KLNB, the full-service commercial real estate brokerage, announced today that its Single Tenant Net Lease Group arranged the disposition of a 9,100-square-foot, freestanding Dollar General (NYSE:DG) located at 2217 W Beverley Street in Staunton, Va. The property was purchased for $1,500,000 equating to nearly $165 per square feet. The Group’s director, Peter Snell, along with Rich Sillery lead the disposition efforts.
KLNB took the property to market for the seller and procured the buyer with an absolute triple-net leased offering. The property has 11 years of primary term remaining with five, five-year options thereafter. The property’s CAP rate was 6.60% at the time of settlement and will have a 3% rental increase in 2022. Snell says the sale is part of a growing trend in the single tenant net leased investments and will be a win-win for both the seller and the buyer.
“This is a great example of what is driving today’s single tenant net leased market: a seller capitalizing on historical or near historical low CAP rates and a buyer seeking a management-free asset and hedging against future uncertainty,” said Snell. “By locking in a low interest rate and securing a cash flow guaranteed by strong corporate investment grade credit, the buyer will find great value in this property.”
The Dollar General is located within a dense residential community along West Beverley Street — one of Staunton’s main thoroughfares that runs directly through the heart of downtown. The property is exposed to 10,000 cars daily and is surrounded by 31,762 residents with an average household income of $56,358. Staunton is an independent city in Shenandoah Valley and was recently named one the best small towns in America.
“This Dollar General is in a prime location with other synergistic retailers as neighboring tenants,” said Snell. “The population within a five-mile radius has seen a steady growth over the years and if this trend continues, I am confident this property will continue to have success.”
KLNB formed its Single Tenant Net Lease Group in 2014 to provide advisory services for investment entities interested in the acquisition and disposition of single tenant net lease retail assets. The Group has handled more than 300 deals totaling more than $1 billion.
KLNB is the leading provider of commercial real estate services throughout the mid-Atlantic region. A full-service commercial brokerage and real estate services firm, KLNB provides a variety of services including tenant and landlord representation, leasing, investment sales, property management, financing, and appraisal & valuation services. Headquartered in Maryland, close to 80 full-time brokerage professionals work across KLNB’s five full-service offices located in Towson and Columbia, Md.; Washington, D.C.; and Dulles and Tysons, Va. http://klnb.com