Dollar General
Retail | 8.21% CAP | 8,125 SqFt
Marketing description
Horvath & Tremblay is pleased to present the exclusive opportunity to purchase a freestanding Dollar General investment property located at 41 W Main Street in Fonda, New York (the “Property”). Dollar General has been at this location since 2005 and has exercised several renewals demonstrating their commitment to the site and the market. Dollar General has 4+ years remaining on their lease with one (1), 5-year renewal option remaining. The lease calls for an attractive 9.6% rent increase at the start of the renewal option.
The Property is strategically situated along W. Main Street (NY Route 5), Fonda’s primary retail and commuter artery, providing strong visibility and accessibility within the market. Dollar General occupies a central in-town location, benefiting from proximity to key demand drivers including area schools, the Fonda Fairgrounds, Fonda Speedway, established residential neighborhoods, local retailers and restaurants, and nearby industrial and manufacturing employers. The site offers excellent regional connectivity with convenient access to NY Routes 30A, 334, 31, 5S, and 116, and is located approximately 1.6 miles from Interstate 90 (New York State Thruway). This strategic positioning supports consistent consumer traffic and efficient access throughout the broader Mohawk Valley region.
Fonda is situated along the south bank of the Mohawk River, approximately 40 miles northwest of Albany and about 20 miles west of Schenectady, providing access to larger employment centers while maintaining a distinctly small-town character.
Investment highlights
LONG TERM TENANT: Dollar General has been at this location since 2005 and just executed a 5-year extension, demonstrating their commitment to the site and the market. Dollar General has 4+ years remaining on their lease with one (1), 5-year renewal option.
ATTRACTIVE RENT INCREASES: The lease includes an attractive 9.6% rent increase at the start of the renewal option, providing a steady increase in income and an attractive hedge against inflation.
OPERATING EXPENSE PROTECTION: Dollar General reimburses 100% of real estate taxes and insurance and reimburses up to $5,281.25 for parking lot maintenance and landscaping. Dollar General’s parking lot maintenance reimbursement cap increases by $0.10/SF in the renewal option.
INVESTMENT GRADE CREDIT: Dollar General has the highest credit rating among its peers and holds investment grade credit – rated BBB (S&P) and Baa3 (Moody’s). Dollar General operates over 20,500 locations throughout the country. Dollar General’s net sales increased 5% to $40.6 Billion in fiscal year 2024.
STRATEGIC LOCATION: The Property is well located along W Main Street (BY Route 5), the area’s primary commercial and commuter corridor. Dollar General is positioned in the center of Fonda and enjoys convenient access to area schools, Fonda Fairgrounds, Fonda Speedway, residential neighborhoods, local retailers and restaurants, and the area’s industrial and manufacturing facilities. Transportation access is a key attribute of Fonda’s location. The village is served by New York State Route 5, which runs parallel to the Mohawk River and connects to nearby communities. Interstate 90 (the New York State Thruway) is accessible a short drive to the south, offering direct east–west connectivity across upstate New York. In addition, the nearby Amsterdam Amtrak station provides passenger rail service along the Empire Corridor, linking the region to Albany, Syracuse, Buffalo, and New York City. These transportation assets enhance Fonda’s accessibility for residents and businesses alike.
LIMITED COMPETITION: Dollar General is one of the only nationally branded tenants in Fonda and serves as the area’s primary retailer. Dollar General benefits from limited competition with the closest dollar store, grocer, pharmacy, and big box store approximately 6 miles north in Johnstown.
RECESSION RESISTANT TENANT: Dollar General thrives in middle-America markets where incomes may be modest, proving the tenant to be a resilient and recession- resistant retailer. Dollar General has reported positive year-over-year growth in net sales every year since the company went public in 2009.
TRAFFIC COUNTS: More than 11,400 vehicles pass by the Property at the intersection of W Main Street and Broadway.
DEMOGRAPHICS: Over 14,300 people live within 5 miles of the Property with an average household income of $89,846. More than 5,400 people live within 10 miles of the Property with an average household income of $83,205.
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