Family Dollar Net Lease Investment Opportunity | 6.4% Cap Rate
3277 Taylor Boulevard
Louisville, KY 40215
| PRICE : | $1,295,000 |
|---|---|
| CAP RATE: | 6.4% |
| PROPERTY TYPE: | Retail |
| SITE SIZE: | 1.00 Acres |
| BUILDING SIZE: | 8,025 SF |
Highlights
- • Recently exercised 10-year NN lease extension through January of 2032 with 5 extension options
- • Major 2021 store expansion with interior and exterior renovations paid by tenant of $350,000
- • Almost 20k VPD at this busy urban location near world famous Churchill Downs (home of the Kentucky Derby)
- • Three mile population over 118,514 and average household income of $54,634-the “sweet spots” for Family Dollar
- • Outstanding 6.4% cap rate compared to other available dollar stores
- • Long term successful location with operating history of over 38 years
- • Immediate area has many national retailers and the University of Louisville
- • Corporate guaranteed lease with Family Dollar, a subsidiary of Dollar Tree
- • Broker of Record: Justin Baker, TRIO Commercial Property Group, LLC | jbaker@triocpg.com | 502-454-0911 | Kentucky License #204053
Description
This value priced Family Dollar in Louisville, KY has just under 9 years remaining on the NN lease. Family Dollar spent $350,000 on an interior and exterior renovation in 2021, demonstrating a strong commitment to the location. Improvements include an updated façade, new signage, interior remodeling and store expansion by ± 1,250 SF of floor space.
Located in a densely populated urban area, Taylor Boulevard is close to Churchill Downs, home of the Kentucky Derby and has major national retails and the University of Louisville nearby. This busy area has traffic counts of almost 20,000 VPD and a three-mile population of over 118,000 with an average household income of almost $55,000 making this an ideal Family Dollar location. That is likely why it has been operating here for over 38 years.
In conjunction with the remodel, Family Dollar executed a new 10-year NN lease which runs through January of 2032. Additionally, five 5-year renewal options remain with rent increases in each option period. Family Dollar reimburses the landlord for taxes and insurance. The landlord is responsible for roof, structure, parking lot and repairs over $300 per occurrence.
This offering has a very competitive cap rate of 6.4% and low rent/SF of $10.33. Along with a strong corporate guaranty by Family Dollar, a subsidiary of Dollar Tree, this offering is well priced at $1,295,000.
