Building Details

Year Built 2011

Tenancy Single

Listing Agency: SEPG ASSOCIATES

Listed By: Eric Hillenbrand, CCIM, CLS · License #IN RB14037337

Source: Crexi

Added: Mar 12, 2024 Changed: Sep 7 Last Checked: Sep 11 at 6:30AM

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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 SEPG ASSOCIATES

Investment Insights

Based on property information with market context.

This 9,504 SF Dollar General store is located in Lizton, Indiana, part of the Indianapolis MSA. Constructed and opened in 2011, the property was originally leased on a 15-year NNN basis, assigning zero landlord responsibilities. The lease, corporately guaranteed by Dollar General Corporation (rated BBB, investment grade), includes 5% rent increases every 5 years, including at each of the five 5-year renewal options. The current rent is $80,442.58, with a 10% increase scheduled in just under 3 years, and another 10% increase for each 5-year option.

Key Highlights

• Corporately guaranteed lease by Dollar General Corporation (BBB Investment Grade).
• NNN lease structure with zero landlord responsibilities.
• Rent increases of 5% every 5 years, including option periods.

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

$108,724

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

9.18%

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%

$2,174,480 $2.2M

Cap Rate 7%

$1,553,200 $1.6M

Cap Rate 9%

$1,208,044 $1.2M

Market Conditions

NOI Build-Up for 9,026 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

$162.5K $18.00/SF

− Vacancy

−$7.1K −$0.79/SF

EGI

$155.3K $17.21/SF

− OpEx

−$46.6K −$5.16/SF

NOI

$108.7K $12.05/SF

Area

Hendricks County, IN

Vacancy

4.40%

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%

$2,174,480

Cap Rate 7%

$1,553,200

Cap Rate 9%

$1,208,044

Alternative Uses

Best Use

Specialty Retail

$1.66M

$1.46M – $1.94M (±1% cap)

NOI $116,490 @ 7.0% cap · market cap 9.83%

Second Best

Retail

$1.55M

$1.36M – $1.81M (±1% cap)

NOI $108,724 @ 7.0% cap · market cap 9.18%

Theoretical Best

Office A

$2.27M

$1.98M – $2.64M (±1% cap)

NOI $158,603 @ 7.0% cap · market cap 13.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Dollar General Discount Store Western Union Bank FedEx OnSite Postal Service

Suggested Use

Top Pick HVAC Service Dental Office Grocery & Convenience Store Storage Facility Bakery Garden Center

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

74

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 46149, IN

1,894

Population

816

Households

2.3

Avg Household Size

43

Median Age

32%

College-Educated

94%

High-School Grad

26.6 sq mi

ZIP Area

71

Density / Sq Mi

$86,625

Median Household Income

$48,854

Median Earnings

$1,107

Median Rent

$242,400

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 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?

Frequently Asked Questions

What type of property is this?

Grocery and convenience store - 9,504 SF Dollar General store in Indianapolis MSA.

Where is this grocery and convenience store located?

The property is located at 101 N State St Lizton, IN.

What is the asking price?

The asking price for this property is $1,185,000.

What are key features of this property?

This property features: Corporately guaranteed lease by Dollar General Corporation (BBB Investment Grade).; NNN lease structure with zero landlord responsibilities.; Rent increases of 5% every 5 years, including option periods.