ORLANDO—A Dollar General has fetched $1.63 million in an off-market transaction. The original developer sold the triple net leased retail store to an Apollo Beach, FL-based investment company.
The buyer paid all cash in a transaction that represents $180 per square foot. The Dollar General is new construction with a new 15-year triple net lease.
“The triple net market is very competitive,” Bryan Belk, director of Real Estate Services at Franklin Street, who exclusively represented the seller in the transaction, tells GlobeSt.com. “Investors are dying for yields that they are not able to achieve in alternative investments and because of this competition CAP rates are being driven down to levels of the top of the market in 06 and 07.”
Belk says Franklin Street witnessed significant interest in the property. As the largest small-box retailer in the country, Dollar General still garners a lot of interest from investors.
“Dollar Generals S&P credit rating has improved multiple times since being brought public,” Belk says. “Their evolution of their model has continued to create competition with retailers that use to not consider them competitors, such as Walmart and traditional grocers. This has caused investors to take notice and consider them as valuable investments to their real estate portfolios.”
The Dollar General is located at 3081 Curry Ford Rd. There are 494 Dollar Generals in Florida and more than 10,000 locations nationwide.
“Orlando’s retail market has seen some slight increases in their market conditions for this year—vacancy rates are down but rental rates still have yet to increase,” Belk says. “Expect Orlando’s state of retail to improve slowly.”