NNN Dollar General Sold

NNN Lease Market News

Dollar General Net Lease Sells for $1.23MM in Petersburg, VA

Calkain Companies recently sold a Dollar General (NYSE: DG) NNN net lease investment property located in Petersburg, VA. The transaction closed within the past 30 days and illustrated the compressing cap rates within the net lease segment of the market. The buyer was a privately held, fully integrated real estate investment company. The seller was a regional real estate developer. As a preferred developer for Dollar General, the same seller has engaged Calkain to sell another store in Halifax, VA. These Dollar General properties have been developed as part of Dollar General’s build-to-suit program. The stores have brand new 15-year NNN net leases, which provide passive income for the new owner.

Calkain’s Andrew Fallon, Assistant Vice President, facilitated the transaction by providing exclusive representation to the seller. More sales of Dollar General stores have been transacting since S&Praised the company’s credit rating to investment grade BBB- in April 2012. The Petersburg store was highly sought after given its proximity and access to the I-95 corridor, the surrounding demographics, and the favorable lease structure. Fallon commented, “As Dollar General continues to roll out new stores in new markets, the investor demand continues to increase for superior market locations.” The combination of tenant credit and triple net lease terms provide a passive, bond-like fixed income investment, “The leases with Dollar General’s guaranty provide a strong income stream for the buyer, who will have limited to no management responsibilities.” The buyer financed the purchase using a regional bank.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast, Northeast and a new office opening in the Midwest. Additional information about the firm and listings may be found at www.calkain.com.

Dollar General Up By One Notch to BBB-minus

NNN Lease Market News

  

Standard & Poor's upgraded Dollar General rating by one notch to BBB-minus.

The action was hardly a shocker - Dollar General was on the agency's latest list of rising stars, fallen angels published on April 9, one of 23 global companies that were poised for a return to high grade. S&P had placed the company on CreditWatch with positive implications back in March.

But the upgrade is also the result of the company's robust sales, expectations for future growth as well as its commanding market position as a discount retailer.

 "Dollar General's revolutionary retail-innovations, ample square footage growth potential and strong management execution continue to deliver out-sized market share gains," Bank ofAmerica Merrill Lynch analysts said in a recent note.

The analysts do concede that Dollar General typically sells traditional convenience and some staple foods, and not usually fresh items.

The expansion in potentially underserved markets as well as its strategy of keeping its prices in line with cost increases will help position it in the longer run, Barclays said in a note.

And while longer term debt reduction might be deferred in lieu of share buybacks, Barclays says the company's solid free cash flow of around $536mln in 2011, and estimates of $643mln in 2012 and $949mln in 2014, will allow for a reduction of its approximately $2.5bln in debt and buttress earnings per share growth.

 http://www.reuters.com

Riding the Dollar Store Wave in a Perfect Storm

NNN Lease Market News

by http://seekingalpha.com/author/brad-thomas

With over 20,677 stores, the top three U.S.-based dollar chains are among the most visible retailers in the U.S. There highly-visible retailers stock a variety of merchandise ranging from consumables, household chemicals, paper products, candy and snack products, health and beauty aids, hardware, pet foods, house-wares, giftware and home décor products. The “everything for $1 or less” business model has been around for decades; however, the concept has evolved into a highly competitive retail category. These bargain discounters are benefiting from increasingly cost-conscious consumers focused on buying everyday necessities and seeking out lower-priced goods.
As explained by Andrew Fallon, Investment Advisor at Calkain Companies (www.calkain.com) , “The discount retail or “dollar store” segment remains a bright spot of the retail industry. Dollar store retailers, including Family Dollar and Dollar General, continue to open new stores and add jobs in this uncertain and stagnant economy. Many experts and articles published post-recession, have offered the idea that there will be a generational impact on individual’s saving habits, and consumer spending and shopping choices. Positioned to take advantage of the generational impact, the dollar stores have been attracting new shoppers and capturing market share.”

Dollar General Hopes to Sell Beer

NNN Lease Market News

(NNN) Dollar General Hopes to Sell Beer in Arkansas

LITTLE ROCK, Ark. -- Arkansas' Alcoholic Control Board (ABC) is expected to vote today on whether (NNN) Dollar General stores throughout the state can sell beer. Eighty-two locations have applied for permits, ABC officials said.
Being granted a beer license is not simple. If an objection for a permit has been filed for a particular location, the permit is often denied and an appeal hearing is set for a later date, The Baxter Bulletin reported. However,(NNN) Walgreens and (NNN) Walmart received similar approvals in 2010 and 2009, respectively.
(NNN) Dollar General's beer license request is part of a national plan.

 CSNews Online