Building Details

Tenancy Single

Listing Agency: Colliers - Los Angeles - Orange County, California Show Phone

Listed By: Jereme Snyder · License #CA 01360233

Source: Crexi

Added: Apr 22, 2024 Changed: Aug 8 Last Checked: Aug 19 at 10:36AM

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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 Colliers - Los Angeles - Orange County, California

Investment Insights

Based on property information with market context.

This is an opportunity to purchase a single tenant net leased asset occupied by Dollar General, located in Alexander, Arkansas. The property is a Dollar General Market, which includes produce and fresh meats. The lease is new with a 15-year term commencing in May of 2024. The lease includes five, 5-year options and 5.0% rental escalations every five years. The property size is 12668 square feet.

Key Highlights

• Brand new 15‑year lease commencing May 2024.
• Tenant is Dollar General (NASDAQ: DG), a publicly traded company.
• Dollar General Market format includes produce and fresh meats.

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

$138,889

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

6.27%

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%

$2,777,780 $2.8M

Cap Rate 7%

$1,984,129 $2.0M

Cap Rate 9%

$1,543,211 $1.5M

Market Conditions

NOI Build-Up for 12,668 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

$211.3K $16.68/SF

− Vacancy

−$12.9K −$1.02/SF

EGI

$198.4K $15.66/SF

− OpEx

−$59.5K −$4.70/SF

NOI

$138.9K $10.96/SF

Area

Saline County, AR

Vacancy

6.10%

Lease Rate

$16.68 /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%

$2,777,780

Cap Rate 7%

$1,984,129

Cap Rate 9%

$1,543,211

Alternative Uses

Best Use

Retail

$1.98M

$1.74M – $2.31M (±1% cap)

NOI $138,889 @ 7.0% cap · market cap 6.27%

Second Best

Specialty Retail

$1.84M

$1.61M – $2.14M (±1% cap)

NOI $128,469 @ 7.0% cap · market cap 5.80%

Theoretical Best

Office A

$2.76M

$2.42M – $3.23M (±1% cap)

NOI $193,514 @ 7.0% cap · market cap 8.74%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

dg market Grocery & Convenience Store

Suggested Use

Top Pick Auto Repair Shop Hair Salon Law Firm Furniture & Home Goods Grocery & Convenience Store Nail Salon

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

Location Intelligence

Trade Area within ½ mile

18

Businesses Nearby

5k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

4,631 visits/mo 0.0 miles

Demographics for 72002, AR

18,477

Population

8,071

Households

2.3

Avg Household Size

36

Median Age

28%

College-Educated

89%

High-School Grad

65.9 sq mi

ZIP Area

280

Density / Sq Mi

$78,260

Median Household Income

$47,835

Median Earnings

$1,028

Median Rent

$202,900

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 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 15-year NNN lease with rental escalations.

Where is this grocery and convenience store located?

The property is located at 16453 Vimy Ridge Rd Alexander, AR.

What is the asking price?

The asking price for this property is $2,214,830.

What are key features of this property?

This property features: Brand new 15‑year lease commencing May 2024.; Tenant is Dollar General (NASDAQ: DG), a publicly traded company.; Dollar General Market format includes produce and fresh meats.