Dollar Tree | Hazlet, NJ | Leasehold 3600 State Route 35

12,000 SF Retail Building Hazlet, NJ 07730 $2,080,924 ($173/SF) 8.65% Cap Rate

INVESTMENT HIGHLIGHTS

  • Leasehold ownership structure creates excellent after tax returns due to the owner’s ability to depreciate the improvements 100%
  • Dollar Tree recently extended their lease for the third time showing a strong commitment to this location
  • The ground lease has over 71 years remaining on the base term with an annual rent of only $1
  • Corporately guaranteed by Dollar Tree, an investment grade credit tenant rated BBB- by Standard & Poor’s
  • Ideally situated in front of an established Home Depot and in close proximity to CVS, Stop & Shop, Advance Auto, Dunkin’ Donuts, IHOP and 7-Eleven
  • Highly desirable Northern NJ/NYC MSA real estate and demographics, less than 22 miles from Manhattan

EXECUTIVE SUMMARY

CBRE IS PLEASED TO EXCLUSIVELY PRESENT FOR SALE this 12,000 square foot Dollar Tree property in Hazlet, New Jersey. Dollar Tree has been operating successfully at this location since 2002 and recently extended their lease, highlighting their strong commitment and continued success at the site. The tenant has 6 years remaining on the current lease term, with three additional 5-year renewal options. Each renewal period includes a $6,000 rental increase, ensuring future income growth.
This is a double net, leasehold arrangement with the landlord responsible for the roof and structure. The leasehold structure offers significant tax advantages, allowing for 100% depreciation of the improvements, creating excellent after-tax returns.

PROPERTY FACTS

Sale Type
Investment NNN
Sale Condition
Ground Lease (Leasehold)
Property Type
Retail
Property Subtype
Freestanding
Building Size
12,000 SF
Building Class
B
Year Built
2002
Price
$2,080,924
Price Per SF
$173
Cap Rate
8.65%
NOI
$180,000
Tenancy
Single
Building Height
1 Story
Building FAR
0.72
Lot Size
0.38 AC
Zoning
BH

AMENITIES

  • Freeway Visibility

NEARBY MAJOR RETAILERS

IHOP
Stop & Shop
Rent-A-Center
PNC Bank
Valley National Bank
Starbucks
Noches De Colombia
ShopRite
Perkins
Philly Pretzel Factory

PROPERTY TAXES

  • Listing ID: 33829792

  • Date on Market: 11/11/2024

  • Last Updated:

  • Address: 3600 State Route 35, Hazlet, NJ 07730