Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Dollar General, a 9,002-square foot net-leased property located in Saint Petersburg, Fla., according to Ari Ravi, regional manager of the firm’s Tampa office. The asset sold for $2,300,000.
Daniel Hurd, a senior investment advisor in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.
“I specialize in discount dollar stores and we are selling deals all across the country right now. It isn’t often we get the chance to sell a deal right in our backyard and I was extremely eager to take on the exclusive listing. This particular deal was unique primarily because of the demographics and rent structure. A typical dollar store is located in a town of less than 15,000 residents and pays rent of less than $95,000 annually. Saint Petersburg is the fifth largest city in Florida and home to over a quarter million residents. Furthermore, the tenant was paying an amount far in excess of the national average and scheduled to increase slightly in the upcoming years,” says Mr. Hurd.
“We were able to expose the deal to our database of over 125,000 brokers and investors. This resulted in an overwhelming amount of interest and multiple offers being submitted. I took on this listing with high hopes and the results were nothing short of my expectations. We were successful in procuring a buyer who was not only comfortable with the shorter lease but also the compressed capitalization rate. The buyer was an individual investor out of the northeast who purchased the deal as part of a 1031 exchange. The asset sold at the full asking price of $2,300,000,” adds Mr. Hurd.
The site was built to suit for Dollar General in 2011 and consists of 9,002 rentable square feet. This 1.45-acre parcel encompasses an entire block between 22 Street South and 23 Street South and has multiple points of ingress/egress. Dollar General benefits from 14,000 passing vehicles per day along 18th Avenue South and is located under one mile from Interstate 275 which experiences traffic counts over 110,000 vehicles per day.
The Saint Petersburg market has a very high barrier to entry, with over 99 percent of land being developed. The highly desirable downtown district is located approximately two miles from the subject property and currently undergoing numerous redevelopment projects to accommodate the population growth. Tropicana Field is home to the Tampa Bay Rays major league baseball team with over 1.25 million visitors annually and located just five minutes from the Dollar General site. There are numerous schools, colleges, museums, restaurants, parks and retail stores located in the nearby areas. Dollar General is located at 2216 18th Avenue South in Saint Petersburg, Fla.
About Marcus & Millichap (NYSE: MMI)
With over 1,800 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 9,000 transactions in 2017 with a value of approximately $42.2 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com
