Dollar Tree Stores, Inc. | MERS Goodwill

B+E is pleased to present the opportunity to acquire fee simple interest in a +/- 32,342 SF multi-tenant corporate guaranteed Dollar Tree (S&P BBB-) and MERS Goodwill property. Both tenants have approximately 7 Years of NN lease term remaining. Both Dollar Tree and MERS Goodwill have proven business models that display strength and resilience through recessionary periods. Dollar Tree currently occupies +/- 10,070 SF and MERS Goodwill occupies +/- 18,531 SF with +/- 3,741 of rentable SF currently vacant providing investors the ability to increase their rental income through securing a tenant and stabilizing the asset. The vacant space is currently listed on the market for $12.00 PSF. The subject property was recently constructed in 2017 featuring a modern facade and new roof with a 20-year warranty.

Investment Highlights

STRONG IN-PLACE TENANTS
This investment is corporately secured by strong operating tenants Dollar Tree Inc. and MERS Goodwill. Dollar Tree Inc. is the world’s leading operator of $1 price-point department stores with a 2019 revenue of +/- $22.82 billion. MERS Goodwill operates under one of the largest nonprofit companies (#14 according to Forbes) in the U.S. with over $173.55 million in revenues for 2019.

INVESTMENT GRADE TENANT
Dollar Tree Inc. has an investment grade credit rating of BBB- from S&P.

RECENT CONSTRUCTION | NEW ROOF WITH 20-YEAR WARRANTY
This asset was recently constructed in 2017 featuring a modern facade and new roof with a 20-year warranty.

SURROUNDING RETAIL PRESENCE
The subject tenant is within a dense retail trade area with notable tenants including Walmart, Big Lots, AutoZone, Schnucks, ALDI, etc.

ONE OF THE LARGEST NONPROFIT ORGANIZATIONS IN ST. LOUIS AREA
MERS Goodwill is considered one of the largest nonprofit organizations in the St. Louis area with over 47 career centers, 44 stores, and over 40,000 people served annually.

RECESSION-RESISTANT TENANTS
Discount and thrift stores have historically performed well during times of economic hardship. According to the National Association of Resale & Thrift Shops, thrift stores saw a 67.4% increase in sales QoQ during the year following the 2008 recession. Dollar Tree experienced a 3.7% increase in the number of transactions during the year 2008, according to Dollar Tree’s Vice President of IR, Timothy J. Reid.

POSITIVE Q2 2020 EARNINGS REPORT
Despite the ongoing COVID-19 pandemic, Dollar Tree saw revenue increase 9.4% in the second quarter of fiscal 2020 to $6.29 billion and same-store sales increase 7.2% overall.

POTENTIAL VALUE ADD OPPORTUNITY
There is currently +/- 3,741 of vacant SF within the subject property. Investors will have the opportunity to increase their rental income and real estate value through securing a tenant and stabilizing the property. The vacant space is currently listed on the market for $12.00 PSF.