Dollar General NNN Investment
For Sale
Contact for pricing
Pending
1555 Washington Blvd, McKeesport, PA 15133
NNN leased Dollar General with corporate guarantee and rent increases.
Property Size10,566 SF
Days on Market1242
Property Features for 1555 Washington Blvd
General Information
Standard status
Pending
Size
10,566 SF
Property subtype
Retail
Zoning
Commercial
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Building Details
Year Built
2023
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Foundry Real Estate Development
Listed By:
Brendan Eisenbrandt · License #PA RS330265
Source:
Crexi
Added: Apr 11, 2023
Changed: Aug 8
Last Checked: Jul 24 at 3:27PM
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 Foundry Real Estate Development
Investment Insights
Based on property information with market context.
This property is subject to a 15-year absolute NNN lease with zero landlord responsibilities. The lease commenced on May 9, 2023, and includes 3 five-year options. Rent increases of 5% are scheduled every 5 years. The lease is corporate guaranteed by Dollar General Corporation, which holds an investment-grade rating of BBB by Standard and Poor’s. The property is located within a 5-mile radius of a population exceeding 131,000. The property is suitable for commercial real estate and NNN investment purposes.
Key Highlights
- Corporate Guaranteed by Dollar General Corporation (Investment grade rated BBB by Standard and Poor’s)
- 15‑yr Absolute NNN Lease (Zero Landlord Responsibilities)
- Enjoy -5% Rent Increases Every 5yrs
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
$123,147
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
6.45%
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%
$2,462,940
$2.5M
Cap Rate 7%
$1,759,243
$1.8M
Cap Rate 9%
$1,368,300
$1.4M
Market Conditions
NOI Build-Up for 10,566 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
$190.2K $18.00/SF
− Vacancy
−$14.3K −$1.35/SF
EGI
$175.9K $16.65/SF
− OpEx
−$52.8K −$5.00/SF
NOI
$123.1K $11.66/SF
Area
Allegheny County, PA
Vacancy
7.50%
Lease Rate
$18.00 /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%
$2,462,940
Cap Rate 7%
$1,759,243
Cap Rate 9%
$1,368,300
Alternative Uses
Best Use
Retail
$1.76M
$1.54M – $2.05M
NOI $123,147 @ 7.0% cap · market cap 6.45%
Second Best
Specialty Retail
$1.50M
$1.31M – $1.75M
NOI $104,794 @ 7.0% cap · market cap 5.49%
Theoretical Best
Office A
$2.69M
$2.35M – $3.14M
NOI $188,393 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
83
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 15133, PA
6,144
Population
3,086
Households
2
Avg Household Size
45
Median Age
19%
College-Educated
93%
High-School Grad
3.4 sq mi
ZIP Area
1,807
Density / Sq Mi
$66,630
Median Household Income
$41,604
Median Earnings
$923
Median Rent
$89,000
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Grocery and convenience store - NNN leased Dollar General with corporate guarantee and rent increases.
Where is this grocery and convenience store located?
The property is located at 1555 Washington Blvd McKeesport, PA.
What is the asking price?
The asking price for this property is $1,907,965.
What are key features of this property?
This property features: Corporate Guaranteed by Dollar General Corporation (Investment grade rated BBB by Standard and Poor’s); 15‑yr Absolute NNN Lease (Zero Landlord Responsibilities); Enjoy -5% Rent Increases Every 5yrs
