Investment Overview

Marcus & Millichap has been selected exclusively to market for sale the Dollar Tree Center, a 2 tenant NNN retail strip located in the rapidly growing Grants Pass/Medford MSA. Both Dollar Tree and A-1 Market have recently extended their leases for another 5 years in their respective spaces. Dollar Tree has been operating at this location since 2001, demonstrating strong historical occupancy at the Property. A-1 Market recently exercised into their first 5-year option at a rental rate 17% higher than their previous rate, with 2 more options to extend. Both leases offer rent escalations through their terms, providing an investor a long-term hedge against inflation. Dollar Tree features 10% rent increases every 5 years, and A-1 Market features 1% annual increases. Both tenants operate on NNN leases, reimbursing the Landlord for their pro-rata share of CAM expenses, insurance, and property taxes. This Dollar Tree location is corporately guaranteed, and is a publicly traded company (NYSE: DLTR) owning both Dollar Tree and Family Dollar brands. It is ranked 137 on the Fortune 500 with over 16,000 stores in the lower 48 states, and is also established in 5 Canadian provinces. They also plan to open as many as 650 new stores across the U.S. in 2024 as it looks to capitalize on shoppers hunting for bargains in the midst of inflation. Dollar Tree has been among the top U.S. retail lessees on an annual basis, according to CoStar. The A-1 Market lease is guaranteed by the operating entity that operates all 10 of its locations and also features a Personal Guaranty from both owners. The Property is located in the rapidly growing Grants Pass market and benefits from a population of over 55,000 residents within a 5-mile radius. Since 2010 the population has grown nearly 11% within a 5-mile radius and over 9% within a 1-mile radius.