Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of six freestanding retail buildings across several states in the southwest and Georgia. The properties are leased to Family Dollar and Dollar General. In four separate transactions, Evan Altemus of Stan Johnson Company represented the seller, a Texas-based individual investor. The assets were acquired by three separate investor groups all based in Texas, including two private buyers and an institutional investor. The properties traded for a combined $6.3 million.
“These transactions were part of a larger investment strategy for the seller,” said Altemus, Associate Director in Stan Johnson Company’s Dallas, Texas office. “Their comfort lies in the single-tenant industrial sector and given our breadth and expertise across all asset types, the seller asked us to help them execute their strategy of exiting the retail market and transitioning to more industrial-focused properties. We were able to bring qualified buyers to the table, providing them with critical boots-on-the-ground information in order to enhance their understanding of each out-of-state market.”
Each dollar store was built or remodeled between 2005 and 2018, and the tenants operate on double net leases at all locations.
“Cap rates on these properties were comparatively high due to the short-term, double net leases, and because of the corporate credit and the ability to increase the value over time, these deals brought interest from yield-chasing investors historically focused on the multi-tenant retail sector,” added Altemus.