Family Dollar Portfolio of 3 Single Tenant Properties
Midwest
The Opportunity
Summary
- Price: $2,106,000
- Cap Rate: 7.50%
- NOI: $157,916
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a portfolio of three, single tenant properties leased to Family Dollar, (the “Property”). Each of the Family Dollar leases is operated by a corporate entity of Family Dollar Stores, Inc and feature rental increases in their remaining option periods. Together, the Family Dollar properties boast an average tenure of over 16.5 years, thus creating an identity within each of their local communities.
Family Dollar is an American variety store and subsidiary of Dollar Tree, Inc. (NASDAQ: DLTR). Dollar Tree, Inc. ranks at 137 on the Fortune 500 list with an investment grade credit rating of BBB (S&P). The merger of Family Dollar and Dollar Tree in 2015 has allowed the company to grow as the leading discount variety store in the country serving cost-conscious consumers across North America.
As of Fiscal Q2 2023, same-store sales growth for Family Dollar increased 5.8%. During the thirteen weeks ending July 29, 2023, Family Dollar’s net profit increased 24.4% over the same period in the previous year. Family Dollar added 70 new stores bringing the total store count for the segment to 8,299. In September 2023, the company announced the rollout of their new mobile app that will allow shoppers to effortlessly manage coupons and easily locate products. As a whole, Dollar Tree, Inc. reported total net sales for the thirteen weeks ending July 29, 2023 of $7.32 billion with a gross profit of $2.13 billion. The company’s two segments of Family Dollar and Dollar Tree combine for a total store count of 16,476 as of July 29, 2023.
Investment Highlights:
Tenant
Snapshot:
Ownership: Subsidiary Dollar Tree, Inc. (NASDAQ: DLTR)
Credit Rating: BBB (S&P)
Headquarters: Charlotte, NC
# of Locations: 8,299 (as of 7/29/2023)
Family Dollar Stores, Inc. is an American variety store chain headquartered in Charlotte, North Carolina. Since the company’s founding in 1959, they have grown to over 8,200 stores nationwide. Family Dollar stores are conveniently located in neighborhoods, and often in "food deserts" where other stores choose not to locate, providing a convenient, close-to-home option where customers can shop for essentials at affordable prices. Family Dollar stores focus on delivering top value for family essentials with merchandise that generally ranges from $1 to $10. The variety which Family Dollar offers ranges from food and beverages, paper products, health & beauty supplies, and pet food to home products such as housewares, gifts, bed linens, and home décor.
In 2015, Family Dollar was acquired by Dollar Tree, Inc., the largest and most successful single-price-point retailer in North America that ranks 137 on the Fortune 500 list. As of recent years, Dollar Tree had introduced a “combo” store format that brings together the best of Family Dollar and Dollar Tree ending fiscal 2022 with approximately 810 combo stores with hundreds more in the company’s plan for the coming years.
As of Fiscal Q2 2023, same-store sales growth for Family Dollar increased 5.8%. During the thirteen weeks ending July 29, 2023, Family Dollar’s net profit increased 24.4% over the same period in the previous year. Family Dollar added 70 new stores bringing the total store count for the segment to 8,299.
As a company, Dollar Tree Inc. reported total net sales for the thirteen weeks ending July 29, 2023 at $7.32 billion with a gross profit of $2.13 billion. The company’s two segments of Family Dollar and Dollar Tree combine for a total store count of 16,476 as of July 29, 2023.
