Family Dollar

Tenant Description

Family Dollar is an American variety store chain. With over 8,000 locations in 48 states. Family Dollar was headquartered in Matthews, a suburb of Charlotte, North Carolina, until it was acquired by Dollar Tree and headquarters operations were moved to Chesapeake, Virginia.

Dollar Tree acquired Family Dollar, Inc. in July 2015 and together they are  the nation’s larges discount retailer. Similar to all Dollar Stores, they essentially operate as mini grocery stores in smaller rural towns. Built to suit developers are very active in this space.

What To Look For When Buying A Family Dollar

If FD vacates, what can you do with the building?  Is the land in this area cheap enough that the risk is high for FD to build a new store and not renew the lease with you? What are the other retailers nearby? Are there chances of new competition coming in?   Is the area already over served or is Family Dollar filling a need due to excess retail demand?

What We Like About Family Dollar

These deals are some of the highest cap rates you can find for a Corporate Guarantee lease.

Competition

Dollar General is the largest competitor in the sector.

What Is Sold In A Family Dollar

Clothing, cleaning supplies, home decor, health & beauty aids, pet supplies, toys, seasonal items, and grocery

Family Dollar Website/ Wikipedia Page

https://www.familydollar.com/

Corporate Office Location

500 Volvo Pkwy – Chesapeake, VA 23320

Fast Facts

Dollar Tree acquired Family Dollar, Inc. in July 2015

Stock Price
Tenant News
Average Cap Rate Trend
7.00%
2019
6.75%
2020
12 mo avg with 10+ yr lease term (*Please Note Data Points Are Not Exact Figures*)
Average Sale Data & Lease Structure
Avg. Sale Price$1,500,000
Avg. Annual Rent$110,000
Avg. Price/ SF$225/SF
Typical Lease TypeDouble Net
Typical Lease Term10 Years
Typical Lease EscalationsNone
Credit Rating
S & PBBB- (subsidiary)
Moody'sBaa3

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