Discount

Dollar General

Listing Price: $512,000

Cap Rate
7.50%
Tenant Name
Dollar General Corporation
Years Remaining On Lease
3.90
Gross SF
8,250
Guarantor
Corporate Guarantee
Rentable SF
8,250
Price/Gross SF
$62.06
Lease Type
Double Net
Rent Per Square Feet
$4.65

Investment Overview

Marcus & Millichap has been retained as exclusive advisor to market for sale a single-tenant Dollar General investment property located in Red Bud, Illinois. The offering has extremely attractive real estate fundamentals and has been operating as a Dollar General for 22+ years since originally being built-to-suit for the tenant in 1998. Dollar General has renewed all of their remaining renewal option periods in the current lease and is paying a very low rental rate of only $4.65 per square foot, substantially below their same store average rental rates which creates rental rate upside potential upon lease expiration. The price per square foot of the offering is also below replacement cost at $62 per square foot. The free-standing 8,250-square foot retail building is located in Redbud’s main commercial corridor near many national retailers, the local school district & the community’s Regional Hospital. The offering presents an incoming investor a low price point investment with many building and site updates recently completed including parking lot, roof, interior, and HVAC. The site has proven performance and is operated by Dollar General (NYSE:DG) a Fortune 200 recession resistant, essential retailer with more than 16,000 stores across 45 states. At year-end 2019, the company had annual revenue of $27.7 billion and shareholder equity of $6.7 billion with an investment-grade corporate credit rating through both, Standard & Poor’s and Moody’s.

Investment Highlights

  • Corporate Fortune 200 Tenant - Investment-Grade Corporate Credit
  • Essential, Recession Resistant Discount Retailer With Long-Term Proven Performance
  • 22+ Year Proven Historical Occupancy – Building Built-to-Suit For Dollar General in 1998
  • Attractive Real Estate Fundamentals – Offered Below Replacement Cost at $62 Per Square Foot
  • Many Capital Expenditures Recently Completed Including Roof & Parking Lot
  • Value-Add Upside Potential – Low $4.65 PSF Rent With No Remaining Renewal Option Periods

Exclusively Listed By

Listing Price: $512,000

Cap Rate
7.50%
Tenant Name
Dollar General Corporation
Years Remaining On Lease
3.90
Gross SF
8,250
Guarantor
Corporate Guarantee
Rentable SF
8,250
Price/Gross SF
$62.06
Lease Type
Double Net
Rent Per Square Feet
$4.65

Investment Highlights

  • Corporate Fortune 200 Tenant - Investment-Grade Corporate Credit
  • Essential, Recession Resistant Discount Retailer With Long-Term Proven Performance
  • 22+ Year Proven Historical Occupancy – Building Built-to-Suit For Dollar General in 1998
  • Attractive Real Estate Fundamentals – Offered Below Replacement Cost at $62 Per Square Foot
  • Many Capital Expenditures Recently Completed Including Roof & Parking Lot
  • Value-Add Upside Potential – Low $4.65 PSF Rent With No Remaining Renewal Option Periods

Investment Overview

Marcus & Millichap has been retained as exclusive advisor to market for sale a single-tenant Dollar General investment property located in Red Bud, Illinois. The offering has extremely attractive real estate fundamentals and has been operating as a Dollar General for 22+ years since originally being built-to-suit for the tenant in 1998. Dollar General has renewed all of their remaining renewal option periods in the current lease and is paying a very low rental rate of only $4.65 per square foot, substantially below their same store average rental rates which creates rental rate upside potential upon lease expiration. The price per square foot of the offering is also below replacement cost at $62 per square foot. The free-standing 8,250-square foot retail building is located in Redbud’s main commercial corridor near many national retailers, the local school district & the community’s Regional Hospital. The offering presents an incoming investor a low price point investment with many building and site updates recently completed including parking lot, roof, interior, and HVAC. The site has proven performance and is operated by Dollar General (NYSE:DG) a Fortune 200 recession resistant, essential retailer with more than 16,000 stores across 45 states. At year-end 2019, the company had annual revenue of $27.7 billion and shareholder equity of $6.7 billion with an investment-grade corporate credit rating through both, Standard & Poor’s and Moody’s.

Exclusively Listed By

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