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: Aug 27, 2024 Changed: Aug 24 Last Checked: Aug 30 at 8:49PM

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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 rent commenced on December 1, 2023, and includes 5% rent increases every five years, along with three five-year options. The lease is corporate guaranteed by Dollar General Corporation, which holds an investment-grade rating of BBB by Standard and Poor’s. The surrounding area has a population of over 11,700 within a 5-mile radius and an average daily traffic count of 6,211.

Key Highlights

• Corporate Guaranteed by Dollar General Corporation (Investment grade rated BBB)
• 15‑yr Absolute NNN Lease (Zero Landlord Responsibilities)
• 5% Rent Increases Every 5 years

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

$99,294

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

5.48%

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%

$1,985,880 $2.0M

Cap Rate 7%

$1,418,486 $1.4M

Cap Rate 9%

$1,103,267 $1.1M

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

$158.5K $15.00/SF

− Vacancy

−$16.6K −$1.58/SF

EGI

$141.8K $13.43/SF

− OpEx

−$42.6K −$4.03/SF

NOI

$99.3K $9.40/SF

Area

Lackawanna County, PA

Vacancy

10.50%

Lease Rate

$15.00 /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%

$1,985,880

Cap Rate 7%

$1,418,486

Cap Rate 9%

$1,103,267

Alternative Uses

Best Use

Retail

$1.42M

$1.24M – $1.65M (±1% cap)

NOI $99,294 @ 7.0% cap · market cap 5.48%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.68M

$2.35M – $3.13M (±1% cap)

NOI $187,729 @ 7.0% cap · market cap 10.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Storefront properties

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Explore this area Business Placement

Demographics for 16625, PA

3,402

Population

1,626

Households

2.1

Avg Household Size

43

Median Age

15%

College-Educated

94%

High-School Grad

32.0 sq mi

ZIP Area

106

Density / Sq Mi

$53,836

Median Household Income

$41,837

Median Earnings

$887

Median Rent

$158,600

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

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What type of property is this? Where is this nnn properties 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?

NNN property - NNN leased Dollar General with corporate guarantee and rent increases.

Where is this nnn property located?

The property is located at 138 Polecat Hollow Rd Greenfield Township, PA.

What is the asking price?

The asking price for this property is $1,812,060.

What are key features of this property?

This property features: Corporate Guaranteed by Dollar General Corporation (Investment grade rated BBB); 15‑yr Absolute NNN Lease (Zero Landlord Responsibilities); 5% Rent Increases Every 5 years