Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Dollar General, a 9,014-square foot net-leased property located in Crescent City, Fla., according to Ari Ravi, regional manager of the firm’s Tampa office. The asset sold for $1,400,000.
Daniel Hurd, a senior investment advisor in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a private investor, was also secured and represented by Daniel Hurd.
Dollar General is located at 1126 County Road 309 in Crescent City, Fla. The site was built to suit for the tenant in 2011 and consists of 9,030 rentable square feet.
“We are seeing demand shift towards long term, passive investment. This is in large part due to the changing market sentiment and uncertainty over the next several years. Consequently, a big challenge we ran into on this deal was the dwindling lease term. Dollar General didn’t start operating under absolute net leases until approximately 2008, making this one of the first that will be up for renewal in the upcoming years. There is a bit of ambiguity among investors on how the NNN lease restructuring and or renewals will be handled as so many stores come due moving forward. Fortunately, we were able to procure a buyer who has had past experience with Dollar Generals, in addition to being comfortable with the ideal dollar store demographics in Crescent City. This deal ultimately sold to the 1031 exchange buyer at 97.85% of asking price,” says Mr. Hurd.
Dollar General is subject to an original 15-year absolute triple-net lease, which allows for no landlord responsibilities. Additionally, there are four, five-year renewal options with rental increases in each. The lease is corporately guaranteed by Dollar General, with a BBB credit rating by Standard & Poor's. The site is conveniently located near several neighborhood and has minimal area competition.
Crescent City is part of Putnam County, and is located 80 miles north of Orlando, Florida and 80 miles south of Jacksonville, Fla.
About Marcus & Millichap (NYSE: MMI)
With nearly 2000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,472 transactions in 2018 with a value of approximately $46.4 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
