Dollar General
Retail | 8.00% Cap Rate | 16,800 Sq Ft
Marketing description
Horvath & Tremblay is pleased to present the exclusive opportunity to purchase a freestanding Dollar General investment property located at 116 N Magnolia Street in Gramercy, Louisiana (the “Property”). Dollar General has been at this location since 1996 and recently extended their double net lease demonstrating their commitment to this location and market. Dollar General has 4+ years of term remaining and is followed by six, 5-year renewal options. The lease features 10% rent increases at the start of each renewal option.
The Property benefits from a corner location at the intersection of N Magnolia Street and Main Street (LA Route 641), the primary commercial corridor traversing Gramercy, LA. Gramercy is located along the banks of the Mississippi River approximately 45 miles west of New Orleans.
Investment highlights
LONG TERM TENANT: Dollar General has been at this location since 1996 (25+ years) and just extended their lease. Dollar General has 4+ years remaining on their Double Net Lease with six (6), 5-year Renewal Options.
PLUS SIZE STORE: Dollar General occupies the entire 16,800 square foot building which is situated on a 1.00-acre corner parcel with excellent visibility and frontage along Main Street.
BRAND NEW ROOF & STORE REFRESH: The Property features a new roof (2023) with a 20-year transferable warranty. Additionally, Dollar General is remodeling the store at its own expense.
STRONG HISTORICAL SALES: Dollar General has performed extremely well at this location and has a consistent history of strong store sales.
ATTRACTIVE RENT INCREASES: The lease includes an attractive ten percent (10%) Rent Increase at the start of each renewal option, providing a steady increase in income and an attractive hedge against inflation.
INVESTMENT GRADE CREDIT: Dollar General has the highest credit rating among its peers and holds investment grade credit – rated BBB (S&P) and Baa2 (Moody’s). Dollar General operates over 20,500 locations throughout the country. Dollar General’s net sales increased 5.2% to $42.7 Billion in fiscal year 2025.
DOMINANT MARKET-SHARE LOCATION: As is the case for the subject Property, Dollar General’s corporate strategy is to target suburban and rural communities underserved by other retailers. These low-cost locations, commonly referred to as "food deserts," are intended to provide convenience and discount shopping to area residents that have no nearby access to grocery stores, pharmacies or big-box discount retailers.
STRATEGIC RETAIL LOCATION: The Property is strategically at the intersection of N Magnolia Street and Main Street (LA Route 641), which is the primary commercial street in Gramercy. The Property is positioned 2-miles south of US highway 61 and 6-miles south of Interstate 10.
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.
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