Building Details

Year Built 2024

Buildings 1

Stories 1

Tenancy Single

Listing Agency: Saurage Rotenberg Commercial Real Estate

Listed By: Mike Stinson, CCIM · License #LA SALE.0000071948-ACT

Source: Crexi

Added: Aug 12, 2022 Changed: Aug 19 Last Checked: Sep 4 at 8:10AM

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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 Saurage Rotenberg Commercial Real Estate

Investment Insights

Based on property information with market context.

This built-to-suit 10,500 square foot Dollar Tree & Family Dollar hybrid store is located in Hineston, Louisiana. The property is subject to a ten-year double net lease, assigning minimal landlord responsibilities. The lease includes five, five-year options to renew, each with a $0.50 per square foot rent increase. The lease is corporately guaranteed by Dollar Tree Corporation, which holds a credit rating of "BBB-", classified as investment grade. The store is positioned in the heart of Hineston, directly off Highway 121, which sees over 2,557 cars per day. The five-mile population is 2,649 with an average household income exceeding $70,596. The property, built in 2024, sits on 1.70 acres. The lease, which commenced on June 1, 2024, and ends on May 31, 2034, generates an annual rent of $105,000. Tenant is responsible for taxes, insurance, and CAM, while the landlord maintains responsibility for the roof, structure, and parking. Dollar Tree, Inc. operates discount retail stores in the United States and Canada, with over 15,000 stores and a revenue exceeding $24 billion. The company is ranked #134 on Fortune 500 in 2020.

Key Highlights

• Corporately guaranteed lease by Dollar Tree Corporation with an investment‑grade credit rating of 'BBB-'.
• New 10,500 SF Dollar Tree & Family Dollar hybrid store** with a brand new 10‑year double net (NN) lease.
• Strategically located in the heart of Hineston, LA, with high visibility directly off Hwy. 121.

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

$128,151

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

8.84%

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%

$2,563,020 $2.6M

Cap Rate 7%

$1,830,729 $1.8M

Cap Rate 9%

$1,423,900 $1.4M

Market Conditions

NOI Build-Up for 10,500 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

$178.9K $17.04/SF

− Vacancy

−$8.1K −$0.77/SF

EGI

$170.9K $16.27/SF

− OpEx

−$42.7K −$4.07/SF

NOI

$128.2K $12.20/SF

Area

Rapides County, LA

Vacancy

4.50%

Lease Rate

$17.04 /SF/Yr

Expense Ratio

25.00%

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%

$2,563,020

Cap Rate 7%

$1,830,729

Cap Rate 9%

$1,423,900

Alternative Uses

Best Use

Specialty Retail

$1.83M

$1.60M – $2.14M (±1% cap)

NOI $128,151 @ 7.0% cap · market cap 8.84%

Second Best

Retail

$1.80M

$1.58M – $2.11M (±1% cap)

NOI $126,346 @ 7.0% cap · market cap 8.71%

Theoretical Best

Office A

$2.89M

$2.53M – $3.38M (±1% cap)

NOI $202,608 @ 7.0% cap · market cap 13.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Grocery and convenience stores

Location Intelligence

Trade Area within ½ mile

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 71438, LA

1,595

Population

459

Households

3.5

Avg Household Size

43

Median Age

10%

College-Educated

84%

High-School Grad

137.7 sq mi

ZIP Area

12

Density / Sq Mi

$56,516

Median Household Income

$46,000

Median Earnings

$157,500

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?

Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Built-to-suit store with a 10-year double net lease.

Where is this grocery and convenience store located?

The property is located at 1777 LA-121 Leander, LA.

What is the asking price?

The asking price for this property is $1,450,000.

What are key features of this property?

This property features: Corporately guaranteed lease by Dollar Tree Corporation with an investment‑grade credit rating of 'BBB-'.; New 10,500 SF Dollar Tree & Family Dollar hybrid store** with a brand new 10‑year double net (NN) lease.; Strategically located in the heart of Hineston, LA, with high visibility directly off Hwy. 121.