Dollar General Lease Agreements

But Dollar General`s net rental properties maintain high visibility and full entry and exit along retail corridors with good traffic. Higher capitalization rates (our quarterly capitalization rate report shows that DG ended 2018 at 6.73%) and lower prices translate into a larger pool of qualified buyers. Warren Buffet is a net leasing investor. Property types in Store`s portfolio include gyms, pet care centers, movie theaters, auto auction centers, furniture stores, and manufacturing facilities. The store`s largest tenants include the AMC Entertainment chain, an Applebee`s Restaurant franchisee and an Ashley Furniture HomeStore franchisee. « I am analyzing an agreement to buy a general in autonomous dollars with a capitalization rate of 6.3% and a triple net lease with ten years remaining. I was delighted with the deal until I visited the property and saw that there was a general dollar two miles north and south. This particular store is a « plus » that sells beer and wine, so there is a differentiator and this store is only a few years old and the building is over 12,000 square feet. Anyone else has CEOs and has any advice or thoughts on profitability over the next 10 years? Thanks to the BP community! Most dollar generals are sheet metal sides and rear and medium block locations. Only about 10% are modernized construction works in suburban central areas and they are usually over 2 million in prices and 6.5 caps for new leases. I know a lot of DG developers. Most have about 25 to 50 basis points to trade to sell from list price.

More than that, it`s not worth selling, because after capital gains tax and business brokerage commissions, they get about a few hundred k from every property they develop. This is a volume activity to make money as a developer. I have a CEO in the Upper Midwest and I`m happy about that. It is located on the main street of a small town and without a competing store. It appears that DG is overbuilded in the South and parts of the Midwest. Therefore, the risk of not renewing is likely to be high. I usually like small towns, but if I insist on the best location (next to school, government, etc.), slow growth is acceptable, such as an annual population increase of 0.3%, easy competition and long rent. I don`t like a region like TX that has too much growth and little barrier to entry. I don`t have any statistics, but I bet DG offers fewer options in TX than MN! Dollar General works more like a hybrid of a convenience store and a grocery store and a small-scale general store. A typical store is a 9,100 square meter building in a tertiary market.

The company is well positioned to serve its customers with value and convenience, as it plans to open approximately 1,000 new stores in 2017. To strengthen its long-term position, Dollar General is making significant investments, primarily in the compensation and training of store managers, given the critical role this position plays in their customer experience, as well as in strategic initiatives. To the uninitiated, this may not seem too sexy in discount department stores. For the savvy net rental investor, however, the category is as attractive as a night on the Riviera — especially if that dollar store is Dollar General. Dollar General is currently the only dollar store operator to have investment-grade loans that guarantee its leases. Moody`s rates Dollar General Corporation Baa2 and Standard and Poor`s the BBB. In 2016, Dollar General reported revenue of $22 billion, net income of $1.25 billion, and ranked 139th on the Fortune 500 list. Sands Investment Group is pleased to exclusively present the 84,410-square-foot mall for sale in western Maryland, approximately 54 minutes east of Morgantown, West Virginia.

Grantsville Plaza is the dominant community mall in this market with several national anchors (47%), such as Dollar General, Walgreens, True Value Hardware and NAPA Auto Parts. New owners can immediately increase value by conducting an aggressive rental campaign to fill the old Shop N Save grocery box or consolidate the more than 40,000 square feet of available space into other self-storage, medical or industrial applications. Dollar General often serves communities that are too small for Walmart stores, although many locations are relatively close to a Walmart store or in the same communities where Walmart is located. It competes in the form of a dollar store with national chains Family Dollar and Dollar Tree, regional chains like Fred`s in the southeast, and many independent stores. .