Dollar General History
The origins of Dollar General can be traced back to 1939, marked by J.L. Turner’s establishment of a small variety store in Scottsville, Kentucky. The company’s name was inspired by the fact that the store was open from 7 am to 9 pm, six days a week. Dollar General quickly expanded throughout the southeastern United States, and by the 1960s, it had become the largest variety store chain in the region.In the 1970s, Dollar General began expanding into new markets, including the Midwest and Southwest. The company expanded its offerings to encompass a broader range of products, incorporating groceries, household essentials, and health and beauty items. Today, Dollar General is the second largest discount retailer in the United States, with over 18,000 stores in 47 states.
Why Invest in Ground Lease and NNN Lease of Dollar General?
Investing in Dollar General’s ground lease and triple net (NNN) lease properties offer compelling reasons:
1) Dollar General NNN Property Investment: Stable income
Dollar General is a well-established company with a strong track record of profitability. This means there is a low vacancy or lease default risk, which can provide reliable income for investors.
2) Dollar General NNN Property Investment: Established tenant
Dollar General is a recognizable brand with a loyal customer base. This makes it a desirable tenant for landlords, as there is a low risk of the tenant going out of business.
3) Dollar General NNN Property Investment: Low management responsibility
In-ground and NNN leases, the tenant manages property maintenance and expenses, minimizing the landlord’s management obligations.
4) Dollar General NNN Property Investment: Favorable lease terms
Dollar General typically offers long lease terms with built-in rent escalations. This provides predictable income and potential rental growth for investors.
5) Dollar General NNN Property Investment: Real estate value
Dollar General’s stores are typically located in high-traffic areas, which can increase property value over time. This can provide a potential capital appreciation for investors.
Pros and Cons of Dollar General Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.
Cons:
1. Lease renewal risk when the term expires.
2. Dependency on Dollar General’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.
Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.
