Dollar stores have become an investor favorite during thepandemic. These discount chains have historically performed wellduring economic uncertainty and economic downturns, and as aresult, private investors are flocking to opportunities. Dollarstore and net lease investment experts TonyAnderson and Richard Brehaut ofJames Capital Advisors have sold five of theseassets during the pandemic.

"You don't find a lot of corporate tenants that are investmentgrade with 15-year triple net leases that you can purchase at astrong yield," Anderson, director of net lease at James CapitalAdvisors, tells GlobeSt.com about why dollar store assets havesurged in popularity. "When you have these characteristics inplace, it becomes an attractive property for a lot of investors.Dollar General is typically recession proof. If the market is doingwell, dollar stores in general are going to do well. If the marketisn't doing well, then they are definitely going to do well. Theycan weather any environment."

The duo represented the seller in five Dollar General dealslocated in Texas and Ohio, and they sourced the buyers—mostlyexchange buyers trading out of multifamily. The properties tradedhands within 15 basis points of the asking price—an impressiveachievement for a retail deal in the middle of a pandemic. "We areseeing significantly more demand for the dollar stores," Brehaut, anet lease director at James Capital Advisors, tells GlobeSt.com."That has allowed us to achieve the pricing that we have. Almostevery property that we have sold has traded within 15 basis pointsof our list price. We are seeing a flight to safety with investorsfocusing on safer investment-grade deals. For that reason, we arestill able to achieve our original pricing for our investors."