Investment Offering
Alton, IL - Dollar General
3884 Fosterburg Road | Alton, IL 62002
$1,392,000
Price6.25%
Cap Rate$87,024
NOI9,100
± SF Offering GLA1.55
± AC Land AreaDescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, investment grade (S&P: BBB), Dollar General investment property located in Alton, Illinois (St. Louis MSA). The Tenant recently executed a brand new 15-year lease with 3 (5-year) options to extend, demonstrating their commitment to the site. The lease features a 10% rental increase at the beginning of each option period, growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive investor. As of May 2020, Dollar General Corporation operates more than 16,500 stores across 45 states in the United States with plans to build an additional 500 stores by the end of this year. Dollar General has proven to be an incredible e-commerce and pandemic resistant tenant, paying rent each and every month while reporting increased same store sales of 21.7% for the fiscal year 2020 Q1 compared to Q1 2019.
Location
Dollar General is strategically located near the diamond interchange of Fosterburg Road and State Highway 255, averaging 16,100 vehicles passing by daily. The site benefits from excellent visibility via significant street frontage and a large pylon sign. Fosterburg Road connects directly with State Highway 111 (22,000 VPD), Alton’s primary retail corridor that features a variety of national/credit tenants that include The Home Depot, Target, Lowe’s Home Improvement, Tractor Supply Co., Kohl’s, Ross Dress for Less, Aldi, and more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. In addition, the subject property is positioned within close proximity to multiple housing communities such as River Reach Townhomes, Oak Grove, and Enchanted Village, providing the general store with a direct residential consumer base to draw from. The 5-mile trade area is supported by nearly 55,000 residents and 20,000 daytime employees. Residents within 1 mile of Dollar General boast an affluent average household income of nearly $100,000.