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Demand for NN Dollar General Stores is High Throughout Texas
Two single-tenant Dollar General stores located at 111 College Ave. in Levelland and 1815 Milwaukee Ave. in Lubbock recently sold for an undisclosed sale price. Combined, the properties totaled more than 18,000 square feet.
A private Texas investor purchased the Levelland asset at a 6.42 percent cap rate. The Lubbock asset traded at a 6.6 percent cap rate and was acquired by a California institutional investor.
In both transactions, Chris Adams of Stan Johnson Company represented the seller, a private investor based in Dubuque, IA.
“These transactions are two of many examples where we have experienced targeted cap rate compression within the essential retail market,” said Adams. “Double net Dollar General stores have historically attracted a more limited buyer pool, but the current demand for these assets from all buyer types, particularly in Texas, is very high and our recent pricing levels have reflected this trend.”
The properties were built in 2005 and 2006, and both feature double net-lease structures. At the time of sale, there were approximately seven years of lease term remaining at each site.
- ◦Sale/Acquisition
