99 Cents Only

99 Cents Only Stores is an American price-point retailer chain based in Commerce, California. Previously, the store offered all products at 99¢ or less. Most products are now priced at “99.99¢ or less, but certain products are sold at higher price points”.

Founded by David Gold on February 28, 1969, most of the stores are located in Southern California, with others in Nevada, Texas and Arizona. The company also operates Bargain Wholesale, which sells wholesale to retailers across the United States and exports to more than 15 countries from showrooms in Los Angeles. It also exhibits at trade shows in Las Vegas and Chicago.

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Parent Company: Ares ManagementCPP Investment Board
Store Count: 394
S&P Rating: N/R

S&P Outlook: Negative

Moody Rating: Caa1

Moody Outlook: Negative

Typical Lease Characteristics

Lease Term: 10-15 Years Years

Lease Type: NNN(absolute Net)

Lease Increases: Varies. Typically yes.

Lease Extensions: 2-4 (5) Year Options

Lease Guarantor: Corporate Guarantee

Tenant Overview

99 Cents Only Stores sells closeout and regular general merchandise for 99 cents, or less. With more than 330 stores, the company sells name-brand and private-label food and beverages (more than 50% of sales), health and beauty aids, household and seasonal goods, hardware, toys, and more. Nearly three-quarters of its stores are in California; other stores are located in Arizona, Nevada, and Texas. The company’s Bargain Wholesale unit distributes discounted merchandise to retailers, distributors, and exporters.

Founded in 1982, 99 Cents Only Stores was taken private by Ares management, and the Gold/Schiffer family in 2012.

Given the nature of its products, 99 Cents stores serve a unique demographic and customer base. As a result, competitive pressures associated with online commerce are not as prevalant with this tenant. Due to the typical size of these stores however, re-tenanting could become an issue in the event of the tenant vacating upon expiration

Positives:

  • Generally favorable cap rates
  • Low Price Sales Model
  • Typically Long term leases with increases

Negatives:

  • Relatively new brand
  • Low Margin product lines
  • Large spaces make it more challenging to re-tenant

Market Snapshots:

On Market Ranges:

# of Properties in set: N/AV

Price: N/AV - N/AVAverage: N/AV

PPSF: N/AV - N/AVAverage: N/AV

Year Built: N/AV - N/AVAverage: N/AV

CAP Rate Range: N/AV - N/AVAverage: N/AV

Size range: N/AV - N/AV Average: N/AV

Last 12 Month Range:

# of Properties in set: 1

Price: $4,561,466 - $4,561,466Average: $4,561,466

PPSF: $251 - $251Average: $251

Year Built: 2015 - 2015Average: 2015

CAP Rate Range: 5.80% - 5.80%Average: 5.80%

Size range: 18,171 sq ft - 18,171 sq ft Average: 18,171 sq ft

99 Cents Only Company Profile

Headquarters Information

Commerce, California

Founded in 1969

Company type: Private

Parent Company: Ares ManagementCPP Investment Board

Sector: Discount, Variety Store

Industry: Retail

# of Employees: 17,000

S&P Rating: N/R

S&P Outlook: Negative

S&P Rating: Caa1

Moody Outlook: Negative

No stock information is available for this tenant.
No news available for this tenant.

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