Dollar General Plus Trades Amid Hostility

ROCK HILL, SC—Family Dollar is rejecting advances from Dollar General in a proposed $9.1 billion deal. But despite the hostility among two companies' shareholders investors are still eyeing single tenant net leased dollar store assets. The latest example is a Dollar General Plus in Rock Hill, SC.

Boulder Group just brokered the sale of a single tenant Dollar General Plus property located at 1333 East Main Street in Rock Hill for $3.1 million. As the name suggests, Dollar General Plus locations are larger than traditional Dollar General stores. They also have more cooler and freezers for perishable items.

Boulder's Randy Blankstein and Jimmy Goodman represented the seller, a Midwest-based real estate investment company. The purchaser was a South Carolina-based investor in a 1031 exchange.

“Despite the short term uncertainty of the dollar store sector, there is still strong demand for dollar stores located in top metros with long term leases,” says Blankstein, president of Boulder. The 3.84-acre Dollar General Plus parcel is sits along Main Street about one mile from access to Interstate 77.

Main Street is a primary thoroughfare that sees traffic counts exceeding 23,000 vehicles a day. The Dollar General Plus is located about 25 miles south of downtown Charlotte.

“There were multiple bidders for this asset as this was a rare relocation store combined with the Dollar General Plus concept,” says Goodman, partner at Boulder. The 12,480 square-foot-building is a relocation of a previously successful traditional-sized Dollar General store. Based on the previous location's success, Dollar General decided to build one of its larger format stores.

The Dollar General Plus is next to a Bi-Lo-anchored development and across the street from Food Lion. There are over 13 years remaining on the Dollar General lease that expires on Oct. 31, 2027. The lease features a rental escalation in the eleventh year and 10% rental escalations in each renewal option period.