Family Dollar
Absolute NNN Family Dollar — Zero Landlord Responsibilities, 8.45% Cap Rate
Investment highlights
• Corporate Tenant – The lease is signed by Family Dollar Stores of Indiana, L.P. Family Dollar operates over 7,100 locations across the country with a reported revenue of ~$13B in the last Fiscal Year.
• Absolute NNN – This is a rare absolute NNN lease for Family Dollar with zero landlord responsibilities, offering 100% passive income to a prospective purchaser.
• Passive Value-Add Investment — This asset represents an ideal play for an investor seeking high-yield, low-risk corporate income in the short term, paired with the long-term upside of inheriting a well-maintained, freestanding commercial building.
• Attractive Increase Schedule – 10% rental increases in each of the Six, 5-year options, which is beneficial to an owner as it increases their annual cash flow and helps hedge against inflation.
• Essential Retail – Family Dollar stores often serve as community “essential retail anchors” in secondary and tertiary markets where discount retail is mission-critical for local consumers.
• Recession Resistant Tenant – Discount retail historically performs well during economic uncertainty, benefitting from resilient demand as consumers seek value and affordable essentials.
• Affluent Local Demographics – The asset sits within a very strong, stable economic micro-market. The immediate 47122 zip code carries a stellar median household income of $107,500 and an average household income of $127,248, vastly outpacing standard national and state metrics.
• Strong Homeownership & Stability – The community showcases a remarkably high homeownership rate of 80.8% and a microscopic local unemployment rate sitting around 1.2%, ensuring deep-rooted economic permanence and consistent consumer retail spending power.
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