Listed by Echo West Capital Advisors
$1,600,000
Family Dollar
Details
APN 138-25-609B
Property Type Retail
Sub Type Storefront, Family Dollar
Square Footage 8,320
Net Rentable (SqFt) 8,320
Cap Rate 7.85%
NOI $125,620
Occupancy 100%
Tenancy Single
Brand/Tenant Family Dollar
Lease Type NN
Lease Term 15
Lease Expiration 03/31/2029
Remaining Term 2.8
Rent Bumps Yes
Lease Options Four, 5-Year Options
Price per SqFt $192
Year Built 2013
Buildings 1
Stories 1
Acreage 1.000
Investment Type Net Lease
Lease Commencement 04/01/2014
Ground Lease No
Ownership Fee Simple
Family Dollar | 7.85% CAP | 8,320 SqFt
Investment highlights
- Tenant Commitment Through Industry Turmoil - Family Dollar executed its first lease option in March 2024, during a period when the brand was publicly announcing widespread store closures and portfolio rationalization. Exercising an option amid this level of corporate scrutiny underscores the strength of this specific Tucson location, confirming it as a top performing, strategically important store within the chain. While weaker locations were identified for closure, Family Dollar chose to double down on this site, reinforcing long-term tenancy and reducing renewal risk for investors.
- Passive Investment | Minimal Landlord Responsibilities - The offering features an NN lease structure with landlord responsibilities limited to roof, structure, and parking lot repairs in excess of $1,000.
- Recession & E-Commerce Resistant Tenant | “Essential” Business - Dollar Stores are a recession-proof business and were deemed “Essential” during the COVID-19 Pandemic. Dollar Tree/Family Dollar was one of the few retailers that never closed during the pandemic, while also witnessing a sharp increase in sales/profitability.
- Strong Demographics - Tucson is the 2nd most populous city in Arizona and is home to 1 million+ people in the metropolitan area. More than 102,000 residents support the property’s 5-mile area, with proximity to the Tucson International Airport (7 Miles), Pima Community College - Desert Vista Campus (4 Miles), and Casino Del Sol (4 Miles).
- Located in an Exploding Home Development Sub-Market - The property benefits from a rapidly growing residential market, surrounded by new residential construction and master-planned communities:
- Saguaro Haven by KB Homes - New 39 acre / 143 lot community coming Spring 2024 (1.5 Miles away).
- Star Valley Master Planned Community - a 1,437-acre residential master planned community that is currently home to 1,500 families but planned for approximately 3,000. The Master Planned Community includes homebuilders Lennar Homes, Meritage Homes, and Richmond American Homes. Lennar Homes and Meritage Homes continued their expansion by recently acquiring 272 finished lots, 81 and 191 lots respectively, that will serve as the next phase for each home builder (5 Miles Away).
Listing Contacts
Listed by Echo West Capital Advisors
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Loan Amount
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Annual Debt Service
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Annual Cash Flow
$125,620.00
$10,468.33/mo
Valuation Metrics
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DSCR
7.85%
Cap Rate
7.85%
ROI
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