NORTHBROOK, IL—Earlier this month, GlobeSt.com reported that The Boulder Group, a net leased investment brokerage firm located in suburban Chicago, had just released a report that showed investor appetite for the top dollar store brands had increased since last year, pushing down cap rates for properties tenanted by Dollar General, Dollar Tree and Family Dollar. And the firm just completed the sale of a single-tenant net leased Dollar General portfolio consisting of three properties located in St. John, Meade, and Coldwater, Kansas for $2,000,000.
“The Midwest net lease market remains strong for corporately guaranteed single tenant properties regardless of where they are located,” says Randy Blankstein, president of Boulder. Jimmy Goodman, a partner with Boulder, adds, “cap rates for Dollar General properties are at an all-time low as their absolute dollar amount per property is attractive to multiple types of investors within the net lease sector.”
Last week, GlobeSt.com reported that Marcus & Millichap claimed it broke a US record with the sale of a brand new construction Dollar General in Opa-Locka, FL. That asset sold for $2.6 million.
Dollar General fully leases each of the Kansas properties, which average 9,036-square-feet, sit on one-acre parcels and have between 5.5 and 6.5 years of lease term remaining. Two of the properties were constructed in 2009 while the other was built in 2010. Each of the properties has three 5-year renewal option periods with 10% escalations.
The portfolio includes the following properties:
- 202 North US Highway 281, St. John, Kansas, 67576
- 603 West Carthage St., Meade, Kansas, 67864
- 501 South Central Ave., Coldwater, Kansas, 67029
Blankstein and Goodman represented the seller; a private real estate investor in the Midwest. The buyer was a private individual.