Listing Agency: Trinity Real Estate Investment Services - Corporate Show Phone

Listed By: Cody Crist · License #697980 Show Phone

Source: Moodyscre

Added: Jul 4, 2024 Changed: Aug 15 Last Checked: Sep 7 at 10:37AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Trinity Real Estate Investment Services - Corporate

Investment Insights

Based on property information with market context.

This property features a Dollar General Market under development in 2024, accompanied by a 15-year absolute NNN lease. The lease includes attractive 5% rental increases every 5 years throughout the primary term and option periods. The property is strategically located along Alameda Ave (FM 793), which generates almost 10,000 vehicles per day in front of the location. The lease is corporately guaranteed by Dollar General, which operates over 20,000 stores nationwide. The surrounding area has a healthy 5-mile demographic for a Dollar Store, with over 9,000 residents. The subject property is less than half a mile from Fabens Airport and is located 28 miles from downtown El Paso, the most populous city in West Texas. The property size is 12,774 square feet.

Key Highlights

• 15‑year absolute NNN lease for a hands‑off investment
• Attractive 5% rental increases every 5 years
• Corporately guaranteed lease by Dollar General, a major national corporation

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$109,576

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

4.09%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$2,191,520 $2.2M

Cap Rate 7%

$1,565,371 $1.6M

Cap Rate 9%

$1,217,511 $1.2M

Market Conditions

NOI Build-Up for 12,774 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$183.9K $14.40/SF

− Vacancy

−$27.4K −$2.15/SF

EGI

$156.5K $12.25/SF

− OpEx

−$47.0K −$3.68/SF

NOI

$109.6K $8.58/SF

Area

El Paso County, TX

Vacancy

14.90%

Lease Rate

$14.40 /SF/Yr

Expense Ratio

30.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$2,191,520

Cap Rate 7%

$1,565,371

Cap Rate 9%

$1,217,511

Alternative Uses

Best Use

Retail

$1.57M

$1.37M – $1.83M (±1% cap)

NOI $109,576 @ 7.0% cap · market cap 4.09%

Second Best

Specialty Retail

$852.6K

$746.0K – $994.7K (±1% cap)

NOI $59,680 @ 7.0% cap · market cap 2.23%

Theoretical Best

Office A

$2.31M

$2.02M – $2.69M (±1% cap)

NOI $161,596 @ 7.0% cap · market cap 6.03%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Location Intelligence

Trade Area within ½ mile

45

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - New Dollar General Market with 15-year absolute NNN lease.

Where is this grocery and convenience store located?

The property is located at 15995 Alameda Fabens, TX.

What is the asking price?

The asking price for this property is $2,679,615.

What are key features of this property?

This property features: 15‑year absolute NNN lease for a hands‑off investment; Attractive 5% rental increases every 5 years; Corporately guaranteed lease by Dollar General, a major national corporation