Dollar Tree - Hazlet, NJ
Retail | 8.60% CAP | 12,000 SqFt
Marketing description
This is a Double Net, Leasehold Arrangement With the Landlord Responsible for the Roof and Structure.
The Leasehold Structure Offers Significant Tax Advantages, Allowing for 100% Depreciation of the Improvements, Creating Excellent After-tax Returns.
The Landlord Collects an Additional Management Fee From Dollar Tree ($9,103 in 2023), Which is Not Included in the NOI. Inquire With Broker for Details.
Tenant Responsibilities
The Tenant Has 6 Years Remaining on the Current Lease Term, With Three Additional 5-year Renewal Options. Each Renewal Period Includes a $6,000 Rental Increase, Ensuring Future Income Growth.
$1 Had Been Paid for the Full Term of the Ground Lease, With Over 76 Years Remaining on the Term. The Lease is Corporately Guaranteed by Dollar Tree, an Investment-grade Tenant Rated BBB by Standard & Poor's.
Tenant Shall Have an on Going Co-tenancy Right With Home Depot Commencing on 2/1/2027. Inquire With Broker for Details
Taxes Tenant Shall Pay All Real Estate Taxes.
Insurance Tenant Shall Obtain and Keep in Full Force Liability and Property Insurance.
Assignment & Subletting Tenant May Assign or Sublet the Lease With Landlord's Consent but Shall Remain Liable for the Terms of the Lease.
Investment highlights
Dollar Tree, Inc., headquartered in Chesapeake, Virginia, operates over 16,000 stores across the U.S. and Canada, offering a variety of goods priced at $1.25 or less, with some higher-priced items. Founded in 1986, the company went public in 1995 and acquired Family Dollar in 2015, solidifying its position as a major discount retailer. Dollar Tree targets budget-conscious consumers with products like food, household goods, and seasonal items. Dollar Tree has maintained its place as a dominant player in the discount
retail space by leveraging its scale, offering variety and value, and adapting to changing market dynamics.
Dollar Tree recently extended their lease for the third time showing a strong commitment to this location.
Leasehold ownership structure creates excellent after-tax returns due to the owner's ability to depreciate the improvements 100%.
Ideally situated in front of an established Home Depot and in close proximity to CVS, Stop & Shop, Advance Auto, Dunkin' Donuts, IHOP, and 7-Eleven, to name a few
The ground lease has over 71 years remaining on the base term with an annual rent of only $1.
Highly desirable Northern NJ/NYC MSA real estate and demographics, less than 22 miles from Manhattan.
Situated on Route 35 with traffic counts exceeding 45,047 vehicles per day and less than 1 mile from the Garden State Parkway with another 98,890 vehicles per day.
Densely populated and affluent market with over 140,245 people and average household incomes over $161,357 within 5 miles
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