OFFERING MEMORANDUM COMING SOON!
Transwestern National Net Lease | Sale Leaseback Group is pleased to present a rare opportunity to acquire a Dollar General ranked as one of the top visited Dollar General properties locally, statewide and nationally, according to Placer.ai data. The property, located at 1220 Pioneer Road, Mesquite, Texas, according to Placer.ai reports, is ranked as the 4th top visited Dollar General store out of 42 stores within a 15-mile radius, ranks in the top 5% statewide and the 4% out of all the Dollar General stores nationwide with a ranking of 630th out of nearly 19,000 stores across the country (Placer.ai report available upon request).
The Property was completed in February 2015 with significantly upgraded construction materials, a rarity for Dollar General stores. The initial term of the lease is 15-years and is structured as absolute triple net providing a truly passive investment for an investor with no landlord responsibilities. The store is located next to a busy car wash and is situated amidst extensive residential providing a built-in customer base.
Although no renewal is guaranteed, with this store’s top ranking, the odds are in the landlord’s favor that Dollar General will likely renew the lease effective March 1, 2030. Dollar General has three (3), five-year options to renew with 10% rental increases each. If DG exercises its first option at the 10% increase, the new combined NOI would equate to a 6.8% cap based on the asking price.
Additional Property Income:
In addition to the base rent being paid by Dollar General, the property also generates additional income from a recently executed cell tower lease, providing a total net operating income of $124,337.04 per year (see breakdown in OM).
Mesquite, Texas is located just 16 miles east of downtown Dallas. With the Dallas/Fort Worth Metroplex attaining a total population now of more than 8 million and the City of Dallas’ population at more than 1.3 million residents, Mesquite has its own powerful population statistic of nearly 150,000. Mesquite is known for its strong sense of community, affordable housing, and excellent infrastructure. One of Mesquite’s most unique attributes is its title as the Rodeo Capital of Texas being home to the Mesquite Championship Rodeo, a long-standing tradition that draws visitors from across the country.
Dollar General is a publicly traded company (NYSE: DG) and an investment grade tenant (S&P: BBB). Headquartered in Goodlettsville, Tennessee, Dollar General’s gross revenue for 2023 exceeded $38.7 billion with operating profit of $2.4 billion. Dollar General operates more than 19,000 stores with plans to open 800 more and remodel an additional 1,500 stores in 2024.
Details about the cell tower lease can be found in the OM.