Dollar Tree

Highlights:

• ±224,230 residents within a 5-mile radius, providing a dense and stable consumer base for continued retail demand.
• Current lease rate remains below market at under $10 per square foot, offering potential for long-term rental upside.
• Tenant has demonstrated strong location commitment by exercising a 7-year lease extension well in advance of the original term expiration.
• Lease includes structured rent growth, with a scheduled $1.00 per square foot increase during each option period, enhancing income predictability.
• Situated at a hard signalized intersection of School Street and Burnside Avenue, the property benefits from high visibility and accessibility, with traffic volumes of approximately ±12,400 vehicles per day.
• Positioned on a large parcel with durable all-brick construction, reducing long-term capital expenditure requirements and supporting asset longevity.
• National Tenant Strength – Dollar Tree, which acquired Family Dollar in 2015, is the second-largest discount retailer in the U.S., operating over ±16,000 locations nationwide.
• Tenant outperformed during the COVID-19 pandemic, experiencing notable increases in same-store sales and profitability.
• Dollar Tree operates a recession-resilient business model, catering to value-driven consumers and demonstrating consistent performance during economic downturns.

Description:

Matthews is pleased to present the opportunity to acquire a corporately guaranteed Dollar Tree, strategically located at 10 School St, East Hartford, CT 06108. Positioned on a large parcel at the hard signalized intersection of School Street and Burnside Avenue, the property enjoys strong visibility and convenient ingress and egress, with traffic counts of approximately ±12,400 vehicles per day. The site benefits from durable all-brick construction and is surrounded by a dense and growing population of ±224,230 residents within a ±5-mile radius, supporting long-term retail demand and tenant stability.

The tenant recently demonstrated long-term commitment by exercising an early 7-year option, signaling continued confidence in the location. The lease includes a rare $1.00 per square foot rental increase during the option periods, enhancing income potential over time. Additionally, the current rent is below $10.00 per square foot, presenting a compelling opportunity for future rental growth.

This asset represents a compelling passive investment secured by a corporate guarantee from a nationally recognized tenant. With below-market in-place rent, contractual rental escalations, and a proven tenant demonstrating long-term occupancy, the property is well-positioned to deliver stable cash flow and long-term value creation. The combination of strong real estate fundamentals, tenant commitment, and built-in income growth makes this an attractive addition to any net lease portfolio.

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