A newly constructed single tenant Dollar General store has just sold in Leesville, Louisiana, for $1.08 million. Chicago-based The Boulder Group, an industry leader in the net lease sector, closed the deal. Randy Blankstein, president of The Boulder Group, and Jimmy Goodman, partner at the firm, represented the seller, a Louisiana developer.

About 14 years remain on the triple net lease for the 9,0124-sq.-ft. store situated on 1382 Pitkin Road. Its location is adjacent to Fort Polk, a combat-training base for 10,000 U.S. Army soldiers. The lease is structured with 10% rental escalations in each of the three 5-year renewal options.

Acquiring the property was a private partnership from the West Coast.

By virtue of its new build, investment-grade tenant, long-term lease and rent escalation, the asset exemplifies “the most-sought-after net lease product,” says Blankstein.

Newly constructed net leased dollar stores are delivering “attractive yields,” for investors, Goodman says, and the asset type faces an active market. Nationally, retail net-lease assets delivered a 6.19% cap rate in the first quarter of 2017, remaining flat quarter-over-quarter.

The average asking rent for net-leased retail properties grew 3.9 percent last year, according to commercial real estate services firm Marcus & Millichap. Development over the past three years averages 44 million sq. ft., but was outpaced by net absorption, which averaged 66 million sq. ft.

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