NNN Lease Dollar General
For Sale
Contact for pricing
1406 US-2, Bessemer, MI 49911
New 2020 Dollar General with long-term NNN lease.
Property Size9,100 SF
Price / SF$136.92
Days on Market205
Property Features for 1406 US-2
General Information
Standard status
Active
Size
9,100 SF
Class
B
Property subtype
Retail
Zoning
Commercial
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$93,500
Building Details
Year Built
2020
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Indianapolis
(317) 218-5314
Listed By:
Madison Harman · License #IN RB14052326
Source:
Crexi
Added: Jan 28
Changed: Aug 8
Last Checked: Jul 15 at 10:52PM
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 Marcus & Millichap - Indianapolis
Investment Insights
Based on property information with market context.
This property, built in 2020, is occupied by Dollar General (NYSE: DG), which has over 20,500 locations in 48 states and holds a BBB rating by S&P. The tenant recently completed an interior remodel, demonstrating commitment to the site. The property has 10.67 years remaining on an absolute NNN lease, meaning there are no landlord responsibilities. The lease includes 10% rental increases in each five-year option period. The building features a metal roof and a corporate guarantee. The property is located near residential areas and local area retail establishments and benefits from year-round visitors to nearby recreational areas such as Ottawa National Forest, Lake Superior, Bluff Valley Park, Black River Falls, and the Iron Belle Trail. It is situated near Black River Ski Resort, Snowriver Mountain Resort, Big Powderhorn Mountain and Blackjack Ski Area and five miles from Indianhead Valley Condos. The location offers excellent visibility from highly trafficked US Hwy 2, the longest highway in the Upper Peninsula, which connects Ironwood and Wakefield, MI. The property is suitable for grocery and convenience store, retail, and specialty purposes.
Key Highlights
- Absolute NNN Lease with 10.67 Years Remaining - No Landlord Responsibilities
- 10% Rental Increases in Each Five‑Year Option
- Corporate Guarantee from Dollar General (NYSE: DG), BBB Rated by S&P
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
$101,214
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
8.12%
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%
$2,024,280
$2.0M
Cap Rate 7%
$1,445,914
$1.4M
Cap Rate 9%
$1,124,600
$1.1M
Market Conditions
NOI Build-Up for 9,100 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
$140.9K $15.48/SF
− Vacancy
−$5.9K −$0.65/SF
EGI
$135.0K $14.83/SF
− OpEx
−$33.7K −$3.71/SF
NOI
$101.2K $11.12/SF
Area
Gogebic County, MI
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
25.00%
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%
$2,024,280
Cap Rate 7%
$1,445,914
Cap Rate 9%
$1,124,600
Alternative Uses
Best Use
Specialty Retail
$1.45M
$1.27M – $1.69M
NOI $101,214 @ 7.0% cap · market cap 8.12%
Second Best
Retail
$1.35M
$1.18M – $1.57M
NOI $94,466 @ 7.0% cap · market cap 7.58%
Theoretical Best
Office A
$1.93M
$1.69M – $2.25M
NOI $135,286 @ 7.0% cap · market cap 10.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49911, MI
2,626
Population
1,879
Households
1.4
Avg Household Size
49
Median Age
19%
College-Educated
97%
High-School Grad
45.5 sq mi
ZIP Area
58
Density / Sq Mi
$51,326
Median Household Income
$28,778
Median Earnings
$529
Median Rent
$109,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - New 2020 Dollar General with long-term NNN lease.
Where is this grocery and convenience store located?
The property is located at 1406 US-2 Bessemer, MI.
What is the asking price?
The asking price for this property is $1,246,000.
What are key features of this property?
This property features: Absolute NNN Lease with 10.67 Years Remaining - No Landlord Responsibilities; 10% Rental Increases in Each Five‑Year Option; Corporate Guarantee from Dollar General (NYSE: DG), BBB Rated by S&P
