1275 US-25W Dandridge TN 37725

Transwestern National Net Lease | Sale Leaseback Group is pleased to a rare, upgraded constructed, absolute triple net leased Dollar General at 1275 E. Highway 25 70, Dandridge, Tennessee. The initial term of the lease runs through July 31, 2035, with the tenant having five (5), 5-year options to renew with 10% rent increases each.

Placer.ai visitor tracking data indicates this store ranks 4th out of 26 stores in visitor traffic in a 15-mile radius outperforming 88% of those stores; ranks 197th out of 905 stores, outperforming 78% of stores in the State of Tennessee; and ranks 4,722nd out 18,711 stores, outperforming 74% of all DG stores nationwide.

The Property was completed in July 2020 with a new 15-year lease and was built with significantly upgraded all-wood construction (structure and façade), a highly unusual Dollar General upgraded store design (during construction photos are available). Structured as absolute triple net, this DG provides a truly passive investment opportunity for an investor with no landlord responsibilities.

Dandridge, Tennessee is thirty miles east of Knoxville and is considered part of the Knoxville MSA. The property boasts a five-mile population of approximately 15,000 and a county-wide population of 54,000. As of August 2023, the Knoxville MSA had a population of 932,245, up from 905,831 in just three years from 2020 and up from 852,046 in 2013. Dandridge is the only town in the United States named after Martha Dandridge Washington, wife of our first President, George Washington.

Dollar General is a publicly traded company (NYSE: DG) and an investment grade tenant (S&P: BBB). Headquartered in Goodlettsville, Tennessee, Dollar General’s gross revenue for 2023 exceeded $38.7 billion with operating profit of $2.4 billion. Dollar General operates more than 19,000 stores with plans to open 800 more and remodel an additional 1,500 stores in 2024.

• Substantial upgraded construction utilizing all-wood prototype (structure and façade). This far more expensive construction design is rarely utilized by Dollar General.

• Placer.ai data indicates this store ranks 4th out of 26 stores in visitor traffic in a 15-mile radius outperforming 88% of those stores; ranks 197th out of 905 stores, outperforming 78% of stores in the State of Tennessee; and ranks 4,722nd out 18,711 stores, outperforming 74% of all DG stores nationwide.

• More than 10.5+ years of remaining lease term on original fifteen (15) year lease.

• Absolute triple net lease structure with no landlord responsibilities (see lease for details).

• Annual NOI of $91,420 provides a low annual rental rate of less than $11.00 per square foot providing affordable and sustainable rent and future profitability (original lease called for 9,026 SF sized building but DG subsequently reduced the size spec to 8,770 SF due to upgraded construction cost).

• Five (5), 5-year renewal options with ten percent (10%) scheduled rent increases.

• Tennessee is an income tax free state.

• Property can be purchased individually or with another Dollar General in Athens, Tennessee. See that listing here: https://www.crexi.com/properties/1674496/tennessee-dollar-general-strong-performing-store-abs-nnn