Family Dollar - Highland Home
Retail | 7.25% CAP | Built in 2022 | 10,500 SqFt
Marketing description
As exclusive advisor, MMG Real Estate Advisors is pleased to present the rare opportunity to acquire a Family Dollar single-tenant retail property located at 17824 Montgomery Highway in Highland Home, Alabama. Offered at $1,485,000 ($141 per square foot), the investment delivers an attractive 7.25% cap rate supported by $107,625 in NOI. The property is leased to Family Dollar, a nationally recognized discount retailer, and benefits from a strategic position along US-331, the region’s primary north–south corridor serving the surrounding rural communities.
The lease extends through February 28, 2032, and includes four (4) five-year renewal options, providing long-term stability. Structured as a triple-net (NNN) lease, the tenant is responsible for the majority of operating expenses, minimizing landlord obligations. Additionally, the lease features built-in rent increases of $0.50 per square foot at each renewal option, offering consistent income growth and long-term upside potential.
Highland Home is supported by a stable economic base driven by agriculture, healthcare, and light manufacturing, reinforcing the property’s role as an essential retail provider within its trade area. With limited nearby competition and a strong national tenant serving daily-needs demand, this offering presents a secure, cash-flowing investment with durable fundamentals and long-term value appreciation potential.
Investment highlights
- National Discount Retail Tenant Serving Daily Needs: The property is leased to Family Dollar. The store serves Highland Home and the surrounding rural catchment from 17824 Montgomery Hwy.
- Post-Divestiture Focus With Institutional Sponsorship: Family Dollar was sold to Brigade Capital and Macellum Capital, creating a standalone platform with dedicated ownership and operational focus.
- Direct Frontage on a Primary Regional Corridor: Highland Home sits along US-331 (Montgomery Highway), the area’s main north–south route connecting residents to employment centers. The property is approximately 31 miles (~47 minutes) to Montgomery, capturing commuter and pass-through traffic alongside local demand.
- Diverse Local Employment Base Supports Spending Stability: The property is offered at a 7.25% cap rate on a stabilized Net Operating Income of $107,625, secured by a corporate-guaranteed NN lease through February 2032. The lease features four 5-year renewal options with fixed rent increases, providing a defined path for future income growth.
- Limited Competition Enhances Neighborhood Relevance: Positioned on the primary arterial connecting Montgomery to the Florida Panhandle, the site captures both local traffic and significant seasonal vacationer volume. This dual demand driver provides a sales floor that local demographics alone could not support, enhancing the asset's long-term stability.
- Regional Infrastructure Strengthens Long-Term Viability: The property benefits from an extremely constrained retail submarket with a 99.6% occupancy rate and zero square feet of new retail space under construction. As a 2022-vintage asset, it holds a distinct quality advantage over the existing inventory with no near-term competitive supply threats.
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