Net Lease Press Releases: Net Leased Dollar General Sold

Net Lease Press Releases: Net Leased Dollar General Sold: Net Lease Press Releases $1.34MM Sale of Richmond, VA Dollar General Store Calkain Companies’, a national real estate investment broke...

Net Leased Dollar General Sold

Net Lease Press Releases


$1.34MM Sale of Richmond, VA Dollar General Store


Calkain Companies’, a national real estate investment brokerage firm, recently sold a Dollar General (NYSE: DG) net lease investment property located in Richmond, VA. The transaction closed within the past 30 days, and illustrated the compressing cap rates within the net lease segment of the market. The seller was a regional real estate development and management company based in the Southeast. As a preferred developer for Dollar General, the same seller used Calkain to procure similar sales in Madison, VA and Ferrum, VA within the past 60 days. These Dollar General properties were recently developed as part of Dollar General’s built-to-suit program, and the stores have brand new 15-year triple net leases, which provide passive income for the new owner.

Not actual site.

Calkain’s Andrew Fallon, Associate, facilitated the transaction, providing exclusive representation to the Seller, who developed the site for Dollar General. The Richmond store was highly sought-after given its in-fill location, surrounding demographics, and the favorable lease structure. Fallon comments, “As Dollar General continues to roll out new stores in new markets, it’s rare to find a brand new in-fill location with such strong demographics in major markets.” The buyer was a Virginia-based investor seeking stable income as a passive real estate owner. Continued Fallon, “The 15-year triple net lease with Dollar General’s guaranty provided a strong income stream for the buyer, who will have limited to no management responsibilities”. The buyer financed the purchase using a regional bank.

In July 2011, S&P raised Dollar General’s credit rating to BB+, the top rung before entering investment-grade territory and Moody’s raised its rating on the company to Ba2, which is two steps below investment grade on its scale. Dollar General Corporation is the nation’s largest small-box discount retailer, with more than 9,300 stores and 2010 sales in excess of $13.04 Billion.

Calkain is a full service real estate investment brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net-leased transactions as well as asset management, tax planning, and advisory services. Calkain has offices in Reston, VA (Washington, DC), Tampa, FL, Bethesda, MD, Wilmington, DE and Boston, MA. Additional information about the firm and its listings may be found at www.calkain.com.