Dollar General

Attractive Cap Rate: List price of $907,500 yielding an attractive 10.00% cap rate.
Renovated Building: ±12,168 square foot building constructed in 1952 with a renovation in 2011, situated on a ±0.89-acre parcel including 38 parking spaces.
Lease Extension Options: Less than one year remaining on the lease with three, 5-year options to extend; tenant has until 11/2/2026 to notify the landlord of intent to renew.
Scheduled Rent Increases: 10% rental increases at the start of each of the three, 5-year option periods.
Corporate Guarantee: Strong corporate guaranty from Dollar General Corporation, a Fortune 500 tenant with a BBB credit rating (S&P) and approximately $28 billion market cap.
NN+ Lease Structure: NN+ lease with landlord responsibilities limited to roof, structure, and parking lot; tenant responsible for all HVAC maintenance and replacement.
Maintenance Reimbursement: Tenant reimburses the landlord in full for all maintenance expenses related to the property and contributes an additional $300 per month toward property upkeep.
Prime Corner Location: The property is located on the corner of Alcoy St and E Seven Mile Rd (4 lanes), seeing over ±15,000 vehicles per day; East Seven Mile Road is a primary east-west commercial artery.
High Traffic Area: The property is just off Gratiot Ave, a main entryway into downtown Detroit with traffic counts exceeding ±27,000 vehicles per day.
Strong Demographics: The site is approximately ±10 miles from downtown Detroit, which has a population of 395,030 within a 5-mile radius and remains one of the most affordable major U.S. cities with median home prices roughly 30% below the national average.
Investor-Friendly Market: Detroit’s combination of low acquisition costs and available tax incentives creates a highly favorable environment for real estate investors, with properties generating strong yields relative to purchase price.

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Matt Fitzgerald