Over the past few years Dollar Store properties have become someof the most attractive Net Lease Investments available for buyersand investors. The popular stores are still single-handedlychanging the net lease investment market, which has traditionallybeen dominated by drug store, fast food and automotive retailconcepts. It is the only sector within net lease that maintains anadequate supply due to their attractively priced products. Salesrevenues have soured for the three main Dollar Stores: DollarGeneral, Family Dollar, and Dollar Tree. Dollar Store propertiesgenerally offer a strong corporate guaranty, investment gradecredit, 15 year NNN leases, and can still be bought at or above a6% cap rate. Dollar stores have experienced increased demand fornew construction and command a premium over asking cap. Dollarstores have become strategically stronger by reducing their scopeof operations and focusing on one simple formula–the dollar model.The average cap rate of Dollar Store transactions in 2014 is around7.94%.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
