Seven new Dollar General stores located in Pennsylvania, Ohio, Maine and Connecticut are also on the market for sale.
PHILADELPHIA—A portfolio of 26 single-tenant retail properties in Pennsylvania occupied by discount retailer Dollar General has changed hands in a deal valued at $36 million.
Brentwood, TN-based GBT Realty Corporation, which developed the properties over the past two years, sold the portfolio to a Virginia-based, private investment group that was completing a sizable 1031 exchange. SRS Real Estate Partners National Net Lease Group's executive managing director Andrew Fallon represented the seller in the deal. SRS Real Estate is headquartered in Dallas and recently opened a new location in Washington, DC.
Averaging a consideration of $1.4 million per location, each free-standing store features approximately 9,000 square feet of retail space and is absolute, triple-net leased to Dollar General Corporation which has provided its corporate guarantee on each lease. The leases all have between 12 and 13 years remaining with rent increases in each option period. The properties are all located in key suburban markets throughout the State of Pennsylvania.
"Discount retail continues to thrive as Dollar General, and its peers, open more stores each year," Fallon says. "For the net lease investor, these assets provide an attractive combination of credit, lease term, and passive ownership, making dollar stores some of the most actively traded net lease properties on the market."
Fallon notes that he is heading the marketing for additional Dollar Store inventory, including seven new Dollar General stores located in Pennsylvania, Ohio, Maine and Connecticut.
Dollar General currently operates more than 15,000 stores in 44 states and counting.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
