Dollar Tree: Quitman, GA
- Four-way signalized hard-corner location across the street from a Harveys Supermarket anchored shopping center
- Located in a Qualified Opportunity Zone - specific areas designated by the state to promote and enhance real estate development by potentially allowing investors to defer or eliminate federal taxes on capital gains(1)
- Potential 10.80% average cash-on-cash return should Dollar Tree exercise all of their renewal option periods (2)
- Dollar Tree, Inc. (NASDAQ: DLTR) is a Fortune 200 company with over 15,115 locations / Investment grade credit rating of BBB- / Stable from Standard & Poor’s.(3)
- New 10-year corporate lease from Dollar Tree Stores, Inc. (Part of Dollar Tree, Inc., a Fortune 200 Company with $22.8 billion in sales and a $5.6 billion net worth)(3)
*Five, 5-year renewal option periods each with fixed rent increases
The subject property is a single-tenant, freestanding Dollar Tree situated at a four-way signalized hard-corner aross from a Harveys Supermarket anchored shopping center. It has direct frontage along West Screven Street, the city’s main commercial retail corridor. The subject property is surrounded by several national retailers including McDonald’s, Burger King, O’Reilly Auto Parts, Subway, and a Marathon gas station. Quitman is part of the Valdosta MSA, which is home to over 139,588 residents.
The subject property is situated in a Qualified Opportunity Zone. In 2017, a federal tax bill was passed to encourage real estate development in certain regions across the U.S. Investors who incur a capital gain may be allowed to defer or eliminate federal taxes by investing in a Qualified Opportunity Zone through a special Opportunity Zone fund. The overall goal of a Qualified Opportunity Zone is to promote new investment in specific areas, thereby accelerating real estate development in those communities.(1)
Dollar Tree operates under a new, 10-year corporate lease with five, five-year renewal option periods. The each renewal option period has fixed rent increases approximately 5%, allowing an investor to potentially achieve an average cash-on-cash return of 10.80% should Dollar Tree exercise all their options.(2) The lease is double net with minimal landlord responsibilities, which include (but are not limited to) the building’s roof, structure, parking lot and HVAC (replacement only). The lease comes with a corporate guarantee from Dollar Tree Stores, Inc. In March 2008, the company created Dollar Tree, Inc., a new parent holding company, which Dollar Tree Stores, Inc. operates under.(3)
Dollar Tree, Inc.(3) is a Fortune 200 publicly traded (NASDAQ: DLTR) company and has an investment grade credit rating of BBB- / Stable by Standard & Poor’s. In July 2015, Dollar Tree, Inc. completed the acquisition of Family Dollar Stores Inc., creating the largest dollar store chain nationwide with 15,115 locations generating over $22.8 billion annually. The company now operates across 48 states and 5 provinces in Canada, employing over 176,000 people. The company was founded in 1986 and is based in Chesapeake, Virginia.
(1)Marcus & Millichap and its affiliates make no represenations or warranites, expiressed or implied as to the accuracy of any information regarding investing in a Qualified Opportunity Zone. Investors must contact their CPA or tax advisor to understand the benefits of investing in a Qualified Opportunity Zone and conduct their own due diligence.
(2)Average cash-on-cash return mentioned above is an estimate only and subject to change depending on available financing. It does not take into consideration potential repair and maintenance expenses. There is no guarantee that the Tenant will exercise any of their renewal option periods. Buyer must conduct their own due diligence.
(3) Dollar Tree Stores, Inc. is a part of Dollar Tree, Inc. Additional information can be found at http://www.dollartreeinfo.com/investors/financial/. Buyer must conduct their own due diligence to verify the accuracy of this information and all information contained within this marketing package.
GA Broker of Record: Michael Fasano
License: 352663
