Dollar General store in Staunton sells for $1.5 million
A 9,100-square-foot Dollar General store in Staunton has sold for $1.5 million, or about $165 per square foot.
The Single Tenant Net Lease Group of KLNB, a Baltimore, Md.-based commercial real estate brokerage, arranged the sale.
KLNB said in a press release it took the property to market for the seller and procured the buyer with a triple-net leased offering. In a triple net lease, the agreement designates the tenant as being responsible for costs such as taxes, insurance and maintenance.
Peter Snell, KLNB’s Single Tenant Lease Group director, said in a statement that the sale is part of a growing trend. “This is a great example of what is driving today’s single tenant, net-leased market: a seller capitalizing on historical or near historical low CAP rates, and a buyer seeking a management-free asset and hedging against future uncertainty. By locking in a low-interest rate and securing a cash flow guaranteed by strong corporate investment grade credit, the buyer will find great value in this property.”
The store is located within a residential community along West Beverley Street — one of Staunton’s main thoroughfares that runs through the city’s downtown.
KLNB formed Snell’s group in 2014 to provide advisory services for investment entities interested in single tenant, net lease retail assets. According to the firm, the group has handled more than 300 deals totaling more than $1 billion.