Retail Investment - Dollar Stores

[Raymond Hooks]

All,

I'm considering a commercial retail real estate investment. As you're aware, many sectors of retail is struggling (i.e. Macy's, Dillards, JcPenny's Sears, Neiman Marcus, etc.). However, I feel that Dollar Stores are high-quality & publicly traded tenants, providing basic goods, even during the Covid-19 pandemic. The Dollar Stores are used by the lower and middle class for convenience items. Most of the stores were declared essential and stayed open during the pandemic. 

Below are some targeted highlights:

7%+ cash on cash return

15%+ IRR

5-15 year leases

I will be reading the earnings/annual reports for the publicly traded companies. I just want to get your feedback on the stability and long-term outlook on this sector of retail. Obviously, I have to perform due diligence on the Sponsor and legal documents.