Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property leased to Dollar Tree. The property is 9,180 square feet and is located at 3543 South Beech Daly Road in Dearborn Heights, Michigan. Chris Adams of Stan Johnson Company represented the buyer, Dollar Store Investor LLC, which is a private investor based in California. Campbell Black, also of Stan Johnson Company, represented the seller, a Texas-based developer. The property traded for approximately $0.8 million at an 8.56 percent cap rate.
“Several factors made this an attractive investment for the purchaser,” said Adams, Associate Director in Stan Johnson Company’s Dallas, Texas office. “The conversion to Dollar Tree, a recent lease extension, the property’s infill location, and the continuous operation of dollar stores through the pandemic showed a tremendous level of commitment from the tenant. Furthermore, interest rates have fallen significantly, and the buyer achieved an extremely low rate, even compared to quotes offered earlier in the year.”
In October 2019, this suburban Detroit, Michigan location rebranded from Family Dollar to Dollar Tree and underwent a significant capital improvement. The build-to-suit property sits on 0.76 acres and was constructed in 2006. At the time of sale, there were approximately four and a half years left on the tenant’s double net lease.