Dollar Tree - 6535 Paw Paw Ave
Retail | 7.65% CAP | 11,180 SqFt
Marketing description
Faris Lee Investments is pleased to present the opportunity to acquire a single-tenant national credit retail asset featuring Dollar Tree, strategically positioned within the primary regional trade area hub of Coloma, Michigan. The property is ideally located along a dominant commercial corridor, drawing consistent regional traffic alongside high-volume national co-tenants such as Harding's Market, Pizza Hut, Biggby Coffee, and Corewell Health. Dollar Tree (NASDAQ: DLTR) commands an investment-grade credit rating (S&P: BBB) and outstanding corporate strength, posting over $19.4 billion in annual revenue for 2025, a 10.4% year-over-year increase. This high-performing retail concept serves as an essential staple for the immediate area and captures a vast, multi-city consumer base across surrounding Western Michigan communities.
The tenant has demonstrated a long-term commitment to this location through a brand-new,10-year corporate lease featuring 4, (5-year) renewal options, which provides an incoming investor with absolute cash-flow predictability and provides long-term income stability. Further solidifying its long-term presence and driving increased sales volume, the property underwent a comprehensive 2026 physical rehabilitation to implement Dollar Tree's latest prototypical facility design. This extensive capital investment featured an upgraded roof and full common area improvements, ensuring the facility demonstrates a top-tier destination. This brand-new renovation and long-term lease underscore corporate confidence in the site while providing a secure, predictable, and entirely passive income stream for the investor.
Ownership interest encompasses fee simple title to both the land and the building, offering long-term intrinsic value and substantial tax advantages. Priced significantly below its replacement cost at an incredibly low cost basis of just $105 per square foot, the investment offers an exceptional layer of downside protection and long-term asset stability. Because the property features a comprehensive 2026 rehabilitation, it offers true ease of ownership, eliminates near-term capital expenditure burdens, and allows the buyer to maximize tax mitigation strategies through Cost Segregation and accelerated depreciation. This represents an exceptional, risk-averse opportunity for passive 1031 exchange buyers looking for a high-quality, stable cash-flow vehicle backed by an investment-grade corporate guaranty.
Investment highlights
- Dollar Tree is a publicly traded, investment grade national retailer (S&P BBB)
- Annual revenue for 2025 was in excess of $19.4B 10.4% increase from 2024 revenue
- Operates over 9,000 stores in 48 U.S. states and Canada
- Dollar Tree employs approximately 150,000 people with a Market Cap in excess of $23B (June, 2026)
- Long term stability and security for the investor
- Provides Land and Building ownership for buyer
- Investment provides tax benefits through depreciation and cost segregation
- Rehabilitation of existing building with upgraded roof and common area improvements
- The retrofit allows for increased inventory volume
- Intrinsic real estate value
- Property acquisition is well below replacement cost
- Provides investor with intrinsic real estate value
- Current rent is only $8PSF/year with comparable retail rents well over $12PSF/year
- Investment provides for both land & building ownership for the investor
- Cost Segregation provides for tax benefits through depreciation
- Strong cash flow generating investment
- Ideal for 1031 exchange
- Property strategically located within Coloma to serve Western Michigan trade area
- Serves as a vital retail destination for Coloma and surrounding lakeside communities, including Watervliet, Hagar Shores, Riverside, Hartford, and Benton Harbor
- Immediate co-tenancy includes regional and national anchors like Harding's Market, Fifth Third Bank, McDonalds, Pizza Hut, Corewell Health, and Biggby Coffee
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