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Shopping Community

Dollar General Center

700 Hulin St, Charles City, IA 50616

Listing Price: $681,000

Cap Rate
8.25%
Gross SF
15,836
Rentable SF
15,836
Price/Gross SF
$43.00
Lot Size
0.40 acres
Year Built
1959

Investment Overview

Marcus & Millichap is pleased to bring to market, 700 Hulin St, Charles City, Iowa (Dollar General Center), a 17,108 square foot office/retail center in downtown Charles City, Iowa. The property is being offered for sale at $660,363 which represents an 8.25 percent capitalization rate. The Property is a single-story masonry structure that is 68% occupied by Dollar General and Masterson Staffing with significant upside potential for the unoccupied space. The ground floor includes a 3,760 square foot space that can be converted for an additional office or retail tenant. The building also has a basement, which comprises of 1,596 square feet and could be converted into an additional office space, or an apartment. Dollar General has 4 years remaining on a double net lease after an extension in 2020 with a 7% increase in rent. Additionally, there are two, five-year renewal options with favorable rental increases in each. Dollar General is responsible for reimbursement of insurance and taxes. The tenant is responsible for minor repairs up to $1,300 per occurrence. Dollar General completed a store renovation in July of 2020, installing new coolers and freezers, new branding, and new signage showing long term commitment to the location. The site is adjacent to a city owned and operated public parking lot which provides 40+ parking spaces in addition to street parking. Dollar General benefits from a dense one mile population of over 6,000 residents and direct frontage at four way signalized intersection. Masterson Staffing recently executed their fourth lease extension since occupying the property in 2016. Masterson has increased the rent in each of their extensions, including a ten percent increase in 2022, which improves the capitalization rate to 8.57 percent. The tenant pays a monthly contribution in addition to the base rent to reimburse their share of insurance and taxes. Masterson Staffing Solutions focuses on job placement for professional service jobs (Mortgage, IT Help, Call Center, Finance/Accounting etc.) and light industrial factory jobs (Food Production, Assembly, Production etc.). Masterson is located in 30+ cities throughout Iowa, Minnesota, Michigan, Wisconsin, and Kansas. The subject property is located within the downtown historical district. Several major buildings have undergone renovation over the past few years fueled by grants from the state and city. The property is well positioned in the most dense district of Charles City, with over 6,000 residents within a one mile radius of the property and over 9,000 residents within a five mile radius. About a quarter mile away is the Union House project. The Union House project is a 45,000 square foot building which is being repurposed into thirty-three two bedroom apartments and additional commercial space. The project is expected to be complete by late summer or fall of 2021. Nearby retailers include Verizon Wireless, Dollar Tree, Theisen's, Hy-Vee, Pizza Ranch, Sherwin-Williams, Pizza Hut, Casey's General Store, O'Reilly Auto Parts, AutoZone, McDonald's and Ace Hardware.

Investment Highlights

  • Dollar General completed store remodel July 2020 with new signage, branding, and freezers/coolers.
  • Dollar General reimburses in full for cost of insurance and taxes
  • Masterson Staffing executed lease extension with 10% increase
  • Dollar General responsible for repairs up to $1,300 per occurrence
  • Masterson Staffing executed lease extension with 10% increase in June of 2020
  • Dense demographics of over 6,000 residents within a 1 mile radius of the property
  • The building is located at a four way signalized intersection on main thoroughfare through downtown

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) IA: B63379000

    Iowa

Shopping Community

Dollar General Center

Listing Price: $681,000

Cap Rate
8.25%
Gross SF
15,836
Rentable SF
15,836
Price/Gross SF
$43.00
Lot Size
0.40 acres
Year Built
1959

Investment Highlights

  • Dollar General completed store remodel July 2020 with new signage, branding, and freezers/coolers.
  • Dollar General reimburses in full for cost of insurance and taxes
  • Masterson Staffing executed lease extension with 10% increase
  • Dollar General responsible for repairs up to $1,300 per occurrence
  • Masterson Staffing executed lease extension with 10% increase in June of 2020
  • Dense demographics of over 6,000 residents within a 1 mile radius of the property
  • The building is located at a four way signalized intersection on main thoroughfare through downtown

Investment Overview

Marcus & Millichap is pleased to bring to market, 700 Hulin St, Charles City, Iowa (Dollar General Center), a 17,108 square foot office/retail center in downtown Charles City, Iowa. The property is being offered for sale at $660,363 which represents an 8.25 percent capitalization rate. The Property is a single-story masonry structure that is 68% occupied by Dollar General and Masterson Staffing with significant upside potential for the unoccupied space. The ground floor includes a 3,760 square foot space that can be converted for an additional office or retail tenant. The building also has a basement, which comprises of 1,596 square feet and could be converted into an additional office space, or an apartment. Dollar General has 4 years remaining on a double net lease after an extension in 2020 with a 7% increase in rent. Additionally, there are two, five-year renewal options with favorable rental increases in each. Dollar General is responsible for reimbursement of insurance and taxes. The tenant is responsible for minor repairs up to $1,300 per occurrence. Dollar General completed a store renovation in July of 2020, installing new coolers and freezers, new branding, and new signage showing long term commitment to the location. The site is adjacent to a city owned and operated public parking lot which provides 40+ parking spaces in addition to street parking. Dollar General benefits from a dense one mile population of over 6,000 residents and direct frontage at four way signalized intersection. Masterson Staffing recently executed their fourth lease extension since occupying the property in 2016. Masterson has increased the rent in each of their extensions, including a ten percent increase in 2022, which improves the capitalization rate to 8.57 percent. The tenant pays a monthly contribution in addition to the base rent to reimburse their share of insurance and taxes. Masterson Staffing Solutions focuses on job placement for professional service jobs (Mortgage, IT Help, Call Center, Finance/Accounting etc.) and light industrial factory jobs (Food Production, Assembly, Production etc.). Masterson is located in 30+ cities throughout Iowa, Minnesota, Michigan, Wisconsin, and Kansas. The subject property is located within the downtown historical district. Several major buildings have undergone renovation over the past few years fueled by grants from the state and city. The property is well positioned in the most dense district of Charles City, with over 6,000 residents within a one mile radius of the property and over 9,000 residents within a five mile radius. About a quarter mile away is the Union House project. The Union House project is a 45,000 square foot building which is being repurposed into thirty-three two bedroom apartments and additional commercial space. The project is expected to be complete by late summer or fall of 2021. Nearby retailers include Verizon Wireless, Dollar Tree, Theisen's, Hy-Vee, Pizza Ranch, Sherwin-Williams, Pizza Hut, Casey's General Store, O'Reilly Auto Parts, AutoZone, McDonald's and Ace Hardware.

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): IA: B63379000

    Iowa

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