NEW YORK – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has received the exclusive listing for a 10- property Dollar General store portfolio with properties located in Alabama, Florida, Illinois, Indiana, Mississippi, Oklahoma and South Carolina. The $18 million listing price equates to $170 per square foot.
Preet Sabharwal, a senior associate in Marcus & Millichap’s Manhattan office, is advising the seller, a New York-based private equity firm, with the assistance of Mark Boyce, a senior associate in Charleston, S.C., Eddie Greenhalgh, senior associate in Birmingham, Ala., Tom Mann, an associate in Tulsa, Okla., and Anne Williams, an associate in Memphis, Tenn.
“All of the stores in the portfolio are of new construction with long-term leases in place,” says Sabharwal. “We are offering a blend of Dollar General Market stores, Dollar General Plus stores and standard Dollar General stores. The leases are all absolute triple-net, guaranteed by Dollar General Corp. and have 3 percent escalation in year 11 and in the option period.”
“There is a favorable assumable debt scenario in place with a 4.24 percent fixed interest rate,” adds Sabharwal.
The properties are:
* Dollar General Plus, Parrish, Ala., 11,000 sf
* Dollar General, Holy Hill, Fla., 9,100 sf
* Dollar General, Jacksonville, Fla., 9,100 sf
* Dollar General, Coulterville, Ill., 9,100 sf
* Dollar General, Dongola, Ill., 9,100 sf
* Dollar General Market, Bicknell, Ind., 20,700 sf
* Dollar General, Laurel, Miss., 9,026 sf
* Dollar General Plus, Monticello, Miss., 10,640 sf
* Dollar General, Tulsa, Okla., 9,100 sf
* Dollar General, Fair Play, S.C., 9,100 sf
Dollar General Corp., the nation’s largest small-box discount retailer, was founded in 1939. The company is publicly traded on the New York Stock Exchange under the ticker symbol “DG” and its credit rating was recently upgraded to investment grade BBB- by Standard & Poor’s.
J.D. Parker, first vice president and regional manager of Marcus & Millichap’s Manhattan office, is the firm’s broker of record in New York. Kirk Felici, first vice president and regional manager of Marcus & Millichap’s Miami office, is the firm’s broker of record in Florida. Josh Caruana, regional manager of the firm’s Indianapolis office is Marcus & Millichap’s broker of record in Indiana and John Przybyla, first vice president and regional manager of Marcus & Millichap’s Chicago Downtown office, is the firm’s broker of record in Illinois.