of CAM expenses, insurance, and property taxes.
Dollar Tree Strong Corporate Guarantee by Investment Grade Tenant
The Dollar Tree lease is guaranteed by Dollar Tree Stores, Inc. (S&P: BBB). Dollar Tree is a publicly traded company (NYSE: DLTR) owning both Dollar Tree and Family Dollar brands. It is ranked 137 on the Fortune 500 with over 16,000 stores in the lower 48 US states, and is also established in 5 Canadian provinces.
A-1 Market Company and Personal Guarantees
The A-1 Market lease is guaranteed by the operating entity that operates all 10 of its locations and also features a Personal Guaranty from both of the owners.
STRONG RENT GROWTH (11.3%) MARKET
Grants Pass retail market rents have increased 11.3% over the past three years, per CoStar.
High-Growth Population Market
The Property is located in the rapidly growing Grants Pass market and benefits from a population of over 55,000 residents within a 5-mile radius. Since 2010 the population has grown nearly 11% within a 5-mile radius and over 9% within a 1-mile radius.
Essential, Recession Proof Anchor Tenant
In 2024, Dollar Tree was on track to open more than 1,300 new locations, as it sought to capitalize on shoppers trading down to hunt for bargains amid high inflation. In addition to the 1,300 new openings, Dollar Tree renovated an estimated 1,000 stores and took on “numerous distribution center projects,” according to Chief Financial Officer Jeff Davis. Discount Stores thrive in tougher economic times and Dollar Tree was deemed an “Essential Tenant” through Covid-19 related shelter-in-place orders.
Listing Agents:
CLAYTON J. BROWN
andrew hanson
541.690.4315
andrew.hanson@marcusmillichap.com
