HOME  |  ABOUT  |  NET LEASE 101  |  CONTACT  |  SUBSCRIBE



7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Dollar General


Average Property & Lease

Average Sale Price$1,541,310
CAP Rate (12mo avg with 10+ lease term)6.70%
NOI$103,088
$/Square Foot$100 - $150
Building Size9,000 - 12,000 sf
Lot Size1.0 +/- acres
Lease Term10 - 15 Years
EscalationsIn Option Periods
CREDIT RATING
BBB
S&P
Baa2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

From a net lease point of view, Dollar General is appealing given its lower price points, respectable sales record, and corporate expansion strategy in a growing market segment. Dollar General's new store model is approximately 9,100 SF on 1.00+/- acre of land to accommodate a minimum of 30 parking spaces. DG net lease properties have high visibility and full ingress /egress along retail corridors with good traffic. Higher cap rates and lower price points result in a larger pool of qualified buyers.

All Dollar General net leases have a corporate guarantee and typically new stores are NNN with 15-year initial terms. New Dollar General's lease terms usually include 10% bumps every 5 years and in options making it a passive investment deal for Out-of-State investors. Older stores generally are NN where the landlord is responsible for roof and structure, but they also have higher cap rates.

Pros

Cons

  • Only dollar store with investment grade credit
  • Absolute NNN lease
  • Lower Price Point
  • High visibility and good access
  • Tertiary Market locations
  • Some NN leases make Landlord responsible for at least roof and structure
Tenant Description

Dollar General is a publically traded company that started in 1939 by J.L. Turner in Kentucky. Dollar General offers a broad selection of merchandise, including consumables, seasonal, home products and apparel.

The stores generally feature a low-cost, no frills building with limited maintenance capital, low operating costs, and focused merchandise offering within a broad range of categories. Dollar General stores average approximately 9,100 square feet of selling space and approximately 70% of the stores are located in towns of 20,000 or fewer people.

Dollar General currently operates 12,483 stores across 43 states and has plans to open 900 new stores in 2016. Many stores are subject to build-to-suit arrangements with developers, which typically carry a primary NNN lease term of up to 15 years with multiple renewal options. There are also NN stores subject to shorter-term leases and many of these leases have renewal options. A significant portion of the new stores is subject to build-to-suit arrangements.


DOLLAR GENERAL TREND
CAP Rate

2015 avg: 7.13%

2016 avg: 7.17%

RECENT SALES

Bushnell, FL

$1,540,000 | 6.30%

Kearneysville, FL

$1,763,750 | 6.94%

MORE INFO
www.dollargeneral.com
Google Finance: DG
Google News: DG