Building Details

Tenancy Single

Listing Agency: Encore Real Estate Investment Services

Listed By: Mike West · License #KY275615 Show Phone

Source: Crexi

Added: Sep 15 Changed: Sep 21 Last Checked: Sep 21 at 6:49AM

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Investment Insights

Based on property information with market context.

This 6,117-square-foot Dollar General store occupies a 1.0-acre site at 880 Pendleton Rd in Pendleton, Kentucky. The property is leased under a corporate guarantee, and the tenant has operated at the location for more than 15 years. An early renewal signed in 2024 begins in August 2025 and extends the lease through July 2030, followed by five additional 5-year renewal options that include rental increases.

The property is positioned approximately a half-mile from Interstate 71 and benefits from exposure to more than 39,000 vehicles per day at the nearby exit. Annual visitation is reported at more than 114,000. The store serves Pendleton and surrounding rural communities from a retail corridor located between Louisville and Cincinnati.

Key Highlights

• 6,117 SF Dollar General store on 1.0 acre
• Corporate‑guaranteed lease with term through July 2030
• Five additional 5‑year renewal options with rental increases

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

$61,120

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

6.61%

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%

$1,222,400 $1.2M

Cap Rate 7%

$873,143 $873.1K

Cap Rate 9%

$679,111 $679.1K

Market Conditions

NOI Build-Up for 6,117 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

$95.4K $15.60/SF

− Vacancy

−$8.1K −$1.33/SF

EGI

$87.3K $14.27/SF

− OpEx

−$26.2K −$4.28/SF

NOI

$61.1K $9.99/SF

Area

Henry County, KY

Vacancy

8.50%

Lease Rate

$15.60 /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%

$1,222,400

Cap Rate 7%

$873,143

Cap Rate 9%

$679,111

Alternative Uses

Best Use

Retail

$873.1K

$764.0K – $1.02M (±1% cap)

NOI $61,120 @ 7.0% cap · market cap 6.61%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.29M

$1.13M – $1.50M (±1% cap)

NOI $90,269 @ 7.0% cap · market cap 9.76%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Retail space

Suggested Use

Top Pick Building Supply HVAC Service (Bike/Boat/Book/etc) Store Parking Lot & Garage Pharmacy Big Box & Wholesale Store

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

40

Businesses Nearby

5k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

5,287 visits/mo 0.2 miles

Demographics for 40055, KY

2,070

Population

1,040

Households

2

Avg Household Size

45

Median Age

15%

College-Educated

89%

High-School Grad

23.6 sq mi

ZIP Area

88

Density / Sq Mi

$83,401

Median Household Income

$48,101

Median Earnings

$1,096

Median Rent

$193,900

Median Home Value

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 nnn properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

NNN property - Corporate-backed net lease with renewal options and an established retail tenancy.

Where is this nnn property located?

The property is located at 880 PENDLETON RD Pendleton, KY.

What is the asking price?

The asking price for this property is $925,000.

What are key features of this property?

This property features: 6,117 SF Dollar General store on 1.0 acre; Corporate‑guaranteed lease with term through July 2030; Five additional 5‑year renewal options with rental increases