The Ideal Spot: Capital Rivers’ Quest for Dollar Tree
In the intricate realm of commercial real estate, Capital Rivers stands out for its ability to identify unique, 'needle in a haystack' development opportunities. Our mission was laser-focused:
- We aimed to pinpoint and develop prime locations in Northern and Central California specifically tailored for Dollar Tree, Inc., a Fortune 500 giant and the nation's leading single-price-point retail chain.
- The task presented significant challenges, especially considering the scarcity of available real estate in these markets.
- Our dual objective was to find a location that not only met Dollar Tree's operational and economic criteria but also ensured that the development remained a profitable venture for Capital Rivers.
Navigating these challenges, our expertise in commercial real estate development was put to the test, underlining our dedication to both our clients and our craft.
It was necessary for Capital Rivers to get creative in order to solve this challenge. The solution was to go after “off-market” real estate and that started with identifying every building and property that may be a viable option. In this case it was an existing Hardware & Plumbing store that had been in business for over 40 years, in a building they owned and occupied, and that had potential to be retro-fitted for a Dollar Tree store.
- Capital Rivers utilized it’s in depth market knowledge and strategic mapping capabilities to identify the specific target site.
- Capital Rivers then contacted the owner of the business and real estate directly. After establishing a level of trust and transparency with the owner, Capital Rivers was able to ultimately secure an agreement to acquire the property as well as an adjacent building/lot for the parking lot and loading area.
- Capital Rivers secured a lease with Dollar Tree, acquired the property with a loan from US Bank, and leased it back to the business owner so they could liquidate their inventory. During the liquidation sale among the other things, Capital Rivers pursued its permits, demolished several structures on the adjacent lot, upgraded the buildings electrical from a single to three phase system, installed a loading dock, and created a new parking lot to serve the Dollar Tree store.
Navigating the challenges of commercial real estate development, Capital Rivers showcased unparalleled efficiency and innovation in its collaboration with Dollar Tree. From expedited delivery timelines to strategic financial achievements, our commitment to excellence was evident in every facet of the project.
- Capital Rivers was able to deliver the building and site to Dollar Tree within approximately 60 days from the acquisition date and reduce the cost of the project.
- Dollar Tree secured a new store in an untapped market and was able to open before their scheduled opening date.
- Capital Rivers was creative in its acquisition strategy, value engineered the project, and managed the subcontractors to bring the project in under budget.
- Capital Rivers was ultimately able to achieve an 11.1% Return on Cost; sold the project at a 5.95% Capitalization Rate achieving an 87% Unleveraged Return.