Dollar General NNN Investment
For Sale
$1,355,785
3607 68th St SE, Caledonia, MI 49316
NNN leased Dollar General with corporate guarantee in Caledonia, MI.
Property Size9,301 SF
Lot Size1.83 Acres
Price / SF$145.77
Days on Market788
Property Features for 3607 68th St SE
General Information
Standard status
Active
Size
9,301 SF
Lot size
1.83 Acres
Property subtype
Retail
Zoning
C-1
Building Details
Building Size
9,301 SF
Year Built
2013
Buildings
1
Stories
1
Listing Agency:
Encore Real Estate Investment Services
(248) 702-0288
Listed By:
Deno Bistolarides · License #MI 6502378067
(248) 702-0288
Source:
Cpix.resimplifi
Added: Jun 25, 2024
Changed: Aug 8
Last Checked: Aug 20 at 4:08AM
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 Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This 9,301 square foot building, constructed in 2013 to suit Dollar General's specifications, is situated on 1.83 acres. The property is under an absolute NNN lease, offering zero landlord responsibilities. With over 4 years remaining on the lease, it includes five 5-year options to renew, each with increases in the option period. The location in Caledonia, a growing suburban market 20 minutes from downtown Grand Rapids, benefits from strong retail, residential, and industrial growth. The lease is corporately backed by Dollar General, rated "BBB" by Standard & Poor's. The property is located 1 mile from a 1MM square foot Amazon Fulfillment Center and an 800K SF Amazon Sort Center, constructed in 2020, employing close to 3,000 people. Its location on 68th Street, a retail mainstay in the Caledonia/Gaines Township market, is in close proximity to strong suburban residential developments and Gerald Ford International Airport. Within a 5-minute drive, there is 7.1M square feet of industrial & distribution space. Nearby properties include Steelcase Manufacturing (600K SF) and Coca Cola Distribution Center (200K SF), along with Amazon (1.8MM SF) and many other national, regional, and industrial & distribution tenants.
Key Highlights
- Absolute NNN Lease - Zero Landlord Responsibilities
- Corporate Backed Guarantee by Dollar General - 'BBB' By Standard & Poor's
- Strong Location and Demographics - Growing Suburban Market near Grand Rapids
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
$103,449
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
7.63%
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%
$2,068,980
$2.1M
Cap Rate 7%
$1,477,843
$1.5M
Cap Rate 9%
$1,149,433
$1.1M
Market Conditions
NOI Build-Up for 9,301 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
$144.0K $15.48/SF
− Vacancy
−$6.0K −$0.65/SF
EGI
$137.9K $14.83/SF
− OpEx
−$34.5K −$3.71/SF
NOI
$103.4K $11.12/SF
Area
Kent 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%
$2,068,980
Cap Rate 7%
$1,477,843
Cap Rate 9%
$1,149,433
Alternative Uses
Best Use
Specialty Retail
$1.48M
$1.29M – $1.72M
NOI $103,449 @ 7.0% cap · market cap 7.63%
Second Best
Retail
$1.38M
$1.21M – $1.61M
NOI $96,553 @ 7.0% cap · market cap 7.12%
Theoretical Best
Office A
$1.66M
$1.46M – $1.94M
NOI $116,448 @ 7.0% cap · market cap 8.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
136
Businesses Nearby
14k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon Petroleum
Shops & Services
7,484 visits/mo
0.1 miles
Dollar General
Shops & Services
6,611 visits/mo
0.1 miles
Demographics for 49316, MI
24,742
Population
9,673
Households
2.6
Avg Household Size
38
Median Age
45%
College-Educated
96%
High-School Grad
57.1 sq mi
ZIP Area
433
Density / Sq Mi
$101,548
Median Household Income
$49,178
Median Earnings
$1,299
Median Rent
$338,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - NNN leased Dollar General with corporate guarantee in Caledonia, MI.
Where is this nnn property located?
The property is located at 3607 68th St SE Caledonia, MI.
What is the asking price?
The asking price for this property is $1,355,785.
What are key features of this property?
This property features: Absolute NNN Lease - Zero Landlord Responsibilities; Corporate Backed Guarantee by Dollar General - 'BBB' By Standard & Poor's; Strong Location and Demographics - Growing Suburban Market near Grand Rapids
