Picture Rock Family Dollar Sells
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Realty Income Corporation, a California REIT, through an affiliate purchased the Family Dollar store at 6641 N Sandario Road in the Picture Rock area of Tucson for[mepr-show rules=”58038″]$1.62 million ($206 PSF). Built in 2012, the 7,880 sq. ft. Family Dollar is on a .97 acre lot by the seller. The Hutton Company of Chatanooga, TN.
As one of the largest discount retailers in the United States, Family Dollar continues to gain market share and appeal from net lease investors. Family Dollar holds investment grade credit ratings from S&P (BBB-) and Moody’s (Baa3) and operates under a landlord friendly net lease structure. As a result, free-standing Family Dollar retail stores provide an attractive combination of a long-term lease, investment grade credit, and a growing market concept that continues to capture value conscious shoppers, which boosts store productivity.
In 2011, Family Dollar started a multi-year initiative to re-energize the brand. The program included physical improvements to building facades, fixtures and signage, and expanding in-store offers. These improvements took place to existing stores, while the company also focused on market expansion and store relocations.
Realty Income Corporation (NYSE: O) is a real estate investment trust known as “The Monthly Dividend Company” (a registered trademark) for its practice of paying investor dividends on a monthly rather than quarterly basis. It is chartered in the state of Maryland and has its headquarters in Escondido, California. As of January 2013, the company owned over 3,500 commercial real estate properties in 49 states, with total assets of approximately $9.0 billion and net income of $115 million.
Founded in 1969 by William E. Clark and Evelyn J. Clark. Realty Income’s first acquisition was a Taco Bell restaurant in early 1970. By 1992 the company had formed 22 partnerships, which controlled 628 properties and involved 68,000 individual partners. In 1994, Realty Income Corporation merged its various partnerships into a publicly traded company, listed on the New York Stock Exchange with the single letter “O” as its symbol. In the first quarter of 2013 Realty Income saw its revenues rise more than 52% over the same quarter from the previous year.
The company primarily acquires properties that are freestanding, single-tenant locations, and that are leased to regional and national commercial enterprises under long-term net-lease agreements.
The Hutton Company can be reached at (423) 756-9267. Realty Income is at (877) 924-6266.
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[ismember]Sale date: 6/21/2013. Exact sale price was $1,620,648. The typical Family Dollar net lease is 10 years with successive option periods when the rent increases 10% every five years during the options. The Family Dollar net lease typically requires minimal responsibilities from the landlord, limited only to roof & structural maintenance while the tenant is responsible for insurance, taxes and all other maintenance and repairs. Recently, Family Dollar has offered sale-leasebacks with 15-year NNN leases which might be an indication that the build-to-suit programs will also start producing NNN opportunities. CAP Rate 2012 avg. 8.66% 2013 avg. 7.22% [/ismember]