Building Details

Building Size 9,100 SF

Year Built 2009

Tenancy Single

Listing Agency: NAI Capital Finance

Listed By: Daniel Miller · License #CalDRE #00765657 Show Phone

Source: Www2.naicapital

Added: Jun 2 Changed: Aug 19 Last Checked: Aug 24 at 4:58AM

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Investment Insights

Based on property information with market context.

This investment features a classic 9,100-square-foot, build-to-suit Dollar General store that has served the Strong community for the past 15 years. Dollar General recently extended its lease term by more than 9 years, reflecting continued commitment to the location and long-term occupancy since 2009. The lease includes a corporate guaranty backed by investment-grade credit, along with three 5-year options that provide for a 10% increase at each option period.

Strategically positioned just off the prime Highway 82 corridor, the property is designed for strong visibility and convenient accessibility. The site also benefits from limited dollar store competition in Strong, Arkansas, supporting durable demand from loyal local shoppers.

For investors seeking stabilized income, this property offers a long-term, corporate-guarantied tenant profile with minimal management needs. The lease is structured as a double net arrangement, with the landlord responsible for roof and structure, while maintaining just under 9 years remaining as the lease expires on 7/31/2034. With a track record of tenant longevity and extended terms, the asset is well-suited to long-horizon income strategies.

Key Highlights

• 9,100 SF Dollar General built in 2009 on a build‑to‑suit DG prototype store model
• Just under 9 years remaining on the lease, expiring 7/31/2034
• Dollar General corporate guaranty and investment‑grade credit tenant

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

$83,145

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

8.97%

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%

$1,662,900 $1.7M

Cap Rate 7%

$1,187,786 $1.2M

Cap Rate 9%

$923,833 $923.8K

Market Conditions

NOI Build-Up for 9,100 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

$117.9K $12.96/SF

− Vacancy

−$7.1K −$0.78/SF

EGI

$110.9K $12.18/SF

− OpEx

−$27.7K −$3.05/SF

NOI

$83.1K $9.14/SF

Area

Union County, AR

Vacancy

6.00%

Lease Rate

$12.96 /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%

$1,662,900

Cap Rate 7%

$1,187,786

Cap Rate 9%

$923,833

Alternative Uses

Best Use

Specialty Retail

$1.19M

$1.04M – $1.39M (±1% cap)

NOI $83,145 @ 7.0% cap · market cap 8.97%

Second Best

Retail

$1.03M

$898.2K – $1.20M (±1% cap)

NOI $71,854 @ 7.0% cap · market cap 7.75%

Theoretical Best

Office A

$1.66M

$1.46M – $1.94M (±1% cap)

NOI $116,495 @ 7.0% cap · market cap 12.57%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Dollar General Discount Store Western Union Bank

Suggested Use

Top Pick Parking Lot & Garage HVAC Service Building Supply Auto Parts Store Furniture & Home Goods Butcher

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Single-tenant

Tenancy

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

55

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 71765, AR

1,666

Population

1,224

Households

1.4

Avg Household Size

48

Median Age

9%

College-Educated

91%

High-School Grad

198.7 sq mi

ZIP Area

8

Density / Sq Mi

$36,318

Median Household Income

$37,020

Median Earnings

$672

Median Rent

$46,900

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 - Stabilized Dollar General with long-term lease, corporate guaranty, and double-net landlord responsibility for roof and structure.

Where is this grocery and convenience store located?

The property is located at 9800 Strong Hwy Strong, AR.

What is the asking price?

The asking price for this property is $927,000.

What are key features of this property?

This property features: 9,100 SF Dollar General built in 2009 on a build‑to‑suit DG prototype store model; Just under 9 years remaining on the lease, expiring 7/31/2034; Dollar General corporate guaranty and investment‑grade credit tenant