Commercial Property, potential opportunity with Dollar General

[Bob Willis]

Hey Community,

A Dollar General is coming to town, the development company working with them is in the process of wrapping up the property acquisition and will break ground in the October timeframe. The development company has a 15 year lease in place with Dollar General. It is my understanding once the building is up and Dollar General is in, the development company will be selling off the property. I believe the sale will occur sometime in 2023.

I have no commercial experience, I own several LTR and a couple of STR, but this intrigues me, but this local ownership is very intriguing to me. Any guidance on what to look for, where to start, education resources, etc? I know this is an open ended question, and those tend to be hard to answer. But I'd love to hear any thoughts.

Thanks,
Bob

[John McKee]

The biggest question you will have is what happens when this store goes belly up at the end of the lease.  Most people don't think that far ahead, but it does happen.  I've seen Walgreens, Starbucks, Target etc. close locations.  I even had a famous Daves Restaurant in my portfolio that left the location so I know that pain.  During the last recession and covid some locations stop paying the landlord all together to force a buyout or negotiation.  It's just life and that's okay, but there is a series of checks you need to do when evaluation a property from a conservative lense.  I"m happy to help or share that with you.