Building Details

Year Built 1997

Listing Agency: Fortis Net Lease r***@fortisnetlease.com Show Phone

Listed By: Doug Passon · License #MI 6502361821

Source: Crexi

Added: Dec 8, 2023 Changed: Aug 20 Last Checked: May 12 at 10:53PM

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Investment Insights

Based on property information with market context.

This 9,014 SF Dollar General store is located in Caseville, MI. The tenant extended the NNN lease for 7 years and 5 months, effective January 1st, 2021. The lease is corporately guaranteed by Dollar General, which holds a credit rating of "BBB" and is classified as Investment Grade. Landlord responsibilities are limited. According to Placer.AI estimates, this location generates over $2.1 million in annual sales, ranking it among the top 3 stores in the county. The rent to sales ratio is less than 3%. In 2023, the seller replaced both HVAC units at a cost of $40,000. The Dollar General is positioned on Main Street, the main thoroughfare of Caseville, running directly through the central business district, providing high visibility. The ten-mile population is 8,508 residents, and the ten-mile average household income is $39,999 per year. This property represents an opportunity for a 1031 exchange buyer or a passive investor to acquire the fee simple ownership of a Dollar General. The property is suitable for commercial real estate and NNN property investment.

Key Highlights

• NNN lease extended for 7 years and 5 months, providing stable income.
• Corporately guaranteed lease by Dollar General, an investment‑grade tenant.
• High‑performing Dollar General location with estimated annual sales of over $2.1 million.

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

$74,597

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

8.90%

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%

$1,491,940 $1.5M

Cap Rate 7%

$1,065,671 $1.1M

Cap Rate 9%

$828,856 $828.9K

Market Conditions

NOI Build-Up for 9,014 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

$129.8K $14.40/SF

− Vacancy

−$23.2K −$2.58/SF

EGI

$106.6K $11.82/SF

− OpEx

−$32.0K −$3.55/SF

NOI

$74.6K $8.28/SF

Area

Huron County, MI

Vacancy

17.90%

Lease Rate

$14.40 /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%

$1,491,940

Cap Rate 7%

$1,065,671

Cap Rate 9%

$828,856

Alternative Uses

Best Use

Specialty Retail

$1.51M

$1.32M – $1.76M (±1% cap)

NOI $105,869 @ 7.0% cap · market cap 12.63%

Second Best

Retail

$1.07M

$932.5K – $1.24M (±1% cap)

NOI $74,597 @ 7.0% cap · market cap 8.90%

Theoretical Best

Warehouse

$2.10M

$1.83M – $2.45M (±1% cap)

NOI $146,789 @ 7.0% cap · market cap 17.51%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick Auto Repair Shop Pharmacy Furniture & Home Goods Bakery (Bike/Boat/Book/etc) Store 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.

Location Intelligence

Trade Area within ½ mile

153

Businesses Nearby

6k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 74% Home Improvements & Furnishings 26%

Dollar General Shops & Services

3,555 visits/mo 0.2 miles

True Value Hardware Home Improvements & Furnishings

1,634 visits/mo 0.4 miles

Independent Bank Shops & Services

1,106 visits/mo 0.0 miles

Demographics for 48725, MI

1,983

Population

2,703

Households

0.7

Avg Household Size

59

Median Age

22%

College-Educated

94%

High-School Grad

33.5 sq mi

ZIP Area

59

Density / Sq Mi

$60,260

Median Household Income

$36,875

Median Earnings

$541

Median Rent

$167,900

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?

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Similar Off Market Nearby

• Caseville Family Market — 6730 Main St, Caseville, MI 48725

Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Dollar General store in Caseville, MI with extended NNN lease.

Where is this grocery and convenience store located?

The property is located at 6850 Main St Caseville, MI.

What is the asking price?

The asking price for this property is $838,400.

What are key features of this property?

This property features: NNN lease extended for 7 years and 5 months, providing stable income.; Corporately guaranteed lease by Dollar General, an investment‑grade tenant.; High‑performing Dollar General location with estimated annual sales of over $2.1 million.