Washington, D.C. (March 5, 2020) – SRS Real Estate Partners’ National Net Lease Group is pleased to announce the $36 million portfolio sale of 26 single-tenant retail properties occupied by discount retailer, Dollar General. The stores are located in key suburban areas throughout Pennsylvania.
SRS National Net Lease Group’s Executive Managing Director Andrew Fallon represented the seller, Tennessee-based GBT Realty Corporation who developed the properties over the past two years. The buyer was a Virginia-based, private investment group that was completing a sizable 1031 exchange.
Averaging a consideration of $1.4 million per location, each free-standing store features approximately 9,000 square feet of retail space and is absolute, triple-net leased to Dollar General Corporation who has provided its corporate guarantee on each lease. The leases all have between 12 and 13 years remaining with rent increases in each option period. Dollar General currently operates more than 15,000 stores in 44 states and counting.
“Discount retail continues to thrive as Dollar General, and its peers, open more stores each year,” said Fallon. “For the net lease investor, these assets provide an attractive combination of credit, lease term, and passive ownership, making dollar stores some of the most actively traded net lease properties on the market.”
Fallon noted that he is heading the marketing for additional dollar store inventory, including seven new Dollar General stores located in PA, OH, ME and CT. “We’ve had tremendous success selling build-to-suit dollar stores for our developer clients. The Dollar General stores are typically acquired by private, high net worth investors or 1031 exchange buyers on an individual store basis, so selling this 26-store portfolio was a significant transaction for both parties.”
SRS’ National Net Lease Group, with more than $1.5 billion in assets currently listed for sale, successfully completed more than 400 transactions in 2019, across 35 states nationwide.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 25 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.