Family Dollar - Adj. to In-N-Out, SBUX, & CFA 398 W 16th St

Investment Highlights

National, investment grade tenant ? Family Dollar/Dollar Tree | (DLTR: NASDAQ) with over $28B in annual sales (2023) Long term historical occupancy and recently exercised option to extend Family Dollar is located adjacent to In-N-Out Burger, Starbucks, and Chick-fil-A Ease of management investment | NNN lease structure Growing income stream with 10% rental increase Intrinsic retail location with excellent street frontage in a centrally located property | approx. 60,000 VPD

Executive Summary

Faris Lee Investments is pleased to present a rare opportunity to acquire the fee simple interest (land and building) in a freestanding building with an Investment grade Tenant- Family Dollar property in Merced, California. This Family Dollar location is nationally ranked in the 98th percentile and 94th percentile in California in pedestrian traffic per Placer.ai. Family Dollar has been successfully operating at this location since 2013 (over 10 years) and recently exercised its first five (5) year lease option, which confirms the success of the location and commitment of Family Dollar to this property.Additionally, the lease provides for 10% increases every 5 years that provide an investor with a hedge against inflation and increased return on investment. Family Dollar merged with Dollar Tree in 2015 to form the publicly traded company ? DLTR: NASDAQ with annual sales over $28B in 2023. Family Dollar has a credit rating of BBB (S&P) with the parent company operating over 16,000 stores in 48 states. In addition, Family Dollar has been operating their U.S. retail business since 1960. The property is positioned with a corporate signed lease (Family Dollar, Inc.) and backed with a market capitalization of approximately $26B as of 11/8/2023.Family Dollar is strategically located along highly traveled West 16th Street (22,300 CPD) and MLK Jr. Way (16,500 CPD) with direct access to State Hwy 99 (49,500 CPD). The Central Business District location provides convenient access to the City of Merced and surrounding communities. The investment asset is in close proximity to high volume, daily needs retailers such as Smart & Final Extra, Starbucks, In & Out Burger, Popeye?s Louisiana Kitchen, Taco Bell, and Wendy?s. The property is located within strong density demographics for Family Dollar, which include a population of 110,000 within a 5-mile radius. The subject property has ideal income levels for Family Dollar with an average household income of $52,000 within a 1-mile radius and $76,000 within a 5-mile radius.

• Sale Type    Investment NNN
• Property Type    Retail
• Property Subtype    Freestanding Freestanding General Retail Fast Food General Retail Restaurant General Retail Supermarket Freestanding
• Building Size    9,180
• Building Class    B
• Year Built    2013
• Price    3,452,000
• Price Per SF    376
• Cap Rate    6.18
• NOI    213,162
• Tenancy    Single
• Building Height    1 Story
• Building FAR    0.23
• Land Acres    0.93 AC
• Opportunity Zone    Yes State officials designate a portion of qualified Census Tracts to be Opportunity Zones. Certain investments in Opportunity Zones may be eligible for preferential tax treatment.