Building Details

Tenancy Single

Listing Agency: Matthews Real Estate Investment Services j***@matthews.com Show Phone

Listed By: Joe Nelson · License #02012421 Show Phone

Source: Moodyscre

Added: Dec 11, 2024 Changed: Aug 11 Last Checked: Aug 12 at 12:22PM

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Investment Insights

Based on property information with market context.

Absolute NNN leased retail property with no landlord responsibilities. The lease term includes 4+ years remaining and three, 5-year option periods, each with 10% rent increases. This provides a long runway of contract duration with scheduled escalations tied to the option periods.

The property is located at 305 S Main St, Pleasant Hill, OH 45359. The immediate tenant is Dollar General, and the company is described as having an investment-grade credit rating of BBB (S&P). The market context provided includes limited nearby grocery competition, with no grocery stores and one convenience store in Pleasant Hill.

Access and regional draw are supported by the drive times noted: approximately a 30-minute drive from Downtown Dayton, OH and about a 24-minute drive from Dayton International Airport. The property size is 9,026 SF.

Key Highlights

• Absolute NNN lease structure with no landlord responsibilities
• 4+ years remaining plus three 5‑year option periods
• 10% rent increases in each option period

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

$85,159

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

8.66%

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%

$1,703,180 $1.7M

Cap Rate 7%

$1,216,557 $1.2M

Cap Rate 9%

$946,211 $946.2K

Market Conditions

NOI Build-Up for 9,026 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

$130.0K $14.40/SF

− Vacancy

−$8.3K −$0.92/SF

EGI

$121.7K $13.48/SF

− OpEx

−$36.5K −$4.04/SF

NOI

$85.2K $9.43/SF

Area

Miami County, OH

Vacancy

6.40%

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%

$1,703,180

Cap Rate 7%

$1,216,557

Cap Rate 9%

$946,211

Alternative Uses

Best Use

Retail

$1.22M

$1.06M – $1.42M (±1% cap)

NOI $85,159 @ 7.0% cap · market cap 8.66%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.84M

$1.61M – $2.15M (±1% cap)

NOI $128,770 @ 7.0% cap · market cap 13.09%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Real Estate Agency Auto Parts Store Pharmacy Grocery & Convenience Store Kitchen & Bath Showroom Bakery

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Single-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

68

Businesses Nearby

10k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Marathon Shops & Services

5,282 visits/mo 0.1 miles

Dollar General Shops & Services

4,577 visits/mo 0.1 miles

Demographics for 45359, OH

1,996

Population

740

Households

2.7

Avg Household Size

42

Median Age

20%

College-Educated

97%

High-School Grad

13.8 sq mi

ZIP Area

145

Density / Sq Mi

$70,707

Median Household Income

$40,579

Median Earnings

$725

Median Rent

$186,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

NNN property - Absolute NNN lease with four-plus years remaining and three five-year option periods with 10% rent increases each.

Where is this nnn property located?

The property is located at 305 S Main St Pleasant Hill, OH.

What is the asking price?

The asking price for this property is $983,602.

What are key features of this property?

This property features: Absolute NNN lease structure with no landlord responsibilities; 4+ years remaining plus three 5‑year option periods; 10% rent increases in each option period